The Director of Legal and Governance will report the names of alternate Members who are attending the meeting in place of appointed Members.

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 must consider their interests, and act according to the following:

(2)       Disclosable pecuniary interests relate to the Member concerned or their spouse/partner.

(3)       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. 

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

No disclosures of interest in matters under consideration were received.

Recommended –

That the minutes of the meeting held on 26 January 2023 be signed as a correct record.

(Kanwal Amrez – 07929 070288)

Resolved –

That the minutes of the meeting held on 26 January 2023 be signed as a correct record.

(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. 

(Kav Amrez – 07929 070288)

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

The Director of Finance and IT will submit Document “AC” which reports on the Council’s 2023-24 Treasury Strategy and Prudential Indicators.

The Council is currently required to receive and approve, as a minimum, three main treasury reports each year, which incorporate a variety of policies, estimates and actuals. 

Prudential and treasury indicators and treasury strategy - The first, and most important report is forward looking and covers:

·       the capital plans, (including prudential indicators);

·       a minimum revenue provision (MRP) policy, (how residual capital expenditure is charged to revenue over time);

·       the treasury management strategy, (how the investments and borrowings are to be organised), including treasury indicators; and

·       an investment strategy, (the parameters on how treasury investments are to be managed).

Recommended –

That the report Document “AC” be noted and referred to full Council for adoption.

        (Colin Standish - 01274 432361)

The Director of Finance and IT submitted Document “AC” which reported on the Treasury Management Strategy 2023-24, the report 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 were unclear on the benefit of Liability Benchmark and sought further clarification.

In response to Members questions it was reported that the Liability Benchmark was the third and new prudential indicator for 2023-24. The Liability Benchmark was based on the current capital plans and cash flow assumptions, which provides the Council with an indication of how much it needed to borrow, when it was likely to need to borrow, and where to match maturities to its planned borrowing needs. The Liability Benchmark made no assumption about the level of future prudential borrowing in unknown capital budgets.

Members sought further clarification on table 7, page 13 of the report relating to interest rates.

In response to Members questions it was reported that the Council had appointed Link Group as its treasury advisor and part of their service was to assist the Council to formulate a view on interest rates, according to table 7 on page 13 of report it was forecasted that the interest rates were tapering off. Further in the future, Link anticipate the Bank of England would be keen to loosen monetary policy when the worst of the inflationary pressures were behind us. The Council was maintaining an under-borrowed position. That meant that the capital borrowing need had not been fully funded with loan debt as cash supporting the Council’s reserves, balances and cash flow had been used as a temporary measure. This strategy was prudent as medium and longer dated borrowing rates were expected to fall from their current levels once prevailing inflation concerns were addressed by tighter non-monetary policy.

Resolved –

That the report Document “AC” be noted and referred to Council for adoption.

ACTION: Director of Finance and IT and Director of Legal and Governance

                                                              (Colin Standish – 01274 432361)

The External Auditor will present Document “AD” which summarises the findings from the audit of the City of Bradford Metropolitan District Council for the year ended 31 March 2022.

Recommended –

·       note the contents of the Audit Completion Report prior to approving the Statement of Accounts and

·       approve the letter of representations requested at Appendix A.

(Nicola Hallas - 07824 086 593)

The External Auditor presented Document “AD” which summarised the findings from the audit of the City of Bradford Metropolitan District Council for the year ended 31 March 2022.

The External Auditor reported that subject to the satisfactory completion of the outstanding work, and based on the areas of completed work to date, the Auditors anticipated issuing an unqualified opinion on the Council’s Statement of Accounts.

It was reported that this report was still in progress, and the work in respect of the Council’s arrangements for the year ended 31 March 2022 was yet to be completed. It was further reported that this was a national issue and effected many local authorities.

Members were keen to understand what impact further delays would have on the Council. In response it was reported that there would not be any legal consequences, however this could potentially impact the Council’s creditworthiness.

