Agenda and minutes

Venue: Committee Room A - County Hall, Llandrindod Wells, Powys. View directions

Contact: Lisa Richards  01597 826371

Items
No. Item

A1-2016

APOLOGIES

To receive apologies for absence.

Minutes:

Apologies for absence were received from County Councillors L R E Davies, S Davies and W D Powell.

A2-2016

DECLARATIONS OF INTEREST

To receive declarations of interest from Members.

Minutes:

There were no declarations of interest.

A3-2016

DISCLOSURE OF PARTY WHIPS

To receive disclosures of prohibited party whips which a Member has been given in relation to the meeting in accordance with Section 78(3) of the Local Government Measure 2011.

(NB:  Members are reminded that under Section 78 Members having been given a prohibited party whip cannot vote on a matter before the Committee.)

 

Minutes:

There were no disclosures.

A4-2016

MINUTES pdf icon PDF 100 KB

To authorise the Chair to sign the minutes of the last meeting held on 4 February 2016.

Minutes:

The Chair was authorised to sign the minutes of the previous meeting, held on 4 February 2016, as a correct record.

A5-2016

WAO

A5-20161

Powys County Council Statement of Accounts 2014-15 pdf icon PDF 257 KB

To receive the revised opinion and certificate concluding last year’s audit.

Minutes:

Documents:

·         WAO letter to Strategic Director, Resources

 

Issues:

·         2014/15 accounts could not be certified due to the ongoing review into the letting of the domiciliary care contract

·         This had been concluded and receipt of the letter formally concluded the 2014/15 Financial Statements

 

Outcome:

·         That the letter be noted

A5-20162

Assessment of Financial Resilience pdf icon PDF 178 KB

To consider the report of the WAO and the Authority’s response.

Additional documents:

Minutes:

Documents:

·         Financial Resilience Assessment

 

Issues:

·         A national study had been undertaken with authorities receiving individual feedback

·         Three areas had been considered – financial planning, financial control and financial governance

·         An overall rating of ‘medium’ risk had been given

·         An Action Plan would be produced in due course

 

Discussion:

·         The WAO had acknowledged the improved approach taken by the Authority

·         The Finance Scrutiny Panel (FSP) had started to have an impact

·         Scrutiny of performance was inadequate. The  Committee noted that finance and performance would be  vested in one Portfolio Holder and hoped that this would improve the situation

·         The WAO acknowledged the difficult circumstances in which budgets were being set and noted that traditional budget setting arrangements may no longer be adequate.  Investment in the FSP was beginning to show improvements but this should continue to ensure rigorous scrutiny and challenge is ongoing

·         Impact assessments had been identified as good practice and the benefits of ensuring rigorous assessment were noted

·         Members commented that whilst some service areas had submitted clear and robust impact assessments, others required improvement.  The committee would wish to see the initiative continued and improved to increase the usefulness of the documents

·         It had previously been acknowledged that scrutiny of finance and performance needed to be strengthened.  Proposals for combined reporting are under discussion

·         The WAO were asked how Powys ranked against other authorities – it was reiterated that Powys had been classified as ‘medium’ showing that there is more work to do but that there were no concerns that Powys was not attempting to address improvements.  There was no precise definition for ‘medium’.

·         The FSP had considered the report at a meeting on 11 April and welcomed the acknowledgement the Panel had received.  The Panel noted the Business Partner arrangement that was ongoing with the BBC but remained concerned that there were capacity issues which may hinder ongoing work.  It had been acknowledged for some time that the Audit Committee’s Finance and Performance working group had not been as effective as hoped but that the committee and working group structure was currently under review.  The need for further improvements to impact assessments in some areas had also been commented on

·         The Strategic Director was asked whether the risk register would influence the action plan in the response to the WAO.  Key elements were being brought together and, whilst there was better correlation between the register and strategic plans, there is not yet a complete overlap.

