6 June 01 AWP

COMHAIRLE NAN EILEAN SIAR

AUDIT WORKING PARTY

Minute of Meeting held in the Council Offices, Stornoway, on Wednesday 6 June 2001 at 2.00 pm

PRESENT

Mr Roderick J Murray (Chairman)

Mr Donald Maclean

Mr Angus Nicolson

Mr Norman L Macdonald

Mr Philip McLean

APOLOGIES

Mrs Mary Bremner

Mr Norman A Macdonald

MINUTES

Audit Working Party

23

The Minute of Meeting of 7 March 2001 was approved.

EXTERNAL AUDIT

Action Plan and Strategic Overview

2000-01

24

The Working Party considered a Report by Messrs KPMG, the Comhairle's External Auditors, providing the Comhairle with an overview of the strategy and plan for the 2000-01 audit of the Comhairle.

It was agreed to note the Report.

Review of Internal Audit Arrangements

25

The Working Party considered a letter from KPMG, the Comhairle's External Auditors, regarding a review of internal audit arrangements. It was indicated that of the fifteen statements of good practice on which the review was based, the Comhairle's Internal Audit Division had been assessed as meeting good practice in all fifteen areas.

It was agreed to note the Report and to record the Working Party's appreciation of the Internal Audit Section.

Progress Report

by Director of Finance

26

With a reference to Item 2 of the Minute of Meeting of 7 March 2001, the Director of Finance submitted a Report summarising internal audit activity within the Comhairle for the period 1 March 2001 to 31 May 2001, and setting out progress against the Internal Audit Plan for 20001/02.

It was agreed that:

(1) major issues be flagged up in the recommendations of audit reports with progress reported to each meeting of the Working Party and monthly reporting to the Chief Executive; and

(2) the Working Party note the Report.

Completed Review: Information Technology Strategy

27

Messrs PricewaterhouseCoopers submitted an Internal Audit Review of the Comhairle's Information Technology Strategy, together with an assessment of the internal controls in operation.

The Working Party agreed to recommend that the Chairman be invited to meetings of the IT User Group and noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: Community Education: Payment of Grants

28

The Director of Finance submitted an Internal Audit Review of the Comhairle's Community Education Payment of Grants, together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: Right to Buy - House Sales

29

The Director of Finance submitted an Internal Audit Review of the Comhairle's Right to Buy - House Sales procedures. together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: Management Information and Budgetary Control Systems

30

The Director of Finance submitted an Internal Audit Review of the Comhairle's Management Information and Budgetary Control Systems, together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: Faire Community Alarm System

31

The Director of Finance submitted an Internal Audit Review of the Comhairle's Faire Community Alarm System, together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: National Non-Domestic Rates (NNDR)

32

The Director of Finance submitted an Internal Audit Review of the Comhairle's National Non Domestic Rates procedures, together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Completed Review: End of Year Cut Off Procedures - Building DLO

33

Messrs PricewaterhouseCoopers submitted an Internal Audit Review of the Comhairle's End of Year Cut Off Procedures for the Building DLO, together with an assessment of the internal controls in operation.

The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Mr Roderick J Murray, having declared an interest, withdrew from the meeting during discussion of the following Item.

It was agreed that Mr Norman L Macdonald chair the meeting during discussion of this Item.

Completed Review: Investigation: Alleged Theft of Jewellery from a Residential Home Care Client

34

The Director of Finance submitted a Report of an Internal Audit investigation into allegations of theft of jewellery from a residential home care client. The report outlined the allegations made and detailed the findings of the investigation. It was noted that action should be taken to ensure that staff in residential homes were made aware of procedures in respect of residents' property.

It was noted that the recommendations of the review had been accepted.

Completed Review: Homelessness Procedures

35

The Director of Finance submitted a Report of an Internal Audit investigation into the Comhairle's Homelessness Procedures, together with an assessment of the internal controls in operation.

It was noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.

Follow Up Reports on Internal Audit Reviews

36

The Director of Finance submitted follow-up reports on Internal Audit Review previously submitted to the Working Party outlining progress on action outstanding in the following areas:

(a) Treasury Management

(b) Council Tax System and Associated Controls

(c) Air Transport Subsidies

(d) Higher School Bursaries

(e) Sundry Debtors

(f) Creditors' System

(g) Fixed Penalties and Court Fines

(h) Car Loans and Leasing

(i) Library

(j) Social Work Grants to External Organisations.

