Agenda item

The notes of the meetings of the Budget Working Group on 15^th August and 12^th September 2005 for information.

(Enclosure)

Members of the Budget Working Group are invited to join the Resources DSP to consider:

·          Budget Preparation

·          Value for Money 

·          Capital Programme

The Resources DSP welcomed Councillors Bryant, Joynson and Mike Taylor from the Budget Working Group for this item.

Working Group Notes

The notes of the two working group meetings held on 15^th August 2005 and 12^th September 2005 had been circulated with the agenda. The group was concerned that there had not been feedback on the conclusions from the meetings. They acknowledged that the group was only advisory but members considered communication important and therefore requested that this be improved. The Corporate Director of Finance and Strategic Resources and the Portfolio Holder informed the Committee on progress with each conclusion from the working group.

The group proceeded to discuss progress with submission of senior managers’ service plans. Members wanted assurance that the new deadline of 14^th October 2005 would be met. The Portfolio Holder was confident that this was achievable and discussed briefly with the group methods of monitoring progress.

Conclusion:

Feedback on conclusions be circulated with meeting agendas where possible.

Value for Money Trend Analysis

An updated copy of the Chief Executive’s Cabinet Briefing Paper on this issue had been circulated previously. A few minor alterations were suggested and these were noted.  Clarification was sought on paragraph 4.9 concerning the council’s low level of expenditure not correlating with its score on the deprivation index. The Corporate Director explained that this could indicate that there was insufficient investment in reducing deprivation. Members were encouraged, however, by paragraph 4.6, which evidenced that success could be achieved without excess expenditure. Members focussed on the waste collection and recycling comparison analysis with other similar authorities. The performance rating was not high, especially as the cost per head was above mid-point. Members were sure, however, that the service delivered at the current cost given the rurality of the district was good. It was noted that members received good feedback from residents on the waste management service. The limitations of comparisons with other authorities were discussed, as expenditure was not a measure of effectiveness, but it was noted that comparison analysis could be used as a good starting point for service improvement.

The Value for Money assessment would take place shortly with initial draft feedback expected in December and a formal submission included in the Auditor’s management letter in March 2006. Members were concerned that customer satisfaction, which was paramount to service delivery, was not considered in the assessment. Low council tax, prioritisation and capping were discussed in the context of the assessment. 

Budget Preparation

In addition to the previous discussion on service plans, the Portfolio Holder reminded members that his intention was still to delegate scrutiny of service plans to all members to be submitted to the DSP for final recommendation to the Portfolio Holder. It was noted that DSP meetings may be split up to undertake this work.

Conclusion:

The DSP to scrutinise service plans at future meetings.

Lincolnshire’s Missing Millions Campaign 

The Corporate Director of Finance and Strategic Resources had circulated a briefing paper on the ODPM consultation paper for Lincolnshire Local Authorities. This had been commissioned from Rita Hale & Associates for Lincolnshire as part of the Missing Millions Campaign. This was being considered by a meeting of the Lincolnshire Finance Officers Group and a member meeting the following week. Relevant to South Kesteven were the Environmental sections of the paper.  It had been suggested that there should be a separate section of the Revenue Support Grant for waste management and Corporate Director stated his support for this. He explained, however, that the Missing Millions campaign was a joint effort of district councils, the county council and the Lincolnshire Police Authority to pursue the benefits for Lincolnshire; separate campaigns may jeopardise an overall benefit for residents throughout Lincolnshire.

A few specific sections of the briefing paper and issues including macro-economic and council tax revaluation were discussed. Members were very pleased with the work of Rita Hale & Associates.

Conclusion:

To support the joint approach undertaken by the Lincolnshire’s Missing Millions Campaign.

Internal Audit Final Report 2004/2005

One member noted that the DSP had recommended to Cabinet at its last meeting to investigate the number of outstanding recommendations documented in the previous internal auditor’s final report for 2004/2005. The Chairman agreed to speak with the Leader on this matter. The Corporate Director added that the current internal auditors would be meeting with this DSP later in the year and that this may be an appropriate issue to raise with them.