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APOLOGIES To receive apologies for absence. Minutes: Apologies were
received from Councillors John Pughe Roberts, Aled Wyn Jones, Huw W Jones and
Sion W 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. Minutes: None to
note |
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The Chairman shall propose
that the minutes of the meeting of this committee, held on 14th
October 2021, be signed as a true record. Minutes: The Chair signed the minutes of the previous meeting of this committee held on 14 October
2021 as a true record |
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2022/23 BUDGET STRATEGY PDF 167 KB To consider the information, the risks arising from the
strategy, and scrutinise the Cabinet’s decisions Additional documents:
Decision: DECISION: ·
To accept the report ·
To note the timetable, the projections and
relevant risks in the context of the Council's budget ·
To accept the Cabinet's
decisions (28 September 2021) Minutes: A report was submitted at the request of the Cabinet Member for Finance,
noting the timetable, projections and relevant risks in relation to the
Council's budget strategy to the Committee. The context of the report was set
out, highlighting that the Cabinet should consider the report from 28 September
2021. The Cabinet decided to approve the procedure and timetable for producing
the Budget for 2022/23, noting that if there was a funding gap in balancing the
2022/23 budget, the Council would use contingency budgets and reserves to
mitigate resource losses in the short-term, and assess the situation before
identifying any additional savings required during the summer of 2022. Also, the
Cabinet decided to accept the contents of the report as the Council's Medium
Term Financial Plan, while noting that financial planning was extremely
challenging. It was noted that there were a number of bids for additional resources
this year as a result of additional pressures on the Council's services. It was
noted that the Council's main financial source was the Welsh Government Grant
and that the Government had noted its intention to publish a 2022/23 draft
settlement for local authorities on 21 December, and the final settlement on 2
March 2022. It was explained that the timetable was very challenging and that
there was financial uncertainty as a result of the pandemic. The Cabinet Member for Finance emphasised the importance of the virtual
seminars on the budget for members in January, and he encouraged everyone to
attend the sessions. The Head of the Finance Department noted that there was a request to
minimise any change between the draft settlement and the final grant
settlement, as it was difficult, under the current circumstances, to plan for
2022/23. He added that Covid figures remained high in Gwynedd and that there
was currently no clear indication when the country and the world would recover.
He referred to the support of the Hardship Fund that was currently funding
additional significant costs in the fields of homelessness, care and free
school meals, but stated his concern that arose from the Minister for Finance
and Local Government's statement that there would be no Hardship Fund from April
2022 onwards. Consequently, the Council's ability to continue to fund the above
services on a higher level was dependent on an additional funding allocation in
the settlement. Reference were
made to assumptions that set three scenarios - best, medium and worst, within
reason. Although they were broad assumptions, it was noted that the Council's
financial position was robust, and healthy reserves meant that these funds
could be used to mitigate the short term situation. Attention was drawn to the
challenges that would face the Council, which included Covid recovery, an
inflationary increase in salaries, national insurance, the cost of fuel etc. It was expressed that there was no reason to adapt the strategy, as
there was currently insufficient evidence to do so. Thanks were expressed for the report During the discussion, members raised the following matters:- · The recommendation to ... view the full minutes text for item 5. |
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TREASURY MANAGEMENT 2021 - 2022 MID YEAR REVIEW PDF 444 KB To consider
the report Decision: RESOLVED to accept the
report and note its contents. Minutes: Submitted, for information, a report highlighting the Council's actual
Treasury Management activity during the current financial year. It was
highlighted that during the six months between 1 April and 30 September 2021,
the Council’s borrowing activity had remained within the limits originally set.
