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Governance & Standards Committee Minutes    

Date: Wednesday 23 June 2021       Time: 06:00 PM       Location: Civic Centre - on Facebook       Contact: mpemberton@Mansfield.gov.uk

Attendance Details

PresentNames
Present:Councillor Brian Lohan, Mrs Meggie Morgan, Councillor Ann Norman, Councillor Philip Shields, Councillor Andy Sissons, Councillor John Smart, Councillor David M Smith, Councillor Roger Sutcliffe
In AttendanceAttendees
In Attendance:E. Cable, D. Edwards, S. Hall, M. Pemberton and A. Pullen
ItemDescriptionBackground InformationDecision
 APOLOGIES FOR ABSENCEAPOLOGIES FOR ABSENCE

Councillor Fretwell and Tristram
 
21/29DECLARATIONS OF INTERESTDECLARATIONS OF INTEREST

There were no declarations of interest
 
21/30MINUTES OF THE LAST MEETINGMINUTES OF THE LAST MEETING

It was proposed by Councillor Lohan and seconded by Councillor Shields that the minutes of the Committee held on 2 June 2021, be confirmed as a correct record. On the motion being put to the vote the Chair confirmed that the minutes had been approved unanimously.

Minutes
RESOLVED - That the minutes be confirmed as a correct record.
21/31TREASURY MANAGEMENT OUT TURN REPORT– 2020/2021TREASURY MANAGEMENT OUT TURN REPORT– 2020/2021

The Committee received a report which summarised the transactions undertaken during the 2020/21 financial year as part of the Council's Treasury Management function.

Members were reminded that local authorities were required to approve an annual Treasury Management Strategy before the start of each new financial year and that the Council had approved its Treasury Management Strategy for 2020/21 on 3 March 2020.

It was reported that during the 2020/21 financial year, the Council had taken out no new loans and therefore the Council’s total borrowing stood at £90.7million at the 31 March 2021. The majority of the loan debt was with the Public Works Loan Board which offered preferential interest rates to local authorities.

At 31 March 2021, the Council had £27.9million invested in financial institutions, the majority of which was held in the Debt Management Office, a government backed agency, on a short term basis to meet planned expenditure.

The Council received an average rate of return of 0.22% against an average base rate of 0.10% for the 2020/21 financial year, as a result of the Bank of England Monetary Policy Committee decreasing the bank rate by 0.65% in March 2020. Therefore, longer term investments achieved lower rates. It was also anticipated that the base rate would remain at 0.10% until March 2024.

The Committee was reminded that the Council when investing its funds in banks and building societies, set high credit criteria which reduced the risks of the Council not getting its investments back due to default. The security and liquidity of the Council’s money was the main priority when investing public money, which meant that the rate of return to the authority was often lower than what could be achieved in a more ‘risky’ financial institution where the risk of default was higher. During the 2020/21 financial year the Council did not invest with any financial institutions which fell below the minimum level approved by the Council when it sets its Treasury Management Strategy.

It was proposed by Councillor Lohan and seconded by Councillor Sissons that the report be referred to Council for noting in line with the 2009 CIPFA . On the motion being put to the vote the Chair announced that the motion had been carried unanimously.

Report of the Head of Finance
RECOMMENDATION TO COUNCIL - That the report be noted
21/32CORPORATE ASSURANCE MANAGER'S ANNUAL REPORT FOR 2020/2021CORPORATE ASSURANCE MANAGER'S ANNUAL REPORT FOR 2020/2021

Members were advised that despite the Covid-19 pandemic there was still a need for the Corporate Assurance Manager to comply with the Public Sector Internal Audit Statements and to deliver an opinion in respect of the Council's risk management, internal control and overarching governance.

In response for the need for the Council to react effectively to the pandemic, Internal Audit activity in respect of undertaking system reviews was suspended in April 2020, other than the planned end of year financial checks and the benefit subsidy claim validation.

The work undertaken by Internal Audit during 2020/21 was submitted for the Committee's information, together with the reasons for any significant variance.

With regard to work undertaken on the Council's Procurement Strategy, the Committee was advised that the amount of documentation involved in the procurement process, had been reduced, in order to encourage greater involvement by small businesses in the procurement of council contracts. It was also intended to hold workshops with businesses and East Midlands Commerce on the procurement process, to encourage greater involvement.

