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Agenda and minutes

Venue: 18th Floor, 64 Victoria Street, London, SW1E 6QP

Contact: Artemis Kassi, Senior Committee and Governance Officer  Tel: 07817054991 Email:  akassi@westminster.gov.uk

Media

Items
No. Item

1.

Membership

To note any changes to the membership.

Minutes:

1.1           There was one change to membership. Cllr Richard Elcho stood down from the Committee and Cllr Antonia Cox replaced him.

 

2.

Declarations of Interest

To receive declarations by Members and Officers of the existence and nature of any pecuniary interests or any other significant interest in matters on this agenda.

 

Minutes:

2.1      There were no declarations of interest.

 

3.

Minutes - TO FOLLOW pdf icon PDF 249 KB

To approve the minutes of the meeting on 2 March 2021.

Minutes:

3.1       The Committee discussed outstanding minutes. Artemis Kassi undertook to provide outstanding minutes ahead of the September meetings.

 

4.

2020 -2021 Year End Performance Report pdf icon PDF 2 MB

To receive and review a report on the performance and progress at the end of 2020 – 2021.

Minutes:

4.1       The Committee reviewed and noted the contents of a report collated by Strategy and Intelligence, summarising the Council’s performance and progress at the end of 2020-21. It was noted that 20% of Key Performance Indicators (KPIs) were off track at the end of the year; this was explained as being largely down to the effects of the coronavirus pandemic. One correction was noted regarding the council tax KPI, which had achieved target although it had previously been off target. 

 

For each directorate, the Executive Director highlighted successes, challenges, and issues, with the Chief Executive providing additional commentary.

 

4.2       For Adult Social Care and Public Health, Bernie Flaherty commented that the targets had been set to be amongst the top five local authorities in London. Bernie Flaherty noted that there had been positive changes to social work practice, and that Council teams had been working alongside health partners to improve timeliness of hospital discharges and lessen the impacts of the pandemic. Key challenges were noted as staff wellbeing and resilience throughout the pandemic; business as usual (BAU) work not being completed due to the impact of the pandemic on capacity; and a decreasing market in adult social care. Increasing health inequalities were mentioned as another significant risk.

 

4.3       The Committee queried how vaccinations had been calculated in the local population, as Westminster had many people who moved in and out of the area transiently or due to work. Stuart Love commented that the use by the Office for National Statistics of the population denominator was incorrect for Westminster, particularly amongst some age cohorts, and that this was the case across London. However, Stuart Love advised the Committee that he had been informed that this was unlikely to change. It was further observed that GP data also had significant shortfalls. This issue had been examined because of Westminster’s low position in the vaccination league tables. The Committee was informed that efforts were underway in tandem with Strategy and Intelligence officers to understand reasons for people not being vaccinated, or where people have been vaccinated and not remained in Westminster.

 

4.4       The Committee asked whether the cost of PPE for adult social care workers had been borne by the Council or by contract partners, who may have incurred further adverse financial impact from doing so, potentially making them more vulnerable in a low market. Bernie Flaherty responded that part of a Government grant had been used to assist care homes with PPE and staff support.

 

4.5       The Committee queried the use of “monitoring demand” for social care services, and whether it might be appropriate to instead consider mitigation efforts for changed demand, as mitigation plans were not included in the report. Bernie Flaherty responded that, in normal times, it was possible to monitor trends. However, during the pandemic, these trends had changed considerably and changes to monitoring would aim to predict changes in demand across the next year and mitigate by allowing planning for appropriate provision of care services. The Committee also  ...  view the full minutes text for item 4.

5.

Revenue and Capital Outturn 2020 - 2021 pdf icon PDF 905 KB

To receive and review a report on the Revenue and Capital Outturn 2020 -2021, examining the General Fund revenue position against the approved budget.

Minutes:

5.1       The Committee noted the contents of the Revenue and Capital Outturn Report, which provided details of the General Fund revenue position against the approved budget.

 

Issues discussed included the year-to-date variances due to financial pressures arising from the Covid19 pandemic; key income streams within parking and planning; and capital underspend, including the Piccadilly underpass.

 

5.2       The Committee noted that, although Government grant funding had helped protect Westminster City Council from the most adverse impacts of the coronavirus pandemic, but withdrawal of that support combined with ongoing issues for key income streams, notably parking and commercial waste, was a significant financial risk.

 

Gerald Almeroth explained that a letter had been written to MHCLG making the case for local government to receive support, as businesses were receiving extended business rates relief support. He noted that parking had, at times, performed well during the pandemic, as commuters were driving into the City and using parking. Commercial waste, being so closely linked to the success of hospitality businesses, remained significantly diminished, but was expected to begin recovering as hospitality reopened.

 

5.3       Collection rates for Council Tax had fallen, but this did not represent a significant impact on overall Council income. For Business Rates, although the picture was complex, and Government grant funding had supported many businesses, an increase in bad debt provision for Business Rates had been anticipated. The Committee queried whether the Council could do more to take recovery action for non-payments. Gerald Almeroth agreed it was possible that with restrictions lifting, that would be the case.

