Greenwich Council

Agenda, decisions and minutes

Venue: Committee Room 6 - Town Hall, Wellington Street, Woolwich SE18 6PW. View directions

Contact: Daniel Wilkinson  Email: daniel.wilkinson@royalgreenwich.gov.uk or 020 8921 5102

Items
No. Item

1.

Apologies for Absence

To receive apologies for absence from Members of the Panel.

Minutes:

Apologies for absence were received from Councillor David Stanley.

2.

Urgent Business

The Chair to announce any items of urgent business circulated separately from the main agenda.

Minutes:

There was no urgent business.

3.

Declarations of Interest pdf icon PDF 34 KB

Members to declare any personal and financial interests in items on the agenda.  Attention is drawn to the Council’s Constitution; the Council’s Code of Conduct and associated advice.

Additional documents:

Minutes:

Resolved –

 

That the list of Councillors’ memberships as Council appointed representatives on outside bodies, joint committees and school governing bodies be noted.

4.

Minutes pdf icon PDF 78 KB

Members are requested to confirm as an accurate record the Minutes of the meeting held on 18 July 2017.

 

No motion or discussion may take place upon the Minutes except as to their accuracy, and any question on this point will be determined by a majority of the Members of the body attending who were present when the matter in question was decided.  Once confirmed, with or without amendment, the person presiding will sign the Minutes.

Minutes:

Resolved -

 

That the minutes of the meeting of the Audit and Risk Management Panel held on 18 July 2017 be agreed and signed as a true and accurate record.

5.

Annual Audit Letter pdf icon PDF 59 KB

To note and comment upon the 2016/17 Annual Audit Letter which is scheduled to be considered at the meeting of Council on 13 December 2017

Additional documents:

Decision:

Noted the 2016/17 Annual Audit Letter.

 

Noted that the 2016/17 Annual Audit Letter is scheduled to be considered at the meeting of Council on 13 December 2017.

Minutes:

The report at the appendix was presented by the Manager, Grant Thornton. He highlighted the Audit Opinion and the Value for Money conclusion.

 

In response to questions from the Panel the Engagement Lead, Grant Thornton explained that the objection raised by a local elector was similar to that received by other local authority auditors and it was understood that it was part of a campaign. He said the ‘regeneration and growth’ risk related to the fact that the scale of the Council’s current investment in redevelopment required a different level of project management than had been required historically; he added that the Council’s arrangements in the matter were satisfactory.

 

The Panel queried why the choice of development under ‘value for money risk’ had not been the Eltham Cinema which was the one with the highest risk and the one with resource implications in 2017/18. The Manager, Grant Thornton, said that the Sutcliffe Park development had been chosen as one example of the Council’s regeneration schemes so they could consider the Council’s arrangements, which were satisfactory. It had not been felt that there was a need to look at all the other schemes in detail.

 

Resolved –

 

1.       That the 2016/17 Annual Audit Letter be noted.

 

2.       That the 2016/17 Annual Audit Letter is scheduled to be considered at the meeting of Council on 13 December 2017 be noted

6.

Auditor Progress Report / Update - November 2017 pdf icon PDF 39 KB

To note the external auditors progress report for 2017/18

Additional documents:

Decision:

Noted the external auditors progress report for 2017/18

Minutes:

The report at the appendix was presented by the Engagement Lead, Grant Thornton. He stated he had been pleased with the certification process.

 

In response to a question from the Panel the Engagement Lead, Grant Thornton clarified that it was a Government requirement that teachers’ pensions also be considered.

 

Resolved –

 

That the external auditors’ progress report for 2017/18 be noted.

7.

Treasury Management Mid-Year Report 2017/18 pdf icon PDF 157 KB

To note the Treasury Management Mid-Year Report for 2017/18 and forward comments to Council, and to note the impact of the implementation of the Markets in Financial Instrument Directive 2014/65 and in particular the classification of the authority from 3rd January 2018

Additional documents:

Decision:

Noted the Treasury Management Mid-Year Report for 2017/18.

 

Noted the impact of the implementation of the Markets in Financial

Instrument Directive 2014/65 (“MiFID II”) and in particular the classification of the authority from 3rd January 2018.

Minutes:

The report was presented by the Assistant Director, Corporate Finance & Deputy s151 Officer. He highlighted that the figures were representative of the treasury’s position on 30 September prior to the Bank of England’s bank rate rise. He explained what the Markets in Financial Instrument Directive was, and that the Royal Borough of Greenwich had decided to opt up with regard to the classification of the authority with the effect that it should be ‘business as usual’ for the authority in 2018.

