Issue - meetings

Following two unsuccessful attempts to recruit an Independent Member of the Audit Committee, the Head of Finance and Customer Services submitted a report examining whether there might be alternative methods of obtaining an independent view on matters under consideration.  It was noted that an assessment of the actions taken by other Audit Committees showed that the only option seemed to be the appointment of an Independent Member.  It was not a requirement to have an Independent Member, but there were advantages to be gained in having an Independent Member with a relevant financial background to support the Committee in discharging its duties particularly in overseeing the financial reporting process and approving the Statement of Accounts.  Approaches had been made by the Officers to neighbouring authorities, the Kent-Wide Auditors Group, the Chamber of Commerce, the Federation of Small Businesses and local accountancy firms, but there had been no expressions of interest.  The feedback received was that this was because no remuneration was being offered for the role, other than the payment of expenses.  However, it could be argued that the payment of an allowance might compromise independence.

In considering this matter, the Committee was mindful that the Government’s draft Local Audit Bill contained provisions for the authority to appoint its independent external auditor on the advice of an “independent auditor panel”.  The outcome of the consultation on the draft Bill was awaited, but it was likely to be a requirement for the chairman of the panel and the other members to be independent.  The draft Bill suggested that this might be achieved by appointing a single panel to advise a group of authorities or to incorporate the function into the terms of reference of existing Audit Committees subject to the membership being appropriate.

Members felt that, rather than awaiting the outcome of the consultation on the draft Bill, the search for an Independent Member should re-commence immediately, initially by way of a press release and a letter to all Members of the Council enquiring whether they knew of any appropriately qualified people who might be interested in the appointment.  In the meantime, a skills and experience matrix should be developed for Audit Committee Members which could then be used to analyse the skills and experience of existing Members and identify any gaps that could potentially be filled by an Independent Member.

RESOLVED:

1.  That the Officers be requested to re-commence the search for an Independent Member of the Audit Committee immediately, initially by way of a press release and a letter to all Members of the Council.

2.  That in the meantime, a skills and experience matrix should be developed for Audit Committee Members which can then be used to analyse the skills and experience of existing Members and identify any gaps that could potentially be filled by an Independent Member.