Derry City and Strabane District Council

Transcription

1 Derry City and Strabane District Council Open Minutes of Assurance, Audit and Risk Committee held in the Council Chamber, Guildhall on Thursday 3 September 2015 at 4.00 pm. Present: - Councillors Duffy (Chair); Aldermen Devenney and Thompson, Councillors Donnelly, Fleming, Gallagher, Hastings, D Kelly, P Kelly, McGinley, M McHugh, O Reilly and Robinson. Non-Members of Committee: - Councillors Carr and Hussey. In Attendance: - Health and Community Director (Ms K McFarland), Environment and Regeneration Director (Ms K Philips), City Solicitor (Mr P Kingston), Lead Assurance Officer, (Ms D McDonnell),) Internal Audit Manager (Mr J Harrigan), Insurance and Risk Manager (Ms A Begley), Corporate Health and Safety Officer (Ms O O Doherty) Independent Advisor (Mr T Jackson) and Administrative Assistant (Mrs M Doherty). AAR52/15 Notice and Summons for Meeting. The Lead Assurance Officer read the Notice and Summons for the Meeting. AAR53/15 Apologies Apologies for absence were received form Councillor J McKeever. AAR54/15 Declarations of Members Interest Open for Decision Alderman Devenney and Councillor McGinley declared an interest in relation to item 8 Internal Audit Reports. AAR55/15 Deputations There were no deputations. AAR56/15 Chairpersons Business

2 2 The Chair took the opportunity to welcome Councillor Robinson who was replacing Councillor Quigley on the committee and Mr Tony Jackson the newly appointed independent advisor to the Councils Assurance, Audit and Risk Committee. She advised that Mr Jackson had a wealth of experience having previously serviced in a similar role for the previous Derry City Council and Limavady Borough Council. At the outset of the Meeting an Independent Member of Council called for a suspension of Standing Orders, he advised Members of the vigil to be held outside the Guildhall at 5.00pm in support of the refugees fleeing war torn countries in the Middle East and Africa. He felt it was important for Members to show their support for the free movement of people and offered his condolences to those who had lost dear ones in as a result of these circumstances. He highlighted the recent press coverage of the death of a child trying to flee Syria, which he felt was a heart breaking image of the atrocity. The Chair concurred with the sentiments of the Independent Member of Council; she too found the images devastating. It was agreed if required the meeting would be suspended to allow Members to attend the vigil at 5.00pm. AAR58/15 Confirmation of the Open Minutes of the Assurance, Audit and Risk Committee held on Monday 29 June The above minutes were confirmed. Open for Information AAR58/15 Internal Audit Reports The Internal Audit Manager presented the above report which had been previously circulated to Members. The report updated Members on the Internal Audit Work carried out within Derry City and Strabane District and CODA Limited in the period June 2015 to September An Independent Member of Council referred to the fact that that the initial complaint was raised under the Councils Whistleblowing Policy,

3 3 and he queried if the complainant had been satisfied that s the complaints had been processed as per Council policy. The Lead Assurance Officer advised that the initial complaint was made to the NIAO who informed the Interim Chief Executive of Derry City Council of a number of allegations made by individuals in relation to procurement. On the direction of the Audit Office, an investigation into these allegations has been carried out and the completed investigation report was passed to the NIAO in June. It was her understanding that the NIAO was liaising with the complainant and were awaiting the completion of the recently commissioned external review. Another Independent Member of Council highlighted his concerns that the Systems Report being presented had raised a significant number of issues. He noted that 15 indicators of fraud had been identified in the report which he felt were very serious. He maintained that Council needs to ensure that any other breaches are identified, investigated and all recommendations implemented. The Lead Assurance Officer advised Members that the investigation report on the initial complaints is currently with NIAO, she stated that the systems assessed the adequacy of the systems that are in place. As part of this process weaknesses in the systems have been identified recommendations for improvement have been made and Management responses have been agreed to ensure that the recommendations are implemented which will result in improvements in the overall control environment going forward. A Member of the Sinn Fein grouping commented that the initial audit report dealt with sixty complaints of which only four were upheld. He thanked the audit team for a further detailed systems report; his party welcomed the investigation carried out into the systems and the recommendations that senior management will implement going forward. An Independent Member of Council also recorded his concerns at the twenty two areas identified for improvement and expressed his disappointment in the weaknesses identified.

4 4 The Lead Assurance Officer to ensure clarity, provided the following synopsis to Members that the investigation report completed in June is currently with the NIAO, this report dealt with the issues raised by complainants in relation to procurement practices of Derry City Council. The Systems Report has went further and carried out a detailed audit of the systems and prcesses in place. The Audit team have provided Members with all the information that is currently available to them and Members will be kept informed. AAR59/15 Local Governments Auditors Report previously circulated to Members. The report advised Members of the contents of the Local Government Auditor s report 2015 which was published on the 23 June AAR60/15 Annual Audit Report 2014/2015 The Internal Audit Manager presented the above report which had been previously circulated to Members. The report sought Members comments and approval on Derry City Council s Annual Audit Opinion for 2014/2015 and the City of Derry Airport s Annual Audit Opinion. that Members approve the Annual Audit Reports for Derry City Council and CODA Operations Ltd.

