Agenda and minutes

To record the attendance of substitute councillors, if any, who have been authorised to attend in accordance with the provisions of standing order 17(1), with notification having been given to the proper officer before the start of the meeting and to receive apologies for absence. 

Apologies for absence were received from Councillors Andrew Crawford, Terry Cox (substituted by Councillor Roger Cox), Bill Melotti, and Mike Murray, as well as Maria Grindley from the Audit Commission. 

To adopt and sign as a correct record the minutes of the meeting of the committee held on 13 January 2010 (previously published). 

The committee adopted and signed as a correct record the minutes of its meeting held on 13 January 2010. 

To receive any declarations of personal or personal and prejudicial interests in respect of items on the agenda for this meeting. 

Any councillor with a personal interest or a personal and prejudicial interest in accordance with the provisions of the code of conduct, in any matter to be considered at a meeting, must declare the existence and nature of that interest as soon as the interest becomes apparent in accordance with the provisions of the code.

When a councillor declares a personal and prejudicial interest he shall also state if he has a dispensation from the Standards Committee entitling him/her to speak, or speak and vote on the matter concerned.

Where any councillor has declared a personal and prejudicial interest he shall withdraw from the room while the matter is under consideration unless

(a)                his/her disability to speak, or speak and vote on the matter has been removed by a dispensation granted by the Standards Committee, or

(b)                members of the public are allowed to make representations, give evidence or answer questions about the matter by statutory right or otherwise.  If that is the case, the councillor can also attend the meeting for that purpose.  However, the councillor must immediately leave the room once he/she has finished; or when the meeting decides he/she has finished whichever is the earlier and in any event the councillor must leave the room for the duration of the debate on the item in which he/she has a personal and prejudicial interest.  

None

To receive notification of any matters, which the chair determines, should be considered as urgent business and the special circumstances, which have made the matters urgent, and to receive any announcements from the chair. 

The Chair congratulated the Institute of Internal Auditors on its award of chartered status. 

Any statements, petitions and questions from the public under standing order 32 will be made or presented at the meeting. 

None

To receive and consider report 123/09 of the Head of HR, IT & Customer Services. 

The committee received and considered report 123/09 of the Head of HR, IT, and Customer Services.  This updated councillors on the council’s risk management arrangements and the management of operational and strategic risks.  The committee noted examples of these risks and thanked the officer for the update report. 

RESOLVED

that the report be noted. 

To receive and consider report 124/09 of the Head of Finance. 

The committee received and considered report 124/09 of the Head of Finance, which set out a draft anti-fraud and corruption policy for consideration and recommendation to the Executive.  Officers had developed this with South Oxfordshire District Council and the policy was due to for consideration by South Oxfordshire’s audit committee and cabinet. 

The committee supported the draft policy and asked for staff training. 

RESOLVED

that the Executive be recommended to adopt the anti-money laundering policy. 

To receive and consider the 2009/10 Opinion Plan from the Audit Commission. REPORT TO FOLLOW

Anne Ockleston of the Audit Commission introduced her “Audit Opinion Plan 2009/10”.  This set out the work the Audit Commission intended to undertake on the council’s 2009/10 financial statements.  The Audit Commission did not propose increasing the audit fee for this work, as there were no known areas of concern at present and it had no reason to expect any problems would occur. 

The committee thanked Anne Ockleston for her report. 

RESOLVED

that the report be noted. 

To note the Audit Commission's recent report on the certification of 2008/09 grant claims and consider whether the actions for improvement are adequate. 

The committee received and considered the Audit Commission’s report on the certification of 2008/09 grant claims.  The Audit Commission had qualified the council’s housing benefit grant subsidy claim and had concluded that the control environment for making the subsidy claim had been inadequate.  These findings had been accepted by the Department of Work and Pensions. 

The committee noted that the government had penalised the council for exceeding the local authority error threshold following recent errors made by the contractor, Capita, and historic errors made by the council’s in-house team.  The council was seeking compensation from Capita through contract penalties.  An action plan set out steps to improve performance; this was welcomed.  The committee considered the actions for improvements were adequate and noted that the Ridgeway Shared Services Partnership Strategic Board and the Scrutiny Committee were both monitoring progress closely.  The Audit Commission would also monitor implementation of the action plan. 

RESOLVED

that the report be noted. 

To receive and consider report 125/09 of the Head of Finance. 

The committee received and considered report 125/09 of the Head of Finance, which set out individual audit reports from internal audits undertaken in the preceding months.  Following completion of the audits, the auditor had given each audited service an assurance rating.  There were two audits with satisfactory assurance ratings, and three with limited ratings.  There were also four follow-up reports presented, one with full assurance rating, and three with satisfactory ratings.  The committee concentrated on those audits with limited assurance ratings. 

Payroll

This audit had received a limited assurance rating.  Councillors noted that this was largely due to the lack of service level agreement between the council and the service provider, Capita.  This led to a number of issues picked up in the audit and an action plan was in place to overcome these.  The committee welcomed the action plan and agreed to change the deadline to complete the service level agreement to 30 April 2010. 

Value for money procurement 2009/10

This audit had received a limited assurance.  Councillors considered a revised audit report after the original report resulted in many questions at the last committee meeting.  The committee was satisfied with the amended audit report and the service manager’s responses. 

Brown bins

This had received a limited assurance rating also.  The strategic director responsible for the brown bin service gave an update on progress with reconciling records between the customer database and the council’s financial management system that managed customer accounts.  This work was almost complete and any customers in arrears would soon receive reminder letters.  Where customers refused to pay, the council would suspend the service and retrieve the brown bin. 

RESOLVED

that the report be noted. 

To receive and consider report 127/09 of the Strategic Director. 

The committee received and considered report 127/09 of the Strategic Director and Section 151 Officer.  This sought councillors’ agreement to include only internal audit reports on the committee’s agenda with nil or limited assurance ratings.  Internal audit reports with satisfactory or full assurance rating would no longer be included in the agendas but would continue to be available to committee members electronically.  However, by exception members could escalate these reports on request for discussion at a committee meeting. 

Despite rejecting a similar proposal a year ago, the committee reviewed this decision and concluded that this procedure would bring significant time and cost savings. 

RESOLVED

(a)       that only limited and nil assurance internal audit reports be presented to the committee; and

(b)       that satisfactory or full assurance internal audit reports will be available to committee members electronically but will only be presented to the committee on request. 

To receive and consider report 126/09 of the Head of Finance. 

The committee received and considered report 126/09 of the Audit Manager, which summarised the progress of the internal audit team against the audit plan, and summarised the priorities for 2010/11. 

RESOLVED

that the report be noted. 

To receive and consider report 128/09 of the Head of Finance. 

The committee received and considered report 128/09 of the Head of Finance, which set out a draft audit plan for 2010/11.  Councillors noted that due to a temporary reduction in staff levels, the audit plan would concentrate on the higher priority and higher risk areas in the forthcoming year.  The committee accepted this. 

RESOLVED

that the internal audit plan 2010/11 be adopted. 

To review the audit and governance work programme. 

The committee received and considered its first draft work programme.  This set out a schedule of matters requiring the committee’s attention and allocated them to the committee’s meetings throughout 2010/11.  The committee reviewed the draft programme and suggested amendments. 

RESOLVED

that the Audit and Governance Committee’s work programme for 2010/11 be welcomed and adopted, subject to the inclusion of:

• an update to the Audit Commission’s opinion plan in June 2010

• a report on treasury management in January 2011

• the Audit Commission’s annual audit letter in January 2011

• the Audit Commission’s opinion plan in March 2011

None