Agenda item

Report of the Director - Finance and Corporate Services

The Director for Finance and Corporate Services presented the Update on the Redmond Review of Public Sector Audit Report.

In relation to the Redmond Review, the Director for Finance and Corporate Services noted that a key consideration for the Group was whether it supported the principle of appointing an Independent Member. He noted that this recommendation had been brought to the Group previously and had been rejected as it had been considered that there had been enough expertise and experience within the Group at that time, and that it was for the Group to review whether it wished to recommend appointing one now. He said that there could be challenge in appointing an Independent Member who had relevant experience and given the low remuneration.

Members of the Group asked how the Independent Member would be chosen and by whom. The Director for Finance and Corporate Services said that a person specification and job description would be drawn up and the position would be advertised and an interview process would be undertaken.

Members of the Group said that having an Independent Member could offer a different perspective, a fresh take on matters and may assist in digesting aspects of reports and be someone to raise questions with.

Councillor Thomas suggested that there may be benefit in appointing more than one, perhaps two or three, Independent Members to the Group. The Chair said that that could be something for review in the future and given that the current recommendation was to appoint one.

In relation to questions about appropriate qualifications, Ms Thomas suggested that a chartered accountant qualification and experience of financial audit would be beneficial.

The Group voted unanimously in favour of appointing an Independent Member and the Director for Finance and Corporate Services confirmed that a report would be taken to Full Council with the recommendation from this Group.

The Director for Finance and Corporate Services referred the Group to paragraphs 4.5.1 through 4.5.5 of the report which focussed on matters such as market stability and fee structures, publishing dates of accounts, system leadership options, enhancing the local audit function and improving transparency of local authority accounts.

The Director for Finance and Corporate Services said that the Council offered training for Members ahead of the publication of the accounts and tried to explain key messages but appreciated that they could be difficult to understand.

In relation to Effective Scrutiny of Treasury Management, the Director for Finance and Corporate Services referred to paragraph 4.6 and appendix B of the report which set out some suggested recommendations, such as Officers suggesting questions pertinent to the report that the group may wish to consider, seeking feedback from the group on the technical content of reports, including the Treasury Management Policy Statement as part of the Capital and Investment Strategy, appointing an Independent Person, requesting that the group raise questions in advance of the scrutiny meeting and asking for suggestions from the group on how to improve reports.

Councillor Birch referred to the enhancement of transparency through the provision of a summary document at the end of the Accounts. The Director for Finance and Corporate Services said that the Council sought to follow best practice and was waiting for guidance from CIPFA as to how this should be set out.

Councillor Calvert referred to fee structures and scale fees and the Director for Finance and Corporate Services said that the fees were set nationally by the PSAA and that they went out to consultation with local authorities for future years. He said that fees had been increasing over the past number of years but would hopefully plateau.

Councillor Calvert asked about publishing dates and how realistic they were and the Director for Finance and Corporate Services said that some local authorities may be in the position of having to get qualified opinions to close their accounts but confirmed that the Council was not in that position.

It was RESOLVED that Governance Scrutiny Group;

a)      Considered the recommendation at paragraph 4.5.3 (b) to appoint an independent member to the Governance Scrutiny Group subject to approval by full Council

b)      Considered the recommendations arising from CIPFA’s Self-assessment ‘Effective Scrutiny of Treasury Management’ at paragraph 4.6 and Appendix B.