Agenda and minutes
PDF 399 KBVenue: Surrey County Council, Woodhatch Place, 11 Cockshot Hill, Reigate, Surrey, RH2 8EF
Contact: Angela Guest Email: angela.guest@surreycc.gov.uk
Media
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APOLOGIES FOR ABSENCE AND SUBSTITUTIONS
Additional documents: Minutes: There were none. |
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MINUTES OF THE PREVIOUS MEETING [29 November 2021]
To agree the minutes as a true record of the meeting. Additional documents: Minutes: The Minutes were approved as an accurate record of the previous meeting. |
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DECLARATIONS OF INTEREST
All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES: · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest · As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner) · Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial. Additional documents: Minutes: There were none. |
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QUESTIONS AND PETITIONS
To receive any questions or petitions.
Notes: 1. The deadline for Member’s questions is 12.00pm four working days before the meeting (18 January 2022). 2. The deadline for public questions is seven days before the meeting (17 January 2022). 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received.
Additional documents: Minutes: There were none. |
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RECOMMENDATIONS TRACKER AND FORWARD PLAN
To review the Committee’s recommendations tracker and the workplan. Additional documents: Minutes: Key points raised during the discussion:
Action/Further information to note:
RESOLVED: That the committee noted the tracker and forward plan.
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This report has been submitted to the Audit & Governance Committee to highlight the main learning points from a business continuity perspective, for Surrey County Council and partnership response to the COVID-19 Pandemic.
Additional documents: Minutes: Speakers: Ian Good, Head of Emergency Management
Key points raised during the discussion:
a) The identification of critical services and what the Director of Public health needed to maintain services. b) The opening of Headley Court. c) How schools were adversely affected, and the support given for that. d) Delegated authority given to officers and the various communication/management groups set up. e) Having an agile workforce not just in terms of location but also changing roles. f) Set up of recovery plan for the ‘new normal’. g) Data analytics. h) One of the learning lessons was that there was not a mechanism in place to review decisions at the time. i) Next steps to maintain capacity, vaccinations, continue to review learning points and preparing for the Covid 19 Enquiry to take place. a) Had any lessons been learned regarding the coordination and liaison with the various agencies needed in situation like this for now or for the future? b) Had there been any progress in establishing improved mortuary accommodation for the future? c) Some staff had found the remote working quite difficult and asked about plans for improving facilities for staff. a) There were standing arrangements in place similar to other resilience forum areas that work to national principles. Learning included the need for ongoing leadership and building in resilience for the future. b) Emergency mortuary provision was at Headley Court and business plans were in place to provide a more permanent facility. c) It was felt that the remote working had impacted more on new members of staff and forming team relationships. IT and other facilities were much more robust than in the past to facilitate home working. Staff well-being was a key focus going forward. |
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Treasury Management Strategy for 2022/23
This report sets out the council’s treasury management strategy for 2022/23, as required to ensure compliance with CIPFA’s Code of Practice for Treasury management.
Additional documents: Minutes: Speakers: Mark Hak-Sanders, Strategic Finance Business Partner Anna D’Alessandro, Director for Corporate Finance & Commercial
Key points raised during the discussion:
1. The Strategic Finance Business Partner gave a detailed precis of the submitted report including the capital borrowing, capital investment and treasury management strategy. 2. The Committee welcomed the changes to the Minimum Revenue Policy (MRP) which had now been adopted. 3. In response to a query regarding the biggest risk to the strategy given the uncertainty around inflation etc the Strategic Finance Business Partner explained that the interest rate risk could mean an increased cost of borrowing to meet capital need. He also explained the mitigations in place for this. Consideration is also given to locking in future borrowing with rate fixed today but, at present, it would cost more to do so. This is under continual review. A secondary risk was that credit ratings of funds could drop and that Arlingclose were monitoring this and the Council would respond immediately to any reduction in counterparty credit rating. 4. It was noted that whilst Arlingclose were more optimistic in regard to interest rates, the Council, along with Orbis, planned for a certain degree of uncertainty. 5. A Member asked what the implications were for the £78m below cost revaluation of Halsey Garton property. The Strategic Finance Business Partner explained that changes to the MRP meant that the Council was setting aside money to repay that debt. Also, because this was a long-term investment there was every expectation that this would recover over time. It was also being scrutinised by the Resources & Performance Select Committee. The Director confirmed that investment in this portfolio was for revenue income rather than capital gains and that any devaluation was not realised until the assets were sold, so it was not affecting the bottom line. There was no immediate interest in selling those assets.
Actions/ further information to be provided: None.
