Agenda and draft minutes
Venue: Conference Room 1A, County Hall, Ruthin
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APOLOGIES Minutes: Apologies for
absence were received from Councillor Martyn Holland and Councillor
Joe Welch. Apologies for
absence were received from Lay Member Paul Whitham Apologies for absence were received from Wales
Audit Office representatives Derwyn Owen and Gwilym
Bury. |
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DECLARATION OF INTERESTS PDF 115 KB Members to declare any personal or prejudicial interests in any business identified to be considered at this meeting. Minutes: No declarations of interest were raised. |
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URGENT MATTERS Notice of items, which in the opinion of the Chair should be considered at the meeting as a matter of urgency pursuant to Section 100B(4) of the Local Government Act 1972. Minutes: No urgent matters. |
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To receive the minutes of the Corporate Governance Committee meeting held on 21 November 2018 (copy enclosed). Minutes: The minutes of the Corporate Governance Committee held on 21 November 2018 were submitted. RESOLVED that the minutes
of the Corporate Governance Committee meeting held on the 21 November 2018 be
approved as a correct record. |
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At this juncture it was agreed to vary the order of the Agenda. |
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ANNUAL REPORT ON THE CONSTITUTION TO INCLUDE THE TERMS OF REFERENCE PDF 120 KB To consider a report by the Monitoring officer (copy
enclosed) updating members on the Council’s
Constitution and a review of its provisions, in particular, the application of
political balance to the composition of the Cabinet. Additional documents:
Minutes: The Monitoring
Officer (MO) introduced the Annual Report on the Constitution including the
terms of reference (previously circulated) providing members with a review of
its provisions, in particular, the application of political balance to the
composition of the Cabinet. The
MO confirmed that the Corporate Governance Committee is as part of its terms of
reference required to monitor and review the Council’s Constitution. The report
provided to members referred to updates to be made to the Constitution to take
into account decisions of Council and Cabinet and any legislative or
operational changes that had taken place since the last review. It was highlighted
that Council had passed a motion on 23rd October 2018 to ask
Corporate Governance Committee to consider options on how the Constitution
could be changed to remove the requirement for political balance in the Cabinet
and report its conclusions to Full Council on 19th February 2019. The MO guided
members through Appendix 4 to the report, which highlighted the proposed
changes to the constitution. Members observed a
complaints report had been regularly presented to Performance Scrutiny for
debate with an annual overview of the complaints procedure received. Members were in
agreement that the Corporate Governance Committee should receive an annual
report monitoring the complaints procedure and identifying any trends that may
need to be considered. It was noted that any matters arising from such a report
could be referred to Scrutiny Chairs and Vice Chairs to determine whether
further scrutiny was required... Members and the
Chair confirmed they were in agreement with the proposed amendments. The MO guided
members through Appendix 1 to the report, which outlined the form and
composition of the Cabinet. The current model adopted by Denbighshire was that
of a ‘strong leader model’ in which the Leader has the authority to appoint
Cabinet members. It was confirmed that
Denbighshire County Council was the only authority in Wales to have a
requirement for a politically balanced Cabinet. There is no legal obligation
for the Cabinet to remain politically balanced. Following an
in-depth debate the following points were discussed in greater detail: ·
Members were in
agreement that the Strong Leader Model was the most appropriate model to elect
Cabinet members. ·
All political
parties had an input into the decision making process. Observers had been
invited to talk and debate on matters at Cabinet. Members raised concerns that
Denbighshire had been the only authority in Wales to have the political balance
requirement. ·
It was agreed
that change had to be for the better. If change was agreed the outcome would
have to provide better outcomes for residents of Denbighshire. The majority of
members felt the removal of the political balance requirement in the Cabinet
would allow the Leader a wider scope of individuals to appoint on the Cabinet
and provide more knowledge and expertise.
Members noted that all had a role in decision making. The Chair thanked
officers for the detailed report and work that had been presented. Members
appreciated the complexity of the subject. Members proposed to
recommend to Council the removal for the requirement of political balance with
the continuation of the Strong Leader model adopted. Members voted and the
proposal stood. It was therefore; RESOLVED,
that members i.
Recommend to Council the removal of Political
Balance in the Cabinet and that the “Strong Leader” model be adopted; ii.
agree the proposed changes to the Constitution as
stipulated in Appendix 3 and 4 to the report. |
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ANNUAL TREASURY MANAGEMENT STRATEGY PDF 132 KB To consider a report by the Chief Finance Officer (copy attached) on Treasury Management to allow the committee to review the Treasury Management Strategy and Prudential Indicators before they are considered for approval by Council on the 19 February 2019. Additional documents:
Minutes: The Chief Finance Officer (CFO) introduced
the Annual Treasury Management Strategy Statement (TMSS) Report (Appendix 1 -
previously circulated) which showed how the Council would manage its
investments and its borrowing for the coming year and sets out the Policies
within which the Treasury Management function operate. The Treasury Management Update Report
(appendix 2) provided details of the Council’s Treasury Management activities
during 2018/19. The Chartered Institute of Public Finance
and Accountancy’s Code of Practice on Treasury Management (the “CIPFA TM Code”)
requires the Council to approve the TMSS and Prudential Indicators annually.
