Agenda and minutes

The Chair ruled and the Committee agreed to vary the order of the business to facilitate the commitments of officers in attendance.  This minute reflects the order in which discussions took place.

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The Chair welcomed everyone to the meeting. 

There were no apologies for absence intimated.

Councillor Jim Findlay declared a non-financial interest to agenda item 11 (Scrutiny of Business Case Review (Rothesay Pavilion), by virtue of his Council appointment to the Board of Rothesay Pavilion Charity.  He claimed the benefit of the dispensation of the Standard’s Commission’s Guidance and Dispensation Note to enable him to speak and vote.

Minutes of the Audit and Scrutiny Committee as held on Friday, 24 January 2020

The minute of the previous meeting of the Audit and Scrutiny Committee held on Friday, 24 January 2020 was approved as an accurate record. 

Report by Chief Internal Auditor

The Committee gave consideration to a report providing an update on Internal Audit activity during Quarter 4 against the following areas:

·         2019/20 Audit Plan progress

·         Additional audit team activity

·         Continuous monitoring

·         Internal Audit development plan

·         Performance indicators

Information was provided in respect of the progress made on the 2019/20 scrutiny plan, and a verbal update was provided by both the Chair and Vice Chair in relation to the progress of the Economic Strategy and Strategic Housing Fund scrutiny reviews.  The Chief Internal Auditor highlighted the need to consider delaying the creation of the 2020/21 scrutiny plan to allow completion of the current plan. 

Decision:

The Audit and Scrutiny Committee agreed:

1.    to note and endorse the contents of the report; and

2.    to approve the delay of the 2020/21 scrutiny plan until a future meeting. 

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.)

Report by Chief Internal Auditor

The Committee gave consideration to a report providing an update on all open actions as at 31 December 2019 including information on actions where the agreed implementation date has been rescheduled. 

Decision:

The Audit and Scrutiny Committee agreed to endorse the contents of the report.

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.) 

Report by Chief Internal Auditor

The Audit and Scrutiny Committee gave consideration to a report containing the action plans in relation to the following 5 audits

·         Grounds Maintenance

·         Fleet Management

·         Information Asset Register

·         Pupil Equity Fund

·         Live Argyll Performance Reporting

Discussion took place in respect of the Grounds Maintenance audit, specifically in relation to sampling from across the Council’s four administrative areas and concerns that the data might not be representative of the current situation.  The Chief Internal Auditor agreed to investigate the findings of the sampling to ensure that the data was representative of the situation across the Council.

Decision:

The Audit and Scrutiny Committee agreed to endorse the summary report and detail within each individual report, subject to completion of investigations by the Chief Internal Auditor in respect of the Grounds Maintenance report.

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.) 

Report by Chief Internal Auditor

A report providing an outline on the proposed changes to the Internal Audit Charter and Internal Audit Manual was considered. 

Decision:

The Audit and Scrutiny Committee agreed:

1.    to approve the amended Internal Audit Charter, as outlined at Appendix 1 of the report; and

2.    to approve the amended Internal Audit Manual, as outlined at Appendix 2 of the report.

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.) 

Report by Chief Internal Auditor

The Audit and Scrutiny Committee gave consideration to a report introducing the 2020/21 Internal Audit Annual Plan. 

Decision:

The Audit and Scrutiny Committee agreed to approve the Internal Audit Annual Plan 2020/21.

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.)   

Report by Audit Scotland

The Committee heard from John Cornett of Audit Scotland, who outlined the External Audit Annual Audit Plan 2019/20, which included an overview of the planned scope and timing of their audit.  It was noted that while Audit Scotland were working to the timescales outlined within the Plan, their ability to meet deadlines could be compromised due to ongoing measures to stop the spread of the COVID-19 virus.   

Decision:

The Audit and Scrutiny Committee agreed to note the contents of the Annual Audit Plan 2019/20. 

(Ref:  Annual Audit Plan 2019/20, submitted) 

Report by Chief Internal Auditor

The Audit and Scrutiny Committee gave consideration to a report providing a summary of the lessons learned from scrutiny activity since the roll out of the new scrutiny approach which commenced in the summer of 2018. 

Decision:

The Audit and Scrutiny Committee:

1.    agreed to endorse the report;

2.    provided feedback on the ‘process’ learning points set out in paragraph 3.4 of the report;

3.    agreed to note the administrative learning points in paragraph 3.5 of the report;

4.    provided further feedback on the scrutiny process; and

5.    agreed to note that the Chief Internal Auditor (CIA) will amend the Scrutiny Framework and Scrutiny Manual to reflect the changes set out in the report and bring it back to a future meeting of the Audit and Scrutiny Committee for approval. 

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.) 

Report by Chief Internal Auditor

Following a request at the previous meeting, that the Chief Internal Auditor carry out an initial scoping for a possible scrutiny topic relating to Rothesay Pavilion, the Committee gave consideration to a report providing the background and presenting an outline of an indicative scope and setting out some further factors for consideration. 

