Agenda and minutes

Any apologies for absence that have been received will be noted at this point.

Apologies were received from Cllr O’Kelly & Cllr Johnson.

The committee is requested to approve the minutes of its meeting on 30 October 2023.

The minutes of the meeting on 30 October 2023 were agreed as the correct record.

The chairman will announce any urgent items that due to special circumstances are to be dealt with under the Late Items agenda item.

There were no urgent items.

These are to be made by members of the Corporate Governance and Audit Committee or other Chichester District Council members present in respect of matters on the agenda for this meeting.

There were no declarations of interest.

The procedure for submitting public questions in writing by no later than noon 2 working days before the meetingis available here or from the Democratic Services Officer (whose contact details appear on the front page of this agenda).

No public questions were received.

The Committee is requested to consider the report and its appendix and make the following recommendation:

That the Committee considers the Council’s draft Capital Strategy for 2024-25 to 2028-29 and recommends it to Cabinet for onward approval at Council.

Mrs Belenger introduced the item and briefed Members on the Strategy’s’ objectives and function. In addition to the draft Capital Strategy document, Members were to consider the Treasury Management & Investment Strategies for 2024-25 to 2028-29 also on this meeting’s agenda, as these strategies are all interlinked.

The Chairman was pleased to note that the strategy outlines the importance of developing sustainable changes, across all Council projects in the district.

The Chairman asked Senior Officers whether the strategy in place is adequate to achieve the goal of reducing climate change and to provide further information on why this is the case.

Mrs Belenger advised that the Council has declared a climate emergency and has set up targets to reduce its own impact on the environment. This has been addressed in several ways, such as the decarbonisation of the Westgate Leisure Facility. Freeland Close and Westwood House have also undergone improvements to improve their energy efficiency.

Another key development is the trial of electric refuse freighters. Once this trial has concluded, the Council will be able to determine the most appropriate way to proceed. The local plan also plays an important role in maintaining the environment and areas of natural beauty.

Mrs Belenger added that the Treasury Management document provides further information on best practice and guidance in relation to Environmental, Social and Governance (ESG) considerations for the Council’s cashflow management.

The Capital strategy gives information on the funding of the capital programme and asset replacement programme including the use of external grants and contributions plus the Council’s own resources.

The Chairman noted that the Commercial Services Division now includes electric waste collection vehicles in the fleet.

Mr Ward added that the trial period for electric refuse freighters had highlighted several areas of improvement. There are a range of other vehicles which are due to be replaced, additional information regarding these replacements will be provided at the next Cabinet meeting.

The 10% reduction in carbon omissions per annum target is monitored by the Environment Panel and the Climate Change Action Plan. In order to achieve this, the Council has to reduce its own carbon footprint, whilst also monitoring the public’s carbon footprint and behaviour. Mr Ward highlighted that the Council’s vehicle fleet has the largest impact on the Council’s carbon footprint, therefore addressing this area is of crucial importance. It’s always important for the Council to balance impact against cost, as the Council has finite resources.

The Chairman highlighted the Capital Expenditure table illustrating CIL monies. The Chairman asked Senior Officers whether the data for the total receipt of CIL monies has been published.

Mrs Belenger advised that Mr Davis previously reported on S106 & CIL monies to the Committee, and that this report includes this data.

The Chairman thanked the Senior Officers for answering questions.

RESOLVED:

The Committee is requested to consider the report and its appendix and make the following recommendation:

That the Committee considers the Council’s draft Capital Strategy for 2024-25 to 2028-29 and recommends it to Cabinet for onward  ...  view the full minutes text for item 41.

The Commitete is requested to consider the report and its appendices and make the following resolution and recommendation:

1.    That the Committee considers the Treasury Management Policy Statement, the Treasury Management Strategy Statement, the Investment Strategy, and relevant Indicators for 2024-25; and,

2.    That the documents in 2.1 are recommended to Cabinet and Council for approval.

Mrs Belenger introduced the item and advised Members that the Council is required by the Chartered Institute of Public Finance and Accountancy’s (CIPFA) and by the Department of Levelling up Housing Communities (DLUHC) to approve a Treasury Management and Investment Strategy each year.

As the Council is compliant with the Code of Practice 2021, this has resulted in only a small number of changes to the strategy this year. Mrs Belenger confirmed that the Draft Strategy is fully compliant with the Treasury and Management Code, and the most recent revisions to this code in 2021. The key focus behind these changes was to reinforce the matters of proportionality, risk management and the skills and governance framework necessary, given the ever-increasing complexity of treasury and investment matters.

Mrs Belenger confirmed that the treasury and commercial investment sections of the strategy are relatively unchanged and have been updated in line with the latest position statement. There are no fundamental changes which have altered the general approach taken by the Council in previous years.

Mrs Belenger advised that the document also outlines the requirement for Members to receive training, the most recent training sessions being held during December 2023.

This document, in addition to the Corporate Plan and Capital Investment Strategy, all work in cohesion as part of the Council’s risk management and governance function.

Cllr Ballantyne highlighted the behavioural aspect of governance, stating that it’s important for governments to behave ethically.

Cllr Ballantyne asked what measures are in place to ensure that Members behave ethically and to take this into consideration when making financial decisions.

