Skip to main content

Joint Audit Committee Minutes 21 January 2019

Joint Audit Committee

DATE: Monday January 21st 2019

TIME:  1pm, open to the public from 2.30pm

VENUE: Conference room, Office of the Police & Crime Commissioner, St George’s Chambers, St George’s Street, Winchester, SO23 8AJ

CONTACT: Shirley Semke, 02380 479682

 

DECLARATION OF INTERESTS

Members were mindful that, where they believed they had a personal or prejudicial interest in any matter to be considered at the meeting, they should at the time of the debate, declare their interest and consider whether to leave the meeting whilst the matter was discussed. There were no declarations of interest.

361. APOLOGIES
Terry Lowe, Clare Simkin

362. CHAIR’S REPORT (ITEM 8)
The Chair’s draft report was shared with members in their private meeting who confirmed their agreement with the content. The report will now be shared with The PCC and CC.

363. MINUTES OF THE MEETING HELD ON 19th November 2018, MATTERS ARISING AND ACTION LOG (ITEM 9)
The minutes were agreed as a true and proper record. The committee confirmed their approval of the Terms of Reference (ToR) and extended their thanks to AL and RC for their help in completing them. The ToR will now be sent to the PCC and CC for final approval and adoption.
Action (79): ToR to be sent to PCC and CC for final approval and adoption.
The Action Log was reviewed and updated in the confidential session.

364. TREASURY MANAGEMENT STRATEGY 2019/20 (ITEM 10)
AB presented the report with apologies for the late circulation. The report is a standard format changed by the government, now more streamlined and focusing on investment and borrowing. Attention was drawn to the summary table on p4 which gives a snapshot of the cash position and numbers will be improved slightly following the budget report. A reduction in cash balances is forecast during the coming year. The Borrowing Strategy on p5 shows continuing internal borrowing, no further borrowing is planned for 2019 and the team are working closely with Arlingclose advisors. Investments on p7 show a continuation of the strategy as in previous years. The aim is for diversification to avoid risks, avoiding banks and aiming to increase the yield to £10 million in the coming year.
MN asked why the on p4 the ACRO (a national office hosted by Hampshire) balance remains the same. RC advised that the balance will go down over time. £5 million sureties are held as a reserve balance in should ACRO cease to exist.
MN also pointed out inaccuracies in Appendix B which AB agreed to rectify.
KP queried whether investments are only in sterling. AB advised this is so as it would be too speculative otherwise.
LM referred to Appendix A and queried when forecast assumptions will be reappraised. Arlingclose supply the information and are in constant communication. Information is updated quarterly and any material changes highlighted. The next update is due at the outturn position in July. PL requested that if there should be dramatic changes before July an update is provided in April.
MN acknowledged the strategy report on behalf of the committee and noted the recommendations that will be put forward to the PCC for a decision.

365. EXTERNAL AUDIT – AUDIT PLANNING REPORT 2018/19 (ITEM 11)
MY presented the report which sets out how the External Auditors intend to complete their responsibilities for the coming year. On p5 risks are identified by new colour coding and attention drawn to 2 red risks. Section 2 of the report is obligatory reporting and not an indication of an issue.
MN noted that EY are also auditors for the pension fund and questioned whether this was a conflict of interest. MY confirmed this as a benefit which allows for the integration of audit, providing a ‘one stop shop’ with no conflict. Audit is procured by the PSAA (Public Sector Audit Appointments) and there are no issues with this format. AL supported this and advised the Police Pension fund is GAD (Government Actuaries Department).
PL queried whether IFRS 15 is significant to HC and the OPCC. MY confirmed that no issues or impact anticipated but a paper will be required from the finance team.
KP queried whether work is on track. MY advised that planning is completed and work is being pulled forward to February from March ahead of accounts sign-off on July 23rd.
LM queried p9. MY advised this a requirement, linked to management override and auditors are required to perform procedures to recognize. Inappropriate capitalization is spend for the benefit of the organisation, not personal gain e.g. not recording of information. AL noted this is more likely to be due to error than fraud.
VFM (Value for Money) concludes no significant risks. It was highlighted that fees have reduced by 23% from the previous year.
PL asked whether it is the job of the committee to agree the materiality of the accounts. It was confirmed that the ToR do not allow this. AL confirmed that the wording should be amended.

366. EXTERNAL AUDIT ANNUAL AUDIT LETTER (ITEM 12)
MY presented the Annual Audit letter which relates to the previous year noting this as a more public facing version of audit results and in less complex language.
PL questioned whether there is an actual letter or whether it is the entire report. MY confirmed it is the entire report which is in a set format and intended to be a public facing report of the work completed in 2017/18. A letter would be less transparent and the Executive Summary on p4/5 sets out the position concisely.
LM referred to IFRS 16. MY informed this is a change in accounting standard which will come in to effect in 2019/20.
PL questioned how a lease is valued for the balance sheet. MY advised that the Code of Practice for 2019/20 is not yet published and he is currently unable to respond though here will be a calculation laid out for the valuation of assets.
AL advised that information will be available to the committee when requirements are known. The committee thanked MY for his report.