Decision:

The Audit and Scrutiny Committee:

1.    considered the indicative scope and objectives of a scrutiny review of the process followed to assess the Rothesay Pavilion business case;

2.    considered the factors highlighted which may reduce the capacity of the scrutiny process to be robust and well evidenced;

3.    considered an alternative area of focus relating to guidance on the award of external funding and review of future business cases;

4.    agreed that a review should be conducted on the pre-decision scrutiny of a business case with reference to the newly updated Following the Public Pound guidance and the work being carried out by the Asset Management Board, using as context the knowledge of what happened in Rothesay Pavilion; and

5.    agreed that this be included within the scope of the 2020/21 Scrutiny Plan. 

(Ref:  Report by Chief Internal Auditor, dated 17 March 2020, submitted.) 

Report by Section 95 Officer

The Committee gave consideration to a report presenting the main issues raised in the recent Local Government Financial Overview 2018/19 report by the Accounts Commission and highlighting relevant matters to the Committee. 

Discussion took place in respect of the questions for councillors to consider, specifically in relation to the Transformation Board.  The Finance Manager agreed to amend the wording of the answers provided to the questions to reflect the information provided.  

Decision:

The Audit and Scrutiny Committee agreed:

1.    to note the contents of the Accounts Commission report; and

2.    to approve the officer assessment of where the Council is placed against matters raised within Appendix 1 of the report, subject to the amendments required in relation to the Transformation Board.

(Ref:  Report by Section 95 Officer, dated 17 March 2020, submitted.)

Report by Section 95 Officer

A report advising of the plans in place for financial year end 31 March 2020 and the preparation of the Council’s Unaudited Annual Accounts for 2019-20 was considered. 

Decision:

The Audit and Scrutiny Committee agreed to note that plans are in place to prepare the Council’s Annual Accounts consistent with the Accounting Code of Practice and submit them to Council prior to 30 June 2020 in line with the Scottish Government’s requirements. 

(Ref:  Report by Section 95 Officer, dated 17 March 2020, submitted.) 

Report by Section 95 Officer

The Committee gave consideration to a report outlining the arrangements for managing the Council’s treasury activities.

Decision:

The Audit and Scrutiny Committee agreed:

1.    to endorse the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within;

2.    to note the use of the statutory method for the repayment of loan fund advances prior to 1 April 2019 in respect of existing capital expenditure using a 5.1% annuity interest rate over an average period of 32 years.  For those loans fund advances outstanding at 1 April 2004 a repayment period of 14 years will be used;

3.    to note the use of the asset life method for the repayment of loan fund advances after 1 April 2019 using a 5.1% annuity interest rate, with the exception of spend to save schemes where the funding/income profile method could be used;

4.    to note the proposed asset repayment periods as detailed within section 2.6 of the Treasury Management Strategy Statement;  and

5.    to note the ability to continue to use countries with a sovereign rating of AA- and above, as recommended by Link Asset Services. 

(Ref:  Report by Section 95 Officer, dated 17 March 2020, submitted,) 

Report by Executive Director with responsibility for Legal and Regulatory Support

The Committee gave consideration to a report presenting the findings of a review of the common themes and areas of complaint from 2018/19 and 2019/20 to date.

Decision:

The Audit and Scrutiny Committee agreed to note the content of the report.

(Ref:  Report by Executive Director with responsibility for Legal and Regulatory Support, dated 17 March 2020, submitted.) 

Report by Executive Director with responsibility for Legal and Regulatory Support

Consideration was given to a report presenting the findings of a Traffic Regulation Order (TRO) and Community Engagement Review which had been progressed following the revocation of the Argyll and Bute Council (Off-Street Parking Places and Charges) (Isle of Mull) Order 2019 by the Oban, Lorn and the Isles Area Committee in September 2019.  The revocation arising from a potential legal challenge to the Order relating to the statutory compliance of the Council’s process in the establishment of, and process for, determining the Order.  The Procurement and Commissioning Manager circulated a summary of recommendations for ease of reference, which is appended to this Minute. 

Discussion took place in respect of the development of best practice in TROs, with Members expressing concern in relation to the suggestion that a similar approach be taken to the decision making process for planning applications and that consideration be given to utilising the Planning Protective Services and Licensing Committee to make decisions on TROs, with reports going to the relevant Area Committee for information.  Members advised that while they could see the benefit of dealing with TROs centrally, they felt that it is ultimately a local issue and the decision making power should remain with the Area Committee. 

Decision:

The Audit and Scrutiny Committee:

1.    agreed to the findings and recommendations set out in the report and summarised at Appendix 2 with the exception of the officer recommendation that the delegation to Area Committees should remain in terms of decision making on TROs and should not be passed to the PPSL Committee; and

2.    requested that the points raised during discussion are taken on board by officers and fed into the process to ensure that the concerns of the Committee are addressed.

(Ref:  Report by Executive Director with responsibility for Legal and Regulatory Support, dated 17 March 2020, submitted.)

In order to facilitate forward planning of reports to the Audit and Scrutiny Committee, Members considered the outline Audit and Scrutiny Committee workplan.

Decision:

The Audit and Scrutiny Committee agreed to note the outline workplan.

(Ref:  Audit and Scrutiny Committee Workplan, dated 17 March 2020, submitted.)