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Agenda item

Compliance with Procurement Related Legislation and Financial Regulations

Minutes:

The Committee had before it a report by the Internal Auditor, which presented an audit in relation to compliance with procurement related legislation and financial regulations which involved reviewing a sample of payments in excess of £5000 made via the Council’s creditors system to ensure that they had been made in full compliance with legislation and financial regulations and were appropriate Value for Money had been achieved.  The audit also included a review of files of paid invoices for lower valued payments to ensure they had been paid in compliance with the financial regulations.

 

Councillor Dunbar sought clarification regarding recommendation 2.2.18(2) and the fact that the Service did not agree (that the Finance, Policy and Resources Committee are provided with details in respect of the circumstances surrounding compensation payments to the solar energy contractor), wherein the Monitoring Officer advised that he was satisfied that the payment made was contractual and within the budget.

 

Councillor Dunbar requested information relating to how Managers were being informed on the aggregate spend for similar contracts wherein the Chief Internal Auditor advised that the Service were in discussions with the Commercial and Procurement Service to ensure this was being managed appropriately.

 

Councillor Dunbar sought clarification in relation to ensuring that all exemption forms were completed in full, wherein the Chief Internal Auditor advised that the Commercial and Procurement Service would be monitoring all forms in the future and that information on the process to be followed would be circulated to the Committee.

 

Councillor Dunbar sought clarification regarding which Committee would receive a report relating to the Commercial and Procurement Service’s review of the status of the implied contracts, determine appropriate actions with the Service and seek Committee approval, wherein the Chief Internal Auditor advised that he would clarify the position and advise the Committee.

 

In relation to paragraph 2.2.16 (claim for compensation due to solar panels being disconnected following health and safety concerns and the company losing income) the Convener requested that a report be submitted to this Committee outlining the incident specifically the financial implications to the Council.

 

The Committee resolved:-

(i)         in response to a question from Councillor Dunbar regarding recommendation 2.2.18(2) and the fact that the Service did not agree (that the Finance, Policy and Resources Committee are provided with details in respect of the circumstances surrounding compensation payments to the solar energy contractor), to note that the Monitoring Officer was satisfied that the payment made to the contractor was a contractual payment and not a compensation payment and that there was sufficient funds to make the payment therefore any report would be for noting;

(ii)        in response to a question from Councillor Dunbar regarding Managers being made aware of aggregate spend on similar contracts and how this was being implemented, to note that the Service were working with the Commercial and Procurement Service to ensure this was being done;

(iii)       in response to a question from Councillor Dunbar regarding ensuring that all exemption forms were completed in full, to note that all forms would be monitored by the Commercial and Procurement Service in the future and that the Chief Internal Auditor would provide the Committee with information on the process that was to be followed;

(iv)       in response to a question from Councillor Dunbar regarding which Committee would receive a report relating to the Commercial and Procurement Service’s review of the status of the implied contracts and determine appropriate actions with the Service and seek Committee approval, to note that the Chief Internal Auditor would confirm which Committee and advise the Committee;

(v)        to request the Head of Land and Property Assets to submit a report to this Committee presenting the circumstances relating to the solar panel incident specifically around the financial implications and the total loss to the Council; and

(vi)       to otherwise note the content of the report and endorse the recommendations for improvement.

Supporting documents: