PURPOSE

1. The purpose of this report is to consider the Annual Audit and Inspection Letter from the Audit Commission for 2005/2006 and to agree the Council’s response in the form of an action plan.

2. The Commission’s District Auditor, Stephen Taylor and the Relationship Manager, Alastair Rankine, will be available at the meeting to present the Letter and answer Members’ questions.

BACKGROUND

3. The Annual Audit and Inspection Letter provides a summary of the Audit Commission’s assessment of the Council and its performance. It draws upon the full range of assessments and inspections that the Council and its services have received over the last year, including the CPA corporate assessment, the Joint Area Review of Children’s Services, and those in relation to Adult Social Services, Housing Benefits and the Fire Service. In addition it draws upon the findings of the ‘Use of Resources’ assessment.

4. The letter therefore provides a particularly useful ‘reality check’ of how the Council is progressing. Of particular interest is the assessment of the Council’s ‘direction of travel’ which the letter announces. For the first time the Council is assessed as ‘improving well’ rather than merely ‘improving adequately’. This represents a significant recognition of the Council’s ambition and determination to change and that the changes are well underway to achieve improvement.

5. The Letter does however make a number of recommendations which require robust action plans in response. These actions are set out in Appendix B.

STRATEGIC CONTEXT

6. The Annual Audit and Inspection Letter is a key report giving the Council an independent view by the Audit Commission of the Council’s performance and its direction of travel. It should be seen as an invaluable guide to whether the Council is delivering its improvement agenda.

CONSULTATION

7. The Council’s Directors have been consulted on the content of the letter and have been given the opportunity to clarify any issues with the District Auditor.

FINANCIAL IMPLICATIONS

8. There are no direct financial implications arising from the Letter itself, but there are implications attached to the actions planned to address its recommendations.

LEGAL IMPLICATIONS

9. The Letter is prepared by the District Auditor in order to meet the requirements of the Statement of Responsibilities of Auditors and Audit Bodies, as issued by the Audit Commission.

OPTIONS

10.

i. To note the Annual Audit and Inspection Letter and to approve the action plan in response to the recommendations of the Letter.

ii. Not to approve the action plan.

RECOMMENDATIONS

11. Option i. To note the Annual Audit and Inspection Letter and to approve the action plan in response to the recommendations of the Letter.

BACKGROUND PAPERS

Comprehensive Performance Assessment (CPA) 2006

Joint Area Review 2006

Use of Resources Assessment 2006

Fire Service Assessment 2005

Other Service Assessments referred to in Table 3 of the Letter

Statement of Responsibilities of Auditors and Audit Bodies (Audit Commission)

APPENDICES

Appendix A -The Annual Audit and Inspection Letter

Appendix B - Action Plan to address recommendations

Contact Point : Bob Streets, Programme Lead for Compliance, ( 01983 823622, email: [email protected]

JOE DUCKWORTH	COUNCILLOR ANDY SUTTON
Chief Executive	Leader of the Council