Audit And Risk Management Sub-committee - 18/06/2007

At a MEETING of the AUDIT AND RISK MANAGEMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 18th June, 2007.

Present:-

BAILIES

COUNCILLORS

In Attendance:-

Mark Taylor, Assistant Director, Audit Scotland

Francois de Villers, Senior Auditor, Audit Scotland

Councillor Joe MORROW, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I OVERVIEW OF THE ROLES OF EXTERNAL AUDIT, INTERNAL AUDIT AND RISK MANAGEMENT WITHIN LOCALAUTHORITIES

The undernoted documents were submitted to members of the Audit and Risk Management Sub-Committee for information.

(i) Audit Scotland Code of Practice (March 2007) (Item 1a)

(ii) CIPFA Code of Practice for Internal Audit in Local Government in the United Kingdom 2006 (Item 1b)

The Sub-Committee:-

(i) noted the content of each of the documents; and

(ii) the roles of External Audit Internal Audit and Risk Management as outlined by the relevant officers.

II EXTERNAL AUDIT REPORTS

There was submitted Report No 342-2007 by the Senior Audit Manager, Audit Scotland, providing members with the Audit Risk Analysis and Plan (ARAP) and Financial Statements Strategy for 2006/07 and the 2006/07 Priorities and Risk Framework - Position Statement finalised since the last Sub-Committee.

Members noted that the 2006/07 ARAP would outline the focus or the audit work for the year, which would be centred around the key risks faced by the Council and the actions management are taking to mitigate these risks. The accompanying Financial Statements Strategy set out the approach to the audit of the 2006/07 financial statement. The External Auditor advised that the findings from their 2006/07 work would be detailed in the Final Report to Members in October 2007.

It was further noted that the 2006/07 Priorities and Risk Framework - Position Statement, summarised the findings on how the Council was addressing national issues faced by local government.

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

III INTERNAL AUDIT REPORTS

There was submitted Report No 351-2007 by the Chief Internal Auditor providing members with a summary of the Internal Audit reports finalised since the last Sub-Committee.

Members noted that Executive Summaries for the reviews which had been finalised had been provided at Appendix A to the report. Within each Executive Summary the prime aim was to provide both members and management with key information which includes the reason for undertaking the review, summary financial data and statistics. The areas encompassed within the review and specific areas which were excluded, the principal audit objectives, an audit opinion on the adequacy of the systems and control framework of the area reviewed, the key conclusions based on the audit findings and recommendations.

The Sub-Committee noted the information detailed in this report.

IV RISK MANAGEMENT PROJECT WORK 2007/08

There was submitted Report No 343-2007 by the Risk and Business Continuity Manager providing an overview of proposed Risk Management project work in the current financial year.

The Sub-Committee agreed to:-

(i) approve the proposed Risk Management expenditure; and

(ii) agree the Council's Risk and Business Continuity Manager report, in more detail, on progress made with the areas identified for risk improvement.

V ANALYSIS OF SELF-INSURED EXPENDITURE 2001-2007

There was submitted Report No 344-2007 by the Risk and Business Continuity Manager providing an overview of how the Council's self-insured expenditure had performed against inflation related data and, more specifically, general insurance market conditions.

The Sub-Committee agreed to note performance of the Council's self-insured claims payments.

VI TRAINING FOR ELECTED MEMBERS

The Sub-Committee noted that the Head of Finance had undertaken to develop a training programme for elected members on the Sub-Committee.

Joe MORROW, Convener.

APPENDIX IV