MINUTES OF A MEETING OF THE AUDIT AND PERFORMANCE COMMITTEE HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON TUESDAY, 13 MARCH 2007 COMMENCED AT 6.00 PM

 

Present:    

 

Cllrs Anne Bishop (Chairman), Mike Cunningham, Jonathan Fitzgerald-Bond, Barbara Foster, Susan Scoccia

 

Also Present:

 

Alastair Rankine, Charlotte Smith

 

Officers Present:

 

Joe Duckworth, Alison Lowton, Sarah Mitchell, Geraint Newton, Ged Richardson, Bob Streets, April West

 

 


63.       MINUTES

 

RESOLVED :

 

THAT the minutes of the meeting held on 13 February 2007 be confirmed as a true record subject to the following amendment:

 

Resolution (a) on page A-6 be amended to reflect that the regular update report on the Disposals Programme would be received by the Committee on a monthly basis.

 

64.       DECLARATIONS OF INTEREST

 

Cllr Cunningham declared a personal interest in item 7 on the agenda, the Annual Audit and Inspection Letter, as he had been the Portfolio Holder for Environment and Transport in 2001.

 

65.       PUBLIC QUESTION TIME

 

Mrs Debbie Frost from Ventnor asked whether the Committee were aware of the exact terms of the sale and/or disposal of a parcel of land on Ventnor Eastern Esplanade to Cheetah Marine. The Committee stated that they were not aware at present but, at future meetings the Committee would be updated on the Council’s Disposals Programme. The Chief Executive informed the Committee that the Council was in correspondence with Professor Russell regarding this very issue and that it was a property, rather than a planning, issue.

 

RESOLVED:

 

THAT a response be provided to Mrs Frost, through Professor Russell.

 

66.       INTERNAL AUDIT OUTCOMES REPORT

 

The Committee recalled that it had been discussed that the Audit and Performance Committee should be involved in ensuring the Council achieved best value. However, a post had recently been advertised for someone to oversee the Council’s work in relation to achieving best value. It was suggested that the Committee should retain a strategic overview of the work carried out by the new postholder.

 

Members were concerned with respect to emergency planning and business continuity that there had been no regular review of either emerging risks or the effectiveness of the control measures that had been implemented. The Committee was informed that since the publication of the report the situation had changed but, emergency planning had tended to lag behind the rest of the Council in terms of its risk management. The Chief Executive updated Members on the Council’s developing risk management arrangements. He stated that the Director of Children’s Services was now the lead for risk management across the Authority and that an area the Authority was still working on was business continuity, which involved a project team currently led by the Director of Environment and  Neighbourhoods. Members were reminded that when the Council’s use of resources score was determined, business continuity was a key area.

 

The Committee was concerned that 1 in 10 employees had not produced the required documentation related to the right to live and work in the UK. Members were informed that the Human Resources department was concerned this had not happened and were assured steps would be taken to ensure the situation did not arise again.

 

Members were concerned that managers had been completing pay sheets for employees. The Committee was assured that the situation had been rectified, particularly with respect to the Cowes ferry operation.

 

The Committee was concerned that BACs payments were limited to £7 million each month.   Members were informed that the Council was nearing the limit that had previously been set and that it may be necessary to provide more leeway. 

 

Members enquired whether it was the Council’s responsibility to look after the Winter Gardens Theatre in Ventnor with respect to wear and tear. The Committee was informed that the Council did have that responsibility. It was suggested that the Winter Gardens should be included in future audits. Members questioned the conclusions of the report, which stated that leisure centres were ‘generally operating effectively’. It was stated that this conclusion could be debatable when the cost to the Council of running leisure centres and theatres was taken into account and that issues of best value had not been considered in the report. Members were informed that the Council had an agreed level of deficit/subsidy with theatres and leisure centres and that the Council was achieving those targets. The Chief Executive informed Members that a best value review of leisure centres and theatres was due to be completed by the Council, which would address the issues raised, the review would be discussed by the Cabinet in June 2007.

 

Members enquired whether Medina High School was still affiliated with Medina Theatre. It was stated that the agreement between the theatre and the school would be refreshed.

 

The Committee raised concerns related to information and communications technology (ICT) downtime. Members were informed that one of the recommendations from the audit was that a scheduled maintenance window be established. The Chief Executive stated that the Council had underinvested in its ICT architecture for a number of years and at present, it was not fit for purpose for the type of organisation the Authority was striving to become. He stated that the Council would have to invest in ICT in future years to achieve a fit for purpose ICT system. ICT issues would be addressed in the review of the strategic partnership in respect of support for, and development of, ICT.

 

RESOLVED:

 

THAT the report be noted by the Committee.

