Agenda and draft minutes
Venue: Council Chamber, County Hall, Ruthin
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APOLOGIES Minutes: Apologies were received from lay member Paul Whittham. |
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DECLARATION OF INTERESTS PDF 116 KB Members to declare any personal or prejudicial interests in any business identified to be considered at this meeting. Minutes: No declarations of interest had been 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
had been raised. |
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To receive the minutes of the Corporate Governance and Audit Committee meeting held on 20 November 2019 (copy enclosed). Minutes: The minutes of the Corporate Governance and
Audit Committee meeting held on 20 November 2019 were submitted. Matters Arising: ·
Concerns
which were raised with the lack of statistics from social services included in
the Care Inspectorate Wales - Local Authority Performance Review were noted in
the minutes. RESOLVED that the minutes of Corporate
Governance and Audit Committee meeting
held on the 20 November 2019 be
approved as a correct record. |
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INTERNAL AUDIT UPDATE PDF 132 KB To consider a report by the Head of Internal Audit (copy enclosed) updating members on Internal Audit progress. Additional documents:
Minutes: The Chief Internal Auditor (CIA), introduced the Internal
Audit update report (previously circulated) updating members on the Internal
Audit 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. The CIA guided members through
the reports which provided an update as of the 31 December 2019: ·
Internal
audit reports recently issued; ·
Payment
card industry – data security standards (PCI DSS) ·
General
data protection regulations (GDPR) in Schools ·
Traffic
Regulation Orders ·
Single
Access Route to Housing (SARTH) ·
Waste
and Recycling Proposal Housing Tenancy ·
Office
Accommodation Both the Payment card industry – data security standards (PCI DSS) and
Housing Tenancy would be discussed later in the meeting. ·
General
data protection regulations (GDPR) in school - it was stated that since the
last meeting e-learning training completion numbers had increased from 56% to
76%. Members commended the increase however felt that it would be beneficial
for school governors to be aware of procedures and possibly have their own
training. ·
Traffic
Regulation Orders (TRO) - members queried whether there could be more done in
areas of Rhyl where the public either parked on double yellow lines or on the
curbs. It was stated that work was being carried out however the capacity
within the highways team caused issues. It was advised that Legal had offered
to work alongside highways. The committee understood the issue was nationwide
however queried whether Denbighshire was performing better than surrounding
authorities, officers responded stating that it was similar across the
counties. ·
The
Waste and Recycling Proposal – the project was at an early stage therefore
assurance could not be given. Members were supportive of an audit to be carried
out and the work scrutinised due to the climate emergency. ·
Single
Access Route to Housing (SARTH) - it was stated that there were good
partnership arrangements between Flintshire and Denbighshire. However current
arrangements needed to be more robust to ensure that the partnership continued
to add value for partners and provided effective service to customers. Members
queried where the contact centre for SARTH was located, members were informed
the contact number was a Denbighshire number however the queries would be
directed to a Flintshire office to deal with any queries. ·
Office
accommodation, the climate impact of each office was being monitored. A pilot
case study had been carried out in Russell House revealed that savings and
carbon emissions reductions could be achieved when staff were encouraged to
switch off lights and turn off docking stations when they were no longer in
use, and to leave thermostats as they have been set. There was a corporate
Climate and Ecological Emergency Task and Finish Group set up which aimed to
raise staff awareness and to encourage staff to change their behaviour. ·
County
Hall had significant spare capacity and work was ongoing to see how this space
can be used. The Asset Management Group met regularly to discuss and make decisions
regarding the property portfolio. RESOLVED that
the Corporate Governance and Audit Committee receive the Internal Audit update
report and note its contents. |
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INTERNAL AUDIT OF HOUSING TENANCY PDF 116 KB To consider a report by Chief Internal Auditor (copy
enclosed) providing details of a
recent Internal Audit report of Housing Tenancy that received a ‘Low’ assurance
rating. Additional documents: Minutes: The Chief Internal
Auditor (CIA) introduced the Internal Audit of Housing Tenancy report
(previously circulated) alongside the Lead Officer - Community Housing (LOCH). The report provided details of a recent
Internal Audit report of Housing Tenancy that received a ‘Low’ assurance
rating. The scope of the audit which was carried out focused on data validity
checks, policies and procedures, subletting and lodgers, and tenancy misuse.
