Issue - meetings

Report of the Director of Finance.

Having also considered confidential Appendix 5 to the report, it was

RESOLVED:  That 

(1)          the revenue and capital forecast positions as at Quarter 2 2016/17 be noted;

(2)          the latest quarter’s performance report from Concilium Business Service, as detailed in Appendix 5 to the report, be noted;

(3)          the Corporate Director of Resources and Commercial, following consultation with the Portfolio Holder for Finance and Commercialisation, be authorised to approve the varying of Concilium Business Services shareholders’ agreement via an appropriate Deed of Variation in line with the details within this report;

(4)          the proposed reduction to the 2016/17 Capital Programme, as outlined in paragraphs 3.10 to 3.13 of the report, be noted;

(5)          the addition to 2016/17 Capital Programme, as outlined in paragraphs 3.20, 3.43 and 3.44 of the report, be approved.

.

Reason for Decision:  To be availed of the 2016/17 forecast financial position as at 30 September 2016 and to approve budget adjustments in accordance with Financial Regulations.

Alternative Options Considered and Rejected:   As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet member/Dispensation Granted:  None.

Report of the Director of Finance.

The Sub-Committee received a report of the Director of Finance on the Council’s revenue and capital monitoring position as at Quarter 2 2016/17 as at 30 September 2016, which was due to be considered by Cabinet at its meeting on 8 December 2016.

Following an overview of the report by the Director of Finance, Members asked the following questions and received responses from the officer and Portfolio Holder:

Q -       What was the reason for two items previously charged to the Housing Revenue Account now being charged to the General Rate Fund? (paragraph 2.30)

A –      The expenditure was for a Social Worker focussing on families in social housing.

Q –      A report on the Multi Agency Safeguarding Hub had been submitted at the beginning of the financial year so should the budget pressure have been foreseen?

A –      In addition to funding for the known pressure, provision for growth had been built into the budget arising from an increased number of children in placements.

Q –      There was already a £1.3m variation from the first two quarters for waste management.  What action was being taken as a result of the failure to take into account the cost implications of incorrect assumptions including the take up of the brown bin service, reduction in recycling figures, fly tipping, and the rising cost of residual waste?  Route optimisation had resulted in much less saving as residents had been opting in and out of the service and the technology had not been successful.  Is the Director of Finance satisfied with the assumptions made by the Corporate Director Community and is a robust plan for waste in place?  What was the involvement in the pricing of the service as Harrow had one of the highest charges for waste collection in the country?

A-        Series of actions had been put into place to positively address the underlying financial pressures.  There had been a cumulative reduction in the rate support grant for Harrow of 93% and contractor costs had risen.  A business case, including prices based on different scenarios, had been agreed for garden waste prior to implementation and subsequent challenges required flexibility in the scheme.  The current Director of Finance had not been in post when the original business case was done. 26,000 residents had signed up for the garden waste scheme which was approximately £500,000 down against income target.  There was a need to improve forecasting particularly with regard to revenue and cost implications.

All new business cases were robustly challenged, including examination by the Commercialisation Board.  All schemes were expected to generate value for contracts and customers, cover costs and make a maximum return on investment.

It was agreed that a Member receive a copy of the waste services business case and marketing strategy, to include documentation on pricing and  possible take up.

The service was confident that improvements would be made for the next year such as direct debit payments, and reductions through route optimisation. 

The Chair reported that the environment scrutiny  ...  view the full minutes text for item 75