·         The Portfolio Holder for Finance was asked whether outstanding savings from 2014/15 had been achieved.  Savings had not been met in the schools service and the Portfolio Holder is awaiting details of plans to cover the shortfall.  A further £31K had not been achieved in relation to lease cars but this would be rectified over the three year period of the lease

·         The Chair reported Joint Chairs’ Steering Group concerns in relation to the Commissioning and Procurement Board

·         The WAO was asked whether it thought the Council was positioned to assess the  ...  view the full minutes text for item A5-20162

A5-20163

Pension Fund Audit Plan pdf icon PDF 295 KB

To consider the WAO 2016 Audit Plan in respect of the Pension Fund.

Minutes:

Documents:

·         2016 Audit Plan

 

Issues:

·         Financial audit only

·         Aims to conduct work to achieve an opinion that the Pension Fund accounts are free from misstatement or error

·         Key risks are identified and proposed responses included

 

Outcome:

·         Noted

A5-20164

Audit Plan pdf icon PDF 460 KB

To consider the WAO 2016 Audit Plan for Powys County Council.

 

Minutes:

Documents:

·         2016 Audit Plan

 

Issues:

·         Financial  and performance audit

·         Statutory duty of the Auditor General for Wales and discharges responsibilities under the International Standards of  Auditing

·         The principles are the same as the Audit of the Pension Fund but with different risks identified

·         Risks identified include the change to the minimum revenue position, transfer of leisure services and ongoing themes identified in the previous year.

·         Grant claims work would also be undertaken and it was expected that this would be for between 13 and 16 claims

 

Discussion:

·         Members noted that there had been difficulties with continuity of WAO staff during the last audit necessitating the authority’s staff to repeat work.  The WAO assured the Committee that there would be continuity throughout the audit with the core element remaining consistent.

·         Meetings at officer level have taken place to consider options for improvement on both sides.  Issues identified will lead to improvements. 

·         The WAO were asked if sampling would take place at the same level as the previous audit.  This would be determined by the risks identified and the audit approach.

 

Outcome:

·         Noted

 

 

County Councillor D R Price left the meeting at 11.20

A5-20165

Letting of domiciliary care contract pdf icon PDF 105 KB

To consider the Cabinet report and Action Plan developed following the review into the letting of the domiciliary care contract.

Additional documents:

Minutes:

Documents:

·         Report of the Portfolio Holders for Adult Social Care and Finance and Performance

·         Original and updated Action Plans

·         Learning Document – Adult Social Care

 

Issues:

·         The Strategic Director, People was responsible for one element of the Action Plan and the Strategic Director, Resources responsible for two elements

·         The report had been accepted by Cabinet

·         The Action Plan had been updated and circulated to Members

 

Discussion:

·         Names against some actions still needed to be updated

·         Members expressed concerns that commissioning was being adequately dealt with – not only the initial commissioning but the managing and monitoring of projects.  The Strategic Director, Resources informed the Committee that the Authority had taken steps to strengthen commissioning and a Commercial Services Team was now in place.  This would ensure greater engagement in the future.  He went on to say it was essential that sufficient resource was available to ensure continuing improvements and deliver change.  Senior managers had also developed a greater awareness of commissioning.

·         A comment was made that both the Chief Executive and Leader had been leading when the initial contract had been let, and were now responsible for implementing corrections.  A query was raised whether there would be any external oversight.  It was noted that the commissioning of the domiciliary care contract was a corporate issue and that Management Team had considered best practices to ensure that there would not be a reoccurrence. 

·         The Chair of People Scrutiny Committee had concerns that resources to remedy the domiciliary care issue had disadvantaged other projects such as the re-letting of the residential care contract.  He asked whether there was sufficient resilience and resource within the Council to deal with these issues.  The Strategic Director, Resources responded that there was sufficient resource and acknowledged the delays in taking the contract forward.  Lessons must be learned.  The Senior Strategic Commissioning Manager informed the Committee that commissioning over the next two to three years had been prioritized and resourced appropriately. A team is being put together to support the Adult Social Care Commissioning Team to ensure the residential care contract is delivered on time. This additional resource had been provided to cover not just the reletting of the BUP contract but more extensive work to address provision in both the private and voluntary sectors over the next 25 to 30 years. The Head of Transformation noted that there was no evidence to suggest that better terms could have been negotiated if the contract had been dealt with earlier.  He reassured Members that work was in hand to ensure planning was in place for April 2017.