Within the review the issues which were highlighted were relating to system
data inaccuracies and absence of tenancy audits to check that the terms of
tenancy agreements were being met e.g. legitimate persons were living at the
property with no unauthorised subletting or lodgers. During the review, the
service confirmed that tenancy audits were due to commence and were in the
process of being rolled out. Procedures and guidelines around tenants
verification checks, subletting, lodgers and tenancy misuse and potential
tenancy fraud required development to ensure that a consistent process was
applied. It was also outlined that whilst Housing staff reviewed National Fraud
Initiative matches, there was little information sharing outside of this to
assist with prevention and detection of fraud. Also, a more coordinated
approach across different housing sections was needed to ensure that all key
information relating to tenants and occupants were recorded to ensure that
tenancy information was kept up-to-date and any potential misuse was addressed. The following points were discussed further
– ·
Since
the audit had been carried out a new IT system was being implemented, and it
was assured that the information which was held would be kept up to date, and
accurate. ·
The
visitation to tenants had proved difficult as some tenants were in occupation
for several years and would not like any disturbances, it was also highlighted that
unless there was legal cause to evict someone, they could only leave if they
wished to. There would also be contact with the residents hopefully once a
year. ·
The
matter of fraud was outlined, and it was clarified that there was a good
community communication with the Council and if something seemed incorrect
local residents would report the matter. Another method which was being rolled
out was to ensure that tenants would supply photographic identification which
ensure the identity of the tenant. Members queried the following points with
officers – ·
Members
commended the work which had been carried out since the audit, however as
corporate landlords stated that the Council should ensure that the correct
tenants reside in the houses. ·
It was queried
whether the photographic images of the tenants would be GDPR compliant. Members
were informed that the taking images of the tenants were compliant and other
Housing Associations used the practice. ·
It was
queried whether tenants would have to inform the Council if they had lodgers in
the house with them. Responding members were informed that it was legal for
tenants to have lodgers as long as the tenant lived in the house as well. ·
Checks
through systems and other agencies was queried. It was clarified that the
National Fraud Initiative was used however with GDPR sharing information
between agencies was not prohibited. ·
It was
queried whether the Housing team have good communication with local elected
members, as they had a good understanding of the wards and the people.
Communication would be carried out with local members. ·
Members
were informed that the Housing team had a good working relationship with the
local Police. RESOLVED – (i)
That the Corporate Governance and Audit
Committee note the audit on the Internal Audit of Housing Tenancy (ii) A follow up report be returned to the Corporate Governance and Audit Committee in ... view the full minutes text for item 6. |
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INTERNAL AUDIT OF PAYMENT CARD INDUSTRY DATA SECURITY STANDARDS (PCI-DSS) PDF 116 KB To consider a report by Chief Internal Auditor (copy
enclosed) providing details of a
recent Internal Audit report of Payment Card Industry Data Security Standards
(PCI-DSS) that received a ‘Low’ assurance rating. Additional documents: Minutes: The Chief Internal Auditor (CIA) introduced the
Internal Audit of Payment Card Industry Data Security Standards (PCI-DSS)
(previously circulated). The report provided members with details on
the recent Internal Audit report of PCI-DSS that received a ‘Low’ assurance rating. The review which was carried out of the
PCI-DSS was to check compliance with the information security standard for
handling credit or debit card payments. While compliance was not a legal
requirement, card merchants and software suppliers often ask for compliance as
part of their contractual agreements. The review focused on: roles and
responsibilities, policy and procedures, training, payment card environment,
processing card payment data, third party processor compliance and compliance
testing and self-assessment. The review highlighted issues relating to the lack
of a programme or strategy to ensure compliance with the PCI-DSS. Training was
inconsistent across services and awareness of proper practices was weak in some
areas due in part to the absence of corporate policy or procedures to direct
consistency. The council has various agreements with card
providers making the card payment environment more complex than it needed to be
and therefore difficult to manage and demonstrate value for money. Also,
PCI-DSS compliance was not considered as part of some historic procurement and
contractual agreements with suppliers that take card payments on behalf of the
council. As a result, some contracts do not state that compliance with the
standards was required. It was stated that cooperation across all services was
required to drive the necessary improvement and so the results of this review
has been reported to the Information Governance Group and to the Senior
Leadership Team to obtain their backing. The following points were discussed in
detail – ·
The
card systems which were used in leisure centres were queried and whether the
Alternative Delivery Model (ADM) would be compliant with the PCI-DSS. Members
were informed that the ADM would be required to comply with the PCI-DSS. ·
Members
commended that a task and finish group would be set up to implement the changes
required. ·
Member
queried the deadlines within the action plan and queried whether the matter
would be dealt with by the deadlines. Members were informed that the first
steps to deal with the matter would be created by the end of March. ·
Members
queried whether there would be any cost savings with complying with the
PCI-DSS. Officers responding stating that there were uncertainties with the
procedures so whether there would be any savings was unknown. RESOLVED that (i)
That the Corporate Governance and Audit
Committee note the audit on the Internal Audit of Payment Card Industry Data
Security Standards (PCI-DSS) (ii) A
follow up report be returned to the Corporate Governance and Audit Committee,
either in September |
