Agenda item

To consider a report of the City Solicitor which advises Members of the publication of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) guidance on the function and operation of audit committees in local authorities in the UK and for police audit committees in England and Wales.  The guidance also sets out CIPFA’s view of the role and function of audit committees.

Members are asked to review the guidance and identify any areas where further development of the arrangements operating at Leeds City Council might be required.

(Report attached)

The City Solicitor submitted a report which informed Members of the publication of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) guidance on the function and operation of audit committees in local authorities in the UK and for police audit committees in England and Wales. The guidance also sets out CIPFA’s views of the role and function of audit committees.

The Head of Governance Services and Scrutiny Support reported that since the last review undertaken by this Committee the scope of CIPFA's Position Statement for Local Authority Audit Committees had become more detailed.  The current position statement was reproduced at Appendix 2 of the submitted together with a ‘self-assessment’ drafted by officers for the Committee’s consideration

Members were informed that there were no significant areas of non-compliance identified in the core functions expected of audit committees or with the identified wider functions; where variances had been identified these are listed below:

·  The absence of an Independent Person on the Committee.

·  The preparation of an Annual Report of the Committee to Council. 

·  A Knowledge and Skills Framework

In discussing the potential for appointing an Independent Member, the Committee was grateful to Mr Ian Arundale, the visiting Independent Audit Committee Chair from Cardiff Council for his input to the Committee’s deliberations.

Members did not reach a definitive view on whether or not to recommend making an appointment of an independent Member. Whilst Members accepted that an Independent Person may be able to contribute specialist knowledge and skills to the Committee, Members considered that the existing arrangements allowed for sufficient breadth of expertise, knowledge and independence to be brought to the business before the Committee. Members also recognised that an Independent Member was not elected and that therefore there was little formal accountability to the public for their role.

With regard to the preparation of an Annual Report of the Committee, Members were supportive of the proposal for a report to be presented to Full Council. .

Commenting on the Knowledge and Skills Framework, Members noted that the proposed framework was not a pre- requisite for appointment to this Committee. It was suggested that annual training should be provided which delivers an “overview of change” and keeps Members up to date and with sufficient background knowledge and information to enable Members to fulfil the individual and collective roles on the Committee. The majority of Members were supportive of the suggestion of annual training.

The Head of Governance Services and Scrutiny Support offered to raise the subject of Independent Members with the Deputy Leader and then further report back to the committee.

RESOLVED

(i)  To note the recently published guidance from of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) on the function and operation of audit committees in local authorities in the UK (and for police audit committees in England and Wales).

(ii)  To support suggestions for the preparation of an Annual Report of the Committee to Council and to also support the introduction of appropriate Annual Training for Members of the Committee

(iii)  That a report on the appointment of Independent Members be brought back to a future meeting of the Committee.