Agenda and minutes

Venue: Committee Room - 2nd Floor West Wing, Guildhall. View directions

Contact: John Cater
tel. no.: 020 7332 1426  Email: john.cater@cityoflondon.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies for absence were received from Nick Bensted Smith, Karina Dostalova, Sophie Anne Fernandes, Alderman Robert Howard, Deputy James Thomson and Deputy Philip Woodhouse.

 

The Chairman welcomed James Tumbridge to the Committee. Mr Tumbridge had been elected to serve on the Finance Committee at the Court of Common Council meeting in June.

 

 

 ...  view the full minutes text for item 1.

2.

Members' Declarations under the Code of Conduct in respect of items on the agenda

Minutes:

Ian Seaton declared a non-pecuniary interest in respect of item 8 due to being a Member of the Livery Committee.

 

 ...  view the full minutes text for item 2.

3.

Minutes of the previous meeting pdf icon PDF 95 KB

To agree the public minutes of the meeting held on 5 June 2018.

 ...  view the full agenda text for item 3.

Minutes:

RESOLVED – That the public minutes of the meeting held on 5th June be approved as an accurate record, subject to the following amendment –

 

Hugh Morris attended the meeting; this will be amended in the minutes.

 

 ...  view the full minutes text for item 3.

4.

Report of the work of the Sub-Committees pdf icon PDF 51 KB

Report of the Town Clerk.

 ...  view the full agenda text for item 4.

Minutes:

The Committee received verbal reports of the respective Sub-Committee Chairmen which advised Members of the key discussions which had taken place during recent meetings of the Corporate Asset Sub-Committee, the Efficiency and Performance Sub Committee and the Information Technology Sub Committee.

 

RESOLVED – That the Committee noted the reports.

 ...  view the full minutes text for item 4.

5.

Chamberlain's Department Risk Management - Quarterly Report pdf icon PDF 73 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 5.

Additional documents:

Minutes:

The Committee received a report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

 

The Chamberlain and the Chairman of the Information Technology Sub-Committee both pointed to the success the IT team had made in transforming the Corporation’s IT over the previous year, noting that CR19 (IT Service Provision) had been reduced to green status at the IT Sub Committee meeting on 10th July. The risk reduction for CR16 (Information Security), from red to amber, was still under consideration after discussions at IT Sub.   

 

The Chairman requested that a discussion on CR23 (Police Funding) should take place under ITEM 6.

 

Additionally, in noting that Senior officers had proposed that CR25 (GDPR) be closed and any outstanding mitigations and actions be absorbed into the IT Security risk, some Members expressed some concern about the risk being closed due to the continued high profile of GDPR’s introduction, and Mazars’ audit report which was anticipated in September.  It was felt that, subject to receipt of the necessary assurances later in the year, the risk could then be closed.

 

RESOLVED – That the Committee noted the report.

 ...  view the full minutes text for item 5.

6.

2017/18 City Fund and Pension Fund Financial Statements pdf icon PDF 102 KB

Report of the Chamberlain

 ...  view the full agenda text for item 6.

Additional documents:

Minutes:

The Committee considered a Report of the Chamberlain concerning the 2017/18 City Fund and Pension Fund Financial Statements.

 

The Chamberlain opened the discussion by noting that, overall, the statements were positive. The City was well positioned in the short term, however, headwinds, including any negative consequences from a potentially disorderly Brexit in March 2019, and some of the major building projects coming on stream over the next couple of years, could have implications for the City’s medium term financial outlook. Members praised the Report for being readable, well presented, and a significant improvement on previous years.

 

The Deputy Chamberlain highlighted the first reduction in the pension deficit in 20 years. The City was on track to eliminate its pension deficit in 15 years, officers informed Members that this length of time was considered healthy and “normal” amongst local authorities nationally, some local authorities it was added, were still facing a 20 year plus period.

 

A Member added that, with the likelihood of interest rates rises over the next few years, there was a distinct possibility that the deficit could turn into a surplus. The Deputy Chamberlain responded that the City’s pension fund was linked to the Bank of England’s “yield curve”, so in effect reasonable rate rises were priced in. If the economic environment shifted more unexpectedly in the medium term, and monetary policy became more aggressive in response, there was the potential to overshoot the curve and that would result in a surplus. The Chairman urged caution in looking too far ahead, the Report under consideration concerned FY17/18 and it was important to keep focused on the near term.  He did however request that the actuary report that goes to the Finance Investment Board should be shared with the Finance Committee, so as to give Members a greater insight

 ...  view the full minutes text for item 6.

6a

City Fund and Pensions Fund Financial Statements - Non - Public Discussion

Minutes:

Members continued their discussion of ITEM 6 concerning the Police’s financial statements in relation to the City Fund and Pensions Fund Financial Statements.

 

Members noted that the discussion had raised a couple of queries which could stray into exemption categories 1, 2 & 3 (information relating to an individual/likely to reveal the identity of an individual and information relating to the financial or business affairs of any particular person or body) under the Local Government Act 1972 and they therefore requested members of the public to temporarily leave the room. A record of the subsequent discussion is outlined below.

 

The Chairman noted that the Town Clerk’s proposals had been the subject of rigorous debate and had only been approved after several iterations had been rejected. He expressed the concern that the City was failing in its role as the Police Authority for CoLP. He reiterated that it should not be for officers or Members to interfere with the operational independence of the Commissioner, but, the current relationship between the City and CoLP, particularly on the subject of Finance, was flawed. How we got to a better place was up for debate and there was still nuance about the future structure (including the end game of shared services) but things had to change, He emphasised that his concerns about the Police’s financial systems and checks pre dated the end of year audit - the failings were not “a new story”.

 

The Commissioner responded that he had accepted the Town Clerk’s proposals at the end of last week and ultimately wanted to avoid a broken relationship. However, the discussion at Audit and Risk Management Committee was problematic, he emphasised that he was a steward of his position and wanted to ensure his successors had the tools and independence to operate

 ...  view the full minutes text for item 6a

7.

Provisional Outturn 2017/18 pdf icon PDF 135 KB

Report of the Chamberlain

 ...  view the full agenda text for item 7.

Minutes:

The Committee received a Report of the Chamberlain concerning the provisional outturn for 2017/18.

 

The Deputy Chamberlain highlighted an error on table 3, the September figures were incorrectly shown, updated December figures were tabled.

 

Pointing to the material differences in variances between December and March, the Chairman commented that officers had to overcome a long standing cultural instinct of departments building in a cushion, it indicated that fat existed in the system. He was disconcerted by the underspending across the Corporation and reminded officers that overspending would not always result in a harsh reprimand. It would be less concerning, if, in aggregate, the budget was being met and departments had good reasons for extra spending. In addition, he informed Members that, from now on, except for carry forwards, officers will not be adjusting the budget in year; Members welcomed this development.

 

A Member requested that in future separate variances in income and variances in expenditure would be outlined in these reports.

 

RESOLVED – that the Committee noted the Report.

 ...  view the full minutes text for item 7.

8.

Committee and Members Services Team - Request for Additional Resources pdf icon PDF 86 KB

Report of the Town Clerk

 ...  view the full agenda text for item 8.

Additional documents:

Minutes:

The Committee considered a Report of the Town Clerk concerning a request for additional resources for the Committee Services team.

 

A Member was of the view that with the creation of several new Committees and working groups over the last 12 months, this request would be hard to deny. He suggested that while funding should be approved, a report presenting proposals on how this growth in Committees/working groups could be curtailed in future; the growth we had seen in the last year was unsustainable. Officers would present this to Members of the Policy and Resources Committee in the autumn.

 

A Member clarified that the secretariat for the Billingsgate Sub-Committee will be covered by the Markets Directorate so would not have a direct impact on the Committee Services Team.   

 

RESOLVED – that the Committee approved the provision of £111k this year to fund the posts from its 2018/19 contingency.

 ...  view the full minutes text for item 8.

9.

Central Contingencies pdf icon PDF 54 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 9.

Additional documents:

Minutes:

The Committee received a report of the Chamberlain which provided Members with information regarding the current balance of the Finance Committee Contingency Funds for the current year.


RESOLVED – that the Committee noted the report.

 ...  view the full minutes text for item 9.

10.

FSD Quarterly Update Report pdf icon PDF 75 KB

Report of the Chamberlain

 

 

 ...  view the full agenda text for item 10.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning the Financial Services Division’s Q1 update.

 

RESOLVED – that the Committee noted the Report.

 ...  view the full minutes text for item 10.

11.

Q1 2018/19 Budget Monitoring Report pdf icon PDF 89 KB

Report of the Chamberlain

 

 

 ...  view the full agenda text for item 11.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning budget monitoring for Q1 2018/19.

 

RESOLVED – that the Committee noted the Report

 ...  view the full minutes text for item 11.

11a

Police ICT Company financial guarantee pdf icon PDF 64 KB

Report of the Chamberlain

 ...  view the full agenda text for item 11a

Minutes:

Members received a Report of the Chamberlain concerning the Police ICT Company.

 

RESOLVED – that the Committee approved the provision of a financial guarantee of £25k for the Police ICT company.

 ...  view the full minutes text for item 11a

12.

Questions on matters relating to the work of the Committee

Minutes:

There were no questions.

 

 ...  view the full minutes text for item 12.

13.

Any Other Business that the Chairman considers urgent

Minutes:

There were no urgent items.

 

 ...  view the full minutes text for item 13.

14.

Exclusion of the Public

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 ...  view the full agenda text for item 14.

Minutes:

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 

 

 

 ...  view the full minutes text for item 14.

15.

Non-public minutes of the previous meeting

To agree the non-public minutes of the meeting held on 5th June 2018.

 ...  view the full agenda text for item 15.

Minutes:

The non-public minutes of the meeting held on 5th June 2018 were approved as an accurate record

 ...  view the full minutes text for item 15.

16.

Report of the work of the Sub-Committees - non-public issues

Report of the Town Clerk.

 ...  view the full agenda text for item 16.

Minutes:

The Committee received verbal reports of the respective Sub-Committee Chairmen which advised Members of the key non-public discussions which had taken place during recent meetings of the Corporate Asset Sub-Committee, the Efficiency and Performance Sub Committee and the Information Technology Sub Committee.

 

RESOLVED – That the Committee noted the reports.

 

 ...  view the full minutes text for item 16.

17.

City of London Corporation & City of London Police - IT Strategy - Initial Funding request

Joint Report of the Chamberlain and the Commissioner of City of London Police

 ...  view the full agenda text for item 17.

Minutes:

Members considered a Joint Report of the Chamberlain and the Commissioner of the City of London Police.

 ...  view the full minutes text for item 17.

18.

Delegation Request - Acquisition of 70 Fleet Street EC4 & Simultaneous disposal of Eden House, Spital Square, E1

Report of the City Surveyor

 ...  view the full agenda text for item 18.

Minutes:

The Committee considered a Report of the City Surveyor.

 ...  view the full minutes text for item 18.

19.

Non-Domestic Rates - Discretionary Rate Relief Application

Report of the Chamberlain

 ...  view the full agenda text for item 19.

Minutes:

The Committee considered a Report of the Chamberlain.

 ...  view the full minutes text for item 19.

20.

Arrears Write Off - City Fund

Report of the City Surveyor

 ...  view the full agenda text for item 20.

Minutes:

The Committee received a Joint Report of the Comptroller and City Solicitor and the City Surveyor.

 

 

 ...  view the full minutes text for item 20.

21.

Admitted Body Status for the Interim Supplier for the Police Fleet Maintenance Services

Joint Report of the Chamberlain and the Comptroller and City Solicitor

 

 

 ...  view the full agenda text for item 21.

Minutes:

The Committee considered a joint Report of the Chamberlain and the Comptroller and City Solicitor.

 

 ...  view the full minutes text for item 21.

22.

Summary Report on Non-Compliant Waivers over £50k from April 2018 - June 2018.

Report of the Chamberlain

 ...  view the full agenda text for item 22.

Minutes:

The Committee received a Report of the Chamberlain.

 

 ...  view the full minutes text for item 22.

23.

Non-public decisions taken under delegated authority and urgency procedures

Report of the Town Clerk.

 ...  view the full agenda text for item 23.

Minutes:

The Committee noted a report of the Town Clerk detailing two non-public decisions taken under delegated authority procedures since the last meeting.

 ...  view the full minutes text for item 23.

24.

Non-public questions on matters relating to the work of the Committee

Minutes:

There were no non-public questions relating to the work of the Committee.

 ...  view the full minutes text for item 24.

25.

Any Other Business that the Chairman considers urgent and which the Committee agree should be considered whilst the public are excluded

Minutes:

There were no items of urgent business.

 ...  view the full minutes text for item 25.