Agenda item

The Head of Strategic Finance and Property and the Head of Communications, Strategy and Policy submitted a joint report updating Members on finance and performance monitoring for East Herts Council for the period 2017/18 as at 30 September 2017.  Officers provided a summary of the report in relation to revenue budget forecasts, capital schemes and performance indicators. 

The Head of Strategic Finance and Property explained that the forecasted overspend of £251k had reduced and now stood at £143k.  Officers were continuing to find ways of further reducing the overspend to balance the Medium Term Financial Plan (MTFP) and that sessions were being held with staff to obtain their input.

It was noted that of the 38 Performance Indicators reported corporately, 28 indicators had a target set against them, four had failed to meet their targets by varying degrees and two results were a month in arrears as sources were from an external body.  It was noted that the Council had established 44 corporate actions within its Corporate Strategic Plan, of which 16 had been completed within the 2017 calendar year.

Councillor J Wyllie commented on the overspend (now of £143 k) stating that the Council appeared to go over budget quite frequently.  He commented that scrutiny was not about “rubber stamping” overspends and that the Executive should be called to account for the overspend.  This view was supported.

The Committee Chairman referred to Charrington’s House, Bishop’s Stortford, the monies spent to refurbish it and the depressed rental income. 

The Head of Strategic Finance and Property explained that the inability to rent space was attributable to the future of the building in relation to what was being proposed for the whole (Old River Lane (ORL)) site.  The Head of Communications, Strategy and Policy explained that the building was geared to renting to companies with 50 plus employees and that now more work needed to be done to reduce this to look at four-desk 1000 sq ft arrangements to draw in those needing smaller office suites and those needing short term tenancies. 

The Scrutiny Officer reminded Members that the Executive Member for Finance and Support Services would be presenting his portfolio update to Performance, Audit and Governance Scrutiny Committee in January 2018.  

The Head of Strategic Finance and Property explained that the ORL site was in its early stages in terms of how the site could be used.  Councillor K Crofton expressed his concern on the decision to spend £20Million to buy back this site and then to show a budget loss of £225k.  He suggested that the building be unloaded.  The Head of Strategic Finance and Property explained that the bigger picture was about the regeneration of the Town Centre and the added benefits this would bring to the community which would be more than the £20Million spent.  Councillor J Wyllie agreed that buying the site was a valuable opportunity to improve and benefit residents and the town centre and that the long term benefits would be fantastic.

Members reviewed at length, the net cost of services and the overspends which had occurred within those services.  The Head of Strategic Finance and Property explained that Officers were focussing on the MTFP and making sure budgets were achievable and making sure there were income streams being generated across services.

The Committee Chairman sought clarification on the Performance Indicators for Housing and Health and how this might impact on licensing income.  The Head of Strategic Finance and Property undertook to refer the matter to the Head of Housing and Health.

The Head of Communications, Strategy and Policy provided a summary of Performance Analysis as detailed and specifically those schemes showing a “red” status.  Officers responded to a number of detailed queries from Members. 

Members stated in the strongest terms, their dissatisfaction, disappointment and displeasure at being asked to “rubber stamp” reports to the Executive and particularly those where the Council had clearly “under performed” and was overspending.  They asked that the Executive be reminded that the function of PAG was to scrutinise actions taken or about to be taken and to make recommendations. 

In noting that the Executive Member for Finance and Support Services was programmed to present his portfolio to the next meeting, the Committee asked that he also address the Council’s under performance.  Members also requested Officers to report on the issue of Charrington’s House and proposals to address the depressed income. 

The Committee received the report and forwarded comments to the Executive as now detailed.

RESOLVED – that (A) the Executive be advised in the strongest terms of Members’ dissatisfaction, disappointment and displeasure at being asked to “rubber stamp” reports to the Executive and particularly those where the Council had overspent;

(B)   the Executive Member for Finance and Support Services present his portfolio update to the January 2018 meeting and that this includes the issue of the Council’s “under performance”;

(C)  the Head of Strategic Finance and Property and the Head of Communications, Strategy and Policy be requested to present a report to Members in January 2018 on the issue of Charrington’s House and proposals to address the depressed income;

(D)   the projected revenue budget forecast overspend of £251K in 2017/18, as detailed at paragraph 2.1 of the report submitted, be noted;

(E)   the capital budget forecast underspend of £1.573m, as detailed at paragraph 6.1 of the report submitted, be noted;

(F) the reported performance and actions for the period July to September 2017, as detailed at paragraph 9 of the report submitted, be noted); and

(G) the Committee’s comments as now detailed, be passed to the Executive.