Members were also keen to understand why issues were not identified in November 2022. In response, it was reported that delays in infrastructure were not expected.

Members raised concerns regarding I.T issues reported on page 60 of the report.

Resolved –

That the Audit Completion Report be noted.

(Cameron Waddell – 01913836300)

The 2021-22 Statement of Accounts (SOA) have been externally audited and now presented to the Committee for approval. The External Auditor (Mazars) has reported their findings in a separate Audit Completion Report. Members are asked to consider this before approving the SOA.

The Director of Finance and IT will submit the report Document “AE” which presents the Council’s 2021-22 audited Statement of Accounts and summarises the key financial points.

Recommended -

That the 2021-22 Statement of Accounts are approved and signed by the Chair of the Committee.  

                                                         (Rachel Gledhill-Moseley – 07966307065)       

The Director of Finance and IT submitted report Document “AE” which presented the Council’s 2021-22 audited Statement of Accounts and summarised the key points.

Resolved –

That consideration of the 2021-22 Statement of Accounts be deferred to a future meeting.

ACTION: Director of Finance and IT

                                                   (Rachel Gledhill-Moseley – 07966307065)

The Director of Finance and IT will submit report Document “AF” which will present a proposal to introduce a new Counter Fraud Framework from April 2023 and beyond.

Recommended –

That the proposed new Counter Fraud framework and accompanying policies, strategies and plans to enhance the Council’s response to fraud and corruption be approved.

(Harry Singh/Tracey Banfield  - 07582101209 / 07582102740)

The Director of Finance and IT submitted report Document “AF” which reported on a proposal to introduce a new Counter Fraud Framework from April 2023 and beyond and to present any new and/or refreshed policies which are to be included in the framework.

The Officer reported that the Council’s Counter Fraud Policy committed to; -

·       Ensuring the people and communities of Bradford District had complete confidence that the Council’s affairs were conducted in accordance with the highest standards of probity, honesty, integrity and accountability.

·       A zero tolerance to fraud and corruption.

·       Combating fraud and corruption wherever it may arise in relation to any of the Council’s activities or services.

It was proposed that the Council introduce a Counter Fraud framework which would involve 6 interrelated Council policies, strategies and plans, setting out the Council’s collective intentions in respect of fraud and corruption, being brought together under a single framework. In order to comply with this approach, the following policies, strategies and plans had recently been subject to a refresh as follows; -

·       Counter Fraud Policy - This policy set out the Council’s high level commitment to combatting fraud and corruption and the recent refresh introduces the definitions of fraud, corruption and theft.

·       Counter Fraud Strategy - This set out the Council’s approach to combatting fraud and corruption and the recent refresh introduces the key priorities for the next two financial years using a strategic approach as recommended for Local Government in its Strategy.

·       Counter Fraud Sanctions Policy - This policy set out how the Council would apply sanctions and/or pursue criminal action, through the Courts, against those who commit offences of fraud and/or corruption. The policy commits to ensuring that sanctions were applied in a fair and consistent manner and that the sanction decision making process was stringent, robust and transparent.

·       Counter Fraud Response Plan - This plan was new for 2023 and details the most common types of fraud, corruption and theft likely to be committed against the Council, the responsibilities of all stakeholders e.g. CMT, GAC, Managers, Employees etc. How and when a council employee, elected member and/or the general public should report any concerns of fraud, corruption or theft being committed against the Council, including contact details and tips of what to do and not to do when fraud or corruption was suspected and the investigation process.

·       Anti-Bribery Policy - This policy set out the Council’s stance in relation to the criminal offence of bribery, either directly between two parties or using a third party as a conduit to channel bribes to others. The policy confirms that the Council does not, and will not, pay bribes or offer an improper inducement to anyone for any purpose, nor does it or will it, accept bribes or improper inducements or engage indirectly in or otherwise encourage bribery.

·       Anti-Money Laundering Policy - This policy set out the procedures which must be followed where money laundering was suspected within the Council.

