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MAIDSTONE BOROUGH COUNCIL

CABINET

13 FEBRUARY 2013

REFERENCE FROM THE AUDIT COMMITTEE

PROPERTY INVESTMENT GOVERNANCE ARRANGEMENTS

The Audit Committee, at its meeting held on 14 January 2013, considered the response of the Cabinet to its reference seeking assurances that the governance arrangements relating to property investment are sound and that controls are in place to minimise the risks to the Council associated with this new area of activity.  A copy of the reference from the Cabinet is attached as Appendix A.  It was pointed out that there was an ambiguity in that although the reference stated that the Member Advisory Panel relating to Property Investment had no decision making powers, the Panel did, in accordance with its terms of reference, have the power to reject proposals put forward by the Officers for potential property investment.

RECOMMENDED:  That consideration be given to the amendment of the terms of reference of both the Member Advisory Panel relating to Property Investment and the Property Investment Cabinet Committee to clarify the intention that decisions to either reject or take forward property investment proposals are to be taken by the Cabinet Committee based on the recommendation of the Advisory Panel, supported by a robust financial business case, and having specific regard to the CIPFA Code of Practice.