NHS BOLTON CLINICAL COMMISSIONING GROUP Public Board Meeting AGENDA ITEM NO: 14 Date of Meeting: 24 th February 2017 TITLE OF REPORT: AUTHOR: PRESENTED BY: Audit Committee Tony Ward, Lay Member Governance Tony Ward PURPOSE OF PAPER: (Linking to Strategic Objectives) LINKS TO CORPORATE OBJECTIVES (tick relevant boxes): RECOMMENDATION TO THE BOARD: (Please be clear if decision required, or for noting) COMMITTEES/GROUPS PREVIOUSLY CONSULTED: For the Board to receive and review the minutes of the Audit Committee meeting held on 18 th January 2017. Delivery of Year 1 Locality Plan. Joint collaborative working with Bolton FT and the Council. Supporting people in their home and community. Shared health care records across Bolton. Regulatory Requirement Standing Item The Board is asked to approve the Minutes. Audit Committee REVIEW OF CONFLICTS OF INTEREST: VIEW OF THE PATIENTS, CARERS OR THE PUBLIC, AND THE EXTENT OF THEIR INVOLVEMENT: Conflicts of Interest are reviewed at every meeting. Patient views are not specifically sought as part of this report. EQUALITY IMPACT ASSESSMENT (EIA) COMPLETED & OUTCOME OF ASSESSMENT: EIA and an assessment is not considered necessary for the report. 1
MINUTES Audit Committee Date: 18 January 2017 Time: Venue: Present: In attendance: 2.00pm-4.00pm Bevan Room Tony Ward (TW) Alan Stephenson (AS) Dr Tarek Bakht (TB) Dr Charles Hendy (CH) Jackie Murray (JM) Amanda Williams (AAW) Ruth Fairbrother () Amanda Latham (AL) Rob Fenton (RJF) Lay Member Governance (Chair) Lay Member (Vice Chair) GP Board Member GP Board Member Deputy Chief Finance Officer Bolton CCG Head of Financial Accounting & Reporting Bolton CCG Senior Internal Audit Manager, MIAA KPMG KPMG Minutes by: Linda Hughes () Personal Assistant Minute Topic No. 1. Apologies for Absence and Declarations of Interest Apologies were received from Annette Walker. Action By The Chair reminded committee members of their obligation to declare any interest they may have on any issues arising at committee meetings which might conflict with the business of NHS Bolton Clinical Commissioning Group. Declarations declared by members of the CCG Executive are listed in the CCG s Register of Interests. The Register is available either via the Board Secretary to the Governing Body or the CCG website at the following link: http://www.boltonccg.nhs.uk/about-us/declarations-of-interest There were no declarations of interest. 2. Previous Minutes 21 September 2016 The minutes of the 21 September 2016 were agreed as an accurate record. Discussion with Audit Committee Chair and KPMG took place prior to meeting. 3. Matters arising from the minutes not otherwise on the agenda and review of action log Page 1 of 5
20/01/16 14 18/1/17 3 TW to attend next BFT board meeting and introduce himself to the newly appointed BFT chair. TW felt the BAF objectives should be made more specific. JM to discuss with AW. to forward document to TW re benchmarking document. The action log was noted. JM 4. Review of Terms of Reference The Committee reviewed the Terms of Reference and the following amendments were agreed:- Page 1 second paragraph to add Clinical Commissioning before the word group. Page 2 (second paragraph) amend wording to include a requirement for the Audit Committee membership to be reviewed annually by the governing body. It was suggested that the governing body should formally review the memberships of all committees on an annual basis. Page 2 item 4 Handling Conflicts of Interest ask Board Secretary if consistent with policy and still relevant. Page 3 Item 8 after Conflicts of Interest Committee add Primary Care Committee. Page 5 add heading re appointment or re-appointment of external auditors & indent bullet points underneath text. Page 6 Additional heading of Access to be added after the heading Management and to advise of wording. Page 6 Whistle blowing update to include that the Audit Committee to receive annually the anonymised number and types of instances reporting to confirm process in line with policy. JT JT 5. Appointment of External Auditor TW informed KPMG have been reappointed as external auditors. 6. MIAA (Internal Audit) 6.1 Progress Report provided an updated on the assurances, key issues and progress against internal audit plan for 201/17. She reported the finalisation of the Quality of Commissioned Services review, which had achieved significant assurance. reported overall, the CCG had a concise Quality Strategy in place and schedules and CQUINS include relevant performance targets, consisting of both local and national targets. improvements have been made through discussions with the Trust regarding the quality of the data received, and this has resulted in improved mechanisms and relevance of the data. highlighted some slight areas for improvement:- Page 2 of 5
