Agenda item

To present the report of the Finance Scrutiny Panel.

The report of the Scrutiny Manager providing a progress update on the matters considered by the Finance Scrutiny Panel at its meetings held on 17 August and 29 September, 2017 was presented for the Committee’s consideration.

The Head of Function (Resources) and Section 151 Officer reported that the Panel was established to enable a group of Scrutiny Members to delve into financial matters in greater depth than the parent Committee’s schedule and work programme are able to allow, and to thereby develop a better understanding of the narrative behind the budgetary and financial data that is presented. The Panel has met on three occasions hitherto and whilst it is still early in terms of this process, the panel is seen as a positive step forward in developing scrutiny work.

Councillor Dafydd Roberts, a Partnership and Regeneration Scrutiny Committee representative on the Finance Scrutiny Panel said that the Panel has concentrated on Budget monitoring and, having analysed the 2017/18 Quarter 1 report on the Revenue Budget, it has flagged up the overspends in Children’s Services and the Learning Service as areas of concern and has asked the respective Heads of Service to provide an explanation of the mitigation measures that are being taken to address the situation. The Panel has also scrutinised the Medium Term Financial Plan, in particular the principles and assumptions underlying the plan for the next three years. At its most recent meeting held on 25th October, the Panel looked at the annual budget setting process including scrutinising in detail the initial budget proposals.

The Committee noted the report back provided by the Finance Scrutiny Panel and noted also that the Panel is following through on the concern it has expressed with regard to aspects of budget management in Children’s Services and the Learning Service. The Committee referred to the Council’s annual energy consumption and energy expenditure and asked whether any work was being done in this area. The Committee noted that this could be a productive area for scrutiny especially in terms of the potential for efficiency savings, energy being one of the largest controllable overheads in the Council’s buildings.

The Head of Corporate Transformation said that the Council does have a recently adopted Energy Management Strategy which is regularly reported upon to the Corporate Land and Building Assets Group to ensure progress against the energy efficiency plan is made and that energy efficiency is a key consideration in planning for future assets.

The Chair said that he would endeavour to ensure the matter is given consideration as the Committee’s Forward Work Programme allows.

It was resolved –

•           To note the progress made to date with the work of the Finance Scrutiny Panel.

•           To note that processes pertaining to budget monitoring for 2017/18 and budget setting for 2018/19 appear to be on track.

•           To note the concern expressed by the Panel regarding the

overspend in Children’s Services and the Learning Service and to endorse the follow-up action taken by the Panel to establish what remedial steps are being taken to address the overspend.

•           Based on the assurance provided by the Panel, to recommend to the Executive that the principles and assumptions underpinning the proposed Medium Term Financial Plan are robust and based on the best available information.

ADDITIONAL ACTION PROPOSED: Scrutiny Manager in consultation with the Chair and Vice-Chair to consider how Energy Management might be incorporated for scrutiny within the limitations of the Scrutiny Work Programme.