Agenda and minutes

Venue: Council Chamber, Town Hall, Saturday Market Place, King's Lynn PE30 5DQ. View directions

Contact: Wendy Vincent, Democratic Services Officer, 01553 616377, Email:  wendy.vincent@west-norfolk.gov.uk 

Items
No. Item

A42

Appointment of Vice-Chairman

Minutes:

RESOLVED:  Councillor Mrs J Collingham  be appointed Vice-Chairman for the meeting.

A43

Apologies

Minutes:

An apology for absence was received from Councillor M Hopkins.

A44

Minutes pdf icon PDF 605 KB

To approve the minutes from the Audit Committee held on 4 September 2017.

Minutes:

The minutes of the Audit Committee held on 4 September 2017 were agreed as a correct record and signed by the Chairman.

A45

Declarations of Interest

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 any item or simply observing the meeting from the public seating area.

Minutes:

There were no declarations of interest.

A46

Urgent Business Under Standing Order 7

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

Minutes:

There was no urgent business.

A47

Members Present Pursuant to Standing Order 34

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 to the Chairman

Minutes:

There were no Members present under Standing Order 34.

A48

Chairman's Correspondence (if any)

Minutes:

There was none.

A49

Training Session for All Members - Budget pdf icon PDF 876 KB

Minutes:

All Members were invited to attend for this item.

 

The Group Accountant gave a presentation on the budget process (copy attached) and responded to questions relating to:

 

·         Cost Reduction Programme.

·         Balanced Budget.

·         Reserves.

·         The Walks Café – Capital Expenditure:  replacement of coffee machine.

·         Central Service recharge.

·         September/October 2017 Budget Monitoring Report.

·         Zero based budget.

·         The process for reviewing the Council’s budget.

·         Services the Borough Council deliver for other Councils.

·         Services the Borough Council bought in from other Councils.

·         Increase in interest rates and the potential impact on the Borough Council.

·         Overnight banking.

·         Importance of Regeneration to attract businesses to King’s Lynn.

·         Borough Council’s Investment Portfolio.

·         Business Rates Retention Scheme.

 

A50

Annual Audit Letter for year ending 31 March 2017 pdf icon PDF 3 MB

Minutes:

D Cooke, Ernst and Young presented the Annual Audit Letter for the year ending 31 March 2017 and reminded the Committee that the audit results had been presented to Members at the 31 July 2017 meeting.

 

The Committee were invited to ask questions, a summary of which is set out below.

 

In response to a question regarding additional fees, D Cooke explained that Ernst and Young were currently liaising with the Executive Director to agree the level of additional fees.

 

In response to questions on no material weaknesses in controls or evidence of material management being identified and the controls in place, D Cooke, Ernst and Young drew the Committee’s attention to page 41 of the Agenda and explained that all audits were managed with robust controls and therefore no material weaknesses had been identified and that the Council was in a strong position.

 

In response to questions regarding the Council’s building projects in future years, D Cooke, Ernst and Young explained that the External Auditors only audited what was presented for the current audit.  However, it was noted that the Council’s future building projects would form part of the plan going forward.

 

The Leader, Councillor Long explained that the Council would receive a capital receipt for every house that was sold.  However, if in the future all houses were not sold then the Council would have the option to consider renting properties which would generate an income stream.

 

The Chairman, Councillor Pope thanked Dan Cooke for attending and presenting the Annual Audit Letter.

 

RESOLVED:  The Audit Committee noted the Annual Audit Letter for year ending 31 March 2017.

A51

Business Continuity - Annual Update pdf icon PDF 179 KB

Minutes:

The Business Manager presented the annual update report which outlined the current position of the Council’s Business Continuity arrangements, summarised progress made since the last update and described work that is planned to be undertaken over the coming months.

 

Members were reminded that the Council had a responsibility as a Category 1 responder under the Civil Contingencies Act 2004 to develop and maintain plans to ensure that, as far as is reasonably practicable, key services could continue to be performance in the event of a disruption or emergency.

 

The Business Manager responded to questions and comments relating to:

 

·         Borough Councillor’s role.

·         Response and Recovery Phases.

·         Business Continuity Plans for the loss of the Town Hall.

·         Itinerary of items  in the documents store at the Town Hall.

·         ICT back up arrangements.

·         Consideration of using “the Cloud” for storage offsite.  It was highlighted that the “Cloud” did not fit all service requirements and was therefore considered on a case by case basis.

 

The Chairman, Councillor Pope thanked the Business Manager for attending and presenting the annual report.

 

RESOLVED:  1) The Audit Committee reviewed the progress made and endorsed the approach being taken to the Council’s Business Continuity arrangements.

 

2) The Audit Committee confirmed it wished to receive further annual updates on the topic as required.

A52

Corporate Risk Register Monitoring Report pdf icon PDF 86 KB

Minutes:

The Policy, Performance and Personnel Manager presented the report which outlined the changes to the Corporate Risk Register since the last monitoring report in April 2017.  The report gave details of the risks falling into the ‘Very High’ category and the associated work being progressed to mitigate the effects.

 

The Committee was advised that two risks had been removed from the register (section 2.3) and seven new ones had been added (section 2.4).  The risk scores for four entries had been changed as part of the review undertaken.

