Agenda, decisions and draft minutes

The Chair welcomed everyone to the meeting. The Chair confirmed that Democratic Services have received apologies from Cllr J. Curtice, Cllr V Holland and Cllr D. Cundy.

The Chair welcomed everyone to the meeting. The Chair confirmed that Democratic Services have received apologies from Cllr J. Curtice, Cllr V. Holland and Cllr D. Cundy.

There were none.

There were none.

To approve the minutes of the meeting held on 18/10/24 as an accurate record of the proceedings.

The minutes of the meeting held on 18/10/24 as an accurate record of the proceedings.

The minutes of the meeting held on 18/10/24 as an accurate record of the proceedings.

The report was noted.

Charlotte Hodges Lead Principal Auditor for Pembrokeshire County Council gave members an overview of the report as included in the agenda pack. Members were advised that the report outlined the terms of reference that the Joint Committee approved at their 17 December 2024 meeting to allow the annual Internal Audit Review of Swansea Bay City Deal for 24/25 to be undertaken.

Officers explained that the Terms of Reference details the areas the Internal Audit review will focus on, which is separately listed within Section 2 of the Appendix these included the governance, project management and monitoring, internal control, and financial and risk management arrangements in place.

Members were advised that the work programme has been prepared in accordance with the requirements of the Public Sector Internal Audit Standards and was developed in consultation with the Swansea Bay City Deal, Section 151 Officer, Monitoring Officer and Portfolio Director prior to submission to the Joint Committee for their approval in December.

Officers anticipate the field work will begin early 2025 and will be completed by the end of March 2025.

Members were informed that normal reporting procedures will be followed, allowing the draft report to be considered by officers before the final report is presented to the Joint Committee.

Members did not have any questions.

The report was noted.

The report was noted.

Sam Cutlan-Dillon, Skills and Talent Programme Manager of the Programme gave members an update presentation on the progress made and the status of the skills and talent initiative.

Members were informed that the programme aims to:

·        Deliver 2,200 additional skills

·        Support 14,000 individuals to achieve higher levels by 2030

·        Create 3,000 new apprenticeship opportunities from Level 3 to degree apprenticeships

·        Develop 20 new and updated course frameworks to provide a clear educational pathway
The pillars are digital construction, energy, smart manufacturing and life science and well-being and to create 2 centres of excellence.

·        Sam Cutlan-Dillon created a skills barometer to assess job creation from the eight city deal projects, current training provisions, and identify gaps. This allows partners and stakeholders to create new qualifications, pathways, and apprenticeship routes as needed.

·        Members were informed that as of December 2024, 27 pilot projects been approved and are now mostly in delivery.

·        There are 6 new apprenticeship routes developed from level through from level 2 through to degree in user experience with a further 4 apprenticeship update/developments also in t This has been approved that that work is ongoing.

·        Discussions are ongoing regarding future pilot projects with several partners and stakeholders to create a steady pipeline of new skills.

·        Members were informed that the business case can pivot and change and react to changes within the region and there are several concept ideas for centres of excellence currently identified.

·        Officers advised it is very industry led in terms of gaps in terms of recruitment needs and this feeds into skills solution group and through skills solution group to RSP board.

·        There are currently 3217 higher skilled individuals.

·        The target for increased skills is 2,200 and that has been exceeded with a current total of 33,846.

·        There are currently 184 apprenticeships with a target of 3000.

·        There are 32 currently for course creation and this exceeds the target of 20. Officers expect this further increase.

·        Members were informed that for the Centre of excellence target is 2 but is currently at 0, this is expected to be achieved by the end of the programme focusing specifically on Manufacturing and Energy.

·        Officers’ public investment currently amounts to £1.5 million.

·        Private investment through the pilot projects amounts to just over £1,580,000.

·        The private apprenticeship investment is £1,435,000.

Members noted that there was an article in the press regarding the shortfall in apprenticeships Members asked for examples of the number of highly increasing skills.

