Issue - meetings

To receive a presentation from the Head of Corporate Resources

The Committee received a presentation from Stephan Van Arendsen, Head of Corporate Resources on financial reports and terminology.

Mr Van Arendsen focussed on the following issues:-

·       Best Practice in Financial Management – The three key elements of financial management were Enabling Transformation, Supporting Performance and Delivering Accountability and that financial reporting was a key part of each of these and enabled informed decisions to be reached. The role of the Chief Financial Officer (Head of Corporate Resources) had the responsibility for “making arrangements for the administration of the Council’s financial affairs” and this included ensuring budgets were robust, the Council had adequate reserves, effective controls were in place and value for money was achieved

·       The annual reporting cycle – Council, Cabinet, Audit and Governance Committee and Overview and Scrutiny Committee (Regulatory, Compliance and Corporate Services) were the key elected Member  bodies in the annual reporting cycle; and the distinctions between revenue and capital was described, namely that revenue related to   transactions relating to the day to day running of Council services whilst capital transactions related to investing in buildings, infrastructure and expensive pieces of equipment;

·       How Members engage - the Medium Term Financial Plan, normally covering 3 years, process was detailed where the aim was to identify forecast budget gaps (April – June); options were formulated that could mitigate budget gaps and linked to the Council’s Core Purpose, Framework for Change, etc. (Typically July – October); and that Members considered options and a budget package was developed (November – March); and that Budget Council agreed the annual budget for the following year and level of Council Tax (and possibly budget plans for future years) (late February / early March) and that the Budget was formally monitored throughout year – monthly starting in June and considered by the Executive Leadership Team, Strategic Leadership Board, Cabinet and Overview and Scrutiny Committee

·       Aims of Financial Reporting – this was a circular process whereby the Council set out what it sought to achieve, what had been done so far e.g. what had been spent/delivered, what was anticipated to be done e.g. what did the Council think it would spend, what conclusions  had been reached and what decisions need to be made

·       Key Aspects – the Capital Process, Capital Programme Budget Monitoring, Council Tax and Business Rates processes were described

Members of the Committee asked questions/made comments on the following issues:-

• A macro target for income generation
• Planning policies and procedures in place for when Government grant funding ends and the sole reliance on Council Tax and Business Rates

RESOLVED:

That Stephan Van Arendsen be thanked for his informative presentation.