Agenda, decisions and minutes

To receive apologies for absence.

Apologies were received from y Councillors Rob Triggs, Menna Baines and Arwyn Herald Roberts

To receive any declaration of personal interest.

None to note

To note any items which are urgent business in the opinion of the Chairman so they may be considered.

None to note

The Chairman shall propose that the minutes of the meeting of this committee, held on 23rd May 2024, be signed as a true record.

The Chair accepted the minutes of the previous meeting of this committee, held on 23 May, as a true record.

To consider the report and offer comments

DECISION:

To accept the contents of the report.

Note:

Add to the decision notice:

·         That an information session on the field of homelessness needs to be held for Committee members to better understand the field and to understand the reasons why costs in the field are so high.

·         The Committee's desire to receive Ffordd Gwynedd training.

DECISION: A report was submitted providing an outline of how the Council's departments had responded to the decisions of the Governance and Audit Committee so that Members could be assured that their decisions were being addressed. It was noted that the report gave Members an opportunity to consider the decisions made with the intention of removing the item / decision when the action had been completed.

Attention was drawn to a request made at the last meeting to hold an information session on homelessness. The member needed assurance that the matter would not go amiss and suggested including the matter in the agenda if not in the record of resolutions.

It was highlighted that a request had been made for Committee Members to receive a training session on Ffordd Gwynedd principles

RESOLVED

To accept the contents of the report.

Note:

·       That an information session on the field of homelessness needs to be held for Committee members to better understand the field and to understand the reasons why costs in the field are so high.

·       The Committee's desire to receive Ffordd Gwynedd training.

To accept the contents of the report.

Note:

Add to the decision notice:

·       That an information session on the field of homelessness needs to be held for Committee members to better understand the field and to understand the reasons why costs in the field are so high.

·       The Committee's desire to receive Ffordd Gwynedd training.

To consider the the Statutory Statement of Accounts (subject to audit draft) for information

DECISION:

To accept the report

To approve:

·         Revenue Income and Expenditure Account 2023/24.

·         Annual Return for the Year ending 31 March 2024, subject to audit by Audit Wales.

Staff were thanked for completing the accounts accurately and in a timely manner.

DECISION: The Assistant Head of Finance Department - Accountancy and Pensions explained that the accounts had been completed and released for audit by Wales Audit, our external auditors, since mid-June. It was added that there had been an extension again this year to the statutory timetable to audit accounts, with the intention of completing the audit and this Committee approving the accounts on 28 November 2024. ⁠

Members were reminded that the end of year financial position for 2023/24 had been submitted to the Committee o 23 May in the form of a simple out-turn report, but the Statement of Accounts, for external and governance purposes, had to be completed in CIPFA standard form. It now appeared as a lengthy and technically complex document.

The content of the report was reported upon explaining that six sets of accounts for 2023/24 were being completed:

1.      Gwynedd Council

2.      Gwynedd Pension Fund

3.      GwE (substantially-sized joint committee and therefore Full Statements had been prepared)

4.      North Wales Ambition Board (substantially-sized joint committee and therefore Full Statements had been prepared)

5.      Gwynedd Harbours and

6.      North Wales Corporate Joint Committee

Reference was made to the Narrative Report that provided information about the Accounts and on the vision and priorities of Gwynedd, the Financial Strategy and the financial performance measures. Members were guided through the report and details were provided on some elements:

·       Summary of capital expenditure. Expenditure amounted to £57 million during the year compared to £37 million in the previous year.

·       The main financial statements included Income and Expenditure Statement, Balance Sheet, Cash-flow etc.

·       Movement in Reserves Statement which was an important statement and summarised the Council's financial position. It was highlighted that the Council's general balances were £7.9 million at the end of March 2024, namely the same level as March 2023 and March 2022. That Reserves highlighted a reduction in the £104 million funds at the end of March 2023 to £102 million by the end of March 2024.