·         The Committee noted the references to scrutiny and were of the opinion that the matter should have been considered by scrutiny earlier in the process

·         The Chair informed the Committee that concerns regarding challenge of the Commissioning and Procurement Board had been raised and sought assurance that the Board were fully aware of their role and responsibilities

·         It was acknowledged that this had been a wider corporate failure and not just  ...  view the full minutes text for item A5-20165

A6-2016

Corporate Assessment pdf icon PDF 175 KB

To receive a letter from the auditor General for Wales relating to the Local Government studies programme and 2016-17 audit programme.

Minutes:

Documents:

·         Local Government studies programme and 2016-17 performance audit programme

 

Issues:

·         A full corporate assessment would not now take place as planned

·         Unprecedented change has taken place including austerity measures, the demise of the Local Government Measure 2009 and the Future Generations and Wellbeing Act.

·         The WAO had also had budgets reduced and this would affect the improvement programme

·         All authorities will be subject to three,  themed studies

o   Financial Resilience – a stronger focus on savings plans and initiatives alongside the content and robustness of those plans

o   Governance – decision making and scrutiny particularly around the setting of the budget

o   Transformational Change – an expert panel is scoping this element and it is anticipated that this study will not take place until the last quarter

·         The studies will identify areas where further assurance is required for those authorities that have not yet completed a full corporate assessment.  This could potentially focus on leadership and vision and integration

·         The Portfolio Holder for Finance and Performance reported that a task group had already been established to identify weaknesses.  Work undertaken in preparation for a full corporate assessment would continue to ensure a joined up approach was taken.  He considered this to be good practice irrespective of the audit regime.

 

Outcome:

·         The change to the performance monitoring framework was noted

 

A7-2016

Risk Management pdf icon PDF 83 KB

To consider the report of the Business Continuity and Risk Management Officer.

Additional documents:

Minutes:

Documents:

·         Report of the Business Continuity and Risk Management Officer

·         Heat Map

·         Risk Register

·         Risk Assessment Matrix

 

Issues:

·         Single Integrated Impact Assessments (SIIAs) had analysed risks

·         Feedback from Members and officers had been received and templates would be revised.  Would now be known as Impact Assessments (IAs)

·         Training of officers and Members responsible for signing off IAs to be undertaken to ensure better information is included

·         IAs of savings for 2017/18 are currently being completed and will be completed by mid-June – these will then feed into budget planning meetings

·         Training regarding risk assessment had been undertaken with Members immediately prior to the Committee.  This had also been delivered to Cabinet and will be rolled out to remaining Members in due course.

 

Discussion:

·         The training session was welcomed by Members

·         Members again raised the issue that some risks were owned by both the Leader and Chief Executive and queried where accountability lay.  All officers are accountable and measures are in place to ensure this occurs.  It was noted that the WAO had oversight of the Authority and that the Chief Executive was subject to a rigorous annual review by an external partner and Group Leaders.  The One Powys Plan has shared objectives and there will be ongoing discussions with the WAO regarding arrangements.  Assurance will be gained through the three themed studies that are replacing the Corporate Assessment.

·         Improvements to the risk management process were welcomed but Members sought assurance regarding the robustness of some of the plans behind risk management.  These were always discussed with Heads of Service and should be living documents subject to regular review

·         Internal Audit had conducted a review of Risk Management – the report will be available to Members in due course and may address the  issues raised

 

Outcome:

·         Noted

A8-2016

Scrutiny of Reserves pdf icon PDF 399 KB

To consider the report of the Professional Lead for Finance.