Mrs Belenger advised that the Constitution plays a key role in setting out the rules, functions and authority by which the Council operates as a public sector organisation. There are also financial regulations within the Constitution, such as s.4.8, which sets out the rules of delegation to Officers and what Chief Officers are allowed to do. In addition to this, each Council’s Chief Finance Officer has specific responsibilities relating to spending plans, as per Section 25 Declaration of the Budget Report regarding Section 25 of the Local Government Act 2003. In this report, Mr Ward is confirming that the spending plans included are robust, affordable and sustainable.

Mrs Belenger added that it’s also important to ensure the appropriate agreements are in place between the Council and external organisations, an example of this would be the s.101 agreement between the Council and South Downs National Park in relation to the Council acting as their agent for planning. These agreements set out clear roles, responsibilities, and procedures for all the relevant parties.

Cllr Ballantyne asked if there is any risk that the Council’s reputation can be damaged due to financial mismanagement, such as is the case with Birmingham Council.

Mrs Belenger advised that every action carries inherent risks, certainly in relation to financial management. As the Council is currently in a surplus cash position, members and staff must be careful to maintain this position and their choice of counterparties.  ...  view the full minutes text for item 42.

The committee is requested to consider the report and its appendix and make the following resolution:

That the Committee notes performance against the audit plan for 2023/24.

Mr James introduced the item and updated Members on the internal audit reports completed since the previous Committee. A position statement has also been issued to confirm the reasons for Audit Plan’s delay, with further details contained in Appendix 1 of the report.

The Chairman asked when the Committee can expect to receive further updates on the Audit Plan.

Mr James advised that the plan is set to conclude in March 2024. If there is a shortfall, this will be reported to the Corporate Governance & Audit Committee in March 2024.

Cllr Chilton asked if Mr James could summarise from the report, what action needs to be taken with regards to disabled services grants.

Mr James advised that disabled service grants are within the Housing Department’s remit, who have informed him that these recommendations are due to record keeping. Mr James stated that the Housing Department have worked hard to ensure that the recommendations being made in the report are sufficient and that the areas of improvement are being addressed. Mr James highlighted that the department has also undergone data retention refresher training and are making good progress with regards to data retention.

RESOLVED:

That the Committee notes performance against the Audit Plan for 2023/24.

The Committee is requested to consider the report and its appendix and make the following resolution:

That the committee notes the Draft - Internal Audit Charter.

Mr James introduced the item and briefed Members on the charter’s function and objectives. Mr James confirmed that the Internal Audit Charter has been updated to account for changes made by the Public Sector Internal Audits Standard (PSIAS).

The Chairman asked what advantage the accreditation offers.

Mr James advised that accreditation demonstrates that the decisions included have been made to the necessary standard, this is the standard by which every authority is measured. PSIAS is making changes. He was confident the Council would be able to make the changes to achieve that standard.

Cllr Chilton asked whether the Internal Audit Charter would be written by PSIAS.

Mr James replied that it would be written by Chichester District Council Officers, not by PSIAS.

Mrs Belenger added that once this document is complete it will be reviewed by another internal audit service manager from an external local authority. If PSIAS believe that there are any shortcomings, feedback will be provided in their review.

Mr James stated that Chichester District Council’s documentation will be reviewed by Rother District Council.

Cllr Ballantyne asked whether there is an external audit procedure in place for Chichester District Council.

Mrs Belenger confirmed that there is and that auditors will provide their feedback to this Committee. The Council has published their draft accounts for 2022-23, however these are yet to be reviewed by auditors. The number of outstanding audits across England stands at approximately 1,000 audits. Mrs Belenger added that whilst EY are awaiting guidance from DLUHC and CIPFA regarding outstanding audits, both organisations are preparing for the 2023-24 audit. Mrs Belenger expects these external audit reviews to be conducted between July and August 2024.

Cllr Ballantyne asked whether the presence of this accreditation can help streamline the internal audit procedure.

Mrs Belenger advised that DLUHC and CIPFA both place reliance on the work conducted by the Internal Audit Team and the accreditations. However, they also review and have access to all of Council’s reports, so these also play an important role in the audit.

RESOLVED:

That the Committee notes the Draft – Internal Audit Charter.

The Committee is requested to note the feedback provided from the members appointed to the Group.

Cllr Ballantyne introduced the item and briefed Members on the progress made by the Annual Budget Scrutiny Group when it met on 11 January 2024. Mrs Belenger provided Members with further information on the Group’s objectives and function.

RESOLVED:

The Committee is requested to note the feedback provided from the Members appointed to the Group.

The committee will consider any late items as follows:

a)          Items added to the agenda papers and made available for public inspection

b)          Items that the chairman has agreed should be taken as a matter of urgency by reason of special circumstances to be reported at the meeting

There were no late items.

The Committee is asked to consider in respect of the following item(s) whether the public, including the press, should be excluded from the meeting on the grounds of exemption under Parts I to 7 of Schedule 12A of the Local Government Act 1972, as indicated against the item and because, in all the circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information. The reports dealt with under this part of the agenda are attached for members of the Corporate Governance & Audit Committee and senior officers only (salmon paper).

There was no requirement to exclude the press or public.