NHS WORCESTERSHIRE AUDIT COMMITTEE

Transcription

1 NHS WORCESTERSHIRE AUDIT COMMITTEE Minutes of the meeting held on 7th June 2011 at 2.00 pm in Board Room 1, Turnpike House Medical Centre, Newtown Road, Worcester. PRESENT: Mr Robert Parker (Chair) Mr Peter Pinfield Mrs Carol Thompson Non Executive Director Non Executive Director Non Executive Director IN ATTENDANCE: Mr Graham labouchardiere Associate Director of Finance Systems & Accounts Mr Mark Dutton Interim Director of Finance Provider Services Miss Julia Dillon Local Counter Fraud Specialist Mrs Liz Cave External Audit Mr David Evans External Audit Mrs Kristina Woodward Internal Audit Mr Alistair Kirkup Trainee Finance Manager (Observer) Mrs Hilary Newman (Minutes) 15/11 Apologies Apologies were received from Mr. Brian Hanford and Ms Emma Masters. 16/11 Minutes of the last meeting The minutes of the meeting held on 12th May 2011 were agreed as a true record. 17/11 56/10 Matters arising from the minutes External Audit Recommendation Tracking Mr. Parker requested that Mr. Hanford provide an update on the Recommendation Tracking for the handover meeting with Robert Mackie and Chris Burdon on 24th June BH NHS Worcestershire Audit Committee 7th June 2011 Page 1 of 7

2 17/11 4.2/11 Matters arising from the minutes - continued External Audit Annual Audit Fee Letter 2011/12 Mrs. Cave advised that Anne-Marie, External Audit is arranging to meet with Simon Hairshape to discuss the External Audit Financial Governance workshops. 12/11 Salary Overpayments Schedule Mr. LaBouchardiere had met with Robert Mackie to outline salary overpayments issues and discuss the background to the new SBS Overpayments Policy. The new NHS SBS Overpayments User Guide and a report on the proposed change of the SBS Salary Overpayments Policy for Worcestershire PCT and Worcestershire Heath & Care Trust would be presented to the JNCC on 20th June 2011 for approval. Mr. LaBouchardiere, Mary Walters and Robert Mackie had met with SBS on 3rd June 2011 to discuss the 2011/12 contract and had requested the introduction of a new Key Performance Indicator. In future SBS would be asked to write to employees in receipt of salary overpayments within 10 working days of the overpayment occurring. Mr. LaBouchardiere would arrange further payroll training days for staff in the autumn. BH GlaB 51.1/10 WCC Pooled Budgets Report Mr. LaBouchardiere presented the Worcestershire County Council (WCC) Internal Audit Pooled Budgets Report. Mrs. Cave advised that audit reviews on the Pooled Budgets are usually carried out periodically. External Audit did not specifically rely on this report for the end of year. Mrs. Cave advised that key points for the year had been examined regarding pooled budgets for the Audit Opinion. Mr. Evans explained the process for auditing pooled budgets. Mrs. Thompson mentioned that the Health & Social Care Partnership Board had been abolished in March 2011 and asked how pooled budgets would be monitored in future. It had been agreed that financial reports on pooled budgets would be presented to the Finance & Performance Committee/PCT Board on a regular basis. NHS Worcestershire Audit Committee 7th June 2011 Page 2 of 7

3 17/ /10 Matters arising from the minutes continued WCC Pooled Budgets Report Mr. Parker would discuss with Mr. Hanford including the WCC report on the agenda for the meeting with Robert Mackie and Chris Burdon on 24th June, to discuss the current position on reporting on the Pooled Budgets and what performance date could be presented. RP 13.2/11 Audit Committee Self Assessment Checklist Mr. LaBouchardiere presented the Audit Committee Self Assessment Checklist which had been discussed at the Audit Committee on 12th May 2011 and updated. Miss Dillon advised that the Compound Indicator Assessment on page six of the checklist is the NHS Protect External Audit ranking system. The Audit Committee confirmed that the Local Counter Fraud Service should be reviewed for effectiveness and resources in 2011/12. RP 18/ /11 Internal Audit Reports Partnerships Voluntary Sector Funding Mrs. Woodward presented the Partnerships Voluntary Sector Funding Report and reported overall significant assurance. Mrs. Woodward advised that at the time of the audit the Voluntary Working Group meetings were not supported by minutes. There was discussion on the recommendations. Mr. Dutton confirmed that the Voluntary Working Group Terms of Reference would list members of the group. Mrs. Woodward advised that there was evidence of performance measures during the review. Mr. Parker asked for Simon Hairsnape to provide a presentation on how value for money is measured and the implementation of Governance arrangements, for the Finance & Performance Committee to be held on 30th August BH NHS Worcestershire Audit Committee 7th June 2011 Page 3 of 7

