Agenda and minutes

Agenda and minutes

Resources and Governance Scrutiny Committee - Thursday, 25th May, 2023 10.00 am

Venue: Council Antechamber, Level 2, Town Hall Extension. View directions

Contact: Charlotte Lynch 

Media

Items
No. Item

21.

Interests

To allow Members an opportunity to [a] declare any personal, prejudicial or disclosable pecuniary interests they might have in any items which appear on this agenda; and [b] record any items from which they are precluded from voting as a result of Council Tax/Council rent arrears; [c] the existence and nature of party whipping arrangements in respect of any item to be considered at this meeting. Members with a personal interest should declare that at the start of the item under consideration. If Members also have a prejudicial or disclosable pecuniary interest they must withdraw from the meeting during the consideration of the item.

Minutes:

Councillor Julie Connolly declared a prejudicial and pecuniary interest in items 5 and 8 and would leave the meeting for the duration of discussions.

 

22.

Minutes pdf icon PDF 104 KB

To approve as a correct record the minutes of the meeting held on Tuesday, 7 March 2023.

Minutes:

Decision:

 

That the minutes of the previous meeting, held on 7 March 2023, be approved as a correct record.

23.

Commercial Activity Update (Part A) pdf icon PDF 129 KB

Report of the Deputy Chief Executive and City Treasurer.

 

This report provides an overview of key aspects of the Council’s commercial portfolio as well as outlining the governance and assurance activity which take place before, during and post completion of commercial transactions.

Minutes:

The committee considered a report of the Deputy Chief Executive and City Treasurer whichprovided an overview of key aspects of the Council’s commercial portfolio as well as outlining the governance and assurance activity which took place before, during and post completion of commercial transactions.

 

Key points and themes within the report included:

 

  • Providing an introduction and background;
  • Commercial governance and assurance, including strategic oversight of companies, Joint Ventures, and charities;
  • Directorship training facilitated for members and officers;
  • The Due Diligence Framework, which provided financial and reputational assurance to the Council via the analysis of the performance and sustainability of the organisations which the Council were currently working or proposing to contract with;
  • The regulation of commercial activity;
  • The purpose of Public Interest and Best Value Reports; and
  • Risk management.

 

Key points and queries that arose from the committee’s discussions included:

 

  • How confident officers were in the governance of the Council’s commercial activities, citing a recent announcement of a government audit into Teesworks in Teeside;
  • How many individuals were still to undertake directorship training;
  • Whether directorship training was available prior to being appointed for those considering the position;
  • If a list of those who had undertaken directorship training was available;
  • Whether the Council reported on the diversity of boards which members and officers were appointed to;
  • The impact of the Subsidy Control Act;
  • Noting that the Due Diligence Framework was applied to ‘gold’ contracts, and querying the approach to non- ‘gold’ contracts;
  • How the Council was being proactive in managing reputational and financial risk through its investments and holdings;
  • Whether the Council made any savings with regard to culture and leisure during the Covid-19 pandemic; and
  • Suggesting that a public notice is included on the website to explain why the Council appoints to boards.

 

The Deputy Chief Executive and City Treasurer explained that the Council had a successful record in development and regeneration activity. She stated that the governance arrangements in place were robust and continuously monitored and that the Council sought to identify and review good practice from others.

 

The Chair highlighted a recent news article which disclosed that a review into allegations of “corruption, wrongdoing and illegality” at the Teesworks redevelopment scheme in Teeside had been ordered by the Secretary of State for Levelling Up, Housing and Communities. In response to a query regarding officers’ confidence in the governance of the Council’s commercial activities, members were advised that there were robust governance arrangements in place around transactions, partnerships and ventures. The Head of Commercial Governance explained that the Due Diligence Framework was used to monitor schemes with regular updates on progress of entities and their stability. She also stated that the Commercial Board received regular updates on major property transactions and regeneration projects and were sighted on the activity and performance of these.

 

The Head of Commercial Governance advised members that there were less than 10 individuals still to undertake directorship training and that a regular overview of memberships was maintained to ensure any new appointees were fully  ...  view the full minutes text for item 23.

24.

Overview Report pdf icon PDF 214 KB

Report of the Governance and Scrutiny Support Unit.

 

This report provides the Committee with details of key decisions that fall within the Committee’s remit and an update on actions resulting from the Committee’s recommendations. The report also includes the Committee’s work programme, which the Committee is asked to amend as appropriate and agree.

Minutes:

The committee received a report of the Governance and Scrutiny Support Unit which provided details of key decisions that fell within the Committee’s remit. The report also included the Committee’s work programme, which the Committee was asked to amend as appropriate and agree.

 

The Committee noted that it would be discussing the work programme for the forthcoming municipal year in further detail in a private session following the meeting, and that an updated work programme reflecting this discussion would be circulated as normal in the papers for the next meeting.

 

Decision:

 

That the report be noted.

25.

Exclusion of Press and Public

The officers consider that the following item contains exempt information as provided for in the Local Government Access to Information Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The Committee is recommended to agree the necessary resolutions excluding the public from the meeting during consideration of this item.

Minutes:

Decision:

 

That the press and public be excluded during consideration of the following item which involved consideration of exempt information relating to the financial or business affairs of particular persons and public interest in maintaining the exemption outweighed the public interest in disclosing the information.

26.

Commercial Activity Update (Part B)

Report of the Deputy Chief Executive and City Treasurer.

 

This confidential report provides further detail regarding the structure, financing and terms of the Council’s commercial activities.

 

Minutes:

The committee received and considered a confidential report of the Deputy Chief Executive and City Treasurer which provided further detail of the structure, financing and terms of the Council’s commercial activity, supplementary to item 5.

 

Decision:

 

That the report be noted.