Minutes Audit Committee Meeting 27 th January 2016, 13:00pm Civic Centre, Arnold

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1 Minutes Audit Committee Meeting 27 th January 2016, 13:00pm Civic Centre, Arnold Present Terry Allen (TA) Janet Champion (JC) In Attendance Jonathan Bemrose (JB) Hazel Buchanan (HB) Tony Crawley (TC) Richard Walton (RW) Claire Paige (CP) Annette Tudor (AT) Carly Ball (CB) Apologies Dr James Hopkinson (JH) Lay Member Financial Management & Audit (Chair) Lay Member Patient & Public Engagement Chief Finance Officer, South CCGs Director of Operations Director, KPMG Audit Manager, KPMG Client Manager, 360 Assurance Deputy Director of Commissioning, 360 Assurance Corporate Admin Officer (minute taker) Assistant Clinical Chair Agenda Items AG 16/001 Apologies & Welcome Actions TA welcomed attendees to the meeting and introductions were made for Janet Champion, Lay-Member Patient & Public Engagement. Apologies were noted as above. AG 16/002 Declarations of Interest No further declarations were made. AG 16/003 Minutes and Actions from the Meeting on 7 October 2015 The minutes of the meeting held on 7 October 2015 were accepted as a true and accurate record. Matters arising: 15/040 Early Annual report work in progress. 15/040 Terms of Reference - had been approved by the Governing Body. 15/041 Proposal to move low risk financial systems to cyclical reporting supported by all south CCGs. 15/042 Planning for External Audit procurement Agenda item 16/ /043 Fraudulent Times circulated to members as requested. INTERNAL AUDIT AG 16/004 Internal Audit Progress Report & issued reports AG 16/005 Claire Paige introduced the progress report and confirmed:

2 Of the 2015/2016 plan 37.5 days (50%) have been used so far and 3 days remain available from the 2014/15 plan. Staff for internal audit have been resourced until the end of the financial year which should ensure the completion of all work included within the current plans. Cyber security is an increasing threat and a potential area for review in April. HB confirmed that Andy Hall is scheduled to deliver a training session to the Governing Body in March. The detailed review of arrangements to deliver PbR within Mental Health Services is included with the papers together with 3 Follow-up reports. Three useful benchmarking reports and the Commissioner Technical update was shared for information. TA commended colleagues for the excellent and informative reports and the assurances regarding completion of the plan. The Committee; Noted progress on plan delivery and current contract performance. Received final audit reports issued since the last meeting and the information and guidance papers. COUNTER FRAUD AG 16/006 Counter Fraud Progress Report Annette Tudor presented the progress report that shows 21 days of the annual plan of 30 days has been delivered to the end of December. AT confirmed that all staff continue to be encouraged to participate and complete the generic E-learning training modules. HB shared that Emma Pearson has requested copies of completed module certificates. TA requested information on the level of participation. AT The Counter Fraud survey was issued to all staff in December with results to be shared at the next Committee. A number of CCG policies have been amended as part of the action plan to meet the new NHS Standards for Commissioners. The Committee noted the contents of the progress report. AG 16/007 Fraud, Corruption and Bribery Policy The policy has been refreshed in line with good practice and the NHS Standards for Commissioners. The Committee approved the amended policy. EXTERNAL AUDIT AG 16/008 External Audit Progress Report Richard Walton presented the progress report and confirmed: Planning and risk assessment for the 2015/16 audit plan had been completed. Risks and the proposed audit approach had been shared with the Chief Officer and CFO. The interim audit for the South CCGs had commenced with 3 of the 2

3 planned 4 weeks to be spent at NNE with the central finance team. Work will also focus on assessing the arrangements for securing value for money in line with recently shared guidance from the National Audit Office. The Committee noted the progress report. AG 16/009 Draft External Audit Plan Tony Crawley presented the External Audit Plan 2015/16 that included a useful summary for audit committee members at page 1 highlighting: The issue of new guidance on VFM conclusion and the 3 new subcriteria. The identification of 3 significant risks to the CCG; agreement of balances with providers, accounting for the Better Care Fund and accounting for co-commissioning. Materiality limits and submission deadlines (in line with last year). Revised format for the annual report separately covering performance and accountability. In subsequent discussion members agreed the importance of all three CCG s meeting to review and discuss the month 9 accounts submission. CB The Committee received the draft External Audit Plan for 2015/16. AG 16/010 Inquiries of those charges with governance The template used in previous years was shared by Jonathan Bemrose and comments invited. It was suggested by TC that a public statement regarding co-commissioning and how this has been managed should be included. TA suggested that reference to the new counter fraud standards for 2015/16 and the requirement for a self-assessment and resulting action plan also be included. JB agreed to make the amendments suggested and share with members by for final approval. JB CORPORATE AND FINANCIAL GOVERNANCE AG 16/011 NHS Planning Guidance and CCG Allocations JB shared a presentation on Resource Allocations and Plans initially prepared and presented to Governing Body in January. Key messages included: 5 year allocations include 3 years firm and 2 years outline to aid transformational planning. NNE received 4.5% uplift for 2016/17 (national average 3.85%) together with a primary medical uplift of 3.6% (national average 4.22%). Closing distance from target overall -2.4%. National Tariff to increase by 3.1% less 2.0% efficiency ie 1.1% net. Results in 8.1 million QIPP savings needed for 16/17 by NNE. Initial plans were submitted to NHSE on 15 th January. RAG ratings likely to be issued at North Midlands CFO meeting 29 th January. 3

