Audit And Risk Management Sub-committee - 24/01/2005

At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE OF THE FINANCE COMMITTEEheld at Dundee on 24th January 2005.

Present:-

BAILIES

COUNCILLORS

In attendance:-

Pearl Tate, Senior Audit Manager, Audit Scotland

Owen Smith, Audit Manager, Audit Scotland

Councillor Regan, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I INTERNAL AUDIT STRATEGIC PLAN 2005/06 - 2008/09

There was submitted Report No 61-2005 by the Chief Internal Auditor submitting to members of the Sub-Committee the Internal Audit Strategic Plan for the 2005/06 - 2009/09 financial years as detailed at Appendix A of the report. The Strategic Plan outlined the areas to be audited and the resources required for the delivery of the Plan over the four year period.

The Sub-Committee noted the information contained in the report.

II INTERNAL AUDIT ANNUAL PLAN 2005/06 AND UPDATE ON INTERNAL AUDIT ANNUAL PLAN 2004/05

There was submitted Report No 62-2005 by the Chief Internal Auditor submitting to members of the Sub-Committee the Internal Audit Annual Plan for the 2005/06 financial year as detailed at Appendix A of the report and providing an update on the Internal Audit Annual Plan 2004/05. The Internal Audit Annual Plan provided an outline of the proposed audit work to be undertaken by the Internal Audit Service during the financial year. One of the main purposes of the Plan was to advise and inform Members and Management of the planned areas of activity. For the 2005/06 financial year, the estimated audit days available would be 1400 days.

The Sub-Committee noted the information contained in the report.

III INTERNAL AUDIT REPORTS

There was submitted Report No 63-2005 by the Chief Internal Auditor providing the Sub-Committee with a summary of the Internal Audit Reports finalised since the last Sub-Committee meeting. The day to day activity of the Internal Audit Services was primarily driven by the reviews included within the Internal Audit Plan. Executive summaries for the reviews which had been finalised were provided at Appendix A of the report. The full reports were available to members on request.

In response to Councillor Nigel Don, the Chief Internal Auditor undertook to provide a breakdown of figures relating to the 93 staff who had joined and the 137 staff who had left the Communities Department during 2002/03. The Chief Executive explained that many of these posts did not cover permanent, full time workers. In response to Bailie Powrie, the Corporate Finance Manager commented that staffing within the Finance Revenues Section had been much more settled over the last twelve months.

The Sub-Committee noted the information contained within the report.

IV INTERNAL AUDIT REPORT (DUNDEE COMMUNITY CARE PARTNERSHIP): FINANCIAL MANAGEMENT ANDREPORTING

There was submitted Report No 64-2005 by the Chief Internal Auditor providing the Sub-Committee with the Internal Audit Report relating to a review within the Dundee Community Care Partnership which had been finalised since the last Sub-Committee meeting. In order to ensure the efficient delivery of a Joint Internal Audit Service for the Initiative between Dundee City Council and NHS Tayside, the internal audit services of the respective organisations had developed a four year strategic internal audit plan to be delivered on a shared basis. The findings, audit opinion and action plan agreed with Management of both organisations was attached at Appendix A of the report.

In response to Councillor Morrow, the Corporate Finance Manager pointed out that the Partnership was a relatively new initiative which would take a little time to settle down. The Partnership brought together the systems of two organisations which were not the same and improvements had already been achieved.

The Sub-Committee noted the information contained within the report.

V EXTERNAL AUDIT REPORTS

Pearl Tate, Senior Audit Manager, commented on recent restructuring within Audit Scotland. She explained that Peter Tait, Chief Auditor, had now moved to a central government portfolio and Fiona Kordiak was now Assistant Director of Local Government Services. She herself had replaced John Philp who had recently retired and Owen Smith would continue as Audit Senior.

There was submitted Report No 65-2005 by Peter Tait, Chief Auditor, Audit Scotland, providing the Sub-Committee with External Audit Reports finalised since the last Sub-Committee meeting. The following reports relating to the 2003/04 audit had been finalised:-

(a) Statutory Performance Indicators,

(b) Valuation of Council Housing Stock,

(c) Modernising Government and Project Management

The Executive summary in each report set out the principal focus of the review and summarised the main audit findings. The Action Plans contained within the report detailed recommendations on the areas where further improvement could be achieved. Sixty out of sixty four performance indicators were assessed as reliable Councillor Don asked about the other four performance indicators the Corporate Services Manager stated that there was a difficulty with computer systems collecting the relevant data required to fulfil the SPI definitions but nevertheless the service was attaining high standards.

GEORGE REGAN, Convener