Agenda and minutes

To approve the minutes of the meetings held on 22 September 2010 (AU3) and to receive for information any matters arising from them. 

Minute 29/10 - Final Statement of Accounts 2009/10

Mr. Dyson confirmed that all matters raised in the Audit Commission’s Report had been addressed. 

The Minutes were approved and signed subject at Minute 29/10 ‘Final Statement of Accounts 2009/10’ to the deletion in paragraphs (a) 2 and (b) 2 of references to Ms Fetigan and the substitution of ‘Ms Grindley’. 

11:10

A representative of the Audit Commission will present the Letter (AU5 – circulated separately).

The  Letter summarises the findings of the 2009/10 audit.

The Committee is RECOMMENDED to note the report.

 The  Committee considered the Audit Commission’s Annual Audit Letter (Oxfordshire County Council Audit 2009/10) (AU5) which summarised the findings of the 2009/10 audit. The Audit comprised two elements: the audit of the Council’s financial statements and the Commission’s assessment of the arrangements to achieve value for money in use of resources. 

Ms. Grindley introduced the Letter and drew members’ attention in particular to future challenges including risk management and the introduction of IFRS (International Financial Reporting Standards).  She then responded to questions and comments including on page 4 clarification that the inclusion of the words ‘significant weaknesses’ in the heading ‘Significant weaknesses in internal control’ was standard Audit Commission Letter heading wording for all Councils’ Audit Letters;  gave some background at paragraph 25 to the calculations of the Council’s net pension liability against fund assets and the Council’s net worth;  and noted officers’ / members’ suggestion that paragraph 23 be updated to reflect this Council’s present understanding of the impact of the Spending Review.

The Chief Finance Officer circulated a ‘Response to the Annual Audit Letter Recommendation’ (a copy of which is attached to the signed Minutes) but confirmed that the Council’s Management Team had already been undertaking these actions.

The Chairman thanked Ms Grindley and colleagues for their work and report.

RESOLVED: to note the report. 

11:30

Report by Head of Strategy (AU6).

The Risk Management Annual Report summarises progress in this area since September 2009.

The Committee is RECOMMENDED to:

(a) note the progress to date; and

(b) provide any feedback on the report. 

The Committee considered the Risk Management Annual Report (AU6) which summarised progress in this area since September 2009.  Ms Dimmock-Smith introduced the report, drawing attention to the two key areas highlighted at paragraph 2 and the specific identified improvements.  Overall, considerable improvements had been made in the year and further development would continue in the year ahead.  Ms. Scane confirmed that the Cabinet received regular reports on strategic risks. 

Members noted that the Audit Working Group’s Work Programme included at the 6 January 2011 meeting the Risk Management Progress Report, which would highlight significant risks with details and context.

RESOLVED: to note the report. 

11:50

Report by Assistant Chief Executive & Chief Finance Officer (AU7).

The report (which is being considered by the Cabinet on 16 November 2010, the outcome of which will be reported orally at the meeting) sets out the Treasury Management activity undertaken in the first half of the financial year in compliance with the CIPFA Code of Practice. The report includes Debt and Investment activity, an update on Prudential Indicators, changes in Strategy, any Breaches of approved Strategy and a forecast of interest receivable and payable in the financial year.

The Committee is RECOMMENDED to consider and note the report.

The Committee considered the report (AU7) (which had been considered by the Cabinet on 16 November 2010) which set out the Treasury Management activity undertaken in the first half of the financial year in compliance with the CIPFA Code of Practice. Mr. Chapple introduced the report and drew attention to key points including the Debt and Investment activity, update on Prudential Indicators, changes in Strategy, any Breaches of approved Strategy and forecast of interest receivable and payable in the financial year.

Councillor Jim Couchman, Cabinet Member for Finance & Property informed the Committee that the Cabinet on 16 November 2010 had noted the report and recommended the Council to note the Council’s Mid Term Treasury Management Review 2010/11.  He thanked the Treasury & Pension Fund Investments team, and Mr Chapple in particular for their cautious and diligent work and updates to Cabinet and members. 

RESOLVED: to note the report and the Cabinet decision.  

12:10

Report by Assistant Chief Executive & Chief Finance Officer (AU8).

The report summarises the matters arising from the most recent meeting of the Audit Working Group (AWG).

The Committee is RECOMMENDED to note the report.  

