Agenda item

The Joint Committee welcomed both Cameron Waddell, District Auditor and Catherine Banks, Audit Manager from the Audit Commission who were in attendance to give an overview of the Report setting out the Audit Opinion and Value for Money Conclusion for the Statement of Accounts 2009/2010 for the Central Durham Crematorium Joint Committee (for copy, see file of minutes).

The District Auditor explained that the key messages for Members to note were that it was proposed to offer an unqualified opinion, some small material errors had been noted, there was considerable improvement since the audit last year due to significant changes having been made and the processes for Internal Control were now adequate in overall terms.  The Joint Committee were informed that the audit did note that there were areas in which efficiencies could be made, and example being that the use of Oracle, software generally used for the financial records for large multinational corporations, was too cumbersome for the smaller scale accounts of the Central Durham Crematorium Joint Committee and this led to many manual alterations having to be applied, an inefficient use of Officer time.

Members noted the independence of the audit, with no members of the Audit Commission staff carrying out the audit having connections to Members of the Joint Committee or Officers of the two constituent Authorities.  The District Auditor added that the Audit Commission had not carried out any consultancy work for the Joint Committee, reiterating the independence of the audit.

The Joint Committee were referred to the next steps as set out in the Report and asked to note that there was no impact upon the unqualified opinion made on the accounts by the slight amendments to minor material errors.  The District Auditor added that the letter to the Audit Commission outlining treasury management arrangements should note those amendments accordingly.    

The Head of Finance, HR and Business Support, Paul Darby added that the audit had gone well, with both sides having a clearer understanding of the process.  Members were asked to note the material adjustments were set out at the next agenda item.  The Joint Committee noted that an action plan taking on board the recommendations made within the Audit Report were set out at Appendix 6 to the Annual Governance Statement (AGS).  The Head of Finance, HR and Business Support explained that the issue of using the Oracle system for the Central Durham Crematorium accounts had already been identified and that proposals to resolve this issue would be brought to Members at the next ordinary meeting of the Joint Committee in January.

Resolved:

That the report be noted.