(Public Pack)Agenda Document for Audit Committee, 23/11/2020 14:00

Public Document Pack Audit Committee Agenda

Date: Monday, 23 November 2020 Time: 2.00 pm Venue: Virtual Meeting - Zoom Committee Meeting with Public Access via YouTube

Distribution:

Councillors: Nicola Bowden-Jones, Chris Jackson, Olly Mead, Liz Radford, Clive Stevens, Tim Kent, Adebola Adebayo, Simon Cookson and Mark Brain

Copies to: Simba Muzarurwi (Chief Internal Auditor), Mike Jackson (Chief Executive), Denise Murray (Director - Finance & Section 151 Officer), Nancy Rollason (Head of Legal Service), Alison Mullis, Tony Whitlock, Lucy Fleming (Head of Democratic Engagement) and Michael Pilcher

Issued by: Allison Taylor, Democratic Services City Hall, PO Box 3167, Bristol BS3 9FS Tel: 0117 92 22237 E-mail: [email protected] Date: Friday, 13 November 2020 Audit Committee – Agenda Agenda

1. Welcome, Introductions and Safety Information (Pages 4 - 5) 2. Apologies for absence.

3. Declarations of Interest To note any declarations of interest from the Councillors. They are asked to indicate the relevant agenda item, the nature of the interest and in particular whether it is a disclosable pecuniary interest.

Any declarations of interest made at the meeting which is not on the register of interests should be notified to the Monitoring Officer for inclusion.

4. Minutes of Previous Meeting To agree the minutes of the previous meeting as a correct record. (Pages 6 - 12)

5. Action sheet (Pages 13 - 16) 6. Public Forum Up to 30 minutes is allowed for this item.

Any member of the public or Councillor may participate in Public Forum. The detailed arrangements for so doing are set out in the Public Information Sheet at the back of this agenda. Public Forum items should be emailed to [email protected] and please note that the following deadlines will apply in relation to this meeting:-

Questions - Written questions must be received 3 clear working days prior to the meeting. For this meeting, this means that your question(s) must be received in this office at the latest by 5 pm on Tuesday 17 November 2020.

Petitions and Statements - Petitions and statements must be received on the working day prior to the meeting. For this meeting this means that your submission must be received in this office at the latest by 12.00 noon on Friday 20 November 2020. Audit Committee – Agenda

7. Audit Committee Work Programme To note the work programme. (Pages 17 - 18)

8. External Audit Update Report (Pages 19 - 33) 9. Annual Report of Local Government and Social Care Ombudsman Decisions (Pages 34 - 53) 10. Access to Information (Pages 54 - 58) 11. Lord Mayor's Protocol (Pages 59 - 66) 12. Internal Audit Quality Assurance and Improvement Programme (Pages 67 - 95) 13. Internal Audit Update (Pages 96 - 99) 14. Counter Fraud Half Year Update Report (Pages 100 - 122) 15. Audit Committee Half Year Report (Pages 123 - 131) 16. Treasury Management Mid Year Report 20/21 (Pages 132 - 148) Agenda Item 1

www.bristol.gov.uk Public Information Sheet

Inspection of Papers - Local Government (Access to Information) Act 1985

You can find papers for all our meetings on our website at https://www.bristol.gov.uk/council-meetings

Covid-19: changes to how we hold public meetings

Following changes to government rules, we’ll use video conferencing to hold all public meetings, including Cabinet, Full Council, regulatory meetings (where planning and licensing decisions are made) and scrutiny.

Councillors will use Zoom or Skype for Business to take part in the meetings and vote on agenda items.

We’ll stream the meetings live on YouTube.

You can submit statements, questions and petitions ahead of the meetings in the same way as usual. We will send all statements to participating Councillors in advance and respond to all questions and petitions in writing.

You will not be able to present a public submission at the meeting at the current time. We’re looking into options for increasing public participation at meetings held using video conferencing, including being able to present a statement or ask supplementary questions using Zoom. We hope to have this in place in by late May 2020.

Email [email protected] if you have any questions. Public Forum

Members of the public may make a written statement ask a question or present a petition to most meetings. Your statement or question will be sent to the Committee. Please submit it to [email protected] The following requirements apply:

 The statement is received no later than 12.00 noon on the working day before the meeting and is about a matter which is the responsibility of the committee concerned.  The question is received no later than 5pm three clear working days before the meeting.  Any statement submitted should be no longer than one side of A4 paper. For copyright reasons, we are unable to reproduce or publish newspaper or magazine articles that may be attached to statements.

By participating in public forum business, we will assume that you have consented to your name and the details of your submission being recorded and circulated to the Committee and published within the minutes. Your statement or question will also be made available to the public at the meeting to which it relates and may be provided upon request in response to Freedom of Information Act requests in the future.

Page 4 www.bristol.gov.uk

We will try to remove personal and identifiable information. However, because of time constraints we cannot guarantee this, and you may therefore wish to consider if your statement contains information that you would prefer not to be in the public domain. Public Forum statements will not be posted on the council’s website. Other committee papers may be placed on the council’s website and information within them may be searchable on the internet.

During the meeting:

 Public Forum is normally one of the first items on the agenda, although statements and petitions that relate to specific items on the agenda may be taken just before the item concerned.  There will be no debate on statements or petitions. Public Forum will be circulated to the Committee members prior to the meeting and then noted at the meeting.  Please note that only written submissions can be considered at this time.

For further information about procedure rules please refer to our Constitution https://www.bristol.gov.uk/how-council-decisions-are-made/constitution

The privacy notice for Democratic Services can be viewed at www.bristol.gov.uk/about-our- website/privacy-and-processing-notices-for-resource-services

Webcasting/ Recording of meetings

Members of the public attending meetings or taking part in Public forum are advised that all Full Council and Cabinet meetings and some other committee meetings are now filmed for live or subsequent broadcast via the council's webcasting pages. The whole of the meeting is filmed (except where there are confidential or exempt items).

Other formats and languages and assistance for those with hearing impairment

You can get committee papers in other formats (e.g. large print, audio tape, braille etc) or in community languages by contacting the Democratic Services Officer. Please give as much notice as possible. We cannot guarantee re-formatting or translation of papers before the date of a particular meeting.

Page 5 Agenda Item 4

Bristol City Council Minutes of the Audit Committee

28 September 2020 at 2.00 pm

Members Present:- Councillors: Chris Jackson, Olly Mead, Liz Radford, Clive Stevens, Tim Kent, Adebola Adebayo, Simon Cookson and Mark Brain

Officers in Attendance:- Simba Muzarurwi (Chief Internal Auditor), Denise Murray (Director - Finance & Section 151 Officer), Alison Mullis (Deputy Chief Internal Auditor) and Michael Pilcher (Chief Accountant)

1. Welcome, Introductions and Safety Information

The Chair welcomed Members to Committee.

2. Apologies for absence.

Apologies were received from Cllr Nicola Bowden Jones

3. Declarations of Interest

Cllr Clive Stevens, declared a pecuniary interest as he has recently produced a book about local government. However, he does not believe it is necessary to withdraw from any items on the agenda.

Cllr Tim Kent declared an interest as he has a relative with an Education Health and Care Plan, and children with Special Educational Needs are likely to come up in discussion.

4. Minutes of Previous Meeting

Adebola Adebayo is incorrectly listed as Chief Internal Auditor, this needs correcting.

Once this correction is made, the minutes of the 27 August 2020 Audit Committee are agreed as a correct record.

Page 6 [email protected]

5. Action sheet

Discussion Notes: The response to Colin Molton’s Projects says that the details are available in the 30 April 2020 HR report. However, that information is not available to members of the public. It was confirmed that a list of projects was given in response to Audit Committee PQ02 on the 27 August 2020 and that this would be circulated to members after the meeting (ACTION).

6. Public Forum

The following Public Forum was received:

Questions Number Name Title

PQ1 Suzanne Audrey Committee Access to Information PQ2 Suzanne Audrey SIRO Assurance Report PQ3 Joanna Booth Bristol Energy PQ4 Joanna Booth Bristol Energy Minutes PQ5 Joanna Booth SIRO Assurance Report CQ1 Cllr Clive Stevens Committee Access to Information

Discussion notes:  The Monitoring Officer will be writing to Audit Committee members about Access to Information explaining the legal regime. This letter could potentially be made public if this is deemed appropriate. (ACTION)  PQ2 supplementary question: the response says the reports will be published at the end of the year. What is the reason for them not being published now? (ACTION)  It was confirmed to committee that answers to public forum are drafted by council officers and are not pre-approved by the chair.  PQ5 supplementary question: what is the cost of the Quality of Life Survey and the Citizen Panels? (ACTION)  PQ5 supplementary question: the response says that the BCC website has a privacy statement. However, this statement was not present in March 2018 when Impact Social did their data collection. What types of notices (if any) were present in March 2018? (ACTION)  Members asked for a list of what laws and regulations mean that audit committee cannot have Access to Information on par with Cabinet and Scrutiny. The Monitoring Officer confirmed that this would be included in his letter as previously discussed.  A recent whips meeting was discussed where it was believed that AC would get equal access to information, but it was confirmed this assumption was based on outdated advice.

Page 7 [email protected]

 The Monitoring Officer was asked for a register of decisions on when information has been released in the public interest. The MO confirmed that this would be legal advice and is therefore privileged.

7. Work Programme

Discussion notes:  Access to Information to be added to the November Audit Committee agenda. (ACTION)  November Audit Committee contains Company Assurance. Members asked whether it would be possible to do a Value for Money review of the Bristol Energy sale; however this cannot be done until the sale completes.

8. External Audit Update Report

Jon Roberts introduced the report and summarised it for the committee. This is the last time audit letters will be produced. They will be replaced by a new annual report.

Discussion Notes:  Committee recommended a workshop after the election in May once the AC membership is finalised to bring new members up to speed.  Covid-19 restrictions have put all authorities in a difficult position. It makes forward planning difficult and going concerns uncertain.  There was a discussion on External auditors triggering public interest reports following the failure of Robin Hood Energy in Nottingham. This is a potential option for Bristol Energy, but the External Auditor will decide if this is required.  This is the second year that GT has been External Auditor for BBC, so they have a better awareness of the organisation and its issues. Technical accounting has improved and information is better presented.  Value for Money sections in this report refer to 19/20 so will not cover the Bristol Energy sale. External Audit will monitor the situation for issues but will not do anything that undermines the sale.

9. Treasury Management Annual Report 2019/20

Mike Pilcher introduced the report and summarised it for the committee.

Discussion Notes:  Members asked for a list of where investments are made. There are significant sums being invested elsewhere and stability of these investments is important. It was explained that most investment was with other councils and banks. (ACTION)

Page 8 [email protected]

 There was a discussion on Capital Spending. There is a cap of 10% of the revenue stream for Capital funding. Any increase in the current level of capital expenditure would require revenue savings. The Capital Strategy is a 30 year plan with affordable borrowing to match Bristol’s infrastructure needs without impacting on revenue.  Members noted that the Ethical Investment Policy in this repost is dated 2015. The policy is currently under review and will come back to AC for approval.  New AC members coming in May 2021 will need training on treasury management and other relevant matters. The training programme should start to be developed now, as it is a significant challenge to get level of knowledge up.

10.SIRO Assurance Report

Tim O’Gara introduced the report and summarised it for the committee.

Discussion Notes:  It was confirmed that assurance is embedded via an Information Governance Board, which contains the Head of Internal Audit.  In addition to the board, there is also a programme of audit work. Last year this examined half a dozen areas of concern and took reports to the Information Board and later to the Audit Committee. This included data breaches, data processing, data sharing reports, etc. We work with the board to identify areas that need assurance.  The SIRO needs to show that information governance is effective. If you look at the work, there are weak areas being identified and the SIRO is putting measures in place that remedy these. They will need to provide assurance that the measures are successful.  Cllr Stevens requested some examples of data breach reports. The SIRO agreed to share some after the meeting. (ACTION)  Cllr Kent said that he had reported a serious data protection breach 7 months ago but had not received any update on the outcome. TK also requested figures for number of breaches and number of cyber-attacks per year. The SIRO said he would find the relevant information on Cllr Kent’s breach and would have a meeting with him to discuss the metrics. (ACTION)  The SIRO recognised that most breaches are caused by human error, which means procedures and training is vital. The ICO considers these when making an assessment.

11.Corporate Risk Report Q1

Jan Cadby introduced the report and summarised it for the committee.

Discussion Notes:  It was confirmed that BAU stands for Business as Usual.  The narrative on the SEND risk seems to blame the judicial review for the risk, when responsibility lies with the council. This should be reworded. (ACTION)

Page 9 [email protected]

 Some members discussed how housing has a knock on effect for other risks and they thought a future discussion on this would be helpful.  JC confirmed that she would be attending people scrutiny in November to discuss their risks, including SEND. SEND was added to the risk register in July. Some members thought that it should be considered high risk rather than medium.  A member asked whether it would be possible for Audit Committee to see the next iteration of the risk report before January. This will need to be checked as the report must go to Cabinet first. (ACTION)

12.Risk Management Annual Report and Improvement Plan

Jan Cadby introduced the report and summarised it for the committee. Members thanked JC and the risk team for recent improvements to the risk process and reporting.

13.Internal Audit Activity Report

Simba Muzarurwi introduced the report and highlighted the following points:  The activity report covered the period from 1 April to 31 August and confirmation was given that no new internal audit activities were undertaken in Q1 to allow management to effectively respond to Covid19. Progress made by the team in relation to Q2 priorities are summarised in Appendix 1 recognising that IA activities effectively resumed in July. As a result most of the audits earmarked for completion in Q2 are still in progress. Consistent with the rolling plan methodology, Appendix 2 highlighted areas of focus for Q3. Q4 priorities will be highlighted at the November committee.  The whistleblowing update was presented at the July committee and the half year counter fraud report for November committee will have updated details on whistleblowing.  The installation of new audit management software should improve audit data management and reporting. The process for following up and reporting agreed management actions will also be automated with this software and a demonstration can be given to committee in future.  Internal Audit is currently procuring strategic partner to build resilience in the team.

Discussion Notes:  Members were encouraged by the progress on whistleblowing, which is a subject that has been flagged at the committee several times. The July annual report showed that most actions related to whistleblowing have been implemented.  It was confirmed that whistleblowing within the external companies is the responsibility of those companies and their respective audit committees.  There are separate mechanisms for reporting incidents like suspected fraud, which can be notified via BCC. The difference between whistleblowing, grievances and fraud is outlined in the policy documents.

Page 10 [email protected]

 Members asked about Brexit risk and preparation. There is a Brexit group working on this, and there are regular updates at the relevant forums which internal audit attends. This is considered adequate oversight unless there are some major changes to Brexit before the end of the year.

The Chief Internal Auditor invited several senior officers of BCC departments into the meeting who had audit reports with limited audit assurance opinions to provide updates on the progress in implementing the agreed actions and answer questions from the committee.

Commercialisation:  Have worked closely with audit this year to improve robustness. This includes a revised strategy and action plan. It is still early stage for embedding commercialisation in planning. There have been actions to assist this e.g. proper shortlisting and assessment of opportunities.  The report is clear about what is required and actions being taken to tackle outstanding issues. There will be more work on this until audit can give reasonable assurance, but there is no estimated date for when this may happen as the nature of the work is dynamic and dependent on the market.

Trading with schools:  There was substantial audit assurance on operations. However commercialisation was limited as there is no operating plan or business model for TwS.  The 2012 proposal from cabinet established TwS as an in-house trading entity. The Phase 2 alternative service model was never explored.  Required actions were to examine new service model feasibility, review KPIs and work closely with the commercial teams to share best practice.  A full review / deep dive will happen over autumn, with an option appraisal in December. The expectation is to move out of limited assurance in the new year.  There was a discussion about whether it was a good time to enter the market with a commercial model if there has been an 8 year delay in set up and loss in market share. There is still potential in a commercial model providing that the service levels are maintained.

HR: Interims and Consultants  Following limited assurance rating, all required actions have been implemented. There is a lot more control now, e.g. any interim costing more than £500 per day has to be signed off by the CEO.  Guidance for suppliers is clear that going off contract means using the procurement system. There are also additional controls to cover staff exit costs.  Non-compliance is reported to Executive Directors or escalated to the CEO.

Data Processing  Audit issues with data processing are largely related to ownership of data and staff being aware of their own responsibilities. There are actions taking place now to address this. This includes a GDPR phase 2 project to address audit issues and specific Information Asset training.

Page 11 [email protected]

 Phase 2 will be signed off by CLB in a few weeks, but the timeline is not short. Another audit review would be around spring 2021.

Adult Social Care Debt:  Adult care charging is very complex and involves individuals with high needs. The legislation states that services have to be supplied regardless of income.  Limited assurance was related to resources and early intervention. There has been substantial recruitment. There will be a dedicated team up and running by end of month. Debt management will change focus from historical to current debt. Old debt is more likely to be written off.  There is more focus on the first 30 days and prevention measures. Service users are vulnerable, so social workers need to explain the costs early on.  Systems and processes to improve invoicing are being implemented. Also better communication and more accurate identification of opportunities for collection.  There was a discussion on the difficulty of collecting care debts from estates and the debt levels within care homes.

Members thanked officers for attending.

Meeting ended at Time Not Specified

CHAIR ______

Page 12 Audit Committee Action Sheet – actions from meeting held on 28 September

Action Item/report Action Responsible Action taken / progress number officer(s)

1 Minutes Adebola Adebayo is Oliver Harrison Done, published 6 Oct incorrectly listed as Chief Internal Auditor, this needs correcting. 2 Action Sheet Circulate Colin Molton list of Oliver Harrison Done, circulated 28 Sep projects in PQ02 27 August to Page 13 Page the committee 3 Public Forum The Monitoring Officer will be Tim O’Gara Report prepared for 23/11 Audit writing to Audit Committee Committee (relates to action 7) members about Access to Information explaining the legal regime. 4 Public Forum PQ2 supplementary question: Mayor’s Office (via Done. Response given 6 Oct

the response says the reports Oliver Harrison) Agenda Item 5 will be published at the end of the year. What is the reason for them not being published now? 5 Public Forum PQ5 supplementary question: Denise Murray Done. Response given 7 Oct what is the cost of the Quality of Life Survey and the Citizen Panels? Action Item/report Action Responsible Action taken / progress number officer(s)

6 Public Forum PQ5 supplementary question: Ben Hewkin Done. Response given 10 Nov the response says that the BCC website has a privacy statement. However, this statement was not present in March 2018 when Impact Social did their data collection. What types of notices (if any) were present Page 14 Page in March 2018? 7 Work Programme Access to Information to be Alison Mullis Complete. Report to November 2020 added to the November Audit meeting. Also the matter was Committee agenda. discussed with members at the Audit Committee effectiveness workshop on 22/10/2020, outcomes from which are covered at November 2020 Audit Committee. Action Item/report Action Responsible Action taken / progress number officer(s)

8 Treasury Members asked for a list of Mike Pilcher Done, circulated 28 Sep Management where investments are made Annual Report 2019/20 9 SIRO Assurance Cllr Stevens requested some Tim O’Gara Completed – meeting held w/c Report examples of data breach 2/11/20 reports. The SIRO agreed to share some after the meeting. 10 SIRO Assurance Cllr Kent said that he had Tim O’Gara Completed – meeting held w/c Page 15 Page Report reported a serious data 2/11/20 protection breach 7 months ago but had not received any update on the outcome. TK also requested figures for number of breaches and number of cyber-attacks per year. The SIRO said he would find the relevant information on Cllr Kent’s breach and would have a meeting with him to discuss the metrics. 11 Corporate Risk The narrative on the SEND risk Jan Cadby Report Q1 seems to blame the judicial review for the risk, when responsibility lies with the Action Item/report Action Responsible Action taken / progress number officer(s)

council. This should be reworded. 12 Corporate Risk A member asked whether it Jan Cadby Report Q1 would be possible for Audit Committee to see the next iteration of the risk report before January. This will need to be checked as the report must go to Cabinet first. Page 16 Page AUDIT COMMITTEE WORK PROGRAMME 2020/21

Meeting Date Assurance Source Report Details Routine Work ToR Ref Officer Providing Report Comments: Programme/ Other?

28th May 2020 2:00PM External Audit 2018/19 Statement of Accounts and ISA 260 Routine 1.8/1.9 External Audit Lead

Finance 2019/20 Annual Governance Statement Actions arising from 2018/19 Routine 3.1 Head of Paid Service/S151 Officer

Internal Audit 2020/21 Internal Audit Plan Routine 1.2 Chief Internal Auditor

Other Bristol Enegry Requested 2.9/3.1 S151 Officer

25th June 2020 External Audit: Update Report Routine 1.8/1.9 External Audit Lead 2:00PM Internal Audit: Internal Audit Annual Report 2019/20 Routine 1.6 Chief Internal Auditor Draft Annual Governance Statement 2019/20 Routine 2.5/4.4 Chief Internal Auditor Annual Fraud Report 2019/20 Routine 2.4/2.10 Chief Internal Auditor Audit Committee Annual Report to Full Council (Draft) Routine 5.1 Chief Internal Auditor

Risk & Insurance Corporate Risk Report (Q4) Routine 4.1/4.3 Risk & Insurance Manager

Finance: Draft Statement of Accounts 2019/20 Routine 3.1 Executive Director Resources / Director

Page 17 Page Finance

28th September 2020 External Audit: Update Report Routine 1.8/1.9 External Audit Lead 2:00 PM Finance: Treasury Management - Annual Report 2019/20 Routine 3.3 Director of Finance

Internal Audit Internal Audit Activity Report (1) Routine 1.5/1.7/2.1 Chief Internal Auditor

Risk Management: Information Risk Management New 4.1/4.3 Senior Information Risk Owner Corporate Risk Report (Q1) Routine 4.1/4.3 Risk & Insurance Manager Risk Management Annual Report and Improvement Plan New 4.1/4.3 Risk and Insurance Manager.

Customer Relations Ombudsman Report Routine 1.12 Customer Relations Manager

23rd November 2020 External Audit: Final Statement of Accounts and Annual Governance Statement for 2019/20 R 1.8/1.9/3.1 2:00 PM ISA260 Report o 1.8/1.9 External Audit Lead u Companies Companies Assurance t 2.9/3.1 Shareholder i

n Agenda Item 7 Risk Management: Review of a Specific Corporate Risk 4.1/4.3 Risk Manager / Risk Owner e R Internal Audit: Internal Audit Half-Year Activity Report (2) 1.5/1.7/2.1 Chief Internal Auditor Internal Audit - Counter Fraud Half-Year Update Report and Anti-Fraud and Anti- 2.4./2.10 Chief Internal Auditor o Corruption Policy Audit Committee Half Year Report to Full Council (Draft) 5.1 Chief Internal Auditor u

Finance: Treasury Management Half-Year Report 3.3 Director - Finance t

i 25th January 2021 External Audit: External Audit Update Report Routine 1.8/1.9 External Audit Lead 2:00 PM n

R o u t i n e R

e Meeting Date Assurance Source Report Details Routine Work ToR Ref Officer Providing Report Comments: Programme/ Other?

Internal Audit: Annual Whistleblowing Review Routine 2.4 Chief Internal Auditor Internal Audit Quality Assurance and Improvement Plan Routine 1.6 Chief Internal Auditor

Risk Management: Corporate Risk Report (Q2) and Risk Management Policy Routine 4.1/4.3 Risk and Insurance Manager

Annual Internal Audit Opinion – Root Cause Analysis - CLB (DM)

22nd March 2021 Risk Management: Review of a Specific Corporate Risk Routine 4.1/4.3 Risk Owner/Risk Manager 2:00 PM Corporate Risk Report (Q3) Routine 4.1/4.3 Risk and Insurance Manager

External Audit: Audit Update Routine 1.8/1.10 External Audit Lead Grants Audit Report Routine 1.8/1.10 External Audit Lead

Internal Audit: Draft Annual Plan 2021/22 Routine 1.2 Chief Internal Auditor Internal Audit Activity Report (3) Routine 1.5/1.7/2.1 Chief Internal Auditor

Legal: Review of Committee Terms of Reference Routine Director: Legal& Democratic Services Corporate: External Inspection Reports Routine 1.12 Head of Corporate Finance Page 18 Page Agenda Item 8

Audit Committee 23 November 2020

Report of: Grant Thornton UK LLP

Title: Grant Thornton Audit Progress Report 2019/20

Ward: City Wide

Officer Presenting Report: Grant Thornton UK LLP

Recommendation The Audit Committee note, and comment as appropriate, on Grant Thornton’s Audit Progress Report for 2019/20

Summary

Attached to this report is Grant Thornton’s Audit Progress Report for 2019/20. The report sets out progress to date along with an outline of the work outstanding and a time line for its completion. It also provides a summary of emerging national issues and developments relevant to the public sector.

Page 19 Policy

None affected by this report. Grant Thornton are the Council’s appointed external auditors. In carrying out their audit and inspection duties they have to comply with the relevant statutory requirements, namely the Local Audit and Accountability Act 2014.

Consultation

1. Internal Director of Finance and Senior Finance Officers.

2. External None

Background and Context

1. Jon Roberts will be attending the Committee and will be pleased to answer Members’ questions.

Other Options Considered

Not applicable

Risk Assessment

None necessary for this report

Public Sector Equality Duties

None necessary for this report

Legal and Resource Implications

Legal

None arising from this report Financial

None arising from this report.

Land Not applicable

Personnel Not Applicable

Page 20 Appendices: Appendix 1: Grant Thornton’s Audit Progress Plan 2019/20

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

None

Page 21 Audit Progress Report and Sector Update

Page 22 Page Bristol City Council Year ending 31 March 2020

November 2020 Public

Contents

Section Page Introduction 03 Progress at November 2020 04 Audit Deliverables 08 LG Sector Update 09 Page 23 Page

Jon Roberts This paper provides the Audit Committee with a report on progress in Engagement Lead delivering our responsibilities as your external auditors. T 0117 305 7699 The paper also includes a summary of emerging national issues and developments that may be relevant to you as a M 0791 938 0840 local authority. E [email protected] Members of the Audit Committee can find further useful material on our w ebsite, w here w e have a section dedicated to our w ork in the public sector. Here you can dow nload copies of our publications w ww.grantthornton.co.uk. If you w ould like further information on any items in this briefing, or w ould like to register w ith Grant Thornton to

Page 24 Page Jackson Murray receive regular email updates on issues that are of interest to you, please contact either your Engagement Lead or Engagement Manager./ Engagement Manager T 0117 305 7859 M 0782 502 8920 E [email protected]

Financial Statements Audit Valuation of land and buildings We received the draft financial statements and officers provided initial w orking It took a considerable amount of time to obtain the information required to allow us to pick papers to support these at the end of August 2020. The audit to date has been our sample of land and buildings asset valuations to test. We w ere able to select this undertaken remotely given the restrictions that remain in place due to the Covid-19 sample at the beginning of November follow ing us beginning this process at the start of pandemic and finance officers and the audit team are holding tw ice-w eekly September. Our sample is now w ith the Council’s valuers to compile the relevant supporting progress calls to ensure that the audit progresses smoothly and that any issues evidence. We w ill w ork w ith officers to agree essential improvements to your w orking can be raised in a timely manner. papers in this area for the future. Our experience from other organisations is that the remote audits do take more Our sample testing of the valuations of the Council’s surplus assets and Council Dw ellings time than w e w ould have expected it to under normal conditions. We continue to is nearly complete. Page 25 Page utilise the technology available to us to ensure that w e can progress the audit as We have identified an adjustment to the valuation of Council Dw ellings that w as not posted efficiently as possible w hilst obtaining the assurances that w e require to allow us to to the draft financial statements, totalling £8m. The Council’s valuer identified a total discharge our responsibilities. movement on Council Dw elling of £13m, how ever the Council only posted £5m of this As our second year as your auditors there are some efficiencies to the audit adjustment to the draft financial statements. We expect that this adjustment w ill be process as a result of the learning from the 2018/19 audit for both ourselves and processed in the final audited financial statements. the finance team, and betw een us w e have sought to tackle some of the areas that Valuation of Investment Properties caused challenge during the previous year’s audit. We have selected our sample of investment property valuations to review and are currently We set out below some of the progress w e have made against our significant risk aw aiting responses to some specific queries relating to these items. areas: Valuation of the defined net benefit liability Management override of controls (presumed risk under ISA 240) We have completed a significant amount of our w ork in this area and aw ait responses to We are aw aiting evidence of leavers in year prior to being able to select our sample our final queries from the actuary and Avon Pension Fund. of journals for review . We also aw ait the letter of assurance from the auditor of Avon Pension Fund. We raised an issue in 2018/19 regarding spreadsheet journal authorisations. This w as not fully resolved by the beginning of the 2019/20 financial year. Incomplete or inaccurate financial information transferred to the new payroll system Revenue recognition (presumed risk under ISA 240 – relates to the Group We have begun to review the reconciliation betw een the old and new payroll systems. accounts and Bristol Energy specifically) We have also selected our sample of individual payments for testing. This is a risk at the group level and the company auditor, PWC, audit the financial Valuation of long term investments statements of Bristol Energy Limited. Once their audit is complete w e w ill obtain assurances from PWC over this risk. Our valuation colleagues have review ed the Council’s expert’s valuation of the unquoted equity investment that it holds in relation to the port. They have concluded that the valuation We aw ait the conclusion of the company audits by PWC before considering the is not unreasonable. We are satisfied that no material issue arises from this valuation. group consolidation w orkings.

We have also shared our valuation colleagues’ initial queries on the valuation of Bristol Energy Limited at 31 March 2020 w ith finance officers for consideration and Value for Money – risk assessment response. Within our audit plan w e identified tw o significant risks: We have also considered the accounting treatment of the loan provided to Goram • Financial sustainability Homes Limited in 2019/20 and concluded that at 31 March 2020 the classification and treatment w as appropriate. Management should review this treatment annually • Governance arrangements for the Council's subsidiaries. In view of recent events this in line w ith the Goram Homes Limited business plan and accounting standards. review has focused on the Council’s arrangements relating to Bristol Energy. Financial Sustainability We have review ed the Council’s 2019/20 revenue outturn position including the delivery of

Page 26 Page Value for Money planned savings, as reported to Cabinet in June 2020. The Council reported a deficit of £5.3m, w ith the tw o key overspends being in Adult Social Care and Commercialisation and The scope of our w ork is set out in the guidance issued by the National Audit Citizens. The Council also only partially delivered its saving plans of £17.8m, w ith £7m Office. The Code requires auditors to satisfy themselves that; "the Council has being carried forw ard to 2020/21, increasing the financial pressure on 2020/21. made proper arrangements for securing economy, efficiency and effectiveness in its use of resources". We have begun to consider the Medium Term Financial Planning process. At the onset of the lockdow n, finance officers undertook scenario planning, considering the impact of the The guidance confirmed the overall criterion as: "in all significant respects, the lockdow n. Considerations of the short and longer-term financial impact of Covid-19 on the audited body had proper arrangements to ensure it took properly informed Council continue and are better understood as time elapses. As the lockdow n occurred late decisions and deployed resources to achieve planned and sustainable outcomes in the financial year, the impact of Covid-19 in 2019/20 has been moderate. for taxpayers and local people". We have discussed these arrangements w ith finance officers and w ill continue to have The three sub criteria for assessment to be able to give a conclusion overall are: discussions w ith management as w e address the w ork required. We w ill report our Value • Informed decision making for Money conclusion in the audit findings report. • Sustainable resource deployment • Working w ith partners and other third parties Details of our initial risk assessment to determine our approach w as included in our Audit Plan. We w ill report our w ork in the Audit Findings Report.

Value for Money – risk assessment continued Review of documentation w hich has included: Review of Governance arrangements – Bristol Energy • terms of reference and roles and responsibilities for all committees and groups involved in the governance arrangements We considered that the governance and informed decision making arrangements in • Constitution place for Bristol Energy to be a potential significant risk to the Council’s VFM • articles of association and shareholder agreements for Bristol Energy conclusion. Therefore w e have begun a detail review that focuses on arrangements • minutes and papers for the committees and groups w ithin the Council. We have not considered the arrangements w ithin Bristol Holding • advice provided by third parties to support the decision making process Company or any of the subsidiaries. • performance management information provided in 2019/20. The review is being undertaken in tw o stages: We are also considering the: Page 27 Page 1. Strategic overview - to establish if the adequacy of arrangements can be • key decisions taken in 2019/20 - approval of 2019/20 and 2020/21 business plan determined from a high-level review of the key decisions made in 2019/20, including documentation provided, advice relating to these decisions and w hy the supporting documentation and a limited number of interview s 2020/21 business plan w as subsequently considered not fit for purpose • options appraisal and decision to pursue an accelerated sale of BE 2. Detailed review - a deep drive to establish if the Council had adequate • reserved matter decisions taken for BE in 2019/20 arrangements in place to take properly informed decisions. • involvement of City Leap and its impact on decision making. We have completed the strategic overview and a large proportion of stage tw o. We have received a request for consideration of a public interest report. This request is The follow ing is a summary of the w ork undertaken to date: being considered alongside our value for money conclusion w ork and at this stage w e are Virtual meetings w ith: looking to make our decision at the same time that w e conclude on value for money arrangements. • Mayor • Deputy Mayor Joint Local area SEND inspection • Independent Shareholder Advisors In November 2019 the Council received a letter setting out the findings of a joint Ofsted and • Chair Audit Committee the Care Quality Commission (CQC) inspection. As a result of the findings of this • Executive Chair Bristol Holding inspection, and in accordance w ith the Children Act 2004 Regulations 2014, the • Monitoring officer inspectorate determined that a Written Statement of Action w as required because of • Solicitor w ho supports the Council’s companies and the Shareholder Group significant areas of w eakness in the local area’s practice. The Council and the Clinical • Chair of the Overview and Scrutiny Management Board Commissioning Group are jointly responsible for submitting the w ritten statement to Ofsted. • Vice Chair of the Overview and Scrutiny Management Board • Director of Finance We consider that this is an additional significant VfM risk. We w ill consider the joint Written • Shareholder Liaison Manager Statement of Action produced in response to this inspection and the progress made to date by the Council since the Statement of Action w as issued.

