| Time: | 7.30pm | Place: | Committee Room 1, Council Offices, Gernon Road, Letchworth Garden City |
| PRESENT: | Councillor Michael Weeks (Chairman), Councillor John Booth (Vice-Chairman), Councillor Clare Billing and Councillor Paul Clark (substitute). |
| IN ATTENDANCE: | Norma Atlay - Strategic Director of Finance, Policy and Governance Andy Cavanagh - Head of Finance, Performance and Asset Management Tim Neill - Accountancy Manager Fiona Timms - Performance and Risk Manager Nigel Schofield - Committee and Member Services Officer Helen Maneuf - Head of Assurance - SIAS Phil Westerman - Grant Thornton Note: Councillor Clare Billing joined the meeting at 7.45p.m. Councillor Paul Clark left the meeting at 9.06 p.m. |
| ALSO PRESENT: | |
| Meeting attachment |
Agenda Front Pages |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 1 |
APOLOGIES FOR ABSENCE An apology for absence had been received from Councillor Steve Jarvis and in accordance with NHDC regulations Councillor Paul Clark advised the Chairman that he would be a substitute for Councillor Jarvis. An apology for absence had been received from Councillor Jim McNally. |
Noted | ||
| 2 |
MINUTES Minutes RESOLVED: That the Minutes of the Meeting of the Finance, Audit and Risk Committee held on 19 March 2014 be confirmed as a true record of the proceedings and be signed by the Chairman. |
Agreed | ||
| 3 |
NOTIFICATION OF OTHER BUSINESS There was no other item of business tabled. |
Noted | ||
| 4 |
CHAIRMAN'S ANNOUNCEMENTS The Chairman welcomed new Members of the Committee - Councillors Simon Harwood (not present), Jim McNally (not present) and Clare Billing and new substitute Member Paul Clark 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. The Chairman also welcomed Phil Westerman from Grant Thornton and Helen Maneuf from SIAS. |
Noted | ||
| 5 |
PUBLIC PARTICIPATION There was no public participation. |
Noted | ||
| 6 |
INFORMATION NOTE - HCC SHARED MANAGED SERVICES (SMS) FRAMEWORK AGREEMENT FOR A PAYROLL SERVICE PROVIDED BY SERCO Report The Head of Finance, Performance and Asset Management (HF) presented the Information Note prepared by the Corporate Human Resources Manager and was pleased to advise the Committee that the Self Service aspect of the new payroll service had gone live on 1 June 2014. All staff had been paid to date. Payroll Champions had been trained to support Staff and Mangers in the Self Service access to the Payroll Service for leave and additional payments. Much information on the system including FAQs and quick user guides were available on the NHDC Intranet from early May. The HF advised that a full update on this project and its implementation will be presented to the Committee at the meeting scheduled for 18 September 2014.A Member enquired if all Councillors would continue to receive a monthly timesheet rather than access to the SERCO payroll staff as was available to staff and the Strategic Director for Finance. Policy and Governance confirmed that there was a licence fee payable to give Councillors access by electronic means. The HF advised that he would speak with the Corporate Human Resources Manager to provide an update on this matter in the full report next September. RESOLVED: That the information provided by the Corporate Human Resources Manager on the new payroll service provided by SERCO at 1 April 2014 and 1 June 2014 be noted. |
Noted | ||
| 7 |
RISK MANAGEMENT UPDATE Report Appendix A Appendix B The Performance and Risk Manager (PRM) presented the report of the Head of Finance, Performance and Asset Management and 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 PRM confirmed that the Top Risks had been reviewed were summarised in the Matrices at Tables 1 and 2. The PRM advised that this Committee had to consider and review the Top Risks and annual risk management reports and that any changes to the Cabinet Top Risks must be referred to Cabinet for approval. The PRM confirmed that the major change before the Committee was a proposal to amend the Top Risk for the Waste and Recycling Service from one overarching Top Risk with three sub risks into three specific risks with the overarching Top Risk of Waste and Recycling Service removed. The first risk concerned the Northern Transfer Station and Ancillary Facilities due to the long term requirement to have a waste transfer station in the north of Hertfordshire which included the problems of the lease and future contracts for the current site at Burymead in Hitchin which was the current site for the transfer of residual waste. The co-mingled risk included challenges to the current kerbside collections and dependency on the current contractor for co-mingled waste and whether the facility for the separation of co-mingled waste at Radwell could respond to and increase in recyclable materials. The New Waste and Recycling Service had been very successful and was now moved to be a Service Risk from a Top Risk. The PRM referred the Committee to Matrices 1 and 2 indicating a high likelihood and a high impact for these two risks. The PRM advised the Committee that it was proposed to reduce the impact of the Payroll System/Service as the new payroll was in place at 1 April 2014. The Committee agreed to this proposal. The PRM referred the