Income tax 2022 2023 depreciation makers overview let's do some wealth preservation with some tax preparation support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need then can be done on a YouTube page we also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable so once again click the link below for a free month membership to our website and all the content on it most of this information comes from publication 946 how to depreciate property tax year 2022 you could find on the IRS website irs.gov irs.gov looking at the income tax formula we're focused on line one income remember and the first half of the income tax formula is in essence and income statement although it's just an outline a scaffolding other forms and schedules flowing into these line items one of those the schedule see business income in essence and income statement in and of itself with business income minus business expenses the net business income rolling into line one of the income tax formula page one 1040 noting the schedule see would roll into the schedule one which would roll into the first page of the form 1040 line number 8 the schedule see format is the profit or loss from business has an income section and expenses section like an income statement we're focused on the expenses in particular the depreciation remembering that even if you're on a cashed based system you will have to do an accrual based type thing when you purchase property plants and equipment because of the big difference between the time in which you consumed the goods in order to help generate revenue and the time that it's that you paid for it possibly so even if you use a cashed based system we have to have that deviation generally so once we do that then we have to think about our depreciation schedules how we're going to be depreciating these fixed assets over their useful life which lines up to some degree with accounting concepts but remember the tax code will deviate from the accounting concepts so we have to use the tax code to figure this stuff out sometimes we'll have similar concepts the makers methods now will be similar to like a double declining balance oftentimes possibly using some kind of half year or mid quarter convention or something like that and sometimes the tax code will input some things that aren't bookkeeping conceptual ideas to stimulate the economy or do whatever they're trying to do those are represented with like 179 deductions and special deductions alright so now our focus is figuring depreciation under makers now that's going to be one of the general kind of conceptual frameworks for calculated depreciation under the tax law system noting that you always want to think about this as first starting from I would think about it first starting conceptually from a straight line kind of depreciation method and then layer on top of that some of these other concepts accelerated depreciation methods double declining often in a makers kind of situation and then other tax kind of related things to that which would be the 179 deductions and the special depreciation and that kind of stuff so introduction the modified accelerated cost recovery system the main kind of system you'll be dealing with oftentimes with taxes is used to recover the basis of most business and investment property placed in service after 1986 makers consists of two depreciation systems the general depreciation system the GDS and the alternative depreciation system the ADS generally these systems provide different methods and recovery periods to use in figuring depreciation deductions so if you have experience from a bookkeeping standpoint generally accepted accounting principles you might have more leeway in those cases to kind of figure what the useful life is for a particular piece of property and the related depreciation methods you're going to use straight line double declining and so on your objective there is to get your financial statements correctly aligned for reporting purposes and decision-making both in total and external oftentimes for management and for external investors or banks or whatever as well the tax code however you're concerned generally from a taxpayer standpoint to get as big a deduction as soon as possible and from the tax code side of things then what they're going to do is try to limit you in terms of assigning more strictly what kind of depreciation is available to you so that the obviously the incentives are a little bit different that also means that we might have different depreciation methods from a book standpoint and a tax standpoint small business needing to decide whether or not they want to have their depreciation just line up to the tax code or whether they want to have different depreciation methods tax software often having the capacity to calculate both book and tax depreciation that's just something to keep in mind when talking to your tax professional or doing taxes and kind of integrate in the bookkeeping side of it alright so which depreciation system GDS or ADS applies so your use of either the general depreciation system otherwise known as the GDS or the alternative depreciation system the ADS to depreciate property under makers determines what depreciation method and recovery period you use you must generally use GDS unless you are specifically required by law to use ADS or you elect to use ADS and like the default then is going to be the GDS general depreciation system unless you're required to deviate that or make an election to do so if you place your property in service in 2022 complete part 3 of form 4562 to report depreciation using makers complete section B of part 3 to report depreciation using GDS and complete select section C of part 3 to report depreciation using ADS if you place your property in service before 2021 and are required to file form 4562 report depreciation using either GDS or ADS online 17 of part 3 okay required use of ADS you must use ADS this is the deviation when we have to use ADS when might that be the case you must use ADS for the following property non residential real property residential real property and qualified improvement property held by the electing real property trade or business so that's going to be as defined in section 163 J7B of the internal revenue code for more information see the revenue procedure 2019-8 on page 347 of internal revenue bulletin 2019-3 available at the IRS website so any property with a recovery period of 10 years or more under GDS held by an electing farming business so farming also have these kind of exceptions that could be applied as defined in section 163 J7C of the internal revenue code for more information there you can see the revenue procedure 2019-8 obviously we're going to put some more of our focus on some of the more normal calculations for for most people so we won't going to deviate too much on on a lot of the special kind of circumstances but you can of course research those on your own any tax exempt use property any tax exempt bond financed property all property use predominantly in a farming business and placed in service in any tax year doing which an election not to apply the uniform capitalism rules to certain farming costs is in effect any property imported from a foreign country for which an executive order is in effect because the country maintains trade restrictions or engages in other discriminatory acts so any tangible property used predominantly outside the United States during the tax year and any listed property used 50% or less in a qualified business used during the tax year discussed later all right caution if you are required to use ADS to depreciate your property you cannot claim any special depreciation allowance we talked about special depreciation in a prior presentation or two discussed in chapter three for property so electing ADS so again this would be deviating from the the general stamp standard to the ADS doing it this time not because you're required to but because you're electing to do that although your property may qualify for GDS you can't elect to use ADS the elect the election must generally cover all property in the same property class that you placed in service during the year so you got it you can't you have to kind of be somewhat uniform within that year however the election for residential property and non-residential real property can be made on a property by property basis once you make this election you can never revoke it which kind of makes sense because we're trying to depreciate something over its useful life so you would think that you're going to kind of lock into it and you can't really kind of deviate from depreciation method once you're once you're going so you want to make sure that you make any elections you want to make in the first year generally you make the election by completing form four five six two part three line 20 so which property class applies under GDS the following is a list of nine property classifications under GDS and examples of the types of property included in each class so note this is a little bit different once again then you might be used to if you do accounting for generally accepted accounting principles because for the tax code they're going to be much more strict in terms of this is the classes that you need to be classifying things under because again the incentives are different with regards to taxes and people have an incentive to try to increase the the deductions upfront for the taxes so they kind of have to be more strict in terms of what you can do with them so so these property classes are also listed under column a in section b of part three of form four five six two so you could check them out there for reference when you're working on taxes take a look at the form four five six two to look at the classes for detailed information on property classes see appendix b table of class lives and recovery periods in this publication so you've got then one you've got the three-year property so three-year property includes a tractor units for over-the-road use b any racehorse over two years old when placed in service so i like to deal with that horse flesh myself at the old track any case see any other horse other than a racehorse over 12 years old when placed in service qualified rent to own property defined later and then we have five-year property five-year property automobiles taxis buses and trucks any qualified technical equipment office machinery such as typewriters calculators and copiers so this is a common property type number of property years so then we have d any property used in research and experimentation and breeding cattle and dairy dairy cattle appliances carpets furniture etc used in a residential rental real estate activity certain geothermal solar and wind energy property and finally any machinery equipment other than any grain bin cotton uh ginning asset fence or other land improvement used in a farming business and placed in service after 2017 in tax years ending after 2017 the original use of the property must begin with you after 2017 then we have another common categorization of seven-year property that includes office furniture and fixtures such as desks files and safes we have used agricultural machinery and equipment placed in service after 2017 grain bins cotton ginning assets or fences used in farming business but no other land improvements you got railroad track any property that does not have a class life and has not been designated by law as being in any other class now you can see obviously the iris has this need to try to be more stringent about classifications here uh so that people don't kind of take advantage and try to get more deductions you know upfront and whatnot but clearly they can't list every single thing imaginable so you've got this kind of bucket group that you would expect to be happening in some cases you might have that gray area where you're trying to determine if something should be three year five year seven year and sometimes you can find that directly in the code here uh in the publications and whatnot and sometimes you would need to do more research possibly uh on that so so in any case certain motorsports entertainment complex property defined later and finally any natural gas gathering line placed in service after april 11 2005 see natural gas gathering line and electric transmission property later


