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, 2 March 2017 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.  External Assessment of Compliance with the Public Sector Internal Audit Standards (PSIAS) 
Measadh on Taobh A-muigh air Gèilleadh le Inbhean In-Sgrùdaidh na h-Earrainn Poblaich

There is circulated Report No. AS/1/17 dated 17 February 2017 by the Corporate Audit Manager which contains the External Quality Assessment of the Highland Council’s compliance with the PSIAS requirements. Mr Colin McDougall, West Dumbartonshire Council’s Audit and Risk Manager undertook this Assessment and will attend Committee to present his report and answer any questions from Members.

The Committee is invited to consider the report. 

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

There is circulated Report No. AS/2/17 dated 21 February 2017 by the Corporate Audit Manager 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:-

• Corporate Development – Transformation Savings Programme (Reasonable Assurance) 
• Corporate Development – Common Good Funds – Rental Income (Reasonable Assurance)

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

5. Audit & Performance Remit & Priorities and Internal Audit Annual Plan 2017/18
Raon-ùghdarrais & Prìomhachasan Sgrùdaidh & Coileanaidh agus Plana Bliadhnail In-Sgrùdaidh 2017/18

There is circulated Joint Report No. AS/3/17 dated 20 February 2017 by the Director of Finance and the Corporate Audit Manager which provides Members with an overview of the remit and priorities of the Audit & Performance Team and the Internal Audit Section’s Plan for the financial year 2017/18 and asks for the Committee’s approval of the Plan.

The Committee is invited:-
 
i.   note the remit and priorities of the Audit & Performance Team; and
ii.  approve the audit Plan for 2017/18 attached to the report.

6.  Six-Monthly Review of Corporate Risks     
Ath-Sgrùdaidh air Cunnartan Corporra
                                                                                                                                                         
There is circulated Report No. AS/4/17 dated 17 February 2017 by the Corporate Audit Manager which details of the latest review of the corporate risks by the Executive Leadership Team (ELT).

The Committee is invited to:-

i.   scrutinise the corporate risk register provided at Appendix 1 and consider the risk profile at Appendix 2 to the report; and 
ii.  note that the next review of the corporate risks will be reported to the September 2017 Committee.

7.  Inspection Report – Covert Surveillance
Aithisg Sgrùdaidh – Faire Os Ìseal

There is circulated Report No. AS/5/17 dated 15 February 2017 by the Depute Chief Executive/Director of Corporate Development which outcomes of a recent inspection of covert surveillance by the Office of the Surveillance Commissioner (OSC).  The Commissioner has concluded that the Council had responded positively to the previous inspection report and that all recommendations had been discharged fully.  In addition, the report identifies areas of best practice undertaken by the Council and makes 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.

8.  Local Government in Scotland Overview 2015/16    
Sealladh Coitcheann Ionmhasail air Riaghaltas Ionadail ann an Alba 2015/16

There is circulated Report No. AS/6/17 dated 16 February 2017 by the Director of Finance which allows the Committee to consider the findings from the latest Overview Report from Audit Scotland and agree to the development of a longer term financial strategy.

The Committee is invited to consider the Audit Scotland Report and agree to support the development of a longer term financial strategy and receive a progress report later in 2017.

9.  Audit Scotland Report - A Review of Housing Benefit Fraud Investigation Liaison Arrangements in Scotland     
Ath-sgrùdadh air Ullachaidhean Ceangail airson Sgrùdadh air Foill Shochairean Taigheadais ann an Alba

There is circulated Report No. AS/7/17 dated 16 February 2017 by the Corporate Audit Manager which advises that Audit Scotland have reported upon their review of the efficacy of the arrangements between Local Authorities and the Department of Work and Pensions (DWP) since the responsibility for housing benefit (HB) counter-fraud transferred to the DWP’s Fraud and Error Service (FES). 

In this connection, a link is provided to the Audit Scotland report which was published in December 2016 and the key messages and areas of improvement are highlighted within the report. In addition, commentary is provided on the position within the Highland Council.

The Audit Scotland report is circulated separately and can be read in full at:    

www.audit-scotland_hb_investigation_liaison_arrangements_2016 

The Committee is invited to consider the Audit Scotland report. 

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

The following summarises an external audit report prepared by the Council’s External Auditors (Grant Thornton) issued since the last Audit and Scrutiny Committee:-

• The Highland Council’s Annual Audit Plan 2016/17 

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