Agenda and minutes

(Informal Joint) Performance and Audit Scrutiny Committee

 

Notes of Informal Discussions held on Thursday 28 January 2016 at 5.00pm in the Council Chamber, District Offices, College Heath Road, Mildenhall

 

PRESENT:       St Edmundsbury Borough Council (SEBC)

                             

Councillors Sarah Broughton

(Chairman of the informal discussions)

 

Councillors Carol Bull, Barry Robbins, Peter Thompson and Patricia Warby.

 

Forest Heath District Council (FHDC)

 

Councillors Ruth Bowman, Louis Busuttil, Simon Cole, Brian Harvey, Louise Marston, Christine Mason, Colin Noble, Peter Ridgwell and Lance Stanbury. 

 

IN ATTENDANCE:      SEBC – Councillor Ian Houlder, Portfolio Holder for Resources and Performance

                            

FHDC – Councillor Stephen Edwards, Portfolio Holder for Resources and Performance

 

FHDC – Councillor David Bowman, Portfolio Holder for Operations

 

Prior to the formal meeting, at 5.00pm informal discussions took place on the following five items:

 

(1)     Balanced Scorecards Quarter 3 Performance Report 2015-2016;

(2)     West Suffolk Strategic Risk Register Quarterly Monitoring Report – December 2015;

(3)     Delivering a Sustainable Budget 2016-2017 – Procedural Update (Verbal);

(4)     Development and Implementation of the Garden Waste Collection Service; and 

(5)     Work Programme Update.

 

All Members of St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee had been invited to attend the District Offices, Mildenhall to enable joint informal discussions on the above reports to take place between the two authorities. 

         

The Chairman of Forest Heath’s Performance and Audit Scrutiny Committee welcomed all those present to the District Offices, Mildenhall and advised on the format of the proceedings for the informal joint discussions and subsequent separate meetings of each authority, prior to handing over to the Chairman of St Edmundsbury’s Performance and Audit Scrutiny Committee, who would be chairing the informal joint discussions.

 

Members noted that each Council permitted public participation at their Performance and Audit Scrutiny meetings. Therefore, for the purpose of facilitating these Constitutional requirements, it was proposed that public speaking should be permitted prior to the start of the informal discussions to enable any questions/statements to be considered by both Performance and Audit Scrutiny Committees on items 1 – 5 above. On this occasion however, there were no questions/statements from members of the public.

 

Each report was then considered in the order listed on each authorities agenda.

 

1.     Balanced Scorecards Quarter 3 Performance Report 2015-2016

 

The Business Partner (Resources and Performance) presented the report, which set out the West Suffolk Balanced Scorecards being used to measure the Council’s performance for 2015-2016 and an overview of performance against those indicators for the third quarter of 2015-2016.  The six balanced scorecards (attached at Appendices A to F) were linked to the Head of Service areas, which presented the third quarter performance. 

 

Most indicators reported performance against an agreed target using a traffic light system with additional commentary provided for performance indicators below optimum performance. 

 

Across all service balanced scorecards, there were indicators measuring the performance of the transactional finance functions. These were “% of non-disputed invoices paid within 30 days” and “% of debt over 90 days old”. In the first and second quarters of the year, against these indicators, almost all services areas had failed to meet the targets of more than 95% of non-disputed invoices paid within 30 days and less than 10% of debt over 90 days old.

 

The finance and performance team had been working with service areas to try and improve performance against both of these measures.  As a result of this, three service areas were now achieving over 90% performance on invoices paid within 30 days, with one the these areas achieving over 98%. 

 

Members considered the report in detail.  In particular discussions were held on the planning and growth balanced scorecard (enforcement cases).  Members questioned whether there were enough enforcement officers to deal with the number of open enforcement cases (262), to which officers agreed to provide a written response.

 

Members were please to see that the planning service had improved.

 

2.     West Suffolk Strategic Risk Register Quarterly Monitoring Report – December 2015

 

The Acting Head of Resources and Performance presented the third quarterly risk register monitoring report in respect of the West Suffolk Strategic Risk Register. The Register was updated regularly by the Risk Management Group and at its recent meeting in January 2016 the Group reviewed the target risk, the risk level where the Council aimed to be, and agreed a current risk assessment.  These assessments formed the revised West Suffolk Risk Register (Appendix 1). 

