Agenda and minutes

1.1  Apologises for absence were submitted on behalf of Councillors Bell and Gregory.

2.1  There were no declarations of interests.

3.1  The minutes of the previous meeting were agreed as a correct record.

4.1  Bruce Devile introduced the report providing an updated set of reports that were selected to be reviewed by the Committee on a regular basis as part of the Committee’s overview of the Council’s performance. The report provided an updated set of key performance indicators along with an update on risk management with a scorecard. The report also set out the latest capital programme monitoring with some enhanced analysis of the variances to the Budget. 

4.2  Bruce Devile told the Committee that the data in the report had not changed significantly since the previous meeting. He confirmed that numbers in temporary accommodation remained high. 

4.3  The Chair expressed concern that sickness levels continued to rise.  Dan Paul would report on this matter to the next meeting.

    Action: Dan Paul

4.4  Ajman Ali told the Committee that work was ongoing to ensure that rent was paid on time and that the maximum benefits was received. Staff were very aware of the importance of improvement in this area. Increased resources would be put into this in the new financial year. Measures included changes to direct debit arrangements. Councillor Maxwell spoke of the stress attached o not being able to pay rent. Ajman Ali told the Committee that patch officers were available to provide support in cases of difficulty. He would look into this matter in more detail.

  Action: Ajman Ali

 4.5  The Board expressed concern that as part of the ‘pay your rent campaign’, tenants were told not to spend the money on presents and that this could be considered paternalistic.

4.6  Ian Williams told the committee that Hackney’s performance in relation to claims was on a par with Boroughs across London.  Extensive work was being carried out on the council tax and one corporate debt approach.  Councillor Rennison would be arranging a workshop with the Audit Committee on this.

4.7  The Chair expressed concern at the high percentage of open planning enforcement cases less than 4 years old.  Ajman Ali agreed to report back on this matter.

  Action: Ajman Ali

4.8  In relation the overall financial performance report Michael Honeysett reported that a variance £42,784 was to be re-profiled. The Chair high light that half of the budge was out in the first six months and considered that this was a sign that profiling was not was not going far enough.  Michael Honeysett agreed that there was a need for more accurate profiling and that much related to in stability around contractors. Ian Williams highlighted that it is necessary to defer work if the contractor is unable to carry out the work. It was acknowledged that there was a need for improvement and work was on going on how the Council delivers major schemes and cash flow forecasting.

4.9  Ajman Ali told the Committee that in relation to asset management a Capital Monitoring Board was now in place for 12 months, receiving regular reports on appropriate schemes. The Chair referred to the current large underspend and asked if the systems in  ...  view the full minutes text for item 4.

6. 1  Ajman Ali introduced the report updating members on the current Corporate Risk Register of the Council are identified as at January 2020. The report also identified how risks within the Council are identified and managed throughout the financial year and the approach to embedding risk management. There had been an increase in cost in housing regeneration and a dip in property values. Brexit had had an impact on this. Fire safety continued to be a challenge.

6.2  in relation to the regeneration project, Councillor Potter asked if the tenure mix would change. Ajman Ali confirmed that there was a risk of this and stressed the need for more affordable housing. Councillor Maxwell stressed the need for as much social policy as possible.

6.3  The Chair stressed the need for targets and plans with deliverables in relation to climate change. It was noted that much work was being carried out on this in gathering data for the new Energy Company. An action plan would be developed with a gas strategy and on how to improve energy efficiency. Ian Williams told the Committee that the Sustainability Board was carrying out work on this and would produce a strategy. It would be necessary to identify the resources necessary and to be realistic around costs. Ian Williams suggested that Councillor Burke attend the Board meeting to update on this.

6.4  Councillor Potter asked how skills would be accessed to ensure that the new system works. Ajman Ali told the Committee that it would be necessary for the engineers to be equipped to carry out the job effectively with training being provided. In response to the Chair, Ajman Ali told the Committee that there was much improvement in how the Council manages assets. Project Manages meet with contractors and at present there no performance issues with existing contractors. There would be a need to build in mechanisms for new contracts to have appropriate KPIs.

6.5  The Chair highlighted the fact that the voluntary redundancy scheme may be a risk.  Deirdre Worrell told the Committee that the scheme would result in personnel changes and the potential impact of the burden of work falling on those remaining was seen as a risk.

 Ajman Ali told the Committee that is would be necessary to the residents of the Borough with appropriate information.