___

It was agreed to note the Report.

PRESENT	Mr Roderick J Murray (Chairman)
	Mr Donald Maclean
	Mr Angus Nicolson
	Mr Norman L Macdonald
	Mr Philip McLean

APOLOGIES	Mrs Mary Bremner
	Mr Norman A Macdonald

		MINUTES
Audit Working Party	23	The Minute of Meeting of 7 March 2001 was approved.
		EXTERNAL AUDIT
Action Plan and Strategic Overview 2000-01	24	The Working Party considered a Report by Messrs KPMG, the Comhairle's External Auditors, providing the Comhairle with an overview of the strategy and plan for the 2000-01 audit of the Comhairle. It was agreed to note the Report.
Review of Internal Audit Arrangements	25	The Working Party considered a letter from KPMG, the Comhairle's External Auditors, regarding a review of internal audit arrangements. It was indicated that of the fifteen statements of good practice on which the review was based, the Comhairle's Internal Audit Division had been assessed as meeting good practice in all fifteen areas.
		It was agreed to note the Report and to record the Working Party's appreciation of the Internal Audit Section.
Progress Report by Director of Finance	26	With a reference to Item 2 of the Minute of Meeting of 7 March 2001, the Director of Finance submitted a Report summarising internal audit activity within the Comhairle for the period 1 March 2001 to 31 May 2001, and setting out progress against the Internal Audit Plan for 20001/02. It was agreed that: (1) major issues be flagged up in the recommendations of audit reports with progress reported to each meeting of the Working Party and monthly reporting to the Chief Executive; and (2) the Working Party note the Report.
Completed Review: Information Technology Strategy	27	Messrs PricewaterhouseCoopers submitted an Internal Audit Review of the Comhairle's Information Technology Strategy, together with an assessment of the internal controls in operation. The Working Party agreed to recommend that the Chairman be invited to meetings of the IT User Group and noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: Community Education: Payment of Grants	28	The Director of Finance submitted an Internal Audit Review of the Comhairle's Community Education Payment of Grants, together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: Right to Buy - House Sales	29	The Director of Finance submitted an Internal Audit Review of the Comhairle's Right to Buy - House Sales procedures. together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: Management Information and Budgetary Control Systems	30	The Director of Finance submitted an Internal Audit Review of the Comhairle's Management Information and Budgetary Control Systems, together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: Faire Community Alarm System	31	The Director of Finance submitted an Internal Audit Review of the Comhairle's Faire Community Alarm System, together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: National Non-Domestic Rates (NNDR)	32	The Director of Finance submitted an Internal Audit Review of the Comhairle's National Non Domestic Rates procedures, together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Completed Review: End of Year Cut Off Procedures - Building DLO	33	Messrs PricewaterhouseCoopers submitted an Internal Audit Review of the Comhairle's End of Year Cut Off Procedures for the Building DLO, together with an assessment of the internal controls in operation. The Working Party noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
		Mr Roderick J Murray, having declared an interest, withdrew from the meeting during discussion of the following Item. It was agreed that Mr Norman L Macdonald chair the meeting during discussion of this Item.
Completed Review: Investigation: Alleged Theft of Jewellery from a Residential Home Care Client	34	The Director of Finance submitted a Report of an Internal Audit investigation into allegations of theft of jewellery from a residential home care client. The report outlined the allegations made and detailed the findings of the investigation. It was noted that action should be taken to ensure that staff in residential homes were made aware of procedures in respect of residents' property. It was noted that the recommendations of the review had been accepted.
Completed Review: Homelessness Procedures	35	The Director of Finance submitted a Report of an Internal Audit investigation into the Comhairle's Homelessness Procedures, together with an assessment of the internal controls in operation. It was noted that the recommendations of the review had been agreed and had been or were being implemented by the relevant Head of Service.
Follow Up Reports on Internal Audit Reviews	36	The Director of Finance submitted follow-up reports on Internal Audit Review previously submitted to the Working Party outlining progress on action outstanding in the following areas: (a) Treasury Management (b) Council Tax System and Associated Controls (c) Air Transport Subsidies (d) Higher School Bursaries (e) Sundry Debtors (f) Creditors' System (g) Fixed Penalties and Court Fines (h) Car Loans and Leasing (i) Library (j) Social Work Grants to External Organisations.
___		It was agreed to note the Report.