Falklands : Falklands: Standing Finance Committee (25/11/05)
Submitted by Falkland Islands News Network (Juanita Brock) 27.11.2005 (Article Archived on 11.12.2005)
Find out what happened during this vital Committee meeting.
SANDING FINANCE COMMITTEE REPORT
Compiled by J. Brock (FINN)
A meeting of the Standing Finance Committee took place in the Liberation Room of the Secretariat at 0800 on Friday, 25 November 2005. Present were Cllrs. Clausen AC), Cockwell (RC), Davies (RD), Hansen (IH), Rendell (MR), Robertson (JR), Stevens (RS) and Summers (MS). Others present were the Chief Executive, Mr. Chris Simpkins (CS), the Principal Auditor, Mr. Peter Copp (PC), the Financial Secretary Mr. Derek Howatt (DH) and the Assistant Financial Secretary, Mr. Keith Padgett (KP). Mrs Hulga Burroughs (HB) took the minutes.
The first item on the agenda was to elect a chairman, as this was the first sitting of the new Council. Cllr Hansen proposed Cllr. Summers for the Chair and the nomination was seconded. Cllr Summers then proposed that Cllr. Robertson be vice Chairman. Cllr Cockwell seconded the proposal ad Cllr Robertson accepted.
After declarations of interests, the minutes of the meeting held on 23 September 2005 were confirmed and signed and matters arising from them were discussed. Keith Padgett said that in 5.1, the Director of Education had found some savings but a full report would be given to the December Standing Finance Committee. Education dominated the matters arising with passage costs and equipment being discussed. Matters regarding the Tamar were also brought up.
Keith Padgett presented the Financial Manager’s report, which he described as complex. It updated Members on details of financial transactions that occurred during the financial year 2005/06. He explained that departments had expenditures they knew about, like wages that came out at certain times of the month. Other payments came out in lump sum form. One problem with the MOD not invoicing properly was solved.
Our position at the end of October 2005 was better than it was last year at this time, with each department under budget and realising better savings compared to last year at this time. Besides departments, several funds were reviewed. Fund Transfers and Transfer Payments and the Capital Equalisation Fund were explained in detail.
Next there was an investment Manager’s report where the difference between income generating investments and ready cash investments was discussed. Investments were made in order to generate income and those investments couldn’t be touched. But they were not the same ones that were made to create income that could be spent.
Mr. Peter Copp, the Principal Auditor, presented his report to the Standing Finance Committee and explained that the method of audit had changed to add Government assets like Fixed Assets, Stores and Stocks, a Debtors Ledger and Liabilities Capture to the items being audited. He explained the benefits of recognising income and expenditure when they come due as well as assets and liabilities. He calls the overall balance sheet Taxpayers Equity.
Resource accounting was a more complete picture of what was going on. The identification of exceptional one-off items and noting underlying patterns was useful to all departments. He said it was practical to have an end of year routine and areas of judgment in accounting policies against background of GAAP, an SFC position of stewardship to challenges and audit committee type functions.
The external Audit was discussed with the final visit focusing on the balance sheet. Mr. Copp had worked closely with the Treasury team especially with asset tracking. He then went into the form the audit report would be taking, focusing on non compliance with financial instructions. There would be a management report in due course. Internal auditing was important, with departmental and cross-cutting assignments proving to be vital and risk based working models preferred. He mentioned that though reporting had improved it was a bit behind. There were special assignments like compiling a domestic fuel formula.
It was recommended that project management processes need to be constantly updated through training and that staff had to be won over to a new system even though it seems complicated. It needs to be monitored. There really wasn’t a software problem but an attitude problem amongst some staff. They have to be won over.
Estimates and budget balancing, Statutory Corporations, and other matters like team achievements were included in Mr. Copp’s extensive report.
The next item on the agenda was the items from the summary of the Executive Council Meeting held on 27 October 2005 can be considered in the public domain and which are still not in the public domain. Item 4, the Gordon Forbes case has changed since the Committee meeting in that a press release has been provided by FIG. it will be published in the context of the Daily Record.
Item five is still subject to contract negotiations and will not be made public yet. Item 11, the Stanley Dairy will go into the public sector and item 12 will not. Item 16, Regulations concerning Civil Aviation will go in the Public sector.
As for the Stanley Dairy, it is not a going concern because it is not a going concern. It is now contained within FIDC’s remit and they are prepared to invest public money. Cllr. Clausen questioned whether it was enough money to buy pasteurising equipment.
The Inspection of air Safety Services is an international self regulatory requirement of the CAA. A. S. I. will inspect but eventually will charge and the money has to be found somewhere.
Pen ultimately, the Committee determined items from the summary of the Executive Council Meeting held on 24 November 2005 can be considered in public and to resolve the items. Item 4 was not going into the Public Domain yet. No 5 is. No. 6 is not and No 7 is.
With regard to No. 7: The Police Investigation in to the suspension of two senior Police Officers, the cost is estimated at £102,000.00 with additional expenditure should a prosecution take place.
Cllr. Davis said that perhaps more money had to be found if the case was to be heard by a special judge, with Cllr. Hansen saying we would have to take it on the chin.
Lastly £24,000.00 was agreed for the services of the Principal Auditor.
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