Meeting documents
Finance and Best Value Overview and Scrutiny Committee
Wednesday, 4th June 2008
Present
Chair
PN Gilchrist
Councillors
DM Elderton, J Hale, DT Knowles, R Wilkins
Deputy
Mrs CM Meaden (for Cllr John George)
Cherry Povall (for Cllr SD Moseley)
Index to Minutes
- Minute 1 - CHAIR'S INTRODUCTION
- Minute 2 - DECLARATIONS OF INTEREST/PARTY WHIP
- Minute 3 - MINUTES
- Minute 4 - APPOINTMENT OF VICE-CHAIR
- Minute 5 - WORK PROGRAMME 2008/2009
- Minute 6 - FINANCIAL MONITORING STATEMENT
- Minute 7 - GENERAL FINANCIAL MATTERS
- Minute 8 - PROJECTED BUDGETS 2009-2011
- Minute 9 - FINANCIAL AND PERFORMANCE MANAGEMENT
- Minute 10 - CORPORATE RISK AND INSURANCE MANAGEMENT
- Minute 11 - CPA 2008 - USE OF RESOURCES
- Minute 12 - CPA BENEFITS
- Minute 13 - HOUSING BENEFIT AND COUNCIL TAX BENEFIT ANNUAL REPORT
Minute 1 - CHAIR'S INTRODUCTION
Minute Text :
The Chair welcomed members to the meeting, particularly those who were attending their first meeting of the Committee. He referred to the receipt of a 'Good Egg' award that had been presented to the Council's Procurement Section from 'Compassion in World Farming' following the decision of the Council to use only fresh eggs across the authority. Members offered their congratulations to those staff who were involved in the contract.
Minute 2 - 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 3 - MINUTES
Minute Text :
Minute Decision :
Resolved - That the minutes of the meeting held on 19 March 2008, having been received or approved by the Council, be received.
Minute 4 - APPOINTMENT OF VICE-CHAIR
Minute Text :
Minute Decision :
Resolved - That Councillor David Elderton be appointed Vice-Chair for the ensuing municipal year.
Minute 5 - WORK PROGRAMME 2008/2009
Minute Text :
The Chair referred to the Financial Monitoring spreadsheet (see minute 6 post), and expressed the view that it should continue to be presented to each meeting of the Committee. He referred also to the need to improve the Authority's CPA score and requested regular progress reports to future meetings, together with regular updates in relation to action plans associated with the Use of Resources Assessment. He commented also upon compensatory savings and requested that reports be presented in relation to any areas of the budget that were causing concern. Reports should also be presented to forewarn the Committee of any matters that could have an adverse effect on the Council's budget.
The Director indicated that financial implications in relation to adverse performance would be presented to the Committee, together with reports upon measures to address any budget shortfall. However, reports in relation to action to be taken should continue to be presented to the relevent Overview and Scrutiny Committee.
On behalf of the Conservative Group spokesperson, Councillor Elderton indicated that whilst he supported the proposals made by the Chair, he considered it vital that the Committee also received regular progress reports in relation to the achievement of savings targets.
Minute Decision :
Resolved - That the Committee's work programme for 2008/2009 shall focus upon -
(a) monitoring the current position of the Authority revenue accounts and General Fund balances by way of a regular spreadsheet;
(b) consideration of reports and action plans to improve the Authority's CPA score and UoR Assessment;
(c) consideration of reports in relation to any areas of the budget that are causing concern or any other matters that may have an adverse effect on the Council's budet;
(d) consideration of reports in relation to the achievement of savings targets.
Minute 6 - FINANCIAL MONITORING STATEMENT
Minute Text :
The Director of Finance presented a report in tabular format of the current position of the Authority revenue accounts and General Fund balances as at 30 April 2008. At this stage of the financial year, there were no reported variations and pressures within Adult Social Services and CYPD in relation to care services continued to be closely monitored. Savings targets and policy options were in the process of being implemented and he commented that the projected balance at 31 March 2009 was, as per the agreed budget, £5m.
In response to a question from the Chair, the Director indicated that the financial statement was essentially a snapshot of performance taken at the end of each month. Any issues were raised with relevant departments prior to being distilled into a single sheet in accordance with the wishes of the Committee. The statement was sent to members of the Cabinet, all Overview and Scrutiny Chairs and to this Committee. At this stage of the year, nothing had been flagged up by Chief Officers as not being achievable.
