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SALISBURY NHS FOUNDATION TRUST Minutes of the Audit Committee

Held on: 12 October 2015

Present:

Mr P Kemp (Chairman and Non-Executive Director) Mr I Downie (Non-Executive Director) Mr A Freemantle (Non-Executive Director)

In Attendance:

Mr J Oldroyd (KPMG) Mr M Stabb (TIAA) Mr D Seabrooke (Head of Corporate Governance) Mr M Cassells (Director of Finance and Procurement) Mr A Morley (Local Counter Fraud Specialist) Mr A Hyett (Chief Operating Officer) for item 5 Mr L Arnold (Director of Corporate Development) for item 5 Mr N Edwards (Interim Head of Estates) for item 5

Apologies: Dr L Brown (Non-Executive Director) ACTION 1. MINUTES

The minutes of the meeting of the committee held on 13 July 2015 were accepted as a correct record.

2. MATTERS ARISING

All issues flagged in the 13 July minutes were picked up in the reports.

3. EXTERNAL AUDIT – AUDIT PLAN 2015/16 AND PROGRESS REPORT/TECHNICAL UPDATE

The Committee received the External Audit Plan Update and Progress Report. The Report described the format of the Audit for 2015/16 including the Long Form Report recently introduced. The National Audit Office Code had replaced the Monitor Code and the implications of this were being assessed. In relation to the Going Concern Test the Auditors would need to substantiate the Director’s representations in this regard taking into account factors such as loan facilities to support the Trust’s cash position. Better guidance from Monitor was needed and there needed to be a consistent approach adopted nationally. It was noted also that Monitor were reviewing a range of audit files from across the sector in relation to the Audit of Foundation Trust Quality Accounts. Following the presentation of the 2014/15 Audit Letter to the Council of Governors KPMG had provided feedback in support of this to Monitor. The Committee noted the External Audit Plan 2015/16 and the Technical Update.

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4. INTERNAL AUDIT

The Committee received the Internal Audit Progress Report and Local Counter Fraud Specialist Report. Internal Audit Progress Report The Report highlighted progress with actions on patients’ property and monies, consultants job planning – consultant interviews and smart card security arrangements. It reported two finalised audits in relation to budgetary control and cost improvement programme and Estates compliance. In relation to Financial Control Andy Hyett, Chief Operating Officer reported that the financial forecasting of cost improvement programmes was being strengthened and this included further clarification on the Red/Amber/Green assessment of cost improvement schemes. Recommendation 7 would provide an assessment by 31 December of options for improving financial reporting. In relation to Estates Compliance it was noted that actions were underway to ensure that the requirements for authorised engineers and authorised persons for the relevant statutory compliance areas were in place and documented. Local Counter Fraud Progress Report It was noted that Fraud Case numbered 13/0026 had gone to court and that in relation to 00170 a final stage warning had been issued to this employee. A police caution had been requested. On 00135 full recovery of parking fees and fines was expected following a full admission of scratch card fraud. The findings of the staff survey on counter fraud and whistle blowing were highlighted, showing good awareness in the trust of the relevant procedures and how to access them. There had been an intelligence alert following concerns that CCGs had received fraudulent requests to amend bank details for providers. In relation to the Counter Fraud Risk Assessment on row 1.2 it was noted that there was reasonable assurance from Internal Audit that shifts were being allocated accurately in relation to working hours of staff. In entry 1.6 it was noted that the authorisation of time sheets was checked. In entry 2.5 there was found to be weak controls in relation to Disclosure and Baring checks and the Committee requested that the Director of Human Resources and Organisation Development clarify the Trust’s policies and practices in this regard. Internal Audit were picking up issues arising from row 3.5 – single tender waivers in estates, 5.4 authorising purchase orders, 5.5 appropriate use of corporate credit cards and on 10.1 it was noted that improved electronic conciliation and better control over the “reset” function would improve controls against car park machine fraud. The Committee noted the Counter Fraud Report and the Internal Audit Update.

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5. HALF YEAR REVIEW OF ASSURANCE FRAMEWORK

The Committee received a report setting out details of the review in March, April and July of the Assurance Framework by the three assuring committees and a description of the Trust Board Annual Review which was reporting back in December 2015. The Committee noted the Report.

6. ISSUES/ACTIONS ARISING FROM THE AUDIT OF ACCOUNT

Issues/actions had been picked up in the report of the external auditor and further response from Monitor was awaited.

7. REVIEW OF EFFECTIVENESS

The Committee had retained this item on the Agenda and discussed the conduct of today’s business. Concerns were expressed about the separation of the composition of the Finance & Performance Committee and the Audit Committee.

8. DATE OF NEXT MEETING

The next meeting of the Audit Committee will be on Monday 14 March 2016 at 10 am.