The Inverclyde Council

Tuesday 26 September 2000 at 4.00 pm

Present:  Provost Roach, Councillors Blair, Calvert, Campbell, Hunter, McCabe, McCormick, Mitchell, Moody, Morrison (D), Morrison (M), Nimmo, O'Rourke, Rebecchi, Robertson (A), Robertson (Y) and White.

Chair:  Provost Roach presided. 

In attendance:  Chief Executive, Depute Chief Executive, Director of Community and Protective Services, Mr J Sutherland (for Director of Education Services), Director of Information Services, Director of Legal and Support Services, Director of Resource Services and Director of Social Work and Housing Services.

Apologies:  Councillors Jackson and McGhee.

853

Inverclyde Council Audit of Accounts 1997/98

853

There were submitted (1) report by the Controller of Audit (SR2000/4) comprising comments on Inverclyde Council's formal response to statutory report 2000/2, (2) the findings of the Accounts Commission following the hearing held on 23 August 2000 on issues arising from Inverclyde Council's Audit of Accounts 1997/98 and its arrangements for financial management and (3) report by the Chief Executive requesting Members to consider the above report and findings and determine a response.  (Councillor Blair entered the meeting during consideration of this item of business).

Decided:  on the motion of Councillor O'Rourke seconded by Councillor Mitchell that the response of Inverclyde Council to the comments by the Controller of Audit (SR2000/4) relative to the Council's formal response to statutory report 2000/2 and the findings of the Accounts Commission following the hearing held on 23 August 2000 be as follows:-

Financial Stewardship

The Elected Members accept that ultimately they have responsibly for the financial stewardship of the Council.  To support this role Members will continue the practice of meeting with the External Auditor following completion of audits to discuss the Auditor's report and recommendations as a matter of routine and will also meet with the Auditor to discuss audit related matters whenever appropriate.  Members will also have private meetings with the External Auditor as part of the scrutiny process.

The Finance and Audit Sub-Committee which has a remit embracing all Audit Committee principles is the established forum for meetings with the External Auditor.

Action Plan

The Council agreed the preparation of an Audit Action Plan in June this year following discussions with the External Auditor.  The Plan was prepared in agreement with the External Auditors and is designed to implement the required improvements in financial controls.  The Plan is cross referenced to the report from the External Auditors, contains clear accountabilities and contains timescales for completion of each item.  Two progress reports have already been considered by the Council's Policy & Strategy Committee and updated reports will be submitted to Committee on a regular basis.  This enables Elected Members to èscrutinise progress, to receive explanations for any variances and to receive assurances that matters are being properly and timeously actioned.

Finance Services - Staffing

Elected Members considered a report on Finance Services staffing in January 2000 following an overall review by the Director of Resource Services.  All the proposals including the appointment of additional staff were agreed.

Prior to that Elected Members had considered reports on individual issues and posts within sections of Finance Services (including Internal Audit) and regradings, additional posts and additional overtime were agreed.

Elected Members will be considering a further report on staffing requirements in the light of progress made to ensure that sufficient staff numbers and staff of the appropriate quality are in post to provide a step change in internal control, financial systems and production of management information.

Internal Audit

Elected Members will be considering a report from the newly appointed Chief Internal Auditor regarding Internal Audit staffing and training needs.  Elected Members will have input to the preparation of the Audit Plan taking advice from the External Auditor as necessary, to ensure that matters of concern to Members are investigated and reported to the Finance and Audit Sub-Committee.

Conclusions

The Elected Members consider that the action taken and the matters being progressed address the Accounts Commission Findings.

Continuous review and scrutiny are built-in to the Council's Committee process to provide Members with ongoing assurance that there is a sound regime of financial management.