Agenda and minutes
Venue: Conference Chamber, West Suffolk House, Western Way, Bury St Edmunds, IP33 3YU
Contact: Christine Brain: Democratic Services Officer
Email: christine.brain@westsuffolk.gov.uk
Items
No. |
Item |
93. |
Substitutes
Any member who is substituting for another
member should so indicate, together with the name of the relevant
absent member.
Minutes:
No substitutions were declared.
|
94. |
Apologies for absence
Minutes:
Apologies for absence were received from
Councillor Elaine McManus.
Councillor John Augustine was also unable to
attend the meeting.
|
95. |
Minutes PDF 187 KB
To confirm the minutes of the meeting held on
18 November 2021 (copy attached.)
Minutes:
The minutes of the meeting held on 18 November
2021 were confirmed as a correct record and signed by the
Chair.
|
96. |
Declarations of interest
Members are reminded
of their responsibility to declare any pecuniary or local non
pecuniary interest which they have in any item of business on the
agenda no later than when that item is reached and, when
appropriate, to leave the meeting prior to discussion and voting on
the item.
Minutes:
Members’ declarations of interest are
recorded under the item to which the declaration relates.
|
97. |
Public participation
Members of the public who live or work in the
district are welcome to speak and may ask one question or make a
statement of not more than three minutes duration relating to items
to be discussed in Part 1 of the agenda only. If a question is asked and answered within three
minutes, the person who asked the question may ask a supplementary
question that arises from the reply.
In accordance with government guidance, the
Council has developed general protocols on operating buildings
safely in order to reduce the risk of the spread of coronavirus and
will apply to members of the public registered to
speak. We would therefore strongly
urge anyone who wishes to register to speak to notify Democratic
Services by 9am on the day of the meeting so that advice can be
given on the arrangements in place.
There is an overall limit of 15 minutes for public speaking, which
may be extended at the Chair’s discretion.
Minutes:
There were no members of the public in
attendance on this occasion.
|
98. |
Ernst and Young - Auditor's Annual Report 2020 to 2021 PDF 127 KB
Report number: PAS/WS/22/001
Additional documents:
Minutes:
(Report number
PAS/WS/22/001)
The Committee received this report, presented
by Andrew Paylor from Ernst and Young
(EY), which updated Members on the outcome of the annual external
audit of the 2020 to 2021 financial statements by Ernst and Young,
as detailed in their Auditor’s Annual Report for the year
ended 31 March 2021, attached as Appendix A.
The Auditor’s Annual Report was for
information and brought together all of
the Auditor’s work over the year, including commentary on
West Suffolk’s Value for Money (VFM) arrangements, as well as
their opinion on the 2020 to 2021 financial statements.
It was explained to the Committee, that the
audit of the financial statement had been completed on 15 December
2021 and EY had issued their opinion that the account gave a true
and fair view of the financial position of the Council. They had not yet issued a completion
certification, as they still needed to perform the procedures
required by the National Audit Officer on the Whole of Government
Accounts (WGA) submission. This was due
to a delay by the Government in releasing the WGA submission pack
and guidance for 2020 to 2021.
The Auditor’s Annual Report also
contained the proposed final fee for the audit, which incorporated
the original planned scale fee of £55,050, along with
proposed further charges for both the scale fee and additional work
required over the course of the audit.
The final fee would be subject to ongoing discussions with, and
agreement by, the Director (Resources and Property).
Members considered the report and referred to
page 28 of the agenda papers which referred to the Valuation of the
Council’s Solar Farm. Members
asked for assurances that the Council continued to receive an
adequate return on this investment. The
Director (Resources and Property) explained that the Solar Farm was
exceeding the original benchmark predictions which had been set out
within the original Business Case. In
addition, the Council was also receiving a competitive price for
the sale of the electricity at auction.
In response to a further question from Members, the Director also
confirmed that the costs associated with the de-commissioning of
the Solar Farm had also been included within the original Business
Case.
