Meeting documents

Members considered the Annual Audit Letter 2014/15 presented by Aphrodite Antoniades from PwC, the Council's external auditors; she thanked Rob Bridge, Mark Saunders and the Financial Team for their assistance.

Members asked questions, made comments and received responses as follows:

• Councillor Booth asked with regard to the terminology within the report regarding the Pilot's Pension Scheme and the fact that PwC stated they have challenged management to justify treatment in accordance with the code of practice; was this a concern or was it the way it had been presented in the accounts to which Ciaran McLaughlin replied stating that technically it was the way it had been presented in the accounts as it had also been looked at in conjunction with a government pension scheme to ensure which was the correct way.  Rob Bridge explained that the same question had been asked by Ernst & Young and there had been a query with regard to a retired pilot and a newly recruited pilot and when he would enter into the pension fund; this should be in twelve months due to training on the local river Nene.  Councillor Owen asked if the £1.5m deficit would be identified as payable to which Rob Bridge explained this could be recognised immediately in the accounts and it was the initial view of PwC that it should be treated the same as a government pension scheme and the only cost is that it would be paid back over the next 16 years; Ciaran McLaughlin has completed some works to ensure the approach taken was sound and both Rob Bridge and Mark Saunders had worked hard to ensure the Council were not hit with a big cost.  The whole process has been managed with PwC and it will continue with Ernst & Young.


• Councillor Booth asked if trienniall valuation had been a consideration to which Rob Bridge explained that the high court had penalised all member organisations as the pension fund had not undertaken a triennial valuation and therefore asked for increased contributions over the years.


• Rob Bridge thanked Mark Saunders, Jonathan Tully, Geoff Kent and the ARP for their help in a great audit report and suggested that the Council issue a press release regarding an audit report that was so positive, especially when the finances of the Council are under scrutiny.

The Corporate Governance Committee noted the Annual Audit Letter 2014/15 Report.

(Councillor Booth declared a Non-Pecuniary interest in this item by virtue of the fact that he occasionally works with PwC as part of his job.)

(Councillor Mrs Davis declared a Non-Pecuniary interest in this item by virtue of personally knowing more than one the senior partners of PwC.)

Members considered the Treasury Management Strategy Statement and Annual Investment Strategy Mid-Year Review 2015/16 presented by Mark Saunders.

Members asked questions, made comments and received responses as follows:

• Councillor Mrs Hay commented that report stated it allows some flexibility for limited early borrowing for future years and asked in what circumstances the Council would utilise this.  Rob Bridge explained that the Council's Capital Programme is getting towards where the capital receipts are now much tighter therefore it was an option open to Members if it was needed and allows the borrowing of money earlier than needed to gain advantage of the current market conditions.


• Councillor Mrs Hay asked how the figures in 5.2 of the report compared to those of previous years to which Mark Saunders stated that these did vary, the Council has a core amount to invest to cover reserves and the remainder depends on cash flow which spikes and dips depending on the time of year.


• Councillor Booth commented that with regard to outstanding loans, the Council pay them back through revenue received and therefore at some point there would be capital sat there on its own having repaid the loans.  Mark Saunders stated the capital is paid in full so the Council hold it all back.


• Councillor Booth commented that the average rate of return was 0.68% therefore Fenland is just above average yet used to sit in the top quarter.  Rob Bridge stated he had look at neighbouring authorities, of which most have not published their mid-term reports yet but it looked like Fenland would be 0.77% and therefore in the upper quarter but there would be further data to share at the end of the year.  Councillor Booth added that there were returns of up to 1.01% available to which Rob Bridge stated the Council had one at 1% but did not invest for any longer than 12 months in order to keep funds liquid; the Council's range was 0.45% but was always looking for opportunities to get the best deal.

It was AGREED that:

• The Corporate Governance Committee noted the Treasury Management Strategy Statement and Annual Investment Strategy Mid-Year Review 2015/16 Report;


• It be recommended to Council that the increase in the CFR, gross borrowing and the capital prudential indicators be approved;


• It be recommended to Council that changes to credit methodology be approved.

Members consider the Regulation of Investigatory Powers Act (RIPA) Annual Update Report presented by Geoff Kent.

Members asked questions, made comments and received responses as follows:

• Councillor Mrs Hay questioned page 50 of the report as it stated that Urgent Oral Authorisations were not permitted under any circumstances yet page 52 stated that they can be authorised in exceptional circumstances to which Geoff Kent explained that the Council cannot grant an authority orally in the first instance but can if it is a renewal;


• Councillor Booth stated that there had been a marked increase in this from 0 to 4 and yet this committee had stated in the past that it was a good thing that Fenland did not use these powers like some other authorities and therefore asked if Fenland had changed its strategy, particularly with regard to fly tipping.  Rob Bridge stated there had been some fly tipping hot spots where it had been used to enable the culprits to be identified.  Councillor Booth stated that it was necessary to ensure it was proportionate and cost benefit to which Rob Bridge confirmed that these were taken into consideration; Carol Pilson added that every applicant that Fenland had taken to court had been approved and therefore this showed how robust Fenland was.  Councillor Buckton stated that as an authority Fenland should not be afraid to use these powers; they are intended for fly tipping as this was a public nuisance to which Councillor Tanfield stated that she was concerned this was being used with fly tipping and that it would be very useful with anti-social behaviour.  Councillor Buckton stated that it cannot be underestimated that the belief of any potential fly tippers getting caught could have as it makes them less likely to fly tip.  Carol Pilson added that there has been a publicity drive that cameras are being used to which Councillor Murphy stated that Fenland have to try and prosecute but that this does cost the Council therefore posters have been displayed in hot spots and these have actually worked in stopping any fly tipping in those areas;


• Councillor Booth stated that using it against anti-social behaviour was a change in policy and was this in conjunction with the Fenland Partnership as there is a need to ensure that these powers are not being used. 


• Councillor Booth asked if Members could be updated more regularly to which Councillor Owen stated he would talk with officers to consider how frequent this should happen and get back to him.

The Regulation of Investigatory Powers Act (RPIA) - Update Report was NOTED.

Rob Bridge updated the Committee on Items of Topical Interest as follows:

• Ernst & Young, the Council's new external auditors had apologised for not being able to attend the meeting; both Mark Saunders and Rob Bridge had met with them and they would be at the meeting scheduled in February.


• Councillor Booth asked if the recent announcement from the government regarding the spending review from the Chancellor was as expected.  Rob Bridge stated the facts would not be clear until the Council receives its settlement from the DCLG, which is expected in the next few weeks.  Rob Bridge was also attending a meeting regarding the impact on District Councils therefore there would be further news and as soon as figures have been received then these would be shared with Members with the draft budget report scheduled for the December Cabinet meeting.