Agenda and minutes

Audit & Governance Committee - Tuesday 1st September 2015 6.00 pm

Venue: Orwell Room, Grafton House. View directions

Contact: Trisha Sutton  01473 432512

Items
No. Item

15.

Apologies for Absence

Minutes:

15.1    Apologies for absence were received from Councillors J Cook and J Powell.  In the absence of Councillor J Cook, Councillor A Leeder took the Chair.

16.

Unconfirmed Minutes of the Meeting held on 2 June 2015 pdf icon PDF 44 KB

Minutes:

Resolved:

 

that the minutes of the meeting held on 2 June 2015, be signed as a true record.

17.

To Confirm the Dates of the Next Meetings:

·         Tuesday 8 December 2015

·         Tuesday 1 March 2016

Minutes:

Resolved:

 

that the dates of future meetings be confirmed as printed on the Agenda, with meetings to commence at 6.00pm.

18.

To Confirm or Vary the Order of Business

Minutes:

Resolved:

 

to vary the Order of Business.  That Item 9. Ipswich Museums Service Verbal Update be considered after Item 5, in that order and that otherwise the Order of Business be as confirmed as printed on the Agenda.

19.

Declarations of Interest

Minutes:

There were no declarations of interest.

20.

Ipswich Museums Service Verbal Update

Minutes:

20.1    The Head of Culture & Environment Services updated that since the meeting on 9 December 2014 a considerable amount of progress had been made with the recording of information and the documenting of the collection, including items out on loan across the country.  The records were being digitally archived for collections information purposes, to support the Ipswich Arts and Museum capital development and to allow future 24/7 virtual access to the collections.   

 

20.2    Mr Bill Seaman, the Colchester and Ipswich Museums Service Manager stated that, alongside the existing resource, three full time staff were in the process of being recruited on 12 month contracts although it was unknown how long the overall cataloguing process would take.  When a definitive list of all items had been made, by physically locating and identifying each item, the process would have been standardised and digitalised. 

 

20.3    Mr Hanson asked why the insurance valuation was for £100m when items had only been valued at £59m and the Team Manager, Accountancy & Finance explained that £59m covered the exhibits which had required definitive valuations however, the £100m insurance cover was for the whole collection, much of which had not been valued.  The Head of Resource Management said that once a full inventory had taken place the total value of the exhibits could be reviewed.  Mr Seaman said that insurance assessments were undertaken when items were loaned out and when complete the programme would allow for a more accurate insurance assessment.

 

20.4    The Head of Culture & Environment Services reported that funding had been secured from the Arts Council’s Resilience Fund for collections information and as the process progressed an assessment would be made on the necessary level of resources.

 

20.5    Councillor Ross asked whether, in relation to how long it could take, had any benchmarking had taken place with other museum services of the same size who had catalogued their exhibits?  Mr Seaman said that when the programme was complete it would be to national standards and would be an asset to the service by being digitally accessible.

 

20.6    The Head of Culture and Environment Services stated that when an item was requested for ‘on loan’ the insurance consideration was about whether it was suitable for loan, the condition of an item, where it would to be displayed and whether it was an adequate facility, regards insurance, especially for high value items noting the borrower would be liable for the insurance premium while on loan.  

 

20.7    The Committee asked that a further update on the cataloguing programme be brought to a future meeting.

 

21.

AG/15/07 Statement of Accounts 2014/15, the Annual Governance Statement & the Annual Report to those Charged with Governance pdf icon PDF 92 KB

Additional documents:

Minutes:

21.1    The Team Manager, Accountancy & Finance presented the Annual Statement of Accounts 2014/15 to the Committee prior to it being submitted to Council on the 23 September 2015.

 

21.2    Mr J Rickett of PricewaterhouseCoopers referred the Committee to the key outstanding matters in the executive summary of the draft report to those charged with governance.  The risk assessment in relation to the valuation of use of the plant, property and equipment had been reconsidered in line with the International Financial Reporting Standards (IFRS).  The technical review for the classification of the value in use for the Sproughton Road site had been treated as undetermined (on the basis that it was not earning any rental income), when it was best suited under the definition of investment (capital) property.  The Sproughton Road site (of £10m value) was therefore upheld as ‘’retained at market value’.      

 

21.3    Mr Rickett confirmed that this would be the last year that PricewaterhouseCoopers would act as Auditors for IBC and he assured the Committee that he would be working with the incoming auditors to ensure a smooth handover.