Resolved: That the Treasury Management Strategy Statement (TMSS) – Part 4 of the Capital, Investment and Treasury Strategy - for 2022/23 including the Prudential Indicators be approved.
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This report provides the Audit & Governance Committee with the outcome and findings of the external audit of the 2020/21 financial statements of Hendeca Group Ltd, Surrey Choices Ltd, Halsey Garton Residential Ltd, and Halsey Garton Property Ltd.
Additional documents: Minutes: Speakers: Paul Forester, Strategic Finance Business Partner
Key points raised during the discussion:
1. The Strategic Finance Business Partner introduced the submitted report and explained that each company had received a qualified Audit report. 2. The Strategic Finance Business Partner did not have the information to respond to a Member asked about the reason for increase in administration expenses for Hendeca but would provide the response after the meeting. 3. A Member asked about how the Halsey Garton Residential Ltd properties, previously owned by Surrey County Council, were handled historically, from an accounting point of view and what was the future. The Strategic Finance Business Partner explained that there were two tranches transferred to Halsey Garton Residential Ltd; long term lets previously to the Wildlife Trust and another tranche previously held under residential company lets. The properties were also leasehold rather than freehold so purchase of land was not a requirement. Going forward there was to be a housing strategy developed by SCC and Halsey Garton Residential Ltd was one company being considered but at the moment there were no plans for Halsey Garton Residential Ltd to procure properties outside of Surrey County Council. 4. A Members queried the doubling of debtors for Hendeca Group and the number of creditors had risen. The Strategic Finance Business Partner explained that there were delays at year end but this had now been resolved.
Actions/ further information to be provided: None.
Resolved: That the 2020/21 Audit Findings Reports for Hendeca Group Ltd (formerly S. E. Business Services Ltd), Surrey Choices Ltd, Halsey Garton Residential Ltd, and Halsey Garton Property Ltd be noted.
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To receive an update on the overall corporate risks and a more detailed review on IT Cyber attack.
NB: There is a Part 2 annex at item 12
Additional documents: Minutes: Speakers: David Mody, Interim Strategic Risk Business Partner Morgan Rees, Enterprise Infrastructure Delivery Manager
Key points raised during the discussion:
1. The Interim Strategic Risk Business Partner introduced the report and highlighted the key changes to the risk register. In response to a query about the confidence that all significant risks had been captured, he reported that risk registers are by their nature live and subject to change. However, the Corporate risk register is reviewed monthly by the Corporate Leadership Team and there are risk registers in place specific for each Directorate. 2. The Enterprise Infrastructure Delivery Manager explained the various risks around cyber security where 75% of activity was associated with organised crime. He went on to explain controls in place to mitigate such activity which included: · security patching of data on a monthly basis · monitoring of suspicious activity · staff training · data backup · protection of staff with privileged access · imposing technical constraints · work with emergency management to practice events · compliance with national and local certifications 3. There was some discussion around whether this risk should be a level 5 rather than level 4. It was explained that amongst the top risks for the Council, cyber security was second on the list so it was visible. 4. In response to a Member query about frequency of data back up the Enterprise Infrastructure Delivery Manager explained that there were two types of back-up. One was in real time and the other was offline back up which happened over night everyday. 5. A Member spoke about recent attacks on the NHS and asked if the council were satisfied that those identified gaps had been plugged. The Enterprise Infrastructure Delivery Manager reported that the NHS had performed a significant review and had strengthened its controls and risks. 6. In response to other Member queries the Enterprise Infrastructure Delivery Manager explained that the council had to test to gain its certifications and that spam email were so proliferate not all could be stopped from getting through.
Actions/ further information to be provided: None.
Resolved: That the update on risk management be noted.
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Appointment of Independent Member
This report details the process undertaken to date to recruit an Independent Member to the Audit and Governance Committee and confirms that the preferred candidate will be recommended to County Council for appointment as the Independent Member to the Audit and Governance Committee.
Additional documents: Minutes: Speakers: Paul Evans, Director Law & Governance
Key points raised during the discussion:
Resolved: That the Audit and Governance Committee noted the recruitment process being undertaken and following an interview process, and would recommend the preferred candidate to County Council to be appointed as the Independent Member to the Audit and Governance Committee.
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Exclusion of the public
Recommendation: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
Additional documents: Minutes: Resolved: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
PART TWO – IN PRIVATE
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Risk Management
This is the Part 2 annex to item 9 on the agenda. Minutes: Speakers: David Mody, Interim Strategic Risk Business Partner
Resolved: That the annex be noted – see Minute 63/21
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DATE OF NEXT MEETING
The next meeting of Audit & Governance Committee will be on 28 March 2022. Additional documents: Minutes: The date of the meeting was NOTED. |