Agenda and draft minutes
Venue: via MS Teams
Contact: William Mohieddeen, Democratic Services Officer Tel: 01835 826504 Email: william.mohieddeen@scotborders.gov.uk
Link: Live Stream link
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(a) Consider Minute of the Meeting held on 14 February 2022 to be approved and signed by the Chairman. (Attached)
(b) Consider Audit Business Action Tracker. (Attached) Additional documents: Minutes: There had been circulated copies of the Minute of the Meeting held on 14 February 2022.
DECISION AGREED to approve the Minute for signature by the Chairman.
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Audit Business Action Tracker Minutes: There had been circulated copies of the Audit Business Action Tracker which was presented by the Chief Officer Audit and Risk. With reference to paragraph 7 of the Minute of the Meeting held on 22 November 2021, the Chief Officer Audit and Risk advised that the Internal Audit Work to October 2021 report on the review of business continuity arrangements across the Council would be brought to the Committee for consideration. In line with the audit strategy, a project was set up to implement an upgraded system address refresh of business continuity plans which was aligned with pandemic actions. This was still in its early stages and it was suggested to keep this action in the action tracker. It was advised that an update may come for the June 2022 meeting primarily for an update on implementation of the system and the early stages of business continuity plans.
DECISION
(a)
AGREED that the action with regard to
Internal Audit Work to October 2021 (business continuity
arrangements) from the Meeting held on 22 November 2021 would
remain on the action tracker. (b) NOTED the update.
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Progress Update on LDS Financial Management Recommendation PDF 442 KB Consider update report by Director for Health & Social Care. (Attached) Minutes: 1.1 With reference to paragraph 4 of the Minute of the Meeting held on 10 May 2021, there had been circulated copies of an update report by Director for Health and Social Care Partnership that set out the actions taken by the Learning Disabilities Service (LDS) in relation to the recommendation within the Final Internal Audit Report – Learning Disabilities Service Financial Management dated 30 April 2021. The report was presented by the Director for Health and Social Care Partnership, Mr Myers, who explained that LDS had undertaken a range of measures from the Heywood review on the Service’s financial situation with expected savings of £240,000 made from the current year. However, in spite of work undertaken, costs were over those budgeted and the LDS had a starting deficit of just over £1 million. While £300,000 had been identified to support these pressures, this still left £745,000, which was clearly significant. Pressures were partly due to changes to demographic growth and the remainder was in relation to increases in packages of care for people with learning disabilities. An enabling approach was being taken, with work underway to ensure dependence was not being created for service users. Mr Myers gave details of progress on actions which had been self-assessed in the report, with a number of actions assessed as ‘green’ and a few assessed as ‘amber’. Julie Heywood had been approached to come back in and assess actions in the report, hopefully by the end of March 2022. With regards to action two of the report, an experienced Social Worker from another local authority was to be brought in by the end of April 2022 to provide a steer. With regards to action three of the report, Mr Myers advised that he was working with the Director Social Work & Practice to ensure there was better professional alignment between adult and child Social Workers to ensure consistency of approach. With regards to action four of the report, there were a number of high cost placements within the area where individual health and social care needs which had been reviewed through the NHS process resulting in high SBC costs. The review of that process had started so there was more input from SBC, which should reduce the financial risk to the organisation. With regard to action five of the report, the financial team was offering support to develop a set of tools to help social work staff in their approach to financial management. With regard to action six of the report, this action would involve the community care review team which was involved with older adults to ensure better consistency for users. With regard to action seven of the report, Mr Myers advised that the general manager was being asked to provide a detailed learning disabilities financial recovery plan for 24 March to deliver savings as quickly as possible. Mr Myers advised that it was expected that a combination of the actions would set a better financial trajectory for the Learning Disabilities Service, ... view the full minutes text for item 3. |
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Internal Audit Work to February 2022 PDF 259 KB Consider report by Chief Officer Audit and Risk. (Attached) Minutes: 1.1
There had been circulated copies of a report by the
Chief Officer Audit and Risk that provided members of the Audit and
Scrutiny Committee with details of the recent work carried out by
Internal Audit and the recommended audit actions agreed by
Management to improve internal controls and governance
arrangements. The work Internal Audit
carried out in the period from 1 – 28 February 2022,
associated with the delivery of the approved Internal Audit Annual
Plan 2021-22, was detailed in the report. A total of two final Internal Audit reports had
been issued. There were four
recommendations made associated with the two reports (one
‘High’-rated, one ‘Medium’-rated and two
‘Low’-rated). An Executive
Summary of the final Internal Audit assurance reports issued,
including audit objective, findings, good practice, recommendations
(where appropriate) and the Chief Officer Audit and Risk’s
independent and objective opinion on the adequacy of the control
environment and governance arrangements within each audit area, was
shown in Appendix 1 of the report. The
SBC Internal Audit function conformed to the professional standards
as set out in Public Sector Internal Audit Standards (PSIAS) (2017)
including the production of the report to communicate the results
of the reviews. Internal Audit
assurance work that was underway was detailed in paragraph 4.6 of
the report. The Chief Officer Audit and
Risk highlighted Internal Audit consultancy and other work which
included the Fit for 2024 transformation programme, and a specific
training workshop for all Internal Audit team members on the
Council’s new Contract Management System, as part of the
internal rollout of this system across the Council’s services