In this presentation, we will take a look at multiple choice questions related to budgeting, going through the question, and then practicing test-taking skills with them. First question. The normal budget period is a, 260 working days, b, monthly period broken out into daily budgets, c, a quarterly period broken out into weekly budgets, d, an annual period broken out into weekly budgets, and e, an annual period broken out into quarterly and monthly budgets. Let's go through this again using the process of elimination. The normal budget period is a, 260 working days. That seems like an odd kind of period. I think they got that number actually by saying if there were five work days times 52 weeks, that would be the 260, but that seems still doesn't seem normal. And then b says monthly period broken out into daily budgets. So a monthly period, a monthly, I'll keep it for now. C says a quarterly period broken out into weekly budgets. Again, you can say quarterly, d says an annual budget, an annual period broken out into weekly periods. So annual is what I would kind of expect. I would think annual. So I'll keep that for now. And then e says an annual period broken out into quarterly and monthly budgets. And that's the one that seems most normal because it's, you've got an annual period, that which seems like what it would be. And then it broke it out into the next component, which would be quarters into force. That seems normal. And then monthly period. So I would think of all these, e seems the most reasonable if I go back through this. I don't think it's, because you're not gonna make a monthly budget each month. We're probably going to make a yearly budget. We're probably not going to make a quarterly budget. We're going to make a yearly budget. We're not going to make an annual budget and then break it out into weeks without first breaking it out into quarters. And then months, we don't make an annual budget and then break it out into 52 weeks. Typically, we usually make an annual budget, break it out in the quarterlies and then break it out in the months. So I think the final answer then will


This is a LibriVox recording. All LibriVox recordings are in the public domain. For more information or to volunteer, please visit LibriVox.org. This recording is by Mark Smith of Simpsonville, South Carolina. The address at the dedication of the National Cemetery at Gettysburg, November 19, 1863, also known as the Gettysburg Address, by Abraham Lincoln. Four score and seven years ago, our fathers brought forth upon this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal. Now we are engaged in a great civil war. Testing whether that nation, or any nation so conceived and so dedicated, can long endure. We are met on a great battlefield of that war.  It is altogether fitting and proper that we should do this. But in a larger sense, we cannot dedicate. We cannot consecrate. We cannot hallow this ground. The brave men living and dead who struggle here consecrated it far above our power to add or to tract. The world will little note nor long remember what we say here, but it can never forget what they did here. It is for us, the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us, that from these honoured dead we take increased devotion to that cause for which they gave the last full measure of devotion, that we here highly resolve that these dead shall not have died in vain, that this nation, under God, shall have a new birth of freedom, and that government of the people, by the people, and for the people, shall not perish from the earth. The Gettysburg Address


the course on dealing with materials data. Presently we are going through the sessions on parametric estimation. We have gone through the session, we have described point estimators such as maximum likelihood estimator and methods of moment estimator. Then we discussed in the previous session the interval estimator as a data presentation with a error and we discussed two cases. One is a case of a normal distribution when the sigma is known, the standard deviation of the population is known. Then we can use normal distribution to come up with the interval estimator of the parameter mean, the population mean mu and when the variance is unknown we can make use of t distribution to come up with the interval estimator for the population mean mu. In this present case very loosely I will try to explain what is interval estimation in general and in particular we will take a case of interval estimator of a variance when population is normal and we will briefly discuss one sided interval estimator and then we will talk about the unbiased estimators, outliers and the robust estimators. So, as I said this general approach I am just trying to give you a general feel as to what is being done when you do the interval estimator. Because we started with an example of data representation it is necessary to have a general understanding as to what is happening in this case. So let us consider that we have a sample of size n from a population with a distribution f theta and theta is an unknown parameter. And now we want to find an interval estimator of theta with some confidence level 1 minus alpha. So, what we want to do is we want to find 3 things. We want to find the 2 numbers a and b such and a statistic that is a function of only data d of x 1, x 2, x 3, x n such that probability of a less than b is 1 minus alpha. And this statistic d will be some kind of an estimator or a function of the estimator of theta. So, in this situation let us see that if we have a probability density plot for a statistic d and suppose it takes this form I have very carefully shown an skewed density function because symmetric density function in terms of normal distribution and t distribution we have already discussed in the previous session. So, I am very purposefully showing a very general density function which is a skewed density function. And now we are looking for a and b such that between a and b the area under this density function curve is 1 minus alpha or we can say that area beyond b is alpha by 2 and area below a is alpha by 2. So, for example chi square is one such skewed function and in that case we are looking for a chi square value a which is chi square with n degrees of freedom with alpha by 2 because once again please remember we calculate the tabulate the value as probability of random variable smaller than the given value a. So, here the probability is alpha by 2. So, I am considering it a is equal to chi square with n degrees of freedom alpha by 2 as a value. And b is the chi square n 1 minus alpha by 2 because this is alpha by 2. So, this area is 1 minus alpha by 2 value. I want to make this clear that this points are understood it correctly. So, let us see some things which I feel I should clarify. See when I write chi square n degrees of freedom I mean a distribution ok. But when I say chi square n minus 1 alpha what I mean is a value such that probability of I would say a value such that probability of random variable t less than chi square n minus 1 alpha is equal to alpha. This is what I mean. This is what I will explain in the next session. So, here what I want to say let us make it clear and this is true not just with chi square but the t distribution as well as others. Whenever we say that chi square with n degrees of freedom I mean the distribution chi square with n degrees of freedom. But when we write chi square n degrees of freedom alpha I mean a point or a value such that probability that t less than this value chi square n alpha is equal to alpha. So, please make sure. So, in this case as I explained this is 1 minus alpha this area is 1 minus alpha. So, A we the area below A we call it alpha by 2 and the area above A we call above B we call alpha by 2. So, the first point A is very clear because you are taking probability of value less than A is equal to alpha by 2. So, A has to be equal to in our notation chi square n alpha by 2 instead of alpha we have alpha by 2. But when you look at the value of B what happens is that probability t less than B when you take that is not alpha by 2 it is probability t greater than B is alpha by 2. So, you have to consider the complete probability which is here which is actually 1 minus alpha plus alpha by 2 which turns out to be 1 minus alpha by 2 and therefore, B becomes chi square n 1 minus alpha by 2. This is what I wanted to explain. So, I hope now it is clear and this is how you look into the table because table always generally gives you this kind of these values. But as I and in this case there is no doubt because this is not a symmetric distribution. So, it always gives you this value and therefore, you have to look up the value accordingly. Now, let us go to the interval estimator of population variance. So, we have an n size random sample from a normal distribution with mean mu and variance sigma square and we want to find an interval estimator of sigma square. So, we are assuming that sigma square is unknown. We have to find a statistic. You remember I said that you have to find a statistic which is in some kind of an estimator or you know a representative of an a function of an estimator of the theta. So, here we are we are taking this as the S square or let me put it this way we change the color to black. So, this is my D, this is what I call Dx1, x2, x3, xn in the previous notation. So, I take this D divided by sigma and I find that it follows a chi square n minus 1 degrees of freedom. Please refer to the previous discussion. I think we have discussed this enough number of times and therefore, we find that this value n minus 1 s square over sigma square will lie between a and b. You remember we already found out a and b in the previous slide.  