Agenda Item No. 8
THE VALE OF GLAMORGAN COUNCIL
DEMOCRATIC SERVICES COMMITTEE: 8TH OCTOBER, 2014
REFERENCE FROM AUDIT COMMITTEE: 7TH JULY, 2014
"166 CONTRACT MONITORING (MD) -
Committee received the Council’s External Auditor, Grant Thornton UK LLP report on the review of Contract Monitoring arrangements.
The Annual Governance Statement, published in September 2013 highlighted key control issues that had been identified as part of the work undertaken by Internal Audit. In particular, there were concerns relating to the lack of contractual arrangements within the Waste Management Service and also to the adequacy and effectiveness of the financial and quality monitoring arrangements surrounding partnership arrangements between the Council and the Leisure Centres service providers.
Following on from discussions with the Managing Director, the Council’s External Auditors were commissioned to independently examine the key control issues highlighted.
This report summarised the External Auditors overall assessment as to whether or not the Council had effective arrangements in place to monitor the performance of contracts.
The External Auditors report was attached at Appendix A to the report. The review found that there was no performance management regime which formally and systematically tested the extent to which the contracts examined were being monitored.
Four proposals for improvement had been identified and a response from the Director was being sought.
Of particular importance, Committee noted comments of the External Auditor (on page 11 of the report) regarding the level of scrutiny of questions that had been asked by Scrutiny members when discussing Leisure Centre Services with the contractor.
It was the view of the Committee that the comments of the External Auditor had highlighted a training deficiency on the part of Members and the view was expressed that Democratic Services Committee, as the Committee responsible for overseeing the Council’s approach of Member Development, be informed of the view of the Audit Committee.
Having considered the report, it was
(1) T H A T the content of the report be noted.
(2) T H A T Democratic Services Committee be advised of the concerns of the Audit Committee with regard to the training gap identified.
Reasons for decisions
(1) To facilitate monitoring of the audit function.
(2) To raise the level of scrutiny within the Council."
Attached as Appendix - Report to Audit Committee - 7th July, 2014