Venue: By Zoom. View directions
Contact: Connor Farmer
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Apologies To receive apologies for absence. Minutes: Apologies for absence were received from County Councillors C Walsh, A Williams, G Breeze, R Church (Cabinet Member for a Safer Powys), J Straw (Interim Chief Executive), C James (Head of Transformation and Democratic Services) and B Hopkins (Audit Wales).
County Councillors G Ratcliffe and W Powell sent their apologies for joining the meeting late due to other council business. |
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Disclosures of Interest To receive any disclosures of interest by Members relating to items to be considered at the meeting. Minutes: No disclosures of interest were raised. |
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Minutes and Action Log PDF 289 KB (i) To authorise the Chair to sign the minutes of the previous meeting held as follows as a correct record: · 23-06-2023 · 28-07-2023
(ii) To receive and consider the Action Log. Additional documents: Minutes: The Chair was authorised to sign the minutes of the previous meeting, held on 23rd June and 28th July 2023 as a correct record. |
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Draft Wellbeing Objectives Examination Report PDF 93 KB To receive and note the Audit Wales – Draft Wellbeing Objectives Examination Report. Additional documents: Minutes: Documents Considered: · Wellbeing Objectives Examination Report – Audit Wales
Background:
The Chair explained to Members that the Wellbeing Objectives Examination report was presented to committee for information and assurance, and invited the representative from Audit Wales to present an overview of the report.
Audit Wales: · The Audit Lead for Powys clarified firstly that the report was finalised and no longer in draft format. · The Wellbeing Objective setting work was part of an ongoing rolling programme that the Auditor General undertakes, to assess the extent in which public bodies had acted in accordance with the sustainable development principle when setting their wellbeing objectives. · The report sets out the findings from the review undertaken by Audit Wales, including Powys County Council’s approach taken and to what extent it acted in accordance with the sustainable development principle. The appendix included in the report listed the positive indicators which the auditors were looking for. · The content of the report had been agreed with the Council for factual accuracy. The Audit Lead for Powys therefore asked Members to focus on how the Council was responding to recommendations, and what actions were being taken in anticipation of the next iteration of the Council’s Wellbeing Objective setting. · Key highlights included: o The sustainable development principle was applied however it should draw on more diverse citizen views and fully embed this in the monitoring arrangements. o The Council had utilised an extensive set of evidence and data to inform its wellbeing objectives and also captured long-term data trends. o There were examples of engagement with Members, Officers and citizens through workshops and surveys. o The Council had a clear understanding of how its wellbeing objectives support long term national goals, objectives of public bodies and the Council’s Committees such as the Public Service Board. o Preventative approaches were considered whilst designing the wellbeing objectives. Commentary was provided including opportunities for the Council to build on the progress already made by applying the sustainable development principles. · Recommendations were set out in page 10 of the report, including: o Drawing the views of a full diversity of the population. o Ensuring that the MTFP reflected the resources and how it will be prioritised and embedded into the new performance management framework and quality framework to enable effective monitoring of the wellbeing objectives. · The Audit Lead for Powys summarised by noting the positives highlighted in the report, and noted the foundation already in place with some recommendations to strengthen the arrangements for future iterations.
Director of Corporate Services response:
· The Director noted that reflection had already been undertaken since the delivery of the integrated business plan, process, transformation portfolio and the medium-term financial strategy. · It was clarified that the monitoring approach had been revised and noted this was included in the recommendation to allow time for the changes to embed. · The process now involved three measure categories: how much, how well and what difference. All services were required to provide a narrative and updates around the delivery against the wellbeing objectives. ... view the full minutes text for item 4. |
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To receive a report on fraud from the Head of Finance. Additional documents: Minutes: Documents Considered: · Quarter 2 Corporate Fraud and Error Report (2023).
