Venue: Siambr Hywel Dda - Council Offices
Contact: Bethan Adams 01286 679020
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APOLOGIES To receive apologies for absence. Minutes: Councillors Eddie Dogan, Michael Sol Owen and Glyn Thomas along with Mr John Pollard. |
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DECLARATION OF PERSONAL INTEREST To receive any declaration of personal interest. Minutes: No declarations of personal interest were received from any members present. |
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URGENT ITEMS To note any items which are urgent business in the opinion of the Chairman so they may be considered. Minutes: A
member drew attention to a matter that he had noted at the previous meeting of
the committee in terms of how consultants were appointed, along with their
relationship with officers and ensuring that the appointment procedure
conformed to OJEC standards. He noted that he had received further information
relating to one case of using a consultant in the Education Department to
examine the possibility of two secondary schools sharing a head teacher and
this caused the member concern. The Chairman suggested that the relevant officers from the Economy and Property services could be invited to the next meeting of the Controls Improvement Working Group to discuss the matter with the member present. |
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The Chairman shall propose that the minutes of the meeting of this committee, held on 30 June 2015, be signed as a true record. Minutes: The Chairman signed the minutes of the meeting of this committee held on 30 June 2015, as a true record. |
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STATEMENT OF ACCOUNTS 2014/15 PDF 73 KB To submit, for information, the statutory financial declarations (subject to audit) for 2014/15. Additional documents: Minutes: The Head of Finance
Department set out the background and context of the report. Attention was
drawn to the fact that unaudited draft accounts were being submitted here, with
the final version to be submitted for the Committee's approval at the meeting
on 24 September 2015. The
Senior Finance Manager guided members through the accounts and noted that the Annual
Governance Statement would also be included with the accounts to form one
composite document which would be brought before the next meeting of the
Committee. It was reported that last year’s accounts had received approximately
800 visits on the website and this was heartening. The
departments were congratulated on their work of managing budgets, as underspend
only represented 0.18% (point one eighth of one per cent) of the total
expenditure. The
Head of Finance Department drew attention to the figure associated with 'Remeasurements of the net defined benefit liability/assets'
of £70,697 million on page 9 of the accounts. He explained that the pension
liability situation had not changed significantly but the actuarial projection unit
method was used with today’s prices placed on some pension liabilities 60 years
in the future. He noted that accounting rules insisted on using the returns
rates on bonds as the discount rate, which meant that there was great movement
between the years in the perceived value of the pension liabilities but were
not a real change in terms of cash and this could give the wrong impression of
the situation. In
response to a question regarding the costs of retirements at a time of cuts,
the Head of Finance Department noted that the additional cost would be
identified when applications were made for retirement funded by a contribution
from the Department and/or the Corporate Redundancy Fund. Members were reminded
that they had considered the decision of the Cabinet of the Council on 23 June
2015 to transfer £2,986,685 to the Redundancy Fund at the last meeting of the
Committee. It was noted that the exact total cost could not be foreseen but the
Redundancy Fund provision was being reviewed continuously so that the costs
could be addressed. In
response to a further question, it was noted that the actuary had taken into
account the change of pensionable age from 65 to 67 years. A
member referred to school reserves under ‘Note 10 – Transfers to/from earmarked
reserves’ on page 26 and he noted that schools should still be encouraged to
reduce their balances. The Head of Finance Department confirmed that schools
were encouraged to use balances for the students’ education and that the
Education Department secured an explanation annually regarding the schools’
intention of dealing with the money. Regarding
school balances, a member suggested the need to re-examine the funding formula
for schools. In response to an observation by a member, the Head of Finance Department noted that the Full Council, at its meeting on 9 October 2014, had underlined a previous decision not to invest the Council’s own money in Israel. In terms ... view the full minutes text for item 5. |
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TREASURY MANAGEMENT 2014/15 PDF 363 KB To submit, for information, the report of the Investment Manager on the results of the Council’s actual borrowing and investment during the financial year that ended 31 March 2015. Minutes: The background and context of
the Investment Manager's report on the Council’s actual treasury management
activity during 2014/15, compared with the strategy that had been established
for that financial year in February 2014, was laid out. The report provided
details of the economic background, the borrowing requirement and debt
management, investment activity and compliance with prudential indicators. The Investment Manager
confirmed that the Council’s borrowing activities had been within the
restrictions established and there had been no failure to pay or lack of
liquidity by any of the counter parties used by the Council during 2014/15. RESOLVED to accept the report for information. |
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OUTPUT OF INTERNAL AUDIT PDF 152 KB To submit the report of the Audit Manager outlining the work of Internal Audit for the period between 1 April and 30 June 2015. Minutes: The work of the Internal Audit Section for
the period up to 30 June 2015 The
report of the Audit Manager was submitted, outlining the work of the Internal
Audit Section for the period between 1 April and 30 June 2015. It was noted
that there had been seven reports regarding audits from the operational plan
with the appropriate opinion categories shown completed during the period. Consideration
was given to all the reports individually.
