Agenda, decisions and minutes

To receive any apologies for absence.

Apologies were received from Councillor Dyfrig Siencyn and Councillor Hugh Evans (Denbighshire Council).

To receive any declarations of Personal Interest

No declarations of personal interest were received.

To note any items that are urgent business in the view of the Chair for consideration.

None to note.

The Chair shall propose that the minutes of the meeting held on 17^th September 2021 be signed as a true record.

The Chair signed the Minutes of the meeting held on 17 September 2021, as a true record.

Dafydd L Edwards, Host Authority Statutory Finance Officer and Sian Pugh, Host Authority Group Accountant to provide details of the actual revenue expenditure and income for the second quarter of the 2021/22 financial year as well as projected full year out-turn against its annual budget.

1. ⁠To receive and note the NWEAB Joint-Committee’s revenue and capital second quarter review for 2020/21.

2. To acknowledge the receipt and proposed use of the £500,000 for the Whole System Business Research Innovation for Decarbonisation (WBRID) grant, in line with the award of funding letter that was received by Welsh Government in June 2021.

3. To approve the use of a specific earmarked reserve to hold the partner interest contributions received, to set against the cost of borrowing required to fund the negative cash flow in future years.

The report was submitted by Sian Pugh (Group Accountant - Corporate and Projects).

RESOLVED

1.    To receive and note the NWEAB Joint-Committee’s revenue and capital second quarter review for 2020/21.

2.    To acknowledge the receipt and proposed use of the £500,000 for the Whole System Business Research Innovation for Decarbonisation (WBRID) grant, in line with the award of funding letter that was received by Welsh Government in June 2021. 

3.    To approve the use of a specific earmarked reserve to hold the partner interest contributions received, to set against the cost of borrowing required to fund the negative cash flow in future years.

REASONS FOR THE DECISION

To note a forecast underspend of £183,178 against the revenue budget in 2021/22. Any underspend at the end of the financial year may be transferred to the earmarked reserve.

To note a slippage on the capital programme which means that it will now be running for an extra three years to 2028/29 

DISCUSSION

The report was submitted noting that it was a financial review for the second quarter of the year. It was noted that the department estimated an underspend of £128k on the Portfolio Management Office heading. It was explained that this was as a result of delays in recruiting to jobs. It was noted that the Support Services heading showed an underspend of £7k as a result of underspend on the Insurance heading. This was because the NWEAB's Insurance had been incorporated within the Gwynedd Council Insurance policies.

It was explained that an underspend of £18k was estimated on the Joint-Committee heading, and that this was as a result of receiving a specific grant from Welsh Government to fund some aspects of the work undertaken by legal consultants.

In terms of projects, it was noted that the expenditure on this heading must be considered in the context of the decarbonisation grant of half a million. It was noted that the award of funding letter for this grant had not been received until June 2021, and therefore had not been included in the budget. Attention was drawn to an underspend of £40k on the external legal support and assurance headings and that this was as a result of slippage on the capital programme.

It was also noted that the partners' inflation contributions of £678k reflected the figures presented to the Board in October 2020 and March 2021, and the Board was asked to approve the use of the specific reserve fund to allocate this money to fund the average cost of borrowing over the lifetime of the growth deal. It was explained that once confirmation was received from Welsh Government, the inflation contributions will be recalculated to reflect the amended cost of borrowing.

It was noted that income sources for 2021/22 included partner contributions, ESF Grant, North Wales Growth Deal Grant, Decarbonisation Grant and the reserve fund. It was noted that this left an estimated position for 2021/22 of an underspend of £183k, and it was currently anticipated that there would be  ...  view the full minutes text for item 5.

Hedd Vaughan-Evans, Operations Manager to present the Quarter 2 (July - September) Growth Deal report and updated Portfolio Risk Register. 

To note the Quarter 2 Performance Report and updated Portfolio Risk Register.

To approve the submission of the Quarter 2 Performance Report to Welsh Government and UK

Government as well as the local authority scrutiny committees.

The report was submitted by Hedd Vaughan-Evans, Operations Manager.

DECISION

To note the Quarter 2 Performance Report and updated Portfolio Risk Register.

To approve the submission of the Quarter 2 Performance Report to Welsh Government and UK Government as well as the local authority scrutiny committees.

