Agenda, decisions and minutes

Governance and Audit Committee
Thursday, 25th March, 2021 10.00 am

Contact: Remote Meeting 

Items
No. Item

33.

DISCLOSURES OF INTEREST

(Members Code of Conduct - Part 4A of the Constitution)

 

To receive disclosures of interests from members and co-opted members on matters to be considered at the meeting. The disclosure must include the nature of the interest.

 

An interest must also be disclosed in the meeting when it becomes apparent to the member during the meeting.

 

Notes:

 

(1)       Members may remain in the meeting and take part fully in discussion and voting unless the interest is a disclosable pecuniary interest or an interest which the Member feels would call into question their compliance with the wider principles set out in the Code of Conduct.  Disclosable pecuniary interests relate to the Member concerned or their spouse/partner.

 

(2)       Members in arrears of Council Tax by more than two months must not vote in decisions on, or which might affect, budget calculations, and must disclose at the meeting that this restriction applies to them.  A failure to comply with these requirements is a criminal offence under section 106 of the Local Government Finance Act 1992. 

 

(3)       Members are also welcome to disclose interests which are not disclosable pecuniary interests but which they consider should be made in the interest of clarity.

 

(4)       Officers must disclose interests in accordance with Council Standing Order 44.

 

Minutes:

No disclosures of interest in matters under consideration were received.

 

 

34.

MINUTES

Recommended –

 

That the minutes of the meeting held on 21 January 2021 be signed as a correct record (previously circulated).

 

(Fatima Butt – 01274 432227)

Minutes:

Resolved –

 

That the minutes of the meeting held on 21 January 2021 be signed as a correct record.

 

 

35.

INSPECTION OF REPORTS AND BACKGROUND PAPERS

(Access to Information Procedure Rules – Part 3B of the Constitution)

 

Reports and background papers for agenda items may be inspected by contacting the person shown after each agenda item.  Certain reports and background papers may be restricted. 

 

Any request to remove the restriction on a report or background paper should be made to the relevant Strategic Director or Assistant Director whose name is shown on the front page of the report. 

 

If that request is refused, there is a right of appeal to this meeting. 

 

Please contact the officer shown below in advance of the meeting if you wish to appeal. 

 

(Fatima Butt - 01274 432227)

 

Minutes:

There were no appeals submitted by the public to review decisions to restrict

documents.

 

36.

WEST YORKSHIRE PENSION FUND AUDIT STRATEGY MEMORANDUM FOR THE YEAR ENDING 31 MARCH 2021 pdf icon PDF 110 KB

The External Auditor will report on the Audit Strategy Memorandum (Document “AC”) which sets out the plan for the external audit of the Pension Fund for the year ended 31 March 2021.

 

The document:

·         describes the approach to the audit of the Pension Fund’s financial statements;

·         includes the assessment of the significant risks of material misstatement in the financial statements; and

·         outlines the proposed testing strategy to address the identified risks.

 

Recommended-

 

That the Governance and Audit Committee considers and approves the Audit Strategy Memorandum for the West Yorkshire Pension Fund for 2020/21.

 

                                                                        (Sharon Liddle – 07881 283343)

 

 

 

Additional documents:

Minutes:

The External Auditor reported on the Audit Strategy Memorandum (Document “AC”) which set out the plan for the external audit of the Pension Fund for the year ended 31 March 2021.

 

The document:

·         described the approach to the audit of the Pension Fund’s financial statements;

·         included the assessment of the significant risks of material misstatement in the financial statements; and

·         outlined the proposed testing strategy to address the identified risks.

It was reported that the audit had identified significant risks of material misstatement relating to:

·         management override of controls, which is common to all entities subject to audit;  and

·         the high degree of estimation uncertainty relating to the fair of level 3 investments.

The External Auditor reported that the findings in relation to these risks would be presented to the Governance and Audit Committee through the Audit Completion Report.

Members sought further clarification on a number areas which included level 3 investments and whether their would be an increased risk to the cash flow of the Scheme due to covid.  

Resolved-

 

That the Governance and Audit Committee considered and approved the Audit Strategy Memorandum for the West Yorkshire Pension Fund for 2020/21.

 

Action:  External Audit

 

                                                           

 

37.

TREASURY MANAGEMENT STRATEGY 2021-22 pdf icon PDF 790 KB

The Director of Finance will submit Document “AD” which reports on the Council’s 2021-22 Treasury Management Strategy which covers two main areas:

 

Capital issues

·       the capital expenditure plans and the associated prudential indicators;

·       the minimum revenue provision (MRP) policy.

 

Treasury management issues

·       the current treasury position;

·       treasury indicators which limit the treasury risk and activities of the Council;

·       prospects for interest rates;

·       the borrowing strategy;

·       policy on borrowing in advance of need;

·       debt rescheduling;

·       the investment strategy;

·       creditworthiness policy; and

·       the policy on use of external service providers.

 

Recommended-

 

That the report (Document “AD”) be noted and referred to Council for adoption.

 

                                                                        (David Willis – 01274 432361)

 

 

Minutes:

The Director of Finance submitted Document “AD” which reported on the Council’s 2021-22 Treasury Management Strategy which covered two main areas:

 

Capital issues

·       the capital expenditure plans and the associated prudential indicators;

·       the minimum revenue provision (MRP) policy.

