Item 7 Appendix 1 - Annual Report on the Audit Committee 2023-24
West Dunbartonshire Council · 12 June 2024
Back to Audit Committee — 12 June 2024 and its agenda
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1 Appendix 1 West Dunbartonshire Council Audit Committee 2023/24 Annual Report from the Chair Introduction This annual report has been prepared to inform West Dunbartonshire Council of the work carried out by the Council’s Audit Committee during the financial year 2023/24. Meetings The Audit Committee met four times during 2023/24 comprising meetings on 8 June, 9 August, 13 December and 15 February to consider reports relevant to the Audit cycle and other matters as deemed appropriate. Pre-Agenda meetings were also held ahead of Committee involving the Chair and appropriate officers. The purpose and remit of Audit Committee as detailed in the Council’s Standing Orders is to: • Monitor, and make recommendations on the development of the Audit activity of the Council. • Scrutinise the monitoring and review activity of the thematic and regulatory committees. To fulfil this remit, the Audit Committee sought assurance on the adequacy and effectiveness of the Council’s systems of governance, risk management and internal control to ensure efficient operations and the highest standards of probity and accountability. This was achieved through reports received from Internal Audit, other Council functions and External Audit with focus in particular on internal control and governance. At each meeting of the Audit Committee it considered significant findings from Internal Audit reports together with monitoring the progress made by management in completing agreed actions to improve the Council’s control environment. It also considered the external audit strategy memorandum for the 2022/23 audit from the newly appointed external auditors (Mazars). The Audit Committee also received reports on: • Prudential Indicators and Treasury Management. • Risk Management. • National Fraud Initiative. • Annual Complaints Report 2022-2023. • Code of Good Governance and the Annual Governance Statement. • Responses to External Audit Enquiries to Those Charged With Governance. The minutes of Audit Committee meetings are first confirmed as a correct record at the next Audit Committee before being remitted to Council for approval.
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2 Membership of the Audit Committee In accordance with West Dunbartonshire Council’s Standing Orders membership of the Audit Committee comprises eight Elected Members and one Lay Member who is not a member of any political party. The quorum of the Audit Committee is three Elected Members. The Chair and Vice Chair of the Audit Committee are members of the Opposition. Attendance by members of the Committee at Audit Committee meetings in 2023/24 was as follows: 8/06/23 9/08/23 13/12/23 15/02/24 Cllr K Conaghan (Chair) Present Present Apologies Present Cllr I Dickson Apologies Present Present Present Cllr J McColl Present Apologies Present Apologies Cllr J McElhill Apologies Apologies Apologies Apologies Cllr M McGinty Apologies Present Apologies Present Cllr J Millar Apologies Apologies Apologies Present Cllr M Rooney Present Present Present Present Cllr H Sorrell Apologies Apologies Apologies Apologies Lay Member Chris Johnstone (from 12/12/18) Apologies Present Apologies Present Every meeting of the Audit Committee during 2023/24 was quorate. Attendance by Officers All meetings were attended by the Chief Executive, Chief Officer – Resources and the Shared Service Manager - Audit & Fraud. Other senior officers also attended meetings as appropriate for items on the Agenda for which their presence was relevant. Representatives from the Council’s external auditors - Mazars - were present at relevant meetings. Assurance Statement to the Council The Audit Committee provides the following assurance to the Council: • The Council has received the Minutes of the Audit Committee meetings throughout the year. • The Audit Committee has operated in accordance with its agreed terms of reference, and accordingly with the audit committee principles in the CIPFA Position Statement relating to its Audit functions. • It did this through reports received from Internal Audit, External Audit, and assurances from Management. It focussed on matters of governance, risk management and internal control; giving advice to the Council on the value of the audit process; on the integrity of financial reporting; and on governance arrangements. • For all audit reports, the Audit Committee considered whether it was satisfied that an adequate management response was in place to ensure action would be taken to manage risk and address concerns on governance, risk management and internal control arrangements. The Committee acknowledges that all the audit recommendations are input to Pentana, the Council’s performance
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3 management system, and that there is a system in place of ongoing follow-up by Internal Audit and reporting thereon. • The Audit Committee has received and considered material to fulfil its scrutiny role on treasury management activity. Conclusion Based on the reports received and reviewed by the Committee they are in agreement with the Shared Service Manager – Audit & Fraud’s annual audit report which confirms that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control system in 2023/24. I am satisfied that active monitoring and follow up of recommendations is in place in respect of agreed management action. Councillor Conaghan Chair of the Audit Committee 12 June 2024