Venue: Committee Room A - County Hall, Llandrindod Wells, Powys. View directions
Contact: Lisa Richards 01597 826371
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APOLOGIES To receive apologies for absence. Minutes: Apologies for absence were received from County Councillors |
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DECLARATIONS OF INTEREST To receive declarations of interest from Members. Minutes: There were no declarations of interest. |
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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 of party whips. |
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To authorise the Chair to sign the minutes of the last meeting held on 12 September 2018 and of the joint meeting with the Finance Scrutiny Panel on 24 October 2018 as correct records. Additional documents:
Minutes: The Chair was authorised to sign the minutes of the previous meeting, held on 12 September 2018, together with the joint meetings of Audit Committee and Pensions and Investment Committee on 6 September and Audit Committee and the Finance Scrutiny Panel on 24 October 2018, as correct records. |
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WAO - Annual Improvement Report PDF 724 KB To consider the WAO’s Annual Improvement Report. Additional documents:
Minutes: Documents: · WAO Annual Improvement Report 2017-18 · Report of the Leader and Deputy Leader · Draft Annual Performance Report 2017-18
Discussion: · The report provided a summary of work completed in the Audit year 2017/18 · There was an acknowledgement that the Council had been through a difficult period and this was reflected in the report · The Statutory Recommendation that had been issued was reiterated · The key messages were that the Council had to move forward and do so quickly and with pace and energy · An Audit Programme for the year has been agreed and reports will come forward in due course · The WAO were questioned as to why there were no recommendations aligned to the comments regarding bullying and harassment. The Fairness and Dignity at Work Policy had been withdrawn. However, there had been a previous report on Whistleblowing and the Council had improved from the time of that recommendation. An existing recommendation is in place and this provides the mechanism for review at any time. The WAO suggested that the Committee may wish to consider inviting an officer to attend Committee to report on progress made. Clarity was required as to whether the Policy included Members. · The Committee asked the Portfolio Holder what progress had been made in dealing with the Statutory Recommendation – the Portfolio Holder confirmed that a considerable amount of work had already taken place and budget planning had begun immediately the current year’s budget had been approved. A Panel comprising himself, the Leader, Chief Executive and Head of Financial Services was reviewing all savings proposals. Challenge had been provided and some proposals were being reviewed by the service. Eventually, these proposals would be considered by the Finance Scrutiny Panel. · The WAO commented that considerable effort had been put into the Medium Term Financial Strategy (MTFS) but there was a need to see a longer term view. A short term outlook did not encourage longer term planning. The Council must address the transformation programme to address the medium and longer term. · It was noted that the report was historic and it was questioned how this report could help the Audit Committee. The Portfolio Holder advised that the Authority responds to individual reports as they are released and the WAO will form a view on those responses. · Two amendments to policies were benefitting the Authority. Firstly, adjustments to the Minimum Revenue Policy and secondly the use of Capital Receipts. These are being used to support the revenue budget in the next two to three years but it was essential that planning take place to address the period beyond that. It was suggested that the use of these funds should be directed towards transformation projects. The Head of Financial Services responded that robust plans had been in place which had been affected by the requirement for significant investment in social care late in the previous year. It was critical that a four to five-year plan be developed which was robust in the longer term and work would commence as soon as ... view the full minutes text for item 5. |
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WAO - Review of Scrutiny PDF 126 KB To consider the WAO Review of Scrutiny together with the Management’s response. Additional documents: Minutes: Documents: · WAO Overview and Scrutiny – Fit for the Future? · Management Response
Discussion: · The review of scrutiny had been considered by the Joint Chairs and Vice Chairs Steering Group and both scrutiny committees · The findings of the report were recognised and the Authority must now move forward · A revised scrutiny structure was currently being considered. The Scrutiny Development Board and Democratic Services Committee had devised and amended a structure which would be considered at a Member seminar in the new year and by County Council in January 2019. · The dates contained within the Management Response will be amended by one month to accommodate the need for wider consultation of the new structure before consideration by County Council · Members asked whether more use could be made of Skype for meetings. The Scrutiny Manager advised that the Welsh Government was addressing the issue of remote attendance and legislation (Local Government and Elections (Wales) Bill) was expected in February 2019. However remote attendance was restrictive under current arrangements. Skype and the congress system were not compatible which added to the challenges. Working Groups can be carried out via Skype ad further development will be taking place. · It was suggested that information needed to be collected from local, ward meetings to inform the process and ensure public engagement. There was a need to be more innovative although resourcing issues were acknowledged. · Good forward work programming and an appropriate balance between pre and post decision scrutiny wasalso required
Outcomes: · The Management response to the WAO report was agreed subject to amendment of the dates to allow for wider consultation on new arrangements
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To consider the report of the Head of Financial Services. Minutes: Documents: · Report of the Head of Financial Services
Discussion: · The Statement of Accounts had been published ahead of the deadline · Next year, the draft Accounts will need to be available by 15 June and the final Statement of Accounts published by 15 September. The following year, the dates will be brought forward again with draft Accounts required by the end of May and final Accounts by the end of July. · A new finance system is to be implemented by year end which will add to the challenges of early closing
Outcomes: · The report was noted
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Financial Overview and Forecast as 30 September 2018 PDF 222 KB To consider the report of the Portfolio Holder for Finance. Minutes: Documents: · Report of the Portfolio Holder for Finance
