Agenda and minutes

An apology was received from Maria Grindley (Ernst & Young).

To approve the minutes of the meetings held on 17 April 2013 and 14 May 2103 (AG3) and to receive information arising from them.

The Minutes of meetings held on 17 April 2013 and 14 May were approved and signed subject to amending:

·                      the attendance list for the 17 April 2013 to show Dr Geoff Jones as a non voting member;

·                      the dates of signing on each set of minutes to show 2013.

Minutes 14 May 2013 – 25/13 Appointments

The Monitoring Officer confirmed that the Appeals & Tribunals Sub-Committee would not be taking formal decisions.

2.10

The County Solicitor & Monitoring Officer reports as follows:

The County Council has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government.

Corporate Governance is the framework of accountability to users, stakeholders and the wider community, within which organisations take decisions, and lead and control their functions, to achieve their objectives.

The quality of corporate governance arrangements is a key determinant of the quality of services provided by organisations.

This Statement (AG5) explains how the County Council has complied with the Code in 2012/13.  It satisfies the requirement to produce an Annual Governance Statement in the Accounts and Audit Regulations 2011.

For the first time, in line with the December 2012 Addendum to CIPFA guidance the Statement mentions our arrangements for the head of paid service and the monitoring officer and has an explicit review of effectiveness.  The separate statement of assurance needed by the Fire and Rescue service is also mentioned.

The Statement includes an update on actions identified last year to be carried out during 2012/13 and new actions to be followed up in 2013/14.

The Committee is RECOMMENDED to approve the Annual Governance Statement 2012/13, subject to the County Solicitor & Monitoring Officer, 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.

The Committee considered the Annual Governance Statement explaining how the County Council had complied with the code of corporate governance with an update on actions identified last year to be carried out during 2012/13 and new actions for 2013/14.

Specific issues raised concerned:

·                      improvements to consultation between members and directorates;

·                      future governance of schools;

·                      governance arrangements for and adequate scrutiny of partnership work;

·                      SECAG group action plan and the need to try and avoid multiple targets for the end of year;

·                      Benchmarking information on resources i.e staff, meetings etc

The Committee noted textual amendments to paragraph 30 (delete second ICT in line 1) and paragraph 77, line 1 amend further enhance to read “enhance further”.

RESOLVED: to approve the Annual Governance Statement 2012/13, subject to the County Solicitor & Monitoring Officer, 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.

2.30

Report by the County Solicitor & Monitoring Officer (AG6) (REPORT TO FOLLOW)

The governance review undertaken by the Council and approved on the 2 April made changes to the decision making structure of the Council. One of these changes was a restructuring of the Council’s scrutiny committee arrangements.

This Committee had asked for a report setting out some options for establishing a working relationship between the Audit & Governance Committee and the newly formed Performance Scrutiny Committee.  This is important because both Committees rightly contain in their terms of reference aspects of performance management of the Council. This report therefore sets out some options based on a consideration of each committees’ roles and responsibilities.

The Committee is RECOMMENDED to consider the options for closer working between the Audit & Governance Committee and the Performance Scrutiny Committee set out in paragraphs 6-7 and to comment on a potential way forward.

Following approval by Council of the restructuring of the Council’s scrutiny arrangements the Committee considered a report (AG6) setting out some options for establishing a working relationship between this Committee and the newly formed Performance Scrutiny Committee noting the following amendments were noted: paragraph 5 asses to read assess

It was noted that an abridged presentation on the role of the Audit & Governance Committee would be given immediately before the next meeting of the Performance Review Scrutiny Committee.

RESOLVED:

(a)               to promote joint working planning between the two committees on an as and when required basis to be agreed by the two Chairmen and that no specific meetings be scheduled;  

(b)               an invitation be extended by the Audit & Governance Committee for the Chairman of the Performance Committee, or their nominee, to attend the Audit & Governance Committee meetings and the Performance Scrutiny Committee be invited to reciprocate accordingly.

2.50

Report by the Monitoring Officer (AG7)

The Audit & Governance Committee has taken over certain responsibilities from the Council’s former Standards Committee with regard to the governance and standards of conduct for elected and co-opted members.  Consequently, the Monitoring Officer will report annually to this Committee on actions and issues in that regard that have occurred in the previous year. This report therefore summarises certain activities for the year 2012/13 and uses, as a guide, the terms of reference that crossed over from the former Standards Committee to this.