There were no defaults by banks in which the Council had deposited money. It
was reiterated that it was estimated that the Council's investment income
exceeded the expected income in the 2021/22 budget. Reference was made to the external context that referred to the economic
background, the financial markets and credit review. In the context of
borrowing, it was noted that local authorities could borrow from the Public
Works Loan Board (PWLB) on condition that they were able to confirm that they
did not intend to buy 'investment assets primarily for yield' in the current or
next two financial years, with a confirmation of the purpose of capital
expenditure by the Section 151 Officer. The Authority did not intend to buy any
investment assets primarily for yield within the next three years, and
therefore could fully access the PWLB - borrowing from the PWLB was considered
the best option. It was explained that £10m of the Council's investments were held in
externally managed strategic pooled property and equity funds where short-term
security and liquidity were lesser considerations. Although the pooled capital value of £9.243m
was less than the initial investment of £10m, the investments were made in the
knowledge that the capital values were unstable at months, quarters and even
years; but with the confidence that the total returns over a three to five year
period would be higher than the interest rates on cash. Consequently, the
objectives would be realised through the stability of mid-term prices. Reference was made to the use of the Debt Management Office as an
investment vehicle that had modestly higher returns than others and that was
flexible, easy and secure to use. Although the rates were low and the outlook
was weak and unstable, it was reported that the Council was investing as much
as possible in a challenging period; It was confirmed that all the treasury management activities that were
held during the period fully complied with the CIPFA code of practice as well
as the Council's Treasury Management Strategy Statement, and in the context of
investment training, officers had attended investment training with Arlingclose
and CIPFA during the period that was relevant to their posts. Attention was drawn to amendments to the
CIPFA codes, which included ·
Incorporating ESG issues
as a consideration within TMP 1 Risk Management. ·
Additional focus on
the knowledge and skills of officers and elected members involved in decision
making. It was highlighted that Arlingclose expected the Bank Rate to increase in Q2 2022, due as much to the Bank of England's aspiration to move out of emergency levels as to the fear of inflationary pressures. Investors had factored in a number of increases in the Bank rate to 1% by 2024 in their valuations. Although ... view the full minutes text for item 6. |
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FINANCIAL SUSTAINABILITY ASSESSMENT PDF 135 KB To consider
the report, together with Gwynedd Council’s responses to the recommendations Additional documents: Decision: ·
To accept the report ·
To approve Gwynedd
Council's response to the recommendations of Audit Wales Minutes: The Head of Finance Department
submitted a report outlining the Gwynedd Council's responses from Audit Wales in relation to the Council's financial sustainability. Attention was drawn to four recommendations that were contained in the report. Alan Hughes , Lead Auditor from Wales Audit Office, was welcomed to present the findings. It was noted that
the Council had a good understanding of its financial position, although a number of financial challenges remained, including continuing to carry over savings that
were yet to be realised, that caused unresolved financial pressures on services, and
that identifying and delivering savings would be more challenging in future. The Head of Finance referred
to the responses, and asked the Committee to support the actions. Thanks were expressed for the report During the ensuing discussion, the following observations were made by members: ·
In recommendations 2
and 3 there was a need to consider the fact that these were not financial data
requirements ·
It was important for
the Council to use background information ·
All financial
decisions were based on data ·
Why was a 3 year forecast needed? The Government did not have a 3-year
plan, and therefore why was the Council required to have one in place? It was
accepted that forecasting was possible, but projections would not have a firm
foundation ·
Note regarding
'evidence to demonstrate the utilisation of reserves ·
Were these general
observations, or weaknesses within departments? There was agreement with the observation that data was used to make investment
decisions, but current data could also be used to divest where there
might be a reduced demand or a need to do things differently. It was considered that £71m in reserves was a substantial sum that could contribute
towards transformation programmes that would lead to sustainable
services. In response, the Head of Finance Department noted that the reserves contributed to new projects e.g. schools
information technology strategy, climate management project post, Galw Gwynedd improvements,
and departments were encouraged to submit plans and
bids for funding. In response to a question regarding departments submitting plans, and the need to ensure that the money went to the right places when
in considering those plans, it was noted that many