The Corporate Governance Committee is required to review this report before it
is approved by Council on 19 February 2019. During discussion the following points were
raised – ·
Confirmation was
provided that the report would be presented to full Council following members’
recommendation. ·
The CFO stated
that the Council used Arlingtonclose Ltd Treasury Advisers. The contract with
the advisor agency had been renewed in January 2019 for three years. ·
Denbighshire
County Council borrowed money for Capital purposes only. Recent developments in the County have seen
the Council borrow more funds. ·
The Pension fund
was a separate fund that had its own governance. The Chair thanked the officers for the transparent
report and acknowledged the hard work that the finance department had made in
the findings of the report. RESOLVED, that the Committee note the Treasury
Management Strategy Statement for 2018/19, the Prudential Indicators 2019/20 to
2020/21. The Committee note the Treasury Management Update Report and confirm
it has read, understood and taken account of the Well-being Impact Assessment
as part of its consideration. |
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CLOSURE OF STATEMENT OF ACCOUNTS PDF 335 KB To consider a report by the Chief Accountant (copy enclosed) updating members on the progress towards the statutory early closure of the accounts. Minutes: The Chief Accountant (CA) introduced the
report (previously circulated) providing a summary of the work involved in the
financial year- end closedown process and to update members on the progress
made towards the statutory early closedown of accounts. The report highlighted
an agreed change to the way the Council deals with non-material errors that are
identified during the audit that will affect the final Welsh Audit Office (WAO)
report to Corporate Governance Committee. The CA guided members through the report,
highlighting the Welsh Governments proposal to bring forward the publishing
dates of the Statement of Accounts. It was confirmed that progress had been
observed last year to close the Statement of Accounts at an earlier date than
the year before. The CA assured members the Council was making positive progress
working towards earlier deadlines for the coming year. The CA thanked the WAO representatives and
officers for the support and work to ensure compliance to the earlier deadline
had been met. It was confirmed a strong working relationship between Denbighshire
Officers and WAO had been established for coherent working, The WAO representative echoed the update
from the CA, adding that communication with the Finance team would still remain
transparent. Completing a clean set of accounts would remain the priority of
the Council and WAO. During discussion the following points were
raised – ·
Assurance was
provided that deadlines to date had all been met and work to meet the target
for 18/19 was on course. ·
Work to transfer
the core Statement of Accounts from a Word Document to an Excel Spreadsheet had
begun. It was felt that this would speed up the process of compilation in the
final month and help to eliminate typing errors. RESOLVED that the Corporate Governance Committee
receive the report and note, I. the
progress made towards achieving the early closedown dates as stipulated by
Welsh Government, II. the change
in approach in the way the Council deal with identifying accruals which has
been agreed with WAO which involves implementing a de-minimis of £1,000 for
mandatory accruals. |
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ANNUAL AUDIT LETTER PDF 110 KB To receive for information the Annual Audit Letter for Denbighshire County Council 2018-2019, from Wales Audit Office (copy enclosed). Additional documents: Minutes: The Wales Audit Office (WAO) provided
Members with an information letter (previously circulated) detailing the Annual
Audit letter for Denbighshire County Council 2018-2019. The WAO representative confirmed a report on
the certification of grant claims and returns would be presented to Corporate
Governance Committee once completed. RESOLVED, that the committee receive and note the
content of the WAO letter. |
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At this
junction (11:10 a.m.) there was a 10 minute break. Meeting reconvened
at 11:20 a.m. |
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INTERNAL AUDIT UPDATE PDF 121 KB To consider a report by the Chief internal Officer (copy enclosed) updating members on Internal Audit progress. Additional documents: Minutes: The Chief Internal Auditor (CIA) introduced
the report (previously circulated) updating members on the Internal Audit Team’s
progress in terms of its service
delivery, assurance provision, reviews completed, performance and effectiveness
in driving improvement. The report provided information on work
carried out by Internal Audit since the last committee meeting. It allowed the
committee to monitor Internal Audit’s performance and progress as well as providing summaries of Internal
Audit reports. The CIA guided members through the reports
which provided an update as of the end of December 2018 on – ·
Internal audit reports recently issued i.e. Risk Management, IT
Procurement, Registration Service and Additional Learning Needs, Recoupment
& Out of County Placements; ·
Progress on Internal Audit work to date in 2018-19; ·
Progress on counter fraud work including School Fund Certificates; ·
Update on Internal Audit performance against set standards; and ·
Update on progress with the CIPFA Good Practice for Audit Committees. The following matters were discussed in more
detail – ·
Additional
Learning Needs, Recoupment and Out of County Placements – The CIA confirmed the
budget required for the need was a national issue. Cabinet members had been
made aware of the current situation and risks had been monitored well to date. ·
Risk Management
- Members noted the work undergone to improve the Council’s risk management. It
was highlighted that risk management had worked well. ·
IT Procurement –
The CIA referred to the issues highlighted in the report. It was confirmed work
had begun to address the issues raised in the audit with work to address the
outstanding issues ongoing. ·
Progress with
Counter Fraud Work – The CIA confirmed that officers from the audit department
had attended a fraud investigation skills course. Members observed that the fraud figures had
increased. It was confirmed by the CIA that work with HR had continued to
establish any trends. It was important to highlight the importance of reporting
fraud. Members were pleased to note the work by officers on addressing fraud. ·
School Fund
Certificate – Requests to Schools for School fund Certificates had progressed.
Work to obtain all school certificates continued. Members thanked the CIA and the audit team for the continued
work. Members felt it was important to highlight the importance of working with
Welsh Government to address the national concerns regarding additional learning
needs. RESOLVED that the Corporate Governance Committee
receive the Internal Audit update report and note its contents. |
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UPDATE REPORT - JOINT PROCUREMENT UNIT PDF 195 KB To consider a report by the Chief internal Officer (copy enclosed) updating members on the progress in implementing the agreed action relating to low assurance report “Joint Corporate Procurement Unit” that was presented to this Committee in June 2018. Additional documents: Minutes: The Chief Internal Auditor (CIA) introduced
the report (previously circulated). The report provided members an update on
progress in implementing the agreed action relating to the low assurance report
“Joint Corporate Procurement Unit” that was presented to this Committee in June 2018. The Legal and Procurement Operations Manager
(LPOM) guided members through the report. The LPOM provided members with
updates on each action that had been raised as part of the initial audit and
emphasised the work that had been done to address the concerns highlighted. The CIA confirmed, Flintshire had received
the report. The Audit had been a reflection of a joint working relationship and
it had been imperative that both authorities scrutinised the findings. The Monitoring Officer emphasised the work
that had been established by the LPOM to improve the standards and address the
concerns of the joint procurement unit. It was highlighted that further work was
required to ensure robust working procedures. Members were informed of the
importance of officers’ understanding of the policies and procedures relating
to procurement. The Chair thanked the LPOM for the
transparent and open explanation of the work that had been established to
address the concerns initially raised.
Members were pleased to see work had begun to establish a positive
approach to joint working with Flintshire. It was noted that the internal audit
department had scheduled a follow-up review to take place in March. The CIA
confirmed that the findings of the review to be conducted in March would be
presented to members following the findings. RESOLVED that the update report be received by the
Corporate Governance Committee and its contents noted. |
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INTERNAL AUDIT OF THE REGISTRATION SERVICE PDF 108 KB To consider a report by the Chief internal Officer (copy
enclosed) providing
details of a recent Internal Audit report on the
Registration Service that
received a ‘Low’ Assurance rating. Additional documents: Minutes: The Chief Internal Auditor (CIA), introduced
the report (previously circulated) providing members with details of the
Internal Audit report on the Registration Service that received a ‘Low’
Assurance rating. The Lead Member for Corporate Standards with
the Legal and the Business Support Manager guided
members through the Audit report. The Lead Member welcomed the report and
recognised the issues that it had raised. It was noted that the request for an
audit had been made by the department to aid officers enhance the registration
service the County provided. Members were informed that a number of changes in
the service had been made. The Monitoring Officer highlighted the
issues that had been raised in the audit review had been noted and identified
by the department for improvement. Work to improve the service had begun prior
to the escalation meeting which had been noted as a positive approach to the
report findings. Members praised the work to
develop the registration service and were pleased with the move to the Town
Hall in Rhyl for registration purposes. Members congratulated the department
for the work they had completed to promote the authorities registration
services. The Chair thanked the Lead Member
and Officers for the transparent report. Praise was given for the request for
an audit and support from members was given to enhance the registration
service. Members agreed to monitor the audit action plan and requested an
update report be provided to the committee in September 2019. RESOLVED, that the Corporate Governance Committee; I. Receives
the report and notes its contents and II. An update
on the Joint Procurement Unit be included in the committees Forward Work Programme
for September 2019. |
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CORPORATE GOVERNANCE COMMITTEE WORK PROGRAMME PDF 225 KB To consider the committee’s forward work programme (copy enclosed). Minutes: The Corporate
Governance Committee’s Forward Work Programme (FWP) was presented for consideration (previously
circulated). The Committee confirmed the Corporate
Governance FWP subject to the following amendments:- March 2019 – ·
Annual RIPA
report. Including inspection report. ·
Internal Audit
Annual Strategy report. 5 June 2019 - ·
Internal Audit
Annual Report ·
An update report
on the Procurement Internal Audit Report 11 September 2019 – ·
An update report
on the Registration Service Internal Audit Report RESOLVED that, subject to the above, the Corporate
Governance Committee approves the Forward Work Programme. |
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The meeting concluded at 12:35 p.m. |