This is the a and b as we calculated previously. So, now you want to find the interval estimate for sigma square. So, you have to take the inverse you have to take the inverse of this value and therefore, this value will go in the denominator here and this value will go in denominator here. So, remember that this is b and this is a it is because we have taken the inverse function and then multiplied with the then denominator this. So, this becomes an interval estimator and you know that this has a probability 1 minus alpha this is 1 minus alpha and therefore, this provides the interval estimator of sigma square the population variance of a normal population. Now, you see so far we have considered two-sided estimator. It means that the estimator had the bound on two sides probability of a less than b less than b is equal to 1 minus alpha. Suppose we have only one-sided estimator that is we take probability of a less than b is equal to 1 minus alpha or probability d less than b is 1 minus this situation arises. This situation arises when you actually are you know that a certain variable is always greater than certain number or you are not interested whether it is bounded by two sides, but you would just like to know if it is above a certain value or if it is below a certain value. In this case the one-sided interval estimator are needed and I do not think we need to calculate because for every case that we calculated this interval estimator can also be derived using the same statistic b and the probability or the probability density function of that estimator. So, for example, we can say that if you are talking about mu of normal mu sigma square and it is your sigma square is known then you are going to be talking about a less than x bar minus mu over sigma square sigma square root n which is going to be 1 minus alpha and so you are looking for in a normal distribution. This is the normal 0 1, this is 0 you are going to look for a value of a such that this probability is 1 minus alpha. You can look into the normal table and do it. Similarly, if you are looking for the if you are into t distribution you are going to follow the same method. In case it is a chi square distribution with n degrees of freedom then you have a skewed distribution and then you are looking for an a. So, you are going to look for a which is like this, this is 1 minus alpha and therefore you are going to look at this table where this is alpha. Similarly, here also you are looking to the table where this is alpha. So, instead of alpha by 2, alpha by 2 on two sides you will have alpha on one side in the second case you will have alpha on the other side. So, I am not going into the details of this, but it can easily be worked out in the same way as we have done in the two-sided interval. Now, we will move to what is called the unbiased estimators. This is a quality or a evaluation of an estimator which is a for a point estimator. So, we are from interval estimators we are back to point estimator and we will first define what is called unbiased estimators. So, let x1, x2, xn be a random sample from a distribution of theta, theta is unknown and let statistic dx1, x2, xn be an estimator of theta. Then the bias of the estimator is defined by expected value of this statistic minus the value theta, the parametric value theta and if the estimator is if this bias is 0 then the estimator is called an unbiased estimator. So, if you recall from our past we know that I mean our past lessons we know that sample mean is an unbiased estimator of a population mean mu. The sample variance is an unbiased estimator of a population variance sigma square. But remember that maximum likelihood estimator of sigma square which is 1 over n summation xi minus x bar whole square is not an unbiased estimator of sigma square. Please remember MLE of sigma square we generally call it sigma square hat is not an unbiased estimator. It is the sample variance which is an unbiased estimator of sigma square. Sigma square hat maximum likelihood estimator of sigma is not an unbiased estimator of sigma. There is another we would like to talk about another kind of estimator which is called a robust estimator. But before that we would like to understand outliers. What is an outlier? Outlier are the extreme values in the data. So, if you look at any histograms you must have made some histogram plots. Suppose you have got some histograms like this for some data and you find that few points are just lying here. Then these are called outliers in the data. It means that they do not fall into any shape that this histogram takes this separately. So, let x1, x2, xn be a random sample from a population with distribution f with mean mu and variance sigma square. I am not calling it a normal I am calling it a general distribution f which has a population mean of mu and population variance of sigma square. Generally the data falling outside the interval of x bar minus 2 that is the sample mean minus 2 sample variance and sample mean plus 2 sample variance is identified as an outlier. This is a general thumb rule. It is a thumb rule. There is no proof to it. But generally whatever falls outside x bar plus or minus 2s square is identified as an outlier. If you assume the normality of the f distribution in that case x bar minus 2 this interval which is x bar minus 2s square less than x less than x bar plus 2s square is approximately 98%. However, before identifying anything as an outlier it is advised that you better measure the value again to make sure whether it is an outlier or not. It may be a measurement error or we have to realize that when you are experimenting and truly a very different value pops up, a very different value comes up. Maybe you have to sit back and think whether it really indicates some new phenomena or some new theory which you have left out. So, it is not a good practice to just ignore or throw away the outlier data and consider only the good consistent data. It is a good idea to know that these are the outliers in the data and it is very important to report what you are going to do with the outlier when you do the analysis of the data. Now I come to the definition of robust estimator why I am talking about outliers. An estimator D is called robust if it is not affected by any outliers. That is the value of estimator D does not change significantly if there are extreme values in the data. You must be thinking we have heard this before. We have when we were talking about measures of central tendency we said that the average arithmetic average is sensitive to the extreme value while the median of the data is not sensitive to the extreme value and this is exactly what we want to say here. So, if we say that we have a sample then the mean of the mean value of the population can also be estimated by a median of the sample. You remember what is the median if you have odd number of data points then it is exactly the middle value it is xn by 2 which is the median value. If you have even number then you have to take the two middle values and the average of the two gives you the median value. So, if x1, x2, x3 you have n data points and you order them from larger from smaller to the largest in that case the middle value gives you median and that is also an estimator of mean value of the population and as we know that median is robust against affected value and therefore median is a robust estimator of sample I am sorry population mean while average is not sample mean is not a robust estimator of the population mean. So, this is how the robust estimator is defined. Remember that when you find a median of the population you are not going to make any assumption on the shape of the population distribution and therefore median also represents what is known as a non-parametric estimator. This is just for your information that non-parametric estimators are estimators which are based on the ordered value of sample they are based on the ordered values of sample. So, what we would like to say here is that the mean of the population can also be estimated using the median of the sample and median of the sample is a robust estimator because it is not affected by the extreme values or the outliers of the data while mean is. So, though the sample mean is an unbiased estimator of the population mean it is not robust estimator of the population mean is median. So, let us summarize we introduce methods to arrive at interval estimator when population distribution is not symmetric. We try to explain it in a very general terms but we immediately arrive and gave a specific example of chi-square distribution. We also explained how to find the what is also known as cutoff value I did not use this term but whenever you find the values let me write it down here. When you are trying to find a value a and b such that probability of a less than b x1, x2, x3, xn is less than b is 1 minus alpha then a and b are called cutoff values. They are also called cutoff values and we look for it in the respective distribution tables. So, we showed how to look for a and b and how to calculate this a and b in the table. So, we derived the interval estimator for a population variance for normal population which is derived from the chi-square distribution because the sample variance is taken as a statistic and from there the interval estimator of population variance is derived. We introduce the concept of one sided interval estimator. It would be a mere repetition of what we have done for two sided intervals. So, we have not repeated it here. We talk what is called bias of an estimator and what is known as an unbiased estimator. We stated that sample mean is an unbiased estimator of a population mean. Sample variance is an unbiased estimator of a population variance. But we said that maximum likelihood estimator of population variance under normality is not an unbiased estimator of normal population. An unbiased estimator of variance of the normal population. We discussed briefly about outliers. We emphasize that outliers are the extreme values in the data. They should be noted. They should be studied. There should not be a unanimous decision every time remove the outliers. No, because at times outliers represent the measurement errors. So, we may have to conduct the experiment again to make sure that this is actually the value we are getting or it may be an indicator of a new theory or a new phenomena which we had never expected out of the experiment. After brief introduction to the outliers, we introduced what is known as robust estimator. Robust estimator are those which are not affected by outliers and we showed that sample mean is not a robust estimator of a population mean. Though it is unbiased, but it is not a robust estimator, median is a robust estimator of a population mean. Because it does not get affected by outlier as we discussed in the very beginning of descriptive statistics lectures and we also said that median is a kind of a nonparametric estimator of population mean. Thank you.


Rydw i'n broboedol i ddweud yn ganllun o'r ddweud i'r cyflosfennyddol ac yn ddylch i'r cyflosfennyddol. Shadow of the Feir Cymru er mwyn i bleidio i ni, roedd yn cyflosfennyddol yn dda. Mae'n bwysig o'r ddweud i ni'n ddull yn cyflosfennyddol, ond gallu tekst yn y ddechrau, yn yr ègffaith ymlaen o'r cymdeithio, yn gweithio am y trafodaeth o'r cyllideisio. A'r cymyn yr ad Keyser yn cymrydol i hynnym yn cymrydol, ac mae'r trafodydd a hyffordd cymentai ydych chi'n cael gwyllgor, fyddai ddychrau'n sylwg ac os ydych chi'n gweithio cael y rhanon sydd hynny. Fyddai'n fydd wedi ei ddim yn gweithio a'r gweithio, iddyn nhw'n gweithio i'w pryd ac yn ei ddych chi'n gweithio'n gweithio, dweud o'ch yn hoffaeth i ddechrau ti'r tynno l Complet yn gallu'r gweithio ar y sgolfer. Wrth gyd yn dduch yn ôl, dweud oherwydd, yn cael ei wneud o'r llwyll iawn o'r cyfnodol o'r cyfnodol yn cael ei gwych yn yr un i'r rhai, a'i gwybod o'r cyfnodol yma i'r cwm-gwysig. A chi'n gwybod ychydig i adreffu'r gweithio, yn cael ei wneud y cwm-gwysig o'r cyfnodol i'r cwm-gwysig, ac yn cael ei ddylu'r cyfnodol byddwn yn ysgolio. Mae'r cyfnodol yn cael ei gwybod, ac yn cael ei fod yn cael ei ddweud, o'r cyfnodol i'r cyfnodol.