Agenda and draft minutes

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Contact: Clare Rendell Email: c.rendell@somersetwestandtaunton.gov.uk 

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Items
No. Item

1.

Apologies

2.

Minutes of the previous meeting of the Audit, Governance and Standards Committee pdf icon PDF 634 KB

    To approve the minutes of the previous meeting of the Committee.

    Additional documents:

    Minutes:

    (Minutes of the meeting of the Audit, Governance and Standards Committee held on 21 September 2020 circulated with the agenda)

     

    Proposed by Councillor Coles and seconded by Councillor Pugsley

     

    Resolved that the minutes of the Audit, Governance and Standards Committee held on 21 September be confirmed as a correct record.

3.

Declarations of Interest

    To receive and note any declarations of disclosable pecuniary or prejudicial or personal interests in respect of any matters included on the agenda for consideration at this meeting.

     

    (The personal interests of Councillors and Clerks of Somerset County Council, Town or Parish Councils and other Local Authorities will automatically be recorded in the minutes.)

    Additional documents:

    Minutes:

    Members present at the meeting declared the following personal interests in their capacity as a Councillor or Clerk of a County, Town or Parish Council or any other Local Authority:-

     

    Name

    Minute No.

    Description of Interest

    Reason

    Action Taken

    Cllr L Baker

    All Items

    CheddonFitzpaine & Taunton Charter Trustee

    Personal

    Spoke and Voted

    Cllr N Cavill

    All Items

    West Monkton

    Personal

    Spoke and Voted

    Cllr S Coles

    All Items

    SCC & Taunton Charter Trustee

    Personal

    Spoke and Voted

    Cllr H Davies

    All Items

    SCC

    Personal

    Spoke and Voted

    Cllr C Ellis

    All Items

    Taunton Charter Trustee

    Personal

    Spoke and Voted

    Cllr D Perry

    All Items

    Taunton Charter Trustee

    Personal

    Spoke and Voted

    Cllr H Prior-Sankey

    All Items

    SCC & Taunton Charter Trustee

    Personal

    Spoke and Voted

    Cllr T Venner

    All Items

    Minehead

    Personal

    Spoke and Voted

    Cllr D Wedderkopp

    All Items

    Taunton Charter Trustee

    Personal

    Spoke and Voted

     

4.

Public Participation

    The Chair to advise the Committee of any items on which members of the public have requested to speak and advise those members of the public present of the details of the Council’s public participation scheme.

     

    For those members of the public who have submitted any questions or statements, please note, a three minute time limit applies to each speaker and you will be asked to speak before Councillors debate the issue.

     

    Temporary measures during the Coronavirus Pandemic

    Due to the Government guidance on measures to reduce the transmission of coronavirus (COVID-19), we will holding meetings in a virtual manner which will be live webcast on our website. Members of the public will still be able to register to speak and ask questions, which will then be read out by the Governance and Democracy Case Manager during Public Question Time and will either be answered by the Chair of the Committee, or the relevant Portfolio Holder, or be followed up with a written response.

    Additional documents:

    Minutes:

    No members of the public had requested to speak on any item on the agenda.

5.

Audit, Governance and Standards Committee Forward Plan pdf icon PDF 57 KB

    To receive items and review the Forward Plan.

    Additional documents:

    Minutes:

    (Copy of the Audit, Governance and Standards Committee Forward Plan, circulated with the agenda).

     

    Councillors were reminded that if they had an item they wanted to add to the agenda, that they should send their requests to the Governance Team.

     

    Proposed by Councillor Coles and Seconded by Councillor Perry.

     

    Resolved that the Audit, Governance and Standards Committee Forward Plan be noted.

6.

SWAP Internal Audit - Progress Report 2020-21 pdf icon PDF 303 KB

    The 2020-21 Annual Internal Audit Plan is to provide independent and objective assurance on SWT Internal Control Environment. This work will support the Annual Governance Statement.

    Additional documents:

    Minutes:

    Alastair Woodland introduced the report. The 2020-21 Annual Internal Audit Plan is to provide independent and objective assurance on SWT Internal Control Environment. This work will support the Annual Governance Statement.

     

    This report summarises the work of the Council’s Internal Audit Service and provided details of any new significant weaknesses identified during internal audit work completed since the last report to the committee in September 2020. 

