Meeting documents
Finance and Best Value Overview and Scrutiny Committee
Wednesday, 19th March 2008
Present
Chair
CM Teggin
Councillors
SA Brown, FM Doyle, DM Elderton, J Hale, AER Jones, ED Prout
Index to Minutes
- Minute 64 - DECLARATIONS OF INTEREST/PARTY WHIP
- Minute 65 - MINUTES
- Minute 66 - REVIEW OF SCRUTINY WORK PROGRAMME
- Minute 67 - FINANCIAL MONITORING STATEMENT
- Minute 68 - INDICATIVE BUDGETS 2009/2011
- Minute 69 - GENERAL FINANCIAL MATTERS
- Minute 70 - COMPREHENSIVE PERFORMANCE ASSESSMENT (CPA) 2007 - USE OF RESOURCES
- Minute 71 - FINANCE DEPARTMENT PLAN 2008/2009
- Minute 72 - CORPORATE RISK AND INSURANCE MANAGEMENT
- Minute 73 - DECISIONS TAKEN UNDER DELEGATED POWERS
Minute 64 - 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 65 - MINUTES
Minute Text :
Minute Decision :
Resolved - That the minutes of the meetings held on 17 January and 6 February 2008, having been received or approved by the Council, be received.
Minute 66 - REVIEW OF SCRUTINY WORK PROGRAMME
Minute Text :
The Chair stated that he had requested this item to be placed on the agenda to enable members to have an opportunity to review the Committee's scrutiny work programme. He commented that although there may be some changes in membership in the new municipal year, it was essential for the Committee to be in a position to respond to issues within its remit. He referred specifically to budget shortfalls in the next two financial years and to the need to improve the Authority's level 2 CPA score.
The Director reported that the two matters identified by members were key issues for the Authority, both of which would be addressed and be the subject of regular progress reports to future meetings of the Committee. He expressed serious concern in relation to the CPA score and, in response to comments from members, indicated that financial resources may need to be invested in certain areas to improve their CPA score. He commented also that the concerns of the Audit Commission in relation to Wirral not having improved from an overall score of 2 would be reported to the Cabinet by the Deputy Chief Executive.
Minute Decision :
Resolved -
(1) That measures to improve the authority's CPA score, and to address the budget shortfall, be added to the Committee's scrutiny work programme, and be the subject of regular update reports to future meetings of the Committee.
(2) That the Chair and party spokespersons meet after the Easter break to consider and agree the Committee's priorities for the next municipal year.
Minute 67 - 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. It 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 upon significant variances in Regeneration, which were subject to an ongoing Review of Cultural Services; and Technical Services, as a result of the non-payment by the MWDA of Wirral's share of recyclates income. He expressed particular concern in relation to an increased variance in Adult Social Services to £2.5m, and commentedthat whilst there had been a 'windfall' of LABGI grant related to 2006/2007, the Government was reviewing the distribution of the 2007/2008 grant. This would not be during 2007/2008 so the income of £0.9m had been removed. In response to comments from members in relation to balances, he indicated that they had been increased by the Cabinet, on his recommendation, and the projected balances at 31 March 2008 were now £8m. The Cabinet had also agreed to use £1.9m of balances as bridging finance in 2008/2009.
Minute Decision :
Resolved - That the report be noted.
Minute 68 - INDICATIVE BUDGETS 2009/2011
Minute Text :
Further to minute 543 (Cabinet - 13 March 2008), the Director of Finance presented the indicative budgets for 2009/2011, to coincide with the period of the Comprehensive Spending Review (CSR) 2007. The summary budget for 2008/2009 was £302.6m and he highlighted variations that had ben identified, together with a number of other developments that were likely to impact on the financial position of the Authority over the period 2009/2011. The gap between projected expenditure and anticipated resources would need to be bridged by a combination of savings and/or increased Council Tax and he reported that the revised Efficiency Plan target for 2008/2011 was now £39.9m. He set out the revised targets for 2009/2011, taking into account the efficiencies already delivered and commented also that he had assumed an annual Council Tax increase of 4%.
In response to a comment from a member in relation to increased Private Finance Initiative (PFI) payments, the Director indicated that payments would increase by £400,000 in 2009/2010 and by £1m in 2010/2011. The effect was that the authority was now paying more than it received from the Government and would continue to do so for the remainder of the initiative.
Minute Decision :
Resolved -
(1) That the indicative budgets for 2009 to 2011 be noted.
(2) That the projected budget be reported regularly to the Cabinet and to this Committee.
(3) That the revised Efficiency Plan targets be noted.
