Agenda and minutes

To receive any apologies for absence from Councillors.

Apologies for absence were received from Councillor Beesley.

Councillor Connolly was present at the meeting on a virtual basis (without entitlement to vote).

To receive information on any changes in the membership of the Committee.

Note – When a member of a Committee is unable to attend a meeting of a Committee or Sub-Committee, the relevant Political Group Leader (or their nominated representative) may, by notice to the Monitoring Officer (or their nominated representative) prior to the meeting, appoint a substitute member from within the same Political Group. The contact details on the front of this agenda should be used for notifications.

Formal notice had been received appointing Councillor Rampton as substitute for Councillor Beesley.

Councillors are requested to declare any interests on items included in this agenda. Please refer to the workflow on the preceding page for guidance.

Declarations received will be reported at the meeting.

There were no declarations of interest.

To confirm and sign as a correct record the minutes of the Meeting held on 26 October 2023.

RESOLVED that

a)    The fourth paragraph of Minute number 37 be amended to read as follows:

‘It was noted that the level of redaction within the report, though necessary for confidentiality, restricted the ability of Members to fully understand the report. It was suggested that this would be improved by allocating a reference to each person mentioned without actually including the names of particular individuals. Other Members were of the view that, since issue of the report with the agenda for the meeting, there had been insufficient time for them to give the report sufficient consideration prior to discussion and to prepare the detailed level of questioning that the public would expect. One Member expressed a contrary view that sufficient time had been allowed’.

Subject to the amendments set out above the Minutes of the meeting of the Committee on 26 October 2023 were confirmed as a correct record and signed by the Chair.

To receive any public questions, statements or petitions submitted in accordance with the Constitution. Further information on the requirements for submitting these is available to view at the following link:-

https://democracy.bcpcouncil.gov.uk/ieListMeetings.aspx?CommitteeID=151&Info=1&bcr=1

The deadline for the submission of public questions is 3 clear working days before the meeting.

The deadline for the submission of a statement is midday the working day before the meeting.

The deadline for the submission of a petition is 10 working days before the meeting.

The Committee was advised of the receipt of four public questions and two public statements.

PUBLIC QUESTIONS

Public Question from Mr Alex McKinstry

Question 1.

Can the chair confirm that if the Committee wishes to debate tonight's report on the Bayside Restaurant, they will need to vote on whether to exclude the press and public? I well remember this being done at full Council on 10 January 2023, when the sale of Council assets was discussed - on which occasion, the vote was lost and the debate continued in open session. My understanding is that press and public can only be excluded "by resolution" of the relevant Committee, pursuant to Section 1(2) of the Public Bodies (Admission to Meetings) Act 1960. But I'd be happy to stand corrected, as long as I'm given chapter and verse.

Response

Thank you for your question Mr McKinstry. The regulations you quote are incorrect but the principle is correct. For clarity, the 1960 Act relates to meetings of parish and town councils and not principal councils. 

The Local Government Act 1972, Section 100(A)(4), permits councils to pass a resolution to exclude the press and public from a meeting during an item of business whenever it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during that item there would be disclosure to them of exempt information. The reasons for exempting an item of business are set out in Schedule 12A of the Act. 

The resolution to be passed this evening is included in the briefing papers should the committee wish to discuss the detail of the exempt appendices and will be moved, seconded and voted upon accordingly. 

Public Questions from Mr Ian Redman

Question 1.

Which senior managers with governance or managerial responsibility were made aware of the losses made by the Bayside?  When were they made aware of the losses and what actions did they take?  Managerial responsibility would be equivalent to Head of Destination and Culture or above.

Response

It was identified after the first week of operations that Bayside income was not meeting expectations, this was communicated to senior managers within Destination and Culture.  Due to the sunk (fixed) costs already incurred, the decision was made to continue with the operations but with advice given to the Bayside operator from seafront staff on adaptions to the operation such as reducing the spend on variable costs, such as food produce ordering, where possible, limiting the spend in line with customer throughput of the restaurant.  Senior Managers within Destination and Culture were aware of the anticipated loss for Bayside in September 2022 with the total loss being advised in early November 2022 once all costs had been confirmed. 

Question 2.

Plans for the Bayside began in March 2022 or earlier.  The Bayside logo was being promoted on the 25th April.  The caterer and infrastructure suppliers were being booked from May onwards.  Why do you say  ...  view the full minutes text for item 44.

The attached report sets out the draft findings of the Council’s external auditor following their audit of the Council’s Statement of Accounts 2021/22. The key points to note are:

Financial Statements

·       As at 21 November 2023 the audit is approximately 90% complete.

