An apology for absence was received from Mrs. Cannon

Due to the number of late reports for this meeting the Chair emphasised the importance of reports being prepared on time so that members had sufficient time to read them in advance of the meeting and the agenda pack could be consecutively numbered. In future, if it was likely that a meeting would continue into the afternoon the agenda would indicate this. However, members should expect to put aside the whole day.

To note any changes to the membership of the Committee.

The Chair welcomed Mr Hamezeian to his first meeting of the Committee.

To disclose any personal and prejudicial interests relating to any item on the agenda.

NB   The following is a summary of what constitutes a personal interest and a personal and prejudicial interest.  Please seek advice or refer to the Code of Conduct (paragraph 8) for full definitions.

Personal Interests

You have a personal interest if the issue being discussed in the meeting affects the well-being or finances of you, your family or your close associates more than most other people who live in the Electoral Division affected by the issue.

Personal interests are also things that relate to an interest you must register.

N.B. If the personal interest arises because of your membership of another public body, you only need to declare it if you intend to speak.

A personal interest should be declared as follows:

I have a personal interest in agenda item […] regarding the report on […] because I am […].

Personal and Prejudicial Interests

If you have a personal interest in a matter you will also have a prejudicial interest in that matter if the interest is one which a member of the public, with knowledge of the relevant facts, would reasonably regard as so significant that it is likely to prejudice your judgement of the public interest.  If you have a personal and prejudicial interest you must withdraw from the meeting room for that item, unless you are there to make representations and the public have the same opportunity to do so

NB You only have a prejudicial interest if the matter

·        affects your financial position or that of your family, close associate, employer etc or it

·        relates to a regulatory matter

A personal and prejudicial interest should be declared as follows:

I have a personal and prejudicial interest in agenda item […] regarding the report on […] because I am […].

Advice on this can be sought from staff in the Legal and Democratic Services.  Members are requested to seek advice, wherever possible, before the meeting starts.

There were no disclosures of interest.

To confirm as a correct record the minutes of the meeting of the Committee held on 19 April 2012 (copy enclosed).

RESOLVED,  that, subject to correcting the typographical error so as to read “Chair” in Minute No 4, the minutes of the meeting of the Committee held on 19 April 2012 be confirmed as a correct record and signed by the Chair.

To consider whether the press and public should be excluded from the meeting during consideration of any item on the agenda.

There were no items for which the press and public should be excluded.

To consider a report by the Corporate Director – Safer and Stronger Communities (copy to follow).

The Committee considered a report which provided a summary of the Quarter 4 corporate risks and all refreshed risks for 2012/13 as well as a summary of the improvements made since the last meeting.

The Corporate Director - Safer and Stronger Communities assured the Committee that the Corporate Management Team took the issue of risk very seriously. The Team had listened to members’ views and concerns and he hoped that the report gave members adequate assurance. In future all Assistant Directors would be available, if needed, to attend meetings of the Committee to discuss particular risks.

A discussion took place about the inclusion of disputes with major contractors as a risk and how this should be interpreted. Members were advised that not all major contracts were seen as corporate risks but that some contracts presented risks of commercial disputes. So that members could see whether the underlying causes of problems with contractors in the past had been addressed a recent report on lessons learned from a review of contract management would be brought to members.

Members welcomed the new way in which risk was reported and explained, which was seen as an improvement. However, there was still room for further improvement and some of the commentaries would benefit from expansion. The Chair would discus particular issues with the Assistant Director – Public Protection outside the meeting.

RESOLVED,  that:

(1)       the new pictorial representation of risk movements and the current risk profile for Corporate & Programme risks 2012 be noted

(2)               the separation of the main refreshed Corporate risks from Programme risks be noted

(3)               at each meeting of the Committee specified risks be identified in advance for detailed discussion with the relevant Assistant Director(s) invited to attend.

To consider a report by the Senior Manager – Audit (copy enclosed).

The Committee considered an update on progress regarding the 2011/12 action plan in respect of the Annual Governance Statement.

RESOLVED,  that the progress against the action plan set out in Appendix 1 to the report and the continuing work in respect of establishment control and approval of travel claims be noted.

To consider a report by the Corporate Director – Resources (copy to follow).

