Agenda and minutes

There were no declarations of interest made by Members.

There were no members of the public present.

The minutes of the Audit Committee meeting dated 14^th January 2016 were confirmed and signed by the Chairman.  In doing so, the Chairman had agreed to write to the Passenger Transport Manager with a view to him providing the Audit Committee with a more formal report, at the next meeting, regarding reference to an unsatisfactory audit opinion relating to areas within the service.

We received the Action List from the meeting held on 14^th January 2016.  In doing so, the following points were noted:

Monmouthshire response to issues raised by a member of the public on 16^th July 2015

The Chief Officer, Enterprise will present a report to the next Audit Committee Meeting regarding details of an appropriate response to a member of the public.

Early Departures and Vacant Posts

The Chairman would write to the Head of Commercial and People Development regarding the issue in respect of early departures and vacant posts with a request that a report on this matter be submitted to the next Audit Committee meeting for consideration.  Any questions regarding this matter could be submitted in advance to the Head of Finance or directly to the Head of Commercial and People Development.

Unsatisfactory Audit Opinions – Monmouthshire Enterprises

The Head of Adult Services provided the Committee with the following information:

·         This was now known as ‘My Day, My Life’.

·         The development fund was established when it was known as Monmouthshire Enterprises.  However, the way it had been established had become unsatisfactory and had therefore been reviewed and the accounts had been frozen.  Following the review the balances had been ready to be re-distributed and was no longer deemed unsatisfactory.  The recommendations had been addressed and was now in order.  The action had been completed.

·         The Chief Internal Auditor informed the Committee that this matter would be incorporated into the planning process and would check that the matter has been addressed and would provide feedback to the next Audit Committee meeting.

We received a report by the Wales Audit Office regarding the Certification of Grants and Returns 2014-15 in respect of Monmouthshire County Council.

Members were informed that grants were improving and the County Council was addressing the actions that had been identified, which in turn was reducing the Council’s risk assessment.

We resolved to receive the report and noted its content.

We received a report in which Members were provided with details of the proposed annual Treasury Management Policy Statement and the Treasury Management Strategy Statement including the Investment and Borrowing Strategies for 2016/17 to 2019/20 and the Minimum Revenue Provision (MRP) Statement for 2016/17 for deliberation by the Committee in advance of Full Council consideration.

Having received the report, the following points were noted:

·         In response to a Member’s question regarding the potential effects regarding this matter if the United Kingdom were to leave the European Union, it was noted that there would likely be some volatility going forward and it might change the Authority’s attitude to risk.

·         Future interest rates for borrowing were likely to rise by 0.5% next year with a potential rise in the longer term of between 1% and 1.5%.  We would receive a warning before interest rates were likely to rise.

·         In response to a Member’s question regarding investment in Skutrade, it was noted that this matter did not fall within the remit of the Treasury Management Statement.  However, Members were informed that this matter had been considered by Cabinet and it had been agreed that the Authority should invest £90,000 into Skutrade to be funded via the Council’s reserves.

·         In response to a Member’s question regarding the Authority investing in properties to gain rental income from them, it was noted that this matter would require a sound business case to identify if this would be self- funding. To date, no details have been received regarding this matter.

·         The Authority’s investment advisers were shortly due to retender for this post.  Further details would be available at the next Audit Committee meeting.

We resolved that the proposed Treasury Management Policy Statement for 2016/17 and proposed Treasury Management Strategy and Investment and Borrowing Strategies 2016/17 to 2019/20, including the Minimum Revenue Provision (MRP) Statement for 2016/17, be presented to Full Council for consideration together with the Treasury Limits, as required by section 3 of the Local Government Act 2003.

We received the Audit Committee Work Programme.  In doing so, it was noted by a Committee Member that the County Council had identified that some budget mandate targets might not have been achieved and that these issues should be presented to Audit Committee for scrutiny.

The Chairman suggested that Member submits a notice of motion, with supporting information, to the next Audit Committee regarding the budget mandates in question, in order to agree a way forward.

We resolved:

(i)            to receive the report and noted its content;

(ii)          that the Member submits a notice of motion, with supporting information, to the next Audit Committee regarding the budget mandates in question, in order to agree a way forward.

The meeting ended at 3.00pm.