Agenda and draft minutes
Venue: Conference Room 1B, County Hall, Ruthin
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APOLOGIES |
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DECLARATIONS OF INTEREST PDF 135 KB Members to declare any personal or prejudicial interests in
any business identified to be considered at this meeting. Minutes: Councillors Jason McLellan, Stuart Davies and Mr Paul Whitham declared a personal interest in Agenda Item 10, Financial Management of Schools. |
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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 items were raised 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. |
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To receive the minutes of the Corporate Governance Committee
meeting held on the 17th December, 2014. Minutes: The Minutes of a meeting of the
Corporate Governance Committee held on the 17th December, 2014. Matters arising:- 8. Governance Improvement Plan – In
response to a question from Mr P. Whitham, it was
explained that consideration had been afforded to presenting the Corporate
Governance Committee Annual Report to the April, 2015 meeting of Council to coincide
with the end of the municipal year and the presentation of Annual Reports from
the respective Scrutiny Committees.
Members noted that this would be the first Corporate Governance
Committee Annual Report to be presented to Council. 8. Corporate Governance Committee
Work Programme, 26th March, 2015 – In response to reservations
raised by Councillor S.A. Davies, the HLHRDS confirmed that it had been agreed
that he would prepare an information note which could be presented to a budget
workshop meeting for consideration. The
Chair explained that the presentation of the information to the Scrutiny Chairs and Vice Chairs Group would be the
mechanism for the commencement of the process.
In reply to concerns raised by
Councillor Davies regarding the increasing level of funding contributions
required from the Council into the pension scheme, the HLHRDS confirmed that
this was a statutory scheme set out in the Local Government Pension Scheme
Regulations 2013 with the root power being in the Superannuation Act,
and he provided a brief summary of the contents of the Act. The HLHRDS explained that the Chief Executive
had requested that he provide a presentation to a budget workshop, which he
suggested could include a financial report from the pension fund with regard to
its current financial position and the Governance arrangements for the
fund. It was confirmed by the HLHRDS
that effectively in law neither the County Council nor the Welsh Government
would be in a position to influence the matter. Councillor Davies highlighted the
need to make representations to both Central Government and the WLGA, and the
HLHRDS suggested that this course of action could be raised at a budget
workshop. Councillor Davies expressed the
view that representations be made, regarding the concerns highlighted, at
national level and to the WLGA who had already acknowledged that there were
issues of concern. In reply to a question from
Councillor P.C. Duffy, the HLHRDS agreed to seek clarification regarding
membership of Elected Members to the pension scheme. 9. Financial Payment to Care Leavers
Update – Mr P. Whitham explained that he had not been
satisfied by the explanation provided at the meeting with regard to the lack of
progress. The Chair confirmed that an
update report would be presented to the Committee in March, 2015 when the
matter would be scrutinised robustly. RESOLVED – that, subject
to the above, the minutes be received and approved as a true and correct
record. |
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To consider a report by the Corporate Director of Social Services (copy enclosed) which sets out the key issues arising from the Care and Social Services Inspectorate Wales (CSSIW) evaluation of Denbighshire Social Services performance for 2013-14. Additional documents: Minutes: A copy of a report
by the Director Social Services (DSS), which set out the key issues arising
from the Care and Social Services Inspectorate Wales (CSSIW) valuation of
Denbighshire Social Services performance for 2013-14, had been circulated
previously. A copy of the full
evaluation had been included as Appendix I. The Chair welcomed
Mr Hugh Morgan, Area Manager for CSSIW (AMCSSIW), and the Principal Manager – Business Support to the meeting. The report detailed
the performance evaluation for Social Services including areas of progress,
areas for improvement and risk. Every
year CSSIW undertake a comprehensive evaluation of each Local Authority’s
Social Services performance. The
evaluation draws on a wide range of evidence, including: the Director of Social
