Agenda item

The paper attached at Annex A of this report from Mazars, the Council’s external auditors, considers whether the Council’s arrangements over some of the major programmes of work are effective in terms of governance, management of risk and project delivery. 

[Councillor N Barnes withdrew from the meeting and Councillor Dew took the Chair]

Members considered a report from Mazars which gave consideration as to whether the Council’s arrangements over some of the major programmes of work were effective in terms of governance, management of risk and project delivery. 

The representatives from Mazars gave details of their findings in respect of the following areas of work, as detailed in Annex A of the report:

·        Overall Programme and Project Management Arrangements – There had been a substantial improvement in this area.  The role of the Audit and Governance Committee in this process was also acknowledged.

·        Community Stadium Project – The complexity of the programme was acknowledged, as was the change in the scope of the project over time.  Good practice had been identified in many areas including governance, project-management, a well-run procurement process and appropriate technical resourcing.  It was the view of Mazars that the project was being managed effectively but that more information could have been made available to the public in respect of costs of the project, whilst recognising the need to exercise commercial sensitivity.

·        Older People’s Accommodation Programme – The programme was being managed well and being taken forward in a very effective way. 

·        Better Care Fund and Integration – The Council continued to play its part in this national initiative.  As experienced nationally, there remained challenges in this area.

·        Future Shape and Size Initiative/Operating Model for Children’s Prevention and Early Intervention Services – It was noted that the “Future Shape and Size” initiative had continued some of the themes of the previous Rewiring Public Services programme.  The Council had taken the opportunity to clarify the direction of its transformational activity and the work would now be taken forward through individual projects within the new corporate programme.

Referring to recommendations 15 and 16 in respect of the Community Stadium project, Members sought clarification as to the “options on phasing” that could have been considered.  The External Auditors stated there may have been a case for the Council to step back and consider the different options that were available.  A strength of the new project management arrangements was the gateway approach, as this provided an opportunity to consider different options at stages of the project.

[Councillor N Barnes rejoined the meeting and took the Chair]

The External Auditors were asked if they believed that the Corporate Management Team had sufficient time and independence to effectively carry out their role in respect of project management.  The External Auditors stated that there was a risk but, as evidenced in the reports that had been presented to the Audit and Governance Committee, more robust project management arrangements were now in place.

Clarification was sought as to how the implementation of the recommendations detailed in Annex A would be monitored.  The External Auditors stated that the actions had been agreed with officers in the relevant areas and would be followed-up through their ongoing audit work.  Officers confirmed that the actions would also be monitored internally and progress would be summarised in the Annual Governance Statement.  Members requested that an update on progress be presented to the committee at their meeting in July 2017.¹

The External Auditors were questioned about their comments in respect of financial information being made available to the public.  They were also asked how other councils handled this issue.  The External Auditors stated that their comments had been specific to the Community Stadium project and that City of York Council was not unusual in the approach that it took regarding making information public.

Resolved:  That the report be noted.

Reason:     To ensure that Members are aware of the issues and the action being taken by the Council.