Agenda and minutes

Venue: Guildhall, Abingdon

Contact: Steve Culliford, tel. 01235 540307; e-mail:  steve.culliford@whitehorsedc.gov.uk 

Items
No. Item

26.

Appointment of Chair

To note that CouncillorAndrew Crawford has been appointed Chair of the Committee to replace Councillor Tony de Vere for the remainder of the 2007/08 Municipal Year.  

Minutes:

The Committee was asked to appoint a Chair of the Committee for the remainder of the 2007/08 Municipal Year to replace Councillor Tony de Vere who had resigned.  

 

RESOLVED

 

that CouncillorAndrew Crawford be appointed Chair of the Committee for the remainder of the 2007/08 Municipal Year. 

27.

Notification of Substitutes and Apologies for Absence

To record the attendance of Substitute Members, 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. 

Minutes:

The attendance of Substitute Members, who had been authorised to attend in accordance with the provisions of Standing Order 17(1), was recorded as referred to above with apologies for absence having been received from Councillors Matthew Barber, Janet Morgan and Laurel Symons. 

28.

Minutes

To adopt and sign as a correct record the minutes of the Committee meeting held on 25 September 2007 (previously circulated with the agenda for the Council meeting held on 4 December 2007). 

Minutes:

The minutes of the Committee meeting held on 25 September 2007 were adopted and signed as a correct record.  

29.

Declarations of Interest

To receive any declarations of Personal or Personal and Prejudicial Interests in respect of items on the agenda for this meeting. 

 

Any Member 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 Member 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 Member 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 Member can also attend the meeting for that purpose.  However, the Member 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 Member must leave the room for the duration of the debate on the item in which he/she has a personal and prejudicial interest. 

Minutes:

None.

30.

Urgent Business and Chair's Announcements

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. 

Minutes:

The Committee paused for a minutes' silence as a mark of respect and to remember Councillor Jim Moley and former Councillor Margaret Mackenzie, who had both passed away. 

31.

Statements and Petitions from the Public Under Standing Order 32

Any statements and/or petitions from the public under Standing Order 32 will be made or presented at the meeting.

Minutes:

None. 

32.

Questions from the Public Under Standing Order 32

Any questions from members of the public under Standing Order 32 will be asked at the meeting. 

Minutes:

None. 

33.

Internal Audit Activity Report 2007/08

To receive and consider report 133/07 of the Audit Manager. 

 

Introduction and Report Summary

 

The purpose of this report is:

·        to summarise the outcomes of recent internal audit activity for the Committee to consider.  The Committee is asked to review the report and the main issues arising, and seek assurance that action will be/has been taken where necessary.

 

The Contact Officer for this report is Adrianna Penn, Audit Manager for South Oxfordshire District Council and Vale of White Horse District Council, telephone (SODC) 01491 823544 and (VWHDC) 01235 547615.

 

Recommendation

 

thatMembers note the content of the report.

 

Minutes:

The Committee received and considered report 133/07 of the Audit Manager, which summarised the outcome of recent internal audit activity.  Appended to the covering report were reports resulting from seven audits carried out on Vale services by the Internal Audit service.  The Committee reviewed the Internal Audit reports and the main issues arising. 

 

Rent Accounting

 

The Internal Audit report gave an 'unsatisfactory' rating to the Rent Accounting service.  However, the Audit Manager recognised that there had been improvements since the review. 

 

The Deputy Director (Housing and Community Safety) had been invited to the meeting to respond to the audit report.  He explained the complicated nature of the debt collection process and the need to obtain Court orders.  This was a different procedure to other forms of debt collection across the Council but there was no separate rent arrears debt collection policy; the corporate debt collection policy was used.  Previously, the rent arrears had been collected through the Council's corporate sundry debtor system but a new system had been employed to collect rent accounting data, which then provided debt data for monthly transfer to the Council's financial management system. 

 

The Chief Finance Officer reported that he wanted to investigate this area further, in particular whether using the Housing system was better than using the Council's corporate debt recovery system. 

 

The Committee accepted the explanation of the Deputy Director that these were difficult debts to collect but also agreed that further investigation was necessary to find the most effective solution.  The effectiveness of debt recovery was the key issue.  Systems should not get in the way of implementing policy but should help the Council achieve it. 

 

Members asked that consideration was given to whether the corporate policy was sufficient or whether it needed to be adapted for rent collection purposes.  The Deputy Director agreed to look at this with the Portfolio Holder and report back in due course.  It was recognised that any change to policy would require a decision of the full Council.  The Deputy Director agreed to bring this action forward for completion by June 2008 (reference 5.4.27 in the Audit report). 

