There were no apologies.

There were no declarations.

Purpose of report: To appraise Members of the activity and performance of the Corporate   Investigation Team for the period 1 April 2015 to 31 January 2016

Recommendation: That the Committee note the report.        

The Chair took this item first.

The Committee considered the report of the Head of Financial Services, setting the activity and performance of the Corporate Investigation Team from 1 April 2015 to 31 January 2016.

In response to questions officers reported:

·         The team aimed to cover its costs by generating income and hoped to repeat this year’s success while accepting this may be harder.

·         The targets for the FERIS scheme had reduced significantly.

·         Income generated and loss avoidance figures for right to buy, property recovery, and housing application fraud prevention were calculated using the Audit Commission methodology.

·         Business rates were subsumed into the overall figures in the budget not separately identified: this was a significant amount of money but not a large percentage of the total income.

·         The satisfaction survey dealt with the process rather than the outcome and was generally completed at the time of the interview. Surveys could be taken away for completion but were generally not sent back.

Councillors asked for information on the actual net income recovered for the city and county councils in this financial year, in particular for business rates, through recovery and loss prevention.

The Committee noted the report and commended the team on their success.

Purpose: the Audit Plan sets out how Ernst & Young intend to carry out their responsibilities as auditor.

Recommendation: the Committee is asked to discuss the plan.

The Committee considered the report of the Council’s external auditors, Ernst & Young, setting out how they would carry out their responsibilities for the 2015-16 audit.

Paul King and David Guest, Ernst & Young, outlined the plan for the 2015-16 audit. They reported a reduction in fees from 2014/15 audit. They had not identified any significant risks in the council’s arrangements and no significant risks to the value for money assessment. The definition of ‘sustainable’ used related to financial stability for the continuation of an activity. Measuring social value (as in the Public Services (Social Value) Act 2012) was beyond the remit of the audit. Materiality was consistent with previous years (0.1% of the gross expenditure).

The Committee agreed the audit plan as set out.

Purpose: the report summarises the work of the external auditor on the Council’s housing benefit subsidy claim.

Recommendation: the Committee is asked to discuss this report.

The Committee considered the report of the Council’s external auditors, Ernst & Young, summarising the work on the Council’s housing benefit subsidy claim and the outcome.

David Guest, Ernst & Young, introduced the report, outlined the certification process and explained there was no leeway or materiality permitted in the certification. He thanked officers for their help with the audit.

He and officers reported and answered questions as follows:

·         There was no leeway in the extremely proscriptive auditing requirements from the Department of works and Pensions.

·         There was a caseload of around 12,000 individuals. Claims were tending to become more complex and require more work to assess.

·         Speed of assessment and accuracy were not always compatible performance targets. It was acknowledged that errors created extra work for staff and adverse impacts for claimants.

·         Additional testing was required because of the number of errors, creating a significant amount of work for a small net effect.

The Committee agreed to note the certification of claims letter and returns report.

Local Government Audit Committee briefing presented by the Council’s external auditors, Ernst & Young.

The Committee considered the local government audit briefing from the Council’s external auditors, Ernst & Young and noted:

·         The Head of Financial Services had prepared responses to consultations on the New Homes Bonus and Council Tax Support scheme.

·         There was no further information on the changes proposed for business rates from April 2020 but there would be new burdens. Revenue Support Grant was being phased out in the run up to this and for Oxford City Council the RSG entitlement was reduced to zero from 1^st April 2019.

·         Work on the financial viability of devolution proposals would be undertaken if there was a political will to proceed.

Report of the Internal Auditor (to follow)

Purpose: to inform the Committee of progress made against the 2015/16 internal audit plan which was approved by Audit and Governance Committee on 23 April 2015.

The following reports were issued with a Moderate opinion for both design and effectiveness of controls and the Executive Summary is provided in this report:

•           Budgetary Control and Performance Management

•           Enforcement

•           Homelessness Prevention

An audit for the DCLG Flood Support Scheme Grant Certification was completed. This is a certification for grant funding received: BDO issued a letter to DCLG confirming no instances of non-compliance were identified

Recommendation: The Committee is asked to note the report.

Councillor Paule left before the start of this item.

The Committee considered the report of the Council’s internal auditors, BDO, setting out progress against the approved internal audit plan and detailing the recommendations from three audit reports highlighting moderate risks.

The Committee noted the report and the recommendations arising.

Report of the internal auditor (to follow)

Purpose: to inform the Committee of progress on those recommendations raised by Internal Audit which are due for implementation.

Recommendation: the Committee are asked to consider and note the report.

The Chair took this item next.

The Committee considered the report of the Council’s internal auditors, BDO, setting out progress on implementing the recommendations arising from previous internal audits.

The Committee noted the report and asked that the report show the original anticipated completion date and the actual or expected completion date.

Report of the Internal Auditor (to follow)

Purpose: to set out the audit plan for 2016 to 2019.

Recommendation: The Committee is asked to note the report and agree the operational audit plan for 2016-17 and the strategic plan for 2016-19.

The Chair left the meeting at this point for another appointment, and the Vice-Chair took the chair for the remainder of the meeting.

The Committee considered the report of the Council’s internal auditors, BDO, setting out the internal audit plan in detail for 2016-17and in summary to 2019.

The Committee noted that:

The plan provided for 230 days work and remained flexible to accommodate new risks and challenges.

Social value measures would be taken into account where appropriate.

While there was some duplication with Investors in People, this was accounted for in internal audit’s wider remit.

Treasury management was regularly reviewed to assess resilience. The Council mostly held long term safe investments rather than the stock market, aiming for security and liquidity.

The Committee approved the audit plan as set out in the report of the internal auditors.

Purpose of report: To report progress on the implementation of internal and external audit recommendations.

Recommendation: The Audit and Governance Committee is asked to note progress with the recommendations listed in Appendix A.

The Committee considered the report of the Head of Financial Services, setting out progress on the implementation of internal and external audit recommendations, and noted that the collection fund recommendations were now completed.

The Committee noted the report.

Purpose of report: To update the Committee on both corporate and service risks as at the end of Quarter 3, 31st December 2016.

Recommendation: That the Committee notes the contents of this report, in particular that the Housing Revenue Account business plan risk has been separated from the Medium Term Financial Plan risk.

The Committee considered the report of the Head of Financial Services, setting out corporate and service risks as at the end of Quarter 3, December 2015.

The Committee noted the report and noted the prudent approach taken to mitigating serious risks arising from the government’s proposals around social housing.

Purpose of report:to inform the Committee of the Officer Executive Decisions taken in this municipal year.

Recommendation: that the Committee note the report and the decisions taken.

The Committee considered the report of the Head of Law and Governance, setting out Officer Executive Decisions taken this financial year.

The Committee noted the report and decisions taken and asked if more financial information could be included in these.

Minutes of the meeting held on   

The Committee agreed to approve the minutes of the meeting held on 16 December 2015 as a true and accurate record and the Vice-Chair (in the Chair) signed these as such.

The Committee will meet at 6.00pm in the Town Hall on the following date:

29 June 2016

The Committee noted the dates and times of future meetings.