| Time: | 7.30pm | Place: | Committee Room 1, Council Offices, Gernon Road, Letchworth Garden City |
| PRESENT: | Councillors: M.E. Weeks (Chairman), Julian Cunningham (Vice-Chairman), John Booth, Bill Davidson and Councillor Frank Radcliffe (substitute). |
| IN ATTENDANCE: | Norma Atlay - Strategic Director of Finance, Policy and Governance Andy Cavanagh - Head of Finance, Performance and Asset Management Ladi Lapite - Senior Lawyer Tim Neill - Accountancy Manager Antonio Ciampa - Group Accountant, Customer Services Nigel Schofield - Committee and Member Services Officer Terry Barnett - SIAS Audit Manager David DeSmet - SIAS Principal Auditor Phil Westerman - Grant Thornton |
| ALSO PRESENT: | Councillor Mrs L.A. Needham - Leader of the Council |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 61 |
APOLOGIES FOR ABSENCE Note: Prior to the commencement of the meeting the SIAS Audit Manager and the SIAS Principal Auditor gave a PowerPoint Presentation on the Internal Audit Procedure used by SIAS at North Herts District Council followed by a question and answer session. The SIAS Audit Manager welcomed the attendance of FAR Committee Members at any audit and the Chairman on behalf of the Committee thanked the SIAS Audit Manager for a very helpful presentation. An apology for absence had been received from Councillor Lawrence Oliver. An apology for absence had been received from Councillor Ian Mantle and in accordance with NHDC regulations Councillor Frank Radcliffe advised the Chairman that he would be a substitute for Councillor Mantle. An apology was also received from Fiona Timms the Risk and Performance Manager. |
Noted | ||
| 62 |
MINUTES Minutes RESOLVED: That the Minutes of the Meeting of the Finance, Audit and Risk Committee held on 27 January 2014 be confirmed as a true record of the proceedings and be signed by the Chairman. Minute 57 - CORPORATE BUSINESS PLANNING - BUDGET 2014-2015 Following an enquiry by a Member concerning replies to Questions 4, 6, 11 and 16 where written responses were to be made by officers outside the meeting the Chairman requested that the appropriate officers should prepare such replies and forward to all Members of the Finance, Audit and Risk Committee as soon as possible. |
Agreed | ||
| 63 |
NOTIFICATION OF OTHER BUSINESS There was no other item of business tabled. |
Noted | ||
| 64 |
CHAIRMAN'S ANNOUNCEMENTS The Chairman welcomed The Leader of the Council and everyone to the meeting including Ladi Lapite - Senior Lawyer, Antonio Ciampa - Group Accountant, Customer Services and to David DeSmet - SIAS Principal Auditor and reminded Members that, in line with the Code of Conduct, any Declarations of Interest should be declared immediately prior to the item in question. |
Noted | ||
| 65 |
PUBLIC PARTICIPATION There was no public participation. |
Noted | ||
| 66 |
RISK MANAGEMENT UPDATE Report Appendix A The Head of Finance, Performance and Asset Management (HF) advised that the purpose of the report was to update the Committee on the management of the Strategic and Corporate Risks owned by the Senior Management Team and Cabinet. The HF clarified to the Committee the amendments to Top Risks concerning: Delivery of the Outstanding Outcomes from the Museums Fundamental Service Review and also Managing the Council's Finances. The report also updated the Committee on risks which the Committee had requested re-assessments at the Meeting held on 5 December 2013 (Minute 42 refers) namely: Churchgate and Surrounding Area, Welfare Reforms and the Replacement Payroll System and Service. The HF advised the Committee that the likelihood assessment of the North Herts Museum Risk should be reduced to a ‘2' and was detailed at Appendix A and that within the description of the risk the possibility of Hitchin Town Hall failing to mobilise resources to manage and operate the Community Facility had been added. The HF proposed that this change should be referred to Cabinet for approval. The HF advised the Committee that the likelihood assessment of Managing the Council's Finances risk had been reduced to a ‘1' and was detailed at Appendix A which reflected the continuing success by this Council in bridging the budget gap as demonstrated by the balanced budget for the forthcoming year. The HF proposed that this change should be referred to Cabinet for approval. A Member requested that more detail should be included in the Descriptions and Work Completed of the two risks listed in Appendix A. With regard to the risk concerning Churchgate the HF advised the Committee that the Project Board had reviewed the description and assessment of the risk with the risk description amended to reflect the risk of challenge from other parties, although no change was proposed to the matrix score at Table 1. The HF advised that there were no proposals to change the risk assessment for Welfare Reforms as there remained some uncertainty on the impact of the reforms and then consequently on the service areas. Additionally the impact of any interest rate rises on the public could result in an increased demand for debt and housing advice. The HF stated that there were concerns about the delivery of the Replacement Payroll System and