| AU.293 | Councillor M Wiseman declared a personal interest in item 6 - Financial and Performance Monitoring Report as she was employed by an organisation that received some funding from Adult Care Services. |
| AU.294 | There were no members of the public present to ask questions at the meeting.
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| AU.296 | Councillor Penketh welcomed all those present to the meeting and introduced Trevor Rees and Gemma Dyce who were attending the meeting along with Rashpal Khangura from KPMG.
Trevor explained that he was a partner with KPMG and would be taking over the work of Adrian Lythgoe who had left the company.
Gemma explained that she was a trainee with KPMG and she would be attending the Audit Committee meetings as part of her training.
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| AU.297 | Mike Owen, the Director of Finance and E-Government presented a report updating Members of the Committee on the Authority’s financial and performance position in line with the Committee’s Statement of Purpose to ‘provide independent scrutiny of the Authority’s financial and non-financial performance to the extent that it affects the Authority’s exposure to risk and weakens the control environment.
The report indicated that the Authority was projecting an overspend of £1.535m for the year based on spending and income information as at 31 July 2009. The projected overspend was regarded as a matter of concern, however, it could be accommodated within the General Fund balances without breaching the ‘Golden Rules’, as a consequence of which the estimated position was not seen as a major risk to the achievements of the Authority’s Ambitions and Priorities.
There were particular ‘hotspots’ that needed to be addressed relating primarily to Learning Disability Services, Leisure Services and land charges income for which monitoring actions plans had been put in place.
Mike Owen explained that at the meeting of the Audit Committee held on 9 December 2008, Members had asked that the Executive Director of Adult Care Services attend a future Audit Committee meeting to report on budget pressures facing the department. Mike introduced Pat Jones-Greenhalgh, Executive Director of Adult Care Services and Gerrard Wade, Head of Finance and Systems to the Committee.
Pat Jones-Greenhalgh explained that systems had been put in place to assist with monitoring of Adult Care Services finances including monthly Project Board meetings which were also attended by Mike Owen, the Director of Finance and E-Government and Mike Kelly, Deputy Chief Executive.
The main overspends were explained as coming from Learning Disabilities, Physical Disabilities and Mental Health. The position at Month 4 was a projected overspend of £328,000.
The Financial Recovery Plan was set out and included a number if initiatives to reduce the overspends and improve efficiency and effectiveness, including:-
• Assessment and Care Management Review
• Changed payment method for care homes.
• Closer working with Children’s Services re: transitions
• Restructure of Social Inclusion Service
• SEN Transport review
• Reduction in sickness levels
• New way of recruiting temporary staff
• Efficiency monitoring arrangements
Adult Care Services were aware of the challenges facing the service but were working hard to overcome those challenges and to meet the savings targets for 2010/2011 and 2011/2012 and beyond.
Rashpal Khangura explained that the External Auditors had been preparing a report to be submitted to the Audit Committee in December 2009. The draft report was currently with officers of the authority for their agreement.
Rashpal explained that the report set out the findings of an independent review that had been undertaken by KPMG which had considered the following:-
• Reasons for the current overspend and accuracy of the projected financial position.
• Savings plan project management arrangements
• Appropriateness of the financial actions taken by the Directorate and Council.
• Actions taken in other parts of the country which could be used in Bury.
There were a number of key findings in relation to each of the areas set out above and these would be reported in full to the next meeting.
Members of the Committee were given the opportunity to ask questions and comment on the information provided and the following points were raised:-
• The use of agency workers and how to cut down on this practice.
It was explained that an in-house pool of people was being created that could be used to fill any short term vacancies without the need for agency staff.
• The cost of transition from Children’s to Adult Care Services.
• The sickness levels across the service and whether this had been evaluated.
Delegated Decision:
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| AU.298 | Ian Davenport, Principal Benefits Officer gave a PowerPoint presentation explaining the Voice Risk Analysis Software that had been used on a pilot scheme within the Revenues and Benefits Section.
It was explained that the authority had been asked to pilot the software for twelve months and 12 members of staff had been trained to use it, 10 answering the calls and 2 monitoring.
The presentation set out how the software worked and in what situations it was used and it also highlighted its benefits as being:-
• Improvements in Customer Service
• Efficiency Savings
• Improvements in Performance
• Reduction in Fraud
It was explained that the pilot was due to end in December 2009 at which point the authority would have to decide whether to purchase the software themselves for £40,000 ongoing costs with high level support.
