Scribd
Upload
49 views

Finance, Audit & Risk Committee Annual Report: North Hertfordshire District Council

The document is the annual report of the Finance, Audit & Risk Committee of North Hertfordshire District Council for 2015-2016. It summarizes the committee's role in providing oversight of financial reporting, risk management, and internal controls. It discusses the committee's membership and effectiveness. It also outlines the committee's achievements over the year, including reviews of internal audit reports, risk management updates, financial monitoring, and a building control project. Finally, it discusses the committee's planned work for 2016-2017.

Uploaded by

Ewoir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
49 views

Finance, Audit & Risk Committee Annual Report: North Hertfordshire District Council

The document is the annual report of the Finance, Audit & Risk Committee of North Hertfordshire District Council for 2015-2016. It summarizes the committee's role in providing oversight of financial reporting, risk management, and internal controls. It discusses the committee's membership and effectiveness. It also outlines the committee's achievements over the year, including reviews of internal audit reports, risk management updates, financial monitoring, and a building control project. Finally, it discusses the committee's planned work for 2016-2017.

Uploaded by

Ewoir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

North Hertfordshire District Council

Finance, Audit &


Risk Committee
Annual Report
2015 to 2016

FAR COMMITTEE (13.6.16)


Contents

Introduction from the Chairman

Role of the Committee

Effectiveness

Members of the Committee

Meetings in 2015-16

Main Achievements

Planned work for 2016-17

FAR COMMITTEE (13.6.16)


Introduction from the Finance Audit & Risk Committee Chairman

I am pleased to present the Annual Report of the Finance, Audit & Risk (FAR) Committee
which describes the Committees work and achievements over a 12 month period to March
2016.

I hope this Annual Report demonstrates the importance of the role of the Finance Audit &
Risk Committee and the contribution it makes to the Councils overall governance. All
meetings are open to the public and I would encourage residents to come along and see the
Committee in action.

As well as elected members, the Committee is supported by the Strategic Director of


Finance, Policy & Governance; the Head of Finance Performance & Asset Management; the
Accountancy and Risk & Performance Managers. Similarly representatives of the Councils
audit services provided by the Shared Internal Audit Service (SIAS) and our external auditors
regularly attend the meetings of the Committee. During the year our external auditors
changed from Grant Thornton to Ernst and Young. My thanks go to the former for their
contribution to the Committee, and I would like to welcome the latter.

I would like to express my gratitude to those Officers and Members who have, over the past
12 months, attended the Committee to present and discuss reports. I would like to thank
Andy Cavanagh who has contributed to the Committee as Lead Officer for a number of
years and left NHDC during this year. I would particularly like to express my thanks to the
Vice Chairman, Councillor John Booth, who has left the Committee to take up the position as
Chairman of the Council. I would like to thank him for his contribution to the Committee over
the past six years.

Councillor Michael Weeks

May 2016

FAR COMMITTEE (13.6.16)


Role of the Committee

The purpose of the FAR Committee is to provide independent scrutiny and assurance of
finance, audit and internal control matters and to provide effective scrutiny of financial
matters. This also encompasses corporate governance and risk management.

The Committee reports to Cabinet. The work of the Committee provides assurance to
Cabinet and Council on the annual accounts, risk management, audit and internal control.

The full Terms of Reference for this Committee are provided in the Councils Constitution.
http://www.north-herts.gov.uk/sites/northherts-cms/files/Constitution%20Section%2010_0.pdf

Effectiveness

The Code of Practice for Internal Audit in Local Government 2006 requires an Audit
Committee to review its own remit and effectiveness.

Such a review was carried out by the Audit Manager within the Shared Internal Audit Service
who has responsibility for the provision of the Internal Audit Service at North Herts District
Council. It was reported to the June 2015 meeting of the FAR Committee. This review
concluded that the Committee was operating effectively.

A further review will again be carried out and reported to the June 2016 meeting of the
Committee.

Members of the Committee

The following Members were appointed to the Committee for 2014/15:

Councillor M E Weeks Conservative Chairman


Councillor John Booth Conservative Vice Chairman
Councillor John Bishop Conservative
Councillor Simon Harwood Conservative
Councillor Lorna Kercher Labour
Councillor Jim McNally Conservative
Councillor Deepak Sangha Labour

Substitutes:

Councillor Alison Ashley Conservative


Councillor Clare Billing Labour
Councillor John Harris Conservative

To support Members appointed to the Committee, assistance was readily available from
relevant Officers. An additional development opportunity that some Members took
advantage of, was an Audit Committee training session.

