Agenda item

(a)       That the membership of the Audit Committee be extended by one lay member and its terms of reference extended to reflect the Local Government (Wales) Measure 2011 when it comes into effect;

(b)       That the terms of reference for the Audit Committee be amended so that the word ‘main’ be deleted from the first sentence in section 7.02, Form and Composition;

(c)        That the terms of reference for the Audit Committee be amended under Section C, Financial Reporting, to read ‘Consider the draft annual Statement of Accounts, together with the underlying accounting policies prior to their submission to the Welsh Audit Office and again afterwards prior to recommending their approval to the Council’; and

(d)       That via a letter from the Chair, Members are informed of the proposed changes to the composition and terms of reference of the Audit Committee. 

The Democracy and Governance Manager introduced a report to consider a recommendation from the Audit Committee in relation to its membership and terms of reference.

The Democracy and Governance Manager provided background information and commented on the need for the Council to prepare for the implementation of the provisions in the Local Government (Wales) Measure 2011 relating to audit committees.  He advised that irrespective of the implementation of the Measure there was a need by June 2012 to update the current terms of reference for the Audit Committee under section C, financial reporting.  The Internal Audit Manager explained that the update was required  to reflect the changed practice to reporting for the draft statement of accounts to go to the Audit Committee and then following consideration by the Welsh Audit Office to be considered again and referred to Council for approval.

The Democracy and Governance Manager advised that once the Measure came into effect there was a need to recruit at least one lay person to the Audit Committee.  At it’s meeting on 26 March 2012 the Audit Committee received a report on the Local Government (Wales) Measure which recommended that the Committee considered changes to its membership and terms of reference so that these could be recommended to the Constitution Committee and County Council and the process of recruiting lay member(s)  undertaken.  Councillor Q.R.H. Dodd said that the Committee’s preliminary view was that the total membership of the Audit Committee under the new arrangements would be seven Members and one lay member, with no Executive Members.

  Members referred to the present terms of reference for the Audit Committee which were attached to the report.  Councillor R.J.T. Guest sought clarification on the effect of the Measure on the terms of reference for the Audit Committee.  He commented on section 7.02, Form and Composition, which advised that the Chair and Vice-Chair would be chosen from amongst the main opposition group(s) on the Council.  Councillor Guest suggested that the terms of reference be amended so that the word ‘main’ was deleted from the first sentence and this was agreed by Members.

In addition to the above the Committee also agreed that the terms of reference for the Audit Committee be amended under Section C, Financial Reporting, so that the Audit Committee considered the draft annual Statement of Accounts, together with the underlying accounting policies prior to their submission to the Welsh Audit Office and again afterwards prior to recommending their approval to the Council. 

In response to a request from Councillor Q.R.H. Dodd, the Democracy and Governance Manager suggested that via a letter from the Chair, Members be informed of the proposed changes to the composition and terms of reference for the Audit Committee.  

RESOLVED:

 (a)      That the membership of the Audit Committee be extended by one lay member and its terms of reference extended to reflect the Local Government (Wales) Measure 2011 when it comes into effect;

(b)       That the terms of reference for the Audit Committee be amended so that the word ‘main’ be deleted from the first sentence in section 7.02, Form and Composition;

(c)        That the terms of reference for the Audit Committee be amended under Section C, Financial Reporting, to read ‘Consider the draft annual Statement of Accounts, together with the underlying accounting policies prior to their submission to the Welsh Audit Office and again afterwards prior to recommending their approval to the Council’; and

(d)       That via a letter from the Chair, Members are informed of the proposed changes to the composition and terms of reference of the Audit Committee.