18 November 2015

Present:

Devon County Council

Councillors Edgell and Clatworthy (Chairman)

Plymouth City Council

Councillor Parker-Delaz-Ajete

Torbay Council

Councillor Tyerman

Office of the Police Crime Commissioner

Mr S Haworth

Also in Attendance

Mr R Hutchins (Devon Audit Partnership)

Mr M Phillips (Torbay Council)

Apologies

Councillor O Dwyer (Torbay Council) and Councillor Davey (Plymouth City Council)

*55 Minutes

RESOLVED that the Minutes of the meeting held on 24 June 2015 be signed as a correct record.

*56 Six Month Update 2015/16

The Committee received the Report of the Head of Devon Audit Partnership (CT/15/97 - text only | pdf | supplementary information CT/15/97) summarising the Partnership s activity in the first six months of 2015/16.

Over the first two quarters the Audit team had been involved in a significant number of high profile pieces of work, had taken on audit work from new client Strata and were providing additional audit support to South Hams District and West Devon Borough Councils. The Devon Audit Partnership had also developed links with other large audit partnerships through an umbrella organisation, with the aim of sharing best practice and collaborating on other initiatives.

In response to Members questions the Head of Devon Audit Partnership advised that:

whilst staff sickness had certainly contributed to delays in the production of draft reports, there had also been other factors;

that in 2014/15 the response rate for the Customer Survey had been 22% but that the team had been working to increase the response rate in future.

*57 Budget Monitoring Position 2015/16 at Month 6

The Committee received the Report of the Head of Devon Audit Partnership (CT/15/98 - text only | pdf CT/15/98) setting out the Budget monitoring position for the Partnership at month 6, indicating a potential small underspend at the year end (a trading surplus) due to additional services being provided to some external partners, although this had in part been offset by an increase in associated costs to carry out this work.

*58 Risk Register

The Committee considered the Report of the Head of Devon Audit Partnership (CT/15/99 - text only | pdf | supplementary information CT/15/99) setting out the updated Strategic and Operational risks currently facing the Partnership, including; the future of the Partnership when the current agreement comes to an end in 2017, a change in priorities or dissatisfaction of one of the founding partners, resulting in a partner leaving, and failure to deliver an agreed audit plan in line with current targets, resulting increased control risk to clients and a lack of confidence in Devon Audit Partnership as a provider.

The Partnership s Management were continuing to put mitigating actions in place to manage these risks effectively.

Members discussed:

the risks associated with the reduction in the Partnership s staffing levels, potentially impacting on the retention of specialist skills in house;

the potential benefits of joint working with Health Auditors to enable the Partnership to continue to provide Audit services to Social Care providers which have or will become integrated with Health services;

the challenge faced by the Partnership of continuing to provide a good level of audit assurance, whilst reducing the number of audit days delivered;

the impact of reduced Council services and increased commissioning to external providers, on risk levels and on Councils audit requirements.

It was MOVED by Councillor Tyerman, SECONDED by Councillor Clatworthy and

RESOLVED

(a) that the updated Strategic and Operational Risk Register and the actions in place to reduce risks to an acceptable level be noted;

(b) that a Report outlining future options for the Partnership be brought to the Committee in June 2016.

*59 Quality Improvement Action Plan

The Committee received the Report of the Head of Devon Audit Partnership (CT/15/100 - text only | pdf | supplementary information CT/15/100) setting out the areas for development over the next 12 months, including the Partnership s Key Priorities and actions resulting from a self assessment against the Local Government Application Note.

*60 CIPFA Benchmarking Exercise 2014/15

The Committee received the Report of the Head of Devon Audit Partnership (CT/15/101 - text only | pdf CT/15/101) outlining the results from the CIPFA benchmarking exercise 2014/15. The Partnership had chosen to use data from Plymouth City Council in the exercise, being seen as representative of the Partnership overall, and results showed that the Partnership performed well in 2014/15, being below the bar in the majority of areas, particularly in the in relation to mainline audit cost per million pound gross turnover, net cost to local authority per chargeable day and cost per auditor.

In response to Members questions the Head of Devon Audit Partnership advised that:

staff sickness levels were comparatively high and that this had impacted on the number of audit days delivered;

that the higher than average annual leave figures reflected of the number of staff at the Partnership with long local government service.

*61 External Inspection Reports 2014/15 and Inspection Arrangements 2015/16

The Committee considered the Report of the Head of Devon Audit Partnership (CT/15/102 - text only | pdf | supplementary information CT/15/102) highlighting the results from external inspection work undertaken by internal and external audit and showing that clean reports had been issued by both auditors, although the internal auditors identified some areas where control could be further enhanced, including the Partnership s Scheme of Delegation and Invoicing. The Partnership s Management had consequently taken action to address the issues identified.

It was MOVED by Councillor Clatworthy, SECONDED by Councillor Edgell and

RESOLVED

(a) that the results from the 2014/15 external audit carried out by Grant Thornton and the results from the 2014/15 internal audit carried out by the South West Audit Partnership be noted;

(b) that the appointment of Grant Thornton as the external auditor for the Partnership for 2015/16 be noted;

(c) that the decision to retain the South West Audit Partnership as the internal auditors for the Partnership for 2014/15 be endorsed.

*62 Future Meetings

Wednesday 2 March 2016, Wednesday 22 June 2016 and Wednesday 16 November 2016, all beginning at 10.30am at County Hall, Exeter.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

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

The meeting started at 10.30 am and finished at 11.30 am