Audit And Risk Management Sub-committee - 24/09/2001

At a MEETING of the AUDIT SUB-COMMITTEE of the FINANCECOMMITTEE held at Dundee on 24th September, 2001.

 

Present:-

 

COUNCILLORS

 

George REGAN

 

 

Julie STURROCK

John CORRIGAN

 

 

 

In attendance:- Cathie Wyllie, Henderson Loggie, External Auditors

 

Councillor REGAN, Convener, in the Chair.

 

Unless marked thus * all items stand delegated.

 

I A JOB WORTH DOING: RAISING THE STANDARDOF INTERNAL AUDIT IN SCOTTISH COUNCILS

 

There was submitted Report No 837-2001 by the Director of Finance. The Chief Internal Auditor explained that the Accounts Commission had requested Audit Scotland to carry out a national study of internal audit in all Councils in Scotland. Across Scotland, Councils invest 9.3 million per year and employ 265 staff in the provision of internal audit services. The primary objectives of the study were to ascertain performance of the units which deliver internal audit services, and to provide benchmarking data to support continuous improvement. A copy of the full report was available to Members, if required.

 

As part of the study, the extent of compliance by the City Council with the CIPFA Code of Practice for Internal Audit in Local Government was assessed and this placed Dundee City Council's Internal Audit Service in Band 2 as a Council that generally complied with the Code. It was noted, however, that almost 40 per cent of the 32 Councils were designated to be in Bands 3 and 4 and deemed to be only partially complying or in general not complying with the Code. Common features of better performing Councils were the presence of an Audit Committee and the use of comprehensive risk assessment, both of which are in place within the City Council.

 

The Sub Committee congratulated the Finance Department staff on the outcome of the report.

 

II INTERNAL AUDIT - ABRIDGED MANAGEMENT LETTERS

 

There were submitted Report No 832-2001 by the Director of Finance reporting on the Internal Audit Abridged Reports/Management Letters in respect of the following:-

(a) Housing Department - Systems Review of Petty Cash (01/01)

 

(b) Finance Department - Systems Review of the Council's Asset Register (01/02)

 

(c) Various Departments - Systems Review of the 2000/2001 Accounts Commission Performance Information (01/03, 01/04 and 01/05)

 

(d) Dundee Contract Services - Year End Stocks 2000/2001 (01/06)

 

(e) Environmental & Consumer Protection Department - Year End Stocks 2000/2001 (01/07)

 

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 DUNDEE CITY COUNCIL'S GUIDANCE ON FUNDING EXTERNAL BODIES AND FOLLOWING THE PUBLICPOUND

 

There was submitted Report No 833-2001 by the Director of Finance. A Report submitted to the Finance Committee on 14th June 1999 (Article IV refers) detailed the requirements of the Accounts Commission/COSLA Code of Guidance for Funding External Bodies and Following the Public Pound and also sought Committee approval for the implementation of procedures to ensure that the requirements of the Code of Practice are met. This included a proposal to prepare and issue a detailed procedural guidance to Council Departments.

 

The Sub-Committee noted that the guidance had now been prepared and adopted by the Management Team as Council policy. (Report No 833-2001).

 

The Corporate Finance Manager also advised the Sub-Committee that a Finance Department Officer had been assigned with the remit to monitor such arrangements on an ongoing basis.

 

IV EXTERNAL AUDIT SUMMARY OF OUTPUTS

 

There was submitted Report No 834-2001 by the Director of Finance reporting on a summary of audit outputs for 2000/2001 prepared by the External Auditors.

 

The Sub-Committee noted the report.

 

V EXTERNAL AUDIT - ABRIDGED REPORT/MANAGEMENT LETTER

 

There was submitted Report No 835-2001 by the Director of Finance reporting on the Abridged Report/Management Letter in respect of the following:-

 

Payroll (01/13)

 

Many of the points raised in the Action Plan had already been implemented. (Report No 835-2001).

 

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 items of business be considered in private on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 14 of Schedule 7(A) of the Act.

 

VI SPECIFIC INVESTIGATIONS - UPDATE

 

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

 

VII EXTERNAL AUDIT MANAGEMENT LETTER

 

A copy of the Management Letter had been circulated for information.

 

The Sub-Committee noted that many of the recommendations had been agreed and were being implemented. Outstanding issues will be considered in the future from a risk management perspective.

 

 

 

GEORGE REGAN Convener.