Council Meeting Summons

COUNCIL MEETING

SUMMONS

You are hereby summoned to attend a meeting of Bassetlaw District Council to be held on THURSDAY, 25TH JUNE 2015 at 6.30PM in The Town Hall, RETFORD, DN22 6DB, for the purpose of transacting the business on the agenda.

Queen's Buildings, N Taylor Worksop, S80 2AH Chief Executive

Dated 17th June 2015

(Please turn mobile telephones to silent during the meeting. In case of emergency, Members/officers can be contacted on the Council's mobile telephone: 07702 670209).

In accordance with Regulation 4(6) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, audio/visual recording and photography at Council meetings is permitted in accordance with the Council’s protocol ‘Filming at Public Meetings’.

1 2 F:\DOCS\MEMBERS\MS8\REPORTS\COUNCIL\JUNE 2015\1 AGENDA INDEX.DOC AGENDA

1. APOLOGIES

2. DECLARATIONS To receive Declarations of Interest by Members and Officers (pages 5-6)

Members are also reminded of the requirements of Section 106 of the Local Government Finance Act 1992 that they should declare and not vote on specified matters if they are two months or more in arrears with their Council Tax payments.

3. MINUTES * To approve as a correct record the Minutes of the Meetings held on 20th May 2015. (pages 7-18)

4. COMMUNICATIONS To receive such communications as the Chairman, Chief Executive and Leader desire to lay before the Council.

5. QUESTIONS To answer questions of which notice has been given in BY THE PUBLIC accordance with Rules of Procedure Number 10.

None

6. QUESTIONS To answer questions of which notice has been given BY MEMBERS in accordance with Procedure Rule Number 11.

From Councillor J M Sanger:

“Can the Portfolio holder tell us what steps are being taken to ensure that those Council Members not on the Planning Committee, and members of the public, are informed as to what can and what cannot be taken into consideration when the Planning Committee is dealing with applications?”

7. MOTIONS To consider motions of which notice has been given in accordance with Procedure Rule Number 12.

Proposed by Councillor S A Greaves and seconded by Councillor J White:

“Bassetlaw District Council notes that due to continued budget cuts imposed upon Nottinghamshire Police by Government, the Police and Crime Commissioner proposes to cut 72 full-time equivalent Police Community Support Officers (319 down to 247) from the PCSO workforce.

Our towns and villages have benefitted from the positive impact that PCOSs have made and many people have come to see them as playing an essential role in their communities.

Bassetlaw District Council recognises that a cut in the number of PCSOs will have a detrimental impact upon Bassetlaw and its communities.

Bassetlaw Council resolves to write to the Government to inform them of the Council’s concerns and to call for a fairer funding formula for Nottinghamshire Police.”

3 F:\DOCS\MEMBERS\MS8\REPORTS\COUNCIL\JUNE 2015\1 AGENDA INDEX.DOC 8. REFERRALS *

(a) Cabinet – 2nd June 2015 – Minute No. 8(a) – Public Spaces Protection Order – Dog Control (Key Decision No. 492) (pages 19-41) (b) Cabinet – 2nd June 2015 – Minute No. 8(c) – Food Safety Service Plan 2015/16 (Key Decision No. 499) (pages 43-77) (c) Cabinet – 2nd June 2015 – Minute No. 8(d) – Health and Safety Service Plan 2015/16 (Key Decision No. 500) (pages 79-110) (d) Audit and Risk Scrutiny Committee – 11th June 2015 – Minute No. 7(a) – Annual Audit Fee 2015/16 (pages 111-132) (e) Audit and Risk Scrutiny Committee – 11th June 2015 – Minute No. 9(e) - Annual Governance Statement 2014/15 (pages 133-150) (f) Audit and Risk Scrutiny Committee – 11th June 2015 – Minute No. 9(f) – Local Code of Corporate Governance (pages 151-169) (g) Audit and Risk Scrutiny Committee – 11th June 2015 – Minute No. 9(g) – Anti-Fraud and Anti-Corruption Strategy and Policy (pages 171-237)

9. REPORT(S) OF THE DIRECTOR OF REGENERATION AND NEIGHBOURHOODS *

(a) Neighbourhood Plans: Designation of Neighbourhood Areas – Carlton-in-Lindrick and Sutton-cum-Lound (pages 239-244)

10. REPORT(S) OF THE DIRECTOR OF CORPORATE RESOURCES AND MONITORING OFFICER *

(a) Members’ Code of Conduct (pages 245-248) (b) Audit and Risk Scrutiny Committee - Annual Review of Audit Work Programme 2014/15 (pages 249-254) (c) Financial Outturn 2014/15 (Key Decision No. 503) (pages 255-305) (See separate document ‘ 2014/2015 Unaudited Statement of Accounts and Annual Governance Statement’ previously circulated)

11. ANY OTHER BUSINESS WHICH THE CHAIRMAN CONSIDERS TO BE URGENT

(a) The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2015 (pages 307-309)

* Report attached

F:\DOCS\MEMBERS\MS8\REPORTS\COUNCIL\JUNE 2015\1 AGENDA INDEX.DOC Agenda Item No. 2

DECLARATION OF INTEREST

COMMITTEE ………………………………………………………………………………

DATE ……………………………………………………………………..

NAME OF MEMBER : ………………………………………………………………………………

Type of Interest

1. Disclosable Pecuniary 2. Non Pecuniary

Agenda Item Type of Interest No. REASON * (1 or 2)

Signed

Dated

Note:

* When declaring an interest you must also state the nature of your interest.

Completion of this form is to aid the accurate recording of your interest in the Minutes. The signed form should be provided to the Minuting Clerk at the end of the meeting.

A nil return is not required.

It is still your responsibility to disclose any interests which you may have at the commencement of the meeting and at the commencement of the appropriate Agenda item.

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\2 declaration5 of interest.doc DECLARATION OF INTERESTS

HOW TO USE THIS FORM

There are now only two types of Declaration of Interest:

Disclosable Pecuniary Interests ) Details can be found in the Councillors ) Code of Conduct which is contained in ) the Council’s Constitution (a summary is Non Pecuniary Interests ) printed below)

Upon receipt of the attached form you will need to enter the name and date of the Committee and your own name. By looking at the Agenda you will no doubt know immediately which Agenda Items will require you to make a Declaration of Interest.

Fill in the Agenda Item number in the first column of the form.

Enter the subject matter and any explanations you may wish to add in the second column.

In the third column you will need to enter either if you are declaring a disclosable pecuniary interest, or a non pecuniary interest.

The form must then be signed and dated. Please remember that if during the actual meeting you realise that you need to declare an interest on an additional Agenda Item number please simply amend the form during the meeting.

The form must be handed into the Committee Administrator at the end of the meeting.

NB. The following is a summary prepared to assist Members in deciding at the actual meetings their position on INTERESTS it is not a substitute for studying the full explanation regarding INTERESTS, which is contained in the Council’s Constitution and the Code of Conduct for Councillors, which is legally binding.

Members and Officers are welcome to seek, PREFERABLY WELL IN ADVANCE of a meeting advice from the Council’s Monitoring Officer on INTERESTS.

Disclosable Pecuniary Interests Action to be Taken May relate to employment, office, trade, profession or vocation Must disclose to the meeting carried on for profit or gain - existence of the interest May relate to sponsorship - the nature of the interest May relate to contracts - withdraw from the room May relate to interests in land - not seek improperly to influence May relate to licences to occupy land a decision on the matter May relate to corporate tenancies May relate to securities

Non Pecuniary Interests Action to be Taken May relate to any body of which you are a member or in a Must disclose to the meeting position of general control or management and to which you are - existence of the interest appointed or nominated by the Council - the nature of the interest May relate to any person from whom you have received a gift or - not seek improperly to influence hospitality with an estimated value of at least £25 a decision on the matter. A Member may also have a non pecuniary interest where a decision in relation to that business might reasonably be regarded as affecting wellbeing or the wellbeing of other council tax payers, or ratepayers or inhabitants in the electoral division or ward, as the case may be, affected by the decision. . (Note – there are special provisions relating to “Sensitive Interests” which may exclude the above provisions in certain circumstances.)

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\2 declaration6 of interest.doc Agenda Item No. 3

D R A F T

BASSETLAW DISTRICT COUNCIL

Minutes of the Annual General Meeting held on 20th May 2015 at Retford Town Hall

Present: Councillor G Freeman and G Jones (Chairmen)

Councillors J R Anderson J A Leigh B A Bowles D J Merryweather H M Brand J W Ogle D K Brett G A N Oxby H Burton D G Pidwell R B Carrington-Wilde D Potts A Chambers J Potts G Clarkson A Rhodes T M F Critchley H M Richards K Dukes M Richardson C Entwistle J M Sanger J Evans S Scotthorne S E Farncombe S E Shaw S Fielding J C Shephard D B Foley A Simpson M T Gray A K Smith K M Greaves M Storey S A Greaves K Sutton D Hare T Taylor K H Isard A D Tromans S Isard C Troop

Officers in attendance: D Armiger, J Hamilton, M Hill, N Taylor, R Theakstone, P Webster and S Wormald.

(The Council’s Press Officer was in attendance.)

(Meeting opened at 6.30pm.)

The Chairman welcomed everyone to the meeting, especially Mr and Mrs Frank Hart and their guests, and the honorary guest, Mr Jeffrey Rickells. The fire alarm/evacuation procedure was read out and the notice regarding filming/recording the meeting, in accordance with legislation, had been posted in the room.

1. APOLOGIES

Apologies for absence were received from Councillors D Challinor, M W Quigley, D R Pressley and J White.

2. DECLARATIONS OF INTEREST BY MEMBERS AND OFFICERS

(a) Members

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc7 There were no declarations of interest by Members on matters to be discussed at the meeting.

(b) Officers

There were no declarations of interest by officers on matters to be discussed at the meeting.

3. ELECTION OF CHAIRMAN

Proposed by Councillor M Richardson and seconded by Councillor s Fielding, it was

RESOLVED that Councillor Gwynneth Jones be elected Chairman of Bassetlaw District Council for the 2015/16 municipal year.

The Chairman took and signed the Declaration of Acceptance of Office.

4. VOTE OF THANKS

Proposed by Councillor S A Greaves and seconded by Councillor D G Pidwell, it was

RESOLVED that a vote of thanks be recorded to the retiring Chairman, Councillor Gillian Freeman.

After summing up her year in office, the retiring Chairman presented a cheque to representatives of her chosen charity, the Worksop Sea Cadets, totalling £1,872.28.

5. APPOINTMENT OF VICE-CHAIRMAN

Proposed by Councillor H Richards and seconded by Councillor D G Pidwell, it was

RESOLVED that Councillor James Anderson be appointed Vice-Chairman of Bassetlaw District Council for the 2015/16 Municipal Year.

6. MINUTES OF THE MEETINGS HELD ON 5TH MARCH 2015

RESOLVED that the Minutes of the meetings held on 5th March 2015 be approved.

7. COMMUNICATIONS

Chairman's Communications

The Chairman had nothing to communicate.

Chief Executive's Communications

The Chief Executive had nothing to communicate.

8. CONFIRMATION OF LEADER

RESOLVED that Councillor Simon Greaves be confirmed as the Leader of Bassetlaw District Council for the 2015/16 Municipal Year.

The Leader thanked all those who had been involved in the recent election campaign and honoured Jeffrey Rickells who had given over half a century of service to the public. He also mentioned those councillors who had retired, particularly Griff Wynne and Bill Barker. He sent best wishes to Councillor David Pressley who had recently suffered ill health, and he mentioned staff who had recently left the Authority, especially Stella Mitchell.

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc8

He went onto outline some of the successes which the Council had had during the past year. In response to the reduction in local authority funding, he stressed that a change for the Council was inevitable, particularly in light of the financial challenges, and he outlined some ways that the Council was leading the drive in local economy growth.

9. CONSTITUTIONAL AMENDMENTS

Members’ approval was sought for proposed amendments to the Council’s Constitution which were appended to the report.

RESOLVED that the amendments, as appended to the report, be approved and adopted.

10. COMMITTEES

Members were asked to appoint Committees and bodies as the Council considers appropriate to deal with matters which are neither received by the Council nor are Cabinet functions, as per the tabled report.

RESOLVED that the membership of Committee be approved as follows:

AUDIT AND RISK SCRUTINY COMMITTEE

(Reporting to Council)

No. of Seats: 9 Political Balance: 6-2-1

Chairman: Councillor R B Carrington-Wilde Vice-Chairman: Councillor D Challinor

Councillor C Entwistle Councillor G Freeman Councillor M Storey Councillor C Troop

Councillor J W Ogle Councillor A Tromans

Councillor J M Sanger

Substitutes: Any Member except those appointed to Cabinet Lead Officer: Head of Finance and Property

LICENSING COMMITTEE

(Reporting to Council)

No. of Seats: 12 Political Balance: 8-3-1

Chairman: Councillor J Potts Vice-Chairman: Councillor C Troop

Councillor J R Anderson Councillor G Clarkson Councillor K M Greaves Councillor G Jones

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc9 Councillor D J Merryweather Councillor D Potts

Councillor B A Bowles Councillor S Isard Councillor K Sutton

Councillor H M Brand

Substitutes: None Lead officer: Principal Solicitor (Licensing and Regulatory)

OVERVIEW AND SCRUTINY COMMITTEE

(Reporting to Council)

No. of Seats: 12 Political Balance: 8-3-1

Chairman: Councillor J C Shephard Vice-Chairman: Councillor S E Shaw

Councillor D K Brett Councillor R B Carrington-Wilde Councillor G Clarkson Councillor S E Farncombe Councillor D Foley Councillor G A N Oxby

Councillor M T F Critchley Councillor D Hare Councillor K Sutton

Councillor J M Sanger

Substitutes: Any Member except those appointed to Cabinet Lead Officer: Director of Corporate Resources

PLANNING COMMITTEE

(Reporting to Council)

No. of Seats: 12 Political Balance: 8-3-1

Chairman: Councillor H M Richards Vice-Chairman: Councillor A K Smith

Councillor G Freeman Councillor S Fielding Councillor G A N Oxby Councillor D G Pidwell Councillor M Richardson Councillor S Scotthorne

Councillor K H Isard

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc10 Councillor M W Quigley MBE Councillor T Taylor

Councillor H Burton

Substitutes: None Lead Officer: Head of Regeneration

APPEALS COMMITTEE

(Reporting to Council)

No. of Seats: 3 Political Balance: 2-1

Chairman: Councillor C Troop Vice-Chairman: Councillor D G Pidwell

Councillor H M Brand

APPOINTMENTS COMMITTEE

(Reporting to Council)

No. of Seats: 9 Political Balance: 6-2-1

Chairman: Councillor S A Greaves Vice-Chairman: Councillor J White

Councillor A Chambers Councillor K Dukes Councillor J Evans Councillor J C Shephard

Councillor T Critchley Councillor A Tromans

Councillor H M Brand

Substitutes: Any Member Lead Officer: Chief Executive

CHIEF OFFICERS’ INVESTIGATING COMMITTEE

(Reporting to Council)

No. of Seats: 3 Political Balance: 2-1

Chairman: Councillor J A Leigh Vice-Chairman: Councillor R B Carrington-Wilde

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc11 Councillor K H Isard

Substitutes: Any Member Lead Officer: As appropriate

HEALTH AND SAFETY COMMITTEE

(Reporting to Cabinet)

No. of Seats: 8 Political Balance: 6-2

Chairman: Councillor D Challinor

Councillor C Entwistle Councillor D Potts Councillor D R Pressley Councillor M Richardson Councillor M Storey

Councillor M T Gray Councillor D Hare

Substitutes: Any member drawn from the same area of representation as the member unable to attend Lead Officer: Director of Regeneration and Neighbourhood Services

INTRODUCTORY TENANCIES APPEAL BOARD

(Reporting to Cabinet)

No. of Seats: 8 Political Balance: 6-2

Councillor J R Anderson Councillor A Chambers Councillor J Potts Councillor H M Richards Councillor S Scotthorne Councillor C Troop

Councillor K Sutton Councillor T Taylor

Substitutes: Any Member unless they were involved in making the decision which formed the subject of the appeal Lead Officer: Principal Solicitor (Licensing and Regulatory)

JOINT EMPLOYEE COUNCIL

(Reporting to Cabinet)

No. of Seats: 5 Political Balance: 4-1

Councillor C Entwistle Councillor J Evans

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc12 Councillor S A Greaves Councillor D G Pidwell

Councillor M T Gray

Substitutes: Any member provided that the substitute is drawn from the same area of representation as the member unable to attend. Lead Officer: Head of Human Resources

STANDARDS SUB-COMMITTEE

(Reporting to Audit and Risk Scrutiny Committee)

Members to be drawn from the Audit and Risk Scrutiny Committee

Lead Officer: Director of Corporate Resources

11. APPOINTMENTS TO OUTSIDE ORGANISATIONS

Members were asked to review, and amend if necessary, appointments to Outside Organisations, as per the tabled report.

RESOLVED that the appointments to Outside Organisations be approved as follows:

A1 HOUSING BOARD (AGM in September) Councillors H M Brand, A Chambers, J Potts and J White

BASSETLAW ACTION CENTRE Councillor C Entwistle

BASSETLAW CITIZENS' ADVICE BUREAU Councillor J Evans

BASSETLAW THIRD SECTOR PARTNERSHIP Board - (Leader) Councillor S A Greaves (Sub – Councillor J White)

BASSETLAW COMMUNITY AND VOLUNTARY SERVICE Councillors J A Leigh and H M Richards

BASSETLAW, NEWARK AND SHERWOOD COMMUNITY SAFETY PARTNERSHIP (Leader) Councillor S A Greaves (Sub – (Deputy Leader) Councillor J White)

BASSETLAW TOWN CENTRE PARTNERSHIP TRUST Councillors J A Leigh, D R Pressley, M W Quigley and J White

BASSETLAW TWINNING ASSOCIATION EXECUTIVE COMMITTEE (AGM in January) Councillors G Clarkson, S Isard and S Scotthorne

DISTRICT COUNCILS’ NETWORK ASSEMBLY (Leader) Councillor S A Greaves (Sub- (Deputy Leader) Councillor J White)

DONCASTER AND BASSETLAW HOSPITALS TRUST Councillor S Shaw

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc13 EAST MIDLANDS MUSEUMS SERVICE Councillor G Clarkson and Museum Curator

EAST MIDLANDS COUNCILS (Leader) Councillor S A Greaves (Sub – (Deputy Leader) Councillor J White) Regional Employers Board - (Leader) Councillor D Challinor Strategic Migration Board – Councillor D Challinor

FOCUS ON YOUNG PEOPLE IN BASSETLAW Councillor S E Shaw

GOODWIN HALL MANAGEMENT COMMITTEE Councillors A Chambers, M W Quigley and C Troop

HOPE Councillor D Potts

INTERNAL DRAINAGE BOARDS Isle of Axholme and North Nottinghamshire Water Level Management Board Councillors H M Brand and J M Sanger Trent Valley Councillors J R Anderson, D Challinor and K H Isard

NHS BASSETLAW PATIENT AND PUBLIC ENGAGEMENT GROUP Councillor D J Merryweather

NOTTINGHAMSHIRE COUNTY COUNCIL Health and Well-being Board - Councillor S E Shaw (Sub -Councillor J R Anderson) Health Scrutiny Committee - Councillor J C Shephard Joint Economic Committee – Councillor J White (Sub- (Leader) S A Greaves)

NOTTINGHAMSHIRE POLICE AND CRIME PANEL Councillor D Challinor (Sub- Councillor M Richardson)

NOTTINGHAMSHIRE RURAL COMMUNITY ACTION Councillor H M Brand

RETFORD LITTLE THEATRE Councillor M Storey (Sub - Councillor J R Anderson)

ROBIN HOOD AIRPORT CONSULTATIVE COMMITTEE Councillor J White (Sub - Councillor H M Richards)

ROTARY CLUB OF WORKSOP (Chairman of Council) Councillor G Jones

ROYAL TOWN PLANNING INSTITUTE (ROOM@RTPI) (Chairman of Planning Committee) Councillor H M Richards (Sub - Vice-Chairman of Planning Committee) Councillor A K Smith

SHEFFIELD CITY REGION Sheffield City Region Combined Authority – (Leader) Councillor S A Greaves (Sub – (Deputy Leader) Councillor J White) Local Enterprise Partnership Board – (Leader) Councillor S A Greaves (Sub – (Deputy Leader) Councillor J White) Combined Authority Scrutiny Committee – Councillor J C Shephard

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc14 Transport Committee – Councillor D G Pidwell STUART GOODWIN CHARITIES (a) Sir Stuart Goodwin Charity (Former Borough) (Retford Town Mayor) and Councillors A Chambers and C Troop (b) Sir Stuart and Lady Goodwin Charity (Former Rural) (Chairman of the District Council) and Councillors H M Brand, H Burton, M T F Critchley and K Dukes

THE CROSSING – SOCIAL ENTERPRISE BOARD Councillor A Rhodes

WELBECK THE FUTURE Councillor K Dukes

WORKSOP CHARITIES Councillor D R Pressley and M Richardson

12. MEETINGS

Members were asked to receive the programme of meetings for the Council for the 2015/16 Municipal Year.

A revised programme of meetings had been tabled as an alternative date was proposed for the March 2016 Council Meeting as the Section 151 Officer had felt that the original date was too early in light of information needed from the Police, Fire and County Council in order to set the level of Council Tax in Bassetlaw.

RESOLVED that the revised programme of meetings for the Council for the 2015/16 Municipal Year, as tabled, be received.

13. ANY OTHER BUSINESS WHICH THE CHAIRMAN CONSIDERS TO BE URGENT

As there was no other urgent business to be discussed the Chairman closed the meeting.

(Meeting closed at 7.05pm.)

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc15

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3 mins co200515.doc16 D R A F T

BASSETLAW DISTRICT COUNCIL

Minutes of the Extraordinary Meeting held on 20th May 2015 at Retford Town Hall

Present: Councillor G Jones (Chairman)

Councillors J R Anderson J A Leigh B A Bowles D J Merryweather H M Brand J W Ogle D K Brett G A N Oxby H Burton D G Pidwell R B Carrington-Wilde D Potts A Chambers J Potts G Clarkson A Rhodes T M F Critchley H M Richards K Dukes M Richardson C Entwistle J M Sanger J Evans S Scotthorne S E Farncombe S E Shaw S Fielding J C Shephard D B Foley A Simpson G Freeman A K Smith M T Gray M Storey K M Greaves K Sutton S A Greaves T Taylor D Hare A D Tromans K H Isard C Troop S Isard

Officers in attendance: D Armiger, J Hamilton, M Hill, N Taylor, R Theakstone, P Webster and S Wormald.

(The Council’s Press Officer was also in attendance.)

(Meeting opened at 7.20pm.)

14. APOLOGIES

Apologies for absence were received from Councillors D Challinor, D R Pressley, M W Quigley and J White.

15. DECLARATIONS OF INTEREST BY MEMBERS AND OFFICERS

(a) Members

There were no declarations of interest by Members on matters to be discussed at the meeting.

(b) Officers

There were no declarations of interest by officers on matters to be discussed at the meeting.

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3a mins coex200515.doc 17 16. HONORARY ALDERMAN – FRANK HART

The Chairman welcomed Mr Frank Hart and his guests to the meeting.

The recommendation to confer the title of Honorary Alderman upon Mr Hart was proposed by Councillor G A N Oxby, who spoke in support of the proposal, and seconded by Councillor D G Pidwell.

RESOLVED that Frank Hart be duly elected to the office of Honorary Alderman.

(Voting was unanimous.)

The Chief Executive read out the declaration and the Chairman presented the badge to Mr Hart. The Vice-Chairman presented Mrs Hart with a bouquet of flowers.

Mr Hart addressed the meeting, thanking Members for the honour.

The Chairman closed the meeting and invited Elected Members, Honorary Aldermen and guests to join Mr Hart in the Council Chamber.

(Meeting closed at 7.30pm.)

F:\Docs\Members\Ms8\REPORTS\Council\June 2015\3a mins coex200515.doc 18 Agenda Item No. 8(a)

R E F E R R A L

from CABINET HELD ON 2ND JUNE 2015

to COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Julie Hamilton, Senior Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 8(a) – PUBLIC SPACES PROTECTION ORDER – DOG CONTROL (KEY DECISION NO. 492)

RESOLVED that:

1. The agreed amendments to the proposed Order be approved and Public Spaces Protection Orders be introduced to: • Require owners to remove dog faeces from all land to which the public are entitled to have access on payment or otherwise, as of right or by virtue of express or implied permission; • Require dogs to be kept on a lead in burial grounds; and • Prohibit dogs to enter a fenced children’s play area. 2. The Order be referred to full Council for adoption and implementation.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Committee Administrator Chief Executive Head of Neighbourhood Services

20 Agenda Item No. 8(a) BASSETLAW DISTRICT COUNCIL

CABINET

2nd June 2015

REPORT OF THE DIRECTOR OF REGENERATION AND NEIGHBOURHOODS

Public Spaces Protection Order - Dog Control

Cabinet Member: Neighbourhoods

Contact: Julian Proudman Ext: 3171

1. Public Interest Test

The author of this report Julian Proudman has determined that this report is not of a confidential nature.

2. Purpose of the Report

To report back to members on the outcome of the formal consultation process and to agree the contents of the proposed Public Space Protection Order.

3. Background and Discussion

3.1 Members will recall, from a previous Cabinet Report (2 December 2014) that the Council resolved to introduce a Public Spaces Protection Order, under Section 59 of the Anti-Social Behaviour, Crime and Policing Act 2014. Consultation in respect of an Order with the following requirements was proposed;

• A requirement for owners to remove dog faeces from all land to which the public are entitled to have access on payment or otherwise, as of right or by virtue of express or implied permission; • A requirement for dogs to be kept on a lead in burial grounds and Nottinghamshire Wildlife Trust nature reserves. • A prohibition on allowing a dog to enter a fenced children’s play area.

3.2 The legislation requires that the Council consult with the chief officer of police, the local policing body, land owners (where practicable) and whatever community representatives the Council thinks it appropriate to consult. However, it was agreed that this Council would consult more widely and consultees included, all Parish Councils, the County Council, District and County Councillors, the Chief Constable, Police and Crime Commissioner, the Policing Body, major land owners and their representatives, tenants and residents’ associations, the Civic Society, the RSPCA, Kennel Club, the Dogs Trust and both Members of Parliament. The proposals were publicised in the local press, on Twitter and the Council’s Facebook page. Members

21 of the public were invited to complete on line Survey Monkey questionnaires, which included the option to included detailed comments. In total 170 survey forms were completed on line. A number of written or e-mailed responses were also received and the proposals were also discussed with interested members of the public at the consultation events held in Retford and Worksop during March.

3.3 Consultation was commenced on 13th February 2015 and closed on 31st March 2015. However, a number of additional areas were suggested, mostly by Parish Councils, during this consultation period. Some of the areas were simple omissions from the original proposed Order, other were suggestions which would extend the scope of the Order beyond that which was originally envisaged. As the legislation requires that the Council consult on all areas that it proposes to include in an Order, it would not have been possible to include any additional areas without further consultation. Consequently, the formal consultation period was extended to 30th April 2015 and the original consultees were contacted again. A second Survey Monkey consultation also appeared on the Council’s web site.

3.4 The consultation responses received have now been collated, interpreted and an officer comment drafted. Responses of a similar nature have been grouped together with a single comment. These responses and comments are attached at Appendix 1 for Members to consider. A copy of all responses in their original form will be available in the Members work room for further perusal by individual Members, should they wish. A copy of the amended Order is attached at Appendix 2. For the benefit of this meeting, new areas of land considered for inclusion in the Order following the first round of consultation have been added in italic. Areas of land that it is proposed not to include in the final Order (including new areas) have been crossed through.

3.5 As explained in the comments to the consultation (Appendix 1), it is suggested that the Order will go forward broadly as originally envisaged, but with one significant change. The requirement to clean up dog faeces in all areas open to the public would remain unchanged. The requirement that dogs must not enter fenced children’s playgrounds will also remain unchanged, and this ban will not be extended to include larger playing fields, as was suggested in a number of consultation comments. However, the requirement to keep dogs on leads will be significantly amended. This requirement will remain for all burial grounds, but it is proposed that the Council will not extend this requirement to Nottinghamshire Wildlife Nature reserves (or indeed, Clumber Park) at this time. It is clear that this part of the proposed Order has been met with significant disagreement, particularly from residents who live close to the reserves, and would benefit from more detailed and focused consultation. It is suggested that the Wildlife Trust, (and National Trust) would be better placed than the Council to undertake a more focused consultation directly with the users of the nature reserves themselves. This would enable the Trusts to better understand the needs and wishes of the reserves and park users and design a dog control programme that could be put in place with the agreement and cooperation of those users. The agreement would, of course, be voluntary, but if the Trusts found that dog owners flouted the agreed programme, and the Trusts could evidence this to the Council, the Trust reserves and/or Clumber Park could be added to our Order upon its renewal in three years’ time, or in the interim by way of a Variation to the Order.

3.6 The final draft of the Order, if approved by Members, will be forwarded to Full Council for final approval. The effects of the Order will then be publicised widely, in accordance with Regulations made by the Secretary of State, together with a commencement date.

22 3.7 The legislation allows for a challenge to a Public Spaces Protection Order. An “interested person” may appeal to the High Court within six weeks of the Order coming into force on the grounds that the Council did not have power to make the Order, or the correct the correct procedure had not been followed in making the Order.

3.8 Failure to comply with the requirements of a Public Spaces Protection Order is an offence with a maximum penalty upon conviction of a Level 3 fine (currently £1000). Alternatively, the alleged offender may be offered the opportunity of discharging any liability to conviction for the offence by payment of a fixed penalty of £100.

4.0 Proposals

It is proposed that the original draft Order is amended in accordance with the decisions made by Cabinet at this meeting and that the final version is submitted to Full Council for approval.

4. Implications

a) For service users

Updated and extended dog controls will improve public open spaces within the District.

b) Strategic & Policy

Meets the Corporate Plan 2012-15 priority “Create pride in our neighbourhoods which are clean, safe and accessible”

c) Financial - Ref: 16/146

None from this report

d) Legal – Ref: 144/06/15

None - Enforcement of the orders will come under existing powers

e) Human Resources

None from this report

f) Community Safety, Equalities, Environmental

Nuisance resulting from the actions of a minority of irresponsible dog owners will be effectively controlled. An Equality Impact Assessment has been undertaken as the introduction of additional controls over dogs could have an adverse effect on the elderly and people with disabilities.

g) Whether this is a key decision, and if so the reference number.

Key Decision No. 492.

23 5. Options, Risks and Reasons for Recommendations

5.1 Members do not agree to the proposed Public Spaces Protection Orders and rely on existing controls within Bassetlaw.

5.2 Members agree appropriate amendments to the proposed Public Spaces Protection Order and forward the Order to Full Council for formal approval.

6. Recommendations

6.1 On due consideration Cabinet agrees to the proposed Order with agreed amendments and that public space protection orders be introduced to;

a) Require owners to remove dog faeces from all land to which the public are entitled to have access on payment or otherwise, as of right or by virtue of express or implied permission; b) Require dogs to be kept on a lead in burial grounds. c) Prohibit dogs to enter a fenced children’s play area.

Background Papers Location

24 APPENDIX 1

Public Spaces Protection Order – Dog Control

Response to Formal Consultation.

The Council undertook to consult widely on the proposed Public Spaces Protection Order and consultees included all Parish Councils, the County Council, District and County Councillors, the Chief Constable, Police and Crime Commissioner, the Policing Body, major land owners and their representatives, tenants and residents’ associations, the Civic Society, the RSPCA, Kennel Club, the Dogs Trust and both Members of Parliament. The proposals were publicised in the local press, on Twitter and the Council’s Facebook page. Members of the public were invited to complete on line Survey Monkey questionnaires.

Responses received were very much at the grass roots level, which is encouraging as this represents those who would be most affected by the introduction of the proposed Order and included District Councillor, Parishes, members of the public (both owners and non-owners), dog owners’ charities and land owners.

Dog Fouling.

In the first round of consultation, the Council sought views on whether the requirement to clean up dog faeces should be extended to all areas to which the public, or any section of the public has access on payment or otherwise, as of right or by express or implied permission. This is a very much broader requirement than previously and would, for example, extend this requirement to public footpaths across farmland, privately owned woodland where the owner allowed access, privately owned shopping centres, etc, effectively anywhere where a member of the public is permitted to be with a dog.

This proposal received strong support, with 85.8% of online submissions in agreement, with 10.8% disagreeing and 3.4% feeling that the areas covered should be reduced.

Of the written comments left, a number of responders disagreed on the basis that a requirement to clean up faeces in a built up area was necessary, but was overly onerous and unnecessary in rural locations such as woodland. For example, why would it be really necessary to clean up faeces that had been deposited in a nettle patch or other place only accessible to dogs, or places where members of the public only infrequently visit.

Comment

This is an understandable view and certainly, the problem of dog fouling is more significant in built up and more populated areas. However, trying to limit this requirement only to populous areas would require all areas covered by the Order to be accurately mapped. Apart from being an unreasonably onerous task, this would inevitably lead to areas being accidently omitted and would necessitate both dog

25 owners and enforcement officers carrying around a copy of the whole Order so that they could be certain of just where the Order applied. Including all areas that can legally be included removes this doubt, as owners will always be required to clean up in a public place and there will be certainty for both owners and enforcement officers.

Dog Fouling.

In the first round of consultation, one responder raised the legal point that Public Spaces Protection Orders are aimed at situations where the “Authority is satisfied on reasonable grounds that the activities carried on have a detrimental effect on the quality of life of those in the locality”. The responder felt that dog fouling in, for example, an urban park, clearly falls within this definition, but questions whether we have sufficient evidence that dog fouling is a problem in more rural locations.

Comment It is agreed that the evidence that fouling is a significant problem in all the areas that this Order would cover is limited. It would be very difficult to design an Order that that only included areas where we had the evidence of a problem, as there are likely to be areas with a problem that we have not been made aware of. We have taken legal advice on this point and it is believed that it is appropriate to include all possible areas as fouling in such areas, if it occurs, will have a detrimental effect.

Dog Fouling. A very large number of responses either commented that enforcement of both existing and proposed Orders needed to be adequately carried out, or questioned whether the Council would be capable of employing sufficient time or staff to properly enforce the legislation.

Comment This is a very valid point. A belief that legislation will not be enforced can undermine legislation that would otherwise be well supported. Dog owners who would normally be very law abiding can easily decide not to comply when they see others repeatedly failing to comply with the law with impunity.

Enforcement resources are scarce, but the Council has committed to enforce this new dog control legislation and officers will be actively enforcing, responding to reports of breaches reported by members of the public and will publicise successful enforcement actions.

Dogs on Leads.

In the first round of consultation views were sought on the desirability of a requirement that dogs should be on leads in burial grounds, including cemeteries and church yards, and in nature reserves managed by Nottinghamshire Wildlife Trust. The rationale behind a requirement to keep dogs on leads in nature reserves was to prevent wildlife being disturbed by dogs. Council officers are not well qualified to determine exactly where, in what circumstances and at what time of year it would be desirable for dogs to be kept on leads and, indeed, this could frequently change. It was envisaged, therefore, that a ”blanket” requirement to keep dogs on leads could allow scope for the Wildlife Trust to work with the Council and relax this

26 requirement as much as possible to provide areas where dogs would be allowed to run freely off a lead.

The proposal for dogs to be on leads in burial grounds and nature reserves received mixed support. 59.5% of the online submissions were in agreement, with 27.7% disagreeing. A further 12.8% thought that the Order should be extended to cover additional types of public open space.

The written comments submitted in response to this question show a distinct split in opinion between the proposal to require dogs to be on leads in burial grounds and the requirement for dogs to be on leads in nature reserves. A significant number of those who disagreed with this proposal stated that they disagreed with respect to nature reserves (30 respondents raised specific objections), but actually agreed with respect to burial grounds.

A number of respondents were in favour of extending the banning of dogs, or the requirement to keeps dogs on leads. A number believed that dogs should always to on a lead in public places, others believed that the ban on dogs, or the requirement to be on leads should apply not just to fenced children’s play areas, but to larger playing fields as well.

A number of respondents were in favour of relaxing the proposed requirements, in particular, many respondents believed that it was necessary that dogs should be allowed to run off a lead somewhere, citing the Animal Welfare Act requirements for dogs (a point which was also raised by the Kennel Club, RSPCA and the Dogs’ Trust). Others were concerned that there would be no places left where owners would be free to walk or run their dogs.

A number of respondents who clearly live in Lound stated that they had been living in the village and able to use the land now occupied by the reverse for many years before the reserve came into being. They supported the idea of the reserve but now feel let down that their use of it may be restricted. Some expressed the view that most of the owners (including bird watchers) who walked their dogs on the reserve respected it as a nature reserve and took care to control their dogs. Others expressed the view that many of the more sensitive areas on the reserve are fenced off and access is not possible, therefore a more general requirement to be on leads is not necessary. A number of respondents inferred that dog owners visiting the reserve represent a major source of support to the reserve and discouraging dog owners from visiting would be to the reserve’s detriment. One respondent put forward the view that most dog owners were responsible and that aiming to control the irresponsible minority would have an unnecessarily negative impact on responsible owners. The view was expressed that perhaps irresponsible owners could be identified and controlled individually using alternative powers rather than applying a blanket requirement on all owners.

The point was raised that resources would be better spent on core Council services, rather than used to extend services beyond those existing.

27 Comment Apart from a suggestion that Retford cemetery and a suggestion that St Helen’s Churchyard South Wheatley should not be included in the “dogs on leads” Order, there seems to be broad support for dogs to be on leads in burial grounds.

It is clear from the responses that a requirement for dogs to be on leads in nature reserves is not very popular. The original objective of introducing this Public Spaces Protection Order was to seek to control irresponsible owners without being over restrictive on, or by punishing, responsible ones. It was envisaged that responsible owners would broadly support the proposals because in most cases they would already be following the requirements of the Order as a matter of course and would, therefore, agree with the Council’s opinion. That there is significant disagreement to part of the Order is of some concern and risks the Council (and, indeed, the Wildlife Trust) losing the good will of dog owners in Bassetlaw –with the Council appearing “anti-dog”.

The protection of wildlife must be a concern. A dog actively attacking wildlife is of course reprehensible, and all responsible dog owners would agree with this. However, the Wildlife Trust have put forward the view that any dog, even one owned by a responsible owner, that is allowed to run unleashed in the countryside will inadvertently disturb wildlife. This could include wildlife which, particularly in winter, needs to rest to conserve energy and being repeatedly disturbed by dogs could fatally deplete their energy reserves.

Given the opposition to this part of the proposed Order is strong (It is also understood that the Wildlife Trust have received a petition against “banning” dogs from Trust nature reserves) and there seems to be a real risk that the Council will inadvertently create discontent between dog owners and the Trust, it may be appropriate to review this part of the proposal. It is suggested that there are three possible courses of action. Members could continue with the proposal that dogs must be on leads in nature reserves, and the Council then work closely with the Trust and dog owners to agree a scheme to relax this requirement where appropriate on reserves. Members could delay introducing the Order to give time to discuss which parts of the reserves need an “on leads” requirement and which parts should be available for dogs to run off leads. Finally, Members may wish to remove this proposal from the Order and allow the Wildlife Trust the opportunity to introduce a voluntary code for dog walkers. If this fails to have the desired effect, then the Council could consider re-introducing this requirement to the Order when it is next renewed in three years’ time. In their response to the first round of consultation, the National Trust asked if their land could be included in a dogs on leads requirement similar to that suggested for the Wildlife Trust. This proposal was included in the second round of consultation, and although the number of negative comments were few, this suggestion did not attract public approval. 61.9% of respondents were not in favour of extending the dogs on leads requirement to the additional areas consulted on, including the National trust Land.

From the comments, it is clear that there are opposing views on whether the proposals should be relaxed or extended and it is clear that a balance must be struck. Although extending dogs on leads requirements or dog bans from larger playing fields may seem desirable, there is a need for dogs to be run off a lead

28 somewhere – from an animal welfare point of view. The elderly or disabled, or those without transport may have difficulty travelling to unrestricted open space and may rely on parkland close to their home and this policy runs the risk of inadvertent discrimination. One land owner suggested that the recreation ground off Blyth Road in Worksop and the Kilton Forest Golf Course should be subject to a dogs to be on leads requirement, although these areas of land are currently controlled by Bassetlaw District Council. If the problem is that dogs foul playing fields, then this may better be covered by rigorous enforcement of the dog fouling limb of the proposed Order, rather than relying on dogs on leads requirements or dog bans. If dogs off a lead are causing a problem on a playing field/public open spaces, there is scope in the legislation to single out and tackle individual problem owners via the Community Protection Notice route rather than imposing a blanket requirement on all owners.

Dog Exclusion The proposed banning of dogs from fenced children’s play areas generally received support, with 80.4% of respondents agreeing, 8.8% disagreeing, and 10.8% believing that the ban should be extended to additional areas. However, a point was made that parents with children will wish to take the dog to the park too. Others suggested a dogs to be on leads requirement would be more appropriate rather than a total ban. As the proposed Order seeks only to ban dogs from what are generally very small fenced areas, it does not seem unreasonable that a dog could be tied up outside, but still be close to, and in full view of the owners. A number of Parish Councils responded to the first round of consultation asking for larger playing fields, that contain fenced children’s playgrounds, to be included in the exclusion clause of the Order. These additional areas were included in the second round of consultation. 83.3% of respondents were not in favour of extending the ban in this way, citing the need for owners to have somewhere to run their dogs. Four Parishes requested that their children’s play areas be included in the ban, but issues have arisen because they are not effectively fenced off from the larger playing field. Ranskill can be taken as an example, the children’s play equipment is situated at one end of a larger field, and a public right of way passes through the field. It would not be practicable to include the play area unfenced, as it would be difficult/impossible for both an owner or an enforcement officer to be certain of when an offence had been committed. It would also be problematic to ban dogs from the whole park because of the public right of way. It is possible to exclude dogs where there is a right of way, but the Council would have to follow a different public consultation procedure. When originally formulating the proposed Order it was not envisaged that the Council would wish to challenge long held rights to follow public rights of way. It is regrettable that the proposed exclusion clause of the Order may not be ideal as there will remain some play areas that will not be adequately protected by the proposed ban.

30 APPENDIX 2

The Anti-social Behaviour, Crime and Policing Act 2014

The Bassetlaw District Council- Public Spaces Protection (Dog Control) Order 2015

Bassetlaw District Council (in this order called “the Authority”) hereby makes the following Order:

This Order comes into force on 1st September 2015 for a period of 3 years.

Offences

1. Fouling If within the administrative area of the Authority a dog defecates at any time on land to which the public or any section of the public has access, on payment or otherwise, as of right or by virtue of express or implied permission and a person who is in charge of the dog at the time fails to remove the faeces from the land forthwith, that person shall be guilty of an offence unless

(a) he has reasonable excuse for failing to do so; or (b) the owner, occupier or other person or authority having control of the land has consented (generally or specifically) to his failing to do so.

2. Leads A person in charge of a dog shall be guilty of an offence if, at any time, on land detailed in Schedule 1 below he does not keep the dog on a lead unless

3. Exclusion A person in charge of a dog shall be guilty of an offence if, at any time, he takes the dog onto, or permits the dog to enter or to remain on, any land detailed in Schedule 2 below unless

31 4. Exemptions

Nothing in this order shall apply to a person who –

(a) is registered as a blind person in a register compiled under section 29 of the National Assistance Act 1948; or (b) is deaf, in respect of a dog trained by Hearing Dogs for Deaf People (registered charity number 293358) and upon which he relies for assistance; or (c) has a disability which affects his mobility, manual dexterity, physical coordination or ability to lift, carry or otherwise move everyday objects, in respect of a dog trained by a prescribed charity and upon which he relies for assistance.

For the purpose of this order – • A person who habitually has a dog in his possession shall be taken to be in charge of the dog at any time unless at that time some other person is in charge of the dog; • Placing the faeces in a receptacle on the land which is provided for the purpose, or for the disposal of waste, shall be sufficient removal from the land; • Being unaware of the defecation (whether by reason of not being in the vicinity or otherwise), or not having a device for or other suitable means of removing the faeces shall not be a reasonable excuse for failing to remove the faeces • “an authorised officer of the Authority” means an employee, partnership agency or contractor of Bassetlaw District Council who is authorised in writing by Bassetlaw District Council for the purposes of giving directions under the Order. • Each of the following is a "prescribed charity" – - Dogs for the Disabled (registered charily number 700454) - Support Dogs Limited (registered charity number 1088281) - Canine Partners for Independence (registered charity number 803680)

5. Penalty A person who is guilty of an offence under this order shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Schedule One - Keeping of Dogs On Lead

This Order applies to all the land described below.

1. The following Churchyards, Cemeteries and Burial Grounds Askham St Nicholas’s Churchyard, Askham

Babworth All Saints’ Churchyard, Babworth

Beckingham All Saints Churchyard, Beckingham Beecher Lane Cemetery, Beckingham

Blyth St Mary and St Martin’s Churchyard, Blyth Blyth Cemetery, Spital Road, Blyth

Bole St Martin’s Churchyard, Bole

Bothamsall Our Lady and St Peter’s Churchyard, Bothamsall Additional Burial Ground, Redhill Lane, Bothamsall

Carburton St Giles’s Churchyard, Carburton.

Carlton in Lindrick St John the Evangelist’s Churchyard Carlton in Lindrick Burial Ground, High Road, Carlton in Lindrick

Clarborough St John the Baptist’s Churchyard, Clarborough

Clayworth St Peter’s Churchyard, Clayworth Burial Ground, Church Lane, Clayworth

Darlton St Giles’s Churchyard, Darlton

Dunham on Trent St Oswald’s Churchyard, Dunham on Trent

East Drayton St Peter’s Churchyard, East Drayton

East Markham St John’s the Baptist Churchyard, East Markham.

Eaton All Saints’ Churchyard, Eaton

Elkesley St Giles’s Churchyard, Elkesley Elkesley Cemetery, High Street, Elkesley

Everton Holy Trinity Churchyard, Everton. Everton and Scaftworth Cemetery, Mattersey Road, Everton.

Fledborough St Gregory’s Churchyard, Fledborough.

Gamston St Pete’s Churchyard, Gamston

Gringley on the Hill St Peter and St Paul’s Churchyard, Gringley on the Hill. Gringley on the Hill Cemetery, Mill Hill, Gringley on the Hill.

Grove St Hellen’s Churchyard, Grove.

Harworth All Saints Churchyard, Harworth Harworth Cemetery, Tickhill Road, Harworth Harworth New Cemetery, Styrrup Road, Harworth

Hayton St Peter’s Churchyard, Hayton

Headon cum Upton St Peter’s Churchyard, Headon cum Upton

Holbeck St Winifred’s Churchyard, Holbeck

Laneham St Peter’s Churchyard Laneham

Langold St Luke’s Churchyard, Langold Langold Cemetery, Cemetery Road, Langold

Littleborough St Nicholas’ Churchyard, Littleborough

Low Marnham St Wilfrid’s Churchyard, Low Marnham

Mattersey All Saints’ Churchyard, Mattersey Thorpe Road Cemetery, Mattersey

Misson St John the Baptist’s Churchyard, Misson Misson Cemetery, Top Road, Misson.

Misterton All Saints’ Churchyard, Misterton. Cemetery, Haxey Road Misterton.

Normanton on Trent St Matthew’s Churchyard, Normanton on Trent Cemetery, Eastgate, Normanton on Trent

North Leverton St Martin’s Churchyard, North Leverton.

North Wheatley St Peters and St Paul’s Churchyard North Wheatley.

Norton Cuckney St Mary’s Churchyard, Norton Cuckney

Oldcotes St Mark’s Churchyard, Oldcotes St Helen’s Churchyard Main Street Oldcotes.

Ragnall St Leonard’s Churchyard, Ragnall

Rampton All Saints’ Churchyard, Rampton

Ranby St Martin’s Churchyard, Ranby

Ranskill St Barnabas’s Churchyard, Ranskill Ranskill and Torworth Cemetery, Great North Road, Ranskill.

Retford All Hallow’s Churchyard, Ordsall, Retford. St Michael the Archangel’s Churchyard, Retford. St Saviour’s Churchyard, Retford St Swithun’s Churchyard, Retford Retford Cemetery, North Road/Babworth Road, Retford

Scofton St John’s Churchyard, Scofton

Scrooby St Wilfrid’s Churchyard, Scrooby Green Burial Ground, Hawks Nest, Scrooby.

Shireoaks St Luke’s Churchyard, Shireoaks.

South Leverton All Saints’ Churchyard, South Leverton.

South Wheatley St Helen’s Churchyard, South Wheatley

Stokeham St Peter’s Churchyard, Stokeham

Sturton Le Steeple St Peter and St Paul’s Churchyard, Sturton Le Steeple

Sutton Cum Lound St Bartholomew’s Churchyard, Sutton Cum Lound.

Treswell St John the Baptist’s Churchyard, Treswell

Tuxford St Nicholas’s Churchyard, Tuxford Tuxford Cemetery, Newark Road, Tuxford.

Walkeringham

St Mary Magdalene’s Churchyard, Walkeringham. Walkeringham Cemetery, Mill Lane, Walkeringham.

West Drayton St Paul’s Churchyard, West Drayton

West Markham

All Saints’ Churchyard, West Markham. Milton Mausoleum, Milton

West Stockwith. St Mary the Blessed Virgin’s Churchyard, West Stockwith.

Whaley Thorns St Lukes Burial Ground, Cockshut Lane, Whaley Thorns

Worksop St Anne’s Churchyard, Worksop St John the Evangelist’s Churchyard, Worksop The Priory Church of Our Lady and St Cuthbert’s Churchyard, Worksop Hannah Park Cemetery, Netherton Road, Worksop Retford Road Cemetery, Worksop. The Cemetery, Cemetery Road, Worksop

Schedule Two - Dog Exclusion Areas

This Order applies to all the land described below.

Beckingham Children’s Playground and multi-use games area adjacent to the village hall, Station Road, Beckingham

Blyth Children’s Playground adjacent to Sherwood Crescent, Blyth Children’s Playground to the rear of Spital Road, Blyth

Bircotes and Harworth Children’s Playground within Snipe Park, Bircotes Children’s Playground and multi-use games area within Tommy Simpsons Recreation Ground adjacent to Lindsey Road, Harworth

Carlton in Lindrick Children’s Playground to the rear of Beckett Avenue, Carlton in Lindrick. Children’s Playground adjacent to Limetree Avenue, Carlton in Lindrick Children’s Playground adjacent to Pembroke Road, Carlton in Lindrick Village Pond, The Green Carlton in Lindrick

Clarborough Children’s Playground to the rear of the village hall, Main Street, Clarborough. Children’s Ball Park, Smeath Lane, Clarborough.

Clayworth Children’s Playground to the rear of the village hall, Town Street, Clayworth.

Darlton Children’s Playground, Woodcoates Lane, Darlton.

Dunham on Trent Children’s Playground to the rear of the village Hall, Low Street, Dunham on Trent.

East Markham Picnic Area, Tuxford Road, East Markham

38 Elkesely Children’s Playground off Lime Tree Avenue, Elkesley.

Everton Metcalfe Charitable Trust Children’s Playground High Street, Everton.

Gringley on the Hill Children’s Playing Field, Finkell Street, Gringley on the Hill

Hayton Playing Filed adjacent to Church Lane, Hayton.

Holbeck Children’s Playground Holbeck.

Laneham Children’s Play Area, Broadings Lane, Laneham

Langold Children’s Playground and Water Play area, Langold Lake, Langold

Lound Children’s Playground and Playing Field Daneshill Road, Lound

Mattersey Thorpe Children’s Playground adjacent to Winston Green, Mattersey Thorpe

Misson Public Access Playing Field, Misson Primary School, Misson

Misterton Children’s Playground, multi-use games area and playing fields adjacent to Marsh Lane, Misterton. Children’s Playground adjacent to High Street, Misterton.

North Leverton Blacksmith’s Playing Field adjacent to Main Street, North Leverton.

Norton Cuckney. Children’s Playground, Main Street, Norton. Children’s Playground and Playing Field adjacent to Creswell Road, Cuckney

Oldcotes Children’s Playground adjacent to Ellesmere Drive, Oldcotes.

Rampton Children’s Playground and Playing field adjacent to Retford Road, Rampton

39 Ranskill Children’s Playground and Playing Field adjacent to Mattersey Road, Ranskill.

Rhodesia Children’s Playground adjacent to Mary street, Rhodesia

Scrooby Children’s Playground, The Croft, Scrooby

Shireoaks Children’s Playground to the rear of York Place, Shireoaks.

Sturton le Steeple. Children’s Playground, Cross Street, Sturton le Steeple.

Styrrup Children’s Playground to the rear of Styrrup Village Hall, Serlby Road, Styrrup.

Sutton Children’s Playground adjacent to the village hall, Town Street, Sutton.

Tuxford Children’s Playground and Multi-use games area, Ashvale Road, Tuxford. Children’s Playground adjacent to Linden Avenue, Tuxford Children’s Playground and Playing Field adjacent to Clarke Lane, Tuxford.

Walkeringham Children’s Playground adjacent to Mill Baulk Road, Walkeringham.

West Stockwith Children’s Playground adjacent to Main Street, West Stockwith.

Wheatley (North and South) Children’s Playground adjacent to the village hall, Sturton Road, Wheatley.

Woodbeck Children’s Playground and Multi-use games area at Rampton Hospital, Woodbeck.

