Audit, Governance and Improvement Review Committe - Thursday 28 January 2010

Present at the meeting:

• Councillor M W Winstanley (Chairman)
• Councillor R Brierley
• Councillor Mrs P Cullen
• Councillor J D Hodgkinson
• Councillor J Miller
• Councillor C Rigby
• Councillor E Russon
• Councillor Mrs E Smethurst
• Councillor C Sweeney
• Councillor F B Walker

Independent Members

• Mr T Addison
• Mr W Anderton
• Mr P Connor

Officers in attendance

• Lesley Bilsborough – Deputy Audit Manager
• Martin Kenyon – Head of Audit and Risk Management
• Paul McKevitt – Service Director – Corporate Services
• John Rowlands – Principal Solicitor
• David Skinley – Administrative Assistant
• David Smith – Executive Director of Business Support Services

Officers presenting reports

• Mark Heap – District Auditor (Audit Commission)
• Mark Rotheram – Strategic Financial Manager – Environmental Services
• Christopher Whittingham – Audit Manager – (Audit Commission)
• Sarah Uttley – Performance Specialist (Audit Commission)

31 Appointment of Chairman: Resolved: Councillor F B Walker was appointed Chairman of the meeting. Councillor F B Walker then took the Chair for Minutes 31-36.

32 Apologies for absence: Councillors Mrs S Dewhurst, B J Fagan and E N Houlton.

33 Minutes: The minutes of the meeting of this Committee held on 26 November 2009 were approved as a correct record.

34 Exclusion of the public - section 100a Local Government Act 1972: Resolved: The public is excluded from the meeting when the Committee discusses the following items for the reasons set out below:-

35 Audit Commission Annual Letter (Minute 4 refers): The Committee considered a report of the Executive Director – Business Support Services, David Smith presented by the District Auditor (Audit Commission) – Mark Heap, which presented the Audit Commission’s Annual Audit Letter for 2008/09 to the Committee. The report summarised the findings from the 2008/09 audit.

The Audit Commission’s Value For Money (VFM) conclusion was that the Council’s arrangements were adequate and it had issued an unqualified conclusion on the Council’s value for money arrangements on 29 September 2009.

The financial statements submitted for audit had been complete and received in line with the required deadlines and supported by working papers prepared to a good standard. No material errors had been indentified during the course of the audit.

The District Auditor’s fee proposals had been communicated to the Audit Committee in his Audit Plan for 2008/09. He expected to contain the 2008/09 audit fee within the total of £309,986 which had already been agreed with the Council.

The District Auditor had not made any further recommendations in his report over and above those previously reported to those charged with governance.

The Committee was advised that the economic downturn, public sector funding and the banking crisis was having a very significant impact on public finances and the bodies that manage them. It was envisaged that there would be a wide ranging and fundamental impact on the ability of public sector bodies to fund service delivery and capital programmes in the short to medium term, including pressures on income streams. There were further challenges for policy priorities where patterns of demand for services were also changing. In addition the Council continued to implement its own review programme of service delivery. These changes and the Council's response would be a key focus of the District Auditor’s attention for future audits.

The audit had been carried out in accordance with the Audit Commission’s policies on integrity, objectivity and independence. The District Auditor thanked the Council’s staff for their support and co-operation during the audit.

Members discussed the report and asked questions, to which the officers from the Audit Commission, the Executive Director – Business Support Services and the Service Director - Corporate Services, Paul McKevitt responded. The Committee asked for information in relation to the Audit Commission’s findings that in respect of commissioning and procurement the Council had been performing adequately.

Resolved: The Committee:-

1. requests that the Performance Specialist (Audit Commission), Sarah Uttley provide further information with regard to the Audit Commission’s findings that in respect of commissioning and procurement the Council is performing adequately;
2. thanks the officers from the Audit Commission for the report; and
3. notes the report and its findings.

At this point in the meeting Councillor M W Winstanley assumed the role of Chairman of the meeting for the remaining business of the Committee.

36 Use of Resources: The Committee considered a report of the Executive Director – Business Support Services presented by the District Auditor, which detailed the Audit Commission’s report on the Council’s Use of Resources Assessment for 2008/09.

The Council’s Use of Resources Scores had exceeded minimum requirements and its overall score of three indicated that the Council was performing well.

Members discussed the report and asked questions, to which the officers from the Audit Commission and the Executive Director – Business Support Services responded. The Committee requested an update on the progress made in respect of the Use of Resources Action Plan.