Service on the due date of 1 April 2014. The level of risk had not been changed and remained at the highest risk rating level. The HF confirmed that NHDC were in regular contact with SERCO about the delays, the issue had been escalated and that every effort would be made to implement the new system on time. It was acknowledged that there remained only two weeks to implementation and the HF confirmed that there had been only one parallel running of the two systems (TRENT and SERCO) but three had been planned. The Strategic Director of Finance, Policy and Governance (SD) stated that the contract with SERCO was linked to the HCC main contract for payroll services as the TRENT system would not be supported after 1 April 2014 and that a new TRENT system would have cost some £30K. In response to a question the SD confirmed that she was not aware of any other local authority in Hertfordshire using SERCO for payroll services except for the County Council itself. Following the discussion on the delays to the implementation of the new Payroll System a Member proposed and it was agreed that it would be appropriate in light of the risk identified in the officer's report at Table 2 with a high score of ‘9' - a High Likelihood and a High Impact that this Committee should receive an ‘outcomes' and updating report on the new Payroll System at the next meeting scheduled for Monday 23 June 2014. The Chairman thanked the Head of Finance, Performance and Asset Management for the updates on the changes to risks and the Committee agreed to forward to Cabinet the amendments to risks for the Museums Service and Management of the Council's Finances for approval. A Member questioned the management of capital as there had been a lot of movement recently e.g. the purchase of the District Council Offices and that it would be desirable to improve capital resources as soon as possible by for example the disposal of capital assets in North Hertfordshire. RESOLVED: (1)That the proposal to make changed assessments for the Delivery of the Outstanding Outcomes from the Fundamental Service Review of the North Hertfordshire Museum Service as detailed at Appendix A be agreed and recommended to Cabinet for approval; (2)That the proposal to make changed assessments to the Management of the Council's Finances as detailed at Appendix A be agreed and recommended to Cabinet for approval; (3)That the amendment to the risk description for The Churchgate and Surrounding Area Project to reflect the risk of possible challenges from other parties be noted; (4)That the risk assessment for Welfare Reforms to be maintained due to the uncertainty on the impact of welfare reforms and service areas be noted; (5)That the maintenance of the potential risks with the implementation of the replacement Payroll System and Service be noted; (6)That the current and proposed changes to Cabinet Top Risks as presented at Table 1 be noted; (7)That the current and proposed changes to Senior Management Top Risks as presented at Table 2 be noted; (8)That the Head of Finance and Asset Management and the Corporate Human Resources Manager be requested to present a report on the outcomes of the implementation of the new Payroll System to the next meeting of this Committee scheduled for Monday 23 June 2014. RECOMMENDED TO CABINET: (1)That the proposal to make changed assessments for the Delivery of the Outstanding Outcomes from the Fundamental Service Review of the North Hertfordshire Museum Service as detailed at Appendix A be approved by Cabinet; (2)That the proposal to make changed assessments to the Management of the Council's Finances as detailed at Appendix A be approved by Cabinet. REASON FOR DECISION: To ensure that the Finance, Audit and Risk Committee would receive updates on the assessment of changes to Cabinet and Senior Management Team Top Risks. |
Agreed | ||
| 67 |
REVIEW OF ANNUAL GOVERNANCE STATEMENT ACTION PLAN AND LOCAL CODE OF CORPORATE GOVERNANCE Report Appendix A The Head of Finance, Performance and Asset Management (HF) advised that this report provided an update on progress against the improvement actions that arose from the Annual Governance Statement (AGS) for 2012-2013 together with a revised Local Code of Corporate Governance as presented at Appendix A and confirmed that there would be an amendment to reflect the changes in the Council's priorities as listed at (2) below. The HF confirmed that the Chairman would, subject to the Committee's agreement, sign an Assurance Statement that would confirm the work undertaken in 2013-2014 by this Committee and would identify improvements for implementation in 2014-2015. The HF referred the Committee to Table 1 and confirmed that Action 7.0 describing the implementation of the new payroll system would be completed by the end of 2013-2014 and not by the end of 2014. Also that Action 2.2 would maintain the Member Training as a joint provision of Democratic Services, Human Resources and by logging onto the Corporate Learning Management System. A Member questioned the provision of training for employees on the new payroll system and the HF advised that there would be training for 25 officers before the roll out of the new system but the first