At a special meeting of the Committee on 19 April, the Chief Executive had presented a Governance and Internal Control Action Plan to provide assurance to Members that actions were underway to strengthen corporate risk management and internal control arrangements. This was in response to concerns members had regarding the robustness of the Corporate Risk Management approach and the increasing proportion of internal audit reports giving limited or partial assurance.

At the meeting on 19 April the governance issues had been discussed in detail and the action plan which had been prepared by the Corporate Management Team had been reviewed thoroughly by the Committee.

Members considered an update of the action plan, which gave further reassurance that governance and internal control were matters of particular importance to the Corporate Management Team and confirmed the progress of actions and improvements. This report sat alongside other reports on the agenda in providing information in support of governance and internal control matters which linked directly to the Annual Governance Statement 2011/12 and the action plan for 2012/13.

Members were pleased with the progress made but did not wish to see the same situation repeated next year or in future years. Therefore the Committee would continue to closely monitor corporate risk management and internal control arrangements.

RESOLVED,  that the updated action plan be noted,

To consider reports from:-

(1)         the Audit Commission (copy enclosed)

(2)         the Corporate Director – Resources (copy enclosed)

The Committee considered a report which summarised the progress to date on the preparations for the Council’s Statement of Accounts and the findings from the Audit Commission’s Interim Audit of financial systems for 2011/12.

The report also reviewed how recommendations from previous Audit

Commission reports had been reflected in the Council’s approach

to work for the 2011/12 accounts.

The action plan contained seven recommendations with one rated as high priority compared to the report received last year which had 19 recommendations of which 4 were rated as high priority

The Audit Commission Manager commented that she was happy with all of the responses in the Action Plan and with progress on other issues raised recently.

RESOLVED,  that

(1)               progress to date in preparation on the 2011/12 Statement of Accounts, taking into account previous year Audit Commission findings

(2)               the proposal for a Member’s Briefing on the accounts on the 17 September, in advance of the Committee considering the

Annual Governance Report from the Audit Commission on 26th

            September be noted

(3)       the Audit Commission Interim Audit Report 2011/12 be noted and

the Council’s proposed action plan be agreed.

To consider a report by the Senior Manager – Audit (copy to follow).

Members considered a report which reviewed the work of Internal Audit for 2011/12 and also set out Internal Audit’s conclusions on the system of internal controls as a result of its audit work in 2011/12. This provided an opinion on the adequacy of the Council’s control environment as a contribution to the proper, economic, efficient and effective use of resources by the Council and supported the preparation of the Council’s Annual Governance Statement for 2011/12.

In discussing the report members agreed to consider looking at waste management and transport in more detail at future meetings.

RESOLVED,  that

(1)       progress achieved in 2011/12 in delivering the audit plan and the  impacts arising from audit reports set out in Appendix 1 to the report be noted

(2)       the detailed audit work highlighted in the report, including work on

contract management, information governance and data quality, HR

systems, partnerships, direct payments and payments to carers,

and post project evaluation work - all providing limited or partial

assurances and hot assurance work be noted

(3)       the relatively high number of reports providing limited or partial

assurance which raised significant concerns about the overall

effectiveness of internal control be noted

(4)       the overall assurance provided as regards the operation of internal

controls and the arrangements for ensuring delivery of value for

money be noted

To consider a report by the Chair (copy enclosed).

Members considered a report which reviewed the work of the Committee in undertaking its work programme in 2011/12.An analysis of how the Committee matched best practice as set out in CIPFA guidance was included in Appendix 1 to the report.

RESOLVED,  that the report be noted.

To consider a report by the Corporate Director – Resources (copy enclosed).

The Committee considered a report which provided an assessment of the effectiveness of internal audit in 2011/12.

RESOLVED,  that the report and the overall positive assessment of Internal Audit’s work be noted.

To consider a report by the Corporate Director – Resources (copy to follow).

The Committee considered the draft Annual Governance Statement. It was noted that a reference to the recent Ofsted Inspection of Children’s Services would be included in the final Statement.

RESOLVED,  that

(1)               the draft Annual Governance Statement and proposed significant governance issues for 2012/13 be noted

(2)               the Corporate Director – Resources, in conjunction with the Chair and Vice Chair, be authorised to finalise the Annual Governance Statement for signature by the Leader and Chief Executive

The meeting adjourned for lunch from 12.10 pm until 12.45pm

To consider a report by the Senior Manager – Audit (copy enclosed).

