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Agenda and minutes

Venue: Exe Room, Phoenix House

Contact: Sarah Lees  Member Services Officer

Link: audio recording

Items
No. Item

26.

Apologies

To receive any apologies for absence.

Minutes:

Apologies were received from Cllr T G Hughes and Cllr P H D Hare-Scott, the Cabinet Member for Finance.

27.

Public Question Time

To receive any questions relating to items on the Agenda from members of the public and replies thereto.

Minutes:

There were no members of the public present.

28.

Chairman's Announcements

To receive any announcements that the Chairman may wish to make.

Minutes:

The Chairman had no announcements to make.

29.

Minutes of the previous meeting pdf icon PDF 143 KB

To approve as a correct record the Minutes of the meeting held on 28 July 2015 (copy attached).

Minutes:

The Minutes of the previous meeting were confirmed as a true and accurate record and signed by the Chairman subject to the word ‘group’ being inserted after ‘car parking’ in the second sentence of the final paragraph of Minute number 21.

30.

Performance and Risk Q1 pdf icon PDF 214 KB

To receive a report from the Head of Communities and Governance providing Members with an update on performance against the Corporate Plan and local service targets for 2015/16 as well as providing an update on any key business risks.

Additional documents:

Minutes:

The Committee had before it, and NOTED, a report * from the Head of Communities and Governance providing Members with an update on performance against the Corporate Plan and local service targets for 2015–16 as well as providing an update on the key business risks.

 

The Internal Audit Team Leader stated that the timing of the report was slightly unfortunate given that it had already been discussed by the three Policy Development Groups and Cabinet and was now somewhat out of date. This happened due to the timing of the quarterly reports compared to the bi-monthly Audit Committee meetings.

 

Discussion took place regarding:

 

·         The ‘Enforcement site visits’ performance indicator and whether or not it had any value as a statistical measure. It was felt that it might be better to have an indicator which measured whether or not an enforcement issue had been dealt with and resolved within an acceptable length of time. It was AGREED that this suggestion would be fed back to the Head of Planning and Regeneration asking her to consider a more appropriate measure.

·         Why some targets were not set at 100%, for example, the % of complaints resolved within timescales’. It was explained a upgraded customer records management system had been implemented in May 2015 and 97% had been set as the target to allow for the new system to bed in. This would be reviewed after three months.

 

Note: * Report previously circulated; copy attached to the signed Minutes.

31.

Internal Audit Progress Report pdf icon PDF 148 KB

To receive a report from the Internal Audit Team Leader updating the Committee on the work performed by Internal Audit for the 2015/16 financial year.To include an update regarding any remaining outstanding high priority recommendations.

Additional documents:

Minutes:

The Committee had before it, and NOTED, a report * from the Internal Audit Team Leader updating it on the work performed by Internal Audit for the 2015/16 financial year.

 

She outlined the contents of the report stating that it included the audit opinion for three internal audits. Discussion took place in relation to each one as follows:

 

Legal Services

 

·         It was stated by an elected Member that in Crediton there had been some disappointment with the quality and speed of response from the solicitors.

·         The Chairman commented that IT issues in relation to the helpdesk needed to be sorted out sooner rather than later as part of the Digital Transformation project. The Head of Finance stated the Council was consulting with North Devon District Council to see what system they used. A new helpdesk business case was needed.

 

Culm Valley Sports Centre

 

·         It was stated by the previous Cabinet Member for Community Well Being that the Leisure Service was now down to 2 managers, having previously had 4. It would be important to ensure that the quality of the Leisure Service did not suffer as a result.