bids had been submitted and the Cabinet would discuss the bids in January. In response to an observation about the three-year projections, the Auditor noted that there was value in forecasting, despite no funding sources having been agreed. It was suggested that although financial data was part of the current conversation, background information such as an increase in demand, complex cases or market prices could be examples that would enrich the conversation. It was noted that the performance ... view the full minutes text for item 7. |
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AUDIT WALES PROGRAMME AND TIMETABLE PDF 214 KB To provide an update to the Committee on the Audit Wales
work programme for Quarter 2 Decision: To accept Audit Wales' Quarter 2
work programme Minutes: Submitted: Audit Wales quarterly update (up to 30 September 2021) on its work programme
and timetable. A discussion was held on the financial audit and local
performance audit work, noting that
the Review of Performance Management would be submitted in the new year. Reference was made to national reports and other
outputs that had been published by Audit Wales since April 2021. During the ensuing discussion, the following observations were made by a member: ·
The timetable for
the performance management was extremely tight if it was to be completed in
February ·
Despite the
significant increase in inward migration, there was no reference to this field
in the work programme. This matter had a huge impact on the Health Board and
Local Authorities - and especially in the poorest counties In response to an observation that Welsh Government were now planning three
years ahead, and the implications of this on the commitments
and funding of the Well-being of Future Generations Act that planned ahead for 50 years,
it was noted that the five sustainable principles that public bodies had to consider as part of their work
would assist them to collaborate better, to avoid repeating past mistakes and address some
of the long-term challenges. The Auditor
added that he also accepted
the observation about inward migration and that the matter
would receive attention when the risks were examined. DECISION: ·
To accept Audit Wales'
Quarter 2 work programme |
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LOCAL GOVERNMENT AND ELECTIONS (WALES) ACT 2021 PDF 489 KB To consider the report and agree
on a recommendation as to
the future size of the Committee. Additional documents: Decision: DECISION: ·
To approve the progress
in the Work Programme and seek an update for the February meeting ·
To recommend to the Full
Council a composite membership of 18 members for the Audit and Governance
Committee - 12 Co-opted Members and 6 Lay Members. To be operational from 5 May
2022 ·
To accept the proposed
changes to the Constitution - statutory changes to be made by the Monitoring
Officer in accordance with his rights under the Constitution. Minutes: Submitted – the report of the Monitoring Officer updating the Committee on progress
with the draft work programme in response to Legislation that introduced a number of changes and powers
in relation to the governance of Local Government in Wales. Members were reminded
that the Committee had adopted a work programme (May 2021) that responded to the provision and requirements of the Act, and addressed the steps in a timely
and appropriate manner. Attention was drawn to specific
statutory changes to the functions and constitution
of the Audit and Governance Committee within the Act, referring to the appendix that outlined
the main amendments to the Constitution. It was reported, as
one third of the membership were lay members, that
an advertisement for members had been published, and that arrangements
and an appointment
panel was in place to make a recommendation to the Full Council that
would approve the appointments in accordance with the arrangements established in May 2017. Thanks were expressed for the report. During the ensuing discussion, the following questions and responses
were received: ·
Would it
be possible for a retiring Councillor to submit their name as a Lay Member? There
would have to be a gap of 12 months between retirement and submitting
an application ·
Would
the Chair receive remuneration for the post of Chair? The
Chair would receive a co-opted member's allowance that has been set by the
Independent Remuneration Panel for Wales ·
Had
there been any response to the advertisement? The
closing date was 25 November - information had been shared with the Members in
order to encourage suitable applicants ·
Who
would appoint the Lay Members? In accordance
with the arrangements established in May 2017, the panel would include the
Chair of the Council, the Chair of the Audit and Governance Committee and the
Cabinet Member for Finance, advised by the Statutory Finance Officer and the
Monitoring Officer. Applications would be considered and a recommendation would
be submitted to the Full Council. ·
Would
neighbouring Councils also be seeking the same Members, and could one person
serve as a member on two committees? It would
be acceptable for Members to be Committee members in more than one County ·
If it is
not possible to make an appointment, will a 'vacant seat' be noted? Although
appointing may be challenging, if not all seats are filled, a vacant seat must
be noted ·
Do Lay
Members have to be Gwynedd residents? Members
do not have to be from Gwynedd, but they must have a link to the County ·
Who will
monitor quality? Will political balance be considered? Lay
members have an independent opinion - any interest would have to be recorded,
to include registration details with a political party. ·
Would it
be possible to consider holding an informal meeting for everybody to get to
know each other before commencing the new procedures? This had not been discussed officially. It was noted that in addition to lay members, there would potentially be new ... view the full minutes text for item 9. |