Audit Governance and Improvement Review Committee - 25 March 2010

Present at the meeting:

• Councillor M W Winstanley (Chairman)
• Councillor R Brierley
• Councillor Mrs P Cullen
• 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

• Martyn Kenyon – Head of Audit and Risk Management
• John Rowlands – Principal Solicitor
• David Skinley – Democratic Support Officer
• David Smith – Executive Director of Business Support Services

Officers presenting reports

41 Apologies for absence: Councillors Mrs S Dewhurst, J D Hodgkinson and  N Houlton.

42 Minutes: The minutes of the meeting of this Committee held on 28 January 2010 were submitted.

A Member expressed concern that information which had been provided in a report to the Economy, Environment, Culture and Housing Scrutiny Committee on 17 March 2010 in relation to Section 106 money had not supplied the level of detail which had been originally requested by the Audit, Governance and Improvement Review Committee at its meeting on 28 January 2010 and requested an explanation as to why more detail had not been given in the report.

The Executive Director Business Support Services, David Smith, informed the Committee that in accordance with its request regarding the report on Section 106 money, the relevant details had been provided to a sufficient degree within the report and that in this instance the Officers tasked with supplying the information had acted reasonably in conducting their duties. While it was possible to supply further information, the benefits of doing so would be negligible, particularly when considered in relation to the labour and costs involved in such an undertaking.

Resolved: The minutes of the meeting of this Committee held on 28 January 2010 were approved as a correct record.

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

• Peter Hogg – Audit Manager
• Jonathan Cliff – Corporate Procurement Manager
• Lewis Jones – Corporate Health, Safety and Wellbeing Manager
• Joe Feeney – Head of Benefit Services

44 Strategic Commissioning Framework: The Committee considered a report of the Service Director Customer Transformation, Steve Peddie, which was presented by the Corporate Procurement Manager, Jonathan Cliff. The report outlined a draft Strategic Commissioning Framework for approval and adoption.

Members discussed the report and asked a number of questions to which the Head of Audit and Risk Management, Martyn Kenyon and the Corporate Procurement Manager responded.

Resolved: The Committee approves the adoption of the Strategic Commissioning Framework.

45 Health and Safety Annual Report 2008/9: The Committee considered a report of the Executive Director Business Support Services, which was presented by the Corporate Health, Safety and Wellbeing Manager, Lewis Jones. The report summarised the Council’s Health and Safety Performance for the year 2008/09. It also identified key challenges and targets for the year ahead in order to further improve occupational health and safety management within the Council.

The Corporate Health, Safety and Wellbeing Manager, highlighted the fact that this particular report had been compiled with reference to the previous financial year i.e. 2008/09 as opposed to the current financial year which was 2009/10 and in doing so he apologised for the delay in submitting the report to the Committee. Under normal circumstances the report would be brought to the Committee on an annual basis, approximately during the August which followed the end of the previous financial year. Accordingly, future reports would be brought to the Committee in accordance with this timeframe.

Members discussed the report and asked a number of questions to which the Head of Audit and Risk Management, the Corporate Health, Safety and Wellbeing Manager and the Executive Director Business Support Services responded. The Committee requested that the Head of Audit and Risk Management re-examine the outstanding cases involving injury claims which had been identified in the report. The Corporate Health, Safety and Wellbeing Manager also offered to examine the data available to identify any correlations relating to high incidents of sickness absence at particular times during the year.

Resolved: The Committee:-

(1) notes the report;

(2) requests that the of Audit and Risk Management re-examine the outstanding cases involving injury claims identified in the report; and

(3) requests that with reference to the report, the Corporate Health, Safety and Wellbeing Manager examine the data available to identify any correlations relating to high incidences of sickness absence at particular times during the year.

46 Strategic Risks and Corporate Strategy: The Committee considered a report of the Executive Director Business Support Services, which was presented by the Head of Audit and Risk Management.

Members discussed the report and asked a number of questions to which the Head of Audit and Risk Management and the Executive Director Business Support Services responded. The Committee put forward the following points for consideration in relation to the refresh of the Strategic Risk Register in accordance with the request from the Executive Director Business Support Services and the Head of Audit and Risk Management:-

• With regard to cutting waste, how could the Council, as an organisation, cut or prevent waste, and how could the Council better inform the debate around waste?
• The Council should avoid reducing targets if it’s possible that they can be met.
• Targets in general must always be set within reasonable and rational parameters in order to reach a balance between targets which are both challenging and workable.
• The Council must be able to make an impact on any performance data linked to targets to a sufficient degree in order for targets to remain suitable and appropriate.
• Partnership working was the driving force affecting much of the performance data and the issue of alcohol misuse was an example of how the Council can work with partners to improve statistics in more than one area.
• Tackling issues such as the so called ‘poverty trap’ which some individuals and families can fall into would be fundamental to future long term improvements to the benefits system and to poverty statistics.

