Basingstoke & Dean Borough Council Audit and Accounts Committee Meeting

Councillor Gaskell was replaced by Councillor Edwards.

There were no declarations of interest.

There were no urgent matters.

The minutes of the meeting held on the 28 November 2022 were confirmed as a correct record and signed by the Chair.

The Chair introduced the report which provided a mid-year update on the council’s externally managed pooled fund investments. The Chair invited Arlingclose to present their review.

The committee resolved that, 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 1972, the public be excluded from the meeting.

Resolved: The Committee notes the report.

The Executive Director of Corporate Services and Assets introduced Maria Grindley and Larisa Midoni from EY who introduced the report and presented the initial audit results report to the committee for discussion.

The Committee discussed the report and made the following comments:

·         Queried the area of focus in the report for the unspent Covid-19 Grants. The Executive Director advised that there was a difference in the accounting treatment if there were conditions attached but none had been found.

·         Some Members felt that even though the external auditor had not raised any concerns within the scope of governance review they had undertaken as part of the audit, The Committee should review its own effectiveness to ensure that it was adhering to CIPFAs policies.

·          It was stated that an effectiveness review had not been scheduled on the Committees work programme for some time. The Committee felt that the issue should be addressed with Officers outside of the meeting.

·         Some members expressed that they would like to have more training in relation to their role on the Committee.

·         Questioned when the audit would be completed. The Committee were advised that all parties were working to finish the work as soon as possible.

·         Concern was raised in relation to the Councils major projects and partnerships.

Resolved: The Committee notes the report.

The Head of Financial Services introduced the report which set out the Statement of Accounts for the year ended 31 March 2022.

The Committee discussed the report and some members felt that they should approve the statement of the accounts at the next meeting once all the work had been completed and the audit had been fully signed off, instead of delegating authority for approval to the Chair and the S151 Officer.

Resolved: The Committee defers the approval of the statement of accounts to the next meeting due to be held on the 6 March 2023.

The Executive Director introduced the report which set out the Capital Investment Strategy for 2023/24 and Investment Strategy (Non-Treasury) for 2023/24.

The Committee discussed the report and made the following comments:

• Queried how the report and the Committees role fed into the overall budget process. The Executive Director advised that the Committee could only note the report and forward any comments to Council where the item would be debated and recommended for approval. The Chair also advised that the Scrutiny of the budget was the responsibility of the Scrutiny Committee.

• In response to a request, the Executive Director gave the Committee a brief explanation to highlight the changes compared to the previous year’s strategy.

• Sought clarification on the benefits to joining the pension prepayment scheme.

It was requested that the Committee enter a private session to ask specific questions on the report.

The committee resolved that, 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 1972, the public be excluded from the meeting.

Resolved: The Committee notes the report.

The Executive Director introduced the report which presented the Committee

With the draft Treasury Management Strategy 2023/24 that would be considered by the Council on 23 February 2023 and to inform the committee of the proposed strategy.

The Committee discussed the report and made the following comments:

• Reference was made to repurchase agreements and Counterparties. The Executive Director confirmed that the Council would ensure that if they were below the Councils minimum rating then the investment would not take place.

• Some Members were apprehensive of any investment in counterparties from outside of the UK.

• Acknowledged that investments were carried out by Officers in line with the approved scheme.

Resolved: The Committee notes the report.

The Executive Director introduced the report on behalf of the Cabinet Member for Finance and Property which presented the Annual Property Plan for 2023/24 that would be reported to Cabinet on 7th February 2023 and builds on the implementation of the Strategic Asset Management Plan 2022/2026.

• Sought clarification on what the term “lease regearing” meant.

• Queried the work undertaken in relation to service level agreements for community centres.

• Some Members felt the purchase of the Premier Inn was a good investment deal and that the Smarter Ways of Working Project was a huge success.

• Felt that the proposal for Community ownership of Swan Street was to be applauded.

Councillor Cubitt requested that her views be minuted but the Committee stated that they were her views and not the comments of the Committee.

Councillor Cubitt stated that she

• Was unhappy that the Council purchased the Premier Inn.

• Would like more information on sector diversification for the non-performance of assets.

• Would like more information on the renting of the Parklands building and why the Smarter Ways of Working Project had been a success economically.

• Was saddened by the capital decline of the malls shopping centre.

Resolved: The Committee notes the report and provides its comments to Cabinet.

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.

Councillor Basham stated that a review of the Committees effectiveness should be produced by an independent third party and scheduled for consideration. The Executive Director confirmed that Officers review the issue after the meeting.