Committees

A meeting of the Audit and Scrutiny Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday, 26 September 2013 at 10.30 am.

Webcast Notice: This meeting will be filmed and broadcast over the Internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.

You are invited to attend the meeting and a note of the business to be considered is attached.

Yours faithfully

Michelle Morris
Assistant Chief Executive

Business

1.  Apologies for Absence
Leisgeulan

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting. Any Member making a declaration of interest should indicate whether it is a financial or non-financial interest and include some information on the nature of the interest. Advice may be sought from Officers prior to the meeting taking place.

3.  Recess Powers
Cumhachdan Fosaidh

The Committee is asked to note that the Recess Powers granted by the Council at its meeting on 27 June 2013 have not been exercised in relation to the business of the Audit and Scrutiny Committee.

4.  Internal Audit Reviews and Progress Report 
Ath-bhreithneachaidhean In-sgrùdaidh agus Aithisg Adhartais

There is circulated Report No. AS-20-13 (381kb pdf) dated 13 September 2013 by the Head of Internal Audit and Risk Management which summarises the final reports issued since the date of the last meeting, together with details of work in progress and other information relevant to the operation of the Internal Audit Section as follows:-

• Education, Culture and Sport – Schools - Financial Procedures
• Housing and Property – Housing Rents
• Housing and Property – Housing Stores/ Repairs and Maintenance

The Committee is invited to consider the Final Reports as referred to in Section 1.1 to the report and note the current work of the Internal Audit Section and the restructuring that has taken place.

5.  Benchmarking Report 2012/13 
Aithisg In-sgrùdaidh a thaobh Slatan-tomhais 2012/13

Members are advised that this is the fourth year in which the Internal Audit Section has taken part in the Chartered Institute of Public Finance and Accountancy (CIPFA) Audit Benchmarking Club. 

In this regard, there is circulated Report No. AS-21-13 (229kb pdf) dated 12 September 2013 by the Head of Internal Audit and Risk Management which provides information in respect of the 2013 Benchmarking exercise which has been analysed in order to assess how well the Section performs in comparison with other authorities and refers to areas for improvement which have been identified.

The Committee is invited to note:-

i.   the results of the 2013 benchmarking exercise;
ii.  that the Internal Audit Section will continue to participate in the annual CIPFA
     Benchmarking Club in order to seek continuous improvement in the service
     provided; and
iii.  that an Action Plan has been prepared which identifies areas for improvement
     and this will be followed up to ensure that the required improvement actions
     are addressed.

6.  New Public Sector Internal Audit Standards and Revisions to the Internal Audit Charter 
Inbhean Ùra In-sgrùdaidh an Raoin Phoblaich agus Ath-sgrùdaidhean don Chairt In-sgrùdaidh

There is circulated Report No. AS-22-13 (55kb pdf) dated 2 September 2013 by the Head of Internal Audit and Risk Management which provides details of the new Public Sector Internal Audit Standards and the internal audit charter which was updated to comply with the Standards.

The Committee is invited to:-

i.   note the new Public Sector Internal Audit Standards and their requirements;
     and
ii.  approve the revised Internal Audit Charter which is provided at Appendix 1 to
     the report.

7.  Action Tracking Report – Update 
Aithisg a’ Leantainn Gnìomhachd – Fios as Ùr

There is circulated Report No. AS-23-13 (35kb pdf) dated 11 September 2013 by the Head of Internal Audit and Risk Management which provides Members with an update of the progress in implementing the management agreed actions in respect of the audits of Electronic Content and Document Management System and Phoenix e1.  In addition, information is also provided on a number of other audits which had revised target dates of 30 June 2013.

The Committee is invited to note the results of the update report and assurance provided that audit actions have been implemented as agreed.

8.  The Highland Council Pension Fund – Monitoring of Retirements  
Maoin Pheinnsein Chomhairle na Gàidhealtachd – Sgrùdadh Chluaineasan

There is circulated Report No. AS-24-13 (959kb pdf) dated 17 September 2013 by the Director of Finance which provides information relating to retirements from the Highland Council Pension Fund for the year ended 31 March 2013.

The Committee is invited to consider and note the report.

9.  EU Programme Audit (ERDF): Successful Audit of the Portree to Staffin Project 
Sgrùdadh Prògram an Aonaidh Eòrpaich: Sgrùdadh Soirbheachail de Phròiseact Phort Rìgh gu Stafainn

There is circulated Report No. AS-25-13 (33kb pdf) dated 30 August 2013 by the Director of Transport, Environmental and Community Services which explains the recent European Audit of the Portree to Staffin project and the successful outcome.

