Agenda and minutes

Venue: Committee Rooms 1 & 2 - Deanes. View directions

Contact: Democratic Services Team 

Link: Video Recording

Items
No. Item

138/18

Apologies for absence and substitutions

Minutes:

Councillor D Potter was replaced by Councillor S Grant.

Councillor P Harvey was replaced by Councillor C Phillimore.

Councillor J Westbrook was replaced by Councillor T Jones.

 

139/18

Declarations of interest

Minutes:

There were no declarations of interest.

 

140/18

Urgent matters

To consider any items of business, other than those shown on this agenda and which, by reason of special circumstances to be stated at the meeting, in the opinion of the Chairman, should be considered at the meeting as a matter of urgency.

 

Minutes:

There were no urgent matters.

 

141/18

Minutes of the meeting held on 28 January 2019 pdf icon PDF 205 KB

The Chair will move that the minutes of the meeting be signed as a correct record. The only part of the minutes that can be discussed is their accuracy.

Minutes:

The minutes of the meeting held on the 28 January 2019 were confirmed by the committee as a correct record and signed by the Chair.

 

The Chair invited the Committee to ask questions to the Cabinet Member for Finance, Service Delivery and Improvement who had attended the meeting as requested by the Committee at its meeting in January. Questions were raised regarding the new homes bonus, accounting for the valuation of the Manydown development and the risk management process.

 

142/18

Property Investment Strategy Monitoring Q3 2018/19 pdf icon PDF 305 KB

Contact Officer: Charles Hawkeswood

To inform members of activity up to quarter 3 of 2018.

 

This report is to follow.

Additional documents:

Minutes:

The Asset Manager introduced the report which presented the Committee with the Property Investment Strategy Quarter 3 2018 Report. He informed the Committee that the report incorrectly stated that one of the property investment opportunities that had been considered had been turned down due to a planning query when instead it was due to a restrictive user clause contained in the lease.

 

The Chair made reference to 9.1 of the report and explained that the report incorrectly stated that the Winkworth report which covered the market activity for the last quarter of 2018 had been circulated to the chair of the Audit and Accounts Committee when it had actually been circulated to the whole Committee.

 

Some Members felt that Winkworth report was unimaginative. The Cabinet Member for Property and Development informed the Committee that he had agreed that a more detailed report on Residential Development should be brought to the June meeting of the Committee.

 

Questions were raised in relation to the Eli Lily development and the additional funding costs which had been reported in the media. Officers confirmed that there had been further costs in order to deliver the new HQ , the additional costs of £1.9 million would be split in a number of parts with £500,000 contribution from the Council and the remainder being made up of a grant from the LEP and funding from Muse and Elli Lily.

 

Members stressed the importance of using the fund for residential investments within the Borough.

 

Some members felt that the decision making process for the fund and whether an opportunity was worth investing in or not was not clear enough.

 

Resolved: The Committee

 

1)    notes the report

 

2)    provides its comments to the Cabinet Member for Property and Development

143/18

Invest to Grow Fund - Third Quarter Report 2018/19 pdf icon PDF 383 KB

Contact Officer: Phillip Hood

This Report informs the Committee of the activity in the Invest to grow fund up to quarter 3 2018.

Minutes:

Mr G Richards and Mr J Bahsoon from CBRE introduced the report which informed the Committee of the activity within the Invest to Grow fund up to quarter 3 of 2018.

 

The Committee were displeased that there seemed to be no progress or outcomes from the fund.

 

Some members questioned the approach that had been used in order to contact those that may have potential investment opportunities for the Council. CBRE explained that there were a number of factors involved. These included the challenges of reassuring new clients that Council funding was a credible option, increasing awareness of the fund and achieving a fair return on any investments made.

 

The Committee questioned whether any direct marketing had been undertaken in order to promote the fund and were concerned that other than Eli Lily there were no investments being made by the fund. The Cabinet Member for Property and Development confirmed that if the current approach did not work then alternative approaches would be considered and the Committee requested that they be included in some way in any discussions in relation to any suggested new approaches.

 

Some members also questioned the fee structure for CBRE who managed the fund.

 

The Committee requested that they be provided with details of any engagements that CBRE had with potential clients since the creation of the fund and why the projects had not come into fruition. The Executive Director of Finance and Resources and CBRE explained that they would have to review the information in order to check what could be provided to the Committee including anonomising commercially confidential information.

 

Resolved: The Committee notes the report.

 

144/18

Treasury Management Q3 Report 2018/19 pdf icon PDF 572 KB

Contact Officer: Dean Pletts

This report shows the activity within the council’s treasury management function from 1 April 2018 up to 31 December 2018 and also includes forecasts for the year ending 31 March 2019.

Minutes:

The Accountancy Manager introduced the report which provided the Committee with an update on the activity within the council’s treasury management function from the 1 April 2018 up to 31 December 2018.

 

Resolved: The Committee notes the report.