Additional documents:

Minutes:

Documents:

·         Report of the Professional Lead, Finance

·         Statement of reserves

·         Report of the Portfolio Holder for Finance

·         Reserves Policy

 

Issues:

·         Additional information for Members following on from a document considered at the last meeting regarding scrutiny of reserves

·         A Reserves Policy was agreed by Cabinet in 2015

·         Monthly monitoring reports are submitted to Cabinet

 

Discussion:

·         Further information would be provided regarding usable and unusable reserves

·         The Portfolio Holder for Finance reported that the budget was expected to be balanced for 2015/16 and the previously identified use of reserves would no longer be required.  He believed it was unacceptable to maintain reserves at 4% while services were being cut – there was an expectation that the reserves level would be between 3 and 3 ½ % when the accounts were finalized

·         A £1.019M Budget Management Reserve was maintained to mitigate any failures to achieve savings.  This could be rolled forward to the current financial year.

 

Outcome:

·         A further report on the reserves position would be submitted following the closure of accounts

A9-2016

Closure of Accounts pdf icon PDF 66 KB

To consider the report of the Profession Lead, Finance.

Additional documents:

Minutes:

Documents:

·         Report of the Professional Lead for Finance

 

Issues:

·         Project Team meets fortnightly throughout the year to resolve issues as they arise

·         Phase 2 will be completed by the end of April

·         A meeting with the WAO audit team has already been held and proved to be beneficial

 

Discussion:

·         Officers were asked whether the Authority would be in a position to deliver an earlier completion date as required by Welsh Government – the timescale will be shortened in 2018/19 and again in 2020/21.  New internal targets have been implemented and service accounts will be closed by 29 April

·         As the authority devolves services, contracts are clear with regard to future timescales

 

Outcome:

·         The report be noted.

A10-2016

Treasury Management pdf icon PDF 162 KB

To consider the report of the Portfolio Holder for Finance.

Additional documents:

Minutes:

Documents:

·         Report of the Portfolio Holder for Finance

·         Credit rating list

 

Issues:

·         Interest rates were not changing

·         Current investment rates remained low but the lower level for borrowing was more important

·         The Capital budget is more closely aligned to the Revenue Budget

 

Discussion:

·         The Local Authority Mortgage Scheme cannot be extended.  Members were of the opinion that this was a lost opportunity given the low wage economy and high property prices

 

Outcome:

·         The report be noted

 

A11-2016

WORKING GROUPS pdf icon PDF 57 KB

To consider the scrutiny summary report of the Internal Audit Working Group.

Minutes:

Documents:

·         Scrutiny summary report – Internal Audit Working Group

 

Issues:

·         Delivery of S106 Agreements had been disjointed across the Authority – following the Internal Audit Review Members were pleased to note that Planning had actively developed a co-ordinated approach to improve delivery of S106

·         Procurement of Portable IT Equipment – the Group had asked that a letter to be sent to schools regarding the purchase of equipment outside of a corporate contract to be strengthened.  The Chair reminded Members that many of them were LEA governors and asked that if the delegated budgets were to be used to purchase equipment, that every effort be made to ensure that such items were compatible with corporate systems.

 

Outcome:

·         A copy of the letter being sent to schools to be copied to all Members

A12-2016

WORK PROGRAMME pdf icon PDF 69 KB

To consider the forward work programme and whether any additional items should be included.

Minutes:

Documents:

·         Work Programme

 

Outcome:

·         The work programme be approved

A13-2016

Joint Chairs' Steering Group pdf icon PDF 119 KB

To receive the notes of the Joint Chairs’ Steering Group held on 18 March 2016.

Minutes:

Documents:

·         Notes of the Joint Chairs’ Steering Group held on 18 March 2016

 

Outcome:

·         Noted

A14-2016

Correspondence

To consider any correspondence which, in the opinion of the Chair, is of sufficient urgency to warrant consideration.

Minutes:

There were no items of correspondence.