The Chair invited David Wilkinson of Ernst & Young to introduce the report before giving Members the opportunity to comment and ask questions.

Asked why there was no report from officers Paul Evans explained that the report was independent of the Council.  He also confirmed that this was the first Committee at which the report had been considered as it was felt appropriate for the matter to be dealt with by General Purposes as the Council’s audit committee.  The Chair added that he had not wished it to appear that the Committee was steered by officers in any way.  Ged Curran explained that he was present in place of the Director of Corporate Services to avoid any suggestion of influencing Members.

Rob Hampson and Julian Stanford, who had conducted the review, were then introduced and gave details of their backgrounds in fraud investigation.  David Wilkinson gave an overview of the review and its findings, drawing attention to the fact that it had not identified any corruption, malpractice or unlawful expenditure but that there were a number of issues to be addressed and these were reflected in the recommendations.

The Chair then opened the meeting to questions.

Councillor Janice Howard asked why the review took so long to complete and was advised that the first six steps were largely finished by mid December.  The decision was then taken to conduct interviews which took place in January.  The interviewees were given an opportunity to comment and responses were received by 5 February.  The draft review was produced and a further right of reply given.  Responses to this were received by 24 February and the letter issued on 27 February.

Councillor Rod Scott asked whether Human Resources had not addressed this situation because of lack of resources, whether payment through service companies was lawful in terms of National Insurance and tax payments, whether the external auditors had a role in looking at such appointments and had the Audit Commission done so previously and whether disciplinary action would follow.

Ged Curran stated that the significant weakness identified by the review was the absence of a system to trigger action in respect of long term interim and consultant appointments.  Dean Shoesmith added that currently HR monitor interim and agency staff appointments.  He was happy to include consultants and to have a formal process to demonstrate a business case for a continued placement, as is the case for agency workers. He confirmed that HR would flag up any anomalies if aware of them whether or not there was a procedure in place.

Paul Evans advised that payment through service companies was the industry standard at one time; he did not consider them to be unlawful.

David Wilkinson said that EY’s approach was driven by key areas of risk and materiality; the appointment of contractors and interims was unlikely to fall within these areas.  He was not aware of any concerns being flagged up by the previous external auditor.

The Chair asked the Committee to consider at a  ...  view the full minutes text for item 4.

Following an introduction from Paul King Dean Shoesmith confirmed that the causes for the delay in the teachers’ superannuation return had been identified and contact details amended to ensure there was no repetition.

The report was NOTED.

Simon Williams introduced the report and in response to questions advised that it was anticipated that the guidlelines would be ready by September and that the Head of Commercial Services was responsible for overseeing the strategy. Most activity was undertaken by departments with the HCS’s team offering support where necessary.

Simon Williams undertook to arrange for an appendix showing the structure to be sent to Members.

The report was NOTED.

Tim Revell introduced the report.

Councillor John Dehaney opposed the proposed use of St Barnabas Church in Graveney Ward as he did not consider it to be appropriate use of a church and rejected the statement in paragraph 4.2 that he had no objection to the proposal.  Officers were asked to investigate potential alternatives, such as the North East Mitcham Community Centre, but agreed to recommend the church if no suitable alternative could be found, noting that other churches are used as polling stations.

Councillor Ian Munn MOVED that the proposed Cricket Green ward change should be rejected and stated that the scout hall does not have proper disabled access and that there would be parking and traffic congestion at the school’s opening and closing times.  On being put to the vote the motion was lost with 2 in favour, 3 against and the Chair not voting.

            RESOLVED: That the Committee

(1)  asks officers to seek an alternative site for the Graveney ward polling place but in the absence of a suitable location agrees to recommend to Council the site proposed in the report; and

(2)  recommends that Council approve the replacement polling places in Graveney, Merton Park and St Helier wards as detailed in the report.