Committee to the Cabinet Top Risk ‘Managing the Council's Finances' which was to be increased as to likelihood due to the imminent commencement of the Corporate Business Planning Process for resolving the budget gap for 2015-2016. The Committee agreed to this proposal having reviewed the Risk as detailed at Appendix A. For a fuller explanation of the Risks mentioned in the report and were affected by changes the PRM referred the Committee to Appendix A which listed in more detail the components of the risks listed above. The PRM stated that each year this Committee were invited to review and comment on the changes made to the Top Risks in the Financial Year for 2013-2014. For the first time the annual report included ‘business continuity' which was a key risk management tool and clarified at Appendix B. The PRM concluded her presentation by reminding Members that the NHDC Risk and Opportunities Strategy required that the annual Risk Management Report had to be agreed by FAR and then referred to Cabinet and then to Council. The Chairman thanked the Performance and Risk Manager for the update on Risks at Cabinet and Senior Management Team and invited comments and or questions from the Committee. A Member questioned the reduction in the risk level for the ‘delivery of the outcomes of the Museum FSR' aka Hitchin Town Hall from a 3 to a 2 and whether the latest reported problems from the recent member workshop were included. The PRM confirmed that this was covered within the description of the risk. RESOLVED: (1)That the proposed changes to the Waste and Recycling Service Top Risk into three separate risks be agreed as follows: a.Top Risk of Northern Transfer Station and Ancillary Facilities; b.Top Risk of Co-mingled Waste; c.The New Waste and Recycling Service be designated as a service risk; d.That the overarching risk of the Waste and Recycling Service be deleted. and forwarded to Cabinet; (2)That the proposal to reduce the impact score of the Payroll/System Service SMT Top Risk following implementation of the Payroll Contract on 1 April 2014 be agreed; (3)That the proposal to increase the likelihood of the ‘Managing the Councils Finances' as presented at Appendix A be agreed; (4)That the Annual Report on Risk Management as presented at Appendix B be agreed and forwarded to Cabinet; RECOMMENDED TO CABINET: (1)That Cabinet be requested to endorse the proposed changes to the Waste and Recycling Service Top Risk into three new risks as follows: a. Top Risks of Northern Transfer Station and Ancillary Facilities b. Top Risk of Co-mingled Waste; c. That the remaining sub risk of the New Waste and Recycling Service be designated as a service risk; and that the overarching risk of the Waste and Recycling Service be deleted; (2)That the Annual Report on Risk Management as presented at Appendix B be agreed by Council. 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 | ||
| 8 |
DRAFT ANNUAL GOVERNANCE STATEMENT 2013-2014 Report Appendix A Appendix B The Performance and Risk Manager (PRM) presented the report of the Head of Finance, Performance and Asset Management and advised that this report provided an update on progress against the improvement actions that arose from the Annual Governance Statement (AGS) for 2013 - 2014 for implementation in 2014-2015. Also the Committee were invited to comment if appropriate on the Draft Annual Governance Statement for 2013-2014 which reviews the financial year 2013- 2014 and the period between 1 April and the completion of the statement of accounts as presented at Appendix A. The PRM stated that Table 1 included actions: IT Disaster Recovery, Document Retention, BACS processing and Payroll that emanated from high level recommendations from internal audit reports other than 3.0 Member Training which came from risk register entries and assurance statements. The PRM confirmed that the final improvement plan would be presented with the final Annual Governance Statement at the September meeting of this Committee. The Committee reviewed the Statement on Governance Arrangements for the year ended 31 March 2014 as presented at Appendix B. A Member referred to Table 1 and the need for enhancement of Member training and knowledge of Local Government procedures especially for new Members and that the actions listed in Table 1 should be monitored closely. The PRM agreed that ongoing development was necessary and that there would be Governance training on 26 June 2014. The Head of Finance, Performance and Asset Management confirmed that training on the operation of Local Government Finance and the interpretation of the annual accounts training was available for Members on a one to one basis. The Chairman proposed and it was agreed to approve the actions arising from the AGS for 2013-2014 as listed at Table 1, the Draft Annual Governance Statement as presented at Appendix A with amendment (Paragraph 3.4.5) , and the statement on Governance Arrangements at 31 March 2014 as presented at Appendix B. RESOLVED: (1)That the Draft Annual Governance Statement (with amendment) presented at Appendix A and supporting documentation be agreed; (2)That the proposal to approve the Draft Annual Governance Statement (with amendment) at the same time as the Statement of Accounts for 2013-2014 be agreed; (3)That the Performance and Risk Manager be requested to provide updates on progress against the Action Plan at the meetings of this Committee to be held on 18 September 2014 and 18 March 2015. REASON FOR DECISION To confirm that the Council is improving its governance arrangements, to review the Local Code of Corporate Governance and agree that the Leader of the Council and the Chief Executive should sign the Annual Governance Statement. |
