AGENDA ITEM NO. *
RESOURCES AND AUDIT SCRUTINY PANEL DATE: 14 JANUARY 2003
2001/2002 – ANNUAL AUDIT LETTER – FINANCE ISSUES
PURPOSE OF THE REPORT 1 To update Members on the Finance issues raised by the Council’s external auditor (District Audit) within the 2001/2002 Annual Audit letter. RECOMMENDATIONS 2 It is recommended that the Resources and Audit Scrutiny Panel consider the content of the report. BACKGROUND 3 In December 2002 the Council received from District Audit the 2001/2002 Annual Audit letter which outlined its assessment of the Council’s work in a number of important areas. The Finance issues in the letter focused on three key areas: a. Accounts and core financial processes; b. Internal Audit; c. Internal Controls. Accounts And Core Financial Processes 5. The deadlines for the production of the accounting statements and the completion of the audit were just met. It is acknowledged that improvements are needed in both: a) The speed by which the accounts are closed and the statements produced. This is particularly important because
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Central Government are planning in pulling in the deadline over the next three years to the 30th June. b) The quality of the accounting working papers. Internal Audit 6. This was one of the areas of weakness highlighted in last years audit letter. Since December 2001, a significant amount of work has been completed in improving the performance of the section during the year. 7. The findings on the internal audit function are appreciably more positive with all the key requirements of the CIPFA audit standards now being met. Internal Controls 8. The reconciliation of the bank accounts and main financial feeder systems were identified as problem areas in the past. These have now been resolved, the emphasis during the current year is to ensure that by regular monitoring the improvements are maintained.
HEAD OF SERVICE: (PAUL SLOCOMBE, DIRECTOR OF FINANCE)
Author: Paul Slocombe Tel No: 01642 729032
BACKGROUND PAPERS: Annual Audit & Inspection Letter 2001/2002
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