MINUTES OF A MEETING OF THE AUDIT PANEL HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON WEDNESDAY, 25 JUNE 2003 COMMENCING AT 2.00 PM

Present :

Mr J Adams (deputising for Mr G P Price), Mr M J Cunningham Mr J F Howe (deputising for Mr I R Stephens), Mrs M J Lloyd, Mr R A Sutton (deputising for Mr P D Joyce)

Apologies :

Mr P D Joyce, Mr G P Price, Mr I R Stephens

1. ELECTION OF CHAIRMAN

RESOLVED :

THAT Mr M J Cunningham be elected Chairman for the ensuing year.

2. MINUTES

RESOLVED :

THAT the Minutes of the meeting held on the 24 February 2003 be confirmed.

3. INTERNAL AUDIT PROGRESS REPORT

The Panel received the report of the Risk and Compliance Manager which provided members with a summary of Internal Audit Activity since January 2003.

With regard to banking arrangements the Panel was advised that the Council had entered into an additional year with Natwest Bank and would be going to tender in 2004. However research had showed that there little interest from high street banks to work for local authorities.

The Comprehensive Performance Assessment (CPA) process undertaken in 2002 had identified a weakness in project management. This was currently being reviewed by the Head of Policy and Communications with a deadline of March 2004 as set by the CPA. Following the review a new project management programme would be adopted in accordance with the CPA action plan.

The Panel raised some concerns regarding the Council=s ICT systems. In particular that a single operating system had not yet been adopted. It was also identified that a security policy had yet to be developed. Performance Management was considered to be a key component of ICT project management.

With regard to School visits audits had been undertaken at two high schools, one middle school and three primary schools. The Panel noted that all recommendations had been accepted by the schools.

It was noted that the Best Value Review of the Council=s Procurement was being overseen by an Appraisal Group and a report and Improvement plan would be completed by the end of 2003. The Panel requested that an update be provided at the next meeting.

RESOLVED TO RECOMMEND TO THE COUNCIL :

(a) THAT in regard to issues raised by two internal reports on the subjects of Unix Security and Project Management the Council is recommended to :

(i) Ask the Council=s E-champion (the Resources Portfolio Holder) to consider the Council=s ICT security arrangements

(ii) Adopt the British Standard for information security management (BS 1SO/IEC 17799 : 2000)

(iii) Ask the Council=s E-government Task Group to perform the role of strategic oversight of all ICT elements of the authority and report back to the Resources Select Committee on a regular basis.

(b) THAT in regard to the following issues, the associated actions are taken

(i) Project Management - Members of the Audit Panel receive a copy of the internal audit action plan

(ii) Performance Management - Members of the Audit Panel receive further details of those performance indicators which are causing problems and the Panel supports the further development of a Performance Management culture and endorses the development of a corporate database of indicators to manage performance

(iii) Risk Register - that when reports are considered by the Executive, any risks already appearing in the Strategic Risk Profile (the Council=s Risk register) should be cross-referenced.

(iv) Procurement Best Value Review - that a further progress report from the Project Leader and the lead member for the review be submitted to the Audit Panel at its next meeting.

CHAIRMAN