Parish Council Meeting Minutes
EXTRA-ORDINARY MEETING OF CHOLMONDELEY & CHORLEY PARISH COUNCIL HELD ON 17 DECEMBER 2020
(THE MEETING WAS HELD VIA VIDEO-LINK IN ACCORDANCE WITH REGULATIONS INTRODUCED UNDER THE CORONAVIRUS ACT 2020)
| PRESENT: | Councillor A D Fennell (In the Chair) Councillor C Baker Councillor A Gresty Councillor C Hopley | Councillor R Keys Councillor S Langton Councillor C Nickson Councillor P Probin |
| APOLOGIES: | Councillor C Farquharson |
109 DECLARATION OF INTERESTS
Members were asked to declare any disclosable pecuniary interest, personal interest or non- pecuniary interest which they had in any item of business on the agenda, the nature of that interest, and in respect of disclosable interests, to leave the meeting prior to the discussion of that item.
Councillor A D Fennell declared a disclosable pecuniary interest in Minute No. 112 on the basis that he was the applicant.
No other declarations were made.
110 RESCISSION OF DECISION NOTICE
The Parish Council considered a Rescission of Decision Notice submitted by Councillors Chris Baker, Chris Nickson and Alan Gresty in accordance with Standing Order No. 10 of the Parish Council’s Standing Orders.
The Notice required the Parish Council to review its decision made on 24 November 2020 in respect of the budget for 2021-2022.
The Rescission of Decision Notice set out reasons for requesting the Council to rescind its decision and substitute that decision with .
- The Good Councillor’s Guide to finance and transparency stated “Throughout the year the council needs to satisfy itself that expenditure is both lawful and in line with council decisions, and that proper controls are in place to prevent any possibility of fraud. No council wants to risk being the subject of adverse local media coverage relating to…poor budgeting.”
- As documented in the Internal Audit Report for 2018-2019, the Internal Auditor found that “Reserves are in excess of 200% of the precept…” and recommended that “The council should monitor the level of reserves from year to year and ensure that excessive reserves are not carried forward”.
- During consideration of the draft budget for 2021-2022 by the Council at its meeting on 24 November 2020, Councillor Baker drew attention to the fact that the proposed unallocated reserves (line item 16 of the draft budget) exceeded the calculated precept. The Council made no attempt to reduce the proposed unallocated reserves to ensure that the amount of the unallocated reserves did not exceed the proposed precept. Further, in accordance with The Good Councillor’s guide to finance and transparency, Internal Audit, “The Council must respond to any matters reported to them, with actions recorded in the minutes”.
- In the Internal Audit Report for 2019-2020, the Internal Auditor noted that “Internal audit recommendations should be implemented on a timely basis”. When considering the draft budget for 2021-2022 the Council again failed to respond in a timely manner to the Internal Auditor’s recommendations related to excessive reserves that have been outstanding since the internal audit for 2018-2019 was conducted.
- In addition, per The Good Councillor’s guide to finance and transparency, “…the government has stated that they expect local councils to ‘clearly demonstrate restraint’ when increasing precepts that are not a direct result of taking on additional responsibilities, and that the level of precepts set by local councils will be kept under close review.” When considering the budget for 2021-2022 the Council failed to ensure that excessive reserves are not being carried forward (as described above) and in so doing the Council failed to demonstrate restraint when determining the precept since the precept is affected by the amounts budgeted for unallocated reserves – large amounts for unallocated reserves contributes to larger precepts.
The three Councillors had submitted an alternative motion:
To reconsider the draft budget for 2021-22 with:
- Full observance of and adherence to the recommendation by the Internal Auditor as documented in the Internal Audit Report for 2018-2019 for the council to “…monitor the level of reserves from year to year and ensure that excessive reserves are not carried forward” (arecommendation which, as noted in the Internal Audit Report for 2019-2020, has still not been addressed in a timely manner by the Council and which, as a result, leaves the internal audit issue outstanding);
- Full observance of, and adherence to, all regulations, guidances, policies, procedures, standing orders and good practices applicable to the council; and
- Provision of due justification for each budgeted line item amount.
