►
Description
Armagh City, Banbridge and Craigavon Borough Council Performance and Audit Committee on Thursday the 10th of March 2022 at 6.30pm in the Council Chamber at Craigavon Civic and Conference Centre.
A
Okay
item,
one
is
apologies.
I
have
received
an
apology
from
the
chief
executive
and
is
there
any
other?
Apologies
from
the
flourish.
Members
councilor
mackel.
A
A
Okay,
we'll
just
move
on
to
it-
item
three
and
and
welcome
gary
guy
curry
from
the
northern
ireland
office
and
guy
is
going
to
take
us
through
the
next
two
items.
So
item
3.1
is
an
item
for
information
and
it
is
the
annual
audit
ladder
gary.
C
Thank
you,
chair,
I'll,
take
a
very
quick
run
through
the
annual
order
data
and
highlight
the
different
parts
of
the
document.
If
that's,
okay
and
patreon
sets
out
the
key
messages
across
a
number
of
areas,
including
the
audit
of
the
financial
statements,
our
work
on
proper
arrangements
and
areas
of
governance,
other
areas
of
audit
interest,
including
absence
figures
and
national
fraud
initiative
on
the
local
government,
auditor's
report
and,
lastly,
the
outlook,
including
considerations
on
brexit
on
cover
18.,
our
graph
4.
C
C
on
page
six,
we
had
outlined
some
go
into
some
detail
on
some
key
statistics:
paragraph
four
page
six,
the
local
government
states
that
she
is
satisfied
that
the
council
has
in
place
proper
arrangements
to
secure
economy,
efficiency
and
effectiveness
in
the
use
of
its
resources.
However,
she
has
reached
some
weaknesses
and
areas
of
procurement
on
contract
management
and
also
legacy
policies
within
the
with
the
council's
senior
management.
C
On
page
eight
of
the
document,
the
local
government
order
states
that
her
review
of
the
annual
government
statements
did
not
highlight
any
inconsistencies
and
on
pages
nine
and
ten
we
highlight
some
areas
of
interest,
including
absence.
The
performance,
improvement,
audit
and
assessment
holy
government
accounts,
the
national
fraud
initiative
and
the
local
government
orders
report
and
page
10
finally
highlights
some
information
on
brexit
on
cover
19
considerations.
D
Thank
you,
sir.
Just
one
question
paragraph
sticks
on
page
five,
just
at
the
end
of
that
is
in
relation
to
reserves,
and
it
says
it's
important
that
the
council
has
clear
plans
to
utilize
reserves
in
the
future.
Can
I
just
see
some
clarity?
Is
that
around
the
increase
in
year
because
of
covert
funding
that
has
increased
reserves,
or
is
it
the
clear
plans
around
using
all
of
the
reserves?
C
Thank
you
through
the
chair.
It
would
be
all
reserves,
but
taking
an
account
off
and
we
we
have
had
some
discussions
with
finance
in
terms
of
one
of
our.
What
what
one
of
our
risks
for
risk
factors
that
will
come
onto
a
later
stage,
but
it's
in
around
we're
taking
account
of
the
timing
of
such
funding
as
well.
C
Looking
at
when
that
funding
is
received
as
well
and
looking
at
the
the
reits
process
riot
setting
process
and
looking
at
you
know
what
what
monies
are
being
set
aside
for
in
in
sort
of
different
funds.
A
C
Okay,
thank
you
chair.
This
is
our
audit
strategy
document
and
I'll
take
a
quick
run
through
a
chair
and
highlight
the
more
important
parts
of
the
dynamic
questions
on
the
document.
If
that's
okay,
so
the
other
strategy
document
sets
out
our
other
approach
to
the
audit
of
the
21.22
finance
statements
and
also
the
performance
improvement
on
assessment
audit
for
22.23,
section
1
sets
out
the
key
messages
on
how
we're
planning
to
carry
out
the
audit
of
the
21.2
financial
statements
included
within
the
background.
C
The
next
action
highlights
the
purpose
of
the
document,
including
how
we
are
planning
to
address
the
identified
significant
risk,
how
we
will
carry
out
proper
arrangements
and
also
the
improvement
assessment,
also
including
the
document,
are
details
of
the
timetable,
the
audit
fees,
the
other
team
and
other
matters
that
we're
required
to
communicate
to
you
under
international
standards
on
nodding
the
next
heading.
