Agenda and minutes

* AC 13          

Apologies for absence were received from Cllrs W Cann OBE, J Hockridge, B Stephens and L Watts.

Meeting held on 24 July 2018

* AC 14          

The Minutes of the Committee Meeting held on 24 July 2018 were confirmed and signed by the Chairman as a correct record.

Presentation from the Investment Manager of Peninsula Pensions

* AC 15          

The Committee received a presentation from the Investment Manager Peninsula Pensions setting out the latest position of the pension fund.

Following the detailed presentation, the Investment Manager responded to questions and the s151 Officer outlined the background to the current position.

Report from KPMG

* AC 16          

Members were presented with the Annual Audit Letter 2017/18.  The s151 Officer explained that the letter was a shortened version of the final report, and that the letter confirmed that there were no concerns over risks and the Accounts had been completed before the end of July in line with government requirements.

It was then RESOLVED that:

The Annual Audit letter 2017/18 be noted.

Report from KPMG

* AC 17          

The s151 Officer confirmed that the Closure Letter was a procedural matter.

It was then RESOLVED that:

The Audit Closure letter be noted.

Report from Grant Thornton

* AC 18                      

The Engagement Lead presented the report, and took Members through each section. She advised Members of her intention to present a report to each Committee meeting.  In respect of the Audit Deliverables section, the Fee Letter had been issued in April and would be presented to the next meeting of the Audit Committee.  The second part of the report would cover Emerging Issues.

It was then RESOLVED that:

The Audit Progress Report and Sector Update be noted.

Report of Internal Audit Manager

* AC 19          

The Internal Audit Manager presented a report, the purpose of which was to allow the Audit Committee to review and comment upon the Internal Audit Charter and Strategy for 2018/19.

Internal audit management was provided by the Devon Audit Partnership via a contracted arrangement.  The standards for proper practice for internal audit were contained in the Public Sector Internal Audit Standards.  Both the Charter and Strategy complied with the mandatory requirements of the Public Sector Internal Audit Standards.

There being no further comment, it was then RESOLVED that the Internal Audit Carter and Strategy 2018/19 be approved.

Report of Internal Audit Manager

* AC 20          

The Internal Audit Manager presented a report that set out to inform Members of the principle activities and findings of the Council’s Internal Audit team for 2018/19 to 14 September 2018 by:

§   Showing the progress made by Internal Audit against the 2018/19 annual Internal Audit Plan, as approved by the Audit Committee in March 2018; and

§   Highlighting any revisions to the 2018/19 Internal Audit Plan.

It was then RESOLVED that the progress made against the 2018/19 Internal Audit Plan, and any key issues arising, be approved.

Report of Group Manager – Business Development

* AC 21          

The Group Manager Business Development presented a report that set out the required six monthly update to Members, including the current corporate strategic risk assessment and a summary of the management and mitigating actions to address the identified risks.  Appendix 3 to the report contained a revised Risk and Opportunity Management Strategy 2013.  Members were being asked to approve this document.

The Group Manager Business Development responded to questions.

It was then RESOLVED that Council be RECOMMENDED that:

1.      The strategic risks (Appendix 1) had been reviewed and that no further action should be considered;

2.      The Risk & Opportunity Management Strategy (Appendix 3) be adopted; and

3.      The Joint Management Policy 2012 and the Joint Risk Management Strategy 2013 be rescinded.         

Report of Assets Community Of Practice Lead

* AC 22          

The COP Lead Assets presented a report that set out the performance and risks associated with the commercial property portfolio, arising from the Commercial Property Acquisition Strategy.  The Strategy had envisaged an upper borrowing limit of £75m, but in light of external advice sought by the s151 officer, the Strategy was updated with a capped borrowing limit of £50m made up of a blend of in area development and out of area investments.

The COP Lead Assets updated Members with detail on the purchases made so far, and confirmed that they were a mix of tenants and sectors. 

It was then RESOLVED that the performance and risks of the commercial property portfolio to date be noted.  

Report of Case Management Manager

* AC 23          

The Lead Member for Performance and Resources presented a report that provided Members with a further update of the position in respect of progress in monitoring and administering the recovery of Sundry Debts. 

During discussion, Members agreed that the Lead Member and the debt recovery team should be congratulated on progress.

It was then RESOLVED that the progress made in monitoring and administering the recovery of Sundry Debts be noted.

PART TWO – ITEMS WHICH MAY BE TAKEN IN THE ABSENCE OF THE PUBLIC AND PRESS ON THE GROUNDS THAT EXEMPT INFORMATION MAY BE DISCLOSED (if any).

The Committee is recommended to pass the following resolution:

“RESOLVED that under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the Meeting on the grounds that exempt information may be disclosed as defined in the paragraph given below in bold type from Part I of Schedule 12(A) to the Act.”

* AC 24          

The Chairman confirmed that the External Audit Fee Letter would be added to the agenda for the January 2019 meeting, and noted that the agenda for the March meeting was already full.  The External Audit Plan would be presented to the January 2019 meeting rather than March 2019.