The Committee considered the revised
Statement of Accounts 2008/09, which was introduced by Richard
Wyles, the Corporate Head for Finance
and Customer Services. The Statement of Accounts had been revised
to reflect the outcome of the District Auditor’s
work.
An addendum was provided which corrected two
errors in the statement of accounts.
An error in a valuation figure provided by the
District Valuer resulted in a number of
statements having to be amended. This was a mistake on the part of
the District Valuer and the Council was
seeking assurances that this would not happen in future. Members
expressed concern at the additional work required by officers as a
result of this valuation error.
Deferred charges were now known as Revenue
Expenditure funded from Capital under statute and this had resulted
in a minor change being made.
Past Service Costs relating to changes to the
pension scheme had not been included in the balance sheet which
resulted in the pension liability being understated by
£520k.
The District Auditor was satisfied that all
changes recommended in the District Audit Annual Governance Report
had been made.
It was noted by Members that changes to the Notes
to the Accounts had been made, including in relation to the
Building Control Trading Account. Actions were being taken to
ensure compliance with statutory guidance over this
account.
Members were pleased to note that the Summary of
Accounts had been accredited by the
Plain English Campaign. The booklet would be available on the
Council’s website and would also be sent to all Parish
Councils.
DECISION:
1)To approve the Revised Statement of Accounts for
2008/09
2)To note the changes to the outturn position of the General
Fund following the changes agreed with Audit
3)To note the commentary on the outcome of the audit
work
4)To approve the publication of the Summary of Accounts (with
“Plain English” accreditation).
RECOMMENDATION:
That Cabinet consider
writing to the District Valuer to
express the Council’s concern at the inconvenience caused as
a result of the error in the valuation information in respect of
the Grantham Meres Leisure
Centre.
The Committee to consider the District
Auditor’s Annual Governance Report.
(Enclosure)
Minutes:
The Committee considered the District
Auditor’s Annual Audit Report.
Members were informed that the District Auditor had not been able
to attend the meeting himself due to illness and would be unable to
sign off the Council’s Statement of Accounts for 2008/09. It
would be necessary for a replacement District Auditor to review the
accounts before they could be signed off. The role of District
Auditor was a statutory and personal appointment and therefore
there would be a delay in signing off the accounts. It was
explained that a letter would be sent to the Chief Executive and
s151 officer to explain the situation fully. Members were assured
that this would not create an issue for the Council as the Council
was not in any way at fault.
District Audit were happy to give an unqualified opinion on the
accounts The financial statements were
free from error, there was an adequate internal control environment
and there were adequate arrangements in place to secure value for
money.
Members noted the mis-statements that
had been identified in appendix 2 of the report and that
appropriate amendments had been made to the accounts.
DECISION:
1)To note the report and to approve the
letter of representation on behalf of the Council.
2)To defer the authority to review any
amendments to the accounts as a result of the requirement for a
second District Auditor review to the Chairman and s151
officer.
The Local Government Ombudsman’s Annual
Review was presented by the Legal Services Manager, Lucy
Youles.
The
review covered the period from 1 April 2008 to 31 March 2009.
During this time a total of 27 complaints had been received by the
Ombudsman. Of the 27, eight required advice from the Ombudsman and
a further eight were premature and were forwarded to the Council to
deal with. The Ombudsman concluded 12 complaints during the period,
including one investigated during 2007/08. Of these two were
settled locally, there were four findings of no maladministration,
five were outside the Ombudsman’s jurisdiction and in one
case the Ombudsman decided not to pursue the complaint.
The
Ombudsman concluded that there was no overall cause for concern.
Although 15 complaints related to housing, only three required
investigation.
There
was some concern regarding the time taken by the Council to respond
to formal enquiries by the Ombudsman. The target was 28 days and
during 2007/08 the Council had responded in 18.5 days. In 2008/09
this had taken 35 days, but as there were only two cases where
formal enquiries had been made this was not statistically
significant. The delays to these responses had been caused by the
time taken to negotiate what action to take. Members acknowledged
the reasons why this target had been missed and it was noted that
in future they would like to see the Council to respond within the
timescale.
Members noted that when the Council received a complaint it was
acknowledged the same day.
Members to be updated on progress of the work
of Internal Audit.
(Enclosure)
Minutes:
The Council’s internal auditors
presented their Progress Report.
The
report showed the progress that Internal Audit had made against the
previously agreed plan. Of the six reports that had been
finalised, five had been positive
assurance opinions and one had resulted in a negative opinion.
Limited assurance had been given in relation to cash security. This
report had been requested as a result of a break-in at the Stamford
Arts Centre. Weaknesses in procedures had been identified. The
Council’s management had agreed with all the recommendations
made and these had all been actioned.