·       The main area of audit work not concluded is in respect of the IAS19 Pension Fund net liability due to a required response from the auditor of the Dorset Pension Fund.

·       Subject to completion of remaining work Grant Thornton anticipate providing an unqualified opinion on the financial statements for the Council in early 2024.

Value or Money Arrangements

·       VFM work for 2021/22 has been completed, and was separately reported to the Audit & Governance Committee in September 2023.

·       The 2021/22 report included a number of key recommendations as well as a large number of improvement recommendations.

·       Four significant weaknesses in the Council’s arrangements were reported and the external auditor was not satisfied the Council had made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

Significant Matters

·       A significant number of amendments, issues and control weaknesses were identified during the 2021/22 audit.

The additional time spent gaining assurance over all elements of the financial statements along with significant additional VFM work will be reflected in the final audit fee, to be confirmed once all work has been completed.

The External Auditors, Grant Thornton, presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book. The report set out the External Auditor’s draft findings following their audit of the Council’s Statement of Accounts 2021/22.

The Committee noted that, as at 21 November 2023, the audit of the financial statements was approximately 90% complete. The main area of audit work not concluded was reported to be in respect of the IAS19 Pension Fund net liability where the required response from the auditor of the Dorset Pension Fund remained outstanding. Subject to completion of this remaining work, however, Grant Thornton anticipated providing an unqualified opinion on the financial statements for the Council in early 2024.

Once again, the Committee expressed it’s frustration with the delay particularly as it was occurring in the same area as in previous audits. Although it was explained that the Pension Fund issues were outside of the Council’s control, reassurances were provided that every effort was being put in by the Auditors, working closely with Officers, to minimise the impact of the delay.

In terms of the Value for Money (‘VFM’) elements of the audit it was reported that the VFM work for 2021/22 had been completed, and separately reported to the Audit and Governance Committee in September 2023. The 2021/22 report had included a number of key recommendations and improvement recommendations.

The External Auditor explained the process for following up on recommendations and the final report would include statements of the Council’s response and details, with targets, of the action proposed to address the recommendations.

The Committee also noted that the additional time spent gaining assurance over all elements of the financial statements along with significant additional VFM work would be reflected in the final audit fee, to be confirmed once all work had been completed.

Subject to receipt of the awaited Pension Fund information and assessment of its impact on the accounts and availability of resource over the Christmas period, the External Auditor anticipated that the final opinion would be ready to submit to the Committee at its January or February meeting but undertook, whatever the situation, to provide an update at the January meeting.

RESOLVED that Audit and Governance Committee notes the anticipated audit opinion and the draft findings of the Council’s external auditor following their audit of the Council’s statement of accounts 2021/22.

Voting: Unanimous

The report summarises the issues considered by the Constitution Review Working Group and sets out a series of recommendations arising from the Working Group for consideration by the Committee including proposed establishment of area-based planning committees and a transportation advisory group.

Any recommendations arising from the Committee shall be referred to full Council for adoption.

The Chair of the Constitution Review Working Group presented a report by Head of Democratic Services and Interim Monitoring Officer which summarised the issues considered by the Working Group and set out a series of recommendations for consideration by the Committee including proposed establishment of area-based planning committees and a transportation advisory group (‘TAG’).

The report had been circulated to each Member and a copy appears as Appendix 'B' to these Minutes in the Minute Book and any recommendations arising from the Committee would be referred to full Council for adoption with a target for implementation of May 2024.

The implications of the proposed changes to the Constitution were shown in ‘track changes’ format in the appendices to the report. The implications of the changes in terms of finance and resourcing were also set out. It was also explained that issues of ‘Special Responsibility Allowances’ (‘SRAs’) for Councillors would be addressed, when appropriate, by the Council’s Independent Review Panel for allowances.

The report set out for consideration a series of principles for establishment of the new area-based planning committees and set out the range of options considered by the Working Group. The methodology for determining the proposed geographical boundary of each area committee based on historical workload data was explained and the objective was to achieve a fair distribution in terms of workload between the two Committees. The suggested distribution of Councillors’ wards between the two was also set out together with proposed arrangements for cross-boundary applications, the effect in terms of Political balance and other proposals for mitigation of risk. Attending the meeting virtually, the Chair of the current Planning Committee indicated that she supported the proposal. The Committee was also advised that the proposed model was supported by Planning Officers and arrangements were being made to align staffing systems with the two-committee approach.

The proposals from the Working Group for establishment of a Transportation Advisory Group (‘TAG’) were also set out.

