Agenda item

·        External Audit 2009/2010 – Annual Governance Report and Annual Audit Letter – Progress Update.

The Head of Finance, HR and Business Support referred Members to the report setting out the updated position relating to the Annual Governance Report and the Annual Audit Letter (for copy, see file of minutes).

Members were informed that, as noted in the previous item, there had been improvements to the governance arrangements for the Joint Committee and that there was the requirement to move to IFRS accounting.  Councillors also learned that in response to recommendations made previously by the Joint Committee, there had been additional improvements made and suggestions to mitigate concerns raised in the previous Audit included:

·        An alternative method of maintaining books and records, to either use the DCC Financial Management System (ORACLE) under a separate company, solely use for the Joint Committee or to procure a “stand-alone” Financial Management System for the Joint Committee (SAGE). 

The Head of Finance, HR and Business Support explained that in conversation with Spennymoor Town Council, who use SAGE for their accounts, it had been noted that SAGE could be more efficient for use by the Joint Committee than the ORACLE system.  It was noted that further discussions with the Treasurer, Superintendent and Registrar and the DCC IT Section had led to the conclusion that the most cost and time effective solution, in order to ensure good internal control and sound financial management for the Joint Committee, would be to procure the SAGE system and train the requisite staff accordingly.  Members were asked for their approval or otherwise in this regard, noting that there was scope within the budget for the proposals.

·        A written agreement regarding Treasury Management.  Members recalled that this was approved at the meeting of the Joint Committee held 29 September 2010 and Members noted that this was subsequently signed and was now in effect.

·        Formal agreement of the Account Balance between DCC and the Central Durham Crematorium Joint Committee.  The Head of Finance, HR and Business Support explained that further discussions with the Audit Manager had noted that a formal agreement was not necessary, rather a year-end reconciliation would need to be presented to the Joint Committee as part of the 2010/2011 Final Outturn Report.

·        As highlighted by External Audit, there was a suggestion that the Joint Committee formally adopt the lead Authority Code of Conduct and that Members sign this together with completing a separate Declaration of Interest form for the Joint Committee.  Members were asked to note that copies were attached to the agenda papers.

·        IFRS Financial Reporting would be required.  The Head of Finance, HR and Business Support explained that as previously noted the 2009/10 Accounts would need to be recast and Audit Commission and CIPFA workshops would be attended in order to realise the full impact of IFRS.

Councillor J Marr queried a specific issue relating to the Declaration of Interest, the Clerk to the Joint Committee, Sharon Spence noted that she would be happy to advise Members as regards any queries in this matter.

Councillor J Graham asked whether there was a Code of Conduct for Officers, similar to the Code of Conduct for Members.  Councillor N Foster noted that there was and it was a public document with the Head of Finance, HR and Business Support adding that it should be available on the DCC website and that a recent meeting of the DCC Extended Management Team had reinforced issues regarding the Code of Conduct for DCC Officers.

The Head of Finance, HR and Business Support referred Members to the recommendations as set out in the Report.

Resolved:

(a)         That the Members of the Joint Committee note the progress made with                       regards to addressing the External Audit recommendations arising from                      the Annual Governance Report and Annual Audit Letter 2009/10.

(b)         That the Members of the Joint Committee note the contents of the                                Lead Authority Member Code of Conduct, formally adopt these and                                     agree to sign the written undertaking.

(c)        That the Members of the Joint Committee complete and sign the         Declaration of Personal Interest.