To approve as a correct record the minutes of the meeting held on 26 November 2020.

Decision

To approve the minutes of the meeting held on 26 November 2020 as a correct record.

The report of the Council’s external auditor (Mazars) is enclosed.

The Committee considered the report of Council’s external auditors (Mazars) that provided the Committee with an update on audit work carried out. The Committee was reminded that the external audit of the Council’s 2019/20 financial statements and value for money conclusion in November 2020 and the signing the audit

report on 30 November 2020. An updated Audit Completion Report with the completed audit findings had been circulated to all members of the Audit Committee. The external auditors are currently waiting to receive the Council’s Whole of Government Accounts (WGA) submission. This work will be carried out to instructions issued by the National Audit Office (NAO) and a report will be submitted to the NAO on the conclusions. Any significant findings from this work will be reported to the Audit Committee in a subsequent Audit Update Report.

The process of audit planning for the 2020/21 audit will start in January/February 2021 and the Audit Strategy Memorandum will be submitted at the March meeting of the Committee.

Reference was made to the National Audit Office updated Code of Audit Practice that has now been applied from 2020/21. The new Code changes the work that auditors will be required to do, and the related reporting, on Councils arrangements to deliver value for money in their use of resources. The changes to the reporting requirements will mean that from 2020/21 a value for money conclusion will not be included within the Financial Statements Audit Report. A commentary on the Council’s arrangements to deliver value for money will now be included in a new Auditor’s Annual Report

(which replaces the Annual Audit Letter). The NAO Code requires that where auditors identify weaknesses in Council arrangements they should report recommendations to the Council promptly throughout the year.

The Chair invited questions from members of the Committee.

A member referred to point 8 of the report and requested further explanation of the five themes outlined in the MHCLG's response to Sir Tony Redmond’s independent review.

It was reported that the themes had been produced in order to provide more central co-ordination by bringing together the various strands of government. The Committee was informed that it would be unlikely that a single regulator would be established and new more simplified process would be introduced to help local authority accounts to be more accessible. Other recommendations included the importance of appointing independent members to audit committees, member training and the processes used by auditors and the meeting of the responsible council officers at least once a year.

A member referred to the Value for Money opinion provided by the external auditor and asked what the arrangements will now require.

It was reported that the new arrangements would require greater engagement with the Council on the arrangements to deliver value for money rather than to present an opinion. A longer narrative report will be submitted to provide a balanced assessment of the arrangements and processes to highlight changes, to promote good practice or actions needed for improvement. 

The City Treasurer  ...  view the full minutes text for item 2.

The report of the Deputy Chief Executive andCity Treasurer and the Head of Internal Audit and Risk Management is enclosed.

The Committee considered the report of the Deputy Chief Executive and City Treasurer and the Head of Internal Audit and Risk Management that provided an update of progress on the agreed audit plan 2020/21, additional work assigned to the audit service and copies of the audit opinions issued in the period August to December 2020. The Committee was advised that audit work had been impacted during the year due to additional work taken on by Internal Audit. This included the provision of key support for the covid19 grant schemes to provide ongoing support

to local businesses and the winter support for children and vulnerable families. The availability of resources has also affected the service and a ‘reach out’ had been undertaken to provide three additional posts and the subsequent recruitment to permanent posts following completion of a service and savings review. Members were informed that even with additional resources it will remain a challenge to complete all planned audit work by year end as a consequence of client availability due to the continued focus on the covid response and recovery which is acute across all areas of the Council and particularly within front line services in adults, health

and care, children’s services and schools.

The Chair invited members of the Committee to ask questions.

Members referred to work being done on fraud checks on business grants and the impact the involvement of audit staff in this work has had on the audit team for the reason that staff are running the checks rather than providing a consultancy and facilitating role. Also, what arrangements will there be if the grants system is extended past financial year end as it is likely that the pandemic would continue. Reference was made to resources available to the Audit team and the involvement of Salford Council to undertake audit work on the Council’s ICT function in view of potential deletion of vacancies from the team structure. The Head of Risk and Internal Audit was asked to comment on the comparison of work undertaken in the previous year to this year and was it mandatory to provide an opinion if a sufficient amount of work had not been completed.

It was reported that there is not a mandatory requirement to provide an audit opinion, however there is a requirement under the current procedures to provide an opinion to those charged with responsibility for governance such as the Audit Committee. The Committee was advised that heads of audit across the country were using outcomes from planned audits and other sources of assurance to inform the production of an opinion. Head of Internal Audit stated that other forms of assurance will include his own role and engagement in various governance and recovery groups. In providing the opinion it was important for the Audit Committee and stakeholders that there is clarity on the basis in which the opinion is taken. The CIPFA guidance would be used to inform the opinion on potential limitations and/or qualifications required and referenced. In  ...  view the full minutes text for item 3.

The report of the Deputy Chief Executive andCity Treasurer and the Head of Internal Audit and Risk Management is enclosed.

Consideration was given to a report of the Deputy Chief Executive and City Treasurer and the Head of Audit and Risk Management that provided a summary the current implementation position and arrangements for monitoring and reporting internal and external audit recommendations.

The Chair invited members of the Committee to ask questions.

A member referred to the Disability Supported Accommodation Services: Quality Assurance Framework and expressed concern that the recommendation from February 2018, for a register of all details including residents; staff and properties to be sent to Performance, Research and Intelligence team was yet to be implemented and the no further action was now required. The point was made that it is important that detailed records are produced and maintained to better protect vulnerable individuals the Council has responsibility for.

It was reported that the recommendation had been implemented from an audit perspective that quality assurance checks were in place, however a more accurate update on the keeping of accurate registers within properties would be provided to members of the Committee.

Decisions

1.    The Committee noted the report.

2.    To request a report be submitted to provide a review of resources within Internal Audit.