Sarah-Jane Byrne, Local Government Manager of the Wales Audit Office presented the Annual Improvement Report of the Auditor General. 

The Local Government Manager of the WAO informed the committee that the Auditor General is required to undertake an annual improvement assessment and publish an annual improvement report for each improvement authority in Wales.  She stated that overall, the Council is meeting its statutory requirements in relation to continuous improvement and based on the work carried out by the WAO and relevant regulators, the Council is likely to comply with the requirements of the Local Government Measure. 

The Local Government Manager reported on the headline findings of the following projects it had undertaken:

• Good Governance when Determining Service Changes
• Annual Audit Letter 2015-16
• Savings Planning
• Corporate Assessment Follow Up
• Annual Improvement Plan Audit
• Annual Assessment of Performance Audit

The Auditor General did not make any formal recommendations or proposals for improvement.  In relation to the Good Governance when Determining Service Changes project, the Council had responded positively to the issues raised by the WAO and has taken action to address each area that requires improvement.   The WAO has found that the Council has clear priorities that shape its decisions on significant service change and it seeks to learn and improve arrangements, but there is scope to improve the accessibility of some information.  It also found, that the Council benefits from generally clear governance and accountability arrangements and positive working relationships between officers and members.  The Council typically considers a range of options for significant service changes that are supported by clear information, but they are not generally accompanied by a formal options appraisal.  The Council has generally effective consultation arrangements when considering significant service changes and it continues to develop them, though the accessibility of information could be improved.  The Council monitors financial savings and the impact of some significant services changes, though this could be strengthened by clearly setting out how impact will be monitored at the point of decision.  The Council is learning from its experience to improve its arrangements for determining and delivering service changes.

The Local Government Manager reported that national report recommendations had been made in respect of:

• Financial Resilience of Local Authorities in Wales 2015-16
• Community safety in Wales
• Charging for Services and Generating Income by Local Authorities
• Local Authority Funding of Third Sector Services

The Committee requested clarification of the statement made by the WAO in relation to savings planning that “whilst the Council has a sound financial planning framework underdeveloped savings plans may not fully support future financial resilience”.  The Local Government Manager informed the Committee that the WAO had found there is a need for the Council to strengthen and further work is needed on savings planning to ensure Members can make decisions.  The Group Manager Chief Accountant informed the Committee that budget monitoring reports include a section on savings monitoring and Directors are tasked with providing alternative savings proposals for ones not progressing.  She stated that a report on Quarter 3 Budget Monitoring would be presented to cabinet in January. 

The Committee questioned as to how the recommendations contained in the Annual Improvement Report would be implemented.  The Chairperson informed the Committee that officers would report back to the Committee on implementing the report’s recommendations.

RESOLVED:           That the Committee noted the Annual Improvement Report by the WAO.