Other matters Objection We have received an objection from a local elector in accordance w ith paragraph 27 of the Local Audit and Accountability Act 2014. The objection is not of a financial or accounting nature and relates to governance and HR. We w ill consider this objection in accordance w ith the requirements of the legislation, and w e do not expect it to impact on our audit opinion on the financial statements. Page 28 Page

2019/20 Deliverables Planned Date Status Fee Letter April 2019 Complete Confirming audit fee for 2019/20.

Audit Plan July 2020 Complete We are required to issue a detailed audit plan to the Audit Committee setting out our proposed approach in order to give an opinion on the Council’s 2019/20 financial statements and a Conclusion on the Council’s Value Page 29 Page for Money arrangements.

Audit Findings Report January 2021 Not yet due We anticipate that the Audit Findings Report will be reported to the January Audit Committee.

Auditors Report January 2021 Not yet due This is the opinion on your financial statements, annual governance statement and value for money conclusion.

Annual Audit Letter February 2021 Not yet due This letter communicates the key issues arising from our work.

LG Sector update Page 30 Page

The Independent Review into the Oversight of Local Audit The OLAR w ould manage, oversee and regulate local audit w ith the follow ing key and the Transparency of Local Authority Financial Reporting – responsibilities: “The Redmond Review” was published on 8 September. • procurement of local audit contracts; • producing annual reports summarising the state of local audit; The review has examined the effectiveness of local audit and its ability to demonstrate accountability for audit performance to the public. It also considered w hether the current • management of local audit contracts; means of reporting the Authority’s annual accounts enables the public to understand this • monitoring and review of local audit performance; financial information and receive the appropriate assurance that the finances of the authority are sound. • determining the code of local audit practice; and The Review received 156 responses to the Calls for View s and carried out more than 100 • regulating the local audit sector. Page 31 Page interview s. The Review notes “A regular occurrence in the responses to the calls for view s The current roles and responsibilities relating to local audit discharged by the Public Sector suggests that the current fee structure does not enable auditors to fulfil the role in an entirely Audit Appointments (PSAA); Institute of Chartered Accountants in England and Wales satisfactory w ay. To address this concern an increase in fees must be a consideration. With (ICAEW); FRC; and The Comptroller and Auditor General (C&AG) to be transferred to the 40% of audits failing to meet the required deadline for report in 2018/19, this signals a OLAR. serious w eakness in the ability of auditors to comply w ith their contractual obligations. The current deadline should be review ed. A revised date of 30 September gathered considerable How you can respond to the Review support amongst respondents w ho expressed concern about this current problem. This only in part addresses the quality problem. The underlying feature of the existing framew ork is the One of the recommendations w as for local authorities to implement: absence of a body to coordinate all stages of the audit process.” The governance arrangements w ithin local authorities be review ed by local councils w ith the Key recommendations in the report include: purpose of: • A new regulator - the Office of Local Audit and Regulation (OLAR) to replace the • an annual report being submitted to Full Council by the external auditor; Financial Reporting Council’s (FRC) role and that of Public Sector Auditor Appointments • consideration being given to the appointment of at least one independent member, (PSAA) suitably qualified, to the Audit Committee; and • Scope to revise fees - the current fee structure for local audit be revised to ensure that • formalising the facility for the CEO, Monitoring Officer and Chief Financial Officer (CFO) adequate resources are deployed to meet the full extent of local audit requirements to meet w ith the Key Audit Partner at least annually. • Move back to a September deadline for Local Authorities - the deadline for publishing Whilst Redmond requires legislation, in practice the second and third bullets are things w hich audited local authority accounts be revisited w ith a view to extending it to 30 September authorities could start doing now . from 31 July each year • Accounts simplification - CIPFA/LASAAC be required to review the statutory accounts to The full report can be obtained from the gov.uk w ebsite: determine w hether there is scope to simplify the presentation of local authority accounts. https://w ww.gov.uk/government/publications/local-authority-financial-reporting-and-external- audit-independent-review

On 1 April 2020, the National Audit Office introduced a new Implications of the changes Code of Audit Practice which comes into effect from audit Grant Thornton very much w elcomes the changes, w hich w ill support auditors in undertaking and reporting on w ork w hich is more meaningful, and makes impact w ith audited bodies and year 2020/21. The most significant change in the Code is the public. We agree w ith the move aw ay from a binary conclusion, and w ith the replacement the introduction of a new ‘Auditor’s Annual Report’, which of the Annual Audit Letter w ith the new Annual Auditor’s Report. The changes w ill help pave the w ay for a new relationship betw een auditors and audited bodies w hich is based around brings together the results of all the auditor’s work across constructive challenge and a drive for improvement. the year. The Code also introduced a revised approach to The follow ing are the main implications in terms of audit delivery: the audit of Value for Money. • The Auditor’s Annual Report w ill need to be published at the same time as the Auditor’s

Page 32 Page Report on the Financial Statements. Value for Money - Key changes • Where auditors identify w eaknesses in Value for Money arrangements, there w ill be There are three main changes arising from the NAO’s new approach: increased reporting requirements on the audit team. We envisage that across the • A new set of key criteria, covering governance, financial sustainability and improvements country, auditors w ill be identifying more significant w eaknesses and consequently in economy, efficiency and effectiveness making an increased number of recommendations (in place of w hat w as a qualified Value for Money conclusion). We w ill be w orking closely w ith the NAO and the other audit firms • More extensive reporting, w ith a requirement on the auditor to produce a commentary on to ensure consistency of application of the new guidance. arrangements across all of the key criteria, rather than the current ‘reporting by exception’ • The new approach w ill also potentially be more challenging, as w ell as rew arding, for approach audited bodies involving discussions at a w ider and more strategic level. Both the • The replacement of the binary (qualified / unqualified) approach to VfM conclusions, w ith reporting, and the planning and risk assessment w hich underpins it, w ill require more far more sophisticated judgements on performance, as w ell as key recommendations on audit time, delivered through a richer skill mix than in previous years. any significant w eaknesses in arrangements identified during the audit.

The new approach to VfM re-focuses the work of local auditors to: The Code can be accessed here: https://w ww.nao.org.uk/code-audit-practice/w p- • Promote more timely reporting of significant issues to local bodies content/uploads/sites/29/2020/01/Code_of_audit_practice_2020.pdf • Provide more meaningful and more accessible annual reporting on VfM arrangements The Auditor Guidnace Notes can be accessed here: issues in key areas https://w ww.nao.org.uk/code-audit-practice/w p- • Provide a sharper focus on reporting in the key areas of financial sustainability, content/uploads/sites/29/2019/12/AGN-03-Auditors-Work-on-Value-for- governance, and improving economy, efficiency and effectiveness Money-Arrangements.pdf

• Provide clearer recommendations to help local bodies improve their arrangements.

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL).GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. This proposal is made by Grant Thornton UK LLP and is in all respects subject to the negotiation, agreement and signing of a specific contract/letter of engagement. The client names quoted within this proposal are disclosed on a confidential basis. All information in this proposal is released strictly for the purpose of this process and must not be disclosed to any other parties without express consent from Grant Thornton UK LLP. grantthornton.co.uk Agenda Item 9

Report for Audit Committee

Audit Committee 23rd November 2020

Report of: Tim O’Gara, Monitoring Officer

Title: Annual Report of Local Government and Social Care Ombudsman Decisions

Ward: Citywide

Officer Presenting Report: Nancy Rollason Head of Legal Service

Recommendation

That the Audit committee note the report and refer to Full Council for consideration.

Summary

The report summarises findings made by the Local Government and Social Care Ombudsman (LGO) in 2019/20 in respect of the Council. There were no public reports during this time.

The significant issues in the report are:

The LGO concluded that there were 20 upheld complaints out of a total of 130 cases in 19/20 as compared to 12 complaints upheld out of a total of 124 cases in the previous year.

Housing 4 Benefits & Tax 3 Education & Children’s Services 1 Adult Care Services 3 Environmental Services & Public Protection 8 Corporate & Other Services 1

Put last years in brackets

Any changes made or action taken as a result of the findings are noted in the report at Appendix 1. Page 34 Report for Audit Committee

Context

1. This report is presented to the Committee to consider for referral to Full Council in line with the duty to report to the Full Council where findings of maladministration or fault have been made by the Ombudsman, summarising the findings made.

2. The Ombudsman performance data includes lessons learnt with a view to looking at wider improvements that can be achieved. The Ombudsman has published an interactive map of council performance showing annual performance data for all councils in England, with links to published decision statements, public interest reports, annual letters and information about service improvements that have been agreed by each council. It also highlights those instances where each authority offered a suitable remedy to resolve a complaint before the matter came to the Ombudsman, and the authority’s compliance with the recommendations made to remedy complaints:

https://www.lgo.org.uk/your-councils-performance

st 3. The Ombudsman has sent the Council all findings made in the year ending the 31 March 2019.

4. The requirement to report to Full Council applies to all Ombudsman complaint decisions, not just those that result in a public report.

5. The LGO has upheld 20 cases in the year to March 31st 2020 compared to 12 the previous year.

6. To put this figure in to context, the Council dealt with 6,942 Stage 1 and Stage 2 complaints in 2019/20 giving an escalation rate to the LGO of 1.88% of the total number of cases and 0.29% in relation to the number of upheld cases.

7. The link below taken from the LGSCO website shows that the Council’s upheld rate of 61% is higher than the UK authority average of 56%. Of the upheld cases the Council has provided satisfactory remedies in 10% of cases compared with the national average of 11%. https://www.lgo.org.uk/your-councils-performance/bristol-city-council/statistics

8. In respect of cases where the LGO has found that routine mistakes and service failures have been made, and the Council has agreed to remedy the complaint by implementing the recommendations, the Ombudsman is of the view that the duty to report is satisfactorily discharged if the Monitoring Officer makes a periodic report to the Council summarising the findings on all upheld complaints over a specific period of time.

9. Appendix 1 sets out a summary of the findings made by the LGO, remedies agreed by the Council and lessons learnt.

10. Appendix 2 and 3 sets out comparitor information with other Authorities including by matter and decision respectively

11. The Annual letter from the LGO to the Council is at Appendix 4

12. The Ombudsman has commented in the annual letter:-

13. This year I have had concerns about your Council providing delayed responses to investigation enquiries. In several cases the introduction of a new complaints IT system was cited as the reason for the delay. In some instances, the Council had no trace of our enquiry letters, emails

Page 35 Report for Audit Committee

were not responded to, and letters had not been forwarded to the appropriate officers. The Council was unable to access information to respond to one set of enquiries because it was stored on the personal computer of an officer on long term sick leave.

14. In a further case we had to make additional enquiries because the initial response was incomplete. It was only when a witness summons was threatened that the information was provided. The failure to provide a timely response results in delayed investigations and can cause further frustration to complainants. I trust the Council will consider ways to improve its responses to this office to ensure future investigations are not unnecessarily delayed

15. Officers have considered the comments made. Now that the new iCasework system is in place, all case information received from August 2019 is held in on the system, including documents as well as data input, and so with powerful reporting functionality the analysis of complaints will be easier to assimilate and quicker to analyse and respond to. Resource in the team has been increased to 2 FTE to enable a proactive response to complaints and investigation, and the team has moved from Citizen Services to the Information Governance team. This is a good fit for the team, and means that support for the team and overview of cases will be maintained in line with relevant legislation and guidance.

Proposal

That the Committee note the report and refer to Full Council for consideration.

Legal and Resource Implications

Legal

This report is made in compliance with the Council’s duty to report Findings of maladministration or fault to Full Council

Legal advice provided by Nancy Rollason Head of Legal Service

Financial

Appendices:

Appendix 1 – Summary of complaints upheld and lessons learnt Appendix 2 – Comparitor data re subject matter Appendix 3 – Comparitor data re decision Appendix 4 – Annual letter from the LGO

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

None

Page 36 Bristol City Council (19 008 584)

Statement - Upheld – Adult Care charging - 23-Mar-2020

Ombudsman summary: Mr C's daughter, Mrs D, says the Council failed to invoice him for adult social care services by email, as requested, for over a year. It then presented a bill for nearly £9,000 which he could not pay. She says this caused her and Mr C stress and means he cannot afford necessary repairs on his home. The Council was at fault for its failure to send invoices by email. But this fault caused limited injustice. Mrs D knew what the services cost and how long Mr C had received them without receiving invoices by email. The Council has agreed to pay Mr C £100 and to accept a reasonable repayment plan.

Bristol’s learning, remedy and service improvement plan: we were at fault for our failure to invoice for adult social care services by email, as requested, for over a year. We paid £100 and agreed a reasonable repayment plan. The cause of this was a glitch which meant that the change in address for the Power of Attorney was not picked up by the system, so the invoices did not go to them. We have investigated and this appears to have been a one off. However, the service is mindful of ensuring that people who have Power of Attorney receive appropriate information

Bristol City Council (19 002 308)

Statement - upheld - Noise complaint - 13-Mar-2020

Ombudsman summary: The Ombudsman upholds Mr X's complaint about the Council's handling of his noise nuisance complaint. The Council's communication and record keeping was poor. The Council was not at fault for deciding the noise was not a statutory nuisance. The Council will apologise to Mr X and carry out service improvements.

Bristol’s learning, remedy and service improvement plan: we did not uphold this complaint during our internal process and investigations. We apologised and offered reassurance that we would provide training and guidance to staff.

Officers have been reminded to

 store case-specific files so they can be accessed by any member of the team. The Council will remind officers of  review noise nuisance cases every four weeks.  communicate the outcome of each review to the complainant in each case.  communicate its decision in writing.  respond to complaints at stage two within the deadline

A number of changes have been implemented to the management of noise cases by the Neighbourhood Enforcement Team. Dates are set by case officers on the case management system for regular case reviews which also generate auto reminders. Contact is made with the reporter at review stage and a plan detailing how the case will be progressed and how

Page 37 contact can be made with the case officer is provided. Case allocation has been adapted to avoid officers working across multiple case management systems and this has enhanced understanding of these systems resulting in improvements in officers’ ability to interrogate records and improved record keeping. The council has a new system for managing complaints which triggers reminders of response deadlines for the officers dealing with complaints and their managers. Response performance is monitored closely

Bristol City Council (18 011 958)

Statement - upheld – Service unspecified - 05-Mar-2020

Ombudsman summary: Mr B complains that he did not receive proper support from the Council through the Bristol (Syrian Refugee) Resettlement Scheme. The Council was at fault because it initially placed him in a property which was too small, did not explain deductions from a deposit, did not deal with a grant application, did not properly consider a request for a s17 child in need of assessment and did not deal with his complaint properly. Mr B's daughter missed out on a grant payment and it is unclear whether Mr B's son requires help. The Council has agreed to apologise to Mr B, pay Mr B's daughter £304.80 and complete a s17 assessment regarding Mr B's son.

Bristol’s learning, remedy and service improvement plan: Syrian Resettlement Programme Faults • we placed family into housing which was too small • we did not arrange a meeting to explain deductions from deposit • we did not deal with complaint properly • we did not deal with a grant application properly • we did not respond to a request for a s17 needs assessment Remedies • we apologised • we paid the daughter £304.80 in respect of the failed grant application • we completed a s17 needs assessment for the son (no needs identified).

We have changed our housing offer around housing allocations and deposits and we refer people for assessments and grant applications at their request even if it is our professional assessment that they do not meet the criteria for a service. And we changed our complaints process so that it’s clearer that we translate. We actively promote this to the service users.

Bristol City Council (19 006 858)

Statement - upheld Housing Benefit and Council Tax benefit - 04-Mar-2020

Ombudsman summary: There was fault by the Council. It did not review Mrs B's care plan or advise her, or her family that she was not entitled to housing benefit (HB) to pay the rent of her

Page 38 flat while she was in residential care. The Council's shortcomings meant Mrs B incurred a debt she may have otherwise avoided. The Council has made improvements to how it handles these situations. It agreed to refund the amount of overpaid HB to Mrs B's estate.

Bristol’s learning, remedy and service improvement plan:

See case 19 005 844 (below) for remedies as identical remedy applied

Bristol City Council (19 005 844)

Statement - upheld Assessment and care plan - 04-Mar-2020

Ombudsman summary: There was fault by the Council. It did not review Mrs B's care plan or advise her, or her family that she was not entitled to housing benefit (HB) to pay the rent of her flat while she was in residential care. The Council's shortcomings mean Mrs B incurred a debt she may have otherwise avoided. The Council has made improvements to how it handles these situations. It agreed to refund the amount of overpaid HB to Mrs B's estate.

Bristol’s learning, remedy and service improvement plan:

Faults The Care plan was not reviewed. The service user and family were not advised that she was not entitled to Housing Benefit to pay the rent of her flat while she was in residential care Learning and improvement Transfers between teams are handled better, information about tenancies are better recorded, and social workers are aware there are benefit issues when people are living away from a home but have not ended their tenancy. Case transfer guidance was introduced in within Adult Care and Support subsequent to the date that this complaint issue was developed, including clear guidance that SW hand over pertinent information around things like tenancies. We have apologised and we have written off the debt and refunded the amount of overpaid HB

Bristol City Council (19 007 854)

Statement – upheld - Allocations - 24-Feb-2020

Ombudsman summary: Ms X complained the Council failed to deal properly with her application for housing. There was no delay in the time taken for the Council to award Ms X housing priority and no fault in the way the Council carried out a suitability review of the property it offered her.

But there was fault when the Council failed to consider medical evidence Ms X submitted, but this did not cause her an injustice. Ms X also complained the Council breached data protection legislation but I will not investigate this. This is because matters about data breaches are best left to the Information Commissioner's Office.

Bristol’s learning, remedy and service improvement plan:

Page 39 There was no learning associated with this case, the evidence in question was in the normal work queue, and was dealt with within normal time scales. We did not agree with the Investigators assessment that we had failed to consider the medical evidence, as this was considered and relevant priority awarded, however it was not considered worth challenging the decision further as there were no remedies required.

Bristol City Council (19 015 501)

Statement - upheld - Licensing - 12-Feb-2020

Ombudsman summary: Mr X complains that the Council did not apply the proper discounts before charging him for a property licence. The Ombudsman will not investigate this complaint because the Council has agreed to take appropriate action to remedy any injustice to Mr X.

Bristol’s learning, remedy and service improvement plan:

There was no learning from this case. The complainant had not provided the right documents, when these were presented the issue was rectified.

Bristol City Council (19 000 112)

Statement - upheld – Noise - 11-Feb-2020

Ombudsman summary: Ms X complains about the Council's investigation of her reports of noise nuisance from a nearby pub. There was fault by the Council because it disregarded noise from people leaving the pub when it served a noise abatement notice and there was unreasonable delay in its investigations. The Council agreed to remedy the injustice to Ms X by extending its nuisance investigation and making a payment to reflect the distress she suffered.

Bristol’s learning, remedy and service improvement plan:

Payment was issued to the complainant, and future monitoring of the issue was scheduled, however this was overtaken by the Covid-19 situation which led to the premises in question being closed for some time.

Bristol City Council (19 003 940)

Statement - upheld - Noise - 27-Jan-2020

Ombudsman summary: Mrs X complains the Council gave her misleading information about what constituted unacceptable noise from works at a neighbouring property. The Council gave incorrect information about working time guidelines and then then wrongly advised it would issue a fixed penalty notice. The Council has reviewed the noise recordings and established no statutory nuisance existed. An appropriate remedy for the injustice caused is agreed.

Page 40 Bristol’s learning, remedy and service improvement plan:

Issue was caused by an inexperienced officer providing advice relating to commercial construction limitations with regard to DIY noise which was incorrect. The service has subsequently reviewed which officers should be allocated this type of case.

Bristol City Council (19 004 573)

Statement - upheld - Refuse and Recycling - 08-Jan-2020

Ombudsman summary: Mr X complains about repeated missed communal bin collections from his block of flats since he moved in around three years ago. The Ombudsman found fault in the Council's repeated failure to prevent missed collections at Mr X's block of flats. This caused him a significant injustice as he had to go to the time and trouble of making several reports and complaints. The Council agreed with our recommendation it should remedy this by apologising to Mr X, monitoring collections going forward and reflecting on how it recognises repeat missed collections.

Bristol’s learning, remedy and service improvement plan:

The Council has agreed to liaise with the Bristol Waste Company to review its missed collections policy. This is with a view to creating an internal reporting mechanism to highlight when a certain number of missed collections are reported within a specific period at the same location. The number of missed collections to trigger this and the time period will be a matter for discussion between the council and the Bristol Waste Company. BWC’s internal reporting mechanism is dependent on the introduction of a new back office reporting system which is still in development. To counter this in the short term the property in question was monitored to ensure no further miss collections occurred.

Bristol City Council (19 004 898)

Statement – upheld - Homelessness - 16-Dec-2019

Ombudsman summary: Mr X complains the Council told his prospective landlord he intended to claim housing benefit, causing the withdrawal of an offer of a tenancy and embarrassment. He also says it mishandled his request for a review of his housing priority band. The Ombudsman found no fault in the Council's approach. It did not communicate directly with his landlord and it considered Mr X's evidence why it should increase his housing band but disagreed it should. There was fault in how the Council explained its rule on not investigating complaints older than 12 months. While this caused Mr X no significant injustice, the Council agreed to the Ombudsman's recommendation to provide a better explanation to others in future.

Bristol’s learning, remedy and service improvement plan:

The Council has agreed to add guidance to its complaints policy stating officers applying the 12 month rule should include an explanation of any evidence taken into account when refusing to investigate a complaint for that reason.

Page 41 Bristol City Council (18 019 206)

Statement - upheld – Anti-social Behaviour - 12-Dec-2019

Ombudsman summary: The Council delayed acting to remove caravan and vehicle dwellers from a road where Mr C has a business. The Council failed to act to resolve concerns of anti-social behaviour, fly tipping and defecating in the street. The Council delayed dealing with Mr C's complaint and did not address all his issues. The Council failed to keep Mr C informed. Mr C worries about his livelihood due to the impact on his business from customers unable to park or not wanting to pass the vehicles and witness upsetting behaviour. The Council will apologise, pay Mr C £750, ensure to keep him updated, and deal with any future reports without delay.

Bristol’s learning, remedy and service improvement plan:

The council has introduced an on line reporting system for members of the public to report concerns relating to vehicle dwelling encampments and a page on the council’s website provides information about the council’s policy and procedures for managing vehicle dwelling encampments with a GIS map which provides up to date information about the council’s enforcement activity. The development of the map has enabled the council to maintain real time detailed records of encampments and enforcement activity. The establishment of a lead enforcement role for a Senior Enforcement Officer has improved response times and consistency of operations and communications.

Bristol City Council (18 002 671)

Statement - upheld - Disabled facilities grants - 09-Sep-2019

Ombudsman summary: The complainant says the Council took from 2015 to consider, commission and manage grant aided adaptations to her home. The complainant says this is too long and as a result she has lived with excessive pain when using her kitchen and bathroom. The Council says it offered a financial remedy for faults and is progressing with the renewed application received in 2017. It says some delay has been due to adjustments to proposals to reflect the complainant's wishes and because of her prolonged absences from home. The Ombudsman finds the Council acted with fault and recommends a remedy.

Bristol’s learning, remedy and service improvement plan:

Financial remedy issued to complainant. Major delay occurred as the Service cancelled the works following a request to do so by the complainant to the contractor. The service failed to confirm the cancellation of works with the complainant. The Service is reviewing its procedure around client requests to discontinue works by confirming this in writing to the customer, to ensure this cannot happen again.

Page 42 Bristol City Council (18 019 085)

Statement - upheld – unspecified category - 09-Aug-2019

Ombudsman summary: Mr B complains the Council has not resolved the problems of litter near to where he lives following a previous complaint to the Ombudsman. He says the Council did not respond to his report of continued littering and then did not respond to his complaint. There was delay in responding to the last investigation decision and fault in how the Council responded to Mr B when he reported continuing problems. There is no fault in the action the Council has now taken to address the problems.

Bristol’s learning, remedy and service improvement plan:

Apology offered no further action

Bristol City Council (18 011 707)

Statement - upheld - Refuse and Recycling - 08-Aug-2019

Ombudsman summary: Ms X complained about the Council's failure to address her concerns about the impact of local businesses in her area, waste collection and street cleaning issues and problems with a neighbour. The Ombudsman finds the Council was at fault for delay in responding to her concerns, not addressing them fully during the complaints procedure, and failing to keep in contact with her about what the Council was doing. The Council has agreed to apologise to Ms X, explain how the concerns can be addressed now and pay her £250 to acknowledge the injustice caused to her by its fault.

Bristol’s learning, remedy and service improvement plan:

Financial remedy issued

Bristol City Council (18 015 583)

Statement - upheld - Child protection - 08-Aug-2019

Ombudsman summary: Ms F complained the Council did not accept the findings and recommendations of the Children’s Stage 3 complaint review panel. Ms F felt the Council did not listen to her and disbelieved her experience of domestic abuse. The Ombudsman found the Council's management of the complaint was fundamentally flawed. To remedy the injustice caused, the Council has agreed to consider the complaint again at stage 2, and if asked, stage 3 of the statutory complaint procedure.

Bristol’s learning, remedy and service improvement plan:

The Complaint has been investigated at Stage 2 by an independent Investigating Officer and learning has been disseminated as an outcome of this. Ms F has requested that the complaint be

Page 43 considered at Stage 3. Due to Covid-19, the Stage 3 review panel was postponed as the complainant did not want the Panel to be a virtual meeting. However a Stage 3 Panel is now being progressed. The Council will await the outcome of the Stage 3 Panel and will then respond to the Complainant. No officers involved in the first complaint have been involved in the re investigation.

Remedies Apology for handling of complaint, paid £250 for the delay and reinvestigated at stage 2 of procedure

Bristol City Council (18 013 368)

Statement - upheld – Charges - 11-Jul-2019

Ombudsman summary: There was fault by the Council. There was delay in allocating a social worker when a hospital discharged an elderly lady into temporary residential care. The Council has apologised for the delay and agreed to continue to charge the resident as a short stay resident.

Bristol’s learning, remedy and service improvement plan:

There was a delay in allocating a social worker when a hospital discharged the mother into temporary residential care. Bristol has apologised to the complainant for the delay in allocating a social worker

Bristol City Council (18 011 917) Tim Potter (Local Tax

Statement - upheld - Council Tax - 17-Jun-2019

Ombudsman summary: The complainant says the Council failed to properly consider her disability and need for reasonable adjustments in communicating with her. The complainant says the Council wrongly issued a court summons adding costs to her council tax account. The Council says it followed proper procedures and therefore will not refund the court costs. The Ombudsman finds the Council at fault and the Council accepts the recommended remedy.

Bristol’s learning, remedy and service improvement plan:

The Council will within four weeks review its practice of inviting people to confirm if they have any form of disability that may need reasonable adjustments for them to engage with a service

A refresher on making reasonable adjustments was part of the team discussion as part of our ongoing evolution of debt recovery, to ensure we have a citizen centric approach to debt. The following subjects were covered, which all relate to this issue both directly and indirectly. These subjects continue to be included in monthly meetings

- Promote an increased take up of welfare benefits, council tax reduction, disabled band reductions, discounts and exemptions from council tax

Page 44 - Supporting those who need it (via reasonable adjustments, alternative format documentation, communication via sign language & language translators and increasing referrals to third sector and specialist advice agencies. Engaging with debt advice agency support and adopting a more holistic view of debt, means that an individual’s repayments to all creditors are more likely to be sustainable.

- aligning our approach to debt where ever possible with the Health & Wellbeing priority theme of the One City Plan

Bristol City Council (18 007 493)

Statement - upheld - Council Tax - 10-May-2019

Ombudsman summary: Mr B says the Council was at fault for maladministration of council tax charges on his late wife's house, for making unjustified charges for summonses to his daughter and wife and for a failure to provide information on council tax rules and charges. The Council has refunded court costs. It provided sufficient evidence of such costs to the court. However, it wrongly closed Mrs B's council tax account. This was fault for which it has already apologised

Bristol’s learning, remedy and service improvement plan:

Issue was already resolved by BCC complaints process.

Bristol City Council (18 005 149)

Statement - upheld - Parking and other penalties - 26-Apr-2019

Ombudsman summary: Mr and Mrs B complain about the conduct of an enforcement agent acting on behalf of the Council. The Ombudsman finds the enforcement agent was at fault in acting in an aggressive and intimidating manner and in forcibly entering Mr and Mrs B's property and failing to leave when requested to do so. The Ombudsman has recommended a remedy for the injustice suffered by Mr and Mrs B.

Bristol’s learning, remedy and service improvement plan:

Financial remedy and apology issued. Officers to issue guidance to enforcement agents (acting on behalf of the council) that they should not force entry into a property (including pushing past people and putting their foot in the door). Regular contract meetings are held with the Enforcement Agent Company. Enforcement Agents actions are covered by legislation and they were reminded of this – action was taken by the Enforcement Agent company directly with the operative involved in this case.

Complaints made to the EA are subject to regular contract meetings and urgent cases are dealt with ASAP.