     

    A schedule of audits completed during the period, detailing their respective assurance opinion rating, the number of recommendations and the respective priority rankings of these.

     

    The Internal Audit Progress Report for 2020-21 was contained within the SWAP Report in Appendix A. 

     

    Appendix A set out a number of areas such as the internal Audit Work Programme progress, the SWT Plan Performance. The Summary of work Plan and Priority recommendations were also considered.

     

    During the debate the following comments and questions were raised:-

     

    ·         Further information was requested in relation to the investigations set out in the report. Due to the sensitivity of this information it was agreed to be provided to the committee following the meeting

    ·         Some areas had not been concluded and resolved following the previous update in respect of the delivery of the transformation programme, concerns were raised over the lack of progress being made.

    ·         A completed status for the DLO audit was questioned and when this would be available. An officer had attended the committee to answer questions around this. It was considered that Open contractor software would cease to be used from April and work was underway to ensure all clients are clear on pricing and billing strategy.

    ·         An up to date procurement strategy was overdue, the details around any delays were questioned.

     

    Resolved that the Audit, Governance and Standards Committee:- noted progress made in delivery of the 2020-21 internal audit plan and significant findings since the previous update in September 2020. 

7.

Summary of Level 1 and 2 Internal Audit Actions pdf icon PDF 223 KB

    The purpose of this report is to update the Committee on progress against level 1 and 2 Internal Audit Actions.

    Additional documents:

    Minutes:

    The Council has engaged the South West Audit Partnership (SWAP) to carry out its Internal Audit functions; checking the adequacy of controls and procedures across the whole range of Council services.  

     

    At the start of each financial year an audit plan is agreed between SWAP and the Council which identifies the areas of highest potential organisational and operational risk within the Council.

     

    When an audit takes place a report is provided to the service manager concerned which gives an audit conclusion and opinion.

     

    Any control or procedural weaknesses are identified within an action plan appended to the audit report.

     

    All findings will be allocated one of 3 priority ratings as set out:

     

    Priority 1 Findings that are fundamental to the integrity of the service’s business processes and require the immediate attention of management

    Priority 2 Important findings that need to be resolved by management

    Priority 3 Finding that requires attention

     

    Each finding within the action plan contains a target implementation date which has been agreed between SWAP and the service manager concerned.

     

    All priority 1and 2 recommendations are captured in a register to ensure progress against the recommendations can be tracked and progress reported to the Audit, Governance and Standards Committee.

     

    This report gives the Committee a progress update on all priority 1 and 2 audit actions, including those where the agreed remedial action is overdue. 

     

    A summary of the priority 1 and 2 actions was provided in Appendix A.

     

    Appendix A set out the Update on Priority 1 and 2 Audit Recommendations

     

    During the debate the following comments and questions were raised:-

     

     

    ·        E5 and Open Contractor systems were considered. Covid-19 had delayed progress with the process redesign and replacement of these systems. This was ongoing but the aim of completing and implementing the replacement would be achieved in the New Year.

    ·        The transformation process should have brought in systems to resolve the processes of payments and transactions, it was considered if further work was required to address this.

    ·        Tracking transactions through systems was not an easy fix but the team had tracked progress and were working through this.

    ·        Progress in business continuity planning was discussed following the experience of the pandemic.

    ·        Business Continuity plans and escalating high risk issues were referred to Gold as the pandemic was ongoing, risks and issues from these plans would be distributed.

    ·        Further details in the financial actions would be updated in the next report. Revised targets had been set out and resources had been adaptable to Covid-19 grant schemes being implemented to communities.

     

     

    Resolved that the Audit, Governance and Standards Committee reviewed the overdue actions contained in the report and noted progress to date.

     

8.

Financial Control and Reporting Procedures pdf icon PDF 278 KB

    The purpose of the report is to provide members of the Committee with an update regarding financial reporting arrangements and progress addressing audit recommendations from key control reports.

    Additional documents:

    Minutes:

    The Finance Business Partner introduced the report.

