Agenda, decisions and minutes

To receive any Declarations and advise Members accordingly.

None.

None.

To confirm as a correct record the minutes of the meeting held on 8 June 2022.

That the minutes be approved as a correct record.

The minutes of the meeting held on 8 June 2022 were approved, as moved and seconded by Councillors Linda Thomas and Andrew Parkhurst.

Minute number 12 - The Chair and Vice-Chair had shared the Committee’s concerns about outstanding actions on red assurance reports at a recent meeting with the Chief Executive and Chief Officers where a number of actions had been agreed, including the option to invite the relevant senior officer to attend the Committee to provide explanation where appropriate.  The Chair and Vice-Chair would be invited to meet with the Chief Officer team again to review progress.

RESOLVED:

That the minutes be approved as a correct record.

(a)       That the draft Statement of Accounts 2021/22 (which includes the Annual Governance Statement) be noted; and

(b)       That Members note the opportunity to discuss any aspect of the draft Statement of Accounts with officers or Audit Wales from July to August, prior to the final audited version being brought back to the Committee for final approval in November 2022.

The Corporate Finance Manager and Strategic Finance Manager presented the Draft Statement of Accounts 2021/22 (subject to audit) for information only at this stage.  These comprised the Group accounts and its wholly owned subsidiaries, along with the Annual Governance Statement as reviewed at the previous meeting.  There would again be an open consultation period during the Summer for Members to raise any aspect of the accounts with officers prior to the Committee receiving the final audited version for approval.

A joint presentation covered the following:

·         Purpose and Background of the Accounts

·         Contents and Overview

·         Responsibility for the Accounts

·         Links to Budget Monitoring

·         Changes to the Statement of Accounts for 2021/22

·         Key Issues and Impacts

·         COVID-19 Emergency Grant Funding

·         Headlines - Council Fund (Revenue), Revenue Reserves, Significant Movements, Capital and Housing Revenue Account (HRA)

·         Accounts Governance Group

·         Timeline and Next Steps

It was confirmed that the draft accounts had been completed and submitted within the deadline which had been extended by Welsh Government (WG) in recognition of the impact of the pandemic.  The deadline for submitting the final audited accounts had been extended to 30 November 2022.

Mike Whiteley highlighted a potential risk in the capacity of Audit Wales to meet the Committee’s deadline to approve the final audited accounts at its meeting on 28 September 2022.  Given the extended framework set by WG and the outstanding guidance on asset valuations awaited from the Chartered Institute of Public Finance and Accountancy (CIPFA), he sought the Committee’s view on the final accounts being submitted for approval at the November meeting or that date being brought forward to enable the accounts to be signed off by the Auditor General for Wales within the revised deadline.

When asked by Councillor Glyn Banks about financial contributions to Theatr Clwyd, the Corporate Finance Manager advised that these formed part of Central & Corporate Financing elements of Revenue Budget Monitoring.  Following clarification by the Chief Officer (Governance) on reporting arrangements of external partner organisations, it was agreed that officers would review wording in the final accounts to clearly differentiate arrangements for Theatr Clwyd as opposed to NEW Homes and Newydd which were wholly owned subsidiaries of the Council.  Councillor Banks shared a note in which he suggested a brief explanation under the section on Associated Companies within the document.

In response to questions from Councillor Andrew Parkhurst on the increase in unearmarked reserves, the Corporate Finance Manager provided background on the base level of reserves maintained to protect against unforeseen circumstances, in addition to contingency reserves which were currently at a higher level than usual due to late notification of grants from WG.  He spoke about the importance of protecting reserves to deal with unknown impacts of pay awards and inflationary increases.  On comparing reserve levels with other councils, he referenced the published Audit Wales review of financial sustainability which included comparison of reserve levels across Wales.

In referring to the complexity of Hardship Grant Funding and the regional role of the Council during the pandemic, Councillor Paul  ...  view the full minutes text for item 19.

That the report be noted.

The Corporate Finance Manager presented the supplementary financial information to accompany the draft Statement of Accounts 2021/22 as required by the Notice of Motion approved by the Council in 2013.

In response to a question from Allan Rainford, the Chief Officer (Governance) provided clarification on the process for authorising the appointment of interim temporary staff and consultants.

The Chair asked about the increase in spend for temporary staff and comparison with other councils.  Officers suggested that nationwide recruitment and retention issues could be the main factor.  It was agreed that a response would be sought from the Corporate Manager (People and Organisational Development) and emailed to the Committee.

The recommendation was moved by Councillor Bernie Attridge and seconded by Reverend Brian Harvey.

RESOLVED:

That the report be noted.

(a)       That the draft Treasury Management Annual Report 2021/22 be noted, with no matters to be drawn to the attention of Cabinet in September; and

(b)       That the Treasury Management 2022/23 first quarter update be noted.

The Strategic Finance Manager presented the draft Treasury Management Annual Report 2021/22 for review and recommendation to Cabinet.  The Quarter 1 update on matters relating to the Treasury Management Policy, Strategy and Practices 2022/23 was also shared for information, along with the reporting cycle.  In accordance with the usual process, a training session for all Members would be scheduled for December 2022 prior to approving the Treasury Management Strategy for 2023/24.

An overview was provided of key sections of the Annual Report including the impact of economic issues during the period.  The first quarterly update for 2022/23 provided an update on investments and borrowing activity with no breaches of the Treasury Management Strategy reported.

Allan Rainford welcomed the approach to minimising risk on investments and was provided with information on the investment strategy which prioritised liquidity and security whilst diversifying and spreading risk, in conjunction with advice from Arlingclose.

In response to a question from the Chair, it was explained that other councils across Wales took a similar approach to treasury management with a focus on short-term borrowing.

The recommendations were moved by Councillor Bernie Attridge and seconded by Councillor Linda Thomas.

RESOLVED:

(a)       That the draft Treasury Management Annual Report 2021/22 be noted, with no matters to be drawn to the attention of Cabinet in September; and

(b)       That the Treasury Management 2022/23 first quarter update be noted.

None.