To update the committee on progress in implementing the recommendations raised in the Internal Auditor’s audit findings report regarding project management of the joint customer services hub (Blueschool House) capital project presented in September 2017.

It was noted that the committee would be meeting the chief finance officer in private session once the committee meeting had been formally closed.  

The chief finance officer presented the report and highlighted the following:

·         All invoices now have to have a purchase order number otherwise they are sent back to the organisation.

·         The internal control working group were thanked for their input which had been helpful. 

·         As from the new financial year, the system would require that all orders have a pre-loaded budget otherwise they will not proceed. 

·         The work on the Blueschool House recommendations had concluded but the internal control improvement board would continue as a continuous improvement board. 

During the discussion, the following points were raised: 

·         Concern over the length of time that it would take to change the culture, especially as some of the recommendations were matters which should be a matter of course.   The chief executive explained that it would take time to train approx. 1,200 employees on the new systems and for the culture to change.    There were changes to how projects were monitored which included gateways which had to be met otherwise the project would not proceed.  

·         Blueschool House had exposed governance issues which should not have occurred.      It was felt that the timescales needed to be tightened up and should be within 12 months.  

·         That if there was a culture that says you can work round any procedures, then this is separate to the roll out of training.   A robust system would not be able to be by-passed as there would be checks and balances in place. 

A member of the committee noted that there had been a recommendation at the committee meeting on 20 September 2017 that the corporate peer challenge have a focus on the economy, communities and corporate (ECC) directorate.   The recent corporate peer challenge had not had a sole ECC focus and an assurance was sought that the recommendation had been discharged in its fullest sense.    The chief executive explained that he had indicated at the committee meeting on 28 November 2017 that the peer challenge would not be solely focused on ECC.     It was anticipated that the full final letter would be received within the next 2-3 weeks and the recommendations would be accepted and prioritised.    However, the chief executive had contacted the lead chief executive reviewer and had provided a briefing on Blueschool House.   As part of the information which had been sent to the peer challenge team, a position statement had been prepared which had also included Blueschool House.    The chief executive agreed to circulate a copy of the position statement to the committee.  

The chief executive further explained that the SWAP report into Blueschool House had concluded that the procedures and systems were in place but that individuals did not follow them.    The report did not conclude that there was a broader culture issue.  A further full and detailed investigation had been commissioned which looked into the detail of why the individuals had not  ...  view the full minutes text for item 275