Agenda and minutes

The Committee is asked to approve, as a correct record, the minutes of the meeting held on 27 September 2021 (attached)

The minutes were approved as a correct record.

Members of the Committee are invited to declare interests in any agenda items.

There were no declarations of interest.

Report of the Strategic Director, Resources and Digital

The Committee received a report reviewing Treasury Management performance for the six months to 30 September 2021, covering investments and borrowing. This is consistent with approved performance management arrangements.

The report covered:-

·        Treasury Management Strategy Statement

·        Investment Performance

·        The Economy

·        Rate of Return

·        Borrowing

·        PWLB Government Borrowing

The projected net impact of investment and borrowing activity on the revenue budget in 2021/22 is an underspend of £1.012m, comprising £0.793m General Fund and £0.219m HRA.

Investment returns are likely to remain relatively low during 2021/22 then beyond and interest rates are expected to be below long-term borrowing rates therefore value for money considerations indicate that best value can be obtained by delaying new external borrowing and by using interna cash balances to finance new capital expenditure in the short term (this is referred to as internal borrowing).

The current approach of borrowing internally provides benefits in terms of reduced credit risk, as the Council has less cash invested than if it had gone to the markets and borrowed externally. This means that cash balances and investment returns, remain historically low resulting in reduced levels of income, which at present is outweighed by the savings achieved from avoiding external borrowing. The additional element of interest rate risk will continue to be monitored.

Report of the Strategic Director, Resources and Digital

The Committee received a report providing an update on Corporate Risk Management developments during the period 1 July 2021 to 30 September 2021 in line with the principles of good corporate governance.

The report included updates on:

·        Strategic Risk Management

·        Operational Risk Management

·        Business Continuity Management

·        Corporate Risk and Resilience Group

The Committee may wish to exclude the press and public from the meeting during consideration of the exempt agenda in accordance with paragraphs 7 of Schedule 12A to the Local Government Act 1972.

Report of the Strategic Director, Resources and Digital

The Committee received a report which provided an update on activity undertaken since 1 April 2021 by the Internal Audit and Risk Service in relation to the work of the Corporate Fraud Team. It also updated on action taken to raise awareness of the risk of fraud and corruption, details the cases of potential fraud and irregularity, updates on any proactive counter fraud work and progress of the Council’s participation in National Fraud Initiative (NFI).

Report of the Strategic Director, Resources and Digital

The Committee received a report outlining progress made by the Internal Audit & Risk Service against the audit plan for the financial year 2021/22 and summaries the main findings from audit activity throughout the period 1 July 2021 to 30 September 2021.

A total of 13 assignments were completed during the period, with details attached for information at Appendix A.

From the reviews carried out to 30 September 2021 audit work was found to be complying with PSIAS and the Audit Manual.

The Committee were advised that the year to date performance information was as follows:-

·        100% of audits were completed within budgeted time against a target of 90%

·        Productive or chargeable time was recorded at 68% of overall time against as annual target of 73% of overall time.

·        The average score of the customer satisfaction questionnaires returned is 3.9 out of 4, against a target of 3.4 (85%)

·        The target for implementation of audit recommendations is 100% for high priority recommendations and 90% for medium priority recommendations. The current rate of implementation of all recommendations is 89% with 100% of all medium priority and 100% of all high priority recommendations having being implemented. Further information was provided to Committee at Appendix C in the main report.

RESOLVED – That the information be noted.

The next meeting will take place on Monday 31 January 2022 at 10.00 am

The next meeting will take place on Monday 31 January 2022 at 10.00 am