Agenda and minutes

Apologies for absence had been received from Councillor Eddie Lavery.

Members are reminded that if they have a pecuniary interest in any matter being discussed at the meeting they must declare the interest.  They may not take part in any discussion or vote on a matter in which they have a pecuniary interest.

RESOLVED:  That the minutes of the Audit Committee meeting held on 22 January 2021 and of the Authority meeting held on 26 March 2021 be taken as read and signed as correct records.

Members were advised that the Member appointed as Chair of the Audit Committee would take the Chair during the Authority meeting for audit items. All members of the Authority were members of the Audit Committee.

RESOLVED: That (1) the Authority discharge the functions of the Audit Committee;

(2) Councillor Graham Henson be appointed as Chair of the Authority for the 2021/22 municipal year;

(3) Councillor Deirdre Costigan be appointed as Vice-Chair of the Authority for the 2021/22 municipal year;

(4) Councillor Krupa Sheth be appointed as Chair of the Audit Committee for the 2021/22 Municipal Year.

The remaining dates of meetings of the Authority in 2021 are:

Friday 24 September 2021 at 10.00am

Friday 3 December 2021 at 10.00am

Members are invited to agree the following dates of meetings of the Authority and Audit Committee for 2022 based on the existing pattern:

Friday 21 January 2022 at 11.00am (Audit Committee at 10.00am)

Friday 25 March 2022 at 10.00am

Friday 24 June 2022 at 10.00am (including Audit items)

Friday 23 September 2022 at 10.00am

Friday 2 December 2022 at 10.00am

RESOLVED: That the following dates of meetings of the Authority and the Audit Committee be confirmed: -

Friday 24 September 2021 at 10.00am

Friday 3 December 2021 at 10.00am

Friday 21 January 2022 at 11.00am (Audit Committee at 10.00am)

Friday 25 March 2022 at 10.00am

Friday 24 June 2022 at 10.00am (including Audit items)

Friday 23 September 2022 at 10.00am

Friday 2 December 2022 at 10.00am

Councillor Krupa Sheth, Chair of the Audit Committee, took the Chair for this item and agenda items 7,8 and 9.

Members received the final Assurance report for 2020/21 from Internal Auditor which advised that, overall, reasonable assurance could be given over the key risks to the achievement of the objectives for Treasury Management.

Sarah Hydrie, Internal Auditor, provided a high-level summary of the information completed on 3 June 2021.

RESOLVED: That the report be noted.

Members received the draft Internal Audit Report and Opinion Statement 2020/21.

Sarah Hydrie, Internal Auditor, outlined the content of the report and advised that in terms of key performance indicators, two had a red status (KPI 4 and KPI 6). Overall, Internal Audit could provide a reasonable assurance on the system of internal control that had been in place for the Authority for the year ended 31 March 2021. She advised Members that it was the final year of the Authority’s contract with London Borough of Hillingdon for the provision of Internal Audit and expressed her thanks to both Members and officers for their assistance with audit activities.

In response to a question about notable practice, the Internal Auditor confirmed that was with reference to an area of service that went above and beyond what would normally be expected and advised that authorities shared good practice.

A Member questioned the reason for the extension of notice time for some recommendations to 30 June 2021 and was advised that this was being resolved.

Referring to the client feedback questionnaire a Member asked whether there was any disconnect in that the average score for two questions had gone down whilst the recommendations indicated that the review had been relevant and constructive. The Finance Director responded that the difficulty related to the size of the Authority as it was relatively small.

A Member expressed his thanks to the Internal Auditor for the work done stating that the Authority was now in a different place to when the contract had commenced.

RESOLVED: That the report be noted.

Members received a report which presented the draft 2020/21 Statement of Accounts ending March 2021.

Jay Patel, Finance Director, presented the report to Members and explained that the audit sector had been impacted by the pandemic and that a number of 2019/20 audits had yet to be completed. A letter from Ernst Young had been provided to the Authority but not the external audit report but it was hoped that this would be available for the September meeting.

In terms of reserves, the Finance Director advised that the management view was that these should be retained in order to manage any unexpected risks. Ian O’Donnell, Treasurer, added that the benchmarking work carried out had shown that some authorities were holding reserves in the region of £100m but that the level of competence of the Finance Director and his team enabled WLWA to have a relatively low level of reserves.

