Agenda, decisions and minutes

There were no Declarations of Interest.

There were no petitions or requests to address the meeting.

There was no urgent business.

To confirm as a correct record the Minutes of the meeting of the Committee held on 18 September 2013.

The Minutes of the meeting of the Committee held on 18 September 2013 were agreed as a correct record and signed by the Chairman.

To receive communications from the Chairman.

The Chairman announced that, in light of the training session held before the meeting, he had asked officers to amend the work programme and submit the Purchase Orders Update and IT Access reports to the January meeting of the Committee instead of this meeting.

Report of Interim Head of Finance and Procurement

Purpose of report

To receive information on treasury management performance and compliance with treasury management policy for 2013-14 for Quarter 2 including an update for position as at 31 October 2013 as required by the Treasury Management Code of Practice.

To provide a review of the draft Treasury Management Strategy 2014-15

Recommendations

The meeting is recommended:

1.1     To note the contents of the Quarter 2 (Q2) Treasury Report

1.2            To note the draft Treasury Management Strategy 2014/15

Resolved

(1)            That the contents of the Quarter 2 (Q2) Treasury Report be noted.

(2)            That the draft Treasury Management Strategy 2014/15 be noted.

(3)            That Officers be requested to submit an updated Treasury Management Strategy 2014/15 to the January meeting, addressing the issues raised by members.

The Committee considered a report of the Interim Head of Finance and Procurement on the Council’s treasury management performance and compliance with the treasury management policy for 2013/14, and the review of the draft of the Treasury Management Strategy for 2014/15.

In introducing the report, the Corporate Finance Manager advised the Committee that as at the end of September the Council had £11.8m invested with fund manager Investec and £57m managed in-house. At this point in the year, the council was projecting to be on target for its investment performance.

The Committee noted that the Investec rate of return was very low and interest received was minimal, In response to Members’ queries regarding the feasibility of moving all investment in-house, the Technical and Project Accountant explained that the Council would need to review its Investment Strategy to ensure that it was relevant for the additional amounts of money that would be available to invest. The Committee was advised that a number of the investments held by Investec had maturity dates and it was recommended the investments be retained until maturity to accrue the best interest possible

The Treasury advisor explained that in the current economic climate, whilst other fund managers may have better rates than Investec, none would match the current In-House rate. She suggested Members may wish to give consideration to bringing external investments in-house upon maturity and re-investigate fund managers when the market improved.

The Committee agreed it was important to review the Investment Strategy and requested officers to bring a report setting out options and recommendations to the Committee’s January meeting.

Resolved

(1)            That the contents of the Quarter 2 (Q2) Treasury Report be noted.

(2)            That the draft Treasury Management Strategy 2014/15 be noted.

(3)            That Officers be requested to submit an updated Treasury Management Strategy 2014/15 to the January meeting, addressing the issues raised by members.

The following item contains exempt information as defined in the following paragraphs of Part 1, Schedule 12A of the Local Government Act 1972.

3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Members are reminded that whilst the following item has been marked as exempt, it is for the meeting to decide whether or not to consider each of them in private or in public. In making the decision, members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers. Should Members decide not to make a decision in public, they are recommended to pass the following recommendation:

“That, in accordance with Section 100A(4) of Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that they could involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1, Schedule 12A of that Act.”

Resolved

That, in accordance with Section 100A(4) of Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that they could involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1, Schedule 12A of that Act.

Resolved

(1)      That the exempt appendices be noted.

The Committee considered the exempt annexes to the report of the Interim Head of Finance and Procurement on the Council’s Quarter 2 Treasury Management Report.

Resolved

(1)      That the exempt appendices be noted.

Resolved

That the public and press be readmitted.

Report of Head of Finance and Procurement

Purpose of report

To receive Ernst Young’s Annual Audit Letter summarising their external audit work for 2012-13.

Ernst Young will provide a verbal update on progress to date.

Recommendations

The meeting is recommended:

1.1       To note the contents of the Annual Audit Letter

1.2       To note the Ernst Young’s local government audit committee briefing.

Resolved

(1)      That the contents of the Annual Audit Letter be noted.

(2)      That the Ernst Young local government audit committee briefing be noted

The Committee considered a report of the Interim Head of Finance and Procurement which sought consideration of the Ernst and Young LLP Annual Audit Letter summarising their external audit work for 2012-13.

In introducing the report, the External Auditors reported that the issues raised were the same as those raised in the results phase.

The External Auditors reassured members of the adequate provisions in place to pick up any areas of concern, the Governance statement with individual officers responsible for different areas should provide warning of any potential issues.

The External Auditor reported that the Housing Benefit grant had received certification in November with minimal adjustments. A certification report would be submitted to the Committee’s January meeting together with the Audit Plan and fees which were currently being finalised.

The audit fees previously quoted in September meeting will be presented by letter at the January 2014 meeting.

Resolved

(1)      That the contents of the Annual Audit Letter be noted.

(2)      That the Ernst Young local government audit committee briefing be noted

Report of Interim Head of Finance and Procurement

Purpose of report

To receive PriceWaterhouseCooper’s progress report summarising their internal audit work to date.

Recommendations

The meeting is recommended:

1.1     To note the contents of the progress report.

Resolved

(1)      That the report be noted

The Committee considered a report of the Interim Head of Finance and Procurement which sought consideration of Internal Audit report which summarised their internal audit work to date.

In presenting the report the Internal Auditor reported the change in the number of planned contingency days available was due to movement of days to other areas the committee were assured that the remaining days were adequate.

Resolved

(1)      That the report be noted

Verbal Update from Interim Head of Finance and Procurement and Fraud Manager.

Resolved

(1)            That the verbal update be noted.

The Interim Head of Finance and Procurement provided a verbal update on anti-fraud and corruption plus whistle blowing. The Committee was advised that investigations into Fraud were on going and fines being recorded and that there had been no occurrence of Whistle Blowing within the authority since 1 October 2013.

Resolved

(1)      That the work programme 2013-14 be noted

The Committee considered its Work Programme 2013-14.

Resolved

(1)      That the work programme 2013-14 be noted