Agenda for Performance and Audit Scrutiny Committee on Thursday 30 July 2020, 5.00 pm

Agenda and minutes

Venue: To be held remotely via video conferencing facilities (Microsoft Teamslive)

Contact: Christine Brain: Democratic Services Officer (Scrutiny)  Email: christine.brain@westsuffolk.gov.uk

Note: The link to view the live stream of the meeting is shown in 'Media' below together with a supporting guidance document 

Media

Items
No. Item

12.

Welcome

Minutes:

The Chair formally commenced the meeting and welcomed all present and those externally viewing the remotely held West Suffolk Performance and Audit Scrutiny Committee.

 

A number of housekeeping matters and remote meeting guidance were highlighted to all by the Chair.

13.

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.

 

14.

Apologies for Absence

Minutes:

Apologies for absence were received from Councillor Elaine McManus.

 

Following which, the Democratic Services Officer verbally outlined all Members of the Committee who were present, together with any attending Councillors and Officers supporting the meeting.

15.

Minutes pdf icon PDF 142 KB

To confirm the minutes of the meeting held on 28 May 2020 (copy attached.)

Minutes:

The minutes of the meeting held on 28 May 2020 were confirmed as a correct record by the Chair.

16.

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:

No declarations of interest were declared.

17.

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.

 

A person who wishes to speak must register by 9am the day before the Committee (Wednesday 29 July) to enable the Council to ensure that there is time to brief them on how they can speak at the meeting. 

 

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.

18.

2020-2021 Performance Report (Quarter 1) pdf icon PDF 194 KB

Report No: PAS/WS/20/012

Additional documents:

Minutes:

[Councillor Karen Richardson arrived at 5.18pm, during the consideration of this item].

 

[Councillor Andy Neal left the meeting at 5.48pm, during the consideration of this item].

 

Prior to the presentation of the Quarter 1 performance report, the Assistant Director (Resources and Performance) set out the context around Covid-19.  Since the outbreak of Covid-19 in the UK, a number of events had occurred which had had a significant impact on West Suffolk Council’s financial position.  Some of these had been restrictions imposed by Government that had affected West Suffolk Council’s investments and services; and others had been announcements of Government financial support. 

 

The Council had played its part in responding to Covid-19 in supporting businesses and the most vulnerable as well as running essential services.  Appendix J provides an infographic of the support role West Suffolk had and continued to play.  However, this had come at a cost of £2.2m and had also impacted on a number of the local performance indicators, most notably around housing and homelessness.  Furthermore, money expected to be generated by the Council in the current financial year through income was expected to reduce by £8m.

 

Funding so far received from the Government was £2.1m (updated numbers provided to members at the meeting following receipt of third tranche of government funding) of which £0.3m was used to fund the 2019-2020 shortfall, and did not cover the financial gap which, with funding so far, was a total of £8.4m, a loss of 15% of the Councils gross budget for 2020-2021.  This unprecedented event would therefore require the Council to not only utilise to its full extent its £4.9m general fund reserve in-year, but with £3.5m still left to cover, the Council needed to plan for in-year savings and the potential use of its earmarked reserve balances.  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 replenishment of its earmarked reserves, given they were earmarked for other purposes, and the general fund balances to manage/cover future budget risks.

 

The Service Manager (Finance and Resources) then presented Report No: PAS/WS/20/012, which set out the Quarter 1 performance and financial outturn position for 2020-2021 up to 30 June 2020, and the impact of Covid-19; Covid-19 Government support received to date; next steps and principles for future financial planning.

 

Attached to the report were a number of appendices, as follows:

 

-      Appendix A: Performance Indicators – Commentary

-      Appendix B: Performance Indicators – Growth

-      Appendix C: Performance Indicators – Families and Communities

-      Appendix D: Performance Indicators – Housing

-      Appendix E: Performance Indicators – Day to Day

-      Appendix F: Income and Expenditure Report

-      Appendix G: Capital Programme

-      Appendix H: Earmarked Reserves

-      Appendix I: Strategic Risk Register

-      Appendix J: Covid-19 Infographic.

 

Members considered the report in detail and asked questions of the Assistant Directors on their indicators, to which comprehensive responses were provided.  Discussions were held on  ...  view the full minutes text for item 18.