·       School balances where a reduction was seen in school balances - £17 million at the end of March 2024 compared to £12 million by the end of March 2023 and £9 million by the end of 2024 which highlighted a picture that was nearer to pre-Covid balance levels. It was explained that this was the general picture in Wales as school balances had been high due to a number of grants provided in light of Covid.

·       In relation to the balance sheet and the change in pension figures, it was noted that 2022 / 23 was a year where a situation of pension asset rather than commitment was seen, an unprecedented situation, due to market conditions and high inflation. It was explained that the actuary's valuation used corporate bonds, and because these had yielded high, it had led to high accounting discount rates, which made the pension liability values substantially less. It was reiterated that the situation was not unique to Gwynedd but meant there had been considerable discussions on its treatment  ...  view the full minutes text for item 6.

To consider and approve the Statement so that it can be signed by the Council Leader and the Chief Executive

DECISION:

To accept the report

To approve the Annual Governance Statement and recommend that it is signed by the Council Leader and Chief Executive.

Note:

Need to re-consider the Lawfulness likelihood score.

Need to consider reviewing the questions and adapting the document to be clear to Gwynedd residents - although compliant with CIPFA guidelines, a suggestion to consider combining with the assessment of governance arrangements which is included in Gwynedd Council's Self-Assessment to avoid duplication of work

The Statement was presented by the Head of the Finance Department. He explained that the statement, although not part of the accounts, was a statutory document which needed to be published with the accounts.  In accordance with the Accounts and Audit (Wales) Regulations and the CIPFA Code of Practice, all Local Authorities must ensure that a statement of internal management is in place. ⁠It was reported that the Chief Executive and the Council Leader were required to sign the statement, although the Governance and Audit Committee's approval was needed.

Some of the background to the statement was given. The statement which was based on the CIPFA/SOLACE Framework identified seven core principles for good governance and these had been divided further into sub-principles. It was highlighted that the Governance Arrangement Assessment Group had considered these principles and sub-principles and had created a Governance Risk Register, which was part of the Council's Corporate Risk Register.     Risks had been identified in 24 different areas of governance, identifying the controls that the Council had in place to mitigate these risks.

It was reported that risk management arrangements had given consideration to two factors when scoring the extent of the risk, namely the impact of the event should the risk be realised and the likelihood of the risk being realised.  Attention was drawn to the changes since the 2022/23 statement highlighting risk score adjustments in Finance and in Health, Safety and Well-being and it was reported that the Assessment Group had concluded there was one field with very high risks, 4 high risk fields, 10 medium risk fields and 9 low risk fields.

The members expressed their thanks for the report. Reference was made to each risk in turn giving Members an opportunity to enquire about that area.

During the ensuing discussion, the following observations were made by members:

Finance - that the 2022/23 risk score had been too low. Welcomed the adjustment and was satisfied with the assessment - it would be fair to retain the risk score at 20.

Finance - there was a need to amend the English report to reflect the 'very high risk' rather than 'medium risk'

Lawfulness - the likelihood of 1 was misleading

Health - suggested that the risk should be greater than 15? Had staff been fully trained?

General - that the headings were 'scholastic' suggesting that some were more important than others. Should the focus be on the matters that are of central importance rather than on the 'soft industrial'?

General - there was a need to use headings that referred to the conclusion. E.g. Finance matters clear and explanatory but with elements such as Housing and / or Growing Older, more background or a summary of areas within the field was needed. Need to consider reviewing questions and amending the document to be clear to Gwynedd residents. 

In response to a comment on the risks in Health, the Head of Finance noted that the score was a general one and had been scored by Health  ...  view the full minutes text for item 7.

To consider the report for information

DECISION:

To accept the report for information

DECISION: The Investment Manager presented a report on the actual results of the Council's treasury management during 2023/24, against the strategy approved by the Full Council on 3 March 2024. It was reported that it had been a very busy and prosperous year for the Council's treasury management activity as the activity had remained within the constraints originally set. It was confirmed that there were no defaults by institutions in which the
Council had invested money with.