The Clerk submitted a revised Finance Report in which she suggested that the unallocated reserves for 2021-22 be transferred to the revised estimates to 31 March 2021 as earmarked reserves. This would remove the £2,500 general reserve for 2021-22 and would have the effect of ensuring that the end-of-year balance was not in excess of the precept requirement.
The revised calculations were as follows:
| Calculation of available balance on 1 April 2021 | £ | £ |
| Balance at bank on 30 September 2020 | 6,637.00 | |
| Spend 1 Oct 2020 – 31 March 2021 | -4,304.00 | |
| Balance available on 1 April 2021 | 2,337.00 | |
| Calculation of precept requirement | ||
| Budget proposals for forward year | 5,270.00 | |
| LESS Expected balance available on 1 April 2021 | -2,337.00 | |
| LESS VAT Reclaim 2020-21 | -397.76 | |
| LESS VAT Reclaim 2019-20 (not yet received from HMRC) | -107.14 | |
| Precept Requirement (rounded down) | 2,430.00 | |
| Effect on a Band D property £15.82 |
| Calculation of available balance on 1 April 2021 | £ | £ |
| Balance at bank on 30 September 2020 | 6,637.00 | |
| Spend 1 Oct 2020 – 31 March 2021 | -4,304.00 | |
| Balance available on 1 April 2021 | 2,337.00 | |
| Calculation of precept requirement | ||
| Budget proposals for forward year | 5,270.00 | |
| LESS Expected balance available on 1 April 2021 | -2,337.00 | 2,933.00 |
| LESS VAT Reclaim 2020-21 | -397.76 | 2,535.24 |
| LESS VAT Reclaim 2019-20 (not yet received from HMRC) | -107.14 | 2,431.10 |
| Precept Requirement (rounded down) | 2,430.00 | |
| Effect on a Band D property £15.82 | 15.82 |
Members carefully considered the Rescission of Decision Notice, but whilst accepting the concerns of Councillors Baker, Gresty and Nickson, other Members commented that it was important to have sufficient general reserves to enable unexpected expenditure to be met. It was acknowledged that the general reserves at the end of a financial year must not exceed the precept requested, unless the Council could justify it and the revised calculations provided for that.
RESOLVED: (a) That the Rescission of Decision Notice, having been considered, be noted and was used to inform the revision to the budget figures which had been agreed on 24 November 2020;
(b) That the Parish Council approve the revised calculations as set out in the Clerk’s report which had been prepared to address the concerns of the three Members who had submitted the Rescission of Decision Notice; and
(c) That a precept of £2,430.00 be requested from Cheshire East Council.
111 AUDIT REPORT – OUTSTANDING ACTIONS
The Parish Council took the opportunity to review the outstanding recommendations in the Internal Auditor’s report 2019-2020. These were specifically:
| 1 | The Council failed to comply with Reg. 15 which required publication of the exercise of public rights to inspect the accounts during 2018-2019 | Acknowledged. This was rectified for the 2019-20 accounts |
1 2 | 2018-2019 Issues Reserves in excess of 200% of the precept. Fixed asset register | The explanation for this was provided in the report submitted under Minute No. 110 above, and an extract of the Minutes of 16 January 2018 was submitted This would be submitted to the Parish Council at its January 2021 meeting |
| 2017-2018 Issues No contract of employment for the Clerk | This would be submitted to the Parish Council at its January 2021 meeting |
112 PLANNING APPLICATION
The Parish Council was invited to comment on the following planning application. Having declared a disclosable pecuniary interest in this item, Councillor A D Fennell withdrew from the meeting prior to discussion, and re-joined the meeting after the vote had been taken.
The Parish Council was invited to comment on the following planning application. Having declared a disclosable pecuniary interest in this item, Councillor A D Fennell withdrew from the meeting prior to discussion, and re-joined the meeting after the vote had been taken.
Councillor C Hopley, as Vice-Chairman, took the chair during discussion of the application.
| 20/5303N | School Farm, Wrenbury Road, Cholmondeley, SY14 8HN Demolish an existing hardwood and single-glazed veranda and replace with hardwood double-glazed orangery. |
RESOLVED: That no comments be made on planning application No. 20/5303N.