| 94 | RECORD OF THE MEETING |
| | | The record of the meeting held on 5 March 2007 and the record of the Joint Meeting of all Committees held on 23 May 2007 were signed by the Chairman as correct. |
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| 95 | DECLARATIONS OF INTEREST |
| | | Councillor Griffiths declared a personal interest in any reference to the Primary Care Trust by virtue of his membership of the Trust. Later in the meeting he declared a personal interest in references to special educational needs as his wife works at Danecourt school. |
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| 96 | ANNUAL AUDIT AND INSPECTION LETTER 2005/2006 |
| | Discussion: |
| | | The Assistant Director, Communications and Improvement, explained that the letter covered the financial year 2005/2006. She then introduced Paul Chambers, the Relationship Manager for the Audit Commission who then summarised the report for the Committee.
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| He stated that overall the report gave a positive picture as the Council had maintained its three star status following the Comprehensive Performance Assessment. He stated that there were areas where the Council had not performed so well. These related to polices and practice around children's social care, which had not yet been embedded. Performance management was another area where performance was not consistent. He explained the action needed by the Council in response to the report.
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| In response to a question he stated that although the letter covered the financial year 2005/2006 it also covered responses to the Comprehensive Performance Assessment so in that regard the information was up to date. He also stated that he had regular meetings with the Assistant Director, Communications and Improvement, to discuss progress. Part of these discussions highlighted good practice in other authorities, which could help Medway Council to improve performance.
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| Members queried what more the authority could do to improve the direction of travel against other councils from improving adequately to improving strongly. It was stated that once the Council had its improved performance management in place this should ensure consistency of approach across the Council's services. Some concern was expressed that a large amount of effort and resources had been diverted towards responding to the Joint Area Review findings possibly at the expense of some other areas in the council. It was explained that once improvements were established in that area the effort and resources would then be moved to subsequent priorities.
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| The Assistant Director, Communications and Improvement, was asked to let Councillor Griffiths know, by means of a briefing note, what the authority was planning to do in response to the audit letter.
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| Members requested that when considering the audit and inspection letter in subsequent years it would be helpful if there could be more focus on what had changed in the year and what lessons the council still had to learn.
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|
| | > Annual audit and inspection letter 2005-06 (pdf file 16.7kb) |
| | > Medway Council mgt letter final (pdf file 122.5kb) |
| | Decision: |
| | | | (a) | The Committee accepted the annual audit and inspection letter;
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| | (b) | When the annual audit and inspection letter is brought to the Committee in future there should be more focus on what had changed in the year and what lessons the Council still had to learn;
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| | (c) | The Assistant Director, Communications and Improvement, was asked to provide Councillor Griffiths with a briefing note giving details of the council's response to the audit and inspection letter.
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| 97 | REVIEW OF TERMS OF REFERENCE |
| | Discussion: |
| | | The Chief Finance Officer introduced a report on a review of the terms of reference for the Committee. He explained that it was good practice for the Committee to annually review the terms of reference to see whether any amendments were needed. |
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| | > Terms of reference (pdf file 16.1kb) |
| | Decision: |
| | | The Committee confirmed that the current terms of reference meets its current and expected future needs without amendment. |
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| 98 | REVIEW OF EFFECTIVENESS OF THE INTERNAL AUDIT SYSTEM |
| | Discussion: |
| | | The Chief Finance Officer introduced a report advising Members of changes to the Accounts and Audit Regulations which require Medway Council to review annually the effectiveness of the internal audit system.
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| He responded to a question regarding audit resource levels and stated that this situation was not uncommon in that there were a number of areas in the council where resourcing levels were low in comparison to benchmarked authorities. The Council had a low resource base and the priority for resources was for front line services.
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|
| | > Review of effectiveness of internal audit system (pdf file 29.1kb) |
| | Decision: |
| | | The Committee endorsed the approach of the review of the effectiveness of the internal audit system for 2006/2007 and the outcome of the review in support of the Committee's consideration of the Statement of Internal Control. |
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| 99 | OUTCOMES OF INTERNAL AUDIT ACTIVITY |
| | Discussion: |
| | | The Audit Services Manager stated that he had no particular details to bring to Members' attention at this point but pointed out that there were further details in the exempt appendices.
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| Councillors then stated they would revisit the information in the appendices once the Committee had gone into private session. The second recommendation set out below relates to that discussion. |
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| | > Outcomes of audit activity (pdf file 13.8kb) |
| | Decision: |
| | | | (a) | Members noted the outcome of Internal Audit's work;
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| | (b) | An item was referred to Regeneration and Development Overview and Scrutiny Committee for further consideration.
