Agenda and minutes
Venue: Committee Room 4, Brent Town Hall, Forty Lane, Wembley, HA9 9HD. View directions
Contact: Anne Reid, Democratic Services Officer 020 8937 1359, Email: anne,reid@brent.gov.uk
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Declarations of personal and prejudicial interests Members are invited to declare, at this stage of the meeting, any relevant financial or other interest in the items on this agenda. Minutes: None. |
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Deputations Minutes: None. |
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Minutes of the previous meeting PDF 121 KB Minutes: RESOLVED:-
that the minutes of the previous meeting held on 29 September 2010 be approved as an accurate record of the meeting. |
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Matters arising Minutes: The Director of Finance and Corporate Services agreed to look into progress on the briefing note on adult social care and housing concerns raised at the previous meeting. |
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Annual Audit Letter 2009/10 PDF 50 KB This report introduces the Annual Audit Letter from the council’s external auditors, the Audit Commission. Additional documents:
Minutes: Members had before them a revised report from the Director of Finance and Corporate Services appended to which were a revised version of the Audit Commission’s Annual Audit letter, dated 7 December, and also progress report from the Audit Commission, circulated after the publication of the original agenda.
Andrea White (Audit Commission) in introducing the Audit Letter, reminded members that the issues summarised in the Audit Letter had been reported previously, asked that members now look to the future and drew attention to the key messages outlined in the report. The committee noted that an unqualified opinion had been issued on the council’s financial statements with one material and one minor error. An unqualified opinion had also been issued on the Pension Fund’s financial statements. On foundation schools, attention was drawn to recommendations to improve the council’s risk management, internal control and performance management with particular reference to problems at Copland Community School. For this, and other cases where additional audit work had had to be carried out additional audit fees had been levied. On current and future challenges, Ms White considered that the council was well placed to deliver savings and improve efficiency through the One Council programme. A high level review had been conducted and robust arrangements were in place with expertise brought in where thought necessary. However, she advised the council to bear in mind the need to retain capacity to deliver quality services. Ms White referred to the government’s decision to cancel the Building Schools for the Future programme and the resultant loss of capital investment in the borough’s schools pointing out that the council would now have to consider how it would deal with the current pressure on school places. Finally, Ms White made reference to the challenge for all local authorities to implement the International Financial Reporting Standard in 2010/11 and was pleased to report that the council was making good progress. It would however need to maintain focus to ensure timely implementation.
On her specific recommendations, Ms White highlighted the need to improve year end financial reporting, strengthen risk management and control and performance arrangements in respect of foundation schools, embed good procurement practice and risk management arrangements. The committee were pleased to hear that the 2007/08 and 200/09 audits were closed in September 2010, together with the 2009/10 audit, outstanding issues relating to the council’s involvement in London Authorities Mutual Limited and Copland Community School having been resolved.
In discussion, members noted the intention to introduce an earlier audit review, moving eventually to monthly mini close-downs in line with good practice. In response to a question on the potential future risks, Andrea White stated that staff reductions, both front and back office, could affect services. Also internal controls and performance management would need to be monitored to ensure the council continued to perform at its chosen level. Any risks associated with changes need to be clearly established. Clive Heaphy (Director of Finance and Corporate Services advised that members would have the opportunity ... view the full minutes text for item 5. |
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2010/11 mid year Treasury Management report PDF 77 KB This report details treasury management activity for 2010/11. Minutes: The Director of Finance and Corporate Services introduced the report that detailed treasury management activity for 2010/11. He referred to the economic forecasts for the year which he felt had been relative accurate. On the return of funds deposited with Icelandic banks, the committee heard that the legal case was still going through the courts in Reykjavik. The Director reported that Public Works Loan Board (PWLB), from which the council had borrowed a further £20m for ten years, had increased its interest rates. It was noted that in October 2010 the council had replaced a £50m PWLB debt with a short term borrowed debt to bring about significant savings to the General Fund in 2010/11 and 2011/12.
The committee noted that the new Civic Centre would require major capital expenditure and that it was the intention to borrow mostly on a fixed rate basis.
RESOLVED:
that the report be noted. |
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Second Internal Audit progress report 2010/11 PDF 64 KB This report sets out a summary of the work of Internal Audit for the period 1 April 2010 to 30 November 2010. The attached report provides details of progress, together with the assurance ratings and priority 1 recommendations for those audits which have been finalised since the last report to this committee. Additional documents: Minutes: The committee received a report from the Director of Finance and Corporate Services which summarised out the work of Internal Audit for the period from 1 April 2010 to 30 November 2010. Simon Lane (Head of Internal Audit) drew attention to the progress of the audits conducted and the associated assurance ratings. He drew attention to the limited assurance for Kilburn Square TMO within Brent Housing Partnership, and also for Copland School following a repeat audit. It was noted that management responses to draft reports were awaited on a number of audits.
Members referred to the recent announcement by the Secretary of State for Education to end the current FMSiS (Financial Management Standard in Schools) with immediate effect and develop to a simpler standard as a replacement and raised questions on the likely impact. Simon Lane responded that some of the standards within FMSiS would continue to be tested as part of the audit process. The committee noted the central government’s intention to encourage schools to become academies outside of local authority control and the likely impact on the Dedicated Schools Grant and Pupil Premium.
RESOLVED:
that the progress made in achieving the 2010/11 Internal Audit Plan be noted. |
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Regulation of Investigatory Powers Act 2000 - review of the use of surveillance and CHIS PDF 105 KB The purpose of this report is to advise members on the council’s use of covert surveillance and covert human intelligence sources (CHIS) for 2009/10 and the period April 2010 to November 2010. The report also seeks approval for the council’s policies on the use of these techniques. Minutes: The report from the Director of Finance and Corporate Services advised of the use of covert intelligence and covert human intelligence sources (CHIS) for 2009/10 for the period April 2009 to November 2010. Simon Lane (Head of Audit and Investigations) advised that a review of RIPA legislation had resulted in new codes of practice which came into force in April 2010. Members were now required to provide oversight of the use of surveillance. Since the introduction of the act local authorities have been required to follow certain procedures and to give consideration prior to surveillance being authorised. Simon Lane drew attention to the summary of the operations carried out since 2003.
The committee noted that it was possible for an element of money obtained from confiscation orders to be given to the council. A report with a more detailed breakdown of cases would be submitted in the future.
RESOLVED:
that the report be noted. |
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Any other urgent business Notice of items to be raised under this heading must be given in writing to the Democratic Services Manager or his representative before the meeting in accordance with Standing Order 64. Minutes: The committee noted that progress report on Copland School would be presented in due course.
The Chair brought to members’ attention the intention to appoint an independent chair for the Audit Committee to work with and support members. An advertisement for the position would be placed. |