to those involved in contract management. The Chief Officer Audit and Risk advised of the
‘High’-rated recommendation that had been made in the
Internal Audit review of Schools Financial and Business
Administration Processes to address completion of e-learning
training that should be expected in schools. There were further recommendations for schools
inventory to ensure up-to-date inventories, especially for fire or
other such incidents. 1.2 In response to a question about the completion rates for mandatory Child Protection training, particularly in teaching staff, the Chief Officer Audit and Risk confirmed that encouraging conversations had taken place with the Director Education and Lifelong Learning and the Chief Officer Education with regard to completion of mandatory e-learning and that reports were produced on completion of training. Commitments had been made for how training would be facilitated for teachers when not in class and where there were opportunities to take up training. A dashboard for when staff completed training needed more management oversight and there were very encouraging signs of that being quickly addressed. The Chief Executive advised that the current numbers of non-completion were not to hand but had been requested. When this matter first came to light, Ms Meadows had spoken to the Director of Education and Lifelong Learning and all staff had now been given a clear instruction to complete the training. This was also being looked at across the whole organisation to ensure compliance. It ... view the full minutes text for item 4. |
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Follow-Up Review of Completed Audit Recommendations PDF 203 KB Consider report by Chief Officer Audit and Risk. (Attached) Minutes: There had been circulated copies of a report by the Chief Officer Audit and Risk that provided an update to the Audit and Scrutiny Committee on the results of the Follow-Up Review which included a sample check on the adequacy of new internal controls for Internal Audit Recommendations marked as completed by Management in the period January to December 2021. Internal Audit was an independent appraisal function established for the review of the internal control system as a service to Scottish Borders Council. It objectively examined, evaluated and reported on the adequacy of internal control as a contribution to the proper, economic, efficient and effective use of resources and the management of risk. The Internal Audit activity added value to the organisation (and its stakeholders) when it considered strategies, objectives, and risks; strived to offer ways to enhance governance, risk management and control processes (by way of making audit recommendations); and objectively provided relevant assurance. The Remit of the Audit and Scrutiny Committee included the Audit function to consider “all matters relating to the implementation of recommendations contained within internal audit reports”, as part of its high level oversight of the framework of internal control, risk management and governance within the Council. The Chief Officer Audit and Risk advised that the sample of six ‘completed’ Internal Audit recommendations selected were spot checks on top of cyclical routine audit follow-up work.
DECISION (a)
AGREED that it was satisfied with the
outcomes. (a)
NOTED: (i)
The results of the spot check on
Internal Audit recommendations that had been marked as completed by
Management in the period January to December 2021 to improve
internal controls and governance, and mitigate risks; and (ii) That Internal Audit would continue to monitor the completion of recommendations and would provide update reports to this Committee.
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Audit and Scrutiny Committee Annual Self-Assessments and End of Term Report 2021/22 PDF 181 KB Consider report by Chairman of Audit & Scrutiny Committee. (Report and appendices attached) Additional documents:
Minutes: 1.1
There had been circulated copies of a report by the
Chairman of the Audit and Scrutiny Committee that provided members
with the Audit and Scrutiny Committee Annual/End of Term Report
2021-22, presenting the Committee’s performance in relation
to its Terms of Reference and the effectiveness of the Committee in
meeting its purpose, relating to its Audit functions. It was important that the Council’s Audit
and Scrutiny Committee fully complied with best practice guidance
on Audit Committees to ensure it could demonstrate its
effectiveness as a scrutiny body (Audit functions) as a foundation
for sound corporate governance for the Council. The CIPFA Audit Committees Practical Guidance for
Local Authorities and Police 2018 Edition (CIPFA Audit Committees
Guidance) included the production of an annual report on the
performance of the Audit and Scrutiny Committee against its remit
(Audit functions) for submission to the Council. The Audit and Scrutiny Committee Annual/End of
Term Report 2021-22 (included as Appendix 1 of the report) was
presented for consideration. Scottish
Borders Council continued to be a lead authority in adopting this
best practice. The Audit and Scrutiny
Committee carried out self-assessments of Compliance with the Good
Practice Principles Checklist and Evaluation of Effectiveness
Toolkit from the CIPFA Audit Committees Guidance during the
Informal Session on 14 February 2022 facilitated by the Chief
Officer Audit & Risk. The
self-assessments were appended to this report as Appendix 2 (Good
Practice Principles) and Appendix 3 (Effectiveness) for
consideration. The outcome of the
self-assessments were a high degree of performance against the good
practice principles and a high degree of effectiveness. The Chairman confirmed that it was intended that
the report would be presented to Council at its meeting on 31 March
2022. Ms Barnett referred to the
recommendation for Council within the End of Term report around the
presentation to Directors on risk and mitigations within their
Services, and suggested that it would be helpful to include a short
paragraph within the “Meetings” section of the report
to show how useful the Committee had found these. Members unanimously agreed to this
addition. Members further agreed that
the recommendation to Council that the appointed Chair should have
previously been a member of Audit and Scrutiny Committee be amended
to reflect that this should be the case where
practicable. DECISION AGREED:
(a)
To approve the Audit and Scrutiny
Committee Annual/End of Term Report 2021-22 (Appendix 1 to the
report), with slight amendments as detailed above, which
incorporated its self-assessments (Appendices 2 and 3 to the
report) using the CIPFA Audit Committees Guidance; and (b) That the Audit and Scrutiny Committee Annual/End of Term Report 2021-22 should be presented to the Council.
