Corporate Governance, Audit and Standards Committee - Monday, 25th January, 2016 7.00 pm - Agenda and minutes

To confirm the Minutes of the Meeting held on 30th November, 2015 (copy attached).

The Minutes of the Meeting held on 30th November, 2015 were approved and signed by the Chairman.

The Chief Executive to report on the outcome of the selection process for the Mayor-Elect and Deputy Mayor-Elect 2016/17. A copy of the criteria for the selection process is attached for information. The Committee will be asked to make a recommendation to the Council.

The Chief Executive reported on the outcome of the selection process for the Mayor-Elect and the Deputy Mayor-Elect for 2016/17. The Chief Executive had contacted the appropriate Members on the seniority list and reported that Cr. Sophia Choudhary was the next Member able to accept the nomination for Deputy Mayor. Through normal progression, Cr. Jacqui Vosper, currently Deputy Mayor, would progress to the position of Mayor for 2016/17.

The Committee RECOMMENDED TO THE COUNCIL that:

(i)         Cllr Jacqueline Mary Vosper be appointed as Mayor-Elect for the 2016/17 Municipal Year; and

(ii)        Cllr Sophia Choudhary be appointed as Deputy Mayor-Elect for the 2016/17 Municipal Year.

NOTE: Cllr Jacqui Vosper declared a prejudicial interest relating to the discussion on the nomination for Mayor-Elect and left the meeting during the discussion and voting thereon.

To receive the Head of Financial Services’ Report No. FIN1601 (copy attached) which introduces the Certification of Claims and Returns Annual Report 2014/15 prepared by the Council’s external auditors, Ernst & Young. Mr. Alan Gregory, Assistant Manager, Assurance - Government and Public Sector, Ernst & Young LLP will be in attendance at the meeting.

The Chairman welcomed to the meeting Mr. Alan Gregory and Mr. Adrian Balmer from Ernst and Young, who were attending the meeting to present the Certification of Claims and Returns Annual Report 2014/15, which had been appended to the Head of Financial Services’ Report No. FIN1601.

The Certification of Claims and Returns Annual Report 2014/15 summarised the results of the certification work on the Council’s major grant claim under the Housing Benefits Subsidy Scheme for the financial year 2014/15. The Report described the work carried out and the issues reported. It was noted that the Department for Work and Pensions would not be amending the Council’s subsidy claim and would be awarding the full value of the claim (£37,307,517).

It was noted that, although the errors that had been reported by the audit had not resulted in any financial loss to the Council, the Housing Benefits team had taken steps to ensure that these errors would not be repeated in the future. The team had undertaken to carry out monthly checks on a sample of wage claim calculations, per assessor, to ensure that calculations were correct. These steps addressed the recommendations of the auditor, set out in section 4 of the Certification of Claims and Returns Annual Report.

Mr. Gregory paid testament to the quality of the work carried out by the Council.

RESOLVED: That the Head of Financial Services’ Report No. FIN1601 and the Certification of Claims and Returns Annual Report 2014/15 be noted.

To consider the Head of Financial Services’ Report No. FIN1602 (copy to follow), which sets out the Treasury Management Strategy 2016/17, Prudential Indicators for Capital Finance and the Minimum Revenue Provision Statement for submission to the Council on 25th February, 2016.

The Committee considered the Head of Financial Services’ Report No. FIN1602 which set out the Treasury Management Strategy for 2016/17, the Annual Investment Strategy, Prudential Indicators for Capital Finance, Minimum Revenue Provision Statement and revisions to treasury management practices.

The purpose of the treasury management operation was to that cash flow was adequately planned, with cash being available when it was needed. Surplus monies were invested in counterparties or instruments commensurate with the Council’s low risk approach, pursuing optimum performance while ensuring that security of the investment was considered ahead of investment return. The Council was required to operate a balanced budget, which broadly meant that cash raised during the year would meet cash expenditure.

The second main function of the treasury management service was the funding of the Council’s capital plans (i.e. the longer-term cash flow planning to ensure that the Council could meet its capital spending obligations). The purpose of Prudential Indicators was to set a framework for affordable, prudent and sustainable capital investment. The Report set out the Treasury Management Strategy and the Council’s Prudential Indicators for 2016/17 to 2018/19 and fulfilled key legislative requirements and included the Annual Borrowing Strategy, Annual Investment Strategy and the Minimum Revenue Provision Statement. It was noted that these policies and parameters provided an approved framework within which officers undertook the day-to-day capital and treasury activities.

