Audit and Risk Management Committee Minutes

Date:
Thursday 28 January 2016
Time:
2.00pm
Place:
Council Offices, English Street, Dumfries

Attendance Details

Members:
Gillian Dykes (Chairman) - Mid and Upper Nithsdale
Patsy Gilroy (Vice-Chairman) - Dee
Graham Bell - North West Dumfries
Archie Dryburgh - Annandale East and Eskdale
David J McKie - North West Dumfries
Willie Scobie - Stranraer and North Rhins
Ted Thompson - Lochar
Andrew S Wood - Mid and Upper Nithsdale
Officials:
Rhona Lewis - Head of Legal and Democratic Services
Lillian Cringles - Head of Social Work/Chief Social Work
Kevin Geraghty - Chief Internal Auditor
Lucy Irons-Young - Governance Officer
Martin Ogilvie - Senior Manager, Business Management
Sue White - Principal Health and Safety Adviser
In attendance:
James Gray - PwC
Lindsay Paterson - PwC
Apologies:
Alistair Geddes - Mid Galloway
George N Prentice - Castle Douglas and Glenkens
Davie Stitt - Abbey
Item Number Item/Description Action
PUBLIC
1 SEDERUNT AND APOLOGIES

7 Members present, 3 apologies, 1 Member not present at the start of the meeting.

 
2 DECLARATIONS OF INTEREST

2.1      Gillian Dykes declared an interest in item 7 (Internal Audit Reports Issued - Leader Programme Annual Report) by virtue of being a member of the Leader Board but determined that her interest was such that she would remain in the meeting.

 

2.2      Andrew S Wood declared an interest in item 4 (The use of external residential units within Dumfries and Galloway - the impact for the Local Authority and wider partner agencies) by virtue of a contract with one of the organisations listed in the report but determined that his interest was such that he would remain in the meeting.

 
3 MINUTE OF MEETING OF 29 OCTOBER 2015

Decision

 

NOTED

 

MEMBERS - Andrew S Wood left the meeting and Willie Scobie entered the meeting - 7 Members present

 
4 THE USE OF EXTERNAL RESIDENTIAL UNITS WITHIN DUMFRIES AND GALLOWAY - THE IMPACT FOR THE LOCAL AUTHORITY AND WIDER PARTNER AGENCIES - REPORT BY HEAD OF SOCIAL WORK/CHIEF SOCIAL WORK OFFICER

Decision

 

4.1      NOTED the information contained within the report and the planned actions in place to deal with the issues raised; and

 

4.2      AGREED the Chairman of the Committee write to the Scottish Government, expressing the Committee's concerns that children and young people from out with the region were being placed within care establishments offering residential services without this Council's knowledge contrary to registration conditions; and the Council were only being made aware of their presence when issues arose.

 

MEMBER - Andrew S Wood re-entered the meeting - 8 Members present

Head of Social Work

5 EXTERNAL AUDIT PLAN FOR 2015-16 - REPORT BY DIRECTOR CORPORATE SERVICES

The Chairman, on behalf of the Committee, welcomed Lindsay Paterson, Engagement Leader and James Gray, Engagement Manager, PwC to the meeting.

 

Decision

 

5.1      NOTED the external audit plan for 2015-16;

 

AGREED

 

5.2      in response to the external auditor’s invitation for the Committee to identify an area for review, to ask PwC to undertake a piece of work on Risk Management; and

5.3      to receive a presentation from Police Scotland’s Counter-Corruption Team on a recent high profile example involving procurement fraud, this will take place at the conclusion of the next meeting of the Committee, and will be open for all Members and appropriate Senior Officers to attend.

(5.3)Chief Internal Auditor

6 HEALTH AND SAFETY PROGRESS REPORT - REPORT BY DIRECTOR CORPORATE SERVICES

Decision

 

REVIEWED

 

6.1      the overall summary of performance for the Corporate Health & Safety Action Plan for the period 1 April 2015 - 30 September 2015 at Appendix 1 to the report; and

 

6.2      the exception reporting at Appendix 2 to the report which detailed activities that were not on target or overdue.

 
7 INTERNAL AUDIT REPORTS ISSUED - REPORT BY DIRECTOR CORPORATE SERVICES

MEMBERS - Graham Bell, Andrew S Wood and Willie Scobie left the meeting during consideration of this item of business - 5 Members present

 

Decision

 

7.1      APPROVED the action plans set out in the finalised internal audit reports on Review of Write Off Arrangements, Third Generation (3G) Synthetic Grass Pitch Partnership Agreements, Main Financial Systems Report - Sales Ledger (Sundry Debtors), Leader Programme 2014-15, Procurement (Purchase Compliance), Main Financial Systems - 2014-15 follow ups and School Roll Forecasting and Planning.

NOTED

 

7.2      that further audit work would be included in the 2016-17 internal audit plan on the tendering of building works, as agreed at the last meeting on 29 October 2015;

 

7.3      the review of school roll forecasting and planning would inform the work on school rolls being considered by the Education Committee, appreciating this Committee's view that pupil placement should be mindful of the principles of Getting It Right For Every Child;

AGREED

7.4      in connection with the 3G pitch report, to request that consideration be given to reporting the position on the sinking funds (established to meet the cost of renewing the artificial surfaces) to the Policy and Resources Committee, as well as to Area Committees as recommended in the report;

7.5      in respect of the LEADER report, to communicate the Committee’s disappointment that the reconciliation between the Council's general ledger and claims for administrative costs had not been done;

7.6      on the procurement (purchase compliance) report, the Chairman will write to the Chief Executive highlighting the Committee’s concerns about persistent off-contract buying practices which could result in the Council not achieving best value or receiving benefits from efficient procurement;

7.7      the completion date for the action on Heads of Service (to establish contract purchase compliance monitoring arrangements) be extended to December 2016, to allow procedures to be developed and put in place and training of staff to be completed; and

 

7.8      that a follow-up purchase compliance review of one of the contracts referenced in the report, plus 2 others, be undertaken and reported in September 2016.

(7.6)Senior Manager Legal and Regulatory.
(7.7)(7.8)Chief Internal Auditor
8 PERFORMANCE AGAINST INTERNAL AUDIT ACTION PLANS - REPORT BY DIRECTOR CORPORATE SERVICES

Decision

 

NOTED

 

8.1      the progress made in implementing internal audit recommendations as detailed in the Appendix to the report;

 

8.2      a second extension request had been made on the timescale for development of a policy addressing sensitive personal data being stored on email;

 

AGREED

 

8.3      a full explanation of the issues necessitating the second extension be reported to the next meeting of the Committee, and no further extension for bringing forward the policy would be given; and

 

8.4      the Committee’s concern about the delay in establishing a secure communications facility between landlords and the Council be drawn to the attention of the responsible officers.

(8.3)Senior Manager Business Management

9 NINE MONTHS PROGRESS AGAINST THE 2015-16 INTERNAL AUDIT PLAN - REPORT BY DIRECTOR CORPORATE SERVICES

Decision

 

NOTED

 

9.1      that good progress had been made towards completion of the 2015-16 internal audit plan, as detailed in the Appendix to the report;

 

9.2      in respect of the scope of the proposed waste management review work in the audit plan, the Chairman had received a reply from the Chairman of the Economy, Environment and Infrastructure Committee advising there is to be a special meeting of that Committee in February 2016 to discuss waste management issues, and he would be in a position to respond after that; the audit work would therefore be put on hold for the present; and

 

9.3      AGREED to receive a report on 12 month performance against the internal audit plan at the May 2016 meeting.

(9.3)Chief Internal Auditor

10 ANY OTHER BUSINESS DEEMED URGENT BY THE CHAIRMAN DUE TO THE NEED FOR A DECISION

Decision

 

NOTED that there was no business deemed urgent by the Chairman due to the need for a decision.

 

Action Details

ItemDetail
4 Action by Head of Social Work - Head of SW has send the Chair the contact details for the relevant officer at the Care Inspectorate and Scottish Government.
5 Action by Chief Internal Auditor - The presentation is scheduled to be delivered at the conclusion of the Audit & Risk Management Committee meeting on 17 May 2016
8 Action by Senior Manager Business Management - Report presented to Audit and Risk Management Committee on 17 May 2016
9 Action by Chief Internal Auditor - The outturn against plan was reported to the Audit & Risk Management Committee on 17 May 2016