Members asked in what sections the apprenticeships has fallen behind in the in the programme?

Officers explained that they are working across five sectors to enhance higher skills, Members were informed that the business case was approved in 2021, with pilot projects starting that year and lasting up to two years. Many have completed, with some projects now closed or moving to closing. Officers used the example of Passport for Employment program in Pembrokeshire, which focused on engineering offshore wind energy. The pilot project has just concluded, successfully meeting all targets for higher-skilled  ...  view the full minutes text for item 5.

The report was noted.

Stephen Aldred-Jones Regional Finance Manager advised members that the audit of accounts report 23/24 went to the Joint committee in November. Members were advised that the Auditor General for Wales is responsible for providing an opinion on whether the statement accounts for demonstrate a true and fair view of the position of the Swansea Bay City deal as of the 31st of March 2024.

Officers explained that the ISA 260 report summarises the findings undertaken from the audit.

The audit gave an unqualified opinion in the accounts and there were no misstatements identified in the accounts which remain uncorrected.

Members were advised that the audit concluded that the financial statements do give a true and Fairview of the City deal as of the 31st of March 2024 and obviously income and expenditure for the year and that the accounts have been properly prepared in accordance with the legislative requirements.

Officers felt that this was another clean audit of the accounts for the City deal As for as per the previous year.

The report was noted.

The report was noted.

Stephen Aldred Jones Regional Finance Manager advised that the statement of accounts went to scrutiny on the 24th October 2024 and it was the pre audit. This report is now the post audit.

Members were advised that as per the ISA 260, there were no material changes required and very, few minor changes required following the audit.

Officers highlighted an error on the "related parties note" on page 39 of the statement, for which they apologised. This error was identified during the audit but did not affect any figures in the statement.

Members were advised that it was just an error in one of the notes. Officers also confirmed that there were some minor wording changes to help clarify the notes and the statement.

The report was noted.

The report was noted.

Stephen Aldred Jones introduced the Quarterly financial Monitoring Q1 and Q2 24/25 as included in the agenda pack.

Members asked why City deal gives back £3 million and why isn’t it held centrally for projects as they progress.

Members noted significant slippages in the Homes as Power Stations project and inquired if officers are confident that house builders will proceed. They also asked about the potential for further issues.

Members asked if there was an over or underspend with Swansea Arena.

Officers confirmed a slight underspend with the arena project.

Members inquired about the status of the Innovation Precinct project and whether it is still proceeding.

Officers advised that they weren’t sure and that once the quarter three figures come back, they will have a great understanding.

Members asked if there was slippage elating to Supporting Innovation and Low Carbon Growth.

Members inquired if the digital infrastructure project has received additional private sector funding for further work.

Officers explained that for digital infrastructure, an annual review of the private sector is undertaken, and these figures are a year lag from the previous financial year. A private company do the review of the private sector and then they work out how much private sector money has been invested.

Peter Austin, Business Engagement Manager, confirmed additional private sector funding. Officers explained that the digital project is monitored with a one-year lag, as they need to complete the work before assessing its impact. This delay makes forecasting challenging and causes fluctuations between forecasts and year-end outcomes.

In relation to the £3 million interest question, members were advised that at the end of financial year for 23/24 there was £54.4 million of City deal grants sat in the account.

The grant money is due to partners, but it can’t be paid out to partners until they claimed it until they've spent the money. So that sat in the account generating £3 million in interest and this will be paid to each local authority based on a proportion of a city deal grant.

Officers used a hypothetical example of a £241 million city deal grant. If Swansea had a £24.1 million city deal grant, they would receive 10% of the £3 million interest.

Interim payments are also made through the year to help each local authority offset the additional rising costs of undertaking their city deal projects. Members were advised that it is down to each local authority how they use that interest.

Members asked if it is revenue a month or if it is capital?

Officers advised that it is revenue as it is interest.

In relation to SWITCH there has been an increase in construction costs and which needs a review of the cost plans however, the project is now progressing to REBA Stage 4 with planning due to be submitted in quarter three, quarter 24/25 Officers feel that overall they are still expected to or we'll be projecting to spend the full grant element and is just slippage, down to the AMPF  ...  view the full minutes text for item 8.

The report was noted.

Peter Austin Business Engagement Manager updated members on the Quarterly Portfolio monitoring Q2 24/25 as included in the report pack.

Members were advised that one of the most important things the committee should be aware of is ‘risks’ and ‘issues’.

Officers reminded members that concerns about slippage have been raised in past years. They explained that slippage occurs in two ways: physical slippage, which is the actual delivery of projects, and in-year financial slippage.

Officers advised that they took the decision prior to the last joint committee to move these from being risks to being issues because they are affecting the portfolio delivery.

Members were informed that this elevates the importance of slippages. Officers are currently preparing a slippage report for the joint committee and scrutiny committee, examining causes, effects, and possible mitigations to expedite projects.

Members were given the following highlights of the report.

•         The Bay Technology Centre is currently sitting at over 50% occupancy.

•         SWITCH is progressing and is also awaiting a decision by the transition board for extra funding through Tata.

•         Pentre Awel is almost complete and is due to open during this quarter. Officers explained that the dry and wet leisure facilities will open prior to the health elements of it and that is because of the amount of time it will take the health boards to fit out their areas.

•         Members were advised that the digital infrastructure project is making excellent progress across all its three delivery arms.

•         Swansea waterfront will see 71/72 Kingsway building opening soon and officers noted that it is already making a significant impact on the nightscape of Swansea. A pre-opening event has happened, and the building will be open in quarter two this year.

•         The Arena hotel negotiations are progressing well and officers are positive.

•         The Innovate Innovation Matrix with Trinity St David opened during the summer and is over 50% occupied with marketing for the existing space ongoing.

•         Officers also advised that the innovation precinct is progressing subject to a review with the partners due to several reasons.

•         Yr Egin Stage 1 is fully occupied and is progressing well and stage 2 is, is currently being reassessed by the delivery partners, because of a change in what the creative sector might require after the pandemic.

•         Homes as power stations is progressing well but has experienced some slippage, which is down to the delivery partners which are primarily either private or public sector housing associations. HAPS has 2 demo houses up and running which show how effective the HAPS technology can be.

•         The Pembroke Dock Marine project now has all the physical infrastructure works complete including the major construction components within the port and the hangar annexes.

•         The Campuses project is making good progress with the Sketty Lane development procured and they have appointed a contractor for  design and build. This is going to start with the advanced design element. They also have had a successful Vodafone bid  ...  view the full minutes text for item 9.

The report was noted.

Peter Austin Business Engagement Manager noted that members had already referenced the portfolio objective definitions in the last item and explained that the purpose of these definitions is to allow all the projects to work to a set definition of each of these objectives.

Officers explained that some definitions are easier for them to work out than others. The jobs created objective was quite difficult for officers. These definitions have gone through programme board and joint committee who have agreed that that they are the set definitions that the projects will work to when officers are working out their benefit realisation figures and planning their targets.

The report was noted.

The report was noted.

Peter Austin invited members of the joint scrutiny committee to add anything they wanted to the forward work programme.

Members asked what officers meant by the ‘work plan’ and asked if that meant that members give officers suggestions about further detail of a particular project or do officers want details of the financial inputs?

Officers explained that it covers everything from events to meetings. Officers gave the example that if the scrutiny committee wanted to do a visit to one of the projects over and above its normal schedule, this could be added or if members wanted to have a presentation from any of the projects.

The report was noted.

Members requested a site visit to 71/72 the Kingsway

The Members of the Committee noted the Forward Work Programme

Members requested a site visit to 71/72 the Kingsway

The Members of the Committee noted the Forward Work Programme.

Any urgent items at the discretion of the Chairperson pursuant to Section 100BA(6)(b) of the Local Government Act 1972 (as amended).

There were none.

There were none.