Background: · The Senior Investigator presented the quarterly Corporate Fraud and Error Report to the Committee Members. · Review work continued at pace in respect of council tax property reviews and exemptions, extending into business rates and the charitable sector. · Referrals received from other Council departments, human resources and the public were being actioned. The Senior Investigator noted that all reports received would be thoroughly investigated. · Concerns had previously been raised about the ‘report fraud’ button which had previously been available on the internal staff intranet. The Head of Finance had since addressed the matter and it was now being actioned and implemented. · The Senior Investigator noted the response from the Public Services Ombudsman for Wales (PSOW) regarding strengthening the Code of Conduct for Members with anti-fraud references and invited the Committee to respond. · The Senior Investigator explained that Powys County Council had again agreed to take part in the Independent International Fraud Awareness Week, which will run from the 12th to 18th November 2023.
Issues Raised by the Committee and Responses Received:
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Corporate Safeguarding Board Activity Update PDF 181 KB To receive and consider a report of the Director of Social Services and Housing. Minutes: Documents Considered: · Corporate Safeguarding Board Activity Report – 8th June 2023.
Background: · The Director of Social Services and Housing provided a brief overview of the report provided to Committee. · It was noted that some time had passed since the Corporate Safeguarding Board meeting, therefore some actions had been completed since the production of the report. · The report had been scrutinised by the Health and Care Scrutiny Committee already, the Scrutiny Committee received an update from the Professional Lead regarding safeguarding considerations within the Council’s procurement and contract management. · The Health and Care Scrutiny Committee also received an update on safeguarding considerations in elective home education, which was requested due to the statutory guidance recently issued by Welsh Government. · Regarding mandatory training, The Director of Social Services and Housing reported improvements in compliance. o The percentage compliance for the Catering and Cleaning service was 44.7% on 1st January 2023, as of 1st June it was 85.8%. o The percentage compliance for the Highways, Transport and Recycling service was 67.8% on 1st January 2023, as of 1st June it was 96.6%. § It was noted that as many employees did not have access to computers to complete the mandatory training, the Workforce and Organisational Development service provided hardcopies of training material and organised training sessions to be delivered at different times of the day to suit different work patterns. · The Director reported that the Corporate Safeguarding Board received updates from SWAP regarding audit reports. It was noted that the DBS Team provided high assurance, some services provided more limited assurance which were Taxis, Foster Carers and Procurement and improvements were therefore needed. · Remedial actions were to be tracked by the Board using their regulatory tracker to ensure progress was monitored. · Self-assessment work was discussed by the Board, and for the first time this year, safeguarding was included in the Council’s self-assessment. · The Board received the Annual Private Fostering Report, which included an update on private fostering arrangements that fall within childcare legislation. This applied to any child under the age of 16 who moved into another household outside of their immediate family, for longer than 28 days. It was noted that local authorities had a statutory duty to undertake DBS checks and visit the household to ensure the child was safe and their needs were being met. · The Director reported there were a number of housing development business cases being prepared, to broaden the scope of housing options that might assist with providing suitable accommodation for young people experiencing homelessness. · The mandatory Safeguarding and Violence against Women, Domestic Abuse and Sexual Violence (VAWDASV) training compliance rate improved across all service areas, Children’s Services reported a slightly lower compliance rate at 82%. · There were discussions as to whether the training was relevant for the officers within Children’s Services, as many officers were already trained at a high level in safeguarding. However, it was determined that Children’s Services staff should continue to complete the mandatory training. Compliance was being ... view the full minutes text for item 6. |
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Commercial Update To receive an update from the Professional Lead - Procurement and Commercial Services and the Head of Finance. Minutes: Documents Considered: · Commercial Update presentation
