Finance – Review of 2008/09 Strengthened governance arrangements – new Audit & Risk Management Committee considered 2007/08 Statement of Accounts, proposed 2009/10 Budgets and Treasury Management & Investment Strategy. Delivered a balanced budget for 2009/10 (without drawing on balances or reserves) and a more sustainable 3-Year Medium Term Financial Strategy. Proactively addressed budget risks – Faced with potential budget risks of £5m, finance led corporate actions to mitigate risk: –Engaging with the DWP to minimise Housing Benefit claw back, significant risks remain. –Successfully obtaining capitalisation approval to relieve pressure on revenue budgets arising from management restructuring –Improving the prospects of the long-term sustainability of the authority through freezing and deleting vacant posts and a programme of voluntary redundancies –Reducing capital and revenue expenditure and maximising income wherever possible, resulting in an increase in projected reserves and balances

Finance – Review of 2008/09 Progressed 2006/07 audit recommendations – Implemented actions to address the 80 recommendations arising from the detailed auditors report: –Partly successful in addressing the audit qualification (work continuing) –Acknowledged improvements in quality of working papers and supporting evidence for the 2007/08 accounts Use of Resources scores – Currently at a “standstill” position overall, improvement in Internal Control score to 2, reflecting the improvements to arrangements designed to promote and ensure probity and propriety. Encouragingly, Financial Reporting KLOE 1.2 scored a 3 (Consistently above minimum requirements – performing well) through the Council. –demonstrating that it had considered the views of a range of stakeholders in making its decision whether to publish an annual report; and –publishing summary financial information that meets the needs of a range of stakeholders –fundamentally, weaknesses still remain

Finance – Review of 2008/09 Facilitated greater involvement of members in developing the 2009/10 Budget and briefing Members on key issues affecting the Council, including the changing of accounting and reporting requirements, budget risks and the impact of the economic situation. Improved Financial Reporting – Quarterly financial reports now incorporated into comprehensive performance reporting, including both financial and non-financial performance. Improved monitoring and reporting of debt management against targets and against the Audit Commission’s “nearest neighbour group” (Authorities of similar demographic make up). Protected public funds – Worked closely with Treasury Management advisers on investment decisions – No money was invested in Icelandic Banks.

Finance – Review of 2008/09 Value for Money – Developing a Value for Money Framework, with VFM incorporated into Service Planning. Delivered efficiency savings - Leading with Procurement to achieve savings for taxpayers, with budget savings being delivered on tender of Insurance contract. Local Government Review – Finance responded positively to all Boundary Committee requests for detailed service budget analysis for both Suffolk and Norfolk solutions, with tight deadlines met. Delivering the Enabling agenda – Finance supported the transfer of operational services to the new Waveney Norse agreement.

Internal Audit Services What the service offers: Internal Audit is an assurance function that provides an independent and objective opinion to the organisation on the control environment. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources. The objectives of the team are to review, appraise and report on:-  The soundness, adequacy and application of accounting, financial and other controls  Compliance with established policies, plans and procedures  The extent to which the Council’s assets and interests are properly accounted for and safeguarded from losses of all kinds  The reliability of accounting and other data  Losses arising from the lack of economy, efficiency or effectiveness in the provision of services

How the Service is delivered Commencing the 1 January 2009 the service became part of a partnership with Suffolk Coastal District Council Internal Audit Services which delivers Strategic and Operational Management Services, specialist computer audit services to ensure the team complies with best practice as set out by CIPFA. Reporting Structure Director of ResourcesAudit and Risk Management Committee Audit Partnership Manager Assistant Audit Partnership Manager Computer Auditor Auditor Auditor

What the Service Delivered during 2008/09 On target to deliver 90% of the revised Audit Plan for 2008/09, a significant achievement given the management, operational and resource challenges encountered during the year Produced over 170 recommendations agreed by management to improve Waveney’s processes and governance arrangements Construction of an Audit Charter detailing the roles, responsibilities and code of ethics to be applied to the Internal Audit Service New/modern reporting style encapsulating traffic light alerts Frequent reporting to the newly formed Audit & Risk Management Committee Revised working protocol provided to all auditees on how an audit will proceed Agreed a new working protocol between Internal Audit and External Audit

What the Service Delivered during 2008/09 cont. Received a comprehensive report upon the workings of the Internal Audit Services from the Audit Commission Completed 59 of the 70 recommendations within 2 months of receiving the final report from the Audit Commission. On target to embrace and complete the remaining recommendations Provided consultancy and direction on the investigative processes surrounding alleged frauds As the year progressed, produced quality reports which External Audit can place reliance upon Expanded the distribution list of Audit Report recipients to include Cabinet Portfolio Holders Employed highly qualified and experienced professionals working in a partnership environment Access to a wider skills base as a consequence of the Audit Partnership with Suffolk Coastal District Council

Prospects for 2009/10 To continue to work towards compliance with the CIPFA Code of Practice for Internal Audit in the United Kingdom To provide a modern and professional service to all internal and external customers which adds real value to aid Waveney’s improvement programme Promote Internal Audit Services by the publication of a Brochure and Newsletter Deliver briefing sessions to Members on the role and working of Internal Audit Services Aim to complete 100% of the key systems work programmed in the Audit Plan for 2009/10 Benchmark with like authorities to achieve best practice Continue to provide support and all necessary reports to the Audit & Risk Management Committee To work closely with Suffolk Coastal and secure continuing advantages of partnership working in an Audit environment