Finance and Audit Sub-Committee

Tuesday 31 October 2000 at 3.00 pm

Present:  Councillors Jackson, McCabe, Mitchell, O’Rourke, Rebecchi and Robertson (Y).

Chair:  Councillor Jackson presided. 

In attendance:  Chief Executive, Depute Chief Executive, Mr G Douglas (for Director of Legal & Support Services), Director of Resource Services and Chief Internal Auditor.

Attending Also: Mr Gordon Jack, Partner, and Ms Shona Malcolm, Senior Manager, Messrs Pricewaterhouse Coopers, External Auditors.

Apologies:  Councillor Calvert.

972

Review of Audit Priorities

972

There was submitted a report by the Chief Internal Auditor on the current position relative to the assessment of Internal Audit’s operational and strategic priorities and progress in respect of compliance with the Action Plan agreed with External Audit. 

Decided:

(1)  that the Sub-Committee note that current audit priorities have been reassessed, with a resulting shift in focus towards systems audit work;

(2)  that the Sub-Committee note progress made in establishing a formal system to assess  staff training requirements;

(3)  that the Sub-Committee note that further reports will be submitted on both the Annual and the Strategic Audit Plans;

(4)  that the Sub-Committee note that Internal Audit staffing will be reassessed over the next month; and

(5)   that it be remitted to the Chief Internal Auditor to report on progress in respect of bank and control account reconciliations to the next meeting of the Sub-Committee.

      973

Revenue Monitoring - Review of Reporting Format

973

There was submitted a report dated 19 October 2000 by the Director of Resource Services reviewing the format of the revenue monitoring reports as requested by the Sub-Committee at its meeting on 19 September 2000 (Para 834) and setting out alternative formats and suggested refinements to the current reporting arrangements.

Decided:  that the Sub-Committee confirm that the monitoring report format shown in Appendix 4 to the report be utilised from the next Committee cycle.

      974

Internal Resources Interest

974

There was submitted a report dated 19 October 2000 by the Director of Resource Services on the projected net Internal Resources Interest shortfall of £439,000 which had been continued from the meeting held on 19 September 2000 for more detailed information.  The report (1) provided details relative to two of the factors contributing to the inaccurate projection, an error in the 1999/2000 projection and the changing profile of grant income, and (2) advised of action taken to address these issues.

Noted

      975

Reconciliation of Control Accounts

975

There was submitted a report dated 19 October 2000 by the Director of Resource Services on the reconciliation of control accounts following the identification of a £472,000 variance in the 1999/2000 Period 12 v Outturn comparison exercise reported to the Sub-Committee at the meeting held on 19 September 2000 (Para 837) and, as requested by the Sub-Committee, detailing the measures put in place in respect of each of the 4 items highlighted to ensure that the problems identified do not recur in future years.

Decided: 

(1)  that the report be noted; and

(2)  that the Sub-Committee await a report on the Internal Audit systems reviews of the Ledger and Creditors systems.

The Convener being of the opinion that the undernoted report by the Director of Resource Services was relevant, competent and urgent moved its consideration to allow the Sub-Committee to be informed of the latest position on the progress of the Audit Action Plan.  This was unanimously agreed in terms of the relevant Standing Order.

      976

Audit Action Plan Progress

976

There was submitted a report dated 30 October 2000 by the Director of Resource Services on the progress of the Action Plan relating to the issues raised in respect of the 1997/98 Audit of Accounts exercise.

Decided: 

(1)  that progress against the Action Plan be noted; and

(2)  that Members continue to monitor the position at future meetings of the Sub-Committee.