The Committee is invited to note the successful outcome of this audit.

10.  Scottish Public Service Ombudsman Cases Received by the Council – Update Report 
Cùisean Ombudsman Sheirbheisean Poblach na h-Alba a Fhuaireadh leis a’ Chomhairle – Aithisg as Ùr

There is circulated Report No. AS-26-13 (32kb pdf) dated 17 September 2013 by the Chief Executive which sets out the number and types of complaint about the Council that have been determined by the Office of the Scottish Public Services Ombudsman (SPSO) in the period since the last report to Audit and Scrutiny Committee.

The SPSO reports can be read in full at: www.spso.org.uk

The Committee is invited to consider and note the details of the report.

11.  Inspection Report – Covert Surveillance 
Oifis Choimiseanair an Sgrùdaidh – Aithisg Sgrùdaidh

There is circulated Report No. AS-27-13 (408kb pdf) dated 10 September 2013 by the Assistant Chief Executive which details the outcomes of a recent inspection of covert surveillance by the Office of the Surveillance Commissioner (OSC). The Commissioner had concluded that the Council had responded positively to the previous inspection report and that all recommendations had been discharged either fully or in part.  In addition, the report identifies areas of best practice undertaken by the Council and makes some recommendations for further improvement.

The Committee is invited to:-

i.   note the findings and recommendations of the OSC Inspection Report as
     detailed in Section 3 of this Report; and
ii.  agree that the recommendations be accepted and fully implemented.

12.  Code of Corporate Governance
Còd Riaghladh Corporra

Members will recall that the Highland Council approved the Code of Corporate Governance 2013/14 at its last meeting on 5 September 2013.  The Council also noted the progress in delivering the actions within the Code for 2012/13. 

In this connection, there is circulated Report No. AS-28-13 (80kb pdf) dated 13 September 2013 by the Assistant Chief Executive which advises that the Code is now reported to Audit and Scrutiny Committee for its scrutiny of progress and the revised Code for 2013/14.

The Committee is invited to consider and scrutinise the:-

i.   progress made in delivering the agreed actions in the 2012/13 Code of
     Corporate Governance; and
ii.  Code of Corporate Governance 2013/14.

13.  Audit Scotland National Reports 
Aithisgean Nàiseanta Sgrùdadh Alba

There is circulated Report No. AS-29-13 (

pdf) dated 4 September 2013 by the Head of Internal Audit and Risk Management which provides details of the National Reports issued by Audit Scotland and the action taken within the Council to address the report findings as follows:-

• Major Capital Investment in Councils
• Maintaining Scotland’s Roads
• Housing in Scotland
• Managing Early Departures from the Scottish Public Sector

The Committee is invited to consider and note the action being taken by the respective Committees to address Audit Scotland’s National Reports and whether this provides sufficient assurance that appropriate action has been taken to address the report findings.

14.  Audit of Local Authority Charities  
Sgrùdadh de Charthannais Ùghdarrais Ionadail

There is circulated Report No. AS-30-13 (81kb pdf) dated 16 September 2013 by the Director of Finance which advises Members of the implications of changes to the audit requirements of local authority charities and to consider the actions being taken by officers to mitigate the financial implications.

The Committee is invited to note the implications of changes and to consider actions being taken to mitigate the financial implications.

15.  Scottish Government Consultation:  Local Authority Accounts Regulations
Co-chomhairle Riaghaltas na h-Alba: Riaghladh Chunntasan Ùghdarrais Ionadail 

There is circulated Report No. AS-31-13 (841kb pdf) dated 16 September 2013 by the Director of Finance which asks Members to consider and agree the draft response (as contained in Appendix 1) to the Scottish Government Consultation on Local Authority Accounts Regulations (as detailed in Appendix 2).

The Committee is invited to consider and agree the draft response to the Scottish Government Consultation.

16.  External Audit Report  
Aithisgean Sgrùdaidh bhon Taobh A-muigh

There is circulated Report No. AS-32-13 (911kb pdf) prepared by the Council’s External Auditors (Audit Scotland) which summarises the external audit report issued since the last Audit and Scrutiny Committee as follows:-

• ISA 260 / Report to those charged with governance on the 2012/13 audit

The Committee is invited to note the audit report as circulated.