Meeting documents
Finance and Best Value Overview and Scrutiny Committee
Tuesday, 13th November 2007
Present
Chair
CM Teggin
Councillors
SA Brown, FM Doyle, DM Elderton, J Hale, AER Jones
Deputy
DT Knowles (for Cllr ED Prout)
Index to Minutes
- Minute 30 - DECLARATIONS OF INTEREST/PARTY WHIP
- Minute 31 - MINUTES
- Minute 32 - LOCAL GOVERNMENT CHRONICLE AWARDS
- Minute 33 - FINANCIAL MONITORING STATEMENT
- Minute 34 - MONITORING REPORTS
- Minute 35 - COMPREHENSIVE PERFORMANCE ASSESSMENT - USE OF RESOURCES
- Minute 36 - PROJECTED BUDGET 2008-2011
- Minute 37 - FINANCE DEPARTMENT - PROJECTED BUDGET 2008-2011
- Minute 38 - TREASURY MANAGEMENT - PROJECTED BUDGET 2008-2011
- Minute 39 - FINANCIAL MONITORING SUMMARY
- Minute 40 - CAPITAL MONITORING SUMMARY
- Minute 41 - SERVICE RE-ENGINEERING SUMMARY
- Minute 42 - EXEMPT INFORMATION - EXCLUSION OF MEMBERS OF THE PUBLIC
- Minute 43 - SUPPLY OF FRUIT AND VEGETABLES - CONTRACT AWARD
Minute 30 - DECLARATIONS OF INTEREST/PARTY WHIP
Minute Text :
Members were asked to consider whether they had personal or prejudicial interests in connection with any item(s) on this agenda and, if so, to declare them and state what they were. Members were reminded that they should also declare, pursuant to paragraph 18 of the Overview and Scrutiny Procedure Rules, whether they were subject to a party whip in connection with any item(s) to be considered and, if so, to declare it and state the nature of the whipping arrangement.
No such declarations were made.
Minute 31 - MINUTES
Minute Text :
Minute Decision :
Resolved - That the minutes of the meeting held on 17 September 2007, having been received or approved by the Council, be received.
Minute 32 - LOCAL GOVERNMENT CHRONICLE AWARDS
Minute Text :
Further to minute 27 (17 September 2007) the Director of Finance was pleased to report that at the prestigious Local Government Chronicle (LGC) Awards held on 5 November 2007, Wirral had been shortlisted in four award categories, more than any other local authority, and had won the Procurement Initiative Award.
Minute Decision :
Resolved - That the congratulations of the Committee be accorded to all those members of staff who contributed to the success of Wirral at the LGC Awards 2007.
Minute 33 - FINANCIAL MONITORING STATEMENT
Minute Text :
The Director of Finance provided a summary in tabular format of the current position of the Authority revenue accounts and General Fund balances at 31 October 2007. The monitoring statement included the composition of the original 2007/2008 budget by department including agreed Service Re-Engineering (SRE) savings, other savings and policy options; monitoring against the 2007/2008 budget including the financial implications of any decisions by the Cabinet; anticipated variance against the original budget; and, an explanation of variances and areas identified as requiring further attention.
He commented that the pressures on Adult Social Services continued to be a major concern and the projected overspend had now increased from £2.2m to £3.3m, essentially through not delivering the expected savings on the domicillary care programme and SRE this year. The projected overspend within Children and Young People had reduced from £1.8m to £0.3m as a result of ongoing measures to contain spend and the use of Standards Fund grant, which was available for the current year. In Regeneration, decisions on savings options had still to be made, which had resulted in SRE savings not being delivered and a series of one-off options were being assessed to reduce the potential overspend of £0.5m. The Director commented also that the sharing of recyclates income by the Waste Disposal Authority continued to be pursued, and if unsuccessful, would result in an income shortfall of £0.6m within Technical Services.
