Audit And Risk Management Sub-committee - 19/06/2001

At a MEETING of the AUDIT SUB-COMMITTEE of the FINANCECOMMITTEE held at Dundee on 19th June, 2001.

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 INTERNAL AUDIT ANNUAL PLAN 2001/2002

There was submitted Report No 824-2001 by the Director of Finance reporting on the planned internal audit work for the current financial year. The plan was drafted on the basis of the systems and areas included in the Internal Audit Strategic Plan 2002/2005 which was tabled at the Audit Sub-Committee on 30th May, 2000.

The Sub-Committee noted the contents of the annual plan.

II INTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

There was submitted Report No 825-2001 by the Director of Finance reporting on the Internal Audit Abridged Reports/Management Letters in respect of the following:-

(a) Dundee Contract Services - Review of Purchase Ordering and Creditor Payment Systems (00/17)

(b) Leisure and Parks - Interim Stock Checks, Caird Park (00/18)

(c) Social Work - Review of Administration Procedures at a Social Work Unit for Adult Care with Learning Difficulties (00/19)

(d) Information Technology - Review of Inventory Records for Computer Equipment (00/20)

(e) Personnel and Management Services - Systems Review of Photocopying Services (00/21)

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.

III OVERVIEW OF THE 1999/2000 LOCAL AUTHORITY AUDITS

There was submitted Report No 826-2001 by the Director of Finance. The Overview Report of the Local Authority Audits is prepared by Audit Scotland on an annual basis. The most recent publication contained the Controller of Audits Report on the 1999/2000 Local Authority Audits and the Accounts Commissions findings which were based on the Controller's report.

For information the Accounts Commissions findings and the Executive Summary of the Controller of Audit's Report had been extracted from the Overview Report.

The Director of Finance pointed out that all 32 Scottish Councils had submitted their 1999/2000 accounts for audit by the due date which was the first time since the deadline had been brought forward to 30th June. This represented a commendable achievement by Councils which had been brought about through the full co-operation of staff and the External Auditors. It was also pleasing to note that the 1999/2000 accounts were unqualified. The Audit Committee concept had been endorsed by the Accounts Commission as it is viewed to be an integral component of good Corporate Governance. The Director of Finance noted that only a handful of Councils had an Audit Committee in Scotland.

The Convener expressed thanks to the Finance Department for its good work in achieving these targets.

IV EXTERNAL AUDIT SUMMARY OF AUDIT OUTPUTS

There was submitted Report No 827-2001 by the Director of Finance providing a summary of audit outputs for 1999/2000 and 2000/2001 prepared by the External Auditors.

The Sub-Committee noted the contents of the Report

V EXTERNAL AUDIT - ABRIDGED REPORTS/MANAGEMENT LETTERS

There were submitted Report No 828-2001 by the Director of Finance reporting on the Abridged Reports/Management Letters in respect of the following:-

(a) 1999/2000 Managing Rent Arrears - Housing Department (00/07) (A Joint Value for Money Study by the Accounts Commission and Scottish Homes)

(b) 1999/2000 Quinquennial Revaluation (00/08)

(c) 1999/2000 Non Domestic Rates (00/09)

(d) 1999/2000 Council Tax (00/10)

(e) 2000/2001 Loans Fund (01/02)

(f) 2000/2001 Performance Management and Planning (01/09)

(g) 2000/2001 Superannuation Investments (01/11)

Many of the points raised in the various action plans had already been implemented.

The Sub-Committee noted the position.

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 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.

VI EXTERNAL AUDIT MANAGEMENT LETTER

Copy correspondence had been circulated for information. The Sub-Committee noted and approved the Director of Finance's response in respect of this Management Letter.

Chris Beaton recommended the recent CIPFA publication on "Corporate Governance in Local Government - A Keystone for Community Governance - Framework and Guidance Note" as a useful guide to the Council in the implementation of Corporate Government Principles and Practices.

GEORGE REGAN Convener.