The Key Audit Partner, Grant Thornton submitted the external auditor's progress report and sector update. The Key Audit Partner provided a verbal update on the progress being made on the 2021/22 audit and the Value For Money work which was due to be completed in December. The 2022/23 audit would be completed and signed off after Vesting day, any recommendations made in that audit would be future proofed to take forward into Cumberland Council. The Key Audit Partner reminded the Committee that the City Council had signed up to PSAA who appointed Local Authority External Auditors. Grant Thornton had tendered with PSAA and the outcome would be reported to a future meeting of the Committee. Referring to the Local Government Reorganisation, the Corporate Director of Finance and Resources explained that there were several work packages which dealt with the finances of each of the sovereign Councils and how they would be audited, signed off and merged into one budget for the Cumberland Council. The Committee felt strongly that Cumberland Council had a Scrutiny Committee which scrutinised the budget as well as an Audit Committee. RESOLVED - That the Key Audit Partner, Grant Thornton be thanked for their update.
The Audit Services Manager submitted report RD.34/22 providing an overview of the work carried out by internal audit between July and September 2022. The Audit Services Manager reported that 41% of planned reviews had been finalised to draft and a further 24% were underway, indicating good progress against the audit plan. two planned pieces of work had been finalised in the period; Absence Management (follow up) received a reasonable assurance level and the Annual Governance Statement / Good Governance Principles contributed towards the content of the 2021/22 Annual Governance Statement. The Committee discussed the increase in the implementation of recommendations following the actions taken by SMT as a result of a recommendation from the Committee. The Committee agreed that further work should be undertaken to identify areas of concern and work with managers to address the issues and implement the recommendations. RESOLVED - That the Audit Committee: i) noted the progress against the Audit Plan for 2022/23 (RD.34/22); ii) received the final audit assignments as outlined in paragraph 2.3; iii) noted the progress made on audit recommendations to date outlined in Appendix B. iv) that the Audit Services Manager identify service areas where recommendations were not being implemented and work with service managers to address the issues.
The Head of Financial Services (Deputy S.151) submitted the regular quarterly summary of Treasury Management transaction for the first quarter of 2022/23 (RD.33/22). A full schedule of investment transactions was set out in Appendix A2 with, Appendix A3 showing outstanding investments at end of June 2022. The weighted average return achieved on all investments as at the end of June was 1.42%. The Head of Financial Services (Deputy S.151) drew Members’ attention to the table at Section 5 which depicted performance on treasury management budget to the end of June 2022. Interest receivable was in line with current budget expectations. The dividends received from the property fund had maintained an income of approximately £32,000 per quarter. The yield to the end of June was 3.09%. The valuation of the investment at the end of June was £4,068,820. RESOLVED – That the Treasury Management : April to June 2022 report be noted (RD.33/22)
The Head of Financial Services (Deputy S.151) provided an update on technical issues and consultations on financial and auditing matter of relevance to the Council (RD.36/22).
The report set out the open and forthcoming consultation and closed consultations; Local audit Framework (Technical Consultation) questions; IFRS9; Proposed Changes to Revenue and Capital Data Collections;2023/24 Code of Practice; Financial Management Code; and CIPFA Publication - Internal Audit Untapped Potential. In response to a question regarding the IFRS9 Consultation the Head of Financial Services (S.151) explained that it was uncertain if the statutory override would be extended. The removal of the override would have a significant impact on the budgets of local authorities. RESOLVED - That the update on consultations and technical issues be noted (RD.36/22)
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Conservative - Mrs Finlayson (Vice Chair), Lishman, Mrs Mitchell, Collier (sub) McKerrell, (sub), Shepherd (sub)
Labour – Birks, Patrick, Alcroft (sub), Dr Tickner (sub)
Enquiries, requests for reports, background papers etc to: democraticservices@carlisle.gov.uk
Also Present: Mr Kelly Key Audit Partner, Grant Thornton Councillor Ellis, Finance, Governance and Resources Portfolio Holder Officers: Corporate Director of Governance and Regulatory Services Corporate Director of Finance and Resources Head of Financial Services (Deputy S.151) Audit Services Manager