Agenda for St Edmundsbury Performance and Audit Scrutiny Committee on Wednesday 29 November 2017, 5.00 pm

Agenda and minutes

Venue: Council Chamber, District Offices, College Heath Road, Mildenhall IP28 7EY

Contact: Christine Brain  Email: christine.brain@westsuffolk.gov.uk

Items
No. Item

173.

Substitutions

Any Member who is substituting for another Member should so indicate, together with the name of the relevant absent Member.

Minutes:

The following substitution was declared:

 

Councillor Susan Glossop for Councillor Jane Midwood.

174.

Apologies for Absence

Minutes:

Apologies for absence were received from Councillors Beccy Hopfensperger, Jane Midwood and Karen Richardson.

175.

Minutes pdf icon PDF 175 KB

To confirm the minutes of the meeting held on 20 September 2017 (copy attached).

Minutes:

The minutes of the meeting held on 20 September 2017, were unanimously accepted by the Committee as an accurate record and signed by the Chairman.

176.

Public Participation

Members of the public who live or work in Forest Heath are invited to put one question/statement of not more than 3 minutes duration relating to items to be discussed in Part 1 of the agenda only.  If a question is asked and answered within 3 minutes, the person who asked the question may ask a supplementary question that arises from the reply.

 

A person who wishes to speak must register at least 15 minutes before the time the meeting is scheduled to start.

 

There is an overall limit of 15 minutes for public speaking, which may be extended at the Chairman’s discretion.

 

 

Minutes:

Public participation had been undertaken within the previous informal discussions, and there had been no questions/statements from members of the public.

177.

External Quality Assessment of Internal Audit against the Public Sector Internal Audit Standards pdf icon PDF 210 KB

Report No: PAS/SE/17/026

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/030)

 

Additional documents:

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/026.

 

Members considered the report, and there being no decision required, noted the contents of the report.

178.

Mid-Year Internal Audit Progress Report 2017-2018 pdf icon PDF 208 KB

Report No: PAS/SE/17/027

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/031)

 

 

Additional documents:

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/027.

 

Members had scrutinised the report and asked questions, to which responses were provided.

 

There being no decision required, the Committee noted the contents of the Mid-Year Audit Progress Report 2017-2018.

179.

Balanced Scorecards and Quarter 2 Performance (2017-2018) pdf icon PDF 224 KB

Report No: PAS/SE/17/028

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/032)

 

 

Additional documents:

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/028.

 

Members had scrutinised the report in detail and asked questions, to which responses were provided.

 

There being no decision required, the Committee noted the Council’s performance using the Balanced Scorecards for Quarter 2, 2017-2018.

 

180.

West Suffolk Strategic Risk Register Quarterly Monitoring Report - September 2017 pdf icon PDF 220 KB

Report No: PAS/SE/17/029

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/033)

 

 

Additional documents:

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/029.

 

Members had considered the report, and there being no decision required, noted the contents of the Quarter 2 West Suffolk Strategic Risk Register Monitoring Report.

181.

Work Programme Update pdf icon PDF 140 KB

Report No: PAS/SE/17/030

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/034)

 

 

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/030.

 

Members considered the report, and  there being no decision required,  noted the contents of the report, including the additional report “Appointment of External Auditors”, to be presented to the Committee at its January 2018 meeting. 

 

182.

Building Control - Improvement Plan pdf icon PDF 461 KB

Report No: PAS/SE/17/031

(For reference purposes, Forest Heath District Council’s Report Number is PAS/FH/17/035)

 

 

Minutes:

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/031.

 

Members had scrutinised the report and there being no decision required, the Committee noted the contents of the report. 

 

 

183.

Ernst and Young - Annual Audit Letter 2016-2017 pdf icon PDF 208 KB

Report No: PAS/SE/17/032

Additional documents:

Minutes:

The Committee received Report No: PAS/SE/17/032, presented by Mark Hodgson, Associate Partner (Ernst and Young), which updated members on the outcome of the annual audit of the 2016-2017 financial statements by Ernst and Young (EY) as detailed in their Annual Audit Letter 2016-2017, attached as Appendix 1 to the report.  The letter was for information, and confirmed the completion of the audit of the 2016-2017 financial statements, and was one of the best audit letters he had issued.

 

No significant issues were noted by EY, therefore the planned audit fee of £43,767 for the year remained unchanged.  Work on the certification of claims and returns was due for completion in November 2017 and the results of this work, along with the final fee would be reported in the Annual Certification Report.

 

The Committee thanked EY and officers for their hard work in completing an outstanding audit for 2016-2017, which was very good news.

 

There being no decision required, the Committee noted the contents of the report.

 

 

184.

Financial Performance Report (Revenue and Capital) Quarter (2017-2018) pdf icon PDF 262 KB

Report No: PAS/SE/17/033

Additional documents:

Minutes:

The Committee received Report No: PAS/SE/17/033, which set out the financial performance for the second quarter of 2017-2018 and forecasted outturn position for 2017-2018.

