Venue: Siambr Hywel Dda - Council Offices, Caernarfon. View directions
Contact: Bethan Adams 01286 679020
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VICE-CHAIRMAN To elect a Vice-chairman for 2015/16. Minutes: RESOLVED to elect Councillor
Trevor Edwards as Vice-chairman of the committee for 2015/16. |
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APOLOGIES To receive apologies for absence. Minutes: Councillors
Aled Ll. Evans and Glyn Thomas. |
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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. |
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The Chairman shall propose that the minutes of the
meeting of this committee, held on 24 September 2015, be signed as a true
record. Minutes: The Chairman signed the
minutes of the meeting of this committee held on 24 September 2015, as a true
record. |
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EXTERNAL AUDIT REPORTS PDF 94 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 with the appendix listing audit reports that had
been received over the past three years noting their proposals for improvement,
the action plans and the progress thus far. Due to the volume of information, the Chairman noted
that consideration should be given to holding a special meeting of the
Committee to give the report due attention. RESOLVED to hold a special
meeting of the Committee to consider the report. |
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THE EFFECTIVENESS OF THE COUNCIL'S SCRUTINY ARRANGEMENTS PDF 233 KB To submit
the report of the Senior Manager, Democracy and Delivery. Additional documents: Minutes: Submitted – a report by the Senior Manager – Democracy and Delivery noting that the Wales Audit Office (WAO) had undertaken a review of the effectiveness of scrutiny in Gwynedd. It was reported that WAO had suggested three main areas that needed to be addressed in order to improve scrutiny in Gwynedd, namely:- • Dealing with the perceived disengagement between the work of the Cabinet and the scrutiny committees by looking, amongst other things, at more pre-decision scrutiny of Cabinet business. • Improving the clarity of scrutiny recommendations so that what happens as a result of scrutiny work can be more easily identified. • Improving the quality of questioning at scrutiny committees to provide greater focus and quality for the scrutiny. Since it was the Audit Committee that had the responsibility for the Council’s governance arrangements and, specifically, the Council’s Constitution, it was concluded that it would be appropriate for this Committee to discuss the matter. It was noted that the Committee was requested to examine the matter and come to conclusions on the way forward and ensure that a robust Action Plan was in place to address WAO recommendations. RESOLVED to discuss the matter at the special meeting of the Committee. |
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2014/15 FINAL ACCOUNTS PDF 196 KB To submit the report of the Head of Finance. Additional documents: Minutes: Submitted – the report of the
Head of Finance Department noting that the revised statutory financial
statements of the Council and the Pension Fund had been presented for approval
by the Committee at the meeting held on 24 September 2015. Members were reminded that it
had been noted at the meeting that there would be a delay before the accounts
would be certified, as a member of the public had expressed an objection to the
accounts relating to a peripheral issue, being expenditure on a Trunk Road
Agency scheme in the previous year. Attention was drawn to a
letter from the Wales Audit Office confirming that they had not
completed work on this matter and had responded to the elector stating that
they did not offer any further action. RESOLVED: (i) to accept the report; (ii) to authorise the Chairman to sign a ‘fresh’
set of the same accounts. |
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REVENUE BUDGET 2015/16 - SECOND QUARTER REVIEW (SEPTEMBER 2015) PDF 191 KB To
submit the report of the Head of Finance. Additional documents:
Minutes: The
report of the Head of Finance Department was submitted, noting that in
accordance with the requirements of the Local Government (Wales) Measure 2011,
that the Audit Committee was expected to scrutinise budget monitoring reports
when appropriate. The Senior Finance Manager set the context and
elaborated on the content of the report that had been submitted to the Cabinet
on 24 November 2015. He presented the following decisions for the attention of
the committee to scrutinise - “1. To accept
the report on the second quarter review of the Revenue Budget (position as at
30 September 2015) and consider the latest financial situation regarding the
budgets of each department/service, asking the Cabinet Members and relevant
heads of department to take appropriate steps regarding the matters under their
leadership/management. 2. To note the
various reviews noted in the report and the steps to be taken by departments to
manage their budgets. 3. To give
consideration to, and approve specifically, the amendments and transfers that were recommended in relation to the Education, Economy
and Community, and Regulatory Departments, and Corporate Budgets.” The
Cabinet Member for Resources noted that Cabinet Members had been reminded of
their responsibilities in terms of reviewing budgets. He referred to the
Adults, Health and Well-being Department’s financial position and the
likelihood that it would need bridging resources for this year due to the
unlikelihood of realising the full savings during the financial year. He noted
that clear steps would be taken to deal with the situation in order to keep it
under control and that the Cabinet’s decision to put resources to one side
enabled the Cabinet to respond to the financial position in terms of the
Department by the end of the financial year. During
the ensuing discussion, officers responded to members’ enquiries as follows: ·
In terms of
‘Redundancy and Early Retirement’ in the Education Department, that school