Background: · The Professional Lead for Procurement and Commercial Services provided a presentation to the Committee regarding the Council’s commercial activity. · It was reported that last year, Powys County Council spent around £252 million on a range of goods, services and works across 6,800 suppliers. · The top 17 suppliers used by the Council equated to individual expenditure in excess of £2 million, which represented 25% of the Council’s total expenditure. It was further reported that there were 57 suppliers (including the top 17 suppliers) to the Council where spending exceeded £1 million each. · Analysis of supplier spending highlighted the Council’s critical suppliers, which in-turn allowed resources to be focused to manage risks and achieve benefits realisation. · The Professional Lead for Procurement and Commercial Services noted that traditionally, the Council’s procurement was mainly centred around tender management and the award of contracts. There was less focus on pre-procurement and strategy development. · Robust contract management mechanisms were required to help achieve service delivery objectives, identify and manage supply risks. · Four pillars of activity to enable the appropriate controls and mechanisms to achieve the core objective. o Contract procedure rules in place: § Formed part of the Constitution and set out the procedures in which all individuals across the Council should undertake their procurement process. o Commercial Performance and Risk Board: § Membership included a number of senior officers across the Council to have visibility and oversight, agree mechanisms to put in place increased controls and measures to improve performance. o Systems and processes: § National systems utilised via Welsh Government to manage and advertise tenders. § New contract management framework to provide a consistent approach across the Council. § Tiering mechanism based on value and risk, to identify core contracts whilst ensuring effective and robust management. § New contract and financial risk management regime. § Commercial risk register in place – a mechanism to identify and manage risks. o Intelligence: § Membership of the WLGA Market Expert Intelligence Group, which brought together professionals from across the public sector to identify risks within the Council’s supply chain as part of a collective approach to manage risks. § Significant issues in the supply chain were noted such as the Ukraine conflict, Brexit, the Covid Pandemic and others. · Procurement pipeline/contract register: o Provided visibility of future demand and helped establish mechanisms to identify the best commercial strategy to achieve the Council’s aims. · Green Network: o Focused on the Council’s Net Zero ambitions by bringing together officers with the right skill set, to reduce the Council’s carbon emissions. · Contract Management Training Regime: o Workshops held discussing the forthcoming procurement regulations due to take effect in 2024. o Focus on preparedness due to changes to the wider commercial requirements when considering the Council’s commercial activity. o Collective workshop held regarding the new Subsidy Control Act 2022 to provide the awareness and skills to manage a complex area of work. o Contract management training was required for staff working with suppliers where the Council ... view the full minutes text for item 7. |
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Flexible Working Arrangements Presentation PDF 68 KB To receive and consider a presentation of the Head of Workforce and Organisational Development. Additional documents: Minutes: Documents Considered: · A presentation on flexible working arrangements was provided by the Head of Workforce and Organisational Development.
Background: · Introduction of New Ways of Working: o Opportunity to review ways of working following experiences of the pandemic. o Three categories of worker established, ‘place-based’, ‘on-the-go’ and ‘flexible’. o Set of principles agreed and shared with managers and staff. o Additional guidance and FAQs were produced. o Services were asked to consider how these principles would most effectively work for them as a service. o Informal discussions and communications with staff to set out principles and expectations (no contractual changes). o Flexi scheme policy had been reviewed and was reverting to normal policy with effect from 13th November 2023. · Health, Safety and Wellbeing of staff: o Through the pandemic, extensive guidance was provided to staff with clear procedures for work-based activities and use of buildings. o Specific support for schools, health and social care. o Issuing of equipment. o DSE (Display Screen Equipment) assessment utilised with a new system introduced in addition to portable appliance testing (PAT). o Various safe working practice guidance issued. o Wellbeing protocol introduced. o Employee Assistance Programme. o Three staff surveys were undertaken. · Support for Managers: o Remote working required a different skill set of managers, for example, visible leadership principles for senior managers. o Employee appraisals, one-to-one meetings and team meetings (performance based and supportive). o Robust procedures, training and HR support for performance concerns. o ILM course offered included training on managing staff virtually, in addition to coaching. o Funding available via Welsh Apprenticeship framework. · Review and monitoring: o Services were continually reviewing ways of working against the needs of the service, for example Children’s Services staff were working in offices for two days a week to meet the needs of their clients. Newly qualified staff also had the opportunity to learn from colleagues in-person. o Staff survey analysis showed that 94% of respondents reported ‘knowing what they are doing and why they are doing it’. o Corporate oversight – regular performance meetings in addition to meetings with the Portfolio Holder. · Future considerations: o Adapting the flexi scheme and the trial of a four-day working week. o Alternative ways of recruitment and retention, improving the staff offer.