Services annual report on performance and plans for improvement in their local
authority area; CSSIW’s regulatory work; and the views of other auditors and
inspectors. The evaluation had been
moderated to ensure a consistent, transparent and proportionate approach. The evaluation of
Denbighshire Social Services had highlighted that there was clarity and focus
in the report which outlined the direction of travel for social care in
Denbighshire and in particular:- ·
There
is powerful evidence of a strategic approach taken to meeting demographic
challenges. ·
The
Council has implemented innovative models of practice and integrated
partnership development. ·
There
is robust scrutiny particularly through service challenges and listening to
views of people underpinning the modernisation agenda. ·
A
strong commitment and forward planning in relation to Welsh language ·
Performance
of the service is strong. A number of specific areas for improvement had been identified in the
report. The Council’s progress in
relation to these would be discussed during regular meetings between the Senior
Management Team and the CSSIW. The areas
for follow-up by the CSSIW next year included:- ·
The
impact of changes to the POVA (Protection of Vulnerable Adults) infrastructure. ·
The establishment
of a rigorous research approach to capturing and responding to the views of
children, young people and their families. ·
Improving
the quality of provision and outcomes for looked after children. Appendix II provided an overview of the areas which were identified for
improvement in the performance evaluation, and information about how the
Council was responding to the areas identified for improvement. Areas identified as requiring improvement were in line with the
Director’s self-assessment and had been embedded within Service Business Plans
for 2014-15. The plans were formally
monitored each quarter by the services, and many elements were reported
bi-annually to Performance Scrutiny and Cabinet as they formed part of the
Corporate Plan. Each service also had an
annual Service Performance Challenge which examined progress against Service
Business Plans. Significant
progress had been made against the areas of improvement highlighted within the
2011-12 performance evaluation report.
It had been recognised that progress had not been as significant as
anticipated in respect of performance relating to looked after children. However, significant improvements had been
made since the inspection with 100% success in key areas. The AMCSSIW
introduced and summarised the CSSIW Performance Evaluation Report and the
following salient points were highlighted:- -
It had
been recognised that the Council had engaged in a strategic five year
modernisation plan, and the resulting considerable changes had been noted with
a reshaping of service provision. -
There
was a good level of scrutiny through the Service Challenge process. -
Areas
of strength were noted and three key areas requiring improvement had been
identified:- (i)
How the
service listened and responded, reference to the collection of data. (ii)
Concerns
pertaining to looked after children, particular reference to areas of health
and education. (iii) The safeguarding of children and adults in particular. ... view the full minutes text for item 5. |
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BUDGET PROCESS 2015/16 - 2016/17 PDF 59 KB To consider a report by the Head of Finance and Assets (copy enclosed) which provides an update on the process to deliver the revenue budget for 2015/16. Additional documents:
Minutes: A
report, and confidential Appendix, by the Head of Finance and Assets (HFA),
which provided an update on the process to deliver the revenue budget for
2015/16, had been circulated previously. The HFA introduced
the report and explained that the budget process had moved into Phase 3 which
was focussed on finalising the 2015/16 budget.
Appendix 1 provided an illustration of the budget process. The process would revert to consideration of
the 2016/17 budget with Member budget workshops arranged to focus on saving
proposals in February and March 2015, and this would become Phase 4. The forecast budget gap for 2016/17 was
approximately £8.8m, and savings of £2.7m had been approved as part of the
current process leaving a gap of approximately £6.1m. An updated table of
key events in the process to the end on March, 2015
had been included as Appendix 2. Further
dates and details would be added following a scheduled budget session with SLT
in February. A report approved by Cabinet on the 13th January,
2015, which set out recommendations to be made to Council on the 3rd
February, had been included as Appendix 3.
