Agenda and draft minutes
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Contact: Peter Gray Email: peter.gray@hackney.gov.uk
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APOLOGIES FOR ABSENCE Minutes: 1.1 Apologies for absence were submitted on behalf of Councillor Brian Bell and Councillor Carole Williams for lateness. |
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DECLARATIONS OF INTEREST Minutes: 2.1 There were no apologies for absence. |
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MINUTES OF THE PREVIOUS MEETING Minutes: 3.1 The minutes of the previous meeting were agreed as correct subject to the following amendments:
Minute 8.7 amended to read: Tracy Barnett agreed to liaise with Kim Wright and Michael Scorer for details of the actions taken to address the control weaknesses identified as part of the former Hackney Homes contract reviews and circulate a briefing note to the committee members.
Minutes 8.8: That ‘Action’ be removed.
Minute 9.1 amended to read: Matt Powell introduced the report as set out. The way that risks are captured and presented within the Council’s online software (Covalent) have been overhauled and improved. A new approach is to be adopted to make the direction of travel clearer and a new ‘Headline Scorecard’ will be introduced for each register containing the target risk score as well as the present risk score.’
That ‘Action’ be removed.
Minute 9.2: amended to read ‘Ian Williams said that this reflected….’
Matters Arising
1. Measuring the success of the Olympic Games
The Chair asked if a system existed for measuring the success of the Olympics in terms of the benefits derived by local people. Kim Wright reported that a substantial piece of work had been carried out on this following the Olympics. As this occurred some time ago, a new methodology was required to keep a track of this.
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CERTIFICATION OF GRANTS & RETURNS 2015/16 Additional documents: Minutes: 4.1 Michael Honeysett introduced the report setting out the results of the work carried out by the Council’s external auditors, KPMG, in respect of the 2015/16 grants claims and returns, the details of which were included in the appendix to the report. He reported that a number of errors were identified during the completion of the Housing Subsidy. In response to a question from Councillor Chapman, Michael Honeysett told the Committee that this was not completely unexpected given the size and complexity of the data. There were, however, ongoing discussions with officers on how to resolve this. The Committee emphasised the need to resolve the high error rate and the need for high level audit, producing details of trends. It was recommended that consideration be given to the provision of more information to reduce claimant error. Michael Honeysett confirmed that these matters were picked up at the debrief stage and consideration was being given to testing now.
RESOLVED:
To note the contents of the attached letter from the Council’s external auditors. |
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DIRECTORATE RISK REGISTER - REVIEW OF HOUSING AND NEIGHBOURHOODS Additional documents: Minutes: 5.1 Kim Wright referred the Committee to the Neighbourhoods and Housing Directorate Risk Register. She told the Committee that the focus was ‘on place’ creating and sustaining liveable neighbourhoods Risk had been reviewed on three occasions by the Directorate’s Leadership Team, and reminded Members that the Directorate was a new one and only went “live” on April 1st, 9 months ago. Cllr Gregory asked about current vacancy levels in the directorate, risk in regard to difficulties in recruitment and staff morale. Kim Wright agreed to circulate figures on staff vacancies by the three divisions of Housing, Regeneration and Public Realm. She told the Committee that work was ongoing on the existing recruitment/ retention strategy in relation to posts that were traditionally difficult to recruit to, which included traffic engineers (with a cycle bias), planning and building control officers and that progress was being made on this but that in some instances agency staff were used to ensure posts were filled and services delivered. She stated that Managers were very aware of the need to reduce agency spend and that regular monitoring reports were received as part of the budget process to review spend/numbers of agency staff. Consideration was being given, as part of a corporate wide piece of work, to succession planning, talent initiatives, the introduction of a market supplements and the development of criteria in relation to circumstances in which higher rates of pay would be justified to attract the right kind of staff and making the recruitment process more streamlined. In response to a question from Cllr Moema about managing risk on contracts and sub-contracts Kim Wright told the Committee that Asset management had been restructured and was being recruited to. The project management function was being brought back in house and the Directorate was looking at how big projects were being managed. She told the Committee that the management of these bigger contracts in housing services involved higher risk and work was ongoing to mitigate against these. Further a number of KPIs within housing services were being developed and a cultural change was underway to more closely supervise contracts. Good practice arising from successful, large scale regeneration schemes within the Directorate were also being applied to projects/schemes elsewhere.
5.2 The Chair reiterated the need for a programme that involved cultural change to the front end of the supervision of the Council’s contracts. The Committee emphasised the need for risk data to identify the most important issues, the impact of risk on service provision, both actual and potential together with how risk could be mitigated against.
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TREASURY MANAGEMENT ACTIVITY - UPDATE 2016/17 Minutes: 6.1 Chris Ellmore introduced the half year treasury activity report for 2016/17 containing a detailed update on the treasury activity for the first six months of the financial year and the Q3 treasury activity update for the period October 2016 to December 2016. Chris Ellmore told the Committee that the cash balance had slightly decreased. The average rate of interest received on investments was 0.84 %. He confirmed, in response to a member question, that the reference on page 48 should be ‘365 days’, not years. He told the Committee that different types of more secure investments had been considered. The Chair referred to the change of capital forward funding of £439,611. Michael Honeysett confirmed that the Council had a lot of Capital Schemes that used forward funding and that a peak in investment was expected.
6.2 The Chair emphasised the need to have a clear oversight of capital investment and risk and to consider the most effective ways for members to discuss this and have a regular reporting mechanism.
6.3 In response to a question from Councillor Chapman, Ian Williams confirmed that the Council had much experience of dealing with contactor failure and that there were mechanisms in place to novate to another contractor in such circumstances.
6.4 Councillor Gregory referred to the risk of stress in supporting projects and asked what measures were in place to support those individuals. Ian Williams confirmed that a structure was required in this regard and stressed the need for properly resourced teams. The Chair stated that the Council was moving into a more developmental role with the consequent need to consider how the council supports staff and risk. |
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TREASURY MANAGEMENT STRATEGY 2017/18 Minutes: 7.1 Chris Ellmore introduced the Annual Treasury management Strategy for 2017 /18 for the Audit Committee, setting out the expected treasury operations for 2017/18 financial year. He reported an increase in the Council’s short term cash position as outlined at page 74 of the report.
7.2 Councillor Chapman asked that all approved investments be updated with credit ratings.
7.3 Councillor Sem Moema asked that a training session be arranged for members on financial risks and Ian Williams agreed to action this.
RESOLVED:
To approve the draft Treasury Management Strategy for 2017/18 for the Audit Committee, setting out the expected treasury operations for the 2017/18 financial year. |
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AUDIT AND ANTI FRAUD QUARTERLY PROGRESS REPORT Additional documents: Minutes: 8.1 Tracy Barnett introduced the report outlining the performance of the Audit and Anti-Fraud Service up to the end of December 2016, the areas of work undertaken and information on current developments in Internal Audit and Anti-Fraud as well as statistical information about the work of the investigation team.
RESOLVED: |
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APPOINTMENT OF EXTERNAL AUDITOR Additional documents: Minutes: 9.1 The Committee noted that following the demise of the Audit Commission new arrangements were needed for the appointment of external auditors. The Local Audit and Accountability Act 2014 requires authorities to either opt into in to the appointing person regime or to establish an auditor appointment panel and conduct their own procurement exercise.
RESOLVED: |
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Minutes: 10.1 The Committee noted the Audit Committee work programme for 2016/17. |
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ANY OTHER BUSINESS THAT IN THE OPTION OF OF THE CHAIR IS URGENT Minutes: 11 .1 The Committee considered no other urgent business. |