governing bodies permitted early retirement with costs falling on the Education
Department. It was noted that the situation would be reviewed in terms of
pension release by re-examining the individual’s right in terms of amount, the
school’s position to contribute towards the payment and the future method of
payment in order to respond to the overspend; ·
The Education
Department had anticipated the overspend situation and had earmarked underspend
in a reserve fund to finance the expenditure; ·
It was the
decision of the Governing Bodies to re-employ retired teachers as supply
teachers with the teacher’s experience being taken into consideration; ·
Redundancy was a
one-off cost and that annual revenue savings would be examined as part of the
schools organisation plan; ·
In terms of
Gwynedd Consultancy’s overspend, that action had been taken to modernise and
that the Department was attempting to attract work and maximise achievement
within current staffing resources. It was added that an annual review was
undertaken in terms of the Department’s income and their intention to use a
reserved resource to mitigate the situation should the picture continue until
the end of the financial year. A member noted ... view the full minutes text for item 9. |
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CAPITAL PROGRAMME 2015/16 - SECOND QUARTER REVIEW (SEPTEMBER 2015) PDF 190 KB To submit the report of the Head of Finance. Additional documents: Minutes: The
report of the Head of Finance Department was submitted, noting that in
accordance with the requirements of the Local Government (Wales) Measure 2011,
that the Audit Committee was expected to scrutinise budget monitoring reports
when appropriate. The Senior Finance Manager set the context and
elaborated on the content of the report that had been submitted to the Cabinet
on 24 November 2015. He presented the following decisions for the attention of
the committee to scrutinise - “To accept the report
on the second quarter review (30 September 2015 position) of the capital
programme, and approve the revised financing as shown in part 2.2 – 2.8 of the
report, namely: · an increase of £965,000 in the use of unsupported
borrowing, · an increase of £3,278,000 in the use of grants and
contributions, · an increase of £154,000 in the use of capital receipts, · an increase of £300,000 in the use of revenue
contributions, · a decrease of £17,000 in the use of the capital
reserve, · an increase of £847,000 in the use of other reserves, · a virement of £200,000 between the Bala
Library scheme and the Berwyn catchment area schools’ scheme.” During
the ensuing discussion, officers responded to members’ enquiries as follows: ·
In terms of the
Education Department, that the re-profiling in terms of annual expenditure
since the previous quarter was associated with the 21st Century
Schools programme; ·
The Cabinet had
approved a virement of £200,000 between the Bala Library scheme and the Berwyn catchment area schools’
scheme to fund the task of moving the library to the site of the new school; ·
In terms of the
financial forecasts of the 21st Century Schools programme, that
arrangements were in place for the current schemes and that the Council was
attempting to maximise grant returns for the next two years and considering
alternative funding sources for the future with grants reducing. RESOLVED to
note the situation and the relevant risks in the context of the Council’s
capital programme. |
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THE COUNCIL'S FINANCIAL STRATEGY 2016/17 - 2019/20 PDF 191 KB To submit the report of the Head of Finance. Additional documents: Minutes: Submitted
– a report by the Head of Finance Department detailing the Council’s Financial
Strategy for the next four years. It was reported that the Welsh Government
would publish its draft budget on 8 December and the provisional settlement to
fund local government on 9 December. Attention
was drawn to a table which detailed potential scenarios in terms of the
settlement the Council could receive from the Welsh Government which had been
created by the Finance Department in collaboration with the Research and
Analysis Unit. It was noted that grant cuts were expected and that the Council
had demonstrated a responsible approach when undertaking the Gwynedd Challenge
consultation on potential service cuts. It
was reported that the Cabinet had considered the report on 24 November 2015, the following decisions were submitted for the
attention of the committee to scrutinise - “To accept the update
and the summary of the 2016/17 – 2019/2020 Financial Strategy and continue with
the current response plan, ‘Gwynedd Challenge’, for 2016/17 – 2017/18, while
stating - a) That Gwynedd Council Cabinet opposes the cuts in its grant
allocation enforced on the Council by the Westminster and Welsh Governments. b) That Gwynedd Council Cabinet
will deliver on its statutory responsibility to agree on a balanced budget in
order that it does not, ultimately, run out of money and fail to pay its
employees and suppliers. The
Cabinet Member for Resources noted that approximately 75% of Council revenue
depended on grants. He highlighted that the Welsh Government intended to
provide a settlement per year, with no indicative figures in respect of
subsequent years, which would make it unpractical for the Council to implement
a financial strategy over 4 years. During
the ensuing discussion, officers responded to members’ enquiries as follows: ·
Should there be a
review of the Barnett formula, there would be uncertainty in terms of its
outcome; ·
Chancellor George
Osborne’s announcement on 25 November would set the bar for the Barnett
formula, and would mean that funding allocated for the Welsh Government would
be approximately the same as what had been currently allocated; ·
The Full Council
at its meeting on 3 March 2016 would set the Council Tax for 2016/17. It was
noted that a question had been included in the Gwynedd Challenge consultation
to gather the opinion of Gwynedd residents on increasing the Council Tax; ·
That closing date
