ANNEX 2

DISTRICT AUDITOR MANAGEMENT LETTER TO MEMBERS 1999/00

PROGRESS SUMMARY ON ACTIONS REQUIRED BY THE DISTRICT AUDITOR 

Page	Action required	
11

11	Ensure delivery of the BVPP action plan.

BVPP delivered in line with action plan.

Reflect the new requirements in the 2000/01 BVPP.

Responded to all eighteen of District Auditors recommendations. Three of these have still to be resolved.	
13	Take an active lead in delivering the new democratic structure.

New democratic structure established from 5 November 2001. 
	
15

15	Develop a corporate policy for charging, incorporating detailed guidance for managers. 

A detailed corporate policy for charging as well as other recommendations are being developed as part of a 'Best Value' review of our charging policies, which will report to the Best Value Committee in March 2002.

Incorporate a review of fee setting, linked to corporate objectives, into Best Value Reviews.

A detailed corporate policy for charging as well as other recommendations are being developed as part of a 'Best Value' review of our charging policies, which will report to the Best Value Committee in March 2002	
17	Prepare an Asset Management Plan that identifies the sustainable level of property portfolio to meet future service needs.

An asset management has been prepared.  It was submitted to GOSE and we have received a 'satisfactory' rating.  GOSE have provided comments, which we will address.  All establishments have been asked to complete sufficiency and suitability questionnaire forms which are now being analysed to provide data on the current shortcomings of the Council's property portfolio.  The next version of the asset management plan (to be submitted to GOSE in July 2002) will include a more detailed assessment of the Council's property needs.
	
19	Continue to develop service and financial planning, especially in respect of capital.

The Council has now completed its capital strategy, which was submitted to GOSE in July 2001 and forms apart of the basis of capital allocations for 2002/2003. The Council now has in place a Capital Programme and Asset Management Steering Group, which is a working group of the County Council Management Team and advises the Executive on Capital Programme issues.	
20	Develop the strategic co-ordination role as Community Safety moves into delivery phase. 

OCC has made a good start; strong links have been made with district councils, a cross county group has been agreed a timetable on the establishment of the Local Strategic Partnership and the creation of a Community Strategy.	
24	Ensure the timely and accurate delivery of performance indicator information.

Audit and Risk Management Services have been involved in reviewing the production of performance information, which should lead to future improvements in production of performance indicators.
	
26	Monitor the impact of the Financial Control Environment Strategy.

Impact is being monitored by Assistant County Treasurers. 
	
28	Develop a protocol covering preparation and submission of grant claims and monitor its implementation. 

A Grants Protocol has been agreed with district audit. It is nevertheless important that its effectiveness is monitored when the 2001/02 accounts are closed. It was introduced too late to have an impact on 2000/01.	
33	Undertake close monitoring of the performance of trading accounts under the Best Value accounting regime.

Training and advice has been given for the accounting arrangements resulting from Best Value. Advice on Trading Accounts was given but further work on the operation of Trading Accounts is still required.	
34	Revisit assumptions contained within externalisation and other financial appraisals and look continually to develop the Council’s approach.

We have not yet revisited assumptions contained within externalisation. However we undertook significant detailed work into HOP transfer to validate figures prepared by Social Services.
We also undertook a significant amount or work on the City Schools Reorganisation Project to ensure deliverability within resources.
We intend to look again at our project appraisals with a view to improvement.	
36	Undertake an assessment of the departmental understanding of the role of Legal Services.

New service level agreements completed, corporate role delegated and management arrangements to be changed..	
39	Update the Council’s Fraud and Corruption Strategy to take account of the Public Interest Disclosure Act after the joint review.

This was updated and approved by the Best Value and Audit Sub-Committee on 5 October 2001