Agenda and minutes

To receive any apologies for absence.

Apologies were received from Cllr R F Radford.

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

There were no members of the public present.

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

The Chairman stated that the South West Audit Partnership was running some training for Audit Committee members in October at two locations in Buckfast Abbey or Sparkford Motor Museum. Having attended the free event the previous year and found it very useful, he intended to attend the Sparkford Motor Museum event again. He highly recommended the training and hoped that other Members of the Committee would consider attending as well.

To approve as a correct record the Minutes of the meeting held on 15 July 2016 (copy attached).

The minutes of the meeting held on 15 July 2016 were approved as an accurate record and SIGNED by the Chairman.

To receive a report from the Head of Communities and Governance providing Members with an update on performance against the Corporate and local service targets for 2016/17 as well as providing an update on any key risks.

Please note: If Members have questions regarding this report please submit them to the clerk in advance of the meeting so that the appropriate officer can be asked to attend or provide a written response. 

The Committee had before it, and NOTED, a report * from the Head of Communities & Governance providing Members with an update on performance against the Corporate Plan and local service targets for 2016-17 as well as providing an update on the key business risks.

It was explained that some of the performance indicators had been amended to reflect the new Corporate Plan and the four Policy Development Groups.  

Discussion took place regarding:

Environment

·         The amount of residual household waste per household going to landfill and the fact that the Cabinet were regularly kept up to date.

·         The need for the three different shades of green used within the reports to be more distinct and therefore clearer in terms of meaning.

 Homes

·         There was a target to achieve ‘80 homes to be delivered’ with only 16 having been achieved in quarter one which was about 20% down on where the Council should be, however, that could be reversed very quickly at any point in the next three quarters with the proposed developments.

·         Average days to re-let local authority houses and the fact that a comment was made that ‘the team struggled to meet the target of 16 days’. The Chairman asked whether anything had been done to assist that team? The Director of Finance, Assets and Resources stated that he would speak to the Head of Housing to get an update and pass it on the Committee. It was further explained that there were different void types with some needing a major upgrade. Legally the Council was not allowed to insist that tenants pay a deposit before occupying a property, however, it did proactively charge tenants who caused damage or who had not given a property back in a satisfactory condition. The Chairman was concerned that realistic targets be set which were attainable.

Corporate

·         The response times in relation to Freedom of Information requests had improved due to a new member of staff being appointed to look after this area.

·         The quarter one figure for the number of working days lost due to sickness absence was slightly higher this year than last year but was still within target.

·         Additional information was provided by the Internal Audit Team Leader who had received an update from the Head of Planning and Regeneration that day regarding staffing levels in her department. For ‘the planning guarantee’ it was permissible to arrange extensions of time for a planning determination as long as it was in writing and agreed with the client. She further explained that some of the performance indicators had been removed from these reports to try and reduce the volume, however, as a result, the Committee lost a bit of context. The Planning Committee had been informed that major applications processed within 13 weeks were 75% and minor within 8 weeks were 72% both of which was over their targets. Perhaps a couple of performance indicators needed to be added back in to provide some relevant context to all committees. It was confirmed  ...  view the full minutes text for item 39.

To receive a report from the Internal Audit Team Leader updating the Committee on the work performed by Internal Audit for the 2016/17 financial year.To include an update regarding any remaining outstanding high priority recommendations.

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 2016/17 financial year. This report covered the period up to 31 August 2016 and included six audit opinions.

Discussion took place regarding each of the following internal audits:

Standby

·         It was explained that there were two different functions within standby. The first were the standby operatives who went out to deal with emergencies and the second was the officers who provided advice from home and did not therefore need to be in the lone workers scheme as they were effectively treated as ‘office based’.

·         It was noted again that the date for the approval and implementation of the Transport Policy had slipped but this had been due to the depot move.

Voids

·         Pre-vacation inspections, where a tenant had given notice, were not optional, this provided an opportunity, where a property was not in a fit state, for the tenant to bring it up to standard and make any repairs before finally vacating. The Internal Audit Team had spoken to the Voids Supervisor and it had been confirmed that most of the properties that were in a bad state had been due to issues such as eviction, abandonment, or death. The Voids Management Policy had not had a significant effect on the major voids it was the ones that were classified as minor that would be improved.

