Issue - meetings

to note the report and the attached internal audit report.

The Committee had before it a report by the Chief Internal Auditor which presented the planned Internal Audit report on Bond Governance.

The report recommended:-

that the Committee review, discuss and comment on the issues raised within this report and the attached appendix.

In response to a question relating to the Credit Rating risks and how these would be dealt with, the Chief Officer – Finance advised that the credit rating agency looked over the accounts, balance sheet and the debt indicators to form an opinion as well as looking at the affordability test and the national picture.  He further advised that the Council had agreed the level of debt as being 12% of net spend with the Prudential Indicators showing that this fluctuates throughout the year.

In response to a question relating to the Economic Policy Panel, how they were identified and appointed and how was the report used , the Chief Officer – Finance advised that the panel had been in place since 2017 with members going through an assessment and interview process. He further advised that he used the report during the meeting with Moodies as it showed the local perspective and provided an independent view of the situation and the future of the local economy.

In response to a question relating to the reason for the change in the credit rating, the Chief Officer – Finance advised that the report was in two parts, one being an assessment of the Council on its own which then added the legal structure layer on top of that to provide a more positive credit risk for anyone looking to invest.  He further advised that there was also an annual assessment of other local authorities in the UK whereby all local authorities are grouped together which on this occasion resulted in the rating being downgraded by one point.

In response to a question relating to the phasing out of EU Regulations within reports and whether this was being addressed, the Chief Officer – Finance advised that as policies and procedures were amended, these would be amended.

The Committee resolved:-

to note the report and the attached internal audit report.