The CA explained that there had been minor amendments to the report
presented to Cabinet which included a further analysis of council tax levels
across North Wales, and comments received following the LJCC meeting held on
the 14th January, 2015. The report set out proposals to
balance the 2015/16 budget, including raising Council Tax by an average of
2.75%, the level assumed in the Council’s budget plans, and use of general
balances. Following the budget workshop
in December, it also included a formal recommendation to prioritise the
delivery of the Corporate Plan in future budget rounds. The report to Council in December highlighted
the significant consultation process and details had been included in the
report, together with, details of possible risks and the actions implemented to
negate and address them. The CA invited
Members attention to Section 10 of the report, which included the specific
risks referred to by Mr P. Whitham at the previous
meeting. He explained that SLT would be
considering these specific issues, and the general implementation of the savings,
at a meeting scheduled for the 5th February, 2015. The CA confirmed that a report of the outcome
of the meeting would be presented to the Corporate Governance Committee. During the ensuing discussion Mr Whitham expressed his appreciation for the inclusion of the
risks in the report. In response to a
question from the Chair, the CA confirmed the budget process for 2016/17 would
commence in February, 2015. However, he
explained that some of the proposals had already been agreed and he provided a brief
summary of the process adopted. RESOLVED – that
Corporate Governance Committee:- (a)
receives and notes the contents of the report on the
latest update, and (b)
agrees that a
report of the outcome of the SLT meeting on the 5th February, 2015
be presented to the Corporate Governance Committee. (RW to Action) |
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PROCUREMENT OF CONSTRUCTION SERVICES UPDATE PDF 70 KB To consider a report by the
Acting Strategic Procurement Manager (copy enclosed) which details progress on Internal Audit’s latest
follow up work of Procurement of Construction Services. Additional documents: Minutes: A
report by the Acting Strategic Procurement Manager (ASPM) had been circulated
previously. The ASPM introduced
the report which provided details of progress on Internal Audit’s latest follow
up work of Procurement of Construction Services following its initial report in
October, 2013 and the Wales
Audit Office’s (WAO) report of March, 2014.
This was the second follow up report, with the previous one having been
submitted in September, 2014. The Committee had
requested that a further follow up report for Procurement of Construction
Services be presented to provide assurance that improvements had been made
since the December, 2014 report. Details of the
findings of the Internal Audit report on Procurement
of Construction Services in October, 2013, and the WAO report, which
covered school building maintenance work, had been included in the report. The follow up Action Plan, Appendix 1,
incorporated all 21 actions from both the Internal Audit and WAO Action
Plans. Although some progress had been
made since the follow up reports in September and December 2014, only eight
actions had been fully implemented. A
further two had now been completed and the remaining actions were in
progress. In particular, there had been
progress in developing a draft procurement strategy and there had been
significant progress on the contract management functionality in the e-sourcing
system following increased effort in gathering data. The transfer of the Collaborative Procurement
Service from Finance and Assets to Communications, Marketing and Leisure may
impact slightly on some timescales. The ASPM provided a
detailed summary of the Action Plan, Appendix 1, and explained that the
majority of the delays experienced had related to staffing and RCF issues. The WAO Representative acknowledged the
progress made and referred to the matters which were still outstanding and
suggested that a further progress report be presented to the Committee in May,
2015 when these action points had been addressed. Mr P. Whitham highlighted the importance of ensuring that all
members of staff directly involved in procurement were aware of the CPR’s and
received the necessary training as soon as possible, and that evidence was
available that the training had been delivered.
The ASPM explained that corporate induction packs for new starters now
included details pertaining to the CPR’s, a review of training materials was
currently being undertaking based on the training provided by Flintshire County
Council and a schedule of training courses would be arranged for the 180
members of staff who roles included work with CPR’s, with each member of staff
being required to provide written confirmation of receipt of the training. In response a
question from Mr Whitham, the ASPM explained that the
provision of training on CPR’s for members of staff based in schools would be
arranged by the Education Planning and Resource Manager, and details could be
provided during consideration of business item number 8 of the agenda. The ASPM also confirmed that the CPR’s would
be applied to the delivery of the Council’s Corporate Plan, particular
reference being made to the role out of the twenty first century schools
programme. Councillor D.C.
