FINANCE COMMITTEE

Minutes of a meeting of the Finance Committee held at 7.30pm on Tuesday, 18 March 2003 at The Institute. Councillor Lewis, Chairman, presided over Councillors Chambers, Fisk, Stevens and the clerk. No members of the public were present.

034     APOLOGIES FOR ABSENCE were received and accepted from Councillor Anderson.

035     DECLARATIONS OF INTEREST - None.

036     MINUTES OF THE PREVIOUS MEETING

It was reported that the minutes of the meeting held on 20 November 2002 had been received at the Council meeting held on 28 November 2002 without adverse comment. The minutes had subsequently been adopted and signed as a true and correct record at the Council meeting held on 2 January 2003. It was therefore resolved to accept the minutes as read.

037    MATTERS ARISING None.

038     REVIEW OF CURRENT FINANCIAL POSITION

Members reviewed the current position against the predicted out-turn set at the Precept Meeting and agreed to recommend that:

1.    The un-spent portion of the Bus Shelters budget (£875) is earmarked in the accounts to enable completion of the bus stops project which has been delayed while further information is sought in connection with the siting of the proposed bus shelters.

2.    The un-spent portion of the Cemetery Committee (£2,562 max. depending on timing of completion of outstanding works) is earmarked in the accounts to enable the completion of the memorial safety project and the replacement of the cemetery tap.

3.    As there is no realistic prospect of recovering the cost of removing posters from the bus shelters (£30) the Council should write a letter of censure to the organisation concerned.

4.    In view of the recent breakdown of the office printer/copier and other serious problems with the computer system, a loan machine from South Kesteven District Council, replacements be obtained as soon as possible. As the anticipated cost is in the region of £1,100, the clerk was requested to obtain three quotes. It was noted that although a provision had been made to equip the office with a computer system when it opened in 1999, the loan machine had meant this had not been utilised and the funds had returned to the general reserves. There is no specific provision for this expenditure in the budget for the forthcoming financial year. The Administration budget for 2003/04 was closely scrutinised for potential savings but none were found to be forthcoming. If the recommendation is accepted the cost of the equipment should be treated as an exceptional, unforeseen expense and met from the reserves.

Members of the Committee were concerned that the clerk did not always make a claim for overtime payments and requested that this be properly addressed in the next financial year.

Information concerning proposed changes to the Local Government Pension Fund was noted as having no effect on the Council’s current finances.

039    FINANCIAL MANAGEMENT & RISK ASSESSMENT REVIEWS
    
.1    INFORMATION HANDLING & STORAGE

The clerk reported that work had commenced and should be completed by 30 June 2003.

.2    BANKING ARRANGEMENTS

Members reviewed the Council’s banking facilities in terms of their current effectiveness and against services offered by competitors.

The clerk collated information on bankers who either have facilities in Market Deeping or can accept debits and credits via the local Post Office and also obtained feedback from other Lincolnshire Parish Clerks on how their arrangements worked.

It was noted that there was very little to choose between the bankers on the type of service offered and the interest rates paid but it was noted that some did not offer free banking. All banks have now, by law, tightened security arrangements for identifying new customers in the light of money laundering and terrorist operations. It was noted that to change bankers would require every signatory to present themselves at the nearest branch with two items of identification and a recent utility bill. Until this process was complete, the Council would be unable to operate financially.

Members were content with the service provided by Barclays Bank over recent years. Although the number of authorised signatories would be reduced from 15 (+ clerk) to 5 (+ clerk) with effect from the next council, it was felt this was the most convenient and appropriate way to conduct the Council’s financial affairs as, providing the selected signatories were already on the account or existing personal customers of the bank, it would not be necessary to go through the vetting process.

It was therefore agreed to recommend that the Council continued to bank with Barclays Bank Plc and review the position again in two years.

.3    ASSET MANAGEMENT & INSURANCE COVER

The Parish Council’s current insurance cover was reviewed in relation to the asset register in anticipation of the next renewal on 1 June 2003. Members were satisfied that appropriate levels of cover were in place for mandatory elements but with regard to optional cover, it was agreed to recommend that:

1.    Property damage cover for play surfaces and play equipment on the Jubilee Playing Field is deleted on the grounds that they are redundant items and that cover for the cemetery shed had already been removed as requested. This will reduce overall cover by £10,774.
2.    The Insurance Schedule be corrected to read 2 strimmers and 1 mower’ (replacement value unchanged).
3.    The Council continues to insure all assets for property damage and ensures that replacement values are indexed-linked to cover inflation.
4.    The Asset Register and Insurance Schedule accurately reflect each other.
5.    The cost of personal accident cover for members over the age of 75 years is ascertained.
6.    Cover for loss of revenue continues not to be required as the Council derives little income.
7.    Clarification is sought as to the extent of the cover in section 3 Legal Expenses
8.    The Council continues to insure with Cornhill until the end of the current long-term agreement (1.6.05) and at that juncture obtains comparative quotes.

.4    POLICY STATEMENTS

The clerk presented policy statements on Equal Opportunities and Data Protection. Following the addition of the word minority’ to ethnic origin’ on page 4 of the Equal Opportunities Statement, it was agreed to recommend that these policies be adopted.

.5    CLERK’S CONTRACT OF EMPLOYMENT & JOB DESCRIPTION    

It was noted that a number of changes had occurred to the clerk’s Contract of Employment since appointment and that under the Freedom of Information Act 2000, this information was available to the public on demand. It was agreed to recommend that the Contract be revised and once accepted by all parties, to provide Councillors with a copy of both documents for their records.

040    DATE OF NEXT MEETING - To be advised in due course.

The meeting closed at 8.20pm.