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External Audit Annual Plan 2021/22 for the Pension Fund PDF 336 KB Consider Audit Scotland “Scottish Borders Council Pension Fund Annual Audit Plan 2021/22”. (Attached) Minutes: There had been circulated copies of the Scottish Borders Council Pension Fund Annual Audit Plan 2021-22 which summarised the work plan for the 2021-22 external audit of Scottish Borders Council Pension Fund. In presenting the work plan, Ms Woolman, Audit Director with Audit Scotland, noted that there were 11,700 members of the Fund, which had assets reflected in the balance sheet worth £860bn. There was continued reference to the pandemic throughout the work plan and 2021-22 was the sixth and final year of the audit appointment. Audit appointments were usually five years however the appointment had been extended due to the Covid-19 pandemic.
DECISION NOTED the work plan.
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Internal Audit Charter PDF 208 KB Consider report by Chief Officer Audit and Risk. (Attached) Additional documents: Minutes: There had been circulated copies of a report by the Chief Officer Audit and Risk that provided the Audit and Scrutiny Committee with the updated Internal Audit Charter for approval that defined the terms of reference for the Internal Audit function to carry out its role to enable the Chief Audit Executive to prepare the annual Internal Audit opinions on the adequacy of each organisation’s overall control environment. The definition of Internal Auditing within the Public Sector Internal Audit Standards (PSIAS) was “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.” In accordance with the PSIAS, the purpose, authority and responsibility of the Internal Audit activity must have been formally defined in an Internal Audit Charter, consistent with the Definition of Internal Auditing, the Code of Ethics and the Standards. The Chief Audit Executive must have periodically reviewed the Internal Audit Charter and presented it to senior management (Strategic Leadership Team) and the board (Audit and Scrutiny Committee) for approval. The Internal Audit Charter had been updated by the Chief Audit Executive (SBC’s Chief Officer Audit & Risk) and the Principal Internal Auditor in conformance with the PSIAS. The Internal Audit Charter was shown in Appendix 1 to the report for approval by the Audit and Scrutiny Committee to ensure that Internal Audit was tasked to carry out its role in accordance with best Corporate Governance practice. The Chief Officer Audit and Risk advised that the document would be a key document in the induction of new members to the Audit and Scrutiny Committee. The report had been presented to the Strategic Leadership Team and minor amendments included the restructure of the Strategic Leadership Team in September 2021 and the change in roles and responsibilities of each Director, and the associated change in the line management arrangements for the Chief Audit Executive.
DECISION AGREED to:
(a)
Note the changes to the Internal Audit
Charter outlined in section 4 of the report in conformance with
PSIAS; (b)
Approve the updated Internal Audit
Charter, as shown in Appendix 1 to the report; and (c) Note that the Internal Audit Charter would be reviewed annually.
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Internal Audit Strategy and Annual Plan 2022/23 PDF 205 KB Consider report by Chief Officer Audit and Risk. (Report and appendices attached) Additional documents:
Minutes: There had been
circulated copies of a report by the Chief Officer Audit and Risk
which sought approval of the proposed Internal Audit Strategy and
Internal Audit Annual Plan 2022/23 to enable the Chief Audit
Executive to prepare annual opinions on the adequacy of the overall
control environment for Scottish Borders Council, Scottish Borders
Pension Fund, and Scottish Borders Health and Social Care
Integration Joint Board.
