Venue: Meeting Room 9 - Level 3, Gun Wharf, Dock Road, Chatham ME4 4TR
Contact: Michael Turner, Democratic Services Officer
No. | Item | |
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Apologies for absence Minutes: There were none. |
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To approve the record of the meeting held on 29 July 2019. Minutes: The record of the meeting of the Committee held on 29 July 2019 was agreed and signed by the Chairman as correct. |
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Urgent matters by reason of special circumstances The Chairman will announce any late items which do not appear on the main agenda but which he/she has agreed should be considered by reason of special circumstances to be specified in the report. Minutes: There were none. |
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Disclosable Pecuniary Interests and Other Significant Interests PDF 211 KB Members are invited to disclose any Disclosable Pecuniary Interests or Other Significant Interests in accordance with the Member Code of Conduct. Guidance on this is set out in agenda item 4.
Minutes: Disclosable pecuniary interests
There were none.
Other significant interests (OSIs)
There were none.
Other interests
There were none. |
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Annual Audit Letter 2018/19 PDF 144 KB This report and attachment reflects the work carried out by Grant Thornton, the Council’s external auditors, in respect of the 2018/19 financial year. Additional documents: Minutes: Discussion:
Decision:
The Committee agreed to note the contents of the Annual Audit Letter. |
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Audit and Counter Fraud Update to end of August 2019 PDF 64 KB This report provides Members with an update on the work, outputs and performance of the Audit & Counter Fraud Team for the period 1 April to 31 August 2019. Additional documents: Minutes: Discussion:
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Treasury Management Strategy Mid-year Review Report 2019/20 PDF 367 KB This report represents the mid-year review of the Treasury Management Strategy 2019/20. Minutes: Discussion:
Members considered a report regarding the mid-year review of the Treasury Management Strategy 2019/20.
The following typographical errors were noted:
· Paragraph 4.3.2 – the reference to 2018/19 should read 2019/20. · Paragraph 5.2 – the reference to 3 September 2018 should read 3 September 2019. · Paragraph 6.7 – the reference to April 3022 should read April 2022.
A Member welcomed the significant reduction in short term borrowing over the last 12 months, which had reduced from £55m to £14m.
In response to a question about the possibility of rescheduling the Council’s LOBO’s (Lender Option Borrower Option) loans, officers advised that changes in Public Works Loan Board rules meant it was almost impossible to re-pay loans early without incurring a loss. As LOBO rates had fallen the Council would also have to pay a significant early repayment fee. Although some LOBO lender had offered other councils deals to reschedule these loans, this had not yet happened in Medway.
Referring to the fact that Medway’s future investment performance would be lower in the future as the last of a number of older fixed rate loans with higher interest rates was repaid in August 2019, Members were advised, in response to a question, that this had not altered the Council’s appetite for risk. The Council had invested £23m in property funds which demonstrated the Council was not completely risk averse, although the opportunity to invest further was limited. In addition, once the statutory override ended, likely to be within five years, changes in the market value of these investments would have to be reflected in the revenue accounts and if the value fell this would leave a shortfall in the Council’s finances.
Decision:
The Committee agreed to note the report.
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Risk Strategy Annual Review PDF 144 KB This report presents the annual review of the Risk Strategy. Additional documents: Minutes: Discussion:
Members considered a report regarding the annual review of the Risk Strategy.
In response to whether the new Risk Strategy meant the Council’s approach to risk was now more in line with that of other councils, the Head of Finance Strategy confirmed that was the case. The Council’s involvement in a regional risk benchmarking group confirmed the Council was in line with best practice in terms of both the Risk Strategy and the contents of the strategic risk register. The risk register may in the future also include opportunities and was now reported alongside council plan performance reports. Regarding a suggestion that the Committee should also consider the strategic risk register, officers advised that the Committee’s remit was to ensure the risk framework was in place and the management of risk was a matter for Cabinet, with the Business Support O&S Committee scrutinising the register. A Member expressed the view that managers should be encouraged to identify potential external risks that could impact on the Council.
Decision:
The Committee agreed to note the revised Risk Management Strategy as setting out the Council’s approach to risk management.
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This report advises Members about the nature of concerns raised, between September 2018 and September 2019, under the Council’s Whistleblowing, Anti- Bribery and Anti-Money Laundering Policies. Minutes: Discussion:
Members considered a report which set out the nature of concerns raised, between September 2018 and September 2019, under the Council’s Whistleblowing, Anti-Bribery and Anti-Money Laundering Policies.
In response to a question about employee awareness of these polices and how accessible they were, the Chief Legal Officer advised that the policies were easy to find on the intranet and the latter was well used by staff. However, he would look at what more could be done to raise awareness and whether a dedicated telephone number could be offered for staff to raise concerns.
In terms of third parties and contractors, the Chief Legal Officer undertook to check if the contracts specified there had to be a whistleblowing policy.
The Chief Legal Officer commented that money laundering was less likely to occur in a Council because of the nature of the transactions in local authorities. The area at most risk of bribery was in procurement but he assured Members that the Council had robust procurement processes in place with high levels of transparency. He confirmed any concerns raised under these policies would be looked at as there were no materiality thresholds.
The Chairman stated he wished for there to be a constructive discussion on ethics at the next meeting to see how ethics was managed in the Council and what could be done to learn from any problems.
Decision:
The Committee agreed to note the report. |