A member referred to the savings targets for departments and expressed the view that, whilst the targets would be managed by relevant Overview and Scrutiny Committees, a brief summary list of progress against the targets would be a useful monitoring tool for this Committee.
Minute Decision :
Resolved -
(1) That the contents of the financial monitoring statement be noted.
(2) That, in addition to the monitoring statement, a summary of progress against savings targets be presented to future meetings of the Committee.
Minute 7 - GENERAL FINANCIAL MATTERS
Minute Text :
The Director of Finance presented 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 comment in relation to fees and charges, he commented that although the budgeted income was expected to be achieved in most areas, land charges income was declining as a result of fewer property transactions. The implication, if the situation failed to improve, was a deficit during 2008/2009.
Minute Decision :
Resolved - That the report be noted.
Minute 8 - PROJECTED BUDGETS 2009-2011
Minute Text :
The Director of Finance presented the projected budgets for 2009-2011 to coincide with the period of the Comprehensive Spending Review (CSR) 2007. He set out variations that had been identified for 2009-2011 and reported upon other developments the Government was known to be looking at, which were likely to impact on the financial position of the Authority over the period. Many of the issues could impact on the grants receivable for 2009-2011 and the grants announced by the DCLG as part of the three year financial settlement were only indicative. In response to a comment from a member in relation to the Private Finance Initiative, the Director confirmed that the schedule of payments to 2030 had been confirmed and there were no expected variations.
The summary budget for 2008/2009 as agreed by the Council on 3 March 2008 was £302.6m. However, in agreeing the budget for 2008/2009, the Cabinet agreed to efficiencies totalling £16.1m, which were agreed throughout 2007/2008 as part of the Efficiency Plan. He set out also Efficiency Plan targets that had been agreed by the Cabinet (minute 543 (13 March 2008) refers) for 2009-2011, although he indicated that the Cabinet reserved the right to vary those targets during the year to reflect the priorities of the Council.
The projected budgets 2009/2010 and 2010/2011 currently indicated a shortfall of £17.1m and £15.6m respectively. The Director had assumed an annual Council Tax increase of 4%, which resulted in Efficiency Plan savings of £12.2m in 2009/2010 and £10.5m in 2010/2011.
Minute Decision :
Resolved - That the projected budgets continue to be reported to the Cabinet and Finance and Best Value Overview and Scrutiny Committee in line with the agreed financial and performance management timetable.
Minute 9 - FINANCIAL AND PERFORMANCE MANAGEMENT
Minute Text :
The Chief Executive reported upon the timing and content of the financial and performance monitoring reports to be submitted to the Cabinet and to the Finance and Best Value Overview and Scrutiny Committee during 2008/2009 and the proposed process and timetable for the production of service and financial plans for 2009/2010, which had previously been agreed by the Cabinet (minute 583 (3 April 2008) refers).
He reported that the benefits of linking finance to performance had been identified in previous reports and the overall performance of the Council featured in the Comprehensive Performance Assessment (CPA) and in the annual Use of Resources judgement which formed part of the CPA process and continued to raise the standards required across the Council in terms of financial, performance, asset and risk management in delivering its objectives. In order to refine corporate business planning, regular financial and performance reports were presented to the Cabinet and to appropriate Overview and Scrutiny Committees, with summary reports also presented to this Committee.
In order to achieve the aim of Wirral becoming an 'excellent' Council, the Director reported that the monitoring and reporting of performance and planning for the future were key elements in proving the means for assessing whether the more detailed actions were being delivered. Progress would be assessed by delivering the priorities set out in the Corporate Plan of which an external review was undertaken under the Comprehensive Performance Assessment and, in the future by its replacement, the Comprehensive Area Assessment.
The Chair referred to other Strategies and associated Plans which complemented the Vision for Wirral and supported the delivery of the aims and objectives of the Corporate Plan. In order to further integrate those Strategies and Plans, they were subject to an annual review and were reported to the Cabinet in July. The Chair proposed that the party spokespersons should meet with the Director of Finance upon completion of that review to consider matters arising, if it was considered necessary to do so.
Minute Decision :
Resolved -
(1) That the report be noted.
(2) That the party spokespersons meet with the Director of Finance upon completion of the review of Strategies and associated Plans.
