24 June 2010

Present:

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

Apologies

Councillor Parsons

*35 Minutes

RESOLVED that the Minutes of the meeting held on 30 March 2010 be signed as a correct record.

*36 Annual Statement of Accounts 2009/2010

The Committee considered the report of the Director of Finance (CR/10/59 - text only | supplementary information CR/10/59) and Statement of Accounts booklet together with the Pension Fund Accounts. Members asked questions and made comments in relation to high earning senior officers, the repayment of HLF grant in relation to Morwellham Quay and the inclusion of PFIs within the accounts.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED

(a) that the Statement of Accounts be approved;

(b) that the Chairman of the Audit Committee be authorised to sign and date the Statement of Responsibility and the Annual Governance Statement confirming approval by the Committee.

*37 Annual Internal Audit Annual Report 2009-10

The Committee considered the report of the Director of Finance (CR/10/60) providing assurance on the adequacy and security of those systems on which the Council relies for its internal control. The Director of Finance highlighted key issues and Members asked questions in relation to problems with external care providers, new Government guidance on apprentices, Members allowances, replacement of staff vacancies and retraining of existing staff, the security of the exchange server and expanding the use of the PRiSM system.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED

(a) that Members note the internal audit opinion that the Council s systems contain a satisfactory level of internal control;

(b) that Members note the satisfactory performance and achievements of Devon Audit Partnership during 2009/10;

(c) that the Council s continuing commitment to the maintenance and enhancement of an anti-fraud culture is endorsed.

*38 Pension Fund Fee Letters

(Councillor McMurry declared a personal interest in this item by virtue of his employment by the South Devon College)

The Committee considered the report of the District Auditor on the Fee for the audit work the Audit Commission proposes to undertake for the 2010/11 financial year at Devon Pension Fund.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the reduced fee of 46,470 set out in the letter be approved.

*39 Audit Progress Report

The Committee considered the report of the District Auditor Audit progress summary to 24 June 2010. The Audit Manager drew Members attention to the fact that the new coalition government had decided to abolish Comprehensive Area Assessments.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the progress report be noted.

*40 Risk Management Report

The Committee considered the report of the District Auditor on work in line with the County Council s desire to improve risk management in order to meet significant future challenges including budgetary pressures.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the report be noted.

*41 Possible Future Items for Audit Committee

The Head of Organisational Development proposed that the Audit Committee may wish to request a paper on policy relating to overhanging trees at a future meeting to ensure that all Directorates take a consistent and robust approach. She also proposed that the Audit Committee may also wish to have a discussion on partnership risk at a future meetings.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the Committee receive future reports on (a) policy relating to overhanging trees and (b) on partnership risk.

*42 Good Governance in Local Government

The Committee considered the report of the Corporate Leadership Team (CX/10/24 - text onlyCX/10/24) on the Governance statement in accordance with CIPFA/SOLACE guidance and comply with Regulation 4(2) of the Accounts and Audit (Amendment) (England) Regulations 2006. The Council is required to publish the statement in the Annual Statement of Accounts.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the draft Governance Statement be approved.

*43 Ethical Governance

The Committee considered the report of the County Solicitor (CX/10/16 - text onlyCX/10/16).

The Committee noted that the Standards Committee at its meeting on 10 May 2010 (Minute 25) received the results of an ethical governance survey undertaken by Members in the latter part of 2009 to help that Committee assess, inter alia, how the Council met the ethical agenda and whether or not any improvements might be needed. The Standards Committee was pleased to note that, in general, the responses received from members had been by and large positive and no significant actions were needed. A number of specific issues had been raised through that survey which would be addressed by the Standards Committee in its own work programme or through on-going member development and training. However, the Standards Committee also accepted the suggestion from a member that the Council should 'examine the process for checking expenses claims from Members and Officers alike'. No suggestion of impropriety was made rather it was a general comment that the Council should be satisfied that its processed were satisfactory.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the Committee was reassured that that the current process for checking claims was robust and effective.

*44 PRISM Update

Members were reminded that at the last meeting the Audit Committee received the report of the Director of Finance on the review whose key objectives were to provide assurance that the PRiSM payroll system has been introduced effectively, that the potential for wider use and benefit for the County Council has been identified, and that plans are in place to harness these benefits.

At the meeting, Roger Jarman, HR Payroll Business Development Manager, attended and spoke about the technical details of the system and its potential ability to deal with other human resource areas beside payroll such as sickness and absenteeism. Members discussed this potential which was felt to be an audit question relating to value for money, and resolved that a further report be presented to this meeting of the Committee on the development of PRiSM system to encompass other HR areas.

Over the ensuing period a package of work had been initiated by the Corporate Programmes Office and Improvement Efficiency Team to review the potential benefits and use of the Self-Service option within PRiSM with the key people who had the knowledge of processes involved, technology and financial implications. This involved discussions and visits to other local authorities who had recently implemented the solution to get a practical view on their own implementation and the associated efficiencies delivered. The aim of this exploratory work was to produce an internal business case outlining the way forward.

The Committee noted that this project was on-going with outputs expected during July 2010.

It was MOVED by Sir Simon Day, SECONDED by Councillor Moulding and

RESOLVED that the Committee receive a report on this issue at it s next meeting in September.

*45 Date of Next Meeting

Members noted that the next meeting was due to be held on Friday 24 September 2010 at 2.15pm

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.45pm.

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