Agreed | ||
| 9 |
ANTI - FRAUD AND CORRUPTION AND ANTI - MONEY LAUNDERING POLICIES Report Appendix A Appendix B Appendix C Appendix D The Head of Finance, Performance and Asset Management (HF) advised the Committee that he sought their views on the policies for: Anti - Fraud and Corruption Policy and Anti-Money Laundering Policy and supporting documents presented at Appendices A, B, C and D. The HF reminded Members that these documents had last been updated in 2011 by the NHDC Audit Manager prior to the transfer to the Shared Internal Audit Service and then placed on the NHDC website. During the last three years there had not been any incidents of either fraud or money laundering. The HF stated that these policies were a proportionate approach due to the anticipation of a low likelihood and in all cases officers would attempt to recover costs and possible sanctions against Members or Officers. The HF stressed to Members that in fraud all matters would be regarded as confidential. The HF advised the Committee that all matters concerning money laundering policy were under his jurisdiction and the policy applied to all Members and Officers of the Council. The policy did not allow the receipt of any cash payments in excess of £3000 unless advance notice had been given and in the last 12 months the highest payment had been £2000. There would be no acceptance of £50 notes and the cash deposit machine in the Customer Services Centre did not accept £50 notes anyway. The HF stated that more than 95 per cent of the cash payments were made using the cash machine. In response to a question the HF confirmed that there had been no reportage of fraud at the Council. A member enquired if all information received was shared with the Treasury Department and the Strategic Director of Finance, Policy and Governance (SD) confirmed that this was the case. The HF advised the Committee that fraud could be made on the claiming of monies such as reimbursement of benefits when not actually paid out by NHDC and staff were encouraged to report instances of dishonesty. However, the Chairman and Members stressed the need for anonymity and that there did not seem enough opportunity or encouragement for employees to disclose dishonesty anonymously and that the policy should be strengthened to allow this. Whilst accepting the need for confidentiality the SD advised that should there be a proven case the informant would have to be named due to need for a written and signed statement. The SD confirmed that the Council did receive ‘tip offs' from members of the public about benefit fraud and that it was policy to prosecute and seek recovery of all monies from all fraudsters. Members accepted that there had to be a balance between anonymity and the need to recover lost monies but that did not deflect the need to guarantee the anonymity of the disclosure. The SD stated that all matters would be confidential until the need for a witness statement. RESOLVED: (1)That the following policies and supporting documents be endorsed: a.Anti - Fraud and Corruption Policy b.Fraud Response plan c.Anti - Money Laundering Policy d.Anti - Money Laundering Guidance Notes; (2)That the Head of Finance, Performance and Asset Management be requested to implement more use of anonymity in the reporting of Fraud, Corruption and Money Laundering wherever possible, although noting that the Confidential Reporting Code provided a confidential and secure email box for those who wished to remain anonymous. REASON FOR DECISION: For this Committee to ensure good governance within North Hertfordshire District Council. |
Agreed | ||
| 10 |
SIAS UPDATE ON PROGRESS AGAINST THE 2014 - 2015 AUDIT PLAN Introduction Report The Head of Assurance - SIAS (HA) reminded the Committee that the work of Internal Audit must be reported to this Committee in order to give the Council an opportunity to review and monitor an essential component of corporate governance and gain assurance that its internal audit provision was fulfilling its statutory obligations. Also that it was good practice that the progress reports should include any proposed amendments to the agreed annual audit plan. A Member questioned the robustness of this methodology and although the HA stated that this was a standard approach the Member questioned that with only four Members present was this sufficient and with only seven Members was this a representative number of the Council. The Strategic Director of Finance, Policy and Governance (SD) advised that the NHDC Constitution had seven Members allocated with political proportionality and those appointed had to have or be trained in extra skills such as audit and treasury management. The HA at Paragraph 2.1 commented that this plan was for 2014-2015 (not 2013-2014 as stated) and that at 6 