Members were also advised of the findings of planned internal reviews which had all received an excellent assurance level and that no issues had been raised. In addition, the progress with implementing the recommendations arising out of a special investigation into Town Centre Income Discrepancies would be reported to the next meeting of the Committee. Members were reminded that no fraudulent activities had been identified.

Members were advised that the Corporate Assurance Manager had concluded that the Council had in place adequate and effective governance arrangements, risk and opportunity management arrangements and internal control processes.

It was proposed by Councillor Lohan and seconded by Councillor Sissons that the recommendations be approved. On the motion being put to the vote, the Chair announced that the motion had been carried unanimously.

Report of Corporate Assurance Manager
RESOLVED -

(i) That the work undertaken by Internal Audit and the real time proactive assurances received during 2020/21 be noted.

(ii) That the performance indicators to be adopted by Internal Audit for 2021/22 be approved.

(iii) That the outcomes from the Quality Assurance and Improvement Programme be noted.
21/33CORPORATE GOVERNANCE REVIEW AND DRAFT ANNUAL GOVERNANCE STATEMENT - 2020 -2021 CORPORATE GOVERNANCE REVIEW AND DRAFT ANNUAL GOVERNANCE STATEMENT - 2020 -2021

The Committee was advised that the Corporate Assurance Manager had reviewed the Council's compliance with its Local Code of Corporate Governance. Members were reminded that the Code complied with guidance produced jointly by the Chartered Institute of Public Finance and Accountancy and the Society of Local Authority Chief Executives.

The Committee was advised that a review against the Code had indicated a high level of compliance, with 86 of the 91 requirements having been achieved. Details of the compliance and the evidence to support the achievement were submitted for the Committee's information.

Particular reference was made for the need for elected members to complete and return the Related Party Transactions form by the deadline, which had been previously mentioned by the External Auditors. Members were advised that there were currently approximately eight forms still outstanding.

Members were also reminded of the requirement for local authorities to prepare an Annual Governance Statement, in order to publicly report on the extent of its compliance with its own Code. A draft Statement was submitted to the Committee for scrutiny which detailed changes to the Council's governance arrangements in response to the Covid-19 pandemic.

It was proposed by Councillor Lohan and seconded by Councillor Clay that the recommendations be approved.

On the motion being put to the vote, the Chair announced that the motion had been approved unanimously.

Report of Head of Law and Governance

Appendix 1
RESOLVED -

(i) That the assessment of the Council's level of compliance with its Code of Conduct of Corporate governance as high be accepted.

(ii) That progress with implementation of the areas for improvement identified from this corporate governance review be monitored by the Governance and Standards Committee.

(iii) That the draft annual Governance Statement be subject to scrutiny by this Committee prior to its approval.
21/34INTERNAL AUDIT PLAN PROGRESS UPDATE & PROPOSED PLAN FOR 2ND QUARTER OF 2021/2022 INTERNAL AUDIT PLAN PROGRESS UPDATE & PROPOSED PLAN FOR 2ND QUARTER OF 2021/2022

The Corporate Assurance Manager submitted a report which outlined the progress made in delivering the Internal Audit Plan for the period 1 April to 30 June 2021. The report outlined significant variances against the approved Internal Audit Plan, together with actions to address any delivery shortfalls.

In addition, the proposed Plan for the period 1 July to 30 September 2021 was submitted for approval. The plan identified that the majority of audit resources would be used to validate the latest tranche of Covid 19 business grants and the Benefit Subsidy Claim.

Members were also that the Head of Law and Governance had recently approved the Counter Fraud and Corruption Plan.

It was proposed by Councillor Lohan and seconded by Councillor Sissons that the recommendations be approved. On the motion being put to the vote, that Chair announced that the motion had been carried unanimously.

Report of Corporate Assurance Manager
RESOLVED -

(i) That the position statement detailing the progress made in achieving the Internal Audit Plan for the period 1 April to 30 June 2021 be noted.

(ii) That the proposed Internal Audit Plan for the period 1 July to 30 September 2021 be approved.
Published 12/07/2021 16:26:41