Audit committee 10 January 2006 summary minutes

Members present:

Bill Griffiths (Chair) John Spence and Kate Owen

Attending:

Paul Gray
Stephen Jones
Mike Hanson
Steve Lamey
Bernadette Kenney
Melvyn Neate
Carol Lunney
Geoff Watkins
Geoff Fox
Caroline Mawhood
Ian Wilkins

Peter Hankins (Secretary)

Contents

  1. Minutes of the meeting on 22 August 2005 and the Special Meeting on 28 November 2005
  2. Internal Audit Report
  3. Accounts/SIC update
  4. NAO management letters
  5. Managing strategic risk
  6. Amendment to the committee’s terms of reference
  7. CHIEF replacement

1. Minutes of the meeting on 22 August 2005 and the special meeting on 28 November 2005

The minutes of the two meetings were agreed.

2. Internal audit report

Melvyn Neate introduced his Assurance Report. It focussed on PAYE Benefits in Kind, and use of consultants. It also gave an update on progress in areas highlighted in earlier reports.

Bernadette Kenny and Steve Lamey explained the background and the work being done in connection with Benefits in Kind.

Mike Hanson said a number of steps were being taken to reinforce our procedures on consultancy. The new ERP system would also be helpful.

3. Accounts/SIC update

Stephen Jones introduced two papers: the first set out the changes to the accounts, the second paper covered lessons learned. A good and effective relationship with the new NAO team was already being forged.
Carol Lunney explained that parallel steps were being taken to accelerate the process of SIC production.

4. NAO management letters

Caroline Mawhood introduced the papers. The issues were similar for both former Departments. The NAO had offered many comments on what could be done to achieve faster closing, which had mostly been taken on board. The only significant exception was that the Department had decided not to produce a third-quarter Trust Statement.
In future the NAO wanted to provide an improved form of Management Letter, concentrating on the key strategic points.

An ‘end of audit’ letter would be sent at the end of the year: next year’s timetable would be tighter.

5. Managing strategic risk

Carol Lunney explained that at its August meeting, the Committee had agreed to consider the Department’s approach to managing strategic risk, and its own role. It was agreed that she would talk to Committee members about their views and report back to the next meeting.

6. Amendment to the committee’s terms of reference

The amendment, which simply reflected recent changes in the membership and standing invitations, was agreed.

7. CHIEF replacement

Ian Wilkins updated the Committee on progress with CHIEF replacement