Basingstoke & Dean Borough Council
Councillors:
54
Wards:
18
Committees:
22
Meetings (2025):
67
Meetings (2024):
72
Meeting
Audit and Accounts Committee - Basingstoke & Dean
Meeting Times
Scheduled Time
Start:
Monday, 29th January 2024
6:30 PM
Monday, 29th January 2024
6:30 PM
End:
Monday, 29th January 2024
9:30 PM
Monday, 29th January 2024
9:30 PM
Actual Time
Started:
Monday, 29th January 2024
12:00 AM
Monday, 29th January 2024
12:00 AM
Finished:
Monday, 29th January 2024
12:00 AM
Monday, 29th January 2024
12:00 AM
Meeting Status
Status:
Confirmed
Confirmed
Date:
29 Jan 2024
29 Jan 2024
Location:
Committee Rooms 1 & 2 - Deanes
Committee Rooms 1 & 2 - Deanes
Webcast:
Available
Available
Meeting Attendees
Chair
Chair of the Audit and Accounts Committee
Committee Member
Mayor
Committee Member
Deputy Mayor and Chair of the Resident Services Committee
Committee Member
Richard Harbord (Co Opted Member of the Audit and Accounts Committee)
Present, as expected
Committee Member
Chair of the Resources Committee
Reserve
Chair of the Development Control Committee
Council Staff
Executive Director of Corporate Services and Assets
Sue Cuerden
Expected
Agenda
1
Apologies for absence and substitutions
Minutes
Apologies were received from Councillor Gaskell.
2
Declarations of interest
Minutes
There were no declarations of interest.
3
Urgent matters
To consider any items of business, other than those shown on this agenda and which, by reason of special circumstances to be stated at the meeting, in the opinion of the Chairman, should be considered at the meeting as a matter of urgency.
Minutes
There were no urgent matters.
4
Minutes of the meeting held on 27 November 2023
The Chair will move that the minutes of the meeting be signed as a correct record. The only part of the minutes that can be discussed is their accuracy.
Attachments:
- Document Minutes of the meeting held on Monday 27 November 2023 19 Jan 2024
Minutes
The minutes of the meeting held on 27 November 2023 were confirmed by the Committee as a correct record and signed by the Chair.
5
External Investment Funds Monitoring as at 30 September 2023
Contact Officer: Adam Swain
The purpose of this report is to provide an update on the Council’s externally managed pooled fund investments.
The purpose of this report is to provide an update on the Council’s externally managed pooled fund investments.
Attachments:
- Document External Investment Funds Monitoring as at 30 September 2023 19 Jan 2024
- Document Enc. 1 for External Investment Funds Monitoring as at 30 September 2023 19 Jan 2024
Minutes
The Chair introduced the report, which provided an update on the Council’s externally managed pooled fund investments.
Due to the confidential nature of the information to be discussed, the committee passed a resolution that, by virtue of paragraphs 3 of Schedule 12A of the Local Government Act 1972, the public be excluded from the meeting.
Resolved: The Committee note the Pooled Funds Review.
Due to the confidential nature of the information to be discussed, the committee passed a resolution that, by virtue of paragraphs 3 of Schedule 12A of the Local Government Act 1972, the public be excluded from the meeting.
Resolved: The Committee note the Pooled Funds Review.
6
Draft Treasury Management Strategy for 2024/25
Contact Officer: Adam Swain
The purpose of this report is to present the Executive Director of Corporate Services and Assets (Section 151 Officer’s) draft Treasury Management Strategy 2024/25 report that will be considered by Council on 22 February 2024 and to inform the committee of the proposed strategy.
The purpose of this report is to present the Executive Director of Corporate Services and Assets (Section 151 Officer’s) draft Treasury Management Strategy 2024/25 report that will be considered by Council on 22 February 2024 and to inform the committee of the proposed strategy.
Attachments:
- Document Report 19 Jan 2024
Minutes
The Executive Director of Corporate Services and Assets introduced the report which presented the Committee with the draft Treasury Management Strategy 2023/24 that would be considered by the Council on 22 February 2024 and to inform the Committee of the proposed strategy.
The Committee discussed the report and made the following comments:
Several members felt that the third-party periodic independent assessment of the Council’s treasury management investment portfolio should occur more often than five years. There were several views about how frequent the independent assessment should be. Commented that the timeline for the independent assessment should be as adaptable as possible based on the Council’s needs, to be reflected in the report to Council. The Executive Director reminded the Committee that the wording in the report stated the review would take place ‘at least’ once every five years. She stated that she could recommend an independent assessment for the Committee to consider, and she determined the timing of the review. It was recommended that the report to Council include that the Audit and Accounts Committee discuss an independent assessment of the Council’s treasury management portfolio on a yearly basis. If the Committee felt like an assessment was needed, it could be recommended to the Executive Director. It was requested that a new independent assessment of the treasury management portfolio take place in the next financial year. Clarified that the Committee did not have the authority to hire advisors. The Chair highlighted that a truly independent appointment should require a proper segregation of duties. Highlighted the importance of strong financial regulations to ensure good financial governance for the Council. Emphasised the need to monitor the Council’s approach to Environmental, Social and Governance (ESG) investment policies. In relation to indirect ESG investments, there was concern about the words ‘seek to’, in the report in relation to the Council ensuring that fund managers had responsible investment policies. The Executive Director explained that Arlingclose would provide a training event for the Committee before a future meeting.
