Agenda item

The panel to undertake gateway review 2 of the following service plans:

·          Financial Management Services

·          Revenues and Benefits

·          Assets and Facilities Management

·          Business Management and Engagement

·          Legal Services

Copies of the relevant service plans will be distributed to members of the panel as background papers. Additional copies will be available on request to the Scrutiny Support Officer.

The Service Manager for Finance and Risk Management gave a presentation on each section of his draft service plan for 2007/08:

Section 1 – Setting the Scene: the remit of the service was now considerably broader, incorporating accountancy, risk management, internal and external audit, and exchequer services. The service was now a category A priority.

Section 2 – Where are we now?: internal and external customer consultation and proposed changes were outlined, as were key achievements and outcomes such as the closure of the 2005/06 accounts and initial results from benchmarking. The Use of Resources assessment action plan was being drafted and would be available for scrutiny. Members questioned why the service plan indicated that no market testing had been carried out in relation to outside providers.

Section 3 – Where do we need to be?: the ‘SWOT’ and ‘PESTLE’ analysis had been completed. It had been a turbulent year with loss of key staff in accountancy. Recruitment was ongoing but proving challenging due to a variety of factors, especially for a housing accountant as there was a national shortage. This was discussed the panel.

Section 4 – How do we get there?: an ambitious action plan had been presented with several objectives. The panel scrutinised the objectives relating to the Cedar system and the publication of customer-focussed publications.

Section 5 – Gershon & Efficiency: 2005/06 targets had been met and for 2006/07 the section was currently on target. Future efficiencies were identified in the plan. The danger of double accounting was addressed and the officer advised the panel that for its final gateway review it should oversee all plans to ensure that savings were correctly allocated.

Section 6 – Financial Summary: some growth had been identified for employees but this was mainly due to an amalgamation of services. New resource needs had been identified for risk, exchequer, accountancy and concessionary travel. A capital purchase would be required for a budget monitoring finance module for April 2007.

Section 7 – Risk: four areas of risk had been identified for the service: further loss of staff was a real threat; full details of the new concessionary travel scheme were not yet known; there was potential for a lack of corporate buy-in of the Cedar system; and corporate step changes would be required for implementation of a Use of Resources action plan. The panel particularly focussed on the staffing issue, as current salaries may not retain staff, and asked that its concern about current low performance in completing staff performance development reviews (PDRs). A member asked if sufficient training had been provided on PDRs and it was agreed that this be reported at a future meeting.

Conclusions:

Having reviewed the 2007/08 service plan for Finance and Risk Management against the Gateway Review 2 checklist, the Resources DSP found that:

1.      All budget figures for the current year and future years had been identified in the service plan.

2.      All staffing resources had been identified and costed in the service plan.

3.      All other relevant costs had been identified and included in the service plan.

4.      There was clear quantification of how the service contributed towards the council priorities.

5.      Any relevant inflationary increases had been absorbed.

6.      The balanced score card was complete and evidenced.

7.      Any relevant income streams had been reviewed and inflationary increases applied.

8.      Gershon efficiency savings had been identified and evidenced.

9.      Risks had been identified and actions for mitigation applied.

10.Any major deviations to the current budget had been identified.

11.Work on equality costs in relation to concessionary travel was continuing.

12.Section 4 of the service plan had been adequately completed and resources costs identified.

13.The SWOT analysis had been completed.

14.The PESTLE analysis had been completed.

15.The financial summary had been completed.

16.The major procurement proposal for the next three years had been identified and costed.

17.Service staff had been consulted on compilation of the service plan. 

18.There were no capital projects identified for the next 3-5 years.

Other observations made were:

The awaited Internal Customer Satisfaction Survey results to be reported at gateway review 3.

The Resources DSP at its meeting on 18^th January 2007 to scrutinise the effect of the council’s salary levels and benefits on recruitment. The Chief Executive to be invited to this meeting for this item and to be asked to report on the reduction of risk using outside providers of financial services.

The Resources DSP to express its concern to the Service Manager for Human Resources about the low rates of completed staff PDRs. Training provision on the completion of PDRs to be reported to a future meeting.