Category Archives: Audit and Risk Management

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Audit and Risk Management Committee (Wirral Council) 15th April 2013


Present:
Cllr John Hale
Cllr Jim Crabtree (Chair)
Cllr Steve Foulkes
Cllr John Salter
Cllr Darren Dodd
Cllr Alan Brighouse
Cllr Geoffrey Watt
Cllr Joe Walsh
Cllr James Keeley

No declarations of interest were made.

David Armstrong, Assistant Chief Executive said he would speak to the first part of this agenda item on the Contract Procedure Rules. He said that when he had started at Wirral Council Chris Batman had given him three bits of advice. The first advice was not to go up the carpet on the main stairs, the second was not to reply to letters from councillors using their Christian names and the third was not to take things to committee that are only half-done. He said for the first time, he’d brought something which was a “work in progress”.

He said that Graham Burgess had asked Peter Timmins and himself to look at the financial regulations and Contract Procedure Rules. Mr. Armstrong said the set they had was “not user-friendly” or “easy to follow”. They had looked at the rules used by other authorities and had had a discussion as to whether they should modify the existing rules or look towards better examples from other local authorities. The latter option had been chosen.

Cheshire West and Chester’s had been chosen as they were “more straightforward and simple to follow”, that their rules had been “tried and tested for some time” and that it would make joint procurement (with Cheshire West and Chester) easier too. For what happened in the rest of this meeting this link takes you to the correct part in the video.

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A roundup of Wirral Council meetings: Sustainable Communities, Council Excellence and Audit and Risk Management


In a change to the more detailed format, below are brief write ups of three meetings this week.

Sustainable Communities Overview and Scrutiny Committee 29th January 2013

There was a long presentation by Biffa, followed by questions from councillors. The meeting also discussed recycling, dog fouling enforcement, flytipping (including a recent rise in asbestos flytipping), managing highway structures (bridges, culverts etc), libraries, Wirral Heritage Strategy, food hygiene ratings, no cold calling zones and climate change.

Councillors asked Biffa about the recent missed bin collections and how the new changes (winter tyres and snow shoes) affected collections during the recent cold weather. On food hygiene the Food Standards Agency website was highlighted which shows the star rating for the 1,698 food businesses on the Wirral. A councillor was surprised at the nearly two hundred businesses on Wirral with a one star (which means major improvement necessary) or two star (which means improvement necessary) rating, however most businesses had a rating of four or five stars.

The increased use of volunteers in libraries was discussed and the problem of some households in areas at risking of flooding having problems obtaining insurance was also highlighted.

Council Excellence Overview and Scrutiny Committee 30th January 2013

Most of the meeting was a discussion about Wirral Council’s finances including measures to reduce this year’s overspend and how overspends in the past had been paid for by one-off measures that wouldn’t be available in future years. The investigation into Social Services debt was discussed also.

Audit and Risk Management Committee 31st January 2013

The HESPE Action Plan provoked discussion at this meeting. David Armstrong gave a verbal update on it and said that he’d written to all directors and acting directors for an update over the dates in the plan and had received no correspondence to say that they wouldn’t be able to stick to the timescales. The Acting Director of Technical Services had written to him stating there had been no interest from the private sector in consultancy work.

The Action Plan was being monitored by Fiona Johnstone’s department and was going to the Improvement Board and Council Excellence committee as well as being incorporated into Concerto. He assured people of the focus on it and that the actions would be followed through. Cllr Ron Abbey referred to it as a pantomime, saying “Did he or didn’t he?” and asked how much it had cost? Cllr Foulkes said that similar matters were not the remit of their committee, that there’d been two contrary reports, the Audit Commission report and the Penn report. He wanted continuing dialogue with the whistleblowers which he thought was the best way to deal with the matter. Cllr Ron Abbey said he would take that on board. Cllr Foulkes said they needed to find the common ground between the points in the Penn report and the action plan.

Cllr Green welcomed the reassurance, but wanted tests that the actions had been carried out. He said they’d had a range of reports that lessons had been learnt and a culture embedded, so it was useful to have it in writing. He referred to project management problems and who was supposed to be in charge of the Project Board and referred to issues with clarity, responsibility and project management.

Cllr Brighouse said he broadly endorsed the remarks, but the Penn report was ongoing as the recommendations and outcome were still to be resolved and agreed. He said it was appropriate to have some discussion covering the issues and whether there were any governance implications but it was “wrong to pretend there was nothing there”.

The Chair, Cllr Jim Crabtree said there’d be a further report next meeting.

There was also an update given (again by David Armstrong) on proposed changes to the gifts and hospitality/conflicts of interest procedures for officers.

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Audit and Risk Management Committee 26th November 2012 Part 1 Highway and Engineering Services Contract


The Chair of the Audit and Risk Management Committee started the meeting with a one minute silence for two councillors who had recently died.

There were no declarations of interest and the minutes of the meeting held on 19th September were quickly agreed.