· It was requested that a relevant date be added to the Treasury Management Policy Objectives section of the report, and the wording of the objectives be amended to reflect the Section 151 Officer’s responsibility.
Resolved: The Committee note the contents of the report and provides its comments to Council.
The Committee discussed the report and made the following comments:
Several members felt that the third-party periodic independent assessment of the Council’s treasury management investment portfolio should occur more often than five years. There were several views about how frequent the independent assessment should be. Commented that the timeline for the independent assessment should be as adaptable as possible based on the Council’s needs, to be reflected in the report to Council. The Executive Director reminded the Committee that the wording in the report stated the review would take place ‘at least’ once every five years. She stated that she could recommend an independent assessment for the Committee to consider, and she determined the timing of the review. It was recommended that the report to Council include that the Audit and Accounts Committee discuss an independent assessment of the Council’s treasury management portfolio on a yearly basis. If the Committee felt like an assessment was needed, it could be recommended to the Executive Director. It was requested that a new independent assessment of the treasury management portfolio take place in the next financial year. Clarified that the Committee did not have the authority to hire advisors. The Chair highlighted that a truly independent appointment should require a proper segregation of duties. Highlighted the importance of strong financial regulations to ensure good financial governance for the Council. Emphasised the need to monitor the Council’s approach to Environmental, Social and Governance (ESG) investment policies. In relation to indirect ESG investments, there was concern about the words ‘seek to’, in the report in relation to the Council ensuring that fund managers had responsible investment policies. The Executive Director explained that Arlingclose would provide a training event for the Committee before a future meeting.
· It was requested that a relevant date be added to the Treasury Management Policy Objectives section of the report, and the wording of the objectives be amended to reflect the Section 151 Officer’s responsibility.
Resolved: The Committee note the contents of the report and provides its comments to Council.
7
Draft Capital Investment Strategy for 2024/25
Contact Officer: Adam Swain
This report sets out the draft Capital Investment Strategy for 2024/25 and the Investment Strategy (Non-Treasury) for 2024/25.
This report sets out the draft Capital Investment Strategy for 2024/25 and the Investment Strategy (Non-Treasury) for 2024/25.
Attachments:
- Document Report 19 Jan 2024
Minutes
The Executive Director of Corporate Services and Assets introduced the report, which set out the draft Capital Investment Strategy for 2024/25 and the Investment Strategy (Non-Treasury) for 2024/25.
The Committee discussed the report and made the following comments:
Stated that the Investment Strategies chart, which set out how the Council’s investment strategies fit together, was useful. Commented that the Council’s cash resources were forecast to fall from £124.43M to £31.52M by the end of 2027/28 and the effect it would have on the revenue position. The Executive Director stated that the Council had financed the capital programme through its existing resources as it was the cheapest way to fund the capital programme. The Executive Director detailed that independent advice had been taken on how the Council would undergo its capital spend. Stated that £11.92m spent on improvements to council-owned buildings needed to be more specific on how much had been spent on investment and operational property improvement. Commented that the Capital Receipts and Income Estimates Table was not easy to understand. Queried the Council’s use of the Public Works Loan Board (PWLB). The Executive Director detailed that the PWLB was an external borrowing mechanism, but the Council did not have access to the favourable PWLB rate unless the Property Investment Strategy changed.
Resolved: The Committee note the contents of the report.
The Committee discussed the report and made the following comments:
Stated that the Investment Strategies chart, which set out how the Council’s investment strategies fit together, was useful. Commented that the Council’s cash resources were forecast to fall from £124.43M to £31.52M by the end of 2027/28 and the effect it would have on the revenue position. The Executive Director stated that the Council had financed the capital programme through its existing resources as it was the cheapest way to fund the capital programme. The Executive Director detailed that independent advice had been taken on how the Council would undergo its capital spend. Stated that £11.92m spent on improvements to council-owned buildings needed to be more specific on how much had been spent on investment and operational property improvement. Commented that the Capital Receipts and Income Estimates Table was not easy to understand. Queried the Council’s use of the Public Works Loan Board (PWLB). The Executive Director detailed that the PWLB was an external borrowing mechanism, but the Council did not have access to the favourable PWLB rate unless the Property Investment Strategy changed.
Resolved: The Committee note the contents of the report.
8
Draft Annual Property Plan 2024/25
Contact Officer: Liz Suatt
This report is to present the draft Annual Property Plan for 2024/25 which will be reported to Cabinet on 6th February 2024 and builds on the implementation of the Strategic Asset Management Plan 2022/2026.