 

Treasury management issues

·       the current treasury position;

·       treasury indicators which limit the treasury risk and activities of the Council;

·       prospects for interest rates;

·       the borrowing strategy;

·       policy on borrowing in advance of need;

·       debt rescheduling;

·       the investment strategy;

·       creditworthiness policy; and

·       the policy on use of external service providers.

 

Members sought clarification in certain areas such as what was classed as prudent in annual capital financing costs, what was being undertaken to ensure big projects did not fail, importance of invest to save schemes such as investing in street lighting which would lead to reduction in energy costs, benefits of short term and long term loans and best organisations to borrow from and borrowing in advance of need.

 

It was confirmed that the authority did not invest in speculative investments undertaken by other authorities and only undertook investment where there was an element of regeneration.

 

Resolved-

 

That the report (Document “AD”) be noted and referred to Council for adoption.

 

Action:  Director of Finance

 

                                                           

 

38.

MINUTES OF WEST YORKSHIRE PENSION FUND (WYPF) LOCAL PENSION BOARD MEETINGS HELD ON 15 DECEMBER 2020 pdf icon PDF 218 KB

The role of the Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 is to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the LGPS.

 

City of Bradford Metropolitan District Council (the Council), as Scheme Manager, as defined under section 4 of the Public Service Pensions Act 2013, has delegated legal and strategic responsibility for West Yorkshire Pension Fund (WYPF) to the Governance and Audit Committee.

 

The minutes of the WYPF Pension Board meetings held on 15 December 2020 are submitted to this Committee (Document “AE”).

 

Recommended –

 

That the minutes of the West Yorkshire Pension Fund Pension Board meetings held on 15 December 2020 be considered.

 

                                                            (Caroline Blackburn - 01274 434523)

 

Minutes:

The role of the Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 is to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the LGPS.

 

City of Bradford Metropolitan District Council (the Council), as Scheme Manager, as defined under section 4 of the Public Service Pensions Act 2013, has delegated legal and strategic responsibility for West Yorkshire Pension Fund (WYPF) to the Governance and Audit Committee.

 

The minutes of the WYPF Pension Board meetings held on 15 December 2020 submitted to this Committee (Document “AE”).

 

Resolved –

 

That the minutes of the West Yorkshire Pension Fund Pension Board meetings held on 15 December 2020 were considered.

 

                                                           

39.

MINUTES OF WEST YORKSHIRE PENSION FUND (WYPF) JOINT ADVISORY GROUP HELD ON 28 JANUARY 2021 pdf icon PDF 588 KB

The Council’s Financial Regulations requires the minutes of meetings of the WYPF be submitted to this Committee.

 

In accordance with this requirement, the Director of West Yorkshire Pension Fund will submit  Document “AF” which reports on the minutes of the meeting of the WYPF Joint Advisory Group held on 28 January 2021.

 

Recommended –

 

That the minutes of the West Yorkshire Pension Fund Joint Advisory Group held on 28 January 2021be considered.

 

                                                (Rodney Barton – 01274 432317)

 

Minutes:

The Council’s Financial Regulations requires the minutes of meetings of the WYPF be submitted to this Committee.

 

In accordance with this requirement, the Director of West Yorkshire Pension Fund submitted  Document “AF” which reported on the minutes of the meeting of the WYPF Joint Advisory Group held on 28 January 2021.

 

In relation to a Members query it was reported that a review of the Investment Strategy was currently being conducted.

 

Resolved –

 

That the minutes of the West Yorkshire Pension Fund Joint Advisory Group held on 28 January 2021 were considered.

 

                                               

40.

EXCLUSION OF THE PUBLIC

Recommended –

 

That the public be excluded from the meeting during the

consideration of the items relating to minutes of the West

Yorkshire Pension Fund Investment Advisory Panel meeting

held on 28 January 2021 because the information to be considered is exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972.  It is also considered that it is in the public interest to exclude public access to this item.

 

Minutes:

Resolved –

 

That the public be excluded from the meeting during the

consideration of the items relating to minutes of the West

Yorkshire Pension Fund Investment Advisory Panel meeting

held on 28 January 2021 because the information to be considered is exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972.  It is also considered that it is in the public interest to exclude public access to this item.

 

41.

MINUTES OF WEST YORKSHIRE PENSION FUND (WYPF) INVESTMENT ADVISORY PANEL HELD ON 28 JANUARY 2021

The Council’s Financial Regulations requires the minutes of meetings of the WYPF be submitted to this Committee.

 

In accordance with this requirement, the Director of West Yorkshire Pension Fund will submit  Not for Publication Document “AG” which reports on the minutes of the meeting of the WYPF Investment Advisory Panel held on 28 January 2021.

 

Recommended –

 

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 28 January 2021 be considered.

 

                                                (Rodney Barton – 01274 432317)

 

Minutes:

The Council’s Financial Regulations requires the minutes of meetings of the WYPF be submitted to this Committee.

 

In accordance with this requirement, the Director of West Yorkshire Pension Fund submitted  Not for Publication Document “AG” which reported on the minutes of the meeting of the WYPF Investment Advisory Panel held on 28 January 2021.

 

Resolved –

 

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 28 January 2021 were considered.