Members were keen to understand if there were any training  ...  view the full minutes text for item 57.

The Director of Finance and IT will submit report Document “AG” which provides a review of the level of compliance by the Council’s Governance and Audit Committee (GAC) with the Chartered Institute of Public Finance and Accountancy (CIPFA) 2022 position statement on Audit Committees in Local Authorities and the Police.  The report also covers the GAC’s specific responsibilities in relation to the West Yorkshire Pension Fund (WYPF).

Recommended –

(1)  That the Governance and Audit Committee agree to implement the options from 12.1.1 to 12.1.4 detailed in Document “AG”

(2)  That the Governance and Audit Committee recommend to Council that Article 9 of the Council’s constitution be amended so that the composition of Governance and Audit Committee includes 2 Independent members, subject to a recruitment process;

(3)  That the Governance and Audit Committee recommend to Council that the recruitment process of the Independent Members be delegated to the Director of Finance and IT in consultation with the Chair of Governance and Audit Committee.

  (Mark St Romaine – 01274 432888)

The Director of Finance and IT submitted report Document “AG” the report provided a review of the level of compliance by the Council’s Governance and Audit Committee (GAC) with the Chartered Institute of Public Finance and Accountancy (CIPFA) 2022 position statement on Audit Committees in Local Authorities and the Police. The report also covered the GAC’s specific responsibilities in relation to the West Yorkshire Pension Fund (WYPF).

Members sought further clarification on appendix A of the report related to Officer Assessment of Bradford Governance and Audit Committee compliance against CIPFA’s Position Statement Audit Committee in Local Authorities and Police 2022.

Members were keen on additional training on Governance and Audit due to it being a complex committee. In response the Officer advised that he would work to identify issues and look into making training available for groups of individual training.

Members sought further clarification on how scoring was carried on the officer assessment of Bradford Governance and Audit Committee and actions need to be taken in order to improve scoring.

In response it was reported that in order to make positive changes to improve scoring, the Committee would need to achieve full compliance with the CIPFA guidance. An annual evaluation to be undertaken to assess whether the GAC is fulfilling its terms of reference and that adequate consideration has been given to all core areas. This should include examining how GAC is adding value to the organisation.

Members discussed options of co-opted members and independent members and requested more information on this.

Resolved –

(1)   That the Governance and Audit Committee agree to implement the options from 12.1.1 to 12.1.4 detailed in Document “AG”.

(2)  That the Governance and Audit Committee recommend to Council, for Article 9 of the Council’s constitution to be amended so that the composition of the Governance and Audit Committee includes either non-voting Independent members or a non-voting Independent Advisor.  That the proposal is supported by a report detailing the advantages and disadvantages of the alternatives.

(3)   That the Governance and Audit Committee recommend to Council that the recruitment process of the Independent Members be delegated to the Director of Finance and IT in consultation with the Chair of Governance and Audit Committee.

ACTION: Director of Finance and IT and Director of Legal and Governance

                                                   (Mark St Romaine – 01274 4328888)

The Managing Director of West Yorkshire Pension Fund will submit Document “AH” which reports on the minutes of the WYPF Pension Board meeting held on 18 October 2022.

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 Local Government Pension Scheme.

Recommended –

That the minutes of West Yorkshire Pension Fund (WYPF) Local Pension Board meetings held on 18 October 2022 be noted.

(Matt Mott - 07815 476877)

The Managing Director of West Yorkshire Pension Fund submitted “Document AH” which reported on the minutes of the WYPF Pension Board meeting held on 18 October 2022.

Resolved -

That the minutes of West Yorkshire Pension Fund (WYPF) Local Pension Board meetings held on 18 October 2022 be noted.

                                                                   (Matt Mott - 07815 476877)

The Council’s Financial Regulations require the minutes of meeting of the WYPF Joint Advisory Group to be submitted to this committee.

