Agenda and minutes

Councillor Susan Durant declared a non-pecuniary interest in agenda item 5, ‘Monitoring Officer Annual Whistleblowing and Standards report 2016/17’.

RESOLVED that the minutes of the Audit Committee meeting held on 6th April, 2017, be approved as a true record and signed by the Chair.

The Monitoring Officer’s presented his Annual report on matters relating to ethical governance, including, details of any complaint handling activity carried out in consultation with the Independent Person with regard to allegations of Member misconduct and details of disclosures made by members of staff under the Council’s Whistleblowing Policy during the last 12 months.

The Monitoring Officer gave an overview and explanation of the assessment of complaints process.  It was reported that over the past 12 months, the majority of complaints received had not been taken further, as many simply did not fall within the scope of the Council’s Code of Conduct.  The Monitoring Officer further advised that as Code of Conduct investigations, when undertaken, were time consuming and used valuable resources, the benefit of carrying out such investigations must be balanced against the limited sanctions, which could be imposed upon Councillors, even in cases of poor behaviour. He added that it remained a frustration of himself and of other Monitoring Officers that following changes in the law in 2011, there were insufficient sanctions in place to deal with the more serious behavioural issues.

The Monitoring Officer highlighted that he was Monitoring Officer for both Doncaster MBC and the 41 Parish and Town Councils across the Borough, which comprised approximately 350 Councillors.  In this context, the number of complaints received was relatively low and showed a pattern of good behaviour across Doncaster.

In response to a question from the Chair as to whether a complainant had a right of appeal if they were unhappy with the outcome of their complaint, Members were informed that whilst there was no right of appeal against the decision of the Monitoring Officer, the complainant could write to the Ombudsman, but the Ombudsman generally didn’t deal with Code of Conduct matters.  In relation to cases of serious breaches, it was reported that there had only been one occasion where a complaint been brought to the Committee, since changes to the law and the complaints process in 2011.

Kathryn Smart sought clarity as to whether any feedback was given to whistle-blowers under the whistle-blowers’ rights under the Public Interest Disclosures Act. The Monitoring Officer advised that subject to the complainant providing their contact details, the Council always endeavoured to write to complainants, where possible, to inform them of the outcome of an investigation, which gave them the opportunity to provide feedback.  It was explained that, as a matter of process, the complainant’s identity wasn’t disclosed and any feedback provided by the complainant was taken on board. 

Kathryn spoke of the importance of whistle-blowers being given the opportunity to provide feedback regarding the process, in particular, in terms of how they were treated, how they had been kept informed throughout the process and asked whether Whistle-blowers would be likely to report whistleblowing matters again. The Monitoring Officer advised that whistle-blowers were not asked this question at the end of the process, however, indicated that this was something that could be taken on board in the future  ...  view the full minutes text for item 67.

Further to the above Minute, Peter Dale, Director of Regeneration and Environment presented a report, which provided an in-depth analysis of how the four strategic risks aligned to the Regeneration and Environment Directorate were managed, reviewed and reported, following the Committee’s consideration of the Strategic Risk Mapping report on 17th August 2016.

The Director of Regeneration and Environment outlined the four strategic risks identified in the 2016/17 risk register including:-

·     Engagement in the City Region to secure economic benefits for Doncaster

·     Impact of Brexit on funding / projects (Joint risk with Finance & Corporate Services)

·     Dealing with emergencies (emergency planning and resilience)

·     Ensuring robust health & safety exists

Tracey Harwood, Head of Service Regulation and Enforcement, with responsibility for Emergency Planning, Christian Foster, Head of Service, Strategy and Performance Unit and Simon Wade, Interim Health and Safety Manager, were in attendance at the meeting to respond to Members’ questions.

In referring to the Strategic Risk, ‘Failure to respond adequately to Borough emergencies’ and in light of the recent tragic fire at Grenfell Towers in London, Members asked whether a risk assessment had been carried out on sprinklers in the Council’s Tower blocks and whether the buildings complied with all regulations.  The Director of Regeneration and Housing advised that following the terrible situation in London last week, he and the Deputy Mayor were to attend a meeting, following this meeting with the Council’s housing provider St Leger Homes to look at the current position in relation to the Borough’s Tower Blocks.  He advised that there had been recent risk and fire risk assessments undertaken on all high rise buildings and the Council was currently in the process of analysing the cladding on all the buildings to ensure that it was safe.  The Council had been working with the South Yorkshire Fire and Rescue Service who had provided the Council with the information it required with regard to sprinkler systems.  The Council had also been working with the Department of Communities and Local Government and been providing the department with the necessary information.

