Agenda item

Context:

To receive information on the revenue and capital outturn positions of the Authority based on activity data at month 2.

Recommendations proposed to Cabinet:

·         That Members consider a net revenue outturn overspend of £164,000.

·         Members consider a capital outturn spend, forecast by service managers to agree with budget.

·         Members note that the low level of earmarked reserves, which will severely reduce the flexibility the Council has in meeting the financial challenges of reducing settlements and consequent need to re-design services.

·         Members note the significant forecast reduction in the overall school balance at the end of 2017/18 and supports the continuing work with schools to ensure that the Council’s Fairer Funding Scheme requirements are met and that the overall schools balance reverts to a positive position at the earliest opportunity. 

Member Scrutiny:

·         In response to a question raised regarding the Authority’s procurement and potential savings that might be made through the establishment of a team to investigate this matter, it was noted that £91 million of the Authority’s spend annually goes through procurement books in terms of outside supply contractors.  One of the review pieces of work being looked at under Future Monmouthshire is around procurement which suits the needs of the Authority and whether it is cost effective. For example, under open data, the Authority’s external supplier information has been put on the County Council’s website every month outlining expenditure.  Developers have taken this information and reorganised it.  The Authority’s local spend now is much lower than in previous years.

·         Automated systems are being investigated with a view to freeing up officer time to undertake higher value work.

·         Part of the role of the procurement section is to ensure that the Authority does not fall foul of regional and national procurement requirements.

·         There is a new post that has been established specifically to look at business opportunities.  The focus of this post will be to look at the detail and depth required to ensure that there is continuous progress in place.

·         Currently, the Authority does not have the dedicated resources or the reserves to have a dedicated unit to look specifically at procurement.  The new post holder will be able to mobilise some resource to have a whole programme of activity.  Therefore, procurement will be one of the issues being looked at.

·         The Select Committee considered that a letter should be sent to the Cabinet Member with a view to consideration being given to the establishment of a team to investigate the Council’s procurement mechanisms. It was considered that such a team could pay for itself via the savings that it will likely identify.

·         The Authority does have marketable skills and these skills have been sold over previous years.  However, it was noted that the budget for the Enterprise Directorate has been significantly reduced over the previous five years whilst still being able to generate steady sources of income. The Directorate is now at the point where a boost of additional resource is required in order to tackle the big issues facing the Authority.

·         Future Monmouthshire – Teams and departments are undertaking challenge sessions looking at data, unit costs, best practice, etc.  Currently, this is undertaken by officers.  This could be opened up to Members, business and the community in order to obtain some fresh perspectives.