Page 45 Complaints and Enquiries Received (by Category) 2019-20

Environmental Adult Benefits Corporate and Education and Services, Public Highways and Planning and Authority Name Housing Other Total Social Care and Tax Other Services Children's Services Protection and Transport Development Regulation

Adur District Council 0 0 1 0 1 1 2 1 2 8 Allerdale Borough Council 0 1 3 0 9 0 4 5 0 22 Amber Valley Borough Council 0 1 0 0 0 0 1 4 0 6 Arun District Council 0 1 4 0 2 1 1 10 0 19 Ashfield District Council 0 0 0 0 1 0 2 6 2 11 Ashford Borough Council 0 1 0 1 1 4 1 8 1 17 Aylesbury Vale District Council 0 7 0 0 17 0 2 14 1 41 Babergh District Council 0 0 2 0 1 0 3 2 0 8 Page 46 Page Barnsley Metropolitan Borough Council 11 9 2 12 6 4 1 8 1 54 Barrow-in-Furness Borough Council 0 2 2 0 3 0 0 0 0 7 Basildon Borough Council 0 7 3 0 9 0 10 2 2 33 Basingstoke & Deane Borough Council 0 1 0 0 12 0 0 4 0 17 Bassetlaw District Council 0 2 2 0 2 0 1 6 0 13 Bath and North East Somerset Council 6 8 5 8 3 3 3 0 2 38 Bedford Borough Council 2 6 1 10 3 4 3 8 1 38 Birmingham City Council 40 81 23 78 179 39 83 22 16 561 Blaby District Council 0 1 0 0 2 1 0 1 0 5 Blackburn with Darwen Council 5 5 4 8 1 5 1 5 2 36 Blackpool Borough Council 9 4 2 19 5 2 1 3 0 45 Bolsover District Council 0 3 1 0 0 0 3 3 1 11 Bolton Metropolitan Borough Council 11 12 7 12 7 2 2 7 0 60 Boston Borough Council 0 3 1 0 2 0 0 2 0 8 Bournemouth Borough Council 2 0 0 0 0 0 1 0 0 3 Bournemouth, Christchurch and Poole Council 20 5 4 18 19 12 5 16 2 101 Bracknell Forest Council 4 3 3 11 3 2 5 2 1 34 Braintree District Council 0 2 0 0 0 2 2 1 0 7 Breckland District Council 0 2 1 0 0 0 1 4 0 8 Brentwood Borough Council 0 0 0 0 3 0 7 2 0 12 Brighton & Hove City Council 11 5 4 17 14 12 18 6 2 89 Bristol City Council 12 18 9 16 18 19 17 15 6 130 Broadland District Council 0 2 0 0 0 0 2 5 0 9 Broads Authority 0 0 0 0 0 0 0 1 0 1 Bromsgrove District Council 0 2 0 0 1 0 0 10 1 14 Broxbourne Borough Council 0 5 0 0 9 3 5 0 0 22 Broxtowe Borough Council 0 1 3 0 1 0 4 6 0 15 Buckinghamshire County Council 21 0 2 33 2 17 0 2 1 78 Burnley Borough Council 0 4 1 0 5 1 0 6 0 17 Bury Metropolitan Borough Council 12 2 7 25 11 8 6 2 0 73 Calderdale Metropolitan Borough Council 9 14 3 12 9 3 1 8 1 60 Cambridge City Council 0 3 1 0 5 0 1 4 0 14 Cambridgeshire County Council 23 0 2 37 5 4 0 0 0 71 Cannock Chase District Council 0 2 2 0 1 0 2 0 0 7 Canterbury City Council 0 2 5 0 6 1 3 7 1 25 Carlisle City Council 0 1 1 0 3 0 0 1 0 6 Castle Point Borough Council 0 0 0 0 0 0 4 6 1 11 Central Bedfordshire Council 5 3 2 17 3 4 3 16 1 54 Charnwood Borough Council 1 7 4 0 2 0 5 4 0 23 Chelmsford City Council 0 0 1 0 2 0 3 6 0 12

Page 47 Page Cheltenham Borough Council 0 2 0 0 0 0 1 4 0 7 Cherwell District Council 0 2 3 0 6 1 1 6 0 19 Cheshire East Council 17 2 4 29 14 18 1 27 1 113 Cheshire West & Chester Council 14 5 5 20 3 9 0 10 1 67 Chesterfield Borough Council 0 3 5 0 2 0 0 4 1 15 Chichester District Council 0 4 2 0 2 1 0 2 0 11 Chiltern District Council 0 2 0 0 6 0 1 9 1 19 Chorley Borough Council 1 1 0 0 2 0 1 6 1 12 Christchurch Borough Council 0 0 0 0 0 0 0 0 0 0 City Of Bradford Metropolitan District Council 16 10 9 40 9 9 4 12 5 114 City of London 0 1 1 1 1 0 1 0 1 6 City of York Council 14 7 6 8 8 8 3 12 2 68 Colchester Borough Council 0 3 1 0 5 3 6 2 0 20 Copeland Borough Council 0 0 2 0 0 0 0 2 0 4 Corby Borough Council 0 3 2 0 0 0 2 2 1 10 Cornwall Council 37 8 12 28 6 13 17 50 2 173 Cotswold District Council 0 0 1 0 0 0 1 4 0 6 Council of the Isles of Scilly 0 0 1 0 0 0 0 0 0 1 Coventry City Council 14 11 6 25 25 21 6 5 4 117 Craven District Council 0 0 0 0 0 0 0 5 0 5 Crawley Borough Council 1 2 0 0 3 1 9 4 1 21 Cumbria County Council 23 0 5 32 2 8 0 0 0 70 Dacorum Borough Council 0 2 2 0 2 1 6 11 0 24 Darlington Borough Council 9 3 1 7 8 0 0 2 0 30 Dartford Borough Council 0 5 0 0 4 0 3 3 1 16 Dartmoor National Park Authority 0 0 0 0 0 0 0 4 0 4 Daventry District Council 0 4 2 0 2 1 3 3 0 15 Derby City Council 11 5 2 22 7 3 3 0 0 53 Derbyshire County Council 19 1 8 67 5 20 1 1 1 123 Derbyshire Dales District Council 0 2 2 0 4 1 0 2 0 11 Devon County Council 32 0 2 36 4 15 0 2 2 93 Doncaster Metropolitan Borough Council 8 4 6 13 7 6 9 7 1 61 Dorset Council 28 3 5 20 6 10 1 27 0 100 Dorset County Council 0 0 0 0 0 1 0 0 0 1 Dover District Council 0 4 1 0 0 2 4 3 0 14 Dudley Metropolitan Borough Council 18 8 3 27 5 8 12 3 3 87 Durham County Council 23 14 13 41 23 15 0 14 1 144 East Cambridgeshire District Council 0 2 2 0 1 2 0 6 0 13 East Devon District Council 0 0 2 0 1 0 0 9 0 12 East Dorset District Council 0 0 0 0 0 0 0 1 0 1 East Hampshire District Council 0 2 0 0 3 0 2 3 0 10

Page 48 Page East Hertfordshire District Council 0 1 0 0 0 0 1 7 1 10 East Lindsey District Council 0 1 4 0 8 1 3 12 0 29 East Northamptonshire Council 0 0 0 0 4 0 0 2 0 6 East Riding of Yorkshire Council 16 6 5 9 7 6 1 13 1 64 East Staffordshire Borough Council 1 4 0 0 3 0 0 0 0 8 East Suffolk Council 0 7 2 0 5 3 4 11 1 33 East Sussex County Council 45 0 4 44 1 9 0 1 1 105 Eastbourne Borough Council 0 1 2 0 2 0 4 4 1 14 Eastleigh Borough Council 1 2 5 0 3 2 2 8 1 24 Eden District Council 0 0 0 0 2 0 0 4 0 6 Elmbridge Borough Council 0 3 0 0 2 0 2 7 0 14 Environment Agency 0 0 0 0 9 0 0 1 0 10 Epping Forest District Council 1 2 2 0 1 0 10 8 1 25 Epsom & Ewell Borough Council 1 1 2 0 9 2 3 8 1 27 Erewash Borough Council 0 2 0 0 3 0 2 6 0 13 Essex County Council 94 0 9 74 13 92 0 1 2 285 Exeter City Council 0 1 0 0 4 1 3 3 0 12 Exmoor National Park Authority 0 0 0 0 0 0 0 1 0 1 Fareham Borough Council 0 2 1 0 1 0 2 6 1 13 Fenland District Council 0 2 3 0 0 1 0 3 1 10 Folkestone & Hythe District Council 0 4 2 0 9 1 5 8 0 29 Forest Heath District Council 0 0 0 0 1 0 0 0 0 1 Forest of Dean District Council 1 2 2 0 1 0 1 3 0 10 Fylde Borough Council 0 3 0 0 0 0 0 4 0 7 Gateshead Metropolitan Borough Council 12 2 4 11 3 8 7 2 2 51 Gedling Borough Council 0 1 2 0 3 0 0 6 0 12 Gloucester City Council 0 3 1 0 2 0 7 2 0 15 Gloucestershire County Council 18 0 6 44 2 21 0 2 0 93 Gosport Borough Council 0 1 0 0 1 1 1 0 0 4 Gravesham Borough Council 0 2 1 0 2 2 9 3 0 19 Great Yarmouth Borough Council 0 1 2 0 1 1 2 3 1 11 Greater London Authority 0 0 1 0 0 0 0 0 0 1 Guildford Borough Council 0 2 1 0 1 0 0 5 0 9 Halton Borough Council 7 2 0 12 4 22 2 2 0 51 Hambleton District Council 0 0 3 0 0 0 0 10 0 13 Hampshire County Council 36 0 5 73 4 16 0 2 3 139 Harborough District Council 0 1 2 0 1 0 0 3 0 7 Harlow District Council 0 2 1 0 2 0 6 0 2 13 Harrogate Borough Council 1 7 3 0 4 3 2 12 0 32 Hart District Council 0 1 0 0 0 0 1 4 0 6 Hartlepool Borough Council 4 2 3 8 2 2 0 2 0 23

Page 49 Page Hastings Borough Council 0 1 1 0 5 0 1 5 0 13 Havant Borough Council 0 10 2 0 6 0 0 5 0 23 Herefordshire Council 5 2 3 15 6 8 2 11 0 52 Hertfordshire County Council 29 0 5 59 2 15 0 3 2 115 Hertsmere Borough Council 1 5 0 0 1 1 1 4 0 13 High Peak Borough Council 0 2 0 0 3 0 1 1 0 7 Hinckley & Bosworth Borough Council 0 1 0 0 1 0 4 6 0 12 Horsham District Council 0 2 2 0 3 0 0 4 0 11 Huntingdonshire District Council 0 2 0 0 5 3 3 10 0 23 Hyndburn Borough Council 0 1 2 0 1 0 1 1 0 6 Ipswich Borough Council 0 4 0 0 3 2 4 3 0 16 Isle of Wight Council 13 7 3 9 4 6 2 6 0 50 Kent County Council 66 0 8 112 3 23 0 4 2 218 Kettering Borough Council 0 1 0 0 4 0 3 7 0 15 King's Lynn & West Norfolk Council 0 4 0 0 0 2 0 6 0 12 Kingston upon Hull City Council 5 8 4 20 6 6 5 3 0 57 Kirklees Metropolitan Borough Council 25 9 8 29 24 7 6 10 5 123 Knowsley Metropolitan Borough Council 7 6 1 6 1 0 2 0 0 23 Lake District National Park Authority 0 0 0 0 0 0 0 5 0 5 Lancashire County Council 62 0 6 74 4 22 0 0 0 168 Lancaster City Council 0 0 1 0 1 0 1 2 0 5 Leeds City Council 25 11 8 33 29 18 28 30 3 185 Leicester City Council 20 11 10 23 9 6 25 5 3 112 Leicestershire County Council 23 0 3 36 2 8 1 1 1 75 Lewes District Council 0 4 1 0 4 0 3 5 0 17 Lichfield District Council 0 0 1 0 1 0 0 2 0 4 Lincoln City Council 0 3 1 0 4 1 4 0 0 13 Lincolnshire County Council 35 0 2 18 1 11 0 0 0 67 Liverpool City Council 20 13 11 37 16 13 13 7 0 130 London Borough of Barking & Dagenham 9 14 3 12 23 28 22 5 3 119 London Borough of Barnet 16 34 4 29 27 25 26 14 5 180 London Borough of Bexley 9 17 1 15 14 5 9 14 1 85 London Borough Of Brent 16 24 2 14 6 24 27 11 2 126 London Borough of Bromley 17 18 7 36 22 12 20 15 1 148 London Borough of Camden 13 11 3 20 10 15 31 6 2 111 London Borough of Croydon 25 22 5 36 29 13 41 26 4 201 London Borough of Ealing 21 26 5 12 26 30 41 29 0 190 London Borough of Enfield 24 11 7 13 17 16 44 18 7 157 London Borough of Hackney 23 11 3 12 11 16 29 7 4 116 London Borough of Hammersmith & Fulham 6 4 6 7 6 8 20 7 7 71 London Borough of Haringey 17 45 7 19 10 16 45 10 1 170

Page 50 Page London Borough of Harrow 34 18 3 14 23 24 16 11 1 144 London Borough of Havering 16 7 4 12 8 33 30 10 1 121 London Borough of Hillingdon 14 15 4 13 6 18 32 14 3 119 London Borough of Hounslow 11 21 8 22 15 12 11 11 2 113 London Borough of Islington 19 7 6 7 9 10 21 4 1 84 London Borough of Lambeth 30 38 4 30 23 28 59 3 7 222 London Borough of Lewisham 21 14 8 25 13 7 20 12 2 122 London Borough of Merton 9 11 3 19 9 27 3 8 2 91 London Borough of Newham 21 16 8 42 20 34 67 9 16 233 London Borough of Redbridge 20 15 5 36 16 15 22 13 0 142 London Borough of Richmond upon Thames 10 11 5 18 6 8 5 11 1 75 London Borough of Southwark 14 15 6 11 15 16 67 9 7 160 London Borough of Sutton 6 5 2 20 10 6 12 7 1 69 London Borough of Tower Hamlets 10 10 12 15 17 21 36 1 6 128 London Borough of Waltham Forest 11 29 7 18 21 25 43 7 5 166 London Borough of Wandsworth 14 5 7 13 2 8 12 5 4 70 Luton Borough Council 13 12 1 10 8 2 8 12 1 67 Maidstone Borough Council 0 12 2 0 5 4 4 18 4 49 Maldon District Council 0 1 5 0 2 0 1 2 0 11 Malvern Hills District Council 0 0 0 0 0 0 0 5 0 5 Manchester City Council 13 27 9 28 17 35 17 8 3 157 Mansfield District Council 0 4 0 0 2 1 2 4 1 14 Medway Council 12 10 7 19 6 10 6 10 1 81 Melton Borough Council 0 0 1 0 1 0 2 2 0 6 Mendip District Council 0 4 0 0 4 0 1 8 0 17 Mid Devon District Council 0 1 2 0 1 1 2 6 0 13 Mid Suffolk District Council 0 1 5 0 1 1 1 4 0 13 Mid Sussex District Council 0 4 1 0 2 1 0 6 0 14 Middlesbrough Borough Council 7 3 2 13 6 3 0 2 0 36 Milton Keynes Council 10 4 6 19 7 8 10 15 1 80 Mole Valley District Council 0 0 1 0 6 3 1 7 0 18 New Forest District Council 1 0 3 0 2 1 4 5 0 16 New Forest National Park Authority 0 0 0 0 0 0 0 4 0 4 Newark & Sherwood District Council 0 3 2 0 1 0 1 4 0 11 Newcastle upon Tyne City Council 11 12 1 20 7 4 6 3 1 65 Newcastle-under-Lyme Borough Council 0 4 0 0 3 0 0 2 0 9 Norfolk County Council 67 0 9 60 0 6 0 1 0 143 North Devon District Council 0 4 3 0 5 0 1 5 0 18 North Dorest District Council 0 0 0 0 0 0 0 0 0 0 North East Derbyshire District Council 0 0 0 0 2 0 0 4 0 6 North East Lincolnshire Council 6 8 3 18 8 4 2 3 0 52

Page 51 Page North Hertfordshire District Council 0 1 0 0 5 1 4 5 0 16 North Kesteven District Council 0 1 0 0 1 0 1 7 0 10 North Lincolnshire Council 6 1 2 7 6 2 2 5 0 31 North Norfolk District Council 0 2 1 0 3 0 3 1 0 10 North Somerset Council 11 13 4 8 14 7 2 12 1 72 North Tyneside Metropolitan Borough Council 6 5 2 17 4 7 3 3 3 50 North Warwickshire Borough Council 0 1 0 0 0 0 1 2 0 4 North West Leicestershire District Council 0 3 0 0 2 1 0 1 0 7 North York Moors National Park Authority 0 0 0 0 0 0 0 1 0 1 North Yorkshire County Council 30 1 4 25 6 10 0 2 1 79 Northampton Borough Council 1 5 4 0 9 3 5 7 1 35 Northamptonshire County Council 33 0 5 50 1 7 0 0 0 96 Northumberland County Council 15 8 3 18 7 11 5 20 1 88 Northumberland National Park Authority 0 0 0 0 0 0 0 0 0 0 Norwich City Council 0 11 3 0 12 5 8 1 1 41 Nottingham City Council 17 5 7 17 6 11 7 4 1 75 Nottinghamshire County Council 43 0 6 40 4 8 0 0 1 102 Nuneaton & Bedworth Borough Council 0 4 5 0 8 1 10 2 1 31 Oadby & Wigston Borough Council 0 2 1 0 2 0 2 2 0 9 Oldham Metropolitan Borough Council 11 7 3 18 5 8 4 19 0 75 Oxford City Council 0 3 0 0 1 4 6 3 0 17 Oxfordshire County Council 24 0 1 26 1 3 0 2 1 58 Peak District National Park Authority 0 0 2 0 0 0 0 2 0 4 Pendle Borough Council 0 2 3 0 9 0 0 4 0 18 Peterborough City Council 11 4 5 11 2 5 5 2 1 46 Plymouth City Council 18 15 3 16 21 24 3 9 0 109 Poole Borough Council 0 0 0 1 0 0 0 0 0 1 Portsmouth City Council 5 1 5 8 3 6 5 1 1 35 Preston City Council 0 5 1 0 1 1 1 6 0 15 Purbeck District Council 0 0 0 0 0 0 0 0 0 0 Reading Borough Council 7 9 3 5 5 9 4 4 0 46 Redcar & Cleveland Council 4 3 2 9 7 3 0 3 0 31 Redditch Borough Council 0 1 1 0 2 0 4 2 0 10 Reigate & Banstead Borough Council 0 1 1 0 3 1 2 8 0 16 Ribble Valley Borough Council 0 0 3 0 0 0 0 5 0 8 Richmondshire District Council 0 0 0 0 2 0 1 2 0 5 Rochdale Metropolitan Borough Council 12 8 7 9 3 3 1 7 1 51 Rochford District Council 0 1 1 0 3 0 2 5 0 12 Rossendale Borough Council 0 2 0 0 10 0 0 11 0 23 Rother District Council 0 4 1 0 1 0 3 6 1 16 Rotherham Metropolitan Borough Council 11 4 9 32 7 1 3 5 0 72

Page 52 Page Royal Borough of Greenwich 17 11 9 31 16 10 26 5 2 127 Royal Borough of Kensington & Chelsea 8 5 2 9 2 3 25 1 2 57 Royal Borough of Kingston upon Thames 5 1 9 6 7 13 8 9 2 60 Royal Borough of Windsor and Maidenhead Council 5 2 2 10 8 6 3 10 1 47 Rugby Borough Council 0 4 0 0 5 0 2 2 1 14 Runnymede Borough Council 0 1 1 0 1 1 3 3 0 10 Rushcliffe Borough Council 0 1 0 0 1 0 1 2 0 5 Rushmoor Borough Council 0 0 0 0 0 0 2 1 0 3 Rutland County Council 1 0 1 4 0 1 0 2 0 9 Ryedale District Council 0 0 0 0 1 0 1 4 0 6 Salford City Council 8 30 1 11 8 2 5 6 2 73 Sandwell Metropolitan Borough Council 24 30 5 18 10 7 16 3 2 115 Scarborough Borough Council 0 4 2 0 5 1 0 4 0 16 Sedgemoor District Council 0 1 2 0 2 0 2 5 0 12 Sefton Metropolitan Borough Council 15 4 5 23 5 6 2 5 1 66 Selby District Council 1 2 2 0 3 0 1 7 0 16 Sevenoaks District Council 0 1 1 0 0 2 0 8 0 12 Sheffield City Council 36 12 10 25 12 25 13 6 4 143 Shropshire Council 19 9 4 12 7 12 1 20 0 84 Slough Borough Council 4 4 2 12 5 10 9 3 2 51 Solihull Metropolitan Borough Council 9 2 0 13 4 1 6 11 0 46 Somerset County Council 24 0 2 33 1 9 0 4 1 74 Somerset West and Taunton Council 0 4 1 0 5 0 4 13 1 28 South Bucks District Council 0 0 0 0 7 0 3 5 0 15 South Cambridgeshire District Council 0 2 2 0 5 0 3 11 0 23 South Derbyshire District Council 0 1 1 0 0 0 1 4 0 7 South Downs National Park Authority 0 0 0 0 0 0 0 4 0 4 South Gloucestershire Council 6 5 2 11 6 5 4 16 1 56 South Hams District Council 0 2 1 0 2 0 0 12 0 17 South Holland District Council 0 2 1 0 1 0 2 7 0 13 South Kesteven District Council 1 1 1 0 4 0 2 5 0 14 South Lakeland District Council 0 0 1 0 0 1 2 9 0 13 South Norfolk District Council 0 3 2 0 1 0 3 3 0 12 South Northamptonshire District Council 0 3 1 0 1 0 0 3 0 8 South Oxfordshire District Council 0 4 2 0 1 0 0 9 0 16 South Ribble Borough Council 0 0 0 0 1 0 3 2 0 6 South Somerset District Council 0 4 1 0 2 3 0 7 0 17 South Staffordshire District Council 0 1 0 0 0 0 2 6 0 9 South Tyneside Metropolitan Borough Council 7 3 4 12 7 2 5 0 0 40 Southampton City Council 4 2 4 20 12 4 7 4 2 59 Southend-on-Sea Borough Council 12 10 4 18 4 10 4 5 0 67

Page 53 Page Spelthorne Borough Council 0 4 2 0 1 0 3 6 0 16 St Albans City Council 0 4 2 0 5 2 8 6 1 28 St Edmundsbury Borough Council 0 0 0 0 0 0 0 0 0 0 St Helens Metropolitan Borough Council 7 0 0 11 7 2 1 6 1 35 Stafford Borough Council 0 4 0 0 1 1 1 5 0 12 Staffordshire County Council 41 0 1 73 5 26 0 1 0 147 Staffordshire Moorlands District Council 0 0 2 0 0 0 0 3 0 5 Stevenage Borough Council 0 2 0 0 2 1 7 0 0 12 Stockport Metropolitan Borough Council 18 6 2 16 11 6 1 1 2 63 Stockton-on-Tees Borough Council 5 2 2 22 4 1 1 1 2 40 Stoke-on-Trent City Council 12 10 6 33 12 8 6 7 0 94 Stratford-on-Avon District Council 0 0 0 0 2 1 2 10 1 16 Stroud District Council 0 0 1 0 5 1 3 8 0 18 Suffolk Coastal District Council 0 0 0 0 0 0 0 0 0 0 Suffolk County Council 25 0 1 54 5 18 0 0 0 103 Sunderland City Council 13 9 4 21 9 9 2 6 1 74 Surrey County Council 41 0 13 104 7 19 0 0 1 185 Surrey Heath Borough Council 0 1 0 0 1 1 1 6 0 10 Swale Borough Council 0 1 2 0 3 5 2 9 0 22 Swindon Borough Council 8 8 1 22 4 6 6 0 4 59 Tameside Metropolitan Borough Council 18 8 3 20 6 3 2 9 1 70 Tamworth Borough Council 0 4 0 0 1 2 6 0 2 15 Tandridge District Council 0 1 2 0 0 0 4 8 1 16 Taunton Deane Borough Council 0 0 0 0 0 0 0 0 0 0 Teignbridge District Council 0 1 3 0 3 0 1 9 0 17 Telford & Wrekin Council 10 6 2 18 3 2 0 4 1 46 Tendring District Council 1 3 1 0 9 0 5 5 1 25 Test Valley Borough Council 1 1 0 0 1 1 0 6 0 10 Tewkesbury Borough Council 0 2 0 0 1 2 1 7 0 13 Thanet District Council 0 3 3 0 17 2 4 10 0 39 Three Rivers District Council 0 2 1 0 5 1 1 4 0 14 Thurrock Council 1 9 4 13 7 4 7 8 4 57 Tonbridge and Malling Borough Council 0 1 1 0 7 0 3 2 0 14 Torbay Council 7 5 6 23 9 8 7 6 1 72 Torridge District Council 0 0 1 0 3 1 4 14 1 24 Trafford Council 19 14 4 13 31 10 2 6 2 101 Transport for London 0 0 7 0 52 257 0 0 1 317 Tunbridge Wells Borough Council 0 1 0 0 3 3 1 3 0 11 Uttlesford District Council 0 0 1 0 0 0 1 2 0 4 Vale of White Horse District Council 0 3 3 0 1 0 2 7 0 16 Wakefield City Council 14 5 5 10 3 16 1 3 0 57

Page 54 Page Walsall Metropolitan Borough Council 13 9 2 21 4 5 4 6 1 65 Warrington Council 8 8 5 16 5 3 0 5 1 51 Warwick District Council 1 4 0 0 5 0 3 6 0 19 Warwickshire County Council 17 0 5 17 1 5 0 1 1 47 Watford Borough Council 0 4 1 0 4 4 12 4 0 29 Waveney District Council 0 0 0 0 0 0 0 1 0 1 Waverley Borough Council 0 0 4 0 0 2 3 7 0 16 Wealden District Council 0 3 3 0 3 0 1 8 0 18 Wellingborough Borough Council 0 1 0 0 2 1 2 3 0 9 Welwyn Hatfield Borough Council 0 4 3 0 6 1 4 5 2 25 West Berkshire Council 8 1 3 11 1 2 3 4 1 34 West Devon Borough Council 0 2 0 0 2 1 0 1 0 6 West Dorset District Council 0 0 0 0 0 1 0 0 0 1 West Lancashire Borough Council 0 2 0 0 2 0 0 4 1 9 West Lindsey District Council 0 4 1 0 1 0 1 4 0 11 West Oxfordshire District Council 0 1 0 0 1 0 2 5 0 9 West Somerset District Council 0 0 0 0 0 0 0 0 0 0 West Suffolk Council 0 3 2 0 3 2 5 5 0 20 West Sussex County Council 40 0 6 50 5 18 0 7 2 128 Westminster City Council 12 16 5 10 11 8 35 3 1 101 Weymouth & Portland District Council 0 0 0 0 0 0 1 0 0 1 Wigan Metropolitan Borough Council 15 13 5 11 10 5 9 8 3 79 Wiltshire Council 14 2 10 23 5 6 4 15 0 79 Winchester City Council 0 1 2 0 3 3 2 3 0 14 Wirral Metropolitan Borough Council 24 10 3 45 5 7 2 10 2 108 Woking Borough Council 0 2 1 0 1 0 2 1 0 7 Wokingham Borough Council 7 1 4 20 2 5 1 9 0 49 Wolverhampton City Council 6 10 2 20 11 2 8 1 1 61 Worcester City Council 0 1 4 1 1 0 2 6 0 15 Worcestershire County Council 16 1 3 30 6 9 0 0 0 65 Worthing Borough Council 0 3 2 0 0 1 6 2 0 14 Wychavon District Council 0 1 3 0 3 0 0 1 0 8 Wycombe District Council 0 1 1 0 8 1 4 2 0 17 Wyre Borough Council 0 3 0 0 3 0 2 6 0 14 Wyre Forest District Council 0 1 0 0 3 3 0 3 0 10 Yorkshire Dales National Park Authority 0 0 0 0 0 0 0 0 0 0 Totals 2552 1665 955 3536 2044 2051 1869 2041 306 17019

Notes These statistics include all complaints and enquiries that were received from 01 April 2019 to 31 March 2020.

Page 55 Page Some cases are received and decided in different business years. This means the number of complaints and enquiries received may not match the number of decisions made. You can find comparisons with last year's data on the second tab of this workbook. For more information on how to interpret our statistics, please visit: https://www.lgo.org.uk/information-centre/reports/annual-review-reports/interpreting-local-authority-statistics Page 56

Complaints and Enquiries Decided (by Outcome) 2019-20

Average uphold Invalid or Referred Back for Closed after Initial Authority Name Advice Given Not Upheld Upheld Total Uphold Rate (%) rate (%) of similar Incomplete Local Resolution Enquiries authorities

