To receive any updates from the leader of the council.
Minutes:
With the agreement of the leader, Councillor Kevin Bulmer, the Co-Chairman of Joint Audit and Governance Committee gave a briefing on the issues raised on the council’s control environment.
The Joint Audit and Governance Committee was receiving an increasing number of reports that indicated a significant reduction in the council’s control environment, to the extent that internal and external audit were raising concerns with committee members. Whilst he recognised and supported the efforts the officers were undertaking to address the concerns raised and to engage with internal and external audit, the general weakening of the council’s control environment was a significant risk and firm and swift action must be taken to address it.
At the July meeting of the Joint Audit and Governance Committee, the internal audit annual opinion 2016/2017 reported that:
· There had been a notable weakening of the councils’ control environment from the previous year, particularly within key financial systems;
· Assurance ratings within five key financial systems had reduced from the previous year – general ledger, pro-active anti-fraud review, housing benefits and council tax reduction scheme, national non-domestic rates and treasury management;
· From 45 completed audits in 2016/17, 40 per cent received limited assurance which span all service areas;
· In total 210 recommendations to improve controls and procedures were made, and 30 per cent (17.5 per cent previous year) were classified as high risk.
At the March and July committee meetings, Capita’s attendance had been requested to respond to any questions members may have had on the numerous reports being presented. Capita failed to send any representatives to attend either meeting. It was agreed at the July meeting that the Co-Chairmen would send a strongly worded letter to Capita’s managing director requesting greater engagement and assurance from Capita on the services they are providing which underpin the council’s control environment.
It was necessary to draw these concerns to the attention of all councillors, and to ensure the concerns are addressed by officers and the Five Councils’ Partnership and the control environment is strengthened. Whilst control issues do have a reputational and operational impact, the concern was greater than that as it is the control environment which ensures the council spends the public’s money efficiently, effectively and transparently.
Councillor Bulmer was satisfied that officers were pursuing these matters vigorously, and they had the full support of the Joint Audit and Governance Committee in doing so.
The leader of the council gave his report.
· He had been peer reviewing another council;
· He had attended the LGA conference;
· He would be attending the Oxfordshire Leaders’ and Chief Executives’ meeting next week to discuss our own emergency procedures and activities.
Questions to leader
Question: This was not the first time that we have had difficulties with Capita contracts: there is no value in saving money if it results in a worse service.
Response: The leader agreed that the Five Councils’ Partnership should not be about lowering standards but rather about levelling up to the best of the Five Councils. There are specific areas where Capita were letting us down and we need to manage those issues. South Oxfordshire was still a high performing council is committed to improving further.
Question: When are we expecting an update from central government on our unitary status bid?
Response: Given changes to the political landscape since the general election and other governmental priorities, we were not anticipating a response from the secretary of state in the near future. We were working on the basis that we would continue as South Oxfordshire and Vale of White Horse District Councils for the foreseeable future.
Question: The leader was asked what would happen if the bid to the Secretary of State for the Housing Infrastructure Fund for Didcot Garden Town was unsuccessful.
Response: The planned bid from this authority was for £250 million, although the structure of the bidding process meant that it was a third party bid via the County Council. Whether or not the bid was successful, the council would continue to apply for all available sources of funding and would also continue to keep a constructive dialogue open with central government.