To receive any questions from members of the public and replies thereto.
Minutes:
The following questions were asked by members of the public:
Barry Warren
My questions relate to item 6 on your agenda:
At the Cabinet meeting on the 16th February 2024 I asked a number of questions relating to finance. The Leader made a response which commenced with this sentence:
“When this administration took control of the Council in May last year, it inherited the significant financial mess that had been left by the previous administrations.”
On page 62 of your papers at paragraph 3.19 the Deputy Chief Executive (S151 Officer) in the first paragraph of his Conclusion writes:
Overall 2022/23 should be considered a successful year with the outturn position for the General Fund and Housing Revenue Account delivered close to, or within, budget. The Council’s performance was strong with the vast majority of our performance targets achieved, despite the significant financial pressures and strain on resources experienced. This achievement should be celebrated.
Question 1
There appears to be a direct conflict between the Deputy Chief Executive, S151 Officer, and the Leader of the Council. Can you advise which statement is correct please?
Question 2
If the Audit Committee approve the FINAL version of the annual Statement of Accounts and formally sign the two documents as recommended in Section 1 on page 25 of your papers, will this signify that Audit Committee support the view expressed by the Deputy Chief Executive, S151 Officer in his Conclusion and celebrate the achievement?
Question 3
On page 152 of the Draft Accounts (page 184 in your bundle) you will see the salary of the 3 Rivers Managing Director was £80,862 for 2022/23. That Director has resigned and been replaced - please will you tell me what is the salary being paid to the current Managing Director?
Nick Quinn
Concerning Agenda Item 7 – Audit Findings:
Issued late, with the Grant Thornton Audit Findings Report, is a Supplementary “Post Audit Adjustments” paper.
You will see on page 42, of the supplementary papers, it states that “To achieve the “soft close” all of the assets held by the company will need sold or transferred to Mid Devon District Council by the end of March 2024”.
My questions are about these transactions - which, by now, will have taken place.
“St George’s Court is being sold to the Council for £8.15 Million”.
Question 1
Did the Council Pay £8.15M for this or was this Asset Transferred at this value to satisfy an outstanding loan amount?
Response from the Deputy Chief Executive (S151 Officer)
The £8.15m was the negotiated sales/purchase price agreed between the Council’s Housing Revenue Account and 3Rivers
“Knowle Lane, Cullompton, will be sold to the Council at book value of £3.66 Million”.
Question 2
Considering the amount paid for the land in 2019, and the value ascribed to it in the Large Housing Sites Options Report presented to Cabinet in August 2023, the amount of £3.66 Million seems very high indeed. It is said to be a “book value”, but in whose “book” was it listed at this value?
Response from the Deputy Chief Executive (S151 Officer)
This was the carrying value in 3Rivers accounts.
Question 3
Did the Council Pay £3.66M for this or was this Asset Transferred at this value to satisfy an outstanding loan amount?
Response from the Deputy Chief Executive (S151 Officer)
The Council paid £3.66m.
“Any unsold units at Hadden Heights, Bampton, will be bought by the Council at the marketed price of £3.135 Million”.
Question 4
Did the Council Pay £3.135M for these or were these Assets Transferred at this value to satisfy an outstanding loan amount?
Response from the Deputy Chief Executive (S151 Officer)
The Council paid £3.135m.
“The investment property will be bought by the Council at book value of £180,000”.
Question 5
Did the Council Pay £180,000 for this or was this Asset Transferred at this value to satisfy an outstanding loan amount?
Response from the Deputy Chief Executive (S151 Officer)
The Council paid £180k.
Addressing the Parking Spaces at Halberton.
Question 6
How many parking spaces did the Council acquire from 3 Rivers?
Response from the Deputy Chief Executive (S151 Officer)
5
Question 7
What was the total value of these spaces?
Response from the Deputy Chief Executive (S151 Officer)
£21.7k
Question 8
Did the Council Pay 3 Rivers for these spaces or were these Assets Transferred at this value?
Response from the Deputy Chief Executive (S151 Officer)
The Council paid £21.7k
The paper did not address the amounts previously impaired on projects:
Question 9
Do any of the above amounts include previous impairment amounts?
Response from the Deputy Chief Executive (S151 Officer)
No, impairment amounts only related to our end of year calculations on outstanding loans. This was based on the likely level of loan repayment that was estimated to be received, based on all available market information at that time.
Paul Elstone
Question 1
At the Audit Committee Meeting of the 26TH March Council, Officers were highly commended for recovering £150,000 from 293 local residents wrongly claiming single occupancy Council Tax discount. This is equivalent to around £500 per individual.
In March 2023 a complaint was made to the Monitoring Officer
concerning an Elected Member benefiting from a grossly incorrect
Council Tax Banding. This as the result its believed, due to an
agricultural occupancy discount and which they were not entitled
also a serious breach of Planning
Permission going back to 2001. No action was taken.
It is important to state that the person concerned was an elected Member of this Council when the serious breach occurred, also when the complaint was made. That they have been both the Leader and Chairman of this Council.
The Monitoring Officer responded to the complainant by saying:
Quote: “I would find that the alleged misconduct happened some 20 years ago and that taking further action would be disproportionate to public money and officer’s time”. Unquote:
Had the correct banding (probably F or G) been properly declared by the Councillor from the very first day of occupancy in 2001 the Councillor would not have underpaid Council Tax by over £30,000 and by £1,800 this year alone. The property was only put into Band C for Council Tax, probably based on the 3 bedroom bungalow submitted plans and assumptions concerning agricultural occupancy agreements.
The situation arose when Planning Permission was granted for the building of a 3-bedroom bungalow, with an agricultural worker tie. The building in fact constructed was a house, with first floor, accommodating 5/6 bedrooms, five bathrooms, dedicated office space and consulting room all in addition to kitchen, utility room and extensive living/dining room. A property that was specifically built in breach of the Planning Permission which one of the occupants has openly admitted.
I am aware that several current Members of this Council are unhappy with this position and quite rightly so. One in fact who encouraged the investigation and complaint.
Will this Audit Committee agree that a full investigation is warranted as to why the Monitoring Officer failed to progress the complaint and that it would be in the public interest to do so?
Question 2
This is not an isolated example of the Monitoring Officer failing to investigate alleged. Member and Officer misconduct complaints. This where there is a clear public interest to do so and with substantive evidence available. This including the Bampton site land purchase. Other examples are available.
Will this Audit Committee fully investigate these matters. This including the Monitoring Officers own, and it’s believed obvious failures. Failures which are bringing this Council into disrepute?
Question 3
Will this Committee ensure that full and necessary remedies are enacted and as a visible deterrent. This as other Councils do?
Question 4
Will this Committee do what is required to ensure correct Council Tax is paid and if possible, retrospectively
Question 5
Can it be understood why more and more residents of this council are publicly questioning then exposing the cover-up culture that seems to pervade this Council including challenging those who promote that culture?
The Chairman stated that written answers would be provided (and attached to the minutes of the meeting) for those questions not supplied in advance.
Supporting documents: