The Interim 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 were received.

Recommended –

That the minutes of the meetings held on 8 and 23 January 2025, be signed as a correct record (previously circulated).

(Farzana Mughal – 07811 504164)

Resolved –

That the minutes of the meetings held on 8^th and 23^rd January 2025, 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. 

(Farzana Mughal - 07811 504164)

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

The Interim Director, Finance will submit a report (Document “AK”) which sets out the Council’s Treasury Management Strategy for 2025/26 and covers:

1.    Capital spending including Minimum Revenue Provision (MRP);

2.    Borrowing and debt reduction strategy;

3.    Managing cash balances

4.    Prudential indicators.

Recommended that the Governance and Audit Committee scrutinise the Treasury Management report and recommend that the Executive recommends the following to Council:

a)    Approve the Treasury Management Strategy for 2025/26, which includes:

·         the Minimum Revenue Provision Policy Statement for 2025/26 (Appendix 1).

·         the Annual Investment Strategy for 2025/26 (Appendix 2).

b)   Approve the Prudential Indicators set out in the Treasury Management Strategy, which demonstrate that the Council’s capital investment plans are affordable, prudent and sustainable (the Prudential Indicators are summarised in Section 4).

c)    Agree that future loans to third parties to be charged at a minimum interest rate to cover all the Council’s capital financing costs in providing the loan, namely MRP and interest plus 1% for risk (paragraph 88 of the TMS).

(Steve Mair

The Interim Director, Finance submitted a report (Document “AK”) which sets out the Council’s Treasury Management Strategy for 2025/26, outlining the Council’s approach to capital spending, borrowing, investment, and financial risk management.

The Committee was asked to scrutinise the report and recommend to the Executive that it be presented to Full Council for approval.

The Treasury Management Strategy 2025-26 was designed to ensure:

    •    Effective cash flow management.

    •    Sustainable capital investment plans.

    •    Prudent borrowing strategies aligned with affordability.

    •    Risk-aware investment management policies.

The strategy adhered to statutory guidelines, including, Local Government Act 2003, CIPFA Prudential Code and Treasury Management Code of Practice 2021 editions and MHCLG Statutory Guidance on Local Government Investments 2018, and Statutory Guidance on Minimum Revenue Provision 2024.

The Committee noted that the strategy must balance liquidity, security, and yield while ensuring the Council meets its financial obligations.

The key points discussed were as follows:

·         The Council’s capital programme was projected at £1.2 billion, requiring £163 million in additional borrowing over the coming financial year.

·         The Capital Financing Requirement (CFR) would increase in line with planned investments, necessitating a structured repayment strategy.

·         Reference was made to Table 1 (Page 6) in the report, outlined the Council’s capital investment plans, covering both ongoing and newly approved schemes.

·         The Council was implementing a capitalisation strategy, which included asset disposal to reduce debt exposure.

·         The reliance on borrowing had been reduced by £100 million through capital reallocation and asset sales.

·         The programme had been reworked to align with revenue constraints, with estimated annual capital expenditure of £140m–£150m in the early years.

·         The Council must ensure that projects were affordable, sustainable, and deliver long-term benefits.

·         As of 31^st December 2024, the Council’s total external borrowing stood at £698 million, primarily in fixed-interest loans.

·         The cash balance available for investment was £43 million.

·         The Council has had to borrow to fund the capital plan, with £20 million in new Public Works Loan Board (PWLB) borrowing undertaken in 2024-25

·         Borrowing would continue to increase, peaking at £1.188 billion by 2028/29.

·         Interest rate fluctuations pose a risk, requiring careful monitoring and adjustment.

·         The maximum long-term investment limit had been increased to £40 million to support financial flexibility.

·         Investments would prioritise Money Market Funds (MMFs) and other secure short-term instruments.

·         The number of approved counterparties had been reduced to reflect a greater focus on risk mitigation.

·          Any future loans to third parties will be subject to a minimum interest rate covering MRP and financing costs.

·         The Liability Benchmark model would be used to assess the optimal borrowing levels and repayment schedules.

·         Current forecasts indicated that borrowing will exceed the CFR in 2028-29 and 2029-30, highlighting long-term financial sustainability concerns.

·         The local authority lending market remained restricted, impacting short-term investment opportunities.

