Members received the report of the Chief Executive which provided an update on the arrangements for the local authority’s governance of its wholly owned housing company. The purpose of the governance arrangements was to ensure that the Council had enough control to ensure that its investment was protected, returns on investment could be secured and that the Rother District Council Housing Company (RDCHC) activity was in keeping with the strategic objectives of the Council.

The Audit and Standards Committee (A&SC) considered the governance arrangements for the management and monitoring of the Council’s significant partnerships, hence it was the appropriate body to receive updates on the governance of RDCHC.  The update had been informed by, ‘Local Authority Company Review Guidance (Local Partnerships LLP 2021)’ and the recent internal audit and associated recommendations (reported elsewhere on the agenda). Appendix A to the report provided an overview of the present structure of RDCHC, the shareholder’s governance structure for its company and the interface between the two entities.

The Council had appointed a Shareholder Representative who was the Chief Executive of the Council. The Shareholder Representative had created a Shareholder Representative Oversight Group to ensure the Housing Company’s activity was governed effectively by the Shareholder. The Shareholders Representative Group meetings were held quarterly, with meetings taking place in March, June and October 2023 and January 2024. The Terms of Reference for the group could be found at Appendix B.

Over the previous 12-month period, officers had been increasing their efforts to address those elements of the governance arrangements that remained outstanding. To this end, the Council’s Governance Improvement Tracker had been updated to include those items from the recent internal audit that were not already included. The Council was closely monitoring the progress of these outstanding items with its Internal Audit colleagues and these were outlined in the report.

In addition, the Council had a new Monitoring Officer and Deputy Monitoring Officer. These new colleagues would be reviewing the Council’s arrangements for governing the RDCHC and the Council would continue to improve these.

The following points were noted from the discussion:

•     Appendix A to the report had not been updated correctly in line with the Terms of Reference;

•     the Head of Housing and Regeneration confirmed that the Shareholders Agreement and Service Level Agreement had been signed, the Working Capital Agreement  was subject to further legal advice, the Procurement Policy and the Conflict of Interest Policy were still being finalised; and        

•     clarification whether there were three Council Board Members would be provided  to Members of the Committee after the meeting.

RESOLVED: That the arrangements for the local authority’s governance of its wholly owned company be noted.

(When it first became apparent, Councillors Barnes and Drayson each declared an Other Registerable Interest in this matter in so far as they were the former Vice Chair and Board Member respectively of the Rother DC Housing Company and in accordance with the Member’s Code of Conduct, remained in the room during the consideration thereof).

(Councillor Coupar declared a Non-Registerable Interest in this matter in so far as she was a Board Member of the Rother DC Housing Company, and in accordance with the Members’ Code of Conduct remained in the room during the consideration thereof).

(Councillor Thomas declared a Non-Registerable Interest in this matter in so far as he was Chair of the Rother DC Housing Company, and in accordance with the Members’ Code of Conduct left the room during the consideration thereof).