MINUTES OF THE AUDIT COMMITTEE HELD ON THURSDAY, 22 SEPTEMBER 2005, IN COMMITTEE ROOM 1, COUNTY HALL, NEWPORT, COMMENCING AT 6.00 PM

Present :

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

Apologies :

Cllr Ivan Bulwer

Also in attendance:

Cllrs Dawn Cousin, David Pugh, Andy Sutton

Officers Present:

Mr John Lawson, Mr Ged Richardson, Mr Bob Streets, Miss April West,

5. MINUTES

RESOLVED :

THAT the minutes of the informal meeting held on 28 July 2005 were confirmed.

6. DECLARATIONS OF INTEREST

There were no declarations of interest at this stage.

7. STATEMENT OF INTERNAL CONTROL

The Compliance and Risk Manager introduced the Chief Finance Officer’s report and confirmed that the Statement of Internal Control (SIC) was now a statutory requirement. The internal control measures, supported by Heads of Service, would need to be reviewed by the Committee on an annual basis. Although the SIC would be signed off by the Chief Executive Officer and the Leader, Members would play an important, independent role in monitoring the accuracy and sustainability of the Statement. The Internal Audit team had produced a list, together with planned actions to assist with highlighting identified weaknesses.

Concerns were raised regarding adherence to deadlines, and Members noted that no senior officers were available to answer questions. In particular, the deadline for the Corporate Project Team, responsible for setting best practice for partnership management had lapsed. The Committee acknowledged that it was important to understand the problems experienced by officers, as well

as to put forward recommendations to Cabinet Members or Full Council to address any weaknesses.

It was suggested that all Members of the Council should receive training in audit processes in order to assist with lines of enquiry for Corporate Performance Assessment (CPA) 2006. The Committee was advised that a series of training events would be available over the coming weeks and would focus on aspects of corporate governance, risk management, internal audit issues and external audit functions.

Members were also concerned about resourcing issues faced by the Internal Audit team and the effect it may have on future workload, but acknowledged that this would be addressed through the budget process.

RESOLVED :

(i) THAT the report be noted.

(ii) THAT the Statement of Internal Control be approved.

8. INTERNAL AUDIT PROGRESS REPORT

The Chief Internal Auditor introduced the report, which provided a summary of the department’s activity since the last report to Committee. Reports requested by Council on 29 July 2005 were also included, providing details of deficits in trading operations, future liabilities involved in operating leases, as well as under-spends in the capital programme.

Members were advised that the Audit Committee’s role would be to ascertain why deficits occurred within some departments and assess whether the level of deficit was tolerable in corporate terms. Ensuring that the Council was achieving value for money with lease brokers would also be a key issue.

Questions were raised concerning the parameters of the service currently provided given that the Internal Audit Team was envisaged as under-resourced by 30% in comparison with other authorities. Members were assured that the service could be significantly improved if the resourcing issue was addressed.

The details regarding under-spends across Council services were reviewed and it was envisaged that individual schemes could be further investigated at future meetings. Officers were asked to ensure that the appropriate managers, Heads of Service and Strategic Directors would be available for future meetings.

The Committee also felt that further background information about individual projects could be provided in order to assist with discussions about ‘acceptable deficits’. Members were aware that the Council had a duty to provide services for the public, but that the duty of the Audit Committee was to ensure that further problems were not created by slippages in performance and spending.

RESOLVED :

i. THAT the report be noted.

ii. TO recommend that the Cabinet Member for Resources, Audit, an Efficient Council and Customer Champion investigate ways to increase resources for the Internal Audit Team, in order to ensure that all aspects of their work could be undertaken.

CHAIRMAN