Adur District Council 0 2 0 5 1 0 8 0 45 Allerdale Borough Council 0 2 7 9 3 1 22 25 45 Amber Valley Borough Council 0 0 2 2 1 1 6 50 45 Arun District Council 1 0 6 3 5 4 19 44 45 Page 57 Page Ashfield District Council 2 2 0 7 3 1 15 25 45 Ashford Borough Council 1 1 4 7 0 3 16 100 45 Aylesbury Vale District Council 0 1 7 21 1 5 35 83 45 Babergh District Council 1 2 1 2 5 2 13 29 45 Barnsley Metropolitan Borough Council 1 1 23 15 6 8 54 57 67 Barrow-in-Furness Borough Council 0 0 6 1 0 1 8 100 45 Basildon Borough Council 3 6 13 8 2 2 34 50 45 Basingstoke & Deane Borough Council 2 0 5 7 2 1 17 33 45 Bassetlaw District Council 0 0 5 7 2 2 16 50 45 Bath and North East Somerset Council 4 0 9 19 6 6 44 50 56 Bedford Borough Council 4 1 13 11 3 3 35 50 56 Birmingham City Council 27 33 180 149 34 119 542 78 67 Blaby District Council 0 0 1 2 1 3 7 75 45 Blackburn with Darwen Council 4 0 11 12 3 4 34 57 56 Blackpool Borough Council 2 1 22 8 3 6 42 67 56 Bolsover District Council 2 0 2 8 3 1 16 25 45 Bolton Metropolitan Borough Council 1 0 29 19 4 3 56 43 67 Boston Borough Council 0 0 3 4 2 2 11 50 45 Bournemouth Borough Council 0 0 0 4 4 8 16 67 56 Bournemouth, Christchurch and Poole Council 5 3 31 35 7 5 86 42 56 Bracknell Forest Council 1 0 13 10 1 5 30 83 56 Braintree District Council 0 0 2 4 3 2 11 40 45 Breckland District Council 0 0 1 5 1 1 8 50 45 Brentwood Borough Council 0 2 1 6 3 1 13 25 45 Brighton & Hove City Council 6 3 28 28 8 9 82 53 56 Bristol City Council 9 6 44 48 13 20 140 61 56 Broadland District Council 0 1 3 5 0 0 9 45 Broads Authority 0 0 0 1 1 1 3 50 23 Bromsgrove District Council 0 1 2 6 3 2 14 40 45 Broxbourne Borough Council 1 0 9 9 1 3 23 75 45 Broxtowe Borough Council 1 1 1 6 4 2 15 33 45 Buckinghamshire County Council 5 0 31 25 3 8 72 73 66 Burnley Borough Council 1 0 10 5 0 0 16 45 Bury Metropolitan Borough Council 4 2 24 27 9 6 72 40 67 Calderdale Metropolitan Borough Council 3 0 10 17 5 14 49 74 67 Cambridge City Council 0 1 2 6 2 2 13 50 45 Cambridgeshire County Council 2 0 24 28 2 12 68 86 66 Cannock Chase District Council 1 2 2 1 1 0 7 0 45 Page 58 Page Canterbury City Council 1 0 8 7 5 5 26 50 45 Carlisle City Council 0 0 1 5 0 0 6 45 Castle Point Borough Council 1 1 2 2 3 1 10 25 45 Central Bedfordshire Council 2 0 15 23 3 6 49 67 56 Charnwood Borough Council 0 1 9 7 1 2 20 67 45 Chelmsford City Council 0 0 4 5 4 0 13 0 45 Cheltenham Borough Council 0 1 1 0 1 2 5 67 45 Cherwell District Council 0 0 2 11 2 3 18 60 45 Cheshire East Council 6 3 30 44 12 17 112 59 56 Cheshire West & Chester Council 5 2 24 24 7 9 71 56 56 Chesterfield Borough Council 2 1 7 4 0 0 14 45 Chichester District Council 0 0 1 7 6 1 15 14 45 Chiltern District Council 1 0 8 6 1 2 18 67 45 Chorley Borough Council 2 0 4 3 0 1 10 100 45 Christchurch Borough Council 0 0 0 1 0 0 1 45 City Of Bradford Metropolitan District Council 9 1 52 32 14 21 129 60 67 City of London 1 0 2 4 0 1 8 100 70 City of York Council 4 2 15 24 4 12 61 75 56 Colchester Borough Council 2 0 9 6 3 1 21 25 45 Copeland Borough Council 0 0 0 6 1 0 7 0 45 Corby Borough Council 1 1 3 5 0 2 12 100 45 Cornwall Council 8 5 44 63 23 33 176 59 56 Cotswold District Council 0 0 1 3 2 1 7 33 45 Council of the Isles of Scilly 0 0 0 1 0 0 1 56 Coventry City Council 12 1 39 42 11 11 116 50 67 Craven District Council 0 0 1 5 1 0 7 0 45 Crawley Borough Council 1 3 4 9 3 1 21 25 45 Cumbria County Council 4 0 22 22 4 12 64 75 66 Dacorum Borough Council 1 2 10 8 1 2 24 67 45 Darlington Borough Council 2 0 9 13 1 6 31 86 56 Dartford Borough Council 2 1 3 4 1 4 15 80 45 Dartmoor National Park Authority 0 0 0 2 0 1 3 100 23 Daventry District Council 0 0 5 7 5 5 22 50 45 Derby City Council 3 0 22 18 6 7 56 54 56 Derbyshire County Council 9 2 47 40 5 19 122 79 66 Derbyshire Dales District Council 0 0 3 6 1 0 10 0 45 Devon County Council 6 1 28 33 15 21 104 58 66 Doncaster Metropolitan Borough Council 0 4 25 24 2 7 62 78 67 Page 59 Page Dorset Council 4 2 24 28 11 5 74 31 56 Dorset County Council 0 0 0 8 6 6 20 50 66 Dover District Council 0 2 2 5 4 0 13 0 45 Dudley Metropolitan Borough Council 4 6 31 22 6 11 80 65 67 Durham County Council 9 0 31 64 15 21 140 58 56 East Cambridgeshire District Council 0 0 3 7 1 2 13 67 45 East Devon District Council 0 0 2 6 5 2 15 29 45 East Dorset District Council 0 0 0 2 0 0 2 45 East Hampshire District Council 0 0 2 6 1 2 11 67 45 East Hertfordshire District Council 1 0 2 4 0 4 11 100 45 East Lindsey District Council 0 0 13 7 5 2 27 29 45 East Northamptonshire Council 0 0 3 2 0 0 5 45 East Riding of Yorkshire Council 3 1 11 30 9 13 67 59 56 East Staffordshire Borough Council 0 0 2 3 0 0 5 45 East Suffolk Council 3 0 6 16 2 2 29 50 45 East Sussex County Council 10 0 26 26 18 20 100 53 66 Eastbourne Borough Council 0 2 6 3 1 1 13 50 45 Eastleigh Borough Council 2 1 4 9 5 3 24 38 45 Eden District Council 0 0 1 1 3 1 6 25 45 Elmbridge Borough Council 0 0 6 6 0 4 16 100 45 Environment Agency 0 1 2 6 4 0 13 0 Epping Forest District Council 1 2 3 12 5 10 33 67 45 Epsom & Ewell Borough Council 4 0 6 12 1 0 23 0 45 Erewash Borough Council 0 0 5 8 0 0 13 45 Essex County Council 17 2 72 96 24 50 261 68 66 Exeter City Council 0 0 2 6 0 2 10 100 45 Exmoor National Park Authority 0 0 0 0 1 0 1 0 23 Fareham Borough Council 1 0 5 5 0 0 11 45 Fenland District Council 1 0 2 2 1 0 6 0 45 Folkestone & Hythe District Council 3 1 8 11 3 2 28 40 45 Forest Heath District Council 0 0 0 2 0 0 2 45 Forest of Dean District Council 0 0 2 6 0 2 10 100 45 Fylde Borough Council 0 0 4 2 2 1 9 33 45 Gateshead Metropolitan Borough Council 1 4 16 21 4 4 50 50 67 Gedling Borough Council 0 0 2 7 4 1 14 20 45 Gloucester City Council 1 1 8 2 1 0 13 0 45 Gloucestershire County Council 4 0 20 36 11 12 83 52 66 Gosport Borough Council 1 0 0 2 1 0 4 0 45 Page 60 Page Gravesham Borough Council 1 3 9 4 3 1 21 25 45 Great Yarmouth Borough Council 0 1 4 1 4 3 13 43 45 Greater London Authority 0 0 0 1 0 0 1 Guildford Borough Council 1 1 2 5 4 2 15 33 45 Halton Borough Council 4 1 7 23 6 4 45 40 56 Hambleton District Council 0 0 3 7 5 0 15 0 45 Hampshire County Council 13 0 48 37 17 21 136 55 66 Harborough District Council 0 0 0 5 0 2 7 100 45 Harlow District Council 1 3 5 3 1 0 13 0 45 Harrogate Borough Council 1 0 9 12 6 3 31 33 45 Hart District Council 0 0 2 3 2 0 7 0 45 Hartlepool Borough Council 0 2 3 10 6 3 24 33 56 Hastings Borough Council 1 0 3 6 0 1 11 100 45 Havant Borough Council 1 0 10 9 3 0 23 0 45 Herefordshire Council 3 0 16 19 6 15 59 71 56 Hertfordshire County Council 8 2 37 35 4 29 115 88 66 Hertsmere Borough Council 1 0 7 4 0 3 15 100 45 High Peak Borough Council 0 1 3 3 0 0 7 45 Hinckley & Bosworth Borough Council 0 0 2 7 6 0 15 0 45 Horsham District Council 1 0 2 6 4 2 15 33 45 Huntingdonshire District Council 1 1 4 10 2 2 20 50 45 Hyndburn Borough Council 0 0 2 2 1 0 5 0 45 Ipswich Borough Council 1 2 5 6 0 2 16 100 45 Isle of Wight Council 5 0 12 10 8 7 42 47 56 Kent County Council 14 2 61 69 27 39 212 59 66 Kettering Borough Council 0 1 9 5 1 0 16 0 45 King's Lynn & West Norfolk Council 0 0 3 5 2 0 10 0 45 Kingston upon Hull City Council 5 3 21 21 3 4 57 57 56 Kirklees Metropolitan Borough Council 9 2 53 31 11 12 118 52 67 Knowsley Metropolitan Borough Council 0 1 6 3 3 9 22 75 67 Lake District National Park Authority 0 0 0 1 5 0 6 0 23 Lancashire County Council 12 3 66 52 16 28 177 64 66 Lancaster City Council 1 0 1 3 2 0 7 0 45 Leeds City Council 11 13 58 63 18 31 194 63 67 Leicester City Council 7 2 40 34 14 22 119 61 56 Leicestershire County Council 4 0 26 19 5 18 72 78 66 Lewes District Council 1 1 7 3 0 1 13 100 45 Lichfield District Council 1 0 0 3 2 1 7 33 45 Page 61 Page Lincoln City Council 0 3 3 4 4 0 14 0 45 Lincolnshire County Council 2 0 23 22 11 9 67 45 66 Liverpool City Council 9 2 46 47 3 22 129 88 67 London Borough of Barking & Dagenham 8 10 59 27 2 13 119 87 70 London Borough of Barnet 12 3 64 60 13 32 184 71 70 London Borough of Bexley 1 0 28 30 9 22 90 71 70 London Borough Of Brent 5 6 55 44 8 19 137 68 70 London Borough of Bromley 7 2 49 40 15 28 141 65 70 London Borough of Camden 10 6 39 32 7 13 107 65 70 London Borough of Croydon 14 8 83 44 24 31 204 56 70 London Borough of Ealing 6 7 79 69 10 27 198 73 70 London Borough of Enfield 10 13 57 38 13 20 151 61 70 London Borough of Hackney 11 8 33 35 11 15 113 58 70 London Borough of Hammersmith & Fulham 7 11 20 22 13 10 83 43 70 London Borough of Haringey 10 11 59 43 8 33 164 80 70 London Borough of Harrow 11 1 49 54 9 24 148 73 70 London Borough of Havering 8 4 32 48 10 12 114 55 70 London Borough of Hillingdon 14 8 21 50 10 25 128 71 70 London Borough of Hounslow 6 3 48 44 6 18 125 75 70 London Borough of Islington 4 6 30 21 7 17 85 71 70 London Borough of Lambeth 11 28 92 59 13 24 227 65 70 London Borough of Lewisham 6 3 62 28 9 21 129 70 70 London Borough of Merton 11 1 29 33 7 25 106 78 70 London Borough of Newham 28 30 84 54 12 22 230 65 70 London Borough of Redbridge 6 2 52 46 6 28 140 82 70 London Borough of Richmond upon Thames 3 0 24 32 6 9 74 60 70 London Borough of Southwark 7 18 59 48 5 24 161 83 70 London Borough of Sutton 4 6 24 22 3 15 74 83 70 London Borough of Tower Hamlets 8 7 39 42 8 16 120 67 70 London Borough of Waltham Forest 6 7 73 54 9 20 169 69 70 London Borough of Wandsworth 5 6 19 26 5 19 80 79 70 Luton Borough Council 6 4 23 13 11 13 70 54 56 Maidstone Borough Council 6 1 6 19 4 7 43 64 45 Maldon District Council 0 0 5 6 0 1 12 100 45 Malvern Hills District Council 0 0 0 2 2 2 6 50 45 Manchester City Council 11 2 46 72 12 17 160 59 67 Mansfield District Council 1 2 5 5 1 1 15 50 45 Medway Council 3 3 20 35 8 11 80 58 56 Page 62 Page Melton Borough Council 0 1 0 5 2 2 10 50 45 Mendip District Council 2 0 6 4 3 0 15 0 45 Mid Devon District Council 0 0 4 4 2 1 11 33 45 Mid Suffolk District Council 1 1 2 6 0 3 13 100 45 Mid Sussex District Council 1 0 3 7 4 2 17 33 45 Middlesbrough Borough Council 4 0 10 16 3 4 37 57 56 Milton Keynes Council 11 3 24 27 3 10 78 77 56 Mole Valley District Council 0 0 5 10 3 0 18 0 45 New Forest District Council 0 2 7 3 3 0 15 0 45 New Forest National Park Authority 0 0 1 2 0 0 3 23 Newark & Sherwood District Council 0 1 2 8 0 1 12 100 45 Newcastle upon Tyne City Council 4 2 21 17 6 12 62 67 67 Newcastle-under-Lyme Borough Council 0 0 4 2 1 3 10 75 45 Norfolk County Council 6 1 44 33 22 37 143 63 66 North Devon District Council 0 0 1 14 2 3 20 60 45 North Dorest District Council 0 0 0 0 0 1 1 100 45 North East Derbyshire District Council 0 0 1 2 2 0 5 0 45 North East Lincolnshire Council 3 0 19 17 9 2 50 18 56 North Hertfordshire District Council 2 0 7 4 2 3 18 60 45 North Kesteven District Council 0 0 0 6 0 4 10 100 45 North Lincolnshire Council 2 0 14 12 2 5 35 71 56 North Norfolk District Council 0 0 5 2 3 0 10 0 45 North Somerset Council 2 3 29 27 5 8 74 62 56 North Tyneside Metropolitan Borough Council 3 1 16 20 4 8 52 67 67 North Warwickshire Borough Council 0 1 3 0 0 0 4 45 North West Leicestershire District Council 1 0 3 2 2 1 9 33 45 North York Moors National Park Authority 0 0 0 0 1 0 1 0 23 North Yorkshire County Council 5 0 27 25 9 18 84 67 66 Northampton Borough Council 2 2 7 10 4 7 32 64 45 Northamptonshire County Council 3 2 28 31 7 22 93 76 66 Northumberland County Council 5 0 25 35 17 9 91 35 56 Northumberland National Park Authority 0 0 0 0 0 0 0 23 Norwich City Council 3 1 16 15 3 7 45 70 45 Nottingham City Council 3 2 29 33 7 12 86 63 56 Nottinghamshire County Council 5 0 25 34 13 27 104 68 66 Nuneaton & Bedworth Borough Council 2 1 8 16 5 4 36 44 45 Oadby & Wigston Borough Council 0 0 4 2 2 3 11 60 45 Oldham Metropolitan Borough Council 3 1 29 25 6 7 71 54 67 Page 63 Page Oxford City Council 0 4 6 2 0 0 12 45 Oxfordshire County Council 2 1 23 12 5 16 59 76 66 Peak District National Park Authority 0 0 0 1 1 1 3 50 23 Pendle Borough Council 1 0 10 4 1 0 16 0 45 Peterborough City Council 6 0 16 11 5 4 42 44 56 Plymouth City Council 0 1 36 47 11 12 107 52 56 Poole Borough Council 1 0 1 3 3 1 9 25 56 Portsmouth City Council 3 0 11 15 5 6 40 55 56 Preston City Council 0 0 5 5 7 1 18 13 45 Purbeck District Council 0 0 0 1 1 1 3 50 45 Reading Borough Council 5 3 10 19 3 3 43 50 56 Redcar & Cleveland Council 0 1 14 13 3 1 32 25 56 Redditch Borough Council 1 1 2 4 0 0 8 45 Reigate & Banstead Borough Council 2 1 2 5 2 1 13 33 45 Ribble Valley Borough Council 2 0 1 5 0 0 8 45 Richmondshire District Council 0 0 2 2 0 0 4 45 Rochdale Metropolitan Borough Council 0 3 16 15 8 7 49 47 67 Rochford District Council 0 0 4 6 0 1 11 100 45 Rossendale Borough Council 1 0 14 1 4 2 22 33 45 Rother District Council 1 0 4 9 2 3 19 60 45 Rotherham Metropolitan Borough Council 5 0 29 25 3 4 66 57 67 Royal Borough of Greenwich 10 6 31 44 5 25 121 83 70 Royal Borough of Kensington & Chelsea 6 4 18 13 6 11 58 65 70 Royal Borough of Kingston upon Thames 6 4 20 15 3 10 58 77 70 Royal Borough of Windsor and Maidenhead Council 4 0 14 16 8 7 49 47 56 Rugby Borough Council 1 0 6 4 3 0 14 0 45 Runnymede Borough Council 2 0 2 4 2 1 11 33 45 Rushcliffe Borough Council 0 0 1 1 2 1 5 33 45 Rushmoor Borough Council 0 0 1 2 2 0 5 0 45 Rutland County Council 0 0 2 2 0 1 5 100 56 Ryedale District Council 0 0 2 4 0 1 7 100 45 Salford City Council 3 0 32 26 5 12 78 71 67 Sandwell Metropolitan Borough Council 12 5 49 22 2 15 105 88 67 Scarborough Borough Council 0 0 5 7 2 1 15 33 45 Sedgemoor District Council 1 0 1 7 2 0 11 0 45 Sefton Metropolitan Borough Council 4 1 26 19 3 13 66 81 67 Selby District Council 1 2 4 7 2 3 19 60 45 Sevenoaks District Council 0 1 2 7 1 2 13 67 45 Page 64 Page Sheffield City Council 8 7 40 53 4 34 146 89 67 Shropshire Council 5 1 23 29 16 11 85 41 56 Slough Borough Council 4 5 19 16 6 5 55 45 56 Solihull Metropolitan Borough Council 3 3 11 15 4 5 41 56 67 Somerset County Council 7 3 27 18 7 21 83 75 66 Somerset West and Taunton Council 4 0 5 10 2 1 22 33 45 South Bucks District Council 0 0 10 3 1 2 16 67 45 South Cambridgeshire District Council 1 0 6 7 4 2 20 33 45 South Derbyshire District Council 0 0 2 3 1 1 7 50 45 South Downs National Park Authority 0 0 1 0 1 0 2 0 23 South Gloucestershire Council 2 0 23 21 6 2 54 25 56 South Hams District Council 1 0 2 7 1 2 13 67 45 South Holland District Council 0 1 1 8 0 1 11 100 45 South Kesteven District Council 0 2 7 3 4 1 17 20 45 South Lakeland District Council 0 0 0 4 10 0 14 0 45 South Norfolk District Council 1 0 5 5 0 1 12 100 45 South Northamptonshire District Council 0 0 1 2 0 1 4 100 45 South Oxfordshire District Council 0 0 3 10 3 1 17 25 45 South Ribble Borough Council 1 0 2 3 1 0 7 0 45 South Somerset District Council 1 0 6 8 2 2 19 50 45 South Staffordshire District Council 0 0 4 2 1 0 7 0 45 South Tyneside Metropolitan Borough Council 0 1 16 12 5 6 40 55 67 Southampton City Council 4 2 22 19 3 7 57 70 56 Southend-on-Sea Borough Council 6 1 28 18 3 7 63 70 56 Spelthorne Borough Council 1 0 8 4 1 0 14 0 45 St Albans City Council 2 0 8 10 2 2 24 50 45 St Edmundsbury Borough Council 0 0 0 0 1 2 3 67 45 St Helens Metropolitan Borough Council 5 0 17 7 2 6 37 75 67 Stafford Borough Council 0 0 6 6 1 1 14 50 45 Staffordshire County Council 6 0 42 47 18 26 139 59 66 Staffordshire Moorlands District Council 0 0 0 3 0 2 5 100 45 Stevenage Borough Council 1 4 3 3 0 1 12 100 45 Stockport Metropolitan Borough Council 4 1 17 25 7 10 64 59 67 Stockton-on-Tees Borough Council 4 0 14 15 4 6 43 60 56 Stoke-on-Trent City Council 3 5 30 39 6 9 92 60 56 Stratford-on-Avon District Council 1 0 7 5 4 1 18 20 45 Stroud District Council 1 0 6 9 2 0 18 0 45 Suffolk Coastal District Council 0 0 0 1 1 3 5 75 45 Page 65 Page Suffolk County Council 6 0 27 40 7 23 103 77 66 Sunderland City Council 6 2 30 27 4 7 76 64 67 Surrey County Council 13 0 63 63 16 33 188 67 66 Surrey Heath Borough Council 0 0 2 5 4 2 13 33 45 Swale Borough Council 1 0 3 13 2 5 24 71 45 Swindon Borough Council 6 5 29 11 3 7 61 70 56 Tameside Metropolitan Borough Council 5 1 18 26 8 7 65 47 67 Tamworth Borough Council 2 2 5 2 1 1 13 50 45 Tandridge District Council 0 3 6 5 2 2 18 50 45 Taunton Deane Borough Council 0 0 0 0 1 2 3 67 45 Teignbridge District Council 0 0 4 10 5 0 19 0 45 Telford & Wrekin Council 3 0 14 16 6 7 46 54 56 Tendring District Council 1 1 13 7 1 5 28 83 45 Test Valley Borough Council 0 0 3 3 1 1 8 50 45 Tewkesbury Borough Council 0 0 3 5 1 2 11 67 45 Thanet District Council 1 0 6 4 3 17 31 85 45 Three Rivers District Council 1 2 5 3 3 0 14 0 45 Thurrock Council 8 1 17 12 7 10 55 59 56 Tonbridge and Malling Borough Council 0 0 9 4 2 1 16 33 45 Torbay Council 4 0 22 31 7 8 72 53 56 Torridge District Council 2 0 2 6 16 2 28 11 45 Trafford Council 4 1 37 24 8 19 93 70 67 Transport for London 14 0 173 111 3 20 321 87 Tunbridge Wells Borough Council 0 0 4 6 2 0 12 0 45 Uttlesford District Council 0 0 0 4 0 2 6 100 45 Vale of White Horse District Council 0 0 6 7 3 2 18 40 45 Wakefield City Council 3 2 18 28 12 7 70 37 67 Walsall Metropolitan Borough Council 4 0 19 20 6 12 61 67 67 Warrington Council 2 1 16 15 4 7 45 64 56 Warwick District Council 2 0 6 7 2 0 17 0 45 Warwickshire County Council 1 1 20 16 2 6 46 75 66 Watford Borough Council 0 0 8 13 4 5 30 56 45 Waveney District Council 0 0 1 1 0 1 3 100 45 Waverley Borough Council 1 2 4 5 2 2 16 50 45 Wealden District Council 0 1 3 10 3 1 18 25 45 Wellingborough Borough Council 1 0 3 3 0 2 9 100 45 Welwyn Hatfield Borough Council 0 2 5 14 2 3 26 60 45 West Berkshire Council 3 2 7 15 5 6 38 55 56 Page 66 Page West Devon Borough Council 0 0 2 2 3 1 8 25 45 West Dorset District Council 0 0 0 1 2 1 4 33 45 West Lancashire Borough Council 1 0 3 4 1 0 9 0 45 West Lindsey District Council 0 0 2 8 4 1 15 20 45 West Oxfordshire District Council 0 0 2 5 2 0 9 0 45 West Somerset District Council 0 0 0 1 0 0 1 45 West Suffolk Council 0 0 8 6 1 2 17 67 45 West Sussex County Council 4 1 34 57 18 25 139 58 66 Westminster City Council 6 11 41 20 8 21 107 72 70 Weymouth & Portland District Council 0 0 0 1 0 1 2 100 45 Wigan Metropolitan Borough Council 7 3 37 21 10 4 82 29 67 Wiltshire Council 6 2 19 24 18 19 88 51 56 Winchester City Council 0 1 6 7 0 2 16 100 45 Wirral Metropolitan Borough Council 6 1 25 39 8 27 106 77 67 Woking Borough Council 0 1 4 0 3 0 8 0 45 Wokingham Borough Council 1 0 16 12 5 16 50 76 56 Wolverhampton City Council 4 2 23 21 5 7 62 58 67 Worcester City Council 0 0 6 5 0 5 16 100 45 Worcestershire County Council 4 2 30 14 3 19 72 86 66 Worthing Borough Council 0 1 3 7 1 6 18 86 45 Wychavon District Council 0 0 3 3 1 2 9 67 45 Wycombe District Council 0 0 11 5 0 3 19 100 45 Wyre Borough Council 0 0 8 4 2 1 15 33 45 Wyre Forest District Council 1 1 3 4 0 2 11 100 45 Yorkshire Dales National Park Authority 0 0 0 0 0 0 0 23 Totals 997 562 5634 5723 1630 2585 17131

Notes These statistics include all complaints and enquiries that were decided from 01 April 2019 to 31 March 2020. Some cases are received and decided in different business years. This means the number of complaints and enquiries received may not match the number of decisions made. You can find comparisons with last year's data on the second and third tabs of this workbook. For more information on how to interpret our statistics: http://www.lgo.org.uk/information-centre/reports/annual-review-reports/interpreting-local-authority-statistics Page 67 Page Decisions made Initial check We carry out some basic checks like whether: 8000 ◦ the authority has had the chance to consider the complaint 7136 7193 7000 ◦ it looks like we might be the right people to help at this stage 5723 We categorise these decisions as 'referred back for local resolution', 'advice given' or 'incomplete/invalid' 6000 5150 5000 4232 4215 Initial investigation We decide whether to investigate the complaint by checking if: 4000 ◦ the issue is something the law allows us to look into and; 3000 ◦ there is good reason for us to formally investigate We categorise these decisions as 'closed after initial enquiries' 2000

1000 Detailed investigation We make a decision on whether the organisation was at fault by: 0 ◦ investigating what happened, and what should have happened, according to the laws and policies in place at the time Decided at initial check Decided by initial investigation Decided by detailed investigation ◦ making recommendations to put things right if necessary 18-19 19-20 We categorise these complaints as 'upheld' or 'not upheld' Page 68 Page Uphold rates by category 80% 72% 68% 69% 70% 66% 65% 66% 64% 66% 61% 63% 58% 56% 60% 53% 48% 49% 50% 42% 40% 40% 37% 30% 20% 10% 0% Overall uphold Adult Care Benefits & Corporate & Education & Environmental Highways & Housing Planning rate Services Taxation Other Children's Services & Transport

Page 69 Page Services Protection

2018-19 2019-20

22 July 2020

By email

Mr Jackson Executive Director: Resources and Head of Paid Service Bristol City Council

Dear Mr Jackson

Annual Review letter 2020

I write to you with our annual summary of statistics on the decisions made by the Local Government and Social Care Ombudsman about your authority for the year ending 31 March 2020. Given the exceptional pressures under which local authorities have been working over recent months, I thought carefully about whether it was still appropriate to send you this annual update. However, now, more than ever, I believe that it is essential that the public experience of local services is at the heart of our thinking. So, I hope that this feedback, which provides unique insight into the lived experience of your Council’s services, will be useful as you continue to deal with the current situation and plan for the future.

Complaint statistics

This year, we continue to place our focus on the outcomes of complaints and what can be learned from them. We want to provide you with the most insightful information we can and have made several changes over recent years to improve the data we capture and report. We focus our statistics on these three key areas:

Complaints upheld - We uphold complaints when we find some form of fault in an authority’s actions, including where the authority accepted fault before we investigated. A focus on how often things go wrong, rather than simple volumes of complaints provides a clearer indicator of performance.

Compliance with recommendations - We recommend ways for authorities to put things right when faults have caused injustice. Our recommendations try to put people back in the position they were before the fault and we monitor authorities to ensure they comply with our recommendations. Failure to comply with our recommendations is rare. An authority with a compliance rate below 100% should scrutinise those complaints where it failed to comply and identify any learning.

Satisfactory remedies provided by the authority - We want to encourage the early resolution of complaints and to credit authorities that have a positive and open approach to resolving complaints. We recognise cases where an authority has taken steps to put things

Page 70 right before the complaint came to us. The authority upheld the complaint and we agreed with how it offered to put things right.

Finally, we compare the three key annual statistics for your authority with similar types of authorities to work out an average level of performance. We do this for County Councils, District Councils, Metropolitan Boroughs, Unitary Councils, and London Boroughs.

This data will be uploaded to our interactive map, Your council’s performance, along with a copy of this letter on 29 July 2020, and our Review of Local Government Complaints. For further information on how to interpret our statistics, please visit our website.

This year I have had concerns about your Council providing delayed responses to investigation enquiries. In several cases the introduction of a new complaints IT system was cited as the reason for the delay. In some instances, the Council had no trace of our enquiry letters, emails were not responded to, and letters had not been forwarded to the appropriate officers. The Council was unable to access information to respond to one set of enquiries because it was stored on the personal computer of an officer on long term sick leave.

In a further case we had to make additional enquiries because the initial response was incomplete. It was only when a witness summons was threatened that the information was provided. The failure to provide a timely response results in delayed investigations and can cause further frustration to complainants. I trust the Council will consider ways to improve its responses to this office to ensure future investigations are not unnecessarily delayed.

Resources to help you get it right

There are a range of resources available that can support you to place the learning from complaints, about your authority and others, at the heart of your system of corporate governance. Your council’s performance launched last year and puts our data and information about councils in one place. Again, the emphasis is on learning, not numbers. You can find the decisions we have made, public reports we have issued, and the service improvements your Council has agreed to make as a result of our investigations, as well as previous annual review letters.

I would encourage you to share the tool with colleagues and elected members; the information can provide valuable insights into service areas, early warning signs of problems and is a key source of information for governance, audit, risk and scrutiny functions.

Earlier this year, we held our link officer seminars in London, Bristol, Leeds and Birmingham. Attended by 178 delegates from 143 local authorities, we focused on maximising the impact of complaints, making sure the right person is involved with complaints at the right time, and how to overcome common challenges.

We have a well-established and successful training programme supporting local authorities and independent care providers to help improve local complaint handling. During the year, we delivered 118 courses, training more than 1,400 people. This is 47 more courses than we delivered last year and included more training to adult social care providers than ever before. To find out more visit www.lgo.org.uk/training.

Page 71 We were pleased to deliver a complaint handling course to your staff during the year. I welcome your Council’s investment in good complaint handling training and trust the course was useful to you.

Yours sincerely,

Michael King Local Government and Social Care Ombudsman Chair, Commission for Local Administration in England

Page 72 Bristol City Council For the period ending: 31/03/20

Complaints upheld

61% of complaints we 20 investigated were upheld. upheld decisions 61% This compares to an average of Statistics are based on a total of 33 56% in similar authorities. detailed investigations for the period between 1 April 2019 to 31 March 2020

Compliance with Ombudsman recommendations

In 100% of cases we were satisfied the authority had Statistics are based on a total of 7 successfully implemented our compliance outcomes for the period 100% recommendations. between 1 April 2019 to 31 March 2020 This compares to an average of 99% in similar authorities.

• Failure to comply with our recommendations is rare. An authority with a compliance rate below 100% should scrutinise those complaints where it failed to comply and identify any learning.

Satisfactory remedies provided by the authority

In 10% of upheld cases we found the authority had provided 2 a satisfactory remedy before the satisfactory remedy decisions 10% complaint reached the Ombudsman. Statistics are based on a total of 33 detailed investigations for the period between 1 April 2019 to 31 This compares to an average of March 2020 11% in similar authorities.

Page 73 Agenda Item 10

Report for Audit Committee

Audit Committee 23 November 2020

Report of: Director: Legal and Democratic Services

Title: Access to Information

Ward: n/a

Officer Presenting Report: Director: Legal and Democratic Services

Recommendation

That the Committee notes the contents of this report.

Summary

This report provides the Committee with an overview of the legal framework relating to access to information by Members of the Council, including access to exempt information.

The significant issues in the report are:

This report provides an overview of the legal and constitutional framework for access to information by Members of the Council, including access to exempt information. It identifies the different legal frameworks that govern access to information by members and in particular the rights of access to information for Audit Committee members.

Page 74 Report for Audit Committee

Policy

1. The legal framework relating to access to information is set out in legislation and those rules have been incorporated into the Council’s Constitution, in particular the Access to Information Procedure Rules.

Consultation

2. Internal The Head of Paid Service, S151 Officer, Chief Internal Auditor, Head of Legal Services.

3. External The Council’s External Auditors.

4. Overview of the legal framework relating to access to information

This section of the report provides an overview of the legal framework for access to information. The focus is on the general legal framework and how this relates in particular to the Audit Committee. A detailed consideration of the application of these rules to other committees (i.e. Cabinet, Scrutiny Commissions and the Human Resources Committee) is beyond the scope of this report.

The legal framework relating to access to information for councillors is contained in the Local Government Act 1972 and the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2012. This legislation sets out the general rights of access of councillors as well as specific rights relating to access to exempt information where it is reasonably necessary for a councillor to carry out their duties and the right of members of Scrutiny Commissions to access exempt information.

These statutory provisions build on the common law right of access which is often expressed as a ‘need to know’. However, this is not an absolute right and councillors do not have a roving commission to inspect documents out of mere curiosity or desire which do not relate to the exercise of their role as a Member or which arise from an indirect motive, i.e. to assist someone in litigation with the Council. Requests to access information based on a ‘need to know’ will be considered on a case by case basis. In particular the following questions will need to be asked to establish whether a councillor has a need to know in any given case. Is it necessary for a councillor to see a particular document to get the information that they are seeking? Are the duties that the councillor is seeking to carry out consistent with their responsibilities as an elected member of the council? Requests for information based on a ‘need to know’ are considered on a case by case basis by the Proper Officer for Access to Information (i.e. the Monitoring Officer).

Local Government Act 1972

The starting point for understanding the statutory framework for access to information is the Local Government Act 1972 (‘the 1972 Act’), as amended by the Local Government (Access to Information) Act 1985. This legislation codifies the long-established principle in local government that a councillor has a right to be provided with or to inspect council documents that are

Page 75 Report for Audit Committee reasonably necessary for them to see in order to carry out their duties as a councillor.

The statutory right of access to documents is provided by s.100F (1) of the 1972 Act, which provides that ‘any document which is in the possession or under the control of a principal council and contains material relating to any business to be transacted at a meeting of the council or a committee or a subcommittee’ must be open to inspection by any member of the principal council. In practice, this provision governs information that is to be considered at a public meeting and which is published and therefore in the public domain. This right is captured in APR5.1 and APR6 of the Access to Information Procedure Rules. Rights of access to information are limited by the statutory framework. A councillor cannot, for example, request sight of a document that has yet to come before a meeting.

Furthermore, if councillors wish to look into matters that have been dealt with in the past, then they will need to rely on rights of access available to the public generally, principally the Freedom of Information Act 2000.

Exempt information

In addition to the general right of access to information, exempt information will be made available where it relates to business to be transacted at a meeting. Schedule 12A of the 1972 Act sets out the categories of exempt information and these are repeated in APR10.3 of the Access to Information Procedure Rules.

Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2012

Building on the 1972 Act, the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2012 (‘2012 Regulations’) make further provision in respect of access to information. The 2012 Regulations set out the legal framework for Councils operating executive arrangements and contain two sets of provisions relating to private meetings of Cabinet (i.e. meetings closed to members of the public) at which exempt information is to be considered. The provisions relate to members generally and the additional rights available to members of overview and scrutiny committees.

Under Regulation 16 of the 2012 Regulations, all members are entitled to inspect any information that was considered at a private meeting of Cabinet, at the end of the meeting at which the information has been considered. However, this does not apply where this would involve the disclosure of exempt information falling within paragraphs 1-2, 4-5 and 7 of the categories of exempt information in APR10.4 or information falling within paragraph 3 of APR10.4 to the extent that the information relates to any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract or the advice of a political adviser. These rights of access are set out in APR21 of the Access to Information Procedure Rules.

Under Regulation 17 of the 2012 Regulations, members of an overview and scrutiny committee have additional rights of access to a copy of any exempt information provided that the information relates to any decisions made by Cabinet or officers and also provided that the information is relevant to any action or decision that is being scrutinised or reviewed as part of their work programme. These rights of access are set out in APR20 of the Access to Information Procedure Rules.

Page 76 Report for Audit Committee

The public interest test

The legal framework relating to access to exempt information includes a public interest test. In categorising information as exempt, the public interest in maintaining the exemption is balanced against the public interest in disclosing the information. Public interest considerations focus on the public good, not whether something is of interest to the public or private interests.

Public interest can take many forms, for example transparency and accountability in the conduct of public affairs, promoting public understanding, and safeguarding democratic processes, robust decision-making by public bodies, upholding ethical standards, natural justice and fairness and appropriate use of public resources. However, just because there is a public interest in something does not automatically mean that the information should be disclosed.

The following are general arguments in favour of disclosing information: public interest in transparency and accountability, public interest in a particular issue, probity into decision- making and presenting a full picture of an issue. However, there are various other matters to take into consideration as part of the balancing exercise: the prejudice that might be caused either to the authority or a third party by disclosure, the severity of any prejudice that might be caused by disclosure, the extent to which information is already in the public domain, the age of the information (the older the information the weaker the argument against disclosure), whether the issue is ongoing (i.e. in the case of commercial negotiations), the risk of legal challenge to the authority (if legal advice were disclosed). Such decisions relating to the categorisation of exempt information will be taken on a case by case basis by the Proper Officer for Access to Information.

Rights of Audit Committee members to access exempt information

The legal framework set out above applies in the following ways to members of the Audit Committee. Members of the Audit Committee receive information, including exempt information when it relates to business to be transacted at a meeting of the Audit Committee. The business that may be conducted at a meeting of the Audit Committee is set out in the Terms of Reference for the Committee as set out in Part 3 Responsibility for Functions of the Council’s Constitution.

To summarise, the function of the Audit Committee is an assurance function and it takes its assurance from the work of the Council’s Statutory Officers, Internal Audit and the work of the Council’s External Auditors. Furthermore, it is acknowledged that the Audit Committee has a responsibility to ensure that key representations to the external auditors as part of the external audit are accurate and complete in line with ISA260 and other standards. The Audit Committee should be able to access such information, including exempt information, which is reasonably necessary for them to discharge this duty.

In addition, members of the Audit Committee may access information that has been made publicly available for other meetings of the Council. Furthermore, members of the Audit Committee have the same rights of access that are available to all members as set out in Regulation 16 of the 2012 Regulations, referred to above. Finally, members of the Audit Committee will be able to make requests to access information based on a ‘need to know’.

It should be noted that there are no additional rights for members of the Audit Committee to Page 77 Report for Audit Committee

access exempt information equivalent to those of overview and scrutiny committees. Overview and scrutiny committees have a statutory role to scrutinise and review decisions of the executive. This is a very specific statutory duty as set out in Regulation 17 of the 2012 Regulations referred to above.

To conclude, the legal framework identified in this report affords the Audit Committee a number of mechanisms to access information, including exempt information. As is the case for other decisions relating to access to information, decisions about access to information for the Audit Committee will be made by the Proper Officer for access to information, taking into account the various matters identified in this report.

5. The legal framework set out in above is complex. The responsibility for oversight and decisions relating to access to information and in particular exempt information is that of the Proper Officer for Access to Information. Such decisions are made with support and advice from the Council’s legal team. Further advice and guidance to all Members can be provided in respect of these rights on a case by case basis.

Proposal

6. That the Committee notes the contents of this report.

Appendices:

None

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

None

Page 78 Agenda Item 11

Report for Audit Committee

Audit Committee 23 November 2020

Report of: Director: Legal and Democratic Services

Title: Lord Mayor’s Protocol

Ward: n/a

Officer Presenting Report: Director: Legal and Democratic Services

Recommendation

That the Committee endorses the Lord Mayor’s Protocol prior to it being taken to Full Council on 8th December 20 for approval.

Summary

If adopted at Full Council, it is intended that the attached Lord Mayor’s Protocol be added to the Constitution. The Protocol formalises the current operating arrangements relating to the Lord Mayor and does not include any new ways of working.

The significant issues in the report are:

The report sets out the protocols in relation to the Lord Mayor.

Page 79 Report for Audit Committee

Policy

1. The Lord Mayor is one of the existing 70 elected Councillors chosen annually by Full Council. A Mayor has existed in Bristol since 1216, although the Lord Mayoralty was granted by Queen Victoria in 1899. The Lord Mayor is usually someone who has been a Councillor for a number of years, and is normally a new appointment every year. The office of Lord Mayor is a (largely) ceremonial post, and by tradition, the Councillor who holds that office takes no part in the political life of the Council for their year of office. The Lord Mayor will impartially chair meetings of the Full Council (as set out in the Local Government Act 1972) and represent the Council at civic and ceremonial occasions.

2. Additional details of the role of Lord Mayor can be found in Article 7 of the Council’s Constitution;

Article 7 – The Lord Mayor and Chairing the Full Council The Lord Mayor will be elected annually.