12:30  Working Lunch

The Committee considered a report (AU8) on the following specific matters which had been considered by the Audit Working Group (AWG) on 6 January 2011: 

AWG4   Draft Report – ICT Overspend

AWG5   Update on Fairer Charging Performance

AWG6   Risk Management Progress Report

AWG7   Draft Revised Annual Governance Framework

AWG8   Annual Governance Statement 2009/10 Action Plan Progress

AWG9   Internal Audit Progress Report

AWG10 Work Plan (The Committee noted the addition of two topics for the 6 January 2011 AWG: Financial Management in Schools update (in the light of a recent Government announcement), and the performance of SAP in Schools.) 

RESOLVED: to note the report. 

12:45

Report by County Solicitor (AU9).

Further to the Audit Committee on 22 September, a review of the corporate governance assurance framework has been undertaken by the County Solicitor and Corporate Governance Assurance Group. The report and revised framework are submitted for the Committee to consider.

The Committee is RECOMMENDED to approve the revised Corporate Governance Assurance Framework.

Further to the Audit Committee on 22 September 2010 a review of the corporate governance assurance framework had been undertaken by the County Solicitor and Corporate Governance Assurance Group. The Committee considered a report (AU9) which reminded members of the rationale for revising the framework, and included at Annex 1 the revised framework which was submitted for comment and approval.

Mr. Clark outlined the background to the proposals in the light of the significant changes which were under way including the Council’s business strategy and Service reorganisation.  The Committee noted that the matter had been previously been considered by the Audit Working Group on 4 November 2010. 

During discussion minor changes to the revised framework were suggested, as follows:

Paragraph 6.6:  references to the former ‘Corporate Governance Scrutiny Committee’ to be deleted and substituted by ‘Strategy & Partnerships Scrutiny Committee’.

Paragraph 3.6.5 -  FMSiS  - add a footnote ‘subject to review’.

Diagram at Annex 1 – to indicate that arrows show information flows.

Paragraph 1.3 – amend first word to ‘In’.

RESOLVED: to approve the revised Corporate Governance Assurance framework subject to minor textual corrections, updates and clarifications. 

1:05

Report by Dr. Geoff Jones, Chairman, Audit Working Group (AWG), on behalf of the AWG (AU10).

On 21 April 2010 the Committee asked the AWG to investigate an overspend in the County’s ICT function in 2009/10. 

The Committee is RECOMMENDED to note the report, in particular:

(a)               the conclusion that measures taken to mitigate the ICT overspend in late 2008/9 probably contributed to a delay in taking effective cost-containment measures in 2009/10;

(b)               that there was over-commitment coupled with a lack of flexibility to respond to adverse events in early 2009;

(c)               that pressures on the core ICT budget continue, but that significant efficiencies have been achieved and more will arise from recent and forthcoming staff restructuring;

(d)               that project work, whether strategic or departmental, should not be undertaken by ICT without clear financial agreements with the relevant sponsoring agent (e.g. Directorate or Project Board); 

(e)               that there remain significant external risks to the ICT budget in respect of SAP, Microsoft and IBM applications;

(f)                 that ICT management are aware of current risks and have in place a new Corporate ICT Strategy and action plan to mitigate them.    

On 21 April 2010 the Committee asked the Audit Working Group (AWG) to investigate an overspend in the County’s ICT function in 2009/10. 

The Committee considered a report by Dr. Geoff Jones, Chairman, AWG on behalf of the Group (AU10).  The Group had carried out a comprehensive examination and the report set out details of its work, outlined the Council’s ICT function, looked at costs, funding & governance, the 2009/10 budget and context, the 2009/10 outturn, the reasons for the overspend, accountability & management action in 2009/10 and the 20010/11 prospects.  The report set out the Group’s conclusions / recommendations. 

Following debate and in noting the report the Committee RESOLVED: 

(a)       that a copy of the report (AU10) be sent to all county councillors;

(b)       (on a motion by Councillor Shouler seconded by Councillor Stratford and carried) to refer the report to the Cabinet together with an update by the Acting Head of ICT of how the matters raised in the report have been addressed; and

(c)        at the suggestion of Councillor Melinda Tilley, Chairman of the Strategy & Partnerships Scrutiny Committee, that the report be considered by that Committee on 18 November 2010 as part of item 8 'Corporate ICT Strategy', prior to Cabinet consideration of this matter on 21 December 2010.

(d)       to thank Dr. Jones for his work and the comprehensive report. 

1:25

Report by Head of Legal & Democratic Services (AU11).

The Committee is RECOMMENDED to review / update its Work Programme 2011.

The Committee reviewed and updated its Work Programme (AU11).  

Councillor Larry Sanders suggested ‘Continuing Care between the NHS and the Council’ as a possible future topic.  The Committee considered that this would be a matter for scrutiny rather than the Committee. 

RESOLVED: to adopt the Work Programme for the remainder of the Council Year.