Venue: Siambr Hywel Dda, Council Offices, Caernarfon, Gwynedd, LL55 1SH
Contact: Bethan Adams 01286 679020
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CHAIR To elect a
Chair for 2019/20. Minutes: RESOLVED
to elect Councillor John Brynmor Hughes as Chair of the Committee for 2019/20. |
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VICE-CHAIR To elect a
Vice-chair for 2019/20. Minutes: RESOLVED
to elect Councillor John Brynmor Hughes as Chair of the Committee for 2019/20. |
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APOLOGIES To receive apologies for absence. Minutes: Councillors Aled Ll. Evans and Charles Wyn
Jones. |
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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 Chair shall propose
that the minutes of the meeting of this committee, held on 14 February 2019, be
signed as a true record. Minutes: The Chair signed
the minutes of the previous meeting of this committee, held on 14 February
2019, a true record. |
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2019 EXTERNAL AUDIT PLAN To submit the reports of the external auditor. |
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Minutes: The report was presented by the Performance
Audit Leader (Wales Audit Office). Members were guided through the report, which
detailed the Wales Audit Office (WAO) and Deloitte's audit arrangements for
2019. It was noted that Deloitte would carry out the financial audit on behalf
of the Auditor General for Wales. Attention was drawn to the main financial
audit risks and attention was drawn to the performance audits to be carried out
on a national level, and those that were specific to Gwynedd. It was noted that
the events of the Wales Audit Office's Good Practice Exchange was an
opportunity to share information and share good practice on a specific subject
and that the Council's members and officers were welcome to attend. It was noted that a Trainee Accountant
employed by the Wales Audit Office would be seconded to Gwynedd Council for the
period between January 2020 and May 2020, which would give the officer valuable
experience of accountancy work. In response, the Head of Finance Department
noted that he appreciated the collaboration and that discussions would be held
in terms of having a similar opportunity for the Council’s Finance Trainee to
be seconded to the Wales Audit Office for a period of time. Members were given an opportunity to ask
questions and make observations. A response was given to the questions and
observations as follows:- ·
That
the fee for the audit of GwE accounts covered the work in its entirety. Gwynedd
Council was the host authority, with a procedure in place to receive
contributions from the councils for all
the Joint Committee’s costs. ·
That
the timetable for the Leisure Services performance audit project, that was
included in the 2018 plan, had slipped. Interviews would be held and a report
would be given on the work to Byw'n Iach, the company now responsible for the
Council's leisure centres. ·
That
the wording of the paragraphs in relation to the UK's departure from the
European Union, on page 19 of the plan, would be looked at. |
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GWYNEDD PENSION FUND PDF 578 KB Minutes: The report was presented by the Performance
Audit Leader (Wales Audit Office). He provided details on the content of the
report which noted the external auditor's audit plan with regards to the
Gwynedd Pension Fund, and he highlighted the main financial audit risks. It was
noted that Deloitte would carry out the audit on behalf of the Auditor General
for Wales. He confirmed that the wording
of the paragraphs in relation to the UK's departure from the European Union
would be looked at. The Head of the Finance Department welcomed
the plan. Gratitude was expressed for the reports. RESOLVED to accept the reports. |
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INTERNAL AUDIT OUTPUT 2/2/2019 - 31/3/2019 PDF 308 KB To submit
the report of the Audit Manager. Minutes: Submitted - the report of the Audit Manager
outlining the Internal Audit section’s work for the period. It was noted that 19 reports on audits from the action plan had
been completed. Attention was drawn in terms of follow-on audits,
that acceptable action had been taken on 94.48% of the agreed steps,
namely 154 out of 163. It was highlighted that no
response had been received to requests to receive information and evidence from
the relevant Units/Services on the progress of actions for the following audits:
·
Small
holdings (3 actions) ·
Arrangements
for Children who are Leaving Care (1 action) ·
Recycling
Targets (5 actions)
It was
noted that after receiving information, the reports of the audits below
had been released in final form: ·
Care
and Support (Children) Plans under Part 4 SSA (Wales) 2014 (Children and
Families) ·
Flood
Management (Gwynedd Consultancy) A member referred to the
lack of response from Units/Services to requests for information and evidence.
The member noted that the attention of the relevant Cabinet Members should be drawn to this or that the relevant officers should
be summoned to the Committee. In
response, the Audit Manager stated that if the Committee wished, the relevant
officers could be summoned before the Controls
Improvement Working Group. It was proposed to call the relevant officers to the audits
before the Controls Improvement Working Group. A member noted that the relevant
Cabinet Members should be called before the Working
Group as well. The Audit Manager
confirmed that a date had been determined for a meeting of the Controls
Improvement Working Group where a discussion would be held
on audits referred to the Working Group at the Committee's previous meeting.
