IRVINE, 18 June 2007 - At a Meeting of the Scrutiny Committee of North Ayrshire Council at 2.00 p.m.
Present
Matthew Brown, Jean Highgate, Alan Hill, John Hunter, Pat McPhee, David Munn and Alan Munro.
In Attendance
I. Snodgrass, Chief Executive; J. Travers, Corporate Director (Educational Services); I.T. Mackay, Assistant Chief Executive (Legal and Protective); A. Herbert, Assistant Chief Executive and I. Gibson, Chief Internal Auditor (Finance); G. Lawson, Corporate Support Manager, A. Wattie, Communications Officer and M. Anderson, Corporate Support Officer (Chief Executive's).
Chair
Councillor Brown in the Chair.
1. Appointment of Chair and Vice Chair
The Council, at its adjourned Statutory Meeting on 22 May 2007, agreed that the Chair and Vice Chair of the Scrutiny Committee be appointed by the Committee at its first meeting. Accordingly, nominations were sought for these positions.
Councillor Hill, seconded by Councillor McPhee, moved the appointment of Councillor Brown as Chair of the Scrutiny Committee and Councillor Hunter as Vice Chair. There being no further nominations, the Committee agreed that Councillors Brown and Hunter be appointed as Chair and Vice Chair, respectively.
2. Remit of Scrutiny
Submitted note of the proposed remit of the Scrutiny Committee. The remit proposed a Committee of 9 Members of the Council, comprising 3 Members appointed by the Labour Group, 3 Members appointed by the SNP Group, 1 Member appointed by the Conservative Group and 2 Members appointed from among the Independents. It also includes monitoring and reviewing the Council's work, scrutinising decisions made by the Council or Executive, setting its own work programme and promoting the highest standards of conduct by elected Members. Provision is made within the remit for an Executive decision to be referred or "called in" by the Scrutiny Committee.
The Council approved the remit of the Scrutiny Committee on 22 May 2007, subject to consideration of the detail of the Scheme being remitted to the next meeting of the Council. Discussions have taken place following the Council meeting and the terms of the remit have been amended to reflect the outcome.
The Committee agreed to recommend to Council the adoption of the revised remit of the Scrutiny Committee as detailed in Appendix SC1.
3. Internal Audit's Terms of Reference and Strategy
Submitted report by the Assistant Chief Executive (Finance) on the Terms of Reference for Internal Audit and the strategy for delivering the service in accordance with the Terms of Reference.
Internal Audit's current Terms of Reference and Strategy, as set out in the appendices to the report, were originally approved by the Corporate Services Committee in May 2004 and subsequently updated to take account of organisational changes.
The Terms of Reference detail the requirements placed on Internal Audit in terms of its role, responsibilities and objectives, its reporting lines and relationships, and its right of access to information and assets. The Internal Audit Strategy provides information on the aims of the internal audit section, how these will be achieved and how they relate to the strategic aims of the Council. Both documents are consistent with good corporate governance practice and comply with the Code of Practice for Internal Audit in Local Government.
Noted.
4. Internal Audit Annual Report 2006/07
Submitted report by the Assistant Chief Executive (Finance) on the work carried out by Internal Audit during 2006/07 and the assessment of the Council's internal control environment.
The Internal Audit Annual report for 2006/07 was attached as an appendix to the report. The Audit Plan was noted by the Audit and Standards Committee of 17 May 2006. An interim progress report was then submitted to the Audit and Standards Committee of 6 December 2006. On the basis of the Internal Audit work carried out, the Council's internal control systems are operating effectively and provide assurance that management policies are adhered to, assets are safeguarded, reliable financial information in produced and statutory requirements met.
The Committee agreed (a) that the Assistant Chief Executive (Finance) provide Members with further information on the proportion of 2006/07 benefit overpayments attributable to applicants failing to disclose their full circumstances; and (b) to note the report.
5. Internal Audit Plan 2007/08
Submitted report by the Assistant Chief Executive (Finance) on the Internal Audit Plan for 2007/08.
The assessment of audit need, attached as Appendix 1 to the report, is updated on the basis of information obtained from a number of sources, including strategic and operational risk assessments, the Council Plan, requests from Services, Audit Scotland's report on Priorities and the Risks Framework, and the Council's revenue and capital estimates. From this, an annual plan is prepared each year, identifying the audit assignments to be carried out.
The Internal Audit Plan for 2007/08 was set out in Appendix 2 to the report and provides for:-
Reviews of internal controls and financial systems, IT system controls, corporate governance arrangements and compliance with Following the Public Pound;
Audit of statutory performance indicators;
Compliance visits to Council establishments;
Data interrogation;
Data matching and special investigations; and
Contingency for unplanned work.
Noted.
6. Approval of Business Grants. Etc.
Authority to approve the award of business grants made by the Council in its own capacity and as an agent for other funding bodies, was previously remitted to the Chief Executive, in consultation with the Chair and Vice Chairs of the former Corporate Services Committee.
The Executive, at its meeting of 6 June 2007, agreed to adopt a similar mechanism, whereby the assessment and determination of applications would be undertaken by the Chief Executive, or his nominee, in consultation with the Leader and Depute Leader of the Council. It was also agreed that scrutiny would be undertaken by the Scrutiny Committee, which will receive reports on a 6-monthly basis, and that, to enable this arrangement to operate more effectively, a member of the Scrutiny Committee should be identified to work with the Chief Executive and Executive Members in carrying out this task.
The Committee agreed that Councillor Brown be appointed to work with the Chief Executive and Executive Members on the assessment and determination of applications for business grants, loans and service schemes.
7. Schools Estate Review
Submitted report by the Chief Executive on a remit from the Executive in respect of the establishment of a Member/Officer working group to review the school estate in North Ayrshire.
Discussion took place on the remit from the Executive of 6 June 2007 to the Scrutiny Committee. The Chief Executive advised on the appropriateness of this referral in the context of the Scrutiny Committee's current remit and terms of reference, and on the Scrutiny Committee's role in undertaking such reviews. Clarification was sought by the Committee on the role of the portfolio-holder for Children's Services (up to school leaving) in relation to the school estate review.
The Committee (a) agreed to note the advice that the establishment of member/officer working groups to review Council services falls within the remit of the Scrutiny Committee; (b) that it be remitted to the Chair of the Scrutiny Committee to undertake discussions with the Chief Executive and Leader of the Council on the detailed operation of any review arrangements; (c) that the outcome of the Chair's discussions be reported to the next meeting of the Council; and (d) meantime, to continue consideration of the establishment of a Member/Officer working group for the review of the school estate in North Ayrshire.
8. Review of Library Services
Submitted report by the Chief Executive on a remit from the Executive in respect of the establishment of a Member/Officer working group to review public library operations in North Ayrshire.
Discussion took place on the remit from the Executive of 6 June 2007 to the Scrutiny Committee. The Chief Executive advised on the appropriateness of this referral in the context of the Scrutiny Committee's current remit and terms of reference, and on the Scrutiny Committee's role in undertaking such reviews.
The Committee (a) agreed to note the advice that the establishment of member/officer working groups to review Council services falls within the remit of the Scrutiny Committee; (b) that it be remitted to the Chair of the Scrutiny Committee to undertake discussions with the Chief Executive and Leader of the Council on the detailed operation of any review arrangements; (c) that the outcome of the Chair's discussions be reported to the next meeting of the Council; and (d) meantime, to continue consideration of the establishment of a Member/Officer working group for the review of public library operations in North Ayrshire.
9. Urgent Item
9.1 Date of Next Meeting
The Chair advised that the next scheduled meeting of the Scrutiny Committee was 27 August 2007 and sought the agreement of Members to schedule a further meeting prior to that date.
The Committee agreed that its next meeting take place on 8 August 2007.