Members noted that a follow up review would be presented at a later
date.
Substantial assurance had been provided regarding play schemes. The
one recommendation made by Internal Audit had been implemented
immediately.
Substantial assurance was provided relating to car loans. There was
one significant recommendation that finance staff be provided with
vehicle registration documents to demonstrate that the loan had
been used for the intended purpose. There were two other
recommendations. All recommendations had been implemented. It was
noted by Members that although the scheme was to be more widely
publicised, this was for transparency
purposes. There were only six existing loans and they were limited
to a maximum of £15k and staff graded at a certain level. The
loans were not intended to replace commercial car loans and
repayments were deducted directly from salary.
Licensing was given adequate assurance. There were six
recommendations, which had all been accepted by management. The
significant recommendations related to the lack of a pro-active
approach by the Council. Members viewed all the dates for
implementation of the recommendations as acceptable.
Substantial assurance was provided regarding the ‘resident
involvement’ audit review and both recommendations had been
accepted by management and would be implemented.
Adequate assurance was provided regarding IT security policies.
Five recommendations had been made and were due to be implemented
by management. One of the recommendations had only been partially
accepted, but this was due to it being the responsibility of the
Cabinet to formally approve any IT security policies before they
were adopted.
Members considered the Tracking Report. This
report recorded progress by the Council to ensure that
recommendations from Internal Audit were implemented.
Of the
125 recommendations that had been followed up in respect of 2007/08
and 2008/09, 84% had been fully implemented. Of the 24 high risk
recommendations 83% of these had been fully implemented.
Members noted that the report was updated based on information
received from Service Managers.
Members were satisfied with the progress being made and would
review progress at the next meeting. The report was accepted.
The Committee to be updated on changes to
International Finance Reporting Standards.
(Enclosure)
Minutes:
The Committee were
updated on the transition to International Financial Reporting
Standards (IFRS) by Nicola Lovely, the Financial Accountant Team
Leader.
Members noted that the transition to IFRS would create a
significant amount of work in a short time scale for the finance
team and a number of figures would have to be restated according to
these rules. It was noted that the guidance relating to this had
not yet been finalised.
Members noted that asset values would be required from the District
Valuer as a part of this process and it
was reiterated by Members that an accurate and timely service was
required.
Members reviewed the Assurance Statements.
This report covered the quarter to the end of June 2009.
Statements were made by Service Managers on a quarterly basis in
relation to the effectiveness of internal systems and
controls.
Members noted that many of the outstanding issues related to
training.
Members were concerned that there was a
significant number of outstanding performance appraisals. It was
noted that this would continue to be flagged in the report until
appraisals were up to date. The Committee were concerned that these appraisals had not been
undertaken.
Members were of the opinion that all long term sickness and return
to work needed to be managed.
RECOMMENDATION:
That
the Portfolio Holder for Organisational
Development and Housing investigate why there were significant
numbers of outstanding performance appraisals in some service areas
of the Council.
The Committee went into recess between 3:09
and 3:18 pm.
The Committee reviewed the Council’s
Risk Management Strategy for 2009/10.
The
Committee had last looked at the Risk Management Strategy in April
2008 which had since been reviewed by the Risk Management Group.
There were no fundamental changes to the strategy.
It was
noted that the scoring matrix was subjective, but it was felt that
the Council’s model was the most appropriate to use.
Members noted that in the event of a flu
pandemic that there were business continuity plans in place.
The Committee
noted the report and that no amendments were required.
EXCLUSION OF THE PUBLIC
DECISION:
In accordance with
Section 100A(4) of the Local Government Act 1972, it was agreed to
exclude the press and public from the meeting during consideration
of the following item of business because of the likelihood that
otherwise exempt information, as described in paragraph 2 of
Schedule 12A of the Act (as amended) would be disclosed.
39.
HOUSING SERVICES REPORT
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The Committee to be updated on progress
relating to the Housing Services Report by the Internal
Auditor.
Minutes:
The Committee were verbally updated by Ian
Yates, the Strategic Director, on progress as a result of
recommendations made by Internal Audit regarding Housing
Services.
The
Committee were satisfied that appropriate action had been taken and
that the recommendations made by internal audit had been
implemented.
Members noted that policy changes regarding rechargeable repairs
would require new tenancy agreements. It was also noted that in the
future it is proposed that the Council would require pre payment
for non-essential repairs.
It was
noted that there was a temporary staff structure in place and that
there was still work to be done.
Members requested that a written report be provided to the
Committee at a future meeting by the Director of Housing
Services.
40.
ANY OTHER BUSINESS, WHICH THE CHAIRMAN, BY REASONS OF SPECIAL CIRCUMSTANCES, DECIDES IS URGENT.
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Minutes:
There was no other business for the Committee to
consider.
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