 

In response to questions from the Panel, the Assistant Director, Corporate Finance & Deputy s151 Officer confirmed that the interest rate forecasts was to be revised following the Bank of England’s rate rise; the bottom rate in the forecast had been low due to the uncertainty surrounding Brexit but was expected to rise.

 

Resolved –

 

1.       That the Treasury Management Mid-Year Report for 2017/18 be noted.

 

2.       That the impact of the implementation of the Markets in Financial

Instrument Directive 2014/65 (“MiFID II”) and in particular the classification of the authority from 3rd January 2018 be noted.

8.

Public Sector Internal Audit Standards Internal Audit Charter pdf icon PDF 90 KB

To note that the Internal Audit Charter has been amended and updated as part of the Royal Borough’s commitment to adhere to the Public Sector Internal Audit Standards

Additional documents:

Decision:

Noted that the Internal Audit Charter has been amended and updated as part of the Royal Borough’s commitment to adhere to the Public Sector Internal Audit Standards.

Minutes:

The report was presented by the Assistant Director Governance and Audit (Finance).

 

In response to a question from the Chair the Assistant Director Governance and Audit (Finance) gave assurance that there would enough staff available if they were to undertake consultancy work as well as their auditing work.

 

Resolved –

 

That the Internal Audit Charter has been amended and updated as part of the Royal Borough’s commitment to adhere to the Public Sector Internal Audit Standards be noted.

9.

Strategic Risk Register pdf icon PDF 77 KB

To note the updates made to the Royal Borough’s Strategic Risk Register

Additional documents:

Decision:

Noted the updates made to the Royal Borough’s Strategic Risk Register

 

Minutes:

The report was presented by the Assistant Director Governance and Audit (Finance). He highlighted that Cyber Security had been added as a new risk to the register.

 

The Panel requested that the Risk Matrix include a key, and that the movement for risks be shown, in future reports.

Action: DoF

 

In response to questions from the Panel the Assistant Director Governance and Audit (Finance) explained that the Cyber Security risk was not as a result of anything specific to the Royal Borough of Greenwich but rather it was a current risk affecting authorities and organisations across the country.

 

The Panel felt that the report was not clear as with regard to some definitions and sought clarification as to whether is it the ‘likelihood of a risk’, or the ‘likelihood of an event’ which is considered;  the risk mitigation with regard to CORPGMT10 and 11; and

why CORPGMT3 was classified with a low likelihood when it was currently predicted that population will grow.

Action: DoF

 

In response to questions from the Panel the Assistant Director, Corporate Finance & Deputy s151 Officer stated that the schools National Funding Formula would be considered for inclusion within CORPGMT 1 and/or 4.  Confirmation would be provided on whether the Council had reserves to deal with the effect of any particular risk if it happened.

Action: DoF

 

Resolved –

 

That the updates made to the Royal Borough’s Strategic Risk Register be noted

 

10.

Internal Audit and Anti-Fraud - Performance Report April 2017 to September 2017 pdf icon PDF 137 KB

To note Internal Audit and Anti Fraud performance in relation to the delivery of the Royal Borough’s Internal Audit Plan and the prevention, detection and investigation of fraud, for the period April 2017 to September 2017

Additional documents:

Decision:

Noted Internal Audit and Anti Fraud performance in relation to the delivery of the Royal Borough’s Internal Audit Plan and the prevention, detection and investigation of fraud, for the period April 2017 to September 2017

Minutes:

The report was presented by the Assistant Director Governance and Audit (Finance). He added that the Officers would review before the end of the year the limited assurance that had been given to Charlton Manor Primary School. He advised the Panel of the amount of monies to be repaid to the Council following successful prosecutions for fraud.

 

The Panel thanked Officers for their anti-fraud work. It was suggested that the results of anti-fraud activities should be publicised.

 

In response to a question from the Panel the Assistant Director Governance and Audit (Finance) replied that the Royal Borough of Greenwich’s internal audit services could be made available to other authorities, but not for profit, and it would have direct implications on staff time. Other local authorities tended to already have such a service in place, but Registered Social Landlords were a potential area for such working.

 

Resolved –

 

That the Internal Audit and Anti Fraud performance in relation to the delivery of the Royal Borough’s Internal Audit Plan and the prevention, detection and investigation of fraud, for the period April 2017 to September 2017 be noted.