It was reported that, in accordance with the wishes of the Conservative Group, the membership of the Committee had been amended for this meeting by including Councillor Thomas (J) instead of Councillor Brooksbank.

To confirm as a correct record the Minutes of the meeting of the Audit Committee held on 19 September 2012.

The Minutes of the meeting of the Audit Committee held on 19 September 2012 were confirmed as a correct record and signed by the Chairman.

To advise members that the Audit Commission has set Grant Thornton a proposed work programme and scale of fees for 2012/13.

The Committee noted the letter sent to Torbay Council on 19 November 2012.  The letter set out the proposed work programme and scale of fees for the service provided by the Council’s external auditors, Grant Thornton.  Members welcomed the 40% reduction in the fees but requested a detailed breakdown of the hourly rates for auditors, which makes up the total fees to be presented at the next meeting of the Audit Committee on 20 March 2012.

To consider the above report.

Members noted a report from the Council’s external auditors, Grant Thornton.  The report summarised the external auditors overall assessment of the Council’s management arrangements in respect of the certification process and drew attention to matters relating to individual claims. 

Members were informed that there were three claims; two claims were submitted without amendment with the third claim submitted with a small amendment.  Members were advised that the small amendment was as a result of a software issue which had been rectified.

A report to inform the Audit Committee about an interim change and that a new, amended policy is expected to be put forward for approval at the Audit Committee meeting in March 2013.

Members of the Audit Committee noted a report which advised of an interim change to the Whistleblowing Policy.  Members were advised that recent whistleblowing cases had brought to light ineffectiveness with the process and accountability within the policy.  Therefore a further review of the policy would be undertaken with a revised policy being brought before the Audit Committee in March 2013.

That the Audit Committee endorse the Treasury Management Strategy for 2013/14.

Members considered a report on the Treasury Management Strategy 2013/14.  Members were informed the strategy aimed to support the provision of all Council services by the management of the Council’s cash flow, debt and investment operations in 2013/14 and effectively control the associated risks and the pursuit of optimum performance consistent with those risks.

Resolved:

That the Treasury Management Strategy for 2013/14 be endorsed and Council be recommended to:

i)          approve the Treasury Management Strategy for 2013/14 (incorporating the Annual Investment Strategy 2013/14) as set out in Appendix 1 to the submitted report;

ii)         approve the Prudential and Treasury Indicators 2013/14 as set out in Annex 1 to the submitted report;

iii)        approve the Annual Minimum Revenue Provision Policy Statement for 2013/14 as set out in Annex 2 to the submitted report; and

iv)        in accordance with the Council’s Constitution and Financial Regulations authorise;

a)    the Chief Finance Officer to take any decisions on borrowing investments; and

b)    the Chief Finance Officer to invest temporarily or utilise surplus monies of the Council.

(Note:  Prior to consideration of the item in Minute 22/12/12 the press and public were formally excluded from the meeting on the grounds that the item involved the likely disclosure of exempt information as defined in paragraph 2 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended).)

To note a report which summarises the work undertaken by the Devon Audit Partnership, during the first six months of 2012/13 and reviews the performance and effectiveness of the Internal Audit Service.

Members considered a report which provided a summary of performance in the first six months against the internal audit plan for the 2012/13 financial year.  The report highlighted areas of work undertaken and summarised the main findings and audit opinions.  Members were advised that based upon audits undertaken in this year and previous year’s officers of the Devon Audit Partnership considered the Council to have adequate controls in place to control operations.