He commented also that decisions taken by the Cabinet during the year had increased the planned level of departmental spend by £0.3m and the Cabinet had also agreed the final accounts report for 2006/2007 (an underspend that added £0.9m to balances) and to the release of £0.5m of reserves into general balances. The projected balances at 31 March 2008 were £5.6m. However, the balances would be reduced if the pressures identified resulted in overspends. Efforts were being made to minimise the impact, which would otherwise result in balances being reduced by £4.8m to £0.8m.
Members expressed their deep concern, particularly in relation to the lack of firm plans to overcome shortfalls within Adult Social Services. In response to comments from members, the Director indicated that the write-off of PCT debt in excess of £1m was in addition to the shortfall identified of £3.3m.
Minute Decision :
Resolved -
(1) That the contents of the financial monitoring statement be noted.
(2) That a further update be submitted to the next meeting of this Committee.
(3) That the Director of Adult Social Services be requested to attend a special meeting of the Committee on a date to be agreed by the Chair and party spokespersons, to explain what he envisages can be done in relation to the budget overspend.
Minute 34 - MONITORING REPORTS
Minute Text :
The Director of Finance presented monitoring reports with regard to -
(a) General Financial Matters - information on the money market key indicators, current interest rates, the Council cash position, the position regarding Council Tax, National Non Domestic Rate, general debt and cash income collection and the payment of Benefits. In response to a question from a member regarding revenues collection, the Director indicated that the implementation of a new IT system in December 2006 had had a short term detrimental effect on the collection rate. However, the situation was now resolved and all arrears had been fully recovered by June 2007.
(b) Finance Department Financial Monitoring - one of a series of reports submitted throughout the year to highlight the financial performance of the Finance Department.
(c) Treasury Management Financial Monitoring - one of a series of reports submitted throughout the year to highlight the financial performance of Treasury Management.
(d) Corporate Risk and Insurance Management - progress made in corporate risk and insurance management against the objectives for those services, and anticipated developments in the coming months.
Minute Decision :
Resolved - That the reports be noted.
Minute 35 - COMPREHENSIVE PERFORMANCE ASSESSMENT - USE OF RESOURCES
Minute Text :
The Director of Finance reported that the Use of Resources (UoR) Assessment for 2006 had included a suggested Action Plan for improvement in 2007. He provided a further update on progress in improving the UoR Assessment, and commented that the assessment for 2007 was presently being completed by the Audit Commission. It provided a judgement on performance over five themes - financial reporting; financial management; financial standing; internal control; and value for money. The assessment fed into the overall CPA scoring framework within which the UoR was classed as a level one assessment area, which meant that it had a high weighting within the overall CPA scoring matrix.
He reported also that the Audit Commission had published revised criteria known as Key Lines of Enquiry (KLoE) to be used in the 2008 assessments which involved over 200 factors across the five themes. The 2008 assessment would measure procedures and activities that were in, or took place during, 2007/2008 up to 31 March 2008, and he indicated that again, the assessment would involve a ‘harder test’, so that Authorities would be required to show improvement to remain at their current score.
He reported also that from April 2009, the CPA was to be replaced by a Comprehensive Area Assessment (CAA), which would involve a judgement of performance across the authority area and would be focused on outcomes involving not just the Authority but also its partners. The Audit Commission would still undertake a UoR assessment of the Authority but the emphasis would increasingly be based upon outcomes achieved rather than processes in place. The 2008 criteria had been produced as a move towards this approach and the Director set out the key changes within the five themes and the level to which they related. Although many of the criteria contained within the new KLoE were currently being met, a number would present challenges to the Authority and the key actions required had been added to the existing development actions. Further progress reports would be submitted to the Cabinet on progressing the necessary actions required to be in place by 31 March 2008.
Minute Decision :
Resolved - That the progress in delivering improvements in the Use of Resources be noted and that further progress reports be presented to the Cabinet and to this Overview and Scrutiny Committee.