The Committee was advised that the Council’s in-house team continued to explore a variety of investment options. These included expanding the Council’s portfolio of longer term investments and investing with Housing Associations. The latest advice from Arlingclose indicated that the Council should continue to diversify investment risk, spreading smaller amounts over an increasing number of counterparties. The Report also explored the potential for borrowing to fund future capital expenditure, dependent on the timing and extent of future investment plans, including setting limits on borrowing and prudential indicators for capital financing.

RESOLVED: That the Cabinet be recommended to approve

(i)         the Treasury Management Strategy, Annual Borrowing Strategy and Annual Investment Strategy, as set out Appendix A to the Head of Financial Services’ Report No. FIN1601;

(ii)        the Prudential Indicators, set out in Appendix B; and

(iii)       the Minimum Revenue Provision Statement, set out in Appendix C.

To consider the Head of Environmental Health and Housing’s Report No. EHH1601 (copy attached), which outlines proposals for public consultation on a cab-sharing scheme to run for the duration of the Farnborough International Airshow 2016 (FIA16).

The Committee considered the Head of Environmental Health and Housing’s Report No. EHH1601, which outlined proposals for a cab-sharing scheme to run for the duration of the Farnborough International Airshow 2016.

The Committee was informed that, following discussions with the taxi trade, requests from at least 10% of the taxi trade had been received for the Council to implement a cab-sharing scheme for the duration of the trade and public days of the Airshow 2016 (11th – 17th July 2016) to be run on a similar basis to that operated during the 2014 Airshow.

It was noted that the procedure to be followed in making a cab-sharing scheme was laid down in the Taxis (Schemes for Hire at Separate Fares) Regulations, 1986. These regulations required the authority to obtain the consent of the highway authority and/or the landowner in respect of any place that was not on the highway. The authority was also required to consult the local Chief Constable of Police and local County Council, together with local taxi owners and/or their representatives. It was also required to publish the proposed scheme and invite public representations and for such representations to be considered as may be appropriate before implementing its preferred arrangements.

The taxi trade had requested that a scheme should be established for return journeys between the official Airshow rank and Farnborough mainline station and the Report set out the proposed arrangements in respect of authorised places for taxi ranks, signs on vehicles and authorised places, exclusive and shared compellability, fares and marshalling.

Members were advised that the Highways Authority and those with relevant land interests had confirmed their approval of the proposals. However, to date, statutory consultees had not made any comments. It was felt that a cab-share scheme offered the opportunity for a ‘win-win’ situation for taxi drivers, proprietors and passengers alike. Such a scheme provided an opportunity to improve public transport options at reduced costs to the customer whilst permitting the taxi trade to benefit and widen its market at a time of peak demand. The proposed scheme was relatively simple and straightforward and generally built upon and complimented the traffic arrangements used to accommodate the Airshow.

The Committee was also advised that, while the Council might incur some limited administrative costs in terms of necessary consultations and provision of appropriate signage, there were no significant financial implications associated with the proposed cab-share scheme. All costs could be borne by existing budgets.

RESOLVED: That the proposed cab share scheme, as set out in the Head of Environmental Health and Housing’s Report No. EHH1601, be approved for public consultation and local advertisement as outlined.

To consider the Head of Strategy, Engagement and Organisational Development’s Report No. SEOD1601 (copy attached), which seeks approval of the Pay Policy Statement for recommendation to the Council for adoption.

The Committee considered the Head of Strategy, Engagement and Organisational Development’s Report No. SEOD160, the purpose of which was to set out the framework within which pay was determined in Rushmoor and to provide an analysis comparing the remuneration of the Chief Executive with others employed by the Council.

The Committee was advised that the comparisons looked at the ratio between the Chief Executive and the full-time equivalent salary for a permanent member of staff employed in the lowest grade within the Council’s structure. It was noted that the ratio was 7.5:1 which was slightly lower than when the exercise had been undertaken the previous year when it had been 7.6:1. A series of other ratios were contained within the report. Analysis had been undertaken by using the mean and median salaries for all staff. An alternative exercise had also been undertaken which excluded Directors and Heads of Service from the calculation and again there had been no significant change in the ratios over the previous twelve months.

The Committee RECOMMENDED TO THE COUNCIL that the Pay Policy Statement 2016/17 be approved for adoption.