Wrthi'n llwytho
Y penderfyniadau fel y mae cofnodion y cyngor yn eu cofnodi. Bydd crynodeb mewn iaith glir yn dilyn pan fydd wedi'i ysgrifennu.
RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14, 16 and 21 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item. RESOLVED – That: (1) The report be noted; (2) A summary of the actions taken across the Council arising from lessons learned be presented to a future meeting of the Committee; (3) the Audit Manager in consultation with the Chairperson consider the development of an assurance map for legal and regulatory activities.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That (1) the report be noted; (2) feedback and observations from the Committee be provided to the Audit Manager by 24 February 2025.
RESOLVED – That: (1) the report be noted; (2) in future the recommendation tracker will be presented as set out above.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
Apologies for absence were received from Councillor Palmer.
The following declarations of interest were received in accordance with the Members Code of Conduct: Councillor Bradbury Item 4 Personal Member of Cabinet
The minutes of the meeting held on 26 November 2025 were approved by the Committee as a correct record and were signed by the Chairperson.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14, 16 and 21 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item. RESOLVED – That: (1) The report be noted; (2) A summary of the actions taken across the Council arising from lessons learned be presented to a future meeting of the Committee; (3) the Audit Manager in consultation with the Chairperson consider the development of an assurance map for legal and regulatory activities.
The Committee received a report enabling Members to seek assurance on the management and final settlement of the longstanding Landfill Tax Dispute with HMRC, including consideration of any lessons learned, dating back to 2017, which was concluded and reported to Council in September 2024. Members were advised that Landfill Tax is an environmental tax imposed on companies and organisations that dispose of waste at landfill sites. It is a tool used to reduce the environmental impact of landfilling and promote more sustainable waste management practices. Companies that disposed of waste at Council landfill sites were charged disposal costs calculated at a rate dependant on the material deposited. A dispute concerning the Lamby Way landfill site began in January 2017 relating to landfill tax assessments from the 1st of April 2015. HMRC assessments indicated that an amount of material deposited at the site should have been charged at the standard rate of tax rather than what had been applied which was the lower rate of tax. Given the timespan, the volume of material and difference in rates, this had represented a significant potential liability for the Council and had been subject to challenge and review. The dispute was finally resolved in September 2024. Details of the Settlement Arrangements were reported to full Council on the 26 September 2024. The Final Settlement payment of £15,219,195.11 was paid to HMRC on the 16 December 2024. Whilst this finalised payment arrangements with HMRC, the next phase of the work is to reinvoice and pursue the debt from the company involved. The Committee has received and had the opportunity to review the Council’s Statement of Accounts along with Audit Wales opinion on those Accounts. Each year since the start of the dispute, the purported under declared landfill tax has been noted as a contingent liability within the Accounts. Members were asked to note the final details agreed by Council in September 2024 and to consider whether management action taken to mitigate impact and protect the Council financially and non-financially was appropriate, and that any lessons learned from this dispute are clear and are applied effectively. The Chairperson welcomed Debbie Marles, Monitoring Officer; Ian Allwood, Head of Finance and Neil Hanratty, Director of Economic Development to the meeting. The Head of Finance was invited to deliver a presentation following which the item was opened for questions. Those discussions are summarised as follows: · Members asked what lessons had been learned that would prevent similar issues happening in future. The Head of Finance stated that the main lesson learned was for the authority to ensure that it was in compliance with regulatory or tax changes. Actions to ensure this happens are already in place. There was a role for the Finance directorate in challenging other services in order to gain assurance they are in compliance when they say they are. The number of officers responsible for VAT compliance has increased and there is a significant VAT training programme in place corporately. Monthly meetings take place with an external VAT expert who provides updates on VAT changes and workshops on particular issues. The Head of Economic Development stated that the dispute was illustrative of the culture in the service area at the time but many of the improvements have been introduced following on from a fraud case in the same service area. These include a new management team, regular reports to SMT, integration between the service area and Finance, new IT systems, better use of data, training and shared responsibility for regulatory changes. · A Member asked whether the authority’s ability and capacity to respond to tax changes have improved as a result of the dispute. The Head of Finance stated that the connections between service areas have improved. Internal capacity is limited but the opportunities to reach out to external experts are recognised. · A Member asked, in relation to the governance of the process, whether the relevant Cabinet Member was kept informed at all times regarding the scale of the problem and the actions that were being taken. The Head of Finance confirmed that the Cabinet Member was updated at all times. However, the scale of the problem was volatile and the authority’s liability changed a number of times during the period in question. The Section 151 Officer asked Members to note that volatility in terms of the amount of liability was the key rationale for the contingent liability note. The Council was acting under advice from external experts and the amount in question