To present to the Committee for consideration the updated draft revised terms of reference for the Audit and Governance Committee.

Tony Ford, Chief Internal Auditor, presented updated draft revised terms of reference for the Audit and Corporate Governance Committee’s consideration.

Councillor R Mills referred to page 34 paragraph 7(iii) and asked for a report on the provision of Amey services and how well it is managed. The Chief Internal Auditor informed the Committee that the next item on the agenda, the Audit Plan Minute No.146 refers, would be the fundamental system where the Amey contract would be reported.

The Director of Resources referred to the fine balance between matters which should be considered by Audit and Corporate Governance Committee and those matters which are more properly dealt with by the scrutiny process and are in effect outside of its terms of reference. He informed Members that the Audit Commission was in the process of preparing a report to be submitted to the Council on Procurement and within that report there was a strong section covering the new Amey contract.

Terry Tobin endorsed the Director’s comments. He informed Members that the relationship between Amey and the Authority had been looked at post Crookhall. The Audit Commission had also raised issues which the Chief Executive had indicated that these issues would be addressed.

Councillor AM Toon referred to the Council’s procedures and protocols and how far did these extend to its partners. The Assistant Chief Executive, Legal and Democratic informed the Committee that the Council must ensure that it achieves value for money in engaging with its partners. With regard to partners and legal compliances on issues, this was an area where partners were responsible for their own actions.

The Director of Resources informed Members that he would present the Audit Commission’s report on procurement that also covered the Amey contract to the next meeting. He stressed the need for the Committee to distance itself from scrutiny areas of working.

Councillor RH Smith stated that the draft revised terms of reference fully reflect the Chairman’s and Vice-Chairman’s comments. He questioned, however, the appointment of an independent person to the Committee who would then become Chairman and asked what was its rationale. He had concerns that if such an appointment was made, then there was the possibility that on an occasion where the committee reached a quorum of three that the majority vote would be cast by a non elected Member. The Assistant Chief Executive, Legal and Democratic informed the Committee that this had been in the constitution for some time. He emphasised, however, that there was scope for legislation to enforce this issue of the appointment of an independent Member with Chairmanship of the Committee.

RESOLVED:   That

(i)                 the revised terms of reference together with the proposed change of name of the Committee as set out in Appendix 1 to the report be approved subject to the following amendments:

(a)   the word ‘policy’ being inserted after the word ‘blowing’ in paragraph 5.1.1 iii;

(b)   the words ‘financial and associated’ be inserted after the word ‘Council’s’ in line two of paragraph 5.1.11 ix;

(ii)        Council be recommended to approve the quorum of the committee being amended to four Members, three of which must be Members of the Council should the committee appoint an independent Member;

(iii)             the Audit Commission’s Action Plan  response with regard procurement be submitted to the next meeting;

(iv)             the Environment Directorate be invited to report to the Committee on how the Amey contract with the Council will work and that the  Chairman of the appropriate Scrutiny Committee be invited to attend the meeting;