Agenda and minutes

Venue: Virtual meeting - https://youtu.be/mRi2dbBciGE

Contact: John Cater
tel. no.: 020 7332 1407  Email: john.cater@cityoflondon.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies for absence were received from Nicholas Bensted-Smith, Dominic Christian, Michael Hudson, Wendy Hyde, Clare James, Hugh Morris, Benjamin Murphy, Ian Seaton and Mark Wheatley.

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

2.

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

Minutes:

The Chairman declared a non-pecuniary interest in respect of item 11 (City Re Limited – Performance Monitoring) by virtue of being a Director of City Re (appointed due to his role as Chairman of Finance Committee).

 

 

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

3.

Minutes of the previous meeting pdf icon PDF 215 KB

To agree the public minutes of the meeting held on 21st July 2020.

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

Minutes:

RESOLVED – That the public minutes and summary of the meeting held on 21st July 2020 be approved as an accurate record, subject to the following amendment:

 

John Scott clarified that he attended the meeting and asked the Committee clerk to amend the records.

 

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

4.

Finance Committee's Forward Plan pdf icon PDF 132 KB

Report of the Chamberlain.

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

Minutes:

The Committee received a joint Report of the Town Clerk concerning the Committee’s workplan for the next ten months.

 

The Chairman confirmed that, whilst in the past, we have tended to cancel the March meeting of the Committee, it is anticipated that given the current circumstances, next year’s meeting will go ahead.

 

RESOLVED – that the Committee noted the Report.

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

5.

Appointment of a Finance Committee Member to the Performance and Resource Management (Police) Committee pdf icon PDF 85 KB

Report of the Town Clerk.

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

Minutes:

The Committee considered a Report of the Town Clerk concerning the appointment of a Finance Committee representative to the Performance and Resource Management (Police) Committee.

 

The Chairman of the Police Authority Board (PAB), who also sits as a Member of Finance Committee (FC), emphasised that the proposal to recruit a representative from FC presented an opportunity to strengthen scrutiny around governance and financial discipline. He emphasised that ongoing foci for PAB was to ensure that the Force had both a balanced Medium-Term-Financial-Plan, and that maximum benefits and efficiencies can be accrued from the Transform Programme.

 

The Chairman of FC thanked the Member for his comments and welcomed the steps that he had taken since becoming the Chairman of PAB to improve both the mood music and substance of the discussion; it was important to build upon this progress over the upcoming months. Both agreed that whilst some of the issues were not easy to overcome, it was important to maintain a good and transparent dialogue.

 

RESOLVED – that Members endorsed Jamie Ingham Clark as FC’s appointment to serve on the Performance and Resource Management (Police) Committee for the ensuing year.

 

 

 

 

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

6.

Report of the work of the Sub-Committees pdf icon PDF 119 KB

Report of the Town Clerk.

 

To Follow.

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

Minutes:

The Committee received a report of the Town Clerk which advised Members of the key discussions which had taken place during recent meetings of the Committee’s Sub-Committees.

 

The respective Chairmen of the Sub-Committees updated Members as follows:

 

Corporate Asset Sub-Committee (CASC)

The Chairman of CASC, informed Members that the Sub had instructed officers to examine the timelines of the Cyclical Works Programme (CWP); the current cycle of three years was too long as it didn’t properly reflect the urgency of the repairs and maintenance work  – Members were of the view the CWP should be focussed more on an annual basis.

 

Digital Services Sub-Committee (DSSC)

The Chairman of DSSC informed Members that discussions were ongoing concerning the City Corporation’s website and this would form a key workstream over the coming months.

 

Efficiency & Performance Sub-Committee (E&P)

Given the Prime Minister’s recent announcement of further restrictive measures, the Chairman noted that the mood of the discussion at the recent meeting of E&P was now, regrettably, out-of-date. However, he stressed that, despite the unlikely prospect of welcoming back Members and officers in larger numbers in the immediate term, he was keen that the Corporation should continue to endeavour, where it could, to lead by example, namely, by carrying out as much business as was both safe and practicable at Guildhall.

 

Finance Grants Oversight & Performance Sub-Committee

The Chairman of the Sub informed Members that there had been a considerable increase in grants funding over recent months, reflecting the extraordinary times we find ourselves in.

 

The Chairman of the Finance Committee informed Members that a Report would be submitted to the November meeting of the Committee concerning the status of FC’s International Disaster Fund. He asked the Committee clerk to circulate this paper to the Chairman and Deputy Chairman of the Sub-Committee for

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

7.

Resetting of Departmental Budgets 2020/21 pdf icon PDF 216 KB

Report of the Chamberlain.

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

Additional documents:

Minutes:

The Committee considered a Report of the Chamberlain concerning the resetting of departmental budgets.

 

The Chairman opened the discussion by emphasising the grave challenges ahead. He stressed that whilst service Committees are being informed, they would not be invited to debate the size of the revised budget envelope, but they were being asked to consider how they are going to hit the new budget. Additionally, the Chairman stated that he would be sceptical of any departments proposing to significantly raise income projections as a way to plug the gap, it was evident that the primary driver to hit the new budget would be through cutting expenditure - we operated at a high-cost base and there was significant scope to do things more efficiently and effectively.

 

The Chairman highlighted that whilst all areas of the Corporation faced a difficult period,

some institutions, namely, the Barbican Centre, were in an invidious position, given the huge impact the crisis has had on ticketing and commercial income. Whilst commending the Barbican Centre’s significant efforts to reduce spending; clearly, its prospects were tethered to whether a) restrictions endure further into 2021 and b) more draconian restrictions are imposed in in the coming weeks/months.

 

The Chairman concluded by remarking that whilst we all wanted to maintain our ambitions and emerge from the crisis on the front foot, it was incumbent on everyone to ensure that sound finances were at the heart of our decisions and, crucially we cut our cloth accordingly. He cautioned Members that if we do not start the heavy lifting now then next year’s budget will be much more difficult; he urged Members to go back to their various Service Committees and ensure this message was wholeheartedly conveyed and push back on any attempt to stymie the revised budget.

 

The Chamberlain remarked that

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

8.

Draft BHE Annual Report & Financial Statements pdf icon PDF 110 KB

Report of the Chamberlain.

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

Additional documents:

Minutes:

The Committee considered a Report of the Chamberlain concerning the draft BHE Annual Report and Financial Statements.

 

The Chamberlain confirmed that the Audit & Risk Management Committee had considered the Report at its meeting on 1 October, whilst A&RM Members recommended Finance Committee approve the Report, it noted an “emphasis of matter” concerning the valuation of the property portfolio, this was in light of the impact of Covid. More details have been included in the final report and this issue is considered uncontentious.

 

The Chamberlain briefly touched on some of the highlights for BHE across 2019/20, namely:

·         The transfer of £200m from the unrestricted income fund – to the grant making designated fund

·         A revised reserves policy specifying £35m in reserves

·         A record breaking 11 months for visitor numbers at Tower Bridge

·         Grant making – record high of £33.7m

 

Alongside the discussion around the “emphasis of matter” A&RM noted some other non-material issues – these were highlighted to Finance Committee Members before today’s meeting and the paper had been updated to include these revisions.

 

In response to a Member raising concerns around whether our giving is as pacey as it could be, the Chairman and the Chamberlain assured Members that the CBT and Central Grants Teams were processing a record number of grant applications and were not facing impediments about giving more in response to the crisis; in short “we were doing all we could”.

 

The Chairman added that the total allocation was now set over a 5-year period – this had brought extra flexibility as we could front load our grant giving into the first and second years in response to Covid, although this would clearly have implications for years 4 and 5.

 

RESOLVED – that the Committee approved the following:

 

·         Approve the BHE Annual Report

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

9.

Q2 Budget monitoring pdf icon PDF 328 KB

Report of the Chamberlain.

 

To Follow.

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

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning the financial position and the impacts of COVID-19 on budgets up to the end of September.

 

RESOLVED – that the Committee noted the Report.

 

 

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

10.

Revenue Outturn 2019/20 - Finance Committee Operational Services pdf icon PDF 252 KB

Joint Report of the Chamberlain, the Town Clerk, the City Surveyor and the Remembrancer.

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

Minutes:

The Committee received a Report of the Chamberlain concerning the revenue outturn for 2019/20.

 

The Chamberlain apologised for the delay in submitting this paper, future iterations would be brought to the July meeting. She added that Carry forwards are much lower this year, this reflected the steer from the Chairman of Finance and the Chair of Policy & Resources to impose a much tougher line on carry forwards.

 

In response to a query concerning a carry forward for the MS extended Support line (appendix 2) – the Chamberlain would revert to the Member after the meeting to clarify the situation.

 

In response to a query concerning the impact of the £1m underspend in the Chamberlain’s department, the Chamberlain assured Members that the previous levels of productivity and output had been maintained.

 

The Chamberlain added that the £347,000 carry forward highlighted in the Report was for IT projects which had slipped into the current financial year.

 

RESOLVED – that the Committee noted the Report.

 

 

 

 

 

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

11.

City Re Limited - Performance Monitoring pdf icon PDF 124 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 City Re Ltd.

 

A Member raised a query as to why the Corporation had not sought to place this business in London, given our role as a champion of the UK’s Financial Services sector. The Chamberlain responded that captive insurance is not offered in London which is why we have placed our business within the market leader, namely, Guernsey. The Deputy Chairman added that Guernsey is a centre for this and Corporation derives value for money from placing our business there, it should also be recognised that lot of the captive insurance business is initially brokered through London, so we are not completely locked out of this area.

 

The Member responded that this was unfortunate given our role and asked whether we could make representations to HMT about examining how this market could be developed in London. The Chair of Policy & Resources responded that she would reach out to officers in the Department for Innovation and Growth and come back to the Member in the next few days with more details. She added that it would be important to understand whether this issue was something which the industry in London wanted to explore, as a change in regulation would need cross sector consensus.

 

The Chairman welcomed these comments and pointed out that, particularly post-Brexit, potential changes to regulation should be viewed from the perspective of the challenger not just the incumbent.

 

RESOLVED – that the Committee noted the Report.

 

 

 

 

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

12.

Financial Services Division Quarterly Update pdf icon PDF 91 KB

Report of the Chamberlain.

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

Additional documents:

Minutes:

The Committee received a Report of the of the Chamberlain concerning the Financial Services Division (FSD).

 

The Chairman commended the team for their hard work during these challenging times.

 

A Member raised two queries:

 

a) He asked if the Chamberlain could say a little more about the better communications workstream.

 

The Chamberlain responded that communicating effectively was a vital part of FSD’s role, it was important to set our figures and data in way which was widely accessible – the team was moving away from using tables in favour of more up-to-date visually distinct features, one might now find in an app.

 

b) What emphasis was the Division giving to diversity and inclusion within the workstreams?

 

The Chamberlain responded that all of the workstreams aimed to enhance and meet the Corporation’s aims around diversity and inclusion. In particular, the Division, was currently focussed on improving coaching and other learning opportunities across the team.

 

RESOLVED – that the Report was noted by the Committee.

 

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

13.

Chamberlain's Department Risk Management - Monthly Report pdf icon PDF 124 KB

Report of the Chamberlain.

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

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 confirmed that Audit & Risk Management Committee had decided that the Risk concerning Police Funding (CR23) should remain a separate risk

 

The Chamberlain stressed that, whilst there was much work to do, he was confident that the Police’s finances would be restored to a sustainable footing over the next four years.

 

The Chairman of the Police Authority Board (who is also a Member of FC) echoed these sentiments and separately suggested that, given their deteriorating outlooks both GSMD and the Barbican should be highlighted as risks in future iterations of this Report.

 

The Chairman asked that, given the serious financial climate we now face, the Risk Report should be raised higher up on future agendas.

 

RESOLVED – that the Committee noted the report.

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

14.

Central Contingencies pdf icon PDF 84 KB

Report of the Chamberlain.

 

To be read in conjunction with item 22 (non-public appendix)

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

Minutes:

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

 

The Chairman signalled an upcoming Report of the Central Grants Unit (due at the November meeting of FC) concerning the future of the International Disasters Fund, he added that he would not be surprised, given the events of this year, if the Fund was, for the first time since its inception, exhausted before year end.


RESOLVED – that the Committee noted the report.

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

15.

Decisions taken under delegated authority and urgency procedures pdf icon PDF 105 KB

Report of the Town Clerk.

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

Minutes:

The Committee received a report of the Town Clerk which provided information of the action taken by the Town Clerk since the last meeting of the Committee, in consultation with the Chairman and Deputy Chairman, in accordance with Standing Orders 41(a) and 41(b). The decisions related to two donations to a) the DEC coronavirus appeal (£20,000) and b) the British Red Cross’ Beirut emergency appeal (£20,000).

 

RESOLVED – that the Committee noted the report.

 

 

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

16.

Questions on matters relating to the work of the Committee

Minutes:

There were no questions.

 

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

17.

Any Other Business that the Chairman considers urgent

Minutes:

There were no urgent items.

 

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

18.

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 18.

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 18.

19.

Non-public minutes of the previous meeting

To agree the non-public minutes of the meeting held on 21st July 2020.

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

Minutes:

The non-public minutes of the meeting held on 21st July 2020 were approved as an accurate record.

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

20.

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

Report of the Town Clerk.

 

To Follow.

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

Minutes:

The Committee noted a report of the Town Clerk which advised Members of the key discussions which had taken place during non-public sessions at recent meetings of the Committee’s Sub-Committees.

 

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

21.

Major Works Project Management Frameworks – Stage 2 Award

Report of the Chamberlain.

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

Minutes:

The Committee considered a Report of the Chamberlain concerning the Major Works Project Management Frameworks.

 

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

22.

Central Contingencies - non-public appendix

To be read in conjunction with item 14.

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

Minutes:

Members noted the non-public appendix for the Central Contingencies Report.

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

23.

Stages 1 (Strategy) & 2 (contract award) combined report for Provision of Electricity and Gas Supplies

Joint Report of the Chamberlain and the City Surveyor.

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

Minutes:

The Committee considered a Report of the Chamberlain concerning the award of contracts for the supply of electricity and gas.

 

 

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

24.

Non-public decisions taken under delegated authority and urgency procedures

Report of the Town Clerk.

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

Minutes:

The Committee noted a report of the Town Clerk detailingnon-public decision(s) taken under delegated authority and urgency procedures since the last meeting.

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

25.

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

Minutes:

Members considered a non-public question relating to the work of the Committee

 

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

26.

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 26.