The meeting focused on the audit plan, financial risks, and governance improvements. Key discussions included the audit plan's risks, valuation of pension fund liability, land and buildings, and the audit fee. The council's governance and risk management processes were also reviewed, with updates on internal audits and the effectiveness of governance structures.

Audit Plan and Financial Risks

The audit plan highlighted several key risks:

• Management Override of Control: Gareth explained the potential risk of management manipulating financial statements. Specific targeted work will be done to identify any such cases.
• Pension Fund Liability: The valuation of the pension fund liability is a significant estimate in the financial statements. The actuary's assumptions will be reviewed to ensure they are sound and reasonable.
• Valuation of Land and Buildings: This involves judgments and estimates, and given the large values, it is a significant risk area. Assumptions and rationales will be tested.
• Materiality Thresholds: The materiality thresholds for the group audit and council audit were set just over a million pounds. The rationale for these thresholds was discussed.

Governance and Risk Management

• Corporate Governance Group: This group has been reestablished to focus on governance, risk management, and internal audit actions. Heads of service are now more accountable, and there is a greater emphasis on supporting services to improve governance.
• Service Assurance Statements: A new approach was taken this year, involving group sessions to discuss governance policies and procedures. This has led to better understanding and ownership among senior management.
• Risk Management Strategy: The council has improved its use of the GRACE system for risk management. The next phase involves better escalation processes for risks that services cannot manage alone.

Internal Audit and Effectiveness

• Internal Audit Reports: The committee reviewed several internal audit reports, including those on housing standards and event management. Actions have been taken to address issues, and progress is being monitored.
• Audit Effectiveness Review: The council's internal audit service was found to conform to 130 out of 135 components of the public sector internal audit standards. Actions are being taken to update the charter in line with new standards coming in January next year.

Financial Sustainability and Resilience

• SIPFA Resilience Index: The council's financial sustainability was reviewed using the SIPFA Resilience Index. Chorley Council's reserves, borrowing, and reliance on council tax were compared to similar councils. The council's level of reserves is lower than some comparators, but its ability to generate fees and charges is high.

Annual Governance Statement

• Draft Annual Governance Statement: The draft statement was presented, highlighting improvements in governance and risk management. Key actions for the next year were identified, including addressing issues related to sundry debtors and continuing to embed strong governance practices.

Public Questions and Standing Orders

• Suspension of Standing Orders: The committee discussed the continuation of the suspension of standing orders for public questions at council meetings. It was recommended to leave the suspension in place for now, with the option to review it if the situation changes.

Other Items

• Charity and Trust Fund Accounts: The committee approved the accounts for several small trust funds and discussed the potential to wind up some of these funds due to their inactivity.
• Work Program: The committee's work program was reviewed, and it was agreed to add a standing item for standards updates.

The next meeting is scheduled for Wednesday, 31st of July.