 

5.4       The Committee queried whether the Council was adequately resourced to deal with any grant fraud. Gerald Almeroth commented there was a high level of confidence with regard to grants for Business Rates. New applicants, however, were subject to extensive checks to prevent fraud, and some claims had been denied. Stuart Love commented that he and Barry Quirk (Chief Executive of The Royal Borough of Kensington and Chelsea) were in discussions about appropriate levels of resourcing, as they shared concerns about the potential for fraud.

 

5.5       The Committee heard that the leisure contract had returned no income during the pandemic, owing to restrictions on the operation of leisure businesses. Government support had been allocated to supporting the Council’s leisure services whilst they waited to be permitted to resume normal services. However, the Council would monitor levels of demand emerging from the pandemic context, and adjust future spend accordingly. The Committee was advised that the leisure contract in place was based on usage and activity and that the Council was still in contract with the provider until the end of January 2023.

 

5.6       The Committee raised a question about future borrowing, and whether it would be subject to the advertised rates. Gerald Almeroth confirmed that all agreed rates were legally binding, and represented low rates in the context of inflation already beginning to increase following the drop during the pandemic.

 

5.7       RESOLVED: that the Committee note the report.

6.

Report on Treasury Management Strategy Outturn for 2020/21 pdf icon PDF 744 KB

To note a report on the annual treasury management review of activities and the actual prudential and treasury indicators for 2020/21, in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities.

Minutes:

6.1       The Committee received a report on the Treasury Management Strategy Outturn for 2020/2021, which included a review of activities and actual Prudential and Treasury indicators in accordance with the CIPFA Code of Practice for Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Committee discussed the forward borrowing loans and was advised that the deals entered into were legally binding and still sound decisions. The Committee also discussed the Thurrock deposits and expressed concern that the highest interest rate was 1.06%. The Committee was advised that this did not present a risk. The Committee noted the report.

 

6.2       RESOLVED: that the Committee note the report.

 

7.

External Audit Certification of Claims and Returns Annual Audit 2019/20 pdf icon PDF 276 KB

To note the report on the annual external review of the grants claimed by the City Council through a grants certification process. This report provides a summary of the review of the Housing Benefit Subsidy claim for 2019/20.

Minutes:

7.1       The Committee received a report on the annual external review of the grants claimed by the City Council through a grants certification process. This report provided a summary of the review of the Housing Benefit Subsidy claim for 2019/20. Martin Hinckley advised the Committee that officers recognised scope for improvement.

 

7.2       RESOLVED: that the Committee note the report.

8.

Report on the 2020/2021 Audit Plan for Westminster City Council pdf icon PDF 4 MB

To receive a report on the 2020/2021 Audit Plan, outlining the planned scope and timing of Westminster City Council’s statutory audit by the external auditors, Grant Thornton.

Minutes:

8.1       The Committee received a report on the 2020/2021 Audit Plan, outlining the planned scope and timing of Westminster City Council’s statutory audit by its External Auditors, Grant Thornton. Joanne Brown was present for Grant Thornton as external audit partner.

 

8.2       Significant risks were noted as management override of controls; valuation of operational land and buildings; valuation of investment properties; valuation of pension fund net liability; and valuation and completeness of the equal pay liability. There was discussion of Value For Money considerations and governance, including around subsidiary companies. Key factors included the coronavirus pandemic’s impacts on the Council’s service delivery and governance, including around subsidiary ventures and commercial companies. The audit was planned to begin in June 2021.

 

8.3       The Committee queried whether it was necessary or appropriate to value assets annually, in particular assets which would not be sold, and noted that to do this took considerable officer resource each year, taking away focus from more critical issues. Joanne Brown commented that auditors were bound by auditing standards and thus required to examine asset valuation as part of audit risk, but that Grant Thornton planned to liaise with Council officers to understand fully the judgements involved in and basis of valuations. 

 

8.4       The Committee noted that the audit fee had risen considerably and commented on the inclusion of Westminster Housing Investments.

 

8.5       RESOLVED: that the Committee note the report and receive quarterly reports in future.

9.

Report on the 2020/2021 Audit Plan for the Westminster Pension Fund pdf icon PDF 2 MB

To receive a report on the 2020/2021 Audit Plan for the City of Westminster’s Pension Fund, outlining the planned scope and timing of the statutory audit by the external auditors, Grant Thornton.

Minutes:

9.1       The Committee received a report on the 2020/2021 Audit Plan for the City of Westminster’s Pension Fund, outlining the planned scope and timing of the statutory audit by its External Auditors, Grant Thornton. The Committee sought to understand the valuation of the pension fund and the £625 million deficit, whether this was a CIPFA or actuarial figure. Phil Triggs advised the Committee that, for the pension valuation, the accountants’ version of the deficit was used. The Committee noted the full valuation every three years and queried whether it could receive both valuations.

 

The Committee noted the Internal Audit Charter for 2020.

 

9.3       RESOLVED: that the Committee note the report and receive future updates.

10.

Work Programme pdf icon PDF 394 KB

To consider the Committee’s Work Programme for the municipal year 2021 – 2022.

Additional documents:

Minutes:

10.1     The Committee noted the items on its Work Programme for its two September meetings. The Committee agreed to review the Accounts on 15th September. The Committee noted the items proposed for 29th September, including an update on immunisations, inter alia, and requested other items to be confirmed as appropriate.

 

10.5     RESOLVED: that the Committee note the report.