Agenda and minutes

The Chairman made a short address to remind all present that the meeting would be broadcast live to the Internet and would be capable of repeated viewing.

To confirm the minutes of the last meeting of the Committee held on 11 December 2006 (attached).

            RESOLVED:

            That the minutes of the meeting of the Committee held on 11 December 2006 be taken as read and signed by the Chairman as a correct record.

(Head of Research and Democratic Services) To declare interests in any item on this agenda.

No declarations of interest were made pursuant to the Council's Code of Conduct.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

It was reported that there was no urgent business for consideration at the meeting.

(Chief Internal Auditor) To consider the attached report on work undertaken by Internal Audit between October and December 2006 and the proposed work plan for January and March 2007.

The Committee considered a report which summarised the work undertaken by the Internal Audit Unit between October and December 2006.  The report also contained the Work Plan for the fourth quarter of the current financial year and a status report on previous Audit recommendations. 

Members noted that the Audit Assistant part-time post had continued to be held vacant in order to provide some budget flexibility to meet the cost of specialist auditors and external contractors undertaking specific audits within the Approved Plan.  Sickness during the third quarter had amounted to 43 days and the average level of sickness per member of staff over the last 12 months had been 19 days.  Whilst this was of concern, the majority of the sickness related to the certificated long?term sickness of two members of the Team.  Members noted that sickness continued to be monitored in accordance with the Council's Managing Absence Procedure. 

During the quarter, Audit reports had been issued in respect of the following:

(a)            Investigation:

(i)            Housing Service Cleaner - attendance and time keeping;

(b)            Systems Audits:

(i)            housing benefits;

(ii)        bank reconciliation;

(iii)       non-domestic rates;

(iv)            corporate external funding;

(v)            Corporate training;

(vi)            housing rents – "tolerated trespassers";

(vii)      fleet operations;

(viii)            grounds maintenance;

(iv)       cash office spot checks;

(x)        office contracts – follow-up;  and

(xi)       North Weald Airfield – follow up.

Members were advised that the main conclusions from the systems audits undertaken indicated that systems were generally operating satisfactorily in those areas and only isolated areas or control issues had been identified.  Attention was drawn to some of the key findings from the third quarter audits. 

Attention was drawn to a summary monitoring the follow up of audits carried out in 2005/06 as an aid to ensuring timely and adequate follow up both by Internal Audit and service management. 

The Committee was advised that the majority of the audits of the Council's main financial systems had been completed by the end of the third quarter.  In recognition that Audit coverage was also required within the Council's services other than Finance, the Audit Plan for the fourth quarter covered a broad range of service areas. 

Attention was drawn to a schedule setting out the current status of the planned audits in the current year's Audit Plan as approved in April 2006.  Members noted that two investigations had been added to the Plan during the year and that one audit had been extended to embrace a wider scope, at the request of the appropriate Head of Service.  Whilst the majority of planned audits would be completed by 31 March 2007, a small number would slip to 2007/08 or not be carried out, partly due to the incidence of sickness within the Audit Team, and partly due to changed operational circumstances within the service concerned.  Members were advised that where appropriate, prioritisation had been based on a risk assessment.

The Committee considered the Unit's performance in relation to the Local Performance Indicator targets for 2006/07.  There had been some slippage  ...  view the full minutes text for item 48.

(Head of Finance) To consider the attached report.

The Head of Finance presented a report proposing a new corporate policy for sundry income and debt.

Members were advised that in order to address adverse comments made in last year's use of resources assessment, officers had undertaken a review of procedures for collecting sundry debts.  The review had resulted in a new debt recovery procedure being introduced on 1 November 2006, and improvements in the collection rates had been reported in the Members' Bulletin in December 2006. 

The Committee was advised that it was now necessary for the Council to adopt a Sundry Income and Debt policy to complement the new procedures.  Members considered a draft policy which reiterated the new debt recovery procedure, and also included a further incentive to services to ensure that they raised their debts correctly and promptly so that payment was received as quickly as possible.

            RECOMMENDING:

            That, subject to the views of the Housing Scrutiny Standing Panel, the draft new corporate policy for Sundry Income and Debt be adopted subject to:

            (a)            paragraph 8.6 being amended to read as follows:

            "In order for a debtor to receive more than three months' credit a detailed income and expenditure sheet should be completed for their case to be considered.  The Senior Finance Officer should be consulted on all these cases";  and

            (b)            Appendix A paragraph 1.3 (c) being amended to read as follows:

            "If the debtor breaches the agreement they will receive one reminder letter.  If a further breach of the agreement is then made, the agreement will be terminated and passed back to the service for them to instruct Legal to take action (copy of the agreement should be forwarded to the service)".

(Head of Finance) To consider the attached report.

The Head of Finance presented a report on the current position of the draft budget 2007/08.  Members were reminded that the budget guidelines had been established as:

(a)        the ceiling for CSB net expenditure to be no more than £17,000,000 including net growth/savings;

(b)        no ceiling for DDF net expenditure, but all items in the programme to be reviewed;  and

(c)        the District Council Tax to be increased by no more than the rate of increase in the Retail Prices Index.