A
member noted regarding ‘First Aid Payments’ that there was a need for Council
members to receive first aid training. RESOLVED: (a) to accept the reports on the work of the
Internal Audit Section for the period 1 April 2015 to 30 June 2015 and to
support the recommendations that have already been submitted to the managers of
the relevant services for implementation. (b) that the members appointed to serve on the
Controls Improvement Working Group at the meeting of the Committee on 30 June
consider the audits that have received a category ‘C’ opinion in this period
also. (c) it is the responsibility of any member who is unable to be present in the Working Group to arrange a substitute. |
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INTERNAL AUDIT PLAN 2015/16 PDF 84 KB To submit the report of the Audit Manager on the progress made on the 2015/16 Internal Audit Plan. Minutes: The report of the Senior
Audit and Risk Manager was submitted, providing an update on the current
situation in terms of completing the 2015/16 internal audit plan. It was reported that the
Internal Audit Unit had exceeded the target for quarter 1 with seven final
reports released, namely 11.1% audits of the plan compared with a target of 8%.
RESOLVED to note the
contents of the report as an update of progress against the 2015/16 audit plan. |
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EXTERNAL AUDIT REPORTS PDF 19 KB To submit the report of the Head of Corporate Support. Additional documents: Minutes: The report was submitted by
the Strategic Planning and Performance Manager. It was noted that the report
provided an update in terms of the external audit reports received with the appendix
detailing the reports, the actions and the scrutiny arrangements. A member noted that with
regard to assessing care investigations, there was a need for members to
receive training to equip them to deal with care matters. In response, the
Strategic Planning and Performance Manager noted that she would raise the
matter with the Democratic Services Manager.
RESOLVED: (i)
to accept the report
and to note that the Committee is satisfied that the recommendations of the
external auditors are receiving sufficient attention. (ii)
that the Strategic
Planning and Performance Manager raises the matter regarding training for
members to equip them to deal with care issues with the Democratic Services
Manager. |
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RESPONDING TO SIGNIFICANT FINANCIAL STRESS PDF 118 KB To submit the report of the Head of Finance. Additional documents: Minutes: It was reported that a
national report had been published in April 2015, by the Wales Audit Office
(WAO), stating that “Councils in Wales have responded well to significant
financial stress but they need to improve their financial management and
planning processes to meet the increasing financial challenges ahead." It was noted that some Welsh
Treasurers considered that the report was rather superficial with insufficient
evidence to support some conclusions and lacking reference to good practice in
Wales due to failure to effectively engage with local authority finance
departments on this work. The Head of Finance
Department guided the members through the report which detailed the WAO
recommendations and the Council's response/action. Members provided observations
regarding Recommendation 6 in terms of income generation, namely: ·
Care had to be taken not to tread on the toes of
the private sector; ·
The situation regarding Council staff car parks
should be considered; ·
Some type of payment from caravan parks should
be examined to generate income. A member noted that the
external audit reports, considering the current critical financial situation,
should assist Local Authorities in terms of providing opportunities to reduce
expenditure and generate income. In response to an observation
by a member regarding Recommendation 9 regarding equipping members with
training to deliver the best for Gwynedd residents, the Head of Finance
Department referred to the financial seminars that had been held during
February 2015, before noting that should members want to receive specific
training on anything else, then, they were requested to contact the Finance
Department. RESOLVED to accept the report. |