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ANGUS COUNCIL
MINUTE of MEETING of the FINANCE AND INFORMATION TECHNOLOGY COMMITTEE held in the Town and County Hall, Forfar on Tuesday 3 September 1996 at 4.00 pm.
Present: Councillors ALEX KING, JOHN C GIBB, GEORGE ALLAN, IAN HUDGHTON, IAN MACKINTOSH, GLENNIS MIDDLETON, WILLIAM MIDDLETON, BRIAN M C MILNE, STEWART M MOWATT, ROB MURRAY, Mrs KATHLEEN M RITCHIE and RICHARD B SPEIRS.
Councillor KING, Convener, in the Chair.
1. MINUTE OF PREVIOUS MEETING
The minute of the meeting of this Committee of 11 June 1996 was accepted as a correct record and signed by the Convener.
2. MINUTE OF EXECUTIVE SUB-COMMITTEE
The minute of the meeting of the Executive Sub-Committee of 26 July 1996, a copy of which is appended hereto, was submitted and noted.
FINANCE
3. 1995/96 SEVERE WEATHER CONDITIONS BELLWIN SCHEME IMPLICATIONS FOR ANGUS COUNCIL
There was submitted Report No 564/96 by the Director of Finance indicating that the Bellwin Scheme, which provided special financial assistance to local authorities which might otherwise suffer an undue financial burden as a result of severe weather conditions, had been activated across Scotland between 24 December 1995 and 10 January 1996. The Minister for Industry and Local Government had asked that claims be submitted on behalf of any former District or Regional Council.
Discussions had taken place with Finance staff of the demitting authorities and it had been ascertained that neither Angus District Council nor Tayside Regional Council had incurred sufficient qualifying expenditure to activate a Bellwin Scheme grant claim. Costs which were normally insurable and costs which were of a capital nature did not quality as Bellwin expenditure.
The Committee noted the terms of the Report and that no Bellwin Scheme grant claims would be submitted by any of the demitting authorities for the Angus Council area.
4. REVENUE MONITORING STATEMENT
There was submitted Report No 603/96 by the Director of Finance setting out the actual revenue expenditure incurred and income received for the period 1 April 1996 to 31 July 1996 for each Council department as well as the Police, Fire and Valuation Joint Boards and the Revenues Joint Arrangement.
The Committee noted the terms of the Report and, in particular, that, for the period covered, the Council’s net expenditure as a whole remained within the cash limited budget.
5. REVENUE BUDGET OUTTURN 1996/97
There was submitted Report No 731/96 by the Director of Finance indicating that, as part of the Council’s procedures for monitoring revenue expenditure and income, year end projections of outturn net expenditure were prepared on a monthly basis. These projections, together with projections of future months' expenditure, had been added to provide a year end projected outturn position compared to the original budget.
The projection statement attached to the Report set out the actual position to the end of July 1996. The statement indicated potential overspends in several departments, which were currently expected to be met through budget virement within the departments concerned, and the Convener stressed the need for compensatory savings to be identified.
The Committee noted the terms of the Report and that similar reports would be submitted on a quarterly basis in future.
6. CAPITAL MONITORING COMPOSITE CAPITAL PROGRAMME
There was submitted Report No 684/96 by the Director of Finance setting out the position on the composite Capital Programme for 1996/97 as at 31 July 1996.
The Committee noted the terms of the Report and, in particular, that for the period covered, expenditure equated to approximately 15% of the budget provision for the year.
7. REVENUE BUDGET 1997/98
There was submitted Report No 686/96 by the Director of Finance setting out the current position with regard to the 1997/98 Revenue Budget preparation process and the main stages of the budget cycle.
It was proposed that special meetings of service committees be held on one day during February 1997 to review provisional revenue budget submissions, to recommend adjustments arising from consideration by Budget Co-ordination Group meetings and to consider any service development proposals. The recommendations of these meetings would be considered by the Special Meeting of the Council called to set the Council Tax which would be held during the week commencing 3 March 1997.
The Committee noted the terms of the Report.
8. PREPARATION OF THE 1997/98 CAPITAL BUDGET AND FUTURE YEARS' FINANCIAL PLAN
There was submitted Report No 687/96 by the Director of Finance indicating that it was understood that the Secretary of State would not invite bids from local authorities for Section 94 consents for 1997/98 as had been the case in previous years, but that consents would be issued automatically. However, it was proposed that Angus Council continue to prepare Financial Plans on the basis of bids from departments for capital resources.
The Scottish Office, in a letter dated 7 August 1996, had directed that legal commitments prior to 31 March 1997 should not result in the Council having to make payments for 1997/98 and subsequent financial years in excess of £3,000,000. The Committee noted that it was possible that this sum could be supplemented by Challenge Fund monies, which would be the subject of competitive bidding to the Scottish Office by local authorities.
The Committee approved the terms of the Report, and noted that the amended system of issuing Section 94 consents was likely to result in a reduced programme of capital expenditure funded by traditional methods in forthcoming years and that alternative means of funding would require to be examined.
