There were no apologies for absence.

There were no disclosures of interest.

The minutes of the meeting held on 27 June 2012 to be submitted and signed.

The minutes of the meeting held on 27 June 2012 were submitted and signed.

This reports sets out the Ombudsman’s Annual Review of its dealings with the Council for the financial year 2011/12.

The Committee received a report of the Head of Legal and Property Services including a copy of the Ombudsman's Annual Review of its dealings with the Council for the financial year 2011/12.

The Head of Legal and Property Services explained that the number of enquiries and complaints received in the year did not correspond with the number of decisions.  This was because some decisions related to complaints received in the previous year and some of the complaints received in 2011/12 had not been completed within the financial year.  There had been two cases where the Council had recognised that there had been a problem and resolved the situations prior to the Ombudsman completing their review of the cases. 

The Head of Legal and Property Services added that the Ombudsman had found there to be no maladministration by the Council in any of the enquiries and complaints.  The Ombudsman had been satisfied with the Council's response times.

Councillor Brandon asked whether there was anything significant about the two cases resolved by the Council prior to the Ombudsman's decision.

The Head of Legal and Property Services advised that one case related to a Housing Benefit claim, where the backdate calculation had not been completed correctly.  The case had been reviewed and recalculated and the appropriate level of Housing Benefit had been granted.  The Head of Legal and Property Services stated that she was unable to recall the other case.

RESOLVED –

that the Annual Review be noted.

This report allows the Committee to ask questions of the external auditor concerning the ‘Report to those charged with Governance (ISA260)’ and to approve the Statement of Accounts for 2011/12.

The Committee received a report of the Head of Strategic Finance which accompanied the report from Grant Thornton regarding the report to those charged with Governance (ISA620) and the Council's Statement of Accounts for 2011/2012.

Report to Those Charged with Governance (ISA260)

Richard Lawson, external auditor from Grant Thornton, introduced his report shown at Appendix 1 to the report.  He explained that the purpose of the report was to provide an opinion on the key issues affecting the Council's results and value for money.  He highlighted that there were only four bullet points in the report which had required finalising.  This was the shortest list and reflected the work of the Finance Team.  In the previous year there had been a problem with the delivery of the accounts on time.  This year, however, the complete set of accounts had been received ahead of time.  There were no major adjustments.  He highlighted one misstatement which referred to the number of unpresented cheques over six months old. 

The Finance Manager explained that in the past cheques expired when they were over six months old; however, that was no longer the case.  Cheques were valid until they were presented to a bank or cancelled.   The majority of the unpresented cheques were in connection with refunds for Council tax or national Non-Domestic Rates.  The Finance Team was unable to cancel the cheques until they were sure there had been a reversal on the Revenues system.  The list of unpresented cheques had been forwarded to Revenues.  A meeting would be arranged to go through the list. 

Richard Lawson then referred to the section on Value for Money.  He said that there had been great improvement in budget control in the Shared Services Unit.  He highlighted the rise in overpayments of Housing and Council Tax Benefit.  It had been noted that the notification of regulation amendments from the Department of Works and Pensions (DWP) had not been actioned since July 2011.  It had been fortunate that the overpayments, which could not be received back as a subsidy, had been offset by the New Homes Bonus.  The Auditor's recommendations were set out in Appendix A of the report and the previous year's recommendations were set out in Appendix B.

Councillor Taylor asked for an explanation why the earmarked reserves' action, shown in Appendix B, had not been completed.

The Head of Strategic Finance replied that this action had been included in the previous year's report.  The reserves were reviewed and were in place for specific purposes.  A report on reserves would shortly be presented to Cabinet and Budget Panel.  The reserves would be reviewed again in January.  He understood that in Three Rivers the reserves were not separated out.

The Finance Manager confirmed that the reserves in Three Rivers were included in the General Fund balance.

The Head of Strategic Finance added that in his opinion if they were all combined in one account, there would be a loss in transparency.

Councillor Burtenshaw noted the increase in  ...  view the full minutes text for item 19.

Report to follow

This item was included in the previous report, minute number 19.

This report provides the regular review of the Council’s Treasury Management Strategy and investment performance.

The Committee received a report of the Head of Strategic Finance which provided the regular update of the Council's Treasury Management Strategy and investment performance. 

The Head of Strategic Finance highlighted the reference in the report to the Money Market Funds and the decision to invest £3 million with Deutsche Asset Management.

Councillor Brandon asked for clarification regarding the amount invested with Nat West Bank.

The Head of Strategic Finance explained that the Treasury Management Policy allowed a maximum investment of £5 million in banks.  The Co-Operative Bank and Nat West Bank were exceptions.  The money was placed in overnight accounts and it could be pulled back immediately.  As the Council had entered into the Shared Service with Three Rivers it was possible to get a higher rate of interest than standard.  He tried to ensure that the Council spread the risk.

RESOLVED –

that the report be noted.

This is the regular report on progress with the implementation of Internal Audit recommendations, providing an update since the last meeting.

The Committee received a report of the Audit Manager setting out the progress on the implementation of the Internal Audit recommendations. 

The Audit Manager reported that he was pleased with the positive responses from services.  The number of requests for extended time had reduced.  The BACS payments had finally been transferred from ICT to Revenues and Benefits and Finance.  He added that he had not followed up on any subsequent work since the publication of the report.

Councillor Khan said that ICT was to be outsourced.  He questioned how services would work with the systems in place and an outside company.  He considered there to be two threats to the Council:  One of those threats was the remote accessing of internal computers by people who were not council employees.  He noted many issues had been resolved.  He suggested a new check would be required.

The Audit Manager advised that having an external company should not make any difference.  There was still work to be done and the final recommendations to be completed.  Consideration would need to be given as to whether to include the new supplier in the implementation process.  The Council would still have to have an annual IT Health Check and any vulnerability would be picked up and added to an action plan.  It would be necessary to do this to be able to continue to access the gcsx (a secure email system).

The Head of Strategic Finance added that firewalls would need to be checked if the servers were moved to another location.  He said that Members' comments would be taken on board.

RESOLVED –

that the contents of the report be noted.

This report and appendices provide updated information on the work undertaken by Internal Audit.

The Committee received a report of the Audit Manager updating Members on the work undertaken by Internal Audit.

The Audit Manager informed the Committee that since the report had been published the following reports had been finalised –

·               Treasury Management issued 17 September

·               Budget Monitoring issued 18 September

·               Benefits Administration issued 21 September

·               Financial Procedure Rules issued 21 September

·               National Non-Domestic Rates issued 25 September

·               Council Tax issued 25 September

RESOLVED –

that the contents of the report be noted.