Cyflwyniad Trosolwg o Reolau Gweithdrefn Ariannol y Cyngor
Cofnodion:
The Service Director Finance & Improvement Services introduced the presentation and outlined the purpose of the update was to raise awareness of the content of the Council’s Financial Procedure Rules and to support the role of the Governance and Audit Committee to effectively fulfil its terms of reference. The Service Director also set the context for the update in relation to the scheme of delegation framework in place within the Council.
Members were reminded that the purpose of the Financial Procedure Rules is to provide a framework for managing the Authority’s financial affairs and the key roles were outlined along with an overview of the 5 areas included within the Rules: Financial Management; Financial Planning; Risk Management and Control of Resources; Financial Systems and Procedures; and External Arrangements.
At this point in the presentation, Members of the Governance and Audit Committee were provided with the opportunity to ask questions.
In response to a query regarding the management of reserves being invested in areas that would maximise profit and also investment in fossil fuel companies, the Service Director Finance & Improvement Services fed back that with regard to the Council’s use of specific reserves, the aim is to ensure best value and to maximise the positive impact from the utlisation of the funds in line with the purpose that they have set aside for. The Service Director added that with regard to investment in fossil fuel companies, this is an area of responsibility for the Rhondda Cynon Taf Pension Fund, outside of the remit of the Governance and Audit Committee, and assured Members that as part of the Pension Fund’s governance arrangements, the Fund is committed to responsible investment factors in terms of environmental, social and governance, as part of the overriding principle of obtaining the best possible financial return.
The Group Audit Manager continued the presentation by providing some examples of how the Financial Procedure Rules are linked to audit assignments. The examples discussed were divided into systems based audit assignments and establishment based audit assignments.
The following key headlines were presented during this section:
Systems Based Audit Assignments– Examples
o Budgetary Control
o Asset Management
o School Budgets
o Pensions / Payroll
Establishment Based Audit Assignments – Examples
o Primary Schools
o Comprehensive / All Through Schools
o Leisure Centres
o Day Centres / Homes for the Elderly
The Group Audit Manager also outlined some general principles and good practice in relation to the Financial Procedure Rules.
Members were invited to ask questions related to this section of the presentation and positive comments were made regarding the process of segregation of duties amongst officers as part of strengthening checking processes. One Member queried the Asset Register and asked Officers for details of any procedure in place to account for changes in the value of the Council’s assets. The Service Director Finance & Improvement Services advised Members that the assets within the Council’s Asset Register are reviewed on a rolling and scheduled basis, for example, every 5 years, by an external and independent party, and any changes in the value of assets are reflected within the Council’s Balance Sheet. Another Member requested assurance around the replacement arrangements in place for the Council’s assets. The Service Director provided examples of replacement arrangements in respect of the Council’s fleet of vehicles and leisure centre equipment, where current and future requirements are regularly reviewed, resources set aside and consideration given to the most cost effective approach for acquiring assets, for example, outright purchase or lease.
The Chair thanked the Officers for the presentation and responses provided to the questions posed by Members.
The Governance and Audit Committee RESOLVED:
To note the update provided.