MINUTES OF A MEETING OF THE AUDIT COMMITTEE HELD ON THURSDAY, 25 MAY 2006 AT COUNTY HALL, NEWPORT, ISLE OF WIGHT COMMENCING AT 6.00 PM

 

Present:    

 

Cllrs Anne Bishop (Chairman), Ivan Bulwer, Mike Cunningham, Jonathan Fitzgerald-Bond, Susan Scoccia

 

Also in attendance: 

 

Cllrs Andy Sutton, Jilly Wood

 

Officers Present:

 

Chris Bentley, Stuart Fraser, Ged Richardson, Bob Streets, Paul Thistlewood, April West, Paul Wilkinson

 

Others Present:

           

Alastair Rankine (Audit Manager from the Audit Commission)        

 

Apologies:

 

Cllr Barbara Foster        

 

 


Members noted that the title of the Committee had been revised at the Annual Council meeting held on 24 May 2006 and would in future be referred to as the Audit and Performance Committee.       

 

1.      MINUTES

 

RESOLVED :

 

            THAT the minutes of the meeting held on 16 March 2006 be confirmed.

 

2.      DECLARATIONS OF INTEREST

 

There were no declarations of interest.

 

3.      PUBLIC QUESTION TIME

 

There were no public questions.

 

4.                  THE COUNCIL’S STATEMENT ON INTERNAL CONTROL

 

Members considered the Council’s Statement on Internal Control (SIC) for the financial year 2005/06. Members were informed that the Council had a statutory obligation to conduct a review of the effectiveness of its system of internal control and publish the findings of its review in the form of a statement to be included with its annual statement of accounts. 

 

Members were informed that the recommendations from the Audit Commission the previous year, on ways to improve the formation of the statement, had been taken on board and some had been incorporated into this year’s SIC. The SIC was required to be signed off by 30 June 2006.

 

The Chief Internal Auditor had carried out an independent review of the Council’s risk registers and the assurance statements, signed off by Heads of Service. A similar moderation process had been undertaken by the Risk Management Group and SIC Project Group. A comparison with several other local authorities had suggested that the Isle of Wight Council was better at recognising weaknesses in its SIC than other local authorities.   

 

Members expressed concern that since funding for the Undercliff Drive Scheme had been secured two years ago, the process had been slow in obtaining Compulsory Purchase Orders. Members felt that there was a high risk that the condition of the Undercliff Road would deteriorate further or could collapse prior to work commencing. The Committee agreed that the SIC would be amended to include a reference to the Undercliff Drive Scheme. Members were assured that outstanding performance and resource issues within the Engineering Services department would be addressed when the new Chief Executive was in post from 5 June 2006. The Leader advised the Committee that concerns such as these should be formally raised with the relevant Cabinet Member.

 

Members asked for assurance that the Council could deliver on the action planned for the significant internal control issues in section 12 regarding ‘the potential for a fatality, non-accidental injury or abuse to a child known to the Council, on the child protection register or cared for by the Council’. Members were informed that the appropriate Head of Service would be contacted and an answer would be provided at the next meeting.

 

Members addressed the issue of the Council continuing to make progress in improving its approach to the management of health and safety. It was agreed that general health and safety issues would be addressed and the SIC would be amended to delete references to tree safety in Section 11 of the significant internal control issues.

 

Members were informed that a governance control issue regarding higher end delegated decisions would be added to the SIC as an additional section.

 

The final draft of the SIC would be considered for approval at the Committee’s next meeting on 29 June 2006. The Committee would be asked to approve the Statement and recommend it to the Leader and the Chief Executive for signature.

 

RESOLVED:

 

                          i.            THAT the Statement on Internal Control be amended to include a specific reference to the Undercliff Drive Scheme.

 

                        ii.            THAT the Audit Committee receive an update on the action planned for number 12 of the significant internal control issues, relating to child protection, at the next meeting.

 

                      iii.            THAT the Statement on Internal Control be amended to refer to general health and safety issues and delete references to tree safety in number 11 of the significant internal control issues.

 

                       iv.            THAT the final draft of the Statement on Internal Control be considered for approval at the Committee’s next meeting on 29 June 2006.

 

5.                  INTERNAL AUDIT OUTCOMES REPORT

 

The Chief Internal Auditor updated the Committee on Internal Audit activity completed since the last report in January 2006.

 

RESOLVED:

 

THAT the report be noted.

 

6.                  REPORTS OF THE AUDIT COMMISSION

 

a.                  Annual Audit and Inspection Plan

 

The Audit Manager from the Audit Commission referred to the Annual Audit and Inspection Plan. Members highlighted the risk to the Council in not managing and monitoring Value for Money effectively prior to further developments in performance management. It was noted that there were planned changes to the Council’s arrangements for managing its property and updating its asset management plan and this should result in the effective use of these resources.

 

The Leader assured Members that the CorVu system would aid performance management and encouraged Members to challenge Cabinet Members to ensure they delivered on their key tasks.

 

The Cabinet Member for Resources & Town/Parish Council Empowerment assured Members that the draft asset management plan was due shortly and would address the Council’s large maintenance backlog.

 

b.                  Audit Progress Report

 

The Audit Manager from the Audit Commission referred to the closing position statement on the reports issued and agreed as part of the 2004/05 audit. He also advised on how the work programme agreed as part of the 2005/06 Audit and Inspection Plan was progressing and indicated the date that final reports are expected to be available for presentation to the Committee.

 

RESOLVED:

 

THAT the reports be noted.

 

7.                  MEMBERS QUESTION TIME

 

There were no Member questions.

 

 

 

The meeting closed at 7.00 pm

 

 

 

CHAIRMAN