Agenda, decisions and minutes

Apologies were received from Councillor John Tanner.

There were no declarations of interest.

To approve the minutes of the meeting held on 8 March 2017 (AG3) and to receive information arising from them.

The minutes of the meeting held on 8 March 2017 were approved and signed.

Councillor Bartholomew told the meeting that he will bring a motion to Council regarding speaking rights for city and district councillors at County Council planning meetings.

RECOMMENDATION: That the Committee agrees to change the date of the Committee meeting originally scheduled for 12 July 2017 to take place on 5 July 2017, starting at 2pm.

RESOLVED: to change the date of the Committee meeting originally scheduled for 12 July 2017 to take place on 5 July 2017, starting at 2pm.

1.10pm

Report by the Chief Internal Auditor (AG6).

This is the annual report of the Chief Internal Auditor, summarising the outcome of the Internal Audit work in 2016/17, and providing an opinion on the Council's System of Internal Control. The opinion is one of the sources of assurance for the Annual Governance Statement.

The committee is RECOMMENDED to consider and endorse this annual report.

Ms Cox summarised the annual report.  In last year’s report the Opinion was ‘qualified’ whereas this year it has improved to ‘reasonable’.  All reports were finalised on time.  Two reports resulted in a Red rating and the Audit Working Group is monitoring these.

Members raised a number of issues and officers responded as follows:

·         Although local authority responsibility for schools is declining, proportionate checks are continuing on schools to ensure they are managing their budgets.

·         The investigation reported on Agenda page 43, involving a payment of £2,400 per week, is not exceptionally large.  That case has been resolved but others have been picked up requiring additional actions.

·         The increase in travel expense claims is being examined under a general review of travel expenses expected to be completed by the end of June.

·         The Council has powers to suspend budgets or otherwise intervene with maintained schools.

·         Awareness training for social workers with regard to direct payments has been very beneficial.  Payment cards will be rolled out in Q2 and Q3 which will give complete visibility, rather than having to seek information.

·         In response to suggestions that certain ratings should be Red rather than Amber, Ms Cox stated that in those cases there were no material inaccuracies that would justify a Red rating.   Amber ratings are treated the same as Red in that the implementation of actions is expected.

·         Local Authority Governors in maintained schools are always notified of any issues that arise.

·         Continuing concerns raised regarding the highways contract will be addressed in the report coming to the Committee at the July meeting.

RESOLVED: to endorse the annual report.

1.40pm

Report by the Director of Finance (AG7).

This report presents the Internal Audit Strategy and Annual Internal Audit Plan for 2017/18.

The committee is RECOMMENDED to:

(a)          Approve the Internal Audit Strategy for 2017/18 and 2017/18 Internal Audit Plan; and,

(b)          Approve the 2017/18 Counter-Fraud Plan.

Ms Cox introduced and summarised the report.  The main plan in Appendix 1 had been agreed with the Directors and External Auditors.

Members asked about the chargeable days for the Oxford City Council Investigation Team and if other districts could be involved.  Mr Dyson responded that a regional hub had been proposed but consensus could not be achieved.  The County Council was successful in a bid for central funding and funds the reviews but the City Council controls them.  There are currently arrangements with Vale of White House and South Oxfordshire County Council on staffing resources.  While the reviews are the responsibility of the city and district councils, the County Council also benefits.

Clarification was sought as to whether the Committee should note, approve or endorse the plan.  Mr Graham agreed that the word “endorse” was appropriate.

RESOLVED: to

a)    endorse the Internal Audit Strategy for 2017/18 and the 2017/18 Internal Audit Plan; and

b)   endorse the 2017/18 Counter-Fraud Plan.

2.10pm

Report by the Chairman of the Audit & Governance Committee to be presented to The Council (AG8).

The Annual Report sets out the role of the Audit & Governance Committee and summarises the work that has been undertaken both as a Committee and through the support of the Audit Working Group in 2016/17.

The Committee is RECOMMENDED to consider the Annual Report and suggest any additions or amendments.

The report was presented by the Chairman and he invited comments and suggestions.

Members particularly acknowledged the valuable work of the Chairman of the Audit Working Group.

It was noted that, on the official record of attendance at Committee meetings, a Member of the Committee is recorded as present even if they attend only part of the meeting.  It was suggested that the record should reflect part attendance.

It was agreed that the reference in the report to the former Audit Commission in Annex 1 paragraph 5 should be deleted.

2.50pm

A representative from the external auditors, Ernst & Young, will attend to present the following item:

·         Progress Report

Mr Witty presented the update and fee letters.  It is expected that with improved controls the Auditors will need less substantive testing than last year.  Work has started on the new Adult Social Care systems.  There are no increases in fees since last year.

Asked if his company contracted out IT reviews, Mr Witty confirmed that they did not.

RESOLVED: to note the report and fee letters.