Minute 36 - PROJECTED BUDGET 2008-2011
Minute Text :
The Director of Finance provided an update in relation to the projected budgets for 2008-2011, to coincide with the period of the Comprehensive Spending Review (CSR) 2007 that was announced on 9 October 2007. He commented that details of the CSR as it affected individual Government departments would be released over the next few weeks and particularly important issues would be reported to the Cabinet as they were announced. He indicated that following the CSR, the DCLG should announce a three year provisional Local Government Finance settlement in December 2007 and Local Authorities would then be expected to publish a three year budget covering the period 2008-2011. He outlined the variations that had been identified for 2008-2011 and set out a number of other developments that were likely to impact on the financial position of the Authority over the three year period. In response to comments from members, the Director provided more detailed information in relation to time expired funding issues, financial provision for the national concessionary fares scheme, and the Private Finance Initiative.
Although the situation was changing on almost a daily basis, he provided up to date information in relation to balances and grants, and commented that the gap between projected expenditure and anticipated resources would need to be bridged by a combination of savings and/or increased Council Tax. He had assumed an annual Council Tax increase of 4% and reported that Chief Officers were still working to deliver an increased efficiency plan target of £45m over 2008-2011. For 2008/2009, this amounted to £13.4m, which had to be identified by 10 March 2008 in order for the budget to be set. To date, savings packages of £7m had been agreed by the Cabinet.
Minute Decision :
Resolved -
(1) That the projected budget for 2008 to 2011 be updated and reported regularly to the Cabinet and to this Overview and Scrutiny Committee.
(2) That Chief Officers be requested to identify efficiency plan savings as a matter of urgency, in order for them to be fully considered by Overview and Scrutiny Committees in the January 2008 cycle of meetings, prior to their consideration by the Cabinet.
Minute 37 - FINANCE DEPARTMENT - PROJECTED BUDGET 2008-2011
Minute Text :
The Director of Finance presented the Finance Department Projected Budget for 2008-2011, which had been prepared in accordance with the Medium Term Financial Strategy and to coincide with the period of the Comprehensive Spending Review (CSR) 2007. He presented the information earlier than had been the practice in previous years so as to allow members sufficient time in the budget setting process to consider the base estimate for 2008/2009. He outlined the budget timetable and commented that the key figures at the time of the preparation of his report were -
Finance Department:
Base Estimate 2007/2008 £14,388,400
Base Estimate 2008/2009 £14,111,000
Projected Budget 2009/2010 £15,424,000
Projected Budget 2010/2011 £16,737,000
Minute Decision :
Resolved -
(1) That the Finance Department Projected Budget 2008/2011 be noted.
(2) That this Overview and Scrutiny Committee be informed of any Cabinet decisions that affect the projected budget.
Minute 38 - TREASURY MANAGEMENT - PROJECTED BUDGET 2008-2011
Minute Text :
The Director of Finance presented the Treasury Management Projected Budget for 2008-2011, which covered the costs of the Council's investment and borrowing activities plus corporate management and democratic representation. He outlined the key financial changes to the budget which had been prepared in accordance with the Medium Term Financial Strategy and to coincide with the period of the Comprehensive Spending Review. The budget for 2008/2009 had been compiled from the base budget for 2007/2008 and he indicated that the key figures at the time of preparation of his report were -
Treasury Management:
Base Estimate 2007/2008 £6,202,800
Base Estimate 2008/2009 £10,216,000
Projected Budget 2009/2010 £13,528,000
Projected Budget 2010/2011 £17,140,000
Minute Decision :
Resolved -
(1) That the Treasury Management Projected Budget 2008/2011 be noted.
(2) That this Overview and Scrutiny Committee be informed of any Cabinet decisions that affect the projected budget.
