18 July 2006 - Minutes

BABERGH DISTRICT COUNCIL

OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE

MINUTES OF A MEETING OF THE OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE HELD IN THE COUNCIL CHAMBER, COUNCIL OFFICES, CORKS LANE, HADLEIGH ON TUESDAY, 18 JULY 2006

PRESENT: Ms J A Jenkins – Chairman

Mrs S P Clarke and Mr J M Owen were unable to be present at the meeting.

15    SUBSTITUTE

It was noted that in accordance with Council Procedure Rule No. 5 a substitute was in attendance as follows:-

Mr D L Wood (substituting for Mrs S P Clarke)

16     DECLARATION OF INTERESTS

There were no declarations of interest.

17     MINUTES

RESOLVED

That the Minutes of the meeting held on 23 May 2006 be confirmed and signed as a correct record.

18     PETITIONS

None received.

19     QUESTIONS FROM MEMBERS

None received.

20     WORK PLAN

The Head of Corporate Services submitted a report (Paper F50), which provided details of the Committee’s anticipated work for the remainder of 2006/07, including items which may be the subject of Call In Procedures.

Members noted that the Service and Financial Planning Group would be meeting on 21 July 2006 and would be discussing its approach for the coming year. The outcome of these discussions would be reported to the next meeting of the Committee.

In relation to the meeting to be held on 28 November 2006, it was agreed to include the following in the Work Plan:-

• Items arising from Minute 13 (the average number of days sick per member of staff, and general fund savings through implementation of the Procurement Strategy and Action Plan)
  
• A report outlining an approach towards an integrated strategic finance and policy management process for 2008/09.

RESOLVED

That the Work Plan submitted as Paper F50 be noted.

21     CAPITAL PROGRAMME OUTCOMES 2005/06

The Head of Finance and the Head of Contract and Asset Management submitted a joint Report (Paper F51) setting out progress on the Capital Programme to 31 March 2006 under the agreed Performance Management arrangement.

In the ensuing discussion the following were among the points noted:-

• 85% of the Council Housing programme and 86% of the programme for other services had been spent. The main reasons for the shortfall on Council Housing were that the Sandringham Court project had been delayed while the design brief was revised and that the Stour House project had been deferred pending a fundamental review of the Council’s Homelessness Service.
  
• In spite of the shortfall against targets, there had been a considerable improvement in performance compared to the year 2004/05.
  
• In relation to Leisure and Community Services, it was clarified that a total of £134,000 had been spent by 31 March 2006 with £143,600 being carried forward for expenditure on the new Leisure Trust (as shown in the Appendix).
  
• Members expressed concern that more than £1m had been carried forward to 2006/07, and questioned whether the Council tended to be over-optimistic in setting its Annual Capital Programme. It was agreed that the Capital Programme needed to be challenging but achievable, and that this was a matter for consideration by the Service and Financial Planning Group. It was further noted that some underspending on the Revenue Programme has been flagged in the CPA review.
  
• Members received detailed explanations for some of the carry forwards set out in Appendix B to Paper F51 and officers were asked to provide the Committee at its next meeting with an update on all the items listed in the Appendix.
  
• It was recognised that the report dealt only with the year 2005/06, whereas this was part of a three-year programme within which there was flexibility to defer or bring forward items as necessary.

RESOLVED

That the outcomes on the Capital Programme for 2005/06 as set out in Paper F51 be noted.

22     2005/06 ANNUAL REPORT – INTERNAL AUDIT

The Head of Finance submitted a report (Paper F52) setting out the outcomes of the work undertaken by Internal Audit Team during 2005/06.

It was noted that from the work undertaken during 2005/06, it could be concluded that key systems of internal control were operating soundly and that there had been no fundamental breakdown of controls. It was also noted that satisfactory arrangements were in place to ensure the effective, efficient and economic operation of the Council’s financial affairs. Members were reminded that this statement was intended to provide reasonable assurance regarding the operation of the Council’s internal control environment.

It was confirmed that in order to prevent benefits underpayments, procedures were in place to check that calculations were accurate. In addition, campaigns were run from time to time to raise public awareness of entitlement to benefit.

RESOLVED

(1)    That the position regarding the 2005/06 Internal Audit work as set out in Paper F52 be noted.

(2)     That a further report be submitted during 2006/07 on progress on outstanding actions in relation to key areas where weaknesses had been identified.

23     STRATEGIC RISKS – QUARTERLY MONITORING OF ACTION PLANS - QUARTERS ENDED 31 MARCH AND 30 JUNE 2006

The Head of Finance submitted a report (Paper F53) giving the latest position on the Council’s Strategic Risk Management Action Plans.

In the ensuing discussion the following were among the points noted:

• Embedding Risk Management was a key priority and it was likely that this would be a major area of focus for the Audit Commission in 2007/08, featuring strongly in the Use Of Resources Assessment and Comprehensive Performance Assessment.
  
• Appendix A to Paper F53 set out the risks that had been identified in 2005 and the action taken to mitigate them. Already some of the risks had changed, so they would need to be reviewed in the coming months.
  
• It was intended to modify the Committee’s Work Plan so that in future most of the key items would be related to the risks considered to be above the Council’s risk tolerance level.
  
• Some Members considered that it was misleading to describe the impact of some risks as “catastrophic”, but they recognised that this was the categorisation agreed in risk assessment work that was undertaken about a year ago. A different view may be reached now and these categorisations would be re-assessed as part of the forthcoming review.
  
• In response to Member’s questions, updates were given on the current risks relating to CAST, the results of Business Process Re-engineering, Local Government Reorganisation, and breakdown of political consensus. Members agreed that they would welcome an opportunity to discuss in greater depth the issues outlined in Paper F53, through a risk assessment workshop.

RESOLVED

(1)     That the “Risk Management Action Plan Progress” table set out in Appendix A to Paper F53 be noted.

(2)    That a Workshop be arranged to enable Members to consider further a future process for identifying and managing the strategic risks to the Council.

24     BENEFITS SERVICE PERFORMANCE AND SERVICE DEVELOPMENTS – 1 APRIL 2006 TO 30 JUNE 2006

The Head of Customer Services presented a report (Paper F54) setting out the performance of the Benefits Service for the period 1 April 2006 to 30 June 2006, and describing service developments being implemented following the Business Process Re-engineering project.

It was noted that as at 30 June 2006 151 claims had been handled following the new process outlined in paragraph 4.1 of Paper F54, which represented approximately 25% of the total.

The Head of Customer Services was asked to send Members an e-mail setting out savings and efficiencies achieved since the Best Value Review carried out in 2003.

RESOLVED

That the performance of the Benefits Service and the development in progress during the period 1 April 2006 to 30 June 2006 as set out in Paper F54 be noted.

Note: The Committee adjourned for refreshments between 11.30am and 11.50am.

The business of the meeting was concluded at 12.15pm.

Chairman