It was reported that £3.5m in interest had been received on investments, which was higher than the £3.2m included in the budget.  It was noted, at the start of the financial year the Bank Rate had been set at 4.25%, however the Bank of England's Monetary Policy Committee increased the Bang Rate to 5.25% in August 2023 and the Bank Rate was kept at 5.25% until March 2024.

On 31 March 2023, the Council was in a very strong position with net investments, which had resulted from a high level of investments and operational capital. This included £56 million of the Ambition Board's funding and £31 million of the Pension Fund. It was reiterated that the lending activity had been very quiet in the year with only loan repayments taking place.

⁠It was reported, in the context of investments, that the Council had continued to invest with Banks and Housing Associations, Financial Market Funds, Pooled Funds, Local Authorities and Debt Management Office which was consistent with the type of investments made for a number of years now. It was noted that the pooled funds were mid/long-term investments which brought in a very good income level, and with the Council's funding levels healthy, the Investment Unit was considering a further investment in these funds in the near future.

In the context of the compliance report and indicators, it was reported that all activities had complied in full with the CIPFA code of practice and the Council's treasury management strategy - this was good news and showed that there was robust management of the funding. Reference was made to the indicators where it was highlighted that every indicator complied with the expectation except for one (Interest Rates Disclosure). It was explained that this indicator had been set during low interest conditions in March 2023 and, therefore, it was reasonable that the amounts were slightly higher than expected.

The members thanked the officer for the report.

In response to a question regarding selling or disposing of investment before the maturity date (pooled investments) and although it seemed to highlight a loss of £70K on the face of things, it still paid a good interest rate of 5.8%, the Investment Manager noted that these investments were medium term / long-term investments with significant interest income and performed very positively at the end of their term. Although no profit had been received to date, the situation was being monitored continuously and regular advice provided by Arlingclose.

DECISION:

To accept the report for information

To accept the report for  ...  view the full minutes text for item 8.

To consider the report

DECISION:

To accept the report

Note:

Performance Audit Work of 'Local Project – Waste and Recycling' – need to press on confirming timetable.

Alan Hughes and Yvonne Thomas from Audit Wales Office were welcomed to the meeting to present the report.

Submitted - a quarterly update (up to 30 June 2024) on the work programme and timetable of Audit Wales. A discussion was held on the financial audit and local performance audit work, highlighting that the Annual Report would be published in November 2024.

Reference was made to the Thematic Review - Unscheduled Care and the Thematic Review - Financial Sustainability highlighting an intention to submit the conclusions to the Committee soon. Reference was made to planned local government national studies, along with national reports and other outputs that had been published by Audit Wales since June 2023.

The members thanked the officer for the report.

In response to a question about Audit Performance Work 2023/24 - Local Project - Waste and Recycling, it was confirmed that the timetable continued to be in a 'to be confirmed' status but that discussions were being held to find a way forward. It was reiterated that this was a project that was local to the Council and that Audit Wales would review the Council's arrangements to improve its waste management service and meet statutory recycling targets.  In response to the Officer's comments, the Member noted that the field had received a lot of attention by the Committee and there was a need to press on completing the review.

DECISION:

To accept the report and it was noted that the content of the work programme was interesting

Note:

Performance Audit Work of 'Local Project – Waste and Recycling' – pressure needed to confirm timetable.

To consider the report

DECISION:

To accept the 2023 Summary

To accept the Detailed Plan

Cyngor Gwynedd - Annual Audit Summary 2023

A report was submitted by the Wales Audit Officers summarising the findings and conclusions for the work completed since April 2023 in Cyngor Gwynedd.  It was reiterated that the summary was part of the duties of the Auditor General for Wales.

Reference was made to the Auditors' work of auditing the Council's financial statements annually and it was reported, again this year, that the Auditor-General had given an unqualified accurate and fair opinion on the Council's financial statements, on 22 January 2024. ⁠It was noted that the accounts complied with appropriate practices and that Audit Wales worked to a level of 'relevance'.

The members thanked the officer for the report.