of the Gwynedd Challenge consultation had been extended until 4 December 2015
and members were requested to encourage their electors to participate; ·
Over 2,000
responses to the consultation had been received thus far and that the response
was among the highest in terms of public consultations held by the Council; ·
Should the
Council not undertake cuts, an increase of approximately 12% would be required
in the 2016/17 Council Tax to address the financial position. This would not be
permitted; ·
Discussions would
be held with relevant Departments in terms of their income targets for 2016/17
and changes to fees would be a consideration when establishing budgets. The Chairman expressed ... view the full minutes text for item 11. |
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RISK MANAGEMENT ARRANGEMENTS PDF 395 KB To submit the report of the Senior Manager Revenues and Risk. Minutes: The
Senior Revenue and Risk Manager set out the background and context of the
report. Attention
was drawn to the groups of risks that had been identified by the Council and
the action in terms of dealing with the risks within the groups. It
was reported that a procedure would be established in June 2016 where a report
would be submitted to the Committee on the Risk Management field summarising
the work undertaken in these fields in the previous period. RESOLVED: (i) to accept
the report; (ii) to approve
reporting arrangements for the Committee in order to fulfil its statutory role
for reviewing and assessing the authority’s arrangements for risk management,
internal control and corporate governance. |
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REPORT OF THE CONTROLS IMPROVEMENT WORKING GROUP PDF 476 KB To submit the report of the Chair of the Audit Committee outlining the
feedback from the meeting of the Working Group on 12 November 2015. Minutes: Submitted
– the report of the Chairman of the Audit Committee regarding a meeting of the
above working group held on 12 November 2015 to consider two audits that had
received a category C opinion during the period from 1 July 2015 and 11
September 2015, namely - a) Removing Leavers from IT Systems b) Charges on Properties of
Home Residents Senior
Managers had been invited to attend the meeting, along with the Cabinet Member
for Resources, to discuss the matters arising from the audits and the work that
had been completed since the audit reports had been published to strengthen the
internal controls in question. It
was noted that assurance had been received from the Working Group that the
issues highlighted by the Internal Audit Section were receiving due attention
and that steps were being taken. The
Chairman noted that a letter should be sent to the Corporate Support Department
and the Information Technology Service noting the need to deal with and confirm
arrangements in terms of removing leavers from the IT systems immediately. In
response to an observation from a member in relation to the substantial fines
that could be received in terms of data protection, the Head of Finance
Department noted that the MobileIron app could enable
the Council to delete information from mobile devices. RESOLVED: (i) to accept
the report; (ii) to send a letter to the Corporate Support Department and the Information
Technology Service noting the need to deal with and confirm arrangements in
terms of removing leavers from the IT systems immediately. |
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OUTPUT OF INTERNAL AUDIT PDF 538 KB To submit the report of the Audit Manager outlining the work of Internal
Audit for the period between 14 September and 31 October 2015. Minutes: The work of the Internal Audit Section
for the period up to 31 December 2015 Submitted
– the report of the Audit Manager outlining the work of the Internal Audit Section
for the period between 14 September 2015 and 31 October 2015. It was noted that
there had been six reports on audits from the operational plan with the
relevant opinion categories shown as completed during the period, one follow-up
audit and one responsive audit. Consideration
was given to each individual report and during the discussion reference was
made to the following matters – Public
Transport In response to a member’s enquiry, the Senior Revenue
and Risk Manager noted that the main stream of the work was the Council’s
internal arrangements and that it did not encompass matters that had led to
court cases and a police investigation into bus companies. Canolfan y Gwystl Responsive Audit A member noted that this audit should be considered at
the meeting of the Controls Improvement Working Group. RESOLVED: (a) to accept
the reports on the work of the Internal Audit Section for the period 14
September 2015 to 31 October 2015 and to support the recommendations that have
already been submitted to the managers of the relevant services for
implementation. (b) that the
Chairman and Vice-chairman of the committee, along with Councillors John B.
Hughes, Michael Sol Owen and Angela Russell serve on the Working Group to
consider the audits that have received a category ‘C’ opinion along with the Canolfan y Gwystl responsive
audit. (c)
that 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 360 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 up to 31 October 2015 had completed
32.31% of the plan where 21 of the 65 individual audits had been released in a
finalised version. RESOLVED to note the contents of the report as an update of
progress against the 2015/16 audit plan. |
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AUDIT COMMITTEE FORWARD PROGRAMME PDF 179 KB To submit the report of the Senior Manager Revenues and Risk. Additional documents: Minutes: Submitted
– the report of the Senior Revenue and Risk Manager outlining the Committee’s
work programme for the period up to September 2016. It was noted that the
forward programme would adapt during the period to respond to additional
requirements/matters. A
member noted the need to prioritise items in order to ensure that due
consideration was given to matters. RESOLVED to note the
information. |