Decision details

The Finance Lead Specialist (Section 151 Officer) reported that the annual review of the Audit Committee’s effectiveness had been carried out using principles established by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The conclusion of the review was that the Committee could demonstrate that it had been established in accordance with best practice and that it continued to operate effectively, whilst operating without an independent member.  The Committee needed to be alert to any changes in its membership and the expertise of its Members so that suitable training could be arranged, and Appendix 3 to the report included a skills framework produced by CIPFA.

Members were reminded that the Committee had, at its meeting in December 2018, given consideration to whether or not to seek an independent member, however, had concluded that this was not necessary.

CIPFA’s Practical Guidance also included possible wider functions for audit committees:-

•           considering governance, risk or control matters at the request of other committees or statutory officers;

•           working with local standards committees to support ethical values and reviewing the arrangements to support those values; and

•           reviewing and monitoring treasury management arrangements in accordance with the CIPFA Treasury Management Code of Practice.

The Audit Committee did support some work of the Standards Committee to support ethical values, particularly around reviewing whistleblowing arrangements.  For South Lakeland District Council, the treasury management scrutiny function was carried out by the Overview and Scrutiny Committee.  The Terms of Reference did not refer to requests for consideration of matters from other committees or statutory officers: any such proposals would be considered on a case-by-case basis, bearing in mind the need to maintain the independence of the Audit Committee.

RESOLVED – That

(1)        the review, and its conclusion that the Audit Committee is operating effectively in all material aspects, be approved; and

(2)        the skills framework for members of the Audit Committee, as at Appendix 3 to the report, be noted.