Agenda item

Ian Young, Director of Governance, Finance and Public Services, informed the Committee that Abigail Leech, Head of Corporate Finance, had been appointed as the Council's Interim S.151 officer for the purposes of approving the Council's Statement of Accounts.  This appointment was necessary due to interim Director of Financial Resources and S.151 officer being off work due to ill health.  It was also reported that the Chief Executive had subsequently appointed Neil Kissock as the acting Director of Financial Resources pending the return of the current post holder, and subject to constitutional requirements.

Mr Young raised the issue of training for members of the Committee.  It was agreed that a training session on the role, function and key aspects of internal and external audit, as well as risk management would be held on the morning of the next Committee meeting to be held on 25 January 2016.  A training plan could also be considered as part of the wider member development training programme.

Mr Young then presented an update in relation to the Annual Governance Statement.  The report identified a number of key issues and themes that had emerged during 2014/15 and which would continue to feature in 2015/16. The report also provided the Committee with an update in relation to those issues which were also relevant to the External Auditor's Value for Money (VfM) conclusion contained within the Audit Findings Report elsewhere on the agenda.

It was noted that the Management Team had agreed actions to support the development and strengthening of the internal control framework including the production of a Risk and Opportunity Register and a process that would involve quarterly reports being presented to Management Team, the Cabinet Committee on Performance Improvement and the Audit and Governance Committee.

It was also noted that a revised Internal Audit Plan for 2015/16 and the Audit Plan for 2016/17 would be presented to the next meeting of the Committee in January 2016. The updated plan would identify areas where Internal Audit would work collaboratively with Heads of Service to identify risk and controls. 

The Committee raised a number of questions around the Council's governance arrangements and in particular the Internal Audit Service's inability to provide an overall opinion.  Concerns were expressed about the Council's ongoing budget pressures and the effects which these might have on the future size, structure and work of the Internal Audit Service.  Officers confirmed that the proposed model for the Internal Audit Service would be considered by Management Team in the context of the budget forecasts to 2021 and the Council's decisions on service delivery which would be published for consultation in November 2015 but it was confirmed that there was no proposal to out-source the Internal Audit service.

In response to concerns about the performance of the Council's Procurement Service, officers advised that the actions taken by Management Team and Cabinet had improved performance and transparency around the procurement function since the return of the Service from One Connect Limited.  The External Auditor had acknowledged the improvements and was satisfied with the direction of travel in this area.  Officers agreed to present a report on the Procurement Service and function to the next meeting of the Committee in January 2016.  It was agreed that officers would inform Members what the current staffing vacancy level was in the Procurement Service.

Comments were raised about the forecast overspend in 2015/16.  Members were reminded that this matter had been highlighted in a report to Cabinet on 12 August 2015 and the issue would be further addressed as part of the budget report to be presented to Cabinet in November.

Resolved: 

(i)  That the report including the proposals in relation to the approval of a revised Internal Audit Plan for the remainder of 2015/16 and the Internal Audit Plan for 2016/17 be noted.

(ii)  That the Committee is concerned about the possibility of the Internal Audit Service not being able to carry out and fulfil its functions due to the Council's budgetary constraints.

(iii)  That the proposed training session for members of the Committee on 25 January 2016 be noted.