Meeting of Shared Services Joint Committee on Wednesday, 23rd September, 2009
Meeting documents
Shared Services Joint Committee
Wednesday, 23rd September, 2009
Place: | Wheel Room, Civic Centre, West Paddock, Leyland PR25 1DH |
Present: | Councillors Mr M A Green (South Ribble BC (substitute)), Mr K Joyce (Chorley BC), Mr S M Robinson (South Ribble BC) and Mr G Russell (Chorley BC) |
In attendance: | Garry Barclay (Synergy), Gary Hall (Chorley BC), Andy Houlker (South Ribble BC) and Mike Nuttall (South Ribble BC) and Fiona Blatcher (External Auditor) |
Public attendance: | 0 |
Other Officers: | 0 |
Item | Description/Resolution | Status | Action | |
---|---|---|---|---|
OPEN ITEMS | ||||
10 |
Appointment of Vice-Chairman Further to min. no.2, 22 June 2009, Chorley Borough Council?s Councillor Cullens was no longer a representative of that council on this committee. RESOLVED: Councillor Joyce be appointed vice-chairman for the remainder of the municipal year 2009/10. (Councillor Joyce took the chair) |
Agreed | ||
11 |
Apologies for Absence An apology for absence was received on behalf of the Chairman, Councillor Clark (South Ribble BC). |
Noted | ||
12 |
Minutes of the Last Meeting Minutes attached |
Agreed | ||
13 |
Audited Statement of Accounts 2008/09 Auditor's Annual Governance Report attached Audited Accounts 2008-09 (covering report) attached Audited Accounts 2008-09 (document) attached Councillor Green explained his attendance as a substitute for Councillor Clark and indicated he was also a member of Lancashire County Council and would declare any interests if the need arose. Further to min. no.5, 22 June 2009 the committee received the audited statement of accounts 2008/09 for the partnership and the external auditor?s annual governance report on the accounts. The external auditor was welcomed to the meeting and provided an introduction to the item. She was the engagement lead and responsible for all three audits relating to both Chorley and South Ribble council and also the partnership. In respect of the partnership, some errors had been identified however, teething problems had been expected as this had only become operational in January 2009 and were not felt to be material. The annual governance statement had been revised to reflect the partnership/joint committee rather than the two local authorities. In respect of the cost sharing arrangements there appeared to have been a change in methodology of allocating costs but no formal agreement between the two councils. The external auditor had had to carryout a full code of practice audit (including value for money conclusion) which had not been easy as the period covered was only January to March 2009. In terms of the full audit she also advised that they are not commenting on the adequacy of the Governance arrangements but that they were happy proper arrangements such as the committee and performance management were in place. The auditor was happy to give an unequivocal value for money conclusion. It was also felt that the statement of accounts as amended met the requirements of the statements of accounting practice relating to the operations of the joint committee. The committee again questioned the need for a separate audit of the partnership when its services were part of the audit of the two councils. The external auditor had initially not been minded to conduct a separate audit and had had discussions with the audit commission. However, it had been decided a separate audit was needed because the partnership?s joint committee had executive authority to deliver services. Bearing in mind the auditor?s comments it was suggested the councils? could review the partnership?s arrangements next year to remove the need for it to be separately audited having regard to a legal principle requiring some form of external verification by audit. In view that the audit had only covered three months, it hoped next year?s audit would not be ?12,000 and was informed it was expected to be ?9,000. In response to a query regarding a breakdown of costs, the committee was advised that it would receive this level of information in the forthcoming budget monitoring report. In respect of the ?2,000 misstatement, the auditor explained this related to the first few days of the partnership and there had been an inconsistency in adjustments and was a one-off and would not appear again. There was an enquiry of regarding the benefits the partnership was anticipated to deliver. In response, this was the purpose of the councils? creating the partnership and one that had already been reported to both councils was through the Procurement Strategy and overall the anticipated savings through the partnership of ?100,000 per annum had already been delivered. It was noted that the two authorities had separate methods of calculating overheads. It was explained it was not possible to compare like with like as there would always be anomalies. Whilst benchmarking had been valuable this was limited. There was no intent to standardise methods but look at best practice and possibly develop a joint approach. The external auditor commented that she had seen a number of differing methods. Audit looked at the method adopted and considered if it was reasonable and iIn respect of the joint committee the calculations by both councils had been very similar (roughly 18%). The committee discussed the cost sharing arrangements and whilst this might be envisaged to be 50/50 might vary slightly in practice. It was accepted with hind sight it would have been beneficial if the partnership?s agreement had included provision enabling the councils? statutory officers to vary the proportions. A way forward could be to revise the agreement and/or report to the joint committee. RESOLVED: 1) the contents of the Auditor?s Annual Governance Report be noted; 2) the committee approved the revised Statement of Accounts for 2008/09; and 3) the committee authorised the Chairman and the Treasurer to sign the letter of management representation as set out in the Auditor?s Annual Governance Report The chairman signed the Audited Statement of Accounts and letter of management representation 2008/09. |
Agreed |
(The meeting finished at 4.30pm)