The Lord Mayor and in their absence, the deputy Lord Mayor will have the following roles and functions:

CHAIRING THE FULL COUNCIL MEETING

The Lord Mayor will have the following responsibilities:

(1) to uphold and promote the purposes of the constitution, and to interpret the Constitution when necessary;

(2) to preside over meetings of the Full Council so that its business can be carried out efficiently and with regard to the rights of Councillors and the interests of the community;

(3) to ensure that the Full Council meeting is a forum for the debate of matters of concern to the local community and the place at which Members who are not on the executive are able to hold the Executive and committee chairs to account;

(4) to promote public involvement in the activities of the Full Council;

(5) to be the conscience of the Full Council; and

(6) to attend such civic and ceremonial functions as the Full Council and he/she determines appropriate.

Further details setting out the role of the Lord Mayor when chairing meetings of the Full Council can be found in the Council Procedure Rules.

Consultation

3. Internal Page 80 Report for Audit Committee

The Party Group Leaders, Lord Mayor and Whips.

4. External N/A

Proposal

5. That the Committees endorses the Protocol prior to it being taken to Full Council on 8th December 20 for approval.

Appendices:

A – Lord Mayor’s Protocol

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

None

Page 81 LORD MAYOR’S PROTOCOL

Introduction

1. The office of Lord Mayor is apolitical and mostly ceremonial. During their year of office, the Lord Mayor will chair meetings of the Full Council, represent the city at civic and ceremonial occasions, welcome visitors to Bristol and support a wide range of Bristol based organisations and institutions by way of visits and promotion.

2. This document sets out the functions of the Lord Mayor (and Deputy Lord Mayor) as well as providing an overview of some of the key working arrangements.

3. Within Bristol there are three types of Mayor. Each role is distinct and should not be confused. Additional details can be found here.

Election of Lord Mayor/Deputy Lord Mayor

4. The Lord Mayor is a Bristol City Councillor elected annually at Full Council. The position is usually given to someone who has been a Councillor for a number of years and is normally a new appointment for each term. The position of Lord Mayor (and Deputy) typically rotates between the Groups. The Deputy Lord Mayor is usually the previous year’s Lord Mayor.

Mayor Making Ceremony

5. The annual (Lord) Mayor Making ceremony takes place in May at Full Council where both the Lord Mayor and Deputy Lord Mayor are elected to their year of office. This is often marked by a ceremony with guests in attendance. At the meeting, Elected Members are invited to nominate the Lord Mayor which is followed by speeches on behalf of each political party.

Lord Mayor at Full Council

6. The Lord Mayor is the Chair of Full Council. This means they manage the business of each meeting, with advice and guidance from the Monitoring Officer as necessary. They do not usually vote and must remain impartial and apolitical, as well as chair the meeting effectively, efficiently and with respect. In the event of a tied vote the Lord Mayor may exercise a casting vote.

Civic/Ceremonial Role of the Lord Mayor

7. The Lord Mayor leads all civic and ceremonial events on behalf of the City, totalling up to 800 a year. All invitations and appointments are managed by the Lord Mayor’s Office (contact details below). A number of significant civic events are led by the Lord Mayor’s Office in conjunction with partners and stakeholders which include; the annual

Page 82 Remembrance Sunday Parade and Service; Freedom of the City ceremonies and parades; flag raising ceremonies (e.g. Commonwealth Day, Armed Forces Day and Emergency Services Day Flag Raising); the annual Lord Mayor’s Medals ceremony; VE and VJ day commemorations; a number of annual faith based services; and HMS Prince of Wales affiliation activity. The office also plays a leading role in delivering Bristol's Protocol for Marking the Death of a Senior National Figure.

8. The Lord Mayor will often be accompanied by the City Swordbearer. The City Swordbearer is an ancient ceremonial role, carried out by an existing member of Bristol City Council Staff.

9. The usual attire for the Lord Mayor when on official business is the Chain/Badge of Office and robes. Neither should be worn at any event not agreed by Bristol City Council officers.

10. The Deputy Lord Mayor represents the Lord Mayor at engagements if the Lord Mayor is unavailable. If necessary, alternative representation will be sought by an Honorary Alderman or Former Lord Mayor.

Twin Cities

11. Bristol is twinned with seven cities throughout the world; Bordeaux; Hannover; Tbilisi; Oporto; Puerto Morazan; Beira; and Guangzhou. The Lord Mayor is Honorary President for the Bordeaux Hannover, Oporto and Tbilisi twinnings.

Forms of Address

12. The Lord Mayor’s official title is ‘The Right Honourable Lord Mayor of Bristol, Councillor [insert name].’ When addressed directly, the correct form of address is ‘my Lord Mayor.’ These forms of address equally apply irrespective of gender.

13. The Deputy Lord Mayor is known as The Deputy Lord Mayor of Bristol and is addressed as ’my Deputy Lord Mayor’.

Lord Mayor’s Consort

14. The Lord Mayor may have one or more Consorts during their year of office. A female consort is referred to as the Lady Mayoress. A male consort is referred to as Lord Mayor’s Consort.

15. The role of consort is acknowledged by Bristol City Council although the post holder does not receive officer support. The Lord Mayor is responsible for ensuring the Consort carries out their duties with dignity and respect. Any reports to suggest otherwise should be reported to the Lord Mayor who must take appropriate action. The Consort cannot represent the Lord Mayor. If the Lord Mayor is unavailable, representation is sought from the Deputy Lord Mayor or Honorary Alderman.

Page 83 16. A Lady Mayoress should be addressed formally as ‘my Lady Mayoress’ and a male Consort as ‘Consort’ or ‘Mr Consort’.

Precedence – Lord Mayor and Mayor

17. There will be times when both the Lord Mayor and Mayor will be at the same event but for a different purpose. When the Lord Mayor and Mayor are asked to speak at the same event, the Lord Mayor will normally speak first, providing an introduction. The Mayor will then give a more detailed/comprehensive speech.

Lord Mayor’s Medals

18. The Lord Mayor awards up to 15 Lord Mayor’s Medals at an annual ceremony, recognising local people and the work they do on a daily basis to improve their communities. Anyone who is nominated must either live or work in the city and serve the people of Bristol through voluntary community work or charitable acts. Nominations are opened in the autumn with medals awarded in the spring. They are judged by the Lord Mayor along with group Whips. With the exception of relatives or partners, anyone can make a nomination, which must be accompanied by supportive statements from; two residents of Bristol and either a Bristol City Councillor or the elected Mayor.

The Lord Mayor's Charities

19. The Lord Mayor is Patron of or connected to a significant number of charities within Bristol. Every year, the Lord Mayor's Christmas Appeal for Children takes place to generate funding to provide children in Bristol with vouchers for food, toys and clothing. The appeal is run by Rotary, Round Table and Lions Clubs with the Lord Mayor as Patron.

Lord Mayor’s Parlour

20. The Lord Mayor’s Parlour is located in City Hall and is typically used for the majority of the Lord Mayor’s meetings and receptions. The Lord Mayor and support staff may work in the Parlour. The Parlour must not be used for personal or political use.

The Mansion House

21. The Mansion House is a commercial operation which is hired out for functions and events. It is managed by the City Council’s Commercialisation team with a third party contractor. The Mansion House may be booked for Lord Mayoral engagements (via the Lord Mayor’s Office).

22. The Lord Mayor can use the Mansion House without charge for personal use up to five times during their one year term, subject to agreement from Council officers. Personal events are not managed by the Lord Mayor’s Office and associated costs must be met by the Lord Mayor personally (e.g. food, drink etc).

Page 84 The Lord Mayor’s Chapel

23. The Lord Mayor’s Chapel is owned by the City Council (the country’s only municipal church) and since 1722 has been the official place of worship of the Lord Mayor.

Downs Committee

24. The Downs Committee was established under the Clifton and Durdham Downs (Bristol) Act 1861 and is responsible for managing The Downs and making decisions about the area and events held there. In accordance with the Act, the Committee is chaired by the Lord Mayor.

Lord Mayor’s Office

25. The Lord Mayor is supported by a small team of officers who manage Civic Affairs on behalf of the Council, including all social media.

Hospitality

26. A small hospitality budget is available to fund refreshments for Lord Mayor’s events, the majority of which is pre-allocated to known/expected functions. All expenditure is subject to approval by the Lord Mayor’s Office.

Transport

27. The Lord Mayor (and consort) travel to and from engagements in the Lord Mayor’s car, which bears the private registration AE1 and Civic flag. The car is also used to transport the Deputy Lord Mayor (and Consort) when deputising, if available. The vehicle is procured on behalf of the Lord Mayor’s office by Bristol City Council’s Fleet Management Services. The vehicle should be the most environmentally friendly model available for the appropriate size and budget.

28. Taxi travel may be offered to the Deputy Lord Mayor/Honorary Alderman should the Lord Mayor’s vehicle be unavailable. Lord Mayors may, on occasion, be asked to make their own travel arrangements at times (public holidays etc).

29. The Lord Mayor’s car is not, under any circumstances, to be used for personal use.

Travel – National and International

30. The Lord Mayor may be asked to represent the city at events outside of the Bristol boundary. The form of travel for such events will be agreed by the Lord Mayor’s Office. Overnight accommodation may be provided depending on time, ease of travel and budget.

Page 85 31. International travel will be subject to Bristol City Council’s International Travel Policy. The Lord Mayor’s Office does not hold any budget for international travel so the Lord Mayor may be asked to self-fund or get sponsorship on occasion.

Clothing

32. The Lord Mayor and Lady Mayoress/Consort may claim up to £1500 for clothing during their year of office (between them, not individually). Claims must be made within the year of office and be accompanied by receipts.

Lord Lieutenant and High Sheriff

33. The Lord Mayor will often be at the same engagements as Her Majesty’s Lord Lieutenant and the High Sheriff. Both positions are royal appointments but are non-political and unpaid. The Lord Lieutenant is the permanent representative of the Crown in the county and normally serves until retirement at between 70 and 75 years of age. The High Sheriff serves for one year and none of their expenses are paid by public funds.

34. With regard to precedence, the Lord Mayor speaks and acts on behalf of Bristol as First Citizen.

If you need advice or guidance on this Protocol please contact [email protected]

Updated – November 2020

Page 86 Agenda Item 12

Audit Committee

 . Audit Committee 23rd November 2020

Report of: Chief Internal Auditor

Title: Internal Audit Quality Assurance Improvement Programme

Ward: N/A

Officer Presenting Report: Simba Muzarurwi – Chief Internal Auditor

Contact Telephone Number: 07768476966

Recommendation

The Audit Committee to approve: (i) the Internal Audit Quality Assurance and Improvement Programme (QAIP) – Appendix 1; (ii) the Internal Audit Charter – Appendix 2; and (iii) the Internal Audit Strategy – Appendix 3.

Summary In accordance with the Public Sector Internal Audit Standards (PSIAS), Internal Audit is required to maintain a QAIP and report against it in its Annual Report to the Committee. The QAIP must cover all aspects of the internal audit activity which must include both internal and external assessments. The QAIP is underpinned by the Internal Audit Charter which sets out how the Service will comply with the PSIAS and its place within the organisation and the Internal Audit Strategy that sets out the framework for internal audit activities at the Council.

This QAIP, Internal Audit Charter and Internal Audit Strategy are presented to the Audit Committee for consideration and approval, as required by the PSIAS.

Significant Matters Arising: - The QAIP includes the update on the implementation of recommendations arising from the previous report and identifies new improvement actions.

- The Internal Audit Charter and Internal Audit Strategy reflect minor changes from the documents that were reviewed and approved by the Committee in November 2019.

Page 87 Audit Committee

1. Policy The PSIAS require the Internal Audit service within the organisation to set out its quality assurance arrangements in the form of a QAIP and to define its role, responsibilities and authority in the form of a Charter, which includes an explanation of the way in which the internal audit function will comply with the PSIAS. The monitoring of performance against the QAIP and adherence to the Charter must be assessed and reported to the Audit Committee on an annual basis.

2. Consultation

Internal – CLB including S151 Officer, Cabinet Member for Governance, Resources and Finance.

External – N/A

3. Context

3.1 The PSIAS sets out the requirement for a QAIP:

“The chief audit executive must develop and maintain a quality assurance and improvement programme that covers all aspects of internal audit activity which must include both internal and external assessments.”

3.2 The QAIP sets out how this process will work. Reporting against the QAIP will be included in the Annual Internal Audit report.

3.3 The Charter defines the purpose, authority, scope and responsibility of the Internal Audit service and is consistent with the mandatory requirements of the Public Sector Internal Audit Standards (PSIAS) and the supporting Local Authority Guidance Note (LGAN) produced by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Internal Auditors (IIA). It also meets the PSIAS requirement for Internal Audit’s risk-based plan to incorporate or link to a strategic or high-level statement.

3.4 It is the responsibility of the Chief Internal Auditor to ensure that the Internal Audit Charter is reviewed each year in order to confirm the Service’s compliance with the requirement as detailed in the Charter, as well as to maintain the Charter’s relevance to both the Internal Audit Service and the organisation as a whole.

3.5 The Internal Audit Strategy outlines how internal audit activities will be undertaken within the Council and defines the key principles and approach to be used. It further enhances the processes that form the basis for the annual opinion which informs the Council’s Annual Governance Statement and seeks to maximise collaborative working opportunities with other assurance providers such as external auditors, external assessment teams and regulatory compliance teams.

3.6 The Committee last approved the QAIP, Charter and Internal Audit Strategy in November 2019.

Page 88 Audit Committee

4. Proposal

4.1 Consistent with the PSIAS, the Committee consider and approve the updated QAIP, Internal Charter and Internal Audit Strategy. This also gives the Committee the opportunity to understand how the internal audit service is governed and delivered within the Council.

5. Other Options Considered – N/A

6. Risk Assessment

The work of Internal Audit minimises the risk of failures in the Council’s internal control, risk management and governance arrangements, reduces fraud and other losses and increases the potential for prevention and detection of such issues. The PSIAS provide for an effective independent and objective Internal Audit Service, ensuring a good standard of service to the organisation, whilst at the same time providing the Internal Audit Service with wider support in terms of maintaining its independence and freedom from influence.

Public Sector Equality Duties

No Equality Impact anticipated from this report.

Legal and Resource Implications

Legal – N/A Financial – N/A Land – N/A Personnel – N/A

Appendices: Appendix 1 – Internal Audit Quality Assurance and Improvement Programme

Appendix 2 – Internal Audit Charter

Appendix 3 – Internal Audit Strategy

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

Public Sector Internal Audit Standards.

Page 89

23rd November 2020

Internal Audit Quality Assurance and Improvement Programme (QAIP)

Page 90

Internal Audit Services

Internal Audit QAIP 23rd November 2020

1 1 Introduction

2 2 Internal Assessments

3 3 External Assessments

3 4 Review of the QAIP

Appendix A –Peer Review Implementation Update 5

Appendix B – QAIP Action Plan 2020/21 8

Page 91

Internal Audit Services

Internal Audit QAIP 23rd November 2020

1 Introduction

1.1 Internal Audit’s Quality Assurance and Improvement Programme (QAIP) is designed to provide reasonable assurance to the various stakeholders of the service that Internal Audit:

. Performs its work in accordance with its Charter, which is consistent with the Public Sector Internal Audit Standards (PSIAS) and the CIPFA Statement on the role of the head of internal audit;

. Operates in an effective and efficient manner; and

. Is perceived by stakeholders as adding value and continually improving its operations.

1.2 Internal Audit’s QAIP covers all aspects of Internal Audit activity in accordance with the PSIAS Standard 1300 (Quality Assurance and Improvement Programme), including:

. Monitoring the Internal Audit activity to ensure it operates in an effective and efficient manner (1300);

. Ensuring compliance with the PSIAS’ Definition of Internal Auditing and Code of Ethics (1300);

. Helping the Internal Audit activity add value and improve organisational operations (1300);

. Undertaking both periodic and on-going internal assessments (1311); and

. Commissioning an external assessment to the Audit Committee at least once every five years, the results of which are communicated to the Audit Committee (1312 and 1320).

1.3 The Chief Internal Auditor is ultimately responsible for the QAIP, which covers all types of Internal Audit activities, including consulting.

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Internal Audit Services

Internal Audit QAIP 23rd November 2020

2 Internal Assessments

2.1 In accordance with the PSIAS Standard, internal assessments are undertaken through both on-going and periodic reviews.

On-going Reviews

2.2 Continual assessments of quality are undertaken via:

. Management supervision of all engagements;

. Structured documented review of working papers and draft reports by Internal Audit management;

. Feedback from audit clients obtained through post audit questionnaires at the closure of each engagement;

. Monitoring of internal performance targets and annual reporting to the Audit Committee; and

. Review and approval of complex, and high risk outputs including all limited and no assurance opinions by the Chief Internal Auditor.

Periodic Reviews

2.3 The Internal Audit Service operates to a Charter that mandates compliance with relevant professional standards and specifically the definition of Internal Auditing, the Code of Ethics and the PSIAS which is regularly reviewed.

2.4 Periodic assessments are designed to evaluate conformance with these standards and are conducted via:

. Quarterly Progress Reports to the Audit Committee which includes progress against the annual plan, reports issued during the period including details of the opinion and summaries of key issues and outcomes from the work undertaken in the period;

. Annual Satisfaction Surveys to key stakeholders;

. Annual self-assessment of conformance with PSIAS;

. Annual review of compliance against the requirements of the QAIP, the results of which are reported to senior management and the Audit Committee;

. Feedback from the Section 151 Officer and Chair of the Audit

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Internal Audit Services

Internal Audit QAIP 23rd November 2020

Committee to inform the annual appraisal of the Chief Internal Auditor in accordance with Standard 1100;

. At least annual performance reviews for each Internal Auditor; and

. Regular review of individual auditors’ compliance with their continuous professional development requirements.

2.5 Significant areas of non-compliance with PSIAS identified through internal assessment will be reported in the Internal Audit Annual Report and used to inform the Annual Governance Statement.

2.6 Results of internal assessments will be reported to the Audit Committee at least annually. The Chief Internal Auditor will implement appropriate follow-up to any identified actions to ensure continual improvement of the service.

2.7 The Chief Internal Auditor will also periodically identify improvement requirements, for example in respect of audit planning, assurance mapping, audit processes, counter fraud, skills development for the team, audit profile and performance.

3 External Assessments

3.1 Consistent with the PSIAS, an external assessment occurs at least once every five years to ensure continued application of professional standards. The appointment of the External Assessor and scope of the External Assessment for the external assessment is approved by the Audit Committee

3.2 The Peer Review of the service was completed in February 2018 which expressed an opinion about Internal Audit’s conformance with the Standards, the Definition of Internal Audit and Code of Ethics including recommendations for improvement.

3.3 The Audit Committee has in the past received a few reports on the implementation of recommendations arising from the Peer Review. The last update was given in November 2019.

3.4 A review on the progress being made in addressing the actions arising from the Peer Review has been completed and Appendix A provides an update on the recommendations that were reported as not fully implemented in the last report to the Committee in November 2019.

4 Review of the QAIP

4.1 The QAIP is reviewed at least annually. Appendix B provides an update on the improvement actions identified in 2019/20 and any new actions.

PagePage 3 94

Internal Audit Services

Internal Audit QAIP 23rd November 2020

Peer Review Report Observations Recommendations Update – November 2020 A draft Training Strategy for the Recommendation 6: Closed Finance Service has been produced As outlined in the Improvement which focusses on professional Plan, the skills review should be qualifications only. A skills review undertaken by the Chief Internal within Internal Audit is to be Auditor. undertaken by the Chief Internal Auditor as part of the Improvement Plan to ensure the service has the correct skills, knowledge and competence to perform its responsibilities. All auditors do not currently have Recommendation 7: Ongoing sufficient knowledge of computer Identified as part of self- assisted audit techniques. This has assessment. Training in this area Comment: arisen as experienced staff have left is planned, and should be rolled the services. out as appropriate. The use of analytics tools is a key part of the audit strategy and we will work with the strategic partner to upskill the audit team in this area.

Professionally qualified staff are Recommendation 9: Closed responsible for meeting their own Following the outcome of the professional body requirements. A Skills Review and the Training Strategy for the team is not establishment of performance in place. targets, a training strategy should be formulated to guide the future development of the team. The self-assessment identified a Recommendation 12: Ongoing non-conformance in respect of the Within the Improvement Plan risk based plan taking into there is an agreed action to Assurance mapping is a key part of consideration the Council’s progress assurance mapping for the 2020/21 audit plan and work assurance framework. It is the Council. will be progressed once the acknowledged that a number of strategic partner is appointed. attempts have been made to The approach to using other develop an assurance framework for sources of assurance and any the Council but this has not been work that may be required to achieved. place reliance upon those sources should be further developed as The PSIAS requires that an part of the assurance mapping assurance mapping exercise is exercise. undertaken as part of identifying and determining the approach to

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Internal Audit QAIP 23rd November 2020

using other sources of assurance.

Whilst procedures were agreed to Recommendation 13: Closed guide the internal audit activity, Documented procedures should these were not fully documented in be developed to guide staff in the form of an audit manual and/or performing their duties in a use of an electronic management manner that conforms to the system. This has led to variations in PSIAS. application and thus inconsistencies in areas such as working papers and file storage.

From a review of four audit Recommendation 18: Closed assignments, there was insufficient Consistent completion of the detail within the working papers of working papers, particularly the . three assignments to fully RCES, should be undertaken to demonstrate that conclusions within ensure that all conclusions within the reports had been based on the audit reports are adequately sufficient analysis and evaluation. supported by documented testing.

The working paper which was in Recommendation 22: Closed place to demonstrate the As above, the approach to supervision and review of an audit undertaking and document the engagement by an Audit Manager quality review by the Audit was not always completed. In Manager should be evaluated to addition, the checklist of items that ensure it meets the requirements should be checked/reviewed as part of the PSIAS. If necessary, the of the quality monitoring was no checklist of requirements should longer in use. be reintroduced.

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Appendix B

Quality Assurance and Improvement Programme Action Plan

QAIP Element Action Status

Processes Implement an internal audit Completed management software and embed the use of data analytics in the audit process. Processes Implement continuous monitoring New action and continuous auditing methodologies.

Processes Introduce agile auditing New Action methodologies

Professional Complete the skills review and In progress – the proficiency set up long term arrangements appointment of a strategic for IT assurance. partner to support IT assurance is underway.

Communication results Embed the new assurance Completed opinions and the process for agreeing management actions

Follow ups Automating the process for In progress – process monitoring and reporting on the being automated through implementation of agreed the use a module within the management actions new audit management software (Pentana Audit)

Assurance mapping Undertake an assurance mapping Ongoing exercise as part of annual planning.

PagePage 6 97

INTERNAL AUDIT CHARTER

1. Introduction:

1.1 The Chief Executive as the Head of Paid Service and the Section151 Officer are responsible for maintaining an effective and appropriately resourced internal audit function, in line with the Accounts and Audit Regulations (2018). The regulations specifically require that “A relevant authority must undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, and taking into account public sector internal auditing standards or guidance”.

1.2 This Internal Audit Charter defines the purpose, authority, scope and responsibility of the Internal Audit service and is consistent with the mandatory requirements of the Public Sector Internal Audit Standards (PSIAS) and the supporting Local Authority Guidance Note (LGAN) produced by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Internal Auditors (IIA).

2. Purpose and mission:

2.1 The purpose of the Bristol City Council Internal Audit Service is to provide independent, objective assurance and consulting services designed to add value and improve Bristol City Council’s operations.

2.2 The mission of Internal Audit is to enhance and protect organisational value by providing risk-based and objective assurance, advice, and insight. The Internal Audit Service helps the Council accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management and control processes consistent with the Bristol City Council Internal Audit Strategy.

2.3 The Internal Audit Service will govern itself by adherence to the Public Sector Internal Audit Standards (PSIAS) including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing, the Definition of Internal Auditing and the CIPFA Statement on the role of the head of internal audit.

2.4 The Chief Internal Auditor will report periodically to senior management and the Audit Committee regarding the Internal Audit Service’s conformance to the Code of Ethics and the PSIAS.

3. Authority:

3.1 The Chief Internal Auditor will report functionally to the Audit Committee and administratively (i.e., day-to-day operations) to the Director of Finance (Section 151 Officer). The Director of Finance is a Corporate Leadership Board (CLB) member in their own right and these management arrangements meet the PSIAS requirements.

______BCC Internal Audit Charter – Reviewed November 2020 1 Page 98 To establish, maintain, and assure that the Internal Audit Service has sufficient authority to fulfil its duties, the Audit Committee will:

. Approve the Internal Audit Charter.

. Approve the risk-based internal audit plan.

. Receive communications from the Chief Internal Auditor on the Internal Audit Service’s performance relative to its plan and other matters.

. Approve decisions regarding the appointment and removal of the Chief Internal Auditor.

. Approve the remuneration of the Chief Internal Auditor.

. Make appropriate inquiries of management and the Chief Internal Auditor to determine whether there is inappropriate scope or resource limitations.

3.2 The Chief Internal Auditor will have unrestricted access to, and communicate and interact directly with, the Audit Committee including in private meetings without management present.

3.3 Consistent with the Internal Audit Strategy, the remit of Internal Audit covers the whole of the Council, its companies and other joint working arrangements where the Council is the Accountable Body as well as contract arrangements where the right of audit is included within the contract.

4. Independence and objectivity:

4.1 The Chief Internal Auditor will ensure that the Internal Audit Service remains free from all conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of audit selection, scope, procedures, frequency, timing, and report content.

4.2 Internal Audit is independent of the activities that it audits to ensure the unbiased judgements essential to its proper conduct and impartial advice to management. The Chief Internal Auditor reports to the Audit Committee, on a regular basis, on the organisational independence of the Internal Audit service.

4.3 Internal Audit operates within a framework that allows unrestricted access to senior management and Council, particularly the Mayor, the Chair of the Audit Committee, the Chief Executive and the CLB. The Chief Internal Auditor reports in his/her own name to the CLB and the Audit Committee.

4.4 Should the independence or objectivity of the Internal Audit service be impaired in fact or appearance, the Chief Internal Auditor will disclose details of the impairment to the S.151 Officer and / or Chair of the Audit Committee depending upon the nature of the impairment.

4.5 When requested to undertake any additional roles / responsibilities outside of Internal Auditing, the Chief Internal Auditor must highlight to the Audit Committee any potential or perceived impairment to independence and objectivity having regard to

______BCC Internal Audit Charter – Reviewed November 2020 2 Page 99 the principles contained within the Code of Ethics. The Audit Committee must approve and periodically review any safeguards put in place to limit impairments to independence and objectivity.

4.6 As far as practicable, Internal Audit does not participate in the day to day operation of any systems without agreement of the Audit Committee. However, in strict emergency situations only, Internal Audit staff may be called upon to carry out operational work. In those instances, those seconded to operational areas will not be assigned to provide audit services to those parts of the organisation for a period of one year from the date they finish the secondment.

4.7 Where non-audit work, or consultancy work, is requested or required, the Chief Internal Auditor ensures that there are no conflicts of interest arising from undertaking the non-audit work, or consultancy work and if necessary makes alternative arrangements for internal audit review of any area where such a conflict exists.

4.8 Where new colleagues join Internal Audit from a different part of the Council, they do not complete audit work in their previous area of responsibility for a period of at least 1 year.

4.9 Internal Audit has responsibility for collating assurances in support of the Council’s Annual Governance Statement; for drafting the Statement and for facilitating management review. The Chief Internal Auditor does not have line management responsibility for those staff involved in governance processes and does not consider that the responsibilities in respect of the Annual Governance Statement restrict the ability to report objectively on governance.

5. Definitions and Responsibilities of Officers and the Council in Relation to Internal Audit:

For the purpose of this Charter the following definitions apply:

. The Board is the Audit Committee - those charged with independent assurance on the adequacy of the Council's risk management framework, the internal control environment and the integrity of financial reporting arrangements. This includes oversight of the internal audit function and its activity

. Chief Executive and Head of Paid Service is also the Executive Director: Resources - who has responsibility for ensuring good governance, risk management and internal control arrangements exist and operate

. Senior Management is the Corporate Leadership Board (CLB) - those responsible for the leadership and the direction of the Council. Senior Management are also responsible for ensuring that internal control, risk management, and governance arrangements are sufficient to address the risks facing their Directorates and Services including the risk of fraud and corruption

______BCC Internal Audit Charter – Reviewed November 2020 3 Page 100 . Section 151 Officer - is the Director of Finance - the Section 151 Officer is responsible for: ensuring lawfulness and financial prudence of decision making; providing financial advice; internal control; risk management; setting financial standards; and ensuring key financial controls are in place to secure sound financial management; ensuring there is adequate and effective internal audit service

. Monitoring Officer - is the Director of Legal and Democratic Services – responsible for maintaining the Constitution; ensuring lawfulness and fairness of decision making; providing legal advice; and conducting member investigations. As such the Monitoring officer works closely with internal audit on governance matters.

6. Scope of internal audit activities

6.1 The scope of internal audit activities encompasses, but is not limited to, objective examinations of evidence for the purpose of providing independent assessments to the Audit Committee, management, and outside parties on the adequacy and effectiveness of governance, risk management, and control processes for Bristol City Council. Internal audit assessments include evaluating whether:

. Risks relating to the achievement of the Council’s strategic objectives are appropriately identified and managed.

. The actions of the Council’s members, officers, directors, employees, and contractors are in compliance with the Council’s policies, procedures, and applicable laws, regulations, and governance standards.

. The results of operations or programs are consistent with established goals and objectives.

. Operations or programs are being carried out effectively and efficiently.

. Established processes and systems enable compliance with the policies, procedures, laws, and regulations that could significantly impact Bristol City Council.

. Information and the means used to identify, measure, analyse, classify, and report such information are reliable and have integrity.

. Resources and assets are acquired economically, used efficiently, and protected adequately.

7. Internal Audit Activities:

7.1 Internal Audit Plan

7.1.1 The primary task of Internal Audit is to review the systems of governance, risk management and internal control operating throughout the Council and in this a predominantly risk based approach to assessing controls is adopted.

______BCC Internal Audit Charter – Reviewed November 2020 4 Page 101 7.1.2 A risk based plan of internal audit work is prepared annually and reviewed quarterly. The plan is derived from a risk assessment which is informed by the views of management, the Council’s risk registers, performance management reports and the assurance framework.

7.1.3 The audit plan is discussed with the CLB and the Section 151 Officer before review and approval by the Audit Committee. The CLB is provided with details of the annual plan for information. The audit plan is reviewed quarterly to ensure that it reflects current risks. Any significant changes to the agreed plan are reported to the Audit Committee through the periodic activity reporting process.

7.2 Audit and Assurance Reviews

7.2.1 For each audit assignment within the annual audit plan, a ‘Terms of Reference’ is drawn up and shared with the relevant managers. The Terms of Reference identifies the key risks to the achievement of Council objectives and identifies the scope of the work being carried out.

7.2.2 During the course of the audit, key issues are brought to the attention of the relevant manager to enable them to take corrective action. On completion of the audit, Internal Auditors communicate the results of the audit to the relevant Chief Executive / Director / Executive Director.

7.2.3 The completion of each planned assignment leads to individual reports to Heads of Service and /or Directors of Service and Executive Directors and these include an opinion on the control framework in place to manage the risks in the area reviewed. These opinions, together with other knowledge of issues identified in other audit work, assist the Chief Internal Auditor in providing an overall opinion on the control environment to management for the Annual Governance Statement.

7.3 Fraud and Irregularity work

7.3.1 Internal Auditors plan and evaluate their work to have a reasonable chance of detecting fraud; however the managing of the risk of fraud and corruption is the responsibility of management.

7.3.2 The Council’s Anti-Fraud, Bribery and Corruption Policy requires the Chief Internal Auditor to be informed of all suspected or detected fraud. A fraud risk assessment is performed on all suspected or detected fraud which determines whether the irregularity is investigated by Internal Audit or by the relevant directorate with support from Internal Audit where required.

7.3.3 Investigation of fraud and corruption is carried out in compliance with statutory requirements and the fraud investigation protocol, by staff with the necessary skills to do so.

7.3.4 In addition to determining the extent of the fraud, attention is given to correction of any control failures to prevent recurrence of the fraud.

7.3.5 As well as responding to incidents of fraud and corruption, Internal Audit staff maintains and deliver a programme of pro-active fraud prevention and detection work

______BCC Internal Audit Charter – Reviewed November 2020 5 Page 102 including national initiatives to prevent and detect fraud and testing of priority fraud risk areas.

7.4 Consultancy Reviews as Requested/Required

7.4.1 Internal Audit provides both statutory and discretionary services. Discretionary services provided by Audit are a form of consultancy. These services may be on request by management or the Council, or recommended by Internal Audit. Each of these reviews has a clearly defined and agreed Terms of Reference with agreed timescales for completion of the work and agreed reporting format.

7.4.2 In addition to planned audit reviews, Internal Audit offer advice on the internal control implications of new systems being implemented across the Council, as well as guidance and advice with regard to transformation projects within the Council.

7.4.3 The Chief Internal Auditor ensures that no conflicts of interest arise from undertaking any consultancy work by reviewing the scope of the work to be undertaken and maintaining Internal Audit’s independence from management functions.

7.4.4 Where significant consultancy reviews are commissioned in year, outside of the approved plan, then Audit Committee approval is sought in advance.

7.5 External Clients

7.5.1 Internal Audit provides internal audit services and assurances to a number of public sector / quasi-public sector clients including WECA (grant certifications) and Academies.

