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. 

Councillor Julia Reynolds had sent her apologies for absence. 

To adopt and sign as a correct record the minutes of the meeting of the committee held on 3 July 2014 (previously published). 

RESOLVED: to adopt as a correct record the minutes of the committee meeting held on 3 July 2014 and agree that the chairman signs them. 

To review the actions arising from the last two committee meetings and receive an update on progress. 

The committee considered the actions arising report. 

RESOLVED: to

(a)       retain the following actions in the actions arising report:

·        The strategic director to consider consulting on the public’s comprehension of council financial information

·        To change the process for monitoring systemic control weaknesses to put the onus on the heads of service to address outstanding issues and for the audit manager to update the committee on progress with the committee concentrating on high level issues.  The committee retained this to test effectiveness of the new system

·        Building Control 2011/12 due to outstanding actions.  The committee asked for a reconciliations update on Building Control at its next meeting. 

(b)               remove the following action from the actions arising report as it is now complete:

·        the elections review 2014, as this will now be conducted by the Scrutiny Committee and not by the audit team or the Audit and Governance Committee

To receive any declarations of disclosable pecuniary interests in respect of items on the agenda for this meeting.  

None

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

None

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

None

To consider the chief executive’s report. 

The committee considered the chief executive’s report on comments on complaints received during 2013/14 and proposed changes to the corporate complaints system. 

The level of complaints received during the year had reduced slightly from the previous year but there had been a slight increase in complaints to the ombudsman.  Most complaints had been about planning decisions. 

The chief executive had reviewed the current system and recommended a change to speed up stage 2 and remove stage 3.  The ombudsman had supported this change.  The committee agreed also, believing that it would speed up the system and make it easier to follow for complainants.  Ward members would be informed of ward specific issues as part of this system, and of the outcome.  The committee also asked that training on this system was included in the councillor induction programme following the May 2015 elections. 

RESOLVED: to

(a)               approve the revised corporate complaints procedure attached as appendix one to the report of the chief executive to the Audit and Governance Committee meeting on 24 September 2014;

(b)               carry out a short review of the complaints procedure every twelve months and a thorough evaluation every three years; and

(c)               include training on the corporate complaints procedure as part of the councillors’ induction programme following the May 2015 elections. 

To consider the audit manager’s report.  

The committee considered the audit manager’s report on internal audit activity during the second quarter 2014/15.  This summarised the outcomes of recent audit activity.  Five audits had been completed during the quarter, together with four follow-up audits. 

Anti-fraud and corruption arrangements 2014/15

The committee noted that this audit had received limited assurance from internal audit.  However, the service manager had agreed to each recommendation made by the internal auditor.  In answer to questions from councillors, officers kept up to date with legislative changes through the professional institute, networking groups, and legal updates.  Also, councillors would next receive training in anti-fraud and corruption arrangements as part of the councillors’ induction programme following the May 2015 elections.  The committee recalled that as part of the whistleblowing policy, any staff or councillor could approach internal audit in confidence with any concerns. 

Temporary accommodation follow-up audit 2014/15

The service manager had agreed to each of the internal auditor’s recommendations in the follow-up audit but some actions were ongoing.  In answer to questions from councillors, it was reported that Cabinet was reviewing the council’s homelessness strategy and the temporary accommodation housing stock.  The chairman advised that this was better reviewed by the Scrutiny Committee.  The audit manager reported that there would be a further follow-up report. 

Outstanding recommendations from past audit reports

The committee recalled that at its last meeting it had asked the interim audit manager to produce for each committee meeting a report showing outstanding recommendations from previous audits.  However, the audit manager reported that the spreadsheet method previously used to produce this report was labour-intensive.  The audit manager proposed using a more efficient web-based report for all councillors that would allow them to investigate individual recommendations through a database.  This was being designed by in-house IT staff and would be available for the next committee meeting. 

In response, one councillor expressed disappointment that the report was not available for this meeting, as requested.  However, the committee agreed to review the report in its new format once it became available.  The chairman asked for a test version of the report to be made available to councillors as soon as possible.  Councillor Pat Lonergan offered to test the system. 

RESOLVED: to

(a)               note the internal audit activity report for the second quarter 2014/15; and

(b)               circulate the new outstanding recommendations report to committee members as soon as possible and ensure that it is operational before the next committee meeting. 

To consider the audit manager’s report. 

The committee considered the audit manager’s management report on internal audit for the second quarter 2014/15.  The committee noted that a vacancy existed for an auditor and Mr Pullen had been appointed as interim cover.  The committee expressed some concern at the turnover of staff in internal audit, noting that the high cost of living in Oxfordshire was a contributory factor, resulting in some staff commuting long distances. 

RESOLVED: to note the internal audit management report for the second quarter 2014/15. 

To consider the head of finance’s report. 

The committee considered the head of finance’s report which monitored the treasury management activities for the financial year 2013/14.  This showed that investment income was £122,000 over the estimated income for the year.  The committee welcomed this news. 

One councillor asked how much was re-invested in maintenance of council-owned property.  The ability to monitor net returns was important.  The accountant agreed to provide an answer outside the meeting.  However, it was noted that the council’s insurers were content with the council’s property maintenance plan. 

RESOLVED: to

(a)       note the treasury management outturn report 2013/14; and

(b)       advise Cabinet that the Committee is satisfied that the treasury activities in 2013/14 have been carried out in accordance with the treasury management strategy and policy. 

To consider the external auditor's annual governance report 2013/14.  TO FOLLOW

The committee considered the audit results report for 2013/14 from the external auditor, Ernst & Young.  Adam Swain, who had conducted the audit, reported that he had found no indications of fraud, was satisfied with the level of provision set aside for appeals by non-domestic ratepayers, and was satisfied that the figures in the asset register were accurate.  Overall, the auditor gave the council an unqualified opinion on the council’s financial statements. 

Officers welcomed feedback from the auditor on potential weaknesses in the asset register and would use this to make improvements. 

RESOLVED: to note the audit results report from the external auditor. 

To approve the statement of accounts 2013/14.  TO FOLLOW

RECOMMENDED: to approve the statement of accounts 2013/14. 

The committee considered the statement of accounts 2013/14.  This set out the financial statements required to meet the international financial reporting standards, guidance from the external auditor, and guidance from the Chartered Institute of Public Finance and Accountancy. 

Councillors noted that the external auditor, Ernst & Young, had given an unqualified opinion on the accounts; the committee welcomed this. 

RESOLVED: to approve the statement of accounts 2013/14. 

To consider the annual governance statement 2013/14. 

RECOMMENDED: To approve the annual governance statement 2013/14 to form part of the statement of accounts. 

The committee considered the annual governance statement for 2013/14.  This set out how the council had met the requirements of good governance over the year, and suggested areas for improvement in 2014/15. 

RESOLVED: to approve the annual governance statement 2013/14. 

Purpose: to consider and agree the letter of representation.  TO FOLLOW

RECOMMENDED: to agree that the chairman signs the letter of representation. 

The committee noted that the chairman and the section 151 officer had signed a ‘letter of representation’ to the external auditor, as part of the process in completing the statement of accounts.  Copies of the letter were available for committee members. 

To review the audit and governance work programme. 

The committee reviewed its work programme, noting the business it was due to consider at its next meetings. 

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