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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 16 June 1998 at 4.15 pm.
Present: Councillors ALEX KING, JACK GIBB, GEORGE ALLAN, IAN MACKINTOSH, GLENNIS MIDDLETON, WILLIAM MIDDLETON, BRIAN MILNE, ROB MURRAY, DAVID SELFRIDGE, Mrs KATHLEEN RITCHIE and RICHARD SPEIRS.
Apology: An apology for absence was intimated on behalf of Councillor STEWART MOWATT.
Councillor KING, Convener, in the Chair.
1. MINUTE OF PREVIOUS MEETING
The minute of meeting of this Committee of 5 May 1998 was approved as a correct record and signed by the Convener.
2. CAPITAL MONITORING COMPOSITE CAPITAL PROGRAMME 1997/98
With reference to Article 2 of the minute of meeting of this Committee of 5 May 1998, there was submitted Report No 685/98 by the Director of Finance advising members of the capital expenditure incurred for the period from 1 April 1997 to 31 March 1998 and measuring capital expenditure against budgetary provision for the year.
The Committee agreed:-
(i) to note the position as at 31 March 1998, on the Composite Capital Programme, as per the monitoring statement appended to the Report;
(ii) to give the Director of Finance, in consultation with the Chief Executive, the responsibility to bring about the most advantageous position to the Council for the 1997/98 Capital Expenditure year end position; and
(iii) to note that a review of the Capital Programme for 1998/99 was being carried out with a view to reporting to Committee after the summer recess.
3. RENEWAL AND REPAIR FUNDS 1997/98 AND STRATEGIC REVIEW FOR 1998/99 AND BEYOND
With reference to Article 6 of the minute of meeting of this Committee of 5 May 1998, there was submitted Report No 686/98 by the Director of Finance detailing the movements in the various Renewal and Repair Funds during 1997/98 and indicating the uncommitted balances effectively available as at 1 April 1998. The Report indicated that a substantial monetary commitment existed on each of the three main funds and it was intended to carry out a detailed review of these current commitments prior to the next Committee cycle, to determine their age profile and also when the commitments would translate into actual expenditure.
The Committee agreed:-
(i) to note the effective uncommitted balances held on each of the Renewal and Repair Funds, as at 1 April 1998; and
(ii) to note that a strategic review of the Renewal and Repair Funds was to be undertaken and reported to the next meeting.
4. PROPERTY RENEWAL AND REPAIR FUND
FUNDING ARRANGEMENTS AND PROGRAMME OF URGENT REPAIRS PHASE 5
With reference to Article 31 of the minute of meeting of the Personnel and Property Services Committee of 16 June 1998, there was submitted Report No 694/98 by the Director of Property Services advising the Committee of the fifth phase of budgetary provision from the Property Renewal and Repair Fund, and the programme of urgent repairs required to be undertaken. The Report indicated that the programme of urgent repairs, detailed in Appendix 1, had been prepared following detailed consideration of the five year costed and prioritised programme of planned maintenance work and identification of those projects which required to be urgently undertaken, but whose costs could not be contained within the respective client Department’s revenue property maintenance budget for the current year.
The Committee, for its interest, agreed:-
(i) to approve the provision of £163,000 from the Property Renewal and Repair Fund, for the execution of urgent property repairs; and
(ii) to note and approve the programme of urgent repairs being undertaken by the Director of Property Services, in agreement with the Director of Finance, based upon these funding arrangements.
5. REMISSION OF RATES
With reference to Article 7 of the minute of meeting of this Committee of 5 May 1998, there was submitted Report No 687/98 by the Director of Finance advising the Committee of an application for remission of rates and indicating that the granting of the application would be consistent with the Council’s policy in this respect.
The Committee agreed that the application for remission of rates, as detailed in the Report, be granted.
6. ANNUAL REPORT 1997/98 VALUE FOR MONEY (VFM) ACTIVITIES
With reference to Article 3(c) of the minute of meeting of this Committee of 10 June 1997, there was submitted Joint Report No 688/98 by the Chief Executive and the Director of Finance advising the Committee of the results of the second tranche of Value for Money savings.
