PAPER F
SCRUTINY COMMITTEE INTERIM REPORT
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RESPONSIBLE BODY Scrutiny Committee |
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ENQUIRY NAME 2006/07
REVENUE BUDGET EFFICIENCIES |
REFERENCE NUMBER SC08/06 |
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1
OUTLINE OF ENQUIRY AND PROPOSED OUTCOME 1.1
This is a standing enquiry throughout the
financial year into the delivery and impact of the 2006/07 Council’s Revenue
Budget efficiencies. 1.2
The 2006-07 revenue budget is of significant
public interest and is being examined to ensure the delivery and impact of
service efficiencies does not have a detrimental effect on service users and
the local economy. |
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2
RECOMMENDATIONS 2.1
That there is a need to make available to all members of the Council
updated budget monitoring reports on a monthly basis. 2.2
The introduction of Service Boards, and the strategic role that they
play in financial monitoring, be welcomed. |
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3
BACKGROUND TO THE ISSUE 3.1
The
Scrutiny Committee on 23 February 2006 was advised that the Council budget
approved the previous day had enabled a Council tax increase of 2.499% to be
set. This incorporated a spending increase of £10.4 million with £7.2 million
of efficiencies and income generation. This was seen by the Council as a
dynamic redirection of resources into frontline services funded largely by
back office efficiencies. 3.2
The
Cabinet Member for Resources, Audit,
Council Efficiency and Customer Champion indicated that savings would be
achieved through efficiency and not service cuts. 3.3
The Scrutiny Committee
agreed to establish a standing enquiry into the 2006/07 revenue budget. This
took two aspects – delivery of the budget and the impact. 3.4
The Scrutiny Committee
took formal evidence on this enquiry from the Cabinet Member at its meeting
on 27 July 2006. Members were advised that the structure of the Council’s
financial management had been amended following the appointment of the new
Chief Executive. Service Boards had been set up and met on a monthly basis to
look at budgets of individual Directorates in order to identify potential
problems and prioritise resources at a corporate level. 3.5
The
Scrutiny Committee also commenced an enquiry into the use of Council
Reserves, SC05/06, at its meeting on 23 March 2006. This was aimed at
clarifying the Council’s balances and reserves for 2006/07 and picked up
concerns expressed in the Annual Audit and Inspection Letter for 2005-06 on
the Council’s planned level of balances. The Committee decided, on 27 July
2006, to absorb this matter into the overall revenue budget efficiencies
enquiry. |
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4
OUTCOMES 4.1
The Task Group reviewed the information
contained in Appendix 2 of the report submitted to the Cabinet on 22 February
2006 and in particular the efficiencies proposed and also received a copy of
a budget update submitted to the Aim High Strategy Group. Arising from this
the Cabinet Member, Councillor Jilly Wood, was asked to clarify a number of
issues relating to meeting the efficiency targets contained within the
approved budget. 4.2
Although a response was received from the
Cabinet Member a number of issues required further explanation. An informal
meeting was therefore held between the Lead member for the enquiry,
Councillor Geoff Lumley, the Cabinet Member, Councillor Jilly Wood and the
Director of Finance, Paul Wilkinson. This was held on 4 October 2006. 4.3
From the information given by the Director
of Finance it was clear that the Council was on target to meet approved
budget. The Scrutiny Committee is therefore assured that the 2006-07 revenue
budget will be delivered. 4.4
The second part of the enquiry focuses on
the impact of the 2006-07 revenue budget. After 6 months of the financial
year it is too early to have any clear evidence of any detrimental effect on
service delivery. No concerns appear to have been forthcoming from service
users that problems have been encountered. It is accepted that the majority
of efficiencies were at a corporate level. The Committee do have concerns
however as to the pressures that this places on staff and will be looking at
staffing levels and correlations with sickness absence. |
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5.1
Scoping document for the enquiry as agreed
at the Scrutiny Committee on 20 April 2006. 5.2
Report of the Portfolio Holder for
Resources, Audit, Council Efficiency and Customer Champion to cabinet on 22
February 2006 – Revenue Budget. 5.3
Scoping document on the enquiry on the Use
of Council Reserves, SC05/06, submitted to the Scrutiny Committee on 30 May
2006 together with appendices. 5.4
Minutes of the Scrutiny Committee held on
27 July 2006. |
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Prepared by: Date: |
Cllr Geoff Lumley, Cllr Anne Bishop, Cllr heather
Humby and Mrs Sue Poston. April West & Paul Thistlewood, Overview &
Scrutiny Team 2 November 2006 |
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