Agenda item

That the conclusions on wider learning arising from the report be agreed and the proposals for organisational action be endorsed.

The Chief Officer (Governance) introduced the report which detailed the impact of the investigation on the Streetscene service and the learning drawn from that for the Council.  He stressed the importance of considering this information as most of the Internal Audit recommendations related to corporate systems beyond the Streetscene service such as:

·           Improved controls on procurement processes including restricting the number of P2P system users and refresher training covering Contract Procedure Rules.

·           Adoption of improved practices for the induction of new employees.

·           Training programme to give assurance of employees’ understanding of their obligations under the revised Officers’ Code of Conduct.

The Chief Officer (Streetscene & Transportation) spoke about the timing of the investigation which had coincided with a period of significant change for the Streetscene service.  He thanked all those involved in the process and highlighted the importance of considering the impact on front-line employees and the service at that time.  He added that the conclusions of the investigation had helped to strengthen corporate arrangements and eliminate potential for bad practice.

In acknowledging the pressure amongst employees carrying out their jobs at the time of the investigation, Mr. Paul Williams asked the Chief Officer to thank his workforce.  He felt that the report had identified a number of ‘triggers’ which raised issues on the need for proper due diligence when transferring companies in-house and for Board representation to provide sufficient challenge on operations and finances.  He went on to refer to previous comments raised by the Committee on the completion of appraisals within the Council which was an ongoing issue.

The Chief Executive spoke about the transfer of AD Waste which had been the first of this type for the Council.  The investigation had shown a lack of satisfactory past governance arrangements between AD Waste and the Council.  Some of the learning from the investigation involved work with Trade Union colleagues on reviewing and streamlining management of complex disciplinary cases, and the sourcing of external investigating officers as a more efficient way of project managing complex cases.

Following comments from Councillor Alison Halford, the Principal Auditor explained that one of issues identified was on the engagement of agency workers outside the set procedure.  Councillor Halford felt it was the responsibility of senior officers to monitor such issues to avoid any corporate failings.  The Chief Executive gave assurance of awareness of procedural rules across the organisation; in this case there was evidence of deliberate avoidance of certain rules such as procurement.  The Principal Auditor said that the findings of the investigation supported this view.

Officers responded to a number of queries raised by Members about the employees involved in the investigation.  Councillor Halford spoke about transparency of information to Council Members and members of the public.  The Chair indicated that he was content to take guidance from the Chief Executive and Chief Officers on this matter.  The Chief Officer (Governance) reminded Members of the need to maintain confidentiality and the implications if Data Protection regulations were to be breached.  The Chief Executive gave assurance of the rigorous disciplinary process used by the Council to which the Internal Audit Manager was in agreement.  The Chief Officer (Streetscene & Transportation) spoke about his confidence in the management of his service and of the improved controls which had been put in place.

Councillor Arnold Woolley expressed his disappointment at the historic issues which had been identified and felt that a greater level of accountability was required to address the failings.

In response to a question from Councillor Haydn Bateman, explanation was given on the process for transferring AD Waste to the Council.  The Chief Executive spoke about the reasoning which had led to agreement on the transfer.

Councillor Halford referred to questioning on AD Waste by the Committee during the period which she felt had not been resolved by officers at the time.

Councillor Ian Roberts also recalled concerns raised by the Committee and he went on to question the level of scrutiny on governance arrangements at the time of the transfer.  The Chief Executive said that AD Waste had been a long-established company with a sound trading record and that the findings of the KPMG review had resulted in Cabinet agreement to transfer the company.  He spoke about issues subsequently raised which had made the process more complex.

Councillor Woolley said that the findings of the KPMG review had demonstrated the viability of transferring the company and timing involved.  The Chief Executive and Principal Auditor provided further explanation on the circumstances surrounding the transfer of AD Waste and historic practices.

Mr. Williams reiterated that the Internal Audit findings had raised a number of issues which he felt should have been addressed through due diligence and scrutiny at Board level.  The Chief Executive spoke about the approach to transferring the company and the challenges encountered at a later stage, and referred to the past relationship of trust between the Council and the company.

In noting officers’ assurances on the improved controls put in place and lessons learned, Councillor Roberts felt that the matter had been satisfactorily dealt with and that there should be no apportionment of blame.

RESOLVED:

That the conclusions on wider learning arising from the report be agreed and the proposals for organisational action be endorsed.