Agenda item
Annual Governance report - progress on action plan
This report sets out progress against the recommendations in the Annual Governance Report.
Minutes:
Mick Bowden, Deputy Director of Finance and Corporate Services introduced the report which set out progress against the recommendations in the Annual Governance Report (AGR). He informed members that progress on the five of the recommendations which related specifically to the Statement of Accounts continued to be positive with the actions being embedded in the planning for the closure of the 2012/13 accounts. The remaining recommendations were closely related to the challenging financial climate within which the Council operated coupled with the need to ensure adequate reserves, meet the demand for school places and deliver procurement savings. He then gave an account of progress against each recommendation (Rec).
Rec |
Progress |
1 |
The central finance team resource had been strengthened through internal appointment to two qualified accountant posts and planning for 2012/13 closedown, including resource allocation, currently underway.
|
2 |
The update of the asset register incorporating changes and software updates to the system was scheduled for completion by the end of January. |
3 |
Eight recommendations have been implemented, eight were in progress and one was no longer relevant due to changes arising from project Athena. |
4 |
A proposed approach had been developed and shared with the auditors. |
5 |
Review meetings have been held with each individual finance team to identify areas for improvement. The outcome of these was being incorporated into the planning for 2012/13 closedown |
6 |
The position regarding Single Fraud Investigation Service had now been clarified by the DWP and a revised framework was expected to be available for approval by the Audit Committee at its meeting in February. |
7 |
Latest budget monitoring for 2012/13 indicated that the planned reserves increase of £1m would be delivered |
8 |
Training in ‘procurement and contract performance management’ now being delivered across the organisation has received positive feedback. ‘E-procurement’ was scheduled for go live in August 2013. ‘Additional operational savings through procurement activity’ made. |
9 |
An updated report on progress in delivering school places would be presented to Executive in January 2013. The report recognised the need to continue to look at alternative options for funding school places in recognition of the significant resource challenges involved. |
10 |
Risk registers continued to be reviewed by service areas and by internal audit. The key risks were submitted to PCG in accordance with the quarterly schedule. |
The Head of Audit and Investigations added that he would update the progress report to include provisions of the Bribery Act to ensure that a more robust system was in place.
Councillor Al-Ebadi informed the Committee that he believed the tendering process in Brent which involved the opening of tenders by two officers was open to abuse. Prior to raising the issue he declared that he had an interest in a particular matter in which his company was bidding. He referred in particular to disposals of land and real estate where he alleged that it may be possible for officers to give information on prices to prospective bidders. Although he had no direct evidence of this he said if it was the case it would constitute fraudulent practices which needed investigating.
Andrea White highlighted the need for the Council to give to her auditing team, a clear understanding of the measures it planned to put in place to deal with suspected fraud cases and comply with the Bribery Act. She added that the process that may result from the measures could give rise to increased auditing work to ensure that no material fraud was involved. If additional was undertaken, KPMG would have to charge additional fee to reflect the work carried out.
The Chair suggested that the Head of Audit and Investigation arrange a meeting involving the Director of Legal and Procurement, Head of Corporate Property and Councillor Al-Ebadi to look into the allegation made by the councillor about fraudulent tendering practices. Members noted that KPMG would submit their action plan to the next meeting.
RESOLVED:
(i) that the progress on Annual Governance report be noted;
(ii) that the Head of Audit and Investigation arrange a meeting involving the Director of Legal and Procurement, Head of Corporate Property and Councillor Al-Ebadi to look into the allegation made by councillor about fraudulent tendering practices.
Supporting documents: