Agenda and minutes

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. 

The attendance of substitute Members who had been authorised to attend in accordance with Standing Order 17(1) was recorded as referred to above with apologies for absence having been received from Councillors Matthew Barber, Bill Melotti and Janet Morgan, as well as from Maria Grindley from the Audit Commission. 

To adopt and sign as a correct record the minutes of the meeting held on 22 September 2008. 

The minutes of the Committee meeting held on 22 September 2009 were adopted and signed as a correct record. 

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. 

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 asked everyone to switch off their mobile phones during the course of the meeting. 

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

None

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

None

To consider the Audit Commission's Opinion memorandum to the Finance Director. 

The Committee received and considered the Audit Commission’s Opinion Memo to the Council’s Finance Director.  This summarised the findings from an interim review of the Council’s financial statements and material financial systems in 2007/08.  The external auditor, Anne Ockleston, presented her report.  She believed that the arrangements for closing the ledger and preparing the financial statements had worked well with the papers being produced in a timely manner. 

Some of the issues referred to in the opinion had previously been raised in the report to the Committee on 22 September 2008.  However, there were two further issues that required action.  The first was that minor discrepancies within the bank reconciliation should be investigated and written off if appropriate.  The second was that the investment property control account should be used correctly as a control account, reconciling the expected rental to the payments received.  The officers agreed to action the two issues raised by the auditor.  With regard to the investment property control account, reconciliation was carried out annually at the year end but a more regular check might be employed to assist this. 

The Committee thanked the external auditor for her report and noted that it was a shorter report this year due to improved working papers from the Council’s Accountancy staff. 

RESOLVED

that the Audit Commission’s Opinion Memo to the Finance Director dated December 2008 be received and that the two items listed in the action plan be implemented. 

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. 

To receive the report from the Audit Investigation Advisory Group following its meeting held on 24 October 2008 to investigate management responses to the White Horse Leisure and Tennis Centre audit. 

The Committee recalled that at its last meeting, an Advisory Group had been established to examine the outcome of the White Horse Leisure and Tennis Centre audit and to report back to the Committee’s next meeting.  This was because the service manager had been unable to attend the Committee to answer Members’ questions for the last two meetings.  Members had asked for this audit report to be examined before the Committee’s next meeting. 

The Committee received and considered the minutes of the Advisory Group’s meeting held on 24 October 2008.  Members were content with the outcome and the Advisory Group’s recommendations. 

RESOLVED

that it be noted that the Audit Investigation Advisory Group is content with the outcome of its meeting and has obtained agreement from the Deputy Director (Contracts and Procurement) and Internal Audit as follows:

(i)                 in relation to Internal Audit’s first recommendation, there should be a written regular monitoring report provided by the contractor to the Council to provide documentary evidence that the contractor is carrying out its responsibilities in recording comments and complaints; and

(ii)               in relation to Internal Audit’s second recommendation, that the Chief Executive’s and Deputy Director’s review of the annual monitoring process for the Council’s major contracts will meet the recommendation and the concerns raised by Internal Audit and this will introduce a formal assurance framework. 

To receive and consider report 137/08 of the Audit Manager. 

The Committee received and considered report 137/08 of the Audit Manager which summarised the outcome of recent internal audit activity.  Members reviewed these and sought assurance that action had been taken where necessary. 

Eight audits had been completed in the period since the last meeting as well as three follow-up reviews.  Of these, four audits had resulted in only limited assurance being given.  However, most of the recommendations had been agreed by the service managers.  The Committee debated the following audits:

(i)         Consultation

It was reported that as many of the recommendations had an implementation of April 2009, it was agreed that the Head of Communications should be invited to the March meeting to provide an update on the implementation of the recommendations and to answer Members’ questions. 

(ii)        Rent accounting

Members noted that an audit of the rent accounting function had taken place in 2007/08 and a review had been requested.  The review audit report was now presented to the Committee.  There had been significant improvements to the service over the past year but further improvements were still to come.  Resources were now in place to implement these improvements.  The manager outlined the difficulties of managing this service and the previous problems experienced in using the Council’s sundry debtor software to manage rent accounts.  A separate system was now used to manage the accounts and reconciliation with the Council’s Agresso system was now carried out monthly.  The auditors and the Chief Finance Officer were satisfied with the progress made and the current reconciliation arrangements. 

(iii)       Brown bins

It was reported that the service manager was unable to attend the meeting to answer Members’ questions.  However, it was noted that the officers would look again at incentives for payment by Direct Debit when the service was reviewed and the payment collection process needed to be refined.  Internal Audit had a consultancy role to play in assisting services in designing the best methods to reduce risks.  Any changes would need to be in line with the Council’s Financial Regulations also. 

(iv)       DSO

The audit was the first of the Council’s Direct Services Organisation (DSO) and it had been requested by the service manager as there had been significant changes in the past two years.  The recommendations had been welcomed to help guide the service on further improvements.  Members thanked the officers involved and valued their work. 

(v)        Concessionary Fares follow–up review

Members were pleased to note that this review had resulted in a satisfactory rating.  However, Members sought assurance that the Council was being charged correctly for journeys under the bus pass scheme.  It was suggested that an independent auditor could be used to carry out checks.  Members supported this approach. 

The Head of Finance reported that, despite some deadlines not being met from the original audit, he was confident that the revised deadlines would all be met. 

Members requested that in future, the period the audit covered should be reported to allow  ...  view the full minutes text for item 36.

To receive and consider report 138/08 of the Audit Manager. 

The Committee received and considered report 138/08 of the Audit Manager, which looked at management issues of Internal Audit, and summarised progress against the Internal Audit Plan for 2008/09 to 24 December 2008. 

It was noted that there was a vacant post in Internal Audit which would hopefully be filled by April 2009.  Despite this, the team was on track to complete the current year’s plan. 

Members noted that the 2009/10 annual audit plan was due to be presented to the Committee for approval in March 2009.  However, it was expected that the new shared management structure would bring a period of significant change as the new senior management team reviewed the Council’s services and harmonised systems and processes in order to create efficiencies and savings.  For Internal Audit to add value during this period of adjustment and change, it was possible that temporarily greater emphasis would be required on system development/consultancy work.  The Audit Manager would be meeting with the Chief Executive and Directors to discuss priorities for the 2009/10 plan.  The external auditor reported that the Internal Audit Plan would be assessed against best practice Internal Auditing standards and the external auditor would be working closely with Internal Audit to achieve this. 

Members noted that the compliance self-assessment with the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice included the need to prepare an Internal Audit strategy.  Members suggested that this should be a short document as the team had already adopted thorough processes. 

RESOLVED

(a)               that the report be noted; and

(b)       that approach to the Internal Audit Plan 2009/10, as outlined in report 138/08, be approved. 

The Chair to move that in accordance with Section 100A(4) of the Local Government Act 1972, the public including the press be excluded from the remainder of the meeting to prevent disclosure to them of exempt information, as defined in Section 100(I) of Part 1 of Schedule 12A, as amended, to the Act when the following items are considered:

Item 13           Internal Audit Investigation Report

(Category 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information.)

(Category 7 – Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.) 

RESOLVED

that in accordance with Section 100A(4) of the Local Government Act 1972, the public including the press be excluded from the remainder of the meeting to prevent disclosure to them of exempt information, as defined in Section 100(I) of Part 1 of Schedule 12A, as amended, to the Act when the following item is considered:

Internal Audit Investigation Report 

(Category 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information.)

(Category 7 – Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.) 

To receive and consider report 139/08 of the Audit Manager. 

The Committee noted an Internal Audit investigation report.