The General Purposes and Audit Committee of Bexley Council met on Wednesday 24 January 2024 to discuss a range of financial and operational matters. Key decisions included the approval of the Council Tax and Business Rates bases for 2024/25, and the recommendation for the Council's Pay Policy Statement for the upcoming year. The committee also received updates on treasury management, audit reports, and debt recovery.

Director of Adult Social Care and Bexley Place Executive Lead

The committee noted the arrangements for the Director of Adult Social Care and Health and the Bexley Place Executive Lead, following the retirement of Stuart Rowbotham at the end of March 2024. The current combined role will be split into two separate full-time positions, with both reporting to the Chief Executive of the London Borough of Bexley and the Chief Executive of the Integrated Care Board. This decision was previously approved by the full Council on 8 November 2023. The report highlighted that while the current integrated leadership has been beneficial, greater capacity is needed to manage increasing demands and budget pressures. The new arrangement will be funded through a Section 75 pooled budget, with a 50/50 contribution from the Council and the Integrated Care Board. This will result in a deficit to the Council of approximately £35,000, which is intended to be covered by the Better Care Fund uplift for 2024/25.

Treasury Management Half Yearly Report 2023/24

The committee received and noted the Treasury Management Half Yearly Report for 2023/24. The report detailed the council's treasury management strategy and activities for the period 1 April to 30 September 2023. It was noted that bank rates had increased from 5% to 5.25% during this period, contributing to a reduction in inflation. The council's investments as of 30 September 2023 totalled £74.242m, with a weighted average return of 5.07%. The report also confirmed that the council's treasury management activities remained within the set prudential and treasury management indicators. A query was raised regarding the delay in redeeming funds from the Lothbury Property Trust, which officers advised was due to a merger with UBS, pushing the termination date back to the end of March.

Change to Location of Polling Stations

The committee agreed to proposed changes to polling places to comply with the Elections Act 2022 requirements. These changes primarily involve moving from temporary portacabins to permanent locations, or to more suitable indoor spaces within existing venues. Nine specific polling districts had their polling places altered. These changes aim to ensure better accessibility and privacy for voters, particularly in light of new voter identification requirements. The report noted that ward councillors had been consulted on these changes. A full statutory review of polling districts and stations is scheduled to begin in June 2024. The committee also highlighted the need for more information on election costs to better understand them.

Pay Policy Statement 2024/25

The committee recommended the approval of the Council's Pay Policy Statement for 2024/25 to the full Council for publication. The statement, required under the Localism Act 2011, outlines policies on the remuneration of senior executives and lowest-paid employees, and the relationship between them. The report noted that the pay ratio between the highest paid employee and the median earnings of the workforce was 5.6 to 1 as at 31 March 2023, a decrease from the previous year. The statement also addressed the abatement of pension payments, which has been suspended since March 2020 due to the COVID-19 pandemic. The Pensions Committee will review the suspension of this policy in the first half of the new financial year.

Report Presenting the Ernst & Young LLP (EY) Auditor's Annual Report for the Year Ended 31 March 2022

The committee noted the Ernst & Young LLP (EY) Auditor's Annual Report for the year ended 31 March 2022. The report confirmed that EY had issued an unqualified opinion on the financial statements and did not identify any significant weaknesses in the council's value for money arrangements. The report did, however, make five recommendations for improvement concerning property, plant and equipment, year-end debtor listings, the completeness of bank accounts, and officer and member remuneration disclosures. Management agreed to implement these recommendations. The report also detailed the audit fees, with the proposed fee for the 2021/22 year being £242,182, reflecting additional work required for regulatory and compliance audits.

Calculation of Council Tax Base for 2024/25

The committee approved the Council Tax Base calculation for 2024/25. The calculated Council Tax Base for the year is 83,991.9 Band D equivalents. This figure will be used in setting the council's budget for 2024/25. The report also detailed the tax bases for areas subject to levies from the Southern and Thames Regional Flood and Coastal Committees of the Environment Agency, which are 48,595.9 and 35,396.0 Band D equivalents, respectively. The calculation takes into account factors such as the number of chargeable dwellings, exemptions, discounts, and the Council Tax Support Scheme.

Calculation of the Business Rates Base 2024/25

The committee approved the calculation of the Business Rates Base for 2024/25 and delegated responsibility to the Director of Finance and Corporate Services, in consultation with the Cabinet Member for Resources, to make any necessary adjustments in finalising the 2024/25 budget. The report outlined the business rates retention scheme, where local authorities retain a share of their business rate income. Bexley is a top-up authority, meaning it receives additional funding from the government to reach its baseline funding level. The provisional top-up for 2024/25 is expected to be £15.066m, an increase from the previous year.

Internal Audit and Counter Fraud Progress Report

The committee received an update on Internal Audit and Counter Fraud activities from April to December 2023. It was noted that the delivery of the 2023/24 Internal Audit plan was significantly behind schedule due to factors including the completion of work carried forward from the previous year and a vacancy in the Audit Manager/Partner role. Measures are being put in place to address this, including fortnightly contract management meetings with the outsourced provider, PwC. The report also detailed counter fraud activity, including the number of fraud cases raised and closed, and the savings achieved. The committee was informed that a new counter fraud work plan for 2024/25 would be developed and presented in March 2024.

Debt and Debt Recovery as at 30 November 2023

The committee noted the report on debt and debt recovery as at 30 November 2023. The total outstanding debt was £68.395m, a decrease of £5.394m since the previous report. The report provided a detailed breakdown of debt by type, age, and recovery stage, including Council Tax, Business Rates, Parking, Temporary Accommodation, Commercial Rent, Traveller Sites, Housing Benefit Overpayments, and Sundry Debt. The bad debt provision forecast for the year-end is £29.154m, a decrease of £1.039m compared to the previous year. The report also detailed debt write-offs approved by the Corporate Debt Board.