Members considered a list of proposed CSB changes for next year.  The largest item was £113,000 for the end of subsidy on reinstatement grants.  Under Section 541 of the Housing Act 1985, the Council had been receiving subsidy for reinstatement grants made between 1987 and 1991.  The subsidy had been for loan charges on those grants and lasted for 20 years from the inception of each grant.  The subsidy was coming to an end over the next couple of years and so the loss of income had to be reflected as CSB growth.

The other significant item of CSB growth was £59,000 for higher energy costs.  This amount was spread across the portfolios, with the largest single amount being £44,000 in Finance, Performance Management and Corporate Support Services. 

The CSB savings fell into two categories.  The first group comprised savings from cost reductions and procurement efficiencies.  There were two main items in this group, firstly, a £38,000 saving following an e?auction for computer hardware, which had resulted in savings of up to 40% on new computer equipment.  Secondly, a saving of £35,000 following the re?letting of the Council's mobile phone contract. 

The other category of CSB savings covered the areas where income had been increased.  The most significant increase in income was the additional £50,000 that the Council should receive from SLM under the terms of the income share agreement for the Leisure Centres.

Members considered a list of DDF items which amounted to £876,000 net expenditure, offset by transfers of £317,000.  The largest cost item was £199,000 for works to principal ordinary watercourses, although £100,000 of this had been re?scheduled from 2006/07.  The highest spending portfolio was Planning and Economic Development, which was budgeted to spend £349,000, most of which was for Local Plan amendments and the clearing up of a site in Paynes Lane, Nazeing.  The transfers were £117,000 of reimbursement of residual costs of Highways from Essex County Council and £200,000 from the Local Authority Business Growth Incentive Scheme.

Members were reminded of the policy of restricting increase in District Council Tax to less than the increase in the Retail Prices Index.  At the meeting of this Committee on 11 December 2006, it had been decided that the District Council Tax increase should be 3.5% in recognition of the RPI figure at that time being 3.7%.  Since that time the RPI had increased to 4.4% but it was not proposed to go above the 3.5% increase in District Council Tax. 

The Head of  ...  view the full minutes text for item 50.

To consider the minutes of the Corporate Governance Group meetings held on 1 November and 20 December 2006 (attached).

The Committee considered the minutes of meetings of the Corporate Governance Group held on 1 November and 20 December 2006.

            RESOLVED:

            That the issues considered by the Corporate Governance Group be noted.

Exclusion: To consider whether, under Section 100(A)(4) of the Local Government Act 1972, the public and press should be excluded from the meeting for the items of business set out below on grounds that they will involve the likely disclosure of exempt information as defined in the following paragraph(s) of Part 1 of Schedule 12A of the Act (as amended) or are confidential under Section 100(A)(2):

The Local Government (Access to Information) (Variation) Order 2006, which came into effect on 1 March 2006, requires the Council to consider whether maintaining the exemption listed above outweighs the potential public interest in disclosing the information. Any member who considers that this test should be applied to any currently exempted matter on this agenda should contact the proper officer at least 24 hours prior to the meeting.

Confidential Items Commencement: Paragraph 9 of the Council Procedure Rules contained in the Constitution require:

(1)        All business of the Council requiring to be transacted in the presence of the press and public to be completed by 10.00 p.m. at the latest.

(2)        At the time appointed under (1) above, the Chairman shall permit the completion of debate on any item still under consideration, and at his or her discretion, any other remaining business whereupon the Council shall proceed to exclude the public and press.

(3)        Any public business remaining to be dealt with shall be deferred until after the completion of the private part of the meeting, including items submitted for report rather than decision.

Background Papers:  Paragraph 8 of the Access to Information Procedure Rules of the Constitution define background papers as being documents relating to the subject matter of the report which in the Proper Officer's opinion:

(a)            disclose any facts or matters on which the report or an important part of the report is based;  and

(b)        have been relied on to a material extent in preparing the report and does not include published works or those which disclose exempt or confidential information (as defined in Rule 10) and in respect of executive reports, the advice of any political advisor.

Inspection of background papers may be arranged by contacting the officer responsible for the item.

            RESOLVED:

            That the public and press be excluded from the meeting for the item of business set out below on the grounds that it would involve the likely disclosure of exempt information as defined in the paragraph of Part 1 of Schedule 12A of the Local Government Act 1972 and it is considered that the exemption outweighs the potential public interest in disclosing the information:

            Agenda            Subject            Exempt Information

            Item Number                    Paragraph Number

            9            Corporate Governance Group            3

To consider restricted minutes from the meetings held on 1 November and 20 December 2006 (attached).

The Committee considered restricted minutes from the meetings of the Corporate Governance Group held on 1 November and 20 December 2006.

            RESOLVED:

            That the minutes and the action arising be noted.

CHAIRMAN