 

The Audit Manager reported that the audit could not determine whether the system was effective.  There was more work to do and an audit review would be undertaken after six months.  Members requested some comparative data with other Councils as well as details of the debt trend following adoption of the new system.  The Committee was reminded of the need for Internal Audit to remain independent; therefore, the Chief Finance Officer agreed to investigate this. 

 

Cash

 

The Committee noted that the Cash audit had resulted in a 'satisfactory' rating.  The Audit Manager reported that all income arrangements in the Vale would be reviewed in 2008/09.    

 

Insurance

 

It was noted that this audit had resulted in a 'satisfactory' rating.  A restructuring had taken place of this service but for the Vale this role would still be carried out by the Head of Asset Management.  The Deputy Director (Finance) reported  ...  view the full minutes text for item 33.

34.

Internal Audit Charter

To receive and consider report 131/07 of the Audit Manager. 

 

Introduction and Report Summary

 

The purpose of this report is to:

present the Internal Audit Charter which sets out the definition and purpose of the internal audit function, where the internal audit function derives its authority from, its rights of access and the responsibilities of the function.

The Contact Officer for this report is Adrianna Penn, Audit Manager for South Oxfordshire District Council and Vale of White Horse District Council, telephone (SODC) 01491 823544 and (VWHDC) 01235 547615.

 

Recommendations

 

that Members approve the Internal Audit Charter.

Minutes:

The Committee received and considered report 131/07 of the Audit Manager, which presented the Internal Audit Charter.  This set out the definition and purpose of the Internal Audit function, where the function derived its authority from, its rights of access, and the responsibilities of the function. 

The Chartered Institute of Public Finance and Accountancy (CIPFA) 'Code of Practice for Internal Audit in Local Government in the UK 2006' stated that the purpose, authority and responsibility of internal audit must be formally defined by the organisation in terms of reference consistent with the Code.  The terms of reference should:

·        establish the responsibilities and objectives of Internal Audit

·        establish the organisational independence of Internal Audit

·        establish the accountability, reporting lines and relationships between the Head of Internal Audit and those charged with governance, and those to whom the Head of Internal Audit might report

·        recognise that Internal Audit’s remit extended to the entire control environment of the organisation

·        identify Internal Audit’s contribution to the review of the effectiveness of the control environment

·        require and enable the Head of Internal Audit to deliver an annual audit opinion

·        define the role of Internal Audit in any fraud-related or consultancy work

·        explain how Internal Audit’s resource requirements would be assessed

·        establish Internal Audit’s right of access to all records, assets, personnel and premises, including those of partner organisations, and its authority to obtain such information and explanations as it considered necessary to fulfill its responsibilities

 

Attached to the report was the proposed Internal Audit Charter.  This brought together the arrangements that had been made to ensure that the internal audit function complied with the CIPFA Code of Practice and could exercise effectively its responsibilities under Section 151 of the Local Government Act 1972. 

 

The Charter would apply to the provision of services at both this Council and South Oxfordshire District Council, and would be reviewed at least annually, with any revisions being submitted to the Audit and Governance Committee for approval. 

 

Members considered the Internal Audit Charter and approved its contents.

 

RESOLVED

 

that the Internal Audit Charter be approved. 

35.

Internal Audit Management Report Quarter 3

To receive and consider report 132/07 of the Audit Manager. 

 

Introduction and Report Summary

 

The purpose of this report is:

·        to report on management issues;

·        to summarise the progress of internal audit against the 2007/2008 audit plan;

·        to summarise the priorities and planned audit work for 2007/2008 Quarter 4.

 

The Contact Officer for this report is Adrianna Penn, Audit Manager for South Oxfordshire District Council and Vale of White Horse District Council, telephone (SODC) 01491 823544 and (VWHDC) 01235 547615.

 

Recommendation

 

that Members note the content of the report.

Minutes:

The Committee received and considered report 132/07 of the Audit Manager, which reported on management issues for the third quarter of 2007/08 (October to December 2007).  The report also summarised the progress of Internal Audit against the 2007/08 Audit Plan and summarised the priorities and planned audit work for the fourth quarter (January to March 2008). 

 

The Committee noted that the Internal Audit service had successfully harmonised the audit approach and audit working papers between the Vale and South Oxfordshire.  The rationalisation and merging of the electronic and paper filing systems had also been completed and meetings were now being set up with all managers to introduce the new audit approach and to commence the audit planning for 2008/09. 