The Chair noted that the Committee had requested an update to seek assurance on the changes to the flexible working arrangements following the Covid pandemic, which originated from discussions at a Governance and Audit Committee working group.
Issues Raised by the Committee and Responses Received:
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Governance and Audit Committee ToR/Constitution update To receive an update regarding the Governance and Audit Committee Terms of Reference (ToR) from the Head of Finance. Minutes: Documents Considered: · Draft amendment to Governance and Audit Committee Terms of Reference.
Background: · The wording of the Governance and Audit Committee terms of reference as set out in the Council’s Constitution did not accurately reflect the internal audit process currently utilised. · The Head of Finance presented the current wording and proposed amendment to the wording, which if amended, would still allow the Committee to approve the internal audit plan on an annual basis. · Any amendment to the Committee’s Terms of Reference as set out in the Constitution must first be approved by the Democratic Services Committee (DSC). If approved by the DSC, the Monitoring Officer would then present the report at a meeting of the County Council and once approved, the changes would take effect in accordance with the recommendations set out in the report.
Issues Raised by the Committee and Responses Received:
Actions: · To add an item to the forward work programme for quarter 4, to approve the annual internal audit plan.
Observations and Recommendations: · Committee Members noted the proposed amendment to the GAC Terms of Reference. · The Head of Finance would contact the Monitoring Officer to prepare a report for the Democratic Services Committee to consider. |
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SWAP Progress Report PDF 78 KB To receive and consider a report from the Assistant Director (Powys) - SWAP. Additional documents: Minutes: Documents Considered: · SWAP Progress Report
Background: · The SWAP Assistant Director (Powys) noted that the progress report was the first report to Committee using data extracted from the new SWAP audit management system. · The new system provided key benefits such as improved agility and timeliness of reporting. · The new system allowed different views and slices of audit activity, which was helpful when considering coverage, which was planned over a two-year cycle. · The report listed the strategic risk alongside the coverage at the current point in time. As work progressed, the coverage map would change accordingly. · New additions included the SWAP Top 10 Risks and the Healthy Organisation principles. · Overall, coverage was noted as being reasonable. The SWAP Assistant Director (Powys) noted that there were certain areas to continue monitoring such as planning, housing and the economy service areas. · Additional data were required to establish whether there were more serious underlying themes that required attention as part of the audit planning process. · It was reported that at the time of the report, 29% of work was complete and 28% was work in progress. The SWAP Assistant Director (Powys) noted that they were on track to deliver the audit plan and to provide the annual audit opinion. · In terms of outcomes, 86% of the opinion-based work was positive. · There were no areas of significant concern at present to report. · The SWAP Assistant Director (Powys) noted there were audits of the Council’s schools which would be presented at the next Committee meeting. · Follow-up audits and issues/root causes were now reported, which identified the fundamental underlying reason for causing the issues found. The majority of the reasons were due to policies, processes and systems. · The addition of the eight Healthy Organisations Principles (developed by SWAP) allowed the themes to be drilled down, where it was identified that the main issues were in relation to financial management. A deeper dive established that the main issues were around non-compliance by the services, which was due to the problems the Council experienced with core financial systems. · It was noted that as data matured more trends would become apparent, which would feed into future plans. · The overall indicative opinion for 2023/24, at the moment, appeared Reasonable.
Issues Raised by the Committee and Responses Received:
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FIN0001 - Deliver Financially Sustainable Budget PDF 101 KB To receive and consider a Risk Deep Dive presentation from the Deputy-Head of Finance.
N.B. The attached FIN0001 Risk Report is provided for background information to support the Risk Deep Dive item. Minutes: Documents Considered: · Risk Deep Dive presentation - Strategic Risk FIN0001.
