Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Roger Melling, Michael Jones and Keith Brown.

The Chair will consider the admission of any late report in relation to the item shown on the agenda. Please note that under the Council’s Constitution – Part 4 Section B paragraph 17 – this being a special meeting of the Corporate Committee no other business shall be considered.

No items of urgent business received.

A member with a personal interest in a matter who attends a meeting of the authority at which the matter is considered must disclose to that meeting the existence and nature of that interest at the commencement of that consideration, or when the interest becomes apparent.

A member with a personal interest in a matter also has a prejudicial interest in that matter if the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member's judgment of the public interest and if this interest affects their financial position or the financial position of a person or body as described in paragraph 8 of the Code of Conduct and/or if it relates to the determining of any approval, consent, licence, permission or registration in relation to them or any person or body described in paragraph 8 of the Code of Conduct.

Cllr Jenks declared a personal interest as a member of the Haringey pension Scheme and also as a volunteer with the Citizens Advice Bureau and as a friend of Cooperscroft owned by TLC, which were both admitted bodies of the Pension Fund. There was further personal declaration of interests from Councillors Khan and Whyte as members of the Council’s Pension Scheme.

 Councillor Gorrie declared a prejudicial interest at item 13; the details are recorded at minute CC59.

To consider any requests received in accordance with Part 4, Section B, Paragraph 29  of the Council’s Constitution.

A deputation was forward by the Employee side in relation to item 5, Children’s Centres Restructure report. Their comments are recorded below as part of CC51.

The Committee to consider proposals for the future delivery of this service. Report to Follow

The Committee were asked to agree the staffing restructure of children’s centres. The Cabinet had agreed the model for delivery of children’s centres in July and following this there had been a consultation period with staff and school governing bodies on the staffing changes arising from this new model. The job descriptions had been compiled with the input of the Children’s Centre Task Group and issued with the consultation documents for comment.  It was important to note that the staffing restructure involved staff working in the community based services  run from the children’s centres and not  staff working in the childcare provision element of the centres.

• Members questioned how the relationship between children centres and the council was being driven by outcomes as required by a standard commissioning process as this was not fully set out in the report. Members noted that as part of this arrangement the individual children’s centres continued to be responsible for the services that they delivered from the centre.  The Service Level Agreement (SLA) would outline what services could be delivered with this funding allocation. The performance of the each centre to their SLA agreement would be monitored as part of the performance management framework by the Early Years service.  Members noted that the service had a relatively short period of time to compile proposals for the delivery of children’s centres with the reduction in funding needing to be acted upon in 2011/12 and therefore the service was continuing to meet with partners to work out the joint commissioning outcomes for the children’s centres. The service would be following DFEE guidance when commissioning services.

• Members sought clarification about the political representation on the Local Advisory Boards and their reporting lines. Officers advised that the governance arrangements for these groups still required further work. The Steering Group at the strategic level would monitor the delivery and the working to the early year’s policy.  The oversight of this group lay with the Cabinet. The Corporate Committee requested a response from the Cabinet or the Cabinet Member about what the plans were for democratically elected members to sit on this Steering group and what its reporting lines would be.

• In respect of the new staffing structure Chair asked that a simple guide to the management structure of the children’s centres be issued to Committee Members to aid understanding of their roles and reporting lines.

• The Employee side conveyed concerns raised by staff at South Grove centre on recruitment to roles; particularly that Information and Administration officers were being recruited at scale 4, in the second Cluster instead of to scale 5 as the case in all the other Clusters.  The Head of Early Years explained that the difference in the scale grading would have been worked out according to the level duties attached to this role with its pay scale having been part of the cost package for delivering the services at the centre. Having the scale 4 information officer at this grade would allow them to keep  ...  view the full minutes text for item 51.

The Corporate Committee is responsible for Anti-fraud and Corruption arrangements as part of its Terms of Reference. In order to provide assurance that the corporate policy is consistent with relevant professional codes of practice and other best practice requirements, it is reviewed on a regular basis, with approval for the final Anti-fraud and Corruption Strategy resting with the Corporate Committee.

In line with the Committee’s terms of reference and as part of the CIPFA (Chartered institute of Finance and Accountancy) code of practice and the requirements of the Council’s whistle blowing policy, there was a need for the council to ensure that there were appropriate processes in place for the reporting and investigation of allegations of fraud and corruption. The Corporate Anti-fraud and Corruption strategy, Fraud Response Plan, Whistle Blowing Policy, Housing Benefit Anti-Fraud Strategy and Sanctions Policy and Anti–Money laundering policy, were attached for the Committee’s consideration and agreement.

The Head of Audit and Risk Management explained that there was significant work also completed with the Police and the UK Border Agency, e.g. the recent work between Adult services and the Immigration service to ensure that staff working in a contracted service had work permits.