did not crystalise during the period. · A Member observed that budgeting was the responsibility of the whole Council and raised concerns that at no point during the process were the leaders of opposition groups updated, as he would expect, given the magnitude of the figures involved. · A Member noted that when the issue with HMRC first arose, officers within the service area did not advise the corporate body at the time and attempted to resolve the matter internally. It was approximately a year before the administration fully understood the issue. The Member asked how that has been addressed to ensure this could not happen in future. The Head of Finance referred to the answer provided regarding lessons learned in terms of knowing when regulations change and to follow up with progress reports from service areas. Previous challenges from HMRC were dealt with within the service area and HMRC had been satisfied on those matters. However, in this instance the regulations and responsibilities on the organisation receiving the waste had changed. · Responding to a question from the Committee, the Head of Finance provided assurance that adequate controls area in place across the authority to ensure tax and regulatory changes are identified and implemented. · The Section 151 confirmed that as soon as a potential liability was identified in 2018 it was noted as a contingent liability in the Statement of Accounts agreed by the Council in subsequent years. It was also confirmed that the Council’s position was that the waste had been properly processed throughout the period and in accordance with the prescribed regulations. · The Audit Manager outlined the work being undertaken by Internal Audit to provide assurance including reference taxation and PCI compliance as set out in the Audit Plan. · Responding to a question, the Head of Finance stated that in his opinion it would not have been possible for the Council to arrive at a settlement earlier. · The Audit Manager advised that an assurance map unpins the Audit Plan which provides a systematic approach to what areas need to be audited. The assurance map will consider and be informed by Senior Management Assurance Statements, Risk Registers, regulatory changes, the time since the last audit and the overall opinion of that audit. The Committee moved into closed session in order to discuss matters contained within the confidential appendixes to the report. RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14, 16 and 21 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item. RESOLVED – That: (1) The report be noted; (2) A summary of the actions taken across the Council arising from lessons learned be presented to a future meeting of the Committee; (3) the Audit Manager in consultation with the Chairperson consider the development of an assurance map for legal and regulatory activities.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
The Corporate Director of Resources and Section 151 Officer, Chris Lee, presented a financial update including resilience issues and gave a brief presentation setting out the budget position for 2025/26, including an update on the budget settlement from Welsh Government, budget gap modelling and savings identified and the next steps in terms of budget consultation and budget Council. The Section 151 Officer confirmed that funding for schools will include provision for Teaching and Non-Teaching staff pay settlements, inflation and pupil number changes. Savings requirements in schools has not been factored into the modelling. Members were advised that capital financing requirements will increase and will be reflected in the revenue budget. That detail will be reported once the capital programme has been agreed. RESOLVED – That the report be noted.
Rhan o fater a ddilynwyd ar draws 7 cyfarfod
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
The Committee received a progress report providing an update on the work and performance of the Internal Audit and Investigation Teams. The progress report covered the period from 1 October to 31 December 2024, and follows the updates provided in the last Committee meeting held on 26 November 2024. Annex 1 of the report set out performance in relation to the Internal Audit Plan. It summarises the work performed, the priority recommendations raised, the critical findings, emerging trends, and relevant value for money findings across the Council for the assurance of the Governance and Audit Committee. Annex 2 focused on proactive and reactive fraud awareness, detection and investigation activities, including participation in initiatives, such as National Fraud Initiative (NFI) data matching exercises. The Audit Manager presented the report. Members were asked to note that, further to the details provided to the Governance and Audit Committee in the progress report on 26 November 2024, and in the briefing session for Members on 14 January 2025, the Public Sector Internal Audit Standards (PSIAS) are being replaced by the Global Internal Audit Standards (GIAS). These Standards apply to the UK Public Sector from April 2025. A summary of the changes was provided. Members were advised that an internal gap analysis was undertaken during quarter three, using a checklist produced for public sector compliance reviews. Ten required actions were identified of which six actions have been completed to date. The remaining actions will be put in place by April 2025. RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
The Audit Manager presented a report providing Members with the Draft Internal Audit Strategy 2025/26 and the Draft Internal Audit Charter 2025/26 and appendices, including a draft Committee Terms of Reference. The report also provided a link to Audit Methodologies and the Draft Summary Audit Plan for 2025/26. Members were invited to consider the draft documents and feed in any comments which will support the development of final versions to be approved on 25 March 2025. The Audit Manager was asked to comment on the new ‘unacceptable risk’ standard. Members were advised that officers have been required to document a process that is already embedded within the PSAIS with the agreement of Committee. This standard would be indicative of a significant risk (red level) where management do not accept a recommendation. RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
