Agendas, reports and minutes

A meeting of the Audit and Scrutiny Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday, 18 June 2015 at 10.30am.

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
Depute Chief Executive/
Director of Corporate Development

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

There is circulated separately Report No. AS/7/15 by the Head of 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:-

• Care & Learning – Mental Health Officer Service
• Care & Learning – Community Payback Orders - Administration of Unpaid Work Orders
• Corporate Development – Workforce Planning Arrangements
• Finance – Scottish Welfare Fund Payments
• Finance/ Community Services – Housing Revenue Account – Reconciliation Investigation

The Committee is invited to consider the Final Reports referred to in Section 1.1 of the report and note the current work of the Internal Audit Section.

4. Statement on Internal Control and Annual Report 2014/15 
Aithris mu In-Smachd agus Aithisg Bhliadhnail 2014/15

There is circulated Report No. AS/8/15 dated 9 June 2015 by the Head of Audit and Risk Management which includes an assessment of the adequacy, reliability and effectiveness of the Council’s system of internal financial control and provides information for the Council’s Corporate Governance Assurance Statement.  This is contained within the Statement on Internal Control.

The annual report also provides an overview of the Internal Audit Section’s activities and performance data for 2014/15.

The Committee is invited to note the content of the report and the audit opinion provided and to raise any relevant points with the Head of Audit & Risk Management.

5. Compliance with Public Sector Internal Audit Standards 
Gèilleadh ri Inbhean In-sgrùdaidh na Seirbheis Poblaich

There is circulated Report No. AS/9/15 dated 9 June 2015 by the Head of Audit and Risk Management which refers to a review of the extent to which the Council’s Internal Audit Section complies with the Public Sector Internal Audit Standards and the actions being taken towards achieving full compliance.

The Committee is invited to:-

i.   note the progress that has been made to date in implementing the Standards;
ii.  consider the assessment, attached to the report, in terms of areas of full, partial and non-compliance; and 
iii. note that the current areas of partial or non-compliance do not impact significantly on the ability to demonstrate overall compliance with the Standards.

6. Six-Monthly Review of Corporate Risks 
Ath-sgrùdadh air Cunnartan Corporra

There is circulated Report No. AS/10/15 dated 5 June 2015 by the Head of Audit and Risk Management which provides details of the six-monthly review of the corporate risks by the Executive Leadership Team (ELT) and details of a change in the reporting arrangements.

The Committee is invited to:-

i.  scrutinise the corporate risk register provided at Appendix 1 and consider the risk profile at Appendix 2; and
ii. note that a further review of the corporate risks will be undertaken by the ELT and the results of this reported to the September Committee.  Reporting will then be undertaken in March and September each year.

7. Financial Regulations – Proposed Amendment 
Ath-sgrùdadh air Riaghailtean Ionmhasail

There is circulated Report No. AS/11/15 dated 9 June 2015 by the Head of Audit and Risk Management which refers to amendments to the Council’s Financial Regulations arising from Internal Audit reports.

The Committee is invited to consider the revisions, as detailed in the report and recommend acceptance to the Council.

8. Petitions Procedure 
Modh Athchuingean

There is circulated Report No. AS/12/15 dated 2 June 2015 by the Depute Chief Executive/Director of Corporate Development which updates Members on the public petitions received by the Council since introduction of the Council’s petition procedure in August 2013.

The Committee is invited to:-

i.  note that fourteen public petitions have been considered since the introduction of the procedure in August 2013; and
ii. agree that a review is undertaken to promote the greater use of the petitions procedure. 

9.Standards Commission: Councillors’ Code of Conduct Investigation into Complaints 
Coimisean nan Inbhean: Sgrùdadh Ghearanan Còd Giùlain nan Comhairlichean

There is circulated Report No. AS/13/15 dated 2 June 2015 by the Depute Chief Executive/Director of Corporate Development which provides information in relation to complaints dealt with by the Standards Commission during the period 2014/15 in relation to alleged breaches of the Councillors’ Code of Conduct by Members of Highland Council and the outcome of the Standards Commission’s investigations into these complaints.

The Committee is invited to note that, in respect of the complaints against Highland Council Members, concluded during 2014/15, the Standards Commission has found that no Members were found to have breached the Code of Conduct. 

10. Corporate Complaints Process Report   
Aithisg Ghearanan Corporra

There is circulated Report No. AS/14/15 dated 1 June 2015 by the Depute Chief Executive/Director of Corporate Development which provides an update for Members on the Council’s Corporate Complaints Process for the period 1 October 2014 to 31 March 2015.   Comparative data on our annual performance is also included along with a high level analysis of our complaint handling and how we are using this to better inform our understanding of complaints and improve performance.  

The Committee is invited to note the:-

i.   recent improvement to Stage 1 and Stage 2 complaints over the last 6 months;
ii.  benchmarking activity of the Ombudsman; and 
iii. Public Sector Improvement Framework work that is being undertaken and the ongoing work in the existing action plan to ensure continued improvement.

11. Audit Scotland National Reports 
Aithisgean Nàiseanta Sgrùdadh Alba

There is circulated Report No. AS/15/15 dated 9 June 2015 by the Head of 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:-

• Community Planning – Turning Ambition into Action
• Overview of Local Government in Scotland 2015

The Committee is invited to consider 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.

12. Minutes  
Geàrr-chunntas

There are circulated for approval the Minutes of Meeting of the Scrutiny Working Group held on 5 May 2015.

13. Exclusion of the Public
Às-dùnadh a’Phobaill

The Committee is asked to resolve that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item on the grounds that it involves the likely disclosure of exempt information as defined in Paragraphs 6 and 9 of Part 1 of Schedule 7A of the Act.

14. Internal Audit Review 
Ath-bhreithneachadh In-sgrùdaidh

There is circulated to Members only Report No. AS/16/15 dated 10 June 2015 by the Head of Audit and Risk Management which summarises a final confidential report issued since the date of the last meeting as follows:-

• Finance – Corporate Arrears Recovery System - Project Governance

The Committee is invited to note the terms of the report as circulated.