Audit Committee 28 June 2006 Summary Minutes

Members Present: Bill Griffiths (Chair), John Spence, Kate Owen
Attending: Stephen Jones, Carol Lunney, Melvyn Neate, Steve Ardron, John Thorpe, Peter Hankins (secretary)

Apologies: Paul Gray, Mike Hanson, Caroline Mawhood

1. Full-year Accounts and SIC

The Committee reviewed the accounts. It was grateful for the helpful notes provided by Stephen Jones on both the Resource Accounts and the Trust Statement. The NAO confirmed that it would recommend to the Comptroller & Auditor General an unqualified audit opinion on the 2005-06 Resource Accounts.

The Tax Credit data in the Trust Statement had now been reviewed. As expected, the NAO would recommend that the C&AG’s opinion should be qualified in respect of irregularities in the Tax Credit area.

The list of disclosures in the draft Statement on Internal Control remained the same as previously. The Committee asked for a further update on progress with whistleblowing systems, and noted developments in the Tobacco strategy. Stephen Jones undertook to convey the Committee’s comments to ExCom.

2. Head of Internal Audit Opinion and update

Melvyn Neate formally presented his Annual Opinion - in practice the Committee were kept informed through the year by the IA Quarterly Assurance Reports. Four areas were highlighted:

• PAYE.
• Self Assessment and PAYE Repayments.
• Tax Credits
• Consultancy.

All four featured in the SIC disclosures.

3. Risk Management Update

Carol Lunney reported that the Risk Management Group had met that morning to consider input to the Board’s July and August meetings. There would be further discussions by the Board and the People Committee.