·         Concern was expressed at the administrative processes involved in processing multiple contracts. It was explained that some members of staff performed several different roles and that some of them attracted a higher rate of pay than others. The question was asked as to why the average wage couldn’t be paid for each member of staff in this category. It was explained that this would result in a much higher salary bill for the Council compared to paying actual rates of pay for particular roles. The current arrangements gave the managers the flexibility they needed as it was pointed out that demand fluctuated throughout the year for certain leisure activities. There was however, general agreement that the current system was complex and time consuming to administer. It was AGREED that, as part of future annual audits on leisure centres, managers be asked to review the salary structures within their areas. The Committee were informed that an item in relation to the leisure centres would be on the next agenda for the Community Well Being Policy Development Group and everybody was welcome to attend.

 

Insurance

 

·         The Head of Human Resources & Development had now issued an instruction to Payroll that unless an employee produced a valid insurance certificate they could not be reimbursed.

·         It was confirmed that drivers of Council vehicles and ‘Essential car Users’ had to produce a valid driving licence and associated documents on their first day of work for the Council. It was AGREED that Members should also provide evidence that they had valid insurance cover whilst conducting Council duties and subsequently claiming for travel reimbursement. It was suggested that Members be given a month in which to produce their documents.

·         The Council required a restricted operator’s licence. It was a drivers individual responsibility to certify that they were medically fit and able to drive. Members expressed concern regarding this issue  ...  view the full minutes text for item 31.

32.

Internal Audit Reports (standing item)

Committee to discuss any issues arising from any Audit reports they have received since the last meeting. During discussion of this item it may be necessary to pass the following resolution to exclude the press and public having reflected on Article 12 12.02(d) (a presumption in favour of openness) of the Constitution. This decision may be required because consideration of this matter in public may disclose information falling within one of the descriptions of exempt information in Schedule 12A to the Local Government Act 1972. The Committee will need to decide whether, in all the circumstances of the case, the public interest in maintaining the exemption, outweighs the public interest in disclosing the information.

 

ACCESS TO INFORMATION ACT – EXCLUSION OF THE PRESS AND PUBLIC

 

RECOMMENDED that under section 100A(4) of the Local Government Act 1972 the public be excluded from the next item of business on the grounds that it involves the likely disclosure of exempt information as defined in section 100l and paragraph 3 of Part 1 of Schedule 12A of the Act, namely information relating to the financial or business affairs of any particular person (including the authority holding that information).

 

(Please note: This is a standing item which may not be needed should discussion have taken place regarding internal audit reports under another item on the agenda)

 

Minutes:

Discussion regarding internal audit reports had taken place under the previous item. There had been no need to move into Part II.

33.

Future position regarding external auditors

To receive a verbal update from the Internal Audit Team Leader regarding the timetable and procedure needed to appoint future external auditors.

Minutes:

The Internal Audit Team Leader provided the Committee with information regarding the process and timetable involved in appointing new external auditors.

 

The relevant dates and processes were summarised as follows:

 

·         Transitional arrangements were in place until 31/3/2017 after which Audit Committee’s needed a panel with an independent Chair to appoint external auditors, unless the current arrangements are extended for a maximum of 3 more years, Members of the Council were not considered to be independent. The Local Government Association’s preference was that a collective procurement exercise be conducted by a Sector led Body.

·         If new external auditors were to complete the 2018 audit they would need to be in place by 31 March 2017. Given the shortness of time, the extension seemed likely although it hadn’t yet been announced. It was explained that 86% of Councils responding to a LGA survey had indicated that they were in favour of extending the current arrangements, the main reason being cost savings and economies of scale. The Internal Audit Team Leader informed the Committee that the LGA had estimated that the 3 year extension would save £24m pa.

34.

Car parking charges - challenge pdf icon PDF 1 MB

Attached to this agenda is the detailed response from Grant Thornton to the challenge raised against the 2013/14 Accounts by Cllr Mrs Roach. Officers will ensure that the next update of the Traffic Regulations Order will include reference to discounts being made available for bulk purchases of car parking permits. The precise details of these arrangements will be considered at a meeting of the Managing the Environment Policy Development Group on 24 November 2015.