367. ANNUAL REVIEW OF THE EFFECTIVENESS OF THE COMMITTEE (ITEM 13) (verbal update)
The Chair’s draft report was shared with members in their private meeting who confirmed their agreement with the content. The report will now be shared with The PCC and CC.

368. INTERNAL AUDIT PROGRESS REPORT 2018/19 (ITEM 14)
KS joined the meeting by conference call. The regular update outlines progress so far on the annual audit plan work. An update has already been provided on the outstanding action. KS was thanked for her report. KS advised that there will be a large submission of reports for the next meeting to include TVP (Thames Valley Police) collaboration audits. KS and NS (Neil Shovell) are working together on a plan which will be circulated between meetings and brought formally to the next meeting. More general days are to be included in the plan for flexibility and contingency.

369. ANY OTHER BUSINESS (ITEM 15)
It was agreed that the next meeting will be held in April and that the first meeting for 2020 will be in February.

370. DATE OF NEXT MEETING
The next meeting is Wednesday April 24th 2019.

 

Agenda

DATE: Monday January 21st 2019
TIME: 1pm
VENUE: Conference room, Office of the Police & Crime Commissioner, St George’s Chambers, St George’s Street, Winchester, SO23 8AJ
CONTACT: Shirley Semke, 02380 479682

 

1. DECLARATION OF INTERESTS
All members who believe they have a personal or prejudicial interest in any matter to be considered at the meeting must declare that interest and consider whether to leave the meeting whilst the matter is discussed, save for exercising any right to speak. The declaration should be made at the time of the relevant debate.

2. APOLOGIES

PART 1 – MATTERS TO BE CONSIDERED IN PRIVATE
EXCLUSION OF PRESS AND PUBLIC
To resolve that the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraph 3 & 7 of Part 1 of Schedule 12A to the Local Government Act 1972, being information relating to the financial or business affairs of any authority that hold that information and any action taken or to be taken in connection with the prevention, investigation or prosecution of crime. Further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the report.

3. CONFIDENTIAL MINUTES
To receive, and confirm as a correct record, the confidential minutes of the meeting of the Committee held on 19th November 2018.

4. OFFICE OF THE POLICE AND CRIME COMMISSIONER’S STRATEGIC RISK REGISTER UPDATE
To consider the Strategic Risk Register for the OPCC.

5. HAMPSHIRE CONSTABULARY’S STRATEGIC RISK REGISTER UPDATE
To consider the report of the Strategic Risk Register for HC.

6. INTERNAL AUDIT PROGRESS REPORT – CONFIDENTIAL
To consider a confidential report of the Chief Internal Auditor together with copies of the internal audit reports issued since the last report in November 2018.

7. INTERNAL AUDIT – OUTSTANDING ACTIONS

PART 2- MATTERS TO BE CONSIDERED IN THE PRESENCE OF THE PRESS AND PUBLIC (this session will commence at 2pm)

8. CHAIR’S REPORT (Oral)
The Chair to report as appropriate.

9. MINUTES, MATTERS ARISING AND ACTION LOG
To agree the minutes of the meeting on 19 November 2018 as a correct record, and consider any matters arising.

10. TREASURY MANAGEMENT STRATEGY 2019/20
To consider the report of the Chief Finance Officer on the Treasury Management strategy.

11. EXTERNAL AUDIT – AUDIT PLANNING REPORT 2018/19
To consider the report of the external auditors.

12. EXTERNAL AUDIT ANNUAL AUDIT LETTER
To consider the Annual External Audit Letter.

13. ANNUAL REVIEW OF THE EFFECTIVENESS OF THE JOINT AUDIT
COMMITTEE
To consider the annual review (verbal update)

14. INTERNAL AUDIT PROGRESS REPORT 2018/19
To consider a report of the Chief Internal Auditor on progress to date.

15. ANY OTHER BUSINESS

16. DATE OF NEXT MEETING/FORWARD PLAN
The next meeting is in May 2019, date to be confirmed.

MEETING CLOSED

PART 3 – PRIVATE DISCUSSION WITH INTERNAL AND EXTERNAL AUDITORS
(IF REQUIRED)

ABOUT THIS AGENDA:

This agenda is available on Police and Crime Commissioner’s website (www.hampshire-pcc.gov.uk) and can be provided, on request to 01962 871595, in alternative versions (such as large print, Braille or audio) and in alternative languages. Any papers are also available on request.

ABOUT THIS MEETING:

The press and public are welcome to attend the public sessions of the meeting.

If you have any particular access requirements, for example if you require wheelchair access or a hearing loop, please contact us on 01962 871595 in advance of the meeting to make the necessary arrangements.

This site uses cookies

We use necessary cookies to make our site work, and we'd like to use analytics cookies to keep improving our website. Using this tool will set a cookie on your device to remember your preferences. For more information please see our Cookies Page.


Necessary Cookies

Necessary cookies enable core functionality. You may disable these by changing your browser settings, but this may affect how the website functions.


Google Analytics

We use cookies to compile aggregate data about site traffic and site interactions in order to offer better site experiences and tools in the future.