training session had been postponed. There would be Payroll Champions for each area as well as a ‘self service' element for staff. The Chairman thanked the Head of Finance, Performance and Asset Management for the update on the AGS and Local Code of Governance and confirmed that he would sign the Assurance Statement for 2013-2014. RESOLVED: (1)That all of the Annual Governance Statement actions for implementation in 2013- 2014 had been completed be noted; (2)That the proposed change to the Local Code of Governance to reflect changes in the priorities for North Hertfordshire District Council to: -Promoting Sustainable Growth; -Working with our Communities; -Living within our Means. be noted; (3)That the FAR Committee Chairman be requested to complete an Assurance Statement to support the production of the Annual Governance Statement for 2014-2015. REASON FOR DECISION: To confirm that the Council is improving its governance arrangements, to review the Local Code of Corporate Governance and that the Chairman should sign the Assurance Statement. |
Noted | ||
| 68 |
CONFIDENTIAL REPORTING CODE (WHISTLEBLOWING) REVIEW Report Appendix A The Senior Lawyer (SL) presented the report of the Monitoring Officer and advised that FAR was one of the appointed consultees for the Confidential Reporting Policy which was also referred to as a ‘whistleblowing policy'. The SL confirmed that following this meeting the Confidential Reporting Policy would be presented to: The Joint Staff Consultative Committee, The Standards Committee, Cabinet and Trade Union Representatives. In response to a question the SL advised that Trade Unions would be consulted on 25 March. The SL described to the Committee the main changes to the Policy viz. A Public Interest test was now included to protect disclosures made in ‘the public interest'. Text had been amended to confirm that employees would not be able to blow the whistle about breaches in their own contract of employment. The requirement for disclosures to be made in ‘good faith' had been removed. Employers would now be made liable for any acts of their employees which caused a detriment (disadvantage) to an employee as a result of their blowing the whistle and that whistleblowers would be protected from suffering a detriment, bullying or harassment from another employee. The SL reported that to date there had not been any breaches of the Confidential Reporting Policy. In response to a question the SL considered that concerns expressed by Trade Unions would be how the Policy was affected by changes in employment law and that the Council might be vicariously liable should NHDC contract staff act in ways contrary to the spirit of the changes in the law. It was agreed that the text should be expanded to clarify this issue in the policy with clarification of what it means in that the policy did not apply to third parties notwithstanding that contractors to NHDC should have their own policy. A Member requested clarification on the text concerning children and the SL advised that the NHDC policy had been prepared from a model precedent from a professional Human Resources body and that the wording although difficult in parts was standard and correct. A Member considered that too much emphasis had been placed on whistleblower identification and that confidentiality was essential to ensure anonymity. The text should be revised and even though the Policy should give the whistleblower more opportunity to report a problem the current text might deter an employee from reporting a problem or breach of the Policy. The SL confirmed that the Policy was meant to encourage and offer protection to any employee seeking to report a breach rather than act as a deterrent. In response to another question the SL confirmed that the Monitoring Officer had a secure email inbox and that the text could be strengthened to confirm this. With regard to confidentially the SL agreed to amplify the text to indicate that it must be clear to an employee that there would be no problems even if a reported breach could not be substantiated or proven. The Chairman thanked the Senior Lawyer for the update on the Confidential Reporting Policy and the notation of track changes in the document presented at Appendix A and that the Senior Lawyer should discuss with the Monitoring Officer the suggestions made by the Committee. RESOLVED: (1)That the proposed minor amendments to the Confidential Reporting Policy as presented at Appendix A and indicated as track changes together with Members suggestions be agreed; (2)That the proposal to present the Confidential Reporting Policy to the Joint Staff Consultative Committee, Trade Unions, the Standards Committee and Cabinet be noted. REASON FOR DECISION: For this Committee to act as a Consultee on the Confidential Reporting Policy and support good governance within this Council. |
Agreed | ||
| 69 |
