Agenda and minutes

Members are requested at the start of the meeting to declare any known interests in any matter to be considered, and are reminded that any such interest should also be declared at the start of an item or during any discussion of the matter concerned.

The Chair reminded Members of the need to declare any known interests in any matters to be considered at the meeting.  No declarations were made.

See explanatory note below.  Please phone the Committee Officer whose name and number appears at the top of this agenda if you need further guidance).

            No public questions were asked under Standing Order 28.

To receive the minutes of the meeting held on 26^th June 2007

            Resolved - That the minutes of the meeting held on 25^th September 2007 be confirmed and signed as a correct record.

Certain items are expected to include the consideration of exempt information and the Sub-Committee is, therefore, recommended to resolve "That, in accordance with Section 100A(4) of the Local Government Act 1972, the public be excluded during the discussion of the matters referred to in the items listed below, on the grounds that they involve the likely disclosure of exempt information, as defined in the respective paragraph of Part 1 of Schedule 12A of the Act".

That, in accordance with Section 100A(4) of the Local Government Act 1972, the public be excluded during the discussion of the matters referred to in the items listed below on the grounds that they involve the likely disclosure of exempt information as defined in the respective paragraphs of Part 1 of Schedule 12A of the Act.

(Report to follow)

            The Council’s External Auditors, RSM Robson Rhodes LLP, attended the meeting to present to the Committee their report in relation to the annual audit of the Council’s Statement of Accounts, Use of Resources update and Best Value Performance Plan for 2006/07.  Mr Barrie Morris of Grant Thornton UK LLP for RSM Robson Rhodes took the Committee through the elements of the Audit Report highlighting some of the key issues arising from the audit and the Council’s response to their recommendations. He confirmed that the Council had received an unqualified audit opinion to the accounts with no material audit adjustments being required.  The Committee noted that the Accounts had been produced in a new format required by the CIPFA Statement of Recommended Practice (SORP) for Local Authority Accounting, including a new Statement of Total Recognised Gains and Losses.  The Auditors commended the Corporate Finance Team, in particular Mr Stuart McKellar and Mr Darren Stevens, for their exceptional work in preparing the accounts, and thanked them for their assistance during the duration of Robson Rhodes’ period as the Council’s external auditors.  Mr Peter Smith attended the meeting, representing the Audit Commission, the Council’s new external auditors from April 2007.

Resolved – (1) That the External Audit report on the Council’s Statement of Accounts, Use of Resources update and Best Value Performance Plan for 2006/07 be accepted.

(2) That the Chair of the Audit Committee be authorised to sign the Statement of Accounts for 2006/07 on behalf of the Committee.

(3) That the Finance Team be congratulated on their exceptional work on the accounts for 2006/07 under the new accounting standards and the achievement of unqualified accounts.

(4) That RSM Robson Rhodes LLP be thanked for their work as the Council’s External Auditor.

            The Committee considered a report from the Head of Internal Audit on the outcomes of a follow up review of the Council’s procedures for starters and leavers, requested by the Committee following its consideration of the original report in June 2006.  The Head of Human Resources Strategy and Policy attended the meeting to answer questions from the Committee about the improvements to the service.  It was noted that the follow up review had shown progress in implementing recommendations that had brought the overall audit opinion from “of significant risk’ to ‘of concern’, and that a number of improvements were still to be embedded.

Resolved – (1) That the report on the outcomes of the follow up review of the Council’s procedures for starters and leavers be noted.

            (2) That a report be made to a future meeting advising on the resolution to the outstanding issues identified, and that key officers responsible for those areas from Swindon Commercial Services and Capita be invited to attend the meeting.

(3) That, when reporting back on follow-up reviews, the Head of Internal Audit include revised target dates for any actions outstanding from the original report and relevant risk scores.

The Group Director, Resources and Leisure, presented a report on the revised project management arrangements in respect of the Wichelstowe Residential Development Project and progress in implementing the key findings of the internal audit report of January 2007.  The Group Director assured the Committee that effective corporate governance and project control measures were now in place, and advised on the key governance structures, cost and risk controls that were now in place.

Resolved – (1) That the comprehensive management response to the recommendations of the Internal Audit of the Wichelstowe Residential Development Project, and progress in the implementation of those recommendations, be noted.

            (2) That the Committee recognises the need for the Council to keep a tight control on any mid-project changes that would have a significant impact on project delivery, and that any amendments should only be made within a vigorous change management environment, where outcomes and costs were fully understood.

            The Committee had previously requested that at least one audit report, classified as being ‘of significant risk’ or ‘of concern’, be submitted to each meeting.  The Head of Internal Audit presented internal audit reviews of Council Tax and NNDR, which had been given ‘of concern’ ratings due to lack in segregation in duties, access levels and exception reports.  It was noted that this area was due to transfer to Capita in December 2007, and this audit review acted as pre-transfer testing for the service.

            Resolved: - (1) That the internal audit reviews of Council Tax and NNDR be noted. That the Head of Internal Audit be requested to identify all outstanding issues from the reviews and Capita be asked to attend the next meeting of the Audit Committee to provide assurances that these controls will be put in place.

            (2) That a summary of key elements of the Audits be provided to Capita, and a representative of Capita be invited to attend the December meeting of the Committee to give assurance on the way in which the issues will be addressed under the new management arrangements for the service.

            (3) That the Head of Internal Audit discuss with the Chair of the Committee prior to each meeting whether it is appropriate to invite Lead Officers to report to the Committee on reports presented under this item.

The Sub-Committee received a report of the Group Director, Resources, summarising the main issues arising from Internal Audit reports finalised between June and September 2007 and advising on progress against the Internal Audit Plan.

Resolved – (1) That the summary of Internal Audit reports finalised between June and September 2007, and progress against achievement of the Internal Audit Plan, be noted.

(2) That the progress on the Department of Children, Schools and Families (DCSF) external assessments of the financial management standards in special schools be reported to the next meeting, and if any outstanding issues are identified with scheduling, the Head of Internal Audit in discussion with the Chair, nominate dates for the audits to take place.

(3) That the Head of Internal Audit arrange for the Committee to be informed of progress in relation to the outstanding actions in the following system reviews:

·        Payment Care Industry Review

·        Internet Site Restrictions

·        Sickness Absence School Reporting

The Chair advised the meeting that Jan Collins, the Council’s Corporate Risk Manager, would shortly be leaving the employ of the Council. On behalf of the Committee, the Chair thanked Jan for her hard work, particularly in support of the Audit Committee, and wished her every success in her new employment.