·         The Council must balance liquidity requirements against potential returns.

A member questioned why school fees were included in the inflation basket, given that they affect only a small portion of residents. Officers confirmed that CPI calculations follow national standards, which include  ...  view the full minutes text for item 60.

The External Auditor will present a report (Document “AL”) which summarises the findings and concludes the audit of the Council’s financial statements for the year ended 31 March 2024. The Audit Completion Report (Appendix A) sets out the external audit work undertaken and summarises audit findings on City of Bradford Metropolitan District Council (CBMDC) for the year ended 31 March 2024. The Audit report for West Yorkshire Pension Fund (WYPF) (Appendix B) summarises the external audit work undertaken for the WYPF in 2023-24, which forms part of the CBMDC audit conclusion.

Recommended –

That the members of the Committee note and approve the report (Document “AL”)

                                                             (Celia Yang - 07977 814829)

The External Auditor presented a report (Document “AL”) which summarised the findings and concludes the audit of the Council’s financial statements for the year ending 31^st March 2024.

The Committee received the Audit Completion Report for the financial year ending 31^st March 2024, detailing findings from the external audit of the Council’s financial statements and value-for-money assessments. The Chair invited the auditors to present their findings, providing a progress update on the final stages of the audit.

The summary of audit findings included:

·         The external audit was substantially completed, with only a few outstanding queries being finalised.

·         The final audit opinion was expected to be issued on Thursday, following completion of final document checks.

·         The Committee was reminded that statutory deadlines were approaching, but the Council had worked diligently to ensure timely completion.

·         The auditors commended the Council’s finance team for their cooperation and efficiency in providing required information.

·         The ability to progress the audit within the given timeframe was noted as a significant achievement, particularly given the late completion of the 2022/23 audit in November 2024.

The Audit Completion Report identified several key areas of focus and associated findings:

·         For the first time, the Council had to include group accounts and housing revenue accounts in its financial statements. This posed additional challenges for both the finance team and external auditors, but the work had been successfully completed.

·         The auditors reviewed material misstatements and control weaknesses as outlined in Section 5 of the report.

·         Two key recommendations were issued based on completed work.

·         Progress on prior-year recommendations was also assessed, though given the timing of the previous audit, limited time had been available for full implementation.

·         Section 6 of the report detailed adjustments made to the financial statements.

·         Any unadjusted misstatements were considered immaterial and did not affect the overall audit opinion.

·         The adjustments were categorised as presentation changes rather than substantive financial issues.

·         The auditors noted no new issues regarding value-for-money weaknesses, but significant weaknesses from previous years remained.

·         Key areas of concern included: progress on Children’s Services improvements, long-term financial sustainability and budget pressures, and the Council had made progress, but further improvements were required, which would be reassessed in the 2024/25 audit.

A member questioned the issue of an incorrect bank statement balance, which was highlighted on Page 21 of the report. The auditors acknowledged that systems were in place to address this issue, but oversight weaknesses had contributed to the error. Management had committed to strengthening quality assurance processes to prevent similar occurrences in future years. It was noted that delays in previous audits had impacted the ability to fully implement control recommendations, but with the backlog now cleared, improvements were expected.

A member raised concerns regarding the timing of financial close-down processes, given the delays in prior-year audits. The auditors confirmed that the compressed timeframe had created challenges but expressed confidence that future audits would be more streamlined. The Council’s finance team was now in a stronger position to meet reporting deadlines.

Clarification  ...  view the full minutes text for item 61.

The Interim Director, Finance will submit a report (Document “AM”) which presents the Statement of Accounts 2023 – 2024. The report also provides a brief detail the key financial points from the accounts.

Recommended –

1)    That the 2023-24 statement of accounts are approved by the Governance and Audit Committee.

2)    Any subsequent changes that may need to be made are delegated to the S151 Officer in consultation with the Chair for approval and signing.

To be actioned by: Interim Director, Finance

(Celia Yang - 07977 814829)

The Interim Director, Finance submitted a report (Document “AM”) which presented the Statement of Accounts 2023 – 2024. The report also provided a brief detail the key financial points from the accounts.