 

145/18

Accounting Policies and changes to the statement of accounts for 2018/19 pdf icon PDF 470 KB

Contact Officer: Dean Pletts

To inform members of the accounting policies proposed to be used in 2018/19 accounts.

Minutes:

The Accountancy Manager introduced the report which informed the Committee of the accounting policies which were proposed to be used for 2018/19 accounts.

 

Members queried whether the new policy would have any effect on the balance sheet in regard to leases. The Accountancy Manager confirmed that it would not.

 

Resolved: the Committee

 

1)    notes the significant accounting policies set out in Appendix 1 for publication in the Statement of Accounts for the year ending 31 March 2019.

 

2)    notes that the changes to the Local Authority Accounting Code of Practice for 2018/19 will impact on the accounting and presentation of the accounts for Financial Instruments.

 

146/18

EY - Basingstoke and Deane Borough Council Audit planning report pdf icon PDF 5 MB

Contact Officer: Dean Pletts

The Purpose of this report is to provide the Committee with a basis to review the proposed external audit approach and scope for the 2018/19 audit.

Minutes:

Mr K Suter from EY introduced the report which provided the Committee with a basis to review the proposed external audit approach and scope for the 2018/19 audit.

 

Councillor Jones left the meeting during the discussion of this item.

 

Members questioned why EY would be reviewing the Manydown development but not any of the Council’s other significant projects for example the Leisure Park redevelopment.

 

Mr Suter explained that every year they carried out a risk based planning activity and would conclude whether the relevant risk arrangements were in place for the project and that unfortunately they were not able to review every project.

 

Members queried the high turnover of staff and the larger number of interim officers in recent months and whether it was something that EY could review. Mr Suter responded that there was no evidence that the change in staff had resulted in a deterioration of the council’s arrangements.

 

Resolved: The Committee notes the report.

 

147/18

EY - Grant Certification Report 2017/18 pdf icon PDF 990 KB

Contact Officer: Dean Pletts

The certification of claims and returns annual report for 2017-18.

Minutes:

Mr K Suter from EY introduced the report which provided the Committee with the certification of claims and returns annual report for 2017-18.

 

148/18

Summary of Investment Income 2018/19 pdf icon PDF 108 KB

Contact Officer: Phillip Hood

The attached table provides a summary of investment income budgets for the year and the latest forecasts against those budgets.

 

Minutes:

The Chair introduced the report that provided the Committee with a summary of investment income budgets for the year and the latest forecasts against those budgets.

 

Resolved: The Committee notes the report.

 

149/18

Internal Audit Progress Report (December 2018 - February 2019) pdf icon PDF 363 KB

Contact Officer: Richard Bevan

This report informs the Committee of the work completed by the Internal Audit Team during the period December 2018 - February 2019 and the current position with outstanding audit recommendations.

 

Additional documents:

Minutes:

The Senior Auditor introduced the report which informed the Committee of the work completed by the Internal Audit Team during the period December 2018 - February 2019 and the current position in regard to the outstanding audit recommendations.

 

The Senior Auditor confirmed that the progress on the S106 review which was requested by the Committee would be reported at its next meeting.

 

Some members felt that the current risk management process excluded members from being informed when there were issues with some of the large projects.

 

Resolved: The Committee notes the report.

 

150/18

Internal Audit Plan 2019/20 pdf icon PDF 335 KB

Contact Officer: Paul Gundry

The report is to present the planned audit work for 2019/20 and the Internal Audit Charter to the Committee for approval.

Additional documents:

Minutes:

The Chief Internal Auditor introduced the report which presented the Committee with the planned audit work for 2019/20 and the Internal Audit Charter for approval.

 

The Chief Internal Auditor confirmed that if members had any specific examples, in respect of section 106, that they would like to be included in a review then they should submit them to the Audit Team.

 

The Chief Internal Auditor confirmed that the concerns in relation to project risk could be picked up and focused on under the project management governance arrangements.

 

Resolved: the Committee;

 

1)    approves the internal Audit Plan 2019/20

 

2) approves the internal Audit Charter

 

151/18

Review of the Corporate Risk Register pdf icon PDF 347 KB

Contact Officer: Paul Gundry

This report presents the Committee with the current status of the corporate risk register and request approval of the revised risk management policy.

Additional documents:

Minutes:

The Chief Internal Auditor introduced the report which presented the Committee with the current status of the corporate risk register and requested approval of the revised risk management policy.

 

Questions were raised in regard to the fact that the Internal Audit Team kept and maintained the corporate risk register as well as carrying out the audit and reporting on the effectiveness of the register. The Chief Internal Auditor explained that although he kept the register on behalf of SLT, the Senior Auditor carried out the audit and reported directly to the Executive Director of Finance and Resources in order to mitigate any potential conflicts.

 

The Chief Internal Auditor further clarified that risk RR4 (partnerships, projects and relationships) was directed towards “supporting the growth, economic development and regeneration of areas within the borough” and ensuring that the relevant controls were in place in order to manage this, rather than looking at the individual projects and how they were controlled in terms of risk.

