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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED- That the minutes of the Governance and Audit Committee held on 26 September, 2022 be approved and signed as a correct record.
RESOLVED: That the Governance and Audit Committee Forward Work Programme be approved.
RESOLVED: That the Internal Audit Performance report for 1 April 2022 to 30 September 2022 be noted.
RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
RESOLVED: a) That the current treasury position carried out in accordance with the Council’s Treasury Management Strategy and Investment Strategy be noted. b) That the revised prudential indicators be approved.
RESOLVED: That the contents of the letter from the Public Services Ombudsman foe Wales dated August 2022 be noted.
An apology for absence was received from Ian Whyte (Lay Member). Thanks and well wishes were extended to Mike Halstead, Head of Audit and Procurement Services who was retiring.
None.
None.
Decision as recorded
RESOLVED- That the minutes of the Governance and Audit Committee held on 26 September, 2022 be approved and signed as a correct record.
The minutes of the meeting of the Governance and Audit Committee held on 26 September, 2022 were submitted for approval. As per Minute (280) the Corporate Performance and Improvement Manager confirmed that in respect of the Governance and Audit Committee, Members would be referred to as Committee Members as responsibilities also applied to Lay Members. RESOLVED- That the minutes of the Governance and Audit Committee held on 26 September, 2022 be approved and signed as a correct record.
Decision as recorded
RESOLVED: That the Governance and Audit Committee Forward Work Programme be approved.
The Governance and Audit Committee Forward Work Programme was presented. The following was discussed: • The Head of Audit and Procurement Services confirmed that an update in respect of the procurement process of ultra-low emission waste and recycling vehicles would be provided at the next meeting of the Governance and Audit Committee. • The Strategic Director – Finance and Resources confirmed that the Statement of Accounts would be presented in February, 2023 as part of the annual Finance and Governance report. - Deadlines had been relaxed by the Welsh Government (WG). - Audit Wales currently had a high level of work. - A technical issue had arisen in respect of infrastructure assets accounting and a WG correction would be in place by December, 2022. - Gwilym Bury, Audit Wales advised that submission of the Statements of Accounts had been delayed within all 22 Welsh Local Authorities. • The Head of Regulatory and Housing Services confirmed that a report in respect of compliments and complaints would be presented at a later date as it had been requested that how the data was presented to Members be reviewed. RESOLVED: That the Governance and Audit Committee Forward Work Programme be approved.
Decision as recorded
RESOLVED: That the Internal Audit Performance report for 1 April 2022 to 30 September 2022 be noted.
The Audit Manager (Systems and Compliance) presented a report on the Internal Audit Performance 1 April, 2022 to 30 September, 2022. The Head of Audit and Procurement Services was required to present a report to the Committee on the Internal Audit Service’s progress and performance on a regular basis. Members of the Committee were requested to consider and provide comment on the assurance provided regarding the progress and performance of the Service. The following points were highlighted: • A schedule of performance against targets (included within Appendix A of the report) showed that, including audits that were at the draft report stage, 44% of the annual plan had been achieved in the period. • The Service completed 23 audits in the period, which included 2 audit reviews which were carried forward from 2021/2022. • A Senior Auditor had left the Service in August 2022, reducing the audit resource in the period to 6.2 officers. • A schedule showing the planned work performed in the first half of the year was included within Appendix B of the report. • Although significantly reduced, time continued to be spent on COVID-19 related issues, to ensure appropriate systems of internal control were in place and funding flows from the Welsh Government (WG) were well managed. This type of consultancy work had accounted for 102 days work in 2022. • A schedule of the 1 follow up audit conducted in the period was included within Appendix C of the report. The Schedule also identified the follow ups that were planned to be performed during 2022/2023. • The Service had undertaken work on two special investigations in the period. The types of investigation undertaken and their current status was included within Appendix D of the report. • The following audits included in the original Internal Audit Plan for 2022/2023 had been carried forward to 2023/2024 due to the introduction of new systems or capacity issues; - Creditors - Food Safety - Homelessness - Domiciliary Care • Assurance mapping had resulted in the following changes: - IT Security had replaced the Education IT review. - School Meal Arrears – a new audit would be carried out in light of decision to introduce free school meals. Members discussed the following: • It was queried as to whether Audit completion rates had improved as a result of staff returning to the office. - In response, the Audit Manager (Systems and Compliance) advised that the percentage of audits completed within budget had improved during the period. - Information gathering had been challenging during the pandemic. • It was queried as to when a follow up audit in respect of Direct Payments would be carried out. - In response, the Audit Manager (Systems and Compliance) advised that the follow up audit would be scheduled before the end of 2022. • An update in respect of Fleet Services – Plant was requested. - In response, the Audit Manager (Systems and Compliance) advised that an update would be provided at the next meeting of the Governance and Audit Committee. • It was queried as to whether the service had experienced any recruitment issues. - In response, the Head of Service – Audit and Procurement advised that two applications had been received for the role of Senior Auditor and that recruitment for an Auditor would commence in January, 2023. • In