Agenda and minutes

Audit and Risk Management Committee - Thursday, 1st September, 2016 7.00 pm

Venue: Conference Room, Civic Centre, Silver Street, Enfield, EN1 3XA. View directions

Contact: Metin Halil 

Items
No. Item

123.

WELCOME AND APOLOGIES FOR ABSENCE

Minutes:

Councillor Maguire (Chair) welcomed everyone to the meeting.

 

Apologies for absence were received from Councillors Neville, Savva, Jemal and Jiagge.

Apologies for absence were also received from James Rolfe (Director – Finance, Resources & Customer Services), Asmat Hussain (Assistant Director – Legal & Governance) & Christine Webster ( Head – Internal Audit & Risk Management).

 

There would also be a private meeting between the Auditors (BDO)  Members at the end of the meeting (15 minutes).

124.

DECLARATION OF INTERESTS

Members of the Committee are invited to identify any disclosable pecuniary, other pecuniary or non - pecuniary interests relevant to items on the agenda.

Minutes:

There were no declarations of interest.

125.

DRAFT STATEMENT OF ACCOUNTS 2015/16, DRAFT ANNUAL GOVERNANCE STATEMENT 2015/16 & QUESTION/RESPONSE DOCUMENT. pdf icon PDF 637 KB

To review and consider the draft Statement of Accounts 2015/16 in advance of the final (audit) statement being submitted for consideration and approval at the next meeting on 29 September 2016.

 

A copy of the draft statement is attached with members being asked to focus their consideration around each of the following areas:

 

·         Explanatory Foreword

·         Core Financial Statements

·         Notes to the Core Financial Statements

·         Housing Revenue Account (HRA)

·         Pension Fund

 

Where possible, members are asked to provide advance notice of any queries or comments they may have on the draft accounts to ensure a response can be provided at the meeting. These can be forwarded direct to Isabel Brittain (Assistant Director – Corporate Finance) via e-mail :

 

Isabel.brittain@enfield.gov.uk

 

 

 

The question & response document will be ‘To Follow’.

Additional documents:

Minutes:

RECEIVED the draft 2015/16 Statement of Accounts  in advance of the final statement being submitted for consideration and approval at the next Audit Committee meeting on 29 September 2016.

 

NOTED

 

1.    The Chair announced that there would be a 15 minute private meeting with the Auditors (BDO) and members, at the end of this discussion meeting regarding the draft accounts.

2.    Isabel Brittain, Assistant Director – Finance and Business Support, had received councillors questions regarding the draft statement of accounts 2015/16, since the last meeting (4 July 2016), with the finance team providing responses for these. The questions and responses have been attached to these minutes for reference purposes.

3.    It was agreed that the finance team would go through each question and response and answer any queries that may arise from each response:

 

3.1 – Debate by members and answers to questions by officers regarding the increase in debt over 2015/16 and since that date. Officers clarified that the Meridian Water and Housing Gateway schemes would eventually get a return but it would not necessarily have the net effect of reducing debt down or doesn’t need to be the net effect to reducing the debt down. It would not all be dependent on the sale of units either. The negotiated contract (Meridian Water) was for staged payments to be received. When the developer draws down a piece of land, the Council would receive 15% of that land immediately, then a further 10% 12 months later with the remainder 2 years later. These payments would be received regardless of any unit sales, the developer is contractually obliged before they can even start construction, to pay the Council back. This was therefore a low risk contract for the Council.

The Council borrowing limit of £800m related to borrowing across the organisation. The Meridian Water project had a cap which the Council did not want to exceed, of £170m.

         3.2 -   Members agreed the comprehensive answer to this question, detailed at question 2 of the list.

         3.3 - Debate by members and answers to questions by officers regarding why the Capital projections were significantly different to outturn. Officers clarified that the vast majority of slippage  was in relation to the Housing Revenue programme (HRA). Finance are in talks with the department to increase their profiling of the budget. What they have been undertaking was that they if the project started in the financial year, they would put the entire project budget into the financial year whereby 9 times out of ten that project budget would not have all been spent within 12 months. Finance are working with project managers, to profile their spend in a better way.

                    Officers also clarified the last sentence in their response which stated “The HRA underspend is a result of LBE past investment being passed to Enfield Innovations for financing”.  There had been a reduction aswell as a re-profiling in the HRA programme. What was going to be delivered as part of the HRA programme, was now  ...  view the full minutes text for item 125.

126.

MINUTES pdf icon PDF 205 KB

Audit & Risk Management Committee

 

a.         To receive and agree the minutes of the Audit Committee meeting held on Monday 4 July 2016, as a correct record.

 

b.         To note the update on actions identified at the last meeting.

 

Additional documents:

Minutes:

AGREED that the minutes of the Audit & Risk Management Committee held on the 4 July 2016 be approved and signed as a correct record.

 

NOTED the progress update on actions identified at previous meetings.

127.

AUDIT & RISK MANAGEMENT COMMITTEE WORK PROGRAMME 2016/17 pdf icon PDF 172 KB

The Committee is asked to agree the Work Programme put forward for the 2016/17 municipal year along with the timetabling of each issue on the Work Programme.

 

Minutes:

RECEIVED and noted the Committee’s updated work programme for 2016/17.

 

AGREED to approve the outline work programme for 2016/17, subject to the inclusion of Business Rates as an agenda item to be heard at a future Audit & Risk Management meeting.

128.

DATES OF FUTURE MEETINGS

To note the dates agreed for future meetings of the Audit Committee:

 

Thursday 29 September 2016

Tuesday 1 November 2016

Thursday 12 January 2017

Tuesday 7 March 2017

 

 

(All meetings to commence at 7.00pm unless otherwise agreed.)

 

Minutes:

NOTED the dates of future meetings:

 

Thursday 29 September 2016

Tuesday 1 November 2016

Thursday 12 January 2017

Tuesday 7 March 2017

 

 

(All meetings to commence at 7.00pm unless otherwise agreed.)