June 2014 15 per cent of the planned audit days had been delivered. The HA referred the Committee to Appendix A which provided a status report on each audit within the Audit Plan. The HA provided an update on each audit issued since the last meeting of FAR held on 19 March 2014 with nine at substantial assurance and two at moderate level. The Committee noted that there had been two additional audits added to the audit plan and resourced from contingency: Debt Management - Rental Income and an investigation into an Area Committee Grant payment. The HA referred the Committee to Appendix C which included the agreed start dates for each audit this year and confirmed that although it was early in the audit plan year good progress had been made and there had been very good support from the Head of Finance, Strategic Director of Finance, the Accountancy Manager and Finance officers. The HA next referred to Appendix B which presented the status of High Priority Recommendations and proposed to remove No. 1 Document Retention, No. 3 Email Encryption, this was agreed by the Committee. The Chairman questioned the comments made on the High Priority Recommendation - Document Retention and why it was carried forward to September 2014. The SD replied that there needed to be a lot of upgrading of the Information at Work Systems and that the appointed supplier had to upgrade the Data Deletion Module. The HA advised that SIAS would continue to report back on progress on all aspects of internal audit and that this report was the first of four too FAR in 2014-2015. The HA agreed to make it more clear in Tables and Appendices in all reports where N/A was used to clarify Not Applicable, No Assurance and Not Assessed. RESOLVED: (1)That the Internal Audit Progress for the period up to 6 June 2014 be noted; (2)That the two amendments to the Internal Audit Plan as at 6 June 2104 (Audit of Debt Management - Rental Income and Investigation into an Area Committee Grant payment) be agreed; (3)That the proposal to remove the two implemented High Priority Recommendations listed at Appendix B i.e. Document Retention and Email Encryption be agreed. REASON FOR DECISION: For this Committee to assess the progress with and effectiveness of the Internal Audit Plan. |
Agreed | ||
| 11 |
NHDC - ANNUAL ASSURANCE STATEMENT AND INTERNAL AUDIT ANNUAL REPORT 2013 - 2014 Introduction Report The Head of Assurance - SIAS (HA) advised the Committee that the purpose of this report was to give assurance that the Council's internal audit function was fulfilling its statutory obligations and was an integral component of corporate governance and based on work undertaken in the 2013-2014 financial year. The HA referred the Committee to Appendix B and described to the Committee the main aspects of the Annual Assurance Statement for 2013-2014 and was pleased to advise that with regard to Financial Systems the overall opinion was a Substantial Assurance with a largely sound system of control however there were some minor weaknesses. The HA advised that a Substantial Assurance was also given to Non-Financial Systems albeit with some minor weaknesses. The HA referred the Committee to Appendix A and for clarification requested Members to disregard asterisks as they had not been correctly placed in the table. The HA gave an overview of the Internal Audit Activity in 2013 - 2014 where 36 audit reports had been completed with 22 at substantial assurance and six with high priority recommendations. The performance of the Internal Audit Service in 2013-2014 had either met the targets or exceeded (in two cases) the set target. In response to a question the HA advised that the audit of Herts Waste Partnership was expected to have a full assurance, that the audit of Letchworth Leisure had a substantial assurance and that the final report on Payroll Controls had a substantial assurance. The HA referred the Committee to Appendix C which showed progress against the areas of non - conformance following the self- assessment in 2012-2013. The HA was pleased to advise the Committee that during 2013-2014 the Shared Internal Audit Service had operated according to the Public Sector Internal Audit Standards and Quality Assurance and Improvement Programme. The HA concluded her presentation by referring the Committee to Appendix D - The Audit Charter and reminded Members that every local authority had to adopt an Audit Charter which set out the remit , duties and accountabilities of an internal audit function. The SIAS Audit Charter sets out the framework on how SIAS discharged its internal audit responsibilities to those charged with governance at NHDC and confirmed the need of SIAS to ensure the effectiveness of the internal audit provision. The Committee noted that the annual review of the Audit Charter in 2014-2015 did not have any fundamental changes and the HA advised that the Charter had been amended to identify the bodies to which the Charter applied. In response to clarification on the use of Price Waterhouse Coopers on internal audits the HA advised that expertise was required in IT and VAT and Mr Westerman confirmed that this was standard practice. RESOLVED: (1)That the Annual Assurance Statement (Appendix B) and Internal Audit Annual Report (Appendix A) for 2013-2104 be noted; (2)That the results of the self-assessment as required by both the Public Sector Internal Audit Standards at May 2014 (Appendix C) and the Quality Assurance and Improvement Programme be noted; (3)That the SIAS Internal Audit Charter for 2014-2015 presented at Appendix D be agreed; (4)That the scope and resources for internal audit were subject to no inappropriate limitations in 2013-2014 be noted. REASON FOR DECISION: For the Committee to review and note the 2013-2014 Annual Assurance Statement and the Internal Audit Report for 2013-2014. |
