Agendas, reports and minutes

A meeting of the Audit and Scrutiny Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 30 September 2015 at 10.30am.

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
Depute Chief Executive/
Director of Corporate Development

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. Recess Powers
Cumhachdan Fosaidh

The Committee is asked to note that the Recess Powers granted by the Council at its meeting on 25 June 2015 have not been exercised in relation to the business of the Audit and Scrutiny Committee.

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

There is circulated Report No. AS/17/15 dated 22 September 2015 by the Head of Audit and Risk Management which summarises the final reports 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:-

• Care & Learning – Ben Wyvis Primary School Project
• Care & Learning – School Lets Arrangements
• Care & Learning – Primary School Fund – System Weaknesses
• Care & Learning – Records Management 
• Care & Learning – SEEMiS  
• Care & Learning – Schools - Financial Procedures  
• Community Services – Management of Housing Voids
• Corporate Development – Verification of Performance Indicators 2013/14
• Corporate Development – Corporate Control of Overtime 
• Corporate Development/ Finance – Online Payments
• Development & Infrastructure – Asset Management
• Finance – General Ledger 
• Finance – Non Domestic Rates – Billing & Collection
• Finance – Council Tax – Billing & Collection
• Finance – Treasury Management
• Finance – Housing Benefit Payments 2014/15  
• Finance – Statement on Internal Control - Matters Arising 

The Committee is invited to consider the Final Reports referred to in Section 1.1 to the report and note the current work of the Internal Audit Section.

5. Financial Regulations – Proposed Amendments 
Ath-sgrùdadh de Riaghailtean Ionmhasail

There is circulated Report No. AS/18/15 dated 17 September 2015 by the Head of Audit and Risk Management which refers to an amendment to the Council’s Financial Regulations arising from (i) the introduction of Integra, the Council’s new Financial Management Information System and (ii) from audit work undertaken to support the Statement on Internal Control.

The Committee is invited to consider the revisions, detailed in the report, and recommend acceptance to the Council.

6. Code of Corporate Governance  
Còd Riaghladh Corporra

There is circulated Report No. AS/19/15 dated 15 September 2015 by the Depute Chief Executive/Director of Corporate Development which provides an update on progress with delivering the actions agreed in Local Code of Corporate Governance for 2014/15 and also presents the Code for 2015/16, which was agreed by Highland Council on 3 September, for further scrutiny.

The Committee is invited to:-

i.   note the good progress on delivering the agreed actions in the 2014/15 Code of Corporate Governance;
ii.  note the Full Assurance provided by the Internal Audit report on the delivery of the 2013/14 Code;
iii. note that the Annual Report and Audited Accounts for the Highlands Charitable Trust will be reported to the Highland Council in October 2015; and
iv.  scrutinise the 2015/16 Code of Corporate Governance.

7. Public Performance Reporting – Meeting Annual Audit Direction 2013/14
Aithris air Dèanadas Poblach – A’ Coinneachadh Stiùireadh Sgrùdadh Bliadhnail 2013/14

Members are advised that Audit Scotland recently reviewed and reported on the Council’s public performance reporting for 2013/14 and set out new criteria to support improvement activity.

In this connection, there is circulated Report No. AS/20/15 dated 25 August 2015 by the Head of People and Performance which informs Members that an action plan has been prepared following review of this report aimed at improving our future public performance reporting.

The Committee is invited to:-

i.   note the content of the assessment in Appendix 1 of the report; and
ii.  approve the action plan detailed in Appendix 2 and the actions in Paragraph 2.5 of the report.

8. Scottish Public Service Ombudsman Cases Received by the Council – Update Report 
Cùisean Ombudsman Sheirbheisean Poblach na h-Alba a Fhuaireadh leis a’ Chomhairle – Aithisg as Ùr

There is circulated Report No. AS/21/15 dated 16 September 2015 by the Chief Executive which sets out the number and types of complaint about the Council that have been determined and upheld by the Office of the Scottish Public Services Ombudsman (SPSO) in the period since the last report to Audit and Scrutiny Committee.

The SPSO reports can be read in full at: http://www.spso.org.uk/

The Committee is invited to consider and note the details of the report.

9. Audit Scotland National Reports 
Aithisgean Nàiseanta Sgrùdadh Alba

There is circulated Report No. AS/22/15 dated 11 September 2015 by the Head of Audit and Risk Management which provides details of the National Reports issued by Audit Scotland and the action taken within the Council to address the report findings as follows:-

• Audit Scotland National Report – Borrowing and Treasury Management in Councils
• National Fraud Initiative

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

10. External Audit Reports  
Aithisgean Sgrùdaidh bhon Taobh A-muigh

There will follow the external audit reports prepared by the Council’s External Auditors (Audit Scotland) issued since the last Audit and Scrutiny Committee:-

• Review of Internal Controls 2014/15
• Annual Audit Report 2014/15 to Members of the Highland Council and Controller of Audit

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

11. Scrutiny Review – Attendance Management 
Ath-bhreithneachadh Sgrùdaidh – Rianachd Neo-làthaireachd

There is circulated Report No. AS/23/15 dated 14 September 2015 by the Head of Audit and Risk Management provides the outcome from the Scrutiny Working Group’s review of Attendance Management.

There is also circulated for information the Minutes of the Scrutiny Working Group meetings held on 20 November 2014, 13 February, 26 February, 10 March, 5 May 2015 and 18 June 2015 for approval.

The Committee is invited to consider and note the Scrutiny Working Group’s report on Attendance Management together with the actions to be taken to address the findings.

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 
Ath-bhreithneachadh In-sgrùdaidh

There is circulated to Members only Report No. AS/24/15 by the Head of Audit and Risk Management which summarises a final confidential report issued since the date of the last meeting as follows:-

• Chief Executive’s Office – Governance of Inverness Old Town Arts and Inverness City Arts

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