Cyngor Gwynedd's Detailed Audit Plan 2024

A report was submitted by the Audit Wales officers detailing the work Audit Wales intended to do to address the audit risks for Cyngor Gwynedd 2024/25. It was stated that an audit of the financial statements would be completed along with performance audit work to assess assurance and risk.

In the context of the relevance of financial statements it was noted that relevance was calculated using gross 2023-24 of £570.3 million and reference was made to the significant risk and audit risks. It was reiterated that the significant risk of override controls by management was one that was included in each Authority's detailed plan. It was also stated that the audit risk of the pension fund net liability and valuation of land and buildings were also generic risks.

It was highlighted that certification work on Cyngor Gwynedd's grant claims, which would include Housing Benefits, Teachers' Pensions and Non-Domestic Rates would also be carried out.

Attention was drawn to the fees, stating that Internal Audit would make no profit from the work and referred to the names and contact details of members of the team who would audit Gwynedd.

The members thanked the officer for the report

In response to a question regarding a reference to 'several legal LGPS cases that can affect the valuation of the Pension Fund' and whether a new case other than the Mc Cloud Case had come to light, the Head of Finance Department confirmed that the Mc Cloud Case was the historical case and that no other case existed at the moment. He reiterated that Cyngor Gwynedd's Pensions Department had been doing a lot of work with the recommendations of the McCloud Case.

In response to a question regarding why the fees did not include VAT given that all businesses were required to pay VAT, the Head of Finance Department noted that although the Council paid the VAT it had the legal right to reclaim the tax and therefore as it was the fee before VAT that hit the revenue expenditure it was more meaningful to show that in the document.

          RESOLVED:

·       To accept the 2023 Summary

·       To accept the Detailed Plan

To consider  the report in relation to the conclusions and recommendations from the Youth Justice Service’s inspection.

DECISION:

·         To accept the report on the outcome and recommendations of the inspection.

·         Congratulate the Service on the results of the inspection.

A report was submitted by the Head of Children and Supporting Families Department and the Manager of Gwynedd and Anglesey Youth Justice Service updating the Committee on the findings and recommendations of the Inspection of the Service carried out in November 2023.

It was reported that The Gwynedd and Anglesey Youth Justice Service (YJS) Management Board was extremely pleased with the overall 'Good' rating issued following the Inspection and thanked partners of both Local Authorities, the Local Criminal Justice network, and the Voluntary Sector for their support during the preparation work and during the Inspection week. It was noted that the inspectorate identified many areas of good practice including strong partnership arrangements that inform and provide resources for working effectively with children and families; a group of staff who are well supported and supervised, and evidence that children and parents are actively involved in planning and delivering support. 

Reference was made to the areas for improvement, the improvement plan drawn up in response to the seven inspection recommendations along with the next steps. It was noted that the Improvement Plan in collaboration with members of the Management Board, Executive Management Group and Service staff following a meeting at the end of January to review the draft report and initiate the process of formulating a response so that the ownership to implement the Improvement Plan is accepted throughout the Service and partners.

Officers were thanked for the report and staff were congratulated on the encouraging and positive results of the inspection – it was a pleasure to read the report. The inspection highlighted a good, caring outcome with dedicated staff.

In response to a comment regarding who would monitor the progress of the Improvement Plan, it was noted that the Improvement Plan had been approved by the Management Board in April 2024 and would be reviewed regularly at meetings of the Management Board.

Although praising that the score for the planning (domain 3: Out-of-Court disposals) on the element that the 'planning focused on supporting the child's desistance' was 100%, concern was highlighted that 'planning is focused sufficiently on keeping the child safe' received a score of 58%. In response to a question of whether the 58% reflected a percentage that the processes did not pose a risk and whether it was a risk of administrative work or a risk of care work, it was noted that the element expressed that sufficient work was being done to keep the child safe but that staff needed to improve the safeguarding plan records attached to the child's case. It was reiterated that the matter had been addressed in the implementation plan.