 

Due to a staff vacancy from 11 September 2007, Internal Audit had to undertake a recruitment process.  A new Auditor had started on 2 January 2008.  Sandwith Limited (external consultants contracted to supplement the internal audit function) had joined the Internal Audit service in November 2007 and would continue working with the shared service until February 2008.  With this assistance, Internal Audit was on track to complete the 2007/08 Audit Plan.  Seven tenders had been invited for the provision of Internal Audit services for a three year 60 day contract starting in 2008/09.  It was anticipated that a contractor would be appointed in March 2008. 

 

The Committee noted progress against the approved audit plan.  As the harmonisation process had been completed, the Audit Manager was confident that the target could be met and all planned audit work completed by the year end and work would commence on the audit planning process for 2008/09. 

 

The Committee welcomed the news that the harmonisation process had been completed smoothly and recognised the benefits the shared service had brought.  It was noted that the amount of work undertaken for each Council would be monitored.  If there was more than a 60/40 imbalance, this would be addressed through a review. 

 

RESOLVED

 

that report 132/07 be noted. 

36.

Securing Improvements - Audit Commission

To receive and consider report 134/07 of the Deputy Director (Organisational Development). 

 

Introduction and Report Summary

 

The Council has been pursuing a programme of substantial change since its last Comprehensive Performance Assessment in 2004.  Since the Audit Commission’s last Securing Improvement Report of April 2006, the Council has continued to invest in a programme of Organisational Development.  In the Annual Audit and Inspection Letter of March 2007, the Audit Commission reported that the Council had been working to improve its managerial capacity. 

 

The attached report at Appendix A provides more depth to that audit letter and assesses progress and impact up to May 2007, making recommendations for continued improvement.  

 

The completed action plan contained within the Audit Commission’s report at Appendix A, was agreed with the Audit Commission in December 2007 and is shown separately at Appendix B.

 

It should be noted that the evidence gathering for this report in terms of document reviews and interviews with managers, staff and councillors took place between January and May 2007.  Therefore, many of the issues raised in this report have moved on considerably.      

 

The contact officer for this report is Helen Bishop, Deputy Director (Organisational Development and Support), telephone 01235 540372.  Email address helen.bishop@whitehorsedc.gov.uk.

 

Recommendation

 

That the Committee is asked to consider the Audit Commission’s “Next Steps in Securing Improvement” report and agree the associated action plan for implementation. 

Minutes:

The Committee received and considered report 134/07 of the Deputy Director (Organisational Development) regarding the Audit Commission's report "Next Steps in Securing Improvement".  This was a detailed audit of the Council's Organisational Development programme.  This looked at how the Council had been working to improve its managerial capacity and made recommendations for continued improvement.  Members noted that the evidence gathering by the Audit Commission had taken place between January and May 2007.  Therefore, many of the issues raised in this report had been progressed. 

 

Appended to the Deputy Director's report was an action plan which had been agreed with the Audit Commission.  It was noted that some of the dates in the action plan had been revised to provide a more realistic timescale.  The External Auditor present at the meeting supported this. 

 

The External Auditor was invited to address the meeting.  Mary Fettigan reported that the Audit Report on Securing Improvement was a method to check that the Council was implementing its improvement plan following the Comprehensive Performance Assessment.  Alison Dewer reported that the audit had been carried out when staff morale had been very low which led to the five recommendations in the report.  Since then much had changed: staff feedback was more positive about communication from management.  The feeling was that the Council was improving.  However, the report contained five significant recommendations:

·        There should not be change for change's sake - the organisational change programme needed to deliver improvements that brought value for money and were recognisable for local people

·        There should be an improvement in the accountability of the organisational change programme

·        There should be an improvement in the accountability of leadership - supporting all Councillors in their shared leadership of the Council's objectives and priorities

·        There should be an increase in the development capacity of the Council

·        There should be a system to ensure action on external reports and their recommendations

 

The Audit Commission would be providing a further update commentary, possibly at the end of March as part of the Audit Letter or as part of the Audit Commission's programme in 2008/09. 

 

The Deputy Director highlighted some of the improvements that had been implemented.  A new service review methodology had been introduced to gain greater efficiencies; a consultation strategy and a communications strategy had been introduced; a revised website was shortly to go 'live'; and an equalities action plan had been approved and equality impact assessments were underway.  

 

It was intended to report on the actions against these recommendations through the Corporate Governance Report.  The Committee recognised that the Corporate Governance Report was considered by the Executive and the Scrutiny Committee but felt that progress on these recommendations should be reported to this Committee also. 

 

RESOLVED

 

(a)       that the Audit Commission’s “Next Steps in Securing Improvement” report be noted and the associated action plan be approved; and

 

(b)       that progress against the action plan be reported to this Committee separately from the proposed reporting mechanism through the Corporate Governance Report to the Executive and  ...  view the full minutes text for item 36.

