Minutes:
The Committee received a presentation from the Head of Corporate Finance that gave an update on the Oracle E-Business Suite and a briefing on the Financial Procedure Rules and Contract Procedure Rules (for copy see file of Minutes).
The following points were highlighted:-
Oracle E-Business Suite:-
· Background
· Stabilisation Phase
· Development Phase
· Upgrade Phase
· The Future
Mr Hoban asked if there was a back up system and Ms Larkin-Bramley asked if so had it been tested. The Head of Corporate Finance said that there was a reciprocal arrangement in place with Sunderland City Council on disaster recovery and it had been tested.
Councillor Carr referred to the handheld devices for workmen stating that it was a good idea but pointed out that there were risks involved. The Head of Corporate Finance explained that a similar system was used for Durham City Homes and Internal Audit were involved from the beginning of the process to help identify risks. He added that controls were built in and the process worked well elsewhere.
On answering a question from Councillor Hillary about the outstanding risk of authorised signatories, the Head of Corporate Finance explained that the automation of financial systems meant that ordering could be made online through Oracle and therefore signatures were not required. The Transaction and Purchasing Team were informed through Oracle if someone was trying to order from a contractor not in the system so it was more efficient at dealing with anomalies.
The Chair informed members that the Audit Committee had visited the Oracle Centre at Tanfield a few years ago and it might be beneficial to re-visit to see first-hand the improvements made. Councillor Smith advised the Committee that Scrutiny were arranging a visit to Tanfield in April and it may be beneficial to join them.
Financial Procedure Rules:-
· What they are
· Why they are important
· Responsibilities
· Content
· General Roles and Responsibilities
· Financial Planning
· Risk Management and Control of Resources
· Financial System and Procedure
Councillor Temple referred to the change of bank and asked if the process would be under review by Scrutiny. The Corporate Director, Resources informed the Committee that the contract with the Co-operative Bank would run until March 2016 but in the meantime it would take 6 months to instruct a new bank. A lot of interest had been received and so the County Council needs to ensure that they receive the best deal. He advised that a view would be taken as to what involvement Audit and/or Scrutiny would have in the process. The Head of Corporate Finance added that a colleague from Internal Audit was on the project team so that they would have an input from the start of the process.
Members were advised that some services use the flexibility of cash limits and there is an incentive to underspend and carry across to the next financial year or future years. The Committee were also advised that schools do not have individual bank accounts and any interest earned is put back into school reserves.
Contract Procedure Rules:-
· What they are
· Basic Principles
· Officer Responsibilities
· Variations and Exceptions
· Approved Lists and Framework Agreements
· Competition Requirements
· Evaluation Criteria and Standards
· Contract Management/ Monitoring
Councillor Stelling asked about the process for offering local tenders. The Head of Corporate Finance explained that one provider could not be favoured over another but the authority do hold provider days that explains how to access the tender process and the contracts available. This ensures maximum opportunities are given to all interested parties.
The Head of Corporate Finance added that approved lists are no longer used and Framework Contracts are used instead which ensure the process is transparent.
Councillor Hillary asked if there was an ethical question for all tenders to ensure the minimum wage is paid. This information would be sought and reported back to Committee. Ms Larkin-Bramley asked that it be reported back as an outstanding action.
The Chairman thanked the Head of Corporate Finance for a very interesting and informative presentation.