 

Some individual controls or actions had been updated and those which were not ongoing and had been completed by December 2015 had been removed from the Register.  There had been no new risks or amendments made to any existing risks or any existing risks closed since the Strategic Risk Register was last reported to the Committee.

 

However, at the January 2016 meeting, the Group decided that in order to differentiate between an Action and a Control Measure, a new column would be added to the register.  The new column titled “TYPE” contained an “A” denoting an action was being put in place to help mitigate the risk which should have a target completion date or a “C” denoting it was a control measure being implemented and therefore a completion date was not applicable.

 

Members considered the report and did not raise any issues.

 

3.     Delivering a Sustainable Budget 2016-2017 – Procedural Update (Verbal)

 

The Acting Head of Resources and Performance provided a verbal update on the procedural process and the timetable for delivering a balanced budget for 2016-2017. 

 

The update included the Government’s Autumn Statement and the higher than expected reduction in Revenue Support Grant, which would be phased out by 2020, and there was no Council Tax freeze grant for the financial year 2016-2017.  Following the Autumn Statement the Councils General Fund levels were reviewed, and had been brought down to policy levels.

 

The Section 151 Officer would be holding budget presentations to Member Groups for both St Edmundsbury and Forest Heath, and Member Groups would also be considering Council tax levels.

 

Detailed budget reports would be presented to Cabinet on 9 February (St Edmundsbury) and 10 February 2016 (Forest Heath) and Council on 23 February (St Edmundsbury) and 24 February 2016 (Forest Heath).

 

4.       Development and Implementation of the Garden Waste Collection Service

 

  (Councillor Lance Stanbury arrived at 5.20pm during the consideration of this item.   Councillor Brian Harvey arrived at 5.40pm during the consideration of this item.  Councillor Louise Marston left the meeting at 5.50pm during the consideration of this item).

 

The Committee received Report No: PAS/FH/16/003, which updated Members on progress regarding the implementation of the new garden waste collection service.  Following on from the discussions at the Performance and Audit Scrutiny Committee held on 25 November 2015, this report outlined the:

 

-    Project plan key stages;

-    Summarised how the new service would work;

-    Subscription payment options;

-    Indicative administrative costs; and

-    Plans for managing unwanted brown wheeled bins.

  

Officers had reviewed the activities of other councils, which highlighted variations in the design and implementation of subscription charging, which was driven by key variables:

 

-    The extent to which online application and payment systems were available and used;

-    Whether the service was new or it was evolving from a “free” service;

-    The availability of in-cab technology to enable operational crews to identify which residents had subscribed; and

-    The preferred methods used by the council to communicate service changes and updates to residents.

The design of the service implementation in West Suffolk had taken into account the above plus the relevant experience of councils who had transitioned from a “free” service”.

 

Members scrutinised the report in detail and asked a number of questions to which responses were duly provided.  In particular discussions were held on:

 

-    Payment options: Officers advised that the majority of residents were happy to use direct debit or online services.  However, the Portfolio Holder reassured Members that the Council would also take cash payments as it wanted to encourage residents to subscribe to the garden waste collection scheme.  Members suggested that a future report be presented to the Committee, which provided a breakdown on how residents who did not pay their council tax by direct debit, what alternative payment methods they used.

 

-    Communications: Officers advised that it would be made clear to residents as to what could be put into the brown bins from 4 April 2016.  Letters would be sent to all households in mid February informing them of the service change and the application process.  Bin Hangers and additional communications would be carried out in March ready for the new garden waste service starting on 4 April 2016.

 

-    Fly-tipping: Members were advised that the potential for increased fly-tipping from April 2016 would be closely monitored.

 

-    Managing unwanted brown bins: Members supported the idea of encouraging residents to keep hold of their brown bin as this would avoid significant collection costs to the Council.  Residents might also change their mind and want to subscribe to the service during the main garden waste season, saving on the cost of re-delivering.  However, bins abandoned on the street would be collected.

 

5.     Work Programme Update

 

The Acting Head of Resources and Performance presented the report, which provided information on the current status of each Committee’s Work Programme for 2015-2016.

 

Members were advised that the scheduled meeting on 27 April 2016 had been deferred and would now be held on Wednesday 25 May 2016, at St Edmundsbury Borough Council, commencing at 5pm.  The reason for the deferral was due to the April meeting being too early to present to the Committee the various end of year reports, particularly the Financial Outturn Report (Revenue and Capital) (2015-2016) report.

 

On the conclusion of the informal joint discussions at 5.55 pm, Members of St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee withdrew from the Council Chamber to the Training Room to hold their formal meeting.

 

The Chairman then formally opened the Forest Heath District Council’s Performance and Audit Scrutiny Committee in the Council Chamber at 6.10 pm. 

 

 

 

The following substitution was declared:

 

Councillor Simon Cole for Councillor Andrew Appleby.

 

Apologies for absence were received from Councillors Andrew Appleby and  David Bimson.

 

Councillor Louise Marston was also unable to attend the meeting.

To confirm the minutes of the meeting held on 25 November 2015 (copy attached).

The minutes of the meeting held on 25 November 2015, were unanimously accepted by the Committee as an accurate record and signed by the Chairman.

Members of the public who live or work in the District are invited to put one question/statement of not more than 3 minutes duration relating to items to be discussed in Part 1 of the agenda only.  If a question is asked and answered within 3 minutes, the person who asked the question may ask a supplementary question that arises from the reply.

 

A person who wishes to speak must register at least 15 minutes before the time the meeting is scheduled to start.

 

There is an overall limit of 15 minutes for public speaking, which may be extended at the Chairman’s discretion.

 

Public participation had been included within the previous informal discussions and there had been no questions/statements from members of the public.

Report No: PAS/FH/16/001

(For reference purposes, St Edmundsbury Borough Council’s Report Number is PAS/SE/16/001)

 

(Report No: PAS/FH/16/001)

 

Further to the joint informal discussions held prior to the meeting with St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/FH/16/001.

 

Members had scrutinised the report and there being no decision required, the Committee noted the Council’s performance using the Balanced Scorecards for Quarter 3, 2015-2016.

Report No: PAS/FH/16/002

(For reference purposes, St Edmundsbury Borough Council’s Report Number is PAS/SE/16/002)

 

(Report No: PAS/FH/16/002)

 

Further to the joint informal discussions held prior to the meeting with St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/FH/16/002.

 

Members had scrutinised the report and there being no decision required, the Committee noted the contents of the Quarter 3 West Suffolk Strategic Risk Register monitoring report.

Further to the joint informal discussions held prior to the meeting with St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee, the Committee formally considered the verbal report.

 

Members had scrutinised the information and there being no decision required, the Committee noted the contents of the verbal update.

 

Report No: PAS/FH/16/003

(For reference purposes, St Edmundsbury Borough Council’s Report Number is PAS/SE/16/003)

 

(Report No: PAS/FH/16/003)

 

Further to the joint informal discussions held prior to the meeting with St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/FH/16/003.

 

Members had scrutinised the report in detail and had asked a number of questions to which responses were duly provided.

 

In particular Members discussed the various payment options, and suggested that a future report be presented to the Committee, which provided a breakdown on how residents who did not pay their council tax by direct debit, what alternative payment methods they used.

 

There being no decision required, the Committee noted the contents of the report.

 

Report No: PAS/FH/16/004

(For reference purposes, St Edmundsbury Borough Council’s Report Number is PAS/SE/16/004)

 

(Report No: PAS/FH/16/004)

 

Further to the joint informal discussions held prior to the meeting with St Edmundsbury Borough Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/FH/16/004.

 

Members had scrutinised the report and noted that the meeting scheduled for Wednesday 27 April 2016 had been deferred and would now be held on Wednesday 25 May 2016, at St Edmundsbury Borough Council, commencing at 5.00 pm.

 

There being no decision required, the Committee noted the contents of the work programme and that:-

 

1.       The next meeting of the Committee would be held on Wednesday 25 May 2016, and

 

2.       A future report be included in its forward work programme on how residents who did not pay their council tax by direct debit, what alternative payment methods they used.

