The report describes the Internal Audit arrangements and governance that are in place to ensure that children and education service related risks are appropriately monitored and acted on by BFfC.

Further to Minute 32 of the previous meeting, Kate Graefe, Assistant Director of Procurements and Contracts, submitted a report setting out the audit arrangements for Brighter Futures for Children (BFfC), providing assurance that children and education service related risks that had previously been reported to the Committee were now being appropriately monitored and acted upon by the Company.

The report explained that BFfC operated an audit regime that was similar to the Council’s, with the BFfC Audit & Risk (A&R) Committee being a key component in the Company’s Corporate Governance arrangements.  The A&R Committee met quarterly to review and discuss the effectiveness of the Company’s internal control, governance and risk management arrangements.  The A&R Committee was composed of two BFfC non-executive directors, one of whom chaired the meeting, the Director of Finance & Resources and the Managing Director.  As part of Company’s assurance process the A&R Committee reported on its activity to the Company Board, which would include an annual report.  The Council’s Internal Audit Team provided the internal audit service to the Company under a Service Level Agreement, details of which were set out in the report.

Paul Harrington, Chief Auditor, advised the Committee that the A&R Committee had now appointed a third non-executive director member.  The Committee commented that BFfC may wish to review the appointments of the Director of Finance & Resources and the Managing Director to the A&R Committee, as their positions in the Company may present a conflict of interest when carrying out the role of the A&R Committee.  Similarly, the Council had reviewed the membership of the Audit & Governance Committee and no longer appointed the Leader and Deputy Leader.

Resolved:    That Brighter Futures for Children’s Internal Audit arrangements and governance in place to ensure that children and education service related risks were appropriately monitored and acted upon by the Company be noted.

(Councillor Gittings declared a non-pecuniary personal interest in this item).