Agenda and draft minutes

Dylai Aelodau ddatgan unrhyw gysylltiadau personol neu sy’n rhagfarnu gydag unrhyw fater a nodwyd y dylid ei ystyried yn y cyfarfod hwn. 

The following interests were identified in business items to be considered at the meeting.

Agenda Item 5:  Budget update – personal interests were declared by Councillors G.M. Kensler and M.Ll. Davies.  The reason for the declarations were that the respective Councillors were recipients of Local Government Pensions.

Agenda Item 6:  Protocol for Member Representatives on Outside Bodies – a personal interest was declared by Councillor M.Ll. Davies.  The reason for the declaration was that the respective Councillor was a member of the North Wales Fire and Rescue Authority.

Hysbysiad o eitemau y dylid, ym marn y Cadeirydd, eu hystyried yn y cyfarfod fel materion brys dan Adran 100B(4) Deddf Llywodraeth Leol 1972.

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.

To receive the minutes of the Corporate Governance Committee meetings held on:-

(i)    4^th September, 2013.

(ii)  27^th September, 2013

The Minutes of a meeting of the Corporate Governance Committee held on:-

(i)     4^th September, 2013 were submitted.

Matters arising:-

6.  Budget Update – Members were informed that Quay Street Car Park, Rhyl would be re-opened and details of the income and expenditure figures for the car park would be circulated by the Head of Finance and Assets.

RESOLVED – that the minutes be received and approved as a true and correct record.

(ii)          27^th September, 2013 were submitted.

RESOLVED – that the minutes be received and approved as a true and correct record.

To consider a report by the Head of Finance and Assets (copy enclosed) which provides an update of the latest position on the process of setting the Council’s budget for 2014/15, and seeks consideration of the next batch of savings to be proposed to County Council.

A report by the Head of Finance and Assets, previously circulated, provided an update of the latest position on the process of setting the Council’s budget for 2014/15, and sought consideration of the next batch of savings to be presented to County Council.

The Corporate Governance Committee had an oversight role of the budget process, and Appendix 1 included details of the savings proposals.

The draft Local Government Settlement for Wales 2014/15 had been published on the 16^th October, 2013.  The headline figures had been:-

·                     Average cash reduction across Wales of -3.5%

·                     Denbighshire had the worst settlement in Wales at -4.6%

·                    A damping mechanism had been applied to lessen the impact in 2014/15 but this would have an impact in 2015/16

Reference was made to uncertainties around some of the detail within the Settlement, specifically relating to the Council Tax Reduction Scheme funding and the treatment of additional Pupil Deprivation grant funding in relation to the requirement to protect school budgets.  It was hoped that details would be clarified following a meeting of the Society of Welsh Treasurers on the 25^th October.  In addition details were awaited of an actuarial review of the Clwyd Pension Scheme and it was anticipated that a review would increase employer’s costs.  The draft Settlement and other pressures had meant that a savings target of approximately £8.5m had been set, though this may change as details become clearer. 

The budget process had resulted in savings of £1.7m for 2014/15 being approved by Council in September, and on the 21^st October, a Member Workshop presented additional proposals amounting to £4.5m.  Lead Members had provided details of the savings, the impact and an assessment of risk and these would be presented to Council in December for approval.  Further savings to balance the 2014/15 budget could be considered separately at the next Member Workshop in December, and be presented to Council for approval in January or February 2014.

It would be important to ensure that Members were afforded the opportunity to raise questions or concerns about any of the savings proposed for approval in Appendix 1.  The Lead Member and Head of Finance and Assets had agreed to discuss any of the proposals in detail prior to their presentation to Council.  The budget underpinned the delivery of all priorities and Council services, and the Appendix identified savings of £4.5m for 2014/15.  Savings of £1.7m had previously been agreed and the saving target for 2014/15 could be £8.5m.

A copy of the current update was presented to the Committee at the meeting by the HFA and the following issues and salient points were highlighted.  In reply to a question from the Chair, the HFA explained that despite the statement in the Finance Section of the Welsh Government Website LA’s were having less discretion over how they spent their money, particular reference being made to the disparities related to ring fencing, the protection of schools and the directive from WG to increase funding to schools by 0.9%.  Other areas which influence the budget were summarised by the HFA, which included:-

-               the impact of the Council Tax Reduction Scheme.

-              the number of the County’s population in receipt of benefits, the type of claimants and level of support provided.

-               uncertainty surrounding the Council Tax Scheme.

-              the withdrawal of ring fencing for Social Services for the coming financial year.

-              a Local Government proposal to Welsh Government for a review of grants received to achieve greater flexibility.

-               the impact of the Pupil Deprivation Grant.