The proposal was seconded, a vote was taken on the
proposal and it was carried. Consideration was given to the reports individually and during the
discussion, reference was made to the following main matters - Whistleblowing Policy - Gwynedd Schools A number of members noted their
disappointment that 34% of the schools had not replied to confirm that the
schools had a current policy in place and that it had been
adopted formally by the Governing Body, and that every member of staff
had easy access to the policy, considering the importance of the policy. In response, the Audit Manager noted that the
percentage of the schools that had responded was quite good. She noted that the
fact that some schools had not replied did not mean that the policy had not been adopted. She explained that the Education
Department had committed to re-send the Whistleblowing Policy template to the
schools that did not use the current version and to those that had not
responded. She noted that since the audit had been completed,
that confirmation had been received from additional schools noting that the
Governing Body had adopted the policy. A member noted that the policy was very important in the context of schools and although schools had adopted the policy, staff's understanding of the policy was another ... view the full minutes text for item 8. |
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HEAD OF INTERNAL AUDIT ANNUAL REPORT 2018/19 PDF 182 KB To submit
the report of the Audit Manager. Minutes: Submitted - the report of the Audit Manager. On the basis of the work of Internal Audit that was
completed in 2018/19, the officer was satisfied that Gwynedd Council had a
sound framework of internal control. It was
reported that 60 pieces of work had been included in the final amended
audit plan for 2018/19. It was noted that 58 of the
assignments had been completed by 31 March 2019, which represented 96.67% of
the plan. It was noted that there was
an increase in the number of productive days available for Gwynedd Council
audits, from 707 days between 1 April 2017 and 31 March 2018, to 913 days for
the same period in 2018/19; an increase of 206 days. It was elaborated that
this was as a result of appointing an Audit Leader and
appointing temporary Auditors. Attention was drawn to a new performance measure for 2018/19, namely
'% of internal audits with an assurance level of “Satisfactory” or better
(corporate indicator)’. It was noted that the
performance for 2018/19 was 88.46%. Reference was made to a new measure for 2019/20, namely, 'Proportion
of agreed actions at high or very high level of risk that have been implemented
in accordance with the timetable (corporate indicator)’. It was
noted that the performance ambition was 100%, and should Units/Services
fail to respond in a timely manner to requests for information or evidence, the
matter would be brought before the Committee. A member referred to the
performance measure, '% of internal audits with an assurance level of
“Satisfactory” or better’, and asked whether the performance ambition of 65%
for 2019/20 was sufficient considering the performance of 88.46% in 2018/19. The member added that the performance was
dependent on the Council's Departments and that it did not measure the
performance of the Internal Audit Service. In response, the Audit Manager noted
that the measure was a corporate measure and that performance could vary year
on year; therefore, there was no reason to increase the performance ambition
considering that the level of audit assurance was generally high. The Head of
Finance Department elaborated that it was an attainment measure for the Council,
the wording of the measure could be considered;
however, the measure showed the impact of the Internal Audit Service on the
Council. In response to a question
by a member regarding the work of auditing Town and Community Councils, the
Audit Manager noted that the Service had carried out audit work for
approximately 75 Town and Community Councils in Gwynedd and Anglesey. She elaborated that substantial profits did
not derive from the work and that lessons had been learnt when establishing
arrangements in 2018/19 that would allow for the work
to be completed earlier in 2019/20. Appreciation of the Audit
Manager's work was expressed. RESOLVED to accept the report as the formal
annual report of the Head of Internal Audit in accordance with the requirements
of the Public Sector Internal Audit Standards for the 2018/19 financial year. |
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INTERNAL AUDIT CHARTER PDF 235 KB To submit
the report of the Audit Manager. Minutes: The Head of Internal Audit presented the
Internal Audit Charter to the Committee, noting that a few changes had been
made to the content of the Charter to coincide with the requirements of the
Local Government Application Note (2019) published by CIPFA. Members were guided
through the Charter, attention was drawn to the fact that changes had been made
to job titles and that the Charter reflected the Internal Audit Service's
operation method of providing an assurance level on audits. A member asked whether it
