Agenda item

            The Board considered a report of the Operational Director, Finance which informed Members of a consultation by Communities and Local Government (DCLG) of the Future of Local Public Audit which may result in changes to the role and membership of Audit Committees.

            It was noted that on the 30^th March 2011 DCLG issued a consultation document entitled The Future of Local Public Audit, with a deadline for responses of 30^th June 2011. It was further noted this was a consequence of the abolition of the Audit Commission and set out proposals for arrangements in relation to the appointment of external auditors and the role of audit committees.

            Members were advised that Halton had contributed to a response to the consultation by the Liverpool City Region’s Directors of Finance, a copy of which was appended to the report for information.

            The Board also considered a letter received from Sir Bob Kerslake, which provided an update on the future of the Audit Commission and their local public audit work.

            A summary of the consultation was detailed in the report for consideration and set out the following:-

·        Consultation Principles;

·        Regulation of Local Public Audit;

·        Commissioning Local Audit Services; and

·        Scope of Public Audit.

Members raised concerns regarding the proposed requirements for an independent Chair and Vice Chair plus independent members on the new board, freedom of information costs, and the issue of no longer being able to challenge the accounts.

The Board agreed that it was happy with way the Councils current Audit Committee arrangements operated and noted that there was no explanation provided as to why current arrangements needed to change.

Tabled at the meeting were additional concerns and a suggestion that the Board was not aware of any evidence nationally that Audit Committees  in local government were not currently undertaking their role effectively, or that having Independent Membership, with little background knowledge of the Council would increase that effectiveness.

RESOLVED: That

            1)         the report including the response to the consultation from the                 Liverpool City Region’s Director of Finance be supported;

2)                 the following additional comments be sent to the DCLG for information:

·        Elected Council Members currently form the membership of Audit Committees and undertake this role, in accordance with guidance from CiPFA, in a very objective and robust manner.  The operation of the Audit Committee is also regularly reviewed by each Council’s external auditors;

·        Part of an Elected Member’s role on any Council Board or Committee is to scrutinise, challenge and be objective, which therefore lends itself to their role on an Audit Committee;

·        The role of the Audit Committee in Halton is provided by the Business Efficiency Board, who provide very robust scrutiny of all matters.  This is particularly aided by Elected Member’s extensive knowledge of the Council’s operations and the differing backgrounds of the individuals on that Board;

·        The Council’s external auditors consider that the Business Efficiency Board operate as a very effective Audit Committee;

·        The Board is not aware of any evidence nationally that Audit Committees are not currently undertaking their role effectively, or that having Independent Membership, with little background knowledge of the Council, will increase that effectiveness.