Agenda item

That the provisions in the statutory guidance relating to Audit Committees be noted.

The Democracy & Governance Manager introduced a report on the recently issued statutory guidance insofar as it related to the work of the Committee.

He reported on the outcome of the Council’s representations when consulted on the draft Welsh Government (WG) guidance which had been previously considered by the Committee.  He advised that some of the points made by the Council had been taken on board and others had been partly addressed. He confirmed that the appointment of Mr. P.D. Williams as the lay member on the Committee meant that the Council was compliant with the terms of the Measure and the statutory guidance.

Councillor R.B. Jones commented on the over-prescription of issues in the WG guidance and said that changes to Article 7(d) of the Constitution relating to scrutiny of the Council’s financial affairs was not an accurate reflection of the Audit Committee’s role as this was under the remit of the Corporate Resources Overview & Scrutiny Committee.  The Democracy & Governance Manager reiterated that the Council had made representations for local choice rather than treating all 22 Welsh Councils in the same way and this had led to some clarification by WG as stated in the report.  On financial affairs of the Council, the Chief Executive accepted that there would be a degree of duplication and said that if Members felt that financial performance was an issue of risk to the Council, then the Corporate Resources Overview & Scrutiny Committee could be asked to undertake some work on this and that the Audit Committee would provide a ‘check and balance’.

Councillor Jones said that value for money was a key issue for the Audit Committee.  Mr. Huw Lloyd Jones of Wales Audit Office (WAO) agreed that this was a valid point and spoke of the WAO’s support of the Council fulfilling objectives.  The Chief Executive suggested it would be appropriate for the Medium Term Financial Plan to incorporate how the Council would ensure value for money and that where work was done for the Audit Committee, follow-up questions could be sought to demonstrate value for money.

Mr. P.D. Williams referred to the final sentence of paragraph 3.06 of the report and asked how the Committee would seek assurance that the budgetary control systems were working and whether Overview & Scrutiny committees were audited on their effectiveness.

The Head of Finance explained that under current arrangements, financial systems/processes were subject to work by Internal Audit on the Audit Plan and consideration by the Audit Committee.  She suggested that in response to the comments made by the Chief Executive, a report could be brought back to the Committee in the Autumn following discussion with the Chair and Vice-Chair.  The Chief Executive spoke of possible involvement by Overview & Scrutiny to address any questions on the overseeing of budget reports. He and the Democracy & Governance Manager explained that it was not for Audit Committee to audit the effectiveness of Overview & Scrutiny.

Mr Huw Lloyd Jones said that the WAO monitored the work of Overview & Scrutiny and that an improvement study to be undertaken across Councils later in the year would lead to a national report and feedback, with a summary report on this to be provided by WAO in due course.  In response to comments on value for money, he suggested that the best way forward would be for him to discuss with the Chief Executive and Head of Finance.

RESOLVED:

That the provisions in the statutory guidance relating to Audit Committees be noted.