Agenda and minutes

10. Draft Treasury Management Strategy 2016/17.

Sue Smith, Declaration, as a Director of Graven Hill Village Holdings Limited and Graven Hill Village Development Company Limited.

The Chairman advised the Committee that the Council’s Monitoring Officer, Kevin Lane, had requested to address the Committee on agenda item 13, Review by KPMG of NNDR Overpayment.

There were no items of urgent business.

To confirm as a correct record the Minutes of the meeting of the Committee held on 2 December 2015 and the special meeting of the Committee held on 15 December 2015.

The minutes of the meeting of the Committee held on 2 December 2015 were agreed as a correct record, subject to the following amendment:

Officers in attendance: Delete Chris Dickens and replace with Ed Cooke

The minutes of the Special Meeting held on 15 December 2015 were agreed as a correct record and signed by the Chairman.

To receive communications from the Chairman.

The Chairman made the following announcements

1. The filming and broadcasting of the meeting was permitted, subject to the efficient running of the meeting not being affected.

There is no report relating to external audit from Ernst Young.  Neil Harris, Executive Director, Government & Public Sector, UK&I Assurance, Ernst & Young, will give a verbal update at the meeting.

Neil Harris Executive Director, Government & Public Sector, UK&I Assurance, Ernst Young and Engagement Partner to Cherwell District Council, introduced himself to the Committee and advised that he was replacing Mick West, who had now retired.

The Committee was informed that the Head of Finance and Procurement and Ernst Young would be meeting to prepare the Annual Audit Plan for presentation to the Council at the next meeting date.

Resolved

(1)          That the verbal update be noted.

Report of the Head of Finance & Procurement

Purpose of report

To receive the PwC Internal Audit Annual Report.

Recommendations

The meeting is recommended:

1.1       To consider and note the contents of the Progress Report.

The Committee considered a report of the Head of Finance & Procurement which presented the PwC Internal Audit Progress Report which summarised their internal audit work to date.

Resolved

(1)          That the internal audit progress report be noted.

Report of Head of Finance and Procurement

Purpose of report

To provide members of Accounts, Audit and Risk Committee with an update on the joint Corporate Fraud team including progress made on the team’s business plan for 2015-2016.

Recommendations

The meeting is recommended:

1.         To note the contents of the report.

The Committee considered a report of the Head of Finance and Procurement which provided an update on the joint Corporate Fraud team including progress made on the team’s business plan for 2015-2016.

In introducing the report, the Welfare and Debt Advice Manager advised the Committee that an experienced temporary Senior Investigator had been recruited to provide maternity leave cover for the Senior Corporate Fraud Investigator and would attend the next meeting to meet Members.

The Welfare and Debt Advice Manager advised the Committee that a review of all the policies underpinning the work of the Corporate Fraud Team was underway. The Counter Fraud Policy, Anti-Fraud and Corruption Strategy, Prosecutions and Sanctions Policy and Whistleblowing Policy had been reviewed. The remainder of the policies would be reviewed in quarter four and submitted to the Committee’s March meeting. 

Resolved

(1)          That the corporate fraud quarterly update report be noted.

Report of the Head of Finance and Procurement

Purpose of report

To submit the draft Treasury Management Strategy Statement for 2016/17.

Recommendations

The meeting is recommended:

1.            To note and comment on the draft Treasury Management Strategy 2016/17.

The Head of Finance and Procurement submitted a report which sought consideration of the draft Treasury Management Strategy Statement for 2016/17. The Strategy would be submitted to Full Council on 22 February 2016 for consideration alongside the 2016/17 budget.

Resolved

(1)          That the draft Treasury Management Strategy 2016/17 be noted.

To note the work programme 2015-16.

The Committee considered its Work Programme 2015-16.

Resolved

(1)          That the work programme be noted.

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

1 - Information relating to any individual

2 - Information which is likely to reveal the identity of an individual

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 items have 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 paragraphs 1, 2 and 3 of 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 paragraphs 1, 2 and 3 of Schedule 12A of that Act.

(With the exception of the Chief Executive, the Head of Finance and Procurement, the Democratic and Elections Manager and the Democratic and Elections Team Leader, all officers and the Internal and External Auditors left the meeting)

** Please note that due to the confidential nature, this report will only be circulated to members of the Account, Audit and Risk Committee **

Exempt Report of Chief Executive

The Chief Executive submitted an exempt report to enable Members to consider the final proposed report from KPMG in light of the submissions received since the last meeting and to agree the management response to the report setting out a proposed course of action in light of the conclusions and recommendations.

The Chief Executive introduced John Cornett, Director, KPMG, who had led the independent review into the NNDR overpayment. 

The Head of Finance and Procurement gave an update on the current position with regards to the council’s discussions with the Department for Communities and Local Government (DCLG) regarding the claim.

The Deputy Monitoring Officer advised Members that a meeting of the Account, Audit and Risk Committee would be arranged when required to make any decision.

Members asked a number of questions regarding the claim, to which the Head of Finance and Procurement duly responded.

The Head of Finance and Procurement then left the meeting.

In presenting the final report of KPMG of the NNDR Overpayment, John Cornett (KPMG) advised Members that after the special meeting of the Committee on 15 December 2015, the report had been circulated to relevant officers and stakeholders. Relevant comments from officers had been included in the final report before the Committee. Additionally, a discussion had been held with External Audit and their comments would be added to the report. Mr Cornett confirmed that whilst changes had been made to the report, the comments had provided clarity and there had been no change to the conclusions of the report and only one minor change to one of the recommendations.

With regards to the management response, Mr Cornett advised the Committee that is was a strong and robust response which demonstrated that the matter was being taken very seriously by the council. There were clear actions with an effective means of monitoring.

The Monitoring Officer joined the meeting and addressed the Committee, after which he left the meeting.

The Chief Executive assured the Committee that all actions set out in the management response would be completed. The Chief Executive also provided the Committee with an update on meetings she had held with various parties regarding the matter.

In considering the report, it was expressed by some members that the incident had given them cause for concern and adversely affected their confidence. The Committee agreed that Chief Executive should be requested to reflect on the comments of the Accounts, Audit and Risk Committee and discuss any future action with the Leader.

Resolved

(1)          That the amended final proposed report from KPMG be noted.

(2)          That  the representations received from the Monitoring Officer, Section 151 Officer and those who were interviewed and the External Auditor (EY) as reported by the Chief Executive and KPMG be noted.

(3)          That the final report be adopted and authority for the final detailed wording of the report be delegated to the Chief Executive, in consultation with the Chairman of the Accounts, Audit & Rick Committee, Councillor Richards and Councillor Wood.

(4)          That the  ...  view the full minutes text for item 62.