Minute 69 - GENERAL FINANCIAL MATTERS
Minute Text :
The Director of Finance provided 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 payments of Benefits. In response to a comment from a member in relation a continued shortfall in Car Parks Income, which he expected would not be achieved, the Director indicated that the Director of Technical Services believed that the income was achievable. However, any shortfall would be met from compensating savings.
Minute Decision :
Resolved - That the report be noted.
Minute 70 - COMPREHENSIVE PERFORMANCE ASSESSMENT (CPA) 2007 - USE OF RESOURCES
Minute Text :
The Director of Finance provided details of the Audit Commission Comprehensive Performance Assessment (CPA) Use of Resources judgement for Wirral 2007. The overall CPA assessment for the Authority was based upon a series of separate assessments undertaken by the Audit Commission and a Corporate Assessment was undertaken on a triennial basis. There were a number of service assessments undertaken on an annual basis, as was the Use of Resources (UoR) assessment. It consisted of a judgement made over five themes of financial activity known as key lines of enquiry and he commented that each year, the process involved a 'harder test' so that improvement was required for authorities to remain at their existing score.
Wirral scored 2 for UoR in 2007 as it had in 2006 and 2005, which equated to 'adequate performance' and although the Audit Commission had recognised the improvements made by the Authority in each of the themes, the scores had improved at a time when the requirement to stand still had risen. The assessment for 2008 would again be a 'harder test' as it would include further criteria which were either new or were previously not essential that had now become essential to meet in order to achieve either level 2 or 3. He set out the areas with increased emphasis for essential criteria and presented an Action Plan that had been produced to secure improvements in the most significant areas that were required to progress to an overall level three score.
In response to comments from members in relation to whether any of the recommendations from the Audit Commission were not likely to be achieved in the 2008 assessment, the Director acknowledged that there were some elements that were particularly challenging for the Authority, most notably the requirement for certain processes to be embedded within the organisation, given the timescales set out in the Action Plan. The Authority was already meeting some of the additional requirements for the harder test and the Action Plan aimed to ensure full coverage of the UoR criteria required to meet a level three standard. He commented that with the exception of the financial reporting theme, the Audit Commission assessment for 2008 would be based on outcomes and procedures in place and embedded by 31 March 2008. The financial reporting theme would be judged upon the financial accounts to be presented to the Audit and Risk Management Committee in June 2008 and the subsequent audit finalised in September 2008. There was therefore a very limited timeframe for reacting to and implementing suggested actions from the 2007 UoR report.
Minute Decision :
Resolved -
(1) That the 2007 Use of Resources assessment be noted.
(2) That the Action Plan responding to the issues raised by the Use of Resources assessment be noted.
Minute 71 - FINANCE DEPARTMENT PLAN 2008/2009
Minute Text :
The Dierctor of Finance presented the Departmental Plan 2008/2009, which set out how the Finance Department would contribute to the overall delivery of the Council's aims and priorities during 2008/2009, in the context of the Corporate Plan. It contained a number of objectives which linked to the aims and priorities of the Council and included targets against which performance and achievement would be measured. He reported that the document informed the annual budgeting process and provided the basis for detailed service plans, which identified how the various divisions and sections would deliver the aims and objectives of the Department. This in turn would flow through into the individual team members’ Key Issue Exchange process.
In response to comments from members in relation to Key Risks in 2008/2009, the Director provided an explanation of the risks that had scored highly in terms of their likelihood and impact. Those risks were contained within areas of Procurement, the Medium Term Financial Plan and the implementation of the UoR Action Plan and the Director commented that named officers had specific responsibility to deliver improvements. He referred to the responsibility of officers in identifying to members what was required in order to secure improvements, and also to the role of elected members in delivering resources so as to enable those improvements to be achieved.
Minute Decision :
Resolved - That the Finance Department Plan 2008/2009 be noted.
Minute 72 - CORPORATE RISK AND INSURANCE MANAGEMENT
Minute Text :
The Director of Finance provided information on the objectives for Corporate Risk and Insurance Management in 2008/2009, and detailed recent progess made against the existing objectives for those services and the anticipated developments in the coming months.
Minute Decision :
Resolved -
(1) That the report be noted.
(2) That a further report be presented to the next meeting of the Committee.
Minute 73 - DECISIONS TAKEN UNDER DELEGATED POWERS
Minute Text :
The Director of Technical Services reported upon his acceptance, under delegated authority, of a tender for a Building Energy Management System from JBC Control Systems Ltd. in the sum of £252,520. The Director of Finance outlined the requirement for Chief Officers to report such use of delegated authority to the relevant Overview and Scrutiny Committee, which in this instance was the Corporate Services Committee.
Minute Decision :
Resolved - That the report be noted and referred to the Corporate Services Overview and Scrutiny Committee for consideration.
(Minutes Published: 7 April 2008)