Members also referred to Tower Blocks only having one exit and cladding on houses, flats and shops and asked whether the Council was to carry out inspections on all premises.  The Director of Regeneration and Housing confirmed that the Council would be looking at all Council owned buildings across the Borough as part of the review.

In relation to the status of the target risks in the Appendix to the report, Kathryn Smart felt that it wasn’t clear from the information provided, when it was expected that the target risks were to be reduced and sought assurance when the mitigating actions would reduce the risk.  It was reported that risks were reviewed on a quarterly basis, as part of the performance and review process.  Whilst some targets were moving, the risks relating to Sheffield City Region (SCR) devolution and the European Union would continue to be assessed in terms of their impact on Doncaster.  In relation to Borough Emergencies, it was  ...  view the full minutes text for item 68.

Further to the above Minute, Helen Potts, Principal Legal Officer, presented a report which set out the Council’s Regulations of Investigatory Powers (RIPA) Procedure and the RIPA applications that had been authorised since the last report to Committee in April 2016.

The Council’s RIPA procedure had been reviewed as part of the yearly report.  The Procedure was last amended in response to the Surveillance Commissioner’s inspection on 5th January 2016 and approved at the Audit Committee in April 2016.  The current procedure was attached at Appendix 1 of the report for Members’ information.  Appendix 2 of the report detailed the covert surveillance authorisations since the last report in April 2016 and an update on earlier authorisation outcomes from recently completed matters. Where an authorised surveillance involved a number of premises this was now detailed in the Appendix.

Arising from a query by the Chair regarding whether the Office of Surveillance Commissions undertook inspections on a yearly basis, the Principal Legal Officer advised that there were no specific timescales regarding inspections.  The last inspection was conducted in January 2016 and the action plan arising from the inspection was now complete.  It was reported that in-house training was to be provided to those staff involved in Covert Surveillance, which would now take place in July, due to delays with the election. 

In relation to tracking the illegal sales of alcohol, a Member raised a particular concern as to whether these matters were referred to the Licensing Committee. It was reported that day to day licensing matters were dealt with by the Trading Standards Team, however assurances were provided that all measures were taken by the Team to deal with repeat offenders, and such matters would be brought back to the Licensing Committee.

In response to a question from Kathryn Smart as to whether there was an expiry date in relation to URN98, URN99 and URN100 covert surveillance authorisations, as detailed in Appendix 2 to the report, it was reported that these had run for 3 months and had since expired.  Action had been taken, in all respects, which had resulted in either a prosecution, a warning, or that no action was required.  It was further explained that there was a statutory timetable for each surveillance.  Arising from a further query as to why no specific location had been identified with regard to illegal tobacco sales in relation to URN103, Members were informed that this particular matter related to an individual that was known to be active in this area, and was not related to an off licenced premises.

RESOLVED that

(1)         the Council’s RIPA procedure, as attached at Appendix 1 to the report, be approved;

(2)         the 4 RIPA applications that had been authorised since the last report in April 2016, as attached at Appendix 2 to the report. (No RIPA applications had been refused by the Magistrates), be noted; and

(3)         the actions concerning online training following the recommendation of the Audit Committee in November 2016, be noted.

Peter Jackson, Internal Audit Manager, presented a report which set out the formal Terms of Reference for the Audit Committee for 2017/18, as approved by Annual Council at its meeting on 19th May, 2017 and highlighted the minimal changes that had been made to the previous year’s Terms of Reference.

A Prospectus setting out the scope and standards applicable to the Audit Committee was detailed in the Appendix to the report. This showed how these and the Terms of Reference enabled the Committee to comply with Local Government Audit Committee standards and the Council’s requirements of the Committee.  The Prospectus included a draft Work Programme, which demonstrated how the Committee would fulfil its Terms of Reference for the year.

The Internal Audit Manager drew Members attention to Appendix 1 of the Audit Committee’s Work Plan for 2017/18.  This set out some areas previously reported to the Committee where they had requested further updates be reported back to them. These reports would help contribute to the assurance that the Audit Committee’s plan would deliver the Audit Committee’s responsibilities.

Arising from a query from Kathryn Smart in relation to Section 1, ‘Audit Activity’ of the Audit Committee’s Terms of Reference, as set out at Appendix A to the report, the Internal Audit Manager agreed to look at reviewing the Terms of Reference to make it more explicit that a key duty of the Audit Committee was to sign off the Internal Audit Plan. 

In noting Section 2, Regulatory Framework, of the Terms of Reference, Kathryn Smart suggested that greater clarity was required to make clear what functions the Audit Committee would be undertaking.  The Internal Audit Manager agreed to review the Terms of Reference in light of Kathryn Smart’s comments and report back to this Committee.

