Agenda and minutes

The Chairwelcomed allparties tothe meeting.The Committeenoted theemergency evacuationprocedure forthe Council Chamberif required.

Apologies for absence were received from the Chair, Councillor Tim Rippington and Simon Cookson.

To note any declarations of interest from the Councillors.  They are asked to indicate the relevant agenda item, the nature of the interest and in particular whether it is a disclosable pecuniary interest.

Any declarations of interest made at the meeting which is not on the register of interests should be notified to the Monitoring Officer for inclusion.

Councillor Wilcox declared that, in relation to agenda item 19, he was BCC’s non-Executive Director on Goram Homes Board.

Councillor Hucker declared that, in relation to agenda item 19, he was BCC’s non-Executive Director on Bristol Waste Company.

To agree the minutes of the previous meeting as a correct record.

RESOLVED – that the minutes of 22 July 2024 be approved as a correct record.

This was noted.

The Chair informed the Committee that the order of agenda had been varied to facilitate attendance.

Up to 30 minutes is allowed for this item.

Any member of the public or Councillor may participate in Public Forum.  The detailed arrangements for so doing are set out in the Public Information Sheet at the back of this agenda.  Public Forum items should be emailed to democratic.services@bristol.gov.uk and please note that the following deadlines will apply in relation to this meeting:-

Questions – A member of the public may submit a maximum of 3 questions per meeting. Written questions must be received 3 clear working days prior to the meeting.  For this meeting, this means that your question(s) must be received in this office at the latest by 5 pm on 25 September 2024.

Petitions and Statements - Petitions and statements must be received on the working day prior to the meeting.  For this meeting this means that your submission must be received in this office at the latest by 12.00 noon on 27 September 2024.

Members of the press and public who plan to attend a public meeting at City Hall are advised that you will be required to sign in when you arrive and you will be issued with a visitor pass which you will need to display at all times.

These were heard and noted.

To note the work programme.

This was noted.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      The Valuation of the Council’s equity investment in Bristol Port Company had increased significantly as set out in the statement of accounts.  This investment was valued this year (23/24) by an independent external specialist using complex valuation techniques due to the investment being a private equity holding with limited comparable data.  The main drivers for the increase were discussed being the base dividend and the increase in the future growth rate of dividends used in the valuation methods;

2.      It was noted that the accounts were available to the public for inspection for 30 days and questions had been submitted for these accounts and the questioners had been satisfied with responses;

3.      It was noted that procurement breaches continued to rise which was of concern and it was agreed, via the action sheet, to report back on whether the breaches were large or lots of small ones.

Resolved – That the latest draft Statement of Accounts for the year ended 31 March 2024 be noted.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      GT and BCC finance officers had worked together to get the accounts signed off and this had been a marked turnaround in the status of accounts. This was a massive testament to the change in working practices in the finance team;

2.      There had only been a small number of errors in what was a complex set of accounts. The DSG had been a common issue for many LA’s;

3.      The audit opinion would not be signed off until VFM work had been completed and would be reported to the November Audit Committee;

4.      There had been an objection to the 22/23 accounts which remained outstanding. The vast majority of work had been done and would be concluded in October and then a certificate would be issued for 22/23 accounts;

5.      It was noted that housing revenue and BCC’s housing stock being referred to the regulator was captured as a risk but under governance not financial sustainability as this was the most appropriate risk;

6.      Last year’s and this year’s output could not be compared until VFM work was completed and this report would be updated for the November Committee along with the annual report;

7.      GT engaged valuation experts that had the required expertise for BCC’s assets and there were no concerns from GT’s perspective that they were independent, competent and that valuations were in line with GT’s expectations;

8.      Audit fees were cyclical and had been driven down for some time and there had been a market reset to what the fees should have been for a while. Variations would be smaller in the future giving both sides more certainty;

9.      Audit Committee had previously approved the process for going to PSAA and at the end of the term the arrangement could be revisited as a VFM opportunity;

10.  The VFM report covered both commentary on arrangements in the current year and previously and whether they addressed issues partially or fully.

Resolved -  That Grant Thornton’s draft Audit Report for 2023/24 and the action plan agreed by management be noted.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      The transition to the Committee system of governance had gone smoothly and relatively seamless for the Companies. The continuity of some Councillors had helped;

2.      Bristol Holding worked very closely with the companies’ Audit & Risk Assurance Committees (ARACs) so that risks did not escalate and there was a Shareholder meeting on a quarterly basis;

3.      Goram Homes was a company owned by BCC and was held to account regularly and the layers of control were robust;

4.      In relation to performance management BCC annually set out its objectives including those of its companies. The Shareholder Group reviewed companies performance and there were regular meetings with the Growth & Regeneration office. Key Performance Indicators were reviewed at the companies’ ARACs and risks were identified and monitored. A key risk was the inability to hit milestones ie. in the case of Goram Homes the number of homes built, which was currently behind but work was underway to catch up next year;

5.      The Leader of the Council added that it was the responsibility of the Shareholder Group to monitor the targets in the Business Plan and KPI’s. These targets were also reviewed at the Strategy & Resources and Homes & Housing Delivery Policy Committees;

6.      Environmental standards were set out annually and there were KPI’s for them;

7.      Bristol Waste Company’s ARAC had received reports on procurement and overtime costs and this was currently being resolved. There would be full transparency in the Risk Management Framework;

8.      IA had an open invitation to attend the companies’ ARACs.

Resolved – That the annual assurance reports (Comprehensive Assurance Statements) of the Bristol Holding Group Trading companies, comprising Goram Homes Ltd. (GHL), Bristol Waste Company Ltd. (BWC) in addition to a summary report from the Bristol Holding Group FD who is BCC’s appointed ‘Shareholder Observer’ on both committees be noted.

4.      Date of next meeting.

 Thenext meetingis scheduledto beheld on 25 November 2024.

The meeting ended at 6pm.

CHAIR                                               

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      It was agreed to circulate the previous version to the Committee for information.

Resolved –

1.      That the updated Code of Corporate Governance be approved;

2.      That an updated report be taken to Full Council for noting.

The report and each appendix was summarised for the benefit of the Committee and the following points arose from discussion:-

Appendix 1 – Corporate Business Continuity Planning.

1.      It was noted that emergency planning was not the same as business continuity planning.

Appendix 2 – Housing Investment Programme & Maintaining Homes (Planned Repairs) 23/24.

1.      There was confidence that planned spend estimating was much improved as the scope was more data led and contingencies were built in to projects;

2.      Commercial training of surveyors had improved but more could be done;

3.      Kitchen installation costs varied from the North to the South of Bristol due to the condition of the properties and contract management. Monitoring was taking place but not to the level required;

4.      It was noted that in respect of the Gilton House project cladding remediation was required so the scope changed and costs increased. It was agreed, as part of the action sheet, to provide the monetary value for this project;

5.      An officer Board had been established to significantly improve the capital programme. Innovation and engaging with partners was important to these improvements;

6.      The Leader of the Council added that it was recognised that there were problems with this service and steps had been taken to address them. Repairs to properties were prioritised so that tenants felt safe. Some of the programmes were being reviewed as they were very ambitious and overestimated the ability to progress projects.

Appendix 3 – Section 106 (S106) Arrangements & the Community Infrastructure Levy (CIL) 23/24.

1.      It was of noted concern that a significant portion of S106 funds had not been used within time limits specified and it was agreed, as part of the action sheet, to provide information on the proportion and the impact;

2.      If not used in time an applicant could reclaim monies. In cases where projects were still being delivered it was important to secure contributions for part of a project even if relatively small;

3.      There had been a longstanding issue of small transport improvements not being delivered in a timely way and the subsequent risk that the improvements might not get fully funded due to inflation. This had been because the procurement framework had not been available to BCC. This had now been addressed. The team was now fully funded by recharging and the CAZ would provide additional funds for Area Committees.

Appendix 4 – Licensing Income 23/24.

1.      Since the chasing of bad debts for renewals of licences was introduced in September £20,000 of the £283,000 of bad debt had been recovered;

2.      The Licensing Authority went beyond the national standards for DBS checks.

Resolved – That the report and takes assurance or requests additional assurance from management regarding the issues highlighted in the report.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      As a result of higher than anticipated Treasury balances due to a lower borrowing need to finance the capital programme and higher working capital balances, £50m was borrowed from the PWLB towards the end of the 2023/24 financial year;

2.      The 50 year target borrowing rate provided by the Treasury Advisors was below the actual borrowing rates as expected and was for indicative purposes only.  As set out in the report the policy for borrowing was to keep loan durations short and refinance over longer periods during the MTFS when rates were expected to be lower, aligned with the target borrowing rates. 

Resolved – That the Annual Treasury Management Report for 2023/24, as detailed in Appendix A and A1 be noted.

Councillor Logan and Adebola Adebayo gave their apologies and left the meeting.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      It was noted that it would be necessary to go into exempt session should the Committee wish to discuss the exempt appendix;

2.      It was agreed, as part of the action sheet, to provide a breakdown of aged debt;

3.      Debt & arrears had got better in some areas but worse in others.

The report was summarised for the benefit of the Committee and no clarification questions were raised.

Resolved – That the proposed Quarter (Q) 3 priorities for 2024/25 be approved.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      It was noted that the tables in the appendices had not been properly formatted and were therefore confusing and should be reviewed before they were presented to Full Council.

Resolved - That the report be noted and referred to Full Council for consideration.

The report was summarised for the benefit of the Committee and there was no discussion.

Resolved – That the actions taken in 2023/24 and those proposed for 2024/25 to improve the effectiveness of risk management across the organisation be noted.

The report was summarised for the benefit of the Committee and the following points arose from discussion:-

1.      It was agreed, as part of the action sheet, to provide detail on reasons why CRR55 had reduced;

2.      It was noted that CRR9 risk had reduced by 1 point as the mitigations in place had been increased since the previous risk assessment;

3.      It was agreed, as part of the action sheet, to provide the risk causes for CRR52 and whether the Ombudsman decision should be reflected in the Risk Register or was it beyond the scope;

4.      It was agreed, as part of the action sheet, to respond to why there was low progress in entries which were overdue now or in the near future.

Resolved – That the Q2 2024/25 Corporate Risk Report (CRR) be noted.