The Committee received the 2023-24 Statement of Accounts, outlining the Council’s financial position and key financial statements for the year ending 31 March 2024. The report also included details of financial adjustments and audit findings following the external audit process.

The Chair invited the Director of Finance to present the report. The following points were highlighted:

• The Accounts and Audit Regulations 2015 set out the statutory requirements for producing and publishing annual accounts.
• The Council published its draft Statement of Accounts on 22^nd November 2024.
• The final accounts were subject to external audit between January and February 2025.

The Committee was informed of key financial highlights from the 2023-24 accounts:

• The Council overspent by £80 million, which was covered by the Capitalisation Direction.
• Upon final sign-off of the accounts, the Council would seek approval from MHCLG to formalise the Capitalisation Direction.
• Usable reserves (excluding Capital Receipts and Capital Grants) totalled £141.4 million, a decrease of £29.7 million from the previous year.
• Council reserves stood at £93.2 million, including, £39.6 million General Fund balance (held for unexpected expenditure). £15.5 million revenue grant reserves. £38 million earmarked for service-specific use. £48 million was drawn from reserves in line with the 2023-24 budget.
• The Council invested £178.7 million in long-term assets as part of its Capital Programme.
• Funding sources included, £5.5 million from revenue contributions and reserves. £93.6 million from grants and external funding. £78.7 million from borrowing. £77.8 million in future capital grants was held for projects in upcoming years.
• The Council’s Capital Financing Requirement (CFR) was £907.6 million at year-end. This included: £129.3 million in Private Finance Initiative (PFI) and lease liabilities. £171.3 million in temporary borrowing from earmarked reserves, reducing interest costs. £607 million in Public Works Loan Board (PWLB) and market loans.
• The Council’s total asset value (£1.005 billion) exceeded its outstanding borrowing.
• The Council’s total non-current asset value was £1.045 billion, a £52 million decrease from the previous year.
• Asset revaluations resulted in a £99 million reduction in property values, affecting buildings, parkland, and investment properties.
• Depreciation charges amounted to £39.2 million, reflecting the use of operational assets.
• The Council’s net pension assets stood at £53 million. This included: Teachers’ Pension Scheme liabilities of £54 million. Local Government Pension Scheme (LGPS) net assets of £107 million.
• LGPS valuation changes resulted in actuarial gains, improving the Council’s pension position.
• The Council Tax collection fund ended with a surplus, while the Business Rates fund recorded a deficit.
• The Council’s share of the Business Rates deficit was £0.497 million, with the Government holding £0.507 million.
• Section 31 grants covered the deficit, ensuring no budgetary shortfall.

Members noted that the audit was completed successfully, with an unqualified audit opinion expected. One minor misstatement of £60,000 was identified but not adjusted, as it was deemed immaterial. Asset revaluation adjustments and  ...  view the full minutes text for item 62.

The Interim Director, Legal and Governance will present a report (Document “AN”) which will provide Members with proposed amendments to the Constitution should Council agree to the recommendation from the Regulatory and Appeals Committee that the two existing Area Planning Panels (Keighley, Ilkley and Shipley (previously known as Keighley and Shipley)  and Bradford Area Panels) be amalgamated to form one single Planning Panel to be effective from the beginning of the municipal year 2025-2026 and comprising 12 Members with the quorum of the new single Planning Panel being 7 Members.

Recommended –

1)    That it be recommended to Council that the proposed amendments to Article 8 of the Constitution as set out in Appendix 1 be adopted should Council agree to the recommendation of the Regulatory and Appeals Committee to amalgamate the two existing Area Planning Panels to form one single Planning Panel.

2)    That it be recommended to Council that the proposed amendments to Part 4B of the Constitution, the Member and Officer Planning Code of Conduct as set out in Appendix 2 be adopted, should Council agree to the recommendation of the Regulatory and Appeals Committee to amalgamate the two existing Area Planning Panels to form one single Planning Panel.

3)    That the Interim Director of Legal and Governance be granted delegated authority to make consequential amendments to the Constitution as a result of any recommendations approved by full Council.

4)    That the Interim Director of Legal and Governance ensures that any agreed amendments are implemented.

(Jason Field - 07890 416571)

The Interim Director, Legal and Governance presented a report (Document “AN”) which provided Members with proposed amendments to the Constitution should Council agree to the recommendation from the Regulatory and Appeals Committee that the two existing Area Planning Panels (Keighley, Ilkley and Shipley (previously known as Keighley and Shipley)  and Bradford Area Panels) be amalgamated to form one single Planning Panel to be effective from the beginning of the municipal year 2025-2026 and comprising 12 Members with the quorum of the new single Planning Panel being 7 Members.

The Chair invited the Interim Director of Legal and Governance to present the report. The following points were highlighted:

·    The Regulatory and Appeals Committee, at its meeting on 5^th December 2024, recommended to Full Council that the two existing Area Planning Panels be merged into a single Planning Panel.

·    If approved, the new Planning Panel would take effect from the beginning of the municipal year 2025-26.

·    The new Planning Panel would comprise 12 members, with a quorum of 7 members.

·    As a result, consequential amendments to the Constitution were required, specifically, Article 8 of the Constitution, Part 4B – The Member and Officer Planning Code of Conduct, and the Governance & Audit Committee was tasked with reviewing the proposed changes before submission to Full Council.

·    Article 14 of the Constitution grants the Monitoring Officer authority to make minor constitutional amendments, but substantive changes required Full Council approval.

·    Article 17 of the Constitution requires the Monitoring Officer to assess constitutional weaknesses and propose necessary improvements.

·    The amalgamation of the two Area Planning Panels was considered an efficiency measure, aimed at streamlining decision-making processes.

·    The Regulatory and Appeals Committee also requested a review of the Member and Officer Planning Code of Conduct, but this was acknowledged as a separate future action.

·    The proposed changes to Article 8 were set out in Appendix 1.

·    The proposed changes to Part 4B (Member and Officer Planning Code of Conduct) were detailed in Appendix 2.

·    The primary amendment was the formal merger of the two panels into one entity.

·    Additional minor wording and numbering adjustments were required to ensure consistency throughout the Constitution.

·    The costs associated with amending the Constitution would be met from existing resources.

·    The amalgamation was expected to improve administrative efficiency without generating additional financial burdens.

It was noted that the government had indicated potential changes to planning regulations, which might require further constitutional amendments in the future. Should any such national policy changes arise, the Constitution would be reviewed accordingly.

A member inquired about whether the proposed merger would have any implications for environmental considerations in planning decisions. The Interim Director, Legal and Governance clarified that the proposed amendments were purely procedural and did not affect the planning protocol itself. Any future substantive changes to planning policy would require separate consultation and review.

A member noted inconsistencies in section numbering within the Constitution (Page 229, Section 8.7.1.2). The Interim Director, Legal and Governance acknowledged that numbering adjustments were required due to the merging of  ...  view the full minutes text for item 63.

Recommended –

That the public be excluded from the meeting during the consideration of the item relating to West Yorkshire Pension Fund (WYPF) – Northen LGPS Pool (NLGPS), 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.

Resolved –

That the public be excluded from the meeting during the consideration of the item relating to West Yorkshire Pension Fund 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 Managing Director West Yorkshire Pension Fundwill present a report (Not for Publication - Document “AO”) which provides a summary of the NLGPS Business Plan, which is also being considered by the administering authorities of the other two NLGPS partner funds and the NLGPS Joint Committee.

WYPF is one of the 3 partner funds in the NLGPS, which was created to meet the asset pooling requirements in the LGPS Investment Regulations 2016.

MHCLG launched the ‘LGPS – Fit for the Future ‘consultation on 14 November 2024, which proposes a number of further criteria for pools to meet. The consultation closed on 16 January 2025.

The consultation asks each LGPS asset pool to submit a business plan to MHCLG by 1 March 2025 setting out how their pool will meet the criteria set out in the consultation by March 2026.

Recommended –

That the Committee confirms whether it approves the NLGPS Business Plan for submission to Government subject to no material amendments being proposed by the NLGPS Joint Committee at its meeting on

27 February.

(Euan Miller – 01274 434517)

Resolved –

That the Governance and Audit Committee approves the NLGPS Business Plan for submission to Government subject to no material amendments being proposed by the NLGPS Joint Committee at its meeting on 27 February.

To be actioned by: The Managing Director, West Yorkshire Pension Fund

(Euan Miller – 01274 434517)