Issue - meetings

To receive and consider the Audit Commission's Use of Resources Report. 

The Committee received and considered the Audit Commission’s Use of Resources report for 2007/08.  This evaluated how the Council had managed its resources.  It focused on strategic financial management, sound governance and effective financial reporting, and how these supported the Council’s achievement of its priorities, improving services and delivering value for money. 

The external auditor, Anne Ockleston, presented her report.  She reported that the outcome was positive.  The Council’s performance had demonstrated that arrangements were sound to deliver the Council’s priorities and action had been taken to address those areas where performance had not been as strong.  This should stand the Council in good stead to demonstrate outcomes in future assessments. 

The Committee questioned the external auditor and the officers on some of the detailed key lines of inquiry:

1. It was reported that whilst the Council’s medium-term financial strategy, budgets and capital programme were soundly based, they did not meet the revised criteria relating to the use of sensitivity analysis and did not take risk assessments and financial contingency planning into account within business planning.  The Committee noted that efforts would be made to implement the new criteria. 
2. Whilst the Council had continued to adequately manage its asset base, it did not have detailed running costs for its buildings.  The Committee noted that this would be investigated in due course. 
3. Whilst the majority of the arrangements for the system of internal control were maintained, there had been a change in financial systems during the year without procedure manuals being prepared, leading to a lack of system reconciliations during the year.  However, Members noted that this had since been corrected

The Committee recalled that a conscious decision had been taken in 2008 not to divert resources from higher priority activities to improve the Council’s assessment score from 2 (‘performing adequately’) in 2006/07.  However, despite this, the external auditors had awarded the Council a score of 3 (‘performing well’) for 2007/08.  The officers were thanked for their work in achieving this higher score. 

Members noted that the Use of Resources report was the last assessment that would be carried out under the Comprehensive Performance Assessment regime.  From 2008/09 the assessment would form part of the new framework under the Comprehensive Area Assessment.  The external auditor reported that the use of assets was unlikely to be assessed in the first or second year of the new assessment framework. 

RESOLVED

(a)       that the Audit Commission’s Use of Resources report for 2007/08 dated December 2008 be received and the assessment score of 3 be noted; and

(b)       that it be noted that:

(i)                 efforts will be made to improve the use of sensitivity analysis, risk assessments and financial contingency planning into account within business planning regarding the Council’s medium-term financial strategy, budgets and capital;

(ii)               the detailed running costs of the Council’s buildings in its asset base will be investigated in due course.