Minutes of Finance Committee on 24th July 2024

AGENDA

PARISH COUNCIL FINANCE COMMITTEE

WEDNESDAY 24 JULY 2024 AT 9.30AM

STAKEFORD AND BOMARSUND SPORTS AND SOCIAL WELFARE CENTRE

Agenda

1. Apologies for absence – Members are reminded of the importance to submit apologies for non-attendance and of the need for the meeting to consider acceptance of these apologies.
2. Members will identify any declarations of disclosable pecuniary and other registerable interest(s).
3. Public Questions (Please read note)
4. To receive and agree as a true record the minutes of the meeting held on 5 June 2024.
5. Matters arising
6. Financial Performance to the end of the financial quarter. Members will be asked to consider financial performance for the period April to June 2024.
7. Liddells Field. Members will receive the recommendation from the working group investigating the lifting overlay on Liddells Field

Agenda, Part 2 

 Members will be asked to consider under Standing Order 3, that in view of the special and confidential nature of the business to be transacted, it is advisable in the public interest that the press and public be excluded and asked to withdraw.

1. Any items referred from part 1. for consideration.

• Members will consider requests for grants from community groups.

Notes to be read in connection with Agenda Items 2 and 3

Note for the Public – Members of the public may attend but access will be on a first come first served basis.  Public questions can be notified to the Parish Clerk before 4pm on day preceding the meeting and will be read out in the meeting during the public session.  As usual, it is not the Council’s custom to respond during the public session.  Where appropriate the Chairman will inform the resident of the action to be taken, that is, passed to a committee; go on the next agenda; or the points will be taken into consideration if already on the agenda

Note re Declarations of interest – Members are required to disclose personal and prejudicial interests relating to any 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 if it only becomes apparent to the member during the meeting.

If a member who has declared a personal interest then considers the interest to be prejudicial he/she shall declare that, and, after making any representations, answering questions or giving evidence relating to the business, the member shall withdraw from the room for the remainder of the item to which the interest relates.

Angela Brindley

Parish Clerk/Responsible Finance Officer

11 July 2024

MINUTES OF A MEETING OF CHOPPINGTON PARISH COUNCIL FINANCE COMMITTEE HELD ON WEDNESDAY 24 JULY  IN THE PARISH COUNCIL OFFICES

THOSE ATTENDING:

Cllr H Allsopp

Cllr G Huntley

Cllr J Rowell (Chair)

Cllr P S Vaughan

Cllr L Watson

IN ATTENDANCE:

Mrs A Brindley Parish Clerk/Responsible Finance Officer

AGENDA PART 1

F010/24         1.         APOLOGIES FOR ABSENCE.

The following apologies were received:  Cllr J Foster (family commitment), Cllr K Burn (prior commitment) and Cllr A Iley (out of area). The meeting agreed that these were proper reasons for absence.

F011/24         2.         MEMBERS DECLARATION OF DISCLOSABLE PECUNIARY AND OTHER REGISTERABLE INTEREST(S).

No declarations were made.

F012/24        3.         PUBLIC QUESTIONS.

There were no questions from the public

F013/24         4.         TO RECEIVE AND AGREE AS A TRUE RECORD THE MINUTES  OF THE MEETING HELD ON 5^th JUNE 2024

The minutes were agreed, and the Chairman was approved to sign them as correct

F014/24         5.         MATTERS ARISING

The Clerk advised that the credit card is still outstanding.

F015/24         6.         FINANCIAL PERFORMANCE TO THE END OF THE FINANCIAL QUARTER.

The Finance Officer reported on expenditure and income undertaken during the first 3 months.  Members were given explanations for exceptional variances.

RESOLVED:  Members noted the explanations and thanked the RFO for the report.

F016/24         10.       Liddells Field.  The Parish Clerk advised that the working group are unable to meet on Monday 29^th, but offered a site visit to members after the meeting.

RESOLVED: Members of the Finance Committee to attend a site visit to Liddells Field on conclusion of the Finance meeting.

AGENDA – PART 2.