This report is to present the draft Annual Property Plan for 2024/25 which will be reported to Cabinet on 6th February 2024 and builds on the implementation of the Strategic Asset Management Plan 2022/2026.
Attachments:
- Document Annual Property Plan 2024/25 19 Jan 2024
- Document Appendix 1 Cabinet Report for Annual Property Plan 2024/25 19 Jan 2024
- Document Annex 1 for Cabinet Report for Annual Property Plan 2024/25 19 Jan 2024
Minutes
The Cabinet Member for Finance and Property introduced the report, which presented the Draft Annual Property Plan that would be reported to Cabinet on 6February 2024 and builds on the implementation of the Strategic Asset Management Plan 2022/2026.
The Committee discussed the report and made the following comments:
The Cabinet Member highlighted that the word ‘net’ in relation to income in the report, needed to be replaced with the word ‘gross’. The rental forecast for 2024/25 number for ’£18.52M’ needed to be updated and replaced with the number ’£18.9M’. It was clarified that the Council would support community organisations to find alternative accommodation, where possible, if it was looking to dispose of property. Praised the officers for their hard work on the report. Questioned if the number of anticipated lease renewals and rent reviews in 2024/25 was high. The Investment Portfolio Lead confirmed that it was not a particularly high or low number. It was requested that a comment be made in the Cabinet report about enforcement of litter clearance on tenants on Council-owned land and to strengthen lease agreements to ensure enforcement. The Executive Director stated that this would be reviewed by Property Services with the Council’s enforcement officers where appropriate.
The Executive Director clarified that progress on property activity was reported and monitored at the Capital Programme Board.
Resolved: The Committee notes the report and provides its comments to Cabinet.
The Committee discussed the report and made the following comments:
The Cabinet Member highlighted that the word ‘net’ in relation to income in the report, needed to be replaced with the word ‘gross’. The rental forecast for 2024/25 number for ’£18.52M’ needed to be updated and replaced with the number ’£18.9M’. It was clarified that the Council would support community organisations to find alternative accommodation, where possible, if it was looking to dispose of property. Praised the officers for their hard work on the report. Questioned if the number of anticipated lease renewals and rent reviews in 2024/25 was high. The Investment Portfolio Lead confirmed that it was not a particularly high or low number. It was requested that a comment be made in the Cabinet report about enforcement of litter clearance on tenants on Council-owned land and to strengthen lease agreements to ensure enforcement. The Executive Director stated that this would be reviewed by Property Services with the Council’s enforcement officers where appropriate.
The Executive Director clarified that progress on property activity was reported and monitored at the Capital Programme Board.
Resolved: The Committee notes the report and provides its comments to Cabinet.
9
Viewing of Social Networking Sites
Contact Officer: Ann Greaves
This report provides Members of the Committee with a summary of the viewing of individuals’ social networking sites in an investigatory capacity for the period 14th July 2023 to 17th January 2024.
This report provides Members of the Committee with a summary of the viewing of individuals’ social networking sites in an investigatory capacity for the period 14th July 2023 to 17th January 2024.
Attachments:
- Document Report 19 Jan 2024
Minutes
The Chair introduced the report, which provided members of the Committee with a summary of individuals’ social networking sites in an investigatory capacity for the period 14th July 2023 to 17th January 2024.
Resolved: The Committee note the contents of the report.
Resolved: The Committee note the contents of the report.
10
Audit and Accounts work programme
The Committee is asked to note and review it’s work programme.
Attachments:
- Document Audit and Accounts Work Programme 19 Jan 2024
- Document Action Tracking Log 19 Jan 2024
Minutes
· The Chair introduced the work programme and gave a brief overview of the items that would be included on the agenda for the upcoming meetings.
The Chair also introduced the list of actions from previous Committee meetings. The Executive Director highlighted that there were many local authorities that had outstanding audits to be completed. She detailed that the Council’s external auditors, EY, would only be undertaking a limited external audit of the Council’s 22/23 position. It was also explained that the Council had new auditors on behalf of EY. It was detailed that the External Audit- Audit Results Report would most likely not be presented at the March meeting.
· Stated that there were a high number of scheduled items for the next meeting on March 4.
The Chair also introduced the list of actions from previous Committee meetings. The Executive Director highlighted that there were many local authorities that had outstanding audits to be completed. She detailed that the Council’s external auditors, EY, would only be undertaking a limited external audit of the Council’s 22/23 position. It was also explained that the Council had new auditors on behalf of EY. It was detailed that the External Audit- Audit Results Report would most likely not be presented at the March meeting.
· Stated that there were a high number of scheduled items for the next meeting on March 4.
11
Exclusion of press and public
To consider whether, in view of the nature of the remaining items on the agenda, any of them are likely to involve the disclosure of exempt or confidential information within the terms of [] Schedule 12A of the Local Government Act 1972
12
Confidential/exempt items for information
Item 5- External Investments Funds Monitoring- Appendix 1 is exempt.
Item 8- Annual Property Plan- Annex 1 is exempt.
Item 8- Annual Property Plan- Annex 1 is exempt.
Previous Meetings
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