In referring to the outcomes expected to be achieved by the Audit Committee in meeting its responsibilities in ensuring that there were effective governance arrangements in place and operating throughout the organisation, as referred to in the Section’ How would the Audit Committee know whether they had succeeded’, Kathryn Smart felt that the outcomes needed to be more specific from an audit opinion in terms of what had been achieved, therefore, felt they should be expanded further.  The Internal Audit Manager confirmed that he was happy to consider these comments and agreed to progress these with Kathryn outside of the meeting.

RESOLVED that

(1)         the Terms of Reference for the Audit Committee for the 2017/18 Municipal Year, be noted; subject to the comments, as outlined above.

(2)         the Prospectus setting out the Audit Committee’s scope, standards and work programme for the year, be approved; and

(3)         the Internal Audit Manager to progress the issues raised as above by Kathryn Smart in respect of this report and report back to the Committee at a future date.

The Committee considered the Audit Committee Actions Log, which updated Members on actions agreed during Audit Committee meetings.  It was reported that of the actions identified in the report, all except three were classified as “green”, which indicated that either they had been fully addressed or because arrangements were in hand to complete the actions as agreed. The one outstanding ‘Red’ rated item is in relation to the Solar Centre Contract Breach, which was due to be considered at the Committee’s meeting in October to update members on progress to address this issue.  Two ‘Amber’ items related to a slight delay in the delivery and completion of the RIPA training.

During discussion regarding the revised date for completion of Covert Surveillance RIPA training and further to a request from Members, the Internal Audit Manager suggested to extend the completion date for the training, to the Audit Committee’s meeting in July, in order to allow Members more time, which the Chair was agreeable to.

In relation to the Solar Centre Update, the Chair asked whether Officers were on course to bring forward a satisfactory position on this matter. The Internal Audit Manager commented that there had been a lot of activity around this area.  A person has since been appointed to look at the Solar Centre and a number of other RDaSH establishments.  He explained that this issue was not straight forward to resolve and there was a lot of work to be undertaken in this area.  Work was on-going and draft proposals were being drawn up. The Internal Audit Manager reported that it was not yet clear regarding the timescales involved, however he confirmed that an update on this issue was already scheduled to be provided to Members at the October meeting of the Committee.

RESOLVED that the progress being made against the actions agreed at the previous Committee meetings.

The Committee considered a report presented by the Chief Financial Officer and Assistant Director of Finance, which detailed the Council’s unaudited Statement of Accounts for the 2016/17 financial year.  The report highlighted the overall financial position for the year, a summary accounts closure timetable and information on performance including improvements achieved in accuracy and quality.

It was reported that year on year; the Council had reduced the timescale for producing its draft accounts, whilst at the same time, had improved the robustness of the process.  It was noted that for the production of the 2017/18 accounts, there would be a statutory requirement to produce these by 31st May, 2018.

On behalf of the Committee, the Chair congratulated all staff involved for the work carried out so far.

Kathryn Smart in noting the draft accounts, raised a number of issues where she felt it would be useful, from an external readers perspective, to provide greater clarity, notably in relation to actions to address school absenteeism and staff sickness levels.  During further discussion, it was agreed that a web-link be included in the Statement of accounts, signposting people to where further information on these areas could be found by accessing the Outturn report. It was agreed that Kathryn would forward any additional areas of concern or issues where further clarity was required, by email to Faye Tyas, following the meeting.

In response to questions from the Chair and Members, clarification was provided in respect of the following issues:-

·     Managing fluctuating Reserve levels, having regard to competing pressures, notably in Children’s Services and Adult, Health and Social Care.

·     The context of performance management indicators and an achievement of 91% was considered an excellent achievement.

·     Managing the budget deficit

·     Detailed aspects of the budget relating to Adults, Health and Wellbeing, Doncaster Children’s Services Trust and the Learning Opportunities directorates and Treasury Management issues.

·     Managing Pension Fund liabilities for St Leger Homes and Doncaster Children’s Services Trust.

In approving the draft accounts, the Committee wished to place on record its appreciation for the excellent performance in many areas of the Council, particularly with regard to apprenticeship levels and increased social housing provision.

RESOLVED that the Statement of Accounts for the 2016/17 financial year, be noted.

The Committee received the Annual Governance Statement for 2016/17.  The Council’s governance arrangements in place during 2016/17 had been reviewed and an annual governance statement had been produced and was attached at Appendix A to the report. 

Members noted that there had been 2 significant weaknesses reported in 2016-17, which were Adult, Health and Wellbeing (Contract and Commissioning Arrangements) and Deprivation of Liberty Safeguards (Best Interest Assessments), as detailed on page 5 of Appendix B of the report.  The Governance Statement highlighted the key areas of improvement from 2015-16 that had been completed and had been effectively managed to the extent that they were no longer significant in 2016-17.