On
page,
one
outlines
the
important
matter
of
materiality
which
we
quantify
at
this
stage
of
the
audit
at
2.26
million.
C
We
reassess
materiality
when
we
receive
the
21
22
financial
statements
on
the
significant
ordered
risks
heading
on
page
1.
We
state
that
to
that
we
have
identified
only
one
significant
risk
that
would
have
a
significant
impact
on
our
audit
approach.
This
risk
is
a
presumed
risk
relating
to
the
management,
overrider
controls
and
that's
a
risk,
as
mandated
by
the
auditing
standards,
to
be
a
risk
on
all
of
our
audits.
There's
more
detail
provided
on
the
significant
risk.
C
On
page
six
of
the
argument
on
page
two,
we
outlined
some
detail
on
how
we
plan
to
carry
out
our
work
on
proper
arrangements
on
on
the
performance,
improvement,
audit
and
assessment.
Also,
on
page
two,
we
outline
the
order
fee
will
be:
seventy
five
thousand
foot
financial
audit
and
twenty
four
thousand
for
the
performance,
improvement,
audit
and
assessment.
C
I
draw
members
attention
to
the
requirements
for
the
performance
on
other
committee
at
the
bottom
of
page
two
of
the
document.
It's
a
section
two
on
page
three
gives
some
more
detail
on
materiality.
The
first
paragraph
outlines
the
definition
of
materiality
and
then
the
the
table
we
confirmed.
Prime
materiality
has
been
set
at
two
percent
of
last
year's
gross
expenditure
and
that,
as
I
said
before,
is
equates
to
2.26
million.
C
We'll
also
confirm
to
you,
as
in
our
report,
whose
charge
of
governments
any
misstatements
we
identify
in
the
course
of
the
audit,
that
is
over
one
43.
Forty
three
pounds
section
three
and
page
four
attains
some
detail
on
our
other
approach.
Our
other
approach
is
risk-based
and
that
will
carry
out
an
assessment
of
the
risks
associated
with
finance
statements
and
then
target
our
work
at
those
areas
for
all
significant
audit
areas,
we'll
use
a
range
of
other
techniques,
including
analytical
procedures
and
also
sampling
of
transactions.
C
The
various
headings
on
page
4
indicate
a
number
of
important
areas
influencing
how
we
conduct
our
work,
such
as
an
independence
from
council,
the
management
of
personal
data.
We
look
at
here
in
our
audit
our
interaction
with
internal
audit
on
details
of
the
experts
that
we
rely
upon
phx
outline
details
of
significant
ordered
risks.
C
Another
response
outlines
our
standard
other
puts
to
the
significant
risk,
including
testing
journal
entries,
reviewing
accounting
estimates
and
considering
significant
transactions
that
are
outside
the
normal
course
of
business
or
appear
to
us
to
be
unusual.
In
addition
to
significant
risk.
We
have
also
identified
three
risk
factors
and
we
don't
consider
risk
factors
to
be
a
significant
risk
of
material
in
the
statement
in
the
financial
statements,
but
there
are
matters
that
we
feel
are
important
and
we
will
continue
to
monitor
and
respond
to
as
appropriate
throughout
the
audit.
C
Section
4
and
page
8
outlines
details
of
the
financial
order,
timetable
and
key
deliverables
to
ensure
certification
by
the
local
government
auditor
by
30th
of
september
page
10.
We
outline
details
of
the
improvement
audit
on
assessment
timetable
and
key
deliverables
to
ensure
the
section
95
report
is
issued
to
the
council
and
the
department
by
the
30th
of
november
2022..
C
On
page
11,
we
outlined
details
of
the
other
team
for
the
financial
audit
on
page
12,
details
of
the
other
team
for
the
improvement
audit
on
an
assessment,
an
appendix
one.
On
page
11,
we
list
a
number
of
good
practice
guides
that
may
be
of
interest
to
the
council
and
also
appendix
2.
We
outline
details
of
public
reports
that
may
also
be
relevant
to
the
council.
A
No,
no
questions;
okay,
okay,
we'll
have
you
later
on
in
the
end,
so
please
bear
with
us.
A
Okay,
members
we'll
move
on
to
attend
item
four,
and
it
is
an
item
for
decision
four
point,
one
which
is
a
draft
internal
audit
plan,
and
we
have
kiara
presenting
this
item.