7.6 Reporting to the Audit Committee

7.6.1 The Chief Internal Auditor will report periodically to senior management and the Audit Committee regarding:

. The Internal Audit Service’s purpose, authority, and responsibility.

. The Internal Audit Service’s plan and performance relative to its plan.

. The Internal Audit Service’s conformance with The IIA’s Code of Ethics and Standards, and action plans to address any significant conformance issues.

. Significant risk exposures and control issues, including fraud risks, governance issues, and other matters requiring the attention of, or requested by, the Audit Committee.

. Results of audit engagements or other activities.

. Resource requirements.

. Any response to risk by management that may be unacceptable to the Council.

7.7 Assurance Mapping

______BCC Internal Audit Charter – Reviewed November 2020 6 Page 103 7.7.1 The Chief Internal Auditor also coordinates activities, where possible, and considers relying upon the work of other internal and external assurance and consulting service providers as needed. The Internal Audit Service may perform advisory and related client service activities, the nature and scope of which will be agreed with the client, provided the Internal Audit Service does not assume management responsibility.

7.7.2 Opportunities for improving the efficiency of governance, risk management, and control processes may be identified during engagements. These opportunities will be communicated to the appropriate level of management.

7.8 Reporting; Follow Up and Escalation Procedures:

7.8.1 Following the completion of all audit assignments a draft internal audit report is issued containing an opinion on the level of assurance that can be deemed from the control environment. The report outlines the findings or weaknesses, their causes and the associated risks and implications to the Council. Internal Audit will then engage with the relevant Senior Responsible Officers to agree the appropriate management actions required to address the weaknesses identified.

7.8.2 It is the full responsibility of the relevant Senior Responsible Officers to implement the agreed management actions and senior management are responsible for ensuring that there are appropriate arrangements for monitoring and reporting the progress in the implementation of agreed management actions.

7.8.3 Under the escalation element of this procedure, any audit with a no or limited assurance opinion will be subject to re-performance within six months from the date the final report was issued. The progress in the implementation of agreed management actions is also reported to the Audit Committee as part of its regular activity reports. Repeated failure to implement the agreed management actions will be reported to CLB and the Audit Committee, who may call the appropriate Senior Responsible Officer to account for the failure to correct the control environment.

7.8.4 The Chief Internal Auditor routinely reports to the Audit Committee providing Activity Reports to every meeting, together with an annual report of Internal Audit activity with details of significant control issues identified by audit work. The annual report provided by the Chief Internal Auditor includes the required opinion on the risk management and control arrangements in place and as such is an essential assurance to management in making their Annual Governance Statement.

7.9 Collaboration and Liaison with Other Auditors

7.9.1 The External Auditor has a statutory duty to express an opinion on the Council's financial statements and a Value for Money opinion on its arrangements for securing economy, efficiency and effectiveness. In doing so, there is potential for duplication of work completed by Internal Audit, particularly now that International Standards for Auditing (which apply to External Auditors) require a more detailed understanding of systems. Wherever possible, the Chief Internal Auditor seeks to co-ordinate the work of Internal Audit with that of the External Auditor through sharing of plans and quarterly liaison meetings, where appropriate.

______BCC Internal Audit Charter – Reviewed November 2020 7 Page 104 7.9.2 The Chief Internal Auditor also liaises with equivalents in neighbouring local authorities where services are shared or delivered jointly. Liaison is also ongoing with equivalents in Core City Local Authorities and the Local Authority Chief Auditors’ Network.

8. Responsibility

8.1 Internal Audit responsibilities:

The responsibilities incumbent on the Internal Audit Service are summarised below:

. Formulation and delivery of an annual Internal Audit plan which will enable the Chief Internal Auditor to provide management and the Audit Committee with the required objective opinion on the internal control, governance and risk management arrangements in place across the Council to inform the Annual Governance Statement

. Support of the Section 151 officer in discharging their statutory duties

. Reporting significant risk exposures and control issues identified to management and the Audit Committee, including fraud risks, governance issues, and other matters and making recommendations for improvement

. Ensuring the Council has a robust and proactive approach to fraud identification and investigation, investigating alleged frauds and other irregularities

. The review and certification of grant/funding claims as required

. Providing reports to the Audit Committee to enable it to discharge its duties

. Communicating risk and control information to the appropriate officers across the Council, whilst providing expertise and guidance in the matter of risk management

. Facilitating the establishment of assurances in support of the Annual Governance Statement

. Raising awareness of internal control, risk management and governance across the Council

. Undertake ad-hoc audit reviews, as required by senior management.

8.2 Chief Internal Auditor responsibilities

Specifically, the Chief Internal Auditor has the responsibility to:

. Submit, at least annually, to senior management and the Audit Committee a risk-based internal audit plan for review and approval.

______BCC Internal Audit Charter – Reviewed November 2020 8 Page 105 . Communicate to senior management and the Audit Committee the impact of resource limitations on the internal audit plan.

. Review and adjust the internal audit plan, as necessary, in response to changes in Bristol City Council’s business, risks, operations, programmes, systems, and controls.

. Communicate to senior management and the Audit Committee any significant interim changes to the internal audit plan.

. Ensure each engagement of the internal audit plan is executed, including the establishment of objectives and scope, the assignment of appropriate and adequately supervised resources, the documentation of work programs and testing results, and the communication of engagement results with applicable conclusions and recommendations to appropriate parties.

. Follow up on engagement findings and corrective actions, and report periodically to senior management and the Audit Committee any corrective actions not effectively implemented.

. Ensure the principles of integrity, objectivity, confidentiality, and competency are applied and upheld.

. Ensure the Internal Audit Service collectively possesses or obtains the knowledge, skills, and other competencies needed to meet the requirements of the internal audit charter.

. Ensure trends and emerging issues that could impact Bristol City Council are considered and communicated to senior management and the Audit Committee as appropriate.

. Ensure emerging trends and successful practices in internal auditing are considered.

. Establish and ensure adherence to policies and procedures designed to guide the Internal Audit Service.

. Ensure adherence to Bristol City Council’s relevant policies and procedures, unless such policies and procedures conflict with the internal audit charter. Any such conflicts will be resolved or otherwise communicated to senior management and the Audit Committee.

. Ensure conformance of the Internal Audit Service with the Standards.

8.3 Responsibilities for senior management:

. Engagement in the Internal Audit planning process – providing insight into high risk areas within the respective directorates

. Nomination of responsible officers for all planned and ad-hoc internal audit reviews

______BCC Internal Audit Charter – Reviewed November 2020 9 Page 106 . Timely engagement and clearance of relevant Terms of Reference, Audit queries, Draft and Final reports. Timely being defined as within a two week timeframe unless otherwise defined and/or agreed

. Engagement with the Internal Audit follow-up process, providing evidence of recommendation implementation as and when implementation is achieved, should this be before a planned follow-up has commenced or after the follow-up has been completed.

9. Code of Ethics

9.1 To enhance the environment of trust between Internal Audit and management, all staff involved in the delivery of Internal Audit services complies with the Code of Ethics laid down in the PSIAS. Staff induction and training ensures all staff are aware of this requirement. Additionally, many Internal Audit staff are bound by the ethical codes of the professional bodies they have qualified with and all are bound by the Council's own Code of Conduct for employees. Fundamentally, the following ethical standards are observed:

. Integrity - performing work with honesty, diligence and responsibility

. Objectivity - making a balanced assessment of all the relevant circumstances, not unduly influenced by personal interests or by others in forming judgements

. Confidentiality - respecting the value and ownership of information obtained and not disclosing information without appropriate authority, unless there is a legal or professional obligation to do so

. Competence and due professional care - applying the knowledge, skills and experience needed in the performance of work.

9.2 Internal Auditors are required to complete a Declaration of Interest every year to ensure that any interests are known by management and safeguards can be put in place as required. Additionally, they are required to declare any potential conflicts of interest at the start of an audit assignment.

10. Quality assurance and improvement programme

10.1 The Internal Audit Service will maintain a quality assurance and improvement programme that covers all aspects of the Internal Audit Service. The program will include an evaluation of the Internal Audit Service’s conformance with the Standards and an evaluation of whether internal auditors apply the IIA’s Code of Ethics. The program will also assess the efficiency and effectiveness of the Internal Audit Service’s and identify opportunities for improvement.

10.2 The Chief Internal Auditor will communicate to senior management and the Audit Committee on the Internal Audit Service’s quality assurance and improvement programme, including results of internal assessments (both ongoing and periodic)

______BCC Internal Audit Charter – Reviewed November 2020 10 Page 107 and external assessments conducted at least once every five years by a qualified, independent assessor or assessment team from outside Bristol City Council.

11. Review of the Internal Audit Charter

11.1 In accordance with the PSIAS, the Internal Audit Charter is reviewed annually and presented to the Audit Committee for reconsideration and approval, as appropriate.

Approval

______Date ______

Chief Internal Auditor

______Date ______

Audit Committee Chair

______Date ______

Chief Executive

______BCC Internal Audit Charter – Reviewed November 2020 11 Page 108

INTERNAL AUDIT STRATEGY 2020 - 2023

1. Introduction:

1.1 The purpose of the Internal Audit Strategy is to enable the Internal Audit function (Internal Audit) to effectively prioritise its resources and focus its priorities on meeting the expectations of its stakeholders enhancing and protecting the Council’s values by providing risk-based and objective assurance, advice and insight.

1.2 This Strategy contains some improvements and initiatives that will enable Internal Audit to provide value-added services and proactive strategic advice to the organisation in addition to the effective and efficient delivery of the annual audit plan.

1.3 This Strategy does not include fraud and corruption as there is a separate Counter Fraud and Anti-Corruption Strategy being developed.

2. Context:

2.1 The Internal Audit Charter sets out the purpose, authority and responsibilities of the Council’s Internal Audit team. This enables us to work independently ensuring that work is aligned to Council priorities and upholds and promotes the Council’s values. As the demands on the Council continue to increase despite the reduction in central government funding we will support the organisation in effectively managing these challenges by working proactively with the Mayor, Directors, Members and Business Partners, sharing data, knowledge and expertise to help improve outcomes for our residents.

2.2 The strategy applies to Bristol City Council and its group of companies and any other partnership or commercial arrangements where the Council has control. The assumption is that the Council and its group of companies will continue to utilise the Bristol City Council Internal Audit Service. In other commercial arrangements, where the Council does not have full control, the Council and its partners will need to agree on the acceptable level of internal audit activity and the level of assurance required.

2.3 The requirements for an Internal Audit Service in local government are detailed in the Accounts and Audit Regulations 2018, which states that a relevant body must ‘undertake an adequate and effective internal audit of its accounting records and of its systems of internal control in accordance with the proper practices in relation to internal control’. The standards for proper practices in relation to internal audit are laid down in the Public Sector Internal Audit Standards.

2.4 The work of Internal Audit forms an essential part of the assurance framework in place which informs management when considering and compiling the Annual Governance Statement. The existence of Internal Audit, however, does not diminish

______BCC Internal Audit Strategy 2020-23 Revised November 2020 1 Page 109 the responsibility of management to establish systems of internal control to ensure that activities are conducted in a secure, efficient and well-ordered manner.

3. Background:

3.1 The Public Sector Internal Audit Standards (PSIAS) define Internal Audit as:

“... an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.”

3.2 The Chief Audit Executive (Chief Internal Auditor) must deliver an annual internal audit opinion and report that can be used by the Council to inform its Annual Governance Statement (AGS). This opinion must conclude on the overall adequacy and effectiveness of the organisation’s framework of governance, risk management and control.

PSIASs require that Internal Audit must:

o evaluate the design, implementation and effectiveness of the organisation’s objectives, programmes and activities;

o evaluate the effectiveness and contribute to the improvement of risk management processes; and

o assist the organisation in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement.

3.3 A key driver for this Strategy is the acknowledgement that the Council’s control environment continues to change as the Council seeks to create more alternative service delivery models and leveraging technology to improve public service delivery. The use of alternative service delivery models including Council owned companies has resulted in the Council delivering key services through contracts including operating systems, procedures and processes outside the Council’s direct control. It is therefore critical that the Council has a robust Internal Audit Strategy in place that demonstrates how Internal Audit can support the Council and its group of companies in achieving the Council’s key priorities by maintaining effective risk management, internal control and governance arrangements.

3.4 Ultimately this Strategy will help Internal Audit to deliver a focussed assurance programme ensuring it remains proactive and forward looking. On implementation, the Strategy should help deliver a value adding assurance service to the Council by enhancing the arrangements for providing assurance to those charged with governance, the Audit Committee and management.

4. Our Strategic Approach:

4.1 Our Deliverables

We will: ______BCC Internal Audit Strategy 2020-23 Revised November 2020 2 Page 110 o Be ‘fit for purpose’ now and for the future with appropriate capacity and skills to provide services that will enable the delivery of the Council’s Corporate Strategy. o Deliver a robust assurance service that is aligned with the Council’s strategic priorities and the highest risks to help increase public confidence and trust in Bristol Council and its Group of Companies. The key audit areas are:

Governance Risk Management Operational Processes Performance and Delivery Financial Systems Programmes and Change Management Grants Group of Companies Information Technology Advisory Consultancy Covid-19 response and recovery

o Work with senior management to put in place management assurance arrangements that enable them to proactively review, assess and design optimal control frameworks to manage operational and transactional controls. o Support the Council’s overall Covid19 recovery response ensuring that operating structures are resilient, sustainable and support good decision- making, risk management and communication. o Adopt audit policies, processes, procedures and systems that are enabling and dynamic to meet assurance needs of the business. o Implement new audit management software, to improve our efficiency and effectiveness in audit planning, testing, and reporting activities thereby enhancing the credibility, quality and consistency of internal audit processes. o Automate the process for following up and reporting the implementation of Agreed Management Actions which will simplify and speed the process as well as ensuring accountability, accuracy and consistency. o Implement a continuous monitoring and auditing methodology to enable management to continually review business processes for adherence to and deviations from intended levels of performance and effectiveness and internal audit to continually gather from processes data that supports auditing activities. o Increase the use of Data Analytics to improve our audit processes (scope and quality). o Deliver assurance maps for the Council and Bristol Holdings which identify the main sources and types of assurance that support the mitigation of the strategic risks. o Introduce agile auditing methodologies to provide more rapid responses to changing business assurance needs. o Implement a Quality Assurance and Improvement Programme providing assurance to stakeholders that Internal Audit complies with the PSIAS and the Chartered Institute of Public Finance and Accountancy (CIPFA) Statement on the role of the head of internal audit in public sector organisations.

4.2 Our Reporting ______BCC Internal Audit Strategy 2020-23 Revised November 2020 3 Page 111 We will:

o Provide impactful reporting on audit findings and the implementation of Agreed Management Actions to the Audit Committee, Corporate Leadership Board (CLB) and management, consistent with agreed reporting protocols. o Revise our report templates to enhance the quality of audit deliverables. o Provide an annual opinion and report to the Audit Committee and CLB based on the agreed programme of audit work and other sources of assurance to support the preparation of the statutory AGS. o Report on our performance and expected deliverables to CLB and Audit Committee as part of performance management arrangements. o Request feedback on all audit work and undertake an annual survey with key stakeholders on our performance and report results and any action taken to the Audit Committee and CLB. . The annual survey with stakeholders will be undertaken in March so that the results can be reported as part of the annual opinion. . On-going survey following each audit will be issued to the Audit Client with each final report and its completion is a key part of the audit process.

4.3 Our Resourcing

We will:

o Collectively possess the knowledge, skills, experience and other competencies that are required to deliver the audit plan and promote agile working and living the Council’s values. o Appoint a strategic partner who will support our core delivery arrangements and facilitate the transfer of knowledge through joint audit projects as well as providing training to enhance our commercial and specialist skills; o Develop, nurture and sustain talent by supporting our staff’s continuing professional development and professional qualification training. o Build resilience within our Service by developing and implementing succession plans at all professional levels underpinned by the principle of growing our own through the apprenticeship and graduate trainee route. o Work with senior management to explore opportunities for seconding staff in and out of Internal Audit. o Explore and develop opportunities for wider and more flexible resourcing and intelligence sharing with other assurance providers. o Continue the co-sourcing arrangements for the delivery of IT audits and foster arrangements for knowledge sharing and transfer with the in-house internal audit team. o Effectively collaborate with External Auditors and other review bodies working with the Council and its group of companies, across the three lines of defence. o Explore opportunities for collaborative arrangements with other local authority Internal Audit teams to build resilience within our teams. o Participate in initiatives by professional bodies and other Audit Network Groups to share best practice across our teams. ______BCC Internal Audit Strategy 2020-23 Revised November 2020 4 Page 112 4.5 Profile

We will:

o Embody the expected Bristol City Council behaviours and values – ensuring we are dedicated, we are curious, we show respect, we take ownership, we are collaborative and we act in the best interests of Bristol, setting an example for others. o Ensure our work adds value by contributing to the vision and priorities of Bristol and focussing on areas of highest risk. o Be responsive to the needs of our stakeholders ensuring that outcomes from our work are shared promptly using the most appropriate channel. o Conform to the PSIAS Code of Ethics – Integrity, Objectivity, Confidentiality and Competency o Have flexibility to reprioritise and undertake work considered to be high risk at short notice o Effectively engage with all our key stakeholders and request regular feedback on our performance and engagement. o Be proactive in suggesting meaningful improvements and risk assurance.

5. Getting our message across

At the draft report stage of an audit, it is the responsibility of the Senior Audit Client to promptly identify Agreed Management Actions, with a Responsible Officer and defined time frame for delivery. It will be the responsibility of management to ensure that all agreed actions arising from an audit report are implemented in accordance with the timetable they have given. Internal Audit will seek evidence on the progress of actions relating to key findings from the Audit Client against this timetable and report this to the CLB and Audit Committee. Where information is not provided within agreed timeframes reports will be issued without that information and the relevant senior managers will attend CLB and Audit Committee to provide further assurance.

6. Facilitating our work

To enable us to deliver a value add service we will foster collaborative working arrangements with our audit clients underpinned by our new client engagement model. The engagement with the responsible senior managers is crucial at all stages of the audit cycle particularly around:

o rolling audit planning, o agreeing scope and terms of reference, o cooperation and availability throughout the audit fieldwork, o collaboration over the reporting and agreeing the necessary management actions, o implementing the agreed actions in line with the agreed time scales, o providing feedback on internal audit performance following completion of audits, and o prioritising audit engagement to enable timely completion of audit activities.

8. Managing our performance ______BCC Internal Audit Strategy 2020-23 Revised November 2020 5 Page 113 We will manage our performance consistent with the Council’s performance management framework. The following Key Performance Indicators will be monitored and reported on.

Performance Indicator Performance Target Effectiveness 90% of the annual audit plan completed % of the audit plan achieved

Efficiency 90% of all audits undertaken completed % of audits completed within the agreed within agreed budget and timeline. budget and timelines

Efficiency 90% of all draft reports issued. % of draft reports issued within of 10 days from end of fieldwork

Efficiency 95% of all final reports issued. % of final reports issued within 5 days following receipt of management responses

Improvement 90% of all agreed management actions % of agreed management actions implemented within the agreed timeline. implemented timely

Value addition 75% of surveyed stakeholder satisfied % of stakeholders satisfied with audit with audit performance and outcomes. outcomes and value

9. Our risks

We have identified the following risks that may impact on the delivery of this Strategy which we will manage effectively consistent with the Councils’ risk management framework.

No. Risk Description Risk Owner 1. Failure to deliver the annual audit plan Deputy Chief internal Auditor

2. Inability to cope with pace and change. Chief Internal Auditor

3. Failure to attract, recruit and retain top talent Chief internal Auditor

4. Failure to detect material weaknesses and Deputy Chief internal problems Auditor

5. Non-compliance with professional standards Chief internal Auditor

6. Loss of reputation Chief Internal Auditor

______BCC Internal Audit Strategy 2020-23 Revised November 2020 6 Page 114 10. Assurance Levels

The system of internal control will be assessed and given a level of assurance. The four levels of assurance will be as follows:

Assurance Level Generic Description There are sound risk management, Substantial internal control and governance processes which are designed to achieve the service objectives, with key controls being consistently applied.

Whilst there is basically sound risk management, internal control and Reasonable governance processes, there are some weaknesses which may put service objectives at risk.

Limited There are weaknesses in the risk management, internal control and governance processes; putting service objectives at risk.

No The risk management, internal control and governance processes are generally poor and as such service objectives are at significant risk.

______BCC Internal Audit Strategy 2020-23 Revised November 2020 7 Page 115 Agenda Item 13

Report for Audit Committee

Audit Committee 23rd November 2020

Report of: Chief Internal Auditor

Title: Internal Audit Update Report

Ward: N/A Officer Presenting Report: Simba Muzarurwi, Chief Internal Auditor

Recommendation The Audit Committee notes the Internal Audit Update Report for the period from July to October 2020.

Summary The Committee received a comprehensive activity report from Internal Audit at their meeting on 28 September 2020. This report seeks to provide the Committee with a high level update on internal audit activities since the last meeting.

The significant issues in the report are: - The Covid 19 pandemic has impacted on the overall the delivery of the internal audit service. To enable management to respond effectively to the pandemic, internal audit activities were suspended in Quarter 1 only to resume in July 2020.

- The increasing number of Covid 19 infections in the past weeks has resulted in a second national lockdown. Consequently, the Council continues to face the challenge of responding to the pandemic as well as putting in place recovery measures. The inevitable pressure on operational management and other reasons put the overall delivery of the 2020/21 audit plan at risk. However, mitigating actions are being put in place to ensure that an annual opinion is delivered at the end of the financial year.

- Consistent with our rolling plan approach, the 2020/21 audit plan is currently being reviewed to take into account the continued uncertainty of the pandemic and the ever changing operating environment. This approach will ensure that the planned audit coverage remains reflective of risk and assurance priorities for the remainder of the year.

- The Fraud team continues to support the distribution of government support grants through a programme of pre and post payment fraud checks.

- Satisfactory progress has been made in key development areas such as the implementation of a new audit management software and appointment of a strategic partner.

Page 116 Report for Audit Committee

Policy

1. Audit Committee Terms of Reference.

Consultation

2. Internal - None 3. External - None

Context

4. The role of the Internal Audit function is to provide Members and Management with independent assurance that the control, risk and governance framework in place within the Council is effective and supports the Council in the achievement of its objectives. The work of the Internal Audit team should be targeted towards those areas within the Council that are most at risk of impacting on the Council’s ability to achieve its objectives. In addition, the team provide a Counter Fraud Service to the Council to enhance arrangements for the prevention, detection and investigation of fraud.

5. This report provides an update on internal audit matters. The Committee received a comprehensive activity report at its meeting on 28th September 2020 and this report is intended to provide an update on progress and developments since then. The fraud update is covered by a separate report.

Audit Plan Delivery:

6. As reported in September 2020, Covid 19 has had significant effect on provision of the Internal Audit Service during 2020/21. Audit work was suspended through quarter 1 with only critical and statutory assurance work completed. An early review of the Audit Plan was completed in May 2020 with a view to resumption of audit work on 1st July 2020 and quarterly review of the plan to ensure it remains correctly focussed.

7. At this stage and unlike in previous years, Internal Audit has been working on the approved audit plan for only four months. As at 31st October 2020, 33% of the agreed audit plan has been completed to draft report stage or a grant certification provided. This is against a planned target of around 40% at this stage in the year (adjusted to reflect the proportion of annual leave taken during the summer months). This includes ongoing key advisory work to support the Recovery Oversight and Coordination Board, Information Governance Board and Information Technology Transformation Board (ITTP) as well as supporting policy developments. During the period under review, 11 grants with a value of approximately £9.2m have been audited and certified.

8. At the time of reporting a number of audits were in progress and this work will be finalised and reported in Quarter 3. Additionally, a small number of audits originally planned for Quarter two are yet to be started or have been deferred to later in the year.

9. Like earlier in the year, the second ‘lockdown’ will put increased pressure on service delivery which is likely to extend the time audit work takes to complete as services juggle service delivery priorities with audit commitments. Page 117 Report for Audit Committee

10. Although the implementation of the audit software is a significant development that will improve the team’s effectiveness in the long run, it is taking the team longer to fully acquaint themselves to new ways of working so in some ways audit work is progressing more slowly than usual. Additional training and support is being provided to increase efficiency in the use of the system.

11. The challenges faced in the first half of the year are set to persist in the second half so the following actions are being taken to ensure that an annual opinion for 2020/21 is delivered:

 The process to appoint a strategic partner who will provide both capacity and expertise to support delivery of the audit plan is progressing very well. The expectation is that this will be in place towards the end of Quarter 3.

 A Group Auditor vacancy has been successfully filled and the recruitment of another Auditor is currently underway.

 Assurance mapping will be prioritised in Quarters 3 and 4 to maximise the opportunity of relying on other assurance providers which is critical especially in the current environment.

 The annual audit plan will be reviewed with management and the revised plan will be presented to the Audit Committee in January. This is viewed as appropriate given that the Committee last reviewed the plan in September.

Other Audit Developments:

12. Management Action Tracking: The new internal audit software provides the opportunity to automate procedures for monitoring and reporting implementation of agreed management actions. The relevant module enables responsible managers to update progress against implementation of each action for audit staff to evidence and verify during a re-audit of the area before closing that action. This is progressing well and the Audit Committee will receive a report on this in January 2021.

13. Root Cause Analysis: To support management in strengthening the Council’s governance, risk management and control environment, Internal Audit are advising management in the ‘root cause analysis’ of the factors contributing to limited assurance opinions over the last four years. A report on this will be brought to the Committee by management in a future meeting.

14. It is recognised that the Council is faced with significant risks arising from the pandemic and Brexit. Internal audit will continue to engage with management regularly to ensure that assurance activities align with the Council’s priorities and risks.

Proposal

15. The Audit Committee note the internal audit update.

Other Options Considered Page 118 Report for Audit Committee

16. N/A

Risk Assessment

17. The work of Internal Audit minimises the risk of failures in the Council’s internal control, risk management and governance arrangements, reduces fraud and other losses and increases the potential for prevention and detection of such issues.

Public Sector Equality Duties

18. No equality impact assessment is required for this report. The matters concern internal control, governance and risk management arrangements only.

Legal and Resource Implications

Legal – Not sought Financial – None arising from this report. Land/Property – Not applicable Human Resources – Not applicable

Appendices: N/A

Background Papers: N/A

Page 119 Agenda Item 14

Audit Committee – Counter Fraud Update Report

 Audit Committee 23rd November 2020

Report of: Chief Internal Auditor

Title: Counter Fraud Update Report

Ward: N/A

Officer Presenting Report: Simba Muzarurwi – Chief Internal Auditor

Contact Telephone Number: 011735 21475

Recommendation The Audit Committee note the Counter Fraud Update report for the period of 1st April to October 2020.

The Committee review and re-approve the Anti-Fraud, Bribery and Corruption Policy.

Summary

This Report provides the Committee with summary of the work undertaken by the Internal Audit – Counter Fraud team during April 2020 to October 2020.

Significant Matters Arising: The key messages arising from this report are;

- International Fraud Awareness Week is from 15th to 21st November 2020 provides an opportunity to raise awareness of fraud matters. - The work of the team has been significantly affected by the Covid 19 pandemic and priority has shifted to supporting the distribution of government support grants through a programme of fraud checking and policy / procedure advice. - Work on tackling tenancy fraud has continued with 8 property regains or other positive housing outcomes to date. - The Anti-fraud, bribery and corruption Policy has been reviewed.

Page 120 Audit Committee – Counter Fraud Update Report

1. Policy Audit Committee Terms of Reference

2. Consultation

Internal – Corporate Leadership Board including S151 Officer, Cabinet Member for Governance, Resources and Finance. External – N/A

3. Context

3.1 This is the half yearly update report outlining the counter fraud work that has taken place in Bristol City Council. The report is provided to:

. provide an overview of the work and results of the Counter Fraud and Investigation team during the period 1st April 2020 to 31st October 2020;

. demonstrate how the Council is dealing with some of the fraud risks it is subject to; and

. outline how resources available to the team are being used to tackle fraud.

The full report can be found at Appendix A

3.2 Key points arising from the Fraud Update Report:

. Fraud Awareness Week (week commencing 15/11/2020) has presented an opportunity to raise awareness of fraud risks faced by the Council with Members, management and the public.

. The work of the team has been significantly impacted by the Covid 19 pandemic requiring the team to shift priorities to support the response and distribution of business grants with a programme of fraud checking and policy advice.

. The work of the team continues to contribute benefits across the council including:

- Identifying in excess of £1m to date of avoided costs relating to business grant claims - 8 positive housing outcomes and 2 positive other outcomes from continued work on tenancy fraud

. The Council’s Anti -Fraud, Bribery and Corruption policy has been reviewed for approval by the Audit Committee.

. New whistleblowing arrangements continue to embed with three cases reported in the last three months.

Page 121 Audit Committee – Counter Fraud Update Report

4. Proposal

4.1 The Audit Committee notes the work of the Internal Audit – Counter Fraud and Investigations team during the period of covered by the report and the results there of.

4.2 The Audit Committee review and re-approve the Counter Fraud, Bribery and Corruption Policy and Strategy.

5. Other Options Considered – N/A

6. Risk Assessment

The work of Internal Audit Counter Fraud team reduces fraud losses and increases the potential for prevention and detection of such issues.

Public Sector Equality Duties

7a) Before making a decision, section 149 Equality Act 2010 requires that each decision-maker considers the need to promote equality for persons with the following “protected characteristics”: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation. Each decision-maker must, therefore, have due regard to the need to:

i) Eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Equality Act 2010.

ii) Advance equality of opportunity between persons who share a relevant protected characteristic and those who do not share it. This involves having due regard, in particular, to the need to --

- remove or minimise disadvantage suffered by persons who share a relevant protected characteristic;

- take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of people who do not share it (in relation to disabled people, this includes, in particular, steps to take account of disabled persons' disabilities);

- encourage persons who share a protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.

iii) Foster good relations between persons who share a relevant protected characteristic and those who do not share it. This involves having due regard, in particular, to the need to – - tackle prejudice; and - promote understanding.

7b) No Equality Impact anticipated from this report.

Page 122 Audit Committee – Counter Fraud Update Report

Legal and Resource Implications

Legal – N/A Financial – N/A Land – N/A Personnel – N/A

Appendices:

Appendix A – Internal Audit – Counter Fraud Update Report Appendix A1 – Anti-fraud, Bribery and Corruption Policy

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

Fighting Fraud and Corruption Locally Strategy

Page 123

Appendix A

Counter Fraud & Investigation Team Half Year Report 2020-2021

Simba Muzarurwi Chief Internal Auditor

Page 124

1. Introduction

1.1 The Council’s Counter Fraud and Investigation Team investigates allegations of fraud and irregularity against the council and is committed to upholding the council’s Anti-Fraud, Bribery and Corruption Policy. The Team works across all directorates to identify fraud and to provide a dedicated proactive counter fraud and responsive investigation service. The purpose of this report is to:

• Provide an update on the work and results of the Counter Fraud and Investigation Team during the period 1st April 2020 to 30 September 2020. • Demonstrate how the council is dealing with some of the fraud risks it is subject to. • Outline how resources available to the team have been used to tackle fraud and the emerging priorities going forward. • Provide a summary of the response to fraud risks associated with Covid-19. • Provide an update on the council’s whistleblowing arrangements.

2. Key Messages

2.1 This report is published to the Audit Committee during International Fraud Awareness Week (week commencing 15/11/2020) providing a timely opportunity to raise awareness of fraud risks faced by the council with Members, management and the public.

2.2 Whilst the work originally programmed for the team has been significantly impacted by the coronavirus pandemic, the team has shifted priorities to supporting the response and completed a programme of pre-and post payment fraud checking in respect of government grants distributed to support businesses and individuals. The team has also advised on processes and policies used to administer the grants and is currently working on developing an appropriate response to support effective distribution of new grants in response to the latest lockdown.

2.3 The work of the team continues to contribute tangible benefits across the council including:

• Identifying in excess of £1m to date of recoverable or avoided costs (section 10 refers) this year to date, the majority of which relates to potential fraudulent business grant claims prevented by pre payment testing.

• 8 positive housing outcomes and 2 positive other outcomes from continued work on tenancy fraud

2.4 The team continues to investigate referrals of fraud it receives closing 19 cases during the period.

2.5 The Council’s Anti Fraud and Corruption Policy has been reviewed for approval by the Audit Committee.

2.6 New whistleblowing arrangements continue to embed with three cases reported in the last three months.

3. International Fraud Awareness Week

3.1 This year’s International Fraud Awareness Week runs from 15 November to 21 November and it provides the opportunity to minimise the impact of fraud by raising awareness and education. The Counter Fraud and Investigation team have programmed a series of activities to raise awareness both within and externally to help encourage all to be vigilant to fraud during a time when fraud risk is likely to be increasing. The activities include:

• Reviewing and refreshing of Counter-fraud intranet and internet pages 2 Page 125 • Fraud awareness presentation at the Council Leadership Forum on 17 November • Targeted messages to staff working in high fraud risk areas such as housing and procurement. • Fraud awareness messages in internal communications bulletins to staff across the Council

3.2 As part of awareness raising, the opportunity will also be used to promote the Council’s whistleblowing arrangements.

3.3 The Audit Committee is well placed to support the counter-fraud effort across the Council and this report is designed to highlight some of the key fraud risks being faced by the Council and how they are being tackled.

4. Fraud Risk Area - Covid 19 reliefs and policy changes

4.1 The team have continued to undertake pre-payment checking of Business Grants files. No further payments have been stopped for reasons of fraud or non entitlement since the figure of £1.1m was previously reported to Audit Committee in September 2020.