又 mae newydd fawr i those Autun 1 o'r agender o'r bobiau c overcome telchidiaeth yma? Mae hynny han Knighton 1 o agender o hija gelatinary seedsau deptol, Norrhyw iawn坐r Maen nhw'n Copper Newytaf o hyd! Norrhyw iawn a chyflwp roedd pa gwbl pan-av singlesio'r training. Arrhyw ni' SFOkay Shoa,お plac, parece unid o bobi a oyster ynddechicken a blaen hon. Gwyddo'n gynaethir? Thank you, Chair, I have my usual general declaration of interest as a non-rimunrated director of South Cams Ltd trading as Urban Street housing. Thank you, thank you Chancellor Sanford. Item three minutes of the previous meetings and we have got two sets of minutes to check today so first of all the minutes of the meeting held on the 15th of January. anyboddi haf anycorections ddylingoddol i'ch gwasanaeth gyrfa ar rhaid i'w pamwyr sy'n gweithio'r cymdeithasol. Diolch i'r pethau. Diolch i'r ddiwrsiau'r cyfrifiadau o'r ddweud i ddechrau'r ddoddau Rhyw Llywodraeth sy'n gweithio'r cyfrifiadau o'r ddoddau cyfrifiadau. Rwy'n credu y gallai gyfnoddau'r dreil o'r cyfrifiadau o'r ddoddau cyfrifiadau. Rwy'n credu â'r hynny. Can we just take that away and just check that we have the right interests there. I appreciate all these different interrelated companies. We have to keep those straight. Any further comments on those minutes? Now you are happy for me to take those as approved? Thank you. We also have the minutes of the extra meeting on the 21st of February. Roedd ni'r gwerthoedd o'r syniadau? Roedd yma, yn swyddfyniadau i gael gweld rhywleidau? Roedd yn i. Mae Ard remaindur iawn, i chi hynny am y rhaglen o'r Fener â Llyfrwydd o penodol i ddwylog, oes i ddim ddau. Roedd ddiddordeb hi'n gwybod rôl i, Ac mae'n hwn yn ymdillol i syniadau i gael â'r rhwng. Ddweud ychwanewch, dechreu ac wrth gŵr ar y dyfod. The purpose of this report is to seek committee approval on the current policy wording, noting that there are no updates from when it was last approved, this time last year, and to provide an update on the use of RIPPA powers since the committee last met. RIPPA regulates covert investigations by local authorities and was introduced to ensure that individual rights are protected, whilst also ensuring that law enforcement and security agencies have the powers they need to do their job effectively. Since 2012, all local authority surveillance authorised under RIPPA has to be approved by a magistrate, and the council's policy and procedures were amended at that time to reflect these changes. The Investigatory powers commissioner's office is responsible for the inspection of public authorities with regards to compliance with RIPPA. The council was the subject of a remote inspection on the 24th of February 2021, and the report concluded that the information provided demonstrated a level of compliance that removes, for the present, the requirement for a physical inspection. The inspector also commented that the policy was a well-written document and easy to read. There have been no changes to the legislation since the last revision of the policy in March 2022. Furthermore, the council has not used its RIPPA powers from the period December 22 to February 23. So, members, the recommendations are contained in page 13 of your report, and they are at A to approve the council's RIPPA policy at Appendix A, and B to note that the council has not used its surveillance powers between December 22 and February 23. Chair, that is my report, and I'm going to leave it there. Thank you. Thank you very much. Do any members of the committee wish to comment on the report? Councillor Williams. Thank you, Chair. There's nothing in particular only to note that this will be the last time that Rory is with us for this meeting. So, thank you, and I do think we should have made him wait to the end, as we normally do, Chair, as it was his last one, but I'll forgive that, as it's a short meeting. And thank you for all the support you've shown this committee. Thank you, Chair. Thank you, councillor. It's a very much like to echo those sentiments. It's been a pleasure working with Rory for the last year, and I know that councillors here have worked with him for longer than that, and we were very sorry to see him go. Are there any further comments on this item? Councillor Markham. Well, I'm not going to let Rory go so easily. I'm going to make him work until the last minute. No, very simply. Thank you, Rory, for this report. Rory, do we often use it much? I mean, I've never really seen much use of it. We used to do a bit of it with a flytip and with some other bits and pieces. Could you give some examples where we've used this in the past? Thank you. So, thank you, Chair. Councillor Hyle has indeed decided to put me on the spot at my last meeting, so thank you for that there. I think it's fair to say the RIPPA powers have not been used in the last number of years. I can't give, well, I probably wouldn't be allowed to give specific examples of when RIPPA had actually been used because the information contained within that would have been confidential, but Councillor Hyle has right that in the past it would have been used primarily, I believe. To try and catch incidents of flytipping, certainly in areas where it was difficult to try and work out who was actually causing the issue. Thank you, Chairman, and I, too, wish Rory the very best of success for the future. Well done, Rory. Thank you. Thank you, Councillor Hyle. Any further comments? Thank you, Chair. I noted on a couple of pages, it's just some questions about language, really, on sort of page 26, and a few after that there's a use of gendered language in the policy. I wondered if it was possible to reword that slightly so there's a bit where he covertly discloses information. Oh, sorry, it starts on 25, actually, and he establishes, he covertly uses, and then on 27, asking him. So, there's nothing major, it's just a few cases where there's he's in hymns. I think page 25, 26, 27, 28. And then I also had a question about the SRO and that being the chief executive. And then I think it says on page 19 that the chief executive is the SRO, and then throughout the report it uses chief executive. An occasion uses SRO, but most uses chief executive. But then when I get to the end, I see that our SRO is our chief operating officer. So I just wondered if that needed some clarification, especially as there's a reference to the chief executive officer having a deputy of the chief operating officer. So I just thought that might need some clarification. Thank you. So thank you, chair. So in regard to the use of the gender language, I apologise for that, and I'm more than happy to take that away and make sure that that is corrected throughout the document. In relation to the point about the SRO, that is the chief operating officer. And again, I'm more than happy to take that away and have a look at it because it would be the onions worth as the SRO and not the chief executive. Now there might be instances where the chief executive is required to take separate decisions, which would be separate and distinct from the chief operating officer as the senior responsible officer. But again, I'm happy to take those away and have a look at them. Yeah, thank you. I'm happy to delegate authority just to make those changes and just clarify exactly where those responsibilities lie. So if you can make those changes and I guess we'll see it again in 12 months in any case and we can check that those have all gone through. Thank you, chair. Thank you, councilor. We may wonder, we're very grateful that you've clarified exactly who's responsible for what it's that kind of thing that can really trip you up if it's ever contested. Are there any further comments on the policy or the lack of use of powers in the last couple of months? I'm not seeing any further comments, so we have been asked to note that the council has not used surveillance powers, which we have done, and we're also asked to approve the council's RIPR policy as contained in the appendix A of our agenda today. Are we happy to approve the policy with the amendment suggested? Thank you. Members, we're now on agenda item 5, the governance risk and control updates. Could I please ask Jonathan Tully to please present this report? Thank you very much, chair, and good morning to you and the whole committee. I hope you are well. This is our regular update on governance, risk and control matters, starting on page 45 of your agenda packs, getting straight into the details. The first thing we have is the internal order updates, and there were three items to report to you at this time. On page 48, we report back on our review of carbon management strategy. This is a new review. We look at data quality of carbon management on a regular basis, but this is the first time we've looked at the strategy. It's going well. The data is good and robust, but we do recognise it's going to be challenging going forward, so what we've agreed with the team is to have some programming reports in the future. I think it is a long term piece of work, so we may wish to complete another review closer to the target time of delivering the strategy, but it's off to a good start. The next one on page 49 is the National Ford Initiative, known as the NFI, Data Quality Report. We recently, at the end of last year, submitted 266,000 records to the Cabinet Office as part of this two-yearly exercise. As part of that process, we reviewed the data so we can complete a data quality assessment of the information held by the council. The headline here is that there's been an improvement in data quality since the previous submission back in 2021, which is good news. There's still opportunities to improve the quality of the data in some areas. That's probably quite typical. I would say this is more about making sure that data is held in consistent ways so that we can work smarter across the organisation rather than problems with the data itself, but it's something worth being aware of as we continually want to improve the way we work. The key thing with this, I think, is that the date was good enough standard for the Cabinet Office because they do introduce financial penalties if it's submitted late or it's not so good enough quality because it can really undermine the whole National Ford Initiative process, which involves all the councils nationally. So the fact that it's good for that and we haven't been penalised is some very good source of assurance there too. Moving on, the next one is the grant assurance energy rebate schemes. So this is another grant scheme that we've recently operated at the council. As part of that, what we did is that we reviewed the internal controls in place and we also sample tested a selection of payments. Everything was okay and so that provided assurance to Peter as the Section 151 officer that adequate processes are in place and then that could be fed back to central governments as we were distributing the grants on their behalf. So moving on on page 50 of the report, this is where we like to just give you an indication of our current work in progress and upcoming work. And then moving on from that, on page 51, we've included a little bit of an update on the National Ford Initiative. I hope you find this useful. What I wanted to do was illustrate the volume of matches that have come back from the NFI exercise. What I must stress is that these are not cases of fraud and errors. They could be, but they could also inevitably be a large amount of what we call false positives where data has been matched and it's something that we need to look into, but it could very well be a legitimate and rational way explanation for it. And this comes back to my other point about data quality being important because if we submit good quality data, it should hopefully reduce the volume of matches that we have to look at. If it's poor quality data, we'd probably expect a lot more matches. So I thought that would just be useful if the committee to get a flavour of what that looks like. Also on page 51, we made reference to the latest guidance from SIPFA on audit committees and since drafting this report, we've had a catch up session with the committee where we've done an evaluation against the SIPFA toolkit. Moving on on to page 52, we have the counter fraud update which is provided by our fraud team. So there's hopefully some useful statistics on there and you can see how it's progressed since the previous reports. And then moving on finally, what we have on page 56 is recent updates. So we've got a very good positive news story about preventing a right to buy fraud, which our fraud manager was keen to share with you. And then also on page 57, we just provide some topical news stories, which we hope you find useful in trying to stay abreast of governance risk and control matters. And again, our fraud manager was keen to include one on breaking the chain, which provides an update of some professional developments in the sector. So I hope that's a useful update. Happy to have comments or questions from the committee. Thank you. Thank you, Mr Tully. It's quite a lot to dig into here, some of the work that's been carried out. So yeah, keen to take some comments from members of the committee. I think Councillor Heather Williams, you wanted to comment. Thank you, Chair. I think there's, we've obviously got the areas of progress which shows some movement, but we've got some new assurances in. But one thing I just wanted to raise on page 55, and I'm not