5 5 AAR61/15 Allocation of Funding previously circulated to Members. The report provided Members with an update in relation to the allocation of funding to the Museum of Free Derry by the Business and Culture Committee in May An Independent Member of Council stated that this report was as a result of concerns that were raised at the June Assurance, Audit and Risk Meeting, however he maintained that the subsequent minutes did not list the concerns by raised by him. He clarified that he had no grievance with the third party receiving this money, but he did have concerns as to how it was allocated. He reiterated the following concerns: Why was the business case not presented to Members for consideration? Is it good practice to award funding when there is no available budget? Council has not followed proper procedure as no open call was initiated. There is a need to review and amend the process in light of this incident. The Lead Assurance Officer advised Members that concerns were raised at the June meeting in relation to the allocation of funding valuing 175,000; as a result this report was now being presented to Members of this Committee. The Initial report requesting and approving the funding, was presented to the Business and Culture Committee at the May 2015 meeting and was subsequently ratified at the May Council Meeting. recommendation was approved. Although no competitive process had taken place, Council felt it was an important project to support as no other tourist attraction in the region was attracting funding of 2million. She informed Members that it had been proposed that 20k be provided from the business budget for 2015/2016 and the remaining 155k was to be considered as part of the rates for 2016/2017.

6 6 The Chair of the Committee stressed that this allocation of funding had been approved at a previous meeting were Members had the opportunity to raise any issues. The Independent advisor to the Assurance, Audit and Risk Committee stated that he understood the concerns being raised by Members, however advised that this committee had acted appropriately. He concurred that the issue of that allocation of this funding should have been dealt with at the Business and Culture May meeting or the Council May Meeting. He stated that this Committee has looked at the issue raised and the risk to Council, have identified means to minimise the risk to Council and have detailed recommendations going forward. that Members endorse the following procedure going forward:

7 7 All regular 3 rd party payments will only be made following the completion of a competitive process. If significant signature 3 rd party/external projects request funding outside of a competitive process the funding will only be considered if: i. The objectives of the project meet the objectives of the relevant Council Strategy; ii. iii. If Council funding is available; and If the project already has secured significant external funding. If the above conditions are met and funding is to be provided Council approval must be obtained. AAR62/15 Insurance Implications arising from the Local Government (Indemnities for Members and Officers) (Amendment) Order (NI) 2014 The Insurance and Risk Manager presented the above report which had been previously circulated to Members. The report advised Members of the indemnity available to Members against allegations of breaches of the Councillors Code of Conduct under the Local Government (Indemnities for Members and Officers) (Amendment) Order (NI) The report also advised Members of the Insurance which has been put in place to provide cover for legal expenses which may be incurred in defending allegations of breaches of the Code.

8 8 AAR63/15 Prompt Payment Performance previously circulated to Members. The report advised Members of Council s prompt payment performance for the first quarter of 2015/2016. AAR64/15 Risk Review Processes and Update on Council Risk Registers The Insurance and Risk Manager presented the above report which had been previously circulated to Members. The report advised Members of the ongoing risk review process and provided Members with an update on the Risk Register reviews completed during the period from April to July AAR65/15 Performance Improvement Audit and Assessments previously circulated to Members. The report advised Members of correspondence from the Northern Ireland Audit Office in relation to the Performance Improvement Audit Assessments of Derry City and Strabane District Council for 2015.

9 9 AAR66/15 Training previously circulated to Members. The report updated Members in relation to the provision of training. that Officers proceed to organise training for all Members of the Assurance, Audit and Risk Committee for the morning of the 6 October in the Council Offices, Derry. AAR67/15 External Review previously circulated to Members. The report updated Members on the external review in relation to the ongoing investigation surrounding stewarding/security. In response to a query raised by a non-committee Member of the UUP grouping, the Lead Assurance officer advised that the cost of 5,500 for the external review is being looked at by the Lead Finance Officer and saving from budgets would have to be identified to cover the cost of the review. She also advised Members that contact has been made with the Northern Ireland Office to inform them that stewarding and security is required for the Banks of the Foyle Halloween Carnival, Halloween celebrations in Strabane, Christmas Light Switch On s in Derry and Strabane. Following the completion of the systems report and the implementation of the associated recommendations the NIAO accept that business must continue. Officers are working with the procurement and audit sections to ensure the tender document is in line with all recommendations made through the recent audit process. Members will be advised of these processes at the forthcoming Business and Culture meeting to be held on the 8 September.

10 10 AAR68/15 OHSAS Health, Safety and Wellbeing Implementation Report The Corporate Health and Safety Officer presented the above report which had been previously circulated to Members. The report updated Members on the current implementation of the OHSAS Health, Safety and Wellbeing system. Chairperson: Date: