At a MEETING of the AUDIT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 30th May, 2000.

At a MEETING of the AUDIT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 30th May, 2000.

Present:-

COUNCILLORS

In attendance:- Chris Beaton and Cathie Wyllie, Henderson Loggie, External Auditors.

Councillor REGAN, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I PRESENTATION

I PRESENTATION

A short presentation outlining the rationale on which the Strategic and Annual Internal Audit Plans had been drafted was made by the Chief Internal Auditor.

II INTERNAL AUDIT STRATEGIC PLAN 2000/2005

II INTERNAL AUDIT STRATEGIC PLAN 2000/2005

A copy of the Internal Audit Strategic Plan had been circulated for information.

Chris Beaton of Henderson Loggie, the External Auditors, expressed satisfaction at the overall approach in preparing the five year Plan. The work being undertaken was moving into new, wider areas which were of legitimate interest to the External Auditors.

III INTERNAL AUDIT ANNUAL PLAN 2000/2001

III INTERNAL AUDIT ANNUAL PLAN 2000/2001

A copy of the planned internal audit work for the current financial year had been circulated for information.

The Director of Finance stated that additional resources will be made available, if necessary, to ensure that the audit work can be carried out.

IV INTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

IV INTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

There were submitted Internal Audit Abridged Reports/Management Letters in respect of the following:-

(a) Various Departments: Review of Purchasing, Ordering and Creditors Payment Systems (99/6, 99/10, 99/11 and 99/16);

(b) Economic Development Department: Dundee Airport - Systems Review (99/7);

(c) Support Services Department: City Chambers - Systems Review (99/9);

(d) Finance Department: Review of the 1998/99 Weekly Benefits Savings Subsidy Return (99/15);

(e) Leisure and Parks Department: Review of Wages and Salaries Payment Procedures (99/17).

The Chief Internal Auditor stated that this item was to keep the Sub-Committee informed of the main audit issues and management responses since the last Audit Sub-Committee meeting.

The Sub-Committee noted the position.

V SHORTEN THE ODDS - A GUIDE TO UNDERSTANDING AND MANAGING RISK

V SHORTEN THE ODDS - A GUIDE TO UNDERSTANDING AND MANAGING RISK

The above paper, which is aimed at Managers and Elected Members, was published by the Accounts Commission for Scotland in July 1999. A summary had been circulated for information. The principal aim of this summary is to provide a high level overview of the importance of understanding and managing work as a Council and to emphasise the key areas within this process.

The Director of Finance stressed the need to work in a co-ordinated fashion to reduce the risk element. Chris Beaton pointed out that Elected Members had certain responsibilities. Councillor Sturrock commented that Elected Members could not be expected to act as experts - they needed to seek out best advice from Officers.

VI PERFORMANCE MANAGEMENT AND PLANNING (PMP)

VI PERFORMANCE MANAGEMENT AND PLANNING (PMP)

(a) Best Value: Performance Management and Planning Audit

There was submitted Report No 296-2000 by the Chief Executive introducing the first overall report by the External Auditors, Henderson Loggie, on Best Value using the Performance Management and Planning Audit template issued by Audit Scotland.

The Sub-Committee noted the contents of the report and the auditor's report contained in the Appendix.

(b) Performance Management and Planning

There was submitted External Audit Report No 00/05 by Henderson Loggie, External Auditors. Chris Beaton explained that as part of the audit the External Auditors had reviewed the Council's progress in developing its PMP framework at service level. Three services had been selected for audit - Dundee Contract Services, Social Work and Neighbourhood Resources and Development: Libraries and Community Information. Further PMP audits will be conducted over the course of the next four years covering all major service areas.

Many initiatives had been developed and piloted as part of the services' approach to service and best value reviews and general business improvement processes. There had been a good lead given to services from Corporate Planning in terms of guidance on Best Value and service reviews. A number of areas for development will require corporate involvement and influence, these include determining the role of Elected Members in consultation and service reviews.

The Chief Executive pointed out that the Elected Members deliver the Council policy and his task was to ensure that the Council delivered services. Chief Officers brought problems/concerns to Elected Members in order to change Council policy if necessary. The Council had a duty only to implement statutory provisions. The Accounts Commission Guidance stressed that both internal and external auditors have a role to play. Chris Beaton pointed out that the Accounts Commission Guidance covered all Scotland and it was therefore able to bring good practices to all local authorities to be applied as appropriate.

VII EXTERNAL AUDIT PLAN 1999/2000

VII EXTERNAL AUDIT PLAN 1999/2000

There was submitted Report No 00/01 by Henderson Loggie, External Auditors. Cathie Wyllie, Senior Manager, stated that the external and internal auditors consulted regularly in order to avoid duplication of work. Most emphasis was on systems and ensuring controls were in place. Work was progressing well this year and should finish on time.

VIII EXTERNAL AUDIT - SUMMARY OF AUDIT OUTPUTS

VIII EXTERNAL AUDIT - SUMMARY OF AUDIT OUTPUTS

Cathie Wyllie referred to the summary of Audit outputs between September 1999 and April 2000 which had been circulated for information. Some outputs were still in draft.

IX EXTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

IX EXTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

There were submitted Abridged Reports/Management Letters in respect of the following:-

(a) Abridged Management Letter on Council Tax Benefits System (1997/98)

Cathie Wyllie stated that the 1998/99 weaknesses had been addressed. Many of the points raised in the Action Plan had been implemented.

The Director of Finance pointed out that a new computerised filing system for Revenues will enhance efficiency.

(b) Abridged Interim Report (VFM) - Refuse Collection Benchmarking 1998/99

The VFM study "Benchmarking: Refuse Collection" was carried out as part of the 1998/99 audit work (Audit Report No 99/6). Now that the Accounts Commission Guidelines had been issued, an early meeting will be held with the Director of Environmental and Consumer Protection to discuss further progress on VFM.

The Sub-Committee resolved under Section 50(A) of the Local Government (Scotland) Act, 1973 that the public and press be excluded from the meeting in order that the undernoted items of business may be considered in private on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 6 and 14 of Schedule 7(A) of the Act.

XI SPECIFIC INVESTIGATIONS - UPDATE

XI SPECIFIC INVESTIGATIONS - UPDATE

The Sub-Committee considered the report into investigations and noted the remedial actions taken as a result of these investigations.

Cathie Wyllie pointed out that certain information was passed to the Accounts Commission in order to share information with all Councils in Scotland.

XII EXTERNALAUDIT MANAGEMENT LETTER

XII EXTERNALAUDIT MANAGEMENT LETTER

Copy correspondence had been circulated for information.

The Sub-Committee noted and agreed with the Director of Finance's response in respect of the 1999/2000 Members' Allowances and Expenses.