Retford Children’s Playground and Multi-use games area adjacent to Goosemoor Lane, Retford. Children’s Playground and Multi-use games area adjacent to Leafield, Hallcroft, Retford. Children’s Playground and Multi-use games Area within King’s Park, Retford. Children’s Playground adjacent to Leverton Road, Retford. Children’s Playground adjacent to the Oval, Retford. Children’s Playground adjacent to Strawberry Road, Retford.

40 Worksop Children’s Playground and Multi-use games area within Farr Park, Worksop. Children’s Playground adjacent to Keswick Road, Worksop. Children’s Playground and Multi-use games area adjacent to Northwood, Prospect, Worksop. Children’ Playground and Multi-use games area to the rear of Raymoth Lane, Worksop. Children’s Playground adjacent to Sandhill Street, Worksop. Children’s Playground and Multi-use games area within the Rainbow Park, Shrewsbury Road, Worksop. Children’s Playground and Multi-use games area within The Canch, Priorswell Road, Worksop. Children’s Playground adjacent to Valley Road, Worksop. Children’s Playground adjacent to Wensleydale, Worksop. Multi-use games area to the rear of Oakwood Mews St Annes, Worksop. Children’s Playground adjacent to Meadow Lea, St Annes, Worksop.

42 Agenda Item No. 8(b)

R E F E R R A L

from CABINET HELD ON 2ND JUNE 2015

to COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Julie Hamilton, Senior Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 8(c) – FOOD SAFETY SERVICE PLAN 2015/16 (KEY DECISION NO. 499)

RESOLVED that:

1. The Food Safety Service Plan for 2015/16 be endorsed and be referred to full Council for approval and implementation. 2. The Food Safety Team be congratulated on their success nationally and their initiatives locally.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Committee Administrator Chief Executive Head of Neighbourhood Services

Agenda Item No. 8(c)

BASSETLAW DISTRICT COUNCIL

CABINET

2nd June 2015

REPORT OF DIRECTOR OF REGENERATION AND NEIGHBOURHOODS

FOOD SAFETY SERVICE PLAN 2015/16

Cabinet Member: Neighbourhoods Contact: G Bailey Ext: 3452

1. Public Interest Test

The author of this report, Gavin Bailey, Environmental Health Manager, has determined that this report is not considered to be of a confidential nature.

2. Purpose of the Report

2.1 To propose that the Food Safety Service Plan for 2015/16 is approved and adopted by the Council in accordance with Chapter 1, Para.10 and Chapter 2, Para. 3.1 of The Food Standard Agency (FSA) “Framework Agreement on Local Authority Food Law Enforcement”.

3. Background and Discussion

3.1 The Service Plan (attached as an appendix to this report) builds upon last year’s Plan and seeks to ensure that national priorities and standards are addressed and delivered locally. It takes into account local circumstances and reflects the Council’s ambitions for the district as contained within the current Corporate Plan. It also takes into account the national Food Hygiene Rating Scheme and forthcoming legislative changes.

3.2 The Service Plan includes:

• Information about the services we provide, • The demands placed on the Food Service, • Details of our enforcement approach, • Staff development approach, • Resources needed to provide identified services, • Quality and control mechanisms in place, • Review of our last year’s performance, • Identification of areas for improvement, and • Identification of the key work areas for 2015/16.

3.3 The plan provides the foundation of the Councils approach to food safety, enforcement and education. It will help to ensure that policies, procedures and working practices are consistent with national guidance and in line with enforcement activities in Councils across the country.

3.4 The Food Safety Service Plan contains detailed consideration of the 2014/15 performance against the previous year’s plan. The following are some key areas of work that were completed in 2014/15 by the food safety team;

• 701 inspection and intervention visits were made to food premises within the district. • 804 premises were eligible to be part of the National Food Hygiene Rating Scheme. Of those, 98% are broadly compliant with food law. • 120 food samples were taken for analysis. • 188 written warnings and 6 improvement notices were issued. • The authority participated in national and local food sampling programmes. • We were notified of 225 food born or infectious diseases. • We investigated 89 complaints related to food or food premises. • We held workshops for food businesses to prepare them for the advent of the Food Information Regulations in December 2014.

3.5 The main work areas for 2015/16 are detailed within the food safety service plan. The key areas are highlighted below;

• Continue to participate in a food -sampling programme to include the required level of imported food samples and ensure sampling credit uptake is met. • To refresh the authorities food safety procedures. • To complete Food Safety Inspections and interventions in line with National and Local targets. • Operate the Food Hygiene Rating Scheme in accordance with the ‘Brand Standard’. • Report results of the Customer Satisfaction Survey through a service PI. • Provide advice and support to businesses within the district regarding food safety, legal compliance and Food Information Regulations. • Participate in the Nottinghamshire Food Liaison Groups Inter Authority Audit program. • Participate in Food Safety Week 2015 and other additional promotional campaigns. • Target interventions and actions on poor performing premises.

3.6 The Service Plan is a statutorily required document. It is important that this plan is formally approved by members of the Council. This will ensure transparency and accountability of the Council’s local food safety services. Because the plan includes analysis and reflection on the previous year’s performance and achievement it cannot be fully completed until figures are submitted and validated. This means that in practical terms it does not complete the formal adoption process until part way through the year.

4. Implications

a) For service users

This Service Plan shows service users, including local businesses and members of the public, the Council’s approach to food safety inspection, intervention, enforcement and education during the 2015/16 financial year.

b) Strategic & Policy

This plan links into the Council’s Corporate Plan ambitions. In particular, the delivery of an efficient and effective Food Safety service will help to support and maintain a vibrant local economy and a safe and healthy environment for residents and visitors to the area. This will in turn improve customer satisfaction in the quality of services the Council provides, and also helps build local pride in the standards achieved by food businesses within the area.

c) Financial – Ref: 16 284

There are no foreseen financial implications, as the proposed plan does not require any additional resources to those contained within existing budgets.

d) Legal – Ref: 141/06/15

The Council is under a statutory duty to produce a Food Safety service plan, and for it to be approved by Cabinet and full Council as outlined in paragraph 2.1 of this report. Local Authorities are also placed under a statutory duty to make adequate arrangements for the inspection of food premises and the enforcement of food safety laws within their districts.

e) Human Resources

There is an on-going annual training and CPD requirement in relation to enforcement of food safety legislation. This is evaluated and addressed as part of the Council’s Development & Appraisal Scheme.

f) Community Safety, Equalities, Environmental

The Plan will inform residents, visitors and local businesses how the Council intends to conduct their food safety responsibilities in an open and transparent way. The plan is the Council’s blueprint on how it will seek to ensure high standards of food safety within the district.

g) This is Key Decision No. 499.

5. Options, Risks and Reasons for Recommendations

Production and approval of a Food Service Plan is a requirement of Chapter 1, Para.10 and Chapter 2, Para. 3.1 of The Food Standard Agency (FSA) “Framework Agreement on Local Authority Food Law Enforcement”. There is therefore no other realistic option than to produce a Service Plan.

The recommendation to approve the attached plan is based on the fact that it is a requirement of a Central Government Agency. Failure to produce a Food Safety service plan could lead to the Food Standards Agency taking formal action to ensure we do produce such a plan.

6. Recommendations

6.1 That Members endorse the Food Safety Service Plan for 2015/16.

6.2 That Cabinet refers the Food Safety Service Plan for 2015/16 to Council for approval and implementation.

Background Papers Location

The Food Standard Agency (FSA) Environmental Health Regulatory Team “Framework Agreement on Local Queens Buildings Authority Food Law Enforcement” Worksop, Notts. Food Hygiene Rating Scheme – ‘Brand Standard’

48 Bassetlaw District Council – Food Safety Service Plan 2015/16

Food Safety Enforcement Service Delivery Plan

2015/16

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Contents

Contents ...... 2 Introduction ...... 3 1. Service Aims and Objectives ...... 3 1.1 Service Aims ...... 3 1.2 Key service delivery objectives 2015/16 ...... 4 1.3 National Priorities for Local Authority Food Safety Services ...... 5 1.4 Links to the Corporate Objectives and the Corporate Plan ...... 5 2. Background ...... 6 2.1 Profile of the Bassetlaw district ...... 6 2.2 Council Organisational Structure ...... 6 2.3 Scope of the Council’s Food Safety Service ...... 9 2.4 Demands on the Food Safety Service ...... 10 2.5 Regulation Policy ...... 12 3. Service Delivery...... 13 3.1 Interventions at Food Establishments ...... 13 3.2 Food Complaints...... 16 3.3 Primary Authority Principle ...... 16 3.4 Advice to Businesses ...... 17 3.5 Food Sampling ...... 17 3.6 Control & Investigation of Outbreaks and Food Related Infectious Diseases ...... 19 3.7 Food Safety Incidents ...... 19 3.8 Liaison with other Organizations ...... 20 3.9 Food Safety promotional work and non-official control interventions ...... 21 4. Resources ...... 22 4.1 Financial Allocation...... 22 4.2 Staffing Allocation ...... 23 4.3 Staff Development Plan ...... 23 5. Quality Assessment ...... 24 5.1 Quality Assessment and internal monitoring ...... 24 6. Review Process ...... 25 6.1 Review against Service Plan ...... 25 6.2 Variation from Service Plan ...... 28 6.3 Formal Enforcement Actions 2014/15...... 28 6.4 Areas of Improvement...... 28

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Introduction

This Service Plan has been developed by Bassetlaw District Council in line with the Food Standards Agency (FSA) Framework Agreement, as amended in 2010, which requires Local Authorities to produce an annual service plan detailing the Authority’s arrangements for discharging its statutory Food Safety responsibilities. It forms the basis of the Authority’s food business inspection and enforcement functions, and ensures that national food priorities and standards are addressed, as well as locally identified needs.

The production of a Food Service Plan ensures that local food business operators, members of the public, Members of the Council and other agencies understand the approach to food safety inspection, intervention and enforcement adopted by this Authority. This service plan details how the Environmental Health Regulatory Team of Bassetlaw District Council plans to undertake its duties and contribute to national targets and locally identified priorities and ambitions. It also demonstrates our commitment to the provision of an effective and value for money service that is fair, consistent, open and proportionate.

1. Service Aims and Objectives

1.1 Service Aims

The aim of Bassetlaw District Council’s Food Safety Service is to ensure, through a combination of inspection, interventions, education and enforcement, that food and drink which is produced, stored, distributed, prepared or sold within the District meets food safety standards and is without risk to health.

We will ensure that all Food Safety law enforcement that is undertaken by Bassetlaw District Council is informed by the principles of;

• Proportionality in application of the law and securing compliance • Consistency of approach • Targeting of enforcement action, and • Transparency in how we operate and what duty holders subject to regulation, and the wider public may reasonably expect.

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1.2 Key service delivery objectives 2015/16

• To undertake a risk-based programme of official controls and other interventions, in accordance with the Food Law Code of Practice (England) and any associated Practice Guidance. Official controls are those undertaken to check compliance with food laws and will comprise visits to premises to undertake food hygiene inspections, audits, sampling, monitoring, surveillance or verification. Other interventions consist of advice, education, coaching and information and intelligence gathering.

• To register food businesses in accordance with the Food Premises (Registration) Regulations 1991, as amended.

• To carry out a programme of sampling in accordance with national and locally agreed initiatives.

• To implement the National UK Food Surveillance system (UKFSS) for our food samples.

• To provide advice, guidance, information and education on matters relating to food safety and hygiene, both pro-actively and in response to requests from food businesses, and the wider residential community,

• To respond to complaints concerning food safety.

• To provide a risk-based response to notifications of food related illnesses.

• To carry out regulatory responsibilities in relation to food safety in a manner consistent with best practice as identified by the Hampton Review of regulatory inspections and enforcement and by the Better Regulation Delivery Office (BRDO). This means that inspection, intervention and enforcement activity will be necessary, appropriate, targeted and proportionate to the risks posed.

• To publish the scores of Food Safety inspections to the public via the national Food Hygiene Rating Scheme website and carry out the inspection and rating of included premises in line with the ‘Brand Standard’.

• To meet local Performance Indicators set for the food Safety Service.

• To review and update and further develop the content of the service’s internet pages.

• To participate in National Food Safety Week and other relevant educational events

• To provide advice and guidance to food businesses in relation to the Food Information regulations that are due to come into effect in late 2014

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• To encourage food take away businesses to offer healthy choices

• To continue the introduction and enforcement of Food Information Regulations 1.3 National Priorities for Local Authority Food Safety Services

Overarching and informing the Local Authority Food Safety service plan is the national regulatory and legislative landscape. The Local Authority Enforcement Monitoring System (LAEMS) is a web-based system used by the Food Standards Agency (FSA) for local authorities to report detailed data on all their food law enforcement activities, to the FSA, on an annual basis. This data was used to form a National Performance Indicator that has now been deleted from the National Indicator Set. However, the score is still produced during the LAEMS data upload process and therefore still contributes internally to providing performance information towards our overall service performance 1.4 Links to the Corporate Objectives and the Corporate Plan

The Council has a Corporate Plan for 2014 – 2017, which sets out the Authorities priorities for the next three years.

The Councils ambitions are:

A viable co-operative Council Local Growth

Quality Housing & Decent Local Living Standards Neighbourhoods

These ambitions are supported by a range of priorities including:

• Creating an environment which attracts new businesses and supports business growth, • Attracting inward investment and promoting Bassetlaw as a place to do business, • Ensuring Bassetlaw has a high quality retail and leisure offer, • Attracting new business start-ups and increasing footfall, • Working with partners to develop skills and promote employment prospects • Taking appropriate and proportionate enforcement action where necessary

Safer and healthy food is one of the most direct and effective ways of improving the quality of people’s lives. The work carried out by the Council’s Food Safety service contributes to these priorities in terms of providing advice and guidance to new and existing businesses on cost-effective compliance with food safety legislation and helping to ensure the provision of safe and wholesome food within the Bassetlaw District. This not only improves health and well-being of the local community but supports local businesses and the local economy.

A safe and healthy food offer is crucial in contributing to the overall quality of people’s lives, as well as helping the local economy by ensuring confidence in local businesses. It is equally important to both support businesses by the timely provision of advice and information, and to ensure a level playing field between businesses by ensuring the consistent application of regulatory requirements. 5 53 Bassetlaw District Council – Food Safety Service Plan 2015/16

2. Background

2.1 Profile of the Bassetlaw district

Bassetlaw lies in the north of Nottinghamshire and occupies almost 30% of the county’s area at 63,687 hectares. Most recently available figures put the population of the district is estimated at around 111,400. The main economic and population centre’s are Worksop and Retford, with 60% of the population living in one of these two towns The remaining residents live in rural areas in one of the 73 villages in the district; only 17 of these have populations over 1000. The rural communities are very diverse ranging from small market towns and former mining communities, to very small hamlets. The A1/A1M, which has recently been upgraded, runs the length of the district and provides good transport links to local businesses.

The total number of registered food businesses within the district as of 1st April, 2014 is around 1053, a steady increase over the past five years from the 873 at April 2010. Although the highest proportion of these are located in the main centre’s of Worksop and Retford, and the larger villages of Harworth, Bircotes and Tuxford, there is quite a wide spread of small food operations throughout the entire geographic area.

According to the most recently available statistics, 3.6% of the population is from ethnic minority groups and 18% are over 65.

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2.2 Council Organisational Structure

Bassetlaw District Council has adopted a structure of Cabinet and Leader, with certain Councillors having Portfolio responsibility for specific services.

COUNCIL

Overview and Appeals Audit and Risk Licensing Planning Cabinet Scrutiny Committee Scrutiny Committee Committee Committee Committee Appointments Committee

Chief Officers Investigating Committee

Standards Sub- Committee

The Environmental Health Service sits within the directorate of Regeneration and Neighbourhoods. The portfolio is Neighbourhoods and the portfolio holder is Cllr Julie Leigh.

Overall strategic responsibility for the Food Safety Service lies with the Director of Regeneration and Neighbourhoods. The senior management structure has been reviewed and a Head of Neighbourhood Services was appointed in June 2014. The Environmental Health Department is now made up of five teams: Commercial, Neighbourhoods, Pollution, Housing Standards and Admin. Support. The Commercial Team operates the Food Safety Service, based in Queens Buildings, Worksop. Currently, day-to-day service delivery is supervised by the Environmental Health Team Leader (Commercial), reporting to the Environmental Health Manager.

CHIEF EXECUTIVE

DIRECTOR OF DIRECTOR OF CORPORATE REGENERATION & RESOURCES NEIGHBOURHOODS

HEAD OF HEAD OF HEAD OF HEAD OF HEAD OF HUMAN FINANCE CORPORATE REGENERATION NEIGHBOURHOODS RESOURCES SERVICES

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Envrionmental Health Department Structure

Environmental Health Manager

Commercial Team Pollution Team Housing Team Neighbourhoods Sen. EH Support Dog Control Leader Leader Leader Team Leader Officer Contract

1 Environmental 1 Technical Environmental 2 Environmental 1.9 EH Support Health Officer Officer Health Officer Health Officers Officers (job share)

2.4 Technical 1 Education & 2 Technical Officers Awareness Officer Officers

1 Environmental Warden

This gives a total of 4.4 FTE Officers who deal with Food Safety and Health and Safety at work matters and Licensing inspections. The Lead Food Officer is the Commercial Team Leader.

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2.3 Scope of the Council’s Food Safety Service

The aim of this structure is to ensure the quality, consistency and prioritization of food safety matters by enabling effective delivery of all aspects of the Food Safety service. These Commercial Team officers specialize in dealing with regulatory matters, and are also responsible for health and safety inspections & accident investigations in a variety of commercial premises, as well as infectious disease investigations, massage and other special treatment licenses, animal licensing functions, caravan site licensing and food & water sampling.

To facilitate maximum efficiency and flexibility, the service has, in the past, been partially delivered through the use of external contractors for some low and medium risk food hygiene inspections, some alternative enforcement work and some food safety training and coaching. Pre 2010 contractors delivered about 200 food safety inspections a year. From April 2011 all Food Safety work has been completed in house. It is anticipated that this will also be the case for 2015/16, unless significant unforeseen circumstances arise. The selection and use of external contractors is a decision taken by the Environmental Health Manager in consultation with the Head of Neighborhoods should the need arise.

To maintain a high quality service, Bassetlaw District Council officers would, in any event, carry out the inspection of all ‘high risk’ (A and B rated) premises and all approved premises. This ensures that resources are targeted at the categories of premises where risks have been identified, allowing for a greater consistency and continuity of control and enforcement activities.

The food examiner at the Public Health England laboratories at York currently provides specialist analyst services. This provision is a relatively new arrangement due to the centralisation of analytical services. This arrangement is working well to date and appears to be a better service with more flexibility for the taking of samples. Public Analyst Services are contracted to the County Analysts in Staffordshire.

Key functions in relation to food safety:

• Risk based inspection of food premises within the district • Other interventions • Investigation of food complaints • Responding to food alerts • Investigating food related illness and infectious disease notifications • Registration of food premises • Carrying out an annual food sampling programme • Dealing with imported food and its origin • Provision of advice and information to businesses and the public • Carrying out food safety awareness activities and campaigns • Educative work with food business operators • Rating Food Businesses under the National Food Hygiene Rating Scheme

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2.4 Demands on the Food Safety Service

As of the beginning of April 2015, Bassetlaw District Council had 1121 registered food businesses. The risk profiles of these premises are shown below at Figure 1, and have been determined in accordance with the Food Standards Agency code of Practice.

Figure 1 Total Food Premises Risk Rating Frequency of Intervention Premises in Category A Every 6 months 2 B Every 12 months 27 C Every 18 months 154 D Every 24 months* 432 E Every 36 months** 476 Unrated 16 Outside programme 14 TOTAL 1121

*D rated premises are currently being inspected and are not being subjected to alternating interventions. Due to the implementation of the National Food Hygiene Rating Scheme, and the upcoming new Food Information Regulations, it is deemed most appropriate to carry out inspections of these businesses and it is therefore anticipated that this Authority will continue to inspect these premises as they become due, and not alternate inspections with an alternative intervention strategy.

**It is not proposed to inspect all category E premises, but to undertake an alternative intervention and check that they have not substantially changed their level of operation. However, since the implementation of the National Food Hygiene Rating Scheme we will be looking closely at the E rated premises and will inspect any that are deemed to require an updated FHRS score

A comparison of the risk profiles of the District’s food premises over the last six years is detailed in Figure 2 (below).

Figure 2 Risk Profiles 500 2009 400 2010 300 2011 2012 200 2013 100 2014 0 2015 A B C D E

Figure 3 Overall rated premises numbers 2008/09 2009/10 2010/2011 2011/2012 2012/13 2013/14 2014/15 887 873 915 969 1013 1028 1107

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It is noticeable that there is now a significant trend of a reducing number of higher risk premises and an increasing number of low risk premises. This is due to a combination of factors; improving standards due to the Food Hygiene Rating Scheme, increasing numbers of people setting up ‘baking from home’ types of business and a large number of rural village halls etc. In addition, changes to the national code of practice have resulted in a number of C rated premises being re- classified as D rated.

Fluctuations in both the total number of registered premises and the risk ratings of those premises is not unusual as, during the course of any year, significant numbers of premises will open, close down or undergo changes of ownership or management or both. These premises are removed from or brought into the risk rated programme as the changes occur throughout the year. This means that the service responds to variations in numbers and alterations to the predicted programme of inspections on an ongoing basis. It has been particularly noticeable during the last financial year that there has been an increase in the amount of businesses closing and opening due to the current economic climate. Overall the trend for food premises is rising. From 2008 to this year the numbers have risen by over 16%.

There are several EC approved premises and some other large scale manufacturers in the district, including:

• Large National Manufacturer • Cheese maker & exporter • Large/medium scale meat products • Large Cook Chill food manufacturer plants • Large scale vegetable • Large scale sandwich manufacturers preparation/freezing manufacturer • Ice cream manufacturer • Dairy Products

The service successfully submitted the return to the Food Standards Agency Local Authority Enforcement Monitoring System (LAEMS) within the deadline. Now in the sixth year, this web based system of reporting has not been without teething problems nationally, as well as locally. This method of data collection required considerable resource for the first 4 years, but now seems to be embedded into our systems. Production and cross checking of this return does however still take time.

Linked to the Hampton Report and the Rogers Review, there is also the ability to change the way we deal with low risk premises by using alternative enforcement activities and interventions. We will continue to review whether our methods are the most effective during the course of the year.

The service will continue to carry out coaching of food businesses using the Food Standards Agency “Safer Food Better Business” pack as required. This will build upon the work carried out under a previous Food Standards Agency grant. Additionally, officers are being trained in relation to the forthcoming Food Information Regulations in order to be placed to advise businesses and eventually enforce as appropriate.

The service will ensure that food business operators within the Bassetlaw district follow FSA guidance on cross contamination and risks from e-coli.

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Staff will also seek to raise awareness regarding healthy choices and encourage take away food businesses to provide a healthy option.

Qualified Environmental Health staff, operating from Queens Buildings in Worksop, deliver the Food Safety service. Office hours are between 08:45 and 17.00, Monday to Friday. Evening and weekend inspections and interventions are carried out as determined by risk and service requirements and the premises opening hours.

Emergency Food Safety matters are channeled through an out-of-hours emergency number, operating through a call centre. Emergencies would be passed to a senior officer who could contact members of the food safety team if required. Although specialist food safety officers could be contacted they are not on duty at all times.

2.5 Regulation Policy

Bassetlaw District Council recognizes the importance of having a documented policy on food safety regulation and enforcement, including prosecution. This facilitates consistent and fair enforcement of food safety legislation.

The Enforcement policy has been reviewed and updated by The Environmental Health Manager responsible for Food Safety matters with reference to guidance offered by The Department of Health (DoH), The Department of Environment, Food and Rural Affairs (DEFRA), The Food Standards Agency (FSA), The Local Authorities Coordinators of Regulatory Services (LACORs), The Chartered Institute Of Environmental Health (CIEH) and the Local Better regulation Office (LBRO). The updated Environmental Health Enforcement Policy Document was submitted for approval and was adopted by the Council on the 17th Dec 2010 (minute No 48D). This document will continue to be regularly reviewed by the service and in association with other Nottinghamshire Authorities through relevant food liaison group networks in order to maintain consistency of enforcement nationally and across the Nottinghamshire area.

The Environmental Health Service will carry out their duties in accordance with the principles of Good Regulation. The five key principles of regulation, which are now a cornerstone of the better regulation strategy state that regulation should be; transparent, accountable, proportionate, consistent and targeted only at cases where action is needed. This means that the Environmental Health Service will carry out their functions in an equitable, practical and consistent manner to promote a thriving local economy, whilst working to secure a safe and healthy environment for all residents and visitors.

Enforcement decisions are also determined with reference to the overarching 2005 Council Enforcement Policy document.

The Council is committed to achieving its stated aim through a service delivery approach that is designed to:

• Help businesses and others meet their legal obligations without unnecessary expense. • Take firm action, including prosecution where appropriate, against those who flout the law or act irresponsibly.

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3. Service Delivery

3.1 Interventions at Food Establishments

The Authority’s programme of Interventions is based on guidance contained within the FSA Food Law Code of Practice 2014.

Interventions are key to improving compliance with food law by food business operators. The range of possible interventions allows authorised officers to use their professional judgement to apply a proportionate level of regulatory and enforcement activities to each food business. These interventions will be applied in a risk-based manner so that more intensive regulation is directed at those food businesses that present the greatest risk to public health.

Interventions are activities that are designed to monitor, support and increase food law compliance within a food establishment. They include, but are not restricted to, ‘official controls’. In addition to official controls, interventions also include other activities that are effective in supporting food businesses to achieve compliance with food law, such as the provision of targeted education and advice that takes place at food establishments, or information and intelligence gathering.

Official Controls include monitoring, surveillance, verification, audit, inspection, and sampling and analysis. Interventions that are official controls must provide sufficient information to establish that food-related activities carried out at food establishments comply with food law. Other interventions, i.e. those that do not constitute official controls, include education, advice and coaching provided at a food establishment and information and intelligence gathering. More than one type of intervention may be carried out during a single visit to a food business establishment.

This means that, dependent on risk, all premises will receive an intervention that is either an official control, a non-official control or come under an alternative enforcement strategy, within a range of 6 months to 3 years. Approved premises are included within this programme. Officers who inspect premises subject to product specific approval have been appropriately trained to carry out such inspections. This includes officers trained in inspecting and approving cheese processors and dairies.

All food safety interventions will be carried out in accordance with the Council’s adopted procedures on food safety inspection and intervention and will meet the objectives of the Food Law Code of Practice and associated guidance. Emphasis will also be placed on the premises compliance with the requirements for a documented control system and on raising standards in premises to meet the criteria for ‘broad compliance’. The authority will also treat securing compliance with published FSA e-coli guidance as a priority.

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Category ‘E’ premises

Establishments that have been given an intervention rating of category E for food hygiene may be subject to an Alternative Enforcement Strategy. This means there must be an intervention not less than once every three years for food hygiene. This does not preclude full inspection, partial inspection or audit of such establishments, where these are the Authority’s preferred intervention option.

It is anticipated that, subject to continuous review, certain of the ‘E’ rated premises, will, at the discretion of the authority, be included in an alternative enforcement strategy during 2015/16. However, those that form part of the food Hygiene Rating Scheme are likely to be subject to inspection, partial inspection or audit. This will help to ensure that ratings published by the authority are as up to date as possible.

Category ‘D’ premises

Establishments that have been given an intervention rating of D for food hygiene should receive an intervention every 24 months. These can alternate between interventions that are official controls and those that are not. However, as most category D establishments also fall within the Food Hygiene Rating Scheme it is anticipated that they will continue to receive official controls that are inspections, partial inspections or audits. This will help to ensure that ratings published by the authority are as up to date as possible.

Category ‘C’ premises

Establishments that have been given an intervention rating of C for food hygiene should receive an intervention every 18 months. Interventions should consist of an inspection, partial inspection, or audit until such time as the establishment is considered by the Authority to be “broadly compliant” with relevant food law. Once broad compliance has been achieved, planned interventions may alternate between inspections, partial inspections, or audits and other official controls.

Category ‘A’ & ‘B’ premises

The appropriate planned intervention for an establishment that has been given an intervention rating of A or B for food hygiene is an inspection, partial inspection, or audit. These must be completed every 6 months for category ‘A’ premises and every 12 months for Category ‘B’ premises. Any other additional interventions, such as sampling or education and training, will be recorded against the establishment for the purpose of monitoring enforcement actions is not the primary intervention.

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Planned Intervention programme 2015/16

Figure 4 Intervention Plan Food Minimum Inspection Frequency No. of Proposed Premises Premises at Intervention Risk start of the Programme for Category 2015/16 year 2015/16 Category A 6 Monthly 2 2 Category B Annual 27 26 Category C Every 18 Months 154 68 Category D Every 2 Years 432 137 Category E Intervention every 3 Years 476 115 Unrated To be integrated into inspection 16 16 programme as appropriate Totals 1107 364

Overall, the proposed intervention figures will be subject to variation throughout the year depending on changes to the status of premises during the year, and how many new businesses open and how many other existing premises close & reopen.

New Businesses

In line with Food Standards Agency guidance it is the aim of the service to inspect new premises within 28 days of opening, or of our becoming aware of their existence. Following the initial inspection an intervention rating for the establishment will be determined. Inspections of new premises will be prioritized according to perceived risk, and such inspections are in addition to the above figures. In 2012/13 there were 117 new registrations, in 2013/14 there were 143 and finally last year there were 129. It is anticipated that there will be at least a similar number of such inspections during the course of the 2015/16 year. This is a sustained increase on the level of new business we used to see, prior to the recession. This higher level of new registration does affect our overall level of food premises, however some new registrations are also caused by existing premises closing and reopening under new ownership. For comparison;

Fig 5 Registrations of New Businesses by Financial Year 2009/10 2010/2011 2011/2012 2012/13 2013/14 2014/15 83 110 116 117 143 129

Revisits

A revisit procedure has been implemented by the service. Premises where a statutory notice has been served, that are found to require significant work to be carried out, that are not ‘broadly compliant’ with food law or that are not meeting the requirements for a documented food safety system will be subject to a revisit within an agreed timescale to check on compliance. There was a notable increase in revisits conducted for 2014/15. This may be due to the increased use of interventions to resolve problems, or as a result of the FHRS system becoming more embedded within businesses and requests from that source becoming more numerous.

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Fig 6 Revisits to Businesses by Financial Year 2009/10 2010/2011 2011/2012 2012/13 2013/14 2014/15 112 153 251 164 168 264

An estimate of the resources currently available for this years proposed programme of work is detailed in Table 2 below.

Figure 7 Full-Time Equivalent (FTE) Officers, Food Safety 2014/15. Officer FTE Environmental Health Manager 0.3 Environmental Health Officers 1.4 Technical Officers 1.1 Administration 0.4

3.2 Food Complaints

Complaints about food, food premises or hygiene practices are investigated as appropriate to the circumstances of the complaint, and are dealt with in accordance with the Council’s adopted procedure. Complaints about food labeling matters are referred to the Trading Standards department of Nottinghamshire County Council in accordance with a countywide protocol.

Where new information arises, in the case of a justified complaint or unsatisfactory sampling result, the Authority will consider whether it is appropriate to conduct an inspection, partial inspection or audit to investigate the matter. In 2011/12 the department dealt with 79 complaints about food or hygiene matters. During the 2012/13 year that rose to 101. In 2013/14 there were 80. 2014/15 figures remained at similar levels coming in at 81. For the forthcoming year, if the number of contacts received remains within these levels, it is anticipated that about 160 hours (0.1 FTE) of Officer time may be required to deal with food complaints.

3.3 Primary Authority Principle

Bassetlaw District Council fully supports and endorses the Primary Authority Principle. The Council acts as the originating authority for eleven medium to large manufacturing premises. We currently are also Primary Authority to Wilkinson’s in relation to food safety matters in all their stores. We will carry out regulatory visits of any premises that have formed a Primary Authority Partnership with a Local Authority in accordance with the Primary Authority Scheme.

The Council is committed to responding positively to enforcing authority enquiries and will endeavor to provide such authorities with sufficient information and help to enable them to make appropriate enforcement decisions. This may include inspecting a food premises in order to carry out on-site investigations where it is felt that this course of action is necessary or appropriate.

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There can be are large variation from year to year as to the time and resources needed for these activities. It is estimated that these activities may result in a time allocation need of around 80 hours (FTE 0.05).

3.4 Advice to Businesses

The provision of advice and guidance to food businesses and to the general public on relevant food safety issues is seen as one of the inherent responsibilities of the department. One of the Environmental Health Service’s on-going objectives is to maintain an educative approach, where possible, in relation to the enforcement of Food Safety legislation. This includes advice given during routine inspections and also advice given to new or prospective businesses. There continue to be time pressures and competing priorities for Officer time and this can often mitigate against spending more time providing advice to businesses. On-going pressures to carry out more work with the same or fewer resources means that the time to provide advice during interventions can be limited. The advisory and educative elements are also often covered additionally to the routine intervention programme. A programme of butchers training workshops has been one such educational initiative. Working with caterers on compliance with the Food Information Regulations was part of a major piece of work for last year and will in part be carried over into this current year to help new businesses come to terms with the new requirements.

The Council was successful in the past in achieving funding from the Food Standards Agency in relation to Safer Food Better Bassetlaw. The successful bid enabled the authority to run a series of successful workshops in partnership with North Notts College and to follow up these workshops with one-to-one coaching visits in catering and retail premises. Feedback from workshops and coaching sessions was extremely positive, and initially businesses had responded well. Longer term evaluation shows that the benefits have been diluted by the effects of the large number of premises that have changed hands and that continuous prompting is required to ensure that food business operators continue to comply with the requirements of the system in difficult economic trading conditions.

We aim to try and provide relevant guidance face to face, in hard copy and via the Council website. It is important to use the most appropriate methods for the business in question and try to remain flexible in this area.

Based on past history, it is anticipated that the food service will receive around 130 requests for advice and guidance over the year. The estimated time needed for provision of food safety advice and participation in educative initiatives will be around 320 officer hours (0.2 FTE).

3.5 Food Sampling

A food sampling programme of Bassetlaw District Council consists of:

• A programme of sampling co-ordinated through the Nottinghamshire Food Sampling Group, a sub group of the Nottinghamshire Food Safety Working Group. This Group is made up of representatives from each Local

17 65 Bassetlaw District Council – Food Safety Service Plan 2015/16

Authority, Public Health England (PHE) and the Food Examiner based at York Laboratory. The service also takes part in the National Sampling Programmes identified by LACORS and PHE, and when required European sampling objectives.

• Samples taken outside of the above programmes which are determined on the basis of previous sample results and perceived risk of premises.

• Samples from Approved premises within the district

Outside of this programme, additional reactive sampling may be undertaken in response to food complaints, food poisoning investigations, and notifications of Legionella. Specific consideration is also given to whether samples need to be taken during routine food hygiene inspection work. It is anticipated that the likely time allocation for these activities will be around 320 hours (0.2 FTE) of Officer time. The cost of analysis of these samples is usually covered by the Council’s allocation of public health laboratory sampling credits.

During 2014/15 we achieved a total of 120 samples, which represents a maintenance of sampling rates from previous years. This meets the target of 110 samples per year that would be the rate expected of an authority of our population. Full participation in the co-ordinated sampling programme is an important departmental objective.

For 2015/16 we aim to maintain our sampling activity and to implement the National UK Food Surveillance system (UKFSS) for our food sampling. Samples go to the HPA laboratory in York. Public Analyst Services are contracted to the County Analysts in Staffordshire.

Figure 8 Food Sampling Programme Year 2015 2016 A M J J A S O N D J F M XR 18 Mobile Vendors XR 22 Pre-Fried Rice XR 23 Pre-Cut Fruit XR 24 Imported Fruit, Veg & Nuts Takeaways rated as <3 under FHRS

Dairy (Today’s milk)

Maloneys (meat)

Thaymar (ice cream)

Farmhouse Choice

Stichletons

Westlands

County Enterprise

18 66 Bassetlaw District Council – Food Safety Service Plan 2015/16

3.6 Control & Investigation of Outbreaks and Food Related Infectious Diseases

Bassetlaw District Council is committed to carrying out thorough investigations of food poisoning/food-borne infectious disease outbreaks as appropriate, and in accordance with the Councils adopted procedures. Each notification will be given sufficient investigation in order to establish, if possible, a cause, other linked cases, highlight any necessary enforcement action and ensure that the food poisoning/infectious disease is prevented from spreading further. In order to achieve this, the Council will work together as appropriate with PHE, GPs, CCDCs (local or otherwise) and other Local Authorities in accordance with national guidance and the North Nottinghamshire Outbreak Control Plan.

The Food Safety Working Group in Nottinghamshire have worked in conjunction with PHE to establish guidelines on response times for investigation, selection of incidents for full investigation and to develop standard questionnaire forms for use by all authorities. This promotes good practice and consistency across Nottinghamshire. We liaise closely with the Public Health England on these matters

A history of reported food poisoning cases is detailed at Figure 6 below

Figure 9 Reported Food Poisoning Cases

250

200 Suspected 150 Other Organisms Cryposporidiosis 100 e-Coli salmonella 50 Campylobacter

Food poisoning levels seem to be showing a decline, however last year there was an increase. This may be an anomaly, however whether or not this is a genuine trend will not be known until this year’s data can be reviewed. Most food poisoning, as shown on the chart is due to campylobacter. It is estimated that work on food and water related illnesses is likely to involve around 80 hours’ work (FTE 0.05).

3.7 Food Safety Incidents

Bassetlaw District Council is committed to playing an active role in the national management of food safety incidents and responding swiftly and appropriately to any

19 67 Bassetlaw District Council – Food Safety Service Plan 2015/16 food alerts that it receives. Food Law Code Of Practice (England) and associated Practice Guidance advises food authorities of the action they should take if a potential problem comes to light. The Council follows guidance from the FSA in respect of all food hazard warnings for action and emergency control orders, and it’s own adopted procedures for food safety incidents.

During the year 2014/15 there were 73 allerts issued by the Food Standards Agency. Almost all of these were product recall notices and required little if no action locally to resolve.

Fig 10 FSA Notified Incidents by Financial Year 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 89 55 51 63 77 42 45 44 73

A Product Withdrawal Information Notice or a Product Recall Information Notice is issued where a solution to the problem has been put in place – the product has been, or is being, withdrawn from sale or recalled from consumers, for example. A Food Alert for Action is issued where intervention by enforcement authorities is required. These notices and alerts are often issued in conjunction with a product withdrawal or recall by a manufacturer, retailer or distributor.

Actions resulting from these Notices vary but most Notices are now provided to the authority for information only, however some will still require immediate action from the department. Realistically there has been a reduction in the time spent dealing with these Notices as the system and co-ordination has been greatly improved by the FSA. It is estimated that the resources needed for this function are unlikely to exceed 80 hours of Officer time (FTE 0.05).

3.8 Liaison with other Organizations

Bassetlaw District Council works together with other organizations in order to ensure consistent, effective, best value services that meet the needs of our customers. In addition, where requests for service or advice fall under the remit of another enforcing body or agency, the department will forward all relevant information to that organization and inform the customer of the details they need. Liaison arrangements with other organizations in relation to food safety include:

The Nottinghamshire Food Safety Working Group

This Group meets on a quarterly basis and is attended by all Nottinghamshire Local Councils and also representatives from Trading Standards, PHE and the FSA. The purpose of this group is to provide effective liaison between Local Authorities on Food Safety matters and a forum to discuss/implement fair and consistent enforcement approaches. The Group also evaluates common training needs and has a co-ordination role for county wide training events. During 2013/14 the PEHM from Bassetlaw District Council was secretary to the group.

The Nottinghamshire PHE Liaison Group

This Committee meets on a quarterly basis and is attended by all Nottinghamshire Councils and PHE representatives including microbiologists and infection control

20 68 Bassetlaw District Council – Food Safety Service Plan 2015/16 staff. The purpose of the Group is to liaise on infection control matters, formulate infection control policy and outbreak control plans.

Other Liaison Arrangements

• Regular contact with HPA, DoH, DEFRA, MAFF and FSA, on food safety issues as they arise.

• Sampling group.

• Comments given in respect of Public Entertainment and other License applications to Legal and Estates Services.

• Comments given to The Planning Services Department in respect of planning applications involving food premises.

• Formal liaison with public bodies, such as, PHE through active participation in the health improvement programme, the Nottinghamshire Infection Control Meetings and the Nottinghamshire Environmental Liaison Committee.

• The Public Health Laboratory over sampling regimes and results interpretation.

• The Food Standard Agency over the standard and level of performance of the Food Safety Service.

• BRDO in relation to Primary Authority Partnerships

It is estimated that the resource allocation for these activities is around 320 hrs of Officer time (FTE 0.2).

3.9 Food Safety promotional work and non-official control interventions

Educational and promotional works are considered to be important aspects of the delivery of a comprehensive food safety service. Promotion of food safety issues will be achieved in the following ways:

• Targeted advice/information sent to relevant groups on issues of local or national significance.

• Active promotion of themed and targeted food safety messages such as cross contamination and e-coli.

• To provide ongoing one to one coaching advice to businesses on HACCP utilizing the “Safer Food Better Business Pack” as may be appropriate.

• Bassetlaw District Council focus strongly on personal hygiene and hand washing as a means of reducing incidents of food borne illness. The authority has purchased a UV light box and disclosing cream to show the efficacy of a

21 69 Bassetlaw District Council – Food Safety Service Plan 2015/16

persons' hand washing routine. This resource is offered to larger food businesses and schools and colleges, and can also be used in most indoor public areas. The aim is, with prior arrangement, officers will make visits with the equipment to demonstrate proper hand washing techniques and highlight the importance of personal hygiene. This enables us to fit in with school’s curriculum, new intakes of catering/other students and staff training days to ensure the message gets to the maximum number of people possible, at the time it will be most effective. It is envisaged this will continue well into the future and will become the basis for ongoing partnership working with the local college.

• This year the department will actively promote Food Safety Week to advise on the risks from washing raw chicken and raise awareness of factors leading to food poisoning, particularly campylobacter. In addition other education and promotional opportunities will be sought.

• The department will continue to use the Butchers Pack that it designed to improve standards of hygiene in this sector.

It is anticipated that the above activities will require a resource allocation of around 320 hrs of officer time (FTE 0.2).

4. Resources

4.1 Financial Allocation

Figure 11 Financial Allocation Food Financial Allocations 2014/15 Employees 118,000 Transport 7,000 Supplies 500 Income (1000) Net Expenditure 124,800

The sampling budget is £300

There is no explicit allocation of any funds to the service for legal action and this has to be approached on a case by case basis. That said it is not deemed to be an issue as the Authority is supportive of proportionate and targeted enforcement action.

Although the Authority has made significant cuts to budgets over the past 4 years, there have been no staffing cuts made to the food safety service to date, other than a budget for external contractors. As they were no longer required because vacant posts were filled this is not viewed as a problem. However, resources are stretched and it is of concern that the team is involved in potential legal action in a number of areas at present, which could impact on routine work. The estimated net expenditure

22 70 Bassetlaw District Council – Food Safety Service Plan 2015/16 is estimated to have dropped from £213,800 for 2011/12 to £180,000 for 2012/13 to to £174,069 for 2013/14. This is a reduction of around 18.6% over 4 years. Please note that the current budget was calculated and issued according to the new financial management system. As such it may not necessarily be directly comparable to previous years budgets. 4.2 Staffing Allocation

Staff conducting food safety inspections are all EHORB registered and have the qualifications required under the Food Law Code of Practice 2014. It is estimated that the full time equivalent number of posts for all food safety functions detailed in this plan equates to .3 FTE at Principal Officer level, 1.4 FTE at Environmental Health Officer level and 1.1 FTE at Technical Officer level, plus additional administrative support. For this year it is the intention to carry out all the food safety inspections and interventions in house. This will be kept under review and will be subject to change if unforeseen absences should occur.

Figure 12 Staffing Allocation Officer FTE Time available for Food Safety Environmental Health Manager 1.0 0.3 Environmental Health Officers EHORB Registered 2.0 1.4 Technical Officers Higher Certificate 1.4 0.8 Technical Officer Ordinary Certificate 1.0 0.3 Admin 0.8 0.4

4.3 Staff Development Plan

Staff Development and Appraisal meetings are conducted annually for all staff and these are used to set performance objectives and to identify any training and development needs of staff. Training and Development needs are ascertained and linked in with corporate objectives. Reviews are undertaken before and after training/development activities in order to ascertain the expectations and outcomes of such activities.

The Training budget for 2015/16 will be determined corporately and allocated to service areas by the Corporate Management Team. Food safety training needs are prioritised in the context of the wider service requirements identified in the service wide training plan. The Food Safety Officers always meet the requirement for 10 hours CPD in food related training, and usually training far exceeds this minimum requirement. Training is usually a mix of externally provided and corporately arranged training. The Authority subscribes to the East Midlands ‘Five Pack +1’ low cost training, and the department regularly also send staff to local CIEH arranged low cost training events.

The Nottinghamshire Food Liaison Group, on an annual basis, determines any training/development needs which may lead to provision of cost effective training events for enforcement Officers across the County.

23 71 Bassetlaw District Council – Food Safety Service Plan 2015/16

In 2014/15 Food Safety Officers benefited from a wide range of training designed to update and enhance skills in all areas, subjects and topics covered by this training are listed below. The training program for 2015/16 has yet to be finalized.

Food Standards Agency Updates Annex 5 Consistency Allergens Food Poisoning Legislation Update Training

5. Quality Assessment

5.1 Quality Assessment and internal monitoring

Bassetlaw District Council is committed to providing high quality services and ensuring that such services are reviewed for quality of delivery. The Council as a whole was awarded the Investors in People (IIP) award in 1998 and retained this award following assessments in 1999/2000 and in 2006, 2009 & 2012.

Bassetlaw District Council operates a quality procedure that lays down monitoring mechanisms to be adopted. The quality of inspections is achieved and monitored by:

* Quality procedures for inspections and enforcement * The use of standard reporting formats * Checking of notices prior to service * Monitoring of inspection reports * Evaluation of post-inspection questionnaires * Accompanied visits/inspections * File Monitoring * Consistency checks of computer records

The Principal Environmental Health Manager will take any necessary corrective action. This could include additional monitoring, additional training, inconsistency reviews, suspension or disciplinary action.

Any formal complaints made against the service are investigated and monitored in accordance with the Council’s Complaints Policy. There have been no such complaints in connection with food safety enforcement.

Through the Nottinghamshire Food Liaison Group, inter-authority auditing has been carried out as well as consistency visits and exercises. It is intended that this inter- authority work will allow good practice approaches to be highlighted and adopted as appropriate. Benchmarking is taking place in Nottinghamshire during this financial year.

During July 2008, the food safety service received an audit by Food Standards Agency. An action plan was submitted in response to this and formed the basis for on-going improvements to the quality of the service during the forthcoming financial year. A re-visit was made during Feb 2010 and the Authority was signed off on all but

24 72 Bassetlaw District Council – Food Safety Service Plan 2015/16 one of the items raised at the original inspection. During the spring of 2011 the Authority was asked for further documentation in relating to the one outstanding matter and subsequently it was then confirmed that the Audit had been closed.

The Environmental Health service as a whole received an internal audit during 2010 and there were no recommendations arising from this that related directly to the food safety service. Follow up internal audits have taken place subsequently with no actions identified in relation to food safety.

The Authority took part in a Notts wide inter authority audit during 2012 in relation to the implementation of the national guidance on cross contamination and e-coli. Furthermore an additional inter authority auditing exercises was conducted within Nottinghamshire regarding the implementation of the FHRS scheme and brand standard.

6. Review Process

6.1 Review against Service Plan

Food safety inspection performance and broad compliance with food hygiene law are still reported annually as a local performance indicator in the form of the PI score produced by submission of the LAEMS data. The target for 2013/14 was 92.5. The actual score achieved was 96.5.

The number of premises in each category within the Food Hygiene rating scheme was also reported quarterly via the covalent performance management system. There are no targets set for these.

Performance against objectives and targets contained within the Food Service Plan 2013/2014 are detailed below. The annual service plan is the mechanism for reviewing the previous year’s performance.

Figure 14 Objectives 2013/14 Aim Anticipated Outcome Achieved? 1 Continue to participate in a food sampling Take part in National and Regional YES programme to include the required level sampling surveys and also take the of imported food samples and ensure requisite number of imported food sampling credit uptake is met. samples 2 To link the UK FSS sampling software to To put all samples through this system YES external Labs and FSA to enable the and to link for receiving data and Authority to access better data to inform providing reports to external sampling activities and reduce reporting organisations requirements 3 To refresh and the Authorities Sampling Launch a refreshed food sampling NO – Policy. (Carried Forward) policy and launch this with publicity to Ongoing raise awareness of sampling activities. 4 To complete all Food Safety Inspections A Local PIs is in place to replicate the YES and interventions in line with National and deleted National PI. This is reported Local targets. Annually. The target for 2014/15 is 93% Performance levels will continue to be reported through this

25 73 Bassetlaw District Council – Food Safety Service Plan 2015/16

annual plan as well as internally through ‘Covalent’ to the overview & scrutiny committee. 5 Operate the Food Hygiene Rating Operate the nationally agreed 6 tier YES Scheme in accordance with the ‘Brand scheme and report on outcomes Standard’ throughout the year. Participate in an inter authority audit in this area. 6 Report results of the Customer Report the PI results annually YES Satisfaction Survey through a service PI 7 Implement a suite of actions to assist To create a web page to assist YES businesses to prepare for the Food businesses, provide information during Information regulations inspections and interventions, and signpost 8 Train Staff in relation to Allergens All food safety officers to complete YES FSA online training on allergens 9 Participate in Food Safety Week 2014 Take part in promotional activities and YES visits across the district during food Safety week.

1. Participate in food-sampling programme to include imported foods.

Good levels of sampling have been achieved and our targets have been largely met. The target quantity of samples for Bassetlaw is in the region of 110 per year and this is therefore a good performance. It is important that this level of sampling is maintained, as the credits the Authority receives to pay for food sample analysis will be allocated based on these levels. This area of work will be kept under review for the next year to ensure this is maintained for the future.

2. Implement UKFSS sampling software to link to FSA & Labs

Bassetlaw has successfully implemented the software and samples going onto our IT system are being entered through UKFSS software. Work to develop and utilise the full potential of this facility is ongoing, but UKFSS is operational within the district.

3. Refresh and Publicise the Food Sampling Policy

This has not been completed due to lack of time during the last year and will be carried into next year for completion.

4. Complete all Food Safety inspections in line with National and Local targets

This was completed as per expectations.

5. Operate the National Food Hygiene Rating Scheme

The National Food Hygiene Rating Scheme went live in Bassetlaw on the 31st March 2011 and has now been in operation for just over three years. This is required to be operated to very strict criteria under the Food Standards Agency ‘Brand Standard’. To date the scheme is running successfully with very few issues. The numbers of premises within the bands are reported quarterly to councilors via the covalent

26 74 Bassetlaw District Council – Food Safety Service Plan 2015/16 performance management system and the member’s newsletter. This is being incorporated into a reporting PI for the coming year.

As of 31 March 2015 there were 825 premises within the district that were eligible to be part of the Food Hygiene Rating Scheme. The scores achieved were;

Figure 15 FHRS Scores as at 31 March 2015

5 - 662 premises 80.2%

4 - 115 premises 13.9% FHRS Scores 5 3 - 33 premises 4% 4 2 - 5 premises 0.6 % 3 2 1 - 10 premises 1.2% 1

0 - 0 premises 0% 0

Thus 98.1% of eligible businesses are in categories 3 - 5 and are deemed to be compliant with food hygiene requirements. The other businesses that are in categories 0 - 2 are subject to close scrutiny to ensure that required improvements are implemented and maintained.

6. Report results of a Customer Satisfaction Survey

An in house satisfaction survey has been implemented across all Environmental Health services. The overall result stands at 89.67% for the entire EH service. The results did not provide any negative concerns in relation to the food safety service.

7. Food Information Regulations

Training sessions were offered and taken up by local businesses to help prepare for these new regulations. In addition officers have continued to offer advice and guidance as appropriate either upon request and during routine inspections of commercial premises.

8. Staff Allergen Training

A training session was held for officers within Bassetlaw and wider across Nottinghamshire on the subject of allergens. In addition, online resources from the FSA have been made available to help officers.

9. Take Part in Food Safety Week 2014

Officers participated in events for food safety week 2014 and will continue to do so for 2015.

27 75 Bassetlaw District Council – Food Safety Service Plan 2015/16

6.2 Variation from Service Plan

The only real variation (other than the uptake in coaching discussed above) has been in the non-completion of a new sampling policy. This is an update requirement and was not critical to service delivery and will be carried forward into next year.

A slightly higher number of newly registered premises were not inspected by year end, in comparison to previous years. This has not prevented our meeting our inspection targets overall, but will need to be monitored. This is due to an increased level of inspection and intervention overall, due in some part to the increased level of ‘churn’ within food businesses – that is the amount that open and close throughout the year.