 

In response to questions, relating to 1.2 – Cost Reduction Programme (staff morale and Members expectations), the Policy, Performance and Personnel Manager explained that the Council had an annual training budget/plan.  Each employee received an annual appraisal at which any training needs were identified.  It was highlighted that the Council had a success track of redeploying staff dependent on the nature of the role, an example was given in that administrative posts were often redeployed into alternative roles within the Council.

 

Following a question relating to 1.4 – Due Dilgence and the score of unlikely instead of Possible, the Policy, Performance and Performance Manager explained that the Chief Executive and Executive Directors identified savings and how services could be delivered more efficiently.   It was noted that regular monitoring was undertaken by both Management Team and Extended Management Team and where appropriate actions were taken.  The Executive Director advised that as part of the budget monitoring exercise, the approach of identifying savings at an early stage enabled the Council to transfer any savings to the General Fund to mitigate any risk to enable the Council to balance its budget to 2021.  It was highlighted that the budget position was reviewed on an ongoing basis.

 

In response to questions relating to 1.9 – Capacity/staff levels, the Policy, Performance and Personnel Manager explained that in some operational areas of the Council there both busy and quieter periods during the year.  The Council had no rules to enforce when staff took annual leave, but the Council adopted a flexible approach but encouraged staff to take a minimum amount of holiday during the busier periods, dependant on the needs of the service.  It was noted, however, that service managers could refuse annual leave requests.

 

The Policy, Performance and Personnel Manager responded to questions relating to 1.15 – Pension Fund.  The Executive Director explained that non-council staff were currently able to join the pension scheme and gave an example of the arrangements for Alive Manager/Alive Leisure and added that this issue could be raised with them at a future meeting.  The Executive Director informed the Committee that the current arrangements had been set up with Alive Management/Alive Leisure to protect existing staff when the new arrangements were implemented.

 

Following questions on 1.16 Business Rates/businesses cease operation, the Policy, Performance and Personnel Manager explained that the Borough Council had a Business Development and Marketing Officer who worked closed with businesses in the Borough and would therefore liaise with a  ...  view the full minutes text for item A52

A53

Mid Year Treasury Report pdf icon PDF 219 KB

Minutes:

The Group Accountant reminded the Committee that the Council had formally adopted the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (2011) and remained fully compliant with its requirements.

 

The Mid-Year Review Report had been prepared in compliance with CIPFA’s code of Practice, and covered the following:

 

·         A review of the Treasury Management Strategy.

·         The Council’s capital expenditure (prudential indicators).

·         An economic update for the first six months of 2017/2018.

 

In response to a question on the Local Property Investments Fund, the Leader, Councillor Long explained that the Council had purchased a bungalow in Burnham Market to use part of the garden as an access to land for future development.  Once the land had been developed, the bungalow would be sold and would therefore generate a capital receipt.

 

The Group Accountant responded to questions relating to the Investment Portfolio and the rationale for lending Moray Council at an interest rate of 0.3%.  The Group Accountant explained that where possible, the Council tried to invest on a long term basis in order to guarantee a higher interest rate.

 

In response to a question on the capital receipts target, the Executive Director explained that the target was made up of a combination of capital receipts.  The Capital Programme had been set in 2017 and now required refreshing.

 

RESOLVED:  The Committee reviewed and noted the report and the treasury activity.

A54

Internal Audit Half Year Progress Report pdf icon PDF 112 KB

Minutes:

The Audit Manager presented the report which showed the Internal Audit activity against the Strategic Audit Plan 2017/2018 and fraud work for April to October 2017.

 

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

 

·         Audit work for April to October 2017.

·         Work planned for November 2017 to March 2018.

·         Investigations work April to October 2017.

·         Issues for the Panel to consider.

·         Corporate Priorities.

·         Any other Implications/Risks.

·         Paragraph 4.7 – Total additional fraud and errors identified £69,149.48.  Work was underway to cover the errors identified.

 

The Chairman, Councillor Pope invited the Committee to ask questions on the progress report.

 

There were no questions from the Committee.

 

RESOLVED:  The Committee considered the work completed and indicated they were satisfied with the progress against the agreed plan.

A55

Budget Monitoring Reports - October and November 2017 pdf icon PDF 238 KB

Additional documents:

Minutes:

The Committee received the Budget Monitoring Reports for October and November 2017.

 

In response to question of the reimbursement of the lump sum payment to the Council’s Pension Scheme, the Executive Director explained that the Council was required to contribute an annual stabilisation payment which was reviewed every three years.  When the interest rates were low, the Council had made a three year payment in previous years.

A56

Committee Work Programme 2017/2018 pdf icon PDF 57 KB

To note the Committee’s Work Programme for 2017/2018.

Minutes:

The Committee noted the Work Programme for 2017/2018.

 

The Chairman, Councillor Pope invited the Committee to put forward any items for consideration for inclusion on the Work Programme.

 

Councillor Mrs Collingham suggested that consideration be given to a small group of Members look at one item e.g. the Corporate Risk Register and report back to the Full Committee.  Councillor Mrs Collingham added that in adopting this approach time would be saved at the Full Committee meetings.

A57

Date of Next Meeting

To note that the date of the next meeting of the Audit Committee will take place on Monday 12 February 2018.

Minutes:

The next meeting of the Audit Committee will take place on Monday 12 February 2018 at 5 pm in the Council Chamber, Town Hall, Saturday Market Place, King’s Lynn.