  Action: Ian Williams

6.1 Ian Williams introduced the report updating members on the current Corporate Risk Register of the Council as at January 2020. It also identified how risks within the Council are identified and manage throughout the financial year and the approach to embedding risk management.  Risks around universal credit, unregistered schools (being registered by the Hackney Learning Trust) and climate change had been escalated to this iteration of the corporate register. Although there was more clarity on Brexit, this remained as a risk with the continuing concern of no deal. There was a need to ensure that the Council’s plans were refreshed, feeding into cross London groups on this.

6.2  The Chair referred to SEND as a high risk. Ian Williams told the Committee that additional resources had been received to support SEND spending but this did not address the shortfall. It was expected that further funding will be made available to the Council.

6.3 Michael Honeysett told the Committee that the issuing of pension statements this year was in the high nineties and it had not been necessary to report to the regulator. Work was ongoing on bringing in automatic uploading to the pensions system.

6.4  In response to a question from Councillor Potter Matt Powell confirmed that the nature of risk 27 ‘Impact of the government reforms on education service delivery’, had not changed but that it was a sensitive area.

6.5  The Chair asked for progress on risk 18 ‘Workforce and recruitment’ and the need for a more agile workforce. Ian Williams told the Committee that this formed part of the workforce strategy. He referred to work around making council roles more widely accessible attracting people from all backgrounds.  There was a need to ensure that staff were on board with the council’s values.

The chair asked that Dan Paul attend the next meeting to speak about the direction of travel of the workforce strategy and the overall approach.

   Action: Dan Paul

6.6   Councillor Odze

7.1  Pradeep Waddon introduced the report introducing the draft Treasury Management Strategy for 2020/21 for the Audit Committee, setting out the expected treasury operations for the 2020/21 financial year.

RESOLVED:

To approve the draft treasury management strategy 2020/21 to 2022/23 for submission to Council, subject to Capital programme that is being finalised ahead of budget setting, with delegated powers to the Group Director of Finance and Resources to approve the final Treasury Management Strategy for submission to Council.

8.1  Pradeep Waddon introduced the report that covered both the half year treasury activity report for 2019/20 and the Q3 treasury activity update for the period October 2019 to December 2019.  Pradeep Waddon told the Committee that officers were in constant contact with advisors on this while monitoring any changes in the market.

RESOLVED:

To note the treasury management activity reports at appendices 1 and 2.

12.1  Michael Sheffield introduced the report on the performance of the Audit & Anti-Fraud Service, the areas of work undertaken, and information on current developments in Internal Audit and Anti-Frauds as well as statistical information about the work of the investigation teams. Michael Sheffield reported that:

·  Estimated savings arising from enquiries was 1,795,000

·  In relation to the 2019/20 Audit Plan, 47 assignments had been completed or in progress; this was 51 % of the original plan (there had been delay in appointing the IT analysis. The appointment was now made)

·  As at 31 December 2019 a total of 47 internal audit reviews had been started in the 2018/19 Plan, 16 had been finalised and a further 2 were at the draft report stage

·  In relation to Internal audit’s performance for 2019/20 against key indicators the percentage of significant recommendations made which were agreed stood at 100%

·  % of audits completed in the reporting period resulted in a ‘Limited’ or ‘No assurance’ rating, compared to  in the previous year

·  Of the 320 ‘medium’ priority recommendations followed,  % were assessed as implemented as  % partially implemented

·  During the period from October to December 2019 a total of 25 tenancies had been recovered by the TFT compared to 64 in the previous year

·  12 Right to Buy applications were withdrawn or cancelled in 2019/20 to date, following investigation

·  That issues around access to the pound had been resolved

·  An investigation into a sub-letting case had raised £68000

12.2  In response to a question from Councillor Spence regarding adult services public health Michael Sheffield told the Committee that there was a procedure in place to support clients in home care services. There was full and regular monitoring with key stakeholders and monitoring of KPIs. The Chair asked about progress on the appointment of a Head of internal audit and corporate risk management. Michael Sheffield confirmed that this position had been appointed to on an interim basis only.  Ian Williams confirmed to the Chair that there were adequate staffing resources at present which would work for two to three years. He told the Committee about the Council’s initiative in relation to blind recruitment

RESOLVED:

To note the Audit & Anti Fraud’s progress and performance to 31 December 2019

10.1  The report was withdrawn as it had been published in error.