The first item was the report on the action plan in response to the District Auditor’s report into the Highway and Engineering Services Contract. Colin Hughes informed the Committee that it had been presented to Cabinet on the 18th October.

Councillor Foulkes asked for assurance that Wirral Council was in communication and there was a dialogue with the people who had blown the whistle on the contract?

Colin Hughes replies that he had not been involved personally but could make enquiries. David Armstrong said that when he had been Acting Chief Executive there had been a continuing exchange between himself and the whistle-blower.

Cllr Brighouse referred to Recommendation 14, he wanted them to spend more time looking at implementation which in the past he thought they hadn’t done as well at.

Cllr Abbey thought the timescale of January for Recommendation 20 (the review of Internal Audit) was not much time to get councillors involved.

Mark Niblock, Deputy Chief Internal Auditor said there was currently a review into the effectiveness of Internal Audit and the actions taken to address issues. Following the review a report would be brought back to the Audit and Risk Management Committee.

Cllr Abbey referred again to recommendation 20.

Peter Timmins said in order for councillors to be informed, there was preliminary work that needed to be done. He told them that they were currently sharing a Chief Internal Auditor with Liverpool City Council, who was working with their deputy Chief Internal Auditor Mark Niblock. Mr. Timmins said that they didn’t want to get sidetracked with detailed discussions, which were quite technical, but next month they would produce proposals and anything councillors raised would be answered.

Cllr Sullivan said that it worried him when he said it was too technical for the councillors, he said it was important that the councillors scrutinise before decisions were made. He said he had concerns that the scrutiny committees get reports on serious stuff, but all the decisions had been made and was concerned by being told it’s a bit too technical for councillors.

Peter Timmins responded that they would be bringing recommendations to the Audit and Risk Management Committee, he wanted to translate it out of “audit speak” and their intention was to engage fully and not to hide.

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Audit Commission Report on Wirral Council (public interest report)


There have been a number of readers interested in the public interest report published by the Audit Commission. Links to it and related material are below.

The 24-page report (as a pdf file) itself on the Audit Commission’s website entitled “Wirral Council: Report in the public interest” .

The Wirral Council press release about it dated 8th June 2012.

A page on the Audit Commission website specifying the report is about Wirral Council’s procurement process for the provision of highway and engineering services in 2008/09.

There have also been a number of press articles about it, Twitters etc… I’m pretty sure it’ll be discussed at the Audit and Risk Management Committee meeting on Thursday too, based on the tweet of a Labour councillor.

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Audit and Risk Management Committee (Wirral Council) 1st February 2012 Part 1


Present:

Committee

Cllr Crabtree (Chair)

Cllr Dodd

Cllr Mountney

Cllr Brighouse

Cllr John Salter deputising for Cllr Ron Abbey

Cllr Irene Williams

Cllr Jeff Green

Officers

Mark Delap (Committee Clerk)

Deputy Director of Finance

Chief Internal Auditor

Bill Norman (Legal Adviser/Head of Law, HR and Asset Management Department)

Tom Sault

Audit Commission
Mike Thomas (District Auditor)

Liz Temple-Murray

The Chair asked for declarations of interest. There weren’t any declared, so the Committee considered the minutes of the meeting held on the 29th November 2011.  The Chief Internal Auditor said they had been asked in the minutes to circulate a copy of the Internal Audit Manual.

Cllr Darren Dodd referred to amendments to the minutes. The Chair said if he was OK with the explanation Cllr Dodd had received from Mark Delap? He asked if it was OK if he signed the minutes?

The Chair moved onto item 3 Annual Governance Report 2010/2011 Action Plan Update.

The Deputy Director of Finance referred the Committee to the Action Plan and recommendations.

The Chair asked for comments.

There were no comments, so the Chair moved onto item 4 Statement of Accounts 2011/2012 Review of Arrangements.

Tom Sault introduced item 4. He referred to the Statement of Accounts and Action Plan and updated the Committee on areas of further progress. He said he was happy to take any questions?

Cllr Green was keen that there was not a repeat of last year and following criticism by external audit didn’t want the situation to happen again. He asked Tom to clarify and comment on the proposal for closing the Statement of Accounts.

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Audit & Risk Management Committee (Wirral Council) 29th November 2011 Part 6 Internal Audit Update


Cllr Jim Crabtree asked if Cllr Ron Abbey had a question.

Cllr Simon Mountney said it was unfair to ask [Colin Hughes]. He said the question should be put to the Director of Law, Human Resources and Asset Management [Bill Norman] at the earliest opportunity.

Cllr Ron Abbey said the wanted his question minuted. He referred to item 4 section 4.3 (b)(i) and the audit undertaken of the Department of Adult Social Services Day to Day Procurement System. He said that the issues raised in the audit had not been addressed by the Department of Adult Social Services, but following the reorganisation responsibility now rested with the Department of Law, Human Resources and Asset Management. He wanted to know the timescale and when the committee would see it, even as an interim announcement between meetings sent to the Chair, Deputy Chair, spokespersons and the rest of the committee.

