Agenda and minutes

            Apologies for inability to attend were reported from the Deputy Lord Mayor, Councillor Copeland and Councillor Hargey.

            The minutes of the meeting of 20th February were taken as read and signed as correct.  It was reported that those minutes had been adopted by the Council at its meeting on 1st March.

            No declarations of interest were recorded.

            The information contained in the following report is restricted in accordance with Part 1 of Schedule 6 of the Local Government Act (Northern Ireland) 2014.

            The Managing Director provided the Members with an update on Belfast Waterfront and Ulster Hall Ltd.’s (BWUH Ltd) performance for Quarter 4, January – March 2017, and for the year, 1st April 2016 – 31st March 2017.

            She advised the Committee that this was the first year of operation for the new company, as the new Belfast Waterfront venue had only been operational from the end of April, 2016.  It was reported that the final quarter had contributed to an excellent first year for the new business, where the financial performance had reflected a total sales income which exceeded the budget by 13%.

            The Business Support Director reported that, despite several budgetary challenges, the company had generated additional revenue above its predicted budget as a result of increased sales activities and one-off savings in marketing, utilities and rates.  The Managing Director, however, pointed out that the company did not expect to benefit from such savings in future years. 

            The Committee was advised that the surplus would be allocated to the Capital Expenditure Sinking Fund, while the final year-end figures would be subject to external audit.

            The Members were advised that, by year-end, BWUH Ltd. had delivered 34 conferences, generating 51,183 delegate days, which had delivered an economic return of £20.9million for the city. 

            The Members were advised that the company had recently won the award for the World’s Best Kentico website for the Entertainment and Hospitality sector, and had also won the award for Best Website Overall.  A number of Members paid tribute to the success of the staff for their hard work in this regard.

            She provided the Committee with an update on the defects with the Belfast Waterfront building, which included an ongoing issue with the heating/cooling of some of the areas in the Belfast Waterfront.  The Members were advised that the issues had been raised with the contractor.

            A Member requested information on any training which staff had been provided with in relation to the ongoing change within the organisation.  The Managing Director provided a brief update in relation to a number of programmes which the BWUH staff had undertaken, including eighteen participants on the Leadership Programme, and agreed to submit a report to the next meeting with further detail.

            The Committee noted the results of recent Mystery Shopper exercises which had been carried out in the Waterfront venue and was advised that anecdotal feedback from clients had been very positive.

            In response to a Member’s question regarding staff sickness levels, the Managing Director explained that a number of staff had been out of work for work related or non-work related stress and that she had held regular meetings with the Trade Unions.  She advised the Members that she had been made aware of some internal staffing matters but that the Unions had raised no specific issues with her at that time.

            In relation to Brexit, the Managing Director explained that the currency exchange rates had been favourable for their business thus far and that there had  ...  view the full minutes text for item 2a

            (Mr. A. Harrison, Head of Audit, Governance and Risk Services, and Mr. M. Whitmore, Principal Auditor, attended in connection with this item.)

            The Committee considered the undernoted report:

“1.0   Purpose of Report/Summary of Main Issues

1.1     The purpose of this report is to provide Members with an update on the outcome of an internal audit review undertaken at the Belfast Waterfront and Ulster Hall (BWUH) Ltd.

2.0    Recommendation

2.1    That the Committee notes the report. 

3.0    Main Report

3.1    When BWUH Ltd was established a number of measures were put in place to ensure that there would be appropriate governance / oversight.  This included a requirement for the Company to have an internal audit function and an audit and risk committee.

3.2    The Council’s Audit, Governance and Risk Services (AGRS) has fulfilled the internal audit role at the Company and has recently completed an internal audit review at the Company.  This review focused on key financial controls but also examined key governance areas, such as risk and performance management.

3.3    The detailed audit report has now been issued and agreed with Company management and the Company’s Audit & Risk Committee. The executive summary from the audit report is attached in the appendix. In summary, AGRS has been able to provide a positive assurance with the overall outcome / opinion of “some improvement needed” – the 2nd level of 4 possible levels of assurance.  Management has agreed an action plan to address the issues arising from the audit and these will be tracked by the Company’s Audit and Risk Panel.

3.4    AGRS is in the process of developing a three-year internal audit plan which is to be discussed / agreed by the Company’s Audit & Risk Committee.

4.0    Financial and Resource Implications

         None.

5.0    Equality or Good Relations Implications

         None.”

            The Committee noted the contents of the report.

            The Committee considered the undernoted report:

1.0       Purpose of Report/Summary of Main Issues

1.1           The purpose of this report is to provide Members with an update on the progress being made to manage the corporate risk that is of direct relevance to the Belfast Waterfront and Ulster Hall (BWUH) Ltd Shareholders’ Committee.

2.0       Recommendation

2.1       That the Committee notes the reduction in the risk evaluation for 2017/2018 and the arrangements in place to manage this risk. Committee is also asked to note the progress being made to implement controls / measures to reduce the level of risk further and the proposed six monthly process for reporting. 

3.0       Main Report

3.1       Managing Corporate Risks to an Acceptable Level

            The risk of particular relevance to the Belfast Waterfront and Ulster Hall (BWUH) Ltd Shareholders’ Committee is as follows:

3.1.1    ‘Inability to effectively manage business performance as set out in the contract in order to meet the terms and conditions of the Letter of Offer.’

            Progress in managing this risk is set out below.

3.2       Risk Assessment

3.2.1    Following a review of the corporate risk by the Audit Governance and Risk Service, this risk was assessed in terms of ‘impact’ and ‘likelihood’ (using the Council’s risk scoring system, available on modern.gov) as follows:

            Impact – 3 (moderate)

            Likelihood – 3 (possible)

3.2.2    This assessment reflects that ineffective performance management would have significant financial and reputational consequences. Performance management at BWUH Ltd is a key strand of the Belfast Agenda and the ability to achieve some of the anticipated strategic outcomes will require the support of key stakeholders and a number of external partners. Failure to meet agreed objectives and achieve targets would have financial consequences for the Council and impact on the rate setting process.

3.2.3    The impact of this risk is currently evaluated at a 3 and whilst it is difficult to reduce the potential impact if the risk materialises, we are committed to doing all we can to reduce the likelihood of the risk occurring. The risk is subject to regular review and is updated through the Councils corporate system in line with the corporate risk manage update process.

3.3       Current Measures in place to Manage the Risk

3.3.1    There are a variety of controls in place to help manage the risk:

·        Legal agreements (Shareholders Agreement and Services Contract) are in place with BWUH Ltd which were developed and finalised with independent legal advice.

·        A Shareholders’ Committee has been established and meets quarterly. Capacity building and induction training has been completed and the Committee is now well established. The Committee holds the BWUH Ltd to account on contract and business performance issues; they scrutinise the quarterly finance and performance reports ensuring social and financial return on the Council and other funders investments; they control and make decisions on reserved matters; authorise the annual business plan; they also agree and monitor performance framework targets, including decreasing dependency on Council subsidy. BWUH Ltd provides risk assurance on a quarterly basis to the Shareholders  ...  view the full minutes text for item 4.

            The Committee agreed that meetings of the Belfast Waterfront and Ulster Hall Shareholders’ Committee would be held at 5.15 p.m. on the following dates:

·  1st August, 2017;

·  6th November, 2017;

·  22nd January, 2018;

·  19th February, 2018; and

·  21st May, 2018 (AGM).