-              a proposed increase of 2% in the Fire and Rescue  ...  view the full minutes text for item 5.

To consider a report by the Head of Legal and Democratic Services (copy enclosed) on Member representatives on outside bodies.

A copy of a report by the Head of Legal and Democratic Services (HLDS) had been circulated with the papers for the meeting.

The HLDS explained that elected Members could be involved in a wide range of outside bodies (OB’s) which included community organisations, charitable trusts, sports and recreation clubs, housing associations and companies.  A Member could be appointed to sit on these organisations by the Council or in other cases, could be appointed independently of any Council involvement.

Members appointed to sit on OB’s by the Council were treated differently under the Code of Conduct to those appointed independently of any Council involvement insofar as declarations of interest were concerned, particular reference being made to the definition of prejudicial interests and exemptions.  Any Member appointed to an OB by the Council may have the benefit of an indemnity in certain circumstances by the Council which would not apply if appointed independently of any Council involvement.  Members’ attendance at a meeting of an OB, if appointed by the Council, could be recognised as an attendance by the Member for the purposes of the Local Government Act 1972, in determining whether a Member was disqualified for non-attendance.  Mr P. Whitham felt that the appointment of a Member by the LA, or independently, to an OB may not be perceived by the public as consequential.

A Members role in relation to an OB would vary depending on the body.  Some Members would become directors of companies, trustees of charitable trusts, members of management committees in a decision making capacity or may merely be non decision observers or representatives.  Each of the different roles carried different legal obligations and may attract different levels of indemnity cover. 

Members had an important role in representing the Council on OB’s and the Council could acquire the following benefits from Members involvement:-

·                     To provide knowledge, skills and expertise, which may not otherwise be available.

·                     To provide local accountability or democratic legitimacy to the appointment of an elected representative.

·                     To ensure that good relationships can be maintained with the body.

·                     To deliver a partnership project that requires the input of other organisations or community groups.

·                     To protect the Council’s investment or asset, i.e. if the Council provided grant funding or provides funding for service delivery.

·                     To lever in external funding which would not be available to the Council on its own.

To ensure Council representation on OB’s remained relevant and provided the benefits outlined, appointees should provide information and reports periodically to the Council on the activities of the organisation.  It would also be important to ensure the Council were aware of the use being made of funding they had provided.

A number of ways of reporting back had been outlined.  Some Members reported back through regular briefing notes and Members’ newsletters, others reported back through more formal means either by reports to Cabinet, Scrutiny, Council or Informal Council.  The report suggested that a one size fits all approach would not be appropriate, as some OB’s had a more significant impact on the Council than others.  In reply to questions from Councillor M.Ll. Davies, the HLDS explained that where more than one Member had been appointed to an OB, agreement could be reached where one Members reports back to the Council, and copies of minutes of meetings of OB’s could be forwarded by e-mail. 

A list of Members appointed to OB’s had been included in Appendix 1.  Some OB’s had a greater impact on the Council’s priorities and communities than others, with some being in receipt of substantial financial support from the Council and others having less  ...  view the full minutes text for item 6.

To consider a report by the Head of Internal Audit (copy enclosed) which provides an updated action plan resulting from the review of the Council’s governance framework and the Annual Governance Statement (AGS) 2012/13.

A report by the Head of Internal Audit, which provided an updated action plan resulting from the review of the Council’s governance framework and the Annual Governance Statement (AGS) 2012/13, had been circulated previously.

The Audit Manager (AM) introduced the report and confirmed that the Corporate Governance Committee monitored the Corporate Governance Framework (CGF) Action Plan on a regular basis as part of the Council’s overall governance arrangements to make sure that the Council implemented the necessary improvements effectively.  The CGF included an annual assessment of the Council’s governance arrangements and an Annual Governance Statement which underlined any significant governance weaknesses.  It also highlighted further areas that, while not having significant weaknesses, still required improvement.

The Governance Group managed the CGF process and development of the Annual Governance Statement on an on-going basis during the financial year.  The Group consisted of:-

·                       Chair of the Corporate Governance Committee

·                       Vice-Chair of the Corporate Governance Committee

·                       Head of Legal and Democratic Services

·                       Head of Business Planning and Performance

·                       Head of Finance and Assets

·                       Head of Internal Audit

The Governance Group had developed the Action Plan in Appendix 1, which had been updated since the previous report to indicate progress to date.

In response to disappointment expressed by Mr P. Whitham regarding the number of references to timescales in Appendix 1 having been identified as non-applicable, the AM highlighted the importance of focusing on the RAG status as in some instances further action may not be required.

Following a brief discussion on the report, it was:-

RESOLVED – that the Corporate Governance Committee receives and notes the draft Corporate Governance Framework Action Plan.