The Report indicated that three corporate studies had been undertaken during the year, namely document production, overtime and cost of crime. In addition, the VFM Team within the Finance Audit, VFM and Risk Section had conducted a study on sickness absence across the Council which had made recommendations in relation to the issue of guidance notes, recording and reporting arrangements and action plans which were currently being considered by the Chief Officers Management Team. A number of departmental studies had also been undertaken, the details of which were attached to the Report.
While work conducted in the second tranche of VFM studies was still on-going, it had already generated positive savings, with the potential to generate further savings. Discussions were on-going with departments to identify potentially productive areas for departments VFM analysis, during financial year 1998/99.
The Committee agreed to note the contents of the Report and that Value for Money was now co-ordinated under the umbrella of the Best Value Steering Group.
7. ANNUAL REPORT 1997/98 INTERNAL AUDIT
With reference to Article 3(a) of the minute of meeting of this Committee of 10 June 1997, there was submitted Report No 689/98 by the Director of Finance which summarised the activities of the Internal Audit Section during the second year of Angus Council. The Report referred to internal audit activity during 1997/98 and detailed the audits carried out for that period.
The Committee agreed to note the contents of the Internal Audit Report for 1997/98.
8. FINANCE DEPARTMENT CORPORATE HOBS
There was submitted Report No 690/98 by the Director of Finance detailing proposals for the use of a new updated version of Corporate HOBS (Home Office Banking System). The Report indicated that a new "Windows" version of the system had been developed and would, over the next few months, replace the current version. The new version would provide a more user friendly environment and a more comprehensive information facility. In addition, the Report detailed the two members of staff within the Finance Department nominated to carry out the function of a System Administrator.
The Committee agreed to approve the use of a new updated version of Corporate HOBS and to adopt the resolution as detailed in the Report.
9. FINANCE DEPARTMENT SERVICE PLAN 1998/99 AND BEYOND
With reference to Article 17 of the minute of meeting of this Committee of 2 September 1997, there was submitted Report No 691/98 by the Director of Finance outlining the on-going developments surrounding the Finance Department Service Plan for 1998/99 and beyond.
The Report indicated that a detailed review had been carried out of the proposed action plans put in place for the department as a whole and the specific delegated key responsibilities passed to the relevant departmental managers. Appendix A to the Report summarised the main areas of progress achieved to date, in implementing the 1997/98 identified actions. In addition, an on-going review was being carried out in the Finance Department, with the support of the Personnel Department, to achieve an organisational design for Best Value. Further Reports regarding the Finance Department’s Structure and the Service Plan for 1998/99 and beyond would be brought to the next cycle of Committees.
The Committee agreed:-
(i) to note the contents of the Report; and
(ii) to note that the Finance Department was currently undergoing an organisational structure review which would be submitted to the August/September 1998 cycle of Committee meetings.
10. FINANCE DEPARTMENT BEST VALUE SERVICE REVIEW PLAN
With reference to Article 7 of the minute of meeting of the Policy and Resources Committee of 12 May 1998, there was submitted Report No 692/98 by the Director of Finance outlining the Finance Department's Best Value Service Review Plan for the next five years and setting out the timetable for year 1 (1998/99) review. The Report indicated that it was proposed to carry out the review of all services within the next five years, within a Best Value framework, which emphasised consultation, choice and quality. Appendix A to the Report detailed the five year programme, covering all significant service areas within the Finance Department.
The Committee agreed:-
(i) to note the contents of the Report; and
(ii) to approve the five year Best Value Service Review Plan, attached at Appendix A to the Report and the timetable for the first tranche of reviews in 1998/99, attached at Appendix B to the Report.
11. PLAYGROUND EQUIPMENT AND SAFETY SURFACING CONTRACT
With reference to Article 2 of the minute of meeting of the Recreation and Cultural Services Committee of 4 June 1998, and Article 32 of the Personnel and Property Services Committee of 16 June 1998, there was submitted Joint Report No 579/98 by the Director of Recreation Services and the Director of Property Services concerning proposals for the expenditure of 1998/99 finance, allocated for the provision of play equipment and impact absorbing surfaces.
