MINUTES OF THE AUDIT COMMITTEE HELD ON THURSDAY, 17 NOVEMBER 2005 IN COMMITTEE ROOM 1, COUNTY HALL, NEWPORT, COMMENCING AT 6.00 PM

Present :

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

Apologies :

Jonathan Fitzgerald-Bond

Also in attendance:

Cllrs Vanessa Churchman, Dawn Cousins, Erica Oulton

Officers Present:

Messrs John Lawson, Steve Matthews, John Metcalfe, Ged Richardson, Derek Rowell, Bob Streets, April West

The Committee noted that a number of senior officers were in attendance for specific items on the agenda and agreed to take agenda items 7 and 8 prior to item 5.

14. MINUTES

RESOLVED :

THAT the minutes of the Audit Committee meeting held on 25 October 2005 were confirmed.

15. DECLARATIONS OF INTEREST

Cllr Cunningham declared a personal interest in Minute 19 (iii) as he was a School Governor at Nine Acres School.

16. ADULT AND COMMUNITY LEARNING INSPECTION REPORT

The Associate Director of Cultural and Leisure Services introduced the report explaining that the statutory provision of Adult & Community Learning (ACL) is the responsibility of the Learning & Skills Council. It has the power to compel the Council to provide such services. The Government’s Adult Learning Inspectorate had inspected the Council’s provision of ACL services during March 2005.

Members were please to note that the results of the inspection had been very positive and that a Grade 2 (“Good”) had been awarded. (Based on a 4 point scale where Grade 1 was ‘outstanding’ and Grade 4 was ‘inadequate’).

Members also noted the Family Learning Services had been awarded a Grade 1, Diversity had gained a Grade 2, and Visual and Performing Arts and Media had gained a Grade 3, all of which had contributed to the grade for the service as a whole.

Members asked about the actions that would be necessary to improve the service, as set out in the improvement plan produced in response to the inspection. They were especially interested in improving the visual and performing arts and media area of work and any subsequent budget implications. The Committee was informed that approaches for additional funding from the LSC had been declined, and to deliver the improvement plan within current budgets would require some re-profiling of existing services.

It was envisaged that there was considerable scope to extend the range of the Adult and Community Learning Service in the future to facilitate increased learning opportunities, but this could only be achieved at additional cost.

RESOLVED:

THAT the report be noted and no further action be taken following the inspection.

17. GATEWAY REVIEW – PFI HIGHWAY ASSET MANAGEMENT

The report was introduced by the Compliance and Risk Manager, who explained that the Gateway Review was a new process for the Council and had been self-soliciting. The review should be seen as independent scrutiny for a strategic project at minimal cost to the Council. The organisation engaged, 4ps, had undertaken several reviews of a similar nature. The criticisms had been received constructively and the results of the review were intended to prevent the PFI Project from proceeding without the necessary corrective action.

Members agreed that the PFI Highways Project was very important to the Island’s infrastructure and forward planning and questioned whether the scope should be widened to include other benefits as suggested in the review. The Head of Service explained that the PFI bid had been submitted as a ‘repair’ project, which was intended to restore and maintain the highways network to a predetermined condition.

An Infrastructure Group had been formed as part of the Regeneration Service, under the Strategic Director of Environment Services, which would investigate and assess what other investments could be utilised for enlarging the scope of improvements to the Island’s highways. It was envisaged that a combination of proposed programmes, using the PFI contractor would achieve best value for the Council. It might also be possible to use part of the Local Transport Plan 2 (LTP2) budget allocation for extra works.

The latest news from the Department for Transport (DfT) had included an invitation for Local Authorities to submit Expressions of Interest for PFI Projects for highway maintenance. Isle of Wight Council officers would be meeting with DfT officers on 30 November 2005 to pursue the possibility of securing a ‘path-finder’ PFI Project status. An outline business case was currently underway and would be ready early in 2006.

Members were pleased to learn that any work undertaken by utility companies would be managed by the PFI contractor, which would enable structured programmes of work.

RESOLVED:

THAT the opportunity offered by the gateway report is used to scrutinise the progress of the PFI project.

18. CORPORATE GOVERNANCE

Members received a presentation from the Compliance and Risk Manager regarding the issues of corporate governance. Following an interactive discussion between the Committee and the Assistant Chief Executive, Members agreed that performance improvement was a key part of corporate governance if not paramount.

The Chairman thanked the Compliance and Risk Manager for an interesting and informative presentation and on behalf of the Committee expressed the view that a similar presentation should be made available to all Members.

19. INTERNAL AUDIT REPORT

Members’ attention was drawn to Appendix A of the report, which provided details of the reviews undertaken since the last Audit Committee meeting.

i. The Customer Accounts (Sundry Debtors) Review had included a half-day staff workshop. During discussions risks encountered by home visiting officers had been identified. As a direct result, proposals had been put forward to safeguard employees as well as share information with other departments managing home visits. In addition, financial savings had been identified by reworking an existing process for dealing with credit notes.

ii. The Children’s Disability Review had also included a work assessment workshop to identify risks, which had highlighted the shortage of resources and increasing demand. As a result of the review it had been agreed that the corporate policy for absence management should be strictly applied. It was also noted that better mechanisms for referrals from Children’s Services could be put in place, enabling a better focus as well as saving time.

iii. Three main risks were identified during the Schools Inspectorate Review, these were:

· A lack of resources in schools, LEA’s and the school inspectorate

· Responsibility – too much ‘buck-passing’ and a lack of challenge from parents

· Focus – must put children at the centre.

A range of control measures had been put in place following the Schools Inspectorate Review with additional strategies planned for the future, all of which would ensure improvement to the service.

Members accepted that this review had been a substantial piece of work and suggested the information could be useful to other officers and Members. It was noted that copies of Audit Reviews were already forwarded to the appropriate departments.

Whilst being aware that there should be no duplication of work, Members suggested that future Audit Reviews should be copied to appropriate Cabinet Members and Policy Commissioners.

RESOLVED:

i. THAT the Customer Accounts (Sundry Debtors) System Review and the Children’s Disability Team Review be noted.

ii. THAT a copy of the Schools Inspectorate Review be forwarded to the appropriate Cabinet Member and Policy Commissioner.

iii. THAT copies of future Audit Reviews be forwarded to the appropriate Cabinet Member and Policy Commissioner.

The meeting closed at 8.00 pm

CHAIRMAN