 The Committee considered the potential circumstances where there could be exposure to money laundering or criminal activity and the arrangements in place to counteract this. The Head of Audit and Risk Management explained that although the council was bound by the regulations, local authorities were not considered to be high risk. However, procedures were in place to report and review cases which involved large cash transactions and cited an example of a council tenant suggesting they would repay arrears in cash. In the event the transaction did not take place, but the procedures in place demonstrated that the system worked as intended.

In answer to a question about public disclosure of the fraudulent claims being investigated that concern staff and residents; this was dependent on how much of the case was already in the public domain.  Where there was already information in the public domain the name and type of offence would be included. Where the information had not entered the public domain there would be a reference number and type of offence included. This was usually reported in the Internal Audit report considered by the Committee on a quarterly basis.

RESOLVED

That the revised Corporate Anti-fraud and Corruption strategy; Fraud Response Plan, Whistle Blowing Policy, Housing Benefit Anti Fraud Strategy and Sanctions Policy and Anti –Money Laundering Policy, be agreed.

To advise the Committee of the work undertaken during the second quarter by the Internal Audit Service in completing the 2011/12 annual audit plan and reports issued for outstanding 2010/11 audits, together with the responsive and housing benefit fraud investigation work, and to provide details of the work undertaken by Council’s Human Resources business unit in supporting disciplinary action taken across all departments by respective Council Officers.

 Following the limited assurance ratings being  given to audit findings  concerning Hays Resource management and Parking Services (Pay and display) these services would feature in the next internal audit  report to the Committee, in January, where Members would consider the progress on the actions taken to address the findings of the internal audit. 

Following comments from Members the following clarifications were provided and actions agreed.

• In terms of raising concern and highlighting areas for Member review, the Ho Audit and Risk Management advised the Committee that this could be done through the scrutiny process. There was also an additional opportunity to highlight potential areas when the Annual Internal Audit plan is considered by the Corporate Committee.

• The Committee noted Deloitte and Touche were on track with the audit timetable by the third quarter with all audits expected to be completed by the end of the fourth quarter.

• The ACE agreed to review the statistical information on the progress of cases after Member appeal panels and provide a report back to the Committee.

• The Committee noted that the audit recommendations concerning schools were followed up by internal audit but asked that they be reported upon as part of the summary report. Councillor Gorrie asked for a copy of the audit report on Campsbourne Primary school.

 RESOLVED

1. That the audit coverage and counter fraud work completed during the second quarter, 2011/12 be noted.

2. That the management responses received for those audit recommendations not fully implemented be noted.  That the manager’s actions taken during the second quarter to address the outstanding recommendations be deemed appropriate.

To update Members on the progress of the review of  employment terms and conditions.

Members received a short update on the current status of discussions concerning staff terms and conditions.  A fuller report on the progress of the terms and conditions negotiations and the changes proposed to the areas outlined in the penultimate paragraph of section 3 would come back to a further Committee meeting.  In considering this information the Committee identified that they had not seen the earlier detail of proposed changes to employee terms and conditions  and therefore  were not aware of the  proposed changes   that  had since been  discounted  or not agreed upon. It was subsequently agreed that the Assistant Chief Executive circulate this information to Members of the Committee after the meeting.

Concern was expressed by some Members about how the Member appeal process operated and whether the panel hearings were an appropriate use of Member’s time when cases often went to Employment Tribunal.  As this provision was offered in the terms and conditions of staff employed by the council it was a matter for discussions between staff, unions and management.  This subject was to be discussed with the unions as part of the negotiations on employment terms and conditions and reported upon at a further meeting.

Members were generally unhappy with the level of detail in the report and did not note the report.

The report updates members on the preferred partnership with Waltham Forest Council with particular emphasis on the staffing elements of service delivery.

The Committee received an update on the progress of shared services being taken forward with Waltham Forest.  Section three of the report set out the current progression with projects. The Cabinet had oversight of shared services and Corporate Committee had responsibility for agreeing staffing restructures   involving shared service projects. With this responsibility in mind, this update report had been requested to keep the Committee abreast of developments in shared services.

It was noted that decisions on an employment protocol with Waltham Forest and staffing changes following a Cabinet decision on the sharing of Regulatory services were due for consideration  at the special meeting  of the Corporate Committee on the 19th December 2011.

RESOLVED

That the report be noted.

To ensure that the hourly rate of pay of council employees at the lower end of the London pay spine remain at a reasonable and fair level of pay for working in London as determined by the Living Wage Unit on behalf of the Mayor of London for the Greater London Authority  group. 

