Agenda item

Catherine Banks, Audit Manager, Audit Commission.

The Joint Committee welcomed Catherine Banks, Audit Manager and Kit Dixon, Officers from the Audit Commission who were in attendance to give an overview of the Annual Audit Letter 2009/2010 for the Central Durham Crematorium Joint Committee (for copy, see file of minutes).

The Audit Manager explained that the Annual Audit Letter was positive overall and contained several key messages.  It was noted that the Audit Opinion for the Central Durham Crematorium Joint Committee was unqualified and the quality of the accounts and supporting papers was much higher than the previous year.  Members heard that in respect of Value for Money, the approach to financial reporting and internal control had improved over the last 12 months and the Audit Commission had concluded there were proper arrangements in place to secure economy, efficiency and effectiveness in the use of resources.  The Audit Manager informed Councillors that issues that may impact upon the Joint Committee included the Government’s CSR and the requirement for the Crematorium to fit mercury abatement equipment.  Members noted that for the 2010/11 the accounts for the Joint Committee would need to be in compliance with the International Financial Reporting Standards (IFRS) and that reasonable progress had been made in this regard. 

The Head of Finance, HR and Business Support, Neighbourhood Services, Paul Darby explained that the IFRS requires the financial position from the previous year end be “recast” in the proscribed format and that the relevant staff had received training in the IFRS and would liaise with Audit Commission Officers.  Members also noted that the additional work and training had been factored into the ongoing Work Plan for the accounts and the Annual Audit Report should be presented to Members at the April 2011 meeting, with a draft Annual Governance Statement (AGS) and the recast 2009/10 Accounts, showing Members how the reporting format changes moving to IFRS compliance. 

The Audit Manager informed Councillors that another key point raised within the Annual Audit Letter was that of Members’ Declarations of Interest and the Code of Conduct for Members should be signed for the Joint Committee specifically, in addition to any already signed for Durham County Council or Spennymoor Town Council.

The Joint Committee were asked to note that on page 6 of the Annual Audit Letter contained a table which was incorrectly labelled, with the correct table being:

Resolved:

That the Annual Audit Letter, subject to the amendment to the table on page 6 of the Letter, be noted.