THE AUDIT PLAN OF 2013-2014 FOR NORTH HERTFORDSHIRE DISTRICT COUNCIL Introduction Report Mr Phil Westerman of Grant Thornton (GT) advised the Committee that each year as the external auditor it was necessary for GT to present the proposed audit plan for the 2013-2104 Financial Year to the Committee for agreement. Mr Westerman then presented the proposed Plan for the 2013-2014 financial year. There had been an interim audit during which the proposed programme of work for the internal audit had been reviewed, a walkthrough test, a review of information technology controls, journal entry controls and value for money and identified the key dates in the audit cycle with the field work closing in July 2014 and the final opinion issued in September 2014. In the interim work to date no problems or irregularities had been found. Mr Westerman described to the Committee the key elements of the audit and the national audit requirements that would be the basis for the audit which included: Financial Reporting, Legislation, Corporate Governance, Pensions, Financial Pressures and other requirements. Mr Westerman then described the audit approach and highlighted the significant risks and assured the Committee that these risks were two presumed significant risks which were applicable to all audits i.e. Fraudulent transactions and the management of the over- ride of controls. Other identified risks of material misstatement that would be included in the audit were Operating Expenses, Employee Remuneration, Welfare Expenditure, and Property, Plant and Equipment all of which were essential for both public and corporate audits. In response to a question Mr Westerman confirmed that sample testing of 60 employees for HMRC returns was the recognised audit standard for the current number of NHDC employees and there could not be a default to a lower sample number. The Committee noted that the second half of the 2013-2014 audit would concentrate on whether the Council had put in place the proper arrangements for securing economy, efficiency and effectiveness in its use of resources which was referred to as ‘Value for Money' conclusion. Mr Westerman advised the Committee that there would be no change in the fees charged from the previous year The Accountancy Manager advised the Committee that the largest change in the presentation of accounts for the internal audit would be in the Collection fund due to the changed funding arrangements through Business Rates. The Chairman thanked Mr Westerman for the details of the External Audit for 2013-2014 and looked forward to the updating report on the progress with the Audit at the meeting to be held on 23 June 2014. RESOLVED: That the proposed Audit Plan for 2013-2014 for North Hertfordshire District Council be noted. REASON FOR DECISION: To note the External Audit Plan for 2013-2014. |
Noted | ||
| 70 |
SIAS UPDATE ON PROGRESS AGAINST THE 2013 - 2014 AUDIT PLAN Introduction Report (including Appendices) The SIAS Audit Manager (AM) advised the Committee that at 21 February 2014 some 82 per cent of the 2013-2014 Audit Plan Days had been delivered and the AM referred the Committee to Appendix A which gave a status update on each project within the Audit Plan. The AM referred the Committee to the table at Paragraph 2.2 which listed the 12 audits that had been completed since the meeting of this Committee held on 5 December 2013 (Minute 43 refers) and that Appendix A gave the current status of all 2013-2014 audits. Twenty three audits had been completed, 11 were currently in progress, a start date had been agreed for two audits with no more planned audits this year and one audit had been deferred. The AM confirmed that there had been one additional piece of Audit Work that was unplanned consultancy work concerning the Delta E Tendering System and this work had been completed during the time budget and was met from the authority's contingency allowance. The AM referred the Committee to the Table at Paragraph 2.13 which showed the actual performance for North Hertfordshire against the targets at 21 February with Planned Days at 82 per cent, Planned Projects at 62 per cent, Client Satisfaction at 100 per cent and that agreed high priority recommendations stood at 100 per cent and the AM was confident that the planned days delivered would be at 100 per cent. In response to a question the AM confirmed that the costs of any consultancy days that overran would be absorbed by SIAS and the current audit of BACS had no connection to the transfer process that would be used in the new NHDC Payroll arrangements. Also that SIAS would now be planning the allocation of its resources in advance at a meeting to be held with the Strategic Director of Finance, Policy and Governance and the Head of Finance, Performance and Asset Management. A Member referred to Appendix A and sought clarification of ‘The Letchworth Contract' and was advised that this was in fact the audit of The Letchworth Leisure Management Contract which was at the fieldwork phase and that 5.5 days had been used of the 10 allocated days. At the end of the discussions a Member requested that all future Progress Reports should include details of the profiling of audits. The Chairman thanked the SIAS Audit Manager for the clarification of progress against the Audit Plan and the Committee looked forward to the report on the completion of the audit plan for 2013-2014 at the next meeting of this Committee scheduled for 23 June 2014. RESOLVED: (1)That the SIAS Internal Audit Progress Report for the period up to 21 February 2014 be noted; (2)That the proposed amendments to the Internal Audit Plan at 21 February 2014 be agreed; (3)That there were no implemented high priority recommendations for removal at 21 February 2014 be noted; (4)That the next report to this Committee on the Internal Audit Progress should include the profiling of audits. REASON FOR DECISION: For the Committee to review and note the current progress of the SIAS Internal Audit Progress Report. |