It was reported that there had been very positive feedback from customers who had used it as in most cases it enabled claims to be fast tracked and removed the need for people to attend in person at Whittaker Street. It also removed the need for important documents to be sent into the authority which some people were reluctant to do.
Members of the Committee were given the opportunity to ask questions on the information provided and the following comments were raised:-
• Whether the technology would fail if there was a bad connection.
It was explained that the system would not be used if there was a bad connection.
• Whether the use of the system was an infringement on civil liberties.
It was reported that the system was used mainly to help fast track claims and was used to confirm that people were telling the truth rather than telling lies.
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| AU.299 | Trevor Rees and Rashpal Khangura, representing KPMG, the Council’s External Auditors, presented a draft report summarising the key issues identified during their Audit and the Financial Statements for the year ended 31 March 2009. The report also summarised KPMG’s assessment of the Council’s arrangements to secure value for money in its use of resources.
It was explained that the new use of resources framework assesses local authorities against three themes:-
• Managing Finances
• governing the business and;
• Managing resources
It was reported that the Council had been assessed as an overall score of level two which meant that they were performing adequately.
It was explained that the report was being presented in a draft form as there was still the resolution of issues relating to the accounting treatment for possible equal pay payments the Council may have to make. Once KPMG were in a position to issue the audit opinion they would require a signed management representation letter, of which a draft version was appended to the report.
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| AU.300 | Further to Minute AU.126 of the meeting of this Committee held on 25 June 2009, the Director of Finance and E-Government detailing a small number of presentational amendments which had been made following the completion of the audit by KPMG. The relevant pages of the Accounts reflecting the amendments were attached to the report.
The Audit Committee was required to consider the report along with the ISA 260 set out in Minute AU.299 above.
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| AU.301 | Stephen Kenyon, Head of Strategic Finance presented a report providing Members with a quarterly update on the Annual Governance Statement which had been approved by the Audit Committee at its meeting on 25 June 2009.
The report gave an update on the continuous monitoring that was carried out and highlighted any relevant issues with regards to Risk Management, Business Continuity, Budget Monitoring, the work of Internal Audit, Review of Ethical Governance, the work of the Governance Panel, Gifts and Hospitality and the Local Pay Review.
It was reported that the governance panel had met four times since its inception in November 2008, and was proving a value arena to exchange information and concerns regarding the Council’s governance arrangements.
There had been no significant internal control issues during the period covered by the report and the control environment would continue to be monitored throughout the year with updates being provided on a quarterly basis.
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| AU.302 | Rashpal Khangura, representing KPMG presented Members with a report which set out the findings of a review that had been carried with regards to slippage.
It was explained that in recent years the Council’s slippage had been a significant proportion of the total capital programme. The review had sought to identify what the key reasons were for the occurrence of slippage over recent years and in particular in 2007/2008. KPMG had reviewed the bidding/appraising, planning and monitoring processes involved in the capital programme.
KPMG had noted that the Council had put some processes in place for 2008/2009 to begin to address the slippage issues which had been previously encountered. KPMG also identified the following key learning points:-
• The Council should clearly document on the project bids what outcomes the capital scheme is intended to achieve.
• The Council should review to Project Initiation Documents compared to revised plans.
• The Council does not currently over-programme the capital programme.
It was explained that the findings of the review would be discussed with officers and an action plan agreed to address the key issues.
KPMG will continue to work with officers to constructively challenge the delivery of the action plans.
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| AU.303 | Rashpal Khangura, representing KPMG presented Members with a report which set out the findings of a review that had been carried with regards to the effectiveness of the corporate and departmental arrangements in place to deal with access to information requests.
The review identified a number of aspects of good practice across the Council and also 6 areas which should be strengthened.
It was explained that the findings of the review would be discussed with Officers and Members to agree an action plan to address key issues going forward.
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| AU.304 | Rashpal Khangura, representing KPMG, presented the Committee with the Audit progress statement for the external audit programme 2008/2009 which gave an update of the work that had been undertaken for the 2008/2009 Municipal Year.
Rashpal Khangura, representing KPMG presented the Committee with the Progress Statement for the External Audit Programme 2009/2010.
Details of the ongoing work and when that work would be completed and reported to the Committee were included in the report with comments on progress.
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| AU.306 | Councillor Penketh reported that the Office of Fair Trading had issued penalties to 103 building companies after an investigation into bid-rigging.
Councillor Penketh asked that a report be brought to the next meeting of the Audit Committee setting out whether this issue had an effect on any companies working within Bury and if so what effect this would have on the Authority.
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