 

Attached at Appendix A and B to the report were details of the Council’s revenue performance and year end forecasted outturn position.  The current forecast position for the year end was expected to be a benefit of £127,000 to the council’s General Fund, which equated to just 0.17% of the council’s gross expenditure.  Explanations of the main year end forecast under / overspends was set out within the table at paragraph 1.2.3.  Members were requested to note the current position and the significant variances over £25,000 (paragraph 1.2.3)

 

Appendix C to the report set out the Council’s capital financial position for the six months of 2017-2018, which showed expenditure of £4,092,000.  Finally a summary of the earmarked reserves was attached at Appendix D, along with forecast year end position for 2017-2018.

 

Budget holders would continue to work with Resources Business Partners and Business Support Advisors and an updated outturn positon would be presented to the Committee on a quarterly basis. 

 

The Committee scrutinised the report and asked questions to which responses were provided.

 

There being no decision required, the Committee note the Quarter 2 performance and the 2017-2018 year end forecast financial position.

185.

Delivering a Sustainable Medium Term Financial Strategy 2018-2021 pdf icon PDF 468 KB

Report No: PAS/SE/17/034

Additional documents:

Minutes:

The Committee received Report No: PAS/SE/17/034, which updated members on progress made towards delivering a balanced budget for 2018-2019 and sustainable budget in the medium term.

 

St Edmundsbury continued to face considerable financial challenges as a result of increased cost and demand pressures and constraints on public sector spending (Revenue Support Grant (RSG)) from central government, as evidenced by the proposed four year government settlement.  It was clear that even without the proposed reductions in RSG, the council had underlying net cost pressures which it needed to address.

 

The Medium Term Financial Strategy (MTFS) 2017-2021 was approved by Council on 21 February 2017, which set out the current and future financial pressures and challenges facing St Edmundsbury.

 

The budget gap for years 2018-2019 to 2020-2021 were projected in Table 1 of the report.  The current budget assumptions for 2018-2019 and across the MTFS were detailed in Appendix A.

 

The Performance and Audit Scrutiny Committee was asked to support and recommend to Cabinet the inclusion of proposals as set out in Section 5 and Table 2 of the report in order to progress securing a balanced budget for 2018-2019 and sustainable budget in the medium term.

 

Members scrutinised the report in detail and asked questions to which officers duly responded.  Discussions held focused on the budget proposals set out in table 2 of the report.  In particular, the emergency Winter  accommodation costs; resources to address anti-social behaviour issues in Bury Town centre; and Land Charges. 

 

The Committee noted the budget assumptions, budget timetable and progress made to date on delivering a balanced budget for 2018-2019 and sustainable budget in the medium term.

 

Councillor Patricia Warby moved the recommendation, this was duly seconded by Councillor Betty Mclatchy and with the vote being unanimous, it was:

 

          RECOMMENDED

 

That the proposals, as detailed in Section 5 and Table 2 at paragraph 5.1 of Report No: PAS/SE/17/034 be included in securing a balanced budget 2018-2019.

 

186.

Mid-Year Treasury Management Report and Investment Activity (April - September 2017) pdf icon PDF 238 KB

Report No: TMS/SE/17/004 will be considered by the Treasury Management Sub-Committee on 20 November 2017.  The Chairman/Service Manager (Finance and Performance) will update the Committee verbally on any issues or recommendations arising from the consideration of this report.

 

Additional documents:

Minutes:

The Committee received Report No: TMS/SE/17/004, which had been considered by the Treasury Management Sub-Committee on 20 November 2017.  The Senior Business Partner provided a verbal update on the Sub-Committee’s consideration of the report, which:

 

(a)     Provided a summary of investment activities for the first six months  of 2017-2018;

 

(b)     Requested a revision to the “Red” % of portfolio limit from 35% to 50%, which was due to the majority of banks now having a Sector Colour Code rating of “Red” (there were no longer any Purple or Blue UK banks and only two Orange UK banks).  The maximum investment with any one “Red” institution would remain at £11m.

 

The Sub-Committee had scrutinised the report and asked a number of questions relating to the investment activity and the requested revision to the portfolio limit, to which officers duly responded.

 

The Performance and Audit Scrutiny Committee considered the report and asked questions to which responses were provided.

 

Councillor Andrew Smith moved the recommendation, this was duly seconded by Councillor Betty Mclatchy and with the vote being unanimous, it was:

 

          RECOMMENDED

 

That subject to the approval of Council, the Mid-Year Treasury Management Report 2017-2018, including the change to the Annual Treasury Management and Investment Strategy and associated Code of Practice, attached as Appendix 1 to Report No: TMS/SE/17/004, be approved.

         

187.

Exclusion of the Press and Public

To consider whether the press and public should be excluded during the consideration of the following item because it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during this item, there would be disclosure to them of exempt categories of information as prescribed in Part 1 of Schedule 12A of the Local Government Act 1972, and indicated against the item and, in all circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Minutes:

See Minute Number 188 below.

188.

Exempt Appendix 1: Building Control - Improvement Plan (para 3)

Exempt Appendix 1 to Report No: PAS/SE/17/031

Minutes:

The Committee considered Exempt Appendix 1 to Report No: PAS/SE/17/031. However, no reference was made to specific detail and, therefore, this item was not held in private session.

 

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