     

    The purpose of the report was to provide members of the Committee with an update regarding financial reporting arrangements and progress addressing audit recommendations from key control reports

     

    Effective financial controls are among the key elements of the corporate governance framework and business control environment. A number of key control audits were undertaken as part of the 2019/20 audit plan. The testing largely focussed on the first 69 months of last year, where the Council’s controls and processes were particularly susceptible to the impact of organisational disruption, including a high number of staff changes and the transition of systems and procedures to the new Council which was formed on 1 April 2019. The audits undertaken reported a range of risks including some weaknesses in the control environment, with the internal auditor reporting only ‘partial assurance’.

     

    The auditor’s partial assurance definition is: “In relation to the areas reviewed and the controls found to be in place, some key risks are not well managed and systems require the introduction or improvement of internal controls to ensure the achievement of objectives.”

     

    The financial key controls audit assurance and number of audit recommendations for each area is summarised as a table in the report:

     

    During the consideration of the item the following comments and questions were raised:-

     

    ·        The committee thanked officers in the Finance Team for their hard work and congratulated them for their reports and changes implemented to the formatting.

    ·        It was questioned if streamlining had led to less rigorous checks to invoices being paid.

    ·        The banking contract was discussed and consideration given of the renewal of the banking arrangements which were considered overdue.

    ·        It was questioned if attendance of training for budget holders should be mandatory. Officer attendance to budget holder training was strongly encouraged.

     

     

    Resolved that the Audit, Governance and Standards Committee reviewed and noted the progress in improving financial control and reporting arrangements.

     

     

9.

Treasury Management Update - 30th September 2020 pdf icon PDF 216 KB

    The purpose of the report is to provide Members with an update on the Treasury Management activity of the Council for the first six months of 2020/21. It focuses on a review of the Council’s borrowing and investment activities.

    Additional documents:

    Minutes:

    The Finance Business Partner introduced the report.

     

    The purpose of the report provide Members with an update on the Treasury Management activity of the Council for the first six months of 2020/21. It focuses on a review of the Council’s borrowing and investment activities.

     

    The Council has adopted the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice (the CIPFA Code) which requires the Council to receive and approve, as a minimum, three main reports each year, which incorporate a variety of policies, estimates and actuals. These reports are required to be adequately scrutinised by committee before being recommended to the Council. This role is undertaken by the Audit, Governance and Standards Committee.

     

    The Council’s treasury management strategy for 2020/21 was approved at a meeting of the Council on 19th February 2020. The Authority has borrowed and invested substantial sums of money and is therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates.  The successful identification, monitoring and control of risk remains central to the Council’s treasury management strategy.

     

    The 2017 Prudential Code includes a requirement for local authorities to provide a Capital Strategy, a summary document approved by full Council covering capital expenditure and financing, treasury management and non-treasury investments.  The Council’s Capital Strategy, complying with CIPFA’s requirement, was also approved by full Council on 19th February 2020.

     

    The Council has adopted the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice (the CIPFA Code) which requires the Council to approve treasury management semi-annual and annual reports.

     

    The Council’s treasury management strategy for 2020/21 was approved at the Full Council meeting on 19th February 2020. The Council has invested substantial sums of money and is therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates.  The successful identification, monitoring and control of risk remains central to the Council’s treasury management strategy.

     

    The 2017 Prudential Code includes a requirement for local authorities to provide a Capital Strategy, a summary document approved by full Council covering capital expenditure and financing, treasury management and non-treasury investments.  The Council’s Capital Strategy, complying with CIPFA’s requirement, was also approved by full Council on 19th February 2020.

     

    During the debate the following comments and questions were raised.

     

    ·        The committee commended the AA ratings and levels of funding in the various sections. The Finance Team were thanked for their reports.

     

    Resolved that the Audit, Governance and Standards Committee noted the Treasury Management position as at 30th September 2020 (Appendix A attached to this report.

10.

Landlord Health and Safety Property Compliance Update Report pdf icon PDF 446 KB

    This report provides an updated position for the main landlord health and safety property compliance disciplines.

    Additional documents:

    Minutes:

    The Assistant Director for Housing, Property and Communities introduced and

    presented the item.

