| 746 | RECORD OF THE MEETING |
| | | The record of the meetings held on 25 September 2008 were signed by the Chairman as correct.
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| At the end of the meeting the Committee requested that the Monitoring Officer respond in writing, as requested at minute 349 (Outcomes of Audit activity), to all Members of the Committee on the recovery of the additional roofing payment of £35,027.56.
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| 747 | URGENT MATTERS BY REASON OF SPECIAL CIRCUMSTANCES |
| | | It was reported that the Chairman had agreed to accept an item (External Audit Fee Letter) as urgent, as the Audit Commission has requested that all audit fee letters be agreed by 30 April 2009. |
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| 748 | DECLARATIONS OF INTEREST |
| | | Councillor Griffiths declared a personal interest in any reference to NHS Medway, insofar as he is a non-executive director.
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| Councillor Juby declared a personal interest in agenda item 5C (Review of Risk Management) insofar as he is a Member of the Rochester Riverside and Strood Riverside Project Board, which is referenced in the report.
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| Councillor Jarrett declared a personal interest in agenda item 5C (Review of Risk Management) insofar as he is a Member of the Rochester Riverside and Strood Riverside Project Board, which is referenced in the report. He also declared a personal and prejudicial interest in case during the consideration of any of the reports before the Committee, reference was made to Medway Tunnel, as he is a member of Rochester Bridge Trust. It is noted that there was no discussion on this matter.
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| During the discussion of agenda item 5A (Annual Audit and Inspection Letter 2007/2008) Councillor Reckless declared a personal interest in any reference to Kent Police Authority, as he is a member of the authority.
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| 749 | ANNUAL AUDIT AND INSPECTION LETTER 2007/2008 |
| | Discussion: |
| | | Claire Bryce-Smith, Comprehensive Area Assessment Lead from the Audit Commission, and Robert Grant, from the Council's external auditors (PKF), introduced the 2007/2008 Audit and Inspection Letter.
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| The letter provided a summary of the Audit Commission's findings and conclusions, analysing the Council's activities over the following areas: the Council's direction of travel report, evidence of improving outcomes, the Council's plans to sustain future improvement, service inspections, financial management and value for money.
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| Members were advised that the Audit Commission's overall judgement was that Medway Council was improving adequately and had retained its 3 star status. Performance across five of the six Comprehensive Performance Assessment service areas had been sustained and it was reported that whilst an Audit Commission inspection had rated the council's strategic housing service as poor, overall performance in housing services had improved and was now performing strongly. It was also reported that improvements had been made in the majority of the Council's priority areas, particularly in the areas of 'a clean and green environment' and 'safer communities'.
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| It was noted that the Council had achieved an unqualified audit opinion on the statement of accounts and the value for money arrangements had been found to be adequate. The Council had also performed well in its use of resources, with the council establishing effective financial management arrangements and securing value for money.
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| Members were advised of specific action for improvement, which included outcome focused service plans, improvements to address variations in service quality, strengthening of the Council's framework of internal control and the need to continue to review the level of the general fund balance and other reserves.
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| Members asked questions and commented on a number of areas in the Audit and Inspection Letter, focusing on the need for outcome focused service plans, performance in housing services, the budget setting process, training on risk management, embedding whistle blowing policies and procedures, and partnership working.
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| The Cabinet had considered this report on 10 March 2009 and the Cabinet had recommended to the Audit Committee the audit and inspection letter for acceptance.
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| | > Annual Audit and Inspection Letter (pdf file 392.0kb) |
| | Decision: |
| | | The Audit Committee accepted the annual audit and inspection letter. |
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| 750 | EXTERNAL AUDIT FEE LETTER |
| | Discussion: |
| | | The Chief Finance Officer introduced a tabled report on the external Audit Fee letter for 2009/10.
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| It was reported that new guidance from the Audit Commission had changed the process for the presentation of the external audit fee, with all audit fee letters now being agreed by 30 April 2009. The letter, attached to the report, explained that the fee took account of the current assessment of risk but may need to be updated throughout the year as work continues.
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| | > External Audit Fee Letter (pdf file 175.2kb) |
| | Decision: |
| | The Committee approved the audit fee letter as presented with the report.
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| 751 | SOUTH THAMES GATEWAY BUILDING CONTROL - REPORT OF THE AUDITOR |
| | Discussion: |
| | | This report presented a report from the auditor concerning the South Thames Gateway Building Control Partnership.
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| The South Thames Gateway Building Control Partnership was a joint venture between Gravesham, Medway and Swale Councils, providing a cohesive building control service.