Agreed | ||
| 12 |
REVENUE BUDGET OUTTURN 2013-2014 Report Appendix A Appendix B Appendix C The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance and advised the Committee that although this report was labelled as draft there had been no changes to this report that would be received by Cabinet on 24 June. The AM advised the Committee that the purpose of the report was to inform Cabinet of the summary position on income and expenditure at the end of the financial year at 31 March 2014 for the General Fund (Appendix A). The AM provided an overview of important issues in the 2013-2014 financial year: There was a 3.4 per cent decrease (£540K) on the net expenditure for 2013 - 2014 at £15.439M; Sixty three per cent (£308) of the carry forward budget (Appendix B) had been spent and Cabinet would be requested to carry forward the £181K unspent into 2014-2015; Agreed efficiencies were overachieved by £31K (total of £850), there was one key indicator at red status (Building Control); The General Reserve Fund balance stood at £3.933M at 31 March 2014 which was £1.9M higher than the balance approved for 2014-2015; Known financial risks of £1.5m were included in the General Fund Balance of £2.3M; The balance of useable reserves at 31 March 2014 was £4.02M with £592K held as a bad debt provision - but excluding Council Tax and National Non Domestic Rates and the Collection Fund at 31 March 2014 had a deficit balance of £1.64M of which NHDC had liability for £743K (Appendix C). For additional clarification of the important issues detailed above the AM referred the Committee to Tables 1 to 10 and Appendix C. In response to a question the AM clarified that risks associated with the collection of NNDR were shared with HCC and Government and that NHDC collected the NNDR in North Herts and retained a small percentage of the collected monies. Any payments following appeals would be paid by NHDC hence the need for a ring fenced reserve. Another Member questioned why the ‘debt' had risen to £3.2M across many facets and the Strategic Director of Finance, Policy and Governance (SD)advised that the debt levels could be a timing issue if invoices were sent out early and the SD emphasised that this was a bad debt provision and not the actual amount that could be paid. A Member questioned the income from car parking charges and whether income from Controlled Parking Zones was included in the total figure. The Head of Finance, Performance and Asset Management advised that the total income shown was from car parking on and off street charges and not CPZs nor Fixed Penalty Notices. The AC commented that it was difficult to assess if increased car parking charge income was due to an uplift in the national economy or an improved cash collection and less hand overs of parking payment ticket to incoming car park users. The Chairman thanked the Accountancy Manager for the update on the Revenue Budget Outturn for the last financial year and there were no further comments or questions. RESOLVED: (1)That the details of the Revenue Budget Outturn Report for 2013-2014 be noted; (2)That the recommendations to Cabinet concerning inter alia the summary position on income and expenditure at the end of the financial year 1 April 2013 to 31 march 2014 for the General Fund be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Revenue Budget Outturn for 2013-2014. |
Noted | ||
| 13 |
CAPITAL PROGRAMME OUTTURN 2013 - 2014 Report Appendix A Appendix B Appendix C The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance and advised the Committee that although this report was labelled as draft there had been no changes to this report that would be received by Cabinet on 24 June. The AM advised the Committee that the purpose of the report was to update Cabinet on the Capital Programme for 2013-2014 at 31 March 2014 and its impact upon the 2014-2105 Capital Programme and upon available Capital Funding Resources. The AM referred to Appendix A which detailed the Capital Programme summary for 2013-2014 onwards, to Appendix B for the Capital Programme Detail for 2013-2014 onwards and to Appendix C for the funding source of each Capital Scheme for 2013-2014 onwards. The AM highlighted some of the main capital schemes completed in 2013-2014: New facilities at Hitchin Swim Centre; New wheelie bins to allow the collection of recyclable materials; Purchase of the Council Offices; Capitalised lump sum payment to the pension fund; A new interactive splash pad in Avenue Park, Baldock; Construction of the North Herts District Museum and replacement roof to Royston Civic Offices. Changes to Capital Schemes in 2013-2014 amounted to £1,958M with a request for an increase to the