Meeting documents
Finance and Best Value Overview and Scrutiny Committee
Wednesday, 4th April 2007
Present
Chair
DM Elderton
Councillors
FM Doyle, AER Jones, ED Prout, WW Smith, CM Teggin, Mrs K Wood
Index to Minutes
- Minute 70 - DECLARATIONS OF INTEREST/PARTY WHIP
- Minute 71 - MINUTES
- Minute 72 - PRESENTATION - BENEFITS DEVELOPMENTS
- Minute 73 - FINANCIAL MONITORING STATEMENT
- Minute 74 - FINANCIAL MONITORING SUMMARY 2006/2007
- Minute 75 - CAPITAL MONITORING SUMMARY 2006/2007
- Minute 76 - EXEMPT INFORMATION - EXCLUSION OF MEMBERS OF THE PUBLIC
- Minute 77 - OUT OF BOROUGH PRIMARY CARE TRUSTS
- Minute 78 - MONITORING REPORTS
- Minute 79 - SERVICE RE-ENGINEERING SUMMARY
- Minute 80 - INDICATIVE BUDGET 2008-2011
- Minute 81 - FINANCE DEPARTMENT PLAN
- Minute 82 - LOCAL AUTHORITY BUSINESS GROWTH INCENTIVE SCHEME
- Minute 83 - OVERSEAS TRAVEL
- Minute 84 - MEMBERS TRAINING
- Minute 85 - CIPFA ANNUAL CONFERENCE
- Minute 86 - ACCEPTANCE OF TENDER
Minute 70 - 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. No such declarations were made.
Minute 71 - MINUTES
Minute Text :
Minute Decision :
Resolved - That the minutes of the meetings held on 6 and 19 February 2007, having been received or approved by the Council, be received.
Minute 72 - PRESENTATION - BENEFITS DEVELOPMENTS
Minute Text :
The Director of Finance gave a presentation on the background, current position and future challenges that faced the Housing Benefit service. He reported that it was a statutory service with a high rate of change and complexity, and the workload was currently in the order of 37,000 cases per annum. New office and document management systems had been introduced, which had led to an improved service to clients and a reduction in the volume of paper used, and he commented that performance against key national indicators was excellent. A Comprehensive Performance Assessment (CPA) review would take place in 2007, and in addition to DWP initiatives, current issues in relation to changes introduced by Job Centre Plus had the potential to affect service delivery. He set out changes as a result of DWP reforms, and commented also that Wirral was a pilot area with regard to the imposition of Housing Benefit sanctions as a result of anti-social behaviour. With regard to the development of the service in Wirral, work was being undertaken in relation to online and telephone claims, and to joint working and improved interface with housing associations. It was essential to explore opportunities to maximise Subsidy, and future challenges related to ensuring value for money, compliance with DWP plans for change and reform, and meeting expectations of both the DWP and customers.
In response to comments from members, the Director reported that changes introduced by the DWP in relation to Job Centre Plus impacted upon the Housing Benefits service, because of the close working relationship that existed as a result of shared clients. The decision by the DWP to merge Wirral and Garston Job Centre Plus offices had had a detrimental effect on the working relationship, which also had the potential to impact on clients because of delays in claims processing times. With regard to further comments from members upon housing benefits sanctions because of convictions for anti-social behaviour, the Director indicated that the pilot would be continually evaluated, and would be the subject of regular progress reports.
Minute Decision :
Resolved - That the presentation be noted.
Minute 73 - 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 was based on the information provided within the departmental financial monitoring reports presented to each Overview and Scrutiny Committee and included the composition of the original 2006/2007 budget by Department including agreed Service Re-Engineering (SRE) savings, other savings and policy options; monitoring against the 2006/2007 budget; anticipated variance against the original budget; and an explanation of variances and areas identified as requiring further attention.
The Chair advised members that for 2007/2008, the initial statement proposed an annual budget of £254m. It identified savings of £7.5m and SRE savings of £5.4m with projected balances of £4.5m at 31 March 2008 and he proposed that the budget continue to be closely monitored.
Minute Decision :
Resolved - That the contents of the financial monitoring statement be noted.