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| 100 | INTERNAL AUDIT ANNUAL REPORT |
| | Discussion: |
| | | The Audit Services Manager introduced the Internal Audit Annual report. He explained that it was a requirement of the code of practice to produce an annual report. He summarised the main findings before the Committee and the need for Members to consider it when approving the Statement of Internal Control. |
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| | > Internal audit annual report (pdf file 12.2kb) |
| | Decision: |
| | | The Committee noted the outcome of Internal Audit's work. |
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| 101 | APPROVAL OF STATEMENT OF INTERNAL CONTROL AND STATEMENT OF ACCOUNTS |
| | Discussion: |
| | | The Chief Finance Officer introduced the draft Statement of accounts for the Committee's approval and responded to Members' challenges.
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| The Committee was informed that Cabinet on 26 June 2007 approved the draft Statement of Internal Control and Statement of Accounts and recommended them to the Committee.
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| In relation to a query relating to FRS 17 Retirement Benefits the Chief Finance Officer stated that Medway Council was in a better position than a number of other councils in the Kent scheme because the nature of services delivered meant it employed a mixed workforce with employees at all ranges of the salary spectrum and ages.
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| Councillor Juby requested further details of the overspend in events and leisure and how the figures were arrived at by means of a briefing note after the meeting. He made the point that either the events were legitimate and as such should be budgeted for in the base budget or they were not in which case they needed to be questioned. The Chief Finance Officer did explain that some of the overspend in leisure was caused by problems at Deangate Ridge which was subject to drought for part of the year and flood for another part. Strood Leisure Centre had also lost income due to the breakdown of a pump. He also referred to the fact that Events were now responsible for the Corn Exchange.
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| Discussion took place on what constituted discretional spend and the point was made that there may well be areas which the council needed to change to reflect changing requirements. For instance with the developments planned at the Black Lion consideration could be given to whether or not the Council needed to have the second running track currently provided at Deangate.
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| There were some queries in relation to problems encountered by people incurring physical disability through accidents where delays in processing their claims took years to resolve. The effect of this was to place a burden on the local authority. Questions were asked as to whether the council could assist the public by giving them legal advice on getting their compensation more speedily. The Chief Finance Officer undertook to raise this issue with the appropriate officer.
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| Councillor Griffiths expressed his view that the accounting treatment of the 2007/2008 Dedicated Schools Grant distorted the accounts. He felt that the £1 million agreed by the Schools Forum should not be carried back into the 2006/2007 financial year but rather the overspending be carried forward through reserves if necessary. This would be on the basis of the money being put back into reserves on the first day of the next financial year once it was received from the Schools Forum. The Chief Finance Officer agreed to clarify the validity of the treatment with the auditor.
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| The matter was put to the vote and carried but Councillor Griffiths wished it to be recorded that he voted against the motion. |
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| | > Statement of accounts 2006-07 (pdf file 30.5kb) |
| | > Draft Statement of Accounts 2006-2007 (pdf file 266.9kb) |
| | Decision: |
| | | | (a) | The Committee approved the draft Statement of Internal Control and Statement of Accounts for 2006/2007;
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| | (b) | A briefing note is provided for Councillor Juby on further details of the overspend in events and leisure;
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| | (c) | The Chief Finance Officer to raise the issue set out above relating to legal advice to the appropriate officer.
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| 102 | OUTCOME OF HOUSING BENEFIT COUNTER FRAUD INVESTIGATION |
| | Discussion: |
| | | The Audit Services Manager gave a brief introduction to progress in investigating allegations of housing and council tax benefit fraud during the period February to March 2007 and responded to Members' questions.
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| In response to a question he stated that an investigation could be backdated to 1998, if records existed. He stated that the prosecutions detailed all related to housing benefit fraud. |
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| | > Housing and council tax benefit investigations (pdf file 17.0kb) |
| | Decision: |
| | | The Committee noted progress in investigating benefit fraud in accordance with the approved sanction policy. |
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| 103 | INTERNAL AUDIT WORK PROGRAMME 2006/07 |
| | Discussion: |
| | | The Audit Services Manager introduced a report on progress in achieving the internal audit programme. He explained the difficulties encountered in carrying out the value for money audit, which had required considerable more preparation work than had been anticipated. He also stated that from July last year to February this year there had been a vacancy in the section because of difficulties recruiting. This vacancy had now been filled. |
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| | > Internal audit programme 2006-07 (pdf file 41.7kb) |
| | Decision: |
| | Members noted the completion of key assurance work and the carry forward of audits to the 2007/2008 year.
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| 104 | EXCLUSION OF THE PRESS AND PUBLIC |
| | | The Committee agreed to ask the press and public to leave the meeting because the following items contained commercially sensitive information under paragraphs 5 and 7 of schedule 12A of the Local Government Act 1972. |
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| | > Exclusion of the press and public (pdf file 9.1kb) |
| 105 | IRREGULARITY REPORT |
| | Discussion: |
| | | The Audit Services Manager introduced the irregularity report and he and the Assistant Director, Organisational Services, responded to Members' questions. |
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| | > Irregularity report (pdf file 9.8kb) |
| | Decision: |
| | | The Committee noted the outcomes of the irregularity investigation and the actions taken. |
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