Minutes:

The Head of Finance brought the Committee’s attention to a detailed response * from Grant Thornton to a challenge raised against the 2013/14 Accounts by Cllr Mrs J Roach. The Chairman invited Cllr Mrs Roach to speak on the item. For the benefit of new Members to the Committee she summarised the events which had taken place as follows:

 

·         In December 2013 a decision notice, permitting the sale of parking season tickets on a bulk purchase basis, was issued on behalf of a Cabinet member.

·         Cllr Roach asked to call in the decision as she felt that this should have been advertised as it was changing the fees set in the car parking order. She was also concerned that this reduction applied to only one group of workers in one car park.

·         The Chief Executive had refused to allow the call in and wrote to all Members explaining why the call in was invalid.

·         In January 2014, Cllr Roach made a formal complaint, this was investigated and she was informed that the Council had acted properly.

·         She then made a complaint to the Ombudsman who would not investigate because she was not a member of the public.

·         She then lodged a formal challenge to the accounts. She explained that that decision had not been taken lightly.

·         At the last Audit Committee when the accounts were agreed, she asked why there had not been a report to the committee on the result of her challenge. The Auditor agreed that this should have happened, hence the item on the agenda for this meeting.

·         Her concern throughout had been that the correct procedures were not followed and that one set of workers had been given special treatment by the Council. She had wanted to know why if season tickets were to be reduced for one set of workers then shouldn’t everyone have an equal opportunity to access a better deal.

·         She stated that it was unfortunate that an elected Member had to formally challenge the Council's accounts in order to highlight such an issue.

·         She also stated that the Auditor wrote to her on the 15 December 2014 and the matter had still not been rectified.

 

Discussion followed with regard to:

 

·         An acknowledgement that mistakes had been made and an apology was offered to Cllr Mrs Roach by the Head of Finance. Lessons had been learnt and that whilst mistakes of this nature could not be mitigated it was sincerely hoped that they would not be made again.

·         The Head of Finance stated that a valid discussion had taken place with a local company and local residents where there had been concerns about congestion in a local road hence the arrangement. Future car parking orders would include some commentary about bulk discounts being available for all residents.

·         The law ‘out-trumped’ the Constitution.

·         A request to pursue the issue through the Scrutiny Committee had been denied.

·         Perceived difficulties involved in minority group members finding avenues through which to bring issues to the fore.

·         The  ...  view the full minutes text for item 34.

35.

Minor Amendments to the Financial Regulations

To receive a verbal update from the Head of Finance regarding some minor changes to the wording of the Financial Regulations.

Minutes:

The Head of Finance informed the Committee that a number of minor amendments were needed in the wording of the Financial Regulations. However, in addition to this, some of the financial thresholds also needed amending. He would therefore bring a formal detailed report to the next meeting listing the amendments needed.

 

36.

External Audit update pdf icon PDF 131 KB

To receive an update report from the external auditors regarding their progress to date.

Minutes:

The Committee had before it a report * from Grant Thornton updating it on the progress made in delivering their responsibilities as the Council’s external auditors. The Committee were informed that in addition to the usual update report there would also be a Financial Resilience report, a Grants Certification report and the Annual Audit Letter for the next meeting.

 

Note: * Report previously circulated; copy attached to the signed Minutes.

37.

Identification of items for the next meeting

Members are asked to note that the following items are already identified in the work programme for the next meeting:

 

·         Internal Audit Progress Report

·         Internal Audit Reports

·         Performance and Risk Q2

·         Presentation from the Internal Audit Team regarding current audit issues

·         External Audit update

 

Note: This item is limited to 10 minutes. There should be no discussion on the items raised.

 

Minutes:

In addition to the items already listed in the work programme, the following items were requested to be on the agenda for the next meeting:

 

·         Amendments to the Financial Regulations

·         Financial Resilience (Grant Thornton)

·         Grants Certification (Grant Thornton)

·         Annual Audit Letter (Grant Thornton)