Verbal report

Further to minute 30 (19 September 2012), the Deputy Director CYPD and Assistant Chief Executive referred to the review that had been undertaken by the District Auditor of work carried out by Internal Audit in relation to gifts and hospitality and conflicts of interest. The Review had found that although the Council’s procedures were generally adequate, testing had identified a high instance of non-compliance, with poor or incomplete recording of both gifts and hospitality and declarations of conflicts of interest. To address the weaknesses in compliance with its procedures and to secure improvements, the Council had put in place an Action Plan to ensure the implementation of all of the recommendations contained within the District Auditor’s report

The Assistant Chief Executive commented also that Members had questioned whether any instances of non-compliance had merited disciplinary action. Investigations had found no evidence of any wrongdoing, other than a failure to make appropriate declarations. All Council staff had now been provided with clear guidance in relation to their obligations concerning gifts and hospitality and conflicts of interest and he indicated that revised policies were being consulted upon, with a view to them being presented to the Employment and Appointments Committee for approval, in February 2013.

Resolved – That the report be noted.

The Chair advised the Committee that he had approved consideration of this matter as an item of urgent business in view of the need for its consideration prior to the next scheduled meeting.

The District Auditor reported that as part of the assessment of the Council’s arrangements to ensure value for money, a review had been undertaken of work carried out by Internal Audit in relation to gifts and hospitality and conflicts of interest. He set out the audit approach, which included a review of internal audit reports and testing of 13 personal files (including a sample of Chief Officer’s files) for compliance with procedures. He indicated that although the Council’s procedures were found to be generally adequate, testing had identified a high instance of non-compliance, with poor or incomplete recording of both gifts and hospitality and declarations of conflicts of interest. His report highlighted the key issues from the review and contained a number of recommendations that challenged the Council to address the weaknesses in compliance with its procedures.

The Deputy Chief Executive commented that, whilst Acting Chief Executive, he had worked diligently with the Audit Commission to conclude the review and had issued an instruction to all staff to ensure compliance. This had secured improvements and had highlighted areas where the Council’s procedures could be improved upon, particularly with regard to differences between the arrangements within the Council and the Merseyside Pension Fund. It was acknowledged that the arrangements for the Fund were agreed by the Pensions Committee but there was a need to ensure that the Council procedures did also incorporate the Fund. An action plan had been agreed to address all of the recommendations contained within the report.

Members referred to the potential for damage to the Council’s reputation and highlighted the need for clarity in the guidance issued to officers. In response to questions as to whether any instances merited disciplinary action, the Deputy Chief Executive stated that an investigation was ongoing in relation to the matters highlighted within the District Auditor’s report.

Resolved –

(1)  That the report be noted and the action plan to address the audit recommendations, be endorsed.

(2)  That the outcome of the investigation into matters contained within the report be presented to the next meeting of the Committee.

(3)  That the proposal for a single policy for the whole of the organisation be supported.