Duffy expressed his concern regarding the delays experienced in meeting the
timescales as outlined in the Action Plan. RESOLVED – that
Corporate Governance Committee:- (a)
receives the report and expresses its
concerns regarding the delays experienced in meeting the timescales as outlined
in the Action Plan, and (b)
requests
that a progress report be presented to the May, 2015 meeting of the Committee. (SA to Action) |
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TREASURY MANAGEMENT REPORTS PDF 59 KB To consider a report by the Head of Finance and Assets (copy enclosed) which incorporates the Treasury Management Strategy Statement 2015/16, Prudential Indicators 2015/16 and Update Report 2014/15. Additional documents:
Minutes: To receive a report
by the Head of Finance and Assets (copy enclosed) which incorporated the Treasury
Management Strategy Statement 2015/16, Prudential Indicators 2015/16 and Update
Report 2014/15. The TMSS, Appendix 1 shows how the Council would manage its
investments and its borrowing for the coming year and sets the policies within
which the TM function operates. The
report also outlined the likely impact of the Corporate Plan on this strategy
and on the Prudential Indicators. The TM Update Report,
Appendix 2, provided details of the Council’s TM activities during
2014/15. The CA outlined the changes in
policy which included the implications pertaining to the Banking Reform Act and
the national ending of the subsidy system for the Housing Revenue Account in
Wales. Members
were informed that the figures contained in the TMSS were draft and would be
updated prior to approval by Council based on the latest Capital Plan in
February, 2015. TM involved looking after the Council’s cash which was a vital part of
the Council’s work as approximately £0.5bn passes through the Council’s bank
account annually. At any one time the
Council had at least £20m in cash so it was important to ensure the best rate
of return possible was achieved without putting the cash at risk, which was the
reason for investing money with a number of financial institutions. When
investing, the Council’s priorities would be to:- ·
keep
money safe (security); ·
make
sure that we get the money back when we need it (liquidity); ·
make sure we get
a decent rate of return (yield). The TMSS for 2015/16 had been set out in Appendix 1. The report included Prudential Indicators
which set limits on the Council’s TM activity and demonstrated that the
Council’s borrowing was affordable. A
summary of the detail in Appendix 1 was provided by the CA. The Council Fund indicators were based on the latest proposed
capital bids and block allocations and these would be updated prior to
submission of the report to Council for approval on the 24th
February, 2015. The Housing Revenue Account indicators had been calculated
based on the latest estimates from the Housing Stock Business Plan. The individual Prudential Indicators
recommended for approval had been set out in Appendix 1 Annex A. The WG had concluded negotiations with HM
Treasury regarding the reform of the HRA subsidy system in Wales. There would be a need to borrow between £39m
and £55m on the 2nd April, 2015 to buy out of the subsidy scheme to
become self-financing. The impact of
this had been built in to the HRA prudential indicators and further details of
the buy-out had been included in Appendix 1 Section 8. Appendix 3 included a risk and sensitivity
analysis relating to the HRA buy-out. The TM update report,
Appendix 2, highlighted the changes implemented to the investment strategy,
Appendix 1 Section 3, as a result of bail-in risk which would mean that banks
would not be able to rely on government support if they get into difficulty and
would be required to bail themselves out by taking a proportion of investors’
deposits to build up their capital.
These changes involved moving away from conventional bank deposits to
secured investments such as reverse repurchase agreements (REPOs) and covered
bonds. Details of
the consultation process had been included in the report, and it was confirmed
that the revised
CIPFA Code of Practice on TM had been adopted on the 28th February,
2012. It explained that it was a
requirement of the Code for Council to approve a TMSS each financial year. At this juncture in ... view the full minutes text for item 8. |
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CLWYD LEISURE REVIEW To receive a verbal update report by the Corporate Director: Economic and Community Ambition in respect of Clwyd Leisure. Minutes: The Chair
provided background information regarding the issue in question and expressed
concerns regarding the timescales for the production and presentation of the
report to the Committee. He emphasised
that he felt that the decision not to assign the compilation of the report to a
Senior Officer, with the appropriate experience, could have contributed to the
delays experienced. The HIA informed
Members that he had become involved in the production of the report at the request
of CET, who had expressed their dissatisfaction with the manner in which the
original report had been presented. He
explained that the drafting of the report had been more onerous than originally
anticipated, however, it was now almost complete and would be presented to the
Committee in March, 2015. The HIA explained
that the report detailed the lessons learned and was similar to the previous
theoretical review which he had undertaken, which merged work carried out in
respect of arm’s length companies into the Clwyd Leisure Report. At the request of
the Chair, it was agreed that the report be circulated to Members of the
Corporate Governance Committee following its completion, together with details
of any exemptions. In response to
questions from Members, the HIA confirmed that the report would address all the
issues of concern raised and would include a framework for future reference. RESOLVED – that
Corporate Governance Committee:- (a)
receive
and note the contents of the report. (b)
agree that a further report be
presented to the March, 2015 meeting of the Committee (IB and GW to Action) |
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FINANCIAL MANAGEMENT OF SCHOOLS To receive a verbal report by the Education Planning and Resource Manager on the financial management of schools. Minutes: The HIA provided a
summary of the background to issues pertaining to the financial management of
schools and explained that the concerns raised related to school credit
balances rather than deficit balances.