The anticipated benefits from implementing the UKFSS sampling system have yet to be realized due to external software problems and this will remain for next year as an objective to achieve those benefits. 6.3 Formal Enforcement Actions 2014/15

Figure 16 Formal Written Hygiene Voluntary Closure Prosecution Warning letters Improvement Notices Undertakings Accepted 188 6 1 0 6.4 Areas of Improvement

The following Objectives have been identified for 2015/16

Figure 17 Objectives 2014/15 Objectives Anticipated Outcome Date of Completion

1 Continue to participate in a food sampling Take part in National and Regional March 2016 programme to include the required level of sampling surveys and also take the imported food samples and ensure requisite number of imported food sampling credit uptake is met. samples 2 To link the UK FSS sampling software to To put all samples through this system March 2016 external Labs and FSA to enable the and to link for receiving data and Authority to access better data to inform providing reports to external sampling activities and reduce reporting organisations requirements 3 To refresh and the Authorities Sampling Launch a refreshed food sampling March 2016 Policy. (Carried Forward) policy and launch this with publicity to raise awareness of sampling activities. 4 To complete all Food Safety Inspections A Local PIs is in place to replicate the March 2016 and interventions in line with National and deleted National PI. This is reported Local targets. Annually. The target for 2015/16 is 93% Performance levels will continue to be reported through this annual plan as well as internally through ‘Covalent’ to the overview & scrutiny committee. 5 Operate the Food Hygiene Rating Operate the nationally agreed 6 tier March 2016 Scheme in accordance with the ‘Brand scheme and report on outcomes Standard’ throughout the year. Participate in an inter authority audit in this area.

28 76 Bassetlaw District Council – Food Safety Service Plan 2015/16

6 Report results of the Customer Report the PI results annually March 2016 Satisfaction Survey through a service PI 7 Participate in Food Safety Week 2015 and Take part in promotional activities and March 2016 other educational / promotional events visits across the district during food Safety week and other relevant events 8 Continue the introduction of Food Provision of advice during routine March 2016 Information Regulations inspections / enforcement of the regulations where appropriate

29 77

78 Agenda Item No. 8(c)

R E F E R R A L

from CABINET HELD ON 2ND JUNE 2015

to COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Julie Hamilton, Senior Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 8(d) – HEALTH AND SAFETY SERVICE PLAN 2015/16 (KEY DECISION NO. 500)

RESOLVED that:

1. The Health and Safety Service Plan for 2015/16 be endorsed and be referred to full Council for approval and implementation. 2. The Health and Safety Team be congratulated on their success and performance to date.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Committee Administrator Chief Executive Head of Neighbourhood Services

Agenda Item No. 8(d)

BASSETLAW DISTRICT COUNCIL

CABINET

2nd June 2015

REPORT OF DIRECTOR OF REGENERATION AND NEIGHBOURHOODS

HEALTH AND SAFETY SERVICE PLAN 2015/16

Cabinet Member: Neighbourhoods Contact: G Bailey Ext: 3452

1. Public Interest Test

The author of this report, Gavin Bailey, Environmental Health Manager, has determined that this report is not considered to be of a confidential nature.

2. Purpose of the Report

2.1 To propose that the Health and Safety Service Plan for 2015/16 is adopted and approved by the Council in accordance with the Health and Safety Commission (HSC) Section 18 Guidance Note to Local Authorities No.3 - Requirement to Produce a Service Plan, Including the Investigation of Complaints Etc.

3. Background and Discussion

3.1 In September 2001, the HSC issued an updated set of guidance documents under section 18 of the Health and Safety at Work Etc Act 1974. Under this section, the HSC are required to make adequate arrangements for the enforcement of relevant statutory provisions under health and safety legislation. This includes making local authorities responsible for the enforcement of these provisions (contained in the Health and Safety Enforcing Authority Regulations).

Under Section 18, Local Authorities are placed under a duty to make adequate arrangements for the enforcement of Health and Safety legislation in their area and to carry out these functions in accordance with such guidance as the HSC and central government may give them, from time to time. It is important that the Council comply with this duty as failing to do so could result in a declaration of “default” by the Secretary of State and ultimately the removal of the Council’s enforcement functions, leaving the Council to pick up the expenses incurred. The HSC continue to monitor our performance through annual statistical returns. Local authorities were expected to be fully compliant with Section 18 by April 2011, and the production of an annually reviewable service plan that is formally approved and adopted by Council is one of the Section 18 requirements.

3.2 In light of the above mentioned duties, the production and approval of a Health and Safety Service Plan is an important element and demonstrates the Council’s commitment and approach to the enforcement of Health and Safety legislation within the district. It will help to ensure that policies, procedures and working practices are consistent with national guidance and in line with enforcement activities in Councils across the country. The plan also takes into account local circumstances and reflects the Council’s ambitions for the district as contained within the Corporate Plan.

3.3 The Service Plan (attached as an appendix to this report) includes:

• Information about the services we provide, • The demands placed on the Health and Safety Service, • Details of our enforcement approach, • Staff development approach, • Resources needed to provide identified services, • Quality and control mechanisms in place, • Review of our last year’s performance, • Identification of areas for improvement, and • Identification of the key work areas for 2015/16

3.4 The Health & Safety Service Plan contains consideration of the 2014/15 performance against the previous year’s plan. The following are some key areas of work that were completed in 2014/15 by the team;

• Carried out targeted Interventions of Laser operators in line with guidance. • Carried out interventions at tattooists and body piercers. • Carried out identified LPG inspections where required according to National Guidance. • Carry out inspections and interventions as required during the year. • Member of steering group of Bassetlaw Wellbeing at Work scheme, and advised in relation to the development of the scheme to be Nottinghamshire wide. • Carried out interventions related to gas safety in catering establishments. • Became the Primary Authority partner for a large national company.

3.5 The main work areas for 2015/16 are detailed within the Health & Safety Service Plan. The key areas are highlighted below;

• Complete targeted Inspection and Intervention Plan. • Participate in Wellbeing at Work programme within Bassetlaw and Nottinghamshire. • Joint working with other Nottinghamshire Authorities on Tattoo Registration Schemes and work with Motor Vehicle Repair premises. • Work with other departments on the development of the Safety Advisory Group approach to event safety. • Maintain Primary Authority agreement with National Company. • Focused inspection program on health & beauty industry. • Review S.18 compliance and compliance with new national Code. Produced an action plan, if required, to deal with any areas for improvement

includes analysis and reflection on the previous year’s performance and achievement it cannot be fully completed until figures are submitted and validated. This means that in practical terms it does not complete the formal adoption process until part way through the year.

4. Implications

a) For service users

This Service plan shows service users, including local businesses and members of the public, the Council’s proposed approach to Health and Safety enforcement and education during the 2015/16 financial year.

b) Strategic & Policy

This Plan links into and supports the Council’s Corporate Plan ambitions. It also promotes a sensible and proportionate approach towards Health & Safety regulation and encourages businesses to adequately manage risks to protect employees and the public from serious risks within the workplace. In particular, the delivery of an effective Health & Safety service will help to support and maintain a vibrant local economy and a safe and healthy environment for our residents to live and work in, thereby improving customer satisfaction in the service the Council are providing. The Plan also demonstrates direct links to the HSEs national strategy for Great Britain ‘Be Part of the Solution’

c) Financial – Ref: 16/385

There are no financial implications, as the proposed plan does not require any additional resources to those contained within existing budgets.

d) Legal – Ref: 142/06/15

There is a legal duty to produce such a service plan, and for it to be approved by Cabinet and full Council as outlined in paragraph 2.1 of this report. Local Authorities are also placed under a statutory duty to make adequate arrangements for the enforcement of Health and Safety legislation in their area and to carry out these functions in accordance with such guidance as the HSC and central government may, from time to time, provide.

e) Human Resources

There is an ongoing annual training and CPD requirement in relation to enforcement of Health & Safety Legislation. This is evaluated and addressed as part of the Council’s Development & Appraisal Scheme.

In addition, during the current financial year all officers enforcing Health & Safety will be required to complete the Regulators Development Needs Assessment by use of an online assessment process developed by the HSE to ensure officer competence and consistency throughout the country. This forms part of our Section 18 compliance. This is may highlight further development and training needs that will need to be addressed by the service.

f) Community Safety, Equalities, Environmental

The Plan will inform residents, visitors and local businesses how the Council intends to undertake their Health and Safety enforcement responsibilities in an open and transparent way, and will form the basis of how the Council will seek to secure safety within workplaces for which they have the enforcement responsibility.

g) This is Key Decision No. 500.

5. Options, Risks and Reasons for Recommendations

The production and approval of a Health and Safety Service Plan is a legal requirement under section 18 of the Health and Safety at Work etc Act 1974. There is, therefore, no other real option than to produce a Service Plan.

The recommendation to approve the attached plan is based on the fact that it is a requirement of a Central Government agency. Failure to produce a service plan could lead to formal action to ensure we do produce such a plan

6. Recommendations

6.1 That Members endorse the Health and Safety Service Plan for 2015/16.

6.2 That Cabinet refers the Health and Safety Service Plan for 2015/16 to Council for approval and implementation.

Background Papers Location

Health and Safety Commission -Section Environmental Health Regulatory Team 18 Guidance to Local Authorities Queens Buildings Worksop, Notts.

Health & Safety Enforcement Service Delivery Plan

2015/16

85 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Executive Summary

This Service Plan has been produced in order to give clear details of the Health and Safety enforcement services to be provided and how they will be carried out in the coming year. It also shows how our regulatory service contributes to, and supports, the delivery of the Corporate Objectives to the Community as a whole.

The work of the service supports Bassetlaw District Council’s corporate plan objectives. To achieve this we aim to ensure businesses meet legal requirements and support raised standards to provide safer workplaces. Improved standards can help businesses to become more prosperous, which can in turn benefit the whole community.

We protect the community by using the full range of our regulatory powers, sensibly, proportionately and using risk based and intelligence led action. With expertise that is seen as an important resource to the council, the service is provided through a combination of interventions. These include proactive inspections, partnership working, education and enforcement.

We focus our resources on high-risk activities that may injure or kill people at work, and seek out sensible controls to protect vulnerable workers, minimising and preventing harm.

We are attuned to delivering what is important in our locality and to our local community, but understand and have a capability to work with and address national regulatory priorities. There is an increasing recognition that we can and should play a key role in the community health and well-being agenda. We aim to contribute to this during the forthcoming year by building on our existing partnerships to try to bring about a reduction in the incidence rate and number of cases of work related ill health in the community.

Due to the recommendations derived from the Löfstedt Report, programmed inspections are no longer a priority for Local Authorities. Instead the Council is required to use the full range of regulatory interventions available to influence behaviour and improve the management of risk.

Regular monitoring of progress against the plan will be carried out. Checks will also be made on the consistency of action taken and the quality of work carried out within the district.

The Council will also have to react to any unforeseen events that occur throughout the year such as accidents, dangerous occurrences and service requests, which impact upon the resource available for programmed work.

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86 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Contents

Executive Summary ...... 1 Contents ...... 2 1. Introduction ...... 3 2. Service Aims and Objectives ...... 3 2.1 Service Aims ...... 3 2.2 Summary of national planning priorities 2015/16 ...... 6 2.3 Key service delivery objectives 2015/16 ...... 7 2.4 Identified Local Priorities for Interventions ...... 7 2.6 Links to the Corporate Plan ...... 7 2.7 Links to National Priorities ...... 8 3. The Authority ...... 10 3.1 Profile of the district ...... 10 3.2 Council Organisational Structure ...... 10 3.3 Environmental Health Structure ...... 12 4. Service Delivery ...... 15 4.1 Health and Safety Inspections & Interventions ...... 15 4.2 Priority Inspections and Interventions ...... 16 4.3 Investigation of Reported Accidents, Injuries and Work Related Illness ...... 17 4.4 Health and Safety Complaints and Service Requests ...... 18 3.5 Primary Authority Scheme ...... 19 3.6 Advice to Businesses ...... 20 3.7 Liaison with other Organizations ...... 20 3.8 Health and Safety Promotion ...... 21 5. Resources ...... 21 5.1 Staffing Allocation ...... 21 5.2 Staff Development Plan ...... 22 6. Quality Assessment ...... 22 6.1 Quality Assessment ...... 22 7. Review Process ...... 23 7.1 Review against Service Plan ...... 23 7.2 Performance Review of Planned Objectives for 2014/15 ...... 23 1. Complete Intervention Plan ...... 24 2. Wellbeing at Work ...... 24 4. Outdoor Events ...... 24 5. Laser Equipment ...... 24 6. Tattooist & Skin Piercers ...... 24 7. Cooling Towers, Evaporators, Condensers, etc...... 24 8. Provision of advice and guidance ...... 24 7.3 Planned Objectives for 2015/16 ...... 25

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87 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

1. Introduction

This Service Plan has been developed by Bassetlaw District Council to comply with the Health & Safety Executives (HSE) Section 18 Guidance which requires Local Authorities to produce an annual service plan detailing the Authority’s arrangements for discharging its statutory health & safety responsibilities. It forms the basis of the Authority’s health and safety inspection, intervention and enforcement functions, and ensures that the work undertaken contributes to HSE identified national priorities, as well as locally identified needs.

The production of a Health and Safety Service Plan ensures that local businesses, members of the public, members of the Council and other agencies understand the approach to Health and Safety inspection, intervention and enforcement that has been adopted by this Authority. This service plan details how the Environmental Health Commercial Team of BDC plans to undertake its duties and contribute to national targets and locally identified priorities and ambitions. It also demonstrates our commitment to the provision of an effective and value for money service that is fair, consistent, open and proportionate.

2. Service Aims and Objectives

2.1 Service Aims

The overall aim of the service is to:

We will strive to ensure that the risks to people's health, safety and welfare from work related activities within the district are properly controlled and managed, through the appropriate combination of advice, intervention, inspection, investigation and enforcement. We will support duty holders in their responsibilities through partnership, education and enforcement. We will also work in partnership with the Health and Safety Executive, Public Health England and the other Nottinghamshire Local Authorities, to further these aims.

We will ensure that all Health and Safety law enforcement that is undertaken by BDC is informed by the principles of;

Overarching and informing the Health & Safety Service Plan is the national regulatory and legislative landscape. Health and safety regulation has been subject to considerable review over the last three years. Most significant was the report by Lord Young entitled ‘Common Sense Common Safety’ published in October 2010, followed in November 2011, by the Löfstedt report "Reclaiming health and safety for Page | 3

88 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16 all: An independent review of health and safety regulation".

Professor Löfstedt's report sets out a number of risk- and evidence-based recommendations that aim to:

• Reduce regulatory requirements on business where they do not lead to improved health and safety outcomes, and • Remove pressures on business to go beyond what the regulations require, enabling them to reclaim ownership of the management of health and safety.

Lord Young’s report was focused on shifting the focus of health and safety enforcement activity away from businesses that do the right thing, and concentrating on:

• Higher risk areas, and • Dealing with serious breaches of health and safety regulations

The effect of these reviews on Local Authority Health and Safety inspection and enforcement work has been significant. Most obvious are the following:

• Increased direction towards nationally defined inspection priorities, • A requirement to reduce by a third proactive inspection, • A requirement to increase investigation and targeted enforcement activities, and • Changes to the reporting requirements for accidents • A renewed focus on business support

The following list details the main guidance, strategies, documents and government departments that influence and direct a LA’s health & safety enforcement service, as well as current consultative documents.

The Hampton Report 2005 http://www.berr.gov.uk/files/file22988.pdf

Rogers Review 2007 http://www.bis.gov.uk/files/file45168.pdf

Lord Young ‘Common Sense Common Safety’ https://www.gov.uk/government/uploads/system/u 2010 ploads/attachment_data/file/60905/402906_Com monSense_acc.pdf

The Lofstedt Report 2011 https://www.gov.uk/government/uploads/system/u ploads/attachment_data/file/66790/lofstedt- report.pdf

The Enforcement Concordat 1998 http://webarchive.nationalarchives.gov.uk/+/http:// www.berr.gov.uk/files/file10150.pdf

The Regulators Compliance Code 2007 http://www.berr.gov.uk/files/file45019.pdf

Applying the Regulators Compliance Code & the http://www.lbro.org.uk/docs/regulators- Enforcement Concordat 2008 compliance-code.pdf

The Code for Crown Prosecutors http://www.cps.gov.uk/publications/docs/code201 3english_v2.pdf

Primary Authority Scheme http://www.bis.gov.uk/brdo/primary-authority

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HSE Strategy; The Health and Safety of Great http://www.hse.gov.uk/strategy/strategy09.pdf Britain: Be Part of the Solution HSE Section 18 Standard http://www.hse.gov.uk/section18/s18.pdf

HSE Enforcement Policy Statement http://www.hse.gov.uk/pubns/hse41.pdf

Statutory Guidance on Joint Strategic Needs https://s3-eu-west- Assessments and Joint Health & Wellbeing 1.amazonaws.com/media.dh.gov.uk/network/18/fil Strategies es/2013/03/Statutory-Guidance-on-Joint- Strategic-Needs-Assessments-and-Joint-Health- and-Wellbeing-Strategies-March-20131.pdf

https://s3-eu-west- 1.amazonaws.com/media.dh.gov.uk/network/18/fil es/2013/03/Diagram-to-show-the-explicit-link- from-evidence-to-service-planning-in-JSNAs-and- JHWSs-March-2013.pdf

HSE - National Local Authority Enforcement http://www.hse.gov.uk/consult/condocs/cd247.ht Code – Health and Safety at Work, England, m Scotland and Wales (consultation) Non-economic regulators: duty to have regard to http://www.ico.org.uk/about_us/consultations/~/m growth (consultation) edia/documents/consultation_responses/Non- economic-regulators-20130308.ashx

The National Local Authority Enforcement Code (the Code) contains the most significant drivers that will shape health & safety service delivery into the future. The Code has been developed in response to the Lofstedt report, which recommended that HSE be given a stronger role in directing LA’s health & safety inspection and enforcement activity.

The Code aims to set out Government expectations for a risk based approach to targeting health and safety regulatory interventions, using a principle based framework that recognises the roles of business and the regulator in the management of risk. It sets out the risk based approach to be followed by LA regulators in order to provide business with a consistency of approach and ensuring LAs make the best use of their regulatory resource.

Meeting the requirements of the Code will deliver the central Governments expectation that business operating in comparatively lower risk premises should not be subject to proactive, unannounced inspections, unless there is reason to suspect poor performance. The Code was published in 2013

It is worth noting that if a business considers that they operate in a lower risk sector and have been unreasonably subject to a proactive health and safety inspection by an LA they can complain to the Independent Regulatory Challenge Panel whose members are deemed to have the competence and experience to assess regulatory matters. They will look into the complaint and the outcome of their deliberations will be made publically available on the HSE website. Where a complaint is upheld by the Panel, the HSE have undertaken to work with the LA to provide advice and assistance to improve and enable their implementation and compliance with the Code.

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2.2 Summary of national planning priorities 2015/16

Local Authorities are required to decide, plan and target their health & safety interventions, having regard to the full range of interventions available, the risk profile of the business/sector, national information (accident statistics, national priorities, Primary Authority inspection plans) and local knowledge and priorities. Local Authorities are now required to reserve proactive inspection for category A premises and those activities and sectors identified within Annex A of the Code (below). LAs should consider the use of other non-inspection techniques for other categories of premises. In keeping with the Government’s reforms of health and safety, there are no restrictions on reactive work.

Annex A No Hazards High Risk Sectors High Risk Activities Premises with cooling Lack of suitable legionella control 1 Legionella infection towers/evaporative condensers measures Buried metal LPG pipe work For Explosion caused by Premises (including caravan parks) 2 caravan parks to communal/amenity leaking LPG with buried metal LPG pipe work blocks only) e.coli/cryptosp- oridium infection esp. Lack of suitable microorganism 3 Open Farms/Animal Visitor Attractions in children control measures

Fatalities/injuries Tyre fitters*/ MVR* (as part of Car resulting from being Use of two-post vehicle lifts 4 Sales) High volume struck by vehicles Workplace transport Warehousing/Distribution

Fatalities/injuries resulting from falls Industrial retail/wholesale premises Workplace transport/work at from height/ 5 e.g. steel stockholders, builders/timber height/cutting machinery /lifting amputation and merchants equipment. crushing injuries.

Industrial diseases MVR* Industrial retail/wholesale (occupational Use of Isocyanate paints Noise and 6 premises e.g. steel stockholders, asthma/deafness dust. builders/timber merchants

7 Falls from height High volume Warehousing/Distribution Work at height Large scale public Inadequate consideration of public Crowd control & events/sports/leisure facilities e.g. safety e.g. poor organisation and/or 8 injuries/fatalities to motorised leisure pursuits including off supervision of high speed or off- road the public road vehicles and track days vehicle movements Carbon monoxide poisoning and gas Commercial catering premises using Lack of suitable ventilation and/or 9 explosion solid fuel cooking equipment unsafe appliances.

Premises with vulnerable working conditions (lone/night working/cash Lack of suitable security 10 Violence at work handling e.g. betting shops/off- measures/procedures licences/care settings. * SMEs not national chains

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2.3 Key service delivery objectives 2015/16

• To inspect Category A premises, • To inspect premises identified as suitable for proactive inspection as identified within the Code • To investigate accidents in line with our prioritisation procedures • To respond to complaints and enquiries in line with prioritisation procedures • To respond to referrals from other services or organisations • To carry out inspections / interventions as part of a national identified priority • To carry out interventions related to significant local issues or where it is justified by a sufficient weight of intelligence over a period of time • To carry out interventions / inspections as appropriate at large scale outdoor events within the district

2.4 Identified Local Priorities for Interventions

• Awareness raising and checking safety in motor vehicle industry • Outdoor events • Health & safety standards within the health and beauty sectors (tattooists, sunbeds, beauty treatments, etc.) • Provision of advice to duty holders • Promotion of sensible risk management • Continuing to work in partnership with the PCT to support the Bassetlaw Workplace Health Scheme • To support the districts large employers and use accident reports to focus on areas for intervention and accident reduction. 2.6 Links to the Corporate Plan

The Council has a Corporate Plan for 2014 – 2017, which sets out the Authorities priorities for the next two years.

The Councils ambitions are:

A viable co-operative Council Local Growth

Quality Housing & Decent Local Living Standards Neighbourhoods

These ambitions are supported by a range of priorities including:

92 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

These ambitions are supported by a range of priorities including:

A safe and healthy working environment is crucial in contributing to the overall quality of people’s lives. It is equally important to support businesses by the timely provision of advice and information and to ensure a level playing field between businesses by ensuring the consistent application of regulatory requirements.

The work carried out by the Council’s Environmental Health regulatory service will contribute to these priorities in terms of providing advice and guidance to businesses on cost-effective compliance with health and safety legislation and helping to ensure the provision of safe places of work within the Bassetlaw District. The service will promote sensible risk management to encourage jobs and enterprise and reduce unnecessary burdens on business, whilst ensuring that the health safety and welfare of employees remains a priority. Interventions and activities will be risk based and focussed on priority areas. This not only contributes directly to improved health and wellbeing of the local community but also supports local businesses and the local economy. It also supports the Councils duty to promote economic, environmental and social wellbeing in the community.

2.7 Links to National Priorities

The Rogers Review recognised that Health & Safety at work as a key enforcement priority in 2007. This has been reiterated by the publication of the National Enforcement Priorities for Local Authority Regulatory Services by the Local Better Regulation Office in November 20111. Included in these priorities is the need for Regulatory services to:

• Help people to live healthier lives by preventing ill health and harm and promoting public health, • Promote local prosperity by supporting businesses to achieve compliance, and • Protect employees from injury and ill health at work

The Health and Safety Executive’s strategy “The Health and Safety of Great Britain; Be part of the solution” contained a number of key goals that are shared by the Local Authorities who work in close partnership:

1 http://www.lbro.org.uk/docs/priority-regulatory-outcomes-report.pdf

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• To investigate work-related accidents and ill health and take enforcement action to prevent harm and secure justice when appropriate. • To encourage strong leadership in championing the importance of, and a common sense approach to, health and safety in the workplace. • To motivate focus on the core aims of health and safety and, by doing so, to help risk makers and managers distinguish between real health and safety issues and trivial or ill-informed criticism. • To encourage an increase in competence, which will enable greater ownership and profiling of risk, thereby promoting sensible and proportionate risk management. • To reinforce the promotion of worker involvement and consultation in health and safety matters throughout unionised and non-unionised workplaces of all sizes. • To specifically target key health issues and to identify and work with those bodies best placed to bring about a reduction in the incidence rate and number of cases of work-related ill health. • To set priorities and, within those priorities, to identify which activities, their length and scale, deliver a significant reduction in the rate and number of deaths and accidents, thereby creating healthier, safer workplaces. • To adapt and customize approaches to help the increasing numbers of SMEs in different sectors comply with their health and safety obligations.

Bassetlaw District Council contributes to the achievement of these goals. We operate in partnership with HSE to ensure that duty holders manage their workplaces with due regard to the health and safety of their workforce and those affected by their work activities. To achieve this we provide advice and guidance on what the law requires, conduct inspections, interventions and investigations, and take enforcement action where appropriate.

There are many regulatory bodies whose remit includes protection of the public from work activities. Local authorities also have wider responsibilities for the safety of local communities. Where appropriate, HSE and local authorities will therefore work with partner bodies (be they other public, private or voluntary sector organizations) to ensure that activities are co-ordinated, duplication of effort is avoided and that public safety is effectively delivered.

Bassetlaw District Council fully supports the HSE strategies and associated priorities. In setting our objectives and carrying out our health and safety enforcement role, we will ensure that the above strategies and priority areas are reflected in the enforcement and guidance activities carried out by our Inspectors. We will also continue to work closely with other Nottinghamshire Councils and the HSE through the work of the Nottinghamshire Health and Safety Working Group and involvement in campaigns, at both national and local levels.

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94 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

3. The Authority

3.1 Profile of the district

Bassetlaw lies in the north of Nottinghamshire and occupies almost 30% of the county. The population of the district is estimated around 111,400. According to the most recently available statistics, about 3.6% of the population is from ethnic minority groups. The main economic and population centers are Worksop (population 40,900) and Retford (population 21,145). The remaining residents live in rural areas in one of the 73 villages in the district. The rural communities are very diverse ranging from small market towns and former mining communities, to very small hamlets. The A1/A1M runs the length of the district and provides good transport links to local businesses and national companies.

The total number of premises for which we are the enforcing authority for health and safety is estimated to be around 2000. These businesses are spread widely over our entire geographic area. Due to the constant changes that take place in small businesses it is a challenge to ensure that up to data is held. There is no requirement for a non-food business to register with our department and we continuously try to identify businesses in which we are the responsible authority for enforcement. 3.2 Council Organisational Structure

Bassetlaw District Council has adopted a structure of Cabinet and Leader.

COUNCIL

Overview and Appeals Audit and Risk Licensing Planning Cabinet Scrutiny Committee Scrutiny Committee Committee Committee Committee Appointments Committee

Chief Officers Investigating Committee

Standards Sub- Committee

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95 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

The Environmental Health Service sits within the directorate of Regeneration and Neighbourhoods. The portfolio is Neighbourhoods and the portfolio holder is Cllr Julie Leigh.

Overall strategic responsibility for the Health & Safety Service lies with the Director of Regeneration and Neighborhood’s. The senior management structure has been reviewed and a Head of Neighborhood Services was appointed in June 2014. The Environmental Health Department is now made up of five teams: Commercial, Neighborhood’s, Pollution, Housing Standards and Admin. Support. The Commercial Team operates the Health & Safety Service, based in Queens Buildings, Worksop. Currently, day-to-day service delivery is supervised by the Environmental Health Team Leader (Commercial), reporting to the Environmental Health Manager.

CHIEF EXECUTIVE

DIRECTOR OF DIRECTOR OF CORPORATE REGENERATION & RESOURCES NEIGHBOURHOODS

HEAD OF HEAD OF HEAD OF HEAD OF HEAD OF HUMAN FINANCE CORPORATE REGENERATION NEIGHBOURHOODS RESOURCES SERVICES

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96 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

3.3 Environmental Health Structure Environmental Health Department Structure

Environmental Health Manager

Commercial Team Pollution Team Housing Team Neighbourhoods Sen. EH Support Dog Control Leader Leader Leader Team Leader Officer Contract

1 Environmental 1 Technical Environmental 2 Environmental 1.9 EH Support Health Officer Officer Health Officer Health Officers Officers (job share)

2.4 Technical 1 Education & 2 Technical Officers Awareness Officer Officers

1 Environmental Warden

This gives a total of 4.4 FTE Officers who deal with Food Safety and Health and Safety at work matters and Licensing inspections.

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3.4 Scope of the Council’s Health and Safety Service

The Regulatory team carry out a range of key functions in relation to health & safety:

• Health and Safety inspections or other intervention strategies in local authority enforced premises • Investigation of accidents, cases of occupational diseases and dangerous occurrences • Investigation of complaints about workplace conditions • Dealing with statutory notifications of asbestos removal or unsatisfactory lifting equipment examination • Maintenance of database of local authority enforced health and safety premises. • Provision of advice and information to businesses and the public • Carrying out health and safety awareness activities and campaigns • Educative work with business operators • Enforcing the smoking ban in all premises in the district

The health and safety service is delivered by qualified staff operating from bases at Queens Buildings, Worksop. Office hours are between 08:45 and 17.00, Monday to Friday. Evening and weekend inspections and interventions are carried out as determined by risk and service requirements and the premises opening hours.

Emergency Health & Safety matters are channeled through an out-of-hours emergency number, operating through a call centre. Emergencies would be passed to a senior officer who could contact members of the team if required. Although specialist regulatory team officers could be contacted they are not on duty at all times.

3.5 Health and Safety Service Enforcement Responsibilities

The health and safety inspection and enforcement function at Bassetlaw District Council has been revitalized over the last few years, in line with central government and HSE policy, to place a greater emphasis on project working and risk-based visits/interventions. Undertaking high-risk health and safety inspections has however remained a priority.

Fluctuations in both the total number of recorded premises and the risk ratings of those premises is not unusual as, during the course of any year, significant numbers of premises will open, close down or undergo changes of ownership or management or both. These premises are removed from or brought into intervention programmes as the changes occur throughout the year. This means that the service responds to variations in numbers and alterations to the predicted programme of activity on an on-going basis. The most recent known split of premises by category for which the Authority has Health & Safety enforcement responsibilities is shown in Figure 1 below. The data base currently holds details of around 1600 premises for which Bassetlaw District Council is the enforcing authority. It is considered possible that the actual number is closer to 2000. We continue to add to this data base on a regular basis.

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98 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Figure 1. Health & Safety Premesis by Category

Consumer Services

Leisure

Hotels etc

Catering Premesis by Category Offices

Wholesale

Retail

0 100 200 300 400 500 600 700

3.5 Enforcement Policy

Bassetlaw District Council recognises the importance of having a documented policy on Health and Safety enforcement, including prosecution. This will facilitate consistent and fair enforcement of the Health and Safety at Work etc. Act 1974, and Regulations made there under. The current Environmental Health Enforcement policy was approved by Council on the 17 December 2009 (minute No 48D) and covers all aspects of Environmental Health work/activities. This document will be subject to regular review by The Principal Environmental Health Manager who is responsible for Health and Safety enforcement, with reference to guidance offered by The Health and Safety Executive (HSE). This document will also be reviewed in association with other Nottinghamshire Authorities through relevant Health and Safety liaison group networks in order to maintain consistency of enforcement across the Nottinghamshire area. The Council’s Enforcement policy will also be informed by the Enforcement Management Model (EMM) developed by the Health and Safety Executive and the Code for Crown Prosecutors.

The Environmental Health Service will carry out their duties in accordance with the principles of the national Concordat of Good Enforcement, as promoted by the Government and formally adopted by the Council in 1999. This means that the Environmental Health Service will carry out its functions in an equitable, practical and consistent manner to promote a thriving local economy, whilst working to secure a safe and healthy environment for all residents and visitors.

Enforcement decisions are also determined with reference to the overarching 2005 Council Enforcement Policy document

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The Council is committed to achieving its stated aims through a service delivery approach that is designed to:

• Help businesses and others meet their legal obligations without unnecessary expense through the promotion of sensible risk management; • Reduce the number of work-related fatalities, injuries and cases of ill health; • Gain widespread commitment and recognition of what real health and safety is about; • Ensure that those who fail in their health and safety duties are held to account by taking firm action, including prosecution where appropriate, against those who flout the law or act irresponsibly; • Motivate all those in the health and safety system as to how they can contribute to an improved health and safety performance;

4. Service Delivery

4.1 Health and Safety Inspections & Interventions

The completion of programmed Health and Safety inspections and interventions is a priority for the service. From April 2010 there was a new method of determining the frequency and type of intervention that should be undertaken in each type of premises. Figure 2 (below) shows these new frequencies in accordance with HELA Circular 67/2 (rev 3) “Advice / Guidance to Local Authorities on Targeting Interventions”. The guidance provides a simple rating system for inspectors scoring premises based on four factors: Confidence in Management, Health performance, Safety performance & Welfare Standards.

The guidance also provides a way to categorize the risk premises pose (high, medium or low), with low risk premises being subject to non-inspection intervention techniques. Authorities may determine that an inspection is the most appropriate approach in these circumstances, but other suitable interventions may be considered appropriate e.g. invites to seminars, followed by a visit should the business fail to attend. This approach, although consistent with the HSE approach, is quite a radical departure from the previous guidance. There is no longer any cumulative adding of various factors, which produces a single overall numerical score. Instead, stand- alone scoring against 4 criteria is used to measure what controls an employer has in place and, using this, to determine a risk rating. Public risk is now incorporated within the overall context of the rating system and no national accident data (NADs) weightings are applied. In addition, to simplify the rating system, there are now only 4 risk categories of premises instead of 6.

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Figure 2

Description New Category Rating Score Intervention Frequency Highest Risk A Suitable for proactive inspections until risks are adequately managed such that the premise can be re- categorised.

Score of 5 or 6 Accident/complaint on any risk investigation B1 Not suitable for proactive inspection but all other interventions to be considered.

Score of 4 on Accident/complaint any risk investigation B2 Not suitable for proactive inspection; consider the use of other interventions only where necessary based on national and local information.

Score of 3 on Accident/complaint any risk investigation Lowest Risk C Use non-inspection intervention methods\techniques.

No score Accident/complaint greater than 2 investigation

The revised guidance abides by the five principles of better regulation as proposed by the Hampton Review - targeting, consistency, transparency, proportionality and accountability. Health and Safety Inspections and Interventions will be carried out in accordance with the above guidelines and the Council’s adopted procedures on Health and safety inspections.

It is anticipated that the proposed combination of Health and Safety Inspections and Interventions for this financial year will utilise around 0.5 FTE.

However it should be noted that the guidance on interventions and accident reporting criteria frequency is again being looked at with the aim of reducing regulatory burden on low risk and complaint premises.

4.2 Priority Inspections and Interventions

The development of intervention areas based on national and local priorities represents a major step change in the approach to joint working between the HSE and Local Authorities in terms of targeted health and safety interventions; ensuring resources are focused into areas where they are likely to have the greatest impact. It represented a move away from conducting only traditional risk-based health and safety inspections, although an element of this traditional inspection programme must be maintained, particularly for higher risk premises, as discussed above. Page | 16

101 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

The following key areas of activity will be targeted in 2015/16

Figure 3 Targeted Activity Estimated Officer Time (Days)

Category A Premises 5 Days Motor Vehicle Industry Advice 2 Days Gas Safety & solid fuel targeted interventions in 20 Days Hotel & Catering operations. (Local & NationalPriority) Primary Authority work (Local Project) 30 Days Welbeing at Work Scheme (Local Project) 5 Days Legionella (National priority) 6 days H & S in Health & Beauty sectors inc. Tattooists, 17 days special treatment premises, licensing of lasers, etc. Developing Business Liason Partnerships in 10 days licensed trade and through local networks 105 Days 0.5 FTE

This more targeted approach to health and safety does not, however, preclude the provision of wider guidance on all aspects of health and safety regulations and compliance.

4.3 Investigation of Reported Accidents, Injuries and Work Related Illness

An important part of the work of the Environmental Health Service is to investigate reports of accidents at work. Notifications are referred to the authority via the HSE’s Incident Contact Centre (ICC), by the operator of the premises where the incident occurred, or occasionally, by or on behalf of the injured person themselves.

To ensure consistency in the selection of accidents for investigation, the criteria contained in LAC 22/13 has been adopted. Accident notifications provide a valuable source of information for drawing the Council’s attention to premises where uncontrolled health and safety risks exist or where enforcement action is required. All notifications that are not within the jurisdiction of the authority are referred to the relevant Local Authority or the HSE, as appropriate.

During 2014/15, the number of accidents reported to the authority was 94. The number of accidents reported to the authority is shown below at Figure 4. As mentioned in service plans for previous years, the number of reported accidents had been showing a steady increase, which was thought to reflect a combination of improved reporting of accidents by businesses as a result of heightened awareness from activities of the Council and the HSE and an increase in the number of larger premises opening in the area (for example, in the Manton Wood area.) The number of reported accidents fell in 2013/14 which was thought to be due to changes to reporting and the requirement to report over 7 day injuries as opposed to 3 days. Figures in relation to 2014/15 show an increase, the exact cause of which is unknown, but it is thought to be due to the bedding in of new reporting requirements, again increases in larger scale commercial premises in the area and increased awareness of health & safety in general. Page | 17

102 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Figure 4 Reported Accidents by Year 160

140

120

100

60 Reported Accidents

4.4 Health and Safety Complaints and Service Requests

Another valuable source of intelligence regarding premises are complaints from the public. A history of the number of complaints and service requests received by the service in recent years is detailed below at Figure 5.

It can be seen that the overall trend in numbers of complaints and requests for advice is increasing. However numbers of service requests, etc. received in the previous year did fall. The exact cause of this fall is not known for sure but could be due to factors such as ongoing advisory campaigns, public perception of health & safety driven by press rhetoric and central government policy or as pressures from the economic climate making potential service users afraid to come forward.

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Figure 5 Complaints & Service Requests 120

100

80 service 60 requests

3.5 Primary Authority Scheme

Bassetlaw District Council fully supports and endorses the Primary Authority Scheme. The Council has acted as a Lead Authority in connection with Wilkinson’s since 1995. Wilkinson’s and Bassetlaw District Council have now formalized this arrangement and a Primary Authority Agreement is in place.

The Council is committed to responding positively to enquiries from other Local Authorities and will endeavour to provide such authorities with sufficient information and help to enable them to make appropriate enforcement decisions.

Over the past several years, significant work has been undertaken with Wilkinson’s, including;

. Joint attendance of Lead Authority Partnership training; . Joint attendance at a training session designed to encourage enhanced working on slips and trips. . Work involving the measurement of the slip resistance of floors with the aim of reducing slips and trips in stores throughout the country. . A partnership project between Bassetlaw, the HSE, representatives of Wilkinsons and Canute on “Moving Goods Safely” (MGS2). As a result of this, work was carried out which will tackle issues in the supply chain. . Extensive support work to help Wilkinson’s improve health & safety conditions within their warehouse premises.

As with previous years, we are committed to continuing the partnership working already in place for Primary Authority issues.

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3.6 Advice to Businesses

Bassetlaw District Council has a statutory duty to enforce health and safety legislation in premises for which it has an enforcement responsibility. The Council also recognizes that providing help and advice to businesses is a key and important activity, contributing to the priorities of supporting a safe environment and a thriving local economy. Advice and guidance is an effective and efficient method of improving health and safety standards throughout the district.

As well as the provision of a wide range of advice during inspections and interventions, specific literature and topic packs are also provided. New or prospective businesses are also provided with additional information on risk assessment and the management of health and safety, appropriate to the nature of the business. Although there continue to be time pressures and competing priorities for officer time within the Commercial Team, targeted interventions will allow officers to spend some time on preventative work, advising businesses on how to protect the health, safety and welfare of their employees.

Work will continue to expand our ability to sign post to useful information and advice to businesses. We already have some information available on our website and signpost customers to other relevant sources where suitable. We will continue to work on this resource to ensure it remains up to date and relevant to activities within our district. 3.7 Liaison with other Organizations

Bassetlaw District Council is committed to working together with other organizations in order to ensure consistent, effective, best value services, which meet the needs of our customers. Liaison arrangements with other organizations in relation to health and safety include:

The Nottinghamshire Health and Safety Working Group

This Group meets every quarter and is attended by all Nottinghamshire Local Councils, a representative of the Nottinghamshire Chief Officers Group and also a liaison officer from the Health and Safety Executive (HSE). The purpose of this group is to provide effective liaison between Local Authorities and the HSE on Health and Safety matters and a forum to discuss/implement fair and consistent enforcement approaches. The Group also evaluates common training needs and has a co-ordination role for county-wide training events. Another important feature of this groups work is benchmarking of procedures, as well as financial and statistical data, and the sharing of good practice. The work on joint initiatives has improved the awareness of occupational safety and health issues throughout Nottinghamshire.

Other Liaison Arrangements

• Comments given in respect of Premises License applications to Legal and Estates Services. • Comments given to The Planning Services Department in respect of planning applications involving business premises. • Formal liaison with public bodies, such as, Public Health England through active participation in the health improvement programme, the Page | 20

105 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Nottinghamshire Infection Control Meetings and the Nottinghamshire Environmental Liaison Committee. • Bassetlaw District Council Licensing Section in respect of The Licensing Act 2003. • Health and Safety Executive. • Health and Safety Executives Incident Contact Centre regarding reported accidents. • A countywide business consultation group has been established to consider Environmental Health and Trading Standards enforcement issues. • Signatory and supporter of Beter Business for All through the D2N2 LEP • Re-launch of the Safety Advisory Groups within Bassetlaw to help address event safety concerns.

It is estimated that the resource allocation for these activities is around 150 hours (FTE 0.1) of Officer time.

3.8 Health and Safety Promotion

Educational and promotional works are considered to be important aspects of the delivery of a comprehensive Health and Safety Service. Promotion of health and safety is achieved by using the most appropriate method to the target message or business. Past examples include; visits to premises with targeted advice and information on occupational dermatitis in the hairdressing and beauty industry, the distribution of information during European Health and Safety Week, and involvement in the organisation and publicity of health and safety training events for specific industries. Activities of this nature will form a significant part of our work this year. It is anticipated that the above activities will require a resource allocation of around 250 hours of Officer time. (FTE 0.15)

5. Resources

5.1 Staffing Allocation

Figure 6 below details the proposed allocation of Officer time for Health and Safety activities and Figure 7 the level of financial support for the Health & Safety Service (please note that due to the implementation of a new financial system the levels of finance for health & safety shown here are not necessarily comparrible to previous years figure).

Figure 6 Officer FTE Environmental Health Officer 0.8 Technical Officer 1.0 Env. Health Manager 0.2 Admin 0.2

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106 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

Figure 7 Safety Financial Allocations 2015/16 Employees 52,700 Transport 3,200 Net Expenditure 55,900

5.2 Staff Development Plan

The Nottinghamshire Health & Safety Liaison Group, on an annual basis, conduct a County-wide review of training/development needs which may lead to provision of cost effective training events for enforcement Officers across the County.

The Training budget for 2015/16 will be determined corporately and allocated to service areas by the Head of Service. Health & Safety training needs are prioritised in the context of the wider service requirements identified in the service wide training plan.

6. Quality Assessment

6.1 Quality Assessment

Bassetlaw District Council is committed to providing high quality services and ensuring that such services are reviewed for quality of delivery. The Council as a whole was awarded the Investors In People (IIP) award in 1998 and retained this award following assessments in 1999/2000 and in 2006, 2009 & 2012.

Bassetlaw District Council operates a quality procedure that provides for monitoring mechanisms. The quality of inspections is achieved and monitored by:

107 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

The Environmental Health Manager will take any necessary corrective action where a problem is identified. This could include additional support and monitoring, additional training, inconsistency reviews, suspension or disciplinary action.

Any formal complaints made against the service are investigated and monitored in accordance with the Council’s Complaints Policy.

The Nottinghamshire Health and Safety Working Group provide a focus for inter- authority auditing against the HELA Audit Protocol for Inter-Authority Auditing and also peer review exercises. During 2010/11 the Nottinghamshire Health and Safety Working Group carried out a number of benchmarking activities including review of premises risk ratings, accident investigations and service requests. In addition, consistency exercises and also took place.

Local Authorities were required to be compliant with S18 guidance by spring of 2011. The Nottinghamshire authorities have all completed the Section 18 compliance tool and benchmarked their results against each other and on a wider level.

We will look at ensuring compliance with any requirements of the new Code of Practice.

7. Review Process

7.1 Review against Service Plan

Health and safety inspection performance was reported annually as part of the Authority’s performance management framework, which was subject to monitoring by the Overview & Scrutiny Committee. This local target is no longer operational. On an ongoing basis, the Environmental Health Manager and Environmental Health Team Leader (Commercial) will monitor progress against the identified objectives and improvements contained in this plan which will continue to be reported, through this document and associated report to Cabinet and full Council.

This Service Plan will be reviewed annually and amended according to the changing legislative landscape and the demands and requirements upon the service. The plan will include a review of the previous year’s performance and a plan of continuing improvement for the forthcoming year. 7.2 Performance Review of Planned Objectives for 2014/15

Review of Objectives for 2014/15 Objective Planned Outcome Completed 1 Complete targeted Inspections and Intervention Plan Completed Yes 2 Participate in Wellbeing at Work programme within Further Organisations Yes Bassetlaw & support as required any wider roll out of receive Awards at Gold, scheme with partner organisations Silver & Bronze 3 Awareness raising and checking of standards within Complete along with Ongoing catering establishments planned food inspection program 4 Outdoor Events Engage with event Partially organizers to provide complete – advice continued in Page | 23

108 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

work with SAG’s 5 Laser equipment in the beauty sector Targeted inspections as Completed – per licensing will continue requirements into new year 6 Tattooist and skin piercer hygiene practices Targeted inspections as Targeted per licensing inspections as requirements per licensing requirements 7 Identification of cooling towers, condensers and Identify installations and Ongoing evaporators within the district log appropriately 8 Provision of advice and guidance to stakeholders Provide advise as Ongoing necessary and in required formats

1. Complete Intervention Plan Work on H&S has been ongoing throughout the year and outcomes have been reported as required to the HSE. 2. Wellbeing at Work This project has continued apace with further workplaces receiving awards at Gold, Silver. The project is currently being rolled out across Nottinghamshire as a model scheme for the County with interest from other Counties as well.

3. Catering Establishments The Commercial Team continue to provide advice and guidance within catering premises alongside their routine food inspection program. 4. Outdoor Events Contact was made with some event organisers for larger events. However not all events were notified to Environmental Health. Work on this will continue as part of the SAG process in 2015/16.

5. Laser Equipment As part of licensing requirements premises with these types of activities and practices were inspected for health & safety standards. This will continue into 2015/16. 6. Tattooist & Skin Piercers As part of licensing requirements premises with these types of activities and practices were inspected for health & safety standards. This will continue into 2015/16. 7. Cooling Towers, Evaporators, Condensers, etc. The Environmental health team continues to try to identify further cooling equipment for legionella assessment and add to the data base as appropriate. 8. Provision of advice and guidance This is an ongoing process and will be reviewed according to feedback from stakeholders and developments regarding legislation, etc.

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109 Bassetlaw District Council - Health & Safety Enforcement Service Plan 2015/16

7.3 Planned Objectives for 2015/16

Objective Planned Outcome Date of completion 1 Complete targeted Inspections and Intervention Completed March 2016 Plan 2 Participate in Wellbeing at Work programme Further Organisation March 2016 within Bassetlaw & support as required any wider receive Awards at Gold, roll out of scheme with partner organisations Silver & Bronze. Scheme extended to Notts 3 Targeted interventions as part of licensing visits to Completed March 2016 tattooist, skin piercers, sunbeds, etc. 4 Engage and support SAG progression with the Attend SAG’s and support March 2016 district as necessary 5 Progress Primary Authority arrangements with Maintain partnership National Company 6 Pro-active education/advisory campaigns to raise 2 events/activities March 2016 profile of the service completed

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110 Agenda Item No. 8(d)

R E F E R R A L

From

AUDIT AND RISK SCRUTINY COMMITTEE HELD ON 11TH JUNE 2015

COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Linda Dore, Electoral and Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 7(a) Annual Audit Fee 2015/16.

RESOLVED that the Annual Audit Fee 2015/16 report be noted and referred to the full Council meeting on 25th June 2015.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Director of Corporate Resources Head of Finance and Property Chief Executive Committee Administrator

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Agenda Item No. 7(a) BASSETLAW DISTRICT COUNCIL

AUDIT & RISK SCRUTINY COMMITTEE

11TH JUNE 2015

REPORT OF THE DIRECTOR OF CORPORATE RESOURCES

ANNUAL AUDIT FEE 2015/16

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

1.1 The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To provide Members with the Audit Commission’s Work Programme and Scale of Audit Fees for 2015/16.

3. Background and Discussion

3.1 The statutory responsibilities and powers of appointed auditors are set out in the Audit Commission Act 1998. In discharging these specific statutory responsibilities and powers, auditors are required to carry out their work in accordance with the Commission’s Code of Audit Practice 2010.

3.2 The Audit Fee reflects the risk-based approach to audit planning as set out in the Code of Audit Practice and work mandated by the Audit Commission for 2015/16. The audit fee covers the audit of the Accounting Statements, reporting on the Whole of Government Accounts return, and the Value for Money conclusion.

3.3 Under Section 7 of the Audit Commission Act 1998, the Commission has a statutory duty to prescribe scales of fees for the audit of accounts, and this amount is to be paid to the appointed external auditor, KPMG, as outlined in their letter dated 21st April 2015 (Appendix A). The Audit Commission’s Work Programme and Scales of Fees report is attached at Appendix B.

3.4 Following the closure of the Audit Commission at the end of March 2015, the responsibility for determining audit fees has transferred to the Public Sector Audit Appointments Limited (PSAA), an independent company established by the Local Government Association. The PSAA will oversee the management of the Audit Commission’s audit contracts until they end in 2017 or 2020 if they are extended.

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3.5 Also following the Audit Commission’s closure, the National Audit Office (NAO) is now responsible for producing and maintaining the Code of Audit Practice (the Code).

4. Implications

a) For service users

External verification is important to Bassetlaw as it provides an independent assessment of progress and the standard of service provided for the council tax levied.

b) Strategic & Policy

The Audit Commission work programme supports the Council’s corporate governance arrangements.

c) Financial - Ref: 16/155

The basic audit fee for 2015/16 is £57,225, and this reflects a 25% reduction over the previous year. The budget for 2015/16 is set at £77,700, providing an in-year saving of £20,475 which will be taken into account when setting the budget in future years.

The cost of certifying grant claims and returns has reduced by £1,010 to £5,190 for 2015/16. This is a reduction of 16% but is due to the fact that the number of grant claim forms to be certified has reduced.

d) Legal – Ref: 153/06/15

The Audit Commission Act 1998 sets out the work of the external auditor and the expectations placed upon the Council in terms of its Accounting Statements and Value for Money conclusion.

e) Human Resources

None arising from this report.

f) Community Safety, Equalities, Environmental

None arising from this report.

g) Whether this is a key decision, and if so the reference number.

This is not a key decision.

5. Options, Risks and Reasons for Recommendations

5.1 This report is provided to Members for information and consideration.

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6. Recommendations

6.1 That the Audit & Risk Scrutiny Committee notes the Annual Audit Fee for 2015/16, and recommends the report to full Council on 25th June 2015.

Background Papers Audit Papers Head of Finance & Property office

115 116 117 118 119 120 121 122 Work programme and scales of fees 2015/16 Local government and police bodies

March 2015

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The Audit Commission’s role is to protect the public purse. We do this by appointing auditors, publishing analysis and comparing data.

In August 2010, the Department for Communities and Local Government announced plans to put in place new arrangements for auditing England’s local public bodies.

The 2014 Local Audit and Accountability Act makes it possible for the Audit Commission to close, in line with Government expectations, on 31 March 2015, 32 years after it was established.

The Commission’s functions will continue after its closure in new organisations, including responsibility for the Code of Audit Practice, the management of audit contracts, the provision of information about audit, and value for money studies.

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Contents

Introduction ...... 2 Background ...... 2 Scales of fees for 2015/16 ...... 3 Fees for 2016/17 ...... 4

Work programme 2015/16 ...... 5 Audit ...... 5 Auditors’ work on value for money arrangements ...... 5 Certification work ...... 5 Reporting on the results of auditors’ work ...... 6

Scales of fees for 2015/16 ...... 7 Scales of audit fees for local government, police and fire and rescue bodies ...... 7 Pension fund audits ...... 7 Certification work ...... 8 Value added tax...... 8

Audit Commission Work programme and scales of fees 2015/16 1 125

Introduction

1 This document sets out the work to be undertaken by appointed auditors at local government and police audited bodies for 2015/16, with the associated scales of audit fees. Separate documents cover auditors’ work at NHS bodies and at small bodies.

2 The work will be undertaken under the Code of Audit Practice, which has been published by the National Audit Office (NAO) on behalf of the Comptroller and Auditor General. The NAO’s Code of Audit Practice takes effect for audit work relating to the 2015/16 financial year onwards.

3 The statement of responsibilities of auditors and audited bodies continues to apply to the work set out in this work programme. The appointed auditor is, always, responsible for the conduct of the audit.

Background

4 Under provisions of the Local Audit and Accountability Act 2014, the Audit Commission closes on 31 March 2015 and the Audit Commission Act 1998 is repealed1.

5 The Commission’s functions continue in other organisations2: • Public Sector Audit Appointments Limited (PSAA), an independent company established by the Local Government Association, will oversee the management of the Commission’s audit contracts until they end in 2017, or 2020 if they are extended. PSAA will also continue to make available the VFM profiles tool, and the fee comparator tool; • responsibility for publishing the statutory Code of Audit Practice and guidance for auditors transfers to the NAO, for audits from 2015/16; • the Commission’s responsibilities for local value for money studies also transfer to the NAO; and • the National Fraud Initiative (NFI), which has helped to detect fraud, overpayments and errors totalling £1.17 billion since 1996, moves to the Cabinet Office.