2.30pm

This Scrutiny Annual Report (AG9) provides a summary of the work of the council’s overview and scrutiny function in 2016/17. This function includes the council’s three Overview and Scrutiny Committees, and any Cabinet Advisory Groups which have been appointed by Cabinet in this time

The Committee is asked to consider the report prior to full Council in May.

Mr Threadgold presented and summarised the annual report.  He also reported that independent training on scrutiny will be included in the induction programme for new and continuing Members following the Council elections.

Members made a number of comments and suggestions on the report as follows:

·         There should be a separate scrutiny committee on Social Care as it accounts for half the council budget.

·         On Agenda page 106, the second bullet point, under “Workplace Charging ….” doesn’t appear to relate to the heading and should be separate.

·         The report outlined what was done very well but didn’t really say what was achieved.

·         The S106 review should have a section to itself to reflect its importance and the fact that Members thought it was an exemplary “deep-dive”.

·         It was noted that there were no call-ins this year.

Mr Graham added that a parliamentary select committee is currently examining scrutiny as it is generally viewed as not being as successful as it could be.

RESOLVED: to note the report.

3.10pm

Report by the Chief Fire Officer (AG11)

The Fire and Rescue National Framework for England (the Framework) sets out a  requirement for fire and rescue authorities to provide an annual statement of assurance on financial, governance and operational matters and to show how they have due regard to the requirements of the Framework and the expectations set out in authorities’ own integrated risk management plans.

To demonstrate this, the Framework requires that each authority must publish an annual statement of assurance. The Statement of Assurance 2016/17 document is intended to meet the obligation to produce this statement through reference to public webpages, existing reports and documents.

The Committee is RECOMMENDED to approve the report.

Mr Furlong introduced the report.  He stated that, the CIPFA financial information is not yet available for the reporting year 2015-16, so the 2014-15 information has been retained. This will be updated later in 2017 once CIPFA release the data.

Members of the Committee raised points and officers responded as follows:

·         The response model adopted with neighbouring counties’ services ensures that the quickest service will attend even if out of area.

·         It is hoped to fill the vacant position of Area Manager Collaboration with a potential secondment in the next couple of weeks.

·         The service has started to assist with medical emergencies and a Memorandum of Understanding on cardiac arrests is in progress.

·         The service also assists with effecting entry to premises as the police response can be delayed due to pressures on their resources.

·         OFRS properties have been included in the Council’s review and information that will be available on the intranet will include their facilities.

RESOLVED: to note the report.

3.40pm

Report by the Director of Law and Governance and Monitoring Officer (AG12).

The Audit & Governance Committee has the responsibility for approving the Council’s Annual Governance Statement (AGS). 

Local authorities are required to prepare an AGS so as to be transparent about their compliance with good governance principles.  This includes reporting on how they have monitored and evaluated the effectiveness of their governance arrangements in the previous year, and setting out any planned actions in the coming period.

This report outlines the changes to the format of the Statement as recommended in good practice guidance, sets out a review of actions from last year’s Statement and includes a proposed set of actions for the 2017/18 year.

The Committee is RECOMMENDED to approve the Annual Governance Statement 2016/17, subject to the Director of Law and Governance making any necessary amendments in the light of comments made by the Committee, after consultation with the Leader of the Council, Chief Executive and Section 151 officer.

Mr Graham introduced the report which had already been before the Audit Working Group (AWG).  It outlined changes in the format of the Annual Governance Statement which now focuses on

·         an ‘opinion’ on the Council’s governance arrangements,

·         a review of effectiveness,

·         a review of last year’s action plan, and

·         an action plan for the coming year.

Members welcomed the new format and noted that points raised by the AWG had been taken up.  Mr Jones expressed concern that when actions are incomplete and carried forward to the following year, the Committee doesn’t see that they have been completed.

RESOLVED: to approve the Annual Governance Statement 2016/17, subject to the Director of Law and Governance making any necessary amendments in the light of comments made by the Committee, after consultation with the Leader of the Council, Chief Executive and Section 151 officer.

4.00pm

Report by the Director of Finance (AG13)

This report presents the matters considered by the Audit Working Group Meeting of 5 April 2017.

The Committee is recommended to note the report.

The report was introduced by Ms Cox.

Mr Dyson reported that most Member meetings scheduled for May and June have been postponed due to the general election called for 8 June 2017.  As a result the next Audit Working Group meeting will not now take place until late August or early September.  In view of that, the membership of the working group can be decided at the Committee’s July meeting.

RESOLVED: to note the report.

4.10pm

To review the Committee’s Work Programme (AG14).

The Committee agreed their work programme subject to the following change:

The meeting originally scheduled for 12 July 2017 will now be held on 5 July 2017 and the Appointment of the Audit Working Group will be added to the items on the agenda for that meeting.