would be an idea to explain the role of the Internal Audit Service in terms of
completing audit work when the Council was a host authority for a Joint
Committee in partnership work. In
response, the Head of Finance Department noted that he was not of the opinion
that a reference to the role of the Service needed to be included as the role
was not different in this context. He
elaborated that the role of the Internal Audit Service was different in the
context of the Town and Community Council audit work. RESOLVED to approve
the Internal Audit Charter. |
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FINAL ACCOUNTS 2018/19 - REVENUE OUTTURN PDF 52 KB To submit
the report of the Senior Finance Manager. Additional documents:
Minutes: The Cabinet Member noted that the report had been submitted to the Cabinet on 21 May 2019. He thanked
Councillor Peredur Jenkins, the former Cabinet Member, for his work and
commitment to secure the Council's financial situation at a difficult
time. He emphasised that the Cabinet
Members were aware of their responsibilities to keep to the budget. He noted
that the overspending on Children's Services and in the school transport field
could not continue. The report was submitted by
the Senior Finance Manager, she set the context and elaborated on the
content of the report. She noted that there had been effective financial
control in general, in light of the requirements to realise savings. Attention was drawn to the Cabinet's decision: 1.1
To
note the final financial position of the Council’s departments for 2018/19. 1.2 To approve the amounts to be carried forward (the
“Revised Over/ (Under) Spend” column of the summary in Appendix 1), namely -
1.3
To
approve the following recommendations and financial transfers (as outlined in
Appendix 2) - ·
The Children
and Families Department to receive a one-off partial financial assistance of
£1,544k to restrict the level of overspend that will be carried over by the
department, to support them to move on to face the challenges of 2019/20. ·
The Education
Department to receive one-off partial financial assistance of £16k to limit the overspend that will be carried forward by the department
to £100k. ·
Compensate the Economy and Community Department £157k, the sum of the overspend due to the slippage of establishing ‘Cwmni Byw’n Iach’
to run the leisure centres, which limits the overspend that will be carried
forward by the department to £28k. ·
The Highways and Municipal Department to receive a one-off partial
financial assistance of £518k, which limits the overspend
that will be carried forward by the Department to £100k, to support them to
face the challenges of 2019/20. ·
In accordance
with the financial regulations it is recommended that the usual practice is
adhered to in order to allow the Environment Department to keep (£100k) of
their underspend, and to move (£392k) which is the sum above (£100k), to be
used to support the departments that have overspent in 2018/19. ·
On Corporate
budgets, transfer: - (£19k) related to the
Council Tax Premium to a specific reserve to be considered for the Housing
Strategy. - (£551k) relating to capital costs
to a capital programme fund. - (£738k) on maintenance to a
maintenance reserve. ·
Use (£1,843k) of the net
underspend on Corporate budgets to assist the
departments that have overspent in 2018/19. ·
The remainder
of the Corporate underspend (£173k) to the Council’s general balances. 1.4 To approve the virements from the specific reserves and provisions as outlined in Appendix 3 following a review of reserves and ... view the full minutes text for item 11. |
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CAPITAL PROGRAMME 2018/19 - END OF YEAR REVIEW (31 MARCH 2019 POSITION) PDF 44 KB To submit
the report of the Senior Finance Manager. Additional documents: Minutes: The report of the Senior Finance Manager was submitted, she set-out the context and elaborated on the
content of the report submitted to the Cabinet on 21 May 2019 which provided
details on the capital programme's end of year review. It was
noted that the Council had succeeded in spending over £22.8m in 2018/19
on capital programmes, with £12.5m of this, namely 55%, funded by attracting
specific grants. It was
confirmed that a total of £12.7m would slip from 2018/19, compared to a
slippage of £15.6m at the end of 2017/18.
No loss of grant funding was caused to the
Council where schemes had slipped. Attention was drawn
to the Cabinet's decision. The Cabinet Member for Finance noted that
attracting grants was an important element of funding and he expressed concern
that Departments were losing capacity in relation to preparing grant
applications within a small window of time, considering that grants had funded
55% of the capital programme for 2018/19. A member noted that preparing a grant
application was a skill and that it was important that staffing resources were
in place to prepare and submit grant applications. A member reiterated the
comment, noting that the Council was at risk of not attracting as many grants.