6 PSAA will manage the Commission’s audit contracts, exercising statutory powers in relation to appointing auditors, setting and determining fees, and making arrangements for housing benefit subsidy certification. The Secretary of State for Communities and Local Government has

1 Sections 3, 7 and 28 of the Audit Commission Act 1998 have been saved and delegated by the Secretary of State. 2 More information on the transfer of Audit Commission functions is available on the version of the Commission’s website archived in March 2015.

Audit Commission Work programme and scales of fees 2015/16 2 126

delegated certain functions from the Audit Commission Act 1998 to PSAA to enable it to deliver these functions.

7 Fees are the principal way the delegated functions are financed, taking one year with another. In law, audit fees are not a fee for audit services, but a charge to fund operating costs, out of which the costs of audits are met. Fees for certification must cover the full cost of the work required to certify a claim.

8 DCLG asked the Commission to set scale fees for principal bodies for 2015/16, as part of the transition to the new framework. This will be the first year of audit following the Commission’s closure.

9 The Commission is publishing the 2015/16 work programme and scales of fees in advance of the start of the financial year to which they apply, as is our usual practice. From 1 April 2015, PSAA will administer the work programme and scales of fees.

Scales of fees for 2015/16

10 There are no changes to the overall work programme for local government and police audited bodies for 2015/16. Following consultation, we have set scale fees based on a reduction of 25 per cent to the fees applicable for 2014/15.

11 This fee reduction is possible as a result of the lower prices achieved in the audit procurement exercise undertaken by the Audit Commission in 2014. The reduction is in addition to the savings of up to 40 per cent in scale audit fees and indicative certification fees in 2012, following a larger procurement.

12 The fee reductions are expected to apply until the end of the audit contracts in 2017, or to 2020 if extended, subject to annual review.

13 The reduction of 25 per cent for 2015/16 does not apply to pension fund audits, where fee pressures have been rising due to the increasing complexity of the funds audited. The reduction has also not been applied to local government audited bodies with 2014/15 scale audit fees below £20,000. This is because there is no scope to reduce fees below this level and still ensure the auditor is able to complete an audit compliant with the Code of Audit Practice and professional standards.

14 We received a limited response to our consultation on the 2015/16 work programme and scales of fees, with only 15 responses (1.8 per cent) across all our sectors and stakeholders. We have published a summary of the consultation responses.

15 The scale audit fees and indicative certification fees for individual bodies are published alongside this work programme, to support transparency and to help audited bodies compare their fees with those of similar bodies. The 2015/16 work programme and the scale fees for individual bodies are available on the Audit Commission website until 31 March 2015 and on the PSAA website from 1 April 2015. After the

Audit Commission Work programme and scales of fees 2015/16 3 127

Commission’s closure, an archive version of the website will be available from the National Archives.

Fees for 2016/17

16 The current Audit Commission contracts with audit suppliers run until 2017, with a possibility of extension for up to three years. Under its responsibility to manage the audit contracts, PSAA will need to consult on and set fees for 2016/17.

Audit Commission Work programme and scales of fees 2015/16 4 128

Work programme 2015/16

Audit

17 Auditors tailor their work to reflect local circumstances and their assessment of audit risk. They do this by assessing the significant financial and operational risks facing an audited body, and the arrangements it has put in place to manage those risks.

18 The Chartered Institute for Public Finance and Accountancy (CIPFA) has confirmed that a change in accounting policy will be introduced for the accounts from 2016/17, in relation to the measurement of transport infrastructure assets for authorities with highways responsibilities. Fees for any additional audit work required in 2015/16, the preparatory year, in relation to disclosures in the financial statements, will be subject to approval under the normal fee variations process. It is not appropriate to increase scale fees because the amount of work required at individual authorities will vary based on local circumstances, and may not be required for more than one year.

Auditors’ work on value for money arrangements

19 Under the Local Audit and Accountability Act 2014, auditors have a responsibility to satisfy themselves about an audited body’s arrangements to secure economy, efficiency and effectiveness in its use of resources.

20 2015/16 fees have been set on the basis that the NAO’s Code of Audit Practice maintains the scope of work required by auditors under the Audit Commission’s previous Code and supporting guidance. The NAO will publish guidance for auditors on the required approach to work on value for money arrangements in due course.

21 A conclusion on VFM arrangements is not required for bodies with annual income or expenditure of less than £6.5 million, which are subject to a limited assurance engagement, unless the body has elected to prepare accounts as a larger authority. This is in line with the threshold defining smaller authorities under section 6 of the Local Audit and Accountability Act 2014.

Certification work

22 As well as their work under the Code, appointed auditors will certify 2015/16 local authority claims for housing benefit subsidy to the Department for Work and Pensions (DWP) under the Commission audit contracts managed by PSAA.

Audit Commission Work programme and scales of fees 2015/16 5 129

23 Auditors will not certify any other claims or returns under the audit contracts. Assurance arrangements for other schemes are a matter for the relevant grant-paying body, and may be the subject of separate fees and tri- partite arrangements between the grant-paying body, the audited body, and the auditor.

Reporting on the results of auditors’ work

24 The Audit Commission has previously published an annual Auditing the Accounts report, summarising the results of auditors’ work on audited bodies’ financial statements and arrangements to secure value for money. PSAA will continue providing access in this way to the results of auditors’ work.

Audit Commission Work programme and scales of fees 2015/16 6 130

Scales of fees for 2015/16

Scales of audit fees for local government, police and fire and rescue bodies

25 The scales of fees for 2015/16 reflect the cost of the work programme outlined above. The 2015/16 scale fee for each local government and police audited body is published on the Audit Commission and PSAA websites.

26 The duty to set fees includes the power to determine the fee above or below the scale fee where it is considered that substantially more or less work is required than envisaged by the scale fee. The scale fees are based on the expectation that audited bodies are able to provide the auditor with complete and materially accurate financial statements, with supporting working papers, within agreed timeframes.

27 As the 2015/16 scale fees for individual bodies have been set based on the fees applicable for the previous year, they already reflect the auditor’s assessment of audit risk and complexity. Therefore, we expect variations from the scale fee to occur only where these factors are significantly different from those identified and reflected in the 2014/15 fee.

28 It is a matter for the auditor to decide the work necessary to complete the audit. Where an auditor considers more or less work is required than is represented in the scale fee, they are required under the audit contracts to seek approval for a variation to the scale fee and to agree the amount of this variation with the audited body.

29 Under the audit contracts, appointed auditors are required to provide updated fee information, and explanations for any proposed variations from the scale fee, on a regular basis. PSAA will consider the reasonableness of the explanations provided by auditors before agreeing to any variation to the scale fee. Only approved fee variations can be invoiced or refunded to audited bodies.

30 Fees to cover the costs of considering objections are charged, as a variation to the scale fee, from the point at which an auditor accepts an objection as valid. This also applies to costs incurred on any special investigations, such as those arising from disclosures under the Public Interest Disclosure Act 1998.

Pension fund audits

31 The 2015/16 scale audit fee for each pension fund audit is available on the Audit Commission and PSAA websites

Audit Commission Work programme and scales of fees 2015/16 7 131

Certification work

32 The 2015/16 indicative fee for certification work at individual audited bodies is available on the Audit Commission and PSAA websites. The fees are based on the latest final certification fees available, for 2013/14 certification, and cover certification of housing benefit subsidy claims only.

33 Indicative certification fees are based on the expectation that audited bodies are able to provide the auditor with complete and materially accurate claims, with supporting working papers, within agreed timeframes.

34 It is a matter for the auditor to decide the work necessary to certify the claim and to seek to agree any proposed variation to the indicative fee with the audited body before obtaining approval from PSAA. Only approved fee variations can be invoiced or refunded to audited bodies.

35 As 2015/16 indicative certification fees for individual bodies are based on the latest certification fees available, they already reflect the auditor’s assessment of the work required. We expect variations from the indicative fee to occur only where issues arise that are significantly different from those identified and reflected in the actual 2013/14 certification fee.

Value added tax

36 All the 2015/16 scale fees exclude value added tax, which will be charged at the prevailing rate of 20 per cent on all work done.

Audit Commission Work programme and scales of fees 2015/16 8 132

Agenda Item No. 8(e)

R E F E R R A L

From

AUDIT AND RISK SCRUTINY COMMITTEE HELD ON 11TH JUNE 2015

COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Linda Dore, Electoral and Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 9(e) Annual Governance Statement 2014/15.

RESOLVED that the Annual Governance Statement for 2014/15 be recommended to Council for approval and the Future Actions 2015/16 as set out in the report be implemented.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Director of Corporate Resources Head of Finance and Property Chief Executive Committee Administrator

133

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Agenda Item No. 7(f) BASSETLAW DISTRICT COUNCIL

AUDIT AND RISK SCRUTINY COMMITTEE

11th JUNE 2015

REPORT OF DIRECTOR OF CORPORATE RESOURCES

ANNUAL GOVERNANCE STATEMENT 2014/15

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

1.1 The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

2.1 That Members review the Council’s Annual Governance Statement 2014/15.

3. Background and Discussion

3.1 Local authorities are required under Regulation 4 of the Accounts and Audit (England) Regulations 2011 to “conduct a review at least once in a year of the effectiveness of its system of internal control” and to publish a statement which accompanies the annual Statement of Accounts.

3.2 The Regulations require local authorities to produce the statement on internal control i.e. the Annual Governance Statement “in accordance with proper practices in relation to internal control”.

Proper Practices

3.3 Corporate governance in the UK came to public prominence with the publication of the Cadbury Report in 1992. This addressed those aspects of corporate governance that related to financial reporting and accountability. The initial report focussed on public limited companies, but the issues involved were clearly of relevance to all parts of the private and public sectors.

3.4 Early responses to the governance issues in the public sector concentrated on accountability, with the Nolan Committee reviewing these concerns. In 2001 CIPFA and the Society of Local Authority Chief Executives (SOLACE) published “Corporate Governance in Local Government – A Keystone for Community Governance”. This

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set out, as the name suggests, a framework of best practice guidance for authorities to develop their own locally adopted codes.

3.5 In June 2007, CIPFA with SOLACE published the revised framework “Delivering Good Governance in Local Government”. The publication of this CIPFA/SOLACE framework represented a change in the available good practice guidance for local authorities. CIPFA’s previously published guidance on the form and content of the statement on internal control had been formally withdrawn and replaced by the new framework and guidance notes. This new framework recommended that the review of the effectiveness of the system of internal control should be reported in an Annual Governance Statement.

3.6 In December 2012, CIPFA/SOLACE produced an Addendum to the “Delivering Good Governance in Local Government” which set out changes to the wording and expectations of the Annual Governance Statement. These have been taken into account when producing this report.

Annual Governance Statement and Future Actions

3.7 The forward looking Local Code of Corporate Governance 2014/15 document was approved by full Council on 26th June 2014.

3.8 The backward looking Annual Governance Statement for 2014/15 shows the extent to which the Council has met the core and supporting principles included in the Local Code as at 31st March 2015. Future Actions for 2015/16 have also been included to address any gaps as part of the Annual Governance Statement.

4. Implications

a) For service users:

None from this report.

b) Strategic & Policy:

Relevant aspects are included within the Annual Governance Statement.

c) Financial - Ref: 16/64

Regulation 4 of the Accounts and Audit (England) Regulations 2011 provide that the Annual Governance Statement is to accompany the accounting statements, rather than being included, but the Local Code of Corporate Governance needs to be approved prior to the Annual Governance Statement to enable this legal requirement to be satisfied.

d) Legal – Ref: 154/06/15

The Statement is a statutory requirement under the Accounts and Audit (England) Regulations 2011.

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e) Human Resources:

None from this report.

f) Community Safety, Equalities, Environmental:

None from this report.

g) Whether this is a key decision, and if so the reference number.

This is not a key decision.

5. Options, Risks and Reasons for Recommendations

5.1 If the Annual Governance Statement were not approved there would be significant adverse consequences on the External Auditor (KPMG)’s assessment of the Statement of Accounts and on the Council’s corporate governance arrangements.

6. Recommendations

6.1 The Audit & Risk Scrutiny Committee recommends that Council approves the Annual Governance Statement 2014/15, and to implement the Future Actions in 2015/16 as set out in the report.

Background Papers Location Finance Files Head of Finance & Property’s Office

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BASSETLAW DISTRICT COUNCIL ANNUAL GOVERNANCE STATEMENT 2014/15

1. Scope of Responsibility

1.1 Bassetlaw District Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. Bassetlaw District Council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

1.2 In discharging this overall responsibility, Bassetlaw District Council is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions, and which includes arrangements for the management of risk.

1.3 Bassetlaw District Council has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. A copy of the authority’s code is on our website at www.bassetlaw.gov.uk or can be obtained from the Director of Corporate Resources, Bassetlaw District Council, Queen’s Buildings, Potter Street, Worksop. S80 2AH. This statement explains how Bassetlaw District Council has complied with the code and also meets the requirements of the Accounts and Audit (England) Regulations 2011, regulation 4(3), which requires all relevant bodies to prepare an annual governance statement.

2. The Purpose of the Governance Framework

2.1 The governance framework comprises the systems and processes, culture and values by which the authority is directed and controlled and its activities through which it accounts to, engages with and leads its communities. It enables the authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate services and value for money.

2.2 The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Bassetlaw District Council’s policies, aims and objectives, to evaluate the likelihood and potential impact of those risks being realised, and to manage them efficiently, effectively and economically.

2.3 The governance framework has been in place at Bassetlaw District Council for the year ended 31st March 2015 and up to the date of approval of the statement of accounts.

3. The Governance Framework

3.1 Bassetlaw District Council approved the “Local Code of Corporate Governance 2014/15” at its full Council meeting on 26th June 2014 which recognised that effective governance is achieved through

1 139 the six core principles and 18 supporting principles. Evidence that the Council complies is detailed below:

Focusing on the purpose of the Council and on outcomes for the community including citizens and service users, and creating and implementing a vision for the local area.

(i) Exercising strategic leadership by developing and clearly communicating the authority’s purpose and vision and its intended outcome for citizens and service users.

• The Council’s ambitions are published in its Corporate Plan. This document provides a basis for corporate and service planning, and aligning strategic management responsibilities with the identified corporate objectives and priorities. • The Council publishes reports on a timely basis to communicate its activities and achievements, its financial position and performance. These are reported on a quarterly or annual basis to the full Council, Cabinet, and/or Scrutiny Committees. Examples include the quarterly budget and performance reports, the Annual Statement of Accounts, and the Equalities Annual Report.

(ii) Ensuring that users receive a high quality of service, whether directly or in partnership or by commissioning.

• The Council sets service standards and has an effective performance monitoring process in place. • The Council’s key partnerships are held on a Partnerships Register. On an annual basis each key partnership is reviewed in terms of their stewardship and governance arrangements by its associated Council Partnership Officer and managed by the Corporate Governance Working Group. • The Council’s key Partnerships are reported to Council annually as part of the Statement of Accounts. • The Council has effective arrangements in place to deal with failure in service delivery. This is achieved through the Council’s performance management framework.

(iii) Ensuring that the Council makes best use of its resources and that taxpayers and service users receive excellent value for money.

• The Council has a Value for Money Strategy in place, which is refreshed and approved by Cabinet on an annual basis. The Strategy includes how value for money is to be measured and ensures that it has the information needed to review value for money and performance effectively. It also provides an Action Plan for future areas of work.

Members and officers working together to achieve a common purpose with clearly defined functions and roles.

(iv) Ensuring effective leadership throughout the Council by being clear about Cabinet and non- Cabinet functions and of the roles and responsibilities of the scrutiny function.

• The Council has an approved Constitution which clearly sets out the respective roles and responsibilities of the Cabinet and other Committees within the Council. The Constitution is kept under constant review by the Monitoring Officer and amendments are made to reflect changes as and when they occur. • The Council has put in place effective management arrangements at the top of the organisation with the Chief Executive, Directors and Heads of Service meeting on a regular basis. In addition, the effective operation of the organisation is monitored by way of quarterly

2 140 performance reports, monthly financial management reports, and HR reports to Directorate Management Team meetings.

(v) Ensuring that a constructive working relationship exists between elected Members and officers and that the responsibilities of Members and officers are carried out to a high standard.

• The Constitution includes a Scheme of Delegation, which is under periodic review. • The Council has determined that the Chief Executive is responsible and accountable for all aspects of operational management. • The Council has a developed Communication strategy, including Members Information Bulletins and scheduled meetings with Cabinet Members, that ensures effective communication between Members and officers in their respective roles. • The Leader and Chief Executive meet on a weekly basis to ensure that a shared understanding of roles and objectives is maintained. • The Council has established terms and conditions for remuneration of Members and officers and there is an effective structure for managing the process including the existence of an Independent Remuneration Panel. • The Council has made the Head of Finance & Property (the Section 151 Officer) responsible for ensuring that appropriate advice is given on all financial matters, for keeping proper records and accounts, and for maintaining an effective system of internal control. • The Council has made the Director of Corporate Resources (the Monitoring Officer) responsible for ensuring that agreed procedures are followed and that all applicable statutes and regulations are complied with.

(vi) Ensuring relationships between the Council, its partners and the public are clear so that each knows what to expect of the other.

• The Council has in place a number of Service Level Agreements e.g. A1 Housing and Citizens Advice Bureau, and robust Performance Monitoring arrangements to ensure that its partners provide effective service delivery. • The Council ensures that its strategic plans, priorities and targets are developed through a robust mechanism, and in consultation with the local community and other key stakeholders, and that they are clearly articulated and disseminated.

Promoting the values of the Council (Positive; Responsible; Innovative; Decisive; Enterprising and Ambitious), and demonstrating the values of good governance through upholding the highest standards of conduct and behaviour.

(vii) Ensuring Council Members and officers exercise leadership by behaving in ways that uphold high standards of conduct and exemplify effective governance.

• The Council’s Leadership sets a tone for the organisation by creating a climate of openness, support and respect. • The Constitution includes a Code of Conduct scheme for both officers and Members. • The Council has adopted a Code of Conduct procedure under which the Monitoring Officer can deal with complaints against Members. • The Code of Conduct training is mandatory as approved by Members, and is delivered annually. • The Council has put in place anti-fraud and anti-corruption arrangements (including whistleblowing), to ensure that Members and officers of the Council are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders.

3 141 (viii) Ensuring that organisational values are put into practice and are effective.

• The Council has put in place arrangements to ensure that procedures and operations are designed in conformity with appropriate ethical standards, and to monitor their continuing compliance in practice. • The Council uses shared values to act as a guide for decision making and as a basis for developing positive and trusting relationships within the Council, and with key partners working through the Bassetlaw Community Partnership. • The Council when establishing partnership arrangements, agrees upon a set of values against which decision-making and actions can be judged. Such values must be demonstrated by partners’ behaviour both individually and collectively e.g. equality and diversity arrangements. • The values of the Council are included as part of the annual officer appraisal process.

Taking informed and transparent decisions that are subject to effective scrutiny and managing risk.

(ix) Exercising leadership by being rigorous and transparent about how decisions are taken and listening to and acting upon the outcome of constructive scrutiny.

• The Council operates an Overview & Scrutiny Committee, and an Audit & Risk Scrutiny Committee. • The Council has a transparent Agenda and minutes system that documents the criteria, rationale and considerations on which decisions are based. • The Council has systems in place that record all gifts and hospitality, and a register of interests. • The Council has a Complaints Officer, and effective transparent and accessible arrangements for dealing with complaints are in place.

(x) Having good quality information, advice and support to ensure that services are delivered effectively and are what the community wants/needs.

• All committee reports explain the purpose of the report; the background to it; the implications of a decision; and the options, risks and reasons for the recommendations made. This ensures that those making decisions are provided with information that is fit for purpose i.e. relevant and timely, and gives clear explanations of technical issues and their implications. • The Council has ensured that professional advice on legal, financial and equality matters is available and recorded well in advance of decision-making and used appropriately when decisions have significant legal, financial or potential equality implications, including the issuing of unique references before a report is accepted for the final agenda. • All major policies and services are subject to an Equalities Impact Assessment and training has been provided to all relevant officers.

(xi) Ensuring that an effective risk management system is in place.

• The Council has ensured that risk management is embedded into the culture of the Council, with Members and managers at all levels recognising that risk management is part of their job and a duty placed on all. • The Council has a Corporate Risk Management Group that meets quarterly to review Corporate, Directorate and service-based risks and reports appropriately to the Audit & Risk Scrutiny Committee on a quarterly basis. • The Council has a Whistle-Blowing policy in place, to which officers and all those contracting with the Council have access via the Council’s own intranet and external website.

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(xii) Recognising the limits of lawful action and observing both the specific requirements of legislation and the general responsibilities placed on local authorities by public law, but also accepting responsibility to use their legal powers to the full benefit of the citizens and communities in its area.

• The Council works within its own Constitutional framework which defines responsibilities and delegated authority as well as specific legislative requirements of general and administrative law. • The Council when working in partnership has put in place protocols/Service Level Agreements for working together, to ensure that there are robust procedures for scrutinising decisions and behaviour, and that these decisions and behaviour are compliant with any existing Council or specific partnership rules and codes. • The Council ensures that all committee papers are easily accessible and meetings are held in public unless there are good reasons for confidentiality. • Internal Audit supports the Audit & Risk Scrutiny Committee by reviewing elements of the Council’s system of internal control and reporting regularly thereon, thus helping the Council to satisfy itself as to compliance with regulation and best practice. • The system of internal control is based on a coherent accounting and budgeting framework including contract, financial and procurement procedure rules.

Developing the capacity and capability of Members to be effective and ensuring that officers – including the statutory officers – also have the capability and capacity to deliver effectively.

(xiii) Making sure that Members and officers have the skills, knowledge, experience and resources they need to perform well in their roles.

• The Council provides training programmes tailored to Members and officers needs to update their knowledge on a regular basis. Annual training is mandatory for members of the Council’s regulatory committees. • The Council has recently introduced Member job descriptions to help better understand their roles and responsibilities. • The Council employs experienced statutory officers that have the skills, resources and support necessary to perform effectively in their roles, and that these roles are properly understood throughout the Council.

(xiv) Developing the capability of people with governance responsibilities and evaluating their performance, as individuals and as a group.

• The Council has an officer appraisal system that assesses the skills required by individual officers and retains a training budget to develop those skills to enable roles to be carried out effectively. A similar arrangement exists for elected Members where training is tailored to a national political skills framework and local priorities. • The Council develops skills on a continuing basis to improve performance, including the ability to scrutinise and challenge and to recognise when outside expert advice is needed.

(xv) Encouraging new talent for membership of the Council so that best use can be made of resources in balancing continuity and renewal.

• The Council has made the political parties aware of the need, and this is reflected by the significant changes to the Council’s membership over the last year.

5 143 Engaging with local people and other stakeholders to ensure robust public accountability.

(xvi) Exercising leadership through a robust scrutiny function which effectively engages local people and all local institutional stakeholders, including partnerships, and develops constructive accountability relationships.

• The Council, through its publications e.g. Corporate Plan, has made clear to all officers and the community the roles and functions it undertakes as a local authority. • The Overview & Scrutiny Committee and the Audit & Risk Scrutiny Committee both produce an annual evaluation report to full Council on the activity of the scrutiny function.

(xvii) Taking an active and planned approach to dialogue with and accountability to the public to ensure effective and appropriate service delivery whether directly by the Council, in partnership or by commissioning.

• The Council holds meetings in public unless there are appropriate reasons for confidentiality. • The Council coordinates activity with its diverse communities through a Community and Voluntary Sector Forum commissioned by the Council. This approach enables the Council to engage with all sections of the community effectively. This approach recognises the opportunities to work collaboratively with the sector in the new “mixed market place” of service delivery in which the Council now operates. • The Council has established a clear policy on the types of issues they will meaningfully consult or engage with the public and service users on including a feedback mechanism for those consulted. • The Council on an annual basis publishes reports giving information on the Council’s ambitions, strategy, plans and financial statements as well as information about its outcomes, achievements and the satisfaction of service users in the previous period. • In accordance with Government guidance, public meetings of the Council can be filmed and reported via social media. At the start of each meeting these rights are highlighted to encourage transparency and accountability for Council decisions. • Also, in accordance with the Local Authorities (Standing Orders)(England)(Amendment) Regulations 2014, the Council now records in the minutes of the proceedings of a “budget decision meeting” the names of the Members who voted or abstained.

(xviii) Making the best use of human resources by taking an active and planned approach to meet responsibility to officers.

• The Council has developed a clear policy on how officers and their representatives are consulted and involved in decision-making.

4. Governance Arrangements

4.1 There is a governance assurance framework through which the Council satisfies itself as to the effectiveness of its system of internal control. This takes as its starting point the Council’s principal statutory and organisational objectives as set out in the Council’s Corporate Plan. From this are identified the key risks to the achievement of the Council’s objectives as set out within the Council’s corporate, directorate and service risk registers.

4.2 The framework identifies the main sources of assurance on the controls in place to manage those risks, and it is the evaluation of those assurances that is the basis of this Annual Governance Statement.

4.3 The following documents establish these policies, aims and objectives at a strategic level: 6 144

• The Corporate Plan; • The Community Safety Partnership Strategy; • The Local Development Framework; • The Annual Budget and Performance Management Framework; • The Capital Strategy and Asset Management Plan; • The Financial Strategy; • The Treasury Management Strategy; • The Internal Audit Strategy; • The Risk Management Strategy; • The Housing Strategy; • The Human Resources Strategy; • The Corporate Equalities Scheme; • The CCTV Code of Practice; • The Anti-Fraud & Anti-Corruption Strategy and Policy.

4.4 These high level plans are further supported by Service Delivery Plans. The Constitution provides clear guidance on how the Council operates, how decisions are made and the procedures and protocols to ensure that decisions and activities are efficient, transparent and accountable to local citizens. Some of these processes are required by law, whilst others are determined by the Council for itself. All of these documents are available on the Council’s website at www.bassetlaw.gov.uk or can be inspected at the Council’s offices.

4.5 Bassetlaw’s corporate governance framework defines the roles and responsibilities of the full Council, Cabinet, Scrutiny and officer functions, and demonstrates how the Council meets defined standards of governance in relation to its policies, aims and objectives.

4.6 The Council acknowledges its responsibility to ensure that it operates an effective system of internal control to maintain and operate controls over its resources. This system of internal control can only provide reasonable (not absolute) assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are prevented or would be detected within a reasonable period. A key element of the Council’s internal control system is the work of the Audit & Risk Scrutiny Committee, undertaking the core functions as identified in CIPFA guidance.

4.7 Governance training has been provided to all key officers and Members, including induction training, and arrangements are in place for the ongoing continuation of that training.

4.8 The Council undertakes an annual review of the effectiveness of its corporate governance framework, including signed Assurance Statements from each of the Heads of Service and Directors.

5. Financial Management

5.1 Ensuring that an effective system of internal financial control is maintained and operated is the responsibility of the Section 151 Officer. The systems of internal financial control provide reasonable, but not absolute assurance that assets are safeguarded, that transactions are authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected within a timely period.

5.2 Internal financial control is based on a framework of management information that includes the Financial, Contract and Procurement Procedure Rules and administration procedures, adequate separation of duties, management supervision, and a system of delegation and accountability.

7 145 5.3 The Council has produced comprehensive procedure notes/manuals for all key financial systems, and these are regularly reviewed. The controls created by management are evaluated to ensure:

• Council objectives are being achieved; • The economic and efficient use of resources; • Compliance with policies, procedures, laws, rules and regulations; • The safeguarding of Council assets; • The integrity and reliability of information and data.

5.4 CIPFA issued in 2010 a Statement on “The Role of the Chief Financial Officer in Local Government”, and this covered five key areas. The Council can demonstrate how it conforms to these governance requirements as follows:

• The Section 151 Officer is a member of the Extended Corporate Management Team and plays a key role in helping it to develop and implement strategy to resource and deliver the Council’s strategic objectives sustainably and in the public interest. This environment is enhanced by the Chief Executive also being a CIPFA qualified member. • The Section 151 Officer is actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and there is alignment with the Council’s overall financial strategy. • The Section 151 Officer leads the promotion and delivery by the whole Council of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively. • The Section 151 Officer leads and directs the finance function, which is resourced to be fit for purpose. • The Section 151 Officer is professionally qualified and suitably experienced.

5.5 CIPFA issued in 2010 a Statement on “The Role of the Head of Internal Audit”, and this covered five key areas. The Council can demonstrate how it conforms to these governance requirements as follows:

• The Head of Internal Audit champions best practice in governance and management, objectively assessing the adequacy of governance and management of existing risks, commenting on responses to emerging risks and proposed developments. • The Head of Internal Audit gives an objective and evidence based opinion on all aspects of governance, risk management and internal control. • The Head of Internal Audit for Bassetlaw is a Director of Baker Tilly and has regular and open engagement across Bassetlaw District Council, particularly with the Leadership Team and with the Audit & Risk Scrutiny Committee. • The Head of Internal Audit leads and directs an internal audit service that is resourced to be fit for purpose. • The Head of Internal Audit is professionally qualified and suitably experienced.

6. Group Activities

6.1 The Council’s only Group activities relate to the ALMO, A1 Housing.

6.2 From an internal control perspective:

• A1 Housing utilise the Council’s corporate systems and are safeguarded by the controls therein.

8 146 • A1 Housing finance officers are included in some Council-wide finance working groups / meetings. • There are regular monitoring meetings between officers of A1 Housing and officers of the Council at a senior level. • A1 Housing has its own appointed external auditors, KPMG, which are also the Council’s own External Auditors. • Equally, A1 Housing is subject to examination by its internal auditors, Baker Tilly, which are also the Council’s own Internal Auditors. Overall A1 Housing’s internal audit assurances for 2014/15 were given as ‘green’ for governance arrangements, ‘green’ for risk management arrangements, and ‘amber’ for overall controls in place. • A1 Housing has its own risk management arrangements. A1’s internal auditors in 2014/15 found that the management of risk is given a high priority by management and detailed risk registers are in place which covers all areas of operations. These clearly identify the risks and their mitigating controls and monitoring arrangements. • A1 has its own Financial Regulations and Contract Procedure Rules, which were approved by the Council in 2012. • A1 has its own financial monitoring arrangements, with management accounts prepared on a monthly basis and reviewed by the A1 Board and/or A1’s Finance and Organisational Health Champions Group. • Service Level Agreements are in place that are regularly reviewed and monitored.

7. External Inspections and Work Programmes

7.1 The Review of Effectiveness is set out below in section 8, and demonstrates that the control environment is operating effectively. Further evidence to support this conclusion comes from:

• The Annual Review of the Effectiveness of Internal Audit for 2014/15, which concluded:

“The CIPFA Code of Practice Self-Assessment Compliance Checklist was completed in May 2013 and reviewed in May 2014 and May 2015. The overall results were good and it is considered that the internal audit system is effective. The S151 Officer therefore concludes that when reviewing the effectiveness of internal audit, the required standards of the Code have been met.”

• The Audit Manager’s Internal Audit Annual Report for 2014/15, which concluded:

“For the 12 months ended 31 March 2015, based on the work we have undertaken, our opinion below details the adequacy and effectiveness of your Council’s risk management, internal control, and governance arrangements:

 Governance – Adequate and effective governance arrangements are in place.  Risk Management and Assurance Framework – There remain areas where the Council needs to enhance its assurance framework.  Internal Controls – There remain areas where the Council needs to enhance its internal controls.

 Governance – We undertook a specific review of Corporate Governance during 2014/15, which focused on the Members Code of Conduct. The Members Code of Conduct was last updated in June 2012, to ensure that it reflected the requirements of the Localism Act 2011. This was subject to formal review and approval by the full Council before being adopted and incorporated into the Council’s Constitution. Documented procedures are in place for both making and dealing with complaints

9 147 concerning members’ behavior, and the Council has a Standards Sub-committee which can be convened to preside over serious breaches of the Code of Conduct. This review resulted in ‘substantial’ assurance with one low priority recommendation. We are also aware from our more general audit coverage, and from our attendance at Audit & Risk Scrutiny Committee meetings that the Council has satisfactory governance arrangements in place.

 Risk Management – We undertook a full review of the Council’s Risk Management arrangements in 2014/15. The Council has an established Risk Management Strategy and Framework in place, which is designed to reflect current best practice in Local Authority Risk Management. The risks identified are recorded at either; the corporate level, in a Corporate Risk Register, or at an operational level, in Service Risk Registers. This two tier approach ensures that the highest level strategic risks, those which present the greatest challenge to the Council; are identified, evaluated and closely monitored by the Audit & Risk Scrutiny Committee. Less significant risks, which are more operational than strategic in nature, are monitored by the Risk Management Group. Our review resulted in ‘substantial’ assurance with one medium priority recommendation. The medium recommendation related to the need to review service area risk registers at each meeting of the Risk Management Group. Management need to ensure that internal audit recommendations are fully implemented and it is noted that only adequate progress has been made to implement previous internal audit recommendations.

 Control - We undertook 37 internal audit reviews in 2014/15, which included three follow-up reviews. For the 34 reviews resulting in an assurance opinion, there were 20 reviews (59%), which resulted in substantial assurance level being given; 8 (23%), where reasonable assurance was given; 3 (9%), where some assurance was given and 3 (9%), where no assurance was given. The three reviews which resulted in no assurance related to Shopmobility, Dog Warden and Statutory Duties – Public Health Act. The recommendations made in these reviews have been accepted by management and it has been agreed with the Audit and Risk Scrutiny Committee and management that these areas are included in the 2015/16 Audit Plan. The previous internal audit on Markets resulted in no assurance being given. The Council undertook an interim follow-up of the recommendations that had been previously made by Internal Audit, the report for which was issued in September 2014 and presented to Audit and Risk Scrutiny Committee. In November 2014, we undertook a review of Markets as part of the 2014/15 plan. Our review resulted in ‘some’ assurance with four medium and five low priority recommendations being made. This review has shown that there have been some improvements made, however weaknesses still exist in the control environment.

• The external auditor (KPMG)’s Annual Governance Report 2013/14 concluded:

“On the basis of our work, having regard to the guidance on the specified criteria published by the Audit Commission in October 2013, we are satisfied that, in all significant respects, Bassetlaw District Council put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2014.”

7.2 It is important to recognise the results of the Internal Audit Annual Report where the Council has been issued with a green traffic light for Governance, and an amber traffic light for Risk Management and Control. This is a reduction over the assurance levels awarded in the previous year, where the Council received two green assurance levels. This is because the Council received three “red” and

10 148 three ‘Amber/Red’ assurance opinions during 2014/15, and the red reports on Shopmobility, Dog Warden and Statutory Duties – Public Health Act have impacted on the score. However, overall, only nine ‘High’ recommendations were made in total throughout the year, and these have now been addressed by the Managers concerned.

7.3 It is also important to note that the Internal Audit Strategy is a three year programme, and where previous audits gave a “Green” or a “Green/Amber” assurance, then some of the these are only repeated every three years. This will give rise to fluctuations in the overall assurance score for Control.

8. Review of Effectiveness

8.1 Bassetlaw District Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of the executive managers within the authority who have responsibility for the development and maintenance of the governance environment, the Head of Internal Audit’s annual report, and also by comments made by the external auditors and other review agencies and inspectorates.

8.2 The Council is committed to the maintenance of a system of internal control which:

• Demonstrates openness, accountability and integrity; • Monitors and reviews compliance with established policies, procedures, laws and regulations and effectiveness against agreed standards and targets; • Monitors and reviews the effectiveness of the operation of controls that have been put in place; • Identifies, profiles, controls and monitors all significant strategic and operational risks; • Ensures that the risk management and control process is monitored for compliance.

8.3 We have been advised on the implications of the result of the review of the effectiveness of the governance framework by the Corporate Governance Working Group and the Audit & Risk Scrutiny Committee, and that the arrangements continue to be regarded as fit for purpose in accordance with the governance framework. The areas already addressed and those to be specifically addressed with new actions planned are outlined in section 9 below.

9. Significant Governance Issues

9.1 During the 2014/15 financial year the following issues were identified via the Council’s risk management, governance, internal audit and other internal control processes as being relevant to the preparation of the Annual Governance Statement. They are not highlighted as significant control or risk concerns, but included to highlight the Council’s awareness of emerging issues through its proactive and holistic approach to governance:

• Officer Scheme of Delegation – The Council has had a number of changes within its Corporate Management Team, and the officer scheme of delegation needs reviewing to reflect those changes. Action: Corporate Management Team – September 2015.

• Contract Procedure Rules – The procurement regulations have recently changed and there is a need to update the Council’s own contract procedure rules to reflect the new requirements. Action: Head of Finance & Property – October 2015.

• Prevention of Fraud and Compliance Training – A full training programme for officers was last conducted in 2012, and refresher training will be required following the approval of the revised

11 149 Anti-Fraud & Anti-Corruption Policy and Strategy during summer 2015. Action: Corporate Governance Working Group – March 2016.

• Member Training – There are a number of new Members following the change to all-out elections, and it is important that appropriate training is delivered to both the new and existing Members who will sit on the various committees and working groups of the Council. Training will also include declarations in the gifts and hospitality register. Action: Corporate Governance Working Group – June 2015.

• Health and Safety Risk Assessments – The Council’s Corporate Risk Register holds a strategic risk concerning the training of service managers in all aspects of health and safety. This includes how to undertake a risk assessment and manage this process through the electronic SHE system. Action: Interim Director of Regeneration and Neighbourhoods – September 2015.

• Local Government Transparency Code – The new Code was published in February 2015 and there is a need to ensure that the Council is publishing all of the data that is required under the Code. Action: Corporate Governance Working Group – June 2015.

9.2 We propose over the coming year to take steps to address the above matters to further enhance our governance arrangements. We are satisfied that these steps will address the need for improvements that were identified in our review of effectiveness and will monitor their implementation and operation as part of our next annual review.

Neil Taylor ……………………………………….. Chief Executive Date: 25th June 2015

Simon Greaves ……………………………………….. Council Leader Date: 25th June 2015

12 150 Agenda Item No. 8(f)

R E F E R R A L

From

AUDIT AND RISK SCRUTINY COMMITTEE HELD ON 11TH JUNE 2015

COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Linda Dore, Electoral and Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 9(f) Local Code of Corporate Governance 2014/15.

RESOLVED that the Local Code of Corporate Governance for 2015/16 be recommended to Council for approval and the procedures as set out in the report be implemented.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Director of Corporate Resources Head of Finance and Property Chief Executive Committee Administrator

151

152

Agenda Item No. 6(g) BASSETLAW DISTRICT COUNCIL

AUDIT & RISK SCRUTINY COMMITTEE

11th JUNE 2015

REPORT OF THE MONITORING OFFICER

LOCAL CODE OF CORPORATE GOVERNANCE 2015/16

Cabinet Member: Policy Contact: Ros Theakstone Ext: 3378

1. Public Interest Test

1.1 The author of this report, Ros Theakstone, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To consider and recommend to Council approval of the updated Local Code of Corporate Governance.

3. Background and discussion

3.1 Corporate governance is the system by which organisations are directed and controlled and it became an important concept following the Cadbury Committee’s report in 1992 on financial aspects of corporate governance. The Nolan Committee on Standards in Public Life considered the allegations of lack of accountability, noting that there was no comprehensive framework of principles for local authorities to adhere to. In 2001 The Chartered Institute of Public Finance and Accountability [CIPFA] and the Society of Local Authority Chief Executives [SOLACE] in conjunction with other public agencies published a Guidance Note and Framework for “Corporate Governance in Local Government: A Keystone for Community Governance”. This was updated in 2007 by the publication “Delivering good governance in local government”. All local authorities have now been recommended to comply with best practice by drawing up a Local Code of Corporate Governance, based on CIPFA/SOLACE Guidance.

3.2 Those recommendations have been incorporated within a Code first approved by full Council in June 2008, with subsequent updates being produced annually since that time. The latest updated Code is thus attached to this report as Appendix 1. The document sets out the Council’s process for monitoring and maintenance of the Code and provides the framework for the Council to achieve its aims and objectives.

3.3 The Code is a ‘living document’ in that it must be periodically reviewed and amended to ensure that it satisfies the changing financial and corporate environment.

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Responsibility for review of the Code will ultimately be the responsibility of Council, acting upon the recommendations of the Audit & Risk Scrutiny Committee, having taken account of monthly reviews carried out by Officers under the aegis of the Corporate Governance Working Group. Council will be expected to take careful note of such recommendations.

3.4 A similar report was brought to this Committee last year for 2014/15. The Local Code of Corporate Governance is a forward looking document that sets outs what the Council will do in the coming year. At the end of the year, an Annual Governance Statement is prepared that outlines what the Council has actually achieved during the year. A draft of the Annual Governance Statement 2014/15 is on this Committee’s agenda, and will accompany the Statement of Accounts 2014/15 report to Council on 25th June 2015. The Statement is based on core principles and the gathering of evidence to support those principles with actions devised to ensure that the Council satisfactorily complies with the Code’s aspirations.

3.5 The intention is that the Council is able to demonstrate that its practices and procedures fully comply with the CIPFA/SOLACE objectives and that the Local Code is fully observed. Compliance and monitoring of the Code is demonstrated through the ‘vowel’ test recommended by CIPFA/SOLACE Guidance, namely:

• Accountability • Effectiveness • Integrity • Openness and Inclusivity • Up to date

3.6 The Council will receive an annual report from the Chief Executive and Leader: the “Annual Governance Statement”, which defines the position on whether the corporate governance arrangements are adequate and operating effectively.

4. Implications

a) For service users

None from this report

b) Strategic and Policy

None from this report

c) Financial – Ref: 16/107

This Local Code of Corporate Governance needs to be approved so that an Annual Governance Statement can be produced at the end of the financial year 2015/16.

d) Human Resources

None from this report

e) Legal – Ref: 162/06/15

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The Council must maintain control frameworks to enable identification of any areas of the Council’s activities where there are significant weaknesses in the financial controls, the governance arrangements or the management of risk. Recommended guideline requirements govern the considerations and these have been followed as outlined in the body of this report.

f) Community Safety, Equalities, Environmental

None arising.

g) Key Decision

None

5. Options, Risks and Reasons for Recommendations

The Council has an obligation to adopt best practice in respect of corporate governance.

6. Recommendations

The Audit & Risk Scrutiny Committee recommends that Council approves the updated Local Code of Corporate Governance for 2015/16, and to implement the procedures as set out in the report.

Background Papers Location

Legal Services File Ref: RT/MO

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156 BASSETLAW DISTRICT COUNCIL LOCAL CODE OF CORPORATE GOVERNANCE

Introduction

1. Governance is about how the Council ensures it is doing the right things, in the right way, for the right people in a timely, inclusive, open, honest and accountable manner. It comprises systems, processes, cultures and values by which the Council is directed and controlled and through which it accounts to, engages with and, where appropriate, leads the community.

2. CIPFA1/SOLACE2 have together produced a corporate governance framework. It is an integrated system that brings together an underlying set of legislative requirements, governance principles and management processes. The governance framework produced by CIPFA/SOLACE remains a discretionary code and is offered to local authorities as good practice.

3. This Local Code of Corporate Governance sets out the framework for governance at Bassetlaw District Council and is based on the CIPFA/SOLACE framework.

Policy Statement

4. In conducting its business, Bassetlaw District Council is fully committed to the key principles of good governance as established by the Nolan Committee on Standards in Public Life.

These key principles are:-

• Focussing on the organisation’s purpose and on outcomes for citizens and service users

• Promoting values for the whole organization and demonstrating good governance through behavior

• Performing effectively in clearly defined functions and roles

• Taking informed, transparent decisions and managing risk

• Developing the capacity and capability of the governing body to be effective

• Engaging stakeholders and making accountability real

5. The CIPFA/SOLACE framework for good governance adapts these core principles for the local authority context. As the CIPFA/SOLACE framework represents good practice, this Local Code of Corporate Governance is underpinned by the six core principles.

1 Chartered Institute of Public Finance and Accountancy 2 Society of Local Authority Chief Executives

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The Six Core Principles of Good Governance

6. The six core principles of good governance as recognised by the CIPFA/SOLACE framework that have been adopted by the Council are as follows:- Cor CORE PRINCIPLES OF GOOD GOVERNANCE 1 Focusing on the purpose of the authority and on outcomes for the community including citizens and service users and creating and implementing a vision for the local area 2 Members and officers working together to achieve a common purpose with clearly defined functions and roles 3 Promoting the values of the authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour 4 Taking informed and transparent decisions that are subject to effective scrutiny and managing risk 5 Developing the capacity and capability of members to be effective and ensuring that officers – including statutory officers – also have the capability and capacity to deliver effectively 6 Engaging with local people and other stakeholders to ensure robust local public accountability

Good Governance Applying the Principles of Good Governance

7. To achieve good governance, the Council will seek to apply each of the six core principles, along with their supporting principles. Details of how this will be achieved is provided later at section 13 of this report.

8. The Council will undertake a regular review of its governance arrangements which will result in a clear action plan indicating how the Council will address any gaps in the arrangements, who will deal with them and how these will be dealt with.

Review of the Council’s Corporate Governance Arrangements

9. The Council takes its corporate governance arrangements seriously and as a result has put in place a rigorous process of reviewing the arrangements on a regular basis.

The process of review is as follows:-

• Corporate Governance Working Group

The Corporate Governance Working Group comprises the Monitoring Officer, the Section 151 Officer, and the Council Solicitor. The Group meets monthly.

The purpose of the Corporate Governance Working Group is inter alia to review the Council’s governance and risk management arrangements and identify a work programme for ensuring these arrangements remain robust and up-to-date. The Group reports directly to the Audit & Risk Scrutiny Committee.

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• The Audit & Risk Scrutiny Committee

The Audit & Risk Scrutiny Committee has overall responsibility for the Council’s governance and risk management arrangements and will be the main Member review of the Council’s governance and risk management arrangements. The Corporate Governance Working Group refers reports arising from its work programme to the Committee which meets quarterly. The Committee will make any recommendations to the Council on the governance and risk management arrangements.

• The Council

The Council has a responsibility to act upon the recommendations made by the Audit & Risk Scrutiny Committee in relation to the Council’s policy on corporate governance and risk management. This will be subject to any such recommendations being made by the Committee but will, at the very least, occur at least once a year when the policies on corporate governance and risk management are reviewed.

The Annual Governance Statement

10. In England, the preparation and publication of an Annual Governance Statement in accordance with the CIPFA/SOLACE framework is necessary to meet the statutory requirement set out in Regulation 4(3) of the Accounts & Audit (England) Regulations 2011 for authorities to prepare a statement on internal control in accordance with ‘proper practices’.

11. To comply with this requirement, the Council will produce an Annual Governance Statement in accordance with guidance provided by CIPFA. The process that the Council will apply in gathering the evidence necessary to produce the Annual Governance Statement is illustrated below:

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12. It is envisaged that approval of the Annual Governance Statement will be given by the Audit & Risk Scrutiny Committee during June of each year, and the Statement will accompany the Council’s Annual Statement of Accounts. implementing a vision for the local area

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Applying the Principles of Good Governance

13. To achieve and maintain good governance, the Council will seek to apply each of the six core principles above, along with their supporting principles, in the following way, representing the recommended best practice:

Focusing on the purpose of the Council and on outcomes for the community including citizens and service users and creating and implementing a vision for the local area

Supporting Principles The Council will:- Exercising strategic leadership by • make a clear statement of the Council’s purpose and vision and use it as a basis for corporate and developing and clearly communicating service planning. the Council’s purpose and vision and • publish reports on a timely basis to communicate the Council’s activities and achievements, its its intended outcome for citizens and financial position and performance. service users. Ensuring that users receive a high • decide how the quality of service for users is to be measured and ensure that the information quality of service, whether directly or in needed to review service quality effectively and regularly is available. partnership or by commissioning. • focus on 8 areas of best practice principles when working in partnership e.g. o Defined objectives; o Robust financial management/financial regulations; o Proper constitutional framework/legal framework; o Defined codes of conduct; o Commitment to Equality and Diversity; o Robust performance management and monitoring arrangements; o Clear accountability reporting/scrutiny arrangements; o Embedded risk management. • put in place effective arrangements to deal with a failure in service delivery. Ensuring that the Council makes best • decide how value for money is to be measured and ensure that it has the information needed to use of its resources and that taxpayers review value for money and performance effectively. and service users receive excellent value for money.

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Members and officers working together to achieve a common purpose with clearly defined functions and roles

Supporting Principles The Council will:- Ensuring effective leadership • set out a clear statement of the respective roles and responsibilities of the Council’s Cabinet and the throughout the Council by being clear Members individually through job descriptions and as referenvced within the Constitution. about Cabinet and non-Cabinet • set out a clear statement of the respective roles and responsibilities of the Council’s other functions and of the roles and committees and Members and senior officers as referenced in the Constitution. responsibilities of the scrutiny function. • ensure that effective mechanisms exist to monitor service delivery. • ensure that effective management arrangements are in place at the top of the organisation. Ensuring that a constructive working • determine and maintain under periodic review a Scheme of Delegation and reserve powers within relationship exists between elected the Constitution including a formal schedule of those matters specifically reserved for collective Members and officers and that the decision of the Council, taking account of relevant legislation, and ensure that it is monitored and responsibilities of Members and officers updated when required. are carried out to a high standard. • determine that the Chief Executive is responsible and accountable to the Council for all aspects of operational management. • develop processes to ensure effective communication between Members and officers in their respective roles. • develop processes to ensure that the Leader and Chief Executive negotiate their respective roles early in their relationship and that a shared understanding of roles and objectives is maintained. • set out the terms and conditions for remuneration of Members and officers and an effective structure for managing the process including an effective remuneration panel. • make a senior officer (the Section 151 Officer) responsible to the Council for ensuring that appropriate advice is given on all financial matters, for keeping proper records and accounts and for maintaining an effective system of internal financial control. • make a senior officer (the Monitoring Officer) responsible to the Council for ensuring that agreed procedures are followed and that all applicable statutes and regulations are complied with.

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Members and officers working together to achieve a common purpose with clearly defined functions and roles

Supporting Principles The Council will:- Ensuring relationships between the • Ensure that effective mechanisms exist to monitor service delivery. Council, its partners and the public are • Ensure that its vision, strategic plans, priorities and targets are developed through robust clear so that each knows what to mechanisms, and in consultation with the local community and other key stakeholders, and that expect of the other. they are clearly articulated and disseminated. • when working in partnership will focus on the eight areas of best practise principles .

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Promoting the values of the Council and demonstrating the values of good governance through upholding the highest standards of conduct and behaviour

Supporting Principles The Council will:- Ensuring Council Members and officers • ensure that the Council’s leadership sets a tone for the organisation by creating a climate of exercise leadership by behaving in openness, support and respect through training, communication and observing Rules of Procedure. ways that uphold high standards of • ensure that standards of conduct and personal behaviour expected of Members and officers, of conduct and exemplify effective work between Members and officers and between the Council, its partners and the community are governance. defined and communicated through statutory and other codes of conduct. • develop and adopt formal codes of conduct defining standards of personal behaviour. • put in place arrangements to ensure that Members and officers of the Council are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders, and put in place appropriate processes to ensure that they continue to operate in practice. Ensuring that organisational values are • develop and maintain shared values including leadership values both for the Council and its officers put into practice and are effective. reflecting public expectations about the conduct and behaviour of individuals and groups within and associated with the Council. • put in place arrangements to ensure that procedures and operations are designed in conformity with appropriate ethical standards, and to monitor their continuing compliance in practice. • use the Council’s shared values to act as a guide for decision making and as a basis for developing positive and trusting relationships within the Council. • In pursuing partnerships, agree a set of values against which decision making and actions can be judged. Such values must be demonstrated by partners’ behaviour both individually and collectively.

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Taking informed and transparent decisions that are subject to effective scrutiny and managing risk

Supporting Principles The Council will:- Exercising leadership by being rigorous • develop and maintain an effective scrutiny function which encourages constructive challenge and and transparent about how decisions enhances the Council’s performance overall and that of any organisation for which it is responsible. are taken and listening to and acting • develop and maintain open and effective mechanisms for documenting evidence for decisions and upon the outcome of constructive recording the criteria, rationale and considerations on which decisions are based. scrutiny. • put in place arrangements so that conflicts of interest on behalf of Members and officers can be avoided, and put in place appropriate processes to ensure that they continue to operate in practice. • put in place arrangements for whistle-blowing to which officers and all those contracting with the Council have access. • put in place effective transparent and accessible arrangements for dealing with complaints. • develop and maintain an effective Overview & Scrutiny Committee that is independent of the Cabinet. Having good quality information, advice • ensure that those making decisions are provided with information that is fit for the purpose – and support to ensure that services are relevant, timely and gives clear explanations of technical issues and their implications. delivered effectively and are what the • ensure that professional advice on legal and financial matters is available and recorded well in community wants/needs. advance of decision making, and used appropriately when decisions have significant legal or financial implications.