The Report indicated that since April 1996, the Recreation Services Department had carried out an audit of outdoor play areas in Angus, which would subsequently form the basis of the Department’s Outdoor Play Strategy and Development Plan. Discussions had taken place with communities with regard to the redevelopment of play areas, which had identified a number of playgrounds requiring improvement in the current financial year. In addition, it was the Director’s intention to discuss with local members and relevant community groups proposals for the individual play areas, prior to completion of the tender documents.
The Committee agreed:-
(i) to a programme of replacement and refurbishment, within available resources, at the following locations:-
Ferryden King George V Playing Field
Hillside Public Park
Friockheim Park
Auchmithie Public Open Space
Arbroath Road Park, Forfar
Cookston Crescent, Brechin
Condor Crescent, Montrose (External Finance)
Duriehill Place, Edzell (External Finance)
Forfar Lochside Special Needs; and
(ii) to approve a bid for £61,000 from the Property Renewal and Repair Fund and to note that the balance of expenditure would come from the Department’s Revenue Budget.
12. POSSIBILITY OF EXTENDING SCOPE OF A92 PROJECT (PFI) UPDATED POSITION
With reference to Article 7(a) of the minute of meeting of the Roads Committee of 11 June 1998, there was submitted Joint Report No 661/98 by the Director of Roads and the Director of Finance, updating the Committee on the current position in respect of developing correspondence with the Scottish Office on the possibility of extending the scope of the A92 project.
The Report indicated that it was likely the Scottish Office would not make a determination on the Council’s proposals for extending the scope of the A92 project, to include the replacement of the Montrose Bridge over the South Esk etc, prior the deadline identified in Financial Circular 2/98 for the formal submission of further Outline Business Cases. It was considered prudent, therefore, to take the precautionary step of lodging a further OBC for this proposal, by the due lodgement date of 30 June 1998.
The Committee, for its interest, agreed:-
(i) to note the current position in respect of the development of the possible extension of the scope of the A92 project; and
(ii) to instruct the Director of Roads, in conjunction with the Director of Finance, to submit a further Outline Business Case to the Scottish Office by 30 June 1998, in support of the inclusion of the Montrose Bridge replacement (A92) within the A92 (PFI) project.
13. INFORMATION TECHNOLOGY SERVICE REVIEW PROGRAMME
With reference to Article 7 of the minute of meeting of the Policy and Resources Committee of 12 May 1998, there was submitted Report No 680/98 by the Director of Information Technology detailing the review programme for information technology services, contained in the corporate Best Value Service Review Plan. The proposed Service Review Programme for Information Technology services was detailed in Appendix A to the Report, along with the timetable for the review process, taking into account the estimated resource implications to the department, arising from the so-called Year 2000 problem.
The Committee agreed:-
(i) to note the contents of the Report;
(ii) to approve the Best Value Service Review Plan for Information Technology services; and
(iii) to note that reports detailing the outcome of service reviews would be submitted in due course.
14. YEAR 2000 PROGRESS REPORT
With reference to Article 22 of the minute of meeting of this Committee of 2 September 1997, there was submitted Report No 683/98 by the Director of Finance outlining the current position with regard to the Angus Council Year 2000 project. The Report indicated that departmental awareness schemes had been undertaken to ensure that all staff were made aware of the issues and implications and an agreement had been reached by the Corporate Working Group that Year 2000 issues should be addressed via risk assessments. In addition, a Year 2000 project plan had been compiled and been agreed by the Corporate Working Group.
The Committee agreed:-
(i) to note the progress made in assessing the implications to the Council of the Year 2000 problem;
(ii) to approve the proposed actions of the Corporate Working Groups over the next few months; and
(iii) to note that further progress reports would be prepared in due course.
15. POLICY ON ELECTRONIC MAIL USE
There was submitted Report No 681/98 by the Director of Information Technology proposing a corporate policy for all users of electronic mail across the authority, with particular reference to external mailing using the Internet.
The Report indicated that the corporate e-mail system currently afforded the ability to send and receive messages outwith the authority via the Internet by the use of departmental mailboxes. However, experience had shown that increasing use was being made of external e-mail to provide effective links with government and other professional partner organisation. It was proposed to enable all current users of the corporate e-mail network to have external mail capability via the Internet. Such a facility would greatly enhance the ability of the Council to communicate externally with a wide range of public and private sector bodies. A policy on the use of electronic mail was attached to the Report, which was designed to regulate the use of this technology and safeguard the Council’s position.