     

    This report provided an updated position for the main landlord health and safety property compliance disciplines. Understandably, the Covid-19 pandemic has significantly impacted our ability to progress with a number of the required actions since the last update provided to the Audit, Governance and Standards Committee on 7th September 2020.  In particular, limitations within resource (both internally, and for contractors) has led to challenges in undertaking the necessary works. Obtaining access from some vulnerable tenants who are shielding or are anxious about allowing people into their homes during the second lock down continues to create difficulties in maintaining compliance in some areas.  However, we are continuing with all compliance activities.       

     

    The information within this report summarises the current compliance of Somerset West and Taunton Council in relation to the following six key areas: 

     

    Asbestos management

    Electrical safety

    Fire safety

    Gas safety

    Lift and Stair-lift management

    Water management (Legionella)

     

    Each compliance area is monitored separately as defined by properties contained within either the Council’s Housing Revenue Account (HRA) or General Fund (GF) accounts. HRA Blocks refer to all communal area(s) within the block (including any meeting halls), HRA Commercial refers to non-residential properties (e.g. shops or offices), HRA Dwellings refers to the individual property (e.g. house, bungalow, flat, etc.) and GF Property refers to the entire building.

     

    The report identified:

    Somerset West and Taunton Councils current compliance status (as at 25th November 2020)

    Comparative performance from the previous report submitted on 7th September 2020 wherever possible. 

     

    Table properties have changed since the last report following a validation process of required compliance activities, and the separation of properties for ease of servicing and reporting. 

     

    Achievements and successes since the last report.

    Realignment of audit categories to revised work streams / programmes of work. Issues adversely affecting compliance and action being taken.

    Regulations / legislation which affects the way Somerset West and Taunton Council manages its compliance.

     

    Risk ratings and timescales:

    Somerset West and Taunton Council will review and where suitable use the ratings and timescales suggested by its approved contractors when receiving an inspection report. Where no timescales are given by the contractor, Somerset West and Taunton Council timescales as set out in its relevant policies will be adopted. Hazards deemed as urgent or as emergency works will be actioned as soon as reasonably practicable. This may include restricting access to areas immediately until the hazard can be removed.  Somerset West and Taunton Council may at times review hazards and change their priority if the original priority does not reflect the current use of the building or if there has been additional measures put in place that reduces the overall risk.

     

    During the debate the following comments and questions were raised:-

     

    ·        Electrical testing in relation to HRA properties were questioned.

    ·        It was examined if Flook House was a General Fund or HRA property.

    ·        Percentages set out on page 104 was considered. Asbestos surveys were discussed and if delays to  ...  view the full minutes text for item 10.

11.

Access to Information - Exclusion of the Press and Public

    During discussion of the following item it may be necessary to pass the following resolution to exclude the press and public having reflected on Article 13 13.02(e) (a presumption in favour of openness) of the Constitution.  This decision may be required because consideration of this matter in public may disclose information falling within one of the descriptions of exempt information in Schedule 12A to the Local Government Act.  The Committee will need to decide whether, in all the circumstances of the case, the public interest in maintaining the exemption, outweighs the public interest in disclosing the information.

     

    Recommend that under Section 100A(4) of the Local Government Act 1972 the public be excluded from the next item of business on the ground that it involved the likely disclosure of exempt information as defined in paragraph 1 respectively of Part 1 of Schedule 12A of the Act, namely information relating to any individual.

    Additional documents:

    Minutes:

    Resolvedthat the press and public be excluded during consideration of agenda item 16 on the grounds that, if the press and public were present during the item, there would be likely to be a disclosure to them of exempt information of the class specified in Paragraph 2 of Part 1 of Schedule 12A of the Local Government Act 1972 as amended as follows: The items contained information that could release confidential information that would reveal the identity of an individual.  It was therefore agreed that after consideration of all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

     

12.

Monitoring Officer Update

    This report will be a verbal update on any items that the Monitoring Officer needs to make the Committee aware of.

    Minutes:

    The Monitoring Officer provided an update in relation to recent complaints considered by the standards sub-committee and the numbers of complaints that had been received in relation to local Councillors.

     

    A training session had been undertaken on Zoom for Somerset West and Taunton Councillors.

     

    A meeting of group leaders would be arranged in relation to complaints around conduct with Officers.

     

    A further update of a number of Casual Vacancies from Parish Councils was reported.

     

    Resolved that the Audit, Governance and Standards Committee noted the update from the Monitoring Officer.