doubting that this is the case, but it's something that when we have the task and finish group we looked into. So it's a particular area of interest, shall we say for myself? On whistle blowing, there has been no referrals, which is good, and what we would expect to see. I'm just wondering from the work that we've done before, whether it's worth though just checking that we have had some turnover of staff and also with remote working and the re-layout of the building. If we, before we did some work about how we signpost and make sure it's clear to people where they go. So I'm just wondering with the sort of reorganisation, I know we talked about putting things on the back of toilet cubicle doors, for example, how we got the right things in the right places, because I want to see zero always, but I want to make sure it's correct as well. People know where to go. Thank you, Chair, that's all from me. Thank you, Jonathan. Did you want to comment on that? I would just echo and say that I agree with Councillor Williams' comments there. It's always a good opportunity to continue review how we're promoting it. We have actually had one referral case come in since writing the report, so which that will appear in the statistics for the next report back to the committee. So hopefully that's also a little bit of evidence, at least that the message is getting out there. But yes, fully agree. Thank you. Yes, hard to say what the desired number of whispering claims is in a particular period, but yes, if it was always zero perhaps we'd be right to ask some questions about that. Oh sorry, Councillor Howe. Yes, thank you. Looking at this report, how do we not compare against comparative district councils? Do you have any idea at all? Thank you. Can I just check, Councillor Howe, is that with regards to whistleblowing still? In general, no, not just whistleblowing with regards to forward in general. Well, with the full statistics I'll probably have to bring in my colleague Peter on that to look at the whole thing holistically. What I can say with the NFI, because I'm the key contact on that in terms of records, we're broadly comparable with other councils. What I also do is a comparison of statistics and data to the previous exercise. And again, I would say it was broadly comparable. It had gone up in some areas, it had gone down in others. But overall in totality about the same volume of records and matches we're coming back. No distinct trends or changes since last time. That's fine, thanks John. Thank you. Does anybody else have comments? They wish to raise that, Councillor Howe. Yes, thank you chair. Well, I think this is part of the section we're discussing on page 56, the preventing of a specific right to buy fraud, which, well, first of all, well done because that's a significant amount of money. But I wondered, as we were discussing in the training session, that Jonathan, your department is a shared service. I wondered, did that come about because of, we have a certain kind of cross flow of information between city and south camps. Is that something that we might want to encourage with other neighbouring authorities or the county council for example? To what extent do we share information to reveal these kind of things? And should we do more of it? Thanks. Yeah, I think it's always handy to share data with other organisations and share intelligence. We also need to make sure that we do it in a lawful way, in a way that's fair, but anything that's going to help get a success and try and prevent fraud in areas is a very positive thing. The National Fraud Initiative is a great example of that, obviously being done on a national scale. But I'm always keen to explore opportunities to do it with more regularity. With neighbouring organisations. There are always sort of opportunities to review that in progress. I don't know if Peter wants to add anything more about the fraud team and some of the activities that have got going on there, but I would agree it's something always worth pursuing. Yeah, so I mean, this incident in particular was really quite pleasing because we made the decision when the corporate fraud team was set up to make some additional checks on right to buy applications. There's standard checks that you have to do by law, but you can do additional checks, so we made that decision to do that. And this is probably the highest profile case we've had, but we believe there are others where further questions have been asked and the application has then been withdrawn. We don't know why it's been withdrawn, but we're fairly confident that in those cases they've realised, yeah, let's withdraw the application. So we've been doing quite a lot of work on right to buy, and we're actually doing quite a lot of work on housing fraud generally because this does seem to be a growth area.  I mean, the recent key amnesty, for example, we spoke to a couple of London boroughs about that because they were interested in doing that. So there's quite a lot of talking amongst other authorities around fraud initiatives, fraud prevention, and things like that. And there's always things that we can learn, but equally I think people can learn things from us, so I think it's been pretty good really. I think it's fair to say a number of authorities probably haven't got the level of the size of the 14 that we've got, but I think more and more authorities are coming to terms with the fact that actually we do need to put more resource into this area because it does seem to be a growing problem, unfortunately. Thank you. Very fair to go on. Councillor Lee. Thank you, Chair. I'm not quite sure whether this is a question to Jonathan Tully or Peter Maddock. I'm just referring to the paragraph at the bottom of page 57, which is about external audit timetables. So in this paragraph it's been highlighted that nationally the completion of audits on time has dropped from 97% in 2015 to 12% in 21-22. And then it goes on to talk about how the Financial Reporting Council will be succeeded by an audit reporting and governance authority. And I wanted to ask whether this change, what sort of impact the change in this body would have on us and our audit processes? Thank you. So, yeah, we had a letter in from D-Luck or whatever they call themselves. And they published that only today, only 12% of audits for 21-22 were completed on time, which only 12%. So, you know, it's quite clear that there's a real issue around being able to audit authorities in a timely fashion. And it was interesting that the review was suggesting that actually the emphasis needs to shift away from getting current audits over the line on time to clearing up some of the backlog. So in response to this, we've had a meeting with the auditors. The audit for 2021 will be starting in June. We haven't got an exact date, but I believe it's going to be the first week of June. We'll be coming back to this committee, well, the next committee, which is July, I think, we'll be coming back with a full plan on how we intend to catch up. And it's going to need proper commitment from the auditor. So there, you know, we're going to come up with a plan and we're going to have to agree that plan between us. And then the committee can have sight of that plan and that plan will have to be set in stone, because basically central government is saying, look, let's get this sorted out. I think it's fair to say that, not just any way, but all of the audit firms have been really struggling, particularly over the last two to three years. And as you can see, it's quite a stark reduction, isn't it, when you consider 97 down to 12%. So the idea is that the new body will hopefully shake things up a bit. But, you know, the real issue, I think here, is with audit firms being able to recruit and keep good auditors. Anyway, speaking to EY recently, they've had a couple of people resign even now. So I think it's a real challenge, but hopefully the new arrangements will improve things. They certainly need to. Thank you very much for that update. Thank you. Any further comments? Councillor Redwell? Sorry, thank you, chair. I had a question on a few different areas. Sorry, it's probably because I'm new and don't understand so much. But on page 48 for the carbon management strategy update, I was wondering what was the high action this is one high action and I wasn't sure quite what that meant. And then in the summary, I was wondering if we're talking about that the council's targets are realistic, if that's the council's emissions or if it's the district's emissions or if it's both the council's and the district's emissions. Thank you. Okay, thank you. Thank you, councillor. Yes, the high level action, first of all, that was to agree that further reports would come back to the council to keep them updated. The targets are based on the council's targets emissions because that's something that's within our control. Of course we do anticipate that we want to help reduce them throughout the district as well. So I think you can just jump in. Did you set timelines for when those reports should be produced and presented to council? Yes, we did. We did. I don't have that right up in front of me, but I can provide that to committee if you like. Because people know, rather than generally, between now and 2030, I think, don't give people a bit more specificity when it happens. Sorry, councillor Redrup, did you have any further comments? Would it be okay to move on to a different topic? Thank you for that on the carbon emissions. I was then looking at the National Fraud Initiative and you've got a graph showing many matches. I just wondered how they prioritise for review. If you have any idea of what proportion you might anticipate to be fraud based on the previous round of analysis. Yes, a very good question. Because that's one we consider ourselves every time the results are published. In fact, recently I had a catch up with members from the NFI team. A few heads of order and key contacts of the NFI system did this to discuss the results. I suppose to answer the first question in terms of prioritisation. The system itself is getting smart all the time. It has algorithms in place to help identify what they view to be the higher risk areas. That provides a bit of steer upon what we focus on. However, there is no substitute for local intelligence and knowledge that we have in our teams at the council to investigate the matches. We will also use that local intelligence to prioritise the matches as well. It is recognised, because there are a huge of false positives in there, that when we look at it the matches will recognise straight away that they are not frauds. In terms of priority, we will focus on the ones which we think have probably got the best chance of recovery or have got the biggest impact. We will probably process the ones which are lower risk at a later stage. That could include the ones which we can tell straight away a lot of false positives. We will go through the system and clear those off. Hopefully, the message there is that we focus on the ones which offer the best results for us using our own intelligence and that of the NFI system. In terms of the volume of how many could actually be frauds, I cannot give an answer on that, but I can tell you it would be a very, very small percentage of that. But there are two things to consider. One is the volume and secondly, it is also the value, the materiality. For example, in terms of creditor payments, it is not just fraud, it can be error as well. If we had made a duplicate payment, for example, it could pick that up and that would be really helpful so we could try and recover that. That could be a very, very large payment. That could have a big material impact, even though it is just one record. So, yes, it is probably not very helpful, but it is very, very difficult to anticipate what that percentage would be at this stage. Thank you, Jonathan. Perhaps in future versions of this report, you can give us an update on having started with these, what is it, 2,000 odd matches, where your team have got to and anything you have learnt as a result of that. It would be good to see that gradually coming down and anything that comes out of that. Sorry. Sorry, Councillor Redrock. Did you have further comments to make? Yes, but I think Councillor Harvey is ready to have a...  