To receive the Audit Commission’s Use of Resources Report - December 2008 (Appendix 1 to this report).  The external auditor will present the report to Committee.

The Committee received a Use of Resources report from the Audit Commission. Terry Tobin presented the report and informed the Committee that the overall conclusion was that the Council was performing well. He referred in particular to the Financial Reporting theme because the Council was performing strongly in this area and had attained the score of 4 which was the highest available score. He commended the officers of the Council’s Technical Accountancy team for the achievement. In Financial Management, the Council was performing well and was consistently performing above minimum requirements with a score of 3. Financial Standing had improved to the next level of performance scoring 3. Internal Control had generally increased its level of performance although scoring 2. Issues from the Crookhall report had been taken forward and were being progressed positively and there was a stronger process in place to monitor gifts and hospitality. Risk Management was improving and the link to the Primary Care Trust (PCT) would help in this area. Value for money had remained at the previous year’s level score of 2. However the ‘mix’ of cost and performance was stronger in this area. The Council was currently in the process of making improvements to its arrangements to define and secure value for money and to manage costs but that these improvements were not yet being achieved consistently.

Councillor RH Smith asked if the Council would be including the revenue implications of all major projects in the Corporate Plan, Page 25 recommendation 3 refers. Also,  would a report be submitted to the Committee on the various issues contained in the second paragraph on page 29, relating to value for money. The Acting Director of Resources informed the Committee that although he did not consider it appropriate to put in place an action plan on the issues referred to, the necessary work was in progress in relation to those issues and that a draft initial assessment would be submitted to the Audit Commission. He would be bringing a report to the Committee on the status of the new approach in respect of value for money processes.

Councillor Smith expressed concern that the requisite measures and optimum processes were in place regarding value for money. The Acting Director of Resources stated that there was evidence of continuing improvement and that processes were also being improved.

Councillor AM Toon questioned whether value for money was embedded in all its areas particularly where a department was no longer involved in commissioning had undergone structural changes and staffing numbers had not been reduced. She was of the view that improvements would need to be in place to achieve that embedded status.

 The Acting Director of Resources informed the Committee that in his view, work on value for money issues were part of the daily job of all Council staff. He added that the process would improve through the closer working relationship with the PCT.

Councillor Smith referred to page 27 and the three specified actions in risk referred to and that these should be included within the Cabinet Member for Resources terms of reference for risk management. He also referred to the key findings and conclusions relating to Internal Control and asked would all the actions referred to be carried out. The Acting Director of Resources stated that all the actions were being worked on. With regard to the risk management elements, the proposed action on these issues would be submitted to the Constitutional Review Working Group for consideration.

Councillor Smith requested that his eagerness for the risk management issues to be put in place be recorded.

Councillor Toon suggested that an action plan be brought back to the Committee to update Members on the issues and recommendations raised on page 27 together with the actions taken by the officers.

RESOLVED:   That

(i)                 the Audit Commission’s Use of Resource report be noted; and

(ii)               the Acting Director of Resources submit a report to the next meeting of the Committee which details the recommendations contained in the Audit Commission’s report together with the progress to date and the future actions to be taken on the recommendations.