Audit Committee

Tuesday, 18 June 2002 at 3.30 pm

Present:  Councillors Calvert, Mitchell, McCabe, O’Rourke and Rebecchi.

Chair:    Councillor Mitchell presided.

In attendance:  Chief Executive, Depute Chief Executive, Director of Finance Services, Director of Legal & Support Services and Mr G Allan, Senior Internal Auditor.

Attending Also: Mr Gordon Jack, Partner and Miss Shona Malcolm, Senior Manager, Messrs PricewaterhouseCoopers, Internal Audit Partner.

Apologies:  Councillors Jackson and Robertson (Y).

554

External Audit Planning Memorandum - 2001/02 to 2005/06

554

There was submitted a report dated 23 May 2002 by the Director of Finance Services providing an overview of the External Audit approach to be taken by Audit Scotland for the 5 year appointment 2001/02 to 2005/06 and outlining the planned Audit outputs, all as detailed in the Audit Planning Memorandum 2001/02 to 2005/06 appended to the report.

Decided:  that the External Audit Planning Memorandum covering the years 2001/02 to 2005/06 appended to the report be noted.

  555

“A Job Worth Doing” - Update

555

There was submitted a report by the Director of Finance Services on the progress made to date in improving Internal Audit Services in response to the External Audit report “A Job Worth Doing” which was appended to the report.

Decided: 

(1)   that the progress update on the External Audit Report “A Job Worth Doing” be approved; and

(2)   that further progress reports be submitted to the Committee as appropriate.

  556

Internal Audit - Annual Report 2001/02

556

There was submitted a report dated 27 May 2002 by the Director of Finance Services appending the Internal Audit Annual Report 2001/02.  The report advised that the Annual Report had highlighted concerns regarding the level and extent of investigations undertaken into Leisure Trust activities during 2001/02 and the early part of 2002/03 and  had also concluded that, on the basis of Internal Audit work undertaken, internal control procedures in certain of the Leisure Trust’s operations did not operate as intended during the period under review. 

The Committee agreed to resume consideration of the matter relative to the investigations into the Leisure Trust activities at a later part of the meeting following the exclusion of the public and press as the discussion would involve the likely disclosure of exempt information as defined in paragraph 6 of Part I of Schedule 7(A) of the Local Government (Scotland) Act 1973.z

Decided:  that the Internal Audit Annual Report for 2001/02, including the concerns expressed regarding investigations into the Leisure Trust activities, be noted.

  557

Internal Audit - Operational Plan 2002/03

557

There was submitted a report dated 27 May 2002 by the Director of Finance Services appending the Internal Audit Operational Plan 2002/03 to 30 September 2002.

Decided:

(1)  that the Internal Audit Operational Plan for 2002/03 covering the first 6 months to 30 September 2002 be approved; and

(2)  that the 3½ year Operational Plan to commence on 1 October 2002 be submitted to the Committee prior to 30 September 2002.

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 of business on the grounds that the business involved the likely

disclosure of exempt information as defined in paragraph 6 of Part I of Schedule 7(A) of the Act.

  558

Internal Audit - Leisure Trust

558

The Committee resumed consideration of this item, in which Councillor O’Rourke declared an interest as a Director of Inverclyde Leisure, relating to investigations undertaken into Leisure Trust activities.  Members were provided with clarification of the audit arrangements relative to Inverclyde Leisure and the reporting mechanisms put in place in terms of the funding agreement with the Council.  Reference was also made to the obligation on the Council to comply with the principles relating to the Code of Guidance on funding external bodies and Following the Public Pound and to the need for sound financial stewardship.