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BABERGH DISTRICT COUNCIL OVERVIEW AND SCRUTINY
(STEWARDSHIP) COMMITTEE
MINUTES OF A MEETING OF THE OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE HELD IN THE COUNCIL CHAMBER, COUNCIL OFFICES, CORKS LANE, HADLEIGH ON TUESDAY, 23 MARCH 2010
PRESENT: Mr D M Busby – Chairman
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Mrs J Antill
Mr J C Brand
Mr D G Grutchfield |
Mr B Riley
Mr D M Walton
Mr L H Young |
Mr C A Roberts and Mr H N Todd were unable to be present.
63 - Declaration of Interests
64 - Minutes
65 - Petitions
66 - Questions from Members
67 - External Auditors - Grant Claim Report
68 - Treasury Management Strategy 2010/11
69 - Internal Audit Plan for 2010/11
70 - Ethical Framework and Managing the Risk of Fraud and Corruption
71 - Finance and performance Management - Quarterly Monitoring Report
72 - Performance Management - Target Setting and Key Performance Indicator Basket for 2010/11
73 - Annual Report of the Overview and Scrutiny (Stewardship) Committee
74 - Review of Governance Arrangements
None declared.
RESOLVED
(1) That the Minutes of the meeting held on 26 January 2010 be confirmed and signed as a correct record.
(2) That subject to the concurrence of the Overview and Scrutiny (Community Services) Committee, the Minutes of the joint meeting of the Overview and Scrutiny (Stewardship) and the Overview and Scrutiny (Community Services) Committee held on 19 January 2010 be confirmed and signed as a correct record.
None received.
None received.
The Director of Finance submitted a report (Paper J201) providing key information in connection with the Council’s external Auditors’ (PKF) report on grant claim certifications for the year ended 31 March 2009 which was attached as an Appendix to the report.
Mr Richard Bint from PKF was in attendance at the meeting to present the report and, together with the Director of Finance, answered detailed questions from Members.
RESOLVED
That the Council’s external Auditors’ (PKF) report and action plan attached as an Appendix to Paper J201 be noted.
The Director of Finance submitted a report (Paper J202) outlining the proposed Treasury Management Strategy, including the Annual Investment Strategy for surplus funds for the financial year 2010/11.
It was noted that a key recommendation in the revised guidance, the CIPFA Treasury Management in the Public Services: Code of Practice, is that the Treasury Management Strategy should be subject to scrutiny before it is recommended to Council and be approved before the start of each financial year.
The Director of Finance then answered a number of detailed questions from Members during which he gave an undertaking that the four banks marked with an asterisk under paragraph 16 of Appendix 2 would not be used in the first instance, unless the Director of Finance thought it was absolutely necessary to do so in the interests of achieving an appropriate and prudent spread.
During the questions raised by Members it was noted that the list of suggested institutions that could be recommended for use was far greater than that outlined in Appendices 2 and 4 of the report. The Director of Finance advised that the mid-year review of the Strategy to be submitted to the September meeting would include a full list of institutions that met such criteria.
RECOMMENDED TO STRATEGY COMMITTEE AND COUNCIL
(1) That the 2009 CIPFA Treasury Management in the Public Services: Code of Practice be adopted.
(2) That the proposed Treasury Management Strategy for 2010/11, including the Annual Investment Strategy and the Policy Statement as set out in the Appendices to Paper J202 be approved.
(3) That the Council’s Constitution be updated to reflect the changes to financial regulations as set out in Appendix 3 to Paper J202 and that the Overview and Scrutiny (Stewardship) Committee be nominated to ensure effective scrutiny of the Council’s Treasury Management Strategy and Policies.
The Director of Finance submitted a report (Paper J203) detailing the proposed Internal Audit Plan for 2010/11.
Tim Ryder, Suffolk County Council – Head of Audit, presented the report and, together with the Director of Finance, answered Members’ questions.
It was noted that in accordance with the Internal Audit Shared Services Partnership proposals for Suffolk Councils, the Audit Plan for the Council has been amalgamated with those of Mid Suffolk District Council and Suffolk County Council. Babergh District Council’s element of the Audit Plan (excluding Benefit Fraud Investigations and Management) was outlined on pages 9 and 10 of Appendix A.
RESOLVED
That Babergh District Council’s element of the Joint Internal Audit Plan for 2010/11 with Suffolk County Council and Mid Suffolk District Council (as described in paragraph 5.6 – Appendix A, pages 9 and 10) of Paper J203 be approved.
The Director of Finance submitted a report (Paper J204) outlining the arrangements in place within Babergh District Council to ensure there is a proactive corporate approach to preventing fraud and corruption, and creating a culture where fraud and corruption will not be tolerated.
The report gave details of proactive work undertaken by Internal Audit and the Fraud Team to deter, prevent and detect fraud and corruption.
Tim Ryder, Suffolk County Council – Head of Audit, presented the report and referred to a revised Appendix A that had been circulated at the meeting. Tim Ryder and the Director of Finance then answered Members’ questions.
Members suggested that the publicity surrounding these cases should be amended to mention the higher number of cases being investigated rather than the outcome of individual investigations.
RESOLVED
(1) That the Committee notes the progress made in introducing effective arrangements and measures to minimise the risk of fraud and corruption.
