PAPER E
Committee : AUDIT AND PERFORMANCE COMMITTEE
Title : ANNUAL AUDIT AND INSPECTION
LETTER
REPORT OF THE CHIEF EXECUTIVE
PURPOSE
1.
The purpose of this report is to consider the
Annual Audit and Inspection Letter from the Audit Commission for 2005/2006 and
to agree the Council’s response in the form of an action plan.
BACKGROUND
2.
The Annual Audit and Inspection Letter provides a summary of the Audit Commission’s assessment of
the Council and its performance. It
draws upon the full range of assessments and inspections that the Council and
its services have received over the last year, including the CPA corporate
assessment, the Joint Area Review of Children’s Services, and those in relation
to Adult Social Services, Housing Benefits and the Fire Service. In addition it draws upon the findings of the
‘Use of Resources’ assessment.
3.
The letter therefore provides a useful ‘reality
check’ of how the Council is progressing.
Of particular interest is the assessment of the Council’s ‘direction of
travel’ which the letter announces. For
the first time the Council is assessed as ‘improving well’ rather than merely
‘improving adequately’. This represents
a significant recognition of the Council’s ambition and determination to change
and that the changes are well underway to achieve improvement.
4.
The Letter does however make a number of
recommendations which require robust action plans in response, as follows:
- Monitor the delivery of the Council’s action plan to ensure that
improvements supporting the effective use of resources are implemented and
embedded
- Arrangements for ensuring the quality of performance data should be
improved
- The recommended improvements to processes relating to severance
issues highlighted in my letter, which have yet to be addressed, should be
formally implemented as soon as possible
- The Council needs to develop a more strategic approach to
procurement which improves the overall coordination of the process
- Arrangements in
respect of engineering works at the Undercliff Drive must be put on a
proper legal basis as a matter of urgency and action taken to demonstrate
competitiveness and risk management in relation to these ongoing
contracting arrangements.
An
Action plan to address these recommendations is attached at Appendix B.
STRATEGIC CONTEXT
5.
The Annual Audit and
Inspection Letter is a key report giving the Council an independent view by the
Audit Commission of the Council’s performance and its direction of travel. It should be seen as an invaluable guide to
whether the Council is delivering its improvement agenda.
CONSULTATION
6.
The Council’s Directors
have been consulted on the content of the letter and have been given the
opportunity to clarify any issues with the District Auditor. The Letter was
considered by the Cabinet on 6 March 2007.
FINANCIAL IMPLICATIONS
7.
There are no direct
financial implications arising from the Letter itself, but there are
implications attached to the actions planned to address its recommendations.
LEGAL IMPLICATIONS
8.
The Letter is prepared by
the District Auditor in order to meet the requirements of the Statement of
Responsibilities of Auditors and Audit Bodies, as issued by the Audit
Commission.
RECOMMENDATIONS
9. To note the Annual Audit and Inspection
Letter and the action plan in response to the recommendations of the Letter. |
BACKGROUND PAPERS
Comprehensive Performance Assessment (CPA) 2006
Joint
Area Review 2006
Use of Resources Assessment 2006
Fire Service Assessment 2005
Other Service Assessments referred to in Table 3 of
the Letter
Statement of Responsibilities of Auditors and Audit
Bodies (Audit Commission)
APPENDICES
Appendix A -The Annual Audit and Inspection Letter.
Appendix
B - Action Plan to address recommendations.
Contact Point : Bob Streets,
Programme Lead for Compliance, ( 01983 823622, email: [email protected]
JOE DUCKWORTH
Chief Executive