Agreed | ||
| 71 |
SIAS INTERNAL AUDIT AUDIT PLAN FOR 2014 - 2015 Introduction Report The SIAS Principal Auditor (PA) presented this report which was the proposed NHDC Internal Audit Plan for 2014-2015 that set out the proposed audits for the next 12 months and formed part of the wider assurance framework for NHDC. This Audit Plan would outline how the service would be developed in accordance with the internal audit charter, detailed how the internal audit plan would be delivered and identify links to organisational objectives and priorities which ultimately must be approved by the SIAS Head of Assurance. The PA referred the Committee to the draft plan for 2014-2015 which was presented at Appendix A and advised that there were 400 chargeable days allocated in the Plan for next year. Some 298 days were allocated to audit key financial systems and operational audits followed by 27 days for IT audits and 48 days to strategic support that covered this Committee and External Audit liaison. The Committee noted that there had been a reduction of 40 audit days since last year. In response to a question the Audit Manager confirmed that the number of days allocated for the follow up of high quality recommendations would be incorporated into Committee reporting procedures and as part of the time allocated to that particular function. The AM advised that here had to be an Audit Plan and there would always be an opportunity to increase or reduce the number of audits. The AM advised that seven days had been allowed for follow up in the 2012-2013 Audit and the Strategic Director for Finance, Policy and Governance (SD) stated that the audit for 2014-2015 would include cover days for any high priority recommendations made in 2013-2014. A Member expressed concern that the number of days for contingency at eight days may not be sufficient and that an audit of Recharges was only included on the audit plan reserve list. The SD advised that in the last three years there had been three audit reports to this Committee on recharges and there was no advantage in another audit and that there was compliance with the CIPFA Code. It was essential to plan audits that were required and not audits that would be ‘nice' to have. There needed to be assurance that the audit plan was value for money as there were limited resources and that contingency had to be paid for even if not used. The Member then questioned the changes in actual costs of the changed waste collection and recycle service compared to the original cost estimates. (See Minute 72 below). A Member enquired about the proposed audit on Localism and the Strategic Director advised that it was difficult to define the Neighbourhood Planning Process and what was a ‘neighbourhood' and proceeded to clarify the audit ‘The Way we do things' in that there were four work streams for the Senior Management Group which would include: Channel Migration, New ways of working including Office Accommodation, a review of parking and the use of Council assets. The Chairman queried why 15 days were allocated to audit the appointment of a new banking services contract and that the timing could be reviewed and that in light of previous concerns expressed about the implementation of the new payroll service contract a Member suggested that the allocated 12 days for the contract management review may not be enough time. The Chairman thanked the Principal Auditor and the Audit Manager for the presentation of the Audit Plan for 2014-2015. RESOLVED: (1)That the proposed NHDC Internal Audit Plan for 2014-2104 be agreed; (2)That the Audit Manager and the Principal Auditor be requested to note the comments about the allocation of days to several audits and consider amendment. REASON FOR DECISION: For the Finance, Audit and Risk Committee to review and comment as appropriate on the Internal Audit Plan for 2014-2015. |
Agreed | ||
| 72 |
THIRD QUARTER REVENUE BUDGET MONITORING - 2013-2014 Report Appendix A The Group Accountant - Customer Services (GA) presented the draft report of the Strategic Director of Finance, Policy and Governance that would be presented to Cabinet on 25 March 2014. The GA advised that Cabinet would be requested to consider a proposed decrease in net expenditure at 31 January 2013 of £774K in the 2013-2014 General Fund and a proposed increase in net expenditure of £437K in the 2014-2015 General Fund. The GA referred the Committee to Table 1 which listed significant changes to the General Fund, that income from Penalty Charge Notices and income due from benefit overpayments had exceeded the estimated figures and that despite the trade recycling refuse deficit projected for 2013-2104 the overall commercial waste serve provision was delivered at less than zero