Audit And Risk Management Sub-committee - 10/06/2002
At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 10th June2002.
Present:-
Councillor George REGAN
Councillor Julia M STURROCK
Councillor Joe FITZPATRICK (Substitute for John Corrigan).
In Attendance:
John PHILP, Audit Scotland
Iain BLACK, Audit Scotland
David BERRIE, Audit Scotland.
Councillor REGAN, Convener, in the Chair.
Unless marked thus * all items stand delegated.
I EXTERNAL AUDIT PLAN 2001/02
There was submitted Report No. 520-2002 by the External Auditors. Peter Tait had been appointed Chief Auditor of the City Council for the five year period up to 2005/06. The core audit team would also include John Philp, Iain Black and David Berrie who were in attendance. The report included sections on background, audit resources, objectives, testing and reporting together with Audit Plans. It was noted that the audit year was from 1 November to 31 October.
The Sub-Committee noted the contents of the Plan.
II EXTERNAL AUDIT - ABRIDGED REPORTS
There was submitted Report No. 521-2002 by the External Auditors covering the following:-
(a) ICT REVIEW
The Council was well serviced with good focus on customer service strategies for e.governance etc in place. The recommendations were to be addressed.
(b) FOLLOW-UP REVIEW OF ACTION PLANS
Updates were provided on recommendations still to be actioned on previous reviews of the Loan Funds, Members Services, Superannuation Investments and Housing Income Collections.
The Sub-Committee noted that some Superannuation recommendations were still to be fully implemented.
(c) RATEABLE VALUES
The 2001/02 comparison of Rateable Values on the Valuation Roll had been found to be satisfactory.
(d) FRAUD AND CORRUPTION
The Council was found to have a satisfactory series of guidelines aimed at the prevention and detection of fraud. Further to the one recommendation it was agreed that the Anti-Fraud and Corruption Strategy would be extended to cover arrangements for fraud and financial irregularities in other major financial systems and submitted to the September 2002 Policy and Resources Committee.
III OVERVIEW OF THE 2000/01 LOCAL AUTHORITY AUDITS
There was submitted Report No. 522-2002 by the Accounts Commission which contained no specific reference to the City Council. One of the areas of emphasis was corporate governance and it was viewed that Audit Committees, such as the one in place in Dundee City Council, provide a forum for Councillors to focus on the important role of audit scrutiny and performance monitoring.
IV ACCOUNTS COMMISSION FOR STATUTORY REPORT 2001/2004 ON THE SCOTTISH BORDERS COUNCIL,EDUCATION DEPARTMENT OVERSPEND
There was submitted Agenda Note AN107-2002 which stated that the above report was issued in October 2001 and considered the potential implications for the stewardship of public funds and levels of local taxation as a result of the 3.9m overspend by the Education Department of Scottish Borders Council in 2000/01.
Whilst this report related to the financial management of the Education Services in another authority, consideration would be given to the findings which were viewed to be the root cause of the problem in a local context and if perceived that any of the issues are pertinent these would be taken into consideration as part of the Internal Audit Review.
The Chief Executive stated that the City Council did not have similar problems with its Education Department's budget.
V INTERNAL AUDIT PLAN 2002/03
There was submitted Report No. 523-2002 by the Chief Internal Auditor covering the Internal Audit Plan for the year to 31st March 2003. This covered the budgeted days available and the specific areas to be reviewed.
The Sub-Committee noted the report.
VI RISK PROFILING - USE OF COMPUTERS
There was submitted Agenda Note AN112-2002 relating to Departments' vulnerability to computer failure. The Principal Insurance and Risk Management Officer reported that Departments were to identify their critical systems, prioritise the effects of disruption to systems and advise how they would react to loss of systems.
The Sub-Committee noted the progress being made.
VII VANDALISM WORKING GROUP
There was submitted Report No. 525-2002 by the Principal Insurance and Risk Management Manager stating that the Group had met twice to date and undertaken the preparatory work to develop and implement a formal anti-vandalism strategy for the Council. The aim was to reduce the cost of vandalism for all Departments which cost currently in excess of 1m per annum.
The Sub-Committee approved the initiatives as detailed in the report.
Councillor Sturrock referred to increased security planning. For example, furniture could be made from recycled plastic that was vandal-proof. She would like to see the introduction and monitoring of such initiatives. Particular "hot spots" to be closely monitored by Tayside Police - in these areas a small number of people were re-offending. There was a need to follow-up incidents with the Police and the Procurator Fiscal.
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 item of business be considered in private on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 14 of Schedule 7(A) of the Act.
VIII SPECIFIC INVESTIGATION - UPDATE
The Sub-Committee considered Report No. 526-2002 by the Chief Internal Auditor into an investigation and noted the remedial action being taken as a result of this investigation.
GEORGE REGAN, Convener.