There being no decision required, the
Committee noted the contents of the report.
|
99. |
Delivering a Sustainable Medium-Term Budget PDF 207 KB
Report number: PAS/WS/22/002
Additional documents:
Minutes:
(Report number
PAS/WS/22/002)
The Committee received this report which
explained that this report followed on from the November meeting of
the Performance and Audit Scrutiny Committee and provided an
updated position on the process and approach to set the
Council’s 2022 to 2023 budget and the principles and
challenges facing in achieving this.
This report provided a further update on
assumptions and anticipated savings and initiatives proposed or
delivered to-date, to be able to deliver a sustainable and balanced
budget for 2022 to 2023. This would not
only deliver services, but also the strategic vision and priorities
of the Council, whilst meeting future challenges. This robust approach would enable the authority to
invest in initiatives to meet the Council’s goals around
areas such as the environment and managing growth, whilst helping
increase the health and economic wellbeing of its communities.
The report set out the scale of the financial
challenge for the Council for 2022 to 2023 and in the medium-term
and the plans to address those financial challenges in enabling the
Council to meet its statutory responsibility to set a balanced
budget for the forthcoming year. The
report and its proposals would feed into the main budget setting
report due to be considered at Council on 22 February 2022.
The report included proposals and key budget
assumptions, which were set out in Section 2 of the
report. In addition to reviewing the
income assumptions, there had also been a review of the fees and
charges pricing used in the budget and medium term. The fees and charges that were changing and met
the requirements for reporting, were detailed in Appendix A of the
report.
The net impact of the key assumption changes
were set out in Table 1 of the
report. The changes gave rise to a
balanced position for 2022 to 2023.
There was a £1.16 million budget gap for 2023 to 2024, a
£1.71 million budget gap for 2024 to 2025 and a £2.98
million budget gap for 2025 to 2026 (which were cumulative budget
gaps).
A draft West Suffolk 10 Year Capital Programme
was attached at Appendix B to the report. This programme took into consideration the
previously agreed capital strategic projects, such as the
Innovation Units, Barley Homes and
Western Way Development, alongside the operational requirements and
improvements/initiatives linked to service delivery such as our
operational vehicle replacements and asset management
requirements.
The Performance and Audit Scrutiny Committee
considered the report and the key budget assumptions in detail and
asked questions to which responses were provided. In particular, the Committee discussed the:
·
Proposed changes in Fees and Charges for 2022 to 2023, particularly
in relation to the replacement costs of wheeled bins and also in relation to the activities and
facilities in West Suffolk’s parks and open spaces.
·
Financial risk mitigation to the Council, associated with the
investment for the Western Way Development.
·
Operation of Barley Homes as a commercial entity and the
provisional dividend.
The Committee did not raise any issues to be
brought ...
view the full minutes text for item 99.
|
100. |
Treasury Management Report (December 2021) PDF 322 KB
Report number: FRS/WS/22/001 was
considered by the Financial Resilience Sub-Committee on 17 January
2022.
The 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:
(Report number
FRS/WS/22/001)
The Committee received this report which set
out the Treasury Management Report as of 31 December
2021. The report was part of the
Council’s management and governance arrangements for Treasury
Management activities under the CIPFA Code of Practice on Treasury
Management. It provided a comprehensive
assessment of activities from 1 April to 31 December 2021.
It was reported that the Council held
investments of £76,500,000 as at 31 December
2021. Interest achieved in the first
nine months of the financial year, amounted to £53,087
against a budget for the period of £33,750.
The report also included a summary of the
borrowing activity during the period; borrowing strategy and
sources of borrowing; borrowing and capital costs –
affordability; borrowing and income – proportionality;
borrowing and asset yields; Prudential Code, Treasure Management
Code and Minimum Revenue Provision (MRP) consultation and market
information.
The Financial Resilience Sub-Committee
scrutinised the report on 17 January 2022 and asked questions to
which responses were provided. In
particular, detailed discussions were held on the recent £10
million loan secured by the Council in December 2021; what happened
to any interest payable “underspend”; sort
clarification on the meaning of the “certainty rate”
and whether the Council regularly reviewed looking at paying off
the long standing £4 million loan.
