Agenda item

The report was introduced by the Group Finance Manager-Core Accounting. He told Panel members that in previous years the Pre-Audited Statement and the Audited Statement of Accounts had been presented to the Audit Panel in June, but because of the elections, and new Council members’ induction, there would not be sufficient time to fit in an Audit Panel in June. Therefore the proposal was for the next Audit Panel to take place on 16 July. He added that the Audited Statement would be presented to the Audit Panel in September as usual.

The Chair said he could not understand why an Audit Panel meeting could not be scheduled in June, as it was important for Panel members to scrutinise the Pre-Audited Statement of Accounts before the September consideration of the audited accounts. Panel members were informed that there was no requirement under the code for elected members to scrutinise the Statement prior to it being signed off in June, but that it was best practice to do so. The only requirement was for the Executive Director for Resources and Regeneration, as the Section 151 Officer, to scrutinise it prior to the June sign off.

Panel members were informed that it had been decided to postpone the Audit Panel and Public Accounts Select Committee meetings until proper financial training has been completed by newly elected members to equip them for their new roles.

Paul Dale asked why Lewisham could not arrange training before the June meeting of the Audit Panel, as other Councils had managed to do so. Councillor Mallory stated that as Chair of the Standards Committee he had suggested that it was necessary to ensure that training and induction was completed before committee duties commence, and he had based this decision on past experience. Councillor Peake said he welcomed that decision but did not see why it should affect the Audit Panel cycle.

Panel Members stated that the AGM was on 11 June, and there should be sufficient time for members to be trained before an Audit Panel meeting later in June. The Head of Corporate Resources said that he would discuss this with Governance officers to address Panel members’ concerns. The Chair recommended that elected members should consider the Pre-Audited Statement before they are submitted to Grant Thornton for auditing. This was agreed.

Mr Dale asked officers if they had taken into account CIPFA’s

Guidance on investment property, and asked whether the distinction had been made between operational and investment properties. The Group Finance Manager-Core Accounting said that properties listed under investment were only being used for investment purposes, and officers usually discuss this issue with the external auditor and make a judgement. Mike Robinson said that this issue would only be relevant if the figure would materially impact on the Accounts.

The Chair referred to recommendation 1 of the action plan in the 2012/13 Audit Findings Report by Grant Thornton, and stated that Assets and Asset Registers had always been an area of concern with the Panel over the 4 years he had been Chair. Councillor Ingleby stated that maybe this concern could be addressed through proper training. The Chair said that these issues needed to be addressed quickly, as it would be unacceptable if the Council could not have effective valuation expertise to categorise the Council’s assets properly. 

The Chair asked officers about recommendation 6 of the Grant Thornton action plan on disclosures within the Annual Governance Statement, and the Head of Corporate Resources said that officers were looking at improving this. They would seek to present a shorter AGS with the 2013/14 draft financial statements.

RESOLVED that

i.              the report be noted.

ii.            a meeting of the Audit Panel be

 arranged in June to consider the Pre-Audited Statements before        they are sent off for auditing.