The Quality & Safety Committee agreed to identify how they would measure the implementation of the Strategy (e.g. prescribing, infection control etc); Improve the measurability and data requirements for the community service indicators they had yet to be refined Finalisation of the ToR for the Joint CQUIN Review Group in order to implement the new process as soon as possible. reported the GMSS 2016/17 Internal Audit Plan had commenced and was in line with agreed reporting timescales. informed there was a great deal of work in progress within the CCG, all of which would be delivered by the deadline of the 17 th March 2017 for the draft HoIA Opinion. highlighted the impending work regarding follow ups which were scheduled for 24 th January 17 and highlighted actions ready for implementation. In addition to these, informed she was in the process of following up the KFS recommendations as part of the ongoing annual review. The Audit Committee noted the report. 7. External Audit (KPMG) 7.1 Draft External Audit Plan. Draft External Audit Plan RJF Presented the draft external audit plan drawing attention to the summary on page 2 highlighting the headline areas in the report. RJF stated materiality had been set at 8m with procedures designed to detect individual errors at 6m for the year ended 31 March 2017. Materiality has been set, based on forecast gross expenditure for the year. The reason for the increase in materiality level from the previous year is due to additional co-commissioning budget which has increased forecast gross expenditure for the year. KPMG proposed to report all individual adjusted and unadjusted differences in the accounts greater than 400k to the audit committee. Risk areas specific to financial statements were discussed and acknowledged: Accounting for Co-Commissioning of GP Services. Fraud risk from revenue recognition. Fraud risk from management override of controls. Other areas of audit focus will be:- Delivery of financial targets and the Quality, Innovation, Productivity and Prevention (QIPP) plans. Co-commissioning of GP Services. RJF confirmed the KPMG approach to VFM work will follow the NAO guidance and is consistent on the prior year. This is risk Page 3 of 5
based and focuses on considering the arrangements in place at the CCG to deliver economy, efficiency and effectiveness. RJF confirmed fees were the same as the prior year in line with PSAA scale fees. The Audit Committee noted the Draft External Audit Plan. 8. Corporate Registers The committee reviewed the registers which are also reviewed by the Conflicts of Interest Committee. Members noted that a review of the statutory guidance on conflicts of interest had been undertaken and relevant policies updated. The CCG has also advertised the changes to all staff which includes prohibiting staff from entering prize draws and raffles at conferences/courses. The changes also include that all offers of gifts and hospitality when declined also need to be reported and included on the register. The Audit Committee reviewed and approved the Corporate Registers. 9 Technical Updates AL presented the December 16 Technical Update. The report highlighted the main technical issues which are currently having an impact on the health sector, drawing on the external regulators which oversee healthcare in England. The update also shared some of the work being carried out by the wider KPMG firm. AAW reported the CCG has no off payroll engagements for board members, compliance with new HMRC regulations is under review. The HMRC changes to the salary sacrifice schemes for lease cars have been considered. Regarding cyber risk the Committee agreed that this should be considered for the internal audit plan for next year. agreed to discuss with shared service as to what level of security is provided. AW to provide an assessment of what our risk is and what is shared services risk are at the next meeting AW The Committee noted the Technical Updates report. 10. Annual Report and Accounts Timetable AAW presented the paper to inform the Audit Committee of the reporting timetable and approval process for the 2016/17 Annual Reports and Accounts. AAW informed there was also a glossary of terms included with the timetable. to email a copy of the draft Head of Internal Audit Opinion to Page 4 of 5
TW before it is submitted to NHS England. AAW to add review of annual governance statement to the timetable. AAW The Committee noted the Annual Report and Accounts Timetable. 11. Audit Committee Work Plan The work plan was discussed and agreed with the following amendments:- April meeting the word final added to the Director of Audit Opinion and Annual Report 2016/17. April meeting remove the External Audit Fee Letter as this process has now been changed and is procured. April meeting- wording register of instances to be added to the Whistle Blowing policy. May meeting-remove Final Director of Audit Opinion & Annual Report. 12. Any Other Business There was no other business discussed. 13. Date of Next Meeting 19 April 2017 Self-Assessment Session 1-2pm Bevan Room 19 April 2017, 2-4pm Bevan Room Future Meetings:- 24 May 2017, 2-4pm Bevan Room 20 September 2017, 2-4pm Bevan Room Page 5 of 5