cost to this authority. A Member referred to reduced income at the NHDC Document Centre and was concerned that the loss of the North Herts Homes printing contract valued at £20K could have a marked effect on the viability of this internal department. The Strategic Director for Finance, Policy and Governance (SD) reminded the Committee that the Print Services had been part of the proposed share print production with East Herts and Stevenage which had been discontinued due to the lack of a robust business case and assured the Committee that officers would continue reviewing this service to ensure that it provided value for money. this department for opportunities for continuous improvement. Following a short debate the Committee agreed - notwithstanding the statement made by the SD about the ongoing officer review - that Cabinet should be formally advised of the concerns of this Committee and that resources should be made available to undertake a comprehensive review of the services provided by the Document Centre and projected income. With regard to Discretionary Housing Grant Income the Accountancy Manager confirmed that the amount of grant had increased from £20K to £130K due to a change in the benefits system and the SD advised that the payments were necessary due to the unwillingness of landlords to accept tenants in receipt of benefits . All authorities had received more claims in the last 12 months. The SD advised that all local authorities had received an increase in grants under Discretionary Housing Payments. A Member proposed and it was agreed that the Head of Revenues and Benefits should be requested to prepare a briefing note for Members to explain the Discretionary Housing Payments Grant which would amplify the text given in Table 1. There followed a lengthy debate on the overall costs of the refuse collection service introduced in 2013 against the original estimates and in particular the costs and income of the recycling materials collected and the trend in tonnage collected. A Member questioned the change to the original estimates compared to the budget presented now and how had the budget changed. The GA advised that the change had evolved from the increase in income from recyclates. The Member also questioned the absence of £200,000 from the budget which had been allocated to the provision of compostable bin liners and the SD advised that the provision of such bio-degradable bags had been met for one year from the Alternate Financial Model income from Herts County Council. The Member was also concerned that it was very difficult to assess how the current budget had evolved from the original cost estimates - acknowledging that estimates had to be prepared - to the current financial statements and the SD invited the Member to review all previous reports and supporting documentation at the Council Offices. Another Member referred to the Apprenticeship Budget and why there was a carry forward request. The SD advised that it had not been possible to recruit to all apprenticeship posts during 2013-2014 and that recruitment was undertaken in partnership with North Herts College and assured Members that NHDC was continuing the search for potential candidates. The Chairman thanked Members and Officers for their contribution to the debate on the Third Quarter Budget Monitoring for 2013-2014. RESOLVED: (1)That the proposed £774K decrease in net expenditure within the 2013-2014 General Fund Budget be noted; (2)That the proposed changes to the 2014-2015 General Fund Budget of a £437K increase in net expenditure be noted; (3)That the Committee expressed concern about the projected loss of income to the NHDC Document Centre due to North Hertfordshire Homes moving their print requirement (80 per cent lithographic work) into a publishing agreement with another Housing Association, and that Cabinet be requested to authorise a comprehensive review of the services provided by the NHDC Document Centre; (4)That the Head of Revenues and Benefits be requested to prepare a briefing note for Members on the operation of the Discretionary Housing Payments grant system. RECOMMENDED TO CABINET: That resources be made available for officers to undertake a comprehensive review of all aspects of the work and income generated by the NHDC Document Centre. REASON FOR DECISION: For the Committee to review the report to Cabinet and comment if appropriate on changes to the General Fund. |
Agreed | ||
| 73 |
