Finance & Audit Sub-Committee

Tuesday, 9 October 2001 at 3 pm

Present:  Councillors Jackson, McCabe, O’Rourke, and Rebecchi.

Chair:  Councillor O’Rourke presided. 

In attendance:  Chief Executive, Depute Chief Executive, Director of Legal & Support Services and the Head of Accountancy Services.

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

Apologies:  Councillors Calvert, Mitchell and Robertson (Y).

892

External Auditors Annual Report to Members 2000/2001

892

There was submitted a report dated 1 October 2001 by the Chief Executive on the Annual Report by the Council’s appointed External Auditors, PricewaterhouseCoopers for the period 1 April 2000 to 31 March 2001, a copy of which was appended to the report. 

Mr Jack addressed the Sub-Committee on a number of items contained in the executive summary to the report and answered questions from Members.

Decided:

(1)  that the Sub-Committee note the matters raised in the audit of the 2000/2001 Accounts, the comments by the External Auditors and the matters to be addressed;

(2)  that the Action Plan, as detailed in Appendix 1 to the report, be agreed and implemented by the appropriate Officers;

(3)  that it be remitted to the Director of Finance Services to report on the progress of the Action Plan by February 2002;

(4)  that the Sub-Committee continue to monitor the overall position; and

(5) that the Sub-Committee convey its thanks and appreciation to PricewaterhouseCoopers for the work undertaken since their appointment as the Council’s External Auditors.

It was agreed in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 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 6 & 9 of Part I of Schedule 7(A) of the Act.

893

Internal Audit Services

893

There was submitted a report dated 26 September 2001 by the Director of Finance Services outlining the options available to ensure that an adequate level of Internal Audit Service is provided to the Council, consideration of which had been continued from the March meeting of the Committee (Para 255).

There was circulated to the Sub-Committee, a letter dated 8 October 2001 from UNISON making representations with regard to the future provision of Internal Audit Services.­

Decided:

(1)  that the Sub-Committee note the outcome of the Audit (Scotland) Study of Internal Audit Services in Inverclyde Council and the significant levels of improvement required to raise the service to an acceptable standard;

(2)  that the vacant post of Chief Internal Auditor be not filled;

(3)  that it be remitted to the Head of Personnel Services to advertise the post of Senior Auditor;

(4)  that authority be delegated to the appropriate Officers in the usual manner to enter into a one year partnership with PricewaterhouseCoopers to provide internal audit services to the Council and ensure that the required improvements are achieved; and

(5)  that it be agreed that a review of the partnership arrangements be carried out after a period of 6 months and that this include recommendations on appropriate options for the future of Internal Audit Services beyond the year’s partnership agreement.