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Taking informed and transparent decisions that are subject to effective scrutiny and managing risk

Supporting Principles The Council will:- Ensuring that an effective risk • ensure that risk management is embedded into the culture of the Council, with Members and management system is in place. managers at all levels recognising that risk management is part of their job. • ensure that effective arrangements for whistle-blowing are in place to which officers and all those contracting with or appointed by the Council have access. Recognising the limits of lawful action • actively recognise the limits of lawful activity placed on them by the ultra vires doctrine but also and observing both the specific strive to utilise their powers to the full benefit of their communities. requirements of legislation and the • observe all specific legislative requirements placed upon them, as well as the requirements of general responsibilities placed on local general law, and in particular to integrate the key principles of administrative law – rationality, authorities by public law, but also legality and natural justice into their procedures and decision making. accepting responsibility to use their • when working in partnership, put in place protocols for working together which include a shared legal powers to the full benefit of the understanding of respective roles and responsibilities of each organisation. citizens and communities in its area. • when working in partnership, ensure that there are robust procedures for scrutinising decisions and behaviour and that these decisions and behaviour are compliant with any local authority rules/codes or comply with any rules/codes developed for the purpose of the partnership. • when working in partnership, ensure that partnership papers are easily accessible and meetings are held in public unless there are good reasons for confidentiality. The partners must ensure that: a. the partnership receives good quality advice and support and information about the views of citizens and stakeholders, so that robust and well-reasoned decisions are made. b. risk is managed at a corporate and operational level.

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Developing the capacity and capability of Members to be effective and ensuring that Officers – including the statutory officers – also have the capability and capacity to deliver effectively

Supporting Principles The Council will:- Making sure that Members and officers • provide training programmes tailored to individual needs for Members and officers to update their have the skills, knowledge, experience knowledge on a regular basis. and resources they need to perform • ensure that the statutory officers have the skills, resources and support necessary to perform well in their roles. effectively in their roles and that these roles are properly understood throughout the Council. Developing the capability of people • assess the skills required by Members and officers and make a commitment to develop those skills with governance responsibilities and to enable roles to be carried out effectively. evaluating their performance as • develop skills on a continuing basis to improve performance, including the ability to scrutinise and individuals and as a group. challenge and to recognise when outside expert advice is needed. • ensure that effective arrangements are in place through the Overview & Scrutiny Committee for reviewing the performance of the Cabinet as a whole and of individual Members, and agreeing an action plan which might, for example, aim to address any training or development needs. Encouraging new talent for • ensure that effective arrangements are in place to encourage individuals from all sections of the membership of the Council so that best community to engage with, contribute to, and participate in, the work of the Council. use can be made of resources in • ensure that career structures are in place for Members and officers to encourage participation and balancing continuity and renewal. development.

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Engaging with local people and other stakeholders to ensure robust public accountability

Supporting Principles The Council will:- Exercising leadership through a robust • make clear to themselves, all officers and the community, to whom they are accountable and for scrutiny function which effectively what. engages local people and all local • consider those institutional stakeholders to whom they are accountable and assess the institutional stakeholders, including effectiveness of the relationships and any changes required. partnerships, and develops • produce an annual report on the activity of the scrutiny function. constructive accountability • Conduct an annual evaluation on the Council’s scrutiny function. relationships. Taking an active and planned approach • establish clear channels of communication with all sections of the community and other to dialogue with and accountability to stakeholders, and put in place monitoring arrangements to ensure that they operate effectively. the public to ensure effective and • hold meetings in public unless there are good reasons for confidentiality. appropriate service delivery whether • put in place arrangements to enable the Council to engage with all sections of the community directly by the Council, in partnership effectively. These arrangements should recognise that different sections of the community have or by commissioning. different priorities and establish explicit processes for dealing with these competing demands. • establish a clear policy on the types of issues they will meaningfully consult or engage with the public and service users, including a feedback mechanism for those consulted. • on an annual basis, publish reports giving information on the Council’s vision, strategy, plans and financial statements as well as information about its outcomes, achievements and the satisfaction of service users in the previous period. • ensure that the Council as a whole is open and accessible to the community, service users and its officers and ensure that it has made a commitment to openness and transparency in all its dealings, including partnerships subject only to the need to preserve confidentiality in those specific circumstances where it is proper and appropriate to do so. • put in place effective systems to protect the rights of officers. Ensure that policies for whistleblowing are accessible to officers and those contracting with the Council, and arrangements for the support of whistle-blowers are in place.

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Engaging with local people and other stakeholders to ensure robust public accountability

Supporting Principles The Council will:- • when working in partnership, ensure that engagement and consultation undertaken by the partnership is planned with regard to methodology, target audience and required outcomes. Existing mechanisms and groups should be used where appropriate. In the work cycle of the partnership it must be clear and demonstrable to the public what has happened to any feedback and what has changed as a result. Making the best use of human • develop and maintain a clear policy on how officers and their representatives are consulted and resources by taking an active and involved in decision-making. planned approach to meet responsibility to officers.

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170 Agenda Item No. 8(g)

R E F E R R A L

From

AUDIT AND RISK SCRUTINY COMMITTEE HELD ON 11TH JUNE 2015

COUNCIL ON 25TH JUNE 2015

Public Interest Test

The author of this referral, Linda Dore, Electoral and Democratic Services Officer, has determined that it is considered to be of a non-confidential nature.

MINUTE NO. 9(g) Anti-Fraud and Anti-Corruption Strategy and Policy.

RESOLVED that the report be noted and the new Anti-Fraud and Anti-Corruption Strategy and Policy be recommended to full Council on 25th June for approval.

Referred Reports will be submitted in their original form unless the Responsible Officer indicates otherwise.

Copies to: Director of Corporate Resources Head of Finance and Property Chief Executive Committee Administrator

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Agenda Item No.7(h) BASSETLAW DISTRICT COUNCIL

AUDIT & RISK SCRUTINY COMMITTEE

11 JUNE 2015

REPORT OF THE DIRECTOR OF RESOURCES

ANTI-FRAUD & ANTI-CORRUPTION STRATEGY AND POLICY

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

1.1 The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To present to the Audit & Risk Scrutiny Committee the updated Anti-Fraud & Anti- Corruption Strategy and Policy.

3. Background and Discussion

3.1 In an economic downturn, research suggests that fraud is likely to increase and organisations need to ensure that they are robust against such a risk. With available budgets under pressure, attention needs to be focussed on protecting finances and assets, as every pound lost to fraud, at the very least, is a pound not spent on achieving the Council’s aims and objectives.

3.2 Any investigation, whether it is disciplinary, civil, criminal or regulatory, has to be tackled in a way that is the most efficient and cost-effective for the organisation. However experience has shown that, rather than focusing on tackling the problem after it has occurred, every effort should be focussed on the deterrence and prevention of fraud.

3.3 This Anti-Fraud & Anti-Corruption Strategy and Policy provides a framework for the Council to promote high standards of conduct, whilst at the same time providing a more stringent approach to the prevention, detection, and response to corporate fraud within the Council.

3.4 This Anti-Fraud & Anti-Corruption Strategy and Policy provides the high level strategic overview of the measures put in place to combat fraud. Underpinning this Strategy are a number of Plans and Policies that need to be cascaded down throughout the Council to create an anti-fraud culture observed and followed by all officers, Members and key partners alike. These are:

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• The Fraud Response Plan; • The Prosecution Policy; • The Counter Fraud Sanction Policy; • The Anti-Money Laundering Policy; • The Anti-Bribery Policy; • The Whistle-blowing Policy; • The Gifts and Hospitality Protocol.

These are all attached as Appendices to the Strategy document.

4. Implications

a) For service users

Establishing a clear and comprehensive Anti-Fraud & Anti-Corruption Strategy and Policy will enhance the deterrence and prevention of fraud within the delivery of the Council activities.

b) Strategic & Policy

As contained within the report and Appendices.

c) Financial – Ref: 16/370

There are no direct financial implications from the implementation of this Strategy and Policy.

d) Legal - Ref: 159/06/15

As contained within the report and Appendices.

e) Human Resources

As contained within the report. A Training programme on anti-fraud and anti- corruption will be rolled out to all staff and Members in due course.

f) Community Safety, Equal Opportunity, Environmental

As contained within the report and Appendices. An Equality Impact Assessment has been undertaken which has not highlighted any concerns.

g) Whether this is a key decision, and if so the reference number

This is not a key decision.

5. Options, Risks and Reasons for Recommendations

5.1 The Existing Anti-Fraud & Anti-Corruption Strategy and Policy was written in 2011 and requires updating to a number of areas. This was a substantial change to previous practices and re-launched the Council’s approach to combating fraud and corruption. Option one is to retain the existing document. This is clearly not a

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favoured option in terms of the forward development of the Council and the safeguarding of its finances and assets.

5.2 Option two is for Members to accept and approve the updated Anti-Fraud & Anti- Corruption Strategy and Policy.

6. Recommendations

6.1 That the Audit & Risk Scrutiny Committee notes the new Anti-Fraud & Anti-Corruption Strategy and Policy, and recommends the report to the full Council meeting for approval on 25th June 2015.

Background Papers Location

Existing Policy Head of Finance & Property office

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176

ANTI-FRAUD & ANTI-CORRUPTION STRATEGY AND POLICY

Policy Owner: Mike Hill Date of Adoption: Full Council 25 June 2015 Next Review: June 2018 Version Number: 3

Page 1 of 61 177 Contents

INTRODUCTION What is Theft? 3 What is Fraud? 3 What is Corruption? 4 What is Financial malpractice/Irregularity? 4 ANTI-FRAUD AND ANTI-CORRUPTION POLICY Introduction 5 The Fraud Threats 5 Members 5 Officers 5 Contractors and Partners 6 The Public 6 Identifying the Specific Threats 7 THE COUNCIL’S APPROACH Introduction 8 The Anti-Fraud Culture 8 Deterrence 9 Prevention 9 Internal Control Systems 10 Employee Recruitment and Conduct 11 Members Roles and Conduct 11 Joint Working to Prevent and Combat Fraud 11 Detection 12 Investigation 12 Sanction 14 Disciplinary Action 14 Criminal Sanctions 14 Redress 15 REVIEW AND REPORTING Updates 16 APPENDIX 1 – THE CORPORATE FRAMEWORK 17 APPENDIX 2 – ROLES AND RESPONSIBILITIES 18 APPENDIX 3 – FRAUD RESPONSE PLAN 21 APPENDIX 4 – PROSECUTION POLICY 25 APPENDIX 5 – COUNTER FRAUD SANTION POLICY 28 APPENDIX 6 – ANTI-MONEY LAUNDERING POLICY 34 APPENDIX 7 – ANTI-BRIBERY POLICY 39 APPENDIX 8 – WHISTLEBLOWING POLICY 45 APPENDIX 9 – GIFTS AND HOSPITALITY PROTOCOL 54

Page 2 of 61 178 INTRODUCTION

1. Introduction This document sets out the Council’s Strategy in relation to fraud and corruption. It has the full support of the Council’s Elected Members and the Corporate Management Team.

Bassetlaw District Council employs approximately 425 staff and has a revenue and capital budget of over £85M. As with other large organisations, the size and nature of our services puts us at risk to loss due to fraud and corruption both from within the Council and outside it.

The Council is committed to the eradication of fraud, corruption and misappropriation and to the promotion of high standards of conduct. Our desire is to be a model of public probity, affording maximum protection to the funds we administer. To deliver the Council’s corporate Strategy we need to maximise the financial resources available to us. In order to do this we must reduce fraud and misappropriation to an absolute minimum.

Furthermore, the Council recognises its responsibility to protect public funds and we will therefore, endeavour to implement secure systems and high standards of conduct.

We will take the strongest possible action against those who seek to defraud the Council. This includes our own Members, Officers, contracting partners and external individuals and organisations.

2. What is Theft? Theft is stealing any property belonging to the Council or which has been entrusted to it (i.e. client funds), including cash, equipment, vehicles, data.

Theft does not necessarily require fraud to be committed. Theft can also include the stealing of property belonging to our staff or Members whilst on Council premises.

A person is guilty of theft under the Theft Act 1968 if:

• Section 1 – ‘they dishonestly appropriate property belonging to another with the intent of permanently depriving the other of it’; or • Section 24A - ‘they dishonestly retain a wrongful credit’ e.g. where they do not report and repay an overpayment of salary or advance.

3. What is Fraud? The Fraud Act 2006 introduced the first legal definitions of fraud. These legal definitions are used for the criminal prosecution of fraud offences.

For the purposes of this Strategy, fraud is considered to be any action taken by an individual, group or organisation which is designed to facilitate dishonest gain at the expense of, (or loss to) the Council, the residents of Bassetlaw or the wider national community.

Page 3 of 61 179 Offences can include:

• Fraud by false representation – for example by knowingly submitting overtime claims for work that has not been undertaken; • Fraud by failure to declare – for example failing to declare previous convictions when required to secure employment with BDC; • Fraud by abuse of position – for example by awarding a contract that cannot be evidenced as being in the best interests of BDC.

4. What is Corruption? Corruption is the offering, giving, soliciting or acceptance of inducements designed to influence official action or decision making. These inducements can take many forms including cash, holidays, event tickets, or meals.

5. What is Financial Malpractice/Irregularity? This term is used to describe any actions which represent a deliberate serious breach of accounting principles, Financial Procedure Rules, Contract Procedure Rules, or any of the Council’s financial governance arrangements. They do not have to result in personal gain. They will include situations where undisclosed conflicts of interest result in some form of benefit.

Page 4 of 61 180 ANTI-FRAUD AND ANTI-CORRUPTION POLICY

6. Introduction The Council is responsible for the proper administration of its finances. This not only includes direct income and expenditure but also monies that we administer on behalf of the Government, on behalf of our clients, and that for which we are the responsible accountable body. Anyone committing fraud, both inside and outside the organisation, attack all of these sources of income and expenditure and our valuable assets.

This Policy encompasses any action taken by an individual, group or organisation which is designed to facilitate dishonest gain (or a loss) at the expense of the Council, the residents of Bassetlaw, or the wider national community. It, therefore, includes theft, fraud, corruption and any financial irregularity or malpractice.

The Council will be vigilant in all of these areas and will apply the same principles of deterrence, prevention, detection, investigation and resolution across all its services. The Council will not be afraid to tackle difficult or uncomfortable cases and will take a robust line and seek the maximum appropriate sanction in all areas of operation.

7. The Fraud Threats The key threats of fraudulent and corrupt activity occurring within the Council are from:

• Members; • Officers; • Contractors and Partners; • Public.

8. Members Our Elected Members are expected to act in a manner which sets an example to the community whom they represent and to the Officers of the Council who implement their Policy objectives. They are expected to conduct themselves in ways which are beyond reproach, above suspicion and fully accountable. Members should be particularly careful to ensure that all relevant circumstances are properly declared in any and all of their financial dealings. No financial malpractice will be tolerated and where evidence indicates such malpractice has taken place, a report will be made to the relevant body.

9. Officers It is recognised that the vast majority of Officers are hardworking and conscientious who conduct themselves in ways which are beyond reproach, above suspicion and fully accountable. However, theft, fraud, corruption and financial malpractice/irregularity will not be tolerated and where evidence indicates such activity has taken place, action will be taken under the Council’s Disciplinary Policy and Procedure that may lead to dismissal. Criminal and/or Civil proceedings will also be pursued if appropriate.

There is a special responsibility on our Corporate Management to lead their Officers by example. The Council expects these Officers to set the standard by their own

Page 5 of 61 181 behaviour. This includes placing the Council’s interests above their own and the whole-hearted promotion of the Ten Principles of Public Life as laid down by the Committee on Standards in Public Life.

It is the responsibility of Directors and Managers to be aware of the appropriate financial and other anti-fraud regulations and to be responsible for ensuring conformance to them by the Officers for whom they are responsible.

10. Contractors and Partners The increase in partnership arrangements to deliver services places an additional burden on the Council to ensure that public money invested in these services is appropriately used.

Those organisations undertaking work on behalf of the Council are expected to maintain strong anti-fraud principles. We are happy to work with such organisations and to provide advice on anti-fraud measures. Through contract documentation we will ensure that our service providers and partners take the issue of fraud seriously.

The Council has adopted a Partnership Toolkit that, amongst other things, sets out the standards of conduct expected of the Council’s partners. This includes the promotion of the Ten Principles of Public Life.

In an era of increasing emphasis on partnership working, it is vitally important that our key partners, led by the Bassetlaw Community Partnership, advocate and promote the principles of good governance, accountability for decisions, effective risk management and the appropriate stewardship of public funds.

11. The Public Members of the public receive financial assistance and benefits from the Council through a variety of sources. These include:

• Housing Benefit and Council Tax Reduction; • Temporary accommodation; • Renovation and other housing related grants; • Parking concessions; • Business refurbishment schemes and grants; • Voluntary sector grants. • Discretionary Housing Payments

All of these areas have been the subject of attack by people committing fraud. This means less money is available for those in genuine need. Our fraud effort will be balanced against our desire to ensure genuine claimants receive their full entitlement.

Because of the scale of expenditure, Housing Benefit fraud receives significant attention from Central Government. A number of initiatives have been implemented which are fully supported by the Council. These include:

• National Fraud Initiative; • Housing Benefit Matching Service; • Joint Working. • Fraud and Error Reduction Incentive Scheme ( FERIS) Page 6 of 61 182

The Council will participate in these schemes to the fullest extent.

Our seven key themes of Anti-Fraud Culture, Deterrence, Prevention, Detection, Investigation, Sanction and Redress run through all of the fraud threats as set out below.

12. Identifying the Specific Threats Each Service will be challenged to identify the risk of fraud and/or corruption occurring in their area. Where risks are identified, they will be responsible for ensuring they are placed on the Risk Register and that actions are undertaken to address those risks.

Internal Audit, through its programme of work will test the control environment within Services and compile reports on its findings, highlighting any weaknesses in controls. Services will be required to act upon those recommendations and Internal Audit will monitor progress.

The Fraud Investigation Team and Corporate Investigation Team/Internal Audit will highlight any system weaknesses that are identified as a result of an investigation. These will be addressed through an agreed Action Plan. The relevant Service Manager is responsible for implementing the Action Plan and Internal Audit will monitor implementation. From 1st November 2015, the Fraud Investigation Team will transfer to the Single Fraud Investigation Service operated by the Department for Work & Pensions with regard to Housing Benefit fraud. Council Tax and other fraud activity will still be undertaken by the Council’s Corporate Investigation Officer.

The Council will develop tools to identify and quantify the amount of fraud to inform decision making on the resourcing of anti-fraud activity and how and where that resource is deployed.

Page 7 of 61 183 THE COUNCIL’S APPROACH

13. Introduction The corporate framework, which underpins the operation of the Council, has a number of facets that exist to fortify the Council against fraud and corruption. The Anti-Fraud and Anti-Corruption Strategy underpins this framework.

Our Strategy to combat fraud, corruption and misappropriation is built upon seven key themes:

• Anti-fraud Culture; • Deterrence; • Prevention; • Detection; • Investigation; • Sanction, and; • Redress.

The themes exist within the overall context of an anti-fraud culture promoted by the Council through its leadership, governance arrangements and general approach to fraud.

The Council’s Anti-Fraud and Anti-Corruption Policy provide details of the ways in which these themes will be developed and executed to embed the anti-fraud culture as part of the good governance of the Council.

Everyone in the Council has a duty to protect the public purse and should be aware of the potential for fraud and corruption in their area of work. However, to ensure the successful implementation of this Strategy, specific responsibilities are detailed in Appendix 2 – Roles and Responsibilities.

14. The Anti-Fraud Culture The Council must have a strong and recognised anti-fraud culture. One where the Council’s leadership, both elected and employed, uphold the highest standards of conduct both in their duties and in their own personal financial dealings.

Leadership is a cornerstone of any organisation. Leaders set the example that the rest of the organisation follows. The Elected Members in this organisation are expected to set an example to each other, our Officers and the community that we serve. To this end the Council fully endorses the Members Code of Conduct as adopted in our own Constitution.

Similarly, there is a special onus upon the Chief Executive, Corporate Management Team and Senior Officers to lead by example in their financial dealings, which are beyond reproach and fully accountable. This includes financial dealings away from the workplace. For example, it is difficult to set a good example if you are making false or misleading tax returns.

The message must be clear and simple that the Council will not tolerate any fraudulent or corrupt activity. Every pound lost through fraudulent or corrupt acts is a pound stolen from the residents of Bassetlaw.

Page 8 of 61 184 All new employees will receive Anti-Fraud and Anti-Corruption Awareness training as part of their induction into the Council. In addition, all employees will be required to participate in refresher programmes. These will be in various formats (for example e- learning).

All Directorates will be required to address the risk of loss due to fraud and/or corruption through the Council’s Corporate Risk Strategy and appropriate Directorate Risk Action Plans.

This Anti-Fraud and Anti-Corruption Strategy and Policy will be available to all employees, contractors and partners and will link into other relevant policies and guidance, such as the:

• Disciplinary Policy and Procedure; • Code of Conduct for Employees; • Employee/Member Protocol; and • Partnership Governance Strategy.

15. Deterrence We recognise that our systems are vulnerable from attack, particularly by those who gain inside knowledge of control weaknesses. The most effective way to minimise fraud entering into any system is to deter those who may consider defrauding from committing the offence in the first place.

The Council will ensure that this Policy and other supporting policies are publicised to the widest possible audience, including staff, partners and the public. We will actively promote the anti-fraud culture and the consequences for those found to have committed such offences.

The Council will seek the most appropriate sanction and redress against all those who commit fraud against the Council. We will publicise details of criminal convictions and provide statistical information in relation to disciplinary action to deter others who may have considered committing such offences themselves.

All Managers have a responsibility for ensuring that control measures are in place to minimise the risk of fraud. They must consider these risks whenever new guidance or procedures are written or existing ones revised.

Managers must ensure that all staff are aware of these procedures and of the controls in place. Where effective controls are in place, there is less opportunity to commit fraud and therefore, this may act as a deterrent.

16. Prevention Fraud, theft and corruption are costly, both in terms of reputational risk and financial losses. To reduce the risk of loss we must aim to prevent it from happening in the first place. There are a number of key processes, which can assist in the prevention of fraud and corruption, including:

• Internal Control systems; • Employee Recruitment and Conduct; • Councillors Roles and Conduct; • Joint working to prevent and combat fraud; • The work of the Audit & Risk Scrutiny Committee. Page 9 of 61 185 • Risk-based verification for benefit claims.

17. Internal Control Systems The Council takes ultimate responsibility for the protection of our finances and those that are administered on behalf of the Government or the Community. In turn, our Managers have a duty to protect their service area from losses due to fraud and irregularity, and are responsible for implementing proper internal controls. Our Managers are expected to be fully familiar with the services they provide and must be cognisant of the fraud risks in their service area. Some services will be at particular risk of attack from external sources, for example:

• Housing Benefit; • Renovation Grants; • Homelessness and Housing; • Council Tax

In fact any service which pays money directly, reduces a liability or gives a service of value where there is some sort of claim or application made, is at a high risk of fraud. In addition, all Council services are susceptible to internal fraud through false pay, allowance or sickness claims and abuse of their position by Officers for private gain or the gain of relatives or friends.

Internal controls are only effective if they are properly conducted. Therefore, it is the responsibility of all Managers to establish and maintain systems of internal control and to assure themselves that those controls are properly applied and on the activities intended. This includes responsibility for the prevention and detection of fraud, corruption and financial malpractice.

We will implement strong systems of verification of all claims for all types of financial assistance. We will utilise all data available to corroborate information given by applicants for the purposes of prevention and detection of fraud. We will also monitor and review grants and assistance given to external organisations to ensure applications are genuine.

We will also expect our partners to have adequate controls in place to minimise fraud. We will provide Fraud Awareness training to our partners as required. We will also provide support and training to our community partners to help them implement proper controls and protect the funds they administer.

Our partners will be expected to have adequate recruitment procedures and controls when they are handling finance on behalf of the Council. This expectation will be written into all contract terms and agreements.

Our partners are expected to have adequate Whistle-blowing Procedures and the Council’s own procedure will be promoted to contractor staff working on behalf of the Council.

Internal Audit will ensure that an adequate and effective audit is undertaken of the Council’s systems and processes. The Fraud Investigation Team and Corporate Investigation Team will investigate allegations of fraud and corruption. Any system weaknesses that are identified as a result of these investigations will be reported to the relevant Head of Service/Service Manager. These will be addressed through an agreed Action Plan. The relevant Service Manager is responsible for implementing the Action Plan and Internal Audit will monitor implementation.

Page 10 of 61 186

Failure to implement adequate system controls following a loss to fraud will be the subject of a report to the relevant Director and/or Audit and Risk Scrutiny Committee. The Audit and Risk Scrutiny Committee will receive regular reports from Internal Audit regarding system failures, proposals for action and feedback on the implementation of Action Plans.

18. Employee Recruitment and Conduct All employees must abide by the Council’s rules as contained in relevant policies and procedures. This expectation forms part of each employee’s contract of employment. Employees of the Council are also expected to follow any additional Codes of Conduct, either related to any professional body to which they are registered, or additional Council Codes of Conduct relevant to their post, and immediately notify the Council if they come into conflict with any such Code.

Where agency staff are being employed in positions where they have access to finance, personal data or other assets, their references will be checked direct with their previous employer. The Council will not rely only on references supplied by staffing agencies. Guidance on the use of agency workers can be found on the intranet.

The Fraud Investigation Team and Corporate Investigation Team/Internal Audit will be proactive in raising awareness of the Council’s Anti-Fraud and Anti-Corruption culture to staff through regular Fraud Awareness sessions at all levels. Fraud and Corruption awareness will also form part of the new entrants’ induction package.

19. Members Roles and Conduct All Members are bound to comply with the Members Code of Conduct and any ancillary Codes that we implement. We will provide Fraud Awareness training to our Members and encourage an open and honest dialogue between Members and Officers.

We will ensure that the processes that are particularly vulnerable, such as planning, licensing, disposals and tendering are adequately protected through internal control mechanisms and proactive reviews of Member interests.

20. Joint Working to Prevent and Combat Fraud The Fraud Investigation Team and Corporate Investigation Team/Internal Audit are responsible for investigating all allegations of fraud. The teams will work with other local authorities and public sector bodies including:

• Department of Health; • Department for Work and Pensions (DWP); • Police; • Her Majesty’s Revenue & Customs (HMRC); • Border & Immigration Agency.

Where appropriate, we will participate in data-matching exercises and will share information using legislation or legal gateways available to us and our partners. The Audit Commission has drawn up a Code of Data Matching Practice for its National Fraud Initiative (NFI), which is recognised by the Information Commissioner as Page 11 of 61 187 complying with Data Protection legislation.

The Council will make full use of its statutory powers to obtain information, and will utilise the services of the National Anti-Fraud Network (NAFN) to support such information gathering.

21. Detection Whilst it is possible to reduce the potential for fraud and corruption within the Council, it is important to remember that it is not possible to eradicate it. Therefore, it is essential that Officers are aware of what to do should they detect or suspect a fraud has or is taking place.

All Members of staff, the public and Members are encouraged to contact the Fraud Investigation Team/Head of Finance & Property/Baker Tilly with any suspicion of fraud, corruption, financial malpractice or the misuse of official position. In addition, the Council operates a Whistle-blowing procedure for those employees who wish to utilise the protection offered by the Public Interest Disclosure Act 1998.

Officers have a duty to assist the Council with any matter under investigation. Failure to assist with an investigation may be considered as a breach of conduct or failure to comply with the Financial and/or Contract Procedure Rules. This could lead to disciplinary action being taken. Where Officers are being interviewed in connection with alleged fraud they will have the right to have a Trade Union representative present or to be accompanied by a work colleague. Alternatively, Officers may wish to provide information under the Whistle-blowing procedures.

The Fraud Response Plan provides guidance on what to do should an individual suspect fraud or corruption and can be found at Appendix 3 of this Strategy.

Alternatively, where benefit fraud is suspected we encourage the public to make use of our fraud hotline 01909 533731 to report any suspected fraud or to report fraud through our web site at http://www.bassetlaw.gov.uk/everything-else/benefits- information/benefit-fraud/how-to-report-benefit-fraud.aspx We will evaluate all referrals received from members of the public and commence investigation into all appropriate cases.

Internal Audit reviews will have regard to the possibility of fraud. Auditors and investigators will receive reciprocal training to ensure that both have a full understanding of system controls and potential fraud areas.

We will utilise all methods available to detect fraud. This includes data matching, open source research, surveillance and intelligence led investigations where appropriate. We will participate fully in the Audit Commission’s National Fraud Initiative.

We will analyse fraud trends in order to identify high risk areas and undertake proactive anti-fraud exercises based on that analysis. Where our partners are involved with the administration of our finances, or those for which we have responsibility, we will conduct pro-active anti-fraud exercises as we would for our own service areas.

22. Investigation BDC has a Fraud Investigation Team which is charged with leading the Council’s

Page 12 of 61 188 fight against Benefit fraud. This currently comprises of 2.5 fte and investigates irregularity on benefit claims including setting up overpayments and sanctions i.e. fines and prosecutions. With effect from the 1st November 2015 this number will reduce to 1 fte who will be the Investigation Officer (Corporate Fraud), whilst 1 fte will transfer over to the Single Fraud Investigation Office.

The team works to the Head of Finance & Property Services and Director of Corporate Resources. We are in the process of developing resources to tackle more corporate fraud i.e. allegations of theft, fraud, financial misconduct, corruption and other behaviour affecting the finances or integrity of the Council, its Members and employees.

The Corporate Investigation Team was previously formulated on an ad hoc basis depending on the circumstances in which corporate fraud takes place. This changes from 1st April 2015 as the Council has retained one FTE Officer in the service review, to undertake this work. In the first instance the Corporate Investigation Officer or internal audit service will provide an overview, and will then advise the Head of Finance & Property whether to engage our specialist investigation staff to carry out the work until its natural conclusion.

Both teams will be fully trained in criminal investigation and will be required to work within the parameters of the relevant Criminal Law and within the Council’s Code of Conduct for Investigation Officers.

The teams will investigate any allegation that may have a direct, or indirect, impact on the finances for which we are responsible. This will include cases where Officers may have financial information relating to organisations which are, or have been, funded by the Council or with whom the Council have a contract.

The teams will utilise the specific expertise of other units including Internal Audit, Human Resources and Legal Services in all cases where appropriate to progress investigations. The teams will also conduct joint investigations with other agencies to uncover the fullest extent of any offence.

We will utilise the Police in cases where their additional powers are required to secure evidence or recovery of funds, or where the matter cannot be pursued in- house.

Where an investigation involves an employee of the Council, Corporate Investigation Team/Internal Audit will have regard to the possibility of both disciplinary and criminal action being taken. To ensure the specific actions are taken at the correct time, the Fraud Investigation Team/Corporate Investigation Team will ensure that Internal Audit, Human Resources and Legal Services are notified of all investigations involving employees in line with agreed procedures. Through this interface the Corporate Investigation Team will ensure that the Council’s Disciplinary Policy and Procedure is fully complied with in managing cases that involve employees of the Council.

If an allegation of fraud or corruption against a Member also results in a complaint of misconduct under the Members’ Code of Conduct, the complaint will be dealt with in accordance with the requirements set out in the Localism Act 2011 and as defined within the Council’s approved arrangements.

Our partners will provide full access to their financial records, as they relate to our Page 13 of 61 189 finances, and their Officers will be required to assist fully with any investigation. These conditions will be included in any contract terms or agreements. Personnel records of any person suspected of being involved in fraud will be made available to the Fraud Investigation Team and Corporate Investigation Team/Internal Audit.

23. Sanction We will seek the strongest available sanctions against all who commit fraud against the Council, its clients or the public purse. This may include disciplinary action, prosecution, civil proceedings, financial penalties or a combination of all. Where the fraud is committed by an employee of a contractor or partner organisation, we will request that the organisation takes appropriate disciplinary action against the individual and/or we will require that they are removed from the Bassetlaw account. The ability to request removal of staff will be written into contract terms.

The decision to recommend any or all of the above sanctions will be made on a case by case basis, having regard to the Disciplinary Policy and Procedure and Prosecution Policy in place at the time.

24. Disciplinary Action At the conclusion of each investigation, the Corporate Investigation Team/Internal Audit will produce a report. The Manager whose responsibility encompasses the area of that investigation will then decide whether or not to formally accept the report and take the appropriate action (disciplinary or other).

In most cases, where there is objective evidence available to lead to a conclusion of fraud, theft, corruption, serious financial malpractice, or use of position for personal gain or for the gain of others, this is likely to constitute gross misconduct and may lead to summary dismissal.

This applies to employees who improperly benefit from the Council as a corporate body, and not just those who steal funds from their own unit. It also applies to employees who defraud or steal from the Council’s clients. We will also take disciplinary action against Officers who commit fraud against other Local Authorities, the Department of Work and Pensions or any other agency administering public funds.

Any case of fraud involving a Councillor will be subject to the Local Assessment arrangements as required under the Localism Act 2011 and defined within the Council’s Code of Conduct Complaints Procedure. This may involve a referral to the Police if there is potentially criminal conduct/breach of other regulations.

25. Criminal Sanctions In addition to any disciplinary action, the Fraud Investigation Team/Corporate Investigation Team will decide whether further action is appropriate in respect of any criminal offences. This decision will be made on a case by case basis and within the Prosecution Policy in force at the time. Further action may include a recommendation of prosecution, or in benefit fraud cases, the offer of a Formal Caution or Administrative Penalty as an alternative.

We will use the Council’s own Legal team, DWP Solicitors and the Crown Prosecution Service, through the Police, to bring offenders to justice. As a deterrent, we will also publicise our successful sanctions in the local press.

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26. Redress In all cases we will seek recovery of any fraudulently obtained amounts and we will utilise all means available to us to recover these amounts. This can include freezing assets, Compensation Orders, Confiscation Orders, Civil Litigation, recoup of monies paid through the Pension Fund, and general debt recovery.

The Council Debt Recovery Strategy provides clear guidance on the measures it will take to effectively recover monies owed to the Council.

Additionally, where a criminal conviction has been secured, we will utilise the power of the Courts to obtain Compensation Orders where appropriate. We will also consider the use of our partners’ specialist skills in financial investigation to recover losses using the Proceeds of Crime Act 2002.

All partners and contractors will be responsible for any losses affecting Council funds attributable to their employees. This will be written into contract terms.

Page 15 of 61 191 REVIEW AND REPORTING

27. Updates

This Strategy will be the subject of continuous review to ensure it supports the strategic objectives of the Council. It will be formally reviewed on a tri-annual basis.

Internal audit will also conduct a periodic review of the Council’s operation against the Strategy to ensure the Anti-Fraud and Anti-Corruption culture is embedded within Council services.

A report on the Council’s activity in relation to cases of fraud and irregularities will be submitted to the Audit & Risk Scrutiny Committee on an annual basis.

Page 16 of 61 192 APPENDIX 1 – THE CORPORATE FRAMEWORK

• The Constitution (including Financial Procedure Rules, Contract Procedure Rules and the Scheme of Delegation); • An established Audit Committee (Audit & Risk Scrutiny Committee); • An established Standards sub-committee and an adopted Code of Conduct for Members; • Members formally signing a declaration accepting the terms of the Code of Conduct; • Employee rules of conduct contained within the relevant policies and procedures; • Employees Conditions of Service; • An Officer appointed under Section 151 of the Local Government Act 1972, with statutory responsibility for the oversight of all financial affairs; • An Officer, appointed as Monitoring Officer under section 5 of the Local Government and Housing Act 1989, with statutory responsibility for monitoring the legality of the Council’s affairs; • Register of Interests, Gifts and Hospitality procedures for Members and Officers; • Effective employee vetting procedures (recruitment checks and DBS where appropriate) and a detailed Officer Code of Conduct; • A Corporate Induction programme for all Officers which includes expected standards of probity; • Effective Disciplinary Policy and Procedures; • An Internal Audit function with a responsibility for assessing and testing the Council's control environment; • A Whistle-blowing Policy; • An Anti-Fraud and Anti-Corruption Policy; • A Complaints procedure available to the public; • Public inspection of accounts and questions to the External Auditor; • An External Audit function; • Dedicated internal Fraud Investigation Team and Corporate Investigation Team/Internal Audit whose work programmes includes proactive work determined by a formal risk assessment; • Participation in National anti-fraud initiatives; • The promotion of awareness of anti-fraud and corruption issues, reinforced by training and publicity; • A proactive IT security function. • Risk-based Verification policy (benefits)

Page 17 of 61 193 APPENDIX 2 – ROLES AND RESPONSIBILITIES

Role Responsibility Council • Facilitating an Anti-Fraud and Anti-Corruption culture. • Demonstrate a commitment to this Strategy and ensure it has the appropriate profile within the Council. Cabinet • Ensure the Strategy is effectively implemented across the Council. Audit & Risk Scrutiny • To approve the Anti-Fraud and Anti-Corruption Committee Strategy. • To monitor and review the effectiveness of the Council’s risk management arrangements, internal controls and related Anti-Fraud and Anti-Corruption arrangements. Chief Executive • Ensure that there is strong political and executive support for work to counter fraud and corruption. • Ensure consistency across Directorates in the implementation of this Strategy. Monitoring Officer • Ensure that a programme of work is undertaken that is designed to publicise expected standards of ethical conduct. • Ensure that the progress in raising standards will be communicated to stakeholders. • Ensure that effective Whistle-blowing arrangements are established. • Ensure Registers of Interests, Gifts & Hospitality are maintained. • Ensure Members and Officers are fully aware of their obligations in relation to probity. Section 151 Officer • Ensure that those working to counter fraud and corruption are undertaking this work in accordance with a clear ethical framework and standards of personal conduct. • Ensure that those working to counter fraud and corruption are professionally trained and accredited for their role and attend regular refresher courses to ensure they are up to date with new developments and legislation. • Ensure that there is a level of financial investment in counter fraud and corruption work that is proportionate to the risk that has been identified. • Ensure that reports on investigations include a section on identified Policy and system weaknesses that allowed the fraud/corruption to take place where appropriate. Head of Human • Ensure that there is an effective propriety checking Resources system (i.e. safe recruitment) implemented by appropriately trained Officers in place; • Provide advice to promote consistency; • Ensure employment policies support the Anti-Fraud and Anti-Corruption Strategy; Page 18 of 61 194 • Advise on and monitor that effective and appropriate sanctions are applied in all appropriate cases. Council Solicitor • Ensure resources are available to pursue appropriate criminal and civil proceedings. Directors • Ensure the risks of fraud and corruption are identified, entered on the Risk Register and Action Plans implemented to reduce the risk to an acceptable level. • Ensure the Anti-Fraud and Anti-Corruption Strategy is implemented within their Directorate. • Ensure the risk of fraud and corruption is considered in all new processes. Heads of Service • Ensure the Anti-Fraud and Anti-Corruption Strategy is implemented within their service. • Ensure that as part of the risk management process the Council attempts to identify accurately the nature and scale of losses to fraud and corruption, and also takes into account fraud and corruption risks in relation to significant partnerships. • Ensure that there are framework agreements in place to facilitate working with other organisations and agencies. • Ensure that there are regular meetings to implement and update these agreements. • Consider fraud and corruption risks within all new Policies and systems, and to revise existing ones to remove possible weaknesses. Managers • Ensure all employees are aware of their responsibilities under the Anti-Fraud and Anti- Corruption Strategy. • Ensure all employees have read the Council’s Constitution in respect of all employee rules of conduct and understand their responsibilities. • Ensure all employees understand the Whistle- blowing Policy and reporting arrangements. • Ensure employees are aware of the process for reporting allegations of fraud. • Ensure accurate and timely reporting of gifts and hospitality. Employees • Ensure understanding of and compliance with the Council’s Anti-Fraud and Anti-Corruption Policy and Strategy. • Report suspected fraud or corruption and take responsibility for understanding the appropriate methods to do so. • Report gifts and hospitality and take responsibility for understanding the process to do so. • Declare interests and take responsibility for understanding the process to do so. Risk Management • Ensure any risks identified due to potential fraud or Group corruption are properly mitigated. Internal Audit • Support Heads of Service and their Managers in identifying and mitigating risks for fraud and corruption.

Page 19 of 61 195 • To undertake initial investigation into allegations of fraud and corruption to identify weaknesses in controls. • Work closely with the Fraud Investigation Team and Corporate Investigation Team to conduct criminal investigations. • Make recommendations where weaknesses are identified, and ensure Action Plans are implemented to prevent reoccurrences. Fraud Investigation • Ensure all allegations are recorded and risk Team and Corporate assessed. Investigation Team • Conduct investigations in line with legislation. • Notify Section 151 Officer, Human Resources, Internal Audit & Legal Services at the outset of investigations into employees and at the conclusion of investigation, and liaise as appropriate during the investigation. • Pursue the most appropriate criminal/ disciplinary sanction including prosecution.

Page 20 of 61 196 APPENDIX 3 – FRAUD RESPONSE PLAN

1. Introduction Bassetlaw District Council is committed to the highest possible standards of openness, probity and accountability in all its affairs. It is determined to embed a culture of honesty and opposition to fraud and corruption in the conduct of all our business and decision making.

In line with that commitment, the Council’s Anti-Fraud and Anti-Corruption Policy outlines the principles we are committed to in relation to preventing, reporting and managing fraud and corruption.

This Fraud Response Plan reinforces the Council’s robust approach by setting out the ways in which employees or members of the public can voice their concerns about suspected fraud or corruption. It also outlines how the Council will deal with such complaints.

2. What do we want to know about? This plan is intended to be implemented where suspicions of fraud or corruption have been raised.

Fraudulent or corrupt acts may include:

• Systems issues - for example, abuse of a process/system by either employees, Members, or the public such as planning applications; • Financial Issues – for example, where individuals or companies have fraudulently obtained money from the Council such as invoicing for work that was not undertaken, or false Housing Benefit claims; • Equipment Issues – for example, where Council equipment is used for personal use, such as Council vehicles; • Resource Issues – for example, where there is a misuse of resources such as theft of building materials, or using Council equipment to run a private business; • Other Issues - Activities undertaken by Officers of the Council which may be:

o Unlawful; o Against the Council’s Financial and Contract Procedure Rules or Policies; o Fall below established standards or practices; or o Amount to improper conduct – for example, receiving hospitality.

This is not an exhaustive list.

3. What Should an Employee do if they Suspect Fraud or Corruption? Employees are often the first to realise that there is something seriously wrong within the Council. However, they may not express their concerns because they feel that speaking up would be disloyal to their colleagues or to the Council. They may also fear harassment or victimisation. In these circumstances, they may feel that it would be easier for them to ignore the concern rather than report what may just be a suspicion of malpractice.

Page 21 of 61 197 The Council’s Whistle-blowing Policy is intended to encourage and enable Officers to raise serious concerns within the Council rather than overlooking a problem, informing the media, or other external bodies.

Employees should report their concerns in accordance with the Whistle-blowing Policy. The nature of the complaint will determine the Council’s course of action.

The employee must not:

• Approach the person, people or organisation they suspect; • Attempt to collect evidence or question anybody, (but if they have documents etc which they think are relevant, they should where possible secure them safely); • Attempt to investigate on their own.

If an employee is unsure about what they have seen or heard, they should seek advice in confidence in accordance with the Whistle-blowing Policy.

4. What Should a Member of the Public do if they Suspect Fraud or Corruption? The Council encourages members of the public who suspect fraud and corruption to contact the Fraud Investigation Team/Head of Finance & Property/Baker Tilly in the first instance. Allegations of fraud and/or corruption can be made on-line at http://www.bassetlaw.gov.uk/everything-else/benefits-information/benefit- fraud/how-to-report-benefit-fraud.aspx or via the confidential hotline number 01909 533731.

5. Safeguards The Council recognises that the decision to report a concern can be a difficult one to make, not least because of the fear of reprisal from those responsible for the malpractice. The Council will not tolerate harassment or victimisation and will take action to protect those who raise a concern in good faith.

The Council will not disclose information regarding the identity of the complainant without their prior consent, and they cannot be compelled to give evidence. However, it must be appreciated that in some situations the investigation process may not be concluded unless the source of the information and a statement by the individual can be produced as part of the evidence. Allegations of fraud or corruption can be made anonymously. However, concerns expressed anonymously are much less powerful, but they will be considered at the discretion of the Council. In exercising this discretion, the factors to be taken into account would include:

• The seriousness of the issues raised; • The credibility of the concern; and • The likelihood of confirming the allegation from attributable sources.

If an allegation is made in good faith, but it is not confirmed by the investigation, no action will be taken against the originator. If, however, individuals make malicious or vexatious allegations, action may be considered against the individual making the allegation. In the case of an employee making malicious or vexatious allegations, this may include disciplinary action or dismissal.

Page 22 of 61 198 6. How will Allegations of Fraud or Corruption be Dealt with by the Council? The Fraud Investigation Team and Corporate Investigation Team/Internal Audit operate independently of all other Council Services. Their work includes establishing procedures with the following aims:

• To develop and embed an Anti-Fraud culture; • To deter, prevent, detect and investigate fraud and corruption; • To seek appropriate action against those who commit or seek to commit some sort of fraud or corruption; • To obtain compensation in respect of any losses to the Council; and • To recommend system and control improvements to reduce the Council’s exposure to fraudulent activity.

To this end, the Fraud Investigation Team and Corporate Investigation Team will work with other stakeholders such as Internal Audit to provide a joined up approach to prevention, detection, investigation and prosecution of fraud and corruption within the Council.

When allegations are received from employees or Members of the public, the action taken by the Council will depend on the nature of the concern. The matters raised may be investigated internally or alternatively referred to the Police.

Within 10 working days of a concern being received, the Fraud Investigation Team/Head of Finance & Property/Director of Resources will write to the complainant:

• Acknowledging that the concern has been received; • Indicating how it proposes to deal with the matter; • Giving an estimate of how long it will take to provide a final response; • Telling them whether any initial enquiries have been made; and • Telling them whether any further investigations will take place, and if not, why not.

The Council accepts that those people who reported the alleged fraud or corruption need to be assured that the matter has been properly addressed. Thus, subject to legal constraints including Data Protection, they will receive information about the outcomes of any investigation.

7. Alternative Methods for Taking a Complaint Forward If either a member of the public or an employee feels that it is right to take the matter outside these processes, the following organisations can be contacted:

• If you live within the Bassetlaw District Council boundary, your local Councillor can be contacted. If you are unsure how to contact them, call the Council on 01909 533533 for advice; • The Councils external auditors: KPMG; • Employees may invite their Trade Union to raise a matter on their behalf; • The Police; • The Local Government Ombudsman, an independent body set up by the Government to deal with complaints against Councils in the United Kingdom;

Page 23 of 61 199 • Public Concern at Work, a charity that provides free and strictly confidential legal help to anyone concerned about a malpractice which threatens the public interest. They operate a helpline on 0207 404 6609 or can be e- mailed to [email protected].

Page 24 of 61 200 APPENDIX 4 – PROSECUTION POLICY

1. Introduction The Council’s Anti-Fraud and Anti-Corruption Policy sets out our aims and objectives with regard to tackling fraud and corruption and includes the Council’s Prosecution Policy Statement. It states that we will seek the strongest possible sanction against any individual or organisation that defrauds, or seeks to defraud the Council. The use of prosecution will be governed by the following Policy, and the principles of the Policy shall apply equally to any fraud against the Council, or against funds for which the Council has responsibility.

The objectives of the Prosecution Policy is to ensure that:

• The Council considers a full range of sanctions, including criminal proceedings, in a just and consistent manner; • Sanctions are applied in an effective and cost efficient manner; • The decision to prosecute is robust and transparent.

This Policy is designed to provide a framework to ensure that the most appropriate resolution to a case is reached. The decision to prosecute will have regard at all times to the Council’s Anti-Fraud and Anti-Corruption Policy objectives, the individual circumstances of each person concerned and the overall impact of the punishment to both the individual and the community.

A range of sanctions are available to the Council. These include:

• Disciplinary action; • Civil proceedings; • Criminal proceedings (prosecution); • Formal caution; • Administrative penalties.

In appropriate cases we will take more than one form of action. For example, where Officers have defrauded the Council we may take disciplinary, prosecution and civil recovery action.

The decision to take disciplinary action will be made with regard to the Council’s Disciplinary Policy and Procedure and is independent of any decision to prosecute.

2. Criminal Prosecution One sanction available to the Council is criminal prosecution. We recognise that this is a serious step to take and the decision to refer cases for prosecution will not be taken lightly.

The ultimate decision on prosecution will be taken by the prosecuting body. In some cases this will be the Council’s Legal Services. In these cases the decision to refer cases to the prosecuting authority will be taken by the Fraud Investigation Team/Corporate Investigation Team.

Page 25 of 61 201 In appropriate cases, we will also utilise the prosecution arm of the DWP. This will usually be for cases involving joint investigations involving Local Authority and DWP benefits. However, the decision to refer any offences against the Council to the DWP solicitor will remain with the Fraud Investigation Team/Corporate Investigation Team in conjunction with their DWP counterpart.

Where an investigation has been passed to the Police to investigate, they will liaise with the Crown Prosecution Service to make the ultimate decision on whether or not to prosecute.

When considering a case for prosecution it is generally accepted that there are two “tests” to be applied - the Evidential Stage test and the Public Interest test. These are currently set out in the Code for Crown Prosecutors 2004. The Evidential Stage test must be considered prior to the Public Interest Test.

3. Evidential Stage Test Is there the required level of evidence to support a prosecution? Without this the case cannot go ahead no matter how important the case or how strong the public interest is in favour of prosecution.

The evidence must be acquired in a form which can be used by the Court and be admissible, and there must be enough evidence to form a realistic prospect of conviction. In order to ensure that a “realistic prospect of conviction” exists, Officers of the Fraud Investigation Team/Corporate Investigation Team will at all times ensure that investigations are conducted in accordance with relevant legislation and in line with published Codes of Practice and Guidance with regard to evidence gathering, interviewing and rules of disclosure.

The evidence gathered will be examined in the first instance by the investigator and their Manager. When both are satisfied that sufficient evidence exists to successfully prosecute and that the Public Interest Stage is also satisfied, the case file will be passed on to either the Council’s Legal team, the DWP Solicitor or the Crown Prosecution Service via the Police, with signed authority from a senior officer with delegated authority. All prosecutors will then apply their own inspection of the evidence to ensure that both tests are met.

4. Public Interest Test In order to ensure consistency and correctness when considering a case for Sanction/Prosecution, the guidelines applied by the Crown Prosecution Service - as detailed in Section 10 of the Prosecution of Offences Act 1985, will be followed by Officers of the Fraud Investigation Team/Corporate Investigation Team. In addition, the guidance provided by the DWP, in relation to benefit fraud will also be considered. Aggravating and mitigating factors will be taken into consideration when deciding on the appropriate sanction.

5. Housing Benefit Fraud In the area of Housing Benefit fraud, there are two additional sanctions which are available to the Council. These are the Formal Caution and Administrative Penalty, and can be offered in certain circumstances as an alternative to prosecution. These must be recommended by the investigation officer, checked and signed by the manager.

Page 26 of 61 202

6. Formal Caution A Formal Caution is an oral warning given to a person who it is believed has committed an offence, the seriousness and circumstances of which do not appear to be serious enough to warrant Prosecution. This would normally apply to low value benefit fraud, or possibly short term failure to notify changes in circumstances. The Caution is recorded on the DWP database.

In order to offer a Caution the Council must be satisfied that sufficient evidence exists to justify Criminal Proceedings. The person must have admitted to the offence and must make a written admission of the offence acknowledging that they are willing to receive a Caution. If a person accepts the Caution, the Council will not pursue Criminal Proceedings in respect of that offence.

If the Caution is not accepted the matter should normally then be referred for prosecution on the basis of the original facts.

7. Administrative Penalty The Council will consider financial penalties, as an alternative to a Criminal Prosecution, in cases where the criteria for prosecution have been fulfilled but the offenders personal circumstances indicate that a financial penalty would be a suitable solution.

This provision is in accordance with the Social Security Administration (Fraud) Act 1997 which allows the Council to administer a penalty (currently 50% of the amount of benefit fraudulently obtained). The Council will recoup the Administrative Penalty payments in addition to any repayments of the overpaid benefit.

If the financial penalty is not accepted by the offender as the alternative remedy, then the matter will be referred back for pursuit of a Criminal Prosecution, as will any case where a claimant had agreed to pay an Administrative Penalty, but subsequently withdraws their agreement within a specified time. More detailed information on Formal Cautions and Administrative Penalties can be found in the Council’s Counter Fraud Sanction Policy.

8. Fraud Loss of Benefit (LOB) penalties

Part of the joint strategy between the Department for Work and Pensions (DWP), local authorities (LAs) and Her Majesty’s Revenue and Customs to tackle fraud and error in the benefits and tax credits system was to introduce new LOB penalties from 1 April 2013. These new penalties supplement the existing One/Two strike LOB regime for offences that occur wholly on or after 1 April 2013.

Page 27 of 61 203 APPENDIX 5 – COUNTER FRAUD SANCTION POLICY

1) Policy Statement

We are committed to eradicating benefit fraud throughout the Bassetlaw district to ensure that our resources are directed to those who genuinely need them.

Bassetlaw District Council’s Prosecution and Sanction Policy has been developed with the aim of providing a rational and consistent approach to the use of formal sanctions. Whenever benefit fraud is proven the local authority will determine, based on the circumstances of each case, whether it is right to bring a formal sanction against the perpetrator.

The Council will not discriminate (positively or negatively) against any claimant or group of claimants.

This Policy is not intended to be prescriptive but refers to criteria relating to the offence, the offender and the value of the fraud that has to be taken into account before considering the sanction that may apply.

A person involved in Housing Benefit fraud may commit offences contrary to a number of acts of Parliament. These include the Social Security Administration Act 1992, The Theft Act 1968, the Social Security Fraud Act 2001 The Fraud Act 2006 and the Welfare Reform Act 2007 and 2012.

When the Council is able to prove beyond reasonable doubt that a criminal offence has been committed there are a number of options it has to consider:

 Recover the overpayment but take no formal action;  Issue a Formal Caution;  Invoke an Administrative Penalty;  Prosecute.