THIRD QUARTER CAPITAL MONITORING 2013-2014 Report Appendix A Appendix B Appendix C The Accountancy Manager (AM) presented the draft report of the Strategic Director of Finance, Policy and Governance that would be presented to Cabinet on 25 March 2014 and was the position of the Capital Programme at 31 December 2013 together with the impact upon the 2014-2015 programme and available capital funding resources. The AM referred the Committee to Table 1 and advised the Committee that Cabinet would be requested to approve changes to the capital programme following the re-profiling of schemes which had given a decrease in expenditure of £2.387M in 2013 - 2014. The AM next referred the Committee to Table 2 which listed the changes to capital schemes which gave an increase in expenditure of £33K. The AM advised the Committee that £8M of set aside receipts had been estimated to be used to fund the 2013-2014 capital programme , and it was projected that approximately £7.5 M would be raised from the disposal of NHDC assets over the next two years. The AM advised that the projected expenditure for 2013-2104 was £10.232M with a decrease of £2.354M due in the main to a revision of the timetable for the completion of schemes. For clarification at Table 1 the AM advised the Committee that The Reconstruction of Gower Road was in Royston and the road was owned by NHDC, also that Structural repairs at Hitchin Swim Centre were to a retaining wall at the entrance. The AM referred the Committee to Appendix A which was a summary of the capital programme by priorities and by service, the overall funding analysis and projected availability of capital receipts and to Appendix B which detailed the full capital programme with the revised costs of scheme and the provisional capital programme from 2013-2014 to 2016-2017. The Committee noted that the capital investment proposals for 2014-2015 were not included in the current programme. In response to a question on 3sixty citizen web access the Strategic Director of Finance, Policy and Governance (SD) advised that this was software used for Parking Penalty Charge Notices (PCN) which would allow any recipient of a PCN to see photographic evidence of their offence with the expected result that there would be fewer challenges to PCNs and thus save time and cost in the processing of challenges to PCNs. Another Member sought clarity on the provision of charging points for electric vehicles and their location plus the matter of the provided electricity. The AM advised that there were already electric point in the Letchworth Multi-Storey Car Park and that he would advise the Member outside of this meeting who was liable for the supply and cost of used electricity. The SD stated that in order to use the electric point it was necessary to take out a subscription which at the moment cost £10 per user. A Member enquired if this Council would operate its vehicle fleet using electric power and the SD advised that the Council had a limited number of directly owned vehicles but the SD believed that J O' Connor the grounds maintenance contractor used at least one electric vehicle. A Member enquired if there was a deminimus to which NHDC could let the set aside levels fall? The SD advised that each year officers calculated the capital needs for the ensuing year and that overall it was the best to use up capital reserves when interest rates were low rather than revenue income and such a policy allowed a strong review of ‘invest to save' projects and schemes. The AM advised that for the 2014 - 2019 MFTS the minimum reserve was set at £20M and that officers kept a constant watch on capital and that large capital payments could be matched against set aside payments. The SD emphasised that the purchase of the District Council Offices was a very good example of the expedient use of set aside receipts to allow a marked Revenue saving due to such a sale. The Chairman thanked the Accountancy Manager for the update on the Capital Programme and the Committee accepted the proposed capital schemes for 2013-2014 as presented at Appendix A and that the Committee would welcome an opportunity to contribute suggestions to the proposed capital programme for the next financial year. RESOLVED: (1)That the details of the Capital Programme Summary for 2013-2014 as presented at Appendix A be noted; (2)That the Capital Programme Detail for 2013-2014 as presented at Appendix B be noted; (3)That the Capital Scheme funding for 2013-2014 as presented at Appendix C be noted; REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Capital Programme for 2013-2014 and onwards. |
Noted | ||
| 74 |
TREASURY MANAGEMENT THIRD QUARTER REPORT 2013-2014 Report Appendix A The Accountancy Manager (AM) presented the draft report of the Strategic Director of Finance, Policy and Governance that would be presented to Cabinet on 25 March 2014 which stated the Treasury Management activities in 2013-2014 up to the end of December 2013 and that there were no exceptions to report. The AM advised the Committee that the Council received £143K of interest during the third quarter of 2013-2014 and that £535K had been received in the first nine months. The average interest rate on new deals was 1.31 per cent with the average rate on all investment rates being 1.22 per cent at 31 December 2013. In response to a question concerning the external debt limit that was exceeded by £319K over nine days in December the AM confirmed that the breach was caused by the impact on annual cash flow trends to local governance finance in 2013-2014 of the funding arrangements from the retention of business rates and the option for residents to pay Council Tax by 12 monthly payments instead of 10 payments and that it was expected that with the benefit of experience of the revised cash flow pattern seen in 2013-2014 this should not recur in 2014-2015. The AM confirmed that the Council had to borrow £4.61M during the third quarter and that £3.6M was borrowed for just nine days and that the interest paid was £909.51p. Members agreed that this was a sound practice to borrow cash over a short period rather than redeem cash when the cost of borrowing was very low. The Chairman thanked the Accountancy Manager for clarification of Treasury Management in the third quarter of 2013-2014. RESOLVED: That the details of the Treasury Management at the third quarter 2013-2014 report to Cabinet be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment if appropriate on the Treasury Management third quarter 2013-2014 report. |