I was just going to comment. We have one colleague that looks at this and goes through the more. I think I will actually ask and see what sort of response I am. I guess she will know roughly the sort of figures that we have. I think she will know roughly the sort of figures that we have. I think she will know roughly the sort of figures that we have. I guess she will know roughly the sort of figures that we are looking at. I guess she will know roughly the sort of figures that we are looking at. It is an interesting point on the creditors. I think authorities do, from time to time, have a review of their purchase of ledger to check for duplicate payments. I think authorities do, from time to time, have a review of their purchase of ledger to check for duplicate payments. This has reminded me that we have not done this for a while, so it might be potentially worth doing that, but they are usually done on a no win, no fee basis, so they are trawl through and finding duplicate payments and recover them and then put the people, small percentage of them, and then put the people, small percentage of those amounts recover. It is probably worth doing that, because I do not think we have done that for at least five years. Thank you. Back to you, Councillor Redden. Thank you both very much for your answers. I just have one more question. It is about page 55 on the proactive work and the prevention. I am very sorry. It starts with quite a broad question, because I just wondered if you could help me with understanding this page just with a little bit more information about what it shows. Have we lost him? This comes from the fraud team, which is Peter's. I might have to bring Peter in to answer those questions, if that is okay, Councillor. I may have to get a bit more deep. The local authority data sharing hub, my understanding is that it relates specifically to housing fraud, and that is the way things get reported. The local authority data sharing hub relates specifically to housing fraud, and that is the way things get reported. The local authority data sharing hub relates specifically to housing fraud, and that is the way things get reported to us. If it is okay, I will provide a response on that. Thank you. I think that will be helpful. Perhaps a future version of this report. I am not sure this table is quite communicating what the team necessarily wants it to communicate to us. Maybe just thinking about how that information is presented in the future, but if you can just give an update on the data sharing hub. Thank you. I think, Councillor Harvie, you wanted to come in as well. Thank you, Chair. This is on a different front altogether. I don't know if the position is discussing a previous point, but apologies if not. I was looking at page 50 on the general area of looking at how our suppliers can be trusted or otherwise. I was thinking that, as we go forward, we are more and more going to be looking at our scope 3 emissions. It is quite topical, because some of these carbon credit operations, I don't know if you read in the paper effectively they are not abating the amount of carbon that they are claiming to when they sell those credits to airline companies and so forth. There is a whole new area of fraud there, and I wondered when a supplier makes certain claims in terms of their environmental impact, green energy use and so forth. That could turn into an awful lot of work, and I wondered probably it would make sense to do that jointly at a national level in terms of awarding suppliers to local authorities with certificates or something so that avoids every local authority having to do the same work over and over again. I just wondered, is that a thing that's on the horizon and what progress on that? Thank you councillor. It's not on our immediate short-term horizon, but I think it's a fair observation. It's something we need to be alert to. I'm happy to have a conversation with the procurement team because I think it's a good topic, so I'd be happy to take that away. Thank you. Thank you. One very quick comment from me on page 49, just coming out of this NFI work that you've done, you've noted there's some opportunities to improve, well I guess it's the sort of mapping and metadata and definitions across council data sets to make them work a bit better as stakeholders and data owners. How can the committee get assurance that this work is completed and what kind of timescales do we think it's reasonable to expect people to kind of clean up the bits of our kind of data that we own so that we can do some more of this work ourselves really in the future. OK, yeah, a good question. In terms of the NFI data sets that we are looking at, that's quite contained. So we could expect to happen quite quite soon. We would probably expect that to happen within 12 months and we'll certainly see that when it comes round to doing the next data extract. I think there is a broader topic though about other data sets in the council, which is something we could be allowed to do because there will be other data sets which won't go into the NFI system and these might be as big a priority but they may be something that we want to use in the future so I think it's helpful to be alert to that. So yes, first question we can conclude on that work and provide assurance back relatively quickly on the NFI data sets but there is a broader conversation to be had. I wonder, I mean depending on the state of your pipeline and how you're prioritising it it seems very dull and boring but a kind of data cleanliness internal audit across some of the major data sets of the council whether that actually might be in a very quiet background quite a productive thing to do and might throw up all sorts of and could potentially throw up issues that do need to come to light. So I wonder if you might consider that as part of your work in the future. Absolutely, I think there's a couple of different perspectives how we look at this. We have a different system part of our brief will be to look at the data that sits behind it because we will use it for testing. So at that point we will make definitely sort of recommendations where we can see opportunities for improvements and also we actually have a very lively information governance group within the council and we are part of that as internal audit so it's part of those regular meetings there is ongoing dialogue about improving data sets and I would say in some ways we are continually looking at this already. Thank you. Are there any further comments on this report before I close the item? I think we are good. So thank you to Jonathan Tully for his report. We have been asked to note the report and we have done so. The next item is mass of topical interest there are a few things that I would like to cover off in here but do any members have anything in the first instance? No. I wonder if you don't mind I might pop you on the spot because I think there are a few things you want to provide a verbal update on audit fees and so forth so I will hand the floor over to you for a few minutes. So the committee will be aware that we referred our 2018-19 audit fees to the PSAA the public sector audit appointments they have gone through with a fine tooth comb they have spoken to EY and spoken to me unfortunately they have only agreed a £3,500 reduction in the fee which I was slightly disappointed in I suppose it is better than nothing but I was hoping for a better than that. So that is the agreed position on the audit fee for 2018-19 and we will be referring the 19-20 audit fee to PSAA as well in the form of some time very soon hopefully. One of the other items I was going to raise we spoke about earlier which was about the change in emphasis by deluk moving away from doing current audits ahead of historical audits and now that that is swapped around I do think that puts us in a slightly stronger position than it might have done in getting our accounts up to date and it is also interesting that given that in 23-24 we will have new auditors there is an added impetus on EY to do our audits as soon as we are ready for them to do them so that they are in a position to hand over all the stuff they need to hand over to the new auditors. So I feel a little bit more positive that we might get more commitment from EY going forward and indeed they are pretty much said that to be fair to them so I think if we can work together and get a timetable to the next committee that we can both stick to I think that will be really good and hopefully will be up to date in a reasonably timely fashion. So just perhaps before you move on can you just clarify for me your comments about things kind of switching around do you mean to say that in sort of prior to now Ernst and Young were if anything under pressure to complete current audits for say other bodies that were in their current year and to sort of slightly deprioritise that the backlog that they had with us and probably with other councils is that where we were before and now it's switched around to be a bit more where we need it to be as it were. It's a difficult one because I I think it's fair to say that that was the case and certainly in discussions particularly in relation to 18, 19 there were a number of occasions where our date moved because they had to prioritise other audits and generally those audits were sort of more recent audits I don't think it's just EY probably the other audit firms were doing the same things I guess they were thinking ours is probably going to be a more difficult audit so let's I don't know it's difficult for me to comment I don't quite know what they're thinking was but quite clearly central government have picked up on this and for them to write to each authority and say they have rights audit or the audit firms they obviously were pretty clear that what they were doing so I'm hopeful that that will get us up to date perhaps a little bit sooner than they might have done otherwise so I'm quite positive about that Thank you sir some good news and some bad news in all of that does anyone in the committee want to comment on any of that before I move on? Just briefly chair thank you for the work you've done to try and know the fee because I know that takes up officer time it is disappointing that it is what it is it is nothing you know if most of us saw three and half thousand pounds appear in our bank accounts we wouldn't sniff at it so you know it's something when it comes to the external auditors and timetabling I think previously they've sort of been able to prioritise themselves and this is giving like you say an extra tool in our arsenal and I'm sure as a committee we will hold EY to account and give us a timetable and we'll help you get them to stick to it I think that's what we should say there chair but that's all I think I agree very much with that is there anything else you wanted to update us on? Just to say on the 16th of March we did go through the audit toolkit but I was acutely aware that one of two members weren't able to make that meeting so I think we thought we could perhaps have any thoughts on that? Yes, I think so this was the SIP audit toolkit which is sort of a checklist of comparing ourselves to better practice and where we're at it was a very interesting exercise I'm very grateful to Jonathan and Peter and Fazzana for their support in running that workshop but as Peter says a number of members went unfortunately able to be present and obviously I'd be interested to know what some of the kind of substitutes and perhaps other members of the council think