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ANNUAL TREASURY MANAGEMENT STRATEGY PDF 143 KB To consider a report by the Head of Finance and Property Services (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 25 February 2020. Additional documents:
Minutes: The Lead Member for Finance, Performance and Strategic
Assets presented the Treasury Management Strategy Statement (TMSS) 2020/21 and
Prudential Indicators 2020/21 to 2022/23 (previously circulated) alongside the
Head of Finance and Property Services (Section 151 Officer). The
report was split into two sections, these covered the Treasury Management Strategy Statement (TMSS) 2020/21 and Prudential
Indicators 2020/21 to 2022/23 as well as the Treasury Management (TM) Update
Report 2019/20. The committee were reminded that the Council was responsible
for its Treasury Management decisions and activity which involved looking after
the Council’s cash. This was a
vital part of the Council’s work because approximately £0.5bn passes through the Council’s accounts every year. The CIPFA Code of Practice on Treasury
Management requires the Authority to approve a treasury management strategy
statement (TMSS) before the start of each financial year. The report was being
discussed in Corporate Governance prior to the report being debated in full
Council on the 25th February Members queried the following points – ·
The
flood defences in Rhyl were discussed by members were informed that the amount
which was borrowed to enable work to be carried out, would be repaid by the
Welsh Government. ·
Members
raised concerns with the risk involved with large projects. They were reassured
that projects were monitored regularly through the Finance reports which were
discussed monthly in Cabinet. ·
The 21st
Century School project would be grant funded. ·
With the increasing risk and very low returns
from short-term unsecured bank investments, the Council would continue to hold a
minimal amount of investments for short-term cash flow purposes and would
continue to place a far greater emphasis on investing with the UK Government’s
Debt Management Office and other local authorities in order to minimise these
risks. ·
Approaching
challenges were known such as Ash Dieback and the appropriate measures would be
taken to deal with the matters as they arise. These issues would likely be
dealt with using Capital and investments. RESOLVED
that (i)
That the Corporate Governance and Audit
Committee review and note the Treasury Management Strategy Statement for
2020/21 and the Prudential Indicators for 2020/21, 2021/22 and 2022/23. (ii) That
the Corporate Governance and Audit Committee note the Treasury Management
Update
Report 2019/20 (iii) The
Corporate Governance and Audit Committee has read, understood and taken account
of the Well-being Impact Assessment. |
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ANNUAL REVIEW COLLABORATIVE PROCUREMENT SERVICE PDF 127 KB To receive a report by the Legal and Procurement Operations Manager (copy enclosed) reviewing the Collaborative Procurement Service Additional documents:
Minutes: The Legal and
Procurement Operations Manager introduced the Annual Review Collaborative
Procurement Service report (previously circulated). The report detailed
how the Council has a collaborative procurement service with Flintshire County
Council. Denbighshire County Council acts as the host authority and provided
the service to Flintshire County Council. The Service had been in place since
2014 and Cabinet agreed to renew the Service Level Agreement (SLA) in 2019 for
a further 3 years. The SLA
established a Procurement Joint Management Board (PJMB) consisting of senior
officers and the Cabinet Member from each Council. The PJMB holds the Service
to account, monitors performance and resolves issues relating to the delivery
of the Service. The SLA states that
the Councils would split the costs based on their share of the combined overall
spend of both Councils. Spending would vary from year to year depending on
capital projects but the Council broadly spends 45% and so its share of the
running costs was 45%. The report covered all aspects of the service such as
budget and structure, as well as performance against its Key Performance
Indicators. The trends noted that over 60% of procurements for quarters 1 to 3
of 2019 have delivered savings on the existing budget. There was still
improvement to be made on the number of collaborative procurements, with only
an average of 13 % of procurements being carried out collaboratively. The number of
contracts including community benefits dipped in quarter 3. It was anticipated
that with the Community Benefits Hub and the appointment of a Community
Benefits Manager, there would be an increase in the number and type of
Community Benefits delivered by contracts. The following
points were discussed in further detail – ·
The
committee highlighted that Lay Member Paul Whitham could not attend the meeting
however he suggested that the matter be discussed in either Partnerships or
Performance Scrutiny Committee alongside being discussed in Corporate
Governance. Members agreed the matter be discussed in Scrutiny chairs and vice
chairs to decide which scrutiny would be best for the matter to be discussed. ·
Officers
agreed with members that the matter would benefit from being discussed in a
Scrutiny committee and the governance aspect of the Collaborative Procurement
Service be discussed annually in the Corporate Governance and Audit Committee. RESOLVED that (i) The
Corporate Governance and Audit Committee note the report and endorse the
proposed actions to improve performance (ii) The
committee refer the annual performance report be sent to Scrutiny chairs and
vice chairs for the report be sent to the appropriate scrutiny committee. |
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CORPORATE GOVERNANCE AND AUDIT COMMITTEE WORK PROGRAMME PDF 222 KB To consider the committee’s forward work programme (copy enclosed). Minutes: The Corporate
Governance and Audit committee’s Forward Work Programme (FWP) was presented
for consideration (previously circulated). 18 March 2020 – ·
The
committee agreed that the meeting had a lot of items to be discussed and agreed
for the following items to be moved – ·
Section
106 Audit Follow up Report and the Support Budgets and Direct Payments Audit
Follow up Report to be discussed in April. ·
The
Head of Finance and Property Services (Section 151 Officer) suggested that the
finance items could be moved to a later meeting. ·
Two items
were agreed to be included which were the Annual Audit Letter by the Wales
Audit Office. The Internal Audit Contract Management was also agreed to be
included for the 18 March meeting. RESOLVED –
that, subject to the
above, the Corporate Governance and Audit committee approves the Forward Work
Programme. |