4.2 Data matching has been used to target post payment checking to determine whether any fraud slipped through the net and whether any recovery action is needed. To date, 28 cases have been identified for further investigation following these checks.

4.3 In addition there are further support schemes in operation. We have provided some advice on the ‘Track and Trace’ isolation payment scheme, but are not proposing to carry out any pre-payment checking work in this area as proportionate control measure are in place to reduce the fraud risk.

4.4 Following announcement of the second national lockdown, the team has been working closely with finance colleagues and local taxation to ensure a robust application process is in place for further grant support. Fraud checking is being planned to support this latest distribution.

5. Fraud Risk Area - Tenancy Fraud

5.1 Tenancy fraud and abuse is a key risk area for the Council. In support of the Council’s strategic objective of reducing homelessness and to help ensure that council housing properties are allocated to and used by those with a genuine need, the team undertakes a significant and important programme of work each year to identify and recover properties lost to tenancy fraud.

5.2 The tenancy fraud work has been significantly impacted by the Covid19 pandemic. During the first quarter all visits, interviews and court proceedings were suspended. Visits have now resumed and matters are now being listed for court, but the investigations remain effected by the pandemic. Additionally, a proactive tower block exercise has been postponed until later in the year.

5.3 The team has an annual performance target of 30 council property regains or other positive housing outcomes. The team have to date achieved 8. A positive housing outcome could be a person removed from the housing register due to a fraudulent application, or a fraudulent right to buy application cancelled. In addition, other positive outcomes can result from tenancy fraud work such as benefit savings or the removal of single persons discount from a council tax account. 2 such outcomes have occurred during this period

3 Page 126 5.4 Facts and Figures:

8 properties 66 Right To regained or 2 other Buy 98 referrals other positive positive applications housing outcomes checked outcome

6. Fraud Risk Area - Benefit Fraud

6.1 The team provides a role to support the Department for Work and Pensions (DWP) in their housing benefit fraud investigation work. The DWP’s fraud team have been mostly redeployed to other duties during the pandemic and so this work has been significantly affected. During the first half of 2020/21 the team has dealt with:

• 21 requests for benefit information and documents responded to • 2 witness statements prepared for criminal proceedings

6.2 The team also investigate Council Tax Reduction (CTR) offences. This work has been affected by the adoption of the DWP’s ‘Trust and Protect’ principles which has meant a reduced level of verification for benefit claims. As the post verification increases then a rise in the number of referrals is expected. Current workload includes;

• 13 current investigation cases • 1 prosecution

7. Fraud Investigation

7.1 A number of investigations have been undertaken following referral to the team - significantly in relation to covid business grant applications. The other types of cases investigated are demonstrated below:

3 allegations 1 6 Social 103 Local 1 procurement 1 2 payment/ 2 Procurement involving Blue badge Taxation card Care employees Insurance assets

7.2 To date, 11 cases have been closed as no evidence of fraud was found. However other outcomes include:

- 3 Referrals to the police - 2 Resignations - 2 Formal Reports issues

7.3 The team provides a liaison role with other agencies and dealt with : • 138 pupil tracking requests • 55 Police/Other enforcement agencies requests .

4 Page 127

8. National Fraud Initiative (NFI) & Data Analytics

National Fraud Initiative

8.1 Our Data Analyst is currently preparing datasets for upload for the 2020/21 NFI data matching initiative. The results will be delivered to us in January 2021.

8.2 For legal reasons, Social Care data can no longer be included in the exercise. Historically, matching this data set with deaths data has achieved positive results in terms of stopping payments and identifying overpayments for recovery. It is understood that the Cabinet Office (who run the NFI exercise) are pursuing a legal gateway to use this data again going forward.

8.3 Further matching of new data sets is also scheduled for later dates and is to include National Non Domestic Rates (NNDR) and Covid Business Grants.

Fraud Data Hub

8.4 The setting up of a fraud hub is progress well with demonstrations of two products having already taken place, including a demonstration to the WECA authorities S151 officers. Next steps include development of a business case.

Other Analytics

8.5 Other analytics work has included creation of searchable and usable deaths list from regular PDF files of deaths.

9. Counter Fraud Strategy & Policy

9.1 The Council’s Anti Fraud and Corruption policy has been reviewed which has included an assessment of arrangements against the Local Government strategy on fraud ‘Fighting Fraud and Corruption Locally’ published in March 2020. The main changes to the policy include:

• An additional responsibility on Local Authority to protect its residents from fraud. • A change in approach to tenancy fraud work, to better target investigative resource to those cases that are most likely to be successful. • An additional responsibility on Directors to ensure Internal Audit are consulted on policy changes and new initiatives where there is a fraud risk. • Confirmation of the fraud portfolio holder. • To introduce regular reviews of conduct compliance. • To reflect changes in the Whistleblowing management responsibility

10. Whistleblowing

10.1 Management of the ‘whistleblowing process’ moved to Internal Audit from 1st April 2020.

10.2 There were no new whistleblowing allegations in the first quarter of the year. Three whistleblowing allegations were received in the second quarter of 2020/2021: These have all been investigated and dealt with appropriately. There are 3 whistleblowing cases carried forward from 2019/20, all of which relate to on-going fraud investigations and are being prioritised.

5 Page 128 10.3 An update on other actions agreed and reported to Audit Committee are updated below.

Action Status 1. Corporate Message on Whistleblowing arrangements Complete 2 Reminder to staff of external mechanisms to whistleblow Complete 3 Induction training and regular counter fraud e- learning to improve Complete awareness and enhance confidence in the process 4 Quarterly report on number of whistleblowing cases Complete 5. Use Incase (case management system) to track cases and to provide timely Complete feedback to whistleblowers 6. 2019 All Party Parliamentary Report on Whistleblowing to be considered in Complete full. 7. Creation and publicity for hotline Complete 8. Investigated by appropriate individual On-going 9. Arrange for annual independent review. Due 30/12/20*

*This is now being arranged for February/ March 2020 to enable the review to consider how well arrangements have embedded throughout the year.

11. Benefits of Counter Fraud Activity

11.1 Counter-fraud activity can result in financial benefits being identified for the Council. The following table details the areas where this has occurred this year to date from across the Council:

Fraud Area Recoverable £ Notional £ Weekly Cost Other Cost (note i, ii) Avoidance £ Avoidance £ Tenancy Fraud £26 £465,000 £97 - Right to Buy - £82,800 - - NFI £13,484 £93,000 £223 - Housing Benefits £15,179 - £560 - Council tax Reduction £13,973 - £95 - Covid Business Grants - - £3 £1,100,000** Insurance Fraud - - - £139,800* Total £42,662 £640,800 £978 £1,239,800

Figures used for notional savings are: (i) Council property recovered = £93,000 ( figure recommended by Cabinet Office) (ii) Discount that would have been awarded re Right to Buy application cancelled

* This fraud was prevented due to the diligence of Insurance team.

** Joint working of Counter fraud team and Local Taxation

12. Resources

12.1 The counter fraud and investigations team has adequate resource. A Data Analyst was recently appointed to increase our capability to develop the use of data analytics across Internal Audit and to assist with the development of the fraud hub. An Intelligence Officer has been appointed to take a key role in the administration of the whistleblowing process.

12.2 During the first quarter two members of the Counter Fraud and Investigation Team were redeployed to the Corporate Communications Team to assist with the Council’s response to the pandemic. 6 Page 129

13. Q3/4 Priorities

13.1 Whilst a level of uncertainty brought by the Covid 19 pandemic remains, the teams aims for the second half of 2020/21 are currently to:

• Continue pre and post payment checks for the Covid 19 business grants and respond to new grant schemes to provide advice and pre-payment checks as appropriate. • Promote whistleblowing and fraud awareness during International Fraud Awareness Week. • Prioritise investigation of fraud referral to ensure these are dealt with in a timely way. • Continue work to develop and implement a regional fraud hub. • Maximise positive outcomes from the NFI. The output is due February 2021. • The team will continue with a programme of fraud training. This will include regular review of e learning and web based guidance to employees across the Council as well as targeted sessions for employees working in high risk fraud areas. • Internal Audit will continue to work with management in key fraud risk areas to review control processes in these areas.

7 Page 130 Appendix A(i)

BRISTOL CITY COUNCIL

FRAUD, BRIBERY AND CORRUPTION POLICY & STRATEGY

Page 131

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TABLE OF CONTENTS PAGE Statement on fraud by Corporate Leadership Board 3

1. Purpose 4

2. Key principles 5

3. Relevant legislation 6

4. Reporting fraud 7

5. Investigation of fraud 8

6. Action taken when fraud is established 8

7. Data matching and data sharing 9

8. Responsibilities under this policy 9

9. Owner of policy and history of amendments 12

Page 132

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 2 of 12 Statement on Fraud by the Corporate Leadership Board

Bristol City Council – Corporate Leadership Board are committed to implementing and maintaining the highest standard of corporate and financial governance and ethical behaviour. We recognise that fraud against the council harms the citizens and taxpayers of Bristol and for that reason, fraud, bribery and corruption against the council will not be tolerated and all such occurrences will be investigated. We will undertake to consider the circumstances of each case of fraud we investigate to ensure we seek a fair and balanced outcome.

We fully support the investigation of allegations of fraud, the continued development of a robust anti-fraud culture and framework within the Council and a strong stance being taken where fraud is found.

The diverse nature of services provided by a council mean that there are many areas where we could be a target for fraud. We will ensure we understand the main fraud risks we face and set out how we protect against them in our fraud risk registers.

We the leadership team, with your support, will strive to ensure that we have robust processes in place to prevent fraud in the first instance and, that we do not forget the risk of fraud in our drive to improve efficiency in our services.

Page 133

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 3 of 12 1. Purpose

1.1 The purpose of this Policy is to set out clearly:

• The Council's commitment to tackling fraud, bribery, and corruption. • The responsibilities of Members and employees to report any suspicions they have. • The importance of the public in tackling fraud.

1.2 This policy applies to: • Members • Employees • Agency staff • Contractors • Consultants • Suppliers • Service users • Employees and committee members of organisations funded by Bristol City Council • Employees and principals of partner organisations • Volunteers working for Bristol City Council

1.3 In addition to the above Bristol City Council expects members of the public to be honest in their dealings with the Council.

1.4 Other relevant policies include: • Fraud notification form and investigation guidance • Anti-Money Laundering Policy and Guidance • Whistleblowing Procedure • Regulation of Investigatory Powers Act Policy and Procedures • Members’ Code of Conduct • Employees Code of Conduct • Financial Regulations • Procurement Regulations • Bristol City Council Enforcement Policy

1.5 The Accounts and Audit Regulations (England) 2011 require the Council to have appropriate control measures in place to enable the prevention and detection of inaccuracies and fraud.

1.6 The Council has reviewed its arrangements in line with the Fighting Fraud and Corruption Locally Strategy (2020) – the Local Government blue print for tackling fraud in Local Government. The strategy outlines its 5 pillars for effective fraud management, as outlined in the diagram at 1.7.

1.7 Page 134

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1.8 Detailed roles and responsibilities in relation to fraud are set out in Section 8.

1.9 The arrangements set out in this policy will be reviewed annually to ensure the Council remains resilient to the fraud threat.

2. Key Principles

2.1 The Council will not tolerate fraud, bribery or corruption and if proven employees will face possible dismissal and/or prosecution.

2.2 The Council expects that Members and officers at all levels will lead by example to ensure high standards of propriety, integrity and accountability and operate within relevant Codes of conduct.

2.3 The Council will endeavor to raise fraud awareness among employees both at induction and periodically throughout their employment.

2.4 The Council expects Members and Senior Officers to emphasise the importance of anti-fraud work and to actively promote and support the fight against fraud.

2.5 The Council expects individuals and organisations with whom it comes into contact with to act with integrity towards the Council.

2.6 The Council understands the fraud risks it faces and will implement policies and procedures to identify and prevent fraud, bribery and corruption, but will also take all action necessary to investigate and identify it.

2.7 The Council will take appropriate action against those responsible for fraud and where possible recover losses incurred.

2.8 Members of the public are asked to contribute to the Council's fight against fraud by remaining vigilant to the potential for fraud and reporting it Pagewhere they135 suspect the Council is being targeted.

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 5 of 12 Employees and Members have a duty to do so, and concerns should be raised when it is reasonably believed that one or more of the following has occurred, is occurring or is likely to occur:

• A criminal offence. • A failure to comply with a statutory or legal obligation. • Improper or unauthorised use of public or other official funds, or assets.

2.9. The investigation of fraud will be fair, independent and objective. Officers will be mindful of the Equality Act 2010 and will not let their political or personal views regarding suspects, victims or witnesses unduly influence their decisions. Officers will not be affected by improper or undue pressure from any source.

2.10 Bristol City Council will endeavour not to facilitate fraud against other bodies including tax evasion. If through its operation or investigation work, it identifies possible fraud against another organisation, it will report this to the ‘appropriate body’.

2.11 Work with service areas to help raise awareness of fraud risk and scams that affect the public relative to the service area (ie false Council Tax refund emails).

3. Relevant legislation

3.1 The Fraud Act 2006 created an offence of fraud and identified three main ways by which it can be committed • Fraud by false representation. • Fraud by failing to disclose information • Fraud by abuse of position.

3.2 The Act also created four related criminal offences of: • Possession of articles for use in frauds. • Making or supplying articles for use in frauds. • Participating in fraudulent business. • Obtaining services dishonestly.

3.3 The Theft Act 1968 and the Forgery and Counterfeiting Act 1981 define offences of: • Theft • False Accounting • Forgery

3.4 The Bribery Act 2010 contains two general offences: • Section 1 - the offering, promising or giving of a bribe (active bribery);

• Section 2 - and the requesting, agreeing to receive or accepting of a bribe (passive bribery)

It also sets out two further offences which specifically address commercial bribery:

• Section 6 - creates an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business;

• Section 7 - creates a new form of corporate liability for failing to prevent bribery on behalf of a commercial organisation. Page 136

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 6 of 12 3.5 In certain circumstances The Prevention of Social Housing Fraud Act 2013 makes the sub- letting of a ‘Local Authority’ or other ‘Registered Social Landlord’ property without the consent of the landlord, a criminal offence.

3.6 The Council Tax Reduction Schemes (Detection of Fraud and Enforcement )(England) Regulations 2013 gives Local Authorities the power to investigate Council Tax reduction fraud.

3.7 The Criminal Finance Act 2017 created a criminal offence of failing to put adequate measures in place to prevent tax evasion in the United Kingdom or overseas.

3.8 The Proceeds of Crime Act 2002 made it a criminal offence to fail to disclose knowledge of or suspicion of money laundering

4. Reporting Fraud

4.1 The ultimate aim is to prevent fraud at the outset; however, despite our best attempts determined fraudsters may succeed.

4.2 If fraud, bribery or corruption is suspected, it should be reported without delay to a line manager or other senior officer, or to Internal Audit.

4.3 Information can be reported via the fraud hotline, or using the council’s fraud referral form on the web site. This can be done anonymously if required.

4.4 Employees and contractors can report fraud through the Whistleblowing process

4.5 Allegations re schools should be reported initially to the Chair of Governors of the school or, if this is not appropriate, the Director of Education and Skills.

4.6 The investigation process will follow the procedure set out in Internal Audit's Investigation Protocol.

4.7 Useful contact information for reporting fraud: Contact Email/web address Telephone number

[email protected] Tel: 011735 21475 Chief Internal Auditor

[email protected] Deputy Chief Internal Auditor 0117 9222448

[email protected] Audit Managers – Counter Fraud and 0117 3526997 [email protected] Investigations 0117 9222466

Monitoring Officer (Director Legal and 0117 90 37765 [email protected] Democratic Services) Fraud Referrals – External Web form or 24 0117 9222470 hour public fraud Hotline. (Callers leaving Reporting Fraud Form their contact details can assist investigations but allegations can also be made anonymously). Whistleblowing reporting – web referral 0117 3521882 form and 24 hour hotline(for internal Whistleblowing form employees and contractors to report any concerns including suspected fraud) Page 137

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 7 of 12 Protect (formerly Public Concern at Work) 020 74046609 which is an external body which may be able to give free and independent advice on how to proceed.

4.7. All allegations will be taken seriously and where there is evidence which supports the allegation, this will be fully investigated. Police will be involved where appropriate.

4.8 Updates on progress will be provided to Managers where investigations have been commissioned internally. Updates cannot generally be provided to the public for reasons of confidentiality and updates to internal Whistle-blowers will be limited in detail.

5. Investigation of Fraud

5.1 The investigation of fraud, bribery and corruption is a complex and specialist area and will usually be undertaken by staff in Internal Audit or, for less complicated cases, managers, under advice from Internal Audit.

5.2 To facilitate audit work and investigations, Internal Audit staff are accorded rights, by the Accounts and Audit Regulations (England) 2015, to access all necessary documents, records, information and explanations from any member of staff. These access rights are confirmed in Financial Regulations.

5.3 The investigation process is set out in the Investigations Protocol also available on the council’s web pages.

5.4 The Investigation Protocol is designed to ensure that Internal Audit: • Applies a consistent approach. • Assigns appropriately experienced staff to investigate fraud depending on the type and nature of the fraud. • Maintains records of all fraud experienced to inform an assessment of the Council's fraud risks.

6. Actions Taken When Fraud is identified

6.1 Disciplinary, civil and criminal sanctions will be used, where appropriate, in order to deter future fraud and to recover losses.

6.2 Fraud, bribery, corruption, theft and the failure to disclose knowledge or suspicion of money laundering by Members or staff will be regarded as gross misconduct. Disciplinary action will be taken against staff, and Members' misconduct will be dealt with by an independent person and the Values and Ethics Sub Committee.

6.3 One option available to the Council is criminal prosecution. The decision to refer cases for prosecution will not be taken lightly and may involve Audit Management, Legal Services, and Directorate Management.

6.4 The ultimate decision on prosecution will be taken by the prosecuting body which in most cases will be the Council or the Crown Prosecution Service.Page A Financial 138 Investigator and/or the Police will be

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6.5 In determining whether to prosecute each case will be considered on its own facts and merits.

6.6 Where necessary, the Council will work in co-operation with other organisations such as the Police, the Department for Work and Pensions, the Home Office, the Cabinet Office, Her Majesty’s Revenue and Customs and other Local Authorities.

6.7 When considering a case for prosecution it is generally accepted that there are two “tests” to be applied – the evidential test and the public interest test. These are set out in The Code for Crown Prosecutors. • Evidential Stage Test - Prosecutors must be satisfied that there is sufficient evidence to provide a realistic prospect of conviction against each suspect on each charge. A case will not go forward for prosecution if it fails this test. • Public Interest Test - A prosecution will usually take place unless the prosecutor is sure that there are public interest factors tending against prosecution which outweigh those tending in favour, or is satisfied that the public interest may be properly served by offering the offender the opportunity to have the matter dealt with by an out-of-court disposal.

6.8 All avenues for recovering losses will be considered, including confiscation under the proceeds of crime act, civil claims, recovery from accrued pensions and appropriate insurance claims.

6.9 Publicity will be used as a deterrent and wider circulation of investigative reports and lessons learned will be an on-going consideration. Public statements and press releases must be made through the Council's Marketing and Communications Team.

6.10 Conclusion of an investigation will in some instances result in recommendations to improve control and prevent future fraud.

7. Data-matching, analysis, data-sharing and technology

7.1 The Council will use information provided by Members, employees, service users and suppliers in the prevention and detection of fraud. Data matching and analysis exercises are undertaken, both internally, regionally and nationally to facilitate the investigation of fraud.

7.2 The Council will use technology to prevent and identify fraud and will continually explore improvements.

7.2 All uses of data will adhere to Data Protection legislation, and have regard to privacy, confidentiality and security.

8. Responsibilities under this policy

Group/ Individual Responsibilities

• A duty to the citizens of Bristol to protect the Council and public money from any acts of fraud and corruption. • Compliance with the Code of Conduct for Members, the Council’s 1. Mayor & Members Constitution, including Financial Regulations and Procurement Regulations, in particular the requirements regarding interests, gifts, and hospitality. • Avoid situationsPage where 139 there is a potential for a conflict of interest.

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 9 of 12 • Report fraud, bribery or corruption where it is reasonably suspected that the Council is being targeted.

• Provide assurance on the anti-fraud arrangements to Council and sign off the Annual Governance Statement regarding fraud issues 2. Audit Committee specifically. • Approval of the Anti-Fraud, Bribery and Corruption Strategy and Policy. • Monitor performance against the policy and strategy.

• Support the maintenance of a strong culture where fraud, bribery and corruption are unacceptable. • Notify the ‘Head of Internal Audit’ immediately of any fraud or irregularity. • Responsibility for managing fraud risk in their service areas and 3. Directors ensuring adequate internal control. • Consult Internal Audit to ‘fraud-proof’ new initiatives and new/changes in policy and strategy. • Manage conduct compliance including register of interests and gifts and hospitality, re employees and providing assurance on these to Audit Committee annually.

• Ensure that effective procedures are in place for the prompt investigation of any fraud or irregularity, • Ensure awareness of fraud risks is maintained through training, 4. Finance Director: publicity, fraud risk registers and fraud prevention work. • Ensure that arrangements are in place to actively pursue fraud. • Ensuring sound financial management and proper administration of the authority’s financial affairs.

• Ensure that they, and their staff, understand the fraud risks faced in delivering services by maintenance of a fraud risk assessment. • Implement and maintain an effective control environment to prevent fraud, commensurate with the level of risk identified. • Communicate the requirements of this and related policies (refer 5. Managers including to paragraph 1.2 of the Policy) in their work area. Head Teachers, senior • Create an environment in which staff feel able to report concerns staff and School of suspected fraud. Governors • Advise Internal Audit of any suspected cases of fraud and carry out or assist in the investigation of it as required. Advise Internal Audit of the outcome of any cases investigated. • Consider the risk of fraud in all system processes and changes in process.

• Be aware of the possibility that fraud, bribery, corruption and theft may exist in the workplace and report it where they reasonably suspect the Council is being targeted. 6. All Employees • Avoid situations where there is a potential for a conflict of interest irrespective of status

• Comply with the Council's policies and codes as detailed in paragraph 1.2 of the Policy.

• The Chief Internal Auditor is the portfolio holder for the 7. Chief Internal Auditor/ management of fraud risk strategic oversight by s151 Officer and Internal Audit the CabinetPage Member 140 – Finance and Resources

Last modified: 12/11/2020 15:31 Fraud Policy V 1.6 Final 2020Fraud Policy V 1.6 Final 2020 Page 10 of 12 • Report periodically to Management and Audit Committee on the robustness of the Council’s arrangements and emerging fraud risks. • Maintain an overall fraud risk assessment on behalf of the Council and review the effectiveness of the Council's response to the risks faced including any new emerging fraud risks. • Undertake an annual programme of audits and report on the effectiveness of the Council’s control and governance systems and processes including the effectiveness of management of fraud risks. • Undertake an annual programme of pro-active fraud work designed to prevent and detect fraud, including awareness training. • Ensure cases of suspected irregularity, fraud or corruption are effectively investigated and punished by appropriate sanctions in liaison with the Police, Legal Services and HR. (Exception: housing benefit fraud which is the responsibility of the DWP). • Instigate recovery action wherever possible to recoup the losses on behalf of the Council. • Maintain a 24-hour Fraud Hotline (0117 9222470) and web referral service. • Manage the Councils employee ‘Whistleblowing procedure’ including co-ordinating responses to referrals. • Advise management on procedural improvements required to prevent occurrence or recurrence of fraud. • Develop and encourage the exchange of information on national and local fraud and corruption activity in relation to local authorities with external agencies. • Maintain effective records of fraud activity to enable greater understanding of fraud risk. • Undertake periodic reviews of conduct compliance including register of interests and gifts and hospitality of both employees and Members. • Support and advise Service Managers in protecting the public against known scams in their service areas.

• Provide timely advice and guidance on Council Policies and procedures during investigations and any disciplinary action • Ensure recruitment procedures to be applied by Managers are

effective in the verification and validation of information submitted 8. Human Resources by applicants prior to appointment. Eg eligibility to work, verification of qualifications and employment history, Disclosure and Barring Service checks where appropriate.

• Advise Members of new legislative or procedural requirements regarding conduct and ethical matters. • Manage Member conduct and compliance including maintaining a register of Members interests, gifts and hospitality declared, and 9. Director: Legal and reporting annually to the Audit Committee. Democratic Services (& • Take criminal and civil actions to ensure appropriate sanctions are Monitoring Officer) applied. • Provide advice on potential criminal cases. • Manage and advise on compliance with the Regulations and Investigatory Powers Act. Page 141

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9. Owner and History of Amendments

Author and Owner: Internal Audit

Contact: [email protected]

The audience of this document is made aware that a physical copy may not be the latest available version. The latest version which supersedes all previous versions is available from the Council’s Intranet (The Source) and Council Web pages.

All Managers and anyone working in an area of high fraud risk are responsible for ensuring they are familiar and complying with the contents of this policy.

History of most recent policy changes Version 1.6 issued November 2020

‘Councillors’ changed to ‘Members’ throughout document 1.4 Whistleblowing ’policy’ amended to ‘procedure’ 1.6 Reference made to 2020 Fighting Fraud and Corruption Locally Strategy and the 5 pillars of activity.

2.11 New responsibility to protect the public from fraud. 4.3 Contractors added as able to use Whistleblowing process. 4.6 Chief Internal Auditor and Whistleblowing referral information added to contact information.

8.3 New responsibilities added to directors 8.8 New responsibilities added to Internal Audit. Removal of Appendix 1 which repeats information at 1.4

Version 1.5 issued November 2019

Version 1.4 issued January 2016

Version 1.3 issued January 2015

Version 1.2 issued January 2014

Version 1.0 issued & adopted January 2012

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Report for Audit Committee

Audit Committee 23rd November 2020

Report of: Chair of Audit Committee

Title: Audit Committees Half Yearly Report to Full Council - Draft

Ward: N/A

Officer Presenting Report: Simba Muzarurwi, Chief Internal Auditor

Recommendation

The Committee consider and approve their half yearly report to Full Council.

Committee members review the output and improvement actions from the Audit Committee Effectiveness workshop for completeness.

Committee members consider training and development needs of the Committee going forward.

Summary

The report provides a summary of key matters arising from the work of the Audit Committee this year to date which should be highlighted to Full Council. Key outcomes from a workshop held with Committee members to review the Committee’s effectiveness are also provided.

The significant issues in the report are:

- Key areas to highlight to Full Council from the work of the Committee – Section 2 of the attached report.

- Results of and improvement actions resulting from the recent Audit Committee Effectiveness workshop (Paragraphs 5 and 6 of this report)

Page 143 Report for Audit Committee

Policy

1. Audit Committee Terms of Reference.

Consultation

2. Internal Audit Committee Members 3. External None

Context

Audit Committee Half Year Report to Full Council:

4. In line with the requirements of their Terms of Reference, the Audit Committee provides both an Annual Report and half year report to Full Council. The purpose of these reports is to highlight to Full Council key issues arising from the Committee’s work in relation to the control, risk and governance arrangements at the Council. A half year report to Full Council has been drafted on behalf of the Committee and is attached at Appendix 1.

Audit Committee Effectiveness Review:

5. An appropriately skilled and effective Audit Committee is key to ensuring the Council has a robust control and risk environment and annually the Audit Committee review its own effectiveness. This review was completed at a workshop of committee members held on 22nd October 2020.

6. To support discussion at the workshop, committee members were requested to self-assess arrangements against CIPFA (Chartered Institute of Public Finance and Accountancy) best practice for effective audit committees. Three key areas for improvement were identified by members of the Committee to enhance its effectiveness going forward. The table below provides details of the suggested improvements that the Committee identified and need to consider to improve arrangements going forward:

Area for Improvement Improvement Actions Building Trust in information  Clarity to be given on how committee members can raise provided by officers and in the concerns for discussion at Committee. political and governance  Regular private meetings of the Committee Chair and the arrangements of the Council. Chief Internal Auditor to take place.  Training for committee members in Council and group company governance and assurance frameworks Access to Information to  Introduce agenda conference meetings before each enable the Committee to fulfil committee to confirm agenda and agree the information its terms of reference. requirements of the Committee.  Members to use the quarterly review of audit plan to ensure it meets their assurance needs.  Training for Committee members to ensure their role and sources of assurance are understood. Page 144 Report for Audit Committee

Area for Improvement Improvement Actions  Escalation procedure to Monitoring Officer if requested information is not provided. Working with Partner Audit  Identify key partners and assurances provided Committees. Understanding  Training for Committee members to understand roles of key partner organisations and assurance providers in terms of partner organisations identifying if assurances can  Develop regular engagement with Bristol Holding Audit and be shared. Risk Committee.

In addition to the above actions, the Vice Chair of the Audit Committee has requested that the Committee discuss and consider further checks and balances as fitting for a democratic Mayoral Local Authority noting that Bristol’s was created under its own unique statute.

7. As part of the improvement agenda for 2021/22, Committee members may wish to consider the need to establish a programme of support that involves induction training, regular briefings and updates to ensure future committees’ knowledge is relevant and up to date. Some suggestions are included below for consideration and comment by the Committee.

Core Training Induction: - Committee’s role - Bristol City Council Governance and Assurance arrangements - Source of assurance and information requirements Governance including Partnership Governance and Assurance Risk Management Financial Reporting and Statement of Accounts Any new technical accounting changes during the accounting period Other Training Audit Law and the role of internal and external audit Treasury Management Regulation and Compliance Value for Money Key accounting policies and any principles and practices unique to the Council and group of companies

Proposal

8. Committee Members review the draft half year report to Full Council to ensure it reflects the issues they feel should be brought to Full Council attention at this time. The Committee approve the report for submission subject to any amendments required.

9. Committee Members review the improvement actions recorded following the Audit Committee effectiveness workshop for completeness.

10. Committee Members consider training and development needs of the Committee going forward.

Other Options Considered

11. None Page 145 Report for Audit Committee

Risk Assessment

12. The assurances provided by an effective Audit Committee to Full Council are a key part of the Council’s governance framework. This report highlights potential areas where assurances require further monitoring by Audit Committee and improvement actions that will enhance the effectiveness of the Audit Committee.

Public Sector Equality Duties

8a) Before making a decision, section 149 Equality Act 2010 requires that each decision-maker considers the need to promote equality for persons with the following “protected characteristics”: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation. Each decision-maker must, therefore, have due regard to the need to:

i) Eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Equality Act 2010.

ii) Advance equality of opportunity between persons who share a relevant protected characteristic and those who do not share it. This involves having due regard, in particular, to the need to --

- remove or minimise disadvantage suffered by persons who share a relevant protected characteristic;

- encourage persons who share a protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.

8b) No equality impact anticipated from this report

Legal and Resource Implications

Legal N/A

Financial (a) Revenue – N/A Page 146 Report for Audit Committee

(b) Capital – N/A

Land/Property N/A

Human Resources N/A

Appendices:

Appendix A – Draft Audit Committee Half Year Report to Full Council.

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers:

Audit Committee Papers. CIPFA – Audit Committees Practical Guidance.

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BRISTOL CITY COUNCIL

AUDIT COMMITTEE

Half Year Update 2020-21

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1. Introduction and Context:

1.1 The purpose of the Committee is to provide independent assurance on the adequacy of the risk management framework, internal control environment and the integrity of the financial reporting and annual governance processes. It is the primary means by which Full Council obtains assurance that governance, risk management and control systems are in place and effective. The Audit Committee’s responsibilities are additional and supportive to those of the Section 151 Officer.

1.2 This report provides details of the Committees work this year to date and highlights to Full Council key issues that require monitoring by or support from the Committee to engender improvements to the internal control, governance and risk management arrangements across the Council.

1.3 In addition, the Committee has reviewed its own operation and identified some measures that will enhance its own effectiveness going forward.

2. Key Issues

2.1 Details of the reports considered to date by the Committee are provided in Appendix 1. Key messages for Full Council from this work are:

Covid 19. The Covid 19 pandemic has impacted all areas of the Council with Internal Audit suspending its activities during the first quarter of the year to enable frontline services to focus on responding to the pandemic. Internal audit resources instead focused on key year end activities to support the organisation and critical assurance provision.

Embedded assurance regarding the Council’s response to the pandemic resulted in reasonable assurance that the Council had and continues to respond effectively to Covid 19.

A programme of pre-payment fraud testing of government business support grants by internal audit has provided a level of protection from fraudulent applications whilst balancing that with the expedience with which grant support could be distributed to support businesses.

A quarterly approach to audit planning is now being overseen by the Committee to ensure Internal Audit effort is focussed on areas of highest risk taking into account the current fast changing environment. Control The Committee continues to monitor and support work undertaken by Environment Internal Audit to enhance the Council’s control environment. As such during its meetings, the Committee receives summaries of all audits with a ‘no’ or ‘limited’ assurance opinion with relevant Senior Responsible Officers attending to provide updates and answer any questions as appropriate. Significant The Committee contributed to the review of the 2019/20 Annual Governance Governance Statement to ensure it was reflective of the Council’s Issues governance, risk management and internal control arrangements and identifies actions to improve where appropriate. The significant governance issues identified and included in the Statement are:

 Covid 19 in terms of the significant long term impact on delivery of the Council’s objectives and challenges presented including the

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financial sustainability of the Council.  Special Educational Needs and Disabilities (SEND) Practice and Procedure  Bristol Energy Sale  Equality, Diversity and Inclusion

Whistleblowing The Committee will continue to monitor improvements to whistleblowing Procedures. arrangements that should enhance their effectiveness going forward. Risk The Committee continues to monitor the development and maturity of the Management Council’s risk management arrangements Statement of The Committee has approved the 2018/19 Statement of Accounts and Accounts has also reviewed draft statements in respect of 2019/20.

