Issue - meetings

The Board considered a report from Grant Thornton on the Auditing Standards 2012/2013.

Ms. Z Thomas briefly explained the background to the report and the purpose of the report to ensure there was effective two-way communication between ‘Those Charged with Governance’ and the Engagement Lead, the Council’s external auditor.  At Bromsgrove District Council the Cabinet retained the role of ‘Those Charged with Governance’ and the Audit Board received reports on internal control and fraud.  The Audit Board provided assurance on the operation of internal controls to Cabinet.

In planning and performing their audit of the financial statements Grant Thornton needed to understand how Cabinet, supported by the Council’s management, and the Audit Board met its responsibilities in the following areas:

·         Fraud

·         Law and regulation

·         Going concern

·         Related parties

·         Accounting for estimates

Ms. Z Thomas drew Member’s attention to Appendix 1 of the report and highlighted that the management responses as detailed, were draft responses, in relation to the controls in place within Bromsgrove District Council to ensure that arrangements were in place to support the financial and operational management of the organisation.  No specific concerns had been highlighted.

In response the Executive Director, Finance and Corporate Resources informed Members that as Section 151 officer she was comfortable with the draft responses.  Any comments from the Board would be included in the Statement of Accounting Policies, to be approved by the Board and presented to Cabinet and Council.

Mr. P. Jones highlighted the need to look at particular risks and not inherent risks, and as the Council’s External Auditors, the management responses as agreed by the Board could be revisited. 

Further discussion followed in respect of Fraud and in particular the following question:-

·         Question 2 of the report – ‘Are you aware of any instances of fraud, either within the Council as a whole or within specific departments since 1st April 2012’. 

Members discussed the recent information provided by the Executive Director, Finance and Corporate Resources in respect of Marlbrook Tip and any potential loss of revenue and cost to the Council.

RESOLVED:

a)               that the Executive Director, Finance and Corporate Resources and Head of Planning and Regeneration be tasked to include in the scope of the report; the specific controls in place to ensure that similar incidents to that of Marlbrook Tip, do not happen in the future; and

b)               that the Grant Thornton, Auditing Standards Report 2012/2013, be noted and the management responses, as detailed in Appendix 1 to the report be agreed.