The Committee agreed:-
(i) to note the extension of electronic mail facilities; and
(ii) to approve the adoption of a corporate policy governing the use of these facilities.
16. FUTURE DEVELOPMENT OF REVENUES AND HOUSING COMPUTER SYSTEMS
With reference to Article 12 of the minute of meeting of this Committee of 2 December 1997, there was submitted Joint Report No 684/98 by the Director of Finance, the Director of Housing and the Director of Information Technology outlining the current position of the procurement process for revenues and housing computer systems and proposing the implementation of a procedure to ensure the original timescale was maintained and EC Regulations met.
The Committee agreed:-
(i) to note the requirement to comply with the EC Procurement Regulations; and
(ii) to authorise the Director of Finance, in consultation with the Convener of the Finance and Information Technology Committee, to approve the selection of tenderers, following advertisement in the Official Journal of the European Community (OJEC).
The following matter was, on the determination of the Convener, dealt with as a matter of urgency in view of the recent developments among some Scottish Local Authorities.
17. FINANCIAL POSITION OF ANGUS CONTRACTS AND TAYSIDE CONTRACTS FOR THE FINANCIAL YEAR 1997/98
There was submitted Report No 735/98 by the Director of Finance providing an update on the financial position of Angus Contracts and Tayside Contracts for the financial year 1997/98.
The Report indicated that as a result of the reported failures in the management and performance of certain Direct Labour and Direct Services Organisations in Scotland, the Secretary of State had asked the Accounts Commission to review the position regarding DLO/DSOs across all Scottish local authorities. Provisional figures for Angus Contracts had been achieved which indicated that it had met the financial requirements of the relevant legislation in all areas. Tayside Contracts’ audited trading results for 1996/97 showed that the organisation had made a profit of £1.4m and more than met the statutory financial targets set for the organisation. With regard to the financial year 1997/98, although the provisional financial results were not yet available, the initial indications were that Tayside Contracts had exceeded the financial targets set for it and would meet the financial requirements of the relevant legislation.
The Committee agreed:-
(i) to note the provisional accounts for 1997/98 for Angus Contracts;
(ii) to note that Angus Contracts made a surplus of £254,000 in 1997/98 and more than met the financial requirements of the relevant legislation;
(iii) to note that, although the financial results for Tayside Contracts were not yet available for 1997/98, present indications were that they would more than meet the financial targets which had been set and would also meet the financial requirements for the relevant legislation; and
(iv) to congratulate the staff of Contract Services for their achievements.
18. EXCLUSION OF PUBLIC AND PRESS
The Committee resolved, in terms of Standing Order 27(2), that the public and press be excluded during consideration of the following items, so as to avoid disclosure of information which was exempt in terms of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973, paragraphs 1 and 6.
19. DEPARTMENT OF INFORMATION TECHNOLOGY ORGANISATIONAL STRUCTURE
With reference to Article 9 of the minute of meeting of the Personnel and Property Services Committee of 16 June 1998, there was submitted Joint Report No 682/98 by the Director of Information Technology, the Director of Social Work, the Director of Roads and the Director of Personnel, seeking approval for minor adjustments to the organisational structure of resources within the Department of Information Technology. These amendments were required due to changing circumstances in the delivery of information technology services within the Council and the Department’s desire to maintain and improve the quality of services provided.
The Committee, for its interest, agreed:-
(i) to note the contents of the Report; and
(ii) to approve the proposed establishment structure for the Department of Information Technology, as outlined in Appendix B to the Report.
20. MISCELLANEOUS ACCOUNTS DEBT WRITE-OFF
With reference to Article 12 of the minute of meeting of this Committee of 5 May 1998, there was submitted Report No 721/98 by the Director of Finance seeking authority to write-off the amounts detailed in the Report as bad debts, which were viewed as irrecoverable.
The Committee agreed that the accounts details in Appendix 1 to the Report, amounting to £23,089.48 be written off as irrecoverable.