Audit Committee

Thursday 17 March 2005 at 3.00 pm

Present:  Councillors McCabe, McCormick (M), Roach, Robertson, Stewart and White.

Chair:    Councillor McCabe presided.

In attendance:  Chief Executive, Depute Chief Executive, Director of Community Services, Director of Corporate Services, Director of Education Services, Head of Legal Services and Chief Internal Auditor.

Present Also:  Mrs A Cassells and Ms  E Barrowman, Audit Scotland.

Apologies:  Councillors Hill and Mitchell.

The following paragraphs are submitted for information only, having been dealt with under the powers delegated to the Committee.

266

Corporate Governance Framework

266

There was submitted a report dated 3 March 2005 by the Director of Corporate Services (1) providing an update on progress in completing the steps outlined in the Action Plan relative to achieving compliance with the Corporate Governance Framework and (2) indicating the Council’s current status with regard to the Framework.

Decided:

(1)      that the updated Statement of Compliance relative to the Corporate Governance Framework be approved;

(2)      that the report be otherwise noted;  and

(3)      that future reports to the Committee include a schedule listing all actions which have yet to be completed.

The meeting was adjourned at 3.08 pm and reconvened at 3.20 pm within the Chief Executive’s Meeting Room.

267

2003/04 Members’ Letter Action Plan

267

There was submitted a report dated 25 February 2005 by the Director of Corporate Services on the progress made in relation to the approved Action Plan resulting from the 2003/04 Final Accounts Audit process.

Decided:  that the Committee endorse the progress made in relation to the approved Action Plan as set out in the appendix to the report.

268

Main Accounting System Action Plan

268

There was submitted a report dated 25 February 2005 by the Director of Corporate Services on the progress made in relation to the Main Accounting System Action Plan resulting from the recent External Audit of the system.

Decided:  that the Committee endorse the progress made in relation to the Main Accounting System Action Plan as set out in the appendix to the report.

269

Internal Audit Strategic Audit Plan 2005/06 to 2007/08

269

There was submitted a report dated 24 February 2005 by the Director of Corporate Services appending the Internal Audit  Three Year Strategic Audit Plan covering the period 2005/06 to 2007/08.

Decided:  that the Committee endorse and adopt the Three Year Strategic Internal Audit Plan covering the period 2005/06 to 2007/08.

270

External Audit - 2004/05 Audit Planning Memorandum

270

There was submitted a report dated 25 February 2005 by the Director of Corporate Services appending the External Audit - Audit Planning Memorandum for 2004/05.

Decided:  that the External Audit - 2004/05 Audit Planning Memorandum be noted.

271

External Audit Reports

271

There was submitted a report dated 24 February 2005 by the Director of Corporate Services providing a summary of the main findings of the reports produced by Audit Scotland since the last meeting of the Committee.

Decided:

(1)      that the Committee approve the matters raised in the Executive Summary;  and

(2)      that reports providing an update on progress be submitted to the Committee until all matters have been concluded.

272

2004/05 - Weaknesses in Internal Control

272

There was submitted a report dated 28 February 2005 by the Director of Corporate Services (1) on a letter received from Audit Scotland identifying a number of significant weaknesses in the operation of key internal controls relating to (a) the new Housing Management Information System, (b) the Building Services Works Order Management System and (c) the Completion of Bank Reconciliations identified as part of the 2004/05 Audit and (2) appending an Action Plan detailing the progress of actions taken to address the matters raised.

Decided:

(1)      that the Committee note with concern the matters raised by Audit Scotland and also the significant progress being made to remedy these matters satisfactorily;

(2)      that it be remitted to the Chief Internal Auditor to submit a report on the Building Services Works Order Management System at the appropriate time, commenting on the input and output controls in place;  and

(3)      that it be remitted to the Director of Corporate Services to consider potential formats for the budget monitoring reports and to report thereon to the Committee.

273

Internal Audit - Quarterly Report

273

There was submitted a report dated 21 February 2005 by the Chief Internal Auditor appending the quarterly monitoring report on Internal Audit activity for the period to 23 February 2005.

Decided:  that the Committee endorse the continuing progress made by Internal Audit as detailed in the report.

It was agreed in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 as amended, that the public and press be excluded from the meeting for the following item on the grounds that the business involved the likely disclosure of exempt information as defined in paragraphs 1 and 14 of Part I of Schedule 7(A) of the Act.

274

Internal Audit - Quarterly Report:  Appendix

274

There was submitted appendix to Internal Audit quarterly monitoring report to 23 February 2005 providing details of four audits.

Decided:  that the action as detailed in the reports be endorsed.