The Performance and Audit Scrutiny Committee
considered the report and asked questions to which responses were
provided. In particular, discussion
were held on borrowing activity, asset yields and held
investments. The proposed Government
changes to capital finance regulations were also discussed, in
respect of Minimum Revenue Provision (MRP), which was due to take
effect from the 2023 to 2024 financial year. The Director (Resources and Property) further
explained that these proposed changes were currently out to
consultation and the closing date for responses was 8 February
2022, to which the Council would be submitting a
response. Further detail around these
potential changes would also be provided to Members as part of the
forthcoming finance briefings.
At the conclusion of the discussions, the
Committee noted the contents of the Treasury Management
Report for December 2021.
(Councillor Andy Neal left the meeting at
6.15pm, during the discussion on this item)
|
101. |
Financial Resilience - Strategy Statement 2022 to 2023 and Treasury Management Code of Practice PDF 139 KB
Report number: FRS/WS/22/002 was
considered by the Financial Resilience Sub-Committee on 17 January
2022.
The 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:
(Report number
FRS/WS/22/002)
The Committee received this report which
sought approval of the Financial Resilience Strategy Statement 2022
to 2023 (Appendix 1) and the Treasury Management Code of Practice
(Appendix 2).
The Chartered Institute of Public Finance and
Accountancy’s (CIPFA) Treasury Management Code of Practice
required that, prior to the start of each financial year, the
Council formally approved a Treasury Management Policy Statement
and Investment Strategy setting out its Treasury Management Policy
and Strategy for the forthcoming year.
The report also included additional supporting
information on treasury advisors; borrowing strategy; investment
strategy counterparty ratings and interest rate projections.
The Financial
Resilience Sub-Committee had scrutinised the report on 17 January
2022 and asked questions to which responses were
provided. In particular, discussions
had been held on the borrowing strategy and authorised limits and
the value of the Mildenhall Hub.
The Performance and Audit
Scrutiny Committee considered the report and asked various
questions relating to the setting of net costs, capital and revenue
limits and the borrowing strategy, to which responses were
provided. In particular, the Committee
discussed the Treasury Management Code of Practice (Appendix 2) and
referred to page 24 of the Code and the section which related to
‘Use of External Brokers/Advisors/Fund
Managers’. The Committee
expressed some reservations around the wording used within that
section, in that the Council ‘will’ employ the
services of other organisations to assist it in the field of
treasury management. The Committee
recommended that this word be replaced with
‘may’, so that the Council had the flexibility
around the use of services of other organisations.
Councillor Phil Wittam then moved the
recommendations (as amended), these were duly seconded by
Councillor James Lay and with the vote being unanimous, it was
Recommended: That
1.
The Treasury Management Strategy Statement 2022
to 2023 as set out in Appendix 1 to Report number: FRS/WS/22/002,
be approved; and
2.
The Treasury Management Code of Practice, as set
out in Appendix 2 to Report number: FRS/WS/22/002, be approved,
subject to an amendment within the section of the Code of Practice
entitled ‘Use of External Brokers / Advisors / Fund
Managers’, with the removal of the word
‘will’, to be replaced with the word
‘may’, to ensure that the Council has the
flexibility on the use of services of other
organisations.
|
102. |
Work programme update PDF 115 KB
Report number: PAS/WS/22/003
Additional documents:
Minutes:
(Report number
PAS/WS/22/003)
The Committee received this report which
updated members on the current status of its rolling work programme
of items for scrutiny during 2022-2023 (Appendix 1).
The Committee considered its rolling work
programme and there being no decision required, the Committee
noted the update.
|
103. |
2021-2022 Performance Report (Quarter 3) PDF 349 KB
Report number: PAS/WS/22/004
Additional documents:
Minutes:
(Report number
PAS/WS/22/004)
The Committee received this report which set
out the Quarter 3 performance and financial outturn position for
2021 to 2022 up to 31 December 2021, along with the impact of
COVID-19, next steps and principles for
future financial planning.