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| It was noted that the report from the auditor was at this stage draft and had been considered by the South Thames Gateway Building Control Joint Committee on 17 March 2009. The report was brought to the Audit Committee for information.
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| | > South Thames Gateway Building Control - Report of the Auditor (pdf file 116.1kb) |
| | Decision: |
| | | The Audit Committee noted the auditor's report on the South Thames Gateway Building Control Partnership. |
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| 752 | REVIEW OF RISK MANAGEMENT |
| | Discussion: |
| | | The Business Quality Assurance Manager introduced a report and accompanying appendix on progress of the Council's risk management activities.
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| Members were advised of progress against a number of measures, including the establishment of a Strategic Management Risk Group and training for both Members and officers, which were designed to ensure that risk management was robust and embedded into the organisation.
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| | > Review of Risk Management (pdf file 149.8kb) |
| | Decision: |
| | | The Committee noted that progress of the Council's risk management activities. |
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| 753 | OUTCOMES OF HOUSING BENEFIT COUNTER FRAUD INVESTIGATIONS |
| | Discussion: |
| | | The Audit Services Manager advised Members of progress in investigating allegations of housing and council tax benefit fraud since the last meeting of the committee in September 2008 and responded to Members' questions.
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| It was noted that up to 31 December 2008 the investigations team had identified £485,426 of fraudulent overpayments of Housing and Council Tax benefit and £70,031 of Department of Work and Pensions paid benefits. Since the last report to the Committee there had been 17 successful and 4 unsuccessful prosecutions. 24 cautions and 2 administrative penalties had also been issued. Details of these cases were set out in an appendix to the report.
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| Following questions by Members the Audit Services Manager undertook to send to the Committee details of the public interest test used when considering possible sanctions.
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| | > Outcomes of Housing Benefit Counter Fraud Investigations (pdf file 105.9kb) |
| | Decision: |
| | | The Committee noted progress in investigating benefit fraud in accordance with the approved sanction policy. |
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| 754 | INTERNAL AUDIT PROGRAMME |
| | Discussion: |
| | | Members were given a brief overview of the outcome of progress in achieving the 2008/2009 programme.
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| It was noted that the internal work programme was derived from a number of sources including the Council's risk identification process, internal audit's view of risk and requests from Members and officers. The report highlighted audits that had been removed from the programme and Members emphasised the need to address vacancies within the audit team.
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| | > Internal Audit Programme (pdf file 101.2kb) |
| | Decision: |
| | | The Audit Committee noted the progress in delivering the 2008/09 programme and that all key assurance work would be completed to support the needs of the annual governance statement and external audit. |
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| 755 | OUTCOMES OF AUDIT ACTIVITY |
| | Discussion: |
| | | The Audit Services Manager gave a brief introduction on the outcome of completed internal audit activity.
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| The Chief Finance Officer and Audit Services Manager responded to Members' questions on a number of audits.
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| In response to questions concerning the Deangate Ridge value for money audit, the Audit Services Manager advised that the four recommendations not accepted by management related to suggested revisions to the fee structure, which suggested phasing out membership of the course with a replacement loyalty scheme. Members were also advised that following the audit a report on workforce planning and capacity had been submitted to the Employment Matters Committee on 22 January 2009.
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| In relation to the best value performance indictor outturn check on waste services the Assistant Director, Communications, Performance and Partnerships undertook to advise Members of the ward selection methodology used for street cleanliness surveys.
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| An exempt appendix gave details of 3 completed audits and their outcomes and during the discussion on this appendix Members requested further briefing notes on the grounds maintenance (contract monitoring) and Part 1 compensation claims audits.
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| | > Outcomes of Audit Activity (pdf file 136.2kb) |
| | Decision: |
| | | The Audit Committee noted the outcome of Internal Audit's work. |
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| 756 | EXCLUSION OF THE PRESS AND PUBLIC |
| | | During the discussion of agenda item 5F (Outcomes of Audit Activity) the Committee agreed to exclude the press and public for the consideration of the exempt appendix to item 5F (Outcomes of Audit Activity) and for agenda item 5G (Irregularity Report) on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 1, 3 and 7 of part 1 of Schedule 12A of the Local Government Act 1972. |
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| | > Exclusion of the Press and Public (pdf file 57.3kb) |
| 757 | IRREGULARITY REPORT |
| | Discussion: |
| | | This report and supporting exempt appendix set out details of two irregularity investigations and explained the actions taken to deal with the situation. |
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| | > Irregularity Report (pdf file 62.8kb) |
| | Decision: |
| | | The Committee noted the outcome of the irregularity investigation and the actions taken. |
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