Resolved: The Committee:-

1. thanks the officers from the Audit Commission for the report;
2. notes the report, its findings and its recommendations; and
3. requests that the Executive Director – Business Support Services provide a full update on the progress made in respect of the Use of Resources Action Plan.

(The Chairman (Councillor M W Winstanley) declared a personal and non-prejudicial interest in this item because he is a board member of Wigan and Leigh Homes.)

(Councillor Mrs E Smethurst declared a personal and non-prejudicial interest in this item because she is a Board Member of Wigan Leisure and Culture Trust and is also a Governor at Platt Bridge Community School, appointed by the Council.)

(Councillor F B Walker declared a personal and non-prejudicial interest in this item because he is a Board Member of Wigan and Leigh Homes.)

(Councillor E Russon declared a personal and non-prejudicial interest in this item as he is a Governor at Platt Bridge Community School, appointed by the Council.)

(Councillor C Sweeney declared a personal and non-prejudicial interest in this item as he is a Governor at Platt Bridge Community School, appointed by the Council.)

37 Internal Audit Data Quality Review: The Committee considered a report of the Executive Director – Business Support Services, presented by the Head of Audit and Risk Management, Martin Kenyon, which gave a review of the accuracy of the Council’s Data Quality in respect of key performance data.

Members discussed the report and asked questions, to which the officers from the Audit Commission and the Executive Director – Business Support Services responded.

Resolved: The Committee notes the report.

38 Report on Section 106 money: The Committee considered a joint report of the Executive Director – Business Support Services and the Interim Director of Environmental Services, Gillian Bishop, presented by the Strategic Financial Manager – Environmental Services, Mark Rotheram, which detailed a breakdown of Section 106 expenditure and income.

Members discussed the report and asked questions on a wide range of related issues, to which the Executive Director – Business Support Services and the Strategic Financial Manager – Environmental Services responded.

Resolved: The Committee:-

1. notes the specific requirements around Section 106 obligations and the detailed breakdown of expenditure and income held in respect of Section 106;
2. requests that with reference to Appendix A of the report, further information be provided in relation to un-committed Public Open Space Money for each township;
3. requests that the Strategic Financial Manager – Environmental Services provide further details regarding the timescales which determine when Public Open Space Money must be spent;
4. requests that the report be circulated to all Township Forums for information;
5. requests that the Executive Director – Business Support Services and the Interim Director of Environmental Services modify the report prior to it being submitted to the Economy, Environment, Culture and Housing Scrutiny Committee meeting on 16 March 2010 to include:-

• as much relevant detail as is available in relation to un-committed Open Space Money with  regard to the Hindley and Abram township from the previous five years; and
• further recommendations.

(The Chairman (Councillor M W Winstanley) declared a personal and non-prejudicial interest in this item because he is a member of Greater Manchester Integrated Transport Authority.)

(Councillor Mrs E Smethurst declared a personal and non-prejudicial interest in this item because she is a Board Member of Wigan Leisure and Culture Trust and is also a Board Member of Greater Manchester Integrated Transport Authority.)

39 Internal Audit Annual Fraud Report: The Committee considered a report by the Executive Director – Business Support Services presented by the Head of Audit and Risk Management which provided Members with an update of the Council’s particular specific achievements and outcomes in countering fraud and corruption.

Following a request from the previous meeting the Head of Audit and Risk Management advised the Committee on public access to information held on the money laundering activity form, after seeking advice from the Council’s Data Protection Officer. There were a number of exemptions under the Freedom of Information Act which prevented the public from viewing certain types of information which included the type of information recorded on the money laundering activity form, for example, any information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.

Resolved: The Committee:-

1. notes the report and the recommendation that an effective Anti-Fraud and Corruption Strategy is key to promoting a strong ethical and counter fraud culture within the Council;
2. notes the feedback given in relation to the money laundering activity form; and
3. requests information detailing how many of those individuals involved in cases which had led to successful prosecutions for benefit fraud were initially offered the option of an administrative penalty.

(The Chairman (Councillor M W Winstanley) declared a personal and non-prejudicial interest in this item because he is a Board Member of Wigan and Leigh Homes.)

40 Loss of Personal Data: The Chairman agreed to take the following item as urgent, the special circumstance being the need to inform Members of the Committee at the earliest opportunity.

The Executive Director – Business Support Services informed the Committee that personal data held on a memory stick had been lost in January 2010 by a Council employee. The employee responsible had been suspended. The individuals whose details had been lost, some of whom had been employed via the Supported Employment Programme, would be informed of the incident at the earliest opportunity. Due its sensitive nature, this matter had to be handled with considerable care.

Resolved: The Committee notes the report.

The meeting concluded at 20:50 p.m.