14 December 2009

Present:

Sir Simon Day (Chairman), Councillors Greenslade, Hannon, McMurray, Moulding, Parsons and Pennington

*13 Minutes

RESOLVED

(a) that the Minutes of the meeting held on 28 September 2009 be signed as a correct record;

(b) that the Committee accept the Audit Commission s offer to undertake work to the value of 10-15,000 as a goodwill gesture to ameliorate the increase in 2010/11 Audit Fees.

*14 Final Accounts Memo - Review of Key Financial Systems

The Committee considered the report of the Audit Commission presented by Mr Alun Williams, District Auditor, and Ms Catherine Brown, Audit Manager, on the matters arising from the Commission s work on the audit of the Council s financial statements for 2008/09. The detailed report made 19 recommendations which were set out in the Action Plan, agreed by the County Council and appended as Appendix 2 to the report. The Committee would receive a follow-up report to the Action Plan in the new year.

RESOLVED that the report be noted.

*15 Draft Use of Resources Report

The Committee considered the report of the Audit Commission presented by Mr Alun Williams, District Auditor, and Ms Catherine Brown, Audit Manager, setting out the Commission s conclusions on how well the Council was managing and using its resources to deliver value for money and better and sustainable outcomes for local people. The Commission also gave scored use of resources theme judgements.

Members discussed the performance measure and how the nature of the assessment had changed from previous years which was now more stringent. The overall score of 3 showed a creditable performance by the Council and congratulations were offered to the Director of Finance and her colleagues.

RESOLVED that the report be noted.

*16 Audit Update Progress Report

The Committee considered the report of the Audit Commission presented by Mr Alun Williams, District Auditor, and Ms Catherine Brown, Audit Manager, on audit progress to 14 December 2009. The report covered reports issued by the Commission since last meeting, work completed, work in progress and the Audit Commission s events and national reports. The District Auditor explained that there was more information on the events and reports on their website www.audit-commission.gov.uk.

RESOLVED that the report be noted.

*17 Risk Management

(a) The Committee considered the report of the Chief Executive (CX/09/109) presented by Ms Judith Davey, Head of Organisational Development, and Richard Horne, Emergency Planning Manager, on the risk management taking place across all Council activities but which was not matched by record keeping and links with community risk. The Council received a score of 2 for Risk Management and the Commission had decided to undertake an external audit of this area. Recent developments were outlined such as all committee papers to include a risk management statement from 1 January 2010 and risk management being a part of all future performance reports.

Members discussed the need for training on risk management and how the County Council s performance in the area compares with other local authorities.

RESOLVED

(i) that the Risk Management Policy be approved;

(ii) that the Corporate Risk Register be reviewed and comments be referred to the Emergency Planning Manager;

(iii) that the additional work being undertaken to strengthen risk management with the County Council be noted;

(iv) that a half day Member training exercise be arranged for this Committee on the morning of the next Audit Committee.

(b) Mr Steven Frank of the Audit Commission spoke to the Committee about his observations on risk management within the Council. He felt that consistency was the problem and hence the low score but he was encouraged that the Emergency Planning Manager was taking steps to ensure that the approach was more consistent and transparent. He would be reporting back to this Committee by the end of March 2010 on progress.

*18 Internal Audit Report 2009/10 Progress in First Half Year

(Councillor McMurray declared a personal interest in this item by virtue of being a Governor of Teignmouth Community College)

The Committee considered the report of the Director of Finance (CR/09/76) summarising progress to date against internal audit plans for the financial year 2009/10 and the Director of Finance picked out a number of issues from across the Directorates and concluded that a significant number of audits have highlighted satisfactory controls and improving systems .

Members discussed the large number of secondary schools that were not achieving good results and Ms Caroline Armstrong, School Funding and Support Senior Finance Manager, responded to Members questions and admitted that some schools were lagging behind.

RESOLVED that the Committee note

(a) the satisfactory progress made against the agreed internal audit plans for 2009/10 during the first six months of the year;

(b) the key issues ring from those audits highlighted in the report.

*19 School Balances Compared with Neighbours: Devon s School Balance Control Mechanisms

(Councillor McMurray declared a personal interest in this item by virtue of being a Governor of Teignmouth Community College)

The Committee considered the report of the Director of Finance (CR/09/75 - text onlyCR/09/75) presented by Ms Caroline Armstrong, School Funding and Support Senior Finance Manager, on the school balances in Devon at the end of 2008/09 which stood at 13.7m, nearly 2 down on the previous year. The report looked at balances held by schools in the South West area and those held by our nearest statistical neighbours as well as the changing grounds for allowable exceptions to the capping mechanism.

RESOLVED

(a) that the position of Devon s schools compared with the national average for schools, southwest authorities and statistical neighbours be noted;

(b) that the scope and impact of the balance capping mechanism currently employed in Devon s schools be noted.

*20 PRiSM Review

Director of Finance reported on progress made in respect of the audit review of PRiSM requested by the Committee at its meeting in June 2009. Fieldwork had been completed and a draft report produced. Senior managers were co-ordinating their thoughts and the final report would be presented to the next meeting of this Committee in March 2010.

*21 Date of Next Meeting

The Committee noted that its next meeting was in the DCC web calendar and due to be held on Tuesday 30 March 2010 at 2.15pm at County Hall, Exeter.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.30pm.

The Minutes of the Committee are published on the County Council s Website at:-