Minute 74 - FINANCIAL MONITORING SUMMARY 2006/2007
Minute Text :
The Director of Finance presented a financial monitoring summary, which had been extracted from reports considered by the current cycle of Overview and Scrutiny Committee meetings. He reported upon progress on policy options, savings, savings from Service Re-Engineering (SRE) and savings funded by bridging finance. He commented upon the impact of decisions taken by the Cabinet and Executive Board, outlined the key variations for the current financial year, and provided a summary of the overall implications for the General Fund. The Director indicated that the major concern was in relation to an overspend in the Adult Social Services budget.
The Director of Adult Social Services indicated that due to measures put in place to address the pressures in demand-led services, the projected overspend was now £0.5m. He reported that the main cause of the overspend related to a reduction in the attrition rate of people already in the system, and he commented that the numbers of people entering care were more or less in line with forecasts. In response to a question from a member, the Director indicated that some savings measures would continue to have benefit into 2007/2008, although many were short term, particularly those related to vacancy control and delays in service provision. Other ways would be found to meet continuing budgetary challenges.
In response to comments from the Chair, the Director of Finance reported also upon a potential minor variation in relation to Children and Young People, and he commented that a clearer picture would emerge when the accounts for the 2006/2007 financial year were closed.
Minute Decision :
Resolved -
(1) That the report be noted.
(2) That the Finance and Best Value Overview and Scrutiny Committee continue to monitor expenditure, particularly in relation to Adult Social Services, and Children and Young People, which remain the areas of major concern.
Minute 75 - CAPITAL MONITORING SUMMARY 2006/2007
Minute Text :
The Director of Finance reported that a capital monitoring progress report for each Department had been presented to the relevant Overview and Scrutiny Committee during the current cycle, and he provided a summary of the progress on the overall programme. He set out details of income and expenditure, which compared the base programme approved in December 2005 with the forecast at December 2006 and the latest forecast position of the developing programme having regard to changes, including slippage of spend to 2007/2008. The generation of capital receipts through the sale of assets was used to fund the programme and at this stage, £7m was included for use in 2006/2007. He reported that this income, whilst uncertain in the exact timing of receipt, offered flexibility in the timing of its use and could be used to either balance the 2006/2007 programme or to address future budgetary issues.
In response to a comment from the Chair, the Director reported that the Cabinet had approved the transfer of up to £250,000 from the Private Finance Initiative (PFI) reserve to deal with the completion of specific contract issues that had been identified and were likely to arise, at the PFI schools. Negotiations were taking place with regard to PFI and he indicated that, although none were anticipated at this stage, any changes would be reported both to the Cabinet and to this Committee. In response to further comments from members, the Director of Adult Social Services provided further details of progress in relation to prudential borrowing schemes, which supported the Adult Accomodation Strategy and the Older People and Physical Disability Strategy
Minute Decision :
Resolved - That the report be noted.
Minute 76 - 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 the relevant paragraphs of Part 1 of Schedule 12A to that Act.
Minute 77 - OUT OF BOROUGH PRIMARY CARE TRUSTS
Exempt :
NOT FOR PUBLICATION - Exempt by virtue of paragraph 5 of Part 1 to Schedule 12A of the Local Government Act 1972
Minute Text :
Further to minute 59 (6 February 2007) the Director of Finance reported upon the latest position regarding money owed to the Council by Out of Borough Primary Care Trusts (PCTs). He indicated that there was a need to ensure that formal legal and funding agreements were in place for all aspects of partnership working with health bodies, and he commented upon significant progress that had been made over the last two years. However, significant amounts were owed to the Council from out of Borough PCTs, which if not paid or liability agreed by the time of completing the year end accounts for 2006/2007, then a provision for bad debts would have to be made from the Adult Social Services Department accounts.
The Director of Adult Social Services reassured members that the relationship with the local PCT was sound, and the outstanding debt was in relation to six external PCTs. The most up to date information was that three of those cases had now been accepted as the responsibility of Wirral PCT and the balance for liability had now been built into their accounts. The Head of Legal and Member Services had written to the external PCTs, and he set out the total outstanding debt owed to the Council. In response to questions of detail from members, the Director of Adult Social Services agreed to provide a detailed briefing note upon all aspects of the outstanding debt.