RESOLVED: That the draft Statement of Accounts for 2020/21 set out in Appendix 2 of the officer report be noted.

Members received a report which provided the Authority’s updated Risk Register. Jay Patel, Finance Director, advised that there had been no new risks identified since the Authority meeting in January and that the pandemic risk had been downgraded slightly.

In response to a Member’s suggestion that risks in relation to the Environmental Bill be included in the Register, officers indicated that this was a good idea and that the Bill would also provide opportunities. Emma Beal, Managing Director, added that one of the Brexit risks around drivers and haulage previously identified was starting to impact and that now was the time to ensure that there were sufficient driver numbers and contingency.

RESOLVED: That the content of the Risk Register set out Appendix 1 to the report be noted.

Councillor Graham Henson, Chair of the Authority, chaired the meeting for the remaining items of business.

Peter Tilston, Projects Director, outlined the content of the report which provided an update on the Authority’s Circular Economy, Carbon and joint working efficiency projects. In response to questions he advised that update meetings on the six key project areas could be provided for both the lead Member and officers, there were discussions with Re London about how the Authority was working with them and also the bin centres, and that the Authority already recycled approximately 130,000 mattresses a year.

In terms of mattress recycling, Tom Beagan, Head of Service Delivery, advised that this was currently undertaken by Matt UK, a company based in Chatham. It was largely a manual process whereby the components were separated one by one, but many companies were looking to automate the process. Emma Beal, Managing Director, added that officers were considering whether more was achievable from the recycling of mattresses or carbon reduction by the launch of a procurement process and explained that mattresses were a relatively small waste stream for the Authority.

A Member questioned the expansion and capacity of the food waste site in the south and was advised that this was managed via Transport Avenue. Capacity in the south was being duplicated in the north. The Managing Director referred to the Environment Bill and stated that it was becoming clear that the separation of waste by every household was required which had caused some consternation across the country.

RESOLVED: That (1) the lease renewal at Victoria Road site, as detailed in section 11 of the report, be approved.

(2) the report be noted.

Members received a report which provided an update on financial and operational matters.

Jay Patel, Finance Director, introduced the report and advised that the London Borough of Ealing had been awarded the contract / service level agreement for internal audit services. He also updated Members on the current position in terms of the appointment of Independent Member for the Audit Committee.

RESOLVED: That (1) the current financial position and forecast for 2021/22 be noted;

(2) the Key Performance Indicators for 2020/21 be approved and the performance to date noted;

(3) the financial decisions taken under the scheme of delegation be noted;

(4) the update for recruiting an Independent Member of the Audit Committee be noted;

(5) the Annual Treasury Management Plan for 2021/22 be noted.

Members received a report which provided an update on the Authority’s various waste treatment arrangements and procurements.

Tom Beagan, Head of Service Delivery, outlined the content of the report. A Member sought clarification as to the Authority’s overall position in relation to the residual waste contract and commented that the Abbey Road improvements should be publicised. The Managing Director confirmed that this would be included in the Annual Report.

Members discussed the labour intensity and space requirements of some processes as well as extended producer responsibility. A Member commented that there was a disconnect in terms of the meadow at the site and therefore looking nice compared to the use of the site increasing emissions. She added that consideration should be given to facilitating easy access by cargo bike or on foot safely. This view was endorsed by another Member who stated that it was fundamental to the Authority’s carbon aims to make HRRCs accessible. Officers reassured Members that these issues were being considered, access had already been improved at Abbey Road and that a fundamental principle of the bulky waste service was to reduce the number of trips to HRRCs.

In response to a question on WEEE collection, the Managing Director reported that TRAID had offered to increase their current operation in relation to textiles to also include electronics. The Authority did not receive revenue from electronics as they were subject to a form of producer responsibility.

RESOLVED: That the report be noted.

RESOLVED:  That in accordance with Part I of Schedule 12A to the Local Government Act 1972, the press and public be excluded from the meeting for the following item for the reasons set out below:

Members received the confidential appendices to the Contracts and Operations update.

RESOLVED: That (1) the negotiating position set out in the report be agreed;

(2) the Managing Director, following consultation with the Treasurer, Clerk and Chair, be authorised to approve an outline agreement ahead of the September Authority meeting if necessary.