Agenda and minutes

To confirm the minutes of the last meeting of the Committee held on 19 June 2006 (attached).

            RESOLVED:

That the minutes of the meeting of the Committee held on 19 June 2006 be taken as read and signed by the Chairman as a correct record.

(Head of Research and Democratic Services) To declare interests in any item on this agenda.

No declarations of interest were made pursuant to the Council's Code of Conduct.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

It was reported that there was no urgent business for consideration at the meeting.

The Management Board has requested that this Committee consider and note the minutes of the Council’s recently established Corporate Governance Group. The minutes of the most recent meeting are attached.

The Committee considered the minutes of the meeting of the Corporate Governance Group held on 7 June 2006.

            RESOLVED:

            That the issues considered by the Corporate Governance Group be noted.

(Chief Internal Auditor) To consider the attached report on work undertaken by Internal Audit between April and June 2006 and the proposed work plan for July – September 2006.

The Committee considered a report which summarised the work undertaken by Internal Audit between April and June 2006.  The report also contained the work plan for the second quarter of the current financial year and a status report on previous audit recommendations.

Members noted that sickness in the Unit during the first quarter of 2006/07 amounted to 35 days, the vast majority of which related to the certificated long-term sickness of one member of the team.  Sickness continued to be monitored and managed in accordance with the Council's Management of Absence policy.

During the quarter, audit reports had been issued in respect of the following:

(a)        Safer Communities Team Building Day (Investigation);

(b)        Stores Stocktake and Report;

(c)            Norway House;

(d)            Planning Cash Receipting;

(e)        BVPI Verification;

(f)         Car Parking Contract;

(g)        IT Procurement;

(h)        Benefit Fraud Investigation;

(i)            Establishment List;

(j)         Use of Consultants (draft report);

(k)        Cash Receipting (draft report);

(l)         Sundry Debtors (follow up);

(m)      OHMS Housing Management System (follow up).

In addition, the Audit Team had also provided support to management on a number of corporate issues and had performed a range of tasks including standing membership of Project Teams.  The topic areas included the production of the Council's draft Statutory Statement on Internal Control, and Membership of the Officer Use of Resources and Value for Money Working Groups.  There had also been close involvement in a range of control issues surrounding the transfer of the Waste Management Contract, including the verification of the staff TUPE list.  The Unit's annual report for 2005/06 had been prepared, and a national benchmarking return had been submitted to assist in the production of comparative data about audit activity and performance across the country.

The Chief Internal Auditor advised that members had indicated that they would be looking for an improvement this year from the "satisfactory" assurance which he had given in relation to the Council's control systems in 2005/06, particularly as this assessment was a factor in the Council's annual Statement on Internal Control.  The Committee noted that the main conclusions from the systems audits undertaken in the first quarter of 2006/07 indicated that systems were generally operating satisfactorily in those areas reviewed, and that no fundamental errors or control issues had been identified.  However, an investigation had highlighted a number of compliance and supervisory issues, to be addressed by the service area concerned.  A number of recommendations for process improvement across services had been identified, including controls over corporate debt recovery, cash handling and system reconciliations.  These had been taken up with the service areas concerned.

The Chief Internal Auditor and the Head of Research and Democratic Services answered members' questions in relation to the investigation into the Safer Communities Team Building Day in September 2005.  Members noted the managerial changes which had been taken by the Head of Research and Democratic Services as a result of the investigation including a request to the Head of Human Resources and Performance Management for the production of guidance in relation  ...  view the full minutes text for item 16.

(Head of Finance) To consider the attached report.

The Committee considered a Risk Management Strategy and Policy Statement identifying corporate and operational risks; assessing the risks for likelihood and impact; identifying mitigating control; and allocating responsibility for the mitigating controls.  Members were advised that a draft of the Policy Statement had been presented to the Council's Risk Management Group and the feedback from this Group and advice given by Zurich Municipal, the Council's insurers and providers of risk management training, had contributed to the Policy Statement before members.  Zurich Municipal and AON (the Council's Insurance Brokers) had also contributed to the Risk Management Strategy.

The Committee also received the terms of reference of the Risk Management Group.

            RECOMMENDED:

(1)            That the Risk Management Strategy and Policy Statement be adopted;  and

(2)            That the terms of reference of the Risk Management Group be noted.

(Head of Finance) To consider the attached report.

The Head of Finance reported that the Cabinet at its meeting on 7 June 2006 had resolved that the Corporate Risk Register produced by Zurich Municipal be adopted.  The Cabinet had also resolved that Action Plans be submitted to this Committee for approval and that twice a year the Corporate Risk Register be submitted to the Committee for review.

The Committee noted the process undertaken to produce Action Plans.  The Head of Finance reported that the Action Plans set out for each risk:

(a)        details of existing controls/actions to address risk;

(b)            assessment of the effectiveness of the controls/actions;

(c)        the required further management action;

(d)        who was responsible for the actions;

(e)        what the critical success factors and measures were;  and

(f)         the frequency of review and any key dates.

The Committee noted that in addition to the reporting requirements already agreed by members, the officer Corporate Governance Group had suggested the need for Action Plans to be kept up-to-date through more regular reviews.  Consequently, once the Action Plans had been approved it was proposed that they would be discussed on a monthly basis at Senior Management Team and Management Board would have a standing item on their weekly agenda for Risk Management.

Members noted that the first six monthly update of the Corporate Risk Register would be presented to the next meeting of the Committee on 25 September 2006 and that at that meeting members would be asked to confirm a re-prioritisation of the risks which would include any new risks that had been identified.

The Committee requested that steps be taken to provide members with a more regular input into the process.

            RESOLVED:

(1)            That the Action Plans to accompany the Corporate Risk Register be noted;  and

(2)            That officers report to a future meeting of this Committee on proposals for increased involvement of members in the process.

CHAIRMAN