contingency fund at North Herts Museum from £60K to £110K which made the total estimate £4.685M for this important community development. The AM advised that a total of £290K would be taken from useable capital receipts and £9.662M would be used from set aside receipts and that the use of set aside receipts would increase the Council's Capital Financing Requirement and subsequently reflected in the Treasury Activity Review of 2013-2014. The AM concluded his presentation on the Capital Programme with confirmation that the expected Capital Programme for 2013-2014 to 2016-2017 of £28M would contribute positively to the three existing Council priorities: A Member enquired about the growth fund for the implementation of the Cycle Strategy which was a government growth area. The AM stated that there were NHDC schemes to deliver from this fund and that although funds had not been allocated yet it was up to NHDC to bring in other parties. A Member enquired about the increased contingency for the North Herts Museum and if it was used could it be recovered from other funds. The AM stated that any further use of the contingency would be a cost to NHDC, A Member enquired about how disabled facilities grants payments were prioritised, noting that there had been an underspend. The Head of Finance, Performance and Asset Management advised that he would request the Housing Strategy Manager to prepare a short briefing note for FAR Members. The Chairman thanked the Accountancy Manager for the update on the Capital Budgets Outturn and there were no further comments or questions. RESOLVED: (1)That the details of the Capital Budgets Outturn Report for 2013-2014 be noted; (2)That the recommendations to Cabinet concerning inter alia the expenditure on the capital programme, changes to the capital programme, an increase in the contingency reserve for the North Herts District Museum and Community Facility and the availability of resources be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment if appropriate on the Capital Budgets Outturn for 2013-2014. |
Noted | ||
| 14 |
ANNUAL TREASURY MANAGEMENT REVIEW 2013-2014 Report Appendix A The Accountancy Manager presented the report of the Strategic Director of Finance, Policy and Governance and advised the Committee that although this report was labelled as draft there had been no changes to this report that would be received by Cabinet on 24 June. The AM advised the Committee that the purpose of the report was to advise Cabinet of the Treasury Activities during 2013-2014 and the performance against the Prudential and Treasury Indicators. The AM referred the Committee to Appendix A which presented the Annual Treasury Management Review at March 2014. The Committee noted that Appendix A included an interest rate forecast, a summary outlook provided by Capita Asset Services and an update on the investment strategy. The amount of interest earned in 2013-2014 totalled £668K at a mean interest rate of 1.52 per cent. The AM stressed that it was not possible to obtain good rates of interest and it would need an increase in the Bank of England base rate with several long term contracts (at reasonable rates) approaching maturity. NHDC would continue to use UK banks and building societies. The change to Lloyds Bank for the operation of the Council's current account had a rate of 0.4 per cent for the duration of the contract. The AM clarified the risks to which the authority could be exposed namely: Credit, liquidity and Market. Future investment returns are expected to be lower in 2014-2015 due to lower rates and a lower balance of cash would be available for investment and £460K was the estimate of investment for the current year. At 31 March 2014 the investments totalled £37.53M compared to £47.33M at 31 March 2013 with maturing funds being used to fund capital expenditure, and the underlying borrowing need had fallen from £33M at 31 March 2014 to £23.3M at 31 March 2014. The AM advised the Committee that should the capital finance requirement rise above zero then the Council would need to make an annual charge to the General Fund for the cost of borrowing (Appendix A - Section 2). In response to an enquiry the AM clarified that PWLB stood for Public Works Loan Board and that this was the first ‘port of call' for local authorities. The Chairman also suggested that it might be appropriate to consider undertaking treasury decisions and investments using our own resources in order to obtain better rates of return. The Chairman thanked the Accountancy Manager for the clarification of the treasury position and investment income at NHDC. RESOLVED: (1)That the details of the Annual Treasury Management Review for 2013-2014 be noted; (2)That the recommendations to Cabinet concerning inter alia the prudential and treasury indicators for 2013 - 2014 and the Annual Treasury Report be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Annual Treasury Management Review for 2013 - 2014. |
Noted | ||
| 15 |
FUTURE MEETINGS - POSSIBLE AGENDA ITEMS Although there were no suggestions for agenda items at future meetings the Chairman advised that any member of the Committee was welcome to put forward items for consideration directly to himself or via the Committee Clerk. |
Noted | ||