There can be no “blanket” approach, as each case must be considered on its own merits. These guidelines set out what the Council will normally do in a particular situation rather than define an absolute course of action. Relevant matters for consideration should include the following:

The case passes the public Interest test; The case passes the evidential test and there are no serious errors in the benefit assessment or investigation; The amount defrauded; The offence has continued for some time; The offence involved some pre-thought and planning; There is evidence of a previous fraud; There is evidence of collusion; An Authorised Officer has been obstructed in the course of their duties; The Perpetrator held a position of trust.

NB At all stages recovery of the overpayment will be made.

2) The Initial Assessment of Cases Identified

All fraud referrals will be subject to a risk assessment to determine if: Page 28 of 61 204

• There is evidence upon which there are grounds to suspect an offence, or • Information is held that indicates an offence may have been committed, but evidence has yet to be obtained.

The Investigations Manager will review cases on a regular basis to ensure consistency, legality and quality.

3) Conducting a Criminal Investigation

Whether there is evidence of an offence or information is held which indicates an offence may have been committed, the standards of a criminal investigation will be maintained. The principles of PACE (Police and Criminal Evidence Act), CPIA (Criminal Procedures and Investigations Act), HRA (Human Rights Act), Equality Act, Data Protection and RIPA (Regulation of Investigatory Powers Act) will be adhered to.

The objective of the investigation is to establish the facts. Where sufficient evidence of an offence or offences is found, the application of a sanction will be considered.

4) Identification of Offences

At the initial stages of the investigation, the Investigating Officer must establish what offences may have been committed. This is to ensure that cases that are subject to legislative “time bars” are given priority. The procurement of additional evidence, if required, should then be relevant to those offences. However, the suspicion of additional or other offences may arise during the course of an investigation.

Where an Investigation Officer finds evidence that benefit is being paid incorrectly, the matter must be referred to a Benefits Assessment Officer. The Benefit Assessment Officer (or the Adjudication Officer at the DWP) will then make a decision as to whether payment of benefit should be suspended until it can be determined if the correct amount of benefit has been, or is being paid.

5) Interviewing

Interviews, undertaken by Counter-Fraud Officers, may take place when all the required evidence has been obtained. However, in many instances it could be necessary to interview earlier. In either instance, if an Officer has grounds to suspect an offence (PACE 10.1) the interview must be conducted in accordance with PACE (Police and Criminal Evidence Act) and the interviewee cautioned.

Where an interview is being conducted, but a caution has not been administered, a caution shall be administered as soon as the interviewing Officer has grounds to suspect an offence (again PACE 10.1 applies).

Where there are reasons why an interview should not be undertaken i.e. medical grounds, a decision (the investigator in conjunction with the Investigations Manager) will then be made about whether to proceed with an interview under caution.

Consideration will be given to the gender, cultural, religious, sexual orientation, age, and disability needs of claimants prior to any interview.

6) The Decision to Sanction

Page 29 of 61 205 Once the investigation has been concluded, the investigation Officer will present the case in a written format with a recommendation to the Investigations Manager, about whether a sanction is appropriate. The Investigations Manager will apply the evidential test and the public interest test. Should the Manager decide that the case IS suitable for a sanction, it will be passed to the Head of Service who will make the final decision.

It should be noted that where there has been a decision to prosecute a case, in accordance with the Council’s Policy, the final decision regarding whether a case is presented in Court rests with the prosecuting authority.

7) Sanctions

In all cases prosecution must be the first consideration.

When considering a case for prosecution there are two tests to be applied – the ‘evidential test’ and the ‘public interest test’. It is only when both of these tests are satisfied that a case can be considered for prosecution.

The first test to be considered is the “evidential test”. If the case does not pass the “evidential test” then it cannot be considered for prosecution regardless of the seriousness of the alleged offence.

7.1) Evidential Test

In order for the Council to consider sanction action the case must meet the evidential criteria. In other words is there sufficient evidence for a realistic prospect of a conviction?

In making this decision the following factors must be considered:  How clear is the evidence, is it reliable and can it be used in Court;  If there has been any failure in the investigation;  If there has been any failure in the benefit administration.

7.2) Public Interest Test

The test of public interest is concerned with balancing the need for prosecution against the individual circumstances surrounding the alleged fraud and the potential outcomes. In making this decision certain factors must be considered which include:

 Medical conditions;  Social factors.

Guidance is given in the Code for Crown Prosecutors to ensure consistency and correctness.

7.3) Consideration Factors for a Prosecution

• The overpayment exceeds £3,000 for LA only overpayment. In joint cases with the DWP prosecution will be considered for overpayments over £2,000; The defendant was in a position of authority or trust; • The evidence shows that the individual was instrumental in the offence; • There is evidence that the offence was premeditated and whereby there was a calculated and deliberate attempt to defraud the Authority;

Page 30 of 61 206 • The individual’s previous convictions, cautions or administrative penalties are relevant to the present offence; • There are grounds for believing that the offence is likely to be continued or repeated, for example, by a history of recurring conduct; or the offence, although not serious in itself, is widespread in the area where it was committed; • The period of time over which the alleged offence took place; • There has been an attempt to defraud.

7.4) Consideration Factors Against a Prosecution

• A prosecution is likely to have a detrimental effect on the individual’s physical or mental health; • The offence was committed as a result of a genuine mistake or misunderstanding; • There were unnecessary and unaccountable delays in the investigation. The Courts look very critically at the time it takes to bring cases to Court or the time a customer has been left with the case unresolved; • Poor administration (either by the Council, DWP or Inland Revenue).

Only when the case has met the evidential and public interest test can alternative sanctions be considered.

7.5) Formal Caution

A formal caution is an oral warning given to a person who has committed an offence and who is then required to make a written admission to the offence acknowledging that they have received a caution in return for not being prosecuted through the criminal courts.

In order to offer a caution the individual must have admitted the offence during the interview under caution and the overpayment should not normally exceed £3,000. Cautions may be administered in cases where there is no overpayment but an attempt to defraud the Council has been proven.

If the caution is not accepted the matter should be referred for prosecution. Where a prosecution is brought, the Court will be informed that the case was before them because the individual refused to accept a formal caution.

7.6) Administrative Penalties

The Social Security Fraud Act 1997 allows a financial penalty, equivalent to 50% of the overpayment, to be offered to an individual, this is known as an Administrative Penalty.

In order to offer an Administrative Penalty it is not necessary for the individual to have admitted an offence. The overpayment should exceed £50 but should not normally not exceed £3,000.

If the Administrative Penalty is accepted the individual undertakes to repay the original overpayment and the Administrative Penalty in return for not being prosecuted through the criminal courts.

Page 31 of 61 207 Consideration should be given as to the customer’s financial circumstances in deciding the appropriateness of offering an Administrative Penalty.

If the Administrative Penalty were not accepted the matter should be referred for prosecution. Where a prosecution is brought, the court will be informed that the case was before them because the individual refused to accept an administrative penalty.

7.7) No Action Taken

Should the overpayment total less than £50 the Investigations Manager will consider not issuing a formal sanction (unless intent to defraud has been proven). (S)he may chose instead to issue a warning letter advising the claimant of the importance of reporting changes. The letter should also reinforce the point that future failures could result in prosecution.

7.8) Failure to co-operate

There is no legal requirement for someone who has been the subject of a fraud investigation to attend an Interview Under Caution and Investigation Officers do not have the power of arrest. Investigating suspicions of fraud can involve the employment of costly resources and if a suspect continually fails to attend for interview or refuses to provide information to assist the Investigation Officer than the work of the team is seriously undermined.

Bassetlaw District Council needs to be seen to act decisively in these instances.

Customers that have been investigated for alleged fraud should be given at least two opportunities, over a three-week period, to attend for interview under caution. This could become a two-week period if alleged offences are subject to time bars.

In cases where the customer fails to respond to two pre-scheduled interviews under caution then the Investigations Manager and the Head of Service should consider the details of the case, whether there are sufficient grounds to prosecute, and advise the prosecuting authority to issue the customer with a summons to Court.

If the potential overpayment exceeds £5,000 then the Counter-Fraud Manager in liaison with the Head of Service should consider referring the case to the Police, who do have the power of arrest and can prosecute under the Theft Act.

7.9) One and Two Strike Sanction Action

In April 2010, Section 24/Schedule 4 of the Welfare Reform Act 2009 and the Social Security (Loss of Benefit) Amendment Regulations 2010 introduced a new four week loss/reduction of benefit sanction (One Strike). This sanction applies to benefit fraud offences committed on or after 1st April 2010 but before 2013 that result in a caution, administrative penalty or first conviction.

The application of a Loss of Benefit sanction, results in a reduction in standard housing benefit and/or Council tax benefit during the disqualifying period by an amount of the single person’s personal allowance for housing benefit equivalent of 40% or 20% if the offender, their partner, or a family member, is seriously ill or pregnant.

The Two-strike sanction, which came into force in 2002, applies to cases where someone is convicted of benefit fraud twice in a 5-year period.

Page 32 of 61 208 Part of the joint strategy between the Department for Work and Pensions (DWP), local authorities (LAs) and Her Majesty’s Revenue and Customs to tackle fraud and error in the benefits and tax credits system was to introduce new LOB penalties from 1 April 2013. These new penalties supplement the existing One/Two strike LOB regime for offences that occur wholly on or after 1 April 2013 and vary the reduction now depending on the claimant’s applicable amount.

8) Closer Working

The Benefit Investigation Team are committed to successful joint working with the counter fraud sections of the Department of Work and Pensions (DWP), Job Centre Plus (JCP) and Inland Revenue Special Compliance (IRSC).

• Where HB/CTB and DWP/JCP administered benefits are in payment we will work jointly with the DWP/JCP and will support the DWP in any sanction they deem appropriate • We are committed to joint prosecutions with the DWP/JCP/ HMRC/Police; • We encourage closer liaison with the DWP/JCP/HMRC/Police to ensure that correct documentation and evidence is provided.

9) Overpayment Recovery

The Benefit Investigation Team cannot actively pursue overpayments and therefore the Officer responsible for overpayments should administer recovery of such debt.

We always aim to identify the full extent of proven fraud so that, where appropriate, overpaid benefits can be recovered from fraudsters.

We will use all available methods to achieve this, including:

• Making deductions from future payments of HB/CTB or DWP/JCP benefits; • Issuing invoices and recovering debt via the County Court if necessary. • Use of modern tracing services

We will rigorously recover fraud overpayments to enforce our commitment to tackling benefit fraud seriously.

10) Fraud Publicity Strategy

We will seek to maximise publicity as a deterrent to others who might consider defrauding the Authority by:

• Publishing the Fraud Hotline ; • Issuing press releases to the local media at the conclusion of a successful prosecution. Reporting on the number of sanctions, the overpayments identified and the type of fraud uncovered; • Providing regular feedback to staff in the form of a newsletter to highlight the types of fraud referred, successes and general points to help raise fraud awareness; • Reporting the work of the Benefit Investigation Team and Corporate Fraud activity to Members on a regular basis; • Publishing an abridged version of the Housing and Council Tax Benefits Counter Fraud Policy on the Council’s website.

Page 33 of 61 209 APPENDIX 6 – ANTI-MONEY LAUNDERING POLICY

1. Introduction

1.1 Money Laundering can be defined as “a process that makes money with an illegal origin appear legal so that they may be used”. Legislation concerning Money Laundering (Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003 and 2007) have broadened the definition of Money Laundering and increased the range of activities caught by the statutory framework. As a result, the obligations impact on areas of local authority business although the Council is not directly covered by Money Laundering Regulations.

However under the CIPFA Treasury Code of Practice local authorities are required to establish internal procedures to prevent the use of their services for Money Laundering (Treasury Management Practice 9).

2. The Scope of this Policy

2.1 This Policy applies to all employees of Bassetlaw District Council and its Elected Members and aims to maintain the high standards of conduct which currently exist within the Council by preventing criminal activity through Money Laundering. The Policy sets out the procedures that must be followed to enable the Council to comply with its legal obligations.

2.2 Anti-Money Laundering legislation places a responsibility upon Council employees and Elected Members to combat Money Laundering and covers a very wide area of financial transactions, including possessing, or in any way dealing with, or concealing, the proceeds of any crime. It applies to all employees/Elected Members involved with monetary transactions. In this context, monetary transactions includes any business of the Council which involves any transfer of assets or obligations to or from the Council and where there is opportunity for the other party to receive or divert cash or convert assets or obligations into cash. Many types of criminal activity would fall under the scope of Money Laundering (for instance falsely claiming benefits and tax evasion etc.).

2.3 It is a criminal offence to:-

• Assist a money launderer; • “Tip off” a person suspected to be involved in Money Laundering, that they are the subject of Police investigations; • Fail to report a suspicion of Money Laundering, and • Acquire, use or possess criminal property.

3. Purpose and Intent

3.1 The statutory requirements concerning Anti-Money Laundering procedures are extensive and complex. The purpose for this Policy is to enable the Council to meet its legal obligations in a way that is proportionate to the low risk to the Council of contravening the legislative framework.

3.2 It is necessary to make all employees and Elected Members aware of their responsibilities and the consequences of non-compliance with the Policy. Page 34 of 61 210

3.3 Whilst the risk to the Council of contravening the legislation is minimal, it is vitally important that all employees and Elected Members are familiar with their responsibilities.

4. When this Policy Applies

4.1 When the Council is carrying out relevant business and:

(a) Forming a business relationship, or (b) Considering undertaking a one-off transaction.

Relevant business is defined by the legislation to include, but is not restricted to, investments, accountancy and audit services, and the financial, company and property transactions undertaken by Legal and Finance & Property Services.

5. Client Identification Procedures

5.1 Any employee or Member involved in relevant business should ensure the client provides satisfactory evidence of their identity personally, through a passport or photo driving licence plus one other document with their name and address e.g. utility bill, mortgage/building society/bank documents, pension/benefits book, or corporate identity – through company formation documents or business rates.

5.2 In any circumstances where the client cannot be physically identified the employee should be aware:-

(a) That there is greater potential for Money Laundering where the client is not physically present when being identified; (b) If satisfactory evidence is not obtained the relationship or transaction should not proceed; (c) If the client acts or appears to act for another person, reasonable measures must be taken for the purposes of identifying that person.

6. Record Keeping

6.1 The Council and contractors working for the Council conducting relevant business must maintain records of:-

(a) Client identification evidence obtained, which must be kept for 5 years after the end of the transaction or relationship; (b) Details of all relevant business transactions carried out for clients for at least 5 years from the completion of the transaction. This is so that they may be used as evidence in any subsequent investigation by the relevant authorities into Money Laundering.

6.2 The Section 151 Officer/Director of Corporate Resources must be informed of the existence and location of such records.

Page 35 of 61 211 7. The Money Laundering Reporting Officer (MLRO)

7.1 The Officers nominated to receive disclosures about Money Laundering activity within the Council are the Finance Manager (Corporate) and Head of Finance & Property.

8. Reporting Requirements

8.1 Where an employee or Elected Member is aware, or has sound and valid suspicions that Money Laundering may have taken place (or may be taking place), he or she must contact the MLRO for guidance as soon as possible regardless of the amount being offered. In such circumstances, no money may be taken by anyone until this has been done. If money has been received this should be held and kept separate from Council monies.

8.2 Any person knowing or suspecting Money Laundering, fraud or use of the proceeds of crime, must report this to the MLRO on the forms attached. When in doubt it is best to report any suspicions.

8.3 Upon receipt of receiving the report the MLRO will consider all of the admissible information in order to determine whether there are grounds to suspect Money Laundering.

8.4 If the MLRO determines that the information on matters should be disclosed it will be reported to the National Criminal Intelligence Service (NCIS).

8.5 At no time and under no circumstances should any employee or Elected Member voice any suspicions to the person(s) suspected of Money Laundering, even if the NCIS has given consent to a particular transaction proceeding, otherwise the employee/Elected Member may be committing the offence of “tipping off”. The MLRO will keep the appropriate records in a confidential manner.

9. Related Procedures

9.1 The Council will establish other procedures for internal control and communication as may be appropriate for the purpose of the prevention of Money Laundering:

(i) Regular receipts – the Council in the normal operation of its business accepts payments from individuals and organisations in respect of a range of activities. For all transactions under £2,000 the Money Laundering Regulations do not apply but if an employee/Member has reasonable grounds to suspect Money Laundering activity or proceeds of crime or is simply suspicious, the matter should still be reported to the MLRO.

(ii) Cash receipts – if the money offered in cash is £2,000 or more then payment must not be accepted until the employee has received guidance from the MLRO or the Deputy MLRO.

(iii) Refunds – any significant overpayment that results in a repayment will need to be properly investigated and authorised before payment.

Page 36 of 61 212 10. Effectiveness

10.1 The impact and effect of this Policy shall be reviewed at least annually by the Head of Finance and Property and the Audit and Risk Scrutiny Committee.

Page 37 of 61 213 MONEY LAUNDERING REPORTING OFFICER DISCLOSURE FORM

Date of Disclosure:

Officer making disclosure (inc. Job Title):

Contact Details:

Subject Details:

Title:

Surname:

Forename:

Date of Birth:

In the case of a legal entity (company):

Name:

Address:

Company No. (if known):

Type of Business:

VAT No. (If known):

Reason for disclosure:

Receipt: MLRO or Deputy MLRO will confirm receipt of a completed Disclosure Form within 3 working days.

Page 38 of 61 214 APPENDIX 7 – ANTI BRIBERY POLICY AND PROCEDURES

1. POLICY STATEMENT

Bribery is a criminal offence. The Council does not and will not pay bribes or offer improper inducements to anyone for any purpose. It also does not or will not accept bribes or improper inducements. To use a third party as a conduit to channel bribes to others is a criminal offence. The Council does not and will not engage indirectly in or otherwise encourage bribery. The Council has zero-tolerance towards bribery and aims to maintain anti-bribery compliance as “business as usual” rather than as a one-off exercise.

1.1 Objective of the Policy This Policy provides a coherent and consistent framework to enable the Council’s employees to understand and implement arrangements enabling compliance. In conjunction with related policies and key documents it will also enable employees to identify and effectively report a potential breach.

The Council requires that all personnel, including those permanently employed, temporary staff and contractors:

• Act honestly and with integrity at all times and to safeguard the Council’s resources for which they are responsible;

• Comply with the spirit, as well as the letter, of the laws and regulations of all jurisdictions in which the Council operates, in respect of the lawful and responsible conduct of activities.

1.2 Scope of the Policy

This Policy applies to all of the Council’s activities. For partners, joint ventures and suppliers, the Council will seek to promote the adoption of policies consistent with the principles set out in this Policy.

Within the Council, the responsibility to control the risk of bribery occurring resides at all levels of the organisation. It does not rest solely within assurance functions, but in all service areas and corporate functions.

This Policy covers all personnel, including all levels and grades, those permanently employed, temporary staff, contractors, agents, Members (including non-elected independent Members), volunteers, community organisations and consultants.

1.3 The Council’s Commitment to Action

The Council commits to:

• Setting out a clear Anti-Bribery Policy and keeping it up to date;

• Making all employees aware of their responsibilities to adhere strictly to this Policy at all times;

Page 39 of 61 215 • Training key employees so that they can recognise and avoid the use of bribery by themselves and others;

• Encouraging its employees to be vigilant and to report any suspicions of bribery, providing them with suitable channels of communication and ensuring sensitive information is treated appropriately;

• Rigorously investigating instances of alleged bribery and assisting Police and other appropriate authorities in any resultant prosecution;

• Taking firm and vigorous action against any individual(s) involved in bribery;

• Provide information to all employees to report breaches and suspected breaches of this Policy;

• Include appropriate clauses in contracts and tender documents to prevent bribery.

1.4 Definition of Bribery

Bribery is the giving or receiving of a financial or other advantage in connection with the improper performance of a position of trust, or a function that is expected to be performed impartially or in good faith (Bribery Act 2010).

1.5 The Bribery Act 2010

There are four key offences under the Act:

• Bribery of another person (Section 1);

• Accepting a bribe (Section 2);

• Bribing a foreign official (Section 6);

• Failing to prevent bribery (Section 7).

The Bribery Act 2010 (http://www.opsi.gov.uk/acts/acts2010/ukpga 2010/23) makes it an offence to offer, promise or give a bribe (Section 1). It also makes it an offence to request, agree to receive, or accept a bribe (Section 2).

Section 6 of the Act creates a separate offence of bribing a foreign public official with the intention of obtaining or retaining business or an advantage in the conduct of business.

There is also a corporate offence under Section 7 of failure by a commercial organisation to prevent bribery that is intended to obtain or retain business, or an advantage in the conduct of business, for the organisation. This is what is known as a “strict liability” offence which means that there is no need to prove negligence or management complicity. An organisation will have a defence to this corporate offence if it can show that it had in place adequate procedures designed to prevent bribery by or of persons associated with the organisation.

1.6 Is the Council a “Commercial Organisation”?

The Act defines a “commercial organisation” as a body or partnership incorporated or formed in the United Kingdom irrespective of where it carries on a business, or an Page 40 of 61 216 incorporated body or partnership which carries on a business, or part of a business, in the United Kingdom irrespective of the place of incorporation or formation.

Whilst the public sector is not a commercial organisation and technically not covered by the Act, the guidance states that a “commercial organization” is anybody formed in the United Kingdom and “…it does not matter if it pursues primarily charitable or educational aims or purely public functions. It will be caught if it engages in commercial activities, irrespective of the purpose for which profits are made.” Therefore, there are circumstances in which the Council will be a commercial organisation for the purposes of Section 7. This Policy is intended to ensure that the Council has in place the necessary procedures to act as a defence to a Section 7 offence.

2. ANTI BRIBERY PROCEDURES

2.1 The Six Principles

The guidance sets out six principles, and the Council is committed to the proportional implementation of the following principles:

Proportionality

The Council has procedures in place to prevent bribery by persons associated with it. These are proportionate to the bribery risks faced by the Council and to the nature, scale and complexity of the Council’s activities. They are also clear, practical, accessible, effectively implemented and enforced.

Top Level Commitment

The Council’s Corporate Management Team (CMT) and Councillors are committed to preventing bribery by persons associated with it. They foster a culture within the organisation in which bribery is never acceptable.

Risk Assessment

The Council assesses the nature and extent of its exposure to potential external and internal risk of bribery on its behalf by persons associated with it. The assessment is periodic, informed and documented. It includes financial risks but also other risks such as reputational damage and is carried out as part of the Council’s risk management process.

Due Diligence

The Council applies due diligence procedures, taking a proportionate and risk based approach in respect of persons who perform or will perform services for or on behalf of the Council, in order to mitigate identified bribery risks.

Communication (including training)

The Council seeks to ensure that its bribery prevention policies and procedures are embedded and understood throughout the organisation through internal and external communication, including training that is proportionate to the risks it faces.

Monitoring and review

Procedures designed to prevent bribery are monitored and reviewed and improvements are made where necessary.

Page 41 of 61 217 2.2 Penalties

An individual guilty of an offence under Sections 1, 2 or 6 of the Bribery Act 2010 is liable to a term of imprisonment, a fine, or both depending on the offence and whether the party prosecuted is an individual or a commercial organisation.

2.3 Zero Tolerance It is unacceptable to:

• Give, promise to give, or offer a payment, gift or hospitality with the expectation or hope that a business advantage will be received, or to reward a business advantage already given;

• Give, promise to give, or offer a payment, gift or hospitality to a government official, agent or representative to “facilitate” or expedite a routine procedure;

• Accept payment from a third party that you know or suspect is offered with the expectation that it will obtain a business advantage for them;

• Accept a gift or hospitality from a third party if you know or suspect that it is offered or provided with an expectation that a business advantage will be provided by us in return;

• To induce a person to perform improperly a relevant function or activity, or to reward a person for the improper performance of such a function or activity;

• Retaliate against or threaten a person who has refused to commit a bribery offence or who has raised concerns under this Policy;

• Engage in activity in breach of this Policy and/or the law.

2.4 Facilitation Payments

Facilitation payments are not tolerated and are illegal. They are unofficial payments made to public officials to secure or expedite actions.

2.5 Gifts and Hospitality

The Council’s policy regarding the requirements for gifts and hospitality is set out within its Codes of Conduct and the Gifts and Hospitality Protocol. All gifts, payments or any other contribution, whether in cash or in kind, shall be documented, regularly reviewed, and properly accounted for.

2.6 Public Contracts and Failure to Prevent Bribery

Under the Public Contracts Regulations 2006 (which gives effect to EU law in the UK), a company is automatically and perpetually debarred from competing for public contracts where it is convicted of a corruption offence. There are no plans to amend the 2006 Regulations for this to include the crime of failure to prevent bribery. Organisations that are convicted of failing to prevent bribery are not automatically barred from participating in tenders for public contracts. This Council has the discretion to exclude organisations convicted of this offence.

The Council has an adopted Corporate Procurement Policy and Strategy, and it states that:

Page 42 of 61 218 “All procurement activity must be undertaken to the highest standards of ethics and probity. The Council insists on ethical standards from its suppliers, and in turn it must exhibit the highest ethical standards itself. Officers and Members must not only be fair and above board in all business dealings, but should also avoid any conduct that is capable of having an adverse interpretation put on it.”

The Council will, therefore, ensure good governance, transparency, and adopt best practice when dealing with all suppliers and contractors, and this will include thorough due diligence checks on all prospective suppliers.

2.7 Employee Responsibilities

The prevention, detection and reporting of bribery and other forms of corruption are the responsibility of all those working for the Council or under its control. All employees are required to avoid activity that breaches this Policy.

Employees must:

• Ensure that they read, understand and comply with this Policy;

• Raise concerns as soon as possible if they believe or suspect that a conflict with this Policy has occurred or may occur in the future.

As well as the possibility of civil or criminal prosecution, employees that breach this Policy will face action in line with the Council’s Disciplinary Rules which could result in dismissal for gross misconduct.

2.8 Management Responsibilities

The primary responsibility for maintaining sound arrangements to prevent and detect fraud and corruption rests with management. Any breach of those arrangements should be reported via the mechanisms outlined in section 2.9 of this Policy.

Section 151 of the Local Government Act 1972 requires every local authority to make arrangements for the proper administration of their financial affairs and shall secure that one of their officers has responsibility for the administration of those affairs. At Bassetlaw the Head of Finance & Property is the responsible officer.

Under the Accounts and Audit Regulations 2003 (amended 2006) the Council has the responsibility for reviewing, appraising and reporting upon the extent to which the Council’s assets and interests are safeguarded from losses due to fraud and other offences. This function is carried out by the Internal Audit Service supported by our partners Baker Tilly.

The Council’s Monitoring Officer (Director of Corporate Resources) is responsible under Section 5 of the Local Government and Housing Act 1989, to guard against, inter alia, illegality, impropriety and maladministration in the Council’s affairs. The Council’s Financial and Contract Procedure Rules support this Policy and detail the individual officer responsibilities in respect of the prevention of fraud and corruption. The Corporate Management Team has specific responsibilities in relation to upholding standards of conduct.

2.9 Raising a Concern

The Council is committed to ensuring that there is a safe, reliable and confidential way Page 43 of 61 219 of reporting any suspicious activity. The Council wants all employees to know how to raise concerns.

All employees have a responsibility to help detect, prevent and report instances of bribery.

If you have a concern regarding a suspected instance of bribery or corruption then please raise your concern as detailed in the Council’s Whistleblowing Policy & Procedure, or alternatively contact the Chief Executive, the Director of Corporate Resources, the Head of Finance & Property, the Council Solicitor, or the Head of Internal Audit (Baker Tilly).

3. MAINTENANCE OF THE POLICY

The Policy will be reviewed by the Corporate Governance Working Group and updated in line with current legislation and best practice.

4. OTHER RELEVANT POLICIES

• Anti-Fraud and Anti-Corruption Corruption Strategy & Policy

• Anti- Money Laundering Policy

• Whistleblowing Policy & Procedure

• The Public Interest Disclosure Act 1998 (PIDA). (This offers a framework of protection against victimisation or dismissal for workers who blow the whistle on criminal behaviour or other wrongdoing.)

• Gifts and Hospitality Protocol

• Risk Management Strategy

• Codes of Conduct

• Human Resources Policies re disciplinary proceedings

• Financial & Contract Procedure Rules (The Council conducts its procurement process with transparency and that thorough due diligence checks will be undertaken on all prospective suppliers.)

5. DISTRIBUTION LIST

• Website

• All staff and Members

• All Council Partners

• All Council Suppliers (via website)

Page 44 of 61 220 APPENDIX 8 – WHISTLEBLOWING POLICY AND PROCEDURE

1. INTRODUCTION

1.1 Bassetlaw District Council is committed to ensuring that it, and the people working for it, complies with the highest standards of openness, honesty and accountability.

1.2 The term whistleblowing has a specific legal definition, i.e. a disclosure or allegation of serious wrongdoing made by an employee, and a wider public definition, i.e. any disclosure or allegation of serious wrongdoing made by anyone.

1.3 This policy seeks to cover both disclosures and allegations of serious wrongdoing made by employees and members of the public, and to this end, where this policy makes reference to a whistleblower; it refers to any individual (including Bassetlaw District Council employees and/or members of the public) who is making a disclosure or allegation of serious wrongdoing.

1.4 Where any individual, irrespective of whether that individual is either a Bassetlaw District Council employee, a worker for a Council contractor (including seconded Council employees) or a member of the public, is aware of any serious wrongdoing, such as:

• Breach of a legal obligation; • Any criminal activity, including incitement to commit a criminal act; • Corruption or fraud; • A miscarriage of justice; • A danger to the health or safety of any individual or damage to the environment; • Abuse of power or authority; • Failure to comply with professional standards, Council policies or codes of practice/conduct;

committed by or related to the actions of:

• Bassetlaw District Council employees; • Councillors; and/or • Contractors, agency staff, suppliers or consultants of Bassetlaw District Council in the course of their work for the Council;

and reports it, the Council will investigate any such allegations and, where appropriate, take action. The Council is also committed to preventing any harassment, victimisation or unfair treatment of any person arising from their whistleblowing, and where appropriate, take disciplinary action against any member of staff responsible for such harassment, victimisation or unfair treatment against a whistleblower.

1.5 This policy seeks to set out how the Council will handle and respond to any such allegations, made either by Council staff or members of the public.

1.6 Whilst the whistleblowing legislation offers protection to employees, the Council Page 45 of 61 221 considers that any such allegations of serious wrongdoing should be investigated, whether they are made by an employee, a user of Bassetlaw District Council services, or any member of the public.

1.7 This policy seeks to:

a) encourage employees and members of the public and/or their representatives to feel confident in raising concerns or allegations in the public interest about suspected serious wrongdoing in the Council and its services without fear of reprisals or victimisation even where the concern or allegations are not subsequently confirmed by the investigation;

b) give a clear message that allegations of serious wrongdoing or impropriety are taken seriously;

c) ensure that where the disclosure proves to be well founded, the individuals responsible for such serious wrongdoing will be held accountable for their actions;

d) set out what employees and members of the public can expect by way of confidentiality and protection when making a whistleblowing disclosure; and

e) identify independent support for employees who wish to make a whistleblowing disclosure.

1.8 This policy is not designed to be used:

a) for raising or reconsideration of matters that come under existing internal Bassetlaw District Council procedures e.g. Grievance, Disciplinary, Capability, Dignity at Work or Bassetlaw District Council’s general complaints procedure; or

b) for allegations that fall within the scope of specific procedures (for example child or vulnerable adult protection) which will normally be referred for consideration under the relevant procedure, unless the employee has good reason to believe that the procedure is not being followed or will not be followed effectively; or

c) as an appeal process from any complaint or grievance handled under any of the above procedures.

1.9 Where a complaint made under this policy falls outside the scope of the policy, e.g. where the complaint falls outside the scope of “serious wrongdoing”, Bassetlaw District Council will advise the whistleblower of this and consult with the whistleblower in respect of taking the complaint further. Wherever possible, the Council will comply with the views of the whistleblower, but there are situations where the Council is legally required to pass on details of allegations, without the consent of the whistleblower, such as in safeguarding matters, or where the allegations relate to serious criminal activity undertaken by individuals outside the Council.

1.10 Likewise, if an allegation made under either of the other above complaints processes falls under the remit of a “serious wrongdoing”, the Council will notify the whistleblower of this and investigate the allegation under this process.

Page 46 of 61 222

1.11 Employees are often the first to realise that there may be something seriously wrong within the Council. However, they may not express their concerns because they feel that speaking up would be disloyal to their colleagues or to the Council. They may also fear harassment or victimisation. In these circumstances, it may be easier to ignore the concern rather than report what may just be a suspicion of malpractice.

1.12 An employee’s concerns about malpractice may in this context include concerns about possible corruption, dangerous procedures risking health and safety, abuse of clients, evasion of statutory responsibilities, damage to the environment or other unethical conduct. The overriding concern should be that it would be in the public interest for the malpractice to be corrected and, if appropriate, sanctions applied.

1.13 The Council is committed to the highest possible standards of openness, probity and accountability. In line with that commitment we encourage employees and others with serious concerns about any aspect of the Council’s work to come forward and voice those concerns. It is recognised that certain cases will have to proceed on a confidential basis. This procedure makes it clear that staff can do so without fear of reprisals. This Whistleblowing Code is intended to encourage and enable staff to raise serious concerns within the Council rather than overlooking a problem or blowing the whistle outside.

It is in the interests of all concerned - Council, staff and anybody accused of failure, that such disclosures are dealt with properly, quickly and where appropriate.

1.14 The Code of Practice is complementary to the Code of Conduct for Local Government Employees.

1.15 This policy is aligned to other Council policies as follows:

• Anti-Fraud & Anti-Corruption Strategy and Policy • Declarations of Interest • Fraud Response Plan • Gifts and Hospitality Protocol • Financial Procedure Rules

2. AIMS AND SCOPE OF THIS POLICY

2.1 Employees will be expected through agreed procedures and without fear of recrimination, to bring to the attention of the appropriate level of management any deficiency in the provision of service. Employees must report to the appropriate manager any impropriety or breach of procedure.

2.2 This code aims to explain how the Council will put that policy into practice.

It provides –

• avenues for you to raise concerns and receive feedback on any action taken • allows you to take the matter further if you are dissatisfied with the Council’s response, and Page 47 of 61 223 • reassures you that you will be protected from reprisals or victimisation for whistleblowing in good faith

2.3 There are existing procedures in place to enable you to lodge a grievance relating to your own employment. This whistleblowing policy is intended to cover concerns that fall outside the scope of other procedures.

2.4 A qualifying disclosure is one made in good faith by an employee who has a reasonable belief that:

• a criminal offence; • a miscarriage of justice; • an act creating risk to health and safety; • an act causing damage to the environment; • a breach of any other legal obligation; or • concealment of any of the above;

is being, has been, or is likely to be, committed.

2.5 That concern may relate to the actions of an officer or Member of the Council or an external contractor carrying out work on the Council’s behalf for the Council.

3. SAFEGUARDS

3.1 The Public Interest Disclosure Act 1998 makes it unlawful for the Authority to dismiss anyone (or carry out any other form of reprisal) on the basis that they have made a protected disclosure.

3.2 The Act has rules for making a protected disclosure:

• the disclosure must be in good faith • the Whistleblower must believe an allegation to be substantially true • the Whistleblower must not act maliciously or make false allegations • the Whistleblower must not seek any personal gain

3.3 Harassment or Victimisation

The Council recognises that the decision to report a concern can be a difficult one to make, not least because of the fear of reprisal from those responsible for the malpractice. The Council will not tolerate harassment or victimisation and will take action to protect you when you raise a concern in good faith.

3.4 This does not mean that if you are already the subject of disciplinary or redundancy procedures, that those procedures will be halted as a result of your whistleblowing.

3.5 Confidentiality

The Council will do its best to protect your identity when you raise a concern and do not want your name to be disclosed. It must be appreciated that the investigation process may reveal the source of the information and a statement by you may be required as part of the evidence. However strenuous efforts will be made to obtain independent evidence which will either excuse you from getting involved further, or where that is not possible corroborate your evidence.

Page 48 of 61 224 3.6 Anonymous Allegations

This policy encourages you to put your name to your allegation. Concerns expressed anonymously are much less powerful, but they will be considered at the discretion of the Council.

3.7 In exercising the discretion, the factors to be taken into account would include:

• the seriousness of the issues raised • the credibility of the concern; and • the likelihood of confirming the allegation from attributable sources.

3.8 Untrue Allegations

If you make an allegation in good faith, but it is not confirmed by the investigation, no action will be taken against you. If, however, you make malicious or vexatious allegations, disciplinary action may be taken against you.

4. HOW TO RAISE A CONCERN - EMPLOYEE

4.1 As a first step, you should normally raise concerns with your immediate manager or their superior. You may also wish to seek advice and guidance from a member of the HR team. This depends, however, on the seriousness and sensitivity of the issues involved and who is thought to be involved in the malpractice. For example, if you believe that management is involved, you should approach the Chief Executive, Head of Finance & Property, Monitoring Officer or Council Solicitor or Head of HR & Organisational Development.

4.2 Concerns are better raised in writing. However, regardless of the form in which you decide to raise concerns you should set out the background and history of the concern, giving names, dates and places where possible, and the reason why you are particularly concerned about the situation. If you do not feel able to put your concern in writing, you can telephone or meet the appropriate officer.

4.3 The earlier you express the concern, the easier it is to take action.

4.4 Although you are not expected to prove the truth of an allegation, you will need to demonstrate to the person contacted that there are sufficient grounds for your concern.

4.5 Advice and guidance on how matters of concern may be pursued can be obtained from any of the following members of the Corporate Management Team:

Chief Executive Council Solicitor Director of Corporate Resources/Monitoring Officer Director of Regeneration and Neighbourhoods Head of HR & Organisational Development Chief Financial Officer (S151)

4.6 You may invite your trade union or other representative of your choice to raise a matter on your behalf.

Page 49 of 61 225

5. HOW TO RAISE A CONCERN – MEMBERS OF THE PUBLIC

5.1 Unlike disclosures by employees, the Public Interest Disclosure Act does not cover disclosures by members of the public.

5.2 However, the Council considers that any disclosures or allegations made by members of the public in respect of serious wrongdoing should be handled in the same way as disclosures made by employees.

5.3 Once a disclosure from a member of the public has been received by the Council, it will be handled in the same way as a disclosure made by an employee under the Public Interest Disclosure Act.

6. ACTION TO BE TAKEN BY AN OFFICER RECEIVING A WHISTLEBLOWING ALLEGATION.

6.1 Any officer who is informed of a potential problem through the Whistleblowing policy or suspects any irregularity must record the following:

• Date Discovered • Discovery Method • Names of contacts • Nature of Irregularity

6.2 Where any officer receives such a report, they must not embark on an investigation. The officer must immediately report details of the suspected irregularity to the Monitoring Officer who will convene a meeting to include the S151 Officer, the Council Solicitor and the Head of HR and Organisational Development to determine how the complaint will be handled.

6.3 The Fraud Response Plan sets out the actions the Council will follow when investigating Whistleblowing allegations if applicable.

7. HOW THE COUNCIL WILL RESPOND

7.1 The action taken by the Council will depend on the nature of the concern. The matters raised may:

• be investigated internally • be referred to the Police • be referred to the external Auditor • form the subject of an independent inquiry

7.2 In order to protect individuals and the Council, initial enquiries will be made to decide whether an investigation is appropriate and, if so, what form it should take. Concerns or allegations which fail within the scope of specific procedures will normally be referred for consideration under those procedures.

Page 50 of 61 226 7.3 Some concerns may be resolved by agreed action without the need for investigation.

7.4 Within ten working days of a concern being received, the Council will write to you:

• acknowledging that the concern has been received • indicating how it proposes to deal with the matter • giving an estimate of how long it will take to provide a final response • telling you whether any initial enquiries have been made, and • telling you whether further investigations will take place, and if not, why not.

7.5 The amount of contact between the officer considering the issues and you, will depend on the nature of the matters raised, the potential difficulties involved and the clarity of the information provided. If necessary, further information will be sought from you.

7.6 When any meeting is arranged, you have the right, if you so wish, to be accompanied by a Union or professional association representative who is not involved in the area of work to which the concern relates.

7.7 The Council will take steps to minimise any difficulties which you may experience as a result of raising a concern. For instance, if you are required to give evidence in criminal or disciplinary proceedings, the Council will advise you about the procedure. Should you so wish you may also request an officer of the Council of your choosing to provide you with advice and support. In any consequent proceedings in which you are required to give evidence that person’s role will be recognised by the Council.

7.8 The Council accepts that you need to be assured that the matter has been properly addressed. Thus, subject to legal constraints, you will receive information about the outcomes of any investigations.

8. HOW TO RAISE A CONCERN EXTERNALLY

8.1 This policy is intended to provide you with an avenue to raise concerns within the Council. The Council hopes you will be satisfied. If having pursued your complaint using the procedure outlined you believe the appropriate action has not been taken you may report the matter to the proper authority.

8.2 The legislation sets out a number of bodies to which qualifying disclosures may be made. These include:

• HM Revenue & Customs; • the Financial Services Authority; • the Office of Fair Trading; • the Health and Safety Executive; • the Environment Agency; • the Director of Public Prosecutions; and • the Serious Fraud Office. Page 51 of 61 227

If you do take the matter outside the Council, you need to ensure that you do not disclose confidential information or that disclosure would be privileged. Check with the contact point about that.

9. RESPONSIBLE OFFICERS

9.1 Officers referred to in paragraph 6.2 have a responsibility for:

• Ensuring that all concerns raised under the Whistleblowing Policy are given initial consideration to determine (a) whether they fall within the remit of the Whistleblowing Policy; (b) if the concerns do fall within the remit of the Whistleblowing Policy, undertaking initial enquiries to determine whether an investigation is appropriate and if so what form it should take; (c) if the concerns do not fall within the remit of the Whistleblowing Policy, ensuring that the complainant is informed of the correct policy/procedure that applies and provided with advice in accordance with that policy/procedure; • Ensuring that all matters relevant to the complaint are given full and proper consideration before any decisions are made; • Ensuring that the rights of employees making a protected disclosure are observed and that a fair and proportionate process is followed; • Appointing an appropriate Senior Officer to oversee the investigation process (where applicable).

9.2 In addition, members of the Corporate Whistleblowing Team have specific responsibilities as follows:

Monitoring Officer - overall responsibility for the process of managing the complaint in accordance with the Policy and for providing guidance and advice to the Team on:

• Compliance issues related to the complaint and measures that are required to rectify/ensure compliance.

Section 151 Officer – to consider the financial implications of any allegations contained within a whistleblowing complaint, and provide guidance and advice to the receiving manager and Monitoring Officer on:

• Measures to avoid or minimise loss or risk to the Council in both the immediate and longer term; • Whether the allegations are a matter for investigation by external audit and the sourcing of an appropriate external auditor; • The allocation of appropriate financial resources to fund any associated costs arising from the whistleblowing complaint.

Head of HR and OD – to consider the human resources implications contained within a whistleblowing complaint, and provide guidance and advice to the receiving manager and Monitoring Officer on:

• Implications in terms of matters of discipline, suspension and/or capability; • The appointment of an appropriate internal or external investigator (unless it is a matter for audit investigation);

Page 52 of 61 228 • Appropriate communication with the complainant and subject of the complaint.

Council Solicitor – to consider the legal implications of any allegations contained within a whistleblowing complaint, and provide guidance and advice to the receiving manager and Monitoring Officer on:

• Measures to ensure legal compliance for the Council in both the immediate and longer term; • Legal consequences of the complaint if proven.

9.3 Although a number of officers have been identified as appropriate to approach, the Monitoring Officer has overall responsibility for the maintenance and operation of this policy. A record of concerns raised and the outcomes will be maintained by the Monitoring Officer but in a form that does not endanger your confidentiality and will report as necessary to the Council.

10. MAINTENANCE OF THE POLICY

The Policy will be reviewed by the Corporate Governance Working Group and updated in line with current legislation and best practice procedure.

Page 53 of 61 229 APPENDIX 9 – GIFTS AND HOSPITALITY PROTOCOL

1. Introduction

1.1 The purpose of this guidance note is to provide a guide to employees and Councillors about

• The legal rules on gifts and hospitality and what may happen if they are breached; • When gifts and hospitality may be accepted; • The procedure to follow if you are offered a gift or hospitality; • What to do if you think an employee or a Councillor has acted inappropriately.

1.2 Persons in public service (both employees and elected members) are expected to act in the interest of the public and to act impartially – and be seen to act impartially. Moreover, they should avoid putting themselves in a position where their integrity is called into question because of any financial or other obligation. As well as avoiding actual impropriety, the appearance of it should also be avoided. Council employees should not benefit personally in any way from their position as paid employees of the Council.

1.3 To quote from the judgment in a 1970’s case:

“People who take you to Wimbledon or to watch the Rugby are not doing it because they like you, it is because they want you to like them, It is because when you go to make a decision on a contract it is going to be based on friendship”.

2. The Legal Rules on Gifts and Hospitality

Title of rule Applies to What the rule says Consequences of breach The Public Bodies Councillors Councillors and employees Criminal offence – Corrupt Practices and must not corruptly receive or prosecution – on Act 1889 employees agree to receive any gift, loan, conviction you can be fee, reward or advantage for sentenced to up to 7 doing or not doing something in years in prison connection with the work of the Council. The Prevention of Councillors Where a gift, loan etc., is Criminal offence – Corruption Act 1916 and received by an employee or prosecution – on employees Councillor from a person conviction you can be seeking a contract with the sentenced to up to 7 Council then the gift or loan is years in prison deemed to have been received corruptly unless proved otherwise. This would place the giver and the receiver in the position of having to prove that they did not act dishonestly.

Page 54 of 61 230 Title of rule Applies to What the rule says Consequences of breach Local Government Employees S117 Local Government Act Criminal offence - Act 1972 only 1972 states that an employee prosecution of a local authority shall not, under colour of their office or employment, accept any fee or reward whatsoever other than their proper remuneration Local Authority Employees Employees will maintain Breach of contract of Employees only conduct of the highest standard employment – Conditions of such that public confidence in disciplinary Service (“the Green their integrity is maintained. action/dismissal Book”) Proceeds of Crime Councillors Part 7 states that “..any person Criminal offence – Act 2002 and committing an acquisitive crime Prosecution – (Part 7) supported Employees (i.e. one where he obtains The principal money by some benefit in the form of laundering offence Money Laundering money or an asset of any carries a maximum Regulations 2007 description) in the UK will penalty of 14 years inevitably also commit a money imprisonment laundering offence under UK legislation. Localism Act 2011 Councillors Councillors must act in the Breach of the Code of including Code of and co-opted public interest and never Conduct – Conduct for members only improperly confer an Potential criminal Councillors advantage or disadvantage on conduct/breach of other any person or act to gain regulations financial or other material or benefits for themselves, their sanctions as defined in family, a friend or close the Code of Conduct associate. arrangements adopted Councillors must register with by Council the Monitoring Officer the name of any person from whom they have received a gift or hospitality with an estimated value of at least £25.

3. The Bribery Act 2010

3.1 The Bribery Act 2010, which repeals existing legislation, has introduced the offences of giving (or offering) and receiving (or requesting) a bribe. It also places specific responsibility on organisations to have in place sufficient and adequate procedures to prevent bribery and corruption taking place. Under the Act, bribery is defined as “Inducement for an action which is illegal unethical or a breach of trust. Inducements can take the form of gifts loans, fees rewards or other privileges”. Corruption is broadly defined as the offering or the acceptance of inducements, gifts or favours payments or benefit in kind which may influence the improper action of any person. Corruption does not always result in a loss. The corrupt person may not benefit directly from their deeds; however, they may be unreasonably using their position to give some advantage to another.

3.2 To demonstrate that the Council has in place sufficient and adequate procedures and to show openness and transparency all staff are required to comply with the Page 55 of 61 231 requirements of the Gifts & Hospitality Protocol. For a more detailed explanation see the Anti-Bribery and Anti-Corruption Strategy and Policy. Should members of staff wish to report any concerns or allegations they should refer to the Whistleblowing Policy.

4. When gifts and hospitality may be accepted

4.1 The legal rules, and the potentially severe penalties for breaking them, mean that Councillors and employees must be cautious about accepting gifts or hospitality in the course of their duties.

Gifts

4.2 Employees and Councillors should usually refuse gifts offered to them or to a member of their immediate family by any person or body who has or seeks to have dealings with the Authority. Councillors must record all gifts and hospitality received with a value of £25 or more. Employees must inform their Director or Head of Service of all offers of gifts and hospitality regardless of value or whether accepted or not and seek advice as to whether the offer should be recorded.

4.3 However, the following gifts may generally be accepted, although employees must obtain the permission of a Director or Head of Service.

(i) A modest gift of a promotional/advertising character given to a wide range of people and not uniquely to the employee. The gifts would normally bear the Company’s name and/or trademark/logo and would be the sort of item that would be useful in the every-day working environment eg pens, calendars, diaries, note pads, desk sets, tape measures etc;

(ii) from time to time, as part of a sales promotion drive, firms offer gifts or vouchers exchangeable for gifts, or ordering excess of certain targets. When this happens Value for Money and the best interests of the Authority should always be uppermost in an employee’s mind. Employees should not over order, over stock, or purchase items not forming part of the Authority’s normal requirements;

(iii) Modest gifts given in a lottery at Exhibitions, Conferences, Seminars etc, as part of a free raffle or draw;

(iv) Modest gifts of alcohol or non-perishable foodstuffs (which must be donated to the Chairman’s Charity or other charity); and

(v) Modest gifts of perishable foodstuffs and non-foodstuffs.

4.4 Where a gift is accepted with the permission of a Director or Head of Service but the gift is of no direct use to the Council, e.g. chocolates, alcohol, gift vouchers etc, it should be forwarded to the Chairman’s Officer in order that it can either be the subject of a raffle with the proceeds going to a charitable fund of the Chairman’s choosing or donated to a suitable charity. Where this happens, the employee who initially received the gift must complete a form to record the gift having been accepted and donated to the Chairman’s charity or another charity.

Page 56 of 61 232 4.5 The Chairman’s Officer will write to the donor to thank them for the gift and tell them that, as employees cannot accept gifts, their gift has been donated to the Chairman’s Charity. A copy of this letter will be sent to the employee who accepted or received the gift.

4.6 Where perishable gifts e.g. cakes, biscuits, flowers are received or accepted, whilst these remain the property of the Council and not the individual, they may be accepted and shared amongst the Service/Officer(s) as appropriate. Where this occurs the employee who initially received the gift must complete a form to record the gift having been accepted and shared around the relevant office.

Hospitality

4.7 Hospitality should in general be declined. Employees should never accept any hospitality without the consent of a Director or Head of Service.

4.8 The following are examples of what is generally ACCEPTABLE:

(i) A working meal provided to allow the parties to discuss or continue to discuss business. Employees are reminded they must not claim subsistence unless money has actually been expended by them on paying for their share of the meal or purchase of drinks. Employees should endeavour to pay their share of the cost where practicable: for example where the meal is taken in a café/restaurant;

(ii) An invitation from an established or prospective trading partner to a function that is part of a wider gathering e.g. conference lunches or dinners, where other local government employees connected with the service provided by the trading partner are also invited. However these should always be registered.

4.9 The following would never be acceptable:

(i) Holidays or free accommodation;

(ii) Offers or hotel vouchers, theatre tickets, free travel etc (this should be treated as a gift);

(iii) Tickets for football matches or other sporting events; and

(iv) Use of a company flat or hotel suite.

4.10 If you are unsure then you should contact the Council Solicitor or (in the case of employees) the Director or Head responsible for your service.

4.11 When a firm is participating in a tendering exercise or in a dispute with the Council about an existing contract then clearly offers of hospitality should be refused even if in normal times they could be acceptable.

5. The procedure for responding to offers of gifts or hospitality

5.1 The form must be completed as soon as the offer has been received. Employees must complete the form even if the offer is rejected. Page 57 of 61 233

5.2 Councillors must return the form to the Council Solicitor within 28 days from accepting the gift or hospitality.

5.3 Employees must not accept the gift or hospitality without the written permission of a Director or Head of Service. They must therefore complete the form and give it to the Director or Head responsible for their service. Once the Director or Head of Service has made a decision he or she will send copies of the form to the Council Solicitor and employee.

5.4 The Council Solicitor will ensure that everyone who offers a gift or hospitality will receive a letter drawing their attention to this policy.

5.5 The register of gifts and hospitality will be open to inspection by Audit & Risk Scrutiny Committee and by internal Audit.

6. What should I do if I think that someone isn’t following this procedure?

6.1 If you have a concern that any gifts or hospitality are being inappropriately accepted then you should raise it with the Council Solicitor or Internal Audit.

Page 58 of 61 234 REGISTRATION OF OFFERS OF GIFTS AND HOSPITALITY – COUNCILLORS

Councillors are required to register all hospitality received where the gift or hospitality:

• has an estimated value of £25 or more; and • is received in connection with the carrying out of the councillor or officer’s duties (including whilst representing the council on an outside body)

Registration must be completed within 28 days of receiving the gift or hospitality.

Councillors are also encouraged to voluntarily register all offers of gifts and hospitality – whether or not accepted.

Advice about what has to be registered is available from the Council Solicitor or one of the legal team.

Name of Councillor receiving offer of gift or hospitality:

Details of hospitality or gift received/or offered Date hospitality Name of person Description of Estimated value Have you or will or gift received or body giving what was you accept this the hospitality received gift or hospitality?*

Information given on this form will be used for the purpose of promoting and maintaining good standards of probity and will be placed on the register of interests which is available to the public.

