Agenda and minutes

There were no decalrations of interest.

To confirm the minutes of the meeting of the Audit and Procurement Committee held on Monday 18 November 2013.

RESOLVED that the Committee confirm the minutes of the meeting held on 18 November and that the Chair sign them as a true record.

Report of the Executive Director, Resources.

The Committee considered the report of the Executive Director, Resources, setting out the outstanding issues for the Audit and Procurement Committee and the Committee’s Work Programme for the rest of the Municipal Year.

The following items were noted:

·  The Corporate Risk, Safeguarding Awareness Update was deferred to February

·  The final report on the JEEP (Justify Expenditure, Explain Performance) campaign for the February meeting

·  The report on Council Tax Exemptions and Discounts will be considered at the April meeting

·  To consider a report on Heritage Assets prepared by Internal Audit at the February meeting

·  To consider the findings of Scrutiny Board 1 (Finance and Corporate Services) in relation to Agency Workers at the February meeting.

The Committee agreed the above amendments to the Work Programme and cancelled the meeting scheduled for 3 March 2014.

RESOLVED that the outstanding issues and The Work Programme (2013-14), as amended, by agreed by the Committee.

Report of the Executive Director, Resources.

The Committee considered the report of the Executive Director, Resources, on the forecast outturn position for revenue and capital expenditure and the Council’s treasury management activity in the second quarter of 2013/14.

The meeting heard that the overall forecasts were in line with budget estimates but overspends were forecast in 2 Directorates. The largest overspend of £5.6m was forecast for People Directorate due to continuing pressures on Children’s Social Care and Community purchasing within Adult Social Care. The programme of change from the CLYP FSR had now been implemented including a restructured and refocused Early Intervention Service and restructured Family Placement Service, but the activity reduction identified would not be achieved in the short-term at least. The Committee questioned how the reduction would be achieved and requested a more detailed report in this matter.

It was noted that the Place overspend (£1.1m) resulted largely from on-going rent and rates void costs of £0.6m within the commercial portfolio caused by the difficult economic climate.

Reduced capital spending had resulted in a reduction in loan repayments and the capital forecast was also impacted by self-financing loans (e.g. Coombe Abbey).

The Committee also heard that the Council’s new finance software programme, Agresso, would provide on-line updates and earlier reporting.

RESOLVED that the Audit and Procurement Committee endorses the 2013/14 Second Quarter Revenue and Capital Monitoring and Treasury Management Report (to September 2013)

Report of the Executive Director, Resources.

The Committee considered a Briefing  note from the Executive Director, Resources, which provided an update on the Council’s Treasury Management activity.

It was noted that the investment balance was £103.4m at the end of November 2013 (£66.4m at March 2013).

The Investment strategy reflected the current international climate and the risk of banking default – advice to spread deposits in new treasury management strategy.

The Committee requested Quarterly reports on Treasury Management Activity and that the balances shown relate to the same period each year (i.e. compare November with November the previous year, rather than November with March)

RESOLVED that the Audit and Procurement Committee endorse the update on the Council’s Treasury Management activity.

The Committee referred to the briefing note re Purchase Cards sent out since the previous meeting and approved same.

Report of the Executive Director, Resources.

The Committee received a Briefing Note from the Executive Director, Resources on procurement matters.It was noted that the procurements savings to date were on target to achieve £2M.

In response to queries re Agency staff, the Committee heard that the Council was working to manage (reduce) demand. The meeting heard that Scrutiny Board 1 (Finance and Corporate Services) was to consider Agency Working – and it was agreed to send their report to the February meeting of the Committee.

RESOLVED that the Audit and Procurement Committee notes the December monthly progress report on procurement.