The Chairperson invited Phillipa Dixon of Audit Wales to present the Audit Wales report on Capital Programme Management in Cardiff Council. Phillipa Dixon provided a summary of the key points in the report. Members were advised that the overall aim was to ensure that the Council has arrangements in place to secure value for money in the delivery of its capital programme. Audit Wales concluded that the Council as generally good arrangements to plan and monitor its capital programme. However, there were recommendations to improve benefit evaluation and knowledge sharing. Audit Wales made the following recommendations. R1 – The Council should review its business case templates and guidance, as well as any other guidance for planning capital projects to ensure they can be consistently applied where appropriate. R2 –The Council should review its arrangements for evaluating the benefits of completed capital projects to ensure it assesses whether the desired outcomes of a project have been achieved. The Council should ensure that due regard is given to proportionality of these assessments. R3 – The Council should improve its arrangements for sharing information on completed capital projects, to ensure both good and areas for improvement are captured, and learning consistently shared across the organisation. R4 – The Council should ensure it systematically reviews the effectiveness of all its capital programme management arrangements. Each arrangement should be reviewed at a frequency proportionate to the level of risk of the capital projects under that arrangement The Head of Finance and Section 151 Officer were invited to provide the management response to the recommendations. Members were advised that the recommendations have been considered and that processes are being reviewed and amended accordingly. RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That (1) the report be noted; (2) feedback and observations from the Committee be provided to the Audit Manager by 24 February 2025.
The Committee received a report providing Members with an opportunity to consider proposed changes to the Council’s Contract Standing Orders and Procurement Rules (CSO&PRs) and Financial Procedure Rules (FPRs). Following Committee consideration, the Constitution Committee will be asked to approve the updated rules in February 2025. The Council’s CSO&PRs have been updated in draft with a proposed new title of Contract Procedure Rules (CPRs), to incorporate the requirements of new legislation – The new Procurement Act 2023 and the Procurement (Wales) Regulations due to come into force on or after 24 February 2025 and The Social Partnership and Public Procurement (Wales) Act due to come into force late 2025. Gemma Ellis, OM Senior Category Manager in Procurement and Commissioning Services, was invited to present the report and summarised the main changes to the procedure rules. RESOLVED – That (1) the report be noted; (2) feedback and observations from the Committee be provided to the Audit Manager by 24 February 2025.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That: (1) the report be noted; (2) in future the recommendation tracker will be presented as set out above.
The Chairperson invited Dylan Owen, Head of Cabinet, to present the recommendation tracker report which included the summary position of the Council’s progress in responding to recommendations made by regulators and details of all recommendations which are currently open or that have been closed during the reporting period. Full details of the progress against the External Regulators’ recommendations were included in the Regulator Assessment Dashboard at Appendix 1 to the report. In summary, there are now only 16 open recommendations and all recommendations received by regulators up to and including financial year 2021/22 have been closed. Members were advised that the Regulatory Assessment Dashboard includes details of recommendations and the progress made going back to 2017/18 and attaching this information as a spreadsheet was becoming increasingly impractical. The new Regulator Assessment Dashboard provides public access to all relevant information, easily accessible through search options. It was therefore proposed that in future the reporting position presented to the Committee will: · set out the position in relation to regulatory recommendations over a rolling three-year period, unless there is an open recommendation outside that reporting period · highlight the Recommendations which have been closed since the reporting position was last considered by the Committee · be presented via the new Performance Dashboard and that workshops are arranged to support Committee members become confident users of the online reporting dashboard A Member observed that the narrative in response to a recommendation regarding recycling targets included reference to ‘pop up’ recycling centres and noted that such ‘pop up’ schemes have ceased. The Head of Cabinet stated that the recommendation dated back to 2022/23 and the service area has been advised of the importance of management responses being objective based and time bound. Responding to a supplementary question, the Head of Cabinet advised that updates to management responses are sought every six months. A Member raised concerns that reference to ‘pop up recycling centres’ was, therefore, still included in the management response as they haven’t taken place for quite some time. The Head of Cabinet advised that one of the advantages of the new dashboard would be that it provides not only details of the recommendations made by external bodies but it also provides details of every update provided by the service area. Colleagues from Audit Wales confirmed that they are finalising a follow-up on their Waste Management Review which will be reported in due course. RESOLVED – That: (1) the report be noted; (2) in future the recommendation tracker will be presented as set out above.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
Rhan o fater a ddilynwyd ar draws 8 cyfarfod
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
Y penderfyniad fel y'i cofnodwyd
RESOLVED – That the report be noted.
RESOLVED – That the report be noted.
No urgent items.
The next meeting is scheduled for 25 March 2025.
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