MINUTES OF THE MEETING OF THE ADMINISTRATION AND FINANCE COMMITTEE

HELD AT 7.30PM ON THURSDAY 1 AUGUST2013

AT THE VILLAGE HALL, STATION ROAD, BROUGHTON ASTLEY

PRESENT: Councillors:C Evans, C Grafton-Reed, S Page and C Porter

01.13 /
  1. APOLOGIES
Apologies were received from Councillor Capewell.
02.13 /
  1. DECLARATIONS OF MEMBERS’ INTERESTS AND REQUESTS FOR DISPENSATIONS

No declarations of interest were received.
COUNCIL MANAGEMENT
03.13 /
  1. ELECTION OF CHAIR AND VICE CHAIR OF THE ADMINISTRATION & FINANCE COMMITTEE

The Chairman of the Council welcomed all present to the first meeting of the Administration and Finance Committee of the new municipal year.
Councillor Porter proposed that Councillor Grafton-Reed should be elected as Chair of the Committee for the municipal year 2013-14. The proposal was seconded by Councillor Page. .
Councillor Grafton-Reed proposed that Councillor Porter should be elected as Vice-Chair of the Committee for the municipal year 2013-14. The proposal was seconded by Councillor Evans.
04.13 / RECOMMENDED:
  1. That Councillor Grafton-Reed should be elected as the Chair of the Administration and Finance Committee for the municipal year 2013-14.
  2. That Councillor Portershould be elected as the Vice-Chair of the Administration and Finance Committee for the municipal year 2013-14.

Councillor Grafton-Reed took the Chair of the remainder of the meeting.
  1. REVIEW OF RISK MANAGEMENT STRATEGY, RISK REGISTER AND INTERNAL CONTROLS

Members reviewed the Councils Risk Management Strategy, Risk Register And Internal Controls produced in line with obligations of the Accounts and Audit Regulation 2011, which require a relevant authority to review its framework for the management of risk. The Strategy had also been amended in order to reflect the changes in Committee responsibility which follows the Parish Council’s committee restructure.
The membersconsideredthat the Risk Management Strategy was fit for purpose and recommended its continued use by the Parish Council.
Whilst reviewing the Risk Register, members observed that the risk assessment process would be made clearer by the additional of 2 columns to denote the mitigation of the impact and likelihood separately, leading to an overall residual risk. The Parish Manager agreed to make the amendments to the Risk Register.
Following questions concerning the effect that the Internal Controls have on the Parish Council’s resilience and business continuity, Members agreed that they were sufficient.
05.13 / RECOMMENDED:
  1. That the Risk Management Policy and Strategy adopted by the Parish Council should continue to be maintained.
  2. Than an additional of 2 columns should be added to the Risk Register to show the revised impact and likelihood ratings after the mitigations are implemented leading to an overall residual risk.
  3. That the residual risk ratings shown on the Risk Register are noted, and considered sufficient at the present time.
  4. That the system of Internal Controls used by the Parish Council are sufficient to ensure that the Parish Councils business is conducted in a proper manner; and that the revised Corporate Governance - Internal Controls should be adopted by the Parish Council.

  1. INTERNAL AUDIT PROGRAMME 2013-14

Members considered the Annual Audit Plan for 2013-14. Noting that the Welland Audit Consortium provides the service for the Parish Council on a not-for-profit basis, and that as employees of public authorities, the staff working forthe organisation have expertise in public finance and risk. They did however, request that members of the auditstaff undertaking the audits should operate in rotation, reducing the risk of complacency and bringing a fresh perspective to each audit.
Members considered the suggested audit programme for 2013-14 and agreed that the following audits should be undertaken:
  • Risk Management
  • Treasury Management
  • Value for Money
They also agreed that the Welland Internal audit Consortium should be appointed undertake the audit of financial systems prior to the submission of the Annual Return for 2013-14.
06.13 / RECOMMENDED:
  1. That the Welland Internal Audit Consortium is appointed to undertake the programme of risk based internal audits of the Parish Councils services and functions during 2013-14 to include: Risk Management, Treasury Management and Value for Money.
  2. That the Welland Internal Audit Consortium should be appointed as Internal Auditor to undertake the audit of financial systems prior to the submission of the Annual Return for 2013-14.
  3. That the Welland Internal Audit Consortium is requested to provide staff to undertake the audits on a rotating basis.

  1. REINVESTMENT OF FUNDS – FIXED RATE DEPOSIT ACCOUNT

Members considered the options available in relation to the period of the re-investment of its reserve amounting to £180,454, and allocated for the future purchase of land and buildings. Members agreed that whilst there are penalties for early closure of an investment account, the need to do so is unlikely and there should be sufficient time in purchase negotiations to mitigate a loss of interest.
Members also requested that the Fidelity Guarantee Insurance should be increased to allow for the additional investment held.
They therefor recommended that the reserve is re-invested for a further period of 12 months.
07.13 / RECOMMENDED:
That the Parish Council re-invests the total amount of £180,454 in a Fixed Rate Deposit Account for a further period of 12 months.
  1. SHORT TERM INVESTMENTS

Members recalledthat at its meeting in February 2013 the Parish Council resolved to investigate ways to moving funds from its current account in the short term to provide a better interest rate.As a consequence the Parish Manager had investigated an option of investing in the CCLA Public Sector Deposit Fund.
Members examined the details of the investment scheme which had been highlighted as a method of ensuring that the Parish Council receives a better interest rate on its short term investments (at present held in the current account.) Members considered that whilst attractive on the surface, the scheme involves investment in units trusts, which could be suffer from market volatilityand increase the potential for loss. They considered that the scheme was more suited to larger organisations, and that the constant monitoring of the scheme would create needless additional work for the Parish office staff. Following a long discussion they concluded that they would prefer not to put public funds at risk and should consider investing in another Fixed Rate Deposit account; albeit for a shorter period of 3 months.
The members requested the Parish Manager to prepare a rolling annual schedule of twice yearly investments lasting 3 months each, to ensure that once the Precept was received it could be invested until required.
Members agreed that the schedule should be circulated electronically for approval in order that their full recommendation could be made to Parish Council.
08.13 / RECOMMENDED:
That the Parish Council adopts a rolling annual schedule of twice yearly investments lasting 3 months each to ensure that it receives a better interest rate than in its current account.
09.13 / URGENT BUSINESS
No urgent business was raised.
The meeting closed at 8.43pm
Minutes approved and accepted as correct
......
Chairman
Dated ......

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