To consider the WAO’s Annual Improvement Report.
Minutes:
Documents:
· WAO Annual Improvement Report 2017-18
· Report of the Leader and Deputy Leader
· Draft Annual Performance Report 2017-18
Discussion:
· The report provided a summary of work completed in the Audit year 2017/18
· There was an acknowledgement that the Council had been through a difficult period and this was reflected in the report
· The Statutory Recommendation that had been issued was reiterated
· The key messages were that the Council had to move forward and do so quickly and with pace and energy
· An Audit Programme for the year has been agreed and reports will come forward in due course
· The WAO were questioned as to why there were no recommendations aligned to the comments regarding bullying and harassment. The Fairness and Dignity at Work Policy had been withdrawn. However, there had been a previous report on Whistleblowing and the Council had improved from the time of that recommendation. An existing recommendation is in place and this provides the mechanism for review at any time. The WAO suggested that the Committee may wish to consider inviting an officer to attend Committee to report on progress made. Clarity was required as to whether the Policy included Members.
· The Committee asked the Portfolio Holder what progress had been made in dealing with the Statutory Recommendation – the Portfolio Holder confirmed that a considerable amount of work had already taken place and budget planning had begun immediately the current year’s budget had been approved. A Panel comprising himself, the Leader, Chief Executive and Head of Financial Services was reviewing all savings proposals. Challenge had been provided and some proposals were being reviewed by the service. Eventually, these proposals would be considered by the Finance Scrutiny Panel.
· The WAO commented that considerable effort had been put into the Medium Term Financial Strategy (MTFS) but there was a need to see a longer term view. A short term outlook did not encourage longer term planning. The Council must address the transformation programme to address the medium and longer term.
· It was noted that the report was historic and it was questioned how this report could help the Audit Committee. The Portfolio Holder advised that the Authority responds to individual reports as they are released and the WAO will form a view on those responses.
· Two amendments to policies were benefitting the Authority. Firstly, adjustments to the Minimum Revenue Policy and secondly the use of Capital Receipts. These are being used to support the revenue budget in the next two to three years but it was essential that planning take place to address the period beyond that. It was suggested that the use of these funds should be directed towards transformation projects. The Head of Financial Services responded that robust plans had been in place which had been affected by the requirement for significant investment in social care late in the previous year. It was critical that a four to five-year plan be developed which was robust in the longer term and work would commence as soon as the 2019/20 budget had been agreed. Members suggested that this had been proposed for some time and were concerned that work was only now starting on the longer term plan. Assurance was needed that this was in hand and that Members would be aware of what was happening in the future.
· The Portfolio Holder for Finance advised that the MTFS was in draft form but that budgeting for the current year needed to be incorporated within it. However, there was a plan which identified challenges and provided a direction for the future.
· The WAO reiterated the need to develop a transformation and change programme. The budget has been balanced through the use of technical adjustments and windfalls. Different ways of working were needed and it was acknowledged that difficult decisions regarding what will be provided in the future will need to be made. Transformation is key and will take time to implement.
· The Portfolio Holder reminded Members that there would be a Members Budget Seminar on 20 November 2018
· A member seminar was also to be arranged on the proposed scrutiny structure. A number of Members had had concerns that the existing process had not permitted adequate oversight of the budget setting process.
· Members were aware that there had been a wish to develop three and five year plans but that there had been consistent failures to deliver savings. If this fails in the first year there is a significant impact on years two and three.
· It was considered that the statement in the Annual Audit Letter and the Statutory Recommendation amounted to the same issue – was this not addressed adequately at the first stage? The Head of Financial Services advised that the recommendation had been received too late in that financial year and the budget plan was already in place. Only 70% savings were being achieved. The budget for 2019/20 could see the removal of £3.9M of unachieved savings if approved. The new process was thought to be more robust. Business cases and Impact Assessments have been provided for all savings proposals. Some of the remaining savings have been replaced and those that are left will be achieved in future years. There are proposals for a more detailed savings report to be delivered to Cabinet on a quarterly basis.
County Councillor B Baynham arrived at 10.40
· It was noted that difficult decisions would need to be made and that some may be politically difficult to deliver. The Authority will look very different going forward, as will other local authorities. The status quo is not an option but it was important to manage change. There needed to be an understanding and an acceptance that some services may no longer be deliverable. Members reminded the Committee that often there was pressure on politicians and that proposals must be discussed as early as possible. It was suggested that officers should use politicians to deliver the proposals and work with communities. Transformation must be communicated to communities and a goal must be in sight. The Portfolio Holder emphasised that expectations in communities should not be raised and that a realistic approach should be taken.
Outcome:
· The report was noted
Supporting documents: