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 Thursday, 16 June 2016 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. Internal Audit Reviews and Progress Report 
Ath-bhreithneachaidhean In-sgrùdaidh agus Aithisg Adhartais

There is circulated Report No. AS/6/16 dated 6 June 2016 by the Audit and Risk Manager which provides details of the final reports issued since the previous meeting of this Committee, work in progress and other information relevant to the operation of the Internal Audit Section.

The report also refers to amendments which require to be made to the Audit Plan for 2016/17. The final reports are as follows:-

• Care & Learning – Self Directed Support (Limited)
• Care & Learning – Inspection of Equipment in Schools (follow-up) (Limited)
• Care & Learning – Managing School Rolls (Limited)
• Community Services – Administration of Fuel (Limited)
• Community Services – Grass Cutting Contract - Monitoring and Contract Payment Arrangements (follow-up) (Reasonable)
• Corporate Development/ Finance – Review of Performance Indicators 2014/15 (Reasonable)
• Development & Infrastructure – Compliance with the Carbon Reduction Commitment Energy Scheme 2014/15 (Limited)
• Finance – Procurement - Review of the Taxi and Private Hire Vehicle Inspections Contract (Substantial)

The Committee is invited to consider the Final Reports referred to in Section 1.1 to the report and the update report provided on Ben Wyvis Primary School Project and:-

i.    note the current work of the Internal Audit Section; and
ii.   approve the amendments to the Audit Plan for 2016/17.

4.Action Tracking Report   
Aithisg a’ Leantainn Gnìomhachd

There is circulated Report No. AS/7/16 dated 6 June 2016 by the Audit and Risk Manager which provides information regarding the most recent action tracking undertaken since the last update provided to Committee on 17 November 2015.  This update covers the period from 1 November 2015 to 30 April 2016.

The Committee is invited to note:-

i.    the action tracking information provided including the revised target dates for the completion of outstanding actions; and
ii.   that the action tracking information will now be provided on a six-monthly basis.

5. Statement on Internal Control and Annual Report 2015/16 
Aithris mu In-Smachd agus Aithisg Bhliadhnail 2015/16

There is circulated Report No. AS/8/16 dated 6 June 2016 by the Audit and Risk Manager 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 Annual Governance Statement.  This is contained within the Statement on Internal Control.

The annual report also provides an overview of the Internal Audit Section’s activities and performance data for 2015/16.

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

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

There is circulated Report No. AS/9/16 dated 25 May 2016 by the Audit and Risk Manager which refers to proposed amendments to the Council’s Financial Regulations arising from the Local Authority Accounts (Scotland) Regulations 2014, operational changes to fraud investigations following the formation of the Corporate Fraud Team and an amendment in the job title of the Head of Audit and Risk Management.

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

7.  Standards Commission: Councillors’ Code of Conduct Investigation into Complaints 
Coimisean nan Inbhean: Sgrùdadh Ghearanan Còd Giùlain nan Comhairlichean

There is circulated Report No. AS/10/16 dated 3 June 2016 by the Depute Chief Executive/Director of Corporate Development which provides information in relation to complaints dealt with by the Standards Commission during the period 2015/16 in relation 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, concluded during 2015/16, the Standards Commission has found that one Member was found to have breached the Code of Conduct.  This breach will be the subject of a report to Council on 29 June.

8. Corporate Complaints Process Report   
Aithisg Ghearanan Corporra

There is circulated Report No. AS/11/16 dated 1 June 2016 by the Depute Chief Executive/Director of Corporate Development which provides an update for Members on the Council’s Corporate Complaints Process for the period 1 October 2015 to 31 March 2016 along with comparative data and includes a high level analysis of our complaint handling per service.

Progress on actions from the Public Sector Improvement Framework (PSIF) review of the Corporate Complaints Process is also included.

The Committee is invited to note the:-

i.    6 month and annual performance for Stage 1 and Stage 2 complaints; 
ii.   benchmarking and activity of the Ombudsman and Improvement Service; and
iii.  PSIF actions that have been undertaken and the ongoing work to ensure improvement.

9. Audit Scotland and Accounts Commission National Reports 
Aithisgean Nàiseanta Sgrùdadh Alba agus Coimisean nan Cunntasan

There is circulated Report No. AS/12/16 dated 2 June 2016 by the Director of Finance which presents two national reports applying to Local Government in Scotland, highlights the key messages and considers how Highland Council is responding to these. The reports are as follows:-

a)  Audit Scotland National Report - Overview of Local Government in Scotland 2016
b)  Accounts Commission Annual Report 2015/16

The Committee is invited to consider:-

i.    the national reports from the Accounts Commission and Audit Scotland;
ii.   the main issues highlighted in Section 2 of this report;
iii.  the implications and actions currently being taken by Highland Council, as per Section 3; and
iv.   any specific training needs in light of issues raised by this report.