4 18/ /11 Internal Audit Reports E-Rostering System Review Mrs. Woodward presented the E-Rostering System Review Report and reported overall significant assurance. Mrs. Woodward advised that actions for the recommendations had been agreed. Mrs. Woodward advised that Mr. LaBouchardiere had requested a follow up review on the E-Rostering System in nine months. Mr. Parker asked for the report to be included on the agenda for the handover meeting with Robert Mackie and Chris Burdon on 24th June, to discuss the issues. RP/BH 19/11 Assurance Framework Mrs. Woodward advised that the Assurance Framework workshop had been arranged for 17th August / /11 External Audit Reports Annual Governance Report Mrs. Cave presented the Annual Governance Report and distributed an update to the Value for Money conclusion. Mrs. Cave went through the report. Mrs. Cave referred to the key messages on page three of the report. Mrs. Cave reported positive conclusions and advised that the audit papers were of a high standard. Mrs. Cave reported an overall unqualified audit opinion. Mrs. Cave referred to the Key Areas of Judgement and Audit Risk at Table three on page six of the report. Mrs. Cave advised that the provision in the accounts for Redundancy/MARS had been scrutinised. The Provider Assets were not an issue. The Malvern Hospital valuation and impairment was large but not exceptional. NHS Worcestershire Audit Committee 7th June 2011 Page 4 of 7

5 20/ /11 External Audit Reports Annual Governance Report Mrs. Cave referred to the provision for potential voluntary redundancies at item 14 on page eight of the report. The redundancy/mars figures were discussed. Mrs. Cave explained the process for the estimate of liability and why External Audit had asked for the note in the accounts to be amended. It was noted in the amendment that a provision had been entered for voluntary redundancy by the PCT Commissioner for 671,000 and the Provider Arm for 843,000. The PCT expects the redundancy payments to be made within the 2011/12 financial year. Mrs. Cave referred to the updated Value for Money conclusion. Mrs. Cave advised that Value for Money arrangements were more than adequate in all areas. Mrs. Cave thanked Mr. labouchardiere and the Finance Team for their assistance in the audit. Mr. labouchardiere thanked External Audit for their contribution. 21/ /11 Final Accounts including Statement on Internal Control & Letter of Representation Mr. labouchardiere presented the Letter of Repesentation and Unadjusted Mis-statements in the Financial Statements at Appendix 1. Mr. labouchardiere presented the Statement on Internal Control which had previously been presented to the Audit Committee on 12 th May The Audit Committee agreed minor amendments to the Statement on Internal Control. Mr. labouchardiere presented the schedule for the changes to the Final Accounts. Mr. labouchardiere and Mr. Evans had met prior the Audit Committee and had agreed the changes. Mr. Parker on behalf of the Audit Committee thanked everyone involved for producing an excellent set of accounts. The Audit Committee approved the Final Accounts for 2010/11 and the Letter of Representation. The Audit Committee approved the Statement on Internal Control for 2010/11. NHS Worcestershire Audit Committee 7th June 2011 Page 5 of 7

6 22/11 Audit Commission Changes Mrs. Cave outlined the proposed Audit Commission changes. Mrs. Cave advised that the DCLG preferred option is to out source all work for 2012/13. The staff of the Audit Practice would submit a bid as an employee owned venture. The impact on the PCT is that the Government want all Final Accounts audit work to be outsourced after the 2011/12 Audit, meaning that the PCT could potentially have new auditors for the audit year 2012/13. 23/11 Report from Local Counter Fraud Specialist Miss Dillon presented the Local Counter Fraud Specialist Report and provided an update. Miss Dillon provided a brief outline on the Bribery Act, which will come into force on 1 st July Miss Dillon advised that the Act focuses on corporate governance. Organisations would be expected to have policies in place to prevent bribery and corruption. Miss Dillon explained the requirements of the new Act. Miss Dillon advised that when GPs set up businesses and deal with private providers the money would no longer be under the direct control of the PCT. Miss Dillon would provide for the Audit Committee meeting on 4 th August 2011, a briefing report on the Bribery Act and potential issues going forward. JD 24/11 Waivers for noting by Audit Committee Mrs. Newman would amend the sub total on the schedule of waivers for June HN The Audit Committee noted the waivers. 25/ /11 Any Other Business NHS Worcestershire Annual Report Mrs. Thompson outlined her suggested amendments to the NHS Worcestershire Annual Report. Mrs. Thompson would forward the amendments to Tom Grove. CT NHS Worcestershire Audit Committee 7th June 2011 Page 6 of 7

7 25.2/11 Audit Committee Annual Report Mr. labouchardiere would circulate to the Committee an updated version of the draft Audit Committee Annual Report for 2010/11. Mr. Pinfield asked how future Quality & Safety issues would feed into the Audit Committee. Mr. Dutton advised that the Worcestershire Health & Care Trust would have a Non Executive Director to lead on Quality & Safety and there would be a Quality and Safety Management and Executive side to go through a Quality & Safety Committee and to the Audit Committee. Mr. Parker would provide an update on Quality & Safety at the handover meeting with Robert Mackie and Chris Burdon on 24th June GlaB RP 26/11 Date and time of next meeting The next meeting will be held at 2.00 pm on Thursday, 4 th August 2011 at Turnpike House. RP/HJN June 2011 Signed: Date: NHS Worcestershire Audit Committee 7th June 2011 Page 7 of 7