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(Public Pack)Agenda Document for Audit and Scrutiny Committee, 22 BRECON BEACONS NATIONAL PARK AUTHORITY Telephone: (01874) 624437 Plas y Ffynnon Cambrian Way Brecon Powys LD3 7HP Dear Member A meeting of the AUDIT AND SCRUTINY COMMITTEE will be held in The Conference Room at PLAS Y FFYNNON, CAMBRIAN WAY, BRECON LD3 7HP ON FRIDAY, 22ND JANUARY, 2016 AT 10.00 AM when your attendance is requested. Yours sincerely John Cook Chief Executive PLEASE NOTE THAT THE NATIONAL PARK AUTHORITY FILMS AND WEBCASTS ALL ITS PUBLIC MEETINGS LIVE - http://www.breconbeacons.public-i.tv/core/ Fire Evacuation Advice In the event of a fire, please exit the building via the main staircase, and assemble in the car park at Assembly Point 3 1 CORRESPONDENCE To receive and consider the attached Schedule of Correspondence and any recommendations thereon (below). Audit and Scrutiny Committee - 22 January 2016 1 2 MEMBERS' DECLARATION OF LATE CORRESPONDENCE Members are asked to declare any late correspondence they have received in relation to any items on the agenda. 3 DECLARATIONS OF INTEREST To receive any declarations of interest from members relating to items on the agenda. Members’ attention is drawn to the sheet attached to the attendance sheet and the need to record their declarations verbally and in writing, specifying the nature of the interest. If Members have declared an interest in an item please ensure that you inform the Chair when you are leaving the room, so that this can be recorded in the minutes 4 MINUTES (Pages 1 - 6) To receive the minutes of the Audit and Scrutiny Committee held on 30th October 2015 and to authorise the Chairman to sign them as a correct record 5 DECISION & ACTION TRACKING (Pages 7 - 10) 6 PUBLIC SPEAKING SCHEME To give the public an opportunity to address the committee in line with the notice required under the Authority’s Public Speaking Scheme. A: Budget Monitoring 7 INTERNAL AUDIT 2015/16 PROGRESS REPORT (Pages 11 - 14) 8 BUDGET MONITORING THIRD QUARTER 2015/16 (Pages 15 - 22) 9 QUARTER THREE TRADING REPORT (Pages 23 - 38) Audit and Scrutiny Committee - 22 January 2016 2 B: Scrutiny 10 SCRUTINY REPORT: ECONOMIC BENEFITS OF THE GEOPARK (Pages 39 - 72) C: Performance & Risk 11 PERFORMANCE EXCEPTIONS (Pages 73 - 88) 12 RISK REGISTER Members are asked to note that a full review of the Risk Register will be reported to the next meeting of the Audit and Scrutiny Committee to take account of risk workshops being scheduled with members and managers, and the development of the Risk Strategy. 13 COMPLAINTS/FREEDOM OF INFORMATION/COMPLIMENTS (Pages 89 - 100) 14 BUDGET PROPOSALS FOR 2016/2017 (Pages 101 - 108) D: Access to Information 15 PUBLIC INTEREST TEST (Pages 109 - 110) 16 BUDGET PROPOSALS FOR 2016/2017 (Pages 111 - 132) 17 OTHER BUSINESS SCHEDULE OF CORRESPONDENCE 1. To receive apologies for absence 2. Such other correspondence as, in the opinion of the Chairman, is of such urgency as to warrant consideration. Any enquiries about this agenda should be addressed to Julia Gruffydd or Angharad Hawkes 01874 624 437. Audit and Scrutiny Committee - 22 January 2016 3 MINUTES OF BRECON BEACONS NATIONAL PARK AUTHORITY AUDIT AND SCRUTINY COMMITTEE HELD AT PLAS Y FFYNNON, CAMBRIAN WAY, BRECON LD3 7HP ON FRIDAY, 30TH OCTOBER, 2015 PRESENT: Blaenau Gwent Powys Cllr G Hopkins (Chair) and Cllr Ratcliffe Monmouthshire Cllr A Webb (Deputy Chair) Merthyr Tydfil Rhondda Cynon Taff Cllr J Ward Torfaen Members appointed by the Welsh Government Mr Edward Evans and Mr Ian Rowat In Attendance Mr John Cook, Chief Executive Mr John Parsons, Monitoring Officer Mr Julian Atkins, Director of Countryside Elaine Standen, Finance Manager Mr Paul Funnell, IT and Systems Manager Mrs Julia Gruffydd, Democratic Services Manager Apologies Cllr M Bartlett and Mrs M Underwood Brecon Beacons National Park Audit and Scrutiny Committee 1 30 October 2015 Mr Christopher Morgan (Director of Planning) 51/14 Correspondence The Chief Executive advised members that the Review of Designated Landscapes had now been published and gave a brief overview of the key points. He felt that this was a very positive report which set out an exciting future for the Authority. A member commented that despite a lot of talk about the international designation this was not reflected in the recommendations. Another member hoped that this report would encourage people in the Park to work with the Authority. 52/14 Declarations of Interest No declarations of interest were made. 53/14 Minutes RESOLVED: That the minutes of the Audit and Scrutiny Committee held on 17 July 2015 be approved and the Chairman authorised to sign them as a true record. 