In presenting the report, the Chief Financial Officer and Assistant Director of Finance, drew Members’ attention to the new format that had been introduced which included a Statement of Principles as set out on page 2 of the Appendix.  It was reported that some of the key areas for improvement were near completion however, there remained some issues identified during previous years that were yet to be resolved and would be carried forward as part of the 2017/18 action plan.

In response to a question from Kathryn Smart, the Chief Financial Officer and Assistant Director of Finance indicated that he would look at the enhancements suggested to the wording within the report around the assurances/opinions given by Internal and External Audit.

Kathryn Smart asked whether consideration had been given to including Markets and Drainage Boards, as areas requiring improvement.  In relation to Drainage Boards, it was reported that these boards were not directly operated by the Council but that the Council did appoint Commissioners to the Boards. Whilst there were some serious failings in governance arrangements around Drainage Boards, these were more significant, in terms of their impact, on the individual Drainage Boards, rather than their impact on the Council and so were not included within the Annual Governance Statement.  It was highlighted that an update report was to be submitted to the next meeting of the Committee, summarising the current position with regard to the 3 Drainage Boards based within the borough, incorporating some work that had been done with the National Audit Office who had produced a national report on Drainage Boards.  In terms of the Markets, it was reported that an update report had been presented to the Committee in July last year. This reported a better level of assurance that was indicative of a much improved control environment in relation to the governance and financial management arrangements and the Health and Safety issues which were highlighted at that time. Markets were not therefore included in the Annual Governance Statement this year.

During discussion, the Chief Financial Officer and Assistant Director of Finance reported that there was a Council wide misunderstanding of the actual purpose of the Governance Statement, with there being some low level issues raised by Officers.  It was reported that the Annual Governance Statement was intended to provide a holistic, high level strategic  ...  view the full minutes text for item 73.

Members considered a report which proposed a draft Local Code of Corporate Governance 2017/18.  Members noted that the Local Code brought together all the policies and procedures in one place at the Council, which would enable the Council to meet the seven principles of good governance as set out in the CIPFA/SOLACE Framework and outlined in more detail in the report.

The Audit Committee had delegated responsibility for considering governance related matters at the Council, including approving the Council’s Annual Governance Statement. It was proposed to recommend that the authority for approving the Local Code, be delegated to the Audit Committee at the Council AGM on 19th May, if Directors agree with the production and adoption of a Local Code.

RESOLVED that the production of a Local Code of Corporate Governance, be supported; and the draft Local Code of Corporate Governance 2017/18, as attached to the report, be approved.

The Committee was provided with an overview of the Strategic Risks profiles for Quarter 4 2016/17.  18 strategic risks had been identified and all had been updated as part of the scores. Details of the full strategic Risk Profile, was attached to the report at Appendix A.

Members noted that one risk had been identified for demotion, which related to failure to set robust assumptions on pension’s deficit recovery and future contribution rate for the 2016 valuation.  No new risks had been proposed.  To ensure an holistic approach to the management and quality of information and data, it is proposed to reword the following strategic risk FROM: Failure to improve Data Quality will prevent us from ensuring that data relating to key Council and Borough priorities is robust and valid, TO: Failure to ensure the Council meets its statutory information governance requirements and maintains quality data.

16 risk profiles had remained the same during the quarter. Effective mitigating actions had reduced 2 profiles relating to:

·     Failure to deliver the actions identified in the Equality and Inclusion action plan may impact our ability to effectively embed and delivery the equality agenda which could result in the council being exposed to public 'due regard' challenge;

·     Failure to identify and manage Health and Safety risks;

No profiles had increased during the quarter.

In presenting the report, the Assistant Director of Finance and Chief Financial Officer observed that in his view the management of the risks was an Executive function and the role of this Committee was to monitor the actual management of the Strategic risks.  It was reported that in future the Vice-Chair of the Committee, Cllr Richard A. Jones would be invited to attend the Quarterly Performance challenge meetings.

Whist recognising that risk management was good throughout the authority, the Chair asked whether there was a desire to further improve risk management and was there a timeline to achieve this. The Chief Financial Officer and Assistant Director of Finance reported that this would be looked at and further work would be undertaken to improve risk management including, continuing to review and mitigate strategic risks.

It was also noted that SCR Devolution was an issue that would be considered at Quarter 1 discussions to determine whether this needed reviewing, together with other strategic risks.

Members noted that it was proposed to streamline the reporting mechanisms to provide more focused reports, which were expected to be in place by Quarter 4.

RESOLVED that

(1)         the report on Quarter 4 2016/17 Strategic Risk Update; be noted; and

(2)         the proposed demotion of the Strategic Risk around the pension deficit (paragraph 3), be noted.