Joint Audit Committee Minutes 11 February 2020
Meeting Minutes
Date: Tuesday 11 February 2020
Time: 2.30pm
Location: Office of the Police and Crime Commissioner, St George’s Chambers, St George’s Street, Winchester
Committee Members:
Melvyn Neate (MN) Chair
Peter Lloyd (PL)
Katherine Pears (KP)
Gordon Manickam (GM)
In Attendance:
Ms Sara Glen (SG) Deputy Chief Constable, Hampshire Constabulary
Mr Andrew Lowe (AL) Chief Finance Officer for the Police and Crime Commissioner
Mr. Richard Croucher (RC) Chief Finance Officer for the Chief Constable, Hampshire Constabulary
Mr Gabe Snuggs (GS) Director of Force Development, Hampshire Constabulary
Mr Rob Sarfas (RS) Principal Accountant (Hampshire County Council)
Ms Karen Shaw (KS) Chief Internal Auditor, OPCC and Hampshire Constabulary
Mr Richard Andrews (RA) Head of Standards and Compliance, OPCC
Mr Rob Griffiths (RG) Strategic Risk Manager, Hampshire Constabulary
Mr John Faux (JF) Head of Technical Services, Joint ICT
Mr Kevin Suter (KSu) Associate Partner, Ernst & Young
Ms Sarah Croft (SC) Manager, Ernst & Young
Ms Nadia Siouty-Burke (NSB) Programme Office Manager, OPCC
Ms Shirley Semke (SS) Executive Office Manager, OPCC (Minutes)
Declaration of interests
Members were mindful that, where they believed they had a personal or prejudicial interest in any matter to be considered at the meeting, they should at the time of the debate, declare their interest and consider whether to leave the meeting whilst the matter was discussed. There were no declarations of interest.
Apologies
Liz Mackenzie
425. CHAIR’S REPORT (ITEM 8)
The Chair had nothing to report but will pick up an issue under Item 13.
426. MEMBERS’ REPORTS (ITEM 9)
There were no reports from Members.
427. MINUTES OF THE MEETING HELD ON 23 JULY 2019, MATTERS ARISING AND ACTION LOG (ITEM 10)
The minutes were agreed as a correct record.
The action log was reviewed. Actions 87 and 88 were closed.
Action 85: The CC has confirmed approval of change to ToR (Terms of Reference). The PCC is to provide a written response. Agreement was given in principle.
Action 86: The CEO had been advised that he should attend JAC meetings and, whilst he was not able to attend this meeting, would be attending in the future.
Action 87: A report was circulated from AC acknowledging inaccuracies in figures reported to the last JAC meeting on attempted virus/malware attacks detected by the Sophos system and now providing correct figures.
428. ANNUAL REVIEW OF THE EFFECTIVENESS OF THE JOINT AUDIT COMMITTEE (ITEM 11)
The report was received and approved by the Members.
429. TREASURY MANAGEMENT STRATEGY (ITEM 12)
Report: Treasury Management Strategy
RS presented the annual report for the Joint Audit Committee to note the recommendations made to the PCC for the coming year. Key areas were highlighted including Brexit uncertainty, low inflation and advice from Arlingclose who forecast that interest rates are likely to fall, not increase. Attention was drawn to para.7.4 where the balance for longer term investments has reduced.
Table 2, para 7.9, a new table, demonstrates the benefits of investments.
- PL asked whether any of the ratios provide a minimum level of usable reserves against borrowing. AL confirmed that the levels are set by the CFO (Chief Finance Officer).
- MN referred to the Short-term and Long-term Cash Investment table para 7.9 and asked who investments are with. RS advised funds are invested with Local Authorities, banks and money-making funds. All are sterling based investments.
- RC asked whether the capital yield table 3, para 7.12 is as expected. An explanation was provided by RS.
430. EXTERNAL AUDIT – AUDIT PLAN 2019/20 (ITEM 13)
KSu presented the plan for 2019/20, advising that the change in financial reporting standards has been implemented and IFRS 16 Leases changes are to be implemented this year. MN asked if the changes will have a significant impact. KSu advised a lot of the changes are around process and provided further explanation. AL noted there are no significant impacts he is currently aware of.
KSu referred to p.9 and p.10, outlining the risks and explaining the inappropriate capitalisation of revenue expenditure. The ‘McCloud’ judgement was flagged on p.12 though there is unlikely to be much change from this area.
Section 8: Independence was highlighted by KSu who advised that EY will be billing HC for work for the NPCC (National Police Chiefs Council), where the CC (Chief Constable) is the lead as this is strategic work and not OPCC or HC.
- MN referred to the timetable on p.27 and questioned whether there are any emerging issues. It was confirmed there are not.
- MN and AL advised of the email received from EY on February 10th 2020 in respect of the struggle with the timetable due to demands and resource constraints.
