Minutes:
Members of Cabinet, Overview and Scrutiny Committee and the Budget and Performance Panel had been invited to attend the presentation of the annual Audit and Inspection Letter 2003/04, given by Fiona Blatcher, (Audit Commission). It was reported that the Council had developed an ambitious improvement plan and had demonstrated a clear focus on achieving that plan. It was reported that a great deal had been achieved in a relatively short space of time, however the Council needed to retain a strong focus. It was outlined that with regard to regeneration the Council’s approach was considered fair with promising prospects for improvement. The report suggested that the Council was not sufficiently integrating its work (and the work of partners) in economic development with that in housing, community development and skills training, although it was noted that improvements had been made since the inspection.
Members were advised that there were no major concerns relating to the statement of accounts although to maintain financial integrity of the accounts consideration should be given to recording and valuation arrangements for fixed assets. Members were also informed that the financial position of the Council had been strengthened in 2003/04 and this had continued into 2004/05. Improved financial planning processes had contributed to this and it was noted that the Star Chamber process had been effective in formulating the budget. Arrears levels had also improved. It was noted that due to the Council’s success in obtaining additional funding, the capital programme had enlarged and it was important that the Council continued to monitor this.
Governance arrangements were reported as being generally sound but further work was required to develop the implementation of effective risk management practices and the monitoring of personal and prejudicial interests.
Members were advised that the Crinkley Bottom issues were now finished and the accounts for 1994/5 to 2000/01 had been closed. However, the Accounts for 2001/02 remained open due to the consideration of the lawfulness of decisions surrounding the early retirement of a former employee.
The report identified four key areas of action required by the Council:-
· Maintain a concentrated focus on delivery of the Council’s improvement plan.
· Implement the recommendations in the Regeneration inspection report.
· Improve the quality of performance information.
· Improve risk management arrangements over the next 12 months.
The Chairman thanked Fiona Blatcher and Members sought clarification on several issues raised in the Report. With regard to proposals for a more streamlined audit, Members were informed that a Revised draft Code of Audit Practice had been formulated. This adopted a risk-based approach with a stronger emphasis on value for money, focusing on corporate performance and financial management arrangements rather than individual services and functions.
Attention was also drawn to the concept of regeneration. The report acknowledged that the Council had been addressing economic development but suggested that if disadvantaged residents were to benefit from economic growth the Council must address social and environmental aspects of regeneration as well as economic ones. The Chief Executive maintained that regeneration programmes within the council tried to take account of the physical, social and economic factors in a way that had not been considered necessary ten years previously.
Resolved:
That the report be noted.