1. CIPFA North West – Audit & Governance Group Autumn Seminar Regeneration Schemes 11 October 2013 Neil Bellamy, Director

2. 1 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Regeneration Strong local economy Improved amenities Better Housing Thriving, vibrant town centres “To double the Borough’s population by 2030, with a complementary increase in jobs, prosperity and quality public services” “Fulfil Corby’s potential as a dynamic, fast growing and increasingly prosperous borough, distinguished by the quality of its built and rural environment and calibre of its retail, cultural and sporting facilities”

3. 2 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Four schemes

4. 3 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Regeneration schemes - characteristics Council Restructures – Change – Financial Pressure Visible Unique Multi agency Multi funded Grant conditions Contractual High Value Volatile Inspirational

5. 4 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. What we covered Organisation Checks and Balances Governance Arrangements Internal Control Financial Management Organisation Checks and Balances Project Management Organisation Checks and Balances

6. 5 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Decisions, decisions...... Who? What? and Where? Legitimacy Budget decisions Documenting Member scrutiny Legislation

7. 6 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Internal Control Contractual procedures-loan guarantee Payment control Budgetary Control A “clearing fund” to buy unsold properties But actually used to fund their construction not included in budget reports

8. 7 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Budgetary Control - Clarity Project Board report £m Projected spend43.9 Budget41.8 Projected overspend 2.1 Committee Report £m Spend to date7.2 Projected spend9.3 Budget9.3 Projected over/underspend 0

9. 8 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Financial Management Risk of overspend Is there one? Who bears it? Clarity on who bears it, how it will be monitored. Certainty of sponsorship/grants Difficult in a complex arena

10. 9 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Financial Management Decisions based on full costs £m Construction 14House sale income18 Marketing & Sales 2 ----- 16 18 Profit 2? Donation of land valued at £3 million Involvement of the Finance Team is key

11. 10 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Project Management Key but difficult job in construction contracts Depth of in house knowledge/expertise Ability to stand back, pragmatism. Grant deadlines

12. 11 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Organisational Controls Chief Financial Officer Role Monitoring Officer Role Whistleblowing Culture Members Internal Audit/Audit Committee

13. 12 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Summary and top three key questions Increased complexity = increased risk – Regeneration is complex One large scheme can stretch in house resources Basics become even more important Importance of finance involvement (you!) Are you aware of all regeneration schemes? Are your audit committees willing to challenge on this? Have you got the skills to assess the risks in such schemes?

14. 13 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Final Reflection Push for regeneration Multi agency Flagship/high profile schemes Financial pressure – search for efficiencies Sound familiar?

15. 14 © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. Thank you and questions Contact Neil Bellamy Director Midlands Public Sector 1 Waterloo Way Leicester LE1 6LP Tel: +44 (0)116 2566082 Mob: +44 (0)7880 788292

16. © 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).