He informed the Committee that from an audit prospective they were well
managed despite having pressures on specific balances. The Head of Customers and Education Support
had met with Members and this had provided assurances in relation to the
current position. A copy of the three
year forecast by school for 2014-15 to 2015-16 was circulated at the
meeting. Councillor P.C. Duffy expressed
concern that the document had not been circulated to Members of the Committee
prior to the meeting. The Education
Planning and Resource Manager (EPRM) summarised the three year forecast paper
which provided details of the Total Surplus/(Deficit) figures for the 2014/15
Budget, 2014/15 Surplus (deficit), Actual % to variance to budget, Claw back
over 5% threshold and over the WG threshold. The following
issues were highlighted by the EPRM:- -
WG
recommended level of balances being £3,3m. -
Total
surplus for all schools currently recorded at £2.9m, which was below the recommended
Denbighshire Policy of 5%. -
Some
schools were carrying balances in excess of 5%. -
Change
of WG Regulations in September, 2010, provided Local Authorities with the power
to claw back balances in excess of £50k for primary and £100k for secondary
schools. -
Denbighshire
currently £400k below WG recommendation for balances for total schools. -
Due to
broad spectrum of schools Denbighshire had decided not to enforce the rule in
their schools. The impact over a three
year period being more relevant than over one year. -
Reference
made to the relevance and impact of a standstill budget for schools until
2014/15 and 2015/16. -
The WAO
Representative questioned the reason for two secondary schools having greater
balances than other schools. The EPRM
explained that the schools were special schools and the retained balances were
for the undertaking of programmed work at the schools. -
In
response to questions raised, the EPRM explained that Ysgol Pendref
was a school in financial difficulty, and a recovery plan was currently being
developed. The EPRM referred
to the three year plan and informed the Committee that circulation of the secondary school
budgets was imminent. However, those
relating to primary schools would be delayed due to WG changes relating to the
funding foundation phase. Finance
managers would work with the school governors and headteacher
to produce a revised three year plan, the details of which would then be
incorporated into the figures circulated. During the ensuing
discussion, the Committee agreed that consideration of a further report be
included in the forward work programme of the Scrutiny Chairs and Vice-Chairs
Group for deliberation. The CA felt that
it might be beneficial if the report coincided with the report on the final
position for 2014/15. In reply to a
question from Mr P. Whitham, the EPRM referred to the
schools purchasing rules and provided details of the provision of training for
school staff to ensure compliance with the new CPR‘s. RESOLVED – that
Corporate Governance Committee:- (a)
receive and note the contents of the report,
and (b)
request
that consideration of a further report be included in the forward work
programme of the Scrutiny Chairs and Vice-Chairs Group.
(JW, CW and RW to Action) |
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FEEDBACK ON THE CORPORATE EQUALITIES MEETING To receive a verbal report from Councillor
M.L. Holland. Minutes: Councillor Holland
had been unable to attend the meeting and had submitted an apology. |
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CORPORATE GOVERNANCE COMMITTEE WORK PROGRAMME PDF 135 KB To consider the Committee’s forward work programme (copy enclosed). Minutes: The
Corporate Governance Committee’s Forward Work Programme (FWP) (previously
circulated) was presented for consideration. The
Committee confirmed the Corporate Governance Committee Forward
Work Programme subject to the inclusion of the following:- 26th
March, 2014 – A report on Clwyd Leisure by the Corporate Director: Economic and
Community Ambition. 20th May, 2015 – A report on the
Procurement of Construction Services by the Acting Strategic Procurement
Officer. The Committee also agreed that a further report on the Financial
Management of Schools, School Balances, be submitted to coincide with the Final
Outturn Reports. RESOLVED – that,
subject to the above, the Committee approves the
Forward Work Programme. Meeting ended at 13.05 p.m. |