Minute Decision :
Resolved -
(1) That the report be noted and the officers continue to closely monitor the situation.
(2) That the Director of Adult Social Services be instructed to circulate a detailed briefing note to members at the earliest opportunity.
Minute 78 - 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.
(b) Finance Department Financial Monitoring - one of a series of reports to highlight the financial performance of the Finance Department during 2006/2007.
(c) Treasury Management Financial Monitoring - one of a series of reports to highlight the financial performance of the Treasury Management budget during 2006/2007.
(d) 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 monitoring reports be noted.
Minute 79 - SERVICE RE-ENGINEERING SUMMARY
Minute Text :
The Director of Finance presented a summary of the current position regarding the delivery of the service re-engineering (SRE) savings of £3.7m contained within the budget for 2006/2007. He commented that the Regeneration Cultural Services target was effectively met from Council balances, and that Adult Social Services and Children & Young People had both reported difficulties in achieving the savings required for 2006/2007.
The Director reported also that the budget included an allocation of £1.2m for reinvestment into services. The agreed budget for 2006/2007 included projected savings from procurement, which were achieved by Departments with support from the Procurement Unit, and formed part of the various departmental savings. To give greater clarity to the process, the SRE targets from 2007/2008 now included the procurement target and he indicated that to resolve the position for 2006/2007 the procurement target was being supported through the use of the reinvestment budget.
In response to comments from members, the Deputy Chief Executive/Director of Corporate Services reported that all Chief Officers were fully aware of the requirement for SRE savings to be achieved.
Minute Decision :
Resolved -
(1) That the report be noted.
(2) That this Committee recommends to the Cabinet that robust plans be put in place, and presented to a future meeting of this Committee, to ensure that SRE savings will be achieved.
Minute 80 - INDICATIVE BUDGET 2008-2011
Minute Text :
The Director of Finance presented the indicative budgets for 2008-2011 to coincide with the period of the Comprehensive Spending Review (CSR), the outcome of which was expected by October 2007. The summary budget for 2007/2008 was £260.3m, and the Director reported that the Department for Communities and Local Government (DCLG) had stated that, following the CSR, the Local Government Finance Settlement would cover the period from 2008 to 2011 and that Local Authorities will be expected to budget on a three year basis.
He set out the variations that had been identified for 2008-2011 and referred also to other developments which were likely to impact on the financial position of the Authority during that period. The indicative budgets showed a shortfall between projected expenditure and anticipated resources that would need to be bridged by a combination of savings and/or increased Council Tax. The Director had assumed an annual increase in Council Tax of 4%, and at its meeting on 24 January 2007 (minute 227 refers), the Cabinet agreed to an efficiency plan, which aimed to deliver savings of £30m over three years. Chief Officers were to report to the Cabinet in June 2007, detailing how their apportioned element of the efficiency plan would be delivered and the Director indicated that regular update reports would also be presented to the Committee throughout the year.
Minute Decision :
Resolved -
(1) That the detailed efficiency plan to be reported to the Cabinet in June should reflect the indicative budget.
(2) That the projected budget for 2008 to 2011 be updated and reported regularly both to the Cabinet, and to the Finance and Best Value O&S Committee.
(3) That the indicative budget be incorporated into the Medium Term Financial Strategy for 2008-2011.
Minute 81 - FINANCE DEPARTMENT PLAN
Minute Text :
The Director of Finance presented the Finance Department Annual Plan, which set out how the Department would contribute to the overall delivery of Council aims during 2007/2008. The Plan contained a number of Departmental Objectives, which linked to the aims and priorities of the Council, and it included targets against which performance and achievement would be measured. The document would inform the annual budgeting process and form the basis of detailed service plans. These would outline how the various divisions and sections would deliver the aims and objectives of the Department, and in turn would flow through into the individual team members’ Key Issue Exchange process.
In response to a question from a member with regard to Discretionary Benefits paid by the Department, the Director indicated that they related to War Widows Benefits, and to a Discretionary Housing Payment for people in dire cash need, which was part-funded by the Department for Work and Pensions (DWP).