respect of the 100% satisfactory response rate to the client satisfaction questionnaire, it was queried as to when this was issued. - In response, the Head of Service – Audit and Procurement advised that the questionnaire was issued along with the draft audit report. • It was queried whether the Assurance Map training, scheduled for July, 2023 could be provided at an earlier date. - In response, the Head of Service – Audit and Procurement advised that she would look at bringing this forward and conducting the training before or after a meeting of the Governance and Audit Committee. • An update was requested in respect of the Children and Communities Grant 2021/2022 that had been referenced at a previous meeting. - In response, the Audit Manager (Systems and Compliance) advised that the report had not been completed in time for this meeting and an update would be provided at the February, 2023 meeting. • It was queried whether the whistleblowing complaint (referenced within Appendix D of the report) had been resolved. - In response, the Head of Service – Audit and Procurement advised that work had been carried out in order to establish whether the complaint was founded. - The investigation was not complete as the member of staff making the allegations was absent from work. • It was queried whether Audit and Procurement had been involved with the implementation of the new system utilised by creditors. - In response, the Head of Service – Audit and Procurement advised that she was part of the project board. RESOLVED: That the Internal Audit Performance report for 1 April 2022 to 30 September 2022 be noted.
Decision as recorded
RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
The Corporate Performance and Improvement Manager presented Members with the Corporate Risk Register and Corporate Issues Register. The registers provide a record of all corporate risks and issues that have been identified throughout the Authority. The following points were highlighted: • The Corporate Risk Register and Corporate Issues Register had been presented to the Finance and Resources Overview and Scrutiny Committee and Cabinet in October, 2022. • The following new issues had been identified: - Lack of suitable affordable housing provision. - Homelessness levels had increased. • The following issues would be removed from the Corporate Issues Register: - Ash Dieback disease - Welsh Government (WG) proposals to remove priority need and intentionality for homelessness. • New risks identified were as follows: - The risk that WG may implement a new Housing Support Grant redistribution formula. - The risk that vital corporate digital born documents/information are lost. - The risk of organisational disruption as a result of changes to senior management. • The following risk would be removed from the Corporate Risk Register: - The risk that the level of homelessness could increase. • Key changes to the Corporate Risk Register were highlighted. These included changes to the following risks: - The risk that hybrid working could have unknown long term adverse effects on our culture, workforce and service delivery. - The risk that we do not have a strategic vision for our assets. - The risk that we are not sufficiently prepared for a future pandemic. Members discussed the following: • It was queried as to whether the decision not to proceed with sea defence upgrade works for Pensarn should be included within the risk register. - In response, the Corporate Performance and Improvement Manager advised that discussions would be held at the Environment, Roads and Facilities (ERF) Service Performance Review (SPR) in order to determine whether it was a service risk or a corporate risk. - Concern was raised that a business case had not been submitted. - In response, the Cabinet Member for Finance, Revenue and Benefits advised Members to raise concerns directly with the service. • Concern was raised in respect of the homeless being placed within bed and breakfast accommodation outside of Conwy County and it was queried whether placements were monitored. - In response, the Head of Regulatory and Housing Services advised that he would provide the Member with figures following the meeting. • An update was requested in respect of recruitment and retention challenges along with capacity issues in respect of Environmental Enforcement. - In response, the Head of People and Performance advised that Environmental Enforcement capacity issues were in relation to budget decisions. Funding options were being explored. - An update in respect of recruitment would be provided at the Member Development and Information Forum on 1 December, 2022. • Concern was raised in respect of capacity issues within Social Care. - The Head of Service - Integrated Adult and Community Services advised that, in respect of Social Care, the level of demand was resulting in sustainability issues Additional elderly mentally infirm (EMI) beds were required as the lack of provision was affecting other areas. - Discussions were ongoing with care providers. • In respect of homelessness, it was queried as to whether the rising number of Airbnb’s was being addressed. - In response, the Head of Regulatory and Housing Services advised that as this was a national issue it could not be addressed locally. - The Cabinet Member for Housing and Regulatory was in discussions with Welsh Government (WG). • In respect of NR1 (The risk that vital corporate digital born documents/information are lost as we do not have a system to digitally preserve the information) concern was raised in respect of documents that had been lost. - In response, the Head of People and Performance advised that the pace of change was significant and that the risk was in relation to the compatibility of documents that had already been preserved. • It was queried whether details could be provided in respect of trends and target dates for risks and issues. - In response, the Corporate Performance and Improvement Manager advised that this information was available and would be shared with Members following the meeting. RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
Decision as recorded
RESOLVED: a) That the current treasury position carried out in accordance with the Council’s Treasury Management Strategy and Investment Strategy be noted. b) That the revised prudential indicators be approved.