4 The Committee thanked Jonathan for the presentation. AG 16/012 NNE Performance JB updated the committee on NNE s current position and noted the following: The year-end financial target looks deliverable at the present time. Pressures have been significant across the South Notts patch for all three CCG s but recent data shows some respite. Cancer and ED performance continues under target and remains high risk. TA shared that although these performance areas remain below target at NUH similar pressures are apparent across many teaching hospital peers. The Committee noted the CCGs current position. AG 16/013 Annual report and accounts JB confirmed that the outcome of the balances agreement will be fed back to CFOs on 29 th January 2016 and this will be shared with the audit team. The current position on Estates finances was also outlined, with FIG and Governing Body supporting a cross-organisational approach to match payments to funding adjustments (as per last year) in the absence of a robust charging mechanism. Submission deadlines for annual statements remain consistent with last year. The shared NHSE assurance checklist will be included within the annual report. The Committee noted the update on the annual statements. AG 16/014 Financial Control Environment Assessment JB presented a brief paper benchmarking the CCG nationally and identifying actions required as a result of the original submission. This has subsequently been developed to include proposals to improve good ratings to excellent. The Committee supported the action plans and the intention to undertake a further self-assessment in the new financial year. AG 16/015 Government Banking Service JB confirmed that following a national procurement process the current arrangement of managing 2 separate bank accounts is to cease to be replaced by a single account held at Natwest. This should provide welcome simplification of cash handling processes. The government banking service introduced a shadow charging system in 2015/16 with an interest levy on under/over estimation of funding allocation requests. It was confirmed that NNE incurred notional over payment fines of 2431 in the first nine months of the financial year. Further details of the commercial operation of the new arrangement are awaited. 4

5 The Committee noted the change in banking arrangements. AG 16/016 Conflicts of Interest The committee were asked to consider and support the annual review of the CoI policy refreshed by Browne Jacobson in light of any new guidance made available. TA requested that in future it would be helpful if any changes are highlighted when the policy comes back to the committee. In addition a schedule of declared conflicts beyond the standard declarations was shared identifying the meeting and individuals concerned, the nature of the conflict and actions taken. The Committee Supported the refreshed policy and noted the declarations made. AG 16/017 Financial Governance Waiver of Standing Orders: JB presented to the committee for information, 2 standing orders waiver requests to provide additional resources for the transformation programme that were approved by the Greater Nottingham Health and Care Partners Board. A discussion ensued regarding HMRC rulings for employment and assurances required when procuring services from self-employed and agency staff. RW agreed to send JB information relating to this for consideration in all such arrangements. RW The Committee noted the waivers. AG 16/018 NHSE Letter-Planning for Commencement of the Local Audit Arrangements JB shared a letter from Steve Wilson, NHS England re local audit arrangements. In terms of progress; NNE Governing body has agreed that Audit Committee (with any necessary changes in membership) will act as the Auditor Panel as defined in the guidance. CFO s across Notts/Derbyshire have agreed to work together in terms of procurement as per the previous internal audit tender. A national specification of service is to be provided to support the process. Potential providers will have to secure suitable accreditation in order to be considered. The Committee noted the current position. AG 16/019 HR and Payroll Audit 5

6 Following NNE s HR move from GEM to CityCare, JB presented the latest CityCare audit of payroll expenditure for information and assurance purposes. The Committee noted the report. AG 16/020 LCFS Investigation Update Report Q2 JB to the report to committee members/attendees. JB CLOSING ITEM AG 16/021 AOB The group offered their appreciation and thanks to Mike Wilkins for his hard work and valuable contributions to Audit Committee over a number of years. HB confirmed that the strategic risks that were reviewed in January Governing Body will be brought to the next meeting for information. HB Date, Time and Venue of Next Meetings Wednesday 30 March 2016, Stapleford (Room TBC) 6

Minutes Finance and Information Group 13 th March 2017, Meeting Room 1, Civic Centre, Arnot Hill Park, Arnold, NG5 6LU

Minutes Finance and Information Group 13 th March 2017, 13.00-15.00 Meeting Room 1, Civic Centre, Arnot Hill Park, Arnold, NG5 6LU Present: Terry Allen (TA) Jonathan Bemrose (JB) Maxine Bunn (MB) Sharon