 

21.4    Councillor Phillips asked why the net liability of the pension scheme had increased £20m over the year?  It was agreed that further details on this would be supplied to the Committee members after the meeting.  It was noted that within the Work Programme, the SCC Pensions Service officers were due to be invited to the December 2015 meeting to provide further information. 

 

21.5    Councillor Hyde-Chambers asked why, within the General Fund Income and Expenditure Account the outturn variance for Services showed a £6.7m variance?  It was agreed that further information on this would be supplied to Committee members after the meeting.

 

Resolved:

 

1.    that the Annual Statement of Accounts 2014/15, attached at Appendix 1 to report Ref No: AG/15/07, be noted and submitted to Council for approval.

 

2.    that the Annual Governance Statement for the year ended 31 March 2015, attached at Appendix 2 to report Ref No: AG/15/07, be noted and submitted to Council for approval.

 

3.    that the Annual report to those charged with Governance (ISA 260), attached at Appendix 3 to report Ref No: AG/15/07, be noted.

 

4.    that the notice of availability of accounts and supporting information for inspection by the public, attached at Appendix 4 t report Ref No: AG/15/07, be noted.

22.

AG/15/08 Financial Management and Control Corporate Budget Monitoring - First Quarter 2015/16 pdf icon PDF 138 KB

Additional documents:

Minutes:

22.1    The Head of Resource Management explained that as the Audit & Governance Committee meetings were limited to four per annum, it had not been possible for this report to be considered by the Committee prior to it being submitted to Executive.  Therefore, as the report had been considered by Executive on 11 August 2015, revised recommendations were circulated.

 

22.2    Councillor Phillips asked why £23k of leases funded by loans had been added to the capital programme in 2015/16?  It was agreed that further information on this would be supplied to Committee members after the meeting.  Concern was expressed that there was a deficit in the capital programme.  It was explained that Executive assessed the figures on an ongoing basis to make any changes to the capital programme based on the expected receipts forecast.  It was agreed that further information on this would be supplied to Committee members after the meeting. 

 

            Resolved:

 

1.    that the service budget performance for the General Fund, be noted.

 

2.    that, at Executive on 11 August 2015 it was approved that a Supplementary Estimate from ‘Additional Commitments’ for General Fund services of £170,000, be noted.

 

3.    that the future year effects for the General Fund, be noted.

 

4.    that the service budget performance for the Housing Revenue Account, be noted.

 

5.    that the budget performance for the Shared Revenues Partnership (SRP), be noted.

 

6.    that the position on the 2015/16 and future years Capital Programme and financing resources, be noted.

 

7.    that at Executive on 11 August 2015, the changes to the Capital Programme detailed in paragraphs 10.2 were approved, be noted. 

 

8.    that the position in respect of the Council’s Treasury Management activities during 2015/16, be noted.

 

9.    that at Executive on 11 August 2015, £85,457.94, relating to business rates payable by Nowtrend Ltd, was authorised for write off against the business rates bad debt provision, be noted.

 

10.that at Executive on 11 August 2015, £108,384.21, relating to Council Tax payable by City Living Developments (Ipswich) Limited, was authorised for write off against the Council Tax bad debt provision, be noted. 

23.

AG/15/09 Internal Audit - Recently Issued Reports pdf icon PDF 101 KB

Additional documents:

Minutes:

            Resolved:

 

that the contents of the Audit reports on the following, be noted and the recommendations within the following reports be endorsed.

 

1.    IBC – NNDR 2014-15 (SRPi003)

2.    IBC – Council Tax 2014-15 (SRPi002)

3.    Payroll 2014-15 (RM004)

4.    Treasury Management 2014-15 (RM003)

24.

AG/15/10 Audit & Governance Committee Future Work Programme 2015/16 pdf icon PDF 78 KB

Additional documents:

Minutes:

Resolved:

 

that the Audit & Governance Committee Work Programme 2015/16, be agreed.

25.

Exclusion of Public

To consider excluding the public (including the Press) from the meeting during consideration of the following item(s) under section 100(A) of the Local Government Act 1972 as it is likely that if members of the public were present during that item there would be disclosure to them of exempt information as defined within paragraph 3 of Part 1 of Schedule 12A of the Act.

Minutes:

Resolved:

 

that the public (including the Press) be excluded from the meeting during the consideration of the following item(s) under section 100(A) of the Local Government Act 1972 as it is likely that if members of the public were present during that item there would be disclosure to them of exempt information as defined within paragraph 3 of part 1 of Schedule 12A of the Act.

26.

Unconfirmed Exempt Minutes of the meeting held on 2 June 2015

27.

AG/15/11 Internal Audit - Recently Issued Reports