Agenda item

The Committee considered a joint report of the Director of Corporate Resources and the Chief Executive, the purpose of which was to outline the background and approach taken to produce the County Council’s 2021/22 provisional draft Annual Governance Statement (AGS) and present the provisional draft AGS for comment prior to sign off by the Chief Executive and Leader of the Council. A copy of the report marked ‘Agenda Item 9’, is filed with these minutes.

Arising from discussion, the following points arose:

(i)         One of the significant governance issues identified in the Provisional Draft AGS related to environmental damage caused to Firs Farm, Husbands Bosworth which was owned by the Council as part of the County Farms Estate. Concern was raised regarding the large amount of money it was going to cost the Council to rectify the damage made by the previous tenants.  It was questioned, given the issue had been identified in 2018, why this issue had not been reported to the Committee sooner and whether there was any insurance in place to cover the costs. In response the Director advised that:

a)  There was always a degree of risk for landlords when hosting tenants, but this type of incident and the scale of criminal offences committed involving criminal gangs was exceptional. 

b)  The Council had been constrained on the information it could divulge on the issues at Firs Farm due to it being the subject of a criminal investigation.

c)  As to whether the Council could do more to find the tenants that had absconded, it would be too resource intensive and not cost productive for the Council to follow-up in addition to the efforts the police (with their level of knowledge and experience on such issues) had already made.

d)  The damage caused had initially been found on visual inspection with further detail being found later on which had increased the costs. The Council had followed up with its insurers to check whether they would cover the rectification cost, but unfortunately the insurance in place did not cover the type of environmental or illegal waste disposal undertaken on the farm.

e)  The Council had been working closely with the appropriate environment agencies from when the issues had been first detected, particularly as there had been issues with livestock. This was usual practice.

f)    The Council always undertook the necessary background checks when considering new tenancy applications for its properties to let.

g)  It was agreed that the final cost of remedial work that was due to be undertaken would be provided to Committee members when this became available.

(ii)    In response to a question raised, officers undertook to consider whether it was appropriate to include the vision and outcome for Affordable and Quality Homes in Leicestershire in the AGS given that housing was not the responsibility of the County Council.

RESOLVED:

(a)    That the Provisional Draft Annual Governance Statement for 2021/22 be supported;

(b)    That the two significant governance issues reported in the provisional draft Annual Governance Statement for 2021/22 be noted;

(c)    That it be noted that the provisional draft AGS 2021/22 will be subject to amendments and that a final draft AGS 2021/22 will be circulated to Committee members before it is published with the draft Statement of Accounts before the end of June 2022;

(d)    That it be noted that the Annual Governance Statement, which may be subject to such changes as are required by the Code of Practice on Local Authority Accounting, has been prepared in accordance with best practice;

(e)    That officers be requested to consider whether it is appropriate to include the vision and outcome for Affordable and Quality Homes in Leicestershire in the Annual Governance Statement given that housing is not the responsibility of the County Council;

(f)     That the final cost of remedial work being undertaken in regard to Firs Farm be provided to Committee members when available.