In response to the observations, the Head of Finance Department noted that
collaboration took place across departments to attract grants and despite the
reduction in staffing resources making it more difficult, the Council had not
reached the point where it missed out on attracting
grants. A member highlighted that the Council was
successful in attracting grants. The member added that Welsh Government offered
grants for specific headings but this was not an acceptable funding method and
consideration should be given to how Local Government
was funded. A member reiterated the comment, congratulating the officers who
had submitted successful applications. RESOLVED to accept the report and note the
situation and relevant risks in the context of the Council's capital programme. |
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SAVINGS OVERVIEW: PROGRESS REPORT ON REALISING SAVINGS SCHEMES PDF 44 KB To submit
the report of the Senior Finance Manager. Additional documents:
Minutes: The report of the Senior Finance Manager was submitted, she set-out the context and elaborated on the
content of the report submitted to the Cabinet on 21 May 2019 which reported on
the latest situation of realising savings schemes. She noted that over 96% of
the 2015/16 - 2017/18 savings had been realised by March 2019. Attention was drawn
to the fact that £2.5m of savings had been planned in the 2018/19 Financial
Strategy. She highlighted that 73% of the 30 schemes had been realised on time;
however, slippage had been seen in realising seven
schemes. She noted that in general, the progress made to realise the 2018/19
savings schemes was acceptable, but that there were signs that some delivery
difficulties were being highlighted. She noted that savings schemes to the value
of £6.4 million were in place for 2019/20 onwards. She elaborated that the
individual schemes would be monitored during the year,
but that it was premature to report. She drew attention to the Cabinet's
decision notice which noted encouraging praise towards
realising the savings schemes during the year. The Cabinet Member for Finance noted that
acceptable progress had been made to realise the
savings schemes but he noted his concern that unless all savings schemes were
realised, cuts would have to be made. A member referred to the lack of overview of
needs across public services with bodies operating in silos. RESOLVED to accept the report and note the
situation and relevant risks in the context of the savings overview. |
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GWYNEDD HARBOURS' FINAL ACCOUNTS 2018/19 PDF 64 KB To submit
the report of the Senior Finance Manager. Additional documents:
Minutes: The Senior Finance Manager submitted the
report in the context of the final accounts of Gwynedd Harbours for the year
2018/19 in line with the statutory requirements under the Harbours Act 1964. It
was noted that the accounts included Aberdyfi, Barmouth, Porthmadog and Pwllheli
harbours. It was noted that Gwynedd Harbours, due to
its turnover not exceeding £2.5m, was considered to be a
small local government body. It was explained that
completion of a statements of accounts form provided by the Wales Audit Office
satisfied the statutory requirements. Attention was drawn to the £2,875 underspend
at the end of the year, the income heading was £38k short, however, jobs had
been kept vacant in an attempt to close the income gap. It was elaborated that
substantial expenditure had been incurred on 'Signage and Notices' following a
fatal incident on Barmouth Beach. It was reported that
the accounts would be the subject of an audit by Deloitte, and should changes
be made post-audit, the amended version would be submitted to the Committee
meeting on 29 July 2019. In response to an observation by a member,
the Senior Finance Manager noted that the overspend
under the heading 'Safety Equipment' derived from essential expenditure
following the incident on Barmouth beach. The Head of
Finance Department added that the statement of accounts had
been submitted to the Committee, in its governance role, for approval. RESOLVED: (i) to accept and approve the information in the appendices, namely - ·
Income and Revenue
Expenditure Account 2018/19 - Appendix A; and ·
Statements of Accounts form
for 2018/19, for audit - Appendix B. (ii)
to authorise the Chair to sign the statements of accounts form 2018/19. |
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GWYNEDD COUNCIL ANNUAL GOVERNANCE STATEMENT 2018/19 PDF 92 KB To submit the report of the Assistant Head - Revenue & Risk. Additional documents: Minutes: The Assistant Head - Revenue and Risk set-out the background and context to the report. It was noted that
the Governance Arrangements Assessment Group had considered the Core Principles
and Sub-principles in the CIPFA / SOLACE Framework, Delivering Good Governance in Local Government 2016, and had
created a Governance Risk Register. Attention was drawn
to the fact that the Governance Risk Register identified risks in 22 different
governance fields, and noted the controls in place in order to mitigate the
risks. Attention was drawn to the fact that one
governance field had been designated as high risk, namely Culture. It was elaborated that an
improvement had been seen in this field, but that there was further work to do.
It was highlighted that the score of four of the risks
had changed during the 2018/19 year, with the risk scores reduced in all cases.
A member referred to the Leadership governance field, enquiring whether it was premature to
reduce the risk score considering that the managerial review had
been approved recently and that time was needed to see the impact of new
job descriptions for managers and heads. In response, the Assistant Head - Revenue and
Risk noted that the report submitted to the Cabinet on 7 May 2019 in terms of
the managerial review was the end product of much
work; for example, new job descriptions were provided, clarifying the role for
managers and heads. He also elaborated
that this was associated with the work of changing culture in accordance with Ffordd Gwynedd to be "leading" (rather than
"managing"), and ensuring that members and officers understood their
role. In response to an enquiry made by the Lay
Member, the Assistant Head - Revenue and Risk noted that he would send Ffordd Gwynedd training material to the member. RESOLVED: (i)
to approve the Annual Governance Statement for 2018/19; (ii)
to recommend that the Council Leader and the
Chief Executive sign the statement. |
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PERFORMANCE MONITORING To elect a
member to attend the Corporate Support Department’s Performance Monitoring
Meetings. Minutes: Members were invited
to express an interest in attending the Corporate Support Department's
performance monitoring meetings. RESOLVED to nominate
Councillor Dewi Wyn Roberts to attend the Corporate Support Department's
performance monitoring meetings. |
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AUDIT AND GOVERNANCE COMMITTEE FORWARD PLAN 2019-2020 PDF 34 KB To submit
the report of the Assistant Head - Revenue & Risk. Additional documents: Minutes: Submitted - the report of the Assistant Head
- Revenue and Risk, outlining the work programme for the Committee for the
period up to June 2020. RESOLVED to note the information. |