E
E
In
addition
to
the
planned
audit
work,
the
proposed
plan
includes
provision
for
work
started
in
the
current
year,
which
will
not
be
completed
by
the
31st
of
march
four
audit
jobs
that
were
included
in
this
year's
plan,
but
have
been
deferred
and
carried
forward
into
the
22-23
plan.
These
include
inventory,
payroll
allowances,
licensing
and
enforcement
and
budgetary
control,
follow-up
audits
for
any
outstanding
limited
audit
areas.
E
Annual
audit
requirements,
such
as
pcsp
service
requests,
identified
through
the
consultation
process
with
management
plan,
also
includes
provision
for
advice
and
consultancy,
work
and
also
investigation
work.
It
includes
provision
for
audit
planning,
consultancy,
training,
section
management,
quality
assurance
and
reporting.
In
addition,
a
number
of
content
contingency
data
are
also
included.
It
is
important
that
the
plan
is
flexible
and
will
be
continually
reviewed
to
ensure
that
it
remains
aligned
with
our
changes
in
risk
operations,
systems
and
controls.
F
Thank
you
chair.
Yes,
I've
just
two
questions
on
the
audit
plan.
Please
carol
the
first
one
relates
to
the
local
government's
auditor
annual
report.
That's
the
correspondence
paper
recommends
that
internal
audit
consider
the
impact
of
the
covert
risks
to
its
work
program
going
forward.
Can
I
just
check
that
that's
been
considered
within
the
plan?
First
of
all,.
E
Yes,
thank
you
tracy
for
the
question
yeah
the
existing
plan,
and
indeed
the
previous
order
plan,
covered
a
range
of
covert
related
areas,
particularly
around
covert
ground
fountain.
In
addition,
internal
audit
has
provided
advice
and
guidance
throughout
the
year
and
an
advisory
role
to
departments
around
cobit
risks.
F
Thank
you,
carl,
and
just
one
more
query,
then,
in
relation
to
procurement
and
contract
management,
it's
an
issue
that
has
been
raised
number
of
times
for
the
audit
office
and
it
looked
from
the
risk
register
that
the
contract
management
policy
is
to
be
updated
by
the
end
of
june.
Do
you
internal
audits
plan
to
do
some
work
in
that
area
going
forward.
E
Yes,
tracy,
thanks
again
for
the
question,
we
have
completed
a
contract
management
audit
back
in
2021,
and
this
audit
resulted
in
a
limited
assurance.
We
haven't
been
able
to
follow
up
on
that
audit.
Due
we're
waiting
on
the
implementation
of
the
recommendations,
we
will
be
in
a
position,
hopefully
come
june,
to
be
able
to
carry
out
another
follow-up
audit.
A
A
G
A
E
E
Members
should
note
that
the
charter
has
been
updated
to
take
account
of
the
new
organizational
structure
in
that
internal
audit.
Section
now
sits
with
the
chief
executive
department.
There
are
no
other
significant
amendments
to
the
document
and
the
charter
conforms
to
the
requirements
of
the
public
sector.
Internal
audit
standards.
A
Okay
members,
it
is
a
decision
item
and
then
the
audit
report
itself
there's
no
other
significant
amendments,
just
that
it
says,
with
the
chief
executive
departments,
he's
happy
to
help
you
to
propose
here
thanks,
christopher
michael,
I
need
second,
there.
A
Proposed
by
counselor
mackel
on
second
by
alderman
anderson.
Thank
you.
Okay
item
4.3,
which
is
the
reason
concern
policy.
We
will
have
shawn
mcnichol
taking
this
item.
I
Thank
you,
chair
members.
This
is
for
your
information.
It
is
the
new
raising
concern
policies
set
out
at
appendix
3
and
it
replaces
the
whistleblowing
policy
and
clearly
that's
one
of
the
the
key
changes
in
it
is
in
terms
of
the
language
used
and
it
provides
for
members
of
the
public
as
well
as
staff
to
raise
concerns
where
they
feel
that
is
necessary,
and
this
was
approved
by
the
governance,
resources
and
strategy
committee
in
february
of
this
year.
So
members
ask
for
your
information.
A
A
Okay,
thanks
members,
okay,
agenda
item
five
is
correspondence.
We
have
five
items
here
from
the
northern
audit
office
and
the
ig
want
to
come
in
and
to
speak
on
the
correspondence.
Are
there
any
comments.
C
Thank
you
only
really
to
say
that
the
darfur,
noting
I
know
some
of
the
documents
have
just
recently
been
published.
