Penzance Council, 16 November 2020 Item 10 Mayor’s Engagements 21 September to 15 November 2020 Sept 23 Planning Committee Meeting 24 Weekly Meeting with TC and DTM 25 Healthy Streets Penzance Working Group Meeting 25 Mayor and Chairs Meeting 28 Penzance Outer Breakwater Working Group Meeting 28 Penzance ROC Action Group Meeting (DTM) 28 Penzance Regeneration Partnership Meeting 28 Penlee House Committee Meeting Oct 1 Personnel Committee Meeting 1 Full Council Meeting 4 Present Medals – Virtual London Marathon 5 Penzance Town Deal Board Meeting 5 L&A Committee Meeting 8 Weekly Meeting with TC and DTM 8 Climate Emergency Sub-Committee 9 BBC Radio Cornwall Interview – Healthy Streets Penzance 9 ‘Who Dares Works’ Active Plus Event (DTM) 11 Paul Feast Service 14 Planning Committee Meeting 15 Weekly Meeting with TC and DTM 18 Trafalgar Service at Madron (DTM) 19 Finance/GPs Committee Meeting 22 Weekly Meeting with TC and DTM 22 Meeting to discuss Remembrance 2020 29 Weekly Meeting with TC and DTM 29 Sir William Matthews’ Pension Fund Meeting 29 Penzance Neighbourhood Plan Progress Meeting Nov 1 Remembrance Commemoration at War Memorial, Battery Rocks 2 Penzance Town Deal Board Meeting 4 Planning Committee Meeting 5 Weekly Meeting with TC and DTM 5 Devolution Working Group Meeting 6 Meeting re. Christmas Gifting 13 Social Action Working Group Meeting NOTES: Item 15(a) PENZANCE COUNCIL – 16 NOVEMBER 2020 REPORT FOR INFORMATION PENLEE CENTRE CLOSURE CHRISTMAS 2020 Background Set out below are the closing dates of the Penzance Council Office over the Christmas period:- Monday, Tuesday, Wednesday 21-23 December Open Thursday 24 December (Christmas Eve) Closed - Statutory Holiday Friday 25 December (Christmas Day) Bank Holiday Monday 28 December Bank Holiday Tuesday 29 December Closed – Annual Leave Wednesday 30 December Closed – Annual Leave Thursday 31 December Closed – Annual Leave Friday 1 January 2021 (New Year’s Day) Bank Holiday Monday 4 January Open Penlee House will also be closed from 24 to 28 December inclusive and on 1 January 2021. For operational service delivery purposes, some members of the Leisure & Amenities Team will be on duty throughout the Christmas period to check the public toilets, Penlee car park and Penlee Park and carry out any necessary banking. Teresa Fogarty Senior Administration Officer Item 15(b) PENZANCE COUNCIL 16 NOVEMBER 2020 REPORT FOR INFORMATION REVISED COVID BUDGET 2020/21 Background: As agreed at Council on 23 June, the Senior Management Team have been keeping this year’s budget under review considering the ever changing Covid situation. Councillors will recall the predicted position agreed by Council in June was a possible net loss of income of £115,636 against the original budget. Having reviewed and discussed the budgets with the working group we have been able to reduce the possible net loss of income to £88,223 against the original budget. The minimum recommended level of general fund reserves is 25% of gross expenditure. Based on this review the General Fund reserve stands at £553,894 which is 28% of gross expenditure. As well as the General Fund Reserve the Council has £1,124,992 in earmarked reserves. These remain indicative figures based on assumptions around income and expenditure and are very much dependant on the extent Covid impacts the Council as well as financial decisions made during the remainder of this financial year. Helen Wilson-Prowse Support Services Manager/RFO Item 15(c) PENZANCE COUNCIL 16 NOVEMBER 2020 REPORT FOR INFORMATION INTERIM AUDIT REPORT Background: The Council’s internal auditor, Hudson Accounting, conducted an interim internal audit report during week commencing 5 October 2020. A copy of the report is at Annex 1. In summary, systems, processes, and controls were tested and are satisfactory. Actions/recommendation to take forward are as follows: • Increase Fidelity Insurance – however the impact of the pandemic on the Council’s projected year-end position may impact the necessity to increase the cover, a review when the budget is set might be a sensible approach. • Review the Council’s Investment Strategy within the financial year • Complete annual review of risk management arrangements in January 2021 as scheduled. Helen Wilson-Prowse Support Services Manager/RFO HUDSON ACCOUNTING LTD. INTERIM INTERNAL AUDIT REPORT: TO THE MEMBERS OF PENZANCE TOWN COUNCIL YEAR ENDED 31ST MARCH 2021 ISSUE DATE: 12/10/2020 ISSUED TO: TOWN CLERK & RFO INTRODUCTION: Internal auditing is an independent, objective assurance activity designed to 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. Scope: The scope of the audit covers, as a minimum, the areas included in the Internal Audit Report contained in the Annual Governance & Accountability Return. Any areas not covered at this interim stage will be included later in the year or during the final audit activity. Approach: Audit work is carried