Agenda item

The Committee received a report of the Chief Internal Auditor and Corporate Fraud Manager that presented findings of the evaluation of the self-effectiveness of the Audit Committee that was carried out during the Audit Committee Workshop session on 13 February 2024, as prescribed by CIPFA in their document Audit Committees: Practical Guidance for Local Authorities and Police 2022.  The report included the amended Terms of Reference for the Audit Committee which would be presented to Full Council for formal review and approval in May 2024 (for copy see file of minutes).

P Darby stated that that there was a need to strengthen the scrutiny of the Treasury Management Outturn Report.  It was felt that instead of training 126 members to carry out this function at the council meetings, it had been proposed to include the function in the terms of reference for the Audit Committee who would be charged to provide an oversight of the report before it was submitted to full council.

Mr I Rudd asked if the Audit team still worked with third parties like New College Durham for auditing purposes and if there were sufficient resources to do this.

T Henderson confirmed that the service level agreement (SLA) with New College Durham would be terminated at the end of August 2024 following resourcing challenges, which was in addition to the decision making previously taken to terminate those SLAs previously in place with town and parish councils. She advised that the only external work remaining for the audit team to continue to deliver would be for Durham Constabulary, Durham and Darlington Fire and Rescue, Durham Crematorium and Mountsett Crematorium and the Pension Fund, as the income generated from these external clients finances the staffing budget. 

Resolved:

i)               That the completed self-assessment and evaluation of good practice for Audit Committees in Local Authorities set out in Appendix 2 be noted.

ii)             That the changes to the Audit Committee’s Terms of Reference incorporating CIPFA’s model Terms of Reference defined in the Practical Guidance for Local Authorities 2022 set out at Appendix 3, which had been incorporated into the Part 3A of council’s revised Constitution and would be subject to review and approval by Full Council on 22 May 2024 be noted.

iii)            That the training plan for Audit Committee Members for the Municipal Year 2024/25 set out at Appendix 4 be noted.

iv)           That Members would attend a training session on 31 July 2024 to address the training needs identified be agreed.

v)             That the outcome of the self-assessment would form the basis of the future annual reporting from Audit Committee, compiled by the Chair of Audit Committee, supported by the Chief Internal Auditor, which would be prepared for presentation to Full Council that demonstrated how the Audit Committee met its Terms of Reference and providing a summary of the work of the committee during the year be noted.

vi)           That free and unfettered access be provided to the Audit Committee Chair for the Head of Internal Audit, including the opportunity for a private meeting with the Committee be agreed. That this would take place ten minutes before the start of each committee meeting