MINUTES OF A MEETING OF THE AUDIT AND PERFORMANCE COMMITTEE HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON TUESDAY, 10 OCTOBER 2006 COMMENCING AT 6.00 PM

Present:

Cllrs Anne Bishop (Chairman), Ivan Bulwer, Mike Cunningham, Barbara Foster, Susan Scoccia

Also in attendance:

Cllrs George Cameron, Vanessa Churchman, Charles Hancock, Tim Hunter-Henderson, Muriel Miller, Ian Ward, Margaret Webster, David Whittaker, Jilly Wood

Officers Present:

Barry Cooke, Stuart Fraser, Ged Richardson, Bob Streets, Paul Thistlewood, April West

Apologies:

Cllr Jonathan Fitzgerald-Bond

25. MINUTES

RESOLVED :

THAT the minutes of the meeting held on 21 September 2006 be confirmed subject to the addition of Cllr David Whittaker being in attendance.

26. DECLARATIONS OF INTEREST

There were no declarations of interest.

27. PUBLIC QUESTION TIME

There were no public questions.

28. INTERNAL AUDIT PROGRESS REPORT/WORKPLAN

The Chief Internal Auditor updated Members on the progress made by the Council’s internal audit department in delivering the annual audit plan for 2006/07.

Internal audit expected to achieve 85% of the planned programme of work by the end of the 2006/07 financial year compared to 56% achieved in the 2005/06 financial year. This was due to three additional members of staff in the team.

The Committee asked questions and were informed that the time spent on each audit was determined by an informed judgement made by the lead officer, and that each audit was prioritised using the Strategic Plan Risk Assessment whilst taking into account the individual workload of each department.

Members were advised of the difference between risk based audits and compliance audits. The former involved key risks preventing the Council from meeting its objectives and the latter was an audit which identified whether rules had been complied with.

RESOLVED

THAT the report be noted.

29. ANNUAL REPORT OF THE LOCAL GOVERNMENT OMBUDSMAN REGARDING COMPLAINTS

The Chair informed the Committee that the report would be considered by the Standards Committee.

RESOLVED:

THAT the report be considered by the Standards Committee.

30. STATEMENT ON INTERNAL CONTROL – ACTION PLANS AND PROGRESS

The Programme Lead for Compliance updated the Committee on the progress being made to address the 25 areas of weakness identified in the 2005/6 Statement on Internal Control.

The Committee’s attention was drawn to those issues where poor responses had been received indicating that insufficient priority had been given to them. Members were disappointed that the Head of Engineering Services had not responded to some of the areas of weakness identified.

The Cabinet Member for Environment, Planning & Transport updated the Committee on progress made to utilise funding for the Undercliff Drive project. Members were informed that funding had been granted but the Compulsory Purchase Order process had been delayed due to changes in the size of land required for the project. The Cabinet Member confirmed that a decision would be made by the Cabinet shortly.

The Committee asked questions and were informed that monitoring of areas underperforming was carried out through the new performance management system. Service boards were also assisting in this process and so far had focussed on performance but would now also look at risk.

Members asked questions regarding the amount of benchmarking undertaken against other local authorities and were informed that it depended on individual officers whether this was carried out.

RESOLVED:

THAT the report be noted.

31. CAR PARKS FOLLOW-UP AUDIT

The Chief Internal Auditor updated the Committee on the status of recommended actions following the recent audit review of car parks and Members discussed the progress made on the action plan attached to the report.

Members were concerned that the amount of coinage collected had increased since the introduction of the parking permit as this had been expected to decrease. Members were informed that the scheme was expected to cost less than £900,000 which had been budgeted.

Members were concerned that there were problems with the Park Folio system which was delaying work looking at identifying ways of recording and monitoring discrepancies.

Members asked questions and were informed that there was no change in policy to the number of staff employed in the car parks department since the introduction of the parking permit but there had been trouble recruiting for staff in this area.

RESOLVED:

THAT the report be noted.

32. FINAL ACCOUNTS – ITEMS FOR FURTHER DISCUSSION

a. Trading Operations

The Programme Lead for Financial Management provided an overview for the Committee on Trading Operations in a local authority context and the reporting requirements for Trading Operations.

Members were informed that there were six main types of trading operation that could be run by a local authority which were set out in the Best Value Accounting Code of Practice (BVACOP).

The Council would continue to publish specific information on Trading Operations in its Statement of Accounts to ensure consistency in the accounts and to allow a pattern of trading results to be established.

RESOLVED:

THAT the report be noted.

b. Briefing Note – Cowes Ferry

The Committee were provided with background information to the operation and charges on the Cowes chain ferry. The Cabinet Member for Environment, Planning & Transport updated the Committee on the position with the chain ferry and reported that the charges had been raised earlier in the year in line with inflation.

The Cabinet Member was keen to explore all options for the future of the ferry including raising vehicle charges in line with inflation, reducing the high percentage of discount, introduction of foot passenger fares, undertaking a survey of use, increasing income from advertising, management of the ferry, launches, and funding for a new ferry. No decisions had been made and all options were being explored.

RESOLVED:

THAT the report be noted.

c. Trading Operations – Industrial Units

The Committee were informed of the Council’s trading operations with regard to Industrial Units. The Cabinet Member for Resources & Town / Parish Council Empowerment and the Corporate Property Manager answered questions regarding the trading of industrial units.

RESOLVED:

THAT the report be noted.

d. Newport Harbour and Ventnor Haven

Members were informed of the reasons for the trading shortfall of Newport Harbour and Ventnor Haven.

Members requested the break down of the figures and the Programme Lead for Financial Management agreed to provide the Committee with these figures.

RESOLVED:

THAT the report be noted.

e. Trading Operations – Leisure Services

The Cabinet Member for the Economy, the Customer, Communications, Leisure and Tourism updated the Committee with details on trading losses in the Leisure Services key and seasonal sites. The Policy Commission for Economy, Tourism, Regeneration and Transport had undertaken a value for money review of leisure which was nearing completion. A leisure needs analysis was underway which was due to be complete in January 2007.

RESOLVED:

THAT the report be noted.

33. MEMBERS QUESTION TIME

There were no Member questions.

CHAIRMAN