Discussion: · A larger overspend at year end was being forecast at the end of September than had previously been reported · The Committee sought assurance around savings proposals · There has been a relaxation in the use of capital receipts and officers were asked if it was possible to use these retrospectively for the period of the Directive? £2.6M had been used and this was made up of both in year and retrospective receipts. A further question was raised that if an asset had been disposed of since April 2016, would this have been capitalised or accounted for in a different way. A report would be submitted to Cabinet shortly. The WAO commented that it would be difficult to go back to previous years to alter the way in which the receipt was accounted for and that the guidance should be checked. · The Committee had been advised that a Capital Receipts Policy would be available for the next meeting of the Finance Scrutiny Panel – Members asked whether this would detail potential capital receipts and actions for asset disposal including the County Farms Estate. It was confirmed that the Farms Policy had sufficient flexibility for assets to be considered for disposal There was also a general policy and it must ensure that guidance is adhered to. The Portfolio Holder stated that policies should be flexible. However, using capital receipts now would lead to higher borrowing in the long term. There would be an impact on the revenue budget and Members should be aware of the consequences. It was noted that the revised Minimum Revenue Policy would have a similar effect. · Members were concerned at the projected reduction in the level of reserves. The level was still within the limits agreed by Cabinet. · The report details budget levels by directorate but transformation costs are attributed to central activities – will this always be the case? The Head of Finance informed Members that the Management of Change budget was held within central activities and would be reported there for the time being until such time as transformation occurs within services · The Committee remain concerned that balancing the budget has been due to windfalls and that this cannot be relied upon. There has been a reduction in the projected overspend but this is due to an injection of funds. The projected overspend within Children’s Services has increased by a further £500K. Schools delegated budgets are also causing concern and concern was expressed that parents are being relied upon to fund activities within schools. · The Portfolio Holder for Finance reminded the Committee that the Funding Formula is being reviewed – there may be some schools who will win, others may lose. Transitional arrangements are to be put in place. · The WAO noted the discussion regarding the budget by the Finance Scrutiny Panel but reminded the Committee that the long term position was key. Reserves can only be spent once. The need for pace and change was reiterated. The ... view the full minutes text for item 8. |
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To consider the report of the Portfolio Holder for Finance. Minutes: Documents: · Report of the Portfolio Holder for Finance
Discussion: · At the end of September, expenditure was 50% (including commitments) · In previous years, expenditure has lagged behind target but this year expenditure is on target and will continue to be monitored · The Committee noted that expenditure on WHQS was only 25% and this raised concerns of poor performance
Outcomes: · The report was noted
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To consider the report of the Risk Management Officer. Additional documents:
Minutes: Documents: · Report of the Risk Management Officer · Corporate Risk Register · Heat Map · Risk Assessment Matrix
Discussion: · The report covered the first quarter of 2018/19 · It was acknowledged that there were too many corporate risks. There were currently 28 which was unmanageable · Some of these risks would be more appropriately dealt with at a service level · The Risk Register has been reviewed and a report will be submitted to Cabinet for approval · It is proposed to rebrand the Register as the Strategic Risk Register · An automated system is being rolled out with training being provided. There will be training for Members who will have access to live data at any given time · The Committee had previously discussed Risk ASC19 which was deemed to be catastrophic. The increase in older persons may not be reflective of placements required. Whilst the difficulties in recruiting are known, this will not be in the current year. Therefore, the Committee considered that the risk was not catastrophic. · The issue of recruitment was one for the whole organisation. Other organisations were not experiencing the difficulties in recruitment and further evidence was required. · A number of risks had not moved and the Committee may wish to question the mitigating measures that have been put in place · Members also commented on Brexit. The WAO reported that the Auditor General would be undertaking some work on the preparedness of Local Authorities for Brexit.
Outcomes: · That the report be noted
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New Finance System Project Implementation To receive a verbal update on the implementation of the new finance system. Minutes: The Deputy Head of Financial Services briefed Members on progress achieved in implementing the new finance system:
· Purging of data on the current system is nearly complete · A test system is up and running · The current year’s budget has been loaded · Workshops with officers will commence shortly · The functionality of the system will be tested commencing in December · The new system will be set up after Christmas · A strategy for communication to end users has been devised together with general communication to all staff |
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Treasury Management PDF 182 KB To consider the report of the Portfolio Holder for Finance. Additional documents:
Minutes: Documents: · Report of the Portfolio Holder for Finance
Discussion: · There was little change to report · The report was in line with reporting requirements and outlines the strategy followed · The Authority is well within borrowing limits · In response to a question regarding KPIs, the Head of Financial Services reported that the Right First Time Project was ongoing in an attempt to drive out inefficiencies. Although there have been improvements, this was not yet to a satisfactory level. The financial penalties of inaccuracies will be imposed on those service areas. It was estimated that currently £100K of staff time was used each year to correct errors in service areas.
Outcomes: · The report was noted
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To consider the forward work programme. Minutes: Documents: · Work Programme as at 6 November 2018
Outcomes: · The work programme was noted
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Correspondence To consider any items of correspondence which, in the opinion of the Chair, is of sufficient urgency to warrant consideration. Minutes: There were no items of correspondence. |