Declaration

The information on this form is true and complete to the best of my knowledge.

Signed ______

Dated ______

Once complete this form should be sent to the Council Solicitor.

Page 59 of 61 235 REGISTRATION OF OFFERS OF GIFTS AND HOSPITALITY – EMPLOYEES

Council employees must not accept gifts or hospitality without the prior permission of a Director or Head of Service.

All offers of gifts and hospitality must be recorded on this form following receipt of advice from the Director or Head of Service, even if an employee has refused the offer or does not want to accept it.

The form must be completed before any gift or hospitality can be accepted.

Advice about what has to be registered is available from the Council Solicitor or one of the legal team.

Name of Employee receiving offer of gift or hospitality:

Details of hospitality or gift received/or offered Date hospitality or gift received

Name of person or body making the offer

Description of what has been offered Estimated value

Reason for offer

The current situation is: o This form is for information only because the offer has already been refused o The offer is of non-perishable food/drink/vouchers and I seek authority to donate it to the Chairman’s Charity or another charity o I request guidance on how to respond to the offer

Information given on this form will be used for the purpose of promoting and maintaining good standards of probity and may be made available to the public.

Declaration

The information on this form is true and complete to the best of my knowledge.

Signed ______Dated ______

Once complete this form should be sent to the Council Solicitor.

Page 60 of 61 236 THIS SECTION HAS TO BE COMPLETED BY THE DIRECTOR OR HEAD OF SERVICE RESPONSIBLE FOR THE EMPLOYEE’S SERVICE.

This section does not apply to gifts/hospitality being registered by a Councillor.

Permission to accept the YES/NO gift/hospitality granted ______Name Signed Date Date gift returned unaccepted

Name of persons notified of non- acceptance of gift or hospitality

Date gift returned unaccepted If gift donated to Chairman’s Charity or another charity, date on which passed to Chairman’s Officer Date on which the Chairman’s Officer sent a thank you letter informing person offering gift that it was being donated to charity (and sent a copy to the employee who was offered the gift)

Date form returned to officer notifying them of decision

The Director or Head of Service should send:

1 copy to employee 1 copy to the Council Solicitor 1 copy to Chairman’s Officer (if donated to Chairman’s Charity)

Page 61 of 61 237

238

Agenda Item No. 9(a) BASSETLAW DISTRICT COUNCIL

COUNCIL

25 June 2015

REPORT OF THE DIRECTOR OF REGENERATION AND NEIGHBOURHOODS

NEIGHBOURHOOD PLANS: DESIGNATION OF NEIGHBOURHOOD AREAS CARLTON-IN-LINDRICK AND SUTTON-CUM-LOUND

Cabinet Member: Regeneration Contact: Natalie Cockrell Ext: 5151

1. Public Interest Test

1.1 The author of this report, Natalie Cockrell, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To secure Council approval for the designation of Neighbourhood Areas for Carlton- in-Lindrick and Sutton-cum-Lound please see appended plans) for the purposes of producing a Neighbourhood Plan, as defined in the Neighbourhood Planning (General) Regulations 2012.

3. Neighbourhood Plans

3.1 As Members may be aware, the Localism Act was given Royal Assent on 15 November 2011. The Act makes provision for neighbourhoods to produce their own land use plans, in general conformity with the strategic policies in the development plan for the local area. In Parished areas it is only the Parish Council that can produce a plan, with different regulations applying to unparished areas. Neighbourhood Plans have the ability to promote more development in an area than that set out by the District Council (but cannot be used to block development proposals already set out in higher level plans) and will, for example, be able to choose where new development should go and have policies that state what it should look like.

3.2 Proposals must be consulted upon extensively, undergo independent Examination and then be put to a local referendum before they can be adopted as part of the statutory Development Plan for the District.

3.3 The Neighbourhood Planning (General) Regulations 2012 require a relevant body (e.g. a Parish Council) to make a request of the District Council for designation of the area that will be covered by that body’s Neighbourhood Plan. The District Council must, for a period of at least six weeks, then publicise such a request on its website and in any other manner that it deems appropriate to bring the request to the

239

attention of those who live, work or undertake business in the area that the Neighbourhood Plan will cover. The Council has now carried out this process for the areas noted above and has not received any responses to the publication of the notice.

3.4 Members should be aware that, to date, full council has already approved the neighbourhood areas for Sturton Ward, Shireoaks, Hayton, Harworth, Elkesley, Tuxford, Cuckney and Clarborough and Welahm.

3.5 In addition to the Parishes noted above, consultation has just finished on notice from Carlton in Lindrick and Sutton Cum Lound Parish Council’s that they wish to be the lead body for the production of the Neighbourhood Plan in there Parish Council Areas. The Areas proposed for the plan is appended to this report. No objections were received to any of the designation notices and one letter of support was received from Langtree Group PLC for the Carlton in Lindrick designation.

4. Implications a) For service users

A Council decision on this matter will give greater comfort to the Parishes concerned that their endeavours have Member support. b) Strategic & Policy

There is potential for conflict between the adopted Core Strategy and community aspirations where the latter are seeking to promote more development than is set out in the strategic policies of the local plan or to reduce it (which is not permitted under the Neighbourhood Planning guidelines). c) Financial - 16/433

There are no immediate financial implications arising from the report. Local Authorities have a legal obligation to assist (the level of assistance being at the discretion of the District Council) parish/town councils and neighbourhood forums to prepare plans. Any costs have been funded from the Regeneration and Investment Budget and through grants awarded to the Parish Council, to date, and any future budget implications will be identified through further reports to be brought to Cabinet as necessary.

As part of its aims to roll out Neighbourhood Planning across the country, DCLG announced in December 2012 the establishment of a grant scheme for Local Authorities to help them to meet the costs of supporting local communities with their plans. Local Authorities are able to bid into the scheme to secure a first payment of £5000, made following the designation of a neighbourhood area (recognising the officer time supporting and advising the community in taking forward a neighbourhood plan). A second payment of £5000 will be made when the local planning authority publicises the neighbourhood plan prior to examination and a third payment of £20,000 will be made on successful completion of the neighbourhood planning examination, reflecting the costs of paying for the examination and subsequent referendum. To date, £25,000 has been paid to the Council (n.b. Officers were also successful in securing £10,000 each for the Sturton Ward parishes, Elkesley, Shireoaks, Harworth, Tuxford from the Awards for All scheme).

240

d) Legal - Ref: 180/06/15

The report details statutory processes as set out in the Neighbourhood Planning (General) Regulations 2012. e) Human Resources

Immediate Human Resources implications arising from this report are the levels of commitment that Neighbourhood Planning is already requiring of a dedicated Officer in the Planning Policy team, which has been intensive at times over the last few months (and has included organisation of, and attendance at, consultation events; reviews of draft Plans; production of publicity material; organisation of advertisements; and attendance at numerous meetings). Parishes have been very appreciative of this level of commitment. f) Community Safety, Equalities, Environmental

There are no community safety, equalities or environmental implications arising from this report.

g) Whether this is a key decision and, if so, the reference number.

This is not a key decision.

5. Options, Risks and Reasons for Recommendations

5.1 There are two options available to Members:

5.2 First, to approve the Neighbourhood Area designations as per the maps appended. There are no obvious risks associated with this approval, as the areas follow natural administrative boundaries. This will enable the Town Council to progress with its Plan accordingly.

5.3 Second, not to approve the designations as per the maps appended. This will carry the risk that the nascent Plan of the community in question will be unable to progress to Examination.

6. Recommendation

6.1 It is recommended that Members approve the both the Carlton-in-Lindrick and Sutton-cum-Lound Neighbourhood Area designations, as per the maps.

241

242 Carlton in Lindrick

Parish Boundary

Agenda Item No. 10(a)

BASSETLAW DISTRICT COUNCIL

COUNCIL

25th June 2015

REPORT OF THE MONITORING OFFICER

MEMBERS’ CODE OF CONDUCT

Cabinet Member: Policy Contact: Ros Theakstone Ext: 3160

1. Public Interest Test

1.1 Ros Theakstone has determined in preparing this report that this matter is not confidential.

2. Purpose of the Report

2.1 To seek approval for a revision to the Members’ Code of Conduct as endorsed by the Audit and Risk Scrutiny Committee.

3. Background and Discussion

3.1 The Council adopted its Code of Conduct including a framework for establishing and maintaining a Register of Members’ Interests in July 2012 following introduction of the Localism Act 2011. In January 2013, the Council also approved arrangements for dealing with complaints and assigned certain responsibilities relating to Standards to the Audit and Risk Scrutiny Committee, a key part of which is to review the effectiveness of standards arrangements.

3.2 The Audit and Risk Scrutiny Committee has a specific responsibility:

To maintain oversight of the Council’s arrangements for dealing with standards complaints; and

To advise the Council on the adoption or revision of the Members’ Code of Conduct.

The annual review report of Code of Conduct complaints and standards arrangements was presented to Audit and Risk Scrutiny Committee on 11th June 2015 where Members were made aware some concerns about the robustness of the existing Code.

3.3 The starting point for consideration of any complaint involving an elected or co-opted member is its relevance to the adopted Code of Conduct. The Code should be understandable to all Members but more importantly make sense to a member of the public who has a right to expect the highest standards of behaviour from those

245

elected to public office. Complaints made over the past three years have tended to involve “disrespect” or “disrepute” pointing to the Nolan principle defining “leadership”.

3.4 Correct interpretation of the Code determines whether allegations can be dealt with informally or are serious enough to warrant an investigation i.e. are sufficient to point to a potential breach of the Council’s Code of Conduct. This is of key importance as any investigation may be costly, time-consuming and cause distress to both the complainant and subject Member.

3.5 During 2014/15 interpretation of the Code was tested by a third party as part of an externally commissioned investigation and Members were advised that it was made difficult as follows:

• Within “General Obligations” the Members’ Code of Conduct states:

You must act solely in the public interest and should never improperly confer an advantage or disadvantage on any person or act to gain financial or other material benefits for yourself, your family, a friend or close associate.

However, the act of attempting to do so even if the attempt may have failed is difficult to assess as attempt is not included in the Code.

The Standards for England Case Review 2010 states that the above applies to a member’s conduct when acting in an official capacity. It also includes when a Member acts, claims to act or gives the impression that they are acting as a representative of their authority.

• The Members’ Code of Conduct also states:

You must promote and support high standards of conduct when serving in your public post, in particular as characterised by the above requirements, by leadership and example.

This reflects the wording in Section 28 of the Act, and although neither legislation nor case law provides further guidance on what constitutes 'leadership', the Members’ Code of Conduct does not clarify what it might mean in any respect.

'Leadership' is one of the seven principles of public life. The Committee on Standards in Public Life guidance, under the subheading 'leadership', states:

Holders of public office should exhibit these principles in their own behaviour. They should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs.

Leadership is therefore a broad principle and includes promoting and supporting high standards. This should be made clear for both Members and members of the public.

3.6 The Members’ Code of Conduct reflects the minimum wording required as defined within the Localism 2011 and up until this case has never been tested with a complex complaint. The Code would therefore benefit from having the additional wording added as follows:

246

General Obligations

1. You must act solely in the public interest and should never improperly confer or attempt to confer an advantage or disadvantage on any person or act to (or to attempt to) gain financial or other material benefits for yourself, your family, a friend or close associate when you act, claim to act or give the impression that you are acting as a representative of the Council.

8. You must promote and support high standards of conduct when serving in your public post, in particular as characterised by the above requirements, by leadership and example. You must exhibit these principles in your own behaviour and should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs.

3.7 Members of the Audit and Risk Scrutiny Committee supported the proposed amendments which must in turn be approved by full Council to enable them to be put into effect.

4. Implications

a) For service users

The Council needs to ensure that members of the public have sufficient confidence that councillors endorse the principles of high standards of conduct.

b) Strategic & Policy

The Council is meeting its statutory responsibilities by adopting a Code of Conduct as defined within the regulations.

The Audit & Risk Scrutiny Committee is fulfilling its duty to advise on appropriate amendments to the Members’ Code of Conduct.

c) Financial - Ref: 16/102

There are no budgetary implications

c) Legal – Ref: 201/06/15

The Council has a duty to comply with the requirements of the Localism Act 2011 by promoting and maintaining high standards of conduct.

d) Human Resources

None directly from this report.

e) Community Safety, Equalities, Environmental

None arising.

g) Whether this is a key decision, and if so the reference number.

This is a not a key decision.

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5. Options, Risks and Reasons for Recommendations

5.1 The Council has a duty to comply with the requirements of the Localism Act 2011 and therefore a Code of Conduct ensures this duty is discharged.

5.2 The Audit and Risk Scrutiny Committee has a specific responsibility to advise on amendments to the Members’ Code of Conduct, should that need arise.

6. Recommendations

6.1 That the Members’ Code of Conduct, General Obligations items 1 and 8 are amended to reflect the changes detailed in paragraph 3.6.

Background Papers Location

Localism Act 2011 Legal Services

248

Agenda Item No. 10(b)

BASSETLAW DISTRICT COUNCIL

COUNCIL

25th JUNE 2015

REPORT OF THE DIRECTOR OF CORPORATE RESOURCES

AUDIT AND RISK SCRUTINY COMMITTEE - ANNUAL REVIEW OF WORK PROGRAMME 2014/15

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

1.1 The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To provide Members of the Council with an annual overview and review of the audit work programme of the Audit and Risk Scrutiny Committee during 2014/15, and to outline the work programme for the year 2015/16, in accordance with functional responsibilities of the Committee as detailed in Part 3 of the Council’s Constitution.

3. Background and Discussion

3.1 In May 2012, the Audit and Risk Scrutiny Committee replaced the former Audit and Performance Scrutiny Committee. In doing so, the new Committee took on the additional functions of Risk Management, and the oversight of the anti-fraud and anti- corruption arrangements. During 2014/15 it operated on a 5 meeting cycle.

3.2 In December 2014, Council approved a report that updated the Terms of Reference for the Audit and Risk Scrutiny Committee as follows:

Governance, Risk and Control

• To review the Council’s corporate governance arrangements against the good governance framework and consider annual governance reports and assurances. • To review the Annual Governance Statement prior to approval and consider whether it properly reflects the risk environment and supporting assurances, taking into account internal audit’s opinion on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control. • To consider the Council’s arrangements to secure value for money and review assurances and assessments on the effectiveness of these arrangements.

249 • To consider the Council’s framework of assurance and ensure that it adequately addresses the risks and priorities of the Council. • To monitor the effective development and operation of risk management in the Council. • To monitor progress in addressing risk-related issues reported to the Committee. • To consider reports on the effectiveness of internal controls and monitor the implementation of agreed actions. • To review the assessment of fraud risks and potential harm to the Council from fraud and corruption. • To monitor the counter-fraud strategy, actions and resources.

Internal Audit

• To approve the internal audit charter. • To review proposals made in relation to the appointment of external providers of internal audit services and to make recommendations. • To approve the risk-based internal audit plan, including internal audit’s resource requirements, the approach to using other sources of assurance and any work required to place reliance upon those other sources. • To approve significant interim changes to the risk-based internal audit plan and resource requirements. • To make appropriate enquiries of both management and the Head of Internal Audit to determine if there are any inappropriate scope or resource limitations. • To consider reports from the Head of Internal Audit on internal audit’s performance during the year, including the performance of external providers of internal audit services. These will include: o Updates on the work of internal audit including key findings, issues of concern and action in hand as a result of internal audit work. o Regular reports on the results of the Quality Assurance and Improvement Programme. o Reports on instances where the internal audit function does not conform to the Public Sector Internal Audit Standards and Local Government Application Note, considering whether the non- conformance is significant enough that it must be included in the Annual Governance Statement. • To consider the Head of Internal Audit’s annual report: o The statement of the level of conformance with the Public Sector Internal Audit Standards and Local Government Application Note and the results of the Quality Assurance and Improvement Programme that supports the statement – these will indicate the reliability of the conclusions of internal audit. o The opinion on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control together with the summary of the work supporting the opinion – these will assist the Committee in reviewing the Annual Governance Statement. • To consider summaries of specific internal audit reports as requested. • To receive reports outlining the action taken where the Head of Internal Audit has concluded that management has accepted a level of risk that may be unacceptable to the Council or there are concerns about progress with the implementation of agreed actions.

250 • To contribute to the Quality Assurance and Improvement Programme and in particular, to the external quality assessment of internal audit that takes place at least once every five years. • To consider a report on the effectiveness of internal audit to support the Annual Governance Statement, where required to do so by the Accounts and Audit (England) Regulations 2011. • To support the development of effective communication with the Head of Internal Audit.

External Audit

• To consider the external auditor’s annual letter, relevant reports, and the report to those charged with governance. • To consider specific reports as agreed with the external auditor. • To comment on the scope and depth of external audit work and to ensure it gives value for money. • To commission work from internal and external audit. • To advise and recommend on the effectiveness of relationships between external and internal audit and other inspection agencies or relevant bodies.

Financial Reporting

• To review the annual statement of accounts. Specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from the financial statements or from the audit that need to be brought to the attention of the Council. • To consider the external auditor’s report to those charged with governance on issues arising from the audit of the accounts.

Treasury Management

• To develop greater awareness and understanding of treasury matters among the Committee Members. • To review the treasury management policy and procedures to be satisfied that controls are satisfactory. • To receive regular reports on activities, issues and trends to support the Committee’s understanding of treasury management activities. • To review the treasury risk profile and adequacy of treasury risk management processes. • To review assurances on treasury management via internal audit, external audit, or other review.

Accountability Arrangements

• To report to those charged with governance on the Committee’s findings, conclusions and recommendations concerning the adequacy and effectiveness of their governance, risk management and internal control frameworks; financial reporting arrangements and internal and external audit functions. • To report to full council on a regular basis on the Committee’s performance in relation to the terms of reference and the effectiveness of the Committee in meeting its purpose.

251 Standards of Conduct

• To promote and maintain high standards of conduct by Members and Co- opted Members of the Council. • To advise and assist Parish Council(s) and Parish Councillors to maintain high standards of conduct and to make recommendations to Parish Councils on improving standards or on actions following a finding of failure by a Parish Councillor to comply with the Code of Conduct. • To conduct hearings on behalf of the Parish Council. • To advise the Council on the adoption or revision of the Members Code of Conduct. • To receive reports from the Monitoring Officer and assessing the operation and effectiveness of the Members Code of Conduct. The Monitoring Officer shall report the outcome of all complaints to the Committee including those complaints which failed the Initial Intake Test and Assessment Test. • To advise, train or arrange training for Members and Co-opted Members on matters relating to the Members’ Code of Conduct. • To hear and determine complaints about Members and Co-opted Members referred to it by the Monitoring Officer in respect of alleged breaches of the Member Code of Conduct. • To maintain oversight of the Council’s arrangements for dealing with standards complaints. • To inform Council and the Chief Executive of relevant issues arising from the determination of Code of Conduct complaints. • To grant dispensations after consultation with the Independent Person pursuant to S33(2) (b), (c) and (e) of the Localism Act 2011. • To hear and determine appeals against refusal to grant dispensations by the Monitoring Officer pursuant to S33(2)(a) and (d) of the Localism Act 2011.

3.3 During 2014/15, the Committee received and commented on the following:

• April 2014: o Baker Tilly – Internal Audit Progress Reports 2013/14 (9 reports). o Baker Tilly – Annual report on Internal Audit. o Strategic ICT Manager – Presentation - ICT Governance. o KPMG – Protecting the Public Purse. o Head of Finance & Property – Progress on the Action Plan determined by the Annual Governance Statement 2012/13.

• June 2014: o Baker Tilly – Internal Audit Strategy and Plan 2014/15 – 2016/17. o Head of Finance & Property – Budget Monitoring and Capital Programme Update Report to 31st March 2014. o Head of Finance & Property – Write-Offs Annual Report 2013/14. o Head of Finance & Property – Annual Fraud and Irregularities Report 2013/14. o Head of Finance & Property – Corporate Risk Management Quarter 4 2013/14. o Head of Finance & Property – Review of the Effectiveness of the System of Internal Audit for 2013/14. o Head of Finance & Property - Annual Governance Statement 2013/14. o Director of Corporate Resources - Local Code of Corporate Governance 2014/15.

252 o Director of Corporate Resources – Code of Conduct – End of Year Analysis.

• September 2014: o Town Centre Manager – Verbal Update – Markets Audit. o Baker Tilly – Internal Audit Progress Reports 2014/15 (3 reports). o Head of Finance & Property - Corporate Risk Management Quarter 1 2014/15. o Head of Finance & Property – Budget Monitoring and Capital Programme Update Report to 30th June 2014. o KPMG – Annual Audit Fee 2014/15.

• November 2014: o Head of Finance & Property – Budget Monitoring and Capital Programme Update Report to 30th September 2014. o KPMG – Annual Audit Letter 2013/14. o Sector – Presentation – Treasury Management. o Baker Tilly – Internal Audit Progress Reports 2014/15 (6 reports). o Head of Finance & Property - Corporate Risk Management Quarter 2 2014/15. o Head of Finance & Property – Budget and Policy Framework Procedure Rules.

• February 2015: o Head of Finance & Property – Budget Monitoring and Capital Programme Update Report to 31st December 2014. o Head of Finance & Property – General Fund Revenue Budget 2015/16 to 2017/18. o Head of Finance & Property – General Fund Capital Programme 2015/16 to 2019/20. o Head of Finance & Property – Treasury Management Policy and Strategy 2015/16 to 2017/18. o Head of Finance & Property – Capital Investment Strategy 2015/16 to 2019/20. o Head of Finance & Property – Property Asset Management Plan 2015/16 to 2019/20. o Head of Finance & Property - Corporate Risk Management Quarter 3 2014/15. o Baker Tilly – Internal Audit Progress Reports 2014/15 (15 reports). o KPMG – External Audit Plan 2014/15. o KPMG – Protecting the Public Purse Fraud Briefing. o KPMG – Certification of Grants and Returns 2013/14. o Head of Finance & Property – Robustness of Estimates and Adequacy of Reserves 2015/16.

3.4 In respect of Internal Audit reports, the Chair of this Committee and the Head of Finance and Property will meet with the relevant Portfolio Holder and the Manager(s) of the service concerned for all reports that have received a ‘red’ or ‘red/amber’ audit assurance level. Just for clarity a ‘red’ assurance level is defined as “the Authority cannot take assurance that the controls upon which the organisation relies to manage this risk are suitably designed, consistently applied or effective. Action needs to be taken to ensure the risk is managed.”

3.5 During 2014/15, there were three ‘red’ reports and three ‘red/amber’ reports.

253 Consequently the Chair held six of these special meetings to understand the reasons for the poor audit report.

3.6 The Work Programme for 2015/16 reflects a similar workload to that experienced during 2014/15.

4. Implications

a) Service Users

None from this report.

b) Strategic and Policy

The Audit and Risk Scrutiny Committee is tasked to undertake the functions of an Audit Committee as outlined in the Council’s Constitution.

c) Financial - Ref: 16/217

None from this report.

d) Human Resources

None from this report.

e) Legal - Ref: 196/06/15

The requirement to report to full Council ensures that the Committee can demonstrate how it has discharged its responsibilities in accordance with Constitutional requirements.

f) Community Safety, Equalities, Environmental

None from this report.

g) This is not a key decision.

5. Options, Risks and Reasons for Recommendations

5.1 The Council has an obligation to comply with statutory requirements and to ensure that the Audit and Risk Scrutiny Committee is fulfilling its duties and responsibilities.

6. Recommendations

6.1 The Council notes the content of the report.

Background Papers Location

Constitution Legal Services

254

Agenda Item No. 10(c)

BASSETLAW DISTRICT COUNCIL

COUNCIL

25th JUNE 2015

REPORT OF THE DIRECTOR OF CORPORATE RESOURCES

FINANCIAL OUTTURN 2014/15

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

To provide the Council with the attached report on the Financial Outturn 2014/15, this was reported to the Extraordinary Cabinet and Overview & Scrutiny Committee on 16th June 2015.

3. Background and Discussion

As per the attached report.

4. Implications

a) For service users

As per the attached report.

b) Strategic & Policy

As per the attached report.

c) Financial - Ref: 16/70

As per the attached report.

d) Legal – Ref: 152/06/15

As per the attached report.

e) Human Resources

255

As per the attached report.

f) Community Safety, Equalities, Environmental

As per the attached report.

g) This is Key Decision No. 503.

5. Options, Risks and Reasons for Recommendations

As per the attached report.

6. Recommendations

6.1 That Council notes the Financial Outturn 2014/15 report, and takes into consideration any comments made at the Extraordinary Cabinet and the Overview & Scrutiny Committee of 16th June 2015.

6.2 That Council approves the capital financing proposals contained within that report.

6.3 That Council notes any comments made by Cabinet in relation to the Annual Report on Treasury Management Activity.

6.4 That Council considers and approves the 2014/15 unaudited Statement of Accounts, and agrees to them being submitted to the external auditor (KPMG) for audit and certification.

Background Papers Location Cabinet Report and associated papers Head of Finance & Property’s Office

256

Agenda Item No. 3(a)

BASSETLAW DISTRICT COUNCIL

EXTRAORDINARY CABINET

16TH JUNE 2015

REPORT OF DIRECTOR OF CORPORATE RESOURCES

FINANCIAL OUTTURN 2014/15

Cabinet Member: Finance Contact: Mike Hill Ext: 3174

1. Public Interest Test

1.1 The author of this report, Mike Hill, has determined that the report is not confidential.

2. Purpose of the Report

2.1 To present to Members the 2014/15 financial outturn position on the Council’s revenue and capital budgets, including:

• General Fund Revenue; • Housing Revenue Account; • Capital Programme; • Provisions and Impaired Estimates on Debtors; • Usable Reserves; • Collection Fund; • Balance Sheet; • Treasury Management.

2.2 This report provides Members with a summary of actual income and expenditure compared to the revised budget, and how any surpluses/deficits have been allocated to/from reserves.

2.3 To seek Cabinet approval for the capital financing arrangements for 2014/15.

2.4 To seek Cabinet approval for the proposed capital budget reprofiling carry forwards into 2015/16.

2.5 To seek Cabinet approval for the movement in Provisions and Impaired Estimates on Debtors, and the creation of additional Usable Reserves.

2.6 To seek Cabinet approval for the individual contributions to, and withdrawals from, Usable Reserves.

2.7 To present Cabinet with the Annual Report on Treasury Management Activity for 2014/15, and to demonstrate how the Treasury Management activity links to

257 the Treasury Management Strategy, including the Prudential Indicators, which were approved by full Council on 6th March 2014.

3. Background and Discussion

Basis of Final Accounts

3.1 The final accounts are presented in accordance with the standards set out by the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Under the Accounts and Audit (England) Regulations 2011, the Council no longer has a statutory duty to report the unaudited Annual Statement of Accounts by the end of June 2015, the Regulations only require the Section 151 Officer to sign and certify that they present a true and fair view of the financial position of the Council. However, in the interests of transparency and good governance, these are still being presented to this meeting and referred to full Council for information.

3.2 The format of the Comprehensive Income and Expenditure Statement in the Statement of Accounts differs from that used in the budget setting and budget monitoring processes of this Council. This report therefore compares spending with budgets on the Management Accounting basis applied for budgetary control and reported to Cabinet and Scrutiny throughout the financial year in accordance with the Regulations.

3.3 There is, however, a reconciliation statement between the Management Accounting budgetary control basis and the Net Cost of Services basis in the Comprehensive Income and Expenditure Statement, and this is included as a note to the Statement of Accounts.

Changes to Accounting Standards and Practices

3.4 The changes introduced by the 2014/15 Code are minor in nature this year, but include:

• Revisions to the presentation of the financial statements; • New standards in respect of consolidating subsidiaries into the Statements; • Other minor adjustments that do not affect district councils.

Overview of General Fund Revenue Outturn for 2014/15

3.5 With reference to the ‘Variance’ column in the table below, the accounts show an underspend of (£0.734m) on service budgets, with a total underspend variance of (£0.237m) for the Council as follows:

Budget Outturn Variance £m £m £m Chief Executive Department 0.236 0.210 (0.026) Corporate Management 0.656 0.637 (0.019) Corporate Services 1.367 1.449 0.082 Economic Regeneration 1.270 1.432 0.162 Finance & Property 0.324 0.157 (0.167) Housing 0.606 0.617 0.011 Neighbourhoods 7.517 7.243 (0.274) Planning & Building Control 1.138 0.675 (0.463) Revenue Services 1.021 0.981 (0.040)

258 Net Cost of Services 14.135 13.401 (0.734) Other Budgets 8.973 8.849 (0.124) Net Cost of Council Expenditure 23.108 22.250 (0.858) Before Movements in Reserves Transfer to/(from) Usable (2.783) (2.151) 0.632 Transfer to/(from) Unusable (1.768) (1.779) (0.011) Transfer to/(from) General 0.035 0.272 0.237 Total Council Net Expenditure 18.592 18.592 0

3.6 The actual outturn for the year (the ‘Outturn’ column in the table above) is a net transfer to the General Reserve of (£0.272m), which increases the balance from £1.082m at 1st April 2014 to £1.354m at 31st March 2015.

3.7 As can be seen from the table above there are some significant variances in service areas and other budgets. Looking at the underlying trends, the detailed movements can be further summarised below, and give Members an indication of the issues that have caused these variances:

Variance £m Underspend on Employees (0.260) Pension Strain & Redundancy 0.179 Over-achievement of Fees & Charges Income (0.370) Write-back of Worksop Leisure Centre Gas Provision (0.081) VAT Refund Income (0.166) Repudiation (net) of Insurance Claims (0.023) Other minor underspends within services (0.013) Net Cost of Services: (0.734) Contingency Budgets Not Required in Year (0.124) Net Cost of Council Expenditure: (0.858) Transfer to/(from) Usable & Unusable Reserves 0.621 Transfer (to)/from General Reserve (0.237)

3.8 The level of underspending on Service Budgets managed by the Heads of Service is (£0.734m), and represents (5.2%) of the total Service Budgets overall. Appendix A provides a commentary on the detailed variances that make up this net underspend and the other movements detailed above.

Carry Forwards

3.9 Previous years have seen officers requesting carry forwards of underspends that relate to the timing of payments that have extended past the year-end date of 31st March in year. However, given the financial constraints that the Council is now working under, no carry forwards are being considered this year.

3.10 Any unspent grants are dealt with separately, and are transferred to the balance sheet for either repayment or expenditure in the following year dependent upon its terms and conditions.

259 3.11 The Council has set aside a Corporate Contingency for 2015/16 which can be used as a form of emergency fund should any financial difficulties arise. However, approval to use this budget will be through a separate Cabinet report or Delegated Decision.

Overview of Housing Revenue Account Outturn for 2014/15

3.12 With reference to the ‘Variance’ column in the table below, the accounts show an underspend variance against the approved budget of (£0.129m) for the HRA as follows:

Budget Outturn Variance £m £m £m A1 Management Fee 11.852 11.852 0 Council Managed Expenditure 6.132 5.900 (0.232) Revaluation of non-current assets (6.619) (6.619) 0 Income (27.134) (27.173) (0.039) Net Cost of HRA Services (15.769) (16.040) (0.271) Other Adjustments 15.793 15.936 0.143 Net Cost of HRA Services Before 0.024 (0.104) (0.128) Movements in Reserves Transfer to/(from) Usable Reserves (0.034) (0.034) 0 Transfer to/(from) HRA Reserve 0.010 0.138 0.128 Total 0 0 0

3.13 A more detailed commentary of the variances is provided at Appendix B.

3.14 The actual outturn for the year (the ‘Outturn column in the table above) is a net transfer to the HRA Reserve of £0.138m, which increases the balance from £1.346m at 1st April 2014 to £1.484m at 31st March 2015. This is £0.184m above the minimum prudent level of HRA balances approved for 2014/15 of £1.3m (which is based on an average figure resulting from the combination of £200 per property, 5% of dwelling income, and 5% of gross expenditure).

Capital Outturn 2014/15

3.15 The Cabinet approves all variations to the Capital Programme, for which the revised budget approved at the 12th February 2015 Cabinet meeting for 2014/15 was £15.590m.

3.16 During February 2015, a delegated officer decision was approved for the provision of affordable housing at Bridgegate, Retford. This approved a £0.075m spend of Section 106 monies towards this project, which increased the overall capital budget to £15.665m.

3.17 In summary, the accounts show lower levels of expenditure of (£2.247m) or 14% when compared against the approved revised capital programme budget as follows:

260 General Housing REFCUS* Total Investment Investment Programme Programme £m £m £m £m Approved Programme 4.616 10.947 2.654 18.217 Approvals/Adjustments in 0.080 1.179 (0.012) 1.247 14/15 Year Carry Forwards to 15/16 (0.805) (1.784) (1.210) (3.799) Approved in Year Revised Programme 3.891 10.342 1.432 15.665 Outturn 2.933 9.546 0.939 13.418 Variance overspend/ (0.958) (0.796) (0.493) (2.247) (underspend) * REFCUS relates to Revenue Expenditure Funded from Capital Under Statute i.e. expenditure on non-Council-owned assets e.g. disabled facilities grants.

3.18 Capital spending in the year totalled £13.418m, and this has been funded by a combination of borrowing, external grants and contributions, capital receipts, Major Repairs Reserve, and revenue contributions. Cabinet is requested to approve the capital financing proposals as outlined in Appendix C and summarised below:

• Borrowing £2.393m • External Grants & Contributions £1.547m • Capital Receipts £2.375m • Major Repairs Reserve £7.067m • Revenue Contributions £0.036m • Total £13.418m

3.19 The pace of delivery on the Capital Programme has been maintained during the year, resulting in an achievement of 86% spend of the revised programme budget. However, as with all financial programmes, there will always be an element of variation on capital schemes at the end of the financial year, and Cabinet is requested to approve the reprofiling of capital schemes totalling £2.211m as detailed in Appendix D. This is because the majority of the schemes are already committed, with the funding for these held in the Council’s reserves. For clarity, where a scheme has been completed, the balance will not be carried forward.

Provisions against Future Events

3.20 Provisions are made when an event has taken place that gives the Council an obligation that probably requires settlement, can be reasonably estimated, but where the timing of the payment is uncertain. Good practice requires that any movements in a Provision should be approved separately by Cabinet, and these are as follows:

Balance Movement Actual Description B/Fwd in Year Balance 1.4.14 31.3.15 £m £m £m General Fund – Provisions Insurance Claims 0.229 (0.076) 0.153 Land Charges Search Fees 0.126 (0.059) 0.067 Municipal Mutual Insurance 0.013 0 0.013

261 Worksop LC Gas 0.247 (0.081) 0.166 Accumulated Absences 0.009 0.058 0.067 Business Rates Appeals 0.898 0.807 1.705 Kilton Forest Golf Club Utilities 0.008 0 0.008 Glitnir Exchange Rate 0.036 (0.036) 0 Fluctuation Total: 1.566 0.613 2.179 Housing Revenue Account – Provisions Insurance Claims 0.032 (0.032) 0 Municipal Mutual Insurance 0.032 0 0.032 Total: 0.064 (0.032) 0.032

• The insurance provisions for both General Fund and the HRA of £0.153m and £0m respectively, relate to the potential liabilities that the Council will incur if all the claims outstanding are upheld against the Council (this amount is the total of the insurance excesses only, as the insurance company pays for all costs above the excess). These provisions relate to the value of claims made against the Council that are still outstanding as at 31st March 2015.

• The land charges provision of £0.067m is necessary to meet possible retrospective claims for the recovery of fees for personal searches of the local land charges register under the Environmental Information Regulations.

• The Council paid a levy of 15% to the failed Municipal Mutual Insurance Ltd (MMI) as imposed under the scheme of arrangement between the Council and MMI, on 20th January 2014. The Administrators have indicated that a further 13% levy may be imposed on the Council, and the provisions for both General Fund and the HRA (£0.013m and £0.032m respectively) reflect this position.

• The Worksop Leisure Centre gas provision made at the end of 2011/12 of £0.274m relates to the period between January 2008 and August 2011 when the gas meter was unregistered with a supplier. The Council has been invoiced for the supply of gas to the leisure centre since September 2011 (when it was registered), however a provision still needs to remain for a six year period to mitigate against the possibility that the Council will be charged for this earlier period. During the 2014/15 financial year, the Council was able to write back £0.081m as part of the statutory six year period has elapsed.

• The accumulated absences provision of £0.067m is part of the IFRS requirements whereby all amounts of annual leave untaken at 31st March need to be accounting for in the relevant financial year. This is an accounting entry only, and does not represent sums that can be spent on services.

• The provision for Business Rate appeals of £1.705m sets aside sums in relation to the Council’s 40% share of the anticipated successful Business Rate appeals. The full liability is expected to be circa £4.3m, but the difference is to be met by central government (50%), Nottinghamshire County Council (9%) and the Nottinghamshire Fire & Rescue Authority (1%).

262 • The provision for Kilton Forest Golf Club utilities of £0.008m sets aside sums for a liability that could arise regarding invoices for electricity at Kilton Forest Golf Course. The utility company has failed to invoice the Council correctly, and hence the Council needs to set aside monies to pay for these if they arise.

• The provision for Glitinir Exchange Rate fluctuation of £0.036m was in respect of an error in calculation made by Glitner Icelandic bank when paying a dividend to bodies affected by the collapse of the bank. The sum due has now been repaid to Glitner as part of a nationwide settlement, and this provision is now fully utilised.

3.21 There have been no new provisions created during 2014/15.

Impaired Estimates on Debtors

3.22 Impaired Estimates on Debtors is an estimation of the amount that will remain uncollectable after a certain time period and will require write-off in the future accounts of the Council. They are calculated on the age and amounts of debt owed to the Council based on a hierarchical percentage i.e. the older the debt the greater the likelihood of non-collection. Good practice requires that movements in the Impaired Estimates on Debtors should be approved separately by Cabinet, and these are as follows:

Balance Movement Actual Description B/Fwd in Year Balance 1.4.14 31.3.15 £m £m £m General Fund – Impaired Estimates on Debtors Sundry Debts 0.134 (0.045) 0.089 Housing Benefit Debts 0.573 0.427 1.000 Council Tax Court Costs 0.221 (0.001) 0.220 Business Rates Court Costs 0.004 0 0.004 Total: 0.932 0.381 1.313 Housing Revenue Account – Impaired Estimates on Debtors Rent Debts 0.339 0.012 0.351 Rent Court Costs 0.036 0.006 0.042 Non-Rent Debts 0.014 (0.012) 0.002 Total: 0.389 0.006 0.395

• The General Fund sundry debt position has worsened by 20% from £0.489m at 1st April 2014 to £0.588m at 31st March 2015. However, due to the age profile of debts outstanding, the impairment has actually decreased by £0.045m in year.

• The Housing Benefit debt position has worsened by 24% from £1.595m at 1st April 2014 to £1.981m at 31st March 2015, and consequently the impairment has increased significantly by £0.427m in year. The reason for this increase in debt is due to new initiatives launched in September 2014 by the Department for Work & Pensions and HMRC to data-match information

263 held between the two organisations with that held on Local authority Housing Benefit claims. This has resulted in many claims being re-assessed or cancelled because changes in earnings and private pensions have not been notified to the Council. The Council has also responded by applying for additional funding to re-instate targeted reviews on claims and to step up the investigation and recovery action using modern tracing techniques. However, due to the uncertainty of the impact of Universal Credit and other Welfare Reforms on the ability to fully recover these debts, the Council has increased the bad debt provision in line with the expected increases.

• The Council Tax court cost debt position has worsened by 16% from £0.432m at 1st April 2014 to £0.500m at 31st March 2015, due in the main to the impact of the local council tax reduction scheme. However, due to the age profile of debts outstanding, the impairment has actually decreased by £0.001m in year.

• The Business Rates court cost debt position has improved by 8% from £0.013m at 1st April 2014 to £0.012m at 31st March 2015. However, due to the age profile of debts outstanding, the impairment has remained the same.

• The Housing Revenue Account rent debt position has worsened by 7% from £0.533m at 1st April 2014 to £0.572m at 31st March 2015. In order to combat this, the impairment has increased by £0.012m in year.

• The Housing Revenue Account court cost debt position has worsened by 11% from £0.045m at 1st April 2014 to £0.050m at 31st March 2015. In order to combat this, the impairment has increased by £0.006m in year.

• The Housing Revenue Account non-rent debt position has worsened by 43% from £0.014m at 1st April 2014 to £0.020m at 31st March 2015. However, due to the age profile of debts outstanding, the impairment has actually decreased by £0.012m in year.

Usable Capital Reserves

3.23 A Reserve is created for a specific future purpose or to cover contingencies. In accordance with the Code, these Usable Reserves must be separately identified between those that are retained for Capital purposes, and those that are retained for revenue purposes. Again, good practice dictates that any movements in existing reserves, or the creation of any new reserves, must be approved by Cabinet.

3.24 Capital reserves are used to fund the approved capital programme within year, and the position as at 31st March 2015 is as follows:

Balance Contribs Use in Actual Description B/Fwd in Year Year Balance 1.4.14 31.3.15 £m £m £m £m Capital-General Fund Usable Capital Receipts - 3.381 0.210 (1.335) 2.256 General Fund* Capital Grants Unapplied 0.140 0.285 (0.071) 0.354 Capital-HRA Usable Capital Receipts – 0.001 0 (0.105) (0.104)

264 Disabled Facilities Grants* Usable Capital Receipts – 0.223 1.076 (1.299) 0 Housing Revenue Account* Usable Capital Receipts – 0.131 0 (0.131) 0 Right to Buys* Major Repairs Reserve – 1.352 6.583 (7.067) 0.868 Capital Major Repairs Reserve – 0.872 0.513 0 1.385 New Build Major Repairs Reserve – 1.738 1.750 (3.273) 0.215 Repayment of Debt Total 7.838 10.417 (13.281) 4.974 *Note that the majority of the usable capital receipts are already earmarked to finance the 2015-20 Capital Programme.

Usable Revenue Reserves

3.25 Revenue reserves are used to fund anything that is not capital in nature. They cover such areas as donations, external grants and contributions for future service provision, or specific sums of money held for a specific purpose.

3.26 There are two new revenue reserves that require approval as follows:

• Business Rates Volatility Reserve of £0.200m - The new business rates regime requires an estimate to be made in the January of the preceding financial year as to the value of the surplus or deficit on the business rate account at the end of March, fourteen months later. This is clearly subject to a number of estimates and complex calculations that are vulnerable to change, mainly due to the volatility of the business rates appeals process. It is therefore prudent to create a reserve to protect the Council against any major fluctuations in business rate yield in any single year.

• General Fund Earmarked Reserve (additional £0.187m) – this was established in 2013/14 with a number of short term earmarked reserves being created. For 2014/15 a number of new reserves have been set up to support specific projects as follows:

 Tenancy Bonds of £0.014m – this is a bond guarantee scheme which enables future private sector tenants to rent properties and prevent homelessness on the grounds that the Council guarantees the upfront deposit in circumstances where the future tenant does not have the means to pay for it.

 Visitor Economy of £0.040m – an annual contribution towards an overall £0.2m reserve to deliver a new visitor economy approach which focusses on work developed through the North Nottinghamshire story, culminating in the Mayflower Pilgrims celebrations in 2020.

 Community Infrastructure Levy of £0.008m – for the purchase of software to monitor CIL receipts submitted to the Council. This is paid for from CIL admin fees already received.

 Regeneration Feasibility of £0.050m – The Regeneration and Investment Team currently have a small funding pot to undertake development work aimed at bringing forward development sites within

265 the District. This money is used to simplify the process for bringing sites forward and may include activities such as supporting pre- application submissions, undertaking feasibility studies and preparing development briefs for sites. A significant proportion of this money goes towards the costs of Council services e.g. planning fees, so it is in effect, recycled within the Council. In future years it is proposed that this funding is refreshed using any over-achievement against the planning income budgets.

 Litter Bins/Litter Clean-up of £0.016m – the Council experiences problems with the amount of litter and fly tipping throughout the district, which is replicated across the country according to recent press coverage. In order to better manage this situation, this money will be spent on better litter bin provision in laybys across the district, which involves wheeled bins that can be emptied using a vehicle instead of by manual handling. The money will also be spent on tackling as a separate issue the litter and fly tipping along the part of the A1 which runs through Bassetlaw and the A57 bypass.

 Human Resources temporary cover of £0.006m – due to the implementation of the new HR system, additional admin resources have been required to support the team during April and May 2015.

 System development of £0.035m – the Council has recently implemented a new financial management system which will deliver a number of efficiency savings in the longer term if the additional functionality is suitably developed.

 Cemetery headstones of £0.010m – a number of headstones are currently supported by wooden stakes which require regular attention and inspection. This money will be used to repair any dangerous structures and safely secure them back in place.

 Central Avenue Car park lease of £0.008m – following a rent review, the costs of the lease have significantly increased. Therefore, in order to terminate the lease, the Council must reinstate the site back to its pre-lease condition before it can be surrendered.

Balance Actual Contribs Use in Description B/Fwd Balance in Year Year 1.4.14 31.3.15 £m £m £m £m Revenue-General Fund General Fund Working 1.000 0 0 1.000 Balance General Fund Reserve 0.082 0.272 0 0.354 Job Evaluation 0.735 0 0 0.735 Treasury Management 0.429 0 (0.051) 0.378 Internal Insurance Reserve 0.300 0 0 0.300 Developers Contributions 0.223 0.003 (0.035) 0.191 Unapplied Donations 0.040 0 (0.004) 0.036 Revenue Grants & 0.101 0.163 (0.082) 0.182 Contributions Unapplied

266 Pension Strain 0.020 0.200 (0.020) 0.200 High Street Innovation Fund 0.045 0 0 0.045 Local Authority Mortgage 0.008 0.015 0 0.023 Scheme Default Retained Business Rates 2.512 0 (3.467) (0.955) Reserve Business Rates Pooling 0.006 0.807 0 0.813 Reserve General Fund Earmarked 0.352 0.187 (0.067) 0.472 Reserve Business Rates Volatility 0 0.200 0 0.200 Reserve Total General Fund 5.853 1.847 (3.726) 3.974 Revenue-HRA HRA Working Balance 1.000 0 0 1.000 HRA Reserve 0.346 0.138 0 0.484 Grants & Contributions 0.034 0 (0.034) 0 Unapplied Total HRA 1.380 0.138 (0.034) 1.484

The Collection Fund 2014/15

3.27 The Collection Fund accounts for the income from the collection of Council Taxes and Business Rates, and their subsequent disbursement to local authority preceptors and central government.

3.28 The in-year surplus on the Council Tax account was £0.466m, which increased the overall balance from a surplus of £1.163m at 1st April 2014 to a £1.629m surplus at 31st March 2015. A surplus of £1.0m was declared in January 2015 which contributes towards the 2015/16 budgets.

3.29 The Code now prescribes that the Statement of Accounts only show the element of Council Tax that relates to Bassetlaw District Council. In this regard, the share of the Council Tax surplus that relates to Bassetlaw District Council as at 31st March 2015 is £0.181m.

3.30 April 2013 saw the introduction of the new Business Rates Retention Scheme. The in-year surplus on the Collection Fund for business rates was £12.924m, due to the introduction of a new power station within the district which was back-dated to previous years (£5.3m for 2014/15 and £4.3m for previous years). An estimated surplus of £1.831m was declared in January 2015 in respect of the final 2014/15 year-end position.

3.31 The Code prescribes that the Statement of Accounts only show the element of business rates that related to Bassetlaw District Council. In this regard, the share of the business rates surplus that relates to Bassetlaw District Council as at 31st March 2015 is £2.657m.

Pensions

3.32 The details regarding the Council’s share of the Nottinghamshire County Council Pension Fund are provided for Members consideration at Appendix E.

3.33 Barnett Waddingham are the Pension Fund’s appointed Actuary, and their report sets out the assumptions used to prepare the IAS19 pension figures

267 reported in Bassetlaw’s accounts. It is therefore best practice to consider these assumptions prior to agreeing their use and inclusion in the Statement of Accounts for 2014/15.

The Balance Sheet at 31st March 2015

3.34 Consideration of the Council’s Balance Sheet does not feature significantly in budget setting and monitoring, and yet if not managed and reviewed correctly, a number of balances may be hidden that could have a major impact on the revenue outturn in any one year. Balance Sheet valuation and management is at the heart of the changes being driven by the International Financial Reporting Standards, and it is therefore important that in reviewing the Final Accounts, due consideration is given to the main features of the Balance Sheet and year-to-year changes as follows:

3.35 The significant movements on the Balance Sheet that are worthy of note are:

• Cash and Cash Equivalents have increased by £9.4m to £10.1m due to the additional business rates received from the new power station;

• Short Term Borrowings have decreased by £7.0m to £0.5m due to the repayment of long term and short term borrowings in year;

• Short Term Creditors have increased by £10.1m to £13.8m again mainly due to the business rates from the new power station, which have to be redistributed to central government and the Nottinghamshire Business Rate Pool;

• The Council’s Pensions Liability has increased by £12.1m to £57.0m, due to the Actuary changing their financial assumptions i.e. the Council’s share of the Pension Scheme is funded at a lower level than it was a year ago, mainly due to a change in the interest and discount rate assumptions made by the Actuary, coupled with the impact of the financial markets on gilt and share prices. It should be noted that all of the Nottinghamshire District Councils have experienced similar increases this year, not just Bassetlaw.

Treasury Management Outturn Report

3.36 Under the Treasury Management Code of Practice an Annual outturn report is required to be presented to Council to detail and explain activities in the year. The report is presented here for information at Appendix F, and it includes the Prudential Indicators that the Council is required to report and monitor.

3.37 There are no issues to highlight to Members on these indicators.

4. Implications

a) For service users

None directly from this report, however the amount of revenue and capital resources available has a direct impact on service delivery, and the success of the Treasury Management function has a direct impact on the availability of resources to fund that service delivery.

268

b) Strategic & Policy

The revenue budgets and Capital Programme align with the Council’s Corporate Plan. The report on Treasury Management activity complies with the approved policies within the Treasury Management Strategy 2014/15.

c) Financial - Ref: 16/70

All of the financial implications are set out in the body of the report.

With regard to the revenue outturn, the underspend of £0.272m represents a variance of 1.5% on the overall General Fund budget.

With regard to capital, the majority of schemes that are showing an underspend will be carried forward, and the remaining budgets spent in 2015/16. Any savings on projects will be assessed and used to meet additional demands during 2015/16, or to fund the Council’s Capital Programme in future years.

d) Legal – Ref: 152/06/15

As contained within the body of this report.

e) Human Resources

None from this report.

f) Community Safety, Equalities, Environmental

None from this report.

g) This is Key Decision No. 503.

5 Options, Risks and Reasons for Recommendations

5.1 Statement of Accounts 2014/15: The unaudited Statement of Accounts for 2014/15 will be presented to Council on 25th June 2015 for consideration and approval and onward submission to the external auditor (KPMG) for audit and certification. Should the Council not approve the Statement of Accounts by 30th June there would be a serious impact on the Council’s accountability, it’s reputation, and on it’s standing nationally and locally.

5.2 Revenue Expenditure 2014/15: There are no options for Members to consider as the outturn represents the final position at the end of the financial year. Due consideration needs to be given to the ongoing effects of any reported in-year service overspends on the 2015/16 budgets, and early action is essential to mitigate further impacts on General Fund balances.

5.3 Capital Expenditure and Financing 2014/15: There are no options for Members to consider as the financing is in accordance with approvals already obtained. The reprofiling on the

269 Capital Programme may present a challenge to the Council’s capacity to deliver the full programme of planned works in 2015/16.

5.4 Treasury Management 2014/15: There are no options for Members to consider at this stage since past performance is being reported. Treasury Management is an important Council function since it deals with large value money transactions. The potential risk in this area is very high, however the Council has in place sound systems of financial control to minimise these risks. These controls are reviewed on an annual basis in order to provide the assurance that risk is being minimised. Additionally, by monitoring the Prudential Indicators, this also serves to minimise the risk in this area.

6. Recommendations

6.1 That Cabinet approves the final outturn of revenue and capital spending for 2014/15.

6.2 That Cabinet approves the capital financing proposals as set out in Appendix C, and that these are referred to Council on 25th June 2015 and thereafter to the external auditors as part of the 2014/15 Statement of Accounts.

6.3 Cabinet approves that the net variations of £2.211m not spent in 2014/15 on the Capital Programme be re-profiled and carried forward into 2015/16.

6.4 That the movement in Provisions and Impaired Estimates on Debtors be approved.

6.5 That the creation of a new Business Rates Volatility Reserve of £0.2m, and the additions to the General Fund Earmarked Reserve of £0.187m be approved.

6.6 That the individual contributions to, and withdrawals from, the revenue and capital Usable Reserves be approved.

6.7 That Cabinet approve the contents of the Pension Fund Actuary report, and approve the proposed assumptions to be used in the IAS19 pensions report for inclusion in the 2014/15 Statement of Accounts.

6.8 That Cabinet receives the Annual Report on Treasury Management Activity and comments as appropriate for referral onto the Council for information, as required by the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management.

6.9 That Members note that the Treasury Management activities are consistent with the objectives identified in the Treasury Management Strategy for 2014/15.

Background Papers Location Capital Final Accounts 2014/15 files. Accountancy Office Treasury Management Strategy 2014/15 Accountancy Office to 2016/17. SOA files and working papers 2014/15 Accountancy Office TASK reports.