9. NON-HOUSING CAPITAL PROGRAMME AND THE SCOTTISH OFFICE FINANCIAL ALLOCATION OF SECTION 94 CAPITAL CONSENTS FOR 1996/97
There was submitted Report No 688/96 by the Director of Finance indicating that the planned programme of capital expenditure currently stood at £8,513,000 for 1996/97. The Scottish Office, in a letter dated 7 August 1996, had confirmed that the Council’s Non-Housing Section 94 Capital Consent previously allocated to meet inherited legal commitments was £5,006,000, and to meet new capital expenditure was £1,236,000. The estimated total capital resource was £8,208,000 and the difference of £305,000 between this figure and the planned capital programme represented an allowance for slippage due to delays in the commencement of projects.
In the letter of 7 August, the Scottish Office had increased the Council’s final Non-Housing Section 94 Capital Consent by £100,000 in response to representations made with regard to the Council’s accommodation needs. The Director of Property Services would review the Council’s outstanding accommodation requirements in the light of this additional allocation.
The Committee noted the terms of the Report.
10. AUDITED ANNUAL ACCOUNTS OF ANGUS COUNCIL 1995/96
There was submitted Report No 690/96 by the Director of Finance together with a copy of the accounts of Angus Council for the shadow year, 1995/96.
The Committee noted the accounts of Angus Council for 1995/96 and, in particular, that they had been subject to audit by the Accounts Commission which had concluded that no adjustments were required.
11. HOUSING CAPITAL PROGRAMME HRA BLOCK
With reference to Article 6 of the minute of the meeting of the Housing Committee of 13 August, there was submitted Report No 732/96 by the Director of Finance setting out the latest estimates for the Housing Capital Programme HRA Block for 1996/97 as at 30 June 1996, indicating that the total expenditure for the period covered was some 16% of the total budget. It was noted that the programme assumed gross capital receipts of about £4m, but that, to date, only £0.5m had been received.
The Committee approved the estimates and spend figures as presented in the Report.
12. FINANCIAL MANAGEMENT PROCEDURES PROGRESS
There was submitted Report No 683/96 by the Director of Finance reminding the Committee that he was statutorily responsible for the administration of the financial affairs of the Council and obliged to determine a system of accounting control and form of accounts.
The Report set out the progress which had been made in fulfilling these obligations, in establishing new financial systems and in developing procedures to ensure effective and efficient financial management. The Report also provided information on the current situation with regard to the Council’s obligations in respect of the annual account finalisation process for the 1995/96 financial year. In connection with the finalisation of the annual accounts for Angus District Council for 1995/96 and, at the request of the Auditors, the members discussed the compliance of Angus District Council with law and regulations.
The Committee agreed:-
(i) to note the terms of the Report; and
(ii) to confirm that having made enquiries, members were not aware of any actual or potential non-compliance with law and regulations which could have had a material effect on the ability of Angus District Council to conduct its business and therefore on the results and financial position to be disclosed in the financial statement for the year ended 31 March 1996.
13. EXCLUSION OF PUBLIC AND PRESS
The Committee resolved in terms of Standing Order No 27(2) that the public and press be excluded during consideration of the following matters so as to avoid the disclosure of information which was exempt in terms of Schedule 7A to the Local Government (Scotland) Act 1973, paragraph 1.
INFORMATION TECHNOLOGY
14. ASSOCIATED COSTS OF STAFF RELOCATION
There was submitted Joint Report No 710/96 by the Directors of Finance and Information Technology setting out the funding mechanisms for information technology costs of £100,000 arising in connection with the relocation of Council departments.
The Committee agreed:-
(i) to note the information technology costs associated with staff relocation; and
(ii) to approve the proposed method of funding, namely that £70,000 be met from the information technology capital allocation contained in the Financial Plan and that the remaining £30,000 of estimated expenditure be met from the computer repair and renewal fund.
FINANCE
15. OFFICE ACCOMMODATION EXPENDITURE 1996/97 AND 1997/98
There was submitted Report No 679/96 by the Director of Property Services setting out the situation with regard to work currently being done within the office accommodation strategy and being funded from the General Services Capital Account. The Report outlined additional expenditure being incurred and recommended alterations to the approved programme of works.
The Committee, for its interest, approved the financial implications set out in the Report, subject to its approval by the Personnel and Property Services Committee later in the day.
16. REMISSION OF RATES
There was submitted Report No 689/96 by the Director of Finance setting out (a) the practice adopted by the former Tayside Regional Council in dealing with applications for remission of rates under the Local Government (Financial Provisions Etc) (Scotland) Act 1962 and the Rating (Charity Shops) Act 1976 and (b) details of four applications received for remission of rates.
The Committee agreed :-
(i) to continue the practice adopted by Tayside Regional Council, as set out in the Report, for dealing with applications for remission of rates; and
(b) to grant relief as set out below.
| Applicant | Subject | Decision | Cost |
| Montrose Aerodrome Museum Trust | Museum Waldron Road Montrose | Grant 20% discretionary relief and 80% mandatory relief | £71.84 |
| Angus Independent Advocacy Service | Office Arbroath Business Centre Unit 20 31 Dens Road Arbroath | Grant 20% discretionary relief and 80% mandatory relief | £11.78 |
| Angus Mental Health Association | Office Arbroath Business Centre Unit 25 31 Dens Road Arbroath | Grant 20% discretionary relief and 80% mandatory relief | £12.63 |
| Angus Gliding Club Ltd | Airfield and Hangers Drum Shade Roundyhill Forfar | Grant 100% discretionary relief | Nil |