It was suggested that in the Information and Facilities - Staff Diversity and Children domain, it was necessary to include details of the percentage of staff who spoke Welsh and the percentage of children who requested a service in Welsh. In response, it was noted that around 95% of service staff spoke Welsh and 60% of children received a service in Welsh. It  ...  view the full minutes text for item 11.

To consider the contents of the draft document for 2023/24 and propose any comments and recommendations.

DECISION

To accept the Annual Performance Report and Self-assessment (draft) 2023/24.

Note:

Need to consider appropriate consultation arrangements for the future to ensure Gwynedd residents' input in the process.

Need to involve the Committee earlier in the process – a suggestion to hold a workshop with Members so that the Committee has input and a better opportunity to offer recommendations.

When presenting data – need to ensure a full explanation e.g., avoiding linguistic categories in secondary schools.

Increasing Housing Supply for Local People - need to highlight the impact and not numbers only.

Gwynedd Yfory Projects

·         Modernisation of Buildings and Learning Environment – to add that a RAC inspection had been undertaken.

·         Promoting the Well-being of Children and Young People – to add that schemes / campaigns are in place by the Education Department to improve pupil attendance.

·         Extending Opportunities for Play and Socialising – to add that additional financial support has been provided by the Council to Byw'n Iach Centres – this has been a positive decision.

Cllr Dyfrig Siencyn (Leader of the Council), Cllr Nia Jeffreys (Deputy Leader of the Council) and Dewi Jones (Council Business Support Service Manager) were welcomed to the meeting.

A draft of Cyngor Gwynedd's Annual Performance Report and Self-Assessment 2023/24 was submitted for the Committee's consideration asking them to provide comments and recommendations on the content of the report. It was reported that the Self-Assessment was a statutory requirement under the Local Government and Elections (Wales) Act 2021 which also states that the Committee needs to be involved in the self-assessment process.

Attention was drawn to the fact that the Council was already collecting a lot of evidence and published documents containing the type of information expected to be included within the self-assessment – documents such as (but not limited to) the annual reports on Performance, Equality, Director of Social Services and Annual Statement of Accounts. It was also noted that this document was closely related to the Annual Governance Statement (see item 7) and as a result, an effort had been made to keep the self-assessment document relatively concise with reference to a number of the documents where further information could be obtained to try to avoid duplication.

The members gave thanks for the report.

During the ensuing discussion, the following observations were noted:

·       That the Committee needed to be involved earlier in the process - the suggestion of holding a workshop in the future so that Members had the opportunity and time to discuss the report and offer input and recommendations was made

·       That the format of the report was clear and easy to understand – orderly and neat

·       That the report gave an honest picture of the situation

·       That the assessment was very detailed, difficult to review without a full understanding of areas

·       That it needed to be ensured that residents received information about the services - needed to ensure good communication

·       Words such as 'strategy has been formulated' – needed to see more action

·       Active travel - clearly more resources for urban / highly populated areas, but needed to see more effort on rural active travel issues across the County

·       When presenting data - needed to ensure that a full explanation was given e.g., avoid linguistic categories in secondary schools

·       Increasing Housing Supply for Local People - needed to highlight the impact and not numbers only.

·       Gwynedd Yfory Projects

-        Modernisation of Buildings and Learning Environment - add that a RAC inspection had been undertaken.

-        Promoting the Well-being of Children and Young People - add that schemes / campaigns are in place by the Education Department to improve pupil attendance.

-        Extending Opportunities for Play and Socialising – add that additional financial support has been provided by the Council to Byw'n Iach Centres – this has been a positive decision.

In response to a question if consultation had been undertaken with local people, local businesses, staff and trade unions, it was noted that a specific consultation on performance had not been undertaken but feedback and information  ...  view the full minutes text for item 12.

To consider the work programme

To accept the Work Programme for September 2024 - September 2025

Note:

To consider when it would be suitable to review the Committee's Self-Assessment Work Programme

A forward work programme of items were submitted for the Committee meetings up to February 2025.

DECISION:                                                                                 

To accept the Work Programme for September 2024 - September 2025

Note:

Consider when it would be suitable to review the Committee's Self-Assessment Work Programme