Resolved: The Committee:-

(1) notes the report; and

(2) requests that the Head of Audit and Risk Management note the comments and contributions from the Committee which may assist with the refresh of the Strategic Risk Register.

47 International Financial Reporting Standards (IFRS): The Committee considered a report of the Service Director Corporate Services, Paul McKevitt, which was presented by the Executive Director Business Support Services. The report informed Members about the introduction IFRS for Local Authorities and provided details of the potential impact that they may have upon the Council. In addition the report provided an update of the work undertaken to date in preparation for the implementation of IFRS.

Members discussed the report and asked questions to which the Executive Director Business Support Services responded.

Resolved: The Committee notes the report and the progress made to date.

48 Internal Audit Plans 2010/2011 to 2012/13: The Committee considered a report of the Executive Director Business Support Services, which was presented by the Head of Audit and Risk Management.

The report provided Members with the Strategic Internal Audit Plan for the next three financial years, showing key areas for Internal Audit coverage. The plans had been developed in full consultation with Management, following detailed reviews of the Strategic and Departmental Risk Registers which link to the Council’s Vision either directly or via the Service Planning process. Based on this, an annual Plan would be compiled each year. Officers were seeking the Committee’s approval for the proposed Strategy for Internal Audit Coverage for the next three financial years.

Members discussed the report and asked a number of questions to which the Head of Audit and Risk Management, the Executive Director Business Support Services and the Audit Manager, Peter Hogg responded.

Resolved: The Committee notes the report and agrees the Strategic 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. 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.)

49 Internal Audit Data Quality Risk Assessment: The Committee considered a report of the Executive Director Business Support Services, which was presented by the Head of Audit and Risk Management. The report outlined the proposed risk assessment methodology used by Internal Audit and reviewed the accuracy of the Council’s Data Quality in respect of key performance data.

Members discussed the report and asked questions to which the Head of Audit and Risk Management responded.

Resolved: The Committee approves report and agrees to receive a further report in due course, which will outline the findings of the Internal Audit review and proposals for any required remedial action.

50 Benefits Inspection - Self-Assessment: The Committee received a report of the Executive Director Business Support Services, which was presented by the Audit Manager and the Head of Benefit Services, Joe Feeney.

The Benefits self-assessment would be supplied to the Audit Commission on 26 March 2010 ahead of the Audit Commission’s inspection during the week commencing 10 May 2010. Members were asked to note the requirements of the Audit Commission, on the understanding that the final assessment would be available to the Committee once it had been supplied to the Audit Commission in due course.

Members discussed the report and asked questions to which the Head of Benefit Services responded.

Resolved: The Committee notes the report and awaits a further report.

(Councillor E Russon declared a personal and non-prejudicial interest in this item because he is the manager of Wigan Advice Centre.)

51 Fees payable in association with the local elections May 2010: The Chairman agreed to take the following item as urgent, the special circumstance being the need to inform Members at the earliest opportunity.

The Committee considered a report by the Executive Director Business Support Services, which outlined the levels of fees to be paid to staff employed in the local elections in May 2010.

Members discussed the report and asked a number of questions to which the Executive Director Business Support Services and the Audit Manager responded. The Committee considered the future of other similar reports which may be brought to the Committee ahead of other forthcoming elections and discussed whether those reports ought to be structured differently.

Resolved: The Committee:-

(1) notes the report;

(2) requests that it continues to receive similar reports prior to each future election; and

(3) requests that future such reports contain more detail with regard to the processes which determine the levels of additional payments allocated to the Returning Officer and to Electoral Services staff in association with any forthcoming elections.

(Councillor J Miller declared a personal and prejudicial interest in this item because his Mother-in-law will be employed as a Presiding Officer in the forthcoming local elections.)

52 Vote of thanks: Resolved: The best thanks of this Committee are extended to the Chairman and the Officers for the excellent services rendered by them during the past Municipal Year.