about it as well so my suggestion would be that we share the results of that exercise in essentially a draft form with members whether that's emailing everyone an individual copy in sort of 20th century style or whether it can be put in a sort of shared document in a more shared way in a more 21st century style and I'm very grateful to Peter for his team and council hellawnig if you wanted to comment on that Yes, I mean the date that the training was on was one that clashed for many members because of the things that were organised by the council so if we could have it repeated chairs as promptly as possible I think that would be appreciated and I think we're all very keen to see the results but you may wish to to waste until you've had reflection from all the decisions and what have you so you may want to share that knowledge once you've had the opportunity to get data from more people Yes, so I suppose it's an alternative perhaps Jonathan you could perhaps you could issue members who weren't able to be present and substitute members and perhaps hear members of the cabinet or anyone else who might be interested I think if they had a copy of your slides and a short email explaining the guidance the toolkit itself is a spreadsheet that's very self-explanatory it's a series of questions and you rate each question on a scale of one to five as to how compliant you think we are with the item in question so perhaps rather than issuing the draft we could issue a blank and collect more feedback that way and compare that to how we got on in the workshop itself so one of the things highlighted by this which we didn't manage to have was this issue again of independent members of audit committees behind which there is now a certain amount of momentum from SIPFA and other regulatory bodies I am aware that work was done on this before I joined the committee and I would be hesitant obviously to repeat that unnecessarily so I wonder if perhaps this would be a good time for any previous work that was done on this to be recirculated to the current committee and we can then review that and if any members of the committee have any thoughts or comments on what they would want to see their thoughts on the principle of an independent member and if we were to have one or two or some number what they would want that member to be there to achieve because I think we don't have clarity on the purpose of it there would be very little point in the comments or thoughts that people want to submit on that I have one further thing I want to discuss but is there anything else fine so it's good practice I think for the committee to produce an annual report we sort of slightly got out of the habit of doing that in recent years so my suggestion would be that we could perhaps just spend a few minutes discussing what we would want an annual report this would go back to council what would we want that report to achieve what do we think it's important to draw attention to our wider colleagues across the council and then ultimately I think if we're happy we'll ask officers to then produce a draft and we'll agree by circulation when we're happy with it I would normally bring it back to committee meeting but our next committee meeting is not until July and then it wouldn't go into council until September and by that point in the years we'll have a view mirror and I don't particularly want to call an extra meeting of the committee just to consider a piece of internal documentation so does anybody have any thoughts on where the value of an annual report to council might lie and what they would particularly like officers to focus on council help I have no problems with an annual report being done before in the past I'm just saying they would go then to the annual council meeting I'm assuming is that correct an annual council meeting I think that would be a good opportunity for it Yes indeed but obviously we'll have to consider a kind of agenda the length of those agendas it may be that there'll be another council meeting in June or July that might also be an appropriate time for it I mean for me I'm in the past they're not exactly stimulating reads to be perfectly honest with you I hope you might think differently there's a bestseller within the council so we just say however there was one done I'm looking at John by Francis Burkett he did one didn't he that was a pretty good one that was actually so I think if we could look back to when Francis Burkett was the chairman he'd done an annual report then and that was well received by everyone it had lots of different bits and pieces in it so maybe we want to look at something like that how I suggest that you look at something like that I think it's a vulnerable suggestion to have some good one in the past to sort of draw some inspiration from that does anyone else have any comments on things that you can see? Councillor Leaming Thank you Chair I would like to see I suppose I'm just looking at our remit as Audit and Governance Committee and I think it might be quite a good opportunity to highlight some key governance points in the report as a kind of training refresher you know just not massive amounts of detail and technical information as part of you know the key policies that we've covered and sort of put it into people's noses I think it might help to sort of communicate our remit more widely amongst the council Thank you it is definitely an opportunity for us to put certain things on the map that we think perhaps you know wouldn't otherwise kind of get top billing with other members of the council Any further comments? I mean I think we're starting to build a bit of a focus on things we want to see and obviously as I say I think we can we can sign this off by by circulation in due course and you know there will be further opportunities for comments at that point Are the committee happy with that process? I think in future years we might ask for a draft probably to be brought to this march meeting but for this year I think by circulation is probably the way to go so if you're all happy with that we'll take that away Thank you that is you'll be pleased to hear everything that was on my list of questions so last thing is the date of the next meeting so we will next meet on Wednesday the 26th of July at 10 o'clock in the morning thank you all very much for attending today thank you to council Red Rock again for substituting and for officers for their reports and enjoy the rest of your day


This was fascinating in our research for this episode, this concept of polarization. Now, the other reason that money can create so much discord in a relationship is that couples usually polarize around money and not necessarily at the beginning. It's not always that opposites attract. But what research has shown is that eventually when one partner sees the other partner's relationship with money, let's say acting extravagantly, just overspending, being a little outlandish with their expenses, the other partner will tend to polarize in the opposite direction, meaning start saving more, start seeing that as unnecessary expenses. And this polarization happens whether or not you were polarized in the beginning. So you could both come into the relationship having a very similar relationship with money. But as you spend time together, your going to flip to one of these two poles of the scarcity mindset, abundance mindset, essentially. And in that situation, if you don't have good communication and you're not clear on what your partner's relationship with money is, you could be walking around in the dark, which leads to a major, major issue in the relationship. Well, what happens when you're walking around in the dark? You get scared. And what happens when you get scared? You look for things to comfort you. How do you do that? You start spending money. Yeah. And this is what allows you to feel good as one person's taking control of the situation. You're in the dark because you don't want to discuss it. You got to feel better. You're spending money on whatever escapism and vices that will allow you to comfort food and junk food in that moment to allow you to feel good. So we now understand the pitfalls around not understanding our own relationship with money or our partner's relationship with money. So how do we get to a place where we can work this out? Obviously, it's an important part of a relationship feeling comfortable with money and your partner's relationship with money does create a lot of security. It does create a lot of freedom. So how do we get there? Now, Olivia Mellon, who's a therapist specializing in money conflicts among couples for the last four decades, says that if opposites don't attract right off the bat, then they will create each other eventually. So that polarization is going to happen. How do we handle it? First, she says that each partner should tell the other about their view on money. As we said at the start, we all have our own belief system around money. What is your story? And again, in a relationship, we should feel comfortable enough to have this conversation. Some of us listening are like, AJ, Johnny, I don't feel comfortable enough. Well, it's the first thing that came to my mind is how many other difficult conversations have you had to get what you wanted? But you don't have this one, right? I know I'm laughing because I'm thinking about all the kinky talks you've had. So you're getting yours in the bedroom. But yeah, you don't have to talk about money. No, we don't want to talk about the check. Next, it's time for each one in the relationship to mention their concerns about the other's relationship to money and explain why this is a concern. Now, this is important. We want to follow up with what you like about their relationship and maybe what you envy them for. So for example, what might be stressful for you is the fact that your partner is an extreme saver and penny pincher and wants that security. Now, saying this is something for me that is concerning. Here's why. But also saying, hey, and I actually kind of envy you for this. I wish I could be a better saver. I wish I had that relationship with money. Yeah. The last step is actually agreeing on how you're going to handle this as a couple. And that's really key. I've met couples that have agreed that separate bank accounts are the way to go. Sure. I've met couples that have agreed that a prenuptial agreement is the only way to feel safe and secure in their relationship. And then I've met couples who are joint everything. Everything's pulled together and that's the rule. Well, and not one of those are better than the other. They just works. You want the one that works best for you and your relationship. Exactly. And that means being honest and don't get us wrong. This is not an easy feat to pull off. In fact, I was going through the prep for the show with Amy and we were talking about, hey, these are conversations that we have had to a degree, but we'd like to have more of and like to get a greater understanding and an understanding that when this conversation is had and it's ongoing, you can start to create goals for the relationship that you could work towards. Well, and that's going to roll into part three, which is growing. I mean, we understand how important those goals are for ourselves. And if we're taking an eye and we're turning it into a we, well, then why wouldn't that be good for you? Because you're now not two separate people.  You are one. So obviously, we've been discussing the earlier parts of a relationship. First, just committing to a relationship and then, you know, moving in together and potentially talking about the first conflict, which is money. Now we want to talk about what happens when you start to feel that you are growing apart. Again, the rose colored glasses for everyone are, oh, this thing's going to keep moving in the same direction at the same speed. That's not how how we as humans grow in relationships.


