Agenda item

An update from the Cabinet Members on key areas within their portfolios are attached.

The Cabinet Member for Finance and Corporate Services will be in attendance to answer questions from the Committee.

5.1     The Committee received written updates from the Cabinet Member for Finance and Corporate Services and the Cabinet Member for Housing, Regeneration, Business & Economic Development on the key aspects of their portfolios. 

5.2     The Cabinet Member for Finance & Corporate Services responded to questions on the following matters:

          The Council’s Annual Accounts

5.2.1 The Committee asked whether the Council intended to submit the 2016-17 accounts to its external auditors even earlier than it had over the last two years.  Concern was raised whether this could have implications for the accuracy of the accounts of arm’s length organisations which may not be as able to meet such a challenge.  Steven Mair, City Treasurer, informed members that this year’s accounts were submitted on 9 April.  The finance team intended to build on this achievement and submit the 2016-17 accounts on the 6^th April 2017.  He advised that the auditors had not identified any errors in last year’s accounts and had commented on their quality.  He clarified that the pace of preparation of accounts was to help drive quality improvements, to free up resource earlier to address in year issues etc and thus was part of the transformation of financial management.  He explained that the finance team would work with other bodies to meet the target and that risk and communication plans had been developed to facilitate this.

          Local Government Financial Settlement

5.2.2  The Cabinet Member was asked about the benefits and disbenefits of entering into a three-year local government finance settlement and whether any other local authorities were opting to take a different approach.  The Cabinet Member explained that in order to take advantage of the three-year settlement offer the Council will need to prepare a forward-looking efficiency plan.  This will need to be submitted in the autumn.  No guidance had been provided on what such a plan should consist of.  He advised that while the settlement would provide some financial certainty it would not provide total certainty as the authority also relies on funding from other forms of income.  The City Treasurer advised that he was not aware of any local authority that was not taking up the offer.

          General Fund Reserves

5.2.3  The Cabinet Member was asked about the Council’s policy approach to the level of general reserves.  He advised that the Council wished to build up its reserves to between £40m and £50m after having to draw heavily on them following a fall in revenue after the recession in 2008/9.  This would enable the Council to earmark funds for individual departments if required.

          Budget Monitoring

5.2.4             Members asked how the new budget monitoring tool would help to address some of the issues in the Managed Services Programme.  The City Treasurer explained that the tool would enable budget managers to upload accruals and forecasts into Agresso which then directly feed into monitoring packs to provide more reliable financial forecasts.  He advised that training would be delivered by finance managers to budget managers.  He acknowledged that some Westminster schools and other education establishments had faced difficulty in using Agresso.  Although the situation had improved additional resources were being put in place to provide further training to them.  He advised that although there was still a backlog of manual payments to be processed the numbers needing to be made had reduced dramatically in the current financial year.  He asked Members to let him know of any payments that were not progressing so that the issue could be looked into.

          Managed Services Programme

5.2.5     The Committee asked when the key and supporting items of functionality that had to be deferred because of the year end closure timing issues would be implemented.  The City Treasurer advised that key items of functionality deferred and currently planned for implementation included asset management and accounting module and debt management. He explained that debt management was expected to be implemented over the summer.  The Council was using the time in the interim to undertake testing to ensure that as far as it was able debt recovery will roll out successfully once it goes live.    The largest debtors would be contacted first to reduce the risk to the Council.  He advised that the Agresso system was continuing to improve and further enhancement to it was planned.  Although a number of issues identified in the managed services programme were on-going the number of occurrences had reduced.

          Graduate Recruitment

5.2.6  The Committee asked for details about the graduate recruitment process.  The Cabinet Member explained that there is a local government recruitment process.  Graduates that express an interest are shared out across the sector.  He suggested that given the prestige associated with working in certain central London boroughs the Council should perhaps consider developing its own scheme or in conjunction with London Councils.

5.3     The Committee submitted a number of questions in relation to the update from the Cabinet Member for Housing, Regeneration, Business & Economic Development.  In the absence of the Cabinet Member the committee requested that these be responded to by way of written replies.

5.4     RESOLVED: That the updates from Cabinet Members be noted.

5.5     ACTION:

1.       Provide Councillor Roca with a note on the Council’s work to promote apprenticeships including the number provided within the Council and its contractors.  (Action for: Greg Ward, Director of Economy & Infrastructure)

2.       Following a recommendation at a previous meeting, provide details of the number of Members that have raised housing issues with CWH.  (Action for: Barbara Brownlee, Director of Housing & Regeneration and Marc Wolman, Director of Customer Services, CityWest Homes)

3.       Provide Councillor Rigby with a note on the results of the CWH annual tenant and lessee satisfaction survey for 2015/16 and how these compare with the previous year’s survey results.  (Action for: Andrea Luker, Head of Strategy and Quality, CityWest Homes)

4.       Provide an update on progress in appointing a private market operator to run Berwick Street Market.  (Action for: Greg Ward, Director of Economy and Infrastructure).