37.

Completion of the 2006/07 Audit

The Committee approved the audited Statement of Accounts at its meeting on the 25 September 2007 following a satisfactory audit by the Audit Commission.  In accordance with Regulation 18(4) of the Accounts and Audit Regulations 2003 the Responsible Financial Officer hereby notifies the Audit and Governance Committee that the Statement of Accounts was certified by the external Auditor with an unqualified opinion.  This formally completes the audit process.

 

Recommendation

 

thatMembers are asked to note the formal closure of the 2006/07 audit process. 

Minutes:

Members recalled that the Committee had approved the audited Statement of Accounts at its meeting on the 25 September 2007 following a satisfactory audit by the Audit Commission.  In accordance with Regulation 18(4) of the Accounts and Audit Regulations 2003 the Responsible Financial Officer notified the Committee that the Statement of Accounts had been certified by the external Auditor with an unqualified opinion.  This formally completed the audit process. 

 

RESOLVED

 

that the formal closure of the 2006/07 audit process be noted. 

38.

Actions Arising from the 2006/07 Statement of Accounts - Progress Report

During the preparation and audit of the 2006/07 Statement of Accounts several weaknesses were found in the Council’s financial controls.  The Chief Finance Officer explained these in the Statement on Internal Control (pages 4 – 11) in the published Statement of Accounts.  The External Auditor qualified her Use of Resources Opinion (page 42) of the Statement of Accounts due to the cumulative effect of these weaknesses. 

 

At its meeting on 25 September 2007 (Minute AG.22(b)) the Committee recognised the importance of completing the remedial actions identified by the Chief Finance Officer in the Statement of Accounts.  The Committee requested that the Chief Finance Officer should give an update report to the next meeting. 

 

Progress against each of the actions is provided in the attached table. 

 

Recommendation

 

Members are asked to consider the progress made against the actions. 

Minutes:

The Committee received and considered an agenda report and appendix updating on progress made with the actions arising from the Statement of Accounts 2006/07.  During the preparation and audit of the Statement of Accounts several weaknesses had been found in the Council’s financial controls.  These were explained in the Statement on Internal Control, which formed part of the published Statement of Accounts.  The External Auditor had qualified her Use of Resources Opinion of the Statement of Accounts due to the cumulative effect of these weaknesses. 

 

At its meeting on 25 September 2007 the Committee had recognised the importance of completing the remedial actions identified by the Chief Finance Officer in the Statement of Accounts.  The Committee had requested an update report to its next meeting. 

 

The Chief Finance Officer gave a progress report against each of the four actions in the table appended to the agenda.  In relation to the first item - implementation of the new Agresso financial management system - he reported that the percentage of the project completed was his subjective assessment to illustrate the position and the work still needed to be carried out. 

 

A point of principle was raised that where the Council had contracted out a service, it must monitor the contract carefully.  In the case of the Agresso implementation the contractor, Capita, had responsibility to carry out controls.  Assurances were sought that these controls were being imposed by Capita.  It was agreed that contract monitoring was an important aspect of service provision.  In this case, periodic checks took place to monitor the controls required by Capita.  The officer agreed to investigate whether further spot checks could be made. 

 

The Chief Finance Officer gave an update on the progress with the implementation of the Agresso financial management system.  A fully trained project manager had been appointed before Christmas 2007 to manage the Vale-South Oxfordshire responsibilities in the implementation project.  The project manager was fully employed by the Council, not Capita.  The first task had been to list the tasks that needed to be carried out and order them based on relative dependencies.  An activity plan had been agreed with Capita and work was proceeding on this.  He hoped the implementation would be completed by the first week in April and hoped that the issues could be resolved without the need for contractual remedies.  In answer to a question from a Member, it was reported that the problems with the implementation had not affected the predicted shared service cash savings in terms of staff transfers and printing new stationery but there had been an from additional staff time required to implement the new financial management system. 

 

Members then reviewed the remaining three actions in the appendix.  In relation to the second item, it was noted that the documentation of the financial processes by Capita should be completed by April also.  In relation to the third item - updating of financial regulations following the introduction of shared financial services - the timing of this action was  ...  view the full minutes text for item 38.

39.

Date of Next Meeting

Minutes:

The Committee noted that the date of its next meeting had changed and would now be held on Wednesday 19 March 2008.  Members opted for a 6.30pm start. 

Exempt Information Under Section 100A(4) of the Local Government Act 1972

None

 

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Vale of White Horse District Council
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