- KSu notes that fees are set by the PSAA (Public Sector Audit Appointments) and there is no scale fee variation at present. He would value conversations regarding the reasonableness of fees and the work to be undertaken. Pressures to the timetable and expectations have increased and whilst EY are working to meet the 31st July deadline they will advise if an extension is needed. AL notes he will be pushing to meet the deadline.
- AL noted the general recognition of the fees situation nationally.
- PL asked what the PSAA Terms of Appointment are. KSu advised it is a 5 year contract with a scale fee set by the PSAA but not a fixed fee which can be negotiated. PL further asked if EY are in a 5 year contract which was confirm by KSu who confirmed EY are committed to doing the audit work.
Action 89 (MN): A copy of the email to be send to members.
431. INTERNAL AUDIT PROGRESS REPORT 2019/20 (ITEM 14)
The report, presented by KS is a regular update. Attention was drawn to the status of live reports on p.6 KS advised that more audits have reached draft since the report was printed, and all are scheduled for completion in time for the Annual Audit report.
432. INTERNAL AUDIT PLAN 2020/21 AND INTERNAL AUDIT CHARTER (ITEM 15)
Internal Audit Charter
The charter meets the requirements of the Public Sector Internal Audit Standards and is reviewed annually by the Committee. There have been no significant changes since the last review in 2019.
Internal Audit Plan
The audit plan for 2020/21 has been discussed at joint meetings with the OPCC and HC and will remain flexible to ensure capacity to cover emerging risks as required.
The collaboration audit with TVP (Thames Valley Police) is draft until approved by TVP JIAC (Joint Information Audit Committee).
PL referred to the 5 days included for Information Management. KS advised this is included to form an opinion which may be that all the work required is done and the risk accepted. This is follow-up work and is to be treated as such. PL further asked that the report from KS is explicit and a different approach is required to report to the JAC.
MN questioned governance and risk, asking if collaboration is working and was reassured it is. Information management and ICT risk is assessed by TVP and letters of assurance are provided.
MN asked who ultimately signs off the annual plan. KS advised that meetings are held with relevant key informants, a draft plan produced and feedback given. The plan is then brought to the JAC for challenge and as outlined in the charter the PCC and CC are responsible for approving it. The plan has been approved by the CC and the PCC is engaged and has been briefed. RC advised that it is a Section 151 Officer responsibility to sign off the annual plan.
433. DATE OF NEXT MEETING/FORWARD PLAN (ITEM 16)
The next meeting is Thursday 28 May 2020.
434. ANY OTHER BUSINESS (ITEM 17)
There was no other business.
The meeting closed at 3.08pm.
Agenda
DATE: Thursday May 28th 2020
TIME: 1pm
VENUE: by Teams
CONTACT: Shirley Semke, 02380 479682
1. DECLARATION OF INTERESTS
All members who believe they have a personal or prejudicial interest in any matter to be considered at the meeting must declare that interest and consider whether to leave the meeting whilst the matter is discussed, save for exercising any right to speak. The declaration should be made at the time of the relevant debate.
2. APOLOGIES
3. CHAIR’S REPORT
The Chair to report as appropriate.
4. MINUTES, MATTERS ARISING AND ACTION LOG, AND FEEDBACK FROM THOSE CHARGED WITH GOVERNANCE
To agree the minutes of the meeting on 11th February 2020 as a correct record, and consider any matters arising.
5. OPCC COVID-19 UPDATE
To receive and update from the Chief Executive Officer.
6. HC COVID UPDATE
To receive an update from the Constabulary.
7. EXTERNAL AUDIT PROGRESS UPDATE
To consider the report from the External Auditors.
8. INTERNAL AUDIT PROGRESS REPORT 2019/20 PLUS COVID IMPACT
To consider the report of the Chief Internal Auditor on progress to date, together with the Covid-19 impact.
9. 2020/21 SCALE FEE POLICE AND CRIME COMMISSIONER FOR HAMPSHIRE
To review the letters for OPCC and HC for the scale audit fee for 2020/21.
10. ANNUAL GOVERNANCE STATEMENTS PROGRESS UPDATES 2019/20
To receive an update from the Chief Finance Officer.
11. YEAR END ACCOUNTS PROGRESS UPDATE 2019/20
To receive an update from the Chief Finance Officer.
12. ANY OTHER BUSINESS
ABOUT THIS AGENDA:
This agenda is available on Police and Crime Commissioner’s website (www.hampshire-pcc.gov.uk) and can be provided, on request to 01962 871595, in alternative versions (such as large print, Braille or audio) and in alternative languages. Any papers are also available on request.
ABOUT THIS MEETING:
The press and public are welcome to attend the public sessions of the meeting.
If you have any particular access requirements, for example if you require wheelchair access or a hearing loop, please contact us on 01962 871595 in advance of the meeting to make the necessary arrangements.