A fundamental role of the Council’s Internal
Audit function was to provide senior management and members with
independent and objective assurance which was designed to add value
and improve the organisation’s operations. In addition, the Chief Audit Executive (CAE) was
also required to prepare an Internal Audit annual opinion on the
adequacy of the organisation’s overall control
environment. The Internal Audit
Strategy attached as Appendix 1 to the report, outlined the
strategic direction for how Internal Audit would achieve its
objectives, which were set out in the Internal Audit Charter, in
conformance with PSIAS. It
guided the Internal Audit function in delivering
high quality Internal Audit services to Scottish Borders
Council (SBC), Scottish Borders Council Pension Fund (SBCPF), and
Scottish Borders Health and Social Care Integration Joint Board
(SBIJB). The Internal
Audit Annual Plan 2022/23 attached as Appendix 2 to the report, had
been developed by the Chief Officer Audit & Risk (CAE) and the
Principal Internal Auditor. It set out
the range and breadth of audit activity and sufficient work within
the audit programme of work to enable the CAE to prepare an
Internal Audit annual opinions for SBC, SBCPF, and
SBIJB. Separate Internal Audit Annual
Plans 2022/23 for the SBCPF and SBIJB would be presented to their
respective board/audit committee for approval. Key components of the audit
planning process included a clear understanding of each
organisation’s functions, associated risks, and assurance
framework. Ms Stacey gave responses on
questions around providing cover for members of staff on long term
sickness absence, the value of complaints analysis to improve
Council Services, the flexibility of the Audit Plan for 22/23, and
the audit of schools. DECISION AGREED to:
(a) endorse the Internal Audit staff resources needed to deliver the Internal Audit Strategy and Annual Plans;
(b) approve the Internal Audit Strategy as detailed in Appendix 1 to the report; and
(c)
approve the Internal Audit Annual Plan
2022/23 as detailed in Appendix 2 to the report. CHAIRMAN This being the last meeting of the Audit & Scrutiny Committee prior to the local government election, The Chairman all members of the Committee for their input over the last few years, and in particular the external members of the Committee for their welcome contributions. On behalf of the Committee, Councillor Robson in turn thanked Councillor Bell for his assiduous chairing of the Committee and management of meetings.
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Management and Maintenance of Public Halls PDF 592 KB Consider report by Director Strategic Commissioning and Partnerships. (Attached) Minutes: 1.1
During discussion of this item, Councillor
Thornton-Nicol noted she was Chair of the Newtown Community Wing
and Councillor Anderson noted she was the Council Representative on
Peebles Drill Hall management committee. Neither Councillor declared an interest in the
item and remained in the meeting. 1.2
There had been circulated copies of a report by
Director Strategic Commissioning and Partnerships that outlined an
evaluation of the community contribution to the management and
maintenance of public halls, including those managed by Live
Borders. Scottish Borders Council had
responsibility for 62 halls, and the Federation of Village Halls
indicated they had 96 members in the Borders. Scottish Borders Council retained maintenance and
repair responsibility for the 62 halls that it was responsible for,
including those leased to Live Borders, and individual leases
contained information on the level of maintenance and repair
obligation, including where Communities/Voluntary Management
Committees had no obligation or responsibility. Scottish Borders Council provided annual funding
to the Federation of Village Halls of approximately £50,000
per year and Live Borders provided voluntary management committees
with funding on an annual basis towards operational
costs. The social value of
halls/community centres included use of the venues for regular
local events and activities, emergency response and Covid-response.
Volunteers also regular fund raising for improvements to their
building, and as a proxy measure, this could inform the
‘community contribution’.
Programme Manager, Mr McMurdo, advised that anecdotally a number of
community centres had voluntary management committees, although
some faced challenges maintaining their management committee and
recruiting young members. 1.3 Under the Service Provision Agreement Scottish Borders Council had with Live Borders for the delivery of sport and cultural services, 29 halls were under the contractual responsibility of Live Borders. The maintenance and repair responsibility for these halls remained with Scottish Borders Council under the terms of a Property and Estates Service Level Agreement. Members discussed the funding of halls and the support provided to management committee from Live Borders, noting the example of the Victoria Hall in Selkirk which was owned by the Common Good Fund and operated by Live Borders. The Selkirk Common Good Fund was responsible for paying for maintenance while Live Borders retained income from the Hall. While Live Borders provided funding to community centres, part of the process involved a recharge to the management committees, which meant these committees needed to fund raise to pay for items. This process perhaps needed reviewed. It was noted that the funding provided by Scottish Borders Council to the Federation of Village Halls areas implied that the value assigned to each area did not have a consistent funding per village hall formula. It was advised this may have been due to some federations charging administration fees which may affect the respective funding value. Members agreed that a paper should be brought back to the committee by officers outlining further detail of the management and funding of village halls, including the consistency in terms of support, which hall committees were active/dormant, which halls were struggling, ... view the full minutes text for item 10. |