The Committee is RECOMMENDED to consider and endorse the report.

Having taken over certain responsibilities from the Council’s former Standards Committee with regard to the governance and standards of conduct for elected and co-opted members the Audit & Governance Committee would receive an annual report by the Monitoring Officer on actions and issues in that regard that have occurred in the previous year. His report (AG7) therefore summarised certain activities for the year 2012/13 and used, as a guide, the terms of reference that had crossed over from the former Standards Committee to this.

The monitoring officer addressed a number of specific issues raised including possible alterations to the forward plan to identify and highlight where items had slipped; improvements to joint working with other authorities; benchmarking; confirmation of the advisory role of the members group and level of complaints.

RESOLVED: subject to insertion of “transparency” in the first line of paragraph 11 to endorse the Monitoring Officer’s annual report.

3.10

Report by Chief Internal Auditors (AU8).

The Chief Internal Auditors annual report summarises the Internal Audit activity in 2012/13, and in accordance with the requirements of the Accounts and Audit Regulations 2011, and the CIPFA Code of Practice for Internal Audit in Local Government 2006, gives an opinion on the council’s system of internal control. This opinion is part of the assurance framework used to inform the Annual Governance Statement.

The Committee is RECOMMENDED to note the report. 

The Committee considered the Chief Internal Auditors annual report (AG8) which summarised the Internal Audit activity in 2012/13 and, in accordance with the requirements of the Accounts and Audit Regulations 2011 and the CIPFA Code of Practice for Internal Audit in Local Government 2006, gave an opinion on the council’s system of internal control which formed part of the assurance framework used to inform the Annual Governance Statement.

Mr Dyson referred to a personal conflict of interest insofar as he was related to one of his senior managers although he confirmed that he was not responsible for direct management.

Specific issues raised related to E & E’s Property and Facilities Contract and development of an issues log; contract management and development of a contract development framework; fraud; Bullfinch Trial and the necessity for some level of audit; design of new systems and process for transforming customer services.

The Chairman thanked the Chief Internal Auditor and his team for such a comprehensive report suggesting it be circulated to cabinet members for information.

RESOLVED: to note the report.

Agreed

3.30

Report by Assistant Chief Executive & Chief Finance Officer (AG9)

The report presents the 2012/13 Statement of Accounts.

The Accounts and Audit Regulations 2011 require the Assistant Chief Executive and Chief Finance Officer to sign the Statement of Accounts no later than 30 June, and certify that they give a true and fair view of the County Council’s position. This report presents the accounts certified by the Chief Finance Officer to the Audit & Governance Committee for information, before the start of the public inspection period and the commencement of the audit. The Audit & Governance Committee will be asked to consider and approve the accounts at its meeting on 18 September 2013, when the findings of the audit are available.

The 2012/13 Statement of Accounts is attached at Annex 1. An overview of the financial position of the Council at 31 March 2013 is contained in the explanatory foreword.

The Committee is RECOMMENDED to:

a)        note the Statement of Accounts for 2012/13 to be submitted to the auditor; and

b)        note the Summary Accounts 2012/13.

The Committee received the 2012/13 statement of accounts.

No significant changes reported this yea. However, it was expected that the next spending review and budget would be a hard one even though, by comparison to many other authorities, the Council remained in a reasonably solid position.

Specific issues raised concerned diminution of fixed assets if all schools took on academy status although it was confirmed that would not affect the County Council’s ability to borrow finance and additionally the County Council would retain an interest in the development of adjacent land  ie playing fields insofar as they could not be sold off without the County Council’s agreement; confirmation that Icelandic deposits would be repaid by 2019; debtors; fairer charging refunds; exit packages.

Sue Scane confirmed the County retained appropriate balances.

The Chairman thanked the officers for the comprehensive set of accounts which seemed to be more complex.

RESOLVED:

(a)               to note the Statement of Accounts for 2012/13 to be submitted to the auditor; and

(b)               note the Summary Accounts 2012/13

4.00

Report by the Assistant Chief Executive & chief Finance Officer (AG10)

The report sets out the Treasury Management activity undertaken in the financial year 2012/13 in compliance with the CIPFA Code of Practice.  The report includes Debt and Investment activity, Prudential Indicator Outturn, changes in Strategy and interest receivable and payable for the financial year.

