** Please note that due to the confidential nature, this report will only be circulated to members of the Account, Audit and Risk Committee **
Exempt Report of Chief Executive
Minutes:
The Chief Executive submitted an exempt report to enable Members to consider the final proposed report from KPMG in light of the submissions received since the last meeting and to agree the management response to the report setting out a proposed course of action in light of the conclusions and recommendations.
The Chief Executive introduced John Cornett, Director, KPMG, who had led the independent review into the NNDR overpayment.
The Head of Finance and Procurement gave an update on the current position with regards to the council’s discussions with the Department for Communities and Local Government (DCLG) regarding the claim.
The Deputy Monitoring Officer advised Members that a meeting of the Account, Audit and Risk Committee would be arranged when required to make any decision.
Members asked a number of questions regarding the claim, to which the Head of Finance and Procurement duly responded.
The Head of Finance and Procurement then left the meeting.
In presenting the final report of KPMG of the NNDR Overpayment, John Cornett (KPMG) advised Members that after the special meeting of the Committee on 15 December 2015, the report had been circulated to relevant officers and stakeholders. Relevant comments from officers had been included in the final report before the Committee. Additionally, a discussion had been held with External Audit and their comments would be added to the report. Mr Cornett confirmed that whilst changes had been made to the report, the comments had provided clarity and there had been no change to the conclusions of the report and only one minor change to one of the recommendations.
With regards to the management response, Mr Cornett advised the Committee that is was a strong and robust response which demonstrated that the matter was being taken very seriously by the council. There were clear actions with an effective means of monitoring.
The Monitoring Officer joined the meeting and addressed the Committee, after which he left the meeting.
The Chief Executive assured the Committee that all actions set out in the management response would be completed. The Chief Executive also provided the Committee with an update on meetings she had held with various parties regarding the matter.
In considering the report, it was expressed by some members that the incident had given them cause for concern and adversely affected their confidence. The Committee agreed that Chief Executive should be requested to reflect on the comments of the Accounts, Audit and Risk Committee and discuss any future action with the Leader.
Resolved
(1) That the amended final proposed report from KPMG be noted.
(2) That the representations received from the Monitoring Officer, Section 151 Officer and those who were interviewed and the External Auditor (EY) as reported by the Chief Executive and KPMG be noted.
(3) That the final report be adopted and authority for the final detailed wording of the report be delegated to the Chief Executive, in consultation with the Chairman of the Accounts, Audit & Rick Committee, Councillor Richards and Councillor Wood.
(4) That the proposed management response to the report be endorsed and adopted.
(5) That the Chief Executive be requested to circulate the full final report and agreed management response to all those that were interviewed, External Auditor (EY) and Internal Auditor (PWC) on a confidential basis and to take action as appropriate to implement the management response.
(6) That monitoring of the implementation of the Finance action and improvement plan arising from the report as set out in the management response be added to the committee work programme.
(7) That the Chief Executive be requested to reflect on the comments of the Accounts, Audit and Risk Committee and discuss any future action with the Leader.
(8) That the Chief Executive be authorised to release the KPMG report, on a confidential basis, to the South Northamptonshire Council Leader and Audit Committee.