Noted | ||
| 75 |
PARKING Report The Head of Finance, Performance and Asset Management (HF) reminded the Committee that at the meeting held on 27 January 2014 he had been requested to present a report on the use of surplus income raised from parking charges for on street and off street parking and the income from the issue of Fixed Penalty Notices (Minute 60 refers). The HF advised that Local Authorities could not make a surplus on street parking but were allowed to make a profit on off street parking charges. The HF advised the Chairman that he had received excellent support from fellow officers in the preparation of this report and the provision of financial data. The HF referred the Committee to Tables 1 and 2 which detailed Parking Strategy - Revenue costs from the issue of traffic regulations orders, LABGI road markings, and staff charges respectively. The HF confirmed that the Local Authority Business Growth Incentive was an external grant giving a total net revenue cost over the last four years of £201.9K . Over the last four years net parking income totalled £1.6M and that the largest net income was from off street parking charges and fines. On street parking had been in a deficit until this financial year with residents' parking now virtually at break even. The HF referred the Committee to Tables 3 and 4 which detailed Capital Expenditure on car parks and infrastructure such as pay and display machines and Penalty Charge Notice (PCN) income respectively. £1.029K had been spent on car parking and infrastructure against PCN income of £1,598K over the last four years. The HF confirmed that investment in car parks was made in enhancements to ensure that car parks were operational. The HF stated that any surplus in 2013-2014 would be used to offset losses in previous years or be placed in a reserve at year-end for re-investment into future on street parking/transport related projects such as lines and signs, improved road management. Increased income from parking charges for on street parking was due to increased staffing levels, the implementation of more areas covered and the hours of enforcement and a noted increase in car parking activity. Illegal parking and corresponding fee income was expected to fall in 2014-2015 as it was anticipated that there would be learned behaviour from motorists receiving PCNs and a full complement of enforcement officers would deter further breach of parking regulations. The HF advised that parking income contributed to the overall income received by NHDC which funded revenue budgets approved by Council. Members should be aware that such income contributed to the overall ‘fees and charges' within the annual budget setting process which in turn helped to balance the budget. Council policy was set that where services could be charged for then there should be at least a break even position or where possible made a positive contribution to Council funds. With reference to a report from the RAC Foundation NHDC were ranked on income and expenditure comparators at 186th in the UK and fifth in Hertfordshire. The Committee noted that London Boroughs had the highest on street parking income with Brighton and Nottingham Councils the highest local authorities. The HF concluded his presentation by confirmation that the loss of any parking income was assessed as a medium likelihood financial risk in 2014-2015 with a full value of risk estimated at £100K. A Member assumed that there must be a large amount of illegal parking in North Hertfordshire to reflect the high level of PCN income both in car parks and on street. The Strategic Director of Finance, Policy and Governance suggested that car drivers had become slack in their parking habits but the marked increase in PCNs issued would reduce the infringements. A Member also questioned the costs allocated in Table 1 for Parking Strategy as there was no Transport Strategy Officer in post at present. The Chairman thanked the Head of Finance, Policy and Asset Management for the excellent report that he requested on behalf of several Members and with the agreement of the Committee the Chairman asked the Committee Clerk to distribute the report by email to all Members of the Council. RESOLVED: That the report on the use of surplus income raised from parking charges for on street and off street parking and the income from the issue of Fixed Penalty Notices be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Parking report. |
Noted | ||
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FUTURE MEETINGS - POSSIBLE AGENDA ITEMS There were no suggestions for agenda items at future meetings. |
Noted | ||