At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on 20th March 2006.

Present:-

COUNCILLORS

In Attendance:-

Pearl TATE, Senior Audit Manager, Audit Scotland

Councillor MACPHERSON, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I EXTERNAL AUDIT REPORTS

There was submitted Report No 78-2006 by Pearl Tate, Senior Audit Manager, Audit Scotland, advising members of external audit reports finalised since the last Sub-Committee meeting. Reports relating to the 2004/05 audit on Asset Management Planning and Following the Public Pound had been finalised. The summary findings in each report set out the principal focus of the reviews and summarised the main audit findings. Action plans contained detailed recommendations on the areas where further improvements could be achieved. These reports concluded the agreed 2004/05 external audit plan.

The Sub-Committee noted the reports on Asset Management Planning and Following the Public Pound.

II INTERNAL AUDIT REPORTS

There was submitted Report No 79-2006 by the Chief Internal Auditor providing a summary of the Internal Audit Reports finalised since the last Sub-Committee meeting. The Chief Internal Auditor explained that the reviews were primarily driven by the contents of the Internal Audit Plan.

The Chief Internal Auditor explained that the reviews covered a wide range of subject matter and departments covering, for example, Recruitment and Selection, Repairs and Maintenance, Council Tax Discounts and Superannuation Investments. Copies of the full reports were available to members from the Finance Department upon request.

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

III INTERNAL AUDIT REPORT (DUNDEE COMMUNITY CARE PARTNERSHIP): CORPORATE GOVERNANCE, ACCOUNTABILITY AND RISKMANAGEMENT

There was submitted Report No 213-2006 by the Chief Internal Auditor providing an 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 this 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 plan was reported to the Dundee Health and Local Authority Forum in December 2003 and detailed the areas to be covered.

A review of Corporate Governance, Accountability and Risk Management within the Dundee Community Care Partnership had been carried out by the internal audit service of the NHS Partner and the subsequent report detailing the findings, audit opinion and the action plan agreed with Management of both organisations was attached as an Appendix to the report.

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

IV FRAUD GUIDELINES

There was submitted Report No 80-2006 by the Chief Internal Auditor submitting to the Sub-Committee the proposed revised Fraud Guidelines for approval. As part of the Internal Audit Plan for 2005/06 a review of the Council's existing Fraud Guidelines had been undertaken. The City Council was committed to protecting public funds and responding effectively to fraud when it occurred including taking legal and/or disciplinary action where appropriate.

The Sub-Committee approved the revised Fraud Guidelines attached as Appendix A and agreed that these should be cascaded throughout the Council.

V RISK MANAGEMENT ACTION PLAN 2004-2007

There was submitted Report No 77-2006 by the Risk and Business Continuity Manager providing an update on the 2004-2007 Risk Management Action Plan for Elected Members' information. The Plan was presented to the Sub-Committee in May 2005.

The Sub-Committee agreed to note the updated 2004-2007 Risk Management Action Plan and the progress being made.

FRASER MACPHERSON, Convener.