Agenda item

      i.        The relevant extract of the latest bi-monthly budget monitoring report as considered by Cabinet on 13 December 2011 is attached.

    ii.        A copy of the Capital Monitoring report to be considered by the Cabinet Capital Assets Committee on 18 January 2011 is attached.

   iii.        Members are reminded that the Joint Overview and Scrutiny Select Committee Meeting will be held on 9 February 2012 where the 2012/13 Revenue Budget and Capital Programme will be considered.

The Committee is asked to consider the reports provided and comment as appropriate.

With the assumption that members had considered the information provided the Chairman opened up discussion to the floor and points including the following were made, comments and responses were provided by the Director of Finance, Service Director, HR and Organisational Development and the Corporate Director.

Concerns were raised at the fact that the information for consideration at the meeting was for the period ending on 31 October 2011, when SAP was meant to have enabled more up-to-date reporting. It was explained that the reporting turnaround was about four weeks; two weeks for the service holder to process, one week for CLT to consider and one week for further internal discussion. It was currently taking half the time it would have taken the previous year to compile the information and would further improve in the future.

The potential impact on services of controlling budgets by maintaining staff vacancies was questioned. It was explained that each services had to manage vacancies in a different way, as part of day to day management. Vacancies and the use of temporary staff for short term deliveries were reviewed when services themselves were reviewed. This was a normal approach which had been followed for a number of years. Each service had a vacancy target within its budget and an assumed turnover. The monitoring accountant and budget holder would assess whether or not the vacancy should be held, taking into account any restrictions from HR.

This led the Committee and attending councillors to raise their concerns over the current staffing of the Overview and Scrutiny Team and the potential risk to the efficient delivery of the function. It was explained that it would be the responsibility of the senior manager to balance the risk and recruit appropriately, bearing in mind the need to manage the risk of redundancy through maintaining vacancies; however it was confirmed that Overview and Scrutiny had not been identified as an area for further savings. The Deputy Leader expressed his support for the necessary appointment(s) to be made to ensure the efficiency of Overview and Scrutiny. Finally it was clarified that the recruitment process had started for one vacancy, whilst the outcome of the Overview and Scrutiny review would determine how the second vacancy would be handled.

Queries were raised over the meaning of the second paragraph of the report (agenda page 13 refers), specifically “structural problems on business rates”, it was explained at the meeting that there was a typographical error but the matter would be investigated and clarification provided after the meeting.

Following questions about the Business Services forecast overspend of £0.100 million the following update was provided:

·         Most Wiltshire Academies were now purchasing services from Wiltshire Council. It could be assumed that schools had wanted to wait until they knew what their budget was before making a decision;

·         The shortfall on insurance was being managed and was expected to be cleared by the end of the financial year;

·         Wiltshire Council was currently trading with Berkshire, Somerset and North Somerset and consideration should be given to the extent to which Wiltshire Council wishes to trade services and the associated economic benefits, as well as establish whether Wiltshire Council wished to be a provider or purchaser.

With regards to the Legal and Democratic Services overspend an action plan had been presented to Cabinet members and the Corporate Leadership Team. The technical overspend should be shown as resolved in the next budget monitoring report. The recruitment process, in response to the increase in DCE cases, was being progressed, in accordance with the normal procurement process.

Resolved:

1)    To note the information provided;

2)    To thank Cabinet members and officers for their attendance and participation;

3)    To include a policy paper on the role of the Council as a provider and/or commissioner of services including the current traded services in education, in the forward work plan for this committee;

4)    To support the Chairman, Vice-Chairman and Scrutiny Manager progressing the recruitment process for the Overview and Scrutiny team.