To update the committee on progress in implementing the recommendations relating to capital project management and control raised in the Internal Auditors audit findings report regarding the joint customer services hub (Blueschool House) capital project presented in September 2017.

The chief finance officer presented the report.   The following points were highlighted: 

·         This was an update on the 13 recommendations made by SWAP following their audit of the issues around the Blue School House project.

·         A range of other actions were being considered by the internal control improvement board. 

·         From 1 April, the systems will be in place for project management which would ensure that the approval points for capital projects were understood and documented. 

·         A system of validation / confirmation was being put in place when a senior manager had announced they were leaving the council.    Another member of the senior team would be identified and would need to approve projects as well.  This system would also cover any  interim arrangements at a senior level.    

Following queries from members of the committee, it was confirmed:

·         In respect of anecdotal evidence that professional advice may be deleted from draft reports assurance was provided that the process is now more robust than previously.   The on-line report management system and sign off process ensures there are double checks in place and reviewers had sight of the final version of the report.   It was recognised that it would take time to embed the process but the underlying controls are in place. 

·         The principles of decision making were included within the member induction processes.   The issue has been that it has not been covered consistently at member and officer level.  

·         Feasibility work is carried out but again the issue is consistency.   The system being put in place will ensure that there will be a need for clarity about the gross costs and it will have to stay within the feasibility study budget.  As part of the new process, all work on a project will stop after the feasibility study until a decision is taken about whether the project will proceed and this will be dependent on funding being identified. 

·         Capital programme monitoring does take place but not consistently.   Projects managers do monitor spend but there are varying ways to do this.  This will be built into Business World so all reports will be consistent and the same.   Councillors Powers and Harvey were thanked for their comments on the new system.

·         The new project management system could flag when contracts were due for renewal and would work back from the renewal date to ensure that the appropriate stages and decisions were built into the project.  

·         That projects identified within the capital programme will need their own governance arrangements.  

·         There had already been plans in place to implement a new report management system as the previous system was not sufficiently robust.   SWAP had identified that relevant information was not being made available to officers or members at the appropriate time. 

·         The new project management system would be in place by 31 March 2018 but there would be a need to change the culture of the organisation in order to ensure that the system was understood and embedded and this would take longer to embed.

·         That an  ...  view the full minutes text for item 263