REASONS FOR THE DECISION

In December 2020, the NWEAB and the Welsh and UK Governments agreed the Final Deal Agreement for the North Wales Growth Deal. Regular reporting on progress against the North Wales Growth Deal is one of the requirements of the Final Deal Agreement.

DISCUSSION

The report was submitted noting that it provided an overview of the progress with the Growth Deal programmes and projects for the second quarter. It was noted that the Growth Deal's second annual assurance review had been completed and an 'Amber-Green' rating had been achieved. It was noted that this was the second highest delivery confidence rating available and an improvement on the Amber rating received in 2020.

It was explained that the first annual update of the Portfolio Business Case, a requirement of the Final Deal Agreement with Welsh and UK Governments, had been completed.

It was noted that eight projects were currently reporting as Red due to either risks to the project scope, or significant delays to project timescales. It was added that at this stage, no project Full Business Cases had been approved, therefore the only expenditure to date related to the drawdown against the 1.5% allocation for Portfolio Management Office costs.

Attention was drawn to three risks in the risk register had increased this quarter, which included partners' capacity to provide project board representatives and difficulty recruiting into PMO vacancies, public sector investment and spending objectives. It was explained that two of these had increased due to a number of project change requests being considered. It was highlighted that two new risks had been added following the portfolio assurance review.

Observations arising from the discussion

¾     It was noted that the increase in the price of materials was affecting project costs but that this had been highlighted in the risk register in the previous quarter.

¾     It was noted that the ESF funding would be ending and concern was raised in terms of funding staff and it was explained that there was a need to lobby about this matter regionally and separately and that we may need to be united as a Board.

¾     It was noted that the Election would be held next year and that staff needed to continue with the good work. It was explained that the deal needed to continue to be flexible and willing to adjust projects if risks were to arise.

¾     The need to amend the title of Hydrogen project was explained in order to be more specific and it was noted that the team was looking into this at present and a further report was requested at the next meeting.

Prior to excluding the press and public, members thanked the Chief Executive of Flintshire Council,  ...  view the full minutes text for item 6.

The Chairman shall propose that the press and public be excluded from the meeting during the discussion on the following items due to the likely disclosure of exempt information as defined in Paragraph 14 of Schedule 12A of the Local Government Act 1972 Information relating to the financial or business affairs of any particular person (including the authority holding that information).

There is an acknowledged public interest in openness in relation to the use of public resources and related financial issues. It is also acknowledged that there are occasions, in order to protect the financial and commercial interests that matters related to such information need to be discussed without being publicised. The report deals specifically with financial and business matter and related discussions. Publication of such commercially sensitive information could adversely affect the interests of the bodies and the Councils and undermine the confidence of other Growth Deal participants in sharing sensitive information for consideration. This would be contrary to the wider public interest of securing the best overall outcome.

RESOLVED to exclude the press and public from the meeting during the discussion on the following item due to the likely disclosure of exempt information as defined in paragraph 14, Schedule 12A of the Local Government Act 1972 - information about the financial or business transactions of any specific person (including the authority that retains that information).  There is an acknowledged public interest in openness in relation to the use of public resources and related financial issues. It is also acknowledged that there are occasions, in order to protect the financial and commercial interests that matters related to such information need to be discussed without being publicised. The report deals specifically with financial and business matter and related discussions. Publication of such commercially sensitive information could adversely affect the interests of the bodies and the Councils and undermine the confidence of other Growth Deal participants in sharing sensitive information for consideration. This would be contrary to the wider public interest of securing the best overall outcome.

Report by Hedd Vaughan-Evans, Operations Manager (report circulated to Board members only).

To approve the change request for Holyhead Gateway and inform Welsh and UK Governments regarding the change of scope to a Growth Deal Project.

The report was submitted by Hedd Vaughan-Evans (Operations Manager).

RESOLVED

To approve the change request for Holyhead Gateway and inform Welsh and UK Governments regarding the change of scope to a Growth Deal Project.

REASONS FOR THE DECISION

In December 2020, agreement was reached on the Final Deal Agreement for the North Wales Growth Deal. It was noted that the North Wales Growth Deal had a change management process in place to ensure potential changes to the scope of the Growth Deal and the projects were captured, assessed and where relevant considered by the Board.

It was noted that this change request related to the Holyhead Gateway project which was one of six projects within the Land and Property programme.

DISCUSSION

The report was discussed.