The Committee is RECOMMENDED to note the report, and to RECOMMEND Council to note the Council’s Treasury Management Activity in 2012/13.

The Committee considered (AG10) a report setting out Treasury Management activity in 2012/13 in compliance with CIPFA Code of Practice including debt and investment activity, Prudential Indicator, Outturn, changes in strategy and interest receivable and payable for the financial year.  The Committee also noted that “Council” in the recommendation should have read “Cabinet”

Specific issues raised concerned  the performance of Investex which was still being monitored in order to enable different options to be considered in the near future. With regard to the policy of lending of long term deposits to organisations in Scotland it was confirmed that the County Council retained a small number of deposits with Scottish authorities. These authorities were currently treated as part of the UK but officers would consider the implications for those holdings bearing in mind the forthcoming referendum for independence.

The Committee thanked the officers for the comprehensive report.

RESOLVED: to note the report and RECOMMEND Cabinet to note the Council’s Treasury Management Activity in 2012/13.

4.20

Report by the Chief Internal Auditor (AG11).

The report summarises the matters arising at the meeting of the Audit Working Group on 20 June 2013.

The Committee is RECOMMENDED to note the report.

The Committee considered (AG11) a summary of matters arising at the Audit Working Group.

It was noted that in future the number of meetings of the Group would increase but that the time for each would reduce and that an additional meeting was to be scheduled for 10 October 2013 at 2 pm. No schedule had been agreed yet although specific meetings to specifically address issues were to be arranged..

RESOLVED: that the report be noted.

4.40

A representative of Ernst & Young will give a verbal update on current issues and be available to answer questions on the following reports:

·                    Oxfordshire County Council 2013/14 fee letter (AG12(a));

·                    Oxfordshire County Council Pension Fund 2013/14 fee letter (AG12(b));

·                    Local Government Sector Update Report (AG12(c)).

The Committee is RECOMMENDED to note the reports.

Mary Fetigan (Ernst & Young) presented reports on:

·                      Oxfordshire County Council 2013/14 fee letter

·                      Oxfordshire County Council Pension Fund 2013/14 fee letter

·                      Local Government Sector Update report

The Chairman thanked her and colleagues at Ernst & Young for their work over the past year.

RESOLVED: that the reports be noted.

5.00

Report by the Director for Social & Community Services (AG13)

The Regulation of Investigatory Powers Act 2000 ('the Act') regulates the use of covert activities by Local Authorities. It creates the statutory framework by which covert surveillance activities may be lawfully undertaken. Special authorisation arrangements need to be put in place whenever a Local Authority considers commencing covert surveillance or considers obtaining information by the use of informants or officers acting in an undercover capacity.

Codes of Practice issued under the Act provide guidance to authorities on the use of the Act. The Code of Practice relating to covert surveillance specifies that elected members should review the authority's use of the Act and set the policy at least once a year. They should also consider internal reports on the use of the Act periodically.

This report provides an overview of the use of activities falling within the scope of the Regulation of Investigatory Powers Act 2000 by Oxfordshire County Council in the period from April 2012 to March 2013. The report also provides an overview of the Authority's Policy and the full policy is provided as an Annex for members to review.

The Committee is RECOMMENDED to consider and note the periodic and annual use of Regulation of Investigatory Powers Act by Oxfordshire County Council.

The Committee considered an overview of the use of activities which fell within the scope of the Regulation of Investigatory Powers Act 2000 by the County Council during the period April 2012 to March 2013 together with an overview of the Authority’s policy.

RESOLVED: to note the periodic and annual use of Regulation of Investigatory Powers Act by Oxfordshire County Council

5.20

This report presents the Internal Audit progress report for 2013/14 and Quarter 2 Plan for the approval of the Audit & Governance Committee (AG14).

The Committee is RECOMMENDED to approve the Q2 and Counter-fraud plans.

The Committee considered (AG14) the Internal Audit progress report for 2013/14 and the Quarter 2 Plan.

It was confirmed that the Social Fund audit scheduled to start in Quarter 2 had  a completion target set of 30 days, although it was possible that that work could conclude in Quarter 3.

Counter fraud work with regard to blue badge applications had been highlighted by the government as an area which had been subject to significant abuse.

RESOLVED: to approve the Q2 and Counter-fraud plans.