The Principal Accountant provided Members with a presentation in relation to Treasury Management Activity for 2022-2023. The aim of the report was to keep Members informed of the Council’s position as regards compliance with its approved 2022/2023 Treasury Management Strategy and Investment Strategy, and to monitor the current position on both investments and borrowing. The following points were highlighted within the presentation: • A report to Cabinet on 22 November, 2022 noted that the total revised Capital Programme was £144.836m of which £65.723m was estimated to spend in 2022/2023. • The £65.723m was funded from capital receipts (£340k), capital reserves (£2.983m) and capital grants (£19.842m), leaving £42.558m to be funded from borrowing. • The current level of short term borrowing was £55.0m as at 25 October, 2022. • The current level of Public Works Loan Board (PWLB) borrowing was £81.6m as at 25 October, 2022. • The Council also had £31m in market loans. • The Capital Financing Requirement (CFR) for 2022/2023 had decreased from £274.911m to £259.222m due to the re-profiling of the capital programme. • The current level of investments was between £23m and £60m; the level varied throughout the month in line with the cash flow needs of the Authority. • Investment balances were maintained at a minimum of £10m to meet the criteria for MIFID II and to remain in the professional investor category. • Arlingclose had been the Council’s Treasury Management Advisors since 2013/2014 following a procurement exercise. In accordance with the contract, and under the Council’s procurement rules, the contract was extended earlier in the year for a further 3 years to 30 April 2025. • Investment benchmarking information provided by Arlingclose was included within Appendix C of the report. Members discussed the following: • It was queried as to whether Lender Option Borrower Option (LOBO) loans were linked to any underlying derivatives and what impact fluctuating interest rates would have. - In response, the Accountant advised that LOBO’s had been a cause for concern, however, as interest rates had levelled off this was no longer an issue. - If rates were to increase PWLB loans would be utilised. • It was queried whether a tender exercise had been carried out in respect of extending Arlingclose’s contract for a further 3 years. - In response, the Strategic Director – Finance and Resources advised that the value of the contract was below the requirement for the tender process. - Quotes were requested and the only one received was from Arlingclose, which was a competitive quote. • In respect of benchmarking, it was queried as to why Conwy County Borough Council (CCBC) did not utilise fund unsecured or strategic funds for investments. - In response, the Accountant advised that CCBC’s investments were with other Local Authorities or with the Debt Management Office (DMO). - Some other Local Authorities had diversified as they had more funds available. • Clarification was sought in respect of the £11m included within the revised capital programme for new/existing schemes. - In response, the Strategic Director – Finance and Resources advised that it had been anticipated that three Levelling Up bids would be submitted, one of which was a shared bid with Denbighshire County Council. - Legislation had since changed, meaning that both Authorities could apply separately meaning that the bid had increased from £10m to £20m. - Council approved a revision to the Capital Programme. The Cabinet Member for Finance, Revenue and Benefits extended his thanks to the Corporate Finance Team for their ongoing due diligence. RESOLVED: a) That the current treasury position carried out in accordance with the Council’s Treasury Management Strategy and Investment Strategy be noted. b) That the revised prudential indicators be approved.
Decision as recorded
RESOLVED: That the contents of the letter from the Public Services Ombudsman foe Wales dated August 2022 be noted.
The Head of Regulatory and Housing Services presented Members with the Public Services Ombudsman for Wales (PSOW) Annual Letter. The PSOW sent a letter to the Council on an annual basis which dealt with complaints relating to maladministration and service failure, complaints relating to alleged breaches of the Code of Conduct for Councillors and the actions being taken to improve public services. The letter was included within Appendix 1 of the report. The following points were highlighted: • Conwy County Borough Council’s (CCBC) performance, in respect of complaints received, was favourable when compared to other Local Authorities in Wales. • The requirements for the Council in respect of the Annual letter were as follows; - Present the Annual Letter to Cabinet and to the Governance and Audit Committee and share any feedback with the PSOW’s Office. - Continue to engage with the Complaints Standards work, accessing training for our staff, fully implementing the model policy, and providing complaints data. - Inform the PSOW of the outcome of the Council’s considerations and proposed actions on the above matters by 30 September, 2022 · The proposed date above had been extended for all Council’s in Wales to accommodate varying democratic timetables. - CCBC had informed the Complaints Standards Authority (CSA) that a response would be submitted before the end of 2022. RESOLVED: That the contents of the letter from the Public Services Ombudsman foe Wales dated August 2022 be noted.
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