Agenda and minutes

The Democratic Services Officer read out the procedure.

RESOLVED that a Vice-Chair was not required on this occasion.

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The minutes (moved by Councillor Ward and seconded by Councillor Curran) were unanimously approved as a correct record and signed by the Chair.   

The Chair (Councillor Andy Furse) introduced the report and explained that  the Corporate Audit Committee were considering this issue as a result of a referral from the Housing and Major Projects Policy, Development and Scrutiny Panel. He welcomed the representatives from Curo and informed the Members that they had been invited in order to answer any factual questions the Committee might have.

He asked the Associate Director of Housing and Health to present the report. The officer explained the background to the recent proposed changes to Somer Housing and Curo together with the concerns highlighted by the Housing, Major Projects Policy, Development and Scrutiny Panel. These centred around the nature of the Council’s representation on the Board and changes to the tenants’ representation.

Mr de Cunha (Curo) was invited to respond. He said that there was concern that representation would compromise the influence that the Council had on the Board, but he pointed out that the law requires that non-executive directors set aside other interests if they become members of a charitable Board. In response to the second concern he said that arrangements for the residents’ involvement were evolving, but that they were not constitutional. Curo wished to modernise its governance according to best practice. It was Curo’s opinion that the special relationship with Bath and North East Somerset Council was not best served through Board membership, but through meetings between senior officer of Curo and senior politicians.

Cllr. McRae said that he had come to a different conclusion and that it was not possible for representatives to wear two hats. He was concerned that, according to the proposed model, meetings with Curo would not be in the public forum and therefore not democratic. He welcomed modernisation and the adoption of best practice, but emphasised the need for transparency.

Cllr Curran said that it was inevitable that B&NES had a special relationship with Curo as they held 80% of the authority’s social housing stock. However, this should not be to the exclusion of other responsible social landlords (RSLs). It was important not to downgrade the relationship with Curo but to upgrade the relationship with other RSLs.

Cllr Ward asked whether it was possible to create a body underneath the Board where councillors and residents can consult. Mr de Cunha replied that the current arrangement with B&NES was a quarterly meeting with councillors, recently re-named as a strategic partnership forum. Its aim was to discuss mutual interest and vision for the future and Curo felt that this kind of engagement was more appropriate. It could be possible to develop the forum further to include political party representation and work at a strategic level for senior officers and politicians.

Cllr Ward commented that if that were the interface between the Council and Curo then he was not sure that a councillor needed to be on the Board, especially if they were not allowed to report back. He asked how Curo consulted with other local authorities. The Associate Director  ...  view the full minutes text for item 22.

The Divisional Director for Finance introduced the report and said that he was pleased with the improvements in the presentation of the accounts.

Audited Statement of Accounts 2011/12

Cllr Ward asked whether there were any changes in the Council’s reserve position from last year and were there any concerns. The officer replied that the general fund balance had increased, as had the reserves. They were at a healthy level with which to face the current challenges. Cllr Ward further asked how the Keynsham development would be funded and was informed that it would mainly be through borrowing. As the Council has cash reserves, they can apply for cashflow funding for the project. Cllr Ward asked whether there were any departments where spending was above budget levels and was informed that every department was being closely monitored, with specific detail contained within the forward to the Accounts.

In response to a question from Cllr Laming, the officer confirmed that £11m had arisen from the Spa settlement and the 2^nd payment  (£13m) arising out of the Southgate development was also due later this year.

Cllr Sandry asked about the accuracy of the heritage asset values and whether it was a good idea to publicise them individually. The officer replied that the Council had to apply International Accounting Standards, but took a pragmatic approach and used insurance or heritage service valuations.

Cllr McRae said that he was re-assured by the professionalism of the external auditors. He thanked them and the wider finance team.

Annual Governance report – B&NES Audit 2011/12

Wayne Rickard (District Auditor) and Chris Hackett (Audit Manager) of the Audit Commission introduced their report.

Mr Rickard reported an improvement in the quality of the financial statements and working papers over the past seven years.

The Committee RESOLVED to note the adjustments to the financial statements and to approve the letter of representation.

Cllr Simmonds left the meeting at this point.

Annual Governance Report  - Avon Pension Fund

Mr Hackett introduced the report and informed the Committee that there were no issues with the control reports from fund managers and that there were matters to report regarding fund systems.

Cllr Ward asked what audit was done on the fund managers and was informed that the auditors carried out a controls assurance review.

The Committee RESOLVED to note the issues to the Avon Pension Fund report and to approve the letter of representation.

Annual Governance Statement 2011/12

The Divisional Director, Risk Assessment, Audit Services introduced the report and informed Members that it had previously been signed off by the Chair of Council and the Chief Executive and was previously discussed at the May committee.

The Committee RESOLVED to note the issues within the Annual Governance report and to approve the letter of representation.

The Divisional Director for Finance introduced the report and informed the Members that it represented a snapshot of the financial year. The Council was still looking to fund capital expenditure from cash flow rather than borrowing.

Cllr Laming asked about the West of England Revolving Investment Fund (para. 1.17) and where it was held. The officer assured the Members that it was invested safely in a Triple A rated investment and belonged to the West of England.

John Barker commended the finance team for their professionalism. 

Wayne Rickard introduced the report whose purpose was to update the Committee on progress in delivering the external auditor’s responsibilities. He asked the Committee to note that Grant Thornton would be appointed the Council’s auditors as of 1^st September 2012. He also informed the Committee that he was leaving the Audit Commission to take up another post and said that he had enjoyed working with the Council.

Cllr McRae thanked Mr Rickard for his service and professionalism.

The Chair concluded the meeting by thanking the external audit team.

The Committee RESOLVED to note the report.