Colin Hughes said that he was sure they would their best to comply, but he was not familiar with it.

Cllr Ron Abbey said the Department for Adult Social Services actions had not been actioned and responsibility had been given to the Department of Law, Human Resources and Asset Management to resolve it following the reorganisation. He wanted timescales as to when it would be delivered and reported on in the interim period between meetings. It was important that recommendations were made into actions as speedily as possible rather than not actioned. Cllr Abbey said this issue went back months and months and months. He wanted them to be a bit more prompt and he said the critical report showed we’re “not good at dealing with anything as an organisation”.

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Audit & Risk Management Committee (Wirral Council) 29th November 2011 Part 5 Internal Audit Update


Cllr Jim Crabtree said they would find someone.

Cllr Abbey said he had other questions on actions and timescales.

Cllr Simon Mountney said he was happy to talk, but the decision over not having a legal adviser because he had a meeting tomorrow he thought “a disgrace”. He repeated that he thought it was a disgrace.

Cllr Jim Crabtree said it was his decision, that Sarjit had asked and that had been his response.

Cllr Simon Mountney said he was delighted that Colin was here, but that Colin didn’t know about the items on the agenda. He wasn’t going to ask Colin to go away but he felt it was a waste of their time.

Cllr James Keeley said he was happy to move forward.

Cllr Ron Abbey said he wasn’t being disrespectful, but that [Cllr Crabtree] should have asked the committee who would’ve said no. He felt that the Department for Adult Social Service had kicked it into the long grass with no answer. He said was important for good governance and for advising Cabinet. He was mindful that there would be the holidays soon. They would soon be dealing with the Budget, after that would be the local elections, then things would be delayed to the Mayor Making. He was sorry to labour the point, but it was symptomatic of the way things were happening.

Cllr Jim Crabtree said would be appropriate for Bill Norman to write to members of the committee.

Cllr Ron Abbey suggested this was done by “pony express” not “snail mail”.

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Audit & Risk Management Committee (Wirral Council) 29th November 2011 Part 4 Internal Audit Update


Cllr Abbey said he had to be as blunt as this as time after time, actions had not been actioned. He had suspicions it was deliberate. He said the corporate governance recommendations had not been actioned, damage done and that they should have people sitting at this committee as it was a very important meeting in going forward. Cllr Abbey said they can’t do corporate governance without the relevant officers present and it was symptomatic of the problems.

Cllr Jim Crabtree said he apologised on Surjit’s behalf, Surjit had a meeting tomorrow and work to do and had asked Cllr Crabtree if he was needed.

Cllr Ron Abbey said they had more important and pressing matters and nothing was more important than good…

Cllr Jim Crabtree said Colin Hughes was in the building.

Cllr Ron Abbey said senior people were not here and they were “paying lip service” to “addressing issues”.

Cllr James Keeley said he agreed. It was a “statutory committee” and it was outrageous they had no legal adviser.

Cllr Jim Crabtree said he could adjourn the committee until one was found.

Cllr Alan Brighouse said he shared the concerns.

Cllr Jim Crabtree said Surjit had asked if he was really needed as tomorrow he had a tribunal.

Cllr Ron Abbey said he appreciated officers could be unable to attend, but a replacement officer should be a matter of course. He appreciated David Taylor-Smith was here on behalf of the Department of Finance, but there was no-one from the Department of Law, Human Resources and Asset Management.

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Audit & Risk Management Committee (Wirral Council) 29th November 2011 Part 3 Internal Audit Update


The committee considered the Internal Audit update. A council officer said it covered from the beginning of September to October and that he wanted to bring to the committee’s attention several items. At 1.5 the format and content of Internal Audit reports was under review by a working party. This included the Chief Internal Auditor, Deputy Chief Internal Auditor, Chair of the Audit & Risk Management Committee and Deputy Chair of the Audit and Risk Management Committee. 4.6 detailed several high-profile items, there was no specific recommendation for action but he wanted to highlight these. 4.3(b)(i) dealt with the issue of the failure to implement agreed recommendations, it needed further action to encourage officers to urgently implement the recommendations.

The officer said that 4.2.1 dealt with Internal Audit staffing as the “current staffing was in peril” due to maternity leave, sickness leave which had been exacerbated by two officers unavailable as they were seconded full-time to deal with the Anna Klonowski recommendations. A member of staff was also going on jury service. Group auditors had been seconded to the corporate governance team full-time from Monday. They had been authorised to engage appropriate staff through the corporate agency contract. Staff would be selected next week.

Cllr Ron Abbey said he had a number of questions and thanked officers for the report. He said that staffing issues were covered in item 5 but caused short-term difficulties. Referring to 4.3 (b)(i) he said it could slip off the side and never be actioned. As it was high risk and high priority, he said that the officer dealing with it was not sitting here was “ridiculous” and “scandalous”.