Background: · The Cabinet Member for Finance and Corporate Transformation opened the item by explaining that Members must accept that any budget would contain an element of risk, and as the budget grew in value, so would risk. · The Cabinet Member further noted that it was also important to understand that although the Welsh local authorities were protected until 2012, the UK suffered a period of austerity from 2010, with settlements reducing for 2019/20. The Covid pandemic had had a significant negative impact on the economy, and since then there had been a period of rising inflation, which was very likely exacerbated by the war in Ukraine. · Despite actions taken by the Council, FIN0001 remained a substantial strategic risk to the Council which made setting a balanced budget very difficult, especially in terms of budget sustainability. · The Head of Finance (Section 151 Officer) noted that the risk had remained on the strategic risk register for some time, with the score rising due to the external economic factors. · The current issues were focused on high interest rates which affected the Council’s financial resilience and the cost in delivering the Council’s services. · The pressure was seen across other Local Authorities for example in England, where a number of Councils had already issued Section 114 notices. · Mitigating Actions: o To revise the Medium-Term Financial Strategy with S151 Officer Assurance. o Audit Wales Sustainability reviews. o Ongoing discussion with Welsh Government, WLGA and via the Society of Welsh Treasurers. o Regular monitoring of financial position with commentary by Heads of Service to highlight and address issues early. o Commercial Risk Board – focus on procurement. o Early engagement with services throughout the previous year enabled the Council to deliver on the budget at Year End. o Continual dialogue was required as services may need to change and adapt as the financial situation changes. o Financial Management Code. o Self-assessment. o Sustainable Powys – how Council services were reshaped was fundamental to financial resilience. · Financial Resilience: o CIPFA “Four Pillars of Financial Resilience”. § Getting routine financial management right, including audit. § Benchmarking continued to be developed. § Clear plans. § Sustainable Powys. · Role of the Section 151 Officer: o Held the key responsibility to ensure the Council understands its position, and takes appropriate action at all times from a budget perspective. o Setting a balanced budget – S151 Opinion – set out in the Budget Report to the Council as required by legislation. o Statutory duty to issue a Section 114 Notice, if it was believed that the Council was unable to meet its expenditure commitments. o Monitoring the situation faced by other Councils in financial distress, including any lessons learnt from those cases. · Audit Wales - Financial Sustainability Assessment: o The July 2021 report was available to view online at the following link:https://www.audit.wales/publication/powys-county-council-financial-sustainability-assessment-0 o Recommendations from the Audit Wales Financial Sustainability Assessment were being actioned and informed the Council’s plans going forward. |
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(i) To note the following reports from the Governance and Audit Committee Working Groups:
· 16-08-2023 Internal Audit Working Group Report. · 15-09-2023 HoWPS Working Group Report
(ii) To receive an update from the representative to Finance Panel. Additional documents: Minutes: Documents Considered: · 16-08-2023 Internal Audit Working Group Report. · Verbal update from the Committee Representative to the Finance Panel.
Observations and Recommendations: · The Committee received and noted the Internal Audit Working Group report of the meeting held 16th August 2023. · The Chair provided an update regarding Finance Panel due to the Committee Representative having to leave for other Council business. · The Chair noted the good financial reporting and reiterated the financial context in which the Council was operating was extremely challenging. o The Chair of Finance Panel who was in attendance noted that it was important to review the Council’s financial performance. o The Chair of Finance Panel reported that he would like to have a long-term view of the Council’s revenue and capital investment to understand how these align with each other. This could also provide confidence in service delivery and ensuring long-term sustainability. · The Chair explained that a recommendation from the Governance and Audit Committee Capital Working Group was to develop and implement a 10-year capital planning programme.
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To consider the forward work programme (attached) and consider whether any additional items should be included. Minutes: Documents Considered: · Governance and Audit Committee Work Programme 2023/24
Actions: · To add the review/case study of the Red Dragon development as an item for the next meeting in November 2023.
Observations and Recommendations: · Committee Members noted the forward work programme. |
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PCC Technology Assurance Framework Review - Senior Officer Response To receive the response from the Head of Economy and Digital in relation to the Technology Assurance Framework Review. Minutes: Documents Considered: · Verbal assurance response from the Head of Economy and Digital.