54/14 Action Tracking Members reviewed outstanding actions from previous meetings of the National Park Authority and the Audit and Scrutiny Committee. A member asked about an action to discuss the continuation of the legal Service Level Agreement with Carmarthenshire County Council and the Chief Executive advised that he had asked for a meeting on several occasions and had now asked the Deputy Chairman to take this up with the Authority. Members asked the Chief Executive to write another letter to Carmarthenshire with a view to bringing recommendations to the Authority on 4 December 2015. 55/14 Public Speaking Scheme There were no requests to speak from the public. 56/14 Budget Monitoring 1 April to 30 September 2015 The Finance Manager presented the half yearly budget report. She advised that an in-year cut was still provisional but that the Authority might not hear about this until much later in the year, which made it difficult to be precise on the details of the budget. There was some scope to accommodate a cut but if this were greater than anticipated then this could be a problem. She referred to additional income from the costs awarded in the recent legal case and also a recent asset disposal, which would be a capital receipt. Brecon Beacons National Park Audit and Scrutiny Committee 2 30 October 2015 A member stressed that with regard to a mid year cut the Authority must show how it is dealing with this, and highlight the difficulties in balancing the budget under these conditions. The Authority should seek a meeting with the Welsh Government if this continued to be a problem. A member congratulated officers on the outcome of the recent legal case and the Monitoring Officer paid tribute to members of the Authority who stood firm in the face of considerable pressure. RESOLVED: To note the report and the comments made in relation to the provisional in-year cut. 57/14 Internal Audit Update and Report Mr Ed Evans joined the meeting at this point. The Finance Manager explained that a representative from Gateway Assurance was unable to attend the meeting, and she presented the internal audit report on health and safety, financial controls and risk management. She advised that the controls were different from those used by the previous auditors, Deloitte, and that of the three audits two were awarded Substantial and one Adequate. The IT Manager welcomed the report on risk management, which gave good guidance on areas where the Authority could improve its risk management. He referred to the detail contained in the management response to the audit report. A member commented that the Committee had looked at risk management and asked if there were any areas on which member approval or support was needed. The officer advised that a set of recommendations would be brought to Audit and Scrutiny Committee proposing that the Corporate Management Team monitored risk each month and bring back reports and controls. Members welcomed the suggestion of cascading down the responsibility for risk which was everyone’s responsibility. RESOLVED: That Members note the three Audit Reports and agreed management actions. 58/14 Quarter Two Trading Report The Commercial Manager presented the trading report for Quarter 2 and referred to the drop in visitor numbers across all centres, mainly due to the bad weather in August. However, income had continued to increase due to the quality and greater range of products, including the online shop. Income from car parks had also increased. He outlined two pieces of current work: one has reviewed the costs of retail sales to ensure that the gross profit figures are accurately reflected on the budget, and the second is reviewing salary costs to ensure that these reflect the changes agreed in terms and conditions as well as the application of the Living Wage. Brecon Beacons National Park Audit and Scrutiny Committee 3 30 October 2015 The Chairman of the Income Generation and Centres Working Group reported on the meeting held earlier in the week, where they had analysed this report and were able to drill down into the detail and ask probing questions. They had also had a wider discussion about income generation. The officer welcomed the support of this group as well as the challenge it gave him, which was necessary in order to move forward. A member asked about the focus of work now in the approach to Christmas and the officer outlined the further expansion of gift ranges, including charity Christmas cards at the National Park Visitor Centre, that is planned. In response to a question from a member there was some discussion about the procurement of utilities following actions recommended at the last Audit and Scrutiny Committee meeting, and it was noted that a possible framework had been identified, with potential for effecting savings by combining utilities procurement for all of the centres, once the difficulties of different length contracts could be overcome. The Director of Countryside and Land Management advised that National Parks Partnership had requested utilities information from National Park Authorities with the intention of looking into getting better deals through sponsorship at a UK wide level.
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