Minute 10 - CORPORATE RISK AND INSURANCE MANAGEMENT
Minute Text :
The Director of Finance reported upon recent progress made against the objectives for Corporate Risk and Insurance Management and the anticipated developments in the coming months. He reported upon a recent reduction in insurance costs and commented that an analysis of liability claims statistics indicated that the account was performing ahead of actuarial expectations. Repudiation rates remained high and the real cost of liability claims remained at relatively low historic levels.
The Director was pleased to report that Wirral had been shortlisted in the ALARM (Association of Local Authority Risk Managers) 2008 Awards in respect of the Department of Adult Social Services' Load Management Training Programme. The winners would be announced at the ALARM Conference in Birmingham on 30 June 2008.
He referred also to risk management training sessions, which were to be delivered on 3 and 17 July 2008 and urged all members to attend if it was possible for them to do so.
Minute Decision :
Resolved -
(1) That new Members to the Council, Cabinet, Audit & Risk Management Committee and Finance & Best Value Overview & Scrutiny Committee be encouraged to attend the Risk Management training sessions.
(2) That a further report be presented to the next meeting.
Minute 11 - CPA 2008 - USE OF RESOURCES
Minute Text :
The Director of Finance reported upon progress against the 2008 Comprehensive Performance Assessment Use of Resources (UoR) Action Plan. He indicated that the UoR assessment consisted of a judgement made over five themes of financial activity known as key lines of enquiry (KLoE), viz: Financial Reporting; Financial Management, Financial Standing, Internal Control and Value for Money. The assessment had resulted in a current overall UoR score of 2 (Adequate Performance) and he outlined recent progress made against each KLoE since the action plan was formulated. He referred also to a series of activities that were scheduled to be undertaken to improve performance.
The Director commented also that from next year, there would be a change from CPA to the Comprehensive Area Assessment (CAA), which would be the subject of a report to the Cabinet and would also be presented to the next meeting of this Committee.
Minute Decision :
Resolved -
(1) That the progress against the Use of Resources Action Plan be noted.
(2) That regular reports are brought to the Finance and Best Value Overview and Scrutiny Committee on progress against the Action Plan.
Minute 12 - CPA BENEFITS
Minute Text :
The Director of Finance reported that from 1 April 2008, responsibility for the conducting the Comprehensive Performance Assessment (CPA) of Benefits Services had been transferred from the Benefit Fraud Inspectorate (BFI) to the Audit Commission. He commented that in addition to the continuing need to provide assurance that approximately £15 billion of public money was spent as intended, the Audit Commission approach would be informed by the vital contribution benefit services made to the social and economic wellbeing of an area and the significant contribution to local authorities’ strategies to address poverty, deprivation, homelessness and worklessness.
He indicated that in future, a new approach would mean that benefit services would be assessed against more challenging criteria. It would effectively be a ‘harder test' and if there was no service improvement then a Council such as Wirral, which received an Excellent (4 out of 4) rating for the CPA annual assessment would receive a Fair (2 out of 4) rating using the new inspection methodology. This would not necessarily mean that the service had deteriorated but would reflect that the Audit Commission was using more challenging criteria for assessment.
Minute Decision :
Resolved - That Members note the transfer of responsibility and the implications for the CPA of Benefits Services.
Minute 13 - HOUSING BENEFIT AND COUNCIL TAX BENEFIT ANNUAL REPORT
Minute Text :
The Director of Finance presented the Annual Report on the Benefits Service for 2007-2008, which also outlined the challenges to be faced in the coming months. The service administered 37,000 claims for Housing Benefit and Council Tax Benefit and from April 2008 included administration of Local Housing Allowance. As an indication of the capacity of the service, he reported that 17,500 new claims and 44,000 changes of circumstances were processed annually, which translated to a total annual Benefit sum paid in excess of £122m and involved staff dealing with approximately 255,000 items of ‘post’ through the Civica Document Management system.
He outlined the performance of the Benefits Service, which received a top CPA score of 4 (Excellent) in 2007 and set out challenges for 2008/2009. He commented that close working with colleagues in Job Centre Plus was intrinsic to successful service delivery. However, a key challenge was to effectively overcome problems both regionally and locally, caused by the national restructure of Job Centre Plus. The Director had made appropriate representation to the DWP and hoped to be able to report improved liaison in the coming months.
Minute Decision :
Resolved - That the report be noted.
(Minutes Published: 16 June 2008)