Members considered under Standing Order 3, that in view of the special and confidential nature of the business to be transacted, it was advisable in the public interest that the press and public be excluded and asked to withdraw.

No Agenda items under Part 2

There being no further business the meeting ended 10.00am

 Signed by the Chairman: …………………………………………….               Date:  …………………..

 ITEM 4 minutes of previous meeeting

MINUTES OF A MEETING OF CHOPPINGTON PARISH COUNCIL FINANCE COMMITTEE HELD ON WEDNESDAY 5 JUNE 2024 IN THE PARISH COUNCIL OFFICES

THOSE ATTENDING:

Cllr H Allsopp
Cllr K Burn
Cllr A Iley
Cllr J Rowell (Chair)
Cllr P S Vaughan
Cllr L Watson

IN ATTENDANCE:

Mrs A Brindley Parish Clerk/Responsible Finance Officer, Mr D L Nicholson Deputy Parish Clerk, Mr D Iley Finance Officer

AGENDA PART 1

F001/24 1. APOLOGIES FOR ABSENCE.

No apologies received

F002/24 2. MEMBERS DECLARATION OF DISCLOSABLE PECUNIARY AND OTHER REGISTERABLE INTEREST(S).

No declarations were made.

F003/24 3. Public Questions.

There were no questions from the public

F004/24 4. ELECTION OF CHAIRMAN TO SERVE FOR THE COUNCIL YEAR
2024/25.

Cllr J Rowell was duly moved, seconded and elected to serve as Chairman of the Finance Committee for the ensuing year.

F005/24 5. ELECTION OF VICE-CHAIRMAN TO SERVE FOR THE COUNCIL
YEAR 2024/25.

Cllr H Allsopp was duly moved, seconded and elected to serve as Vice-Chairman of the Finance Committee for the ensuing year.

F006/24 6. MINUTES OF THE FINANCE MEETING OF 27 MARCH 2024.

Members agreed them as a true record

F007/24 7. MATTERS ARISING

F025/23.5. The Parish Clerk confirmed that the Council was awaiting the credit card.

F008/24 8. TERMS OF REFERENCE

The Parish Council highlighted that items 5.9, 5.10 and 6 have been inserted into the Terms of Reference.
Members approved the changes and accepted the Terms of Reference.

F009/24 9. INTERNAL AUDIT.

The Parish Clerk presented a report addressing the comments from the internal audit report (Appendix 1). Members were satisfied that the audit had been completed thoroughly and welcomed the comments in the auditor report which had provided a new perspective that had prompted the re-examination.

RESOLVED:
i. Members were reassured that the process that the Council uses to determine the level of insurance/self-insurance was adequate for the demands required to replace and repair existing fixed assets for 2024/25.
ii. Members were mindful that the transfer of the assets at Cleaswell Park from NCC later in the year would require additional insurance cover.
iii. That the Parish Clerk investigate costs of insurance with increased level of cover for assets as part of the Parish Council’s management of risk at the appropriate time.

AGENDA – PART 2.
Members considered under Standing Order 3, that in view of the special and confidential nature of the business to be transacted, it was advisable in the public interest that the press and public be excluded and asked to withdraw.

There were no items for agenda part 2

There being no further business the meeting closed at 10.10 am

Signed by the Chairman: ……………………………………………. Date: …………………..

Agenda Item 8 5 June 2024
Terms of reference

Finance Committee

1. Committee: The Finance Committee is constituted as a committee of the Council.

2. Membership: All Councillors can be members with a minimum of 5 Councillors and will include the Chairman and Vice Chairman of the Council.

The quorum shall be 3 members of the Committee.

3. The Chairman (and Vice Chairman) will be elected at the first meeting of the Finance Committee following the Annual Meeting of Choppington Parish Council.

4. The Committee will meet as the workload requires, with a minimum of 3 working days’ notice given unless an extraordinary meeting is required subject to legal requirements.

