To note the Audit Commission’s Annual Audit & Inspection Letter for 2009 and approve the response to each of the four action points raised.

The District Auditor was invited to address the Cabinet and present a summary of the key points raised within the Audit Commission’s Annual Audit and Inspection Letter for 2009.  Cabinet was advised:

·         that detailed reports on specific audits carried out during the year had been presented to the relevant Committees. 

·         that for completeness, the Annual Audit and Inspection Letter for 2009 also provided a summary of the Comprehensive Area Assessment Lead’s review of how well public services were delivering results for local people. 

·         that there had been much progress in the previous year and that this improvement within the authority was recognised, however time was required to see demonstrable results as a result of changes implemented.

·         of the positive view held of the authority’s response to the District Auditor’s report on planning services and the comprehensive approach taken to address the report’s recommendations through changes to the constitution, structures and delegation processes.

·         that the authority was progressing recommendations relating to procurement and the partnership arrangements with Amey well.  Recognition was also given to the work being undertaken on Shared Services and in delivering value for money in Older Person services (a review of which was planned for early 2010).  

·         that the authority’s waste disposal programme had made only limited progress in meeting national targets and therefore had consequential cost implications.  Whilst recognising the increase in the amount of recycling and the reduction in waste to landfill, waste remained an area of risk for the authority.

·         the Use of Resources assessment was broader and more demanding than in previous years and that against the new criteria the authority was assessed as performing adequately.  The District Auditor emphasised that the Council had continued to make progress and that the reduction in score from 3 to 2 was in line with Councils nationally.

·         that Appendix 1 of the report listed the four recommendations which the Audit Commission had identified as requiring action.

The District Auditor thanked Members and Officers for the support provided during the year and encouraged the authority to continue to improve.

In discussion Cabinet:

• Welcomed the positive comments in relation to the planning service and advised the District Auditor that reviews of the new arrangements would be undertaken (a review of planning applications over the initial three months and a wider review within six months) and that copies of the findings would be sent to the District Auditor.  It was acknowledged that the new processes would require time to bed in.  The District Auditor confirmed that a formal follow up review would be carried out, welcomed the authority’s planned review and appreciated that time was required for the new planning system to bed in.

• Stated that significant movement was taking place in relation to the future of waste disposal which was linked to discussions with partners (through the planned development of an Energy from Waste Plant at Hartlebury Trading Estate near Kidderminster), and that the associated risks were acknowledged and monitored.  The level of recycling in the county was now averaging 300 tonnes per week (prior to the wheelie bin collection the average was 93 tonnes).  In acknowledging the recommendation within the Annual Audit Letter’s Action Plan relating to waste management, Cabinet emphasised the partnership arrangements in place with Worcestershire (Herefordshire being the equivalent of 25%).  In response, the District Auditor acknowledged the partnership arrangements in place but expressed a note of caution as the proposed development relied fundamentally on gaining planning permission.  Work would be carried out by the District Auditor across both Herefordshire and Worcestershire councils in relation to issues around such PFIs.

• Was assured that work had been undertaken to address concerns raised in paragraph 19 (of the Audit Letter) that reports needed to be improved.

• Raised concerns that the key messages in the Annual Audit Letter could be confusing to the public since there had been a drop in the authority’s overall score whilst at the same time being recognised for achieving process and improvements.  The District Auditor confirmed that the Council had continued to make progress and to improve on areas of previous assessment.  However, she stressed that new broader and demanding criteria had been developed for the 2008/09 assessment.

• Responding to a question relating to the authority’s high CO2 emissions due to a reliance on cars and limited public transport, the District Auditor stated that environmental and sustainability issues had been added as a theme to the assessment criteria.  Whilst it was not for the Audit Commission to set targets their assessment would measure against the Council’s agreed targets and would report on progress.

• The key messages from the Annual Audit Letter were welcomed and would be used as encouragement for the continued progression of the organisation.

RESOLVED THAT:    Cabinet note the Audit Commission’s Annual Audit and Inspection Letter for 2009.