Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Councillors B Anota, J Collop and P Hodson.

To approve the minutes of the meeting held on 24 March 2015 (previously circulated).

The minutes of the Audit and Risk Committee held on 24 March 2015 were agreed as a correct record and signed by the Chairman.

Please indicate if there are any interests which should be declared.  A declaration of an interest should indicate the nature of the interest (if not already declared on the Register of Interests) and the agenda item to which it relates.  If a disclosable pecuniary interest is declared, the Member should withdraw from the room whilst the matter is discussed.

These declarations apply to all Members present, whether the Member is part of the meeting, attending to speak as a local Member on an item or simply observing the meeting from the public seating area.

There were no declarations of interest.

To consider any business which, by reason of special circumstances, the Chairman proposes to accept as urgent under Section 100(b)(4)(b) of the Local Government Act 1972.

There was no urgent business.

Members wishing to speak pursuant to Standing Order 34 should inform the Chairman of their intention to do so and on what items they wish to be heard before the meeting commences.  Any Member attending the meeting under Standing Order 34 will only be permitted to speak on those items which have been previously notified by the Chairman.

There were no Members present under Standing Order 34.

There was no Chairman’s correspondence.

The Committee are invited to consider the report and to make any appropriate recommendations to Cabinet.

In presenting the report, the Group Accountant explained that the report set out in summary the revenue outturn of 2014/2015 for the General Fund (council tax accounts).  The report showed details of the major differences between actual costs/income and the revised estimates for 2014/2015 reported in February 2015 monitoring report.

The Committee was advised that the accounts showed actual Borough spend of £18,781,895 which was, after the transfer to reserves, £80,445 less than the February Revised Estimate for 2014/2015.  The additional saving would be held within the General Fund balance and be carried forward to 2015/2016.

The Group Accountant explained that the Council’s continuing strategy was to identify budget savings in year, as part of the monitoring process and at year end.  The savings would then be transferred to the General Fund Balance for use in future years.

Members’ attention was drawn to the following sections of the report:

·        Final Outturn 2014/2015.

·        The major differences in the revised Estimates and the actual costs.

·        Business Rates Retention Scheme Outturn for 2014/2015.

·        General Fund Working balance.

In response to questions from Councillor Gourlay regarding capital expenditure, the Chief Executive explained that within the Central and Community Service budget, an allocation was made for Disabled Facilities Grants.  The Borough Council met the cost of adaptations in order to enable the occupier to remain living at home.  Such adaptations could include the installation of a stair lift, ramps, etc.  The Chief Executive advised that the premises, however, were not in the ownership of the Borough Council.

Following further questions from Councillor Gourlay on the advertising budget for Homechoice, the Assistant Director explained that the savings achieved had been due to using alternative methods of advertising which proved more cost effective, e.g. on line rather than in the local press.

Councillor Blunt asked for clarification on REFCUS.  The Assistant Director explained that REFCUS was Revenue Expenditure Funded from Capital Under Statute.  The Committee was informed that capital expenditure that did not result in a new or enhanced asset in the Authority’s accounts.  The Assistant Director gave an example of the Disabled Facilities Grant made to individuals which were charged to the Income and Expenditure Account and reversed out as part of the Financing Adjustment.

In response to further questions from Councillor Blunt regarding the approval process for Disabled Facilities Grant, the Chief Executive provided an overview of the process which was means tested.

In response to questions from Councillor Devereux regarding reserves, the Group Accountant explained that the Council had a Reserves policy which set out the maximum balances in reserves.  The transfer to reserves was presented to Management Team, the Audit and Risk Committee and details were included in the Monthly Monitoring Report available to all Members.  The Committee was informed that the majority of reserves were earmarked for specific projects and gave an example of resurfacing of the Council’s car parks.

Councillor Devereux asked how real savings were segregated from deferred spend.  The Assistant Director referred to the Introduction to Finance training session  ...  view the full minutes text for item AR:7

The Committee are invited to consider the report and to make any appropriate recommendations to Cabinet.

The Assistant Director presented the report and explained that the report provided details of the outturn of the 2014/2015 Capital Programme and outlined amendments and rephrasing to the spending on schemes, revising the programme for 2015/2016.  The Capital Programme outturn for 2014/2015 totalled £11,040,092 against an approved budget of £13,715,050.  It was explained that it had been necessary to rephrase a total of £3,233,350 of scheme costs to future years.  Capital receipts generated in the year totalled £667,000 of which £663,376 were useable.  Members were informed that the capital resources available to fund expenditure in 2014/2015 were detailed in section 3 of the report.

The Committee’s attention was drawn to the following sections of the report:

·        Capital Programme 2014/2015.

·        Financing of the Capital Programme 2014/2015.

·        Minimum Revenue Provision.

·        Capital Programme 2015/2018.

·        Capital Resources 2015/2018.

·        Financial Implications.

·        Risk Implications and Sensitivity Analysis.

In response to questions from Councillor Middleton regarding the useable capital receipts generated in 2014/2015 relating to the General Fund – Land, the Assistant Director referred the Committee to page 26 of the Agenda which provided details of the revised estimated capital resources for 2014/2018 updated after funding the 2014/2015 Capital Programme, and included amendments and rephrasing.

Councillor Gourlay referred to page 21 of the Agenda – budget provision of £116,760 to be carried forward to 2015/2016 to meet the cost of the on-going vehicle replacement programme and asked if existing vehicles were sold to contribute towards the replacement cost.  In response, the Assistant Director explained that the £116,760 was the replacement cost of the existing vehicles which would be purchased through unsupported borrowing.  The Assistant Director advised that if the Service Manager had indicated the vehicles could be used for a longer period than originally planned, then it was possible the replacement of the vehicles would be deferred for an agreed period.

Councillor Devereux asked how much capital spend was being deferred from 2014/2015 to 2015/2016.  In response, the Assistant Director drew Members’ attention to page 19 of the Agenda which showed details of the rephrasing of the Capital Programme 2015/2016.

Following further questions from Councillor Devereux regarding the capital spend being deferred and the impact on the precept and council tax, the Assistant Director explained that the Council’s spend was not funded by Capital, but revenue.  Capital and revenue spends were kept separate.  If the Council had an underspend, the Council would look at to invest any surplus money in short term investments.

In response to questions from the Chairman, Councillor Humphrey on unsupported borrowing as set out on page 23 of the Agenda, the Assistant Director explained that in relation to the NORA Joint Venture project the Council had borrowed funds in advance of capital receipts generated from sales.  It was noted that the Council mostly used short term borrowing.

In response to questions from Councillor Gourlay regarding Alive Leisure financing their own projects, etc. the Assistant Director explained that the Borough Council had an arrangement with the Leisure Trust in that the Council leased the  ...  view the full minutes text for item AR:8

To consider the Work Programme.

The Committee considered the Work Programme.

The Chairman, Councillor Humphrey reminded Members that they could request that items be placed on the Work Programme.

RESOLVED:  1) The Committee noted the Work Programme.

2)  A presentation on Project Management be added to the Work Programme.

To note that the next ordinary meeting of the Resources and Performance Panel – Audit and Risk Committee will take place on Tuesday 23 June 2015.

The next meeting of the Audit and Risk Committee would be held on Tuesday 23 June 2015.