Audit And Risk Management Sub-committee - 29/09/2003
At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on 29thSeptember 2003.
Present:-
Bailie Neil I C POWRIE
Councillors
George REGAN
Fiona GRANT (Substitute for Bailie Charles Farquhar)
Joe MORROW
Nigel DON
Joe FITZPATRICK
In Attendance:-
Peter TAIT, Audit Scotland.
Councillor REGAN, Convener, in the Chair.
Unless marked thus * all items stand delegated.
I OVERVIEW OF THE ROLES OF AUDIT COMMITTEES, EXTERNAL AUDIT AND INTERNAL AUDIT WITHINLOCAL AUTHORITIES
There was submitted Agenda Note AN438-2003 whereby the undernoted documents were submitted to members of the Audit and Risk Management Sub-Committee for information:-
(a) The Role of Audit Committees in Local Government
(b)Code of Audit Practice and Statement of Responsibilities of Auditors and of Audited Bodies
(c)Internal Audit Charter
The Chief Internal Auditor explained that the documents would provide guidance to members who were newly appointed to the Audit and Risk Management Sub-Committee. She also pointed out that a new Code of Practice for Internal Audit in Local Government had been published and copies were available upon request. In addition, CIPFA in Scotland had just drafted a guidance note on Audit Committee Principles which was currently out to consultation. Once this publication was finalised, it was the intention to use it as a basis to develop the role of the Council's Sub-Committee.
Peter Tait, Chief Auditor, Audit Scotland introduced himself and spoke of his statutory role in respect of the City Council. He pointed out that the External Auditors were appointed by the Accounts Commission.
II INTERNAL AUDIT PLAN 2003/04
There was submitted Report No 642-2003 by the Chief Internal Auditor detailing the Internal Audit Plan for the 2003/04 financial year as set out in Appendix A of the report.
Reference was made to the meeting of the Personnel and Management Services Committee of 18 August 2003 when two additional posts of Internal Auditor had been approved (Article IV refers).
The Sub-Committee noted the information detailed in the report.
III INTERNAL AUDIT REPORTS
There was submitted Report No 643-2003 by the Chief Internal Auditor providing the Sub-Committee with a summary of the Internal Audit reports finalised since the last Sub-Committee meeting on 3rd February 2003. The Chief Internal Auditor pointed out that the report was a summary and copies of the full reports were available to members upon request.
The Sub-Committee noted the information contained within the report.
IV OVERVIEW OF RISK MANAGEMENT ACTIVITY IN DUNDEE CITY COUNCIL
There was submitted Report No 644-2003 by the Principal Insurance and Risk Management Officer providing an overview of Risk Management activity in Dundee City Council for the benefit, principally, of new members of the Audit and Risk Management Sub-Committee.
Reference was made to the Corporate Policy on Risk Management approved by the Finance Committee at its meeting on 10th December 2001 (Article VI refers). The report also detailed the scope of work activity within the Insurance and Risk Management Section of the Finance Department.
The Sub-Committee approved the following recommendations:-
(a) That the contents of the report be noted
(b)That the Council's Risk Manager should bring forward a formal strategic Risk Management Plan to the next meeting of the Audit and Risk Management Sub-Committee.
V COST OF MALICIOUS DAMAGE TO NON-HOUSING PROPERTY
There was submitted Report No 645-2003 by the Principal Insurance and Risk Management Officer pointing out that the annual level of malicious damage to non-housing property in Dundee had historically incurred an average self-insured cost of approximately 500,000. The report outlined progress towards reducing this needless drain on resources.
The Report confirmed that during the latter part of the 2001/2002 financial year and through the course of 2002/2003, a range of risk management measures had been taken to try to combat malicious damage. The net effect of these initiatives had seen the cost to the Council of malicious damage in non-housing properties fall from 480,000 in 2001/2002 to 350,000 in 2002/2003.
The Sub-Committee approved the following recommendations:-
(a)To note the reduction of 130,000 in the annual average cost of malicious damage to non-housing property.
(b)To authorise the Council's Risk Manager to continue with various initiatives to reduce and control the level of malicious damage to public property.
VI PROPOSED TIMETABLE OF MEETINGS FOR 2004
There was submitted Report No 646-2003 by the Director of Finance providing the Sub-Committee with a proposed schedule of meetings for the 2004 calendar year.
The Sub-Committee agreed the proposed programme of meetings as follows:-
Monday 19th January 2004
Monday 17th May 2004
Monday 30th September 2004
All meetings to commence at 9.30 am.
GEORGE REGAN, Convener