Minute 39 - FINANCIAL MONITORING SUMMARY
Minute Text :
The Director of Finance presented one of a series of reports submitted throughout the year, which provided an overview of the financial performance of the Council. He reported upon progress in relation to the implementation of policy options, the delivery of savings, the delivery of service re-engineering savings and the impact of Cabinet decisions. The Director highlighted those areas of the budget which were subject to closer monitoring because of the volatile nature of either demand or cost, or because in recent years they had experienced pressures in keeping to the agreed budget. Within the Director's report each Chief Officer had submitted an update on their departmental budgets, which included references to growth items, savings and any other variations from the approved budget.
In response to a comment from a member regarding the shortfall in car parking income, the Chair reported that the party spokespersons had met with the Director of Technical Services who had confirmed that although parking income had reduced, steps would be taken to ensure the budget was balanced and that SRE savings would also be achieved. He proposed also to meet with the Director of Waste Disposal of the Merseyside Waste Disposal Authority (MWDA) in order to resolve issues that remained outstanding in relation to income from recyclates. The Chair indicated that if it was not possible to resolve those issues with the MWDA he would consider extending an invitation to its Director of Waste Disposal to attend the next meeting of the Committee.
The Director set out the current position, based upon the latest projections, of the General Fund balances. He commented also that the Directors of Adult Social Services and Children's Services had both identified pressures in keeping spend within the allocated budget and Director of Regeneration had highlighted difficulties in the delivery of service re-engineering savings. However, efforts continued to be made within those areas to contain the projected variances within the approved budget and the Projected Budget 2008/2011 assumed this to be the case.
Minute Decision :
Resolved - That the report be noted.
Minute 40 - CAPITAL MONITORING SUMMARY
Minute Text :
The Director of Finance provided a summary report of progress being made in the delivery of the Capital Programme for 2007/2008, based upon information provided by each Chief Officer in relation to approval, progress and funding of capital schemes. The total programme amounted to £79,474,000 and the Director set out the latest forecast position in relation to expenditure and resources, which reflected changes agreed by the Cabinet, including slippage of spend from 2006/2007.
Minute Decision :
Resolved - That the report be noted.
Minute 41 - SERVICE RE-ENGINEERING SUMMARY
Minute Text :
The Director of Finance reported upon progress being made by departments in achieving the service re-engineering (SRE) savings, which were contained within the budget for 2007/2008. The budget had been prepared on the basis that gross SRE savings of £5.35m would be achieved. However, of this total £2.2m had still to be identified and he indicated that according to the relevant Directors, those savings apportioned to Children & Young People and to Regeneration were unlikely to be achieved in full. Of the £1.2m allocated for SRE reinvestment in the 2007/2008 budget, £0.8m had been committed to supporting expenditure.
Minute Decision :
Resolved -
(1) That Chief Officers be requested to identify outstanding service re-engineering savings as a matter of urgency.
(2) That those Chief Officers who do not expect to fully achieve their SRE savings target be requested to attend and present a summary report to a special meeting of this Committee on a date to be agreed by the Chair and spokespersons, in order to identify what steps they propose to recover the situation.
Minute 42 - EXEMPT INFORMATION - EXCLUSION OF MEMBERS OF THE PUBLIC
Minute Text :
Minute Decision :
Resolved - That in accordance with section 100A (4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following item of business, on the grounds that it involves the likely disclosure of exempt information as defined by paragraph 3 of Part 1 of Schedule 12A to that Act.
Minute 43 - SUPPLY OF FRUIT AND VEGETABLES - CONTRACT AWARD
Exempt :
NOT FOR PUBLICATION - Exempt by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972
Minute Text :
The Director of Finance reported upon the award of the contract for the supply of fruit and vegetables as a result of a tendering exercise, which had been undertaken by the Procurement team following the cessation of the Wirral and North Wales Purchasing Organisation contract. He outlined the criteria for the award of the tender and indicated that following detailed evaluation the contract had been awarded to Parkfresh.
Minute Decision :
Resolved - That the contract award for the supply of fruit and vegetables be noted.
(Minutes Published: 19 November 2007)