COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

south dublin county council crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, April 06, 2009

Headed Item No 8 

ANNUAL REPORT OF AUDIT COMMITTEE

 

Audit Committee Annual Report to South Dublin County Council Meeting 9th March, 2009

 

 

Background

Circular Finance 11/07 outlines that the scale, complexity and diversity of local government business, allied to the need for transparency and accountability in regard to the performance of each authority, serve to highlight the importance of regularly reviewing the effectiveness of internal and operational controls.

Internal Audit (I.A.) – Definition and role

The circular defined Internal Audit as an independent appraisal function established by the Management of the council for the review of the internal control systems as a service to the organisation. It objectively examines, evaluates and reports on the adequacy of internal controls as a contribution to the proper, economic, effective and efficient use of resources.

 I.A. is responsible for giving assurance to the manager on the existence, adequacy and effectiveness of the Council’s internal control and risk Management systems. It also assists line managers by evaluating and reporting on the elements of the internal Control systems for which they are responsible and making recommendations for improvement where necessary. Line management has full responsibility for the establishment and maintenance of the internal control systems.

 Internal Control was defined as the whole system of controls, financial and otherwise, established by Management in order to carry on the business of the Council in an orderly and efficient manner, ensure adherence to Management policies, safeguard the assets and secure, as far as possible the completeness and accuracy of records.

Report from Audit Committee:

 The South Dublin County Council Audit Committee was established by resolution of the Council on the 8th October, 2007.  The Committee consists of seven members, four external and three Councillors as follows:

 External Members:

Mr. Gerry Lynch, FCA, MBA, (Chair) Director of Finance, Adelaide & Meath Hospital incorporating the National Children’s Hospital

Mr. Thomas Stone, Secretary & Financial Controller, Institute of Technology Tallaght

Mr. Niall Murphy, President, South Dublin Chamber of Commerce

Mr. Gerry O’Reilly, New Mark Solutions (Nominee of South Dublin Chamber of Commerce)

 Elected Members:

Cllr.  John Hannon

Cllr. Guss O’ Connell

Cllr.  Shane O’ Connor

 Audit Committee Charter

The audit committee operates under a charter which was adopted by the Council at its meeting of 08 October 2007.  

 Schedule of Meetings

In accordance with circular Fin 11/2007 four meetings were organised during 2008 as follows:

21st February (Inaugural Meeting)

16th June

16th September

16th December (Quorum not reached)

 The minutes of the meetings are available for reading.

 Audit Committee Work Programme

At the September meeting a strategic audit plan 2008/2011 was adopted by the Committee.

 Objective

The objective of the plan is to set priorities for Internal Audit over the three year period and to guide the preparation of annual audit plans which will support the Council in achieving it’s priorities in the medium term. It would also enable Internal Audit to fulfil its role as an independent objective, assurance and consulting function.

 Work Programme

At the September 2008 meeting a  work programme was agreed by the Committee to cover the period up to and including June 2009.  The work programme was developed in the context of the three cluster groups on which Management is structured.

  1.  Managing Organisational change
  2. Planning and delivery of the County’s Built environment
  3. Quality of Life

 The initial emphasis was on the management of the Council’s resources covering customer focus, innovation, inter-agency working, infrastructural development, quality of life and social inclusion etc.  

 The Committee is of the opinion that the initial work programme is sufficiently comprehensive, wide-ranging and complies with the requirements of Circular FIN 11/07 in relation to the Functions of an Audit Committee, which are -:

o       review financial and budgetary reporting practices and procedures within a local authority,

o       foster the development of best practice in the internal audit function,

o       review auditors’ reports and special reports and assess follow-up action by management,

o       assess and promote efficiency and value for money,

o       review risk management systems, and

o       make such recommendations to the authority as the committee considers appropriate in relation to the foregoing.

 Conclusion

It can be confirmed that the Committee has not become aware during the course of year of any adverse instances occurring in the financial / operational management of Council activities.

The Committee wishes to thank the County Manager and his Management team for their cooperation during the course of the year and in particular for their detailed presentations to the Committee meetings during the course of the year. 

 As Chairperson of the Committee, I wish to express my gratitude to Ms. Nuala Comerford, internal Auditor Mr. Abe Jacob, Acting Manger of Corporate Services for their exceptional support in assisting me in organising and Chairing the Committee in its inaugural year.

 G.A. Lynch FCA, MBA.

Chairperson of Committee