Agenda item

The annual report of the Chief Officer Financial Services sets out the standing arrangements for financial management and treasury management within the Council and provides evidence of compliance over the reporting period from November 2021 to October 2022.

The annual report of the Chief Officer Financial Services set out the standing arrangements for financial management and treasury management within the Council and provided evidence of compliance over the reporting period from November 2021 to October 2022.

In attendance for this item were:

·  Richard Ellis – Deputy Chief Officer Financial Services

·  Mary Hasnip – Chief Finance Officer

The report fulfilled the requirement in the Chief Finance Officer’s protocol, (Section 5k of the Council’s constitution), that the Chief Finance Officer will report to the Corporate Governance and Audit Committee annually to confirm that the arrangements set out in the protocol had been complied with and set out proposals for amendments in the light of any issues that had arisen during the year.

Members were informed that this report also incorporated the Treasury Management arrangements. Members noted that the Financial and Treasury arrangements were up to date and fit for purpose. Improvements had been identified and a training package had been developed for staff awareness in treasury arrangements to ensure that officers had the appropriate skills and knowledge for their roles.

The Committee were advised that the Council had compliance with IR35.

In response to questions from Members the Committee were provided with the following information:

·  In relation to Paragraph 26 of the submitted report Members were advised that the exception referred to had been due to a change in the investee’s credit rating on the day that the investment agreement was concluded, which should have led to a lower investment being made. Officers responsible for agreeing investments had been reminded to make a final check of credit ratings before finalising investments. Members were assured that the investment had been repaid in full on the due date.

·  Members were advised that there was a robust system to track budget holders; that it is incumbent on directorates to ensure that budget holders are identified; and that monitoring takes place through a cycle of meetings held with directorates to discuss levels of control.

·  It was acknowledged that Financial Health Reports are taken to the Executive Board monthly and that those reports subsequently to the Scrutiny Board remit.

·  In relation to IR35 Members requested further information in relation to the number of contractors redesignated in response to IR35.

·  In relation to the CIVICA Housing system it was recognised that this was a new system and there had been some issues in making sure that the system is working in the way it had been intended, and that IDS have identified this as a priority. Members requested a detailed report on the system be included on the Committee’s work programme.

·  In relation to the MRP there were no issues that officers were aware of, and this had been checked by the external auditors as part of the Annual Audit. Grant Thornton Auditors had checked MRP as part of their annual audit and were aware of changes the Council had made to how it uses Capital Receipts. Members were advised that this area would remain a focus for external audit this year.

·  In relation to Treasury Management, members were assured that the Council was compliant with existing Codes and was working towards compliance with the new Codes by 2023/24 as required. The new codes of practice were more specific on the training required for both officers and Members. It was noted that checks were being made to the training provision and it would be provided before the beginning of the 2023/24 year.

RESOLVED - To note the Chief Officer (Financial Services) assurances that:

a. In respect of both Financial Management and Treasury Management that appropriate systems and procedures are in place to ensure that there is sound financial management and control across the authority.

b. The arrangements set out in the Chief Finance Officer protocol have been complied with.