The Governance and Audit Committee of Swansea Council met on Wednesday 29 January 2025 to discuss the development of a contract management framework, the internal control environment of the Place Directorate, and the financial sustainability of local government. Key decisions included noting the progress on the contract management framework and approving the internal control environment report for the Place Directorate.

Update on the Development of a Contract Management Framework

Chris Williams, Head of Commercial Services, presented an update on the development of a contract management framework. He explained that the framework is still in draft form due to significant changes in the public procurement landscape following the UK's exit from the European Union and devolution in Wales. New legislation, such as the Social Partnership and Public Procurement Act (Wales) 2023, will introduce a socially responsible public procurement duty, requiring consideration of social, economic, cultural, and environmental aspects. Guidance on this is still awaited, with implementation expected by late summer.

A new UK-wide central digital platform will be implemented by March 2025, requiring all contracts valued at £25,000 or more to be published. This will necessitate system and training updates. The draft framework outlines key areas of focus, including supplier selection, due diligence, contract development, termination, renewal, and staff training. The committee noted the progress made on this framework.

Place: Internal Control Environment 2024/25

Mark Wade, Director of Place, presented the internal control environment report for his directorate. He highlighted that the Place Directorate is responsible for frontline services including highways, building services, waste management, property, housing, public health, planning, city regeneration, cultural services, parks, and cleansing. Key risks for 2024/25 include pressures around homelessness and temporary accommodation, and the ambition to achieve net zero by 2030. Financial pressures on the Housing Revenue Account (HRA) were also noted. While data breaches have slightly increased, the directorate is focusing on staff training and awareness. The report detailed risk management, performance monitoring, planning, budget management, fraud prevention, compliance, programme assurance, data security, and partnership governance. The committee noted the report, with a commitment from officers to reflect requested changes in future reports.

Internal Audit Review of the Accounts Receivable Function

Ness Young, Director of Corporate Services, provided an update on the Accounts Receivable (AR) function. She reported that significant progress had been made in reducing aged debt, with a 74% reduction in invoices outstanding for over 365 days and a 50% reduction in the total balance owed since January 2024. Over £1.1 million in invoices have been cleared in the past year. Of the 28 audit recommendations, 26 are complete, with the remaining two on track for June 2025. The report detailed the status of outstanding debt and the proactive recovery efforts. The committee noted the significant improvement in debt management.

Audit Wales - Financial Sustainability of Local Government

Gareth Jones from Audit Wales presented a national summary report on the financial sustainability of local government. The report highlighted that the financial position of local government in Wales is unsustainable over the medium term without significant action. While councils have arrangements to understand their short-to-medium-term financial positions, longer-term plans are less developed. The report noted weaknesses in the delivery and monitoring of savings programmes at Swansea Council. Concerns were also raised about the funding formula, the timing of the local government settlement, and additional responsibilities placed on councils without commensurate funding. The committee noted the report for information.

Revenue and Capital Budget Monitoring - 2nd Quarter 2024/25

Ben Smith, Director of Finance, presented the revenue and capital budget monitoring report for the second quarter of 2024/25. The report indicated an estimated service overspend of £13.930 million, with significant pressures in Social Services (£12.198 million) and Homelessness (£2.7 million). Mitigating actions include the use of the Contingency Fund and Inflation Provision. The report detailed the progress on savings delivery, with 69% of the target forecast to be achieved by year-end. The committee noted the report for information.

Developing the Inphase Risk Management Application (Verbal Update)

A verbal update was provided on the development of the Inphase risk management application. Progress has been made in building the application and importing data from the existing risk register. A development day was scheduled to address any glitches, with a plan to roll out the system to all users from February 10th. The committee noted this update.

Annual Review of Performance 2023/24 Summary

Lee Wenham, Head of Communications and Corporate Planning and Performance, presented the summary of the Annual Review of Performance for 2023/24. The report highlighted achievements and challenges across the council's six well-being objectives, including safeguarding, education, economic development, tackling poverty, climate change, and financial resilience. The committee noted the report for information.

Quarter 2 2024/25 Performance Monitoring Report

Lee Wenham also presented the Quarter 2 2024/25 Performance Monitoring Report. This report provided an overview of corporate performance for the second quarter. The committee noted the report for information.

Governance & Audit Committee Action Tracker Report

Jeremy Parkhouse, Head of Democratic Services, presented the updated Action Tracker Report. This report details actions recorded by the committee and their outcomes. The committee noted the report for information.

Governance & Audit Committee Work Plan

Jeremy Parkhouse also presented the Governance & Audit Committee Work Plan for 2024/25. This outlined the planned agenda items for future meetings. The committee noted the work plan for information.