Agenda and minutes

To sign the minutes of the meeting held on 25 January 2012.

The minutes of the meeting held on 25 January 2012 were taken as read and signed by the Chair as correct.

Councillors are reminded of the need to declare personal and prejudicial interests, including the nature and extent of such interests, in relation to business on the agenda, before any discussion takes place on the item.  Councillors requiring clarification should seek the advice of the Monitoring Officer prior to the day of the meeting.

Members made no declarations of interest.

The Council’s External Auditor, Grant Thornton, will present the Certification Work Report to Members – report circulated

Mr Morris, from the Council’s External Auditor, presented the Certification Work Report for 2010/11.

Mr Morris outlined to Members the certification arrangements, the results of the certification work, the significant issues identified and the details of claims and returns certified for 2010/11. He advised that the fee for 2010/11 had been reduced by 7% to that of the previous year.

In response to Members, Mr Morris clarified that all the cases where a student loan was used to assess benefit were examined, this was due to there being less than 100 cases and no further qualifying claims.

Members noted the report.

(Report circulated)

The Council’s External Auditor, Grant Thornton, will present the Annual Audit Plan to Members – plan circulated

Mr Morris and Ms Masci of Grant Thornton, the Council’s External Auditor, presented the Audit Plan for 2011/12.

Ms Masci advised on the overview of the Audit Plan, the accounts audit risk assessment, the value for money audit and the audit fee.

Mr Morris stated to Members that an objection had been received to last year’s accounts in respect of parking charge notices, although this objection could not be considered as it was received out of time.

The Chief Executive advised that whilst the physical build of RAMM was completed there were contractual issues to be resolved.

Mr Morris outlined to Members that with the International Financial Reporting Standard (IFRS) a pragmatic common sense approach was required in some areas of the accounts. He advised that the disclosure of heritage assets would require the Council to disclose a value of all the Council’s assets in the 2011/12 accounts. This would require a pragmatic approach as it would be too costly for the Council to individually value all its assets and that valuations for insurance purposes could be used.

Mr Morris advised Members of future arrangements given the demise of the Audit Commission and that Grant Thornton had been successful in gaining the auditing contract for the South West. He stated that it was anticipated that the audit fee would be reduced in future years.

Members noted the Plan.

(Plan circulated)

To consider the joint report of the Assistant Director Finance, Assistant Director Economy and Acting Assistant Director Housing and Contracts – report circulated

The joint report of the Acting Assistant Director Housing and Contracts, Assistant Director Economy and Assistant Director Finance was submitted.

A Member had given notice of a question regarding the Housing Reactive Repairs - combined budget of £4,953,780 and the likely overspend of £200,000 for Empty Properties.

Members were circulated with a response (appended to minutes) which advised of the number and quality of void properties and the difficulties in recovering costs from tenants.

Scrutiny Committee – Resources noted the second quarter financial position of the £7.8m programme of reactive and planned property maintenance and refurbishment for 2011/12, as detailed in the report.

(Report circulated)

To consider the report of the Assistant Director Finance – report circulated

The report of the Assistant Director Finance was submitted.

A Member had given notice of a question with regards to the Revenue Collection/Benefits and private sector leasing and bed and breakfast accommodation.

Members were circulated with a response (appended to minutes) advising that because of the current increased rate of homelessness the Council did not have sufficient private sector leasing to meet these demands. However, the Development Team were seeking to address this and were making a number of promising contacts with landlords of HMOs.

The Scrutiny Committee – Resources noted the report.

(Report circulated)

To consider the report of the Assistant Director Finance – report circulated

The Assistant Director Finance presented the report setting out the current position in respect of the Council’s revised annual Capital Programme which advised Members of the anticipated variations.

He advised that the capital programme for the current financial year was £15,757,420 and it was projected that £1.466 million of the programme would be needed to be carried forward into future years. During the first nine months of this financial year, the Council had spent £7,909,890 of the 2011/12 Capital Programme which equated to 50.2% of the revised Capital Programme.

The Scrutiny Committee – Resources noted the current position in respect of the revised annual Capital Programme and recommended approval by Council of the revised annual Capital Programme.

(Report circulated)

To consider the report of the Assistant Director Finance – report circulated

The Assistant Director Finance presented the report advising Members of the overall projected financial position of the General Fund Revenue Budget and Housing Revenue Account after nine months, for the 2011/12 financial year.

The Service Committee budgets showed a forecast overspend of £101,440 (0.78%) against a revised Service Committee Net Expenditure budget of £13,003,620 and an overall overspend of £22,701 against General Fund Expenditure including investment interest and funds set aside for the repayment of debt.

He advised that Scrutiny Committee - Community had an underspend of £201,300, Scrutiny Committee - Economy an overspend of £20,250 and Scrutiny Committee - Resources an overspend of £279,730.

In answer to a Member’s question, the Assistant Director Finance advised that the

increase in payments to the pension fund administered by Devon County Council were to meet the approved cost of redundancies which had resulted in an overspend of £403,490. These costs could not be capitalised.

Members were updated on the Icelandic Bank position and that the Council had, to date, received £1.7 million back from Glitnir Bank and just under £1 million from Landsbanki. It was anticipated that the Council would get back 100% of the monies invested in Glitnir Bank and 95% from Landsbanki although it could take some years for these monies from Landsbanki to be returned.

The Scrutiny Committee - Resources supported the report and recommended approval by Council of the:-

(1)             General Fund forecast financial position for the 2011/12 financial year;

(2)             HRA forecast financial position for 2011/12 financial year;

(3)             outstanding Sundry Debt position as at December 2011; and

(4)                           the creditors’ payments performance.

(Report circulated)

To consider the report of the Head of Audit – report circulated

The Assistant Director Finance presented the report updating the Committee of the Council’s risk management progress and seeking its recommendation that the Executive approves the updated corporate risk register.

The Scrutiny Committee - Resources:-

(1)        reviewed the updated Corporate Risk Register; and

(2)       approved submission of the annual corporate risk register and the revised   risk management policy by the Executive.

(Report circulated)

To consider the joint report of the Assistant Director Public Realm and Assistant Director Economy – report circulated

The Contract Development Manager presented the report seeking to increase the financial provision previously approved for the necessary reroofing works at St Katherine’s Priory, Polsloe. Photographs of the building were circulated to Members.

In answer to Members’ questions, the Contract Development Manager advised that the Priory was used by Stoke Hill Community Association and when tenders were received it had become apparent that there was a shortfall of some £28,000 in the original “ball park” estimates. He clarified that it was difficult to asses the cost of materials particularly on buildings of such historic importance as the Priory.

The Scrutiny Committee - Resources noted the report and recommended to Executive that:-

(1)        the existing capital budget of £47,000 be carried forward from financial year 2011/12 into 2012/13; and

(2)        additional funding of £28,000 be provided from capital to enable the St Katherine’s Priory reroofing works to be undertaken.

(Report circulated)

To consider the report of the Head of Audit – report circulated

The Assistant Director Finance presented the Internal Audit Plan for 2012/13.

In response to a Member, the Senior Auditor (HK) advised that the external auditors whilst looking at the work undertaken internally do their own independent external checks.

The Scrutiny Committee - Resources noted the Internal Audit Plan for 2012/13

(Report circulated)

To consider the report of the Head of Audit – report circulated

The Assistant Director Finance presented the report outlining the work undertaken by the Internal Audit Unit. The Committee was responsible for considering the work undertaken by Internal Audit as part of the overall probity checking and systems testing of the Council. 

The Senior Auditor (HP) claified that the Council had an auditor who specialised in auditing housing benefit claims.

The Scrutiny Committee - Resources noted the Internal Audit Work for the 2nd Half year of 2011/12.

(Report circulated)