Audit And Risk Management Sub-committee - 11/12/2000

At a MEETING of the AUDIT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 11th December, 2000.

Present:-

Councillors:-

George Regan, Julie Sturrock, John Letford (substitute for Councillor Mervyn Rolfe), John orrigan and Willie Sawers

In attendance:-

Chris Beaton and Margaret Richardson, Henderson Loggie, External Auditors

Councillor Regan, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I EXTERNAL PLAN 2000/2001

A copy of the External Auditors annual plan had been circulated for information.

Chris Beaton of Henderson Loggie briefly outlined the basis used in drafting the plan which had been devised from the five year plan drawn up in 1996/97. The Director of Finance was consulted on the overall approach.

The time allocated to 2000/01 work is 722 days. The draft accounts should be ready by 30th June and the audit completed by 30th September, 2001.

Chris Beaton referred to the Statement of Responsibilities of Auditors and of Audited Bodies pointing out that the audited body is accountable to the public for the stewardship of funds under its control. It is the auditors responsibility to form an independent and objective view on the statement and accounts and on the arrangements made by the audited body.

Members noted that the main day-to-day contact Manager was now Margaret Richardson who replaced Cathie Wyllie who had been promoted to Director of Public Sector Services.

II EXTERNAL AUDIT SUMMARY OF AUDIT OUTPUTS

Chris Beaton referred to the summary of Audit Outputs to November 2000 which had been circulated for information.

III EXTERNAL AUDIT - ABRIDGED MANAGEMENT LETTERS

There were submitted Abridged Reports/Management Letters in respect of the following payroll items:-

(a) 1999/2000 - ISIS Payroll - Education Department (00/06)

Chris Beaton stated that payroll was a significant cost centre for the City Council covering many departments. He noted that in general terms the Education Department ISIS Payroll System was working satisfactorily. Recommendations for improvement were discussed with management, an action plan agreed and implemented with a follow up at a later date.

(b) 1998/1999 - ISIS Payroll - Central Processing (99/05)

Chris Beaton noted that in general terms the Central Processing ISIS Payroll System was working satisfactorily. Recommendations for improvement are followed up as in 3(a) above.

IV INTERNAL AUDIT - ABRIDGED MANAGEMENT LETTERS

There was submitted Internal Audit Abridged Management Letters in respect of the following:-

(a) Various Departments: Review of Purchase Ordering and Creditor Payment Systems (99/13, 99/14, 99/23, 99/27, 99/29, 00/01, 00/13 and 00/14).

In response to Councillor Sturrock, the Corporate Finance manager advised that employees are being encouraged to fully utilise the Powersolve Purchase Ordering System.

(b) Various Departments: Systems Review of the 1999/2000 Accounts Commission Performance Information (00/05, 00/06, 00/07, 00/08, 00/11, 00/12 and 00/14).

(d) Housing: Systems Review of Garage Lock-ups, Garage Sites and Parking Bays (99/21).

(e) Leisure and Parks: Interim Stock Checks 1999/2000 (99/24 and 99/25).

(f) Dundee Contract Services: Financial Regulations Section 14 (99/26).

(g) Dundee Contract Services: Year End Stocks 1999/2000 (00/04).

(h) Economic Development: Review of Debtors and the Debt Recovery Systems (00/09).

V QUICK GUIDE TO THE AUDITOR GENERAL, ACCOUNTS COMMISSION AND AUDIT SCOTLAND

A copy of the quick guide published in June 2000 reflecting recent changes within the above areas was circulated for information. Chris Beaton commented that the Accounts Commission had recently marked its twenty fifth anniversary.

VI TIMETABLE FOR FUTURE MEETINGS

Further to the original report which established the Audit Sub-Committee, (Report No. 525/1998 refers) the proposed frequency of meetings was four times per year. In light of experience it was considered preferable for this to be revised to three times per year to reflect the audit workload. It is proposed that approval be given for this to be amended and a programme of meetings for the next financial year be drawn up with the scheduled meetings being held in mid May, mid September and mid January.

The Sub-Committee approved accordingly.

VII CIPFA AUDIT PANEL

The CIPFA Audit Panel was responsible for enhancing the disciplines of external and internal audit across the public services and also considers audit's role in combating fraud and corruption and audit of corporate governments. The Chief Internal Auditor of Dundee City Council had been asked to join the Panel to provide a Scottish perspective to their work which includes raising the profile of audit, promoting professional standards and encouraging the delivery of quality audit services.

The Committee noted this invitation and congratulated the Chief Internal Auditor on her appointment.

VIII EXTERNAL AUDIT APPOINTMENTS: FINANCIAL YEARS 2001/02 TO 2005/06

For the Sub-Committee's information, Chris Beaton reported that Henderson Loggie's appointment as External Auditor will terminate on completion of the 2000/01 audit.

Audit Scotland, on behalf of the Accounts Commission in the case of local authorities, has just commenced the procurement exercise that will lead to the appointment of external auditors for the financial years 2001/02 to 2005/06.

George REGAN, Convener

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