Agenda and minutes

To provide an opportunity for Members and Officers to declare any personal and/or prejudicial interests in any item on the agenda

No interests were declared.

In accordance with Procedure Rules Nos.11 and 35 a period of 10 minutes is allocated for members of the public to address the meeting on any matter relevant to the work of the meeting. Individual members of the public may speak for up to 5 minutes but the Chairman will decide how the period of time allocated for public speaking will be apportioned where there are a number of speakers. Members of the public are not required to give notice to use this facility. However, as a matter of courtesy, a period of 24 hours’ notice is encouraged.

Members of the public wishing to ask a question at the meeting should provide three clear working days’ notice, in writing, in order for an informed answer to be given.

There were no members of the public wishing to speak or ask a question.

To approve the minutes of the meeting held on 25^th March 2010.

RESOLVED

That the minutes of the meeting held on 25^th March 2010 be approved as a correct record.

To consider a report presenting the Audit Commission’s Annual Audit and Inspection fees for 2010/11. 

The Committee considered a report on the Audit Commission’s Annual Audit and Inspection fees for 2010/11.

The Audit fee letter, which was attached as Appendix A to the report, set out the audit work to be undertaken during the year in relation to the financial statements, the Use of Resources assessment and Value for Money conclusion and certification of grant claims and returns. The Inspection fee letter, which was attached as Appendix B to the report, set out the assessment and inspection work to be undertaken in accordance with the Comprehensive Area Assessment (CAA) framework.

Andrea Castling from the Audit Commission attended the meeting to present the proposals and answer questions.

The total indicative fee for the audit for 2010/11 was £397,500 (exclusive of VAT).  This was based on the Audit Commission’s national fee rate with an uplift of 9% to reflect the inherent audit risk in the Council’s second year of operation. The increase in fee for the financial statement elements of the audit reflected the costs of additional audit work arising from the International Financial Reporting Standards (IFRS). 

The quoted audit fee for 2010/11 exceeded the budget provision by £67,111. The total inspection fee for 2010/11 of £52,225 exceeded the budget provision by £35,725. Both overspends would be met from Council balances.

Members discussed with Andrea Castling the basis for this year’s fees, the prospects for the future and how the Council compared with similar authorities.

RESOLVED

That

(1)   the Audit Commission’s letter on the Annual Audit Fee for 2010/11  be received (Appendix A);

(2)   the Audit Commission’s letter on the Annual Inspection Fee for 2010/11 be received (Appendix B); and

(3)   the proposed work programme, indicative fees and associated budgetary implications be noted.

To receive and comment upon the Internal Audit Plan for 2010/11.

The Committee considered a report on the Internal Audit Plan for 2010/11.

The Head of Internal Audit had prepared a risk-based audit plan (Appendix A to the report) which had been submitted to the Governance and Constitution Committee for approval. The plan covered the five key themes agreed at the previous meeting:

Work to support corporate governance

Fundamental financial systems

Key departmental systems

Anti-fraud and corruption

Strategic review

The Head of Internal Audit reported that the budget for the internal audit function currently provided for sufficient staffing levels to fulfil the function. A number of key vacancies in the section would be filled by July. This should resolve some of the skills gaps identified previously and mean that there was adequate resource to complete an effective audit work plan.

There were a number of areas of training required to assist the continuous development of staff. These were being identified through the performance review process and the work force plan. All internal audit staff had received training in risk-based auditing and lean thinking.

RESOLVED

That the approach to internal audit planning and the content of the internal audit plan be endorsed.

To consider a report summarising member training and development events held during 2009/2010 and outlining planned activities for 2010/2011. 

The Committee considered a report summarising member training and development events held in 2009/10 and outlining planned activities for 2010/11.

The Member Development Panel had been appointed in January 2009 to identify priorities for member learning and development; discuss and agree procedures for its delivery; review the effectiveness of the Member Development Programme and the Member Development Strategy; and  act as a conduit for the exchange of information from and to political groups and the Portfolio Holder for Resources.   

The Panel, chaired by Councillor Wesley Fitzgerald, had met on a regular basis to discuss matters associated with Member learning and development and had developed the framework under which Member training was delivered. Notable successes had included development of the Member Development Strategy; contributing to the Council’s successful application for accreditation under Level One of the North West Charter on Elected Member Development; and working in partnership with Officers/external bodies to deliver a comprehensive Development Programme to meet the needs of the Council’s elected Members.        

Appendix 1 to the report provided a summary of the subjects offered to Members during 2009/2010 and the attendance levels recorded for each event. 

Work was now underway on putting together the Member Development Programme for 2010/2011.  Appendix 2 to the report set out the three elements which would make up the Programme: (1) Topics already confirmed and entered into the training diary; (2) Core subjects relating to the Council’s governance role; and (3) Proposed topics suggested by the Panel, based on Members’ needs.      

Other activities planned for the coming year included:

Evaluation of Training

North-West Charter on Elected Member Development - Level Two exemplar status

Personal Development Plan Interviews

Induction for new Members following the May 2011 elections

Members commented that the proposed list of topics in Part 3 of Appendix 2 should be expanded to include appropriate scrutiny training. They asked that dates for the courses be identified and communicated to Members as soon as possible.