out in line with the Chartered Institute of Public Finance and Accountancy’s Internal Audit Standards and guidance issued by the National Association of Local Councils. Where applicable we have included reference to ‘proper practice’ and the associated guidance as laid out in ‘Governance & Accountability for Smaller Authorities in England’ which is applicable to financial years from 1st April 2020. Selective testing was carried out and the relevant policies, procedures and controls were reviewed. Due to the Coronavirus pandemic most testing was carried out remotely using both electronic and hard copy documentation. GENERAL COMMENTS: We would like to thank the staff for their assistance and co-operation during the audit. The matters raised in this report are only those which came to our attention during our internal audit work and are not necessarily a comprehensive statement of all the weaknesses that exist, or of all the improvements that may be required. In giving our internal audit opinion, it should be noted that assurance can never be absolute. The most that the internal audit service can provide is a reasonable assurance that there are no major weaknesses in risk management, governance, and control processes. The audit does not guarantee that the accounting records are free from fraud or error. We have provided a table of audit recommendations that allow for the Council’s response which can be used as an ongoing monitoring tool. We would be grateful if, in due course, it is completed and returned to us. AUDIT COMMENTARY: Items in bold text within the body of the report represent our findings in respect of the application of controls, text in italics represent suggested actions that fall short of being a formal recommendation or do not necessarily pertain to the application of internal controls. Previous Recommendations The position in respect of previous recommendations is set out in the attached Internal Audit Response Record. Accounting Records The accounts are maintained on AdvantEdge accounting software; were up to date and appeared free from material errors. Financial Regulations Financial Regulations were last reviewed in November 2019 when the new Model documentation was adopted. Payments A sample of payments was tested to establish whether the spending decision, procurement process, certification and approval for payment were in line with Financial Regulations as well as ensuring that payments were supported by invoices, VAT was correctly accounted for and payment controls were applied. Authority to spend: Spending decisions can be traced to the Minutes and purchase orders are routinely used. Procurement: Within the sample tested quotes had been obtained. Payment: Payments were supported by invoices and other payment controls had been applied. VAT: VAT had been accurately recorded. Risk Risk Assessment: The Council is yet to undertake its annual review of its risk management arrangements. Insurance: Statutory insurances are in place and the Fidelity Guarantee has yet to be increased as recommended. The impact of the pandemic on the Council’s projected year-end position may impact the necessity to increase the cover, a review when the budget is set might be a sensible approach. Investment Strategy: An Investment Strategy is in place, but it does need to be reviewed as the Guidance requires it be renewed for each financial year. Budgets Setting: We reviewed the 2020/21 budget setting process as part of our final audit work in 2019/20 and will review the 2021/22 process later in the year. Monitoring: The Council has responded to the impact of the pandemic by revising its budget and monitoring reports are provided to each Committee. Income Systems were tested to ensure that suitable controls are in place to ensure that all income is received in a timely manner, that charges are correctly applied and that any cash received is promptly receipted and banked. Precept: The precept payment received is in accord with that set by the Council. Car parks: Income is anticipated to drop by 30% in year due to the pandemic. Receipts in July and August were tested and there were no issues to report. Gallery: Again, a 30% drop in income has been factored in; the takings on random days in July and August were tested and there are no issues to report. VAT: VAT claims are up to date. Payroll 2020/21 pay award: The national pay award and associated back pay was accurately implemented in all but one case where a minor amendment will need to be made. New Starters: New employees have been issued with contracts of employment; in one instance an error was made which is being rectified – however the correct pay scale was applied thus the amendment is only to the wording in the contract. Re-gradings: Annual incremental progressions (two members of staff) have been accurately implemented. Tax, NI & Pensions: PAYE and pension deductions have been properly applied.