The Committee considered a report on the implementation of hourly pay rate supplements to the pay scales of council employees at the lower end of the London pay spine to increase the hourly rate of pay to the level of the London Living wage (LLW) as determind by the Mayor of London’s office.

In principal there was agreement to the policy of adhearing to the Living Wage. Following questions about whether the required increases to council employees at the lower end of the London Pay spine could have financed other changes in terms and conditions for all staff, there was disagreement amongst the Committee Members with this suggestion. Subsequently,  the majority of the Committee  made the following resolutions:

 RESOLVED

1. That  the implementation of local hourly pay supplements for council employees at the lower end of the London pay spine to increase the hourly rate of pay to the level of the London Living Wage rate as determined by the Greater London Authority. 

2. That the  increase to the pay rates of agency workers to ensure that no one is paid less than the London Living Wage as determined by the Greater London Authority be agreed.

3. That the above additional pay supplements/ increases with effect from 2 May 2011.

4. That the Head of Human Resources be given delegated authority to increase and/or introduce hourly pay supplements as appropriate to ensure that in future the pay of council employees at the lower ends of the London pay spine receive a level of pay in line with the London Living Wage rate as determined from time to time by the Greater London Authority.

5. That the  Head of Human Resources be delegated authority to increase the pay and charge rates of agency workers to ensure that they are paid no less than the London Living Wage rate as determined from time to time by the Greater London Authority.

6. That the principle of adopting the Greater London Authority London Living Wage rate  be agreed and be applied as the minimum pay level for staff providing services to the council under procurement contract arrangements. 

The report proposes a process for the appointment to two posts :Assistant Director of Finance and Head of Legal Services.

The Committee were asked to agree the process for the recruitment of the Assistant Director of Finance and the Head of Legal Services.  The approach being adopted was including these posts in the internal jobs vacancy list and inviting applications from current council staff. A long list of applicants would be drawn up and a Member appointment process would follow.  If the internal advert was unsuccessful in attracting applicants or should an appointment not be possible, an external recruitment exercise would be undertaken. 

 RESOLVED

1. That the above outlined recruitment process for Assistant Director for Finance and Head of Legal Services be agreed on the understanding that this decision does not create a precedent and still allows similar recruitment decisions concerning senior officers to be considered by the Corporate Committee.

2. That should the  above outlined recruitment process prove unsuccessful  for  recruiting to these positions then a further  report on each or both posts return to the Committee for decision.

 The following items  are likely to be subject of a motion to exclude the press and public from the meeting as they contains exempt information as defined in Section 100a of the Local Government Act 1972; Para 3 - information relating to the business or financial affairs of any particular person (including the authority holding that information).

These minutes are exempt as they contain information as defined in Section 100a of the Local Government Act 1972; Para 3 - information relating to the business or financial affairs of any particular person (including the authority holding that information).

To receive a report on the outcome of the tender process to appoint two passive fund managers for the Pension Fund. Report to Follow

Cllr Gorrie declared a prejudicial interest in this item, following financial interests in both the recommended financial institutions and did not participate in the discussion on this item.

Aon Hewitt representative, David Crum, attended the meeting and introduced the report to Members. Aon Hewitt had been tasked with recruiting passive pension fund managers to manage equity and bond investments following the agreement of the Pensions Committee in April 2011.   Aon Hewitt advised that they would be bringing forward a subsequent report to the Corporate Committee in January 2012 which would set out a detailed implementation plan as to how the managers will be funded.

RESOLVED

That Legal and General Investment Management be re-appointed and Black Rock Investment Management is appointed to manage equities and bonds on a passive basis for the Pension Fund.

The  Committee to receive an update  on the leisure management contract pension funding issue discussed at the Corporate Committee meeting on the 27 September.

The Committee received an update on the arrangements for a ‘Cap and Collar’ approach to pension costs associated with the Leisure services contract as requested at the last meeting.  This was defined by legal as a key decision before the Corporate Committee meeting on the 27 September and meant the report was also considered by Cabinet on the 04 October 2011. Cabinet had subsequently agreed the ‘Cap and Collar’ approach but as yet the percentage range of the ‘Cap and Collar’ had yet to be agreed. There was disquiet raised by the Committee about how the report and subsequent decision had been progressed through the council’s decision making structure.

The Chair agreed that he would speak to the Chief Executive about seeking further details on  the  events and advice  leading  up to the report being considered at  both Corporate Committee and Cabinet as a number of particular questions were asked about timescales.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

It was suggested that there should be further clarity on the Corporate Committee’s financial role in the decision making structure of the Council with the situation of this report refereed to the Constitution working group.  However, as this group did not meet on a scheduled basis, the Assistant Chief Executive agreed to have appropriate discussions with officers about the duties of the Committee contained in the terms of reference.

RESOLVED

That the Committee’s terms of reference be reviewed.