Agenda item
AUDIT COMMISSION ANNUAL AUDIT AND INSPECTION LETTER 2007/2008 - PRESENTATION BY AUDIT COMMISSION
The Annual letter produced by the Audit Commission summarises the key issues arising from the Council’s audit and inspection Programme for 2007/2008. The Audit Commission Comprehensive Area Assessment Lead and Relationship Manager, Mr Adewale Kadiri will be present at the meeting to present the Annual Letter and to answer any questions Members may have.
Decision:
Resolved
That the Audit Commission Annual Audit and Inspection Letter 2007/08, and presentation by the Audit Commission, be noted.
Action by:
CORPORATE DIRECTOR RESOURCES (C. NAYLOR)
Service Head, Risk Management, Resources (M. Jani)
Minutes:
Please note that the order of business was varied by resolution of the Cabinet earlier in the proceedings (See Agenda Item 3.0 “Unrestricted Minutes” – Variation to Order of Business) in order to allow this item to be considered following agenda item 3.0 “Unrestricted Minutes” and prior to the deputation and related business. However for ease of reference the deliberations of the Cabinet, and subsequent decisions taken, are set out below in the order detailed in the agenda.
Mr Adewale Kadiri, the Audit Commission Comprehensive Area Assessment Lead and Relationship Manager, in introducing the Annual Audit and Inspection Letter, at the request of the Chair, summarised the key points set out therein as follows:
· The report provided an overall summary of the Audit Commission’s assessment of the Council, drawing on the most recent Comprehensive Performance Assessment (CPA), the findings and conclusions from the audit of the Council in 2007/08. and from any inspections undertaken by other public inspectorates and regulating agencies since the last Annual Audit and Inspection Letter.
· The Council had performed strongly over the year:
o It had been assessed as continuing to be four star in its current level of performance under the Comprehensive Performance Assessment and the Direction of Travel judgement was that it was “improving well”.
o It had been judged as “performing strongly” in its Corporate Assessment, the highest possible scoring.
o Ofsted had assessed the Council’s services for children and young people as level 4, the best possible score.
o The Commission for Social Care Inspection (CSCI) had given a rating of three stars for the Council’s services for adult social care, the highest possible score.
o It had maintained an overall score of three for the “Use of Resources” element of the CPA scorecard, out of a possible score of four.
· In relation to the audit of the Council in 2007/8 the Council’s auditor had given an unqualified opinion on the 2007/08 accounts. However although the quality of working papers supporting the financial statements had improved a number of significant but not material errors had been identified.
· The inspection had identified one or two areas where the Council needed to build on recent progress with further work and improved performance, such as waste management, waste recycling and achieving the Decent Homes Standard.
A discussion followed which focused on the following points:-
· Considered that although the Audit Commission comments relating to housing provision, and in particular that of affordable homes were encouraging, however its assessment was based upon a snapshot between the end of stock transfer under Housing Choice and the establishment of Tower Hamlets Homes (also known as the ALMO). Progress towards the achievement of Decent Homes had been significant since this point and the work was ongoing, however the evidence of this needed to be more persuasively conveyed to the Audit Commission. The Council was also now in the process of investing a significant amount of its own resources in the achievement of Decent Homes, but much was also dependent on an imminent Government announcement of the availability of resources of a much greater scale for this.
· Welcomed the positive comments of the Audit Commission in relation to the Council’s partnership working to achieve Community Safety.
· Considered that the Audit Commission comments and assessment in relation to recycling performance were a backward look and did not reflect the significant improvement since this period. The proportion of waste recycling by the Authority had almost reached 25% in March 2009 whereas in 2006 it had been 7%. Hope was expressed that the new Comprehensive Assessment Assessment regime would be more reflective of true performance.
· Noted that significant work had been undertaken by the Corporate Director Resources and his team to improve financial reporting and in particular quality assessment work, and that the District Auditor had expressed some confidence that a more favourable assessment was probable in relation to the Authority’s 2008/09 accounts.
Clarification was sought by Cabinet members, and given by both Mr Adewale Kadiri and Mr Jon Hayes, District Auditor, in relation to a number of points including:
· Areas of the Council’s performance which did not compare favourably with the direction of travel of other authorities.
· With regard to the score of 2 out of 4 for the “Financial Reporting” element of the Use of Resources assessments: areas of weakness identified and how performance could be improved.
· Areas of notable practice in other Council’s which the Authority could examine with a view to driving forward performance.
The Chair thanked Mr Kadiri and Mr Hayes for their presentation, and then Moved and it was:-
Resolved
That the Audit Commission Annual Audit and Inspection Letter 2007/08, and presentation by the Audit Commission, be noted.
Supporting documents: