Minutes of the Finance Committee Meeting
Held on Tuesday 8th December 2009
at 7.30pm in the Snug, Red Lyon
The meeting was scheduled to take place in the Parish Room but the Clerk became aware just an hour or so before the meeting that this room was double booked. Despite trying our usual alternative, i.e. the Chapel, this was not available. The meeting was held in the ‘snug’ at the back of the public house. It should be noted that the Clerk and the Finance Chairman agreed this venue. This was an exceptional circumstance as no other suitable room was available at such short notice.
255/09 Attendance and Apologies for Absence
Those present: Councillors N Jefferys (Chairman), C Burke, M Dunkerton, R Hillyard and E Sorensen. Also present: Parish Clerk M Burroughs.
There were no members of the public present.
256/09 Declarations of Interests and Change to Register of Members’ Interests
There were no declarations of interests or changes to Register of Members’ Interests notified.
257/09 Matters Arising from the Finance Committee Meeting on Tuesday 20th October 2009 (for information only)
a)Tax on Interest – Nat West Bonus Saver Account – the Clerk advised, following Cllr. Sorensen’s question as to whether the Parish Council should have been taxed on the interest on their Bonus Saver Account, that Nat West were investigating this matter. On previous deposit accounts, the interest has been paid gross of tax and the Clerk has argued that this should be the case for the new Bonus Saver account opened. If it is determined that interest should have been paid then this could result in a refund of around £700.
b)Streetlight Maintenance Contract – the Clerk has made contact with the WSCC, Streetlighting team to establish if our existing stock will be replaced as part of the new contract. The Clerk has been advised that, as our itinerary of stock does not reflect the ‘age’ of the lighting, that the new contract should allow for replacement on a like for like basis during the contract period.
c)Update from the Six Acres Working Party – the Clerk advised that she and Cllr. White had prepared some initial observations on the management of the Six Acres funds but that this had not progressed further pending the Finance Committee’s recommendation to the Parish Council on the investment of the S106 monies received (see 261/09). Cllrs. Hillyard and Jefferys will meet in the New Year on site to consider the requirements for a maintenance contract.
258/09 Agree Precept for 2010-11 and make recommendations to the Parish Council for approval on 16th December 2009.
The Finance Committee reviewed the precept requirements for the period 1 April 2010 to 31 March 2011 and recommends to the Parish Council that this be set at £51,279. This is an increase of £1,280 (2.56%) on the previous year. This equates to £54.73 per property at band D equivalent. The figure was £53.89 last year making an annual increase per property of £0.84.
Details of the precept requirement can be found at Appendix E of the Minutes of the Finance Meeting held on 20th October 2009.
259/09 Bank Reconciliations – the reconciliation for the current accounts (Co-op and Nat West) to 30 November 2009 was reviewed and approved by the members present. Cllr. Jefferys signed the reconciliation as evidence of the review.
260/09 Purchase of Sand Bags (Preventative Flooding Measure)
The Clerk advised that the SI Group had mentioned at the ILG Meeting in November, that our store of sand bags (approximately 50) needed replacement. SI Group advised the Clerk to talk to HDC, P Montgomery who is responsible for Emergency Planning. Mr Montgomery advised that their were new bags on the market which were easy to store and that that they worked out to be more cost effective in the long run. He recommended a company by the name of FloodSax. To purchase 40 of these sacks costs £207.98. Cllr. Hillyard felt that it was important to have a supply of readily accessible flood sacks and proposed that a recommendation be made to the Parish council that they purchase these sacks. It was agreed, subject to a review by Cllrs. Jefferys and Sorensen, that a proposal is put to the Parish Council to approve the cost of purchasing 40 sacks i.e. £207.98.
261/09 Investment Arrangement for the Six Acres funds
Following the last meeting, Cllr. Sorensen had obtained advice from the Financial Services Compensation Scheme (FCSC) that Parish Council’s DO NOT qualify for a guarantee on deposits held in their name up to £50k. The Parish Council would not therefore be able to claim compensation from the FSCS should a bank or building society become insolvent.
A discussion took place as to how invest the funds that the Parish Council has in the Co-op (circa £59k) and Nat West (circa £207k). These accounts hold the Parish Council’s cash assets as well as the transfer for the recent Six Acres adoption of the land surrounding the development and the Six Acres play area (circa £140k).
Cllr. Sorensen provided information on depositing monies with a variety of banks and building societies. The Finance Committee reviewed the information available and concluded that any deposits should be held with ‘widely recognised establishments’ who are offering a good rate of return.
Local Councils’ Governance and Accountability guidance suggests that long term deposits, unless substantial i.e. £500k+ are for a period of one year.
The Finance Committee recommends to the Parish Council that they approve the following amounts to be invested for a period of one year (reviewed annually).
- Scottish Widows Bank (part of the Lloyds TSB Group) - £65,000 at a fixed AER rate of 2.5% (Six Acres funds) subject to further confirmation of the available start dates.
- Standard Life Bank - £60,000 at a gross rate of 1.9% (Six Acres funds).
- Nat West Bank - £50,000 in a Fixed Rate Bond if a gross rate of 2% can be achieved on the next issue (Parish Council funds).
- Co-op Bank - Increase the Guaranteed Investment Bond to £50,000 at the next opportunity.
262/09 Internal Audit Appointment for the year ended 31 March 2010.
The Clerk had obtained audit plans and costs from four of the internal auditors recommended by the Society of Local Councils (SALC). It has been recommended that the Parish Council changes its’ auditor every five years. Our existing auditor is Peter Frost (PJ Consultants). Having reviewed the options available (cost, audit coverage and the experience of the auditor), the Finance Committee recommends to the Parish Council that Mark Mulberry, Mulberry & Co, a Surrey based firm, be appointed for year-end at a cost of up to £315.
263/09 Budget Update
The Clerk provided an update on actual spend to budget at 30 November 2009 which was reviewed by the members present. Cllr. Sorensen asked for details of items of key expenditure for the remainder of the year. Cllr. Burke questioned why Streetlighting had exceeded budget; the Clerk will investigate this matter and advise. N.B this matter has subsequently been investigated and the maintenance charges for WSCC have been allocated to ‘electricity’ in error; the actual to budget for Streetlighting is as expected.
There are no recommendations for the Parish Council at this time, the information was provided by way of an update only.
264/09 Staff Matters – Clerks Appraisal
Cllrs. Jefferys advised that he and Cllr. Hillyard had carried out the Clerk’s appraisal on 7th December 2009. It was agreed that the Clerk has put in another strong performance and it is recommended to the Parish Council (as the Clerk’s contract allows for) that the Clerk’s salary scale be increased by one point, i.e. to LC2 level 29. This change will take effect from 1 April 2009.
265/09 Review of the Risk Assessment and Insurance Cover/Fixed Asset Register in preparation for year-end.
The Clerk advised that she would like to look closely at the Risk Assessment this year to identify any potential risks that may need to be included. It was suggested that all Councillors could look at this and provide the clerk with feedback. It is therefore recommended that the Clerk circulate the existing Risk Assessment for review and feedback by Councillors.
Cllr. Jefferys and the Clerk will work together to complete the Risk Assessment for year-end and will review the insurance cover and Fixed Asset Register in conjunction with this review.
266/09 – Other matters arising since the publication of this agenda (for information only)
- Village Hall Grant – the Clerk has received a request for a grant of £1,172.85 towards the replacement of the main window in the Village Hall. This has been tabled for discussion/approval at the next Parish council Meeting on 16th December 2009.
- School Car Park – Cllr. Hillyard advised that to progress this matter further, the Parish Council may need to support the school and fund the cost of employing specialists to assess the position and provide reports back to HDC and WSCC with regard to the trees in the car park. This may cost up to £1,000 but may be recovered from S106 funds should the planning application be permitted. The Clerk agreed to investigate whether Parish Council funds could be used for this purpose.
267/09 Date of Next Meeting - Tuesday April 20th 2010 – Parish Room 7.30pm
Meeting Closed - 9.40pm
Appendix A provides a summary of the recommendations made by the Finance Committee for approval by the Parish Council at their meeting on 16th December 2009.
Appendix A Recommendations to the Parish Council 16th Dec 2009
258/09 Agree Precept for 2010-11 and make recommendations to the Parish Council for approval on 16th December 2009.
The Finance Committee reviewed the precept requirements for the period 1 April 2010 to 31 March 2011 and recommends to the Parish Council that this be set at £51,279. This is an increase of £1,280 (2.56%) on the previous year. This equates to £54.73 per property at band D equivalent. The figure was £53.89 last year making an annual increase per property of £0.84.
260/09 Purchase of Sand Bags (Preventative Flooding Measure)
It was agreed, subject to a review by Cllrs. Jefferys and Sorensen, that a proposal is put to the Parish Council to approve the cost of purchasing 40 sacks i.e. £207.98.
261/09 Investment Arrangement for the Six Acres funds
The Finance Committee recommends to the Parish Council that they approve the following amounts to be invested for a period of one year (reviewed annually).
- Scottish Widows (part of the Lloyds TSB Group) - £65,000 at a fixed AER rate of 2.5% (Six Acres funds) subject to further confirmation of the available start dates.
- Standard Life Bank - £60,000 at a gross rate of 1.9% (Six Acres funds).
- Nat West Bank - £50,000 in a Fixed Rate Bond if a gross rate of 2% can be achieved on the next issue (Parish Council funds).
- Co-op Bank - Increase the Guaranteed Investment Bond to £50,000 at the next opportunity.
262/09 Internal Audit Appointment for the year ended 31 March 2010.
Having reviewed the options available (cost, audit coverage and the experience of the auditor), the Finance Committee recommends to the Parish Council that Mark Mulberry, Mulberry & Co, a Surrey based firm, be appointed for year-end at a cost of up to £315.
264/09 Staff Matters – Clerks Appraisal
It is recommended to the Parish Council (as the Clerk’s contract allows for) that the Clerk’s salary scale be increased by one point, i.e. to LC2 level 29. This change will take effect from 1 April 2009.
265/09 Review of the Risk Assessment and Insurance Cover/Fixed Asset Register in preparation for year-end.
It was suggested that all Councillors could look at this and provide the clerk with feedback. It is therefore recommended that the Clerk circulate the existing Risk Assessment for review and feedback by Councillors.