FAR COMMITTEE (13.6.16)


Meetings
A work plan was agreed at the start of the year, which included regular review of the
following:
Reports of the External Auditor (Grant Thornton up to December 2015, Ernst and
Young from January 2016 onwards)
Internal Audit Reports (Shared Internal Audit Service SIAS) to enable monitoring of
the delivery of the internal audit service
Risk Management Updates
Financial monitoring including Treasury Management Activity and Revenue/Capital
monitoring
As and when required, the planned Agenda is supplemented by reports where the
Committee has requested additional information or assurance.

The Committee met five times in the year and the following reports were presented and
discussed:

15 June 2015
SIAS Methodology
The Effectiveness of the Finance Audit & Risk Committee
Annual Assurance Statement and Internal Audit Annual Report 2014-2015
SIAS update on progress against the 2015-16 audit plan
External audit update on 2014-15 audit
Risk Management Update and Annual Report on Risk Management
FAR Annual Report
Draft Annual Governance Statement for 2014-15
Revenue Budget Outturn 2014-2015
Capital Programme Outturn 2014-15
Annual Treasury Management Review 2014-15
Updated Contract Procurement Rules and Social Value recommendations
24 September 2015
Information Technology Strategy 2015-20
Progress report on the Shared Anti-Fraud Service (SAFS)
Managing Organisational Conflict in Council Roles and Duties- draft guidance
Audit findings report 2014-15
SIAS Annual Report for 2014-15
SIAS update on progress against the 2015-16 Audit Plan
Risk Management Update
Annual Governance Statement for 2014-15
Statement of Annual Accounts for 2014 -2015
First Quarter Revenue Monitoring 2015-16
First Quarter Capital Monitoring for 2015-16
First Quarter Treasury Monitoring Report for 2015-16
10 December 2015
The Annual Audit Letter for 2014-15
Certification Letter 2014-15
SIAS update on progress against the 2015-16 Audit Plan
Risk Management Update
Second Quarter Revenue Budget Monitoring 2015-16
Second Quarter Capital Monitoring for 2015-16
Second Quarter Treasury management 2015-16

FAR COMMITTEE (13.6.16)


Draft Budget 2016-17
Building Control (7 Hertfordshire Authorities) Project

25 January 2016
External Audit Update- December 2015 (Ernst and Young)
Value for Money Code of Audit Practice 2015
Corporate Business Planning- Revenue Budget 2016-17
Capital Programme 2016-17 onwards
Treasury Management Strategy for 216-17
23 March 2016
Audit Plan Year Ending 31 March 2016 (Ernst and Young)
Anti-Bribery Policy Review 2015-16
Whistleblowing Policy Review 2015-16
Update on Shared Anti-Fraud Service (SAFS)
SIAS update on progress against the 2015-16 Audit Plan
Internal Audit Plan for 2016-17
Risk Management Update
Review of the Annual Governance Statement Action Plan and Local Code of Corporate
Governance
Third Quarter Revenue Budget Monitoring 2015-16
Third Quarter Capital Monitoring 2015-16
Treasury Management Third Quarter Report 2015-16

Main Achievements

Taking the year as a whole, the Finance, Audit & Risk Committee has been successful in
maintaining a comprehensive overview of internal control and governance. In addition, it
played a key role in financial monitoring. The Chairman of the Committee was in a position
to provide an Assurance Statement on the role of the Committee to support the Annual
Governance Statement for 2015-16.

The Committee received reports on the progress and performance of the new Shared Anti-
Fraud Service (SAFS).

The Committee received a report on the Building Control Project, which allowed them to
make a recommendation to Cabinet to approve the proposal.

The Committee requested more information from the Head of Revenues, Benefits &
Information Technology on the future proposed investment and development of IT systems.
They received assurance that the service was reacting to user needs, promoting new
technology and making best use of assets.

Planned work for 2016-17

The Committee will receive the items that ensure it covers its remit. In addition the
Committee may also request reports or details of follow up actions on specific areas.

All Members of the Committee are encouraged to take advantage of the various offers of
training and development that have been made by Officers as well as some of the external

FAR COMMITTEE (13.6.16)


courses that are available. Attendance at a meeting of the Risk Management Group would
also be beneficial. This will enable Members of the Committee to discharge their
responsibilities to the best of their ability.

FAR COMMITTEE (13.6.16)

You might also like