Minute Decision :
Resolved - That the Finance Department Plan 2007/2008 be noted.
Minute 82 - LOCAL AUTHORITY BUSINESS GROWTH INCENTIVE SCHEME
Minute Text :
The Director of Finance reported upon the operation of the Local Authority Business Growth Incentive (LABGI) Scheme for the years 2005/2006, 2006/2007 and 2007/2008. He indicated that the scheme provided an incentive for local authorities to promote economic growth within their area by allowing them to be rewarded for an increase in rateable value, above a certain level, based on changes notified to the Valuation Office Agency. The LABGI grant was available for use by authorities to provide better services, to invest in further business growth or to reduce Council Tax increases and he commented that in 2005/2006, Wirral received a payment of £919,352, with an award of £1,265,712 for 2006/2007.
The LABGI scheme was due to conclude in 2007/2008 with the final payments to be announced in February 2008, and he indicated that the Government had emphasised the difficulty for any Authority to estimate and plan for the receipt of future LABGI grant with any degree of accuracy. The future of LABGI was subject to recommendations made by the Lyons Inquiry, and a fundamental review of the role of local government in driving economic development was being undertaken as part of the Government Comprehensive Spending Review 2007. He commented also upon ongoing Judicial Reviews by Corby Borough Council and Slough Council, which would influence future grant allocations.
Minute Decision :
Resolved - That the allocation of £1,265,712 Local Authority Business Growth Incentive Grant to Wirral for 2006/2007, be noted.
Minute 83 - OVERSEAS TRAVEL
Minute Text :
In accordance with a Code of Practice, based on advice received from the District Auditor, the Deputy Chief Executive/Director of Corporate Services reported upon approved overseas travel that had been undertaken by officers during the period 1 January to 31 December 2006. The programme of visits supported the objective of putting Wirral on the map, whilst increasing the understanding of different cultures and traditions, and learning best practice in a variety of areas. He provided details of six visits during the year at a total cost of £7,248.60, all of which had been undertaken by officers, with one visit also being attended by two councillors.
In response to a comment from a member with regard to overseas travel undertaken by outside bodies, the Deputy Chief Executive/Director of Corporate Services outlined the difficulties there would be in ascertaining whether monies allocated by the Council to outside bodies had been expended on foreign travel.
Minute Decision :
Resolved - That the report be noted.
Minute 84 - MEMBERS TRAINING
Minute Text :
The Director of Finance reported that because of the complex nature of local government finances and the financial pressure faced by the authority, it was essential for Members of the Finance and Best Value Overview and Scrutiny Committee and the Cabinet to have a good understanding of the finances of the Council. To achieve this requirement, the Director proposed a training course for Members to be conducted over two sessions, and he set out the elements to be included in the course. He indicated that the first session had been agreed by the members training steering group for 26 June 2007, and he requested members to identify a further suitable date for the second session.
Minute Decision :
Resolved - That the second members training session be held on 18 July 2007.
Minute 85 - CIPFA ANNUAL CONFERENCE
Minute Text :
The Director of Finance reported that the CIPFA Annual Conference to be held in Bournemouth from 12 to 15 June 2007 was one of the annual conferences approved by the Cabinet, and as an approved conference, attendance had been agreed as the Executive Member for Finance and Best Value (the Leader of the Council), the Chairman of the Finance and Best Value Overview and Scrutiny Committee, and the Liberal Democrat spokesperson for Finance. Conference fees would be approximately £600 plus VAT, and accommodation and transport costs would also be incurred.
Minute Decision :
Resolved - That the attendance of the Chairman of the Committee and the Liberal Democrat spokesperson at the CIPFA Conference, be endorsed.
Minute 86 - ACCEPTANCE OF TENDER
Minute Text :
The Director of Technical Services reported the acceptance, under delegated authority, of the lowest tender received from Broadless Construction, in the sum of £46,760 for Alterations/Extension to Domestic Garage at 106 Breck Road, Wallasey.
Minute Decision :
Resolved - That consideration of this matter be deferred, and a detailed report be presented to the next meeting of the Committee.
(Minutes Published: 12 April 2007)