(2) That the Committee notes the proposed Anti-Fraud and Corruption Action Plan for 2010/11, as referenced in paragraph 5.10 and set out in Appendix A (revised) of Paper J204.
(3) That the Committee notes that following completion of the fraud checklist, as referenced in paragraphs 5.11 and 5.12 and set out in Appendix B of Paper J204, which will provide further assurance, that the Council has governance and anti-fraud and corruption arrangements in place that are fit for purpose and working as intended.
(4) That the Committee notes the progress and position on the proposed actions reported to this Committee in January 2009, as referenced in paragraphs 5.13 and 5.14 and set out in Appendix C of Paper J204.
(5) That, in future, the Committee receives an annual report on the progress and actions taken to manage the risk of fraud and corruption.
The Director of Corporate Services and the Director of Finance submitted a joint report (Paper J205) providing an integrated picture of financial and performance management information for the third quarter of 2009/10. Peter Quirk, Corporate Improvement and Information Manager, presented the report and together with the Director of Finance, answered Members’ questions on it. The following amendments to the report were noted:-
Paragraph 7.19 – second line – delete the word “not”.
Paragraph 7.25 – this should be provided with a red flag and needs to be addressed.
It was agreed that food hygiene should be considered by the Overview and Scrutiny (Community Services) Committee.
RESOLVED
(1) That the key points relating to variations against the 2009/10 National Indicators (NIs), former Best Value Performance Indicators (BVPIs) and Local Performance Indicators (LPIs) be noted.
(2) That the key areas of variations against 2009/10 original budget, movements since the previous quarter’s report, the projected outturn position and the summary of all key Treasury Management activities to date be noted.
(3) That a report be submitted to the next round of Overview and Scrutiny Committees for further analysis on:-
Food hygiene
Planning appeals
Affordable housing
At this point the meeting adjourned for lunch at 12.55 p.m. and resumed at 1.30 p.m. when the following Members were present:-
Mr D M Busby – Chairman
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Mrs J Antill
Mr J C Brand
Mr D G Grutchfield |
Mr B Riley
Mr D M Walton
Mr L H Young |
The Director of Corporate Services submitted a report (Paper J206) outlining the final recommended basket of key performance indicators for 2010/11 which had been agreed following discussions with the Chairmen of the two Overview and Scrutiny Committees.
There then followed a lengthy discussion around a number of the performance indicators and the reasons why they had been chosen and some had not. It was noted that ten indicators had been selected for the 2010/11 KPI basket and these were outlined in paragraph 5.3 of Paper J206. All other indicators will be reported to the Overview and Scrutiny (Stewardship) Committee on an exception basis only.
The decision referred to below was agreed on the Chairman’s casting vote.
RESOLVED
(1) That the recommended basket of key performance indicators (KPIs) for the 2010/11 financial year listed in Appendix A of Paper J206 be approved.
(2) That the proposed targets in Appendix B of Paper J206 be agreed and included in a report to Strategy Committee for approval.
The Director of Corporate Services submitted a report (Paper J207) advising that in accordance with the Constitution, the Committee must report annually to Council on its work during the previous year and make recommendations for future work programmes and, if appropriate, amended working methods.
The draft Work Plan for 2010/11 attached as Appendix 2 to Paper J207 was approved, subject to the following amendments:-
A report on staffing numbers to be added to an appropriate Committee.
Following the receipt of a planning assessment sheet by Mrs J Antill, further consideration would be given as to the consideration of an item on one of the Overview and Scrutiny Committees’ Work Plan relating to Section 106 monies.
RESOLVED
That the Director of Corporate Services, in consultation with the Committee Chairman, complete the Committee’s Annual Report for submission to the next meeting of the Council based upon Paper J207 and the views expressed at the meeting.
Mr D M Busby, Chairman of the Constitution Review Task Group, presented Paper J208 which outlined the conclusions of the Constitution Review Task Group and requested the Committee to consider its recommendation to progress a move to executive arrangements. The Solicitor to the Council assisted in the presentation of the report and answered any questions by Members.
During consideration of this item, it was agreed that the possibility of a Workshop or Seminar for all Members on this matter would be explored and that this could be in conjunction with Members of Mid Suffolk District Council.
Members agreed that the outcome of the consultation exercise would be reported direct to Council.
RECOMMENDED TO COUNCIL
(1) That the constitutional review should continue with a view to a possible move to executive arrangements.
(2) That in furtherance of the constitutional review, the Council proceeds to undertake the public consultation exercise required pursuant to the Local Government and Public Involvement in Health Act 2007 in the form and manner recommended by the Constitution Review Task Group, and in particular:
· the means of consultation set out at paragraph 5.17 be approved
· the list of key stakeholders to be consulted shown at Appendix 2 be approved
· the period of consultation be fixed at 8 weeks.
(3) That authority be delegated to the Chief Executive in consultation with the Chairman of the Council to finalise the Consultation Document.
(4) That a sum up to £5,000 be made available from the £25,000 sum allocated for Local Government Review/Shared Services provision to undertake the consultation exercise.
(5) That following the public consultation exercise further reports from the Constitution Review Task Group be made direct to Council.
The Committee adjourned for refreshments between 11.05 a.m. and 11.25 a.m.
The business of the meeting was concluded at 3.50 p.m.
............................................................... Chairman
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