19.

Annual Financial Resilience Report (2019-2020) pdf icon PDF 331 KB

Report No: FRS/WS/20/001 will be considered by the Financial Resilience Sub-Committee on 13 July 2020. 

 

The Service Manager (Finance and Performance) will update the Committee verbally on any issues or recommendations arising from the consideration of this report.

 

 

 

Minutes:

The Committee received Report No: FRS/WS/20/001, which had been considered by the Financial Resilience Sub-Committee on 13 July 2020.  The Service Manager (Finance and Performance) provided a verbal update on the Sub-Committee’s consideration of the report, which summarised the Annual Financial Resilience and Investment Activities for the year 2019-2020.

 

The report included tables which summarised the interest earned and the average rate of return achieved during 2019-2020; investment activity during the year; investments held as at 31 March 2020; capital borrowing budget 2019-2020; borrowing and income proportionality; borrowing and asset yields; borrowings and temporary loans, and other market considerations. 

 

The budget for investments income in 2019-2020 was £142,141, which was based on a 0.90% target average rate of return on investments.  At the end of March 2020 interest actually earned during the financial year totalled £389,892 (average rate of return of 0.828%), against a budget for the year of £142,141, budgetary surplus of £247,751. 

 

The Sub-Committee had scrutinised the Annual Financial Resilience Report 2019-2020, and asked questions to which responses were provided.

 

The Performance and Audit Scrutiny Committee considered the report and did not raise any issues to be brought to the Cabinets attention.

 

It was then proposed by Councillor John Augustine, seconded by Councillor Karen Richardson, and with the vote being unanimous, it was:

 

          RECOMMENDED:

 

That subject to Council the Annual Financial Resilience Report 2019-2020, being Report No: FRS/WS/20/001, be approved.

 

 

 

20.

Financial Resilience - June 2020 pdf icon PDF 175 KB

Report No: FRS/WS/20/002 will be considered by the Financial Resilience Sub-Committee on 13 July 2020. 

 

The Service Manager (Finance and Performance) will update the Committee verbally on any issues or recommendations arising from the consideration of this report.

 

 

 

Minutes:

The Committee received Report No: FRS/WS/20/002, which had been considered by the Financial Resilience Sub-Committee on 13 July 2020. 

 

The Service Manager (Finance and Performance) provided a verbal update on the Sub-Committee’s consideration of the report, which provided a summary of investment activity for the first three months of the 2020-2021 financial year.

 

The total amount invested at 1 April 2020 was £29,900,000 and at 30 June 2020 £32,650,000.  The 2020-2021 Annual Treasury Management and Investment Strategy sets out the Council’s projections for the current financial year.  The budget for investment income in 2020-2021 was £142,141, which was based on a 0.65% target interest rate of return on investments.

 

At the end of June 2020, interest earned during the first quarter of the financial year amounted to £31,947.08 against a profiled budget for the period of £35,535, a budget deficit of £3,587.92.  The budgetary deficit related to reducing interest rates as a result of the Covid-19 pandemic which started in mid-March 2020.

 

As at the end of June 2020, the Council had not had any additional external borrowing over the long-term £4m loan.

 

The Sub-Committee had scrutinised the investment activity for 1 April 2020 to 30 June 2020, and asked questions to which responses were provided.  They discussed the HM Debt Management Office, which was Government backed and was a new investment account being used by the Council.   

 

The Performance and Audit Scrutiny Committee considered the report and also discussed the HM Debt Management Office.  Members did not raise any issues to be brought to the Cabinets attention.

 

It was then proposed by Councillor Phil Wittam, seconded by Councillor Peter Thompson, and with the vote being unanimous, it was:

 

          RECOMMENDED:

 

That subject to the approval of Council the Financial Resilience Report (June 2020), being Report No: FRS/WS/20/002, be approved.

         

 

21.

Work Programme 2020-2021 pdf icon PDF 110 KB

Report No: PAS/WS/20/013

 

Additional documents:

Minutes:

The Committee received Report No: PAS/WS/20/013, which updated Member on the current status of its rolling work programme of items for scrutiny during 2020-2021 (Appendix 1).

 

The Committee considered the report and there being no decision required, noted the update.

 

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