Agenda item

·         Implementation of Internal Audit recommendations:

The Children and Young People Finance Manager attended the meeting to provide an update on implementation of audit recommendations in schools.  It was explained that in respect of the thirty six outstanding audit recommendations not implemented, twenty five have now been implemented and one is no longer relevant.  One recommendation is ongoing and four are partially implemented. 

Five recommendations involving two schools (Secondary and primary schools) remain not implemented. In the secondary school,  two (concerning inventories and asset management) are ongoing and will be completed by the end of the academic year and one regarding the audit of the school’s private fund is in progress with the school’s auditor and will be returned to the school’s Finance Committee very soon.  The two in the primary school have both been completed and concerned school meals debt which is being addressed and goods purchase orders processes - training has been provided for the new administrator.

It was explained that CYP Finance Officers visit schools and check audit reports but don’t test implementation of recommendations but will speak to the Headteacher to ensure progress.  Additionally, three new  business managers have been recruited to work in the four clusters. Part of their role is to undertake verbal checking and some sampling to ensure the recommendations are in place. 

The Chair asked if there was any evidence or concerns that recommendations are not being taken notice of and it was responded that CYP Finance and Schools have a good relationship with Internal Audit.  There is some evidence that some implementation has not been as quick as it should have been and  this point has been fed back to Headteachers.  The Chief Auditor explained that if there is an unfavourable opinion, Internal Audit will return in 12 months to check if the recommendation has been implemented.  For a more positive opinion, a revisit takes place in 3/4 years. 

In response to a question, it was confirmed that two of the three new business managers are internal appointments funded by a grant from Welsh Government.  One works in the Chepstow cluster, one in the Abergavenny area and one covers both Caldicot and Monmouth.  The role involves providing support and development for school administrators and headteachers and concentrating currently on procurement.

Effectiveness will be measured every 6/12 months using benchmark criteria currently being developed. It was also confirmed that schools are encouraged to seek advice from CYP Finance and Internal Audit.

·         Contract Procedure Rules:

The Chair confirmed that as agreed, he had written to three managers regarding non-compliance with Contract Procedure Rules

1)    Abergavenny Hub: The proposed work was withdrawn and the replacement work complied with the Contract Procedure Rules in terms of procurement.

2)    The Project Engineer (Structures), Highway & Flood Management attended regarding a Parsons Brinckerhoff (Consultancy Framework) regarding the A466.  A written reply was provided and the opportunity to expand on the response was offered.  It was explained that there were ongoing problems on the A466 and Parsons Brinckerhoff consultancy was used for various works from 2012.  In 2016 there was a failure of the carriageway which happened after the consultancy framework had ended and was replaced by the National Procurement Service.  The work was over the direct award of up to £25,000 and it was decided, for continuity, to keep working with Parsons Brinckerhoff for the realignment work.  The exemption form was applied for, completed and signed but was not sent back by oversight. A Committee Member appreciated the urgent nature of the work but added that where exemption to CPR is involved, it is necessary that processes are completed immediately. The Committee accepted the explanation of an oversight.  

3)    Roadworks in Abergavenny: The Group Engineer, Highway & Flood Management attended to provide an explanation for the work related to the Public Realm Works in Abergavenny. The exemption was for the contract for Phase 1 to be extended for Phase 2 decided because of the quality, specialism and nature of the work.  Alan Griffiths (Contractors) Ltd was the clear winner of the initial tender process for Phase 1 and it was felt there were benefits in extending the contract, especially because of their early involvement. By oversight, and with apologies, a sequential number was not applied for before signatories were obtained. To resolve the position, training from Internal Audit has been arranged to improve CPR exemption processes in the future. 

A Member commented that inviting managers to Audit Committee provided a timely reminder for Officers to sharpen CPR processes.  

A query was raised if there was a means to short circuit the CPR if there were circumstances such as the good performance on Phase 1 and when it is clear who will win the Phase 2 tender.  It was responded that clear evidence of lack of competition is needed in the public procurement arena.  Additionally, it was observed that the wording of contracts can be tailored where there are several phases or to recognise performance.  The Officer explained that, in this case, there was no certainty of grant funding for Phase 2.  Had this been the case, the contract would have been worded accordingly.

The Local Member for the Abergavenny Public Realm commented that the people of Abergavenny were delighted with the work.

·         Review of Reserves: this information was circulated on 23^rd January 2018

·         Joint Progress Report: At the last meeting it was asked if there is a national system of three links for data security. The Head of Digital and Agile responded that back up discs are kept in the SRS and reassured that they are duplicates of those sent across the network to the Civic Centre in Pontypool daily.  The duplicates are only kept in the SRS for convenience in the event of the need to restore data. In the future the back- up will be stored in the cloud. 

It was confirmed that there is only one SRS with secure data storage capacity to a high level in Wales.  Confidence was expressed that our information is secure.  A Member recalled a letter from the minister about the creation of 3 centres similar to SRS but it was thought this had not happened.

·         Forward Work Programme: It was explained that the Borough Theatre will transfer back to the authority at the end of March and will operate in house with some assistance from the local community.  The Chief Auditor will report in summary to Audit committee in due course.

·         Events: see item 15 at end