 

The Executive Director of Finance and Resources informed the Committee that she would take the item away and review the best way of presenting and informing the Committee of any current risks.

 

Resolved: the Committee;

 

1)    notes the report

 

2)    approves the changes to the Risk Management policy

 

152/18

Audit and Accounts Committee Effectiveness Review pdf icon PDF 246 KB

Contact Officer: Phillip Hood

Following the meeting held in December 2018, the committee agreed to appoint Ernst and Young to facilitate a session to review their effectiveness using the E&Y toolkit. This report sets out the findings of that session and requests the committee to agree an action plan.

Additional documents:

Minutes:

The Head of Financial Services introduced the report which set out the findings of the facilitated review session and requested that the committee agree an action plan.

 

The Committee reviewed the report and considered and made comments on the suggested actions.

 

1 - Revised Terms of Reference (ToR)

 

The Committee agreed that that draft revised ToR should be produced for the committee to consider at its next meeting in June. Members felt that there should also be a review of some of the other committees especially the Performance Panel as members were unsure as to why the Performance Panel received reports on the budget and felt that it was more appropriate for them to review it as a committee.

Members also hoped that by undertaking this review they would have more of an awareness of what reports were considered by each committee and could ensure that no items had been missed or overlooked.

 

 

The Committee also requested that the revised ToR include information on governance and what the Committee‘s role was when they were reviewing reports.

 

2 – AAC Training

 

The Committee requested that the Committees training programme for the municipal year be included in the Audit and Accounts Committee Handbook. Members would also like to have some of the background to the regular reports that the Committee received included in the handbook.

 

Members agreed that they would like an induction training session for the new Committee in May and requested that Officers circulate an induction programme for the Committee to comment on.

 

Members acknowledged that the training on the statement of accounts would be held in June.

 

Some members felt that the afternoon meetings of the Committee excluded some from being able to attend.

 

 

3 – AAC Workplan for the whole year

 

The Committee agreed that there should be a one year rolling schedule which would start at the Committee’s next meeting in June.

 

4 - Action tracking for each AAC meeting

 

The Committee were pleased that a recommendation tracker would be produced and felt that it would be a useful addition to all of the Councils Committees.

 

Some members were unhappy with the current format of minutes for the Committees and questioned whether the Committee would be able to change the format of their minutes. The Assistant Democratic Services Officer confirmed that the minute style was changed a number of years ago due to a policy decision and that all of the minutes for the Councils Committees were produced in line with that guidance.

 

5 – Assurance around the 18/19 data breach

 

Members stressed that any reports regarding data breaches which came to the Committee should include sufficient information on the breaches and the relevant controls that had been put in place.

 

6 - Evidencing the application of the LCCG

 

The Committee agreed with the recommendation to approve a revised Code of Corporate Governance and the Annual Governance Statement at the June meeting.

 

 7- Full annual review of Risk Management required

 

The Committee acknowledged that this  ...  view the full minutes text for item 152/18

153/18

Data Protection Act 1998 - ICO Outcome following reported data breach pdf icon PDF 327 KB

Contact officer: Jackie Tatam

This report informs Members of the Committee of the outcome of the ICO’s investigation into the data breach in December 2017.

Additional documents:

Minutes:

The Data Protection Officer introduced the report informed the Committee of the outcome of the ICO’s investigation into the data breach in December 2017 and two further breaches which had been determined by the ICO.

 

The Chair proposed that due to the confidential nature of certain information contained within the agenda item, the Committee pass a resolution that by virtue of paragraph 1 of Schedule 12A of the Local Government Act 1972, the public be excluded from the meeting. 

 

On resumption of the open session, the Chair confirmed that the Committee had noted and commented on the details of the appendices, the recommendations made by the ICO and the steps but in place and were satisfied.

 

The Committee felt that member training on data protection should be mandatory.

 

Resolved: The Committee

 

1) notes and  provides its comments to Officers

 

2) agrees to the recommendation in 2.7.4 to ask Group Leaders to ensure all Members undertake data protection training.

 

154/18

Viewing of Social Networking Sites and RIPA Inspection Update pdf icon PDF 233 KB

Contact Officer: Jackie Tatam

This report provides Members of the Committee with a summary of the viewing of social networking sites by officers in an investigatory capacity.

 

Minutes:

The Data Protection Officer introduced the report which provided the Committee with a summary of the viewing of social networking sites by officers in an investigatory capacity.

 

The Chair questioned whether the lack of viewings was due to a seasonal trend. The Data Protection Officer confirmed that generally there had been a tailing off of the use of site viewings in an investigatory capacity.

 

Resolved: the Committee notes the report.

 

155/18

Audit and Accounts work programme

The Committee is asked to note and review it’s work programme.

Minutes:

The Committee requested that the updated work programme be circulated to members with a copy of the Audit and Accounts Committee Handbook.