Since the outbreak of COVID-19 in the UK,
a number of events had occurred which
had had a significant impact on the Council’s financial
position. Some of these had been
restrictions imposed by Government that had affected the
Council’s investments and services and others had been
announcements of Government financial support.
On 21 December 2021, central Government had
announced a new set of funding for business grants to the
hospitality and leisure sector. This
funding was split between a national scheme (up to £6,000 per
business) and a new amount of Additional Restrictions Grant funding
where criteria was set at the district level. The amount of funding and definition of the
national scheme had yet to be clarified.
The Council had played its part
in responding to COVID-19 in supporting businesses and the most
vulnerable as well as running essential services. The monthly returns, now bi-monthly returns to the
Department for Levelling Up, Housing, Communities had detailed the
financial impacts of COVID-19, and generally the forecast impacts
have remained consistent on a month-by-month basis. The latest submission showed a total impact of
£4.3 million (costs of £1.8 million and lost income of
£2.5 million). However, it should
be noted that these were required to be gross figures and,
therefore, an element of the additional costs such as internal
staff redeployment, grant funded costs and costs savings have also
been factored into the figures.
COVID-19 and the
Council’s response to it had consequently impacted on
a number of our local performance
indicators, most noticeably around housing and homelessness, income
indicators and the aged debt amount.
Within these figures, the income generated by the Council in the
current financial year through sales, fees and charges had reduced
by £2.5 million, mitigated to a certain extent by the sales,
fees and charges compensation from
central government. (Further details of
the financial impacts of COVID-19 can be
found in Appendix F).
The level of debt over 90 days had been a
focus for management during the year.
Quarter 3 data showed that this now stood at a total of
£978,244. This was an improvement
of £68,173 on the Quarter 2 figures. Commercial Property debt made up £670,678
(68 percent) of this position and £477,139 of this debt
relates to just three tenants. The
Council was continuing to work very closely with all of its tenants to clear outstanding rent
arrears. Exempt Appendix J showed the
split of the Aged Debt by service area and a split of the
commercial property debt.
The impact of COVID-19
was likely to be felt for years to come as the Council would need
to make provision in its medium-term budget plans for the impact on
the collection fund deficits, recovery to pre-covid income
...
view the full minutes text for item 103.
|
104. |
Exclusion of 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 the items, 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 each item and, in all circumstances of the case, the public
interest in maintaining the exemption outweighs the public interest
in disclosing the information.
Minutes:
With the vote being unanimous, it was
Resolved:
That, under
Section 100(4) of the Local Government Act 1972, the press and
public be excluded from the meeting for the following items of
business on the grounds that they involve the likely disclosure of
exempt information as prescribed in Part 1 of Schedule 12A of the
Local Government Act 1972, and indicated against each item and, in
all circumstances of the case, the public interest in maintaining
the exemption outweighs the public interest in disclosing the
information.
|
105. |
2021-2022 Performance Report (Quarter 3): Exempt Appendix J: Aged Debt Over 90 Days Monitoring (paragraphs 1 and 2)
Exempt Appendix J to Report number:
PAS/WS/22/004
(This exempt appendix is to be considered in
private under paragraphs 1 and 2 of Schedule 12A of the Local
Government Act 1972, as it contains information relating to an
individual and information which is likely to reveal the identity
of an individual).
Minutes:
(Report number
PAS/WS/22/004)
The meeting moved into private session to
allow for the Committee to pose specific questions
on the information which related to the aged debt over 90 days, as
set out in this exempt Appendix.
Once the discussion was
concluded, the Committee then moved back into the open session of
the meeting.
|
106. |
Re-admittance of press and public
Minutes:
The press and public were re-admitted to the
meeting.
|
107. |
Changes to the Performance Management System (verbal)
Minutes:
Prior to the conclusion of the meeting, the
Chair took the opportunity to briefly inform the Committee of the
proposed changes in the way that they would be reviewing and
managing performance information, effective from the next meeting
on 26 May 2022.
|
|
In this section
|