requirements the Finance team are alert working papers and to the Accounting Code comparison with the The 2016/17 Code of Practice on changes and the impact on requirements of the Local Authority Accounting (the the financial statements. Accounting Code. Accounting Code) introduced a number of changes in the presentation of the financial statements including a new expenditure and funding analysis and changes in the governance statement. There is a risk the financial statements will not comply with the Code and/or contain a material misstatement. 3 New Payroll System Assurances from Due to the small number of Aberdeenshire over staff employed by the Financial services including services provided Partnership, a proof in total payroll administration are will be carried out for staff Budget monitoring provided to NESTRANS by costs (reasonableness Aberdeenshire Council. The arrangements. check). council introduced a new payroll system with effect from 1 April 2016. As with many new systems, there were issues during implementation. There is a risk that payroll is not functioning correctly and staff costs are misstated. Wider dimension risks 4 Financial management The board has adopted the Ongoing monitoring of development of a 5 year financial plans, assumptions NESTRANS approve an annual funding plan and estimates and budget but have an indication of commentary in our Annual Projects are regularly likely funding proposals for future Audit Report. matched with funding years. With public sector financial pressures, and a Mechanisms are in place to number of projects which are give an indication of future longer than one year in duration, years' funding there is a risk that short term Good partnership working planning would not be sufficiently between NESTRANS, alert to funding shortfalls. partner councils, community planning partnerships and the City Region Deal joint committee. 5 Risk management Review undertaken to Ongoing discussion with support annual governance officers about risk While the 2015/16 governance statement identification and statement reported ongoing management in key decision Internal audit's annual progress in respect of risk making processes report management, the risk register is Review of performance out of date and we understand Alert to risk factors when information that it has not been considered developing the budget. by the board since 2008. Risk Commentary in our annual management is part of all audit report. decision making activities and along with internal controls is central to good governance arrangements. In the absence of an effective risk management process, there is a risk that the board has not considered its
requirements The 2016/17 Code of Practice on Local Authority Accounting (the Accounting Code) introduced a number of changes in the presentation of the financial statements including a new expenditure and funding analysis and changes in the governance statement. There is a risk the financial statements will not comply with the Code and/or contain a material misstatement. the Finance team are alert to the Accounting Code changes and the impact on the financial statements. working papers and comparison with the requirements of the Accounting Code. 3 New Payroll System Financial services including payroll administration are provided to NESTRANS by Aberdeenshire Council. The council introduced a new payroll system with effect from 1 April 2016. As with many new systems, there were issues during implementation. There is a risk that payroll is not functioning correctly and staff costs are misstated. Assurances from Aberdeenshire over services provided Budget monitoring arrangements. Due to the small number of staff employed by the Partnership, a proof in total will be carried out for staff costs (reasonableness check). Wider dimension risks 4 Financial management NESTRANS approve an annual budget but have an indication of likely funding proposals for future years. With public sector financial pressures, and a number of projects which are longer than one year in duration, there is a risk that short term planning would not be sufficiently alert to funding shortfalls. The board has adopted the development of a 5 year funding plan Projects are regularly matched with funding Mechanisms are in place to give an indication of future years' funding Good partnership working between NESTRANS, partner councils, community planning partnerships and the City Region Deal joint committee. Ongoing monitoring of financial plans, assumptions and estimates and commentary in our Annual Audit Report. 5 Risk management While the 2015/16 governance statement reported ongoing progress in respect of risk management, the risk register is out of date and we understand that it has not been considered by the board since 2008. Risk management is part of all decision making activities and along with internal controls is central to good governance arrangements. In the absence of an effective risk management process, there is a risk that the board has not considered its Review undertaken to support annual governance statement Internal audit's annual report Alert to risk factors when developing the budget. Ongoing discussion with officers about risk identification and management in key decision making processes Review of performance information Commentary in our annual audit report.
7c-Annual-Audit-Plan-App-1.docx