 

 

 

Report No: PAS/FH/16/005

 

(Report No: PAS/FH/16/005)

 

The Committee received Report No: PAS/FH/16/005, which set out the financial performance for the third quarter of 2015-2016 and forecasted outturn position for 2015-2016.

 

The current forecast position for the Revenue Budget year end was expected to be on budget (Appendix A and B).  Members were requested to note the current position and the significant variances as outlined in paragraph 1.2.3 of the report.

 

In terms of the Council’s Capital Finance position, the Council had spent £3,669,269 of its capital budget of £14,505,247 at 31 December 2015 (Appendix C).  The table set out in paragraph 1.3.2 of the report provided a high level summary of capital expenditure against budget for 2015-2016, as well as the year end forecast variances of £6,801,00.

 

Finally attached at Appendix D was a summary of the earmarked reserves along with the forecast year end position for 2015-2016.

 

The Resources team would continue to work with Budget Holders to monitor capital spend and project progress closely for the remainder of the financial year and an outturn position would be presented to the Committee at the end of the financial year.

 

Members discussed the report in detail and, in particular, Appendix C and raised the following questions:-

 

(a)     Valley Way, Newmarket - Shops

Members noted that there was a projected yearend underspend on this project of £20,000, which was to be funded from part of the underspend on the Brandon Leisure Centre project.  Members asked where the approval had been given for this budget underspend to move from one project to another.

 

(b)     Guineas Car Park, Newmarket – Energy Efficient Lighting

Members noted that as at December 2015, there was no expenditure on this project, however, a budget of £75,000 had been allocated.  Officers explained that an order had been placed for these works, which should be in line with the budget forecast for the year end and this was also expected to have been spent by the year end.

 

Members also asked as to whether there was a payback/revenue saving for this particular project within the business case.

 

In relation to the questions raised in (a) and (b) above, the Business Partner stated that he would liaise with the service areas concerned and would provide the Committee with further information, outside of this meeting.

 

There being no decision required, the Committee noted the Quarter 3 financial performance report 2015-2016.

Report No: PAS/FH/16/006

(Report No: PAS/FH/16/006)

 

The Committee received Report No: PAS/FH/16/006 which presented the Council’s Treasury Management Report which summarised the investment activities for the period to 31 December 2015.

 

The budgeted income from investments for the period 1 April to 31 December 2015 was £284,625.  Interest actually earned during the period totalled £316,117, which was an overachievement of £31,492.  This overachievement was predominantly due to increased cash flow/money available for investment as a result of the timing of large value transactions, such as NNDR receipts and payments and capital programme slippage.

 

The Council continued to hold its general policy objective, which was to invest surplus funds prudently, with security of its investments as its primary objective.  The base rate remained at 0.5% throughout the period and most market analysts continue to predict that this would continue throughout 2015/2016, with a small staged increase not expected until 2016.

 

Members discussed the report and asked questions, to which responses were duly provided.

 

There being no decision required, the Committee noted the contents of the report.

Report No: PAS/FH/16/007

(Report No: PAS/FH/16/007)

 

The Committee received Report No: PAS/FH/16/007 which sought approval for:

 

·         The Annual Treasury Management and Investment Strategy Statements 2016/2017 (including treasury related Prudential Indicators).

 

·         The Treasury Management Code of Practice.

 

The Committee were informed that with the recent changes to the Business Rates Retention Scheme and other funding/grant arrangements, the Council was experiencing increased short term cash surpluses, due to the timing difference between receiving the monies and paying them over to County and Central Government etc..  Therefore, it was requested that the Council agreed to an increase in the investment limit, with suitable counterparties, as defined by the Annual Treasury Management and Investment Strategy Statements, by £500,000 per counterparty.  The revised limits were detailed in paragraph 1.2.3 of the report.

 

Members discussed the report and asked questions, to which responses were duly provided.

 

With the vote being unanimous, it was

 

          RECOMMENDED:

 

          That subject to the approval of Cabinet and Council:-

 

1.           The Annual Treasury Management and Investment Strategy Statements 2016/2017 (as set out in Appendix 1 and 2 of Report No: PAS/FH/16/007), be approved.

 

2.           The Treasury Management Code of Practice (as set out in Appendix 3 of Report No; PAS/FH/16/007), be approved.