Members of the Committee endorsed the proposals for mandatory training and also supported the suggestion that a compulsory training approach should be extended to the Licensing Committee and to the Appeals Committee.

RECOMMENDED TO COUNCIL that

(a)     in relation to Issue 1 (Planning Committee Structure and Arrangements) the proposed amendments to Parts 1, 2, 3, 4, 6 and 7, as set out in Appendix 1 to this report, be approved with an implementation date of 7 May 2024;

Voting: For – 7; Against 0; Abstain - 1

(b)    in relation to Issue 2 (Establishment of Transportation Advisory Group) the proposed amendments to Parts 2, 3 and 4 as set out in Appendix 2 to this report, be approved with an implementation date of 7 May 2024;

Voting: For 7; Against 1; Abstain 0

(c)     any necessary and consequential technical and formatting related updates and revisions to the Constitution be made by the Monitoring Officer in accordance with the powers delegated.

Voting: Unanimous

This report details progress made on delivery of the 2023/24 Audit Plan for the period July to September (inclusive) 2023. The report highlights that:

·       4 audit assignments have been finalised, including 1 ‘Partial’, 2 ‘Reasonable’ and 1 ‘Consultancy’ audit opinions;

·       27 audit assignments arein progress, including 7 at draft report stage;

·       £12.7M of grant expenditure has been certified, as required by the issuing Government department, as meeting grant conditions;

·       Internal Audit issued a report on seafront pop-up activity, incorporating ‘Bayside’ restaurant making 18 recommendations. The Director of Commercial Operations has led on implementing recommendations and has finalised other investigatory work. 

·       For a breach of Financial Regulation, previously reported to this Committee, an investigation has concluded and the Director of Commercial Operations has taken action in line with the disciplinary policy and procedures; 

·       Three apprentices have been successfully recruited, however, the resignation of an auditor means that there will be further impact on the delivery of the audit plan;

·       6 ‘High’ priority audit recommendations have not been implemented by the original target date.  Explanations from respective Directors appear reasonable and revised target dates have been agreed.

[NOTE: Should the Committee wish to discuss the detail within the Confidential Appendix of this report, the meeting will be required to move into Confidential (Exempt) Session]

The Head of Audit and Management Assurance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

The report detailed progress made on delivery of the 2023/24 Audit Plan for the period July to September (inclusive) 2023 and highlighted that four audit assignments have been finalised, including one ‘Partial’, two ‘Reasonable’ and one ‘Consultancy’ audit opinions. Additionally, it was reported that 27 auditassignments were in progress, including seven at draft report stage, and that £12.7M of grant expenditure has been certified, as required by the issuing Government department, as meeting grant conditions.

Six ‘High’ priority audit recommendations had not been implemented by the original target date but explanations from respective Directors appeared reasonable and revised target dates had been agreed. Finally, for a breach of Financial Regulation, previously reported to this Committee and in respect of which further information had been requested at the last meeting, an investigation had been concluded and the Director of Commercial Operations had taken action in line with the disciplinary policy and procedures.

The Committee then focussed particularly upon the report issued by Internal Audit on seafront pop-up activity, incorporating ‘Bayside’ restaurant and the 18 recommendations made as a result of the audit were set out and explained. The full and confidential Investigation Report was available to members of the Committee and the Head of Audit and Management Assurance responded to questions from the Committee, including the newly appointed Independent Person members, as far as questions could be raised during public session.

It was confirmed that the Director of Commercial Operations had led on implementing the recommendations and had finalised other investigatory work.  The Committee was given assurances that the new Service Director, appointed since the event forming the subject of the audit, had completely reviewed process and procedures, especially relating to financial waiver, and that a very vigorous set of replacement procedures was now in place with the type of discretion previously available to Officers no longer available going forward.

In general terms, the new Service Director also described the process now in place of regular review of all audit recommendations which ensured that audit recommendations were embedded across all service areas within the Directorate in accordance with agreed target dates. This was also in addition to corporate monitoring of performance.

At the conclusion of the report, the Committee was informed by way of update on resources within the Audit Team that three apprentices had been successfully recruited and were already making a positive and useful contribution within the team. Set against that, however, the resignation of an auditor was likely to further impact on the delivery of the audit plan.

RESOLVED that Audit and Governance Committee

a)    notes progress made andissues arising onthe deliveryof the2023/24 InternalAudit Plan;

b)    notes the explanations provided in Appendix 3, relating to High Priority recommendations not implemented by the initially agreed target date,  ...  view the full minutes text for item 47.