 

67.       THE COUNCIL’S RISK MANAGEMENT ARRANGEMENTS

 

The Committee was informed that the Council’s risk management arrangements had been described by the CPA assessment last year as ‘underdeveloped’. An action plan had been developed which formed part of the Council’s CPA Improvement Plan. Risk management was a key feature in the use of resources assessment and was important in its own right. Members were informed that the Authority had made good progress to identify strategic risks. Such risks would be managed on a monthly basis. Significant service risks had also been identified. The Committee was made aware of how the Council measured risk management and how it demonstrated whether risk management was embedded within the Authority.

 

The Committee wished to know where the Council was positioned in relation to the model shown in Appendix D of the report. Members were informed that the Council had been scored 2 out of a possible score of 5 but, it was hoped significant progress would be made.

 

Members wished to know who comprised the Partnership Governance Group. The Committee was informed of the Group’s present membership. The Committee wished to know what monitoring arrangements were in place to ensure partnerships were fit for purpose and offering best value. Members were informed that guidance was in existence and an assessment would be carried out in March 2007.

 

RESOLVED:

 

THAT the report be noted by the Committee.

 

68.       COMMUNICATION BETWEEN THE PLANNING DEPARTMENT AND THE COUNCIL’S REVENUES TEAM REGARDING BUILDING DEVELOPMENTS AND CHANGES OF USE

 

The Committee was informed that the purpose of the report was to address issues previously raised by Members. The report explained how the Planning Department and the Revenues Team liaised with one another and how the Revenues Team liaised with the Valuation Office in order to keep the council tax database up to date. Members were concerned that information regarding change of use was not being communicated effectively to the Revenues Team and consequently, information was not being updated on the council tax database. The Committee was informed that a more robust procedure had now been put in place since Members’ concerns were first raised and that this improved procedure was reflected in the findings of the report. Members stated that the procedure needed to be tested to ensure that an effective procedure was in place.

 

RESOLVED:

 

THAT:

 

i.              the report be noted and;

ii.            the procedure be tested and the Committee assured that a robust procedure had been put in place.

 

69.       ANNUAL AUDIT AND INSPECTION LETTER

 

The Chairman introduced Alastair Rankine and Charlotte Smith from the Audit Commission. The Committee was informed that the District Auditor had given a formal presentation on the Annual Audit and Inspection Letter to the Cabinet on 6 March 2007. Members were informed that the letter provided an assessment of the Council’s overall performance and drew upon inspection, as well as audit, work. It was stated that the letter was positive but, Members’ attention was drawn to the following two issues:

 

1.      Severance Payments

2.      Engineering works at Undercliff Drive, Ventnor

 

It was stated that despite these two issues the Council was well placed to move forward into the future.

 

Members were informed that robust improvement plans were in place, capacity and leadership had been strengthened, effective arrangements were in place to ensure effective use of resources, performance management was well established within the Organisation and that there were a number of examples of positive outcomes in various service areas. The Committee were informed that the Council remained a 2* council but, in terms of its direction of travel, it was improving well. The Committee’s attention was drawn to the following key messages:

 

1.      Corporate priorities needed to be monitored and measured effectively so that work streams were well coordinated and project management was effective.

 

2.      A good process for value for money needed to be embedded within the Authority.

 

3.      At present the Authority did not have a robust strategic approach to procurement.

 

4.      Data quality within the Authority was inconsistent.

 

5.      The good practice and arrangements, developed over the past year, in terms of securing effective use of resources needed to be allowed to re-embed within the Organisation.

 

6.      The Authority had to ensure openness and transparency in its decision-making and that internal regulations were adhered to.

 

7.      The Authority had to ensure that processes were in place to ensure contract standing orders were adhered to.

 

Members stated that they were not surprised by some of the outcomes of the letter but, that they were surprised by others, for example, the issue of severance payments and the situation with engineering works at Undercliff Drive, Ventnor. It was stated that considerable resources would be put in place so that issues raised by the letter would be addressed.

 

The Committee enquired whether engineering works at Undercliff Drive would be delayed due to the requirement for the Council to put arrangements on a proper legal basis. The Chief Executive assured the Committee that the Council would do all that it could to ensure the scheme went ahead. Members wished to know whether there would be a surcharge to rectify the situation. The Chief Executive stated that there would not be a surcharge but that resources would be found from tight financial management.

 

Members were concerned that the answer given to Cllr Knowles’ question, which was asked at a meeting of the Full Council on 18 January 2006 with respect to the severance issue, was inaccurate and had misinformed elected Members. It was stated that the figure given at that meeting with regard to the cost to the Authority, of the 7 redundancies in question, was inaccurate. The Chief Executive stated that the cost to the Authority in respect of the redundancies was correct but, that the information was misleading if pension costs were included.

 

RESOLVED:

 

THAT the Annual Audit and Inspection Letter and the action plan in response to the recommendations of the letter be noted.

 

70.       MEMBERS QUESTION TIME

 

No questions were asked.

 

 

 

CHAIRMAN