Agenda item

Please note that this report will be published as an agenda supplement.

The Chairman introduced a report within Agenda Supplement 2, which set out the proposed changes to Overview and Scrutiny’s approach to engaging with financial, corporate and organisational matters. It was noted that the proposals had been developed by the Chairman and Vice-Chairman, following discussion with stakeholders, including the Leader, the Cabinet Member for Finance, the Section 151 Officer, the Chairmen of the three Select Committees and the Chair and Vice-chair of the Financial Planning Task Group.

The Chairman noted that the proposals seek to improve and clarify scrutiny engagement of the following areas, for which he provided a brief overview:

a)    The public profile of financial scrutiny and its importance to the organisation

b)    Financial scrutiny of service-based and contract proposals to Cabinet

c)     Clarifying Financial Planning Task Group’s responsibilities overall

d)    OS engagement on other corporate and organisational matters

e)    OS member training in local government finance and financial scrutiny

The following comments were received by the Leader, who stated that the suggested options would provide effective scrutiny of the financial position and monitoring of the Council. The Leader drew upon examples from other local authorities such as Croydon to demonstrate the benefit of scrutiny, suggesting that there is a need for Wiltshire to have a robust yet constructive scrutiny.

The following comments were received by the Section 151 Officer, who stated that he had been happy to see scrutiny picking up comments from leadership, building on the work conducted by the Financial Task Group to provide oversights of budget and spending.

The following comments were received by Members of the Committee, with it suggested that there may need to be a process in place regarding significant contracts. The officers and Financial Planning Task Group were congratulated for their efforts. It was noted that members of the Financial Planning Task Group have been able to build up experience and expertise. It was therefore questioned whether the suggested model of bringing key financial papers to the Committee would continue to allow a level of expertise to be built up. It was suggested that for the next Scrutiny meeting, it be identified how the process would be reviewed in 6 months.

Regarding Proposal 3, it was stated that Select Committees generally tend to look at the cost of delivery rather than the number of units that will be provided; it would be positive to consider how external factors such as inflation might have an impact. If Select Committees were to consider both cost and resource implications, this would allow for a more rounded perspective in order to know what can be provided when external factors are prevalent.

The need for training on local government finance was also stressed, with an emphasis being placed on training being delivered in the near future.

At the conclusion of discussion, it was,

Resolved:

1.     OS Management Committee to receive the following key financial reports, after review and commentary by the Financial Planning Task Group: 

·       Draft Financial Plan 

·       Medium-Term Financial Strategy 

·       Revenue and capital budget monitoring 

·       Treasury Management Strategy 

2.     The Financial Planning Task Group’s responsibilities to be clarified by amending its terms of reference as set out under paragraph 21, with a definition of “major” contracts to be agreed following further discussion. 

3.     Select Committees to retain their ability to query and flag any significant financial concerns relating to any proposals they consider, with concerns referred to OS Management Committee for further discussion as appropriate. 

4.     Proposals for greater OS engagement on other corporate and organisational matters to be developed, following discussion between the OS Management Committee Chairman, Vice-chairman, appropriate Cabinet Members and directors. 

5.     The Chairman and Vice-chairman of OS Management Committee to develop proposals for the Committee’s scrutiny of corporate performance and risk, following discussion with the appropriate Cabinet Members, directors and Select Committee Chairmen. 

6.     Appropriate learning and development be arranged to support members to undertake effective finance scrutiny. 

7.     The adopted approach to be reviewed by OS Management Committee in 6 months’ time.