Audit Commission - Annual Governance Report
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
The Director of Finance presented the Cabinet with the Annual Governance Report. The report summarised the findings from the 2010/11 audit which was substantially complete. It included the messages arising from the audit of the financial statements and the results of the work the District Auditor had undertaken to assess the Council’s arrangements to secure value for money in its use of resources.
The Cabinet noted that the District Auditor had issued a qualified Value for Money statement. The Cabinet also noted that at page 21 of the Director’s report the District Auditor had stated in respect of the HESPE contract, which had been in operation for the last two and a half years, the Council was not able to provide information on activity and performance to determine whether it was receiving better value for the money spent. The District Auditor intended to bring a detailed report concerning this to the next meeting of the Audit and Risk Management Committee on 29 November 2011.
Councillor S Foulkes moved the following Motion which was seconded by Councillor P Davies and carried unanimously.
(1) Cabinet thanks the Auditor for preparing the report and expresses its grave concern that the Auditor found it necessary to qualify the Value for Money statement;
(2) Cabinet believes that the failings in Corporate Governance identified in the Anna Klonowski report are a major factor behind this qualification and recognises that the special Cabinet Committee on Corporate Governance will be seeking to redress this;
(3) Cabinet believes however that specific attention should be paid to the issues drawn out as a reason for qualification and asks the Chief Executive to launch an immediate investigation into how these failings occurred and how they can be remedied for the future, and report back to Cabinet as soon as his investigation is completed;
(4) in the light of its implications for the letting of contracts across the Council, Cabinet expresses particular concern about the qualification arising from the Council’s inability to determine Value for Money on the HESPE contract and the statement that “the Council is not able to provide information on activity and performance to determine whether it is securing better value for the money spent.”; and
(5) Cabinet asks the Chief Executive to address this matter urgently.
Publication date: 19/10/2011
Date of decision: 13/10/2011
Decided at meeting: 13/10/2011 - Cabinet
Effective from: 27/10/2011