In accordance with this requirement, the Director of West Yorkshire Pension Fund will submit “Document “AI” which reports on the minutes of the meeting of the WYPF Joint Advisory Group held on 26 January 2023.

Recommended –

That the minutes of the West Yorkshire Pension Fund Joint Advisory Group held on 26 January 2023 be noted.

(Euan Miller – 01274 434517)

The Director of West Yorkshire Pension Fund submitted “Document “AI” which reported on the minutes of the meeting of the WYPF Joint Advisory Group held on 26 January 2023.

Resolved –

That the minutes of the West Yorkshire Pension Fund Joint Advisory Group held on 26 January 2023 be noted.

(Euan Miller – 01274 434517)

WYPF must maintain a Funding Strategy Statement in accordance with the Local Government Pension Scheme Regulations 2013. The report of the Director of the West Yorkshire Pension Fund (Document “AJ”) explains that the statement must be kept under review and, after consultation with such persons as are considered appropriate, make such revisions as are appropriate following a material change in its policy. 

It is customary for each Local Government Pension Scheme fund to update its Funding Strategy Statement (FSS) as part of the triennial actuarial valuation process, which needs to be completed by 31 March 2023. Approval of the FSS is required to enable the Rates and Adjustment certificate to be signed by WYPF’s Actuary by 31 March 2023 as part of the 2022 valuation process.

Recommended –

That the changes to the Funding Strategy Statement be approved as detailed in Document “AJ”.

(Euan Miller – 01274 434517)

The Director of the West Yorkshire Pension Fund submitted Document “AJ” which explained that the statement must be kept under review and, after consultation with such persons as were considered appropriate, make such revisions as were appropriate following a material change in its policy.

It was customary for each Local Government Pension Scheme fund to update its Funding Strategy Statement (FSS) as part of the triennial actuarial valuation process, which needed to be completed by 31 March 2023. Approval of the FSS is required to enable the Rates and Adjustment certificate to be signed by WYPF’s Actuary by 31 March 2023 as part of the 2022 valuation process.

Resolved –

That the changes to the Funding Strategy Statement as detailed in Document “AJ” be approved.

ACTION: Director of West Yorkshire Pension Fund

                                                                 (Euan Miller – 01274 434517)

Recommended –

That the public be excluded from the meeting during the consideration of the item relating to minutes of the West Yorkshire Pension Fund Investment Advisory Panel meeting held on 27 October 2022 and 26 January 2023 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.

The Council’s Financial Regulations require the minutes of meeting of the WYPF Investment Advisory Panel to be submitted to this committee.

In accordance with this requirement, the Director of West Yorkshire Pension Fund will submit Not for Publication “Document “AK” which reports on the minutes of the meeting of the WYPF Investment Advisory Group held on 27 October 2022.

Recommended –

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 27 October 2022 be considered.

(Euan Miller – 01274 434517)

The Director of West Yorkshire Pension Fund submitted Not for Publication “Document “AK” which reported on the minutes of the meeting of the WYPF Investment Advisory Group held on 27 October 2022.

Resolved –

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 27 October 2022 be noted.

(Euan Miller – 01274 434517)

The Council’s Financial Regulations require the minutes of meeting of the WYPF Investment Advisory Panel to be submitted to this committee.

In accordance with this requirement, the Director of West Yorkshire Pension Fund will submit Not for Publication “Document “AL” which reports on the minutes of the meeting of the WYPF Investment Advisory Group held on 26 January 2023.

Recommended –

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 26 January 2023 be considered.

(Euan Miller – 01274 434517)

The Director of West Yorkshire Pension Fund submitted Not for Publication “Document “AL” which reported on the minutes of the meeting of the WYPF Investment Advisory Group held on 26 January 2023.

Resolved –

That the minutes of the West Yorkshire Pension Fund Investment Advisory Panel held on 26 January 2023 be noted.

                                                                 (Euan Miller – 01274 434517)