Audit And Risk Management Sub-committee - 23/09/2002

At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on 23rdSeptember, 2002.

Present:-

Councillor George REGAN

Councillor Julia M STURROCK

Councillor Willie SAWERS

Councillor David BOWES (substitute for John CORRIGAN)

Councillor Neil I C POWRIE (substitute for Bruce MACKIE)

In Attendance:

Iain BLACK, Audit Scotland

Apology:

An apology for absence had been received from Peter Tait, Audit Scotland.

Councillor REGAN, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I MR IAIN BLACK, AUDIT SCOTLAND

The Convener noted that Iain Black was due to retire shortly and wished him well on behalf of the Sub Committee.

II EXTERNAL AUDIT - ABRIDGED REPORTS

There was submitted Report No. 696-2002 by the External Auditors covering the following:-

(a) SCHOOL PROPERTY RISK MANAGEMENT FOLLOW-UP

The Sub-Committee noted that two outstanding agreed actions identified in previous External Auditors' Action Plan had been fully or considerably implemented.

(b) ISIS PAYROLL SYSTEM

The Sub-Committee noted that twenty five out of twenty nine controls were in place with a further three to be introduced shortly. One recommendation on password time-outs had not been agreed as the recommended change would require the introduction of a new payroll system.

III INTERNAL AUDIT CHARTER

There was submitted Report No. 697-2002 by the Chief Internal Auditor. One of the recommendations arising from the External Auditor's local report on the review of the External Audit Arrangements was that a specific Audit Charter should be developed for Dundee City Council's Internal Audit Service and should be formally agreed by the Audit and Risk Management Sub-Committee.

The Sub-Committee approved the Internal Audit Charter as detailed in the Report.

IV INTERNAL AUDIT ABRIDGED REPORTS

There was submitted Report No. 698-2002 by the Chief Internal Auditor covering the following:-

(a) HOUSING - SYSTEMS REVIEW OF THE DECORATION ALLOWANCE SCHEME FOR RELETS

(b) HOUSING - SYSTEMS REVIEW OF HOME LOSS PAYMENTS

(d) FINANCE - SYSTEMS REVIEW OF TRAVEL AND SUBSISTENCE EXPENSES

(e) HOUSING - SYSTEMS REVIEW OF TENANTS? ALLOWANCES PAID BY THE IMPROVEMENTS AND MAINTENANCE UNIT

(f) HOUSING - SYSTEMS REVIEW OF TENANTS? ALLOWANCES PROCESSED BY THE AREA HOUSING OFFICES

(g) ECONOMIC DEVELOPMENT - FOLLOW-UP REVIEW OF AVIATION FUEL AT DUNDEE AIRPORT

(h) HOUSING - REVIEW OF COUNCIL HOUSING ASSET REGISTER AND COUNCIL HOUSE SALES

(i) EDUCATION - EDUCATION MAINTENANCE ALLOWANCES PILOT SCHEME

(j) ENVIRONMENTAL AND CONSUMER PROTECTION -YEAR END STOCKS 2001/02

(k) FINANCE - OUTSTANDING LODGEMENTS IN THE BANK ACCOUNT

(l) EDUCATION - SYSTEMS REVIEW OF TRAVEL AND SUBSISTENCE EXPENSES

It was noted that this item provided a precis of specific reviews which had been undertaken by the Internal Audit Service. In particular, the review on travel and subsistence complement the External Auditors' Payroll Report at item 1(b) of this minute.

The Sub-Committee noted the recommendations contained in the Report in respect of (a) - (l) above and the actions being taken to implement these recommendations.

IV RISK MANAGEMENT PLAN 2002/03

There was submitted Report No 699-2002 by the Risk Manager requesting the Sub-Committee to consider and approve a proposed Action Plan which covered a six month period due to the recent expansion of the Audit Sub-Committee to incorporate Risk Management.

The Risk Manager referred to the present Departmental risk profiling which was ongoing. The Plan outlined Risk Management Assignments and Other Work to be addressed including the renewal of all Dundee City Council insurance cover where it was noted difficult conditions existed in the current insurance market place. The Report also detailed the present scope of work activity within the Insurance and Risk Management Section.

The Sub-Committee approved that the Action Plan as detailed in the Report.

V VANDALISM WORKING GROUP

The Risk Manager gave a progress report on the activities of the Vandalism Working Group set up to tackle the problem. A Community Safety Awareness Week was to be held in October to raise public awareness of vandalism and seeking public co-operation in tackling vandalism across the City. A series of projects relating to vandalism would be lodged during the Awareness Week with Tayside Police co-operating with the City Council.

The Sub-Committee noted the progress being made.

The Sub-Committee resolved under Section 50(a) of the Local Government (Scotland) Act 1973 that the public and press be excluded from the meeting in order that the undernoted item of business be considered in private on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 14 of Part 1 of Schedule 7(a) of the Act.

VI SPECIFIC INVESTIGATION UPDATE

The Sub-Committee considered Report No 700-2002 by the Chief Internal Auditor into an investigation and noted the remedial action being taken as a result of this investigation.

GEORGE REGAN, Convener.

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