Audit And Risk Management Sub-committee - 18/02/2002

At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 18th February, 2002.

Present:-

COUNCILLORS

George REGAN

Fiona GRANT (substitute for Julie Sturrock)

John CORRIGAN

Willie SAWERS

Rod WALLACE (substitute for Bruce Mackie)

In attendance:-

Cathie Wyllie, Henderson Loggie

Peter Tait, Audit Scotland

Ian Black, Audit Scotland

Councillor REGAN, in the Chair.

Unless marked thus * all items stand delegated.

The Convener welcomed those present to the first meeting of the redesignated Audit and Risk Management Sub-Committee.

IEXTERNAL AUDIT - SUMMARY OF OUTPUTS

Cathie Wyllie referred to Report No. 143-2002 Summary of Audit Outputs 2000/2001 which had been circulated for information.

The Sub-Committee noted that this was the last summary to be submitted by Henderson Loggie as External Auditors.

II EXTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

There was submitted Report No. 144-2002 by the External Auditors in respect of the following:-

(a)Computer Services Review (01/14)

Cathie Wyllie stated that the report set out the findings from the review of the systems and controls in operation. Some issues had arisen and most had been addressed. To date, recommendation 12 of the Action Plan concerning software for primary schools had not been agreed.

(b) Dundee Contract Services :Major Contracts 2000/01 (01/15)

Cathie Wyllie reported that no major points had arisen. Most issues had been followed up and good practice points identified.

The report arising from Audit Scotland's study of internal audit in all Councils in Scotland was submitted to the Audit Sub-Committee on 24th September, 2001 (Article I refers) when in a national context Dundee City Council was ranked in the second highest quartile.

Cathie Wyllie advised that the Review built upon the national report and provided a detailed assessment of the Council's Internal Audit functions in terms of the six critical success factors and linked statements. The Review covered strengths, weaknesses, good practice points and an Action Plan addressing the specific issues identified.

(d) School Property Risk Management Follow Up (01/19)

Cathie Wyllie stated that this local audit reviewed the extent to which the City Council had implemented the recommendations contained in the "A Safer Place : Property Risk Management" document. The audit also explored the impact that specific measures adopted as a result of the Cullen Report have had in reducing property-related crime in schools. Strengths and weaknesses and points of good practice had been identified. Whilst the cost of vandalism was clearly a problem for the Council, in a national context it had forged ahead in developing innovative approaches to risk management.

In response to Councillor Grant, Graeme Mackenzie confirmed that the total cost of vandalism in Dundee Schools was 308,000 in 1999/2000.

The Sub-Committee noted the above information.

III EXTERNAL AUDITOR APPOINTMENT

In terms of Section 97 of the Local Government (Scotland) Act, 1973 the Accounts Commission had appointed Audit Scotland as the Council's external auditor for the financial year 2002/2003 to 2005/2006 inclusive. Audit Scotland had assigned Peter Tait, Chief Auditor (East Region) with overall responsibility for this audit.

The Convener welcomed Peter Tait and Ian Black of Audit Scotland who introduced themselves and outlined their respective responsibilities.

IV RISK MANAGEMENT

At a meeting of the Finance Committee on 10th November, 2001 it was agreed that the Audit Sub-Committee should be redesignated the Audit and Risk Management Sub-Committee (Article V refers). Graeme Mackenzie explained that this change formally addressed risk issues on a corporate basis.

(a) Implementation of the Employee Risk Management Statement

Graeme Mackenzie reported that he was currently discussing ways of distributing information with the Director of Public Relations. The next two departments to be reviewed were Social Work and Housing. Matters to be considered included the loss of computer systems, assessing the risk of large losses and identifying how departments would recover.

(b) Progress on Departmental Risk Profiling

Graeme Mackenzie stated that departments had the opportunity to take an overview and identify any weaknesses in their computer provisions. Systems were to be analysed with the appropriate information technology manager. The role of this Sub-Committee was to support risk management.

The Sub-Committee noted these developments.

GEORGE REGAN, Convener.

APPENDIX II

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