RESOLVED

That

(1)   the report be noted;

(2)   the proposed topics listed in Part 3 of Appendix 2 be approved, subject to the addition of scrutiny training, and dates for the courses be identified and communicated to Members as soon as possible; and

(3)   the Member Development Officer be highly commended for her work on Member training and development over the last year.

To consider the appointment of the Authority’s Statutory Scrutiny Officer.

The Committee considered a report on the appointment of a Statutory Scrutiny Officer.

Section 31 of the Local Democracy, Economic Development and Construction Act 2009 required all authorities in England to designate a Scrutiny Officer, with the exception of district councils in two-tier areas. The functions of this role were to:

1. Promote the role of the authority’s Overview and Scrutiny Committee or Committees.
2. Support the authority’s Overview and Scrutiny Committee or Committees and the Members of those committees.
3. Provide support and guidance to:

?         Members of the authority

?         Members of the executive of the authority, and

?         Officers of the authority

in relation to the functions of the authority’s Overview and Scrutiny Committee or Committees.

An Officer designated by a local authority under this section was to be known as the authority’s ‘Scrutiny Officer’.

A local authority may not designate any of the following under this section:

1. The head of the authority’s paid service designated under section 4 of the Local Government and Housing Act 1989;
2. The authority’s Monitoring Officer designated under section 5 of that Act;
3. The authority’s Chief Finance Officer, within the meaning of that section.

The Corporate Scrutiny Committee had considered the matter on 19^th April 2010 and had concluded that the Democratic Services Manager would be the most appropriate appointment within the Council.

RESOLVED

That Council be recommended to agree that the Democratic Services Manager be appointed as the Statutory Scrutiny Officer.

To consider an amendment to the Constitution to include a provision relating to recorded votes at committee and sub-committee meetings.

The Committee considered an amendment to the Constitution to include a provision relating to recorded votes at committee and sub-committee meetings.

Paragraph 31 of the Committee Procedure Rules dealt with voting arrangements at committee and sub-committee meetings and currently read as follows:

“31      Voting

31.1    Voting at Committee and Sub-Committee meetings will be by a show of hands.

31.3    A recorded vote will not be taken if the vote has already begun to be taken by a show of hands.”

In order to complete these provisions, it was necessary to include a paragraph on the requirements for taking recorded votes.

RESOLVED

That Council be recommended to approve the adoption of the following provision and its incorporation into the Council’s Committee Procedure Rules:

“At committees, sub-committees or special committees, when a Member stands in his/her place and asks for a recorded vote to be taken, and one other Member stands in his/her place to support the request, the vote will be recorded to show whether each Member present voted for or against the motion or abstained.”

To consider proposals for the reallocation of committee responsibilities and the creation of two new committees in place of the existing Governance and Constitution Committee.

Members considered a report proposing the creation of two new committees in place of the existing Governance and Constitution Committee.

In a climate of increasing need for strong governance arrangements, transparency and clear lines of responsibility, it was considered good practice to have a separate committee which incorporated the requirements of good corporate governance which had an independent assurance function separate from any other responsibilities. The Code of Practice for Internal Audit in local government (CIPFA 2003) required that “the authority have an independent Audit Committee”.

CIPFA recommend a statement of purpose for the Committee:

“the purpose of the Audit Committee is to provide independent assurance of the adequacy of the risk management framework and the associated control environment, independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment, and to oversee the financial reporting process.”

CIPFA guidance also stipulated that:

“To be effective, the audit committee needs to be independent from executive and scrutiny.”

It was therefore proposed that the “audit-related” functions and powers of the Governance and Constitution Committee, appropriately modified in line with current thinking, should be transferred to a new ‘Audit and Governance Committee’. The existing Governance and Constitution Committee would retain the remaining functions and undertake these under the new title: the ‘Constitution Committee’.  Subject to any changes agreed by its Chairman, the latter Committee would retain its existing programme of meetings and its membership would be the same as that of the existing Governance and Constitution Committee.

Appendices B and C to the report set out the powers and functions of the proposed Audit & Governance Committee, and the Constitution Committee, respectively.

The report proposed that the Audit and Governance Committee would have 9 members. According to the existing political proportionality of the Council, this would normally result in a 7:1:1:0 political balance on the Committee. However, this allocation would mean that the entitlement to seats across the Council would no longer be in proportion. This would have been rectified by changing the allocation of seats on the new committee to 7:2:0:0, and this allocation was therefore proposed in the report.

However, the Labour Group had chosen to forego a seat on the Lay Member Appointments Committee in order to secure representation on the new Committee. This would result in an allocation of seats on the new Committee of 7:2:1:0.

In considering the proposed terms of reference for the Audit and Governance Committee as set out in Appendix B of the report, Members agreed that paragraph 4 should be amended to read as follows:

“4.  ensuring the Council has in place appropriate policies and  mechanisms to safeguard the Council’s resources and test value for money;”

RESOLVED

Council be recommended to agree that

(1)   a new Audit and Governance Committee be established, with the powers and functions set out in Appendix B of the report (together with the expanded responsibility at paragraph 4 as recommended by the Governance and Constitution  ...  view the full minutes text for item 9.