Agenda and minutes

Standards and Audit Committee
Thursday, 11th April, 2019 7.00 pm

Venue: Boardroom, Civic Offices, Gloucester Square, Woking, Surrey GU21 6YL

Contact: Doug Davern  on 01483 743018 or email  doug.davern@woking.gov.uk

Items
No. Item

1.

Minutes

To approve the minutes of the meeting of the Standards and Audit Committee held on 7 March 2019 as published.

Minutes:

RESOLVED

 

That the minutes of the Committee held on 7 March 2019 be approved and signed as a true and correct record.

2.

Apologies for Absence

To receive any apologies for absence.

Minutes:

No apologies for absence were received.

3.

Declarations of Interest

To receive declarations of disclosable pecuniary and other interests from Members in respect of any item to be considered at the meeting.

 

In accordance with the Officer Procedure Rules, the Head of Democratic and Legal Services, Peter Bryant, will declare an interest in any items under which the Thameswey Group of Companies, Brookwood Cemetery or Duke’s Court are discussed, arising from his position as a Director of the subsidiary companies. The interest is such that speaking was permissible.

Minutes:

In accordance with the Officer Procedure Rules, the Head of Democratic and Legal Services, Peter Bryant, declared an interest in item 5 – External Audit Plan – in so far as reference was made to the Thameswey Group of Companies, Brookwood Cemetery or Duke’s Court, arising from his position as a Director of the subsidiary companies.   The interest was such that speaking was permissible.

In accordance with the Officer Procedure Rules, the Finance Director, Leigh Clarke, declared an interest in item 5 – External Audit Plan – in so far as reference was made to Duke’s Court, arising from her position as a Director of the subsidiary companies.  The interest was such that speaking was permissible.

In accordance with the Officer Procedure Rules, the Head of Democratic and Legal Services, Peter Bryant, declared an interest in item 5 – External Audit Plan – in so far as reference was made to Brunswick Road (Pirbright) Residents Company Ltd, arising from his position as a Director of the subsidiary companies.  The interest was such that speaking was permissible.

4.

Urgent Business

To consider any business that the Chairman rules may be dealt with under Section 100B(4) of the Local Government Act 1972.

Minutes:

There were no items of Urgent Business.

5.

External Audit Plan STA19-005 pdf icon PDF 48 KB

Reporting Person – Leigh Clarke

Additional documents:

Minutes:

(NOTE: In accordance with the Officer Procedure Rules, the Head of Democratic and Legal Services, Peter Bryant, declared an interest in item 5 – External Audit Plan – in so far as reference was made during the discussion to Rutland Woking Limited, arising from his position as Council appointed alternate Director of Rutland Woking Limited.  The interest was such that speaking was permissible.)

(NOTE: In accordance with the Officer Procedure Rules, the Head of Democratic and Legal Services, Peter Bryant, declared an interest in item 5 – External Audit Plan – in so far as reference was made during the discussion to Woking Football Club, arising from (i) being a member of the Cards Trust, the supporters’ club for Woking Football Club and (ii) providing occasional unpaid assistance to Woking Football Club e.g. acting as Returning Officer for the election of Directors.  The interest was such that speaking was permissible.)

(NOTE: In accordance with the Officer Procedure Rules, the Finance Director, Leigh Clarke, declared an interest in item 5 – External Audit Plan – in so far as reference was made during the discussion to Woking Football Club, arising from her husband having a small shareholding in the Club.  The interest was such that speaking was permissible.)

(NOTE: In accordance with the Members’ Code of Conduct, Councillor I Johnson declare an interest in item 5 – External Audit Plan – in so far as reference was made during the discussion to Woking Football Club, arising from his wife’s position as Chairman of Woking Football Club.  The interest was such that speaking and voting were permissible.)

The Chairman welcomed Leigh Lloyd-Thomas, Engagement Manager, and Matthew Vosper, Audit Manager, from BDO to the meeting.  Leigh and Matthew introduced the report before the Committee which set out the Audit Planning Report for Woking Borough Council.  The Report summarised the planned audit strategy for the year ending 31 March 2019 for the audit of the Council’s financial statements of the Council and consolidated entities and use of resources. 

Attention was drawn to the key risks.  These included management manipulation risks including management override of controls, revenue recognition and related party transactions, risks around estimates including land buildings and investment valuations, the pension fund and the allowance for the non-collection of receivables, and new accounting issues including IFRS 9 (loans) and IFRS (revenue).  The audit would also examine the risks around the use of resources, looking at the growth plan and/or savings plan.

The Committee Members were advised that the planning materiality for the Council and Group would be set at 1.9% of gross expenditure for the year, using the prior year gross expenditure.  This would be revisited once the draft financial statements had been received for audit.  Leigh Lloyd-Thomas stated that BDO usually set its trivial level for reporting misstatements at 2% of materiality (in this case £58,000).  However, it had been noted that the previous auditor had set the level at 5% and the Committee was invited to consider whether a trivial level  ...  view the full minutes text for item 5.