MINUTES OF A MEETING OF THE AUDIT PANEL HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON TUESDAY, 9 MARCH 2004 COMMENCING AT 10.00 AM

 

Present :

 

Mr M J Cunningham (Chairman), Mr J F Howe, Mr P D Joyce, Mrs M J Lloyd, Mr K Pearson, Mr I R Stephens

 

Also Present (non voting) :

 

Mr A C Bartlett

 

 

11.              MINUTES

 

RESOLVED :

 

THAT the minutes of the meeting held on 25 November 2004 be confirmed.

 

12.              DECLARATIONS OF INTEREST

 

There were no declarations at this time.

 

13.              PART 3 CARE STANDARDS ACT 2000

 

The Panel were advised that there were 2 actions arising from Audit Commission report to be fully compliant with the Care Standards Act 2000.  The first was new job descriptions for registered care home managers and the second was the long term cost implications of staff training.

 

The job descriptions were now completed and fully in place for the managers of The Gouldings, The Adelaide and Westminster House.  There were 90 staff employed at the three establishments and approximately 50% were already trained to NVQ level 2 or above.  Bids of £30,700 for 2004/05 and £24,320 for 2005/06 for training had been made.

 

Members were told that private providers also had to meet the same standards.  The Panel asked how many staff were retained after they had completed their training and were advised that the turnover was approximately 30 per year.  The Direct Services Manager did interview employees as to why they were leaving the Councils employment, but there did not appear to be any specific underlying trend.  Members were told that thirteen similar Unitary Authorities had also been audited.  The structure at Social Services was to be changed, making it more efficient and able to meet National Care Standards.

 

RESOLVED :

 

THAT the action taken in response to the Audit Commissions report on the Care Standards Act 2000 be noted.

 

14.              AUDIT AND INSPECTION LETTER 2003

 

The Audit Manager for the Audit Commission advised members that this was the first joint audit and inspection Annual Letter.  The overriding theme was very positive as the Council had done a lot of work over the past 12 months.

 

There were five key themes incorporated within the Annual Audit Letter :

 

1.                  The Council must do what it can to keep the agenda rolling forward.

 

2.                  Endeavour to create additional capacity - improving and developing the internal workforce and extending partnership working.

 

3.                  Tackle under-performing areas – the Council has focussed attention on a few things that matter rather than everything.

 

4.                  Engagement with the community – GAGS Project.

 

5.                  Need to create financial stability – formalise medium term financial strategy (3-5 years)

 

The Council needed to bring forward its timetable for the closure and publication of its accounts.  Action was in hand to improve on the timing and it was anticipated that the 2003/04 draft final accounts would be ready in June 2004.

 

The Panel asked if the District Auditor looked at fraudulent use of public money.  Members were advised that the District Audit’s primary function was to review the Council’s own arrangements for corruption, fraud and illegality.  Its main interest was in making sure the Council’s own processes were sufficiently robust.

 

Members questioned the inaccuracies of the published performance indicators and were advised that this had now improved as the corporate centre had a greater involvement.  Other authorities had encountered similar problems.  The Quarterly Performance Management report had been discussed by the Executive in January 2004.

 

Members noted that the provision of potential liabilities under S117 of the Mental Health Act could be understated by as much as £400,000.  Any claims would be considered by Social Services.  The Ombudsman believed it should be made known that claims could be made and suggested that any repayments should include an interest rate of 8%.

 

The Panel asked if any of the recommendations made had not yet been dealt with satisfactorily.  The District Auditor advised members that follow up reports were done as part of the following years audit.  This year’s work on Partnerships was an outcome of follow up work.

 

There was some discussion as to the position of the S151 Officer within the Council.  It was noted that although the S151 Officer was not a Strategic Director he still attended, and was a fully integrated member of, the Directorate Management Team.

 

RESOLVED :

 

THAT the report be noted.

 

15.              INTERNAL AUDIT PROGRESS REPORT

 

(During the debate Mr P D Joyce declared a personal interest as a Director of an electrical firm)

 

The Chief Internal Auditor advised the Panel that the Office of the Deputy Prime Minister had revised the Accounts and Audit Regulations.  The Council would have to produce a Statement of Internal Control.  Every senior manager would have to sign a statement to say that the internal controls within their department were working.  The statements would then go forward for signature by the Chief Executive Officer and the Leader of the Council and would form the basis of the accounts.  If it was subsequently found that the signed statements were incorrect the Auditor would qualify the accounts which could affect the Council’s CPA score.

 

With regard to printing procurement the Panel were told that a report would be going to the Resources Select Committee in August 2004.  There was some discussion with regard to Members’ Allowances, it was believed that the system was not robust enough and contained certain ambiguities.  The system should be improved to include the verification and authorisation of any claims made.

 

Members questioned how often contracts were completed within the original tendered figure.  There were particular difficulties with school building work where the Headteacher often took the opportunity of having builders on site to undertake other works.  It was believed that the Council should be scrutinising why works were costing much more than the original price and the processes whereby approval was given to amending contract details.  With the partnering arrangements in place it was believed that there would be more input into the early stages of the contracting process.  Property Services produced an Annual report on issues relating to building works undertaken.  The Panel believed there was a need for Headteachers to attend procurement training.

 

The Chief Internal Auditor gave an update on the audit review of the Learning Centre and the ACCISS Replacement Project utilising the single page assurance report format.

 

RESOLVED :

 

THAT the audit work undertaken since the last meeting be noted together with the legislative changes affecting the Panel’s responsibilities.

 

 

 

 

 

 

 

 

 

CHAIRMAN