 (IB and BS to Action)

To consider a report by the Head of Internal Audit (copy enclosed) which provides an update on Internal Audit’s latest progress in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

A copy of a report by the Head of Internal Audit (HIA) had been circulated previously.

The AM introduced the report on the latest progress of the Internal Audit Service in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

The report provided an update in respect of:-

·                         delivery of the Assurance Plan for 2013/14

·                         recent Internal Audit reports issued

·                         management’s response to issues raised

·                         Internal Audit’s performance

The AM explained that Appendix 1 provided a breakdown of work undertaken by Internal Audit during 2013/14, compared to the Internal Audit Strategy.  It included assurance scores and number of issues raised for the completed reviews, definitions used to form our audit assurance and the ratings used to assess the risk-levels for issues raised.

The following reports issued since September, 2013 had been circulated:-

-               Settlement Agreements

-               Deputy for Finance (Court of Protection)

-               Ysgol Brynhyfryd, Ruthin

Executive Summary Reports and Action Plans had been appended to the report for further information.

Management’s response to issues raised by Internal Audit had been summarised and most Internal Audit reports identified risks and control weaknesses.  These had been rated as critical, major or moderate risk and management agreed actions to address the risks, including responsibilities and timescales.  All instances were reported where management had failed to respond to follow up work, or where they exceed the agreed implementation date by more than three months.  The Committee would decide if further action was required.

Information pertaining to reports which had been followed up had been included in the report.  The AM confirmed that a further breakdown of all issues followed up had been detailed in the report, as requested at a previous meeting.  No responses had been received to three Action Plan follow ups requested on the 1^st October, 2013.  Reminders had been issued on the 23^rd October, but responses had not been received in time for the progress report.  However, the AM advised that confirmation of progress to date had been received in all cases following the report deadline.  Details pertaining to Internal Audit Performance had been included in the report with added detail provided in respect of the percentage of essential assurance work, as previously requested.

The AM provided a summary of each of the reports circulated:-

(i)            Settlement Agreement:- 

Members were informed that in undertaking an analysis of salary payments for 2012/13, as part of the financial assurance testing, six payments had been identified as settlement agreements.  Work undertaken had involved analysing case files and considering the overall process to ensure that:-

·                     the Council had a formal policy /code of practice and procedures for dealing with ‘settlement agreements’;

·                     such agreements were formally considered and approved, based on a robust business case;

·                     relevant advice was sought in all cases; and

·                     all settlements made during 2012/13 were reasonable and valid.

The Corporate Director: Economic and Community Ambition (CD:ECA) referred to the ACAS Code and emphasised that settlement agreements’ were a recognised method of dealing with employment issues, in both the private and public sectors, and were not perceived as a replacement for good management practice.  It was explained that the agreements had been utilised appropriately and generally applied as a last resort.  Members were informed that the Internal Audit Review had been very helpful and had identified a requirement to formalise the arrangements for initiating and approving settlement agreements.   Figures quoted in the press would have included contractual payments which employees would be entitled to regardless of a settlement agreement, and it was explained that it would be misleading to refer to a “settlement  ...  view the full minutes text for item 8.

To receive a verbal report on the Corporate Equality meeting.

The Committee received a verbal report from Councillor M.L. Holland in respect of the Corporate Equality meeting held on the 18^th October, 2013.

Councillor M.L. Holland highlighted the following salient points:-

-               Equality Impact Assessments had continued to improve.

-               Notices had been circulated to Directorates emphasising the importance of ensuring that the correct templates were utilised.

-               Legal and Democratic Services would ensure that Equality Impact Assessments were included for reports submitted to Cabinet and Council.

-               Equality Training would be a priority for all members of staff, and there would be a requirement that they read the “Respect” booklet.

-               Concern was expressed that only 15 Elected Members had attended the Equality training sessions.

-               Councillor Holland suggested that, in cases where reports were not accompanied by an Equality Impact Assessment, reasons for their absence should be provided.

The HLDS provided an outline of the Council’s legal obligations regarding the provision of Equality Impact Assessments.

RESOLVED – that the Committee receives and notes the report.

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 reports:-

18^th December, 2013:-

-               A report by the Head of Legal and Democratic Services on Indemnity for Elected Members.

29^th January, 2013:-

-               An update report by the Head of Finance and Assets on Settlement Agreement.

-               An update report by the Head of Legal and Democratic Services on Protocol for Member Representatives on Outside Bodies.

26^th March, 2014:-

-               An update report by the Head of Internal Audit on Procurement of Construction Services.

RESOLVED – that, subject to the above, the Committee approves the Forward Work Programme.

Meeting ended at 13.25 p.m.