So
council
may
not
have
had
much
of
an
opportunity
to
consider
in
detail
some
of
the
reports,
but
I
think
it's
important
for
council
to
consider
each
of
the
reports
on
ascertain
if
there's
any
areas
that
may
be
relevant
to
the
council.
D
Thank
you
sister
in
relation
to
one
of
the
tables
that
are
it's
the
the
first
report,
local
government
audit
report-
and
I
think
you've
heard
this
in
the
audit
letter
as
well-
that
we
should
consider
this.
As
a
committee.
I
know
it
covers
all
councils,
but
really
on
page
54.
There's
a
table
there
in
relation
to
payment
and
council
is
coming
10th
out
of
11
in
terms
of
its
performance
and
prompt
payment
of
19
within
within
10
days,
and
I
just
wanted.
D
A
Thanks
I'll
bring
in
liam
liam
will
people
answer
this
question
liam.
G
Good
evening
members
through
the
chair,
the
report
you'll
note
relates
to
the
2018-20
financial
year.
I'm
pleased
to
say
in
the
2021
financial
year
performance
has
increased
council
payment
days
are
now
averaging.
In
around
12
days,
the
council
moved
to
a
new
purchase
order,
no
payment
approach
which
has
considerably
improved
the
performance
of
the
council
on.
We
are
now
performing
very
well
in
regard
to
our
payment
days.
Insurance
suppliers
are
paid
as
promptly
as
possible.
A
Thanks
liam
for
those
comments,
sam,
do
you
want
to
come
back
on
any
of
those?
Are
you
happy
enough
for
those.
F
Thank
you
chair
the
northern
ireland
audit
report
on
planning
and
also
the
local
government
auditor's
annual
report,
has
a
number
of
observations
and
recommendations
that
apply
across
all
the
councils.
I
just
wanted
to
find
out.
Is
there
a
coordinated
approach
or
how
are
those
recommendations
and
issues
implemented
or
taken
forward.
E
Yes,
thank
you.
E
They
have
took
on
board
and
will
progress
with
the
issues
that
are
relevant.
An
internal
audit
of
planning
is
also
currently
in
progress
and
we'll.
We
will
also
review
the
department's
response
to
the
issues
raised
and
general
issues
raised
by
the
other
guidance,
in
particular.
The
annual
report
that
you
refer
to
or
kept
under
review
by
finance
and
the
relevant
departments
and
internal
audit
will
also
use
these
best
practice,
guidance
and
checklists
when
carrying
out
any
internal
audit
reviews
in
the
areas
in
any
year.
In
governance,
work.
A
F
A
By
counseling
rick
history,
okay,
okay,
members
on
online
fears
in
accordance
with
schedule,
six
of
the
local
government
act
will
now
be
moving
into
confidential
session
of
the
council.
This
means
that
we'll
be
turning
off
the
public
feed
of
the
meeting,
and
this
will
be
returned
when
the
meeting
is
restored.
Can
you
ask
ict
officers?
Please
turn
off
the
feed.
J
K
H
H
H
H
H
A
J
J
A
A
H
Thank
you,
sir,
and
just
wanted
to
and
congratulate
you
on
your
wedding
last
thursday.
I
hope
everything
went
well
for
you.
I
just
wanted
to
take
this
opportunity
to
to
pass
on
with
good
wishes.
Thank
you.
A
B
To
concur
with
louise's
remarks
and
wish
you
all
the
best
you
know
when
you're
on
your
wedding
here
and
seeing
the
photos,
lovely
and
hope
you
had
a
great
day
and
lovely
life
together.
Thank
you.
L
Sure,
just
also
to
be
associated
with
the
remarks
and
I'm
glad
you
went
through.
Despite
all
the
advice
you
were
given
at
the
council
meeting,
they
were
you're
getting
plenty
of
words
of
wisdom
and
but
just
wish
you
in
your
better
half
all
the
best.
The
days
ahead.
A
No
thanks
very
much
and
yeah.
There
was
a
bad
shale
shot
last
week
with
the
comments
and
but
yeah
much
appreciated
thanks
very
much
folks.
Okay,
members.
That's
that's
the
agenda
item.
That's
all
the
agenda
items
this
evening,
so
I
just
want
to
wish
you
all
a
good
evening
and
thank
you
all.
Thank
you
all
for
your
time.