Sickness & Other Time Off

·         It was the overall opinion of the auditor that the sickness and other time off system in terms of HR’s responsibility was adequately controlled, although the part of the process which involved managerial responsibility was weak and therefore poorly controlled.

·         The Committee commented that they had received the same feedback last year and had made their feelings known then. They were extremely disappointed to see the same comments being made again this year. A manager’s job was to manage and it came with an expectation. The advice from HR should be taken and acted upon and there should be no discretion.

It was AGREED that, as the issues discussed affected managers across the whole Council, the Chairman would write to the Chief Executive and ask him to attend the next meeting to explain what actions were being taken to address the concerns of the Committee.

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

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 the previous item on the agenda)

As there was a need to discuss information that was of a commercially sensitive nature, it was:

RESOLVED 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).

(Proposed by the Chairman)

Since the last meeting the Committee had received, and NOTED, a detailed report regarding the Licensing audit. An update was provided to it during the meeting which was also noted.

The meeting returned to open session where discussion continued regarding the software system used by the Licensing team known as ‘Lalpac’. It was explained that whilst this was perfectly adequate for issuing licenses and reminders the report functionality within the software package was poor. However, although the system did not quite meet all the requirements adequate work arounds were in place. 

To receive a report from the Audit Team Leader summarising the key proposals contained in the Public Sector Audit Appointments Ltd (PSAA) prospectus. The Committee are asked to formulate a reply on behalf of the Council to the questions posed by PSAA on page 7 of the prospectus.

The Committee had before it, and NOTED, a report * from the Internal Audit Team Leader summarising the key proposals contained in the Public Sector Audit Appointments Ltd prospectus. The Internal Audit Team Leader explained that a formal recommendation would now be brought to the Committee for its January meeting. It was AGREED that officers would draft a response to questions posed in the Public Sector Audit Appointments prospectus as a way of responding to the consultation and would be circulated to the Committee.

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

To receive a report from the Director of Finance, Assets and Resources making recommendations for amendments to the Financial Regulations of the Authority.

The Committee had before it, a report * from the Director of Finance, Assets and Resources presenting some amendments to the Financial Regulations of the Authority.

RECOMMENDED to Council that:

(Proposed by the Chairman)

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

The receive the Annual Audit Letter from Grant Thornton summarising the key findings arising from the work they have carried out for the year ended 31 March 2016.

The Committee had before it, and NOTED, a report * from the external auditors presenting the Annual Audit Letter from Grant Thornton summarising the key findings arising from the work they had carried out for the year ended 31 March 2016.

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

To receive a progress report and update from the External Auditors.

The Committee had before it, and NOTED, a report * from the external auditors providing a progress report and update. The Audit Plan for 2016/17 would be issued early in 2017. A number of emerging issues within the report were highlighted including an income generation workshop and a seminar highlighting Mid Devon’s success in achieving a faster closure of accounts at which the Council’s Finance Manager would co-present.

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

The Committee had requested at its last meeting that a general discussion be held regarding the impact of Brexit upon the Council as far as was known at the current time.

At the last meeting a request had been made to briefly discuss the implications of Brexit as far as they affected the Council and as far as they were known at the current time. The Director of Finance, Assets and Resources informed the Committee that they needed to be aware of the following:

·         Certain projects relied on EU funding and may therefore be in jeopardy.

·         The effect on the base rate might have both positive and negative effects upon the Council.

·         Returns on short investments had reduced which made the Council’s fixed dividend property investment with the Churches, Charities and Local Authorities (CCLA) even more attractive.

·         If the Council wanted to do more innovative things, for example, build more industrial units and needed to borrow money from the Public Works and Liability Board, it might be possible to borrow money more cheaply.

·         The effect of the exchange rate would not have a significant effect upon the Council itself but might have in terms of local businesses with whom it undertook projects. Any struggling companies were advised to approach the Council through its Economic Development Officer who could provide advice.

He concluded by stating that as soon more information was available he would update the Committee.

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

·         Performance and Risk for quarter two of 2016/17

·         Internal Audit Reports

·         Internal Audit Progress Report

·         External Audit update

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

In addition to the items already identified for the next meeting it was requested that the Chief Executive be invited to attend the next meeting.