The Audit and Performance Committee meeting on 26 November 2014 endorsed the council's work programme for the remainder of the financial year, with an amendment to include a review of the internal audit and counter fraud service. The committee also noted the KPMG Annual Audit Letter for 2013/14 and the Corporate Complaints Review for the same period, requesting further information on specific issues raised in both reports.

Work Programme 2014-2015

The committee endorsed the work programme for the remainder of 2014-15, with two key amendments. Firstly, a procurement workshop, initially scheduled for 4 December, was rescheduled to the second half of January to ensure better attendance. Secondly, Councillor David Boothroyd suggested that the committee receive a report on the future of the council's internal audit and counter fraud service, particularly in light of the transfer of housing benefit fraud services to the DWP's Single Fraud Investigation Service by March 2015.

KPMG Annual Audit Letter 2013/14

The committee considered the Annual Audit Letter from the council's external auditors, KPMG, which detailed the key findings from the audit of the council's financial statements for the year ending 31 March 2014. The City Treasurer, Steve Mair, welcomed the unqualified value for money conclusion and opinion on the financial statements. While acknowledging a higher number of errors in the accounts than in previous years, attributed to an accelerated closedown timetable, Mr Mair outlined the project plan and systems in place to minimise future issues. He explained that this accelerated process is part of a financial transformation programme aimed at reducing the overall cost of the finance service. The committee also noted that auditors had not yet issued certificates closing audits from 2008/09 onwards due to outstanding objections, primarily concerning the parking pay-by-phone contract and the Phillips Bailiff contract. These objections, raised by a single member of the public, had incurred approximately £80,000 in audit fees since 2008/09. The committee expressed concern over the unresolved nature of these long-standing objections and their associated costs, while recognising that some had identified weaknesses in council processes.

Corporate Complaints 2013/2014

A report summarising the council's annual complaints review for 2014 was presented. The committee noted an improvement in meeting response times at stage 1 of the complaints process, but a slight decrease at stage 2. Sue Howell, Complaints and Customer Manager, explained that a 15% increase in the total number of complaints received could be attributed to a growing number of organisations filtering complaints on behalf of others. The committee requested a process map detailing how enquiries become formal complaints and asked for a definition of a corporate complaint in future reports. Concerns were raised about the independence of stage 1 investigators, with Ms Howell stating that while independence is encouraged, it is not always possible in small teams. The committee also expressed concern regarding CityWest Homes' separate complaints procedure, noting that a planned tenant panel to review complaints had not been established. A briefing note was requested from CityWest Homes on this matter. Councillor Boothroyd also asked for a statement on compensation paid to families housed in temporary accommodation beyond the statutory limit.

Quarter 2 Finance & Performance Business Plan Monitoring Report

The City Treasurer reported an approximate £3.5 million overspend in the council's annual budget at period 6, primarily due to high homelessness levels, but expected the budget to be balanced by year-end. Mo Rahman, Strategic Performance Team, presented the progress against the performance management framework. The committee requested that future reports be abridged and focus on the analytics of the Better City Better Lives objectives. Glen Peache, Assistant Director for Looked After Children and Leaving Care, explained that an increase in unaccompanied asylum-seeking children, partly due to arrivals from Albania, had impacted the target to reduce young people aged 14-17 entering care. This issue was being discussed with the Home Office and Border Control due to concerns about the age and migrant status of some individuals. The committee expressed disappointment that no senior officer from the Fostering Service attended to discuss recruitment challenges and requested a note on the matter. Councillor Boothroyd sought details on the costs to Adult Services arising from the new Care Act, the number of vulnerable people affected, and the implications of service implementation delays. He also requested further information on the planning permission and work programme for the Queens Park Leisure Centre and details of the corporate property portfolio.

Internal Audit and Counter Fraud Monitoring Report

The committee reviewed the key outcomes from internal audit and counter fraud work. The Internal Auditor's opinion was generally positive, with 77% of audits receiving positive assurance. Concerns were raised about limited assurance audits at two Westminster schools: Queen Elizabeth II Special School and College Park Special School. Chris Harris of Baker Tilly clarified an error in the report, stating a red warning for College Park should have been amber. Moira Mackie suggested a change in bursar at one school had affected financial administration. The committee requested that the City Treasurer and Tri-Borough Director of Children's Services work with the schools if problems persist. Regarding housing benefit fraud, David Whitehouse-Hayes, Counter Fraud Manager, explained that prosecution numbers vary annually and that the service is focusing on subletting fraud for greater disruption. The committee requested a summary of prosecutions and money recovered over recent years for a clearer picture.