The Committee considered a report which presented the Audit Strategy and Terms of Reference for Internal Audit, together with the final Audit Plan for 2012/13 following the submission of a draft plan to the March 2011 Audit and Assurance Committee.

RESOLVED,  that

(1)               the draft audit strategy for 2012/13 and terms of reference for Internal Audit be endorsed

(2)               the overall resources to be provided by the shared service be noted

(3)               the detailed audit plan for the County Council be noted

To consider a report by the Senior Manager – Audit (copy enclosed).

The Committee considered a report which set out the draft updated counter fraud and corruption policy which now incorporated the anti money laundering and anti bribery policies. It also included a draft updated whistle blowing policy which had been amended to reflect changes in the counter fraud and corruption policy.

In discussing the report it was suggested that the definition of bribery needed to be more clearly defined. It was agreed that the counter fraud and corruption policy should be revised to make it clearer that anyone who wished to remain anonymous would be able to do so.

RESOLVED,  that

(1)               the draft updated counter fraud and corruption policy set out in Appendix 1 to the report be endorsed subject to the above mentioned clarification regarding anonymity

(2)               the draft updated whistle blowing policy set out in Appendix 2 to the report be endorsed.

To consider a report by the Audit Commission (copy enclosed).

The Committee considered a paper which reported on progress in delivering the Audit Commission’s responsibilities as the Council’s external auditor, including an update on the externalisation of the Audit Practice.

The report referred to the most recent value for money profiles which showed that the Council's costs of providing care for older people continued to exceed those of similar authorities. In response the Committee noted that whilst the value for money profiles were taken into account in preparing the draft budget ultimately members decided, based on their priorities, where to allocate resources.

Members were advised that Grant Thornton would be the Council’s external auditors from September 2012 for a five year period. The Council would not have a say on who their external auditor was until after 2017.

RESOLVED,  that the report be noted.

To consider a  report from the Audit Commission (copy enclosed).

The Committee considered a report which set out a protocol regarding how members, officers and the Audit Commission worked together both to maximise the benefits and minimise the cost of the Commission’s work.

This protocol covered:

• Internal Audit;
• Accounts;
• Use of Resources and value for money conclusion; and
• Grant Claims.

This protocol would be updated on an ongoing basis and covered both Cumbria County Council and the Cumbria Pension Fund audit.

RESOLVED,  that the report be noted.

To consider a report by the Chief Executive (copy enclosed).

The Committee considered a report which detailed performance of the Council’s Information Compliance service for the period January 2011 to March 2012. Specifically the report focused on requests made to the Council under the Freedom of Information (FOI) Act or Environmental Information Regulations (EIR).

Members were advised that the aim was to publish all replies to FOI requests on the Council’s web site. It was also recognised that work needed to be done to make it easier for the public to find information on the web site and for that information to be up to date, particularly given the reliance placed on the web site when responding to FOI requests

In terms of where requests originated from it was difficult to give any figures as requests could come form anonymous sources. Officers would investigate whether details of repeat requests could be established.

The Committee were informed that a Parliamentary Select Committee was reviewing the effectiveness of the FOI Act and the outcome of this would be shared with members.

RESOLVED, that:

(1)       it be noted that service performance has improved this year compared with that reported to the Committee in June 2010, and that the delivery of a Corporate action plan is underway in order to achieve further improvement in future.

(2)       the content of the briefing in Appendix 1 to the report that sets out the legal requirements placed on the Council for handling information requests be noted.

To consider a report from the Senior Manager – Audit (copy enclosed).

The Committee considered a report which provided an update of the work programme for the Committee, together with the latest position in respect of the Committee’s monitoring of previous decisions. Regarding the latter, efforts would be made to complete those outstanding items which had featured for a while.

RESOVLED,  that the report be noted.

17 September 2012 at 10.30 am

26 September 2012 at 10.30 am

7 December 2012 at 10.30 am

8 March 2013 at 10.30 am

17 September 2012 at 10.30 am

26 September 2012 at 10.30 am

7 December 2012 at 10.30 am

8 March 2013 at 10.30 am