BUDGET SCRUTINY COMMITTEE

1ST JUNE, 2011

BUDGET SCRUTINY COMMITTEE

1 June, 2011

Meeting commenced:9.30 am

“ ended:12.30 pm.

PRESENT:Councillor Jolley - in the Chair

Councillors Dawson, Burgoyne, Cheetham, K. Garrido, Kean, King, Loveday, Mold, Owen, Pennington and Turner

Councillor Hinds attended as an invitee and Councillor O’Neill attended as an observer.

OFFICERS:J.Spink}Customer and Support Services

N.Bishop(Items 5 and 6)

C.Chapman-Democratic Services

1.APOLOGIES FOR ABSENCE

Apologies were submitted on behalf of Councillors Balkind and Stone.

On behalf of the committee Councillor Jolley welcomed the new members and expressed thanks to those members that have now left.

The Chair informed members that the scrutiny support officer Peter Kidd has been appointed to a new role within GMPA and on behalf of the committee requested that their thanks for the hard work and support provided by Peter over the years be noted. The Chair confirmed that he would personally be sending a letter of thanks.

2.DECLARATIONS OF INTEREST

There were no declarations of interest.

3.QUESTIONS FROM MEMBERS OF THE PUBLIC

There were no questions from members of the public.

4.PROVISIONAL REVENUE BUDGET 2010/11 OUTTURN

In March members were provided with a report which forecast the outturn position of expenditure against the 2010/11 revenue budget. This report was to provide an update on the forecast outturn giving an early indication of the results of the year. Members were informed that whilst the final accounts process has not yet been fully completed the final position is not expected to differ materially from the provisional outturn.

In comparison with the forecast in the March report the overall position has improved to an under spend of £230k and consequently a balance of £9.2m in reserves.

J.Spink then went on to provide further information in relation to items within the report.

Discussion took place in respect of a number of issues, including -

  • The settlement agreed with the Courts Agency in relation to the use of Salford Town Hall;

Moving forward an annual fee of approximately £30,000 has now been agreed and members were informed that as part of the agreement the Council is entitled to a share of the proceeds should the Courts Agency decide to sell the property. The exact percentage to be confirmed by J.Spink

Note: J.Spink subsequently confirmed that the proportion of the potential capital receipt that would come to the Council from a sale of Salford Town hall is 32%.

  • The waste disposal levy and the reasons surrounding the overspend;

Discussion took place around a number of areas including the classification of items for recycling and forecasts and members requested that the issue be referred to the Neighbourhoods scrutiny committee for an in-depth review

  • AGMA initiatives
  • Low interest rates and short term borrowing
  • Inflation / Contingency;

Discussion took place around the timing on when voluntary redundancy and severance costs are eligible for capitalisation. Members were informed that the application for this year is currently with the Secretary of State awaiting a directive.

  • Children’s Services Directorate;

Members were informed that there was better news all around in that both the General Fund and the DSG were under spent compared with the March forecast outturn, the level of school deficits was better than anticipated and overall school balances had a positive value of £1.3m. It was agreed that a full report would be provided at the September meeting.

  • Community Committees;

Members accepted the case for community committees to carry forward balances but stated they thought it would be useful to receive additional information in relation to commitments within future reports

Members thanked the officer for the report.

RESOLVED:(1) THAT the report be noted.

(2) THAT the exact percentage of the share the Council is entitled to be confirmed should the Courts Agency decide to sell Salford Town Hall.

(3) THAT the issue of waste disposal be referred to the Neighbourhoods scrutiny committee for an in-depth review.

(4) THAT additional information in relation to balances carried forward by community committees be provided within future reports.

5.2011/12 SAVINGS – PROGRAMME MONITORING

This report provides information on the progress made by the various Directorates since the start of the new financial year towards the proposals in the approved Comprehensive Spending Review (CSR) programme. Members were informed that Nikki Bishop will take responsibility for presenting the report at this and future meetings.

As part of a risk assessment process savings have been categorised as either red amber or green. Green meaning the saving has already been achieved or there is low likelihood of not achieving it, amber meaning there is a medium likelihood of not achieving the savings target and red meaning there is a higher risk of not achieving the full savings target.

During subsequent discussion the following points were raised -

  • Within all Directorates, managers need to be aware which budgets are being reduced in order that appropriate action can be taken ;
  • Target savings expected to be delivered by 30th April had not been achieved by any of the Directorates, although most were only slightly behind target, with Children’s Services and Corporate savings showing the biggest under-achievement ;

Members were assured that the figures are regularly monitored and a strict eye is kept on slippage, with individual Directors being held to account. Members agreed they would request individual Directors along with the Lead Member to report to Budget Scrutiny should they feel it necessary.

Members were then provided with more information around the high risk proposals, during which a request was made for a future report to provide additional information on the services identified for collaboration and sharing.

Members thanked the officers for their attendance at the meeting and for the report provided.

RESOLVED:(1) THAT the report be noted.

(2) THAT updates on this matter be presented at future meetings of this Committee in due course.

(3) THAT information regarding the other services identified for collaboration and shared services be provided within a separate report to be presented at a future meeting of this committee.

6.REPORT FROM THE LAST MEETING

RESOLVED:THAT the report be noted.

7.WORK PROGRAMME

RESOLVED:(1) THAT the work programme be noted.

(2) THAT the report on BSF scheduled for July should include information on Academies.

(3) THAT the Schools Balances, Dedicated Schools Grant and the Children’s Services Budget reports be scheduled into the work programme for the meeting in September, 2011.

(4) THAT a meeting be arranged with the Chair, the Lead Member and John Spink to discuss the work programme.

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