Do you think it's wrong? I've done it. Don't hate me. I've done it and it works. So anyway... Three, two, one. Hey, Bolo Buddies. Thanks for watching. All right, you guys. In this video, video, video, we are going to talk about big money Bolo's items to be on the lookout for items you can hopefully buy low and sell for a profit. I'm going to tell you where they got it, what they paid for it, and what it sold for. These items sold in September. I posted this in my Bolo Buddies Facebook group and invited everybody in the group to share their big money Bolo and wait until you see some of these Bolo's. This is my Facebook group. If you're not in it, definitely go join. Those links are all down below. You can check out my link tree to see all of my links and find me on lots of social media places. So check that out. But Facebook group almost to 100,000 members. What? Crazy, crazy. So come share a Bolo, look for the October post, and I'll put it in a video just like this. The first one here, it says, Hi, Courtney. Picked up a baggie from the Goodwill for $3.99 minus her senior discount of 20%. So about 45 cents for each listing from the baggie. It had Barbie and Ken clothes, shoes, and some accessories. Parted it into seven eBay listings and sold the pink boombox for $24.99 and about a week or two. I even put a video to show it worked. It's a Barbie boombox and it works. What? It works? Is it battery operated or what? Check it out. Would you have thought that something this tiny could sell for so much money? Now is this a $100 Barbie boombox? No, but $24.99 is fantastic. I love it. I love selling small toys. So that one, I love it. And I'm sure that a lot of you that watch me are feeling the same way right now. I got this at the Goodwill Benz for about $2. Listed it as an auction starting at $99.99 with a buy it now price of 199.99 plus shipping. Someone snapped it up within 24 hours on the buy it now. I wouldn't have known what it was if not for the description on the tag. And if I ever find another World War II item again, I will price it much higher. Yeah. So I probably would have just left the auction right on that one. I never put a buy it now on my auctions. I think it charges you number one and I'm just cheap. And number two, usually if I'm putting an item on auction, it's probably a harder to find item. So I kind of want to see what the market does. Now what I do do what I do do is I add best offer and my husband's like, why do you do that? Because I'm always like, Hey husband, I have a question for you. I've got this on auction and they offered me $500. And I have it on auction for $400. And he's like, take it. And I'm like, but what if it goes up to $600 and he's like, why do you put best offer on it? I'm going to tell you guys why I put best offer on it. Because if I list an item and I get five best offers within 10 minutes of listing the item, I know do not accept any of those offers and let the auction go because you've got five people right off the bat that are probably going to be in a bidding war. Now when it gets tricky is if you have the auction starting at $100 and somebody offers you $500. So what I have done in the past and some of you may or may not agree with this method, I know I talked about this in another video, somebody else did it. If somebody offers me $500, sometimes if there's no bids on your item, you can go in and change the start price. It is fair game. That person that made you the offer of $500, they could have bid on the item at $100. They didn't. They're trying to negotiate with you through messages or through best offer. So you can go in and you can change your start price to $500.  Everything was fine. I didn't get any negative feedback. So what do you guys think about that? Have you ever done it? Would you do it? Do you think it's wrong? Do you think it's right? Could you potentially lose a sale? Maybe the person that saw it at $100 and saw you changed it to $500, they might be mad and move on their way. But I'm guessing if it's at $100 and they're offering you $500, it's probably worth $800. You know what I'm saying? So they're probably not going anywhere. So just a little food for thought. What is that food for thought? Anyway, let me know what you guys think about that down there in the comments. I want to hear what you have to say. Have you done it? Would you do it? Do you think it's wrong? I've done it. Don't hate me. I've done it and it works. So anyway, moving on to the next polo. Can't wait to see what you guys write in the comments. Whatever your opinion is, be nice. Be nice. You can say it in a nice way, even if you don't agree. All right, here we go. I say we're all resellers and we're looking to get the most for our item, especially on selling platforms such as the platforms we sell on. Now, if you're on whatnot, I'm selling things at low starting prices and I have no expectations over there. None, none, none, none. I just hope people get in a bidding war, but it doesn't always happen. And a lot of times I sell my items for $5 or less and I'm completely fine with that on whatnot. What not? What not is a completely different platform. So that's a whole nother idea of selling. And you know, it's funny because I may list it, let it sit until the right buyer comes along, list high, wait for the right buyer. That has always been what I have talked about on what not. Nope, totally different story. I wasn't sure if I was going to like what not because of that. I sell everything at a start price of $5 or less. There have been very few times where I've started something higher than $5 and it's just different and I absolutely love it. Can you believe it? It's like it's quick money. You're selling a lot of stuff in a short period of time for less. And a lot of times resellers are buying from you. Okay? So if you want to check out what not, there is a link down below. That is my referral link. You're going to get $15 to shop when you use that referral link to join. But better yet, if you want to sell on what not, there is a link down below. Once you join, you can use my seller's link. It's separate and that will say that I referred you to them and then it'll take you through the process of getting accepted. So check that out. And I just did two tutorials recently on how to sell on what not. So check out those videos, see if it's something you're interested in. I absolutely love it. It took me a long time to actually do it. I signed up and then I didn't do it. And I was like, what was I waiting for? It's awesome. So if you're looking for another avenue to move inventory, it's a lot of fun. But you do have to go live. So if you're not comfortable going live, it may not be for you. But you can also go live and just show your hands and talk. So you don't have to have your face in the screen. That's up to you. All right, enough about what not. This one picked this up at an estate sale off a person who passed and owned an antique store and was a reseller. The entire garage was filled of boxes of stuff with price tags on them. I picked up quite a few brand name items and this Trader Joe's bag with the tags on it was one of them. I paid 50 cents for it. When I got home and put it into my inventory, I laughed and said, let me take a picture on eBay and see what it's going for. And I almost fell on the floor because there had been one that sold for 45. So I put mine up for $39 and I got full price after about a week, after about a week later. So it's a Trader Joe's bag. And if you want to know more about bags that sell for big money, check out Farm Girl Scavenger Noel. She has a video on Let's Talk About It and she talks about things such as this. All right. I picked up this Folly utensils from a garage sale for 25 cents sold for full asking price. Set of three Folly light blue nylon utensils, $52.99. I picked up this awesome plush at the Denver Goodwill Outlet Benz store for $1.69 per pound. So I probably paid about $1.50 for him. He is a plush doll from the movie Labyrinth starring David, is it Bowie? He was created by Jim Henson the Muppets sold him on auction for $449. One of my best finds from the Goodwill Benz. It is a Labyrinth Sir Didymus plush doll, 1986. How cool is that? I love a Goodwill Benz. Bolo find. Found it in the Goodwill. Oh wait, found it in a Goodwill, $3.99 grab bag. Listed it and sold it for $55. Authentic Littlest Pet Shop, short haired leopard. But some of these can go for big money. They are collectible. So be on the lookout for sure. This is a Hazel Atlas blue royal lace creamer and sugar set that I got from an estate sale. It was the final day and everything was half off. The cream and sugar set was five and I looked it up on eBay before buying and saw nice sold numbers of 35 to 45 for most of the Hazel Atlas items. I also bought matching candlesticks. Also $5. That sold for $38.95. So I listed this set at $38.95. When the auction ended the set sold for $112.50. Very exciting auction. This is what they look like. This one comes from Bolo Buddies member Piece of Scrap. Paid $4 at the Goodwill sold in mid-September for $62 shipped on eBay. It is a new with tags J-Crew Swimsuit. Ruched sides. That means they're like scrunched and supposed to be more flattering. One Piece Swimsuit size 14.  So show her some love with a sub and she's going to be selling on what not soon also. So check her out on what not. Again $15 to shop if you use that link down below. So go find her and show her some love guys. Follow on what not and definitely follow on YouTube. She has really awesome what sold videos. She finds the coolest things that she sells. Wonder if anything is worth selling if you purchased on Teemu. Bought for $1.79 with free shipping sold immediately for my list price of $14.99 plus my added shipping. I have sourced several small jewelry items and yep they sell and very quickly. They are a Rainbow Daisy earrings flower happy face statement multicolored boho hippie. And this is what they look like. This one comes from Bolo Buddies member The Money Worth. YouTube eBay. Everywhere The Money Worth. Bought it the Goodwill Benz. I usually pick up sealed stationary paper I'm sorry photo paper stickers and so on. I go I'm sorry I got this for about a dollar sold for $16.99 plus shipping and sold within two days and this is what it looks like. You guys I'm reading from Facebook so sometimes there's typos so that said go and it was supposed to be got so if I stutter sometimes it's just a matter of when I'm reading so you know sometimes we have typos when we type and sometimes things auto correct so sometimes things are really hard to read. Here is another one I bought this for a dollar didn't realize Pixie was such a great brand bought for a dollar. I'm sorry bought this on dollar day at a local Amazon Benz store and sold it for 16 plus shipping Pixie by Petra Ruby on the Glow Blush Tinted Moisture Stick bought at the Goodwill Benz for a dollar sold for 20 plus shipping I'm currently posting anything Halloween and even Christmas now to get ahead of the seasonal decorations. I miss when Christmas decorations were out around November some stores already have out Christmas decor I'm not ready for that it is a celebrate Halloween Boo LED light up wall sign from 2018 still in the box so bought for a dollar sold for 20 plus shipping all right here's one more from the money worth went to a local high school they were having a yard sale to raise money for project graduation I bought a large lot of dinosaurs I think it was about 10 for about 15 to 20 dinos I have seen some good brands so I went for it this is one of the better ones sold for $39.99 yes these plastic dinosaurs some of them go for big money for sure uh Carnegie collection Safari LTD Giga not notosaurus never heard of that kind dinosaur but it's sold for $39.99 and that's what it looks like this one comes from Bolo Buddy's member Ima resell it this is his YouTube channel check it out he said I was sourcing at the flea market and walked past this vendor three times before finally buying it I was being a bit stubborn and didn't want to pay up for it the lock is brand new with a strong sell through rate I ended up paying $72 for it he originally wanted 100 listed it for 200 plus shipping and it sold in three days lesson here is sometimes it's okay to pay up for items so I'm going to agree I'm really cheap too you probably couldn't have got me to pay $72 for a lock even if I knew I could sell it for 200 because I'm cheap so anyhow uh he did look at the sell through rate he did his homework and he sold it and it sounds like he sold it fast so definitely a good pickup and a good lesson for all of us to learn right if you've got the money to invest in things like that and be willing to sit on them it's worth it but I think what he's telling us here is because the sell the sell through rate was so good that's why he bought it but it took him what would he say you walk past it three times all right pick this smoky the bear up at a garage sale with farm girl scavenger noelle paid 25 cents yes it needed some love but the age I figured sell as is listed it on 922 and sold it on 925 sold for 45 the asking price not a what not a bad way to turn a quarter definitely not it is a piggy bank right no was it no it's not a piggy bank I don't know what I'm talking about it's just smoky the bear and she sold this on poshmark smoky the bear 45 bucks all right you guys we are going to stop there thank you so much for being here thank you for watching go check out my facebook group there is a link down below under my link tree for the facebook group and come share in october bow low I want to see your bow low um it doesn't have to be huge money but if it's unexpected and something that is going to help other resellers we would love for you to come over and share meaning we as a the entire facebook group and everybody that watches this video because we are all learning together so when you guys share that helps us all learn so thank you all so much and thank you for being here be sure to like comment subscribe and share and thanks for watching did I already say that I don't know if I already said that but thanks for watching $10.50 hold on choking oh excuse me let me get a drink okay here we go