5. Purpose: To oversee the Council’s financial affairs in accordance with legislative requirements, regulations and guidelines including:

i. Monitoring of income and expenditure during the financial year and where appropriate recommending actions to the Parish Council.

ii. Review of the Council’s accounting practices and systems.

iii. Preparation of annual budget and precept for recommendation to Parish Council.

iv. Review of earmarked balances including repair and replacement programme.

v. Review insurance cover

vi. Review financial regulations and make recommendations to Parish Council.

vii. Receive internal and external audit reports and arrange implementation of recommendations.

viii. To oversee all legal matters regarding leases, insurance claims, insurance cover, loans, insurance cover, damage to property, debt recovery and make recommendations to Parish Council.

ix. Reviews fees and charges

x. Oversees the procurement process

xi. To consider matters referred by the Parish Council, and to make recommendations for consideration by the Parish Council.

6. Oversees the work of the Finance Budget working group

7. Minutes: The business of the meeting is recorded as minutes and approved at next meeting. Due to the cycle of meetings, the minutes are noted at the following Parish Council meeting including recommendations for action.

8. The terms of reference to be reviewed annually by the Committee.

9. This Committee has delegated powers to act within these terms of reference. This means that on all matters not reserved for consideration by another committee, or by the full Council, this committee can make resolutions, and identify actions normally to be taken by the Parish Clerk.
Notwithstanding the powers delegated to this committee, the Council retains the right to exercise such powers when required.

Agenda Item 9
Report to Finance Committee 5 June 20024

Re Internal Audit Report

The Parish meeting of the 29 May 2024 received the year end audit report

The auditor expressed the opinion that the accounts present fairly the income and expenditure of Choppington Parish Council for the year ended 31 March 2024.

Members noted two comments raised by the internal auditor requiring further consideration by the Parish Council.
1 To request from the Council’s payroll provider a PAYE year-end report and
2 To consider whether the calculation for the repair and replacement fund is adequate for 2024/25.

This report addresses the issues:
1. The P35 report identified by the Auditor no longer exists since real time deductions in 2019. Our payroll provider Northumberland County Council has provided their March 2024 FPS and EPS to the council which identifies the deductions over the year. This report matches our figures reported in our final accounts. When discrepancies arise between the payroll deduction and the amount expected by HRMC, the Council receives a letter from HRMC advising of the discrepancy which we forward to the payroll department.

2. The Council’s earmarked balance is reported as £136,353 to cover the repair and replacement of our fixed assets of £764,662. In addition, the Council separately holds insurance to the value of £54,623.

• Each year, as part of the budget process the calculation for the sum required for repair and replacement of identified assets requires a recalculation of the replacement value of each asset, which when combined with estimates for the sum required for required maintenance. Examination of the replacement profile produces the requirement for the annual contribution from the precept.

• Not every asset will necessarily be replaced on exhaustion and some assets will be insured in respect of accidental damage whilst

• others will be self-insured. When deciding which form of insurance is to be adopted for a particular asset (or category) value-for-money is a significant consideration.

• The profiling that is undertaken annually as part of the budget setting process has provided a fund that has replaced those assets inherited from NCC of bus shelters, play areas and litter bins in the short period of 10 years. The replacement cycle of these assets will not be required for a number of years and the earmarked balance fund will increase over these years to cover the replacement.

• Comparison of budget estimates produced for members in January 2023 against the actual spend for the financial year April 2023 to March 2024 show a variance of 1.1%. This is within acceptable margins.

• Cleaswell Park is a significant asset that may come into the purview of the Parish Council during 2024-5, it has a high insurance value and will be subject to separate consideration by members during this financial year.

• Our insurance agreement is for a 3-year period ending in 2025. Consequently, the Council will be undertaking a full review of insurance during financial year 2025/26 as part of the Parish Council’s management of risk and this will inform the determination of earmarked balances and precept requirement for 2026/27.

Decision Required
Members are requested to consider the internal audit request that Members consider whether the Council’s current mix of insurance and self-insurance provides adequate cover for the Council’s current level of fixed assets

Appendix One Meeting 24 July 2024
Agenda item 6