3. Audit Committee Effectiveness and Development

3.1 An appropriately skilled and effective Audit Committee is key to ensuring the council has a robust control and risk environment. Annually the Audit Committee review its own effectiveness and a recent exercise in October 2020 has resulted in identification of three key areas for improvement to enhance the Committee’s effectiveness going forward:

 Building Trust in information provided by officers and in the political and governance arrangements of the Council.

 Accessing relevant information to enable the Committee to effectively fulfil its terms of reference.

 Working with partner audit committees to understand key partner organisations and identify where assurances can be shared.

3.2 Improvement actions to support the Committee in enhancing its effectiveness are being developed by the Committee to support it in improving its effectiveness going forward.

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Appendix 1 :

Reports Considered by Audit Committee During 2020/21 to date:

Audit Committee Meeting Date Papers Considered 28th May 2020  2018/19 Annual Governance Statement Actions – Update  2018/19 Statement of Accounts  2018/19 External Audit ISA 260 Report  2020/21 Internal Audit Annual Plan Review  Bristol Energy Company – Statement of Accounts 29th June 2020  Bristol Energy Governance and Accountability  2018/19 Statement of Accounts 30th July 2020  Quarter 4 – Corporate Risk Report  2019/20 Internal Audit Annual Report  2019/20 Annual Fraud Report  2019/20 Audit Committee Annual Report to Full Council  2019/20 Draft Annual Governance Statement  2019/20 Draft Statement of Accounts  2019/20 External Audit Action Plan  2019/20 External Audit Progress Report  Bristol Holding Company Audit and Risk Committee Assurance  Procurement Rules Update 27th August 2020  2019/20 Draft Annual Governance Statement  2019/20 Draft Statement of Accounts 28th September 2020  External Audit Update Report  2019/20 Treasury Management Annual Report  SIRO Assurance Report  Quarter 1 – Corporate Risk Report  Risk Management Annual Report and Improvement Plan  Internal Audit Activity Report 1 Values and Ethics (Sub) Committee 28th September 2020  Regulation of Investigatory Powers Act (2000)

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Audit Committee 23rd November 2020

Report of: Service Director: Finance

Title: Treasury Management Mid-Year Report 2020/21

Ward: City Wide

Officer Presenting Report: Michael Pilcher, Chief Accountant

Contact Telephone Number: 0117 903 6287

Recommendation That the Mid-Year Treasury Management report for 2020/21 is noted.

Summary This report meets the treasury management regulatory requirement that the Council receive a Mid-Year Treasury review report. It also incorporates the needs of the Prudential Code to ensure adequate monitoring of the capital expenditure plans.

The significant issues in the report are: There are no policy changes to the TMSS; the details in this report update the position in the light of the updated economic position and budgetary changes. The authority has a net borrowing requirement of £215m over the next five years and is planning on borrowing £10m this year to support the delivery of the capital programme and maintain adequate liquidity. No borrowing has been undertaken to the 30th September 2020, while £10m of maturing debt was repaid in April 2020.

PWLB Borrowing - It is possible that the PWLB borrowing rate for general fund schemes will be subject to revision downwards after the conclusion of the PWLB consultation, the timing of such a change is currently unknown, although it would be likely to be within the current financial year.

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Policy 1. There are no policy implications as a direct result of this report.

Consultation 2. Internal Strategic & Service Directors. 3. External The Council's Treasury Management advisers

Purpose / Context of the report: 4. This report meets the treasury management regulatory requirement that the Council receive a mid-year treasury review report. It also incorporates the needs of the Prudential Code to ensure adequate monitoring of the capital expenditure plans and the Council’s prudential indicators (PIs). 5. That the mid-year report is structured to highlight:  The economic outlook;  The actual and proposed treasury management activity (borrowing and investment);  The key changes to the Council’s capital activity (the prudential indicators {PIs}).

Background 6. Treasury management is defined as: “The management of the local authority’s borrowing, investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.” 7. The Council operates a balanced budget, which broadly means cash raised during the year will meet its cash expenditure. Treasury management operations aim to ensure that cash flow is adequately planned, with surplus monies being invested in low risk counterparties, providing adequate liquidity initially before considering optimising investment return. 8. The second main function of the treasury management service is the funding of the Council’s capital plans. These capital plans provide a guide to the borrowing need of the Council, essentially the longer term cash flow planning to ensure the Council can meet its capital spending operations. The management of longer term cash may involve arranging long or short term loans, or using longer term cash flow surpluses, and on occasion any debt previously drawn may be restructured to meet Council risk or cost objectives.

Introduction 9. The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (revised in 2017) has been adopted by this Council. The primary requirements of the Code are:  Creation and maintenance of a Treasury Management Policy Statement which sets out the policies and objectives of the Council’s treasury management activities;  Creation and maintenance of Treasury Management Practices which set out the manner in which the Council will seek to achieve those policies and objectives;

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 Receipt by the Full Council of an annual Treasury Management Strategy Statement - including the Annual Investment Strategy and Minimum Revenue Provision Policy - for the year ahead, a Mid-year Review Report and an Annual Report (stewardship report) covering activities during the previous year;  Delegation by the Council of responsibilities for implementing and monitoring treasury management policies and practices and for the execution and administration of treasury management decisions;  Delegation by the Council of the role of scrutiny of treasury management strategy and policies to a specific named body. For this Council the delegated bodies are Overview and Scrutiny Management Board and Audit Committee. 10. This mid-year report has been prepared in compliance with CIPFA’s Code of Practice on Treasury Management, and covers the following:

 An economic update for the 2020/21 financial year to 30 September 2020;  A review of the Treasury Management Strategy Statement and Annual Investment Strategy;  A review of the Council’s investment portfolio for 2020/21;  A review of the Council’s borrowing strategy for 2020/21;  A review of any debt rescheduling undertaken or planned during 2020/21;  The Council’s capital expenditure and prudential indicators;  A review of compliance with Treasury and Prudential Limits for 2020/21.

Key Changes to the Treasury and Capital Strategies 11. There are no policy changes to the TMSS; the details in this report update the position in the light of the updated economic position and budgetary changes. 12. The 2020–2025 Treasury Strategy (approved 25th February 2020) identified a medium term net borrowing requirement of £215m to support the existing and future Capital Programme with the debt servicing costs met from revenue savings from capital investment and the economic development fund. The Council’s agreed policy is to defer borrowing while it has significant levels of treasury cash balances (£158m at September 2020, £40m estimated for March 2021). 13. However the Council will undertake long term borrowing when rates are deemed advantageous to reduce the Council’s exposure to interest rate risk. No borrowing has been undertaken during the year. It is estimated a borrowing need of £10m during the remainder of the year to support the delivery of the capital programme and to maintain liquidity. Further borrowing could be taken if: • short term investments fall at a higher pace than expected increasing the liquidity risk of the authority and or; • there is another significant change in markets and long term borrowing is deemed advantageous the authority will borrow over periods determined as the most appropriate to reduce the authorities exposure to interest rate risk.

14. As planned the Council repaid £10m of PWLB maturing debt (4.875%) on the 20th April 2020.

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Analysis of Debt and Investments 15. A summary of the of the Council’s debt and Investment position as at 30th September 2020 (including forecast at 31st March 2021) compared with 31st March 2020 is shown in the table below:

Debt & Investments 31st March 2020 31st September 31st March 2021 2020 Actual Actual Forecast £m Rate%*b £m Rate%*b £m Rate%*b Long Term Debt – PWLB Fixed 341 4.74 331 4.63 331 4.63 Long Term Debt – Market 70 4.09 70 4.09 70 4.09 LOBO*a Long Term Debt – Market 50 4.04 50 4.04 50 4.04 Fixed Estimated “New” Short Term - - - - 10 0.50 Borrowing Total Debt 461 4.56 451 4.48 461 4.38 Investment 149 0.85 158 0.51 40 0.35 Net Borrowing Position 312 - 293 421 *a Lender option Borrower option, *b reflects the average rate for the year taking account of new loans and repayments. We are currently achieving a return of 0.51% on our investments for the period to 30 September 2020. The return for the year is expected to be significantly lower, circa 0.35% due to the base rate remaining at 0.10% following the interest cut on the 19th March 2020 along with high levels of liquidity in the financial markets depressing rates at a time when the Councils higher coupon short term fixed term deposits are maturing. Bank rate is expected to remain at 0.10% for the remainder of the financial year and well into 21/22 along with the possibility of negative interest rates.

The authority’s advisors are forecasting the base rate to remain flat (0.10%) at least until March 2023. Long term interest rates (PWLB) are expected to remain at or around 2.50% (for 25 – 50 year term) for the remainder of the year and foreseeable future, subject to the outcome of the PWLB consultation where rates for general fund schemes could be reduced.

Economic Update 16. UK. As expected, the Bank of England’s Monetary Policy Committee kept Bank Rate unchanged on 6th August. It also kept unchanged the level of quantitative easing at £745bn. Its forecasts were optimistic in terms of three areas:

 The fall in GDP in the first half of 2020 was revised from 28% to 23% (subsequently revised to -21.8%). This is still one of the largest falls in output of any developed nation. However, it is only to be expected as the UK economy is heavily “skewed” towards consumer-facing services – an area which was particularly vulnerable to being damaged by “lockdown”.

 The peak in the unemployment rate was revised down from 9% in Q2 to 7½% by Q4 2020.

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 It forecast that there would be excess demand in the economy by Q3 2022 causing CPI inflation to rise above the 2% target in Q3 2022, (based on market interest rate expectations for a further loosening in policy). Nevertheless, even if the Bank were to leave policy unchanged, inflation was still projected to be above 2% in 2023.

It also “eased” the idea of using negative interest rates, at least over the next few months. It suggested that while negative rates can work in some circumstances, it would be “less effective as a tool to stimulate the economy” at this time when banks are worried about future loan losses. It also has “other instruments available”, including quantitative Easing and the use of forward guidance.

The Monetary Policy Committee expected the £300bn of quantitative easing purchases announced between its March and June meetings to continue until the “turn of the year”. This implies that the pace of purchases will slow further to about £4bn a week, down from £14bn a week at the height of the crisis and £7bn more recently.

The Monetary Policy Committee acknowledged that the “medium-term projections were a less informative guide than usual” and the minutes had multiple references to downside risks, which were judged to persist both in the short and medium term. One has only to look at the way in which second waves of the virus are now impacting many countries including Britain, to see the dangers. However, rather than a national lockdown, as in March, any spikes in virus infections are now likely to be dealt with by localised measures and this should limit the amount of economic damage caused. In addition, Brexit uncertainties ahead of the year-end deadline are likely to be a drag on recovery. The wind down of the initial furlough scheme through to the end of October is another development that could cause the Bank to review the need for more support for the economy later in the year. The Chancellor announced in late September a second six month package from 1st November of government support for jobs whereby it will pay up to 22% of the costs of retaining an employee working a minimum of one third of their normal hours. There was further help for the self-employed, freelancers and the hospitality industry. However, this is a less generous scheme and will possibly mean there will be further job losses from the 11% of the workforce still on furlough in mid-September.

The pace of recovery is not expected to be in the form of a rapid V shape, but a more elongated and prolonged one after a sharp recovery in June through to August which left the economy 11.7% smaller than in February. The last three months of 2020 are now likely to show no growth as consumers will probably remain cautious in spending and uncertainty over the outcome of the UK/EU trade negotiations concluding at the end of the year will also be a “headwind”. If the Bank felt it did need to provide further support to recovery, then it is likely that the tool of choice would be more quantitative easing.

There will be some longer term adjustments as e.g. office space and travel by planes, trains and buses may not recover to their previous level of use for several years. There is also likely to be a reversal of globalisation as this crisis has shown how vulnerable long-distance supply chains are. On the other hand, digital services is one area that has seen huge growth.

A key addition to the Bank’s forward guidance was a new phrase in the policy statement, namely that “it does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% target

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sustainably”. This would indicate that even if inflation rises to 2% in a couple of years’ time, do not expect any action from the MPC to raise Bank Rate – until they can clearly see that level of inflation is going to be persistently above target if it takes no action to raise Bank Rate.

The Financial Policy Committee report on 6th August revised down their expected credit losses for the banking sector to “somewhat less than £80bn”. It stated that in its assessment “banks have buffers of capital more than sufficient to absorb the losses that are likely to arise under the MPC’s central projection”. The Financial Policy Committee stated that for real stress in the sector, the economic output would need to be twice as bad as the MPC’s projection, with unemployment rising to above 15%.

17. US. The incoming sets of data during the first week of August were stronger than expected. With the number of new daily coronavirus infections beginning to abate, recovery from its contraction this year of 10.2% should continue over the coming months and employment growth should also pick up.

However, growth will be dampened by continuing outbreaks of the virus in some states leading to fresh localised restrictions. The Federal Reserve has “tweaked” its inflation target from 2% to maintaining an average of 2% over an unspecified time period. This change is aimed to provide more stimulus for economic growth and higher levels of employment and to avoid the danger of getting caught in a deflationary “trap” like Japan.

The Federal Open Market Committee updated economic and rate projections in mid-September showed that officials expect to leave the federal funds rate at near-zero until at least end-2023 and probably for another year or two beyond that. There is now some expectation that where the Federal Reserve has led in changing its inflation target, other major central banks will follow. The increase in tension over the last year between the US and China is likely to lead to a lack of momentum in progressing the initial positive moves to agree a phase one trade deal.

18. EU. The economy was recovering well towards the end of Quarter 2 after a sharp drop in GDP, (e.g. France 18.9%, Italy 17.6%). However, the second wave of the virus affecting some countries could cause a significant slowdown in the pace of recovery, especially in countries more dependent on tourism. The fiscal support package, eventually agreed by the EU is unlikely to provide significant support and quickly enough to make an appreciable difference in weaker countries. The European Central Bank has been struggling to get inflation up to its 2% target and it is therefore expected that it will have to provide more monetary policy support through more quantitative easing purchases of bonds in the absence of sufficient fiscal support.

19. China. After a concerted effort to get on top of the virus outbreak in Quarter 1, economic recovery was strong in Quarter 2 and has enabled it to recover all of the contraction in Quarter 1. However, this was achieved by major central government funding of yet more infrastructure spending. After years of growth having been focused on this same area, any further spending in this area is likely to lead to increasingly weaker economic returns. This could, therefore, lead to a further misallocation of resources which may weigh on growth in future years.

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20. Japan. There are some concerns that a second wave of the virus is gaining momentum and could dampen economic recovery from its contraction of 8.5% in GDP. It has been struggling to get out of a deflation trap for many years and to stimulate consistent significant GDP growth and to get inflation up to its target of 2%, despite large monetary and fiscal stimulus. It is also making little progress on fundamental reform of the economy.

21. World growth. Latin America and India are currently hotspots for virus infections. World growth will be in recession this year. Inflation is unlikely to be a problem for some years due to the creation of excess production capacity and depressed demand caused by the coronavirus crisis.

Interest rate forecasts 22. The Council’s treasury advisor, Link Asset Services, has provided the following forecast:

Link Group Interest Rate View 11.8.20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Bank Rate View 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 3 month average earnings 0.05 0.05 0.05 0.05 0.05 - - - - - 6 month average earnings 0.10 0.10 0.10 0.10 0.10 - - - - - 12 month average earnings 0.15 0.15 0.15 0.15 0.15 - - - - - 5yr PWLB Rate 1.90 2.00 2.00 2.00 2.00 2.00 2.10 2.10 2.10 2.10 10yr PWLB Rate 2.10 2.10 2.10 2.10 2.20 2.20 2.20 2.30 2.30 2.30 25yr PWLB Rate 2.50 2.50 2.50 2.60 2.60 2.60 2.70 2.70 2.70 2.70 50yr PWLB Rate 2.30 2.30 2.30 2.40 2.40 2.40 2.50 2.50 2.50 2.50 PWLB rates are certainty rates, gilt yields plus 180bps

23. The coronavirus outbreak has caused significant economic damage to the UK and economies around the world. The Bank of England took emergency action in March to cut Bank Rate to first 0.25%, and then to 0.10%, it left Bank Rate unchanged at its meeting on 6th August (and the subsequent September and October meetings), although some forecasters had suggested that a cut into negative territory could happen. However, the Governor of the Bank of England has made it clear that he currently thinks that such a move would do more damage than good and that more quantitative easing is the favoured tool if further action becomes necessary.

As shown in the forecast table above, no increase in Bank Rate is expected within the forecast horizon ending on 31st March 2023 as economic recovery is expected to be only gradual and, therefore, prolonged.

24. Bond yields / PWLB rates. There was much speculation during the second half of 2019 that bond markets were in a bubble which was driving bond prices up and yields down to historically very low levels. The context for that was heightened expectations that the US could have been heading for a recession in 2020. In addition, there were growing expectations of a downturn in world economic growth, especially due to fears around the impact of the trade war between the US and China, together with inflation generally at low levels in most countries and expected to remain subdued. Combined, these conditions were conducive to very low bond yields.

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While inflation targeting by the major central banks has been successful over the last 30 years in lowering inflation expectations, the real equilibrium rate for central rates has fallen considerably due to the high level of borrowing by consumers. This means that central banks do not need to raise rates as much now to have a major impact on consumer spending, inflation, etc. The consequence of this has been the gradual lowering of the overall level of interest rates and bond yields in financial markets over the last 30 years.

Over the year prior to the coronavirus crisis, this has seen many bond yields up to 10 years turn negative in the Eurozone. In addition, there has, at times, been an inversion of bond yields in the US whereby 10 year yields have fallen below shorter term yields. In the past, this has been a precursor of a recession. The “flip side of the coin” is that bond prices are elevated as investors would be expected to be moving out of riskier assets i.e. shares, in anticipation of a downturn in corporate earnings and so selling out of equities.

Gilt yields were already on a generally falling trend up until the coronavirus crisis hit western economies during March. We have seen these yields fall sharply to unprecedented lows as major western central banks took rapid action to deal with excessive stress in financial markets, and started massive quantitative easing purchases of government bonds: this acted to put downward pressure on government bond yields at a time when there has been a huge and quick expansion of government expenditure financed by issuing government bonds.

Such unprecedented levels of issuance in “normal” times would have caused bond yields to rise sharply. At the close of the day on 30th September, all gilt yields from 1 to 6 years were in negative territory, while even 25-year yields were at only 0.76% and 50 year at 0.60%.

From the local authority borrowing perspective, HM Treasury imposed two changes of margins over gilt yields for PWLB rates in 2019-20 without any prior warning. The first took place on 9th October 2019, adding an additional 1% margin over gilts to all PWLB period rates. That increase was then partially reversed for some forms of borrowing on 11th March 2020, but not for mainstream General Fund capital schemes, at the same time as the Government announced in the Budget a programme of increased infrastructure expenditure.

It also announced that there would be a consultation (ended 31st July 2020) with local authorities on possibly further amending these margins. It is clear HM Treasury will no longer allow local authorities to borrow money from the PWLB to purchase commercial property if the aim is solely to generate an income stream (debt for yield).

25. Following the changes on 11th March 2020 in margins over gilt yields, the current situation is as follows: -  PWLB Standard Rate is gilt plus 200 basis points (G+200bps)  PWLB Certainty Rate is gilt plus 180 basis points (G+180bps)  PWLB HRA Standard Rate is gilt plus 100 basis points (G+100bps)  PWLB HRA Certainty Rate is gilt plus 80bps (G+80bps)  Local Infrastructure Rate is gilt plus 60bps (G+60bps)

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It is possible that the non-HRA Certainty Rate will be subject to revision downwards after the conclusion of the PWLB consultation; however, the timing of such a change is currently unknown, although it would be likely to be within the current financial year. As the interest forecast table for PWLB certainty rates, (gilts plus 180bps), above shows, there is likely to be little upward movement in PWLB rates over the next two years as it will take economies, including the UK, a prolonged period to recover all the momentum they have lost in the sharp recession caused during the coronavirus shut down period. Inflation is also likely to be very low during this period and could even turn negative in some major western economies during 2020/21.

26. The balance of risks to the UK The overall balance of risks to economic growth in the UK is probably relatively even, but is subject to major uncertainty due to the virus.

There is relatively little UK domestic risk of increases or decreases in Bank Rate and significant changes in shorter term PWLB rates. The Bank of England has effectively ruled out the use of negative interest rates in the near term and increases in Bank Rate are likely to be some years away given the underlying economic expectations. However, it is always possible that safe haven flows, due to unexpected domestic developments and those in other major economies, could impact gilt yields, (and so PWLB rates), in the UK.

Downside risks to current forecasts for UK gilt yields and PWLB rates currently include:  UK - second nationwide wave of virus infections requiring a national lockdown  UK / EU trade negotiations – if it were to cause significant economic disruption and a fresh major downturn in the rate of growth.  UK - Bank of England takes action too quickly, or too far, over the next three years to raise Bank Rate and causes UK economic growth, and increases in inflation, to be weaker than we currently anticipate.  A resurgence of the Eurozone sovereign debt crisis.  Weak capitalisation of some European banks, which could be undermined further depending on extent of credit losses resultant of the pandemic.  Minority EU governments. Germany, Austria, Sweden, Spain, Portugal, Netherlands, Ireland and Belgium have vulnerable minority governments dependent on coalitions which could prove fragile.  Geopolitical risks, for example in China, Iran or North Korea, but also in Europe and other Middle Eastern countries, which could lead to increasing safe haven flows.  US – the Presidential election in 2020: this could have repercussions for the US economy and SINO-US trade relations.

Upside risks to current forecasts for UK gilt yields and PWLB rates  UK - stronger than currently expected recovery in UK economy.  Post-Brexit – if an agreement was reached that removed the majority of threats of economic disruption between the EU and the UK.  The Bank of England is too slow in its pace and strength of increases in Bank Rate and, therefore, allows inflationary pressures to build up too strongly within the UK economy,

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which then necessitates a later rapid series of increases in Bank Rate faster than we currently expect.

Investment Portfolio 2021/22 27. In accordance with the Code, it is the Council’s priority to ensure security of capital and liquidity, and to obtain an appropriate level of return which is consistent with the Council’s risk appetite. As set out in the “Economic Update” it is now impossible to earn the level of interest rates commonly seen in previous decades as all investment rates are barely above zero now that Bank Rate is at 0.10%, while some entities, including more recently the Debt Management Account Deposit Facility (DMADF), a government agency, are offering negative rates of return in some shorter time periods.

Given this risk environment and the fact that increases in Bank Rate are unlikely to occur before the end of the current forecast horizon of 31st March 2023, investment returns are expected to remain low for the foreseeable future.

Negative investment rates 28. While the Bank of England has said that it is unlikely to introduce a negative Bank Rate, at least in the next 6 -12 months, some deposit accounts are already offering negative rates for shorter periods. As part of the response to the pandemic and lockdown, the Bank and the Government have provided financial markets and businesses with plentiful access to credit, either directly or through commercial banks. In addition, the Government has provided large sums of grants to local authorities to help deal with the Covid crisis; this has caused some local authorities to have sudden large increases in investment balances searching for an investment home, some of which was only very short term until those sums were able to be passed on.

Money market funds (MMFs), yields have continued to drift lower. Some managers have indicated that they might “trim” fee levels to ensure that net yields for investors remain in positive territory. Investor cash flow uncertainty, and the need to maintain liquidity in these unprecedented times, has meant there is a lot of money at the very short end of the market. This has seen a number of market operators, now including the DMADF, offer nil or negative rates for very short term maturities. This is not universal, and MMFs are still offering a marginally positive return, as are a number of financial institutions.

Inter-local authority lending and borrowing rates have also declined due to the large levels of cash received from Central Government seeking a short-term home while these funds are utilised.

29. The Council held £158m of Treasury investments as at 30th September 2020 (£149m at 31 March 2020) with an average maturity of 45 days. These investments are predominately with local authorities, money market funds and UK banks. The investment portfolio yield for the first six months of the year was 0.51%. The standard comparator for investment performance is the benchmark 7 day rate (LIBID)1, which for the period was “negative” 0.06%. The benchmark for 1 and 3 month deposits was (0.02%) and 0.10% respectively. 1LIBID – London Interbank Bid rate is a recognised reference rate to benchmark short-term investment interest rates.

30. The Chief Financial Officer confirms that the approved limits within the Annual Investment Strategy were not breached during the first six months of 2020/21. Page 161

31. The current investment counterparty criteria selection approved in the TMSS is meeting the requirement of the treasury management function

Borrowing 32. The Capital Financing Requirement (CFR) denotes the Council’s underlying need to borrow for capital purposes. The Council’s CFR at 31 March 2021 is estimated to be £908m. If the CFR is positive the Council may borrow from the PWLB or the market (external borrowing) or from internal balances on a temporary basis (internal borrowing).

33. The balance of borrowing between external and internal is generally driven by market conditions and forecasts of future cash flows and interest rates. At the 31st March 2020 the Council had external borrowings of £602m and has utilised £309m of internal cash in lieu of borrowing. This is a prudent and cost effective approach in the current economic climate but will require ongoing monitoring in the event that upside risk to gilt yields prevails.

34. However, internal borrowing is a temporary measure that takes advantage of low interest rates and will ultimately be replaced by more expensive external borrowing as the cash used is required elsewhere. The timing and amount of new external borrowing is therefore dependent on capital spending decisions, future cash flows and forecasts of interest rates.

35. Due to the underlying need to borrow for capital purposes, the need to ensure adequate liquidity and to reduce the Council’s internal borrowing position the Council has estimated a borrowing need of circa £10m during the remainder of the year. The source and length of borrowing may be initially on a short term basis whilst the outcome of the PWLB consultation is finalised and new PWLB margins are determined, a possible outcome being a reduced rate for general fund borrowing, also known as the PWLB certainty rate.

36. The Council will consider further borrowing following outcome of the PWLB consultation, if rates fall or are anticipated to rise at a higher pace than expected. This will enable the authority to take advantage of a low interest rate environment and reduce the interest rate risk of the authority.

37. PWLB rates varied within a relatively narrow range between April and July but the longer end of the curve rose during August. The graph and table below show the movement in PWLB certainty rates for the first six months of the year to date.

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Debt Rescheduling 38. Debt rescheduling opportunities have been limited in the current economic climate given the consequent structure of interest rates. The authority’s debt portfolio is made up of long dated loans (PWLB £331m, Market Debt (LOBOS) £70m and Market Debt (Fixed) (£50m) averaging 32 years. The estimated penalty to repay the PWLB loans early is £363m, taking the total cost to £694m. In respect of the market loans, where indicative prices have been provided, a similar level of penalty has been quoted.

39. The total life cycle cost of rescheduling loans on a discounted cash-flow basis has been reviewed with no loans providing a positive cash-flow benefit to the authority. This would in part be due to large early repayment penalties that the authority will incur.

40. For these reasons no debt rescheduling has been undertaken during the first six months of the year and none is anticipated for the remainder of the year. Ethical Policy

41. An Ethical Investment Policy is incorporated within the Treasury Management Practice Statements (TMPS). The City Council currently invest surplus funds with Banks and Building Societies either directly or via the Money Markets in the form of instant access cash deposit accounts, money market funds or on fixed term deposit and with other local authorities. The City Council’s ethical investment policy is based on the premise that the City Council’s choice of Page 163

where to invest should reflect the ethical values it supports in public life. The City Council will not knowingly invest in organisations whose activities include practices which directly pose a risk of serious harm to individuals or groups, or whose activities are inconsistent with the mission and values of the City Council.

The Council’s Capital Position (Prudential Indicators) 42. This part of the report is structured to update:  The Council’s capital expenditure plans;  How these plans are being financed;  The impact of the changes in the capital expenditure plans on the prudential indicators and the underlying need to borrow; and  Compliance with the limits in place for borrowing activity. Prudential Indicator for Capital Expenditure There are no policy changes to the TMSS; the details in this report update the position in the light of the updated economic position and budgetary changes already approved. 43. This table shows the latest estimates for capital expenditure: Capital Expenditure by Service 2020/21 2020/21 Approved Period 6 Programme Forecast £m £m Non-HRA 211 158 HRA 84 51 Total 295 209 44. The latest capital monitoring report for the end of September 2020 sets out a capital forecast of £209m detailed within the period 6 monitoring report presented to Cabinet on the 3rd November 2020.

Financing of the Capital Programme 45. The table below draws together the capital expenditure plan and the expected financing arrangements of this capital expenditure. The borrowing element of the table increases the underlying indebtedness of the Council by way of the Capital Financing Requirement (CFR), although this will be reduced in part by revenue charges for the repayment of debt (the Minimum Revenue Provision). This direct borrowing need may also be supplemented by maturing debt and other treasury requirements.

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Capital Expenditure 2020/21 2020/21 Approved Period 6 Programme Forecast £m £m Total spend 295 209 Financed by: Capital receipts 57 41 Capital grants 98 70 Revenue / Reserves 19 13 HRA – Self Financing 35 35 Prudential Borrowing – Increase in Capital Financing 86 50 Requirement Total financing 295 209

Capital Financing Requirement (CFR) & Operational Boundary 46. The table below shows the CFR, which is the underlying external need to incur borrowing for a capital purpose and it also shows the expected debt position over the period. This is termed the Operational Boundary.

Capital Financing Requirement 2020/21 2020/21 Original Latest Estimate Estimate £m £m CFR – non housing 702 663 CFR – housing 245 245 Total CFR 947 908

External Debt (Operational Boundary) 2020/21 Approved Indicator £m Borrowing 536 Other long term liabilities* 128 Total debt 31 March 664

* On balance sheet PFI schemes and finance leases etc. 47. The revised Capital Financing Requirement is based on the actual CFR as at 31 March 2020 (£870m) increased by in-year capital expenditure financed by borrowing (£50m) and reduced by the minimum revenue provision (MRP) for repayment of debt and the repayment of the debt facilities within other long term liabilities (£12m). Limits to Borrowing Activity 48. The first key control over the treasury activity is a prudential indicator to ensure that over the medium term, net borrowing (borrowings less investments) will only be for a capital purpose. Gross external borrowing should not, except in the short term, exceed the total of CFR in the preceding year plus the estimates of any additional CFR for 2020/21 and next two financial years. This allows some flexibility for limited early borrowing for future years. The Council has Page 165

approved a policy for borrowing in advance of need which will be adhered to if this proves prudent. 2020/21 2020/21 Original Latest Estimate Estimate £m £m Gross borrowing 536 461 Plus other long term liabilities* 128 132 Gross borrowing & long term Liabilities 664 593 CFR* (year-end position) 947 908 * Includes on balance sheet PFI schemes and finance leases etc. 49. The Chief Finance Officer reports that no difficulties are envisaged for the current or future years in complying with this prudential indicator.

50. A further prudential indicator controls the overall level of borrowing. This is the Authorised Limit which represents the limit beyond which borrowing is prohibited, and needs to be set and revised by Members. It reflects the level of borrowing which, while not desired, could be afforded in the short term, but is not sustainable in the longer term. It is the expected maximum borrowing need with some headroom for unexpected movements. This is the statutory limit determined under section 3(1) of the Local Government Act 2003. Authorised limit for external debt 2020/21 Approved Indicator £m Total Borrowing 970

Proposal 51. That the Mid-Year Treasury Management report for 2020/21 is noted.

Other Options Considered 52. None

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Risk Assessment 53. Borrowing and lending activity is reported to the Mayor. The principal risks associated with treasury management are: Risk Mitigation Loss of investments as a result of Limiting the types of investment instruments used, failure of counterparties setting lending criteria for counterparties, and limiting the extent of exposure to individual counterparties Increase in the net financing costs of Planning and undertaking borrowing and lending in the authority due to borrowing at light of assessments of future interest rate high rates of interest / lending at movements, and by undertaking most long term low rates of interest borrowing at fixed rates of interest (to reduce the volatility of capital financing costs)

Public Sector Equality Duties 54. a) Before making a decision, section 149 Equality Act 2010 requires that each decision-maker considers the need to promote equality for persons with the following “protected characteristics”: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation. Each decision-maker must, therefore, have due regard to the need to:

i) Eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Equality Act 2010. ii) Advance equality of opportunity between persons who share a relevant protected characteristic and those who do not share it. This involves having due regard, in particular, to the need to -- - remove or minimise disadvantage suffered by persons who share a relevant protected characteristic; - take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of people who do not share it (in relation to disabled people, this includes, in particular, steps to take account of disabled persons' disabilities); - encourage persons who share a protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low. iii) Foster good relations between persons who share a relevant protected characteristic and those who do not share it. This involves having due regard, in particular, to the need to – - tackle prejudice; and - promote understanding. b) There are no proposals in this report, which require either a statement as to the relevance of public sector equality duties or an Equalities Impact Assessment.

Legal and Resource Implications Legal The Council is under a duty to manage its resources prudently and therefore due consideration Page 167

must always be given to its borrowing and lending strategy. A wide range of local authority financial activities, including borrowing, lending, financial management, and the approval of types of investment vehicle are governed by legislation and various regulations. The Council is obliged to comply with these.

(Legal advice provided by Tim O’Gara - Service Director - Legal and Democratic Services)

Financial (a) Revenue The financing costs arising from planned borrowing are provided for in the revenue budget and medium term financial plan. Any additional operating costs will have to be contained within the revenue budget of the relevant department. (Financial advice provided by Jon Clayton -Capital and Investments Manager)

(b) Capital Not applicable

Land Not applicable

Personnel Not applicable

Appendices: None

LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 Background Papers: None

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