Issue - meetings

The Chief Executive to present a report which seeks approval to enter into a new contract for internal audit and counter fraud services for the period 2020-2030.

Resolved:  (i)      That approval be given to enter into a new 10 year contract with Veritau, with an option to extend for a further 5 years.

                   (ii)      That the outline service specification set out in Annex 1 to the report be approved.

Reason:     To provide a value for money internal audit and counter fraud function for the council.

At this point in the meeting Councillor Gillies and the S151 Officer left the room and the Deputy Leader took the Chair.

The Chief Executive and the Corporate Finance & Commercial Procurement Manager presented a report which sought approval to enter into a new 10-year contract with current supplier Veritau for the council’s internal audit and counter fraud services for the period 2020-2030.

The previous contract with Veritau, a company jointly owned by City of York Council and North Yorkshire County Council, had been extended for a further year and was due to end on 31 March 2020.  The report had been considered by Audit & Governance Committee on 5 December 2018 and 6 February 2019, and now included the further information requested by that committee, including the costs and implications of alternative options as set out in paragraph 37. 

The other options were: provision through an in-house service, seeking another vehicle for delivery of the shared service, or procuring an external service provider. All had been discounted on the basis of additional cost and disruption to service.  Benchmarking of other audit services, as outlined in paragraphs 27-28, had demonstrated the cost effectiveness of the current arrangements.

In response to Member question the Corporate Finance & Commercial Procurement Manager stated that:

·        There was a separate company set up under the Veritau umbreall covering four North Yorkshire district councils. It had also successfully bid for work from several other outside bodies and this had allowed the Council to deliver its saving objectives over recent years;

·        The 12 month break clause in the contract applied form day one; and

·        A ten year contract was fairly standard for this type of service, which was very often provided internally. This was to give the Council continuity of service and also to give Veritau, who were a small local employer, the certainty to plan and to develop their business and grow as an organisation.

Resolved:  (i)      That approval be given to enter into a new 10 year contract with Veritau, with an option to extend for a further 5 years.

                   (ii)      That the outline service specification set out in Annex 1 to the report be approved.

Reason:     To provide a value for money internal audit and counter fraud function for the council.