Background: · The Head of Economy and Digital provided background information to the Committee regarding the Technology Assurance Framework Review undertaken by SWAP. · Previously a traditional assurance approach was taken across different aspects of the ICT service. Due to the speed of technological development in this sector, discussions were undertaken with SWAP to determine how the ICT service could improve the audit and to ensure assurance was provided. · The Technology Assurance Framework was a new framework and method of ICT audit being implemented by SWAP, with some limited testing across other local authorities. There was therefore learning on both sides as the organisation and with SWAP, with how it would work and progress. · The Head of Economy and Digital noted that SWAP officers had been incredibly supportive with regard to navigating the new audit process and how it would provide assurance going forward. · The Executive Management Team had been briefed on the assessment and were assured of the need to complete the whole IT audit work programme which was being planned. The Assurance Framework did not identify issues at the highest level, however SWAP wanted to investigate the ICT strategy further. · The Head of Economy and Digital reported that the service had moved to a more transformative approach for digital strategy, a digital transformation framework whilst ensuring that day-to-day elements were robust and changed as part of the digital transformation process. · Issues that were highlighted included: o The monitoring of policy compliance. Policies were normally sent to employees through software at the front end which provided assurance that policies had been read and agreed to before the computer could be accessed. o There were conflicts within the policies for example, employees had to agree to not access gambling sites using their Council-provided equipment, yet the Council operated a lottery so some service users may need access to such gambling sites, therefore access was granted in those situations. o Where there were concerns around whether employees had agreed to policies, a report could be produced which would contain which policies had been agreed to. · Regarding the Data Centre Review, the Head of Economy and Digital confirmed that the review could go ahead and had already started. · Work had also commenced around the detailed review of the ICT strategy. · Audit Wales had also conducted work across Wales on digital strategies, on which SWAP were liaising with Audit Wales to establish the lessons learnt and whether there was a need to continue via internal audit, to prevent possible duplication.
Issues Raised by the Committee and Responses Received:
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Q1 Strategic Risk Report PDF 78 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Additional documents:
Minutes: Documents Considered: · Quarter 1 (2023) Strategic Risk Report. · Powys County Council Strategic Risk Register.
Background: · The Strategic Equalities and Risk Officer explained that the purpose of the report was to provide an update of the Council’s strategic risk register, which covered April, May and June 2023. · There were 15 risks listed on the Strategic Risk Register with their details contained within Appendix A in addition to mitigating actions. · Appendix B contained the heat map, the key points were that Children’s Services would like to de-escalate strategic risk CS0091. · As per the Risk Management Framework, any risk scored 15 or above must be considered for escalation by the Senior Leadership Team. o There were no proposals to escalate either of the two risks listed. · Strategic Risk PCC0003 had been closed. ·
Issues Raised by the Committee and Responses Received:
Actions: · To receive an answer to the question raised by the Committee Member regarding strategic risk ASC0064 from the Director of Social Services and Housing. · To review the context and expiry of the Income Management policy.
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Exempt Item To consider passing the following Resolution:
RESOLVED to exclude the public for the following item of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
The Monitoring Officer has determined that category 3 of the Access to Information Procedure Rules applies to the following item. His view on the public interest test (having taken account of the provisions of Rule 14.8 of the Council's Access to Information Rules) was that to make this information public would disclose information relating to the financial or business affairs of any particular person (including the authority holding that information).
These factors in his view outweigh the public interest in disclosing this information. Members are asked to consider these factors when determining the public interest test, which they must decide when considering excluding the public from this part of the meeting. Minutes: A resolution to exclude members of the public from the meeting was considered due to the following agenda item’s report containing commercially sensitive information. The Chair agreed and the resolution was proposed by Lay Member J Brautigam and seconded by County Councillor P Lewington. It was therefore:
RESOLVED to exclude the public for the following item of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007). |
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Q1 Strategic Risk Closed Report To receive and consider a closed report of the Cabinet Member for Finance and Corporate Transformation. Minutes: The Quarter 1 Strategic Risk Closed Report was received and considered by Committee Members in private, the report sought approval from the Cabinet to escalate a single risk. The Chair requested assurance from Senior Officers, which was to be received at a future Governance and Audit Committee meeting. |