Committees

A meeting of the Audit and Scrutiny Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday, 20 June 2013 at 10.30 am.

Webcast Notice: This meeting will be filmed and broadcast over the Internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.

You are invited to attend the meeting and a note of the business to be considered is attached.

Yours faithfully

Michelle Morris
Assistant Chief Executive

Business

1.  Apologies for Absence
Leisgeulan

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting. Any Member making a declaration of interest should indicate whether it is a financial or non-financial interest and include some information on the nature of the interest. Advice may be sought from Officers prior to the meeting taking place.

3.  Internal Audit Reviews and Progress Report
Ath-bhreithneachaidhean In-sgrùdaidh agus Aithisg Adhartais

There is circulated Report No. AS-9-13 (107kb pdf) dated 10 June 2013 by the Head of Internal Audit and Risk Management which summarises a final report issued since the date of the last meeting, together with details of work in progress and other information relevant to the operation of the Internal Audit Section, as follows:-

• Housing and Property – Compliance with the Carbon Reduction Commitment Energy Efficiency Scheme 2010/11 and 2011/12

The Committee is invited to consider the final report referred to in Section 1.1 to the report, note the current work of the Internal Audit Section and the on-going resourcing issues within the Section.

4.  Updates of Actions Arising from Internal Audits of Business Community Planning, Fuel Cards and CareFirst
Fios as Ùr mu Ghnìomhachd ag Èirigh bho In-sgrùdaidhean air Dealbhadh Gnothachas Coimhearsnachd, Cairtean Connaidh agus CareFirst

There is circulated Report No. AS-10-13 (128kb pdf) dated 11 June 2013 by the Head of Internal Audit and Risk Management which provides an update of progress in implementing the actions arising from three reports which were presented at the last meeting on 28 March 2013.

The Committee is invited to note the good progress in implementing the actions arising from three reports which were presented to the last meeting on 28 March 2013.

5.  Risk Management Strategy
Ro-innleachd Rianachd Cunnairt

There is circulated Report No. AS-11-13 (158kb pdf) dated 11 June 2013 by the Head of Internal Audit and Risk Management which refers to the review of the Council’s Risk Management Strategy and highlights a minor revision.

The Committee is invited to note the content of the report and the minor revision to the Risk Management Strategy which has been attached to the report.

6.  Statement on Internal Control and Annual Report 2012/13
Aithris mu In-Smachd agus Aithisg Bhliadhnail 2012/13

There is circulated Report No. AS-12-13 (188kb pdf) dated 11 June 2013 by the Head of Internal Audit and Risk Management which includes an assessment of the adequacy, reliability and effectiveness of the Council’s system of internal financial control and provides information for the Council’s Corporate Governance Assurance Statement. This is contained within the Statement on Internal Control to the report.  In addition, the annual report provides an overview of the Internal Audit Section’s activities and performance data for 2012/13.

The Committee is invited to note the content of the report and the audit opinion provided and to raise any relevant points with the Head of Internal Audit and Risk Management.

7.  Action Tracking Report
Aithisg a’ Leantainn Gnìomhachd

Members are advised that the Audit and Scrutiny Committee receives an annual update to provide assurance that the agreed actions arising from audit reports have been satisfactorily implemented.

In this regard, there is circulated Report  AS-13-13 (242kb pdf) dated 11 June 2013 by the Head of Internal Audit and Risk Management which provides information regarding the most recent action tracking undertaken since the last update provided to the Committee on 20 September 2012.   This update covers the period from 1 July 2012 to 31 May 2013.

The Committee is invited to note the action tracking information provided, including the revised target dates for the completion of outstanding actions and the assurance provided at Section 3.1 of the report.

8.  Corporate Complaints Process
Pròiseas Ghearainean Corporra

Members are advised the Council’s Corporate Complaints handling process has been reviewed further to the decision of the Scottish Public Services Ombudsman (SPSO) that all Scottish Local Authorities implement a standardised 2 Stage Complaints Handling Procedure. The Highland Council has implemented the new complaints procedure in accordance with the Ombudsman’s guidance, set criteria and timescales. 

In this regard, there is circulated Report No. AS-14-13 (68kb pdf) dated 23 May 2013 by the Assistant Chief Executive which provides an update on the implementation of the complaints process.

The Committee is invited to note:-

i.  the implementation of the new Complaints Procedure; and
ii.  action to be taken to ensure the procedure is fully embedded and that
    complaints are dealt with within the agreed timescales. 

9.  Standards Commission: Investigation into Complaints
Coimisean nan Inbhean: Sgrùdadh Ghearainean

There is circulated Report No. AS-15-13 (35kb pdf) dated 3 June 2013 by the Assistant Chief Executive which provides information in relation to complaints received by the Standards Commission during the period 2011/12 and 2012/13 relating to alleged breaches of the Councillors’ Code of Conduct by Members of Highland Council and the outcome of the Standards Commission’s investigations into these complaints.

The Committee is invited to note that, in respect of the complaints against Highland Council Members, dealt with during 2011/12 and 2012/13, the Standards Commission has upheld one complaint. 

10.  External Scrutiny: Assurance and Improvement Plan Update 2013-16
Sgrùdadh bhon Taobh A-muigh: Fios as Ùr mu Bharantas agus Plana Leasachaidh 2013-16

There is circulated Report No. AS-16-13 (42kb pdf) dated 21 May 2013 by the Chief Executive which confirms that the annual update of the Assurance and Improvement Plan (AIP) 2013-16 for Highland Council has been produced by Audit Scotland drawing on the assessment by four external scrutiny bodies and has shown that no additional scrutiny is required.  The report was also considered at the Highland Council meeting in May 2013.

The Committee is invited to note and comment on the Assurance and Improvement Plan (AIP), attached at Appendix 1 to the report, which highlights that no additional scrutiny of the Council is required for 2013-16 and that the Plan was considered at the Council meeting in May 2013.

The Committee is also invited to note the positive comments made about the Council’s financial management, overall performance and its strong managerial and political leadership with an effective Administration and Opposition and governance arrangements and areas where further information is being sought (homelessness, community learning and development and self-evaluation processes) and that there are seven areas of scheduled audit and inspection activity identified to 2016, including those contributing to national audit reports.

11.  Audit Scotland National Reports
Aithisgean Nàiseanta Sgrùdadh Alba

There is circulated Report No. AS-17-13 (50kb pdf) dated 5 June 2013 by the Head of Internal Audit and Risk Management which provides details of the most recent National Reports issued by Audit Scotland and the action taken within the Council to address the report findings as follows:-

• Health Inequalities in Scotland
• Responding to Challenges and Change
• Improving Community Planning in Scotland
• Protecting Consumers

The Committee is invited to consider and note the action being taken by the respective Committees to address Audit Scotland’s National Reports and consider whether this provides sufficient assurance that appropriate action has been taken to address the report findings.

11(a) EU Programme Audit (European Social Fund): Non-Compliance Finding on the ESOL Support for Migrant Workers Project 0274

There is circulated Report No. AS-19-13 (41kb pdf) dated 27 March 2013 by the Director of Education, Culture and Sport which explains that one ESF project audited was found to be non-compliant and consequently the EU grant has to be repaid.

The Committee is invited to note the non-compliance with procurement in an ESF project run by the ECS service, as found in a European audit of the Scottish Government’s management of EU programmes. This non-compliance has led to the need to repay the ESF grant award amounting to £69,579.96 from the Education, Culture and Sport Service budget.

12.  Exclusion of the Public
Às-dùnadh a’Phobaill

The Committee is asked to resolve that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item on the grounds that it involves the likely disclosure of exempt information as defined in Paragraphs 6 and 9 of Part 1 of Schedule 7A of the Act.

13.  Internal Audit Review and Progress Report
Ath-bhreithneachaidhean In-sgrùdaidh agus Aithisg Adhartais

There is circulated to Members only Report No. AS/18/13 dated 10 June 2013 by the Head of Internal Audit and Risk Management which summarises a final confidential report issued since the date of the last meeting as follows:-

• Chief Executive’s Service – ICT Contract Payments

The Committee is invited to note the terms of the report as circulated.