45 FINANCIAL UPDATE REPORT PDF 302 KB
The Deputy Director of Finance submits a report to the Audit and Risk Committee which provides an update on key changes currently affecting the Council, and which may have an impact on the work of the Committee.
The Committee is asked to note the contents of the report and make any recommendations or comments it sees fit to either the Executive or Deputy Director of Finance.
The Committee is also asked to support the change to the Constitution for the appointment of an Independent Member to Audit and Risk Committee. The change would be subject to Full Council approval.
Minutes:
The Deputy Director of Finance submitted a report to the Audit and Risk Committee which provides an update on key changes currently affecting the Council, and which may have an impact on the work of the Committee. The report also asked for support from Members of the Committee on the proposed change to the Constitution for the appointment of an Independent Member to Audit and Risk Committee (subject to Full Council approval).
Ben Matthews, Senior Accountant (Capital and Projects) presented the report. It was noted that:
· External Audit recommendations were brought to the meeting of Audit and Risk Committee in September 2021. The report provided an update on progress in relation to the Council’s asset valuation process and impact on the Council’s accounts. It was confirmed Finance and Estates and Building Services had created a plan to rectify the issues.
· It was noted the Council followed the financial management code introduced by the Chartered Institute of Public Finance and Accountancy (CIPFA), which set out a number of standards that the Council had to demonstrate compliance with.
· It was noted in the CIPFA audit committee guide that good practice showed that co-opting an independent member could be beneficial to the Audit and Risk Committee, which was also a recommendation in the Redmond Review and External Audit Annual Audit Report. Any amendment to the Constitution would have to be made at Full Council. Benefits of having an independent member were noted, including additional knowledge and expertise, independence and continuity of committee membership through the electoral cycle. The Head of Finance was working with the Council’s Monitoring Officer, and was in the process of writing a job description and criteria for the independent member which would be advertised. Information would be brought to the Audit and Risk Committee in the new Municipal Year.
The Chair thanked officers and noted the recommendations in the report.
RESOLVED:
That:
1. The contents of the report be noted.
2. The Audit and Risk Committee support the change to the Constitution for the appointment of an Independent Member to Audit and Risk Committee. Information would be brought back to the Audit and Risk Committee in the new Municipal Year, and the change would be subject to Full Council approval.