270 APPENDIX A

GENERAL FUND REVENUE OUTTURN VARIANCES

Description Variance from Explanation adjusted Budget £'000

Chief Executive Department Employees across all Service (12) Saving due to a vacancy. Areas Major Grants (13) (£11k) saving due to the Notts Wildlife Trust Contract not being renewed plus a (£2k) underspend on Community Councillor Grants. Other Minor Variances (1) TOTAL VARIANCES (26)

Corporate Management Corporate Finance (14) Savings on pension recharges from NCC. Other Minor Variances (5) TOTAL VARIANCES (19)

Corporate Services Employees across all Service 111 £58k Redundancy costs and £48k Pension Strain, £5k other. Areas Land Charges (17) (£29k) overachieved income offset by £12k pressure on Search and Notice Fees.

Revenues & Customer Sms 25 Pressure on General Fund Recharge to the HRA.

Democratic Representation & (9) Saving on Corporate Meetings Internet Subscription. Support Elections (73) (£47k) Recovery of Polling Clerk and Presiding Officer costs (paid through Payroll for first time). (£26k) saving on Postage as the Internal Mail Room was used in preference to external providers. Shopmobility (17) (£8k) overachieved Income, (£5k) saving on Equipment costs and (£4k) saving on Transport costs. Legal Services (10) Overachieved Income. General Administration & 79 Under-achievement of Print & Design Unit Income. Support Other Minor Variances (7) TOTAL VARIANCES 82

Economic Regeneration Employees across all Service 57 £25k pressure relates to Grants (Music Project, Leader & Invest in Bassetlaw) which Areas is due to the profiled spend differing to the actual spend. £17k relates to the TIC's (of which £10k is a result of redundancy payments). £15k is a pressure on Markets due to protected contracts and Agency to cover sickness. Town Centres 21 Additional expenditure has been incurred to comply with current legislation on holding external events. CCTV 30 An amount of £30k was originally going to be recovered from The Trust, however it has now been agreed that this income will not be recovered and can be spent elsewhere within The Trust, plus there are other minor over spends. Economic Development 13 Sheffield City Region is reporting a pressure of £35k due to a loan being converted to a grant, there is a saving of (£10k) on the Turbine, there is also a (£7k) saving on Print Unit jobs as well as (£5k) other minor variances. Markets & Fairs 50 Insurance Provisions of £15k, under-achievement of income of £35k due to unfavourable weather conditions. Other Minor Variances (9) TOTAL VARIANCES 162

Finance & Property Employees across all Service (65) Deleted post in Sustainability, deleted post in Car Parks & an underspend on Areas Procurement due to a lower number of contributions to the shared service scheme than anticipated. Estates (27) (£16k) estimated additional income due to property occupation being higher than anticipated. £13k pressure due to insurance claim relating to a previous year & recovered amounts of (£24k) for Aurora Wellbeing. Parking Services (110) (£76k) Sundry fees & Charges over-achievement of income, (£34k) surplus on parking income from Notts parking partnership.

271 APPENDIX A

GENERAL FUND REVENUE OUTTURN VARIANCES

Description Variance from Explanation adjusted Budget £'000

Procurement 49 (£14k) saving on A1 housing recharges, £35k income from partners not achieved, £28k overspend on the trading account to be recovered in future years.

Debt Recovery (11) Recovery of Court Costs - Proactive approach to business rate debt has reduced the number of cases referred to court for action. Other Minor Variances (3) TOTAL VARIANCES (167)

Housing Employees across all Service (30) Saving is due to a vacancy. Areas Private Sector Housing 43 The admin fee (Agency fees) income has not been achieved against the budget due Renewal to it being directly linked to the expenditure on Disabled Facilities Grants (DFG). As Council policy is to reduce the spend on DFGs, this has reduced the fees income.

Other Minor Variances (2) TOTAL VARIANCES 11

Neighbourhoods Employees across all Service (77) (£16k) E.H. Neighbourhoods saving due to vacancies and redundancy payments, Areas £16k EH Enforcement Regulatory overspend due to honoraria and overtime payments to cover EH Manager vacant post, (£13k) Empty Homes Officer savings due to vacant post, (£33k) Sports Development underspend due to vacant posts, £54k Refuse Collection Non Trading A/C overspend due to extra payments to staff from other areas and agency staff to meet the requirements of the service, (£55k) Street Cleaning Non Trading A/C employee budget saving due to movement of staff to other areas to meet the needs of the service, (£16k) Grounds Maint Trading A/C savings due to long term sickness and agency staff payments, (£30k) Transport Fleet savings due to vacancy, £16k Parks & Open Spaces overpayment due to redundancy payment. EH Neighbourhoods 27 Overspend due to Consultancy staff used to cover vacant posts. Empty Homes Officer 19 Overspend due to Consultancy staff used to cover vacant post. Leisure Trust Management (24) Write back of part of Worksop Leisure Centre Gas Provision set aside in 2012 (£81k). Local Authorities - NCC - Refund on the unitary charge due to areas of the building unavailable to the general public (£16k). Overspend on Electric of £13k. Repudiation of an insurance claim charged in a previous year resulting in a (£20k) saving. VAT Consultancy charge on successful claim of £92k, other (£12k).

Parks & Open Spaces 56 Provision for Insurance. Management Refuse Collection Non (122) The repudiation of an insurance claim charged in a previous year (£45k). Trading A/C Overachievement of income (£77k). Trade Waste (43) (£13k) Overachievement of income, (£30k) VAT refund. Street Cleansing Non (51) There is the repudiation of an insurance claim charged in a previous year (£27k). Trading A/C Saving of (£24k) due to A1 road not being cleaned. Grounds Maintenance 38 Unbudgeted payment to A1 Branching Out to cover seasonal work. Transport Fleet (13) Underspend on stock purchases. Environmental Works 10 Overspend of £22k on essential dangerous building works carried out on private properties, completed under the Council's statutory duties and the recovery of the dangerous works from the property owners resulting in a saving of (£12k).

Health & Safety Shared (29) Underspend on Other Contracted Services. Service Hannah Park Cemetery (14) Over-achievement of income. NCC Disposal Charge (9) Saving on disposal charge of (£22k) and under achievement of income of £13k.

Other Minor Variances (42) TOTAL VARIANCES (274)

Planning & Building Control Employees across all Service (46) Saving due to a vacancy in Building Control and a vacancy in Planning Policy. Areas

272 APPENDIX A

GENERAL FUND REVENUE OUTTURN VARIANCES

Description Variance from Explanation adjusted Budget £'000

Planning Policy & (30) Due to awaiting progress on LDF. Conservation Planning Support (11) Additional income received for 5% CIL. Planning Development (291) Over achievement of income due to an upsurge in applications. Control Building Control Dangerous (85) Pressure on income of £80k. Saving on Employees of (£29k) due to a vacancy Structures which was not filled. Net refund of VAT paid on charges from 1985 to 1996 from HMRC of (£136k). TOTAL VARIANCES (463)

Revenues Services Employees across all Service (3) Only minor variances on Employees across the Service. Areas Housing Benefits 86 £90k pressure on Rent Rebate Subsidy Limitation (RRSL) of 99.44% (budgeted for 100% i.e. no reduction). RRSL is Calculated from Limit Rent of £72.85 compared to Average Council Rent of £73.26. Less recovery of (£4k) Discretionary Housing Payments. Revenues & Customer Sms (68) (£47k) saving on Localised Council Tax Other Contracted Services. (£21k) unbudgeted A1 Non SLA Income. Local Tax Collection (46) Over-achieved income on Recovery of Court Costs. Other Minor Variances (9) TOTAL VARIANCES (40)

Other Budgets Provision (124) Contingency budgets not required in year. TOTAL VARIANCES (124)

Usable & Unusable Reserves Transfer to/(from) Usable 632 A number of new reserves have been set up in year, these include; Business Rates Reserves Volatility £200k, Pension Strain/Redundancy £200k, Visitor Economy Strategy £40k, Regeneration Feasibility £50k, System Development £35k, Cemetery Headstones £10k, others £45k. Use of reserves in year to support General Fund Balances (£30k). Lower than expected transfer from Treasury Management reserve £82k.

Transfer to/(from) Unusable (11) Effective Interest Rate reversal. Reserves Transfer to/(from) General 237 Final transfer to General Fund Reserve. Represents the underspend on General Reserves Fund of (£272k) off-set by budgeted estimate of grant income received of £35k.

TOTAL VARIANCES 858

273 APPENDIX B

HOUSING REVENUE ACCOUNT OUTTURN VARIANCES

Description Variance from Explanation adjusted Budget £'000

A1 Management Fee 0 No Variance. Council Managed (232) (£243k) savings on the in-year provision for bad debts, £7k pressure on the recovery Expenditure of court costs and £7k pressure on the disbursement payment (Airey homes redevelopment site at Harworth), plus other minor variances of (£3k). Revaluation of Non-Current 0 No Variance. Assets Income (39) (£77k) additional income received for the supporting people service, offset against a £28k lost income due to the number of dwelling voids being above budget, and £12k unachievable income from land rents and community centre rentals, plus other minor variances of (£2k). Other Adjustments 143 £150k increase in revenue contributions due to the repayment of debt/new build reserve, and other minor variance of (£7k). Movements in Reserves 128 Transfer to HRA Reserve

TOTAL VARIANCES 0

274 CAPITAL PROGRAMME 2014/15 BUDGET MONITORING - POSITION AS AT 31ST MARCH 2015 APPENDIX C

Reprofiling/ Outturn CAPITAL SCHEME Adjustments Revised Variance to Comments Capital Revenue Major Repair External Initial Budget Approved Budget Actual Outturn Revised Borrowing Receipts Funding Reserves Funding Source of External Funding Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 NEIGHBOURHOODS

Replacement Vehicles & Plant 540 57 400 336 64 Carry Forward required. 336 336

Mezzanine Floor Extension Leisure Centres 343 13 356 359 -3 Scheme complete £3k overspend 359 359

Langold Country Park - Water Splash Pool 275 0 292 290 2 Scheme complete £2k saving. 290 290

PLAY AREAS: 317 198 563 158 Carry Forward required. 0

Planned Maintenance - Play Areas 152 152 152

Play Areas 90 10 80 S106 75 - Land @ Grange View 90

Langold Country Park - Play Equipment 125 80 45 125

Manton Play Area 28 6 12 10 A1 Housing 28

Play Equipment at the Oval 8 3 5 S106 61 - Bridon Ropes 8

Canch Play Area Refurbishment 2 2 2

Sandhill Lake 50 58 115 107 8 Carry Forward required. 18 89 £50k WREN, £39k NCC 107

Redevelopment of Goosemoor Lane 45 0 45 0 45 Carry Forward required. 0

New Junior Football Pitch at LCP 0 27 37 27 10 Carry Forward required. 1 26 S106 97 - Gleeson Homes 27

Retford Leisure Centre Car Park Extension 0 0 25 0 25 Carry Forward required. 0

Kings Park Performance Area/Improvement Programme 121 0 0 0 0 Carry Forward approved in year 0

Community Garden Strawberry Rd Retford 0 16 0 0 0 Carry Forward approved in year 0 FINANCE

Strategic Intervention Fund 0 396 396 403 -7 Scheme complete £7k overspend 403 403

Queens Building Modernisation/Open Plan Floor 1 300 -10 226 112 114 Carry Forward required. 112 112

Planned Maintenance - Buildings 105 0 105 69 36 Carry Forward required. 69 69

Queens Building - DWP - Ground Floor 0 0 80 82 -2 Scheme complete £2k overspend 82 DWP Grant 82

Bridge Street Public Toilets 0 65 75 75 0 Scheme complete. 75 75

Toilets and Disabled Facilities 0 129 60 39 21 Carry Forward required. 39 39

Car Parking improvements 238 40 40 44 -4 Scheme complete £4k overspend 44 44

Exchange Street Shops fit out 15 22 37 13 24 Carry Forward required. 13 13

Canch Redevelopment 0 28 28 6 22 Carry Forward required. 5 1 Environment Agency 6

Rewiring of Amcott House and Emergency Lighting 24 0 24 23 1 Scheme complete £1k saving. 18 5 Aspen insurance 23

Energy Conservation - SMART metering 20 4 24 0 24 Scheme deleted £24k saving. 0

Memorial Library 200 33 2 2 0 Scheme complete. 2 2

Re-Roofing Leverton Industrial Estate 170 0 0 0 0 Scheme removed in year. 0

QB Fire alarm system 100 0 0 0 0 Scheme removed in year. 0 REGENERATION

WCV phase 2 200 0 200 0 200 Carry Forward required. 0

Rural CCTV & CCTV Upgrade 0 139 139 99 40 Carry Forward required. 99 99

Retford Enterprise Centre Car Park Extension 0 0 46 32 14 Carry Forward required. 32 S106 61 - Bridon Ropes 32

Bridge Street Public Realm 50 34 32 32 0 Scheme complete. 32 32

High Speed Data Transfer Broadband 0 5 5 5 0 Scheme complete. 5 5

Retford Market Square 0 2 2 2 0 Scheme complete. 2 S106 61 - Bridon Ropes 2 275 CAPITAL PROGRAMME 2014/15 BUDGET MONITORING - POSITION AS AT 31ST MARCH 2015 APPENDIX C

ICT updates and development 251 16 460 311 149 Carry Forward required. 287 24 311

Corporate Interactional Website Development 0 23 42 39 3 Scheme complete £3k saving. 39 39

Plan Printer Replacement 0 0 20 11 9 Scheme complete £9k saving. 11 11

A3 Forms Hardware Elections 0 0 15 10 5 Carry Forward required. 10 Government grant 10

IT Computer Replacement Fund 0 19 0 0 0 Scheme removed in year. 0

TOTAL GENERAL FUND 3,424 1,314 3,891 2,933 958 1,356 1,199 36 0 342 2,933 REFCUS

Disabled Facilities Grant 1,100 331 700 496 204 Carry Forward required. 66 430 DFG Grant 496

Empty Homes Grant 103 60 97 83 14 Carry Forward required. 39 44 HCA Grant 83

Fuel Poverty (Private Sector Housing Initiatives) 0 29 12 12 0 Scheme complete. 2 10 DECC Contribution 12

Nottinghamshire Countywide Broadband Initiative 0 150 150 0 150 Carry Forward required. 0

Local sports groups – match funding strategy 17 44 61 58 3 Scheme complete £3k saving. 58 58

Walkeringham Flood Mitigation Works 490 18 100 42 58 Carry Forward required. 42 Environment Agency 42

Flood Mitigation Schemes/Retford Beck 100 4 54 43 11 Carry Forward required. 36 7 Environment Agency 43

Rewiring of Ex NCC Wing at Queen's Buildings 16 37 37 37 0 Scheme complete. 37 37

Affordable Housing with Bassetlaw 0 0 125 125 0 Scheme complete. 125 S106 68 - McCarthy and Stone 125

Public Realm works - Scrooby Road 0 44 44 6 38 Carry Forward required. 6 S106 87 - Harworth Colliery 6

Derelict Building Demolition 0 0 30 20 10 Scheme complete £10k saving 20 20

Tuxford Conservation Area 0 24 16 16 0 Scheme complete. 9 7 English Heritage 16

Buildings At Risk 0 47 1 1 0 Scheme complete. 1 Retford Townscape Heritage 1

Retford & Worksop - Prince's Trust Initiative 0 40 5 0 5 Carry Forward required. 0

TOTAL REFCUS 1,826 828 1,432 939 493 37 230 0 0 672 939 HOUSING £157k Energy Saving Grant, £30k Capital Improvements 7,759 430 8,467 7,671 796 Carry Forward required. 815 6,670 187 7,672 Renovation Contributions Airey Houses 2,000 136 1,875 1,875 0 Scheme complete. 1,000 131 397 346 £0.346m HCA Grant 1,874

TOTAL HOUSING 9,759 566 10,342 9,546 796 1,000 946 0 7,067 533 9,546

GRAND TOTAL 15,009 2,708 15,665 13,418 2,247 2,393 2,375 36 7,067 1,547 13,418

276 APPENDIX D

CAPITAL CARRY FORWARD FROM 2014/15 INTO 2015/16

Cabinet Portfolio Capital Scheme Amount £ Neighbourhoods Replacement Vehicles & Plant (64,000) Neighbourhoods Sandhill Lake (8,000) Neighbourhoods Play Areas (158,000) Neighbourhoods Redevelopment of Goosemoor Lane (45,000) Neighbourhoods New Junior Football Pitch at LCP (10,000) Neighbourhoods Retford Leisure Centre Car Park Extension (25,000) Neighbourhoods Total: (310,000) Finance Queens Building Modernisation/Open Plan Floor 1 (114,000) Finance Planned Maintenance - Buildings (36,000) Finance Toilets and Disabled Facilities (21,000) Finance Exchange Street Shops fit out (24,000) Finance Canch Redevelopment (22,000) Finance Total: (217,000) Regeneration WCV phase 2 (200,000) Regeneration Rural CCTV & CCTV Upgrade (40,000) Regeneration Retford Enterprise Centre Car Park Extension (14,000) Regeneration Total: (254,000) Co-operative and Corporate Services ICT updates and development (149,000) Co-operative and Corporate Services A3 Forms Hardware Elections (5,000) Co-operative and Corporate Services Total: (154,000) Refcus* Disabled Facilities Grant (204,000) Refcus Empty Homes Grant (14,000) Refcus Nottinghamshire Countywide Broadband Initiative (150,000) Refcus Walkeringham Flood Mitigation Works (58,000) Refcus Flood Mitigation Schemes/Retford Beck (11,000) Refcus Public Realm works - Scrooby Road (38,000) Refcus Retford & Worksop - Prince's Trust Initiative (5,000) Refcus Total: (480,000) Housing Managed by A1 Other Capital Improvements (796,000) Housing Managed by A1 Total: (796,000) (2,211,000)

*Revenue Expenditure Funded from Capital Under Statute

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278

Bassetlaw District Council

Nottinghamshire County Council Pension Fund

Pension accounting disclosure as at 31 March 2015 Prepared in accordance with IAS19

27 April 2015

279

Contents

1. Introduction ...... 3 2. Characteristics of defined benefit plans and associated risks ...... 4 3. Valuation data ...... 5 Data sources ...... 5 Employer membership statistics ...... 5 Early retirements ...... 5 Assets ...... 6 4. Actuarial methods and assumptions ...... 8 Valuation approach ...... 8 Valuation method ...... 8 Demographic/Statistical assumptions ...... 8 Financial assumptions ...... 9 Past service costs/gains ...... 10 Curtailments ...... 10 Settlements ...... 10 5. Results and Disclosures ...... 11 Appendix 1 Statement of financial position as at 31 March 2015 ...... 12 Appendix 2 Statement of profit or loss for the year to 31 March 2015 ...... 13 Appendix 3 Asset and benefit obligation reconciliation for the year to 31 March 2015 ...... 14 Appendix 4 Sensitivity analysis ...... 16 Appendix 5 Re-measurements in other comprehensive income ...... 17 Appendix 6 Projected pension expense for the year to 31 March 2016 ...... 18

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1. Introduction

We have been instructed by Nottinghamshire County Council, the administering authority to the Nottinghamshire County Council Pension Fund (the Fund), to undertake pension expense calculations in respect of pension benefits provided by the Local Government Pension Scheme (the LGPS) to employees of Bassetlaw District Council (the Employer) as at 31 March 2015.

This report is addressed to the Employer and its advisers; in particular, this report is likely to be of relevance to the Employer’s auditor.

These figures are prepared in accordance with our understanding of International Accounting Standard 19 (IAS19 (2011)).

This advice complies with all Generic Technical Actuarial Standards (TASs) and the Pensions TAS.

The figures quoted will form the basis of the balance sheet and funding status disclosures to be made by the Employer as at 31 March 2015 in respect of its pension obligations under the LGPS. The projected pension expense calculations for the year to 31 March 2016 may be used for the purpose of any interim financial reporting during the year to 31 March 2016. However, it may subsequently be necessary to adjust these projections following the occurrence of any material events such as curtailments, settlements or the discontinuance of the Employer’s participation in the Fund.

Please note we have not made any allowance for IFRIC14 in our calculations. We would be happy to speak to the Employer or their auditor if more information is required.

However IAS19 also requires the disclosure of any other employer provided pension benefits which are not paid from the Fund itself: examples include additional pensions paid on retirement under the Discretionary Payment Regulations.

We have only valued such additional liabilities, which would not be covered in the formal LGPS valuation, to the extent that they have been notified to us and are as disclosed in Section 3 of this report.

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2. Characteristics of defined benefit plans and associated risks

The LGPS is a defined benefit statutory scheme administered in accordance with the Local Government Pension Scheme Regulations 2014, is contracted out of the State Second Pension and currently provides benefits based on career average revalued salary and length of service on retirement.

The administering authority for the Fund is Nottinghamshire County Council. The Pension Fund Committee oversees the management of the Fund whilst the day to day fund administration is undertaken by a team within the administering authority. Where appropriate some functions are delegated to the Fund’s professional advisers.

As administering authority to the Fund, Nottinghamshire County Council, after consultation with the Fund Actuary and other relevant parties, is responsible for the preparation and maintenance of the Funding Strategy Statement and the Statement of Investment Principles. These should be amended when appropriate based on the Fund’s performance and funding.

Contributions are set every three years as a result of the actuarial valuation of the Fund required by the Regulations. The next actuarial valuation of the Fund will be carried out as at 31 March 2016 and will set contributions for the period from 1 April 2017 to 31 March 2020. There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of 100% using the actuarial valuation assumptions.

On the Employer’s withdrawal from the Fund, a cessation valuation will be carried out in accordance with Regulation 64 of the LGPS Regulations 2013 which will determine the termination contribution due by the Employer, on a set of assumptions deemed appropriate by the Fund Actuary.

In general, participating in a defined benefit pension scheme means that the Employer is exposed to a number of risks:

 Investment risk. The Fund holds investment in asset classes, such as equities, which have volatile market values and while these assets are expected to provide real returns over the long-term, the short- term volatility can cause additional funding to be required if a deficit emerges;

 Interest rate risk. The Fund’s liabilities are assessed using market yields on high quality corporate bonds to discount future liability cashflows. As the Fund holds assets such as equities the value of the assets and liabilities may not move in the same way;

 Inflation risk. All of the benefits under the Fund are linked to inflation and so deficits may emerge to the extent that the assets are not linked to inflation; and

 Longevity risk. In the event that the members live longer than assumed a deficit will emerge in the Fund. There are also other demographic risks.

In addition, as many unrelated employers participate in the Nottinghamshire County Council Pension Fund, there is an orphan liability risk where employers leave the Fund but with insufficient assets to cover their pension obligations so that the difference may fall on the remaining employers.

All of the risks above may also benefit the Employer e.g. higher than expected investment returns or employers leaving the Fund with excess assets which eventually get inherited by the remaining employers.

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3. Valuation data

Data sources In completing our calculations for pension accounting purposes we have used the following items of data, which we received from Nottinghamshire County Council:

 The results of the valuation as at 31 March 2013 which was carried out for funding purposes;

 Estimated whole Fund income and expenditure items for the period to 31 March 2015;

 Fund investment returns for the period to 30 September 2014 and market returns (estimated where necessary) thereafter for the period to 31 March 2015;

 Estimated Fund income and expenditure in respect of the Employer for the period to 31 March 2015; and

 Details of any new early retirements for the period to 31 March 2015 that have been paid out on an unreduced basis, which are not anticipated in the normal employer service cost.

Although some of these data items have been estimated, we do not believe that they are likely to have a material effect on the results of this report. Further, we are not aware of any material changes or events since we received the data.

Employer membership statistics The table below summarises the membership data, as at 31 March 2013 for members receiving funded benefits, and as at 31 March 2014 for any members receiving unfunded benefits.

Member data summary Number Salaries/Pensions Average age

£000s

Actives 356 7,176 47

Deferred pensioners 445 657 46

Pensioners 656 3,170 72

Unfunded pensioners 179 262 79

The service cost for the year ending 31 March 2015 is calculated using an estimate of the average total pensionable payroll during the year. The estimated average total pensionable payroll during the year is £8,120,000, as advised by the Employer. The projected service cost for the year ending 31 March 2016 has been calculated assuming the payroll remains at this level over the year.

Early retirements We requested data on any early retirements in respect of the Employer from the administering authority for the year ending 31 March 2015.

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We have been notified of five new early retirements during the year which were not allowed for at the previous accounting date. The total annual pension that came into payment was £38,200.

Assets The return on the Fund (on a bid value to bid value basis) for the year to 31 March 2015 is estimated to be 11%. The actual return on Fund assets over the year may be different.

The estimated asset allocation for Bassetlaw District Council as at 31 March 2015 is as follows:

Employer asset share - bid value 31 Mar 2015 31 Mar 2014

£000s % £000s %

Equities 47,271 70% 44,291 73%

Gilts 2,095 3% 4,854 8%

Other bonds 4,733 7% 3,034 5%

Property 7,826 12% 6,674 11%

Cash 3,261 5% 1,820 3%

Inflation-linked pooled fund 1,870 3% n/a n/a

Total 67,056 100% 60,672 100%

We have estimated the bid values where necessary. The final asset allocation of the Fund assets as at 31 March 2015 is likely to be different from that shown due to estimation techniques.

Last year, we included the Inflation-linked pooled fund allocation with in Equities.

Based on the above, the Employer’s share of the assets of the Fund is approximately 2%.

We received the following information from the administering authority regarding the detail of their assets as at 31 December 2014, representing the percentages of the total Fund held in each asset class (split by those that have a quoted market price in an active market, and those that do not).

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Employer asset share - bid value 31 Dec 2014

% Quoted % Unquoted

Fixed Interest Government Securities UK 3.1% - Overseas - - Corporate Bonds UK 6.7% - Overseas 0.3% - Equities UK 32.7% 0.1% Overseas 36.0% - Property All - 11.7% Others Private Equity - 1.8% Inflation-linked pooled fund 2.8% - Cash/Temporary Investments - 4.9%

Total 81.6% 18.4%

We do not have any further detail on the current asset allocation of the Fund; we suggest that if further information is required the administering authority is contacted in the first instance.

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4. Actuarial methods and assumptions

Valuation approach To assess the value of the Employer's liabilities at 31 March 2015, we have rolled forward the value of the Employer's liabilities calculated for the funding valuation as at 31 March 2013, using financial assumptions that comply with IAS19.

The full actuarial valuation involved projecting future cashflows to be paid from the Fund and placing a value on them. These cashflows include pensions currently being paid to members of the Fund as well as pensions (and lump sums) that may be payable in future to members of the Fund or their dependants. These pensions are linked to inflation and will normally be payable on retirement for the life of the member or a dependant following a member’s death.

It is not possible to assess the accuracy of the estimated value of liabilities as at 31 March 2015 without completing a full valuation. However, we are satisfied that the approach of rolling forward the previous valuation data to 31 March 2015 should not introduce any material distortions in the results provided that the actual experience of the Employer and the Fund has been broadly in line with the underlying assumptions, and that the structure of the liabilities is substantially the same as at the latest formal valuation. From the information we have received there appears to be no evidence that this approach is inappropriate.

To calculate the asset share we have rolled forward the assets allocated to the Employer at 31 March 2013 allowing for investment returns (estimated where necessary), contributions paid into, and estimated benefits paid from, the Fund by and in respect of the Employer and its employees.

Valuation method As required under IAS19 we have used the projected unit method of valuation to calculate the service cost.

Demographic/Statistical assumptions We have adopted a set of demographic assumptions that are consistent with those used for the most recent Fund valuation, which was carried out as at 31 March 2013. The post retirement mortality tables adopted are the S1PA tables with a multiplier of 110%, for males and 100% for females. These base tables are then projected using the CMI 2012 Model, allowing for a long-term rate of improvement of 1.5% p.a.

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The assumed life expectations from age 65 are:

Life expectancy from age 65 (years) 31 Mar 2015 31 Mar 2014

Retiring today

Males 22.1 22.0

Females 25.2 25.1

Retiring in 20 years

Males 24.2 24.1

Females 27.6 27.4

We have also made the following assumptions:

 Members will exchange half of their commutable pension for cash at retirement;

 Members will retire at one retirement age for all tranches of benefit, which will be the pension weighted average tranche retirement age; and

 10% of active members will take up the option under the new LGPS to pay 50% of contributions for 50% of benefits.

Financial assumptions The financial assumptions used to calculate the results in Section 5 and the Appendices are as follows:

Assumptions as at 31 Mar 2015 31 Mar 2014 31 Mar 2013

% p.a. Real % p.a. Real % p.a. Real

RPI increases 3.1% - 3.5% - 3.3% -

CPI increases 2.3% -0.8% 2.7% -0.8% 2.5% -0.8%

Salary increases 4.1% 1.0% 4.5% 1.0% 4.7% 1.4%

Pension increases 2.3% -0.8% 2.7% -0.8% 2.5% -0.8%

Discount rate 3.2% 0.1% 4.4% 0.9% 4.3% 1.0%

These assumptions are set with reference to market conditions at 31 March 2015.

Our estimate of the duration of the Employer’s liabilities is 17 years.

The discount rate is the annualised yield at the 17 year point on the Merrill Lynch AA-rated corporate bond yield curve which has been chosen to meet the requirements of IAS19 and with consideration of the duration of the Employer’s liabilities. This is consistent with the approach used at the last accounting date. www.barnett-waddingham.co.uk Bassetlaw District Council – IAS19 Disclosure as at 31 March 2015

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The Retail Prices Index (RPI) increase assumption is set based on the difference between conventional gilt yields and index-linked gilt yields at the accounting date using data published by the Bank of England (BoE), specifically the 17 year point on the BoE market implied inflation curve. The RPI assumption is therefore 3.1% p.a. This is consistent with the approach used at the last accounting date.

As future pension increases are expected to be based on the Consumer Prices Index (CPI) rather than RPI, we have made a further assumption about CPI which is that it will be 0.8% p.a. below RPI i.e. 2.3% p.a. We believe that this is a reasonable estimate for the future differences in the indices, based on the different calculation methods.

Salaries are then assumed to increase at 1.8% p.a. above CPI in addition to a promotional scale.

Past service costs/gains Past service costs/gains arise as a result of introduction or withdrawal of, or changes to, member benefits. For example, an award of additional discretionary benefits to a member such as added years by a member would be considered a past service cost.

We are not aware of any additional benefits which were granted over the year ending 31 March 2015.

Curtailments We have calculated the cost of curtailments arising as a result of the payment of unreduced pensions on early retirement. The Employer may also have to account for non-pension related costs (e.g. lump sum payments on redundancy) but for the avoidance of doubt, we have only calculated the cost of curtailments which affect the Employer’s LGPS pension liabilities.

We calculate the cost of curtailments at the point of exit, with interest applied to the accounting date accounted for separately.

Over the year, we understand that five former employees became entitled to unreduced early retirement benefits.

The capitalised cost of the additional benefits on IAS19 compliant assumptions is calculated at £213,000. This figure has been included within service cost in the statement of profit or loss.

Settlements We are not aware of any liabilities being settled at a cost materially different to the accounting reserve during the year.

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5. Results and Disclosures

We estimate that the value of the net liability as at 31 March 2015 is a liability of £56,974,000.

The results of our calculations for the year ended 31 March 2015 are set out in the appendices below:

 Appendix 1 sets out the Statement of financial position as at 31 March 2015;

 Appendix 2 sets out the Statement of profit or loss for the year ended 31 March 2015;

 Appendix 3 details a reconciliation of assets and liabilities during the year;

 Appendix 4 shows a sensitivity analysis on the major assumptions;

 Appendix 5 shows the Re-measurements in other comprehensive income for the year;

 Appendix 6 contains our estimates of the projected profit and loss account costs for the year ending 31 March 2016. Please note that no allowance has been made for the costs of any early retirements or augmentations which may occur over the year and whose additional capitalised costs would be included in the value of liabilities. It is only an estimate so actual experience over the year is likely to differ. We have not provided balance sheet projections on the basis that they will depend upon market conditions and the asset value of the Fund at the end of the following year.

The figures presented in this report are prepared only for the purposes of IAS19. In particular, they are not relevant for calculations undertaken for funding purposes or for other statutory purposes under UK pensions legislation.

We would be pleased to answer any questions arising from this report.

Mark Norquay FFA Associate

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Appendix 1 Statement of financial position as at 31 March 2015

Net pension asset as at 31 Mar 2015 31 Mar 2014 31 Mar 2013

£000s £000s £000s

Present value of the defined benefit obligation 120,260 101,974 101,399

Fair value of Fund assets (bid value) 67,056 60,672 62,300

Deficit / (Surplus) 53,204 41,302 39,099

Present value of unfunded obligation 3,770 3,600 3,387

Unrecognised past service cost - - -

Impact of asset ceiling - - -

Net defined benefit liability / (asset) 56,974 44,902 42,486

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Appendix 2 Statement of profit or loss for the year to 31 March 2015

The amounts recognised in the profit and loss Year to Year to statement are:

31 Mar 2015 31 Mar 2014

£000s £000s

Service cost 2,151 2,420

Net interest on the defined liability (asset) 1,905 1,761

Administration expenses 11 4

Total loss (profit) 4,067 4,185

This replaces the indicative profit and loss statement issued on 8 April 2015.

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Appendix 3 Asset and benefit obligation reconciliation for the year to 31 March 2015

Reconciliation of opening & closing balances of Year to Year to the present value of the defined benefit obligation 31 Mar 2015 31 Mar 2014

£000s £000s

Opening defined benefit obligation 105,574 104,786

Current service cost 1,938 2,207

Interest cost 4,567 4,424

Change in financial assumptions 15,419 130

Change in demographic assumptions - 5,676

Experience loss/(gain) on defined benefit obligation - (7,901)

Liabilities assumed / (extinguished) on settlements - -

Estimated benefits paid net of transfers in (3,953) (4,195)

Past service costs, including curtailments 213 213

Contributions by Scheme participants 508 477

Unfunded pension payments (236) (244)

Closing defined benefit obligation 124,030 105,574

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Year to Year to Reconciliation of opening & closing balances of the fair value of Fund assets 31 Mar 2015 31 Mar 2014

£000s £000s

Opening fair value of Fund assets 60,672 62,300

Interest on assets 2,662 2,663

Return on assets less interest 4,069 1,094

Other actuarial gains/(losses) - (4,611)

Administration expenses (11) (4)

Contributions by employer including unfunded 3,345 3,192

Contributions by Scheme participants 508 477

Estimated benefits paid plus unfunded net of transfers in (4,189) (4,439)

Settlement prices received / (paid) - -

Closing Fair value of Fund assets 67,056 60,672

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Appendix 4 Sensitivity analysis

Sensitivity analysis £000s £000s £000s

Adjustment to discount rate +0.1% 0.0% -0.1%

Present value of total obligation 121,972 124,030 126,124

Projected service cost 2,351 2,405 2,460

Adjustment to long term salary increase +0.1% 0.0% -0.1%

Present value of total obligation 124,330 124,030 123,731

Projected service cost 2,406 2,405 2,404

Adjustment to pension increases and deferred revaluation +0.1% 0.0% -0.1%

Present value of total obligation 125,840 124,030 122,251

Projected service cost 2,460 2,405 2,352

Adjustment to mortality age rating assumption +1 Year None - 1 Year

Present value of total obligation 119,593 124,030 128,508

Projected service cost 2,322 2,405 2,489

For the adjustment to the mortality age rating assumption, we are essentially assuming a member has the mortality of someone a year older or a year younger, for example, under +1 Year we assumed that a 40 year old actually has the mortality of a 41 year old.

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Appendix 5 Re-measurements in other comprehensive income

Year to Year to Remeasurement of the net assets / (defined liability) 31 Mar 2015 31 Mar 2014

£000s £000s

Return on Fund assets in excess of interest 4,069 1,094

Other actuarial gains/(losses) on assets - (4,611)

Change in financial assumptions (15,419) (130)

Change in demographic assumptions - (5,676)

Experience gain/(loss) on defined benefit obligation - 7,901

Changes in effect of asset ceiling - -

Remeasurement of the net assets / (defined liability) (11,350) (1,422)

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Appendix 6 Projected pension expense for the year to 31 March 2016

Year to Projections for the year to 31 March 2016 31 Mar 2016

£000s

Service cost 2,405

Net interest on the defined liability (asset) 1,773

Administration expenses 12

Total loss (profit) 4,190

Employer contributions 3,119

Note that these figures exclude the capitalised cost of any early retirements or augmentations which may occur after 31 March 2015. These projections are based on the assumptions as at 31 March 2015, as described in the main body of this report.

www.barnett-waddingham.co.uk Bassetlaw District Council – IAS19 Disclosure as at 31 March 2015

RESTRICTED 0315 Version 1 18 of 18

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Annual Treasury Management Review 2014/15 1. Introduction This Council is required by regulations issued under the Local Government Act 2003 to produce an annual treasury management review of activities and the actual prudential and treasury indicators for 2014/15. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

During 2014/15 the minimum reporting requirements were that the full Council should receive the following reports:

• an annual treasury strategy in advance of the year (Cabinet 13th February 2014 and Council 6th March 2014) • a mid-year (minimum) treasury update report (Cabinet 4th November 2014 and Council 18th December 2014) • an annual review following the end of the year describing the activity compared to the strategy (this report)

The regulatory environment places responsibility on Members for the review and scrutiny of treasury management policy and activities. This report is therefore important in that respect, as it provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by Members.

This Council also confirms that it has complied with the requirement under the Code to give prior scrutiny to all of the above treasury management reports by the Audit and Risk Scrutiny Committee before they were reported to the full Council. Member training on treasury management issues was undertaken during the year on 13th November 2014 in order to support members’ scrutiny role.

2. The Economy and Interest Rates

The original market expectation at the beginning of 2014/15 was for the first increase in Bank Rate to occur in quarter 1 2015 as the unemployment rate had fallen much faster than expected through the Bank of England’s initial forward guidance target of 7%. In May, however, the Bank revised its forward guidance. A combination of very weak pay rises and inflation above the rate of pay rises meant that consumer disposable income was still being eroded and in August the Bank halved its forecast for pay inflation in 2014 from 2.5% to 1.25%. Expectations for the first increase in Bank Rate therefore started to recede as growth was still heavily dependent on buoyant consumer demand. During the second half of 2014 financial markets were caught out by a halving of the oil price and the collapse of the Swiss peg between the Swiss franc and the euro. Fears also increased considerably that the European Central Bank (ECB) was going to do too little too late to ward off the threat of deflation and recession in the Eurozone. In mid-October, financial markets had a major panic for about a week. By the end of 2014, it was clear that inflation in the UK was going to head towards zero in 2015 and possibly even turns negative. In turn, this made it clear that the Monetary Policy Committee (MPC) would have great difficulty in starting to raise the Bank Rate in 2015 while inflation was around

297 APPENDIX F

zero and so market expectations for the first increase receded back to around quarter 3 of 2016.

Gilt yields were on a falling trend for much of the last eight months of 2014/15 but were then pulled in different directions by increasing fears after the anti-austerity parties won power in Greece in January; developments since then have increased fears that Greece could be heading for an exit from the euro. While the direct effects of this would be manageable by the European Union (EU) and ECB, it is very hard to quantify quite what the potential knock on effects would be on other countries in the Eurozone (EZ) once the so called impossibility of a country leaving the EZ had been disproved. Another downward pressure on gilt yields was the announcement in January that the ECB would start a major programme of quantitative easing, purchasing EZ government and other debt in March. On the other hand, strong growth in the US caused an increase in confidence that the US was well on the way to making a full recovery from the financial crash and would be the first country to start increasing its central rate, probably by the end of 2015. The UK would be closely following it due to strong growth over both 2013 and 2014 and good prospects for a continuation into 2015 and beyond. However, there was also an increase in concerns around political risk from the general election due in May 2015.

3. Overall Treasury Position as at 31st March 2015 At the beginning and the end of 2014/15 the Council‘s treasury (excluding borrowing by PFI and finance leases) position was as follows:

31 March Rate/ Average 31 March Rate/ Average HRA 2014 Return Life yrs 2015 Return Life yrs Principal Principal Total debt £97.916m 3.92% 27 yrs £94.643m 3.98% 27 yrs CFR £97.513m £95.143m Over / (under) £0.403m (£0.500m) borrowing Total investments £2.400m (£9.219m) Net debt £95.516m £85.424m

31 March Rate/ Average 31 March Rate/ Average General Fund 2014 Return Life yrs 2015 Return Life yrs Principal Principal Total debt £18.447m 3.73% 22 yrs £14.720m 4.33% 31 yrs CFR £26.596m £26.806m Over / (under) (£8.149m) (£12.086m borrowing ) Total investments £0.500m (£2.047m) Net debt £17.947m £12.673m

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4. The Strategy for 2014/15

The expectation for interest rates within the strategy for 2014/15 anticipated low but rising Bank Rate (starting in quarter 1 of 2015), and gradual rises in medium and longer term fixed borrowing rates during 2014/15. Variable, or short-term rates, were expected to be the cheaper form of borrowing over the period. Continued uncertainty in the aftermath of the 2008 financial crisis promoted a cautious approach, whereby investments would continue to be dominated by low counterparty risk considerations, resulting in relatively low returns compared to borrowing rates.

In this scenario, the treasury strategy was to postpone borrowing to avoid the cost of holding higher levels of investments and to reduce counterparty risk.

The actual movement in gilt yields meant that PWLB rates saw little overall change during the first four months of the year but there was then a downward trend for the rest of the year with a partial reversal during February.

The strategy adopted in the original Treasury Management Strategy Report for 2014/15 approved by the Council on 6th March 2014 was subject to revision during the year and approved by the Council on 18th December 2014. This was a change to the credit methodology whereby viability, financial strength and support ratings are not to be considered as key criteria in the choice of creditworthy investment counterparties.

The main rating agencies (Fitch, Moody’s and Standard & Poor’s) have, through much of the financial crisis, provided some institutions with a ratings “uplift” due to implied levels of sovereign support. More recently, in response to the evolving regulatory regime, the agencies have indicated they may remove these “uplifts”, making the Support, Financial Strength and Viability ratings redundant. This process may commence during this financial year. The actual timing of the changes is still subject to discussion, but this does mean immediate changes to the credit methodology are required.

As a result of these rating agency changes, the credit element of our future methodology will focus solely on the Short and Long Term ratings of an institution. Rating Watch and Outlook information will continue to be assessed where it relates to these categories. This is the same process for Standard & Poor’s that we have always taken, but a change to the use of Fitch and Moody’s ratings. Furthermore, we will continue to utilise CDS prices as an overlay to ratings in our new methodology.

5. The Borrowing Requirement and Debt

The Council’s underlying need to borrow to finance capital expenditure is termed the Capital Financing Requirement (CFR).

31 March 31 March 31 March 2014 2015 2015 Actual Budget Actual CFR General Fund (£m) £26.596m £27.650m £26.806m CFR HRA (£m) £97.513m £95.188m £95.143m Total CFR £124.109m £122.838m £121.949m

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6. Borrowing Rates in 2014/15

PWLB borrowing rates - the graph below shows how PWLB certainty rates have fallen to historically very low levels during the year.

7. Borrowing Outturn for 2014/15

Borrowing

There was no long term borrowing undertaken in year.

Rescheduling

No rescheduling was undertaken during the year.

Repayments

On 2nd September 2014 the Council repaid a £4m PWLB loan with an interest rate of 2.64%.

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8. Investment Rates in 2014/15

The Bank Rate remained at its historic low of 0.5% throughout the year; it has now remained unchanged for six years. Market expectations as to the timing of the start of monetary tightening started the year at quarter 1 2015 but then moved back to around quarter 3 2016 by the end of the year. Deposit rates remained depressed during the whole of the year, primarily due to the effects of the Government Funding for Lending Scheme.

9. Investment Outturn for 2014/15

Investment Policy – the Council’s investment policy is governed by CLG guidance, which has been implemented in the annual investment strategy approved by the Cabinet on 13th February 2014 and Council on 6th March 2014. This policy sets out the approach for choosing investment counterparties, and is based on credit ratings provided by the three main credit rating agencies supplemented by additional market data (such as rating outlooks, credit default swaps, bank share prices etc.).

The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties.

Investments held by the Council - the Council maintained an average balance of £7.659m of internally managed funds. The internally managed funds earned an average rate of return of 0.39%. The comparable performance indicator is the average 7-day LIBID rate, which was 0.35%. This compares with a budget assumption of £5.557m investment balances earning an average rate of 0.50%.

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10. Icelandic Bank Defaults

During the financial year the Council sold its investment in Glitnir Escrow account for £0.314m, with the remaining £0.126m being written out of the accounts. As part of the closedown process all the remaining amounts owed from the original £8.0m investments have been written out of the accounts as at 31st March 2015. Below is a table outlining the final settlement on each original investment;

Institution Original Total Total Loss Total % on Principal Dividends on investment Investment & Received Investment received Interest Claimed Heritable £2.030m £1.909m (£0.121m) 94.0% Kaupthing, Singer £1.041m £0.859m (£0.182m) 82.5% and Friedlander Glitnir £2.085m £1.959m (£0.126m) 94.0% Landsbanki £3.166m £2.887m (£0.279m) 91.2%

The Council has now sold its investments in Glitnir and Landsbanki. Any future dividends receivable for Kaupthing, Singer and Friedlander and Heritable will be accounted for as a contribution to the General Fund balances.

11. Other Issues.

Temporary borrowings were undertaken during the year to take advantage of the low Interest rates on short term debt.

Average Temporary Borrowing Amount Interest Rate Opening Debt £3.000m 0.46% Undertaken in year £1.000m 0.35% Repaid in year (£4.000m) 0.42% Closing Debt £0m 0%

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Appendix 1: Prudential and treasury indicators

1. PRUDENTIAL INDICATORS 2013/14 2014/15 2014/15

Extract from budget and rent setting report actual original actual

£'000 £'000 £'000 Capital Expenditure Non - HRA £4,918 £5,250 £3,872 HRA £10,347 £9,759 £9,546 TOTAL £15,265 £15,009 £13,418

Ratio of financing costs to net revenue stream Non - HRA 20.95% 12.73% 12.33% HRA 31.22% 28.08% 31.48%

Gross borrowing requirement General Fund brought forward 1 April £28,110 £28,520 £26,596 carried forward 31 March £26,596 £29,979 £26,806 in year borrowing requirement -£1,514 £1,459 £210

Gross borrowing requirement HRA brought forward 1 April £97,667 £97,956 £97,513 carried forward 31 March £97,513 £98,748 £95,143 in year borrowing requirement -£154 £792 -£2,370

Gross debt £ £ £

CFR Non – HRA £26,596 £29,979 £26,806 HRA £97,513 £98,748 £95,143 TOTAL £124,110 £128,727 £121,949

Annual change in Cap. Financing Requirement Non – HRA -£1,514 £1,459 £210 HRA -£154 £792 -£2,370 TOTAL -£1,668 £2,251 -£2,160

Incremental impact of capital investment decisions £ p £ p £ p

Increase in council tax (band D) per annum £4.65 £5.04 £4.19 Increase in average housing rent per week £0.74 £7.11 £6.32

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2. TREASURY MANAGEMENT INDICATORS 2013/14 2014/15 2014/15

actual original actual £'000 £'000 £'000 Authorised Limit for external debt - borrowing £134,000 £135,044 £135,044 other long term liabilities £0 £0 £0 TOTAL £134,000 £135,044 £135,044

Operational Boundary for external debt - borrowing £130,907 £130,044 £130,044 other long term liabilities £0 £0 £0 TOTAL £130,907 £130,044 £130,044

Actual external debt £ £ £ Borrowing – General Fund 18,447 17,720 14,720 Borrowing – HRA 97,916 94,643 94,643 Other Long Term Liabilities 0 0 0 Estimated Total Debt 31st March 116,363 112,363 109,363

Upper limit for fixed interest rate exposure expressed as either:- Net principal re fixed rate borrowing / investments 100 % 100 % 100 % OR:- Net interest re fixed rate borrowing / investments 20 % 20 % 20 %

Upper limit for variable rate exposure expressed as either:- Net principal re variable rate borrowing / investments 20 % 20% 20 % OR:- Net interest re variable rate borrowing / investments 20 % 20% 20 %

Upper limit for total principal sums invested for £0 £0 £0 over 364 days (per maturity date)

Maturity structure of fixed rate borrowing during upper limit lower limit 2014/15 under 12 months 25% 0% 12 months and within 24 months 50% 0% 24 months and within 5 years 50% 0% 5 years and within 10 years 50% 0% 10 years and and above 100% 0%

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Appendix 2: Graphs

305

306 Agenda Item No. 11(a) BASSETLAW DISTRICT COUNCIL

COUNCIL

25th June 2015

REPORT OF THE HEAD OF HUMAN RESOURCES AND ORGANISATIONAL DEVELOPMENT

THE LOCAL AUTHORITIES (STANDING ORDERS) (ENGLAND) (AMENDMENT) REGULATIONS 2015 Cabinet: Policy Contact: Len Hull Ext. 4136 1. Public Interest Test

The author of the report has determined that the report is not confidential.

2. Purpose of the Report

2.1 To implement the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2015 (the “2015 Regulations”) so that:

• There is no longer a requirement for a report from a designated independent person recommending disciplinary action against the Head of Paid Service, the Monitoring Officer or the Chief Finance Officer (the “Statutory Officers”) before such action is taken. • Any dismissal of the Statutory Officers must be approved by full Council before a notice of dismissal is given.

3. Background and Discussion

3.1 The Local Authorities (Standing Orders (England) (amendment) Regulations 2015, changed the statutory procedures that authorities must adopt in respect of the dismissal of the Head of Paid Service, Monitoring Officer and Chief Finance Officer on 11th May 2015. Disciplinary matters that have already commenced would continue under the former arrangements.

3.2 The new Regulations set out the process to be followed before a statutory officer can be dismissed for disciplinary reasons. The main change from the old provisions is the removal of the Designated Independent Person (DIP) investigation and report process. Under the new procedures, the dismissal of a protected officer in respect of disciplinary action must be approved by way of a vote at a meeting of the authority. Previously, an authority had to take action in accordance with DIP recommendations. This restriction will no longer apply. The new Regulations provide that the Council would vote and be able to dismiss provided they take into account:-

• Any advice, view or recommendations of the panel (as defined below) • The conclusions of any investigation into the proposed dismissal; and • Any representations from the officer concerned.

3.3 The panel is therefore a key part of the change, whose role will be to give advice and make recommendations before any decision is made by Full Council. The Panel must consist of at least two independent persons, who accept an invitation from the authority to be on the panel. An independent person is someone who has been appointed an independent person under section 28(7) of the Localism Act 2011. (This section of the Act relates to the member Code of Conduct regime.) The panel must be in place at least 20 working days before the meeting at which the decision by the Council as to whether to dismiss will be taken. When appointing Independent Persons to the panel, the Council must consider potential appointees in the following order of suitability:-

i) An independent person appointed by the authority and who is an elector in the authority’s area; ii) Any other independent person who has been appointed by the authority; and iii) Finally, an independent person who has been appointed by another authority and authorities.

3.4 The Independent Person’s remuneration, fee or allowances must not exceed the level in respect of those payable to that person in their role as an independent person under the Localism Act 2011.

3.5 The Regulations do not specifically require the panel to recommend a level sanction.

4. Proposals

4.1 The 2015 Regulations also provide that the Panel should be a Committee appointed under section 102(4) of the Local Government Act 1972. This means that the rules on political proportionally apply and full Council must determine its membership. It is therefore proposed that:

• The Panel in respect of this Council should be the Appointments Committee being an existing politically proportionate panel. • Two Independent Persons be appointed as co-opted members to the Appointments Committee (only for dealing with matters relating to the dismissal of Statutory Officers in accordance with the statutory regulations procedure).

4.2 In addition, it is proposed that the Council Constitution is amended accordingly to reflect these changes. Specifically:-

• Under Part 3, Council, “Procedural Matters Which May Only Be Exercised by the Council”, the following statement is added “14. To determine the dismissal the Council’s three statutory officers – the Head of Paid Service, Monitoring Officer and Chief Finance Officer”. • Under Part 3, Appointments Committee, include under the Responsibilities of Appointments Committee, ”3. within relevant legislation to consider matters relating to the discipline and dismissal of the Council’s three statutory officers – the Head of Paid Service, Monitoring Officer and Chief Finance Officer and where appropriate refer to the Council, for decision”. • Under Part 3, Chief Officers’ Investigation Committee, amend paragraph 1 of the Responsibilities of the Chief Officers’ Investigating Committee to read “to determine matters of discipline referred to it under the JNC Scheme of Conditions of Service for Chief Officers, except for the Council’s three statutory officers – the Head of Paid Service, Monitoring Officer, and Chief Finance Officer”.

4. Implications

a) For service users None.

b) Strategic & Policy None.

c) Financial – 16/487 The new arrangements may incur additional costs in the remuneration and payments of allowances to an independent person. There are no specific budgets for any additional costs. d) Legal – 204/07/15 The proposal contained in this report will ensure legal compliance with the Local Authorities (Standing Order) (England) (Amendment) Regulations 2015.

e) Human Resources It remains the case under general employment law principles that an essential part of a fair dismissal of any employee is that a fair and objective investigation is carried out. Under the new process Council will still need to ensure that a proper independent investigation takes place.

Implementation of the 2015 Regulations does not by itself remove any specific existing contractual obligations with the parties concerned to follow the previous process. Where such contractual requirements exist, appropriate action to effect the change will be needed.

f) Community Safety, Equal Opportunity, Environmental None.

g) Whether this is a key decision, and if so the reference number. Not applicable.

6. Recommendations

6.1 That the proposals outlined in paragraphs 4.1 and 4.2 of this report are approved by Council.

6.2 That budget provision is secured if there are unbudgeted additional costs.

Background Papers Location Report to Council by Head of HR & OD – 18 June, 2015 Head of HR & OD’s Office