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FINANCE AND INFORMATION TECHNOLOGY

MINUTE of MEETING of the FINANCE AND INFORMATION TECHNOLOGY COMMITTEE held in the Town and County Hall, Forfar on Tuesday 3 September 2002 at 4.20 pm.

Present: Councillors ALEX KING, DAVID SELFRIDGE, IAN MACKINTOSH, BILL MIDDLETON, BRIAN MILNE, PETER MURPHY, ROB MURRAY, ROBERT MYLES, PETER NIELD, HELEN OSWALD and BILL ROBERTON.

Apologies: Apologies for absence were intimated on behalf of Councillors GLENNIS MIDDLETON and RON SCRIMGEOUR.

Councillor KING, Convener, in the Chair.

1. MINUTES

(a) Previous Meeting

The minute of meeting of this Committee of 18 June 2002 was approved as a correct record and signed by the Convener.

(b) Special Meeting

The minute of the special meeting of this Committee of 28 June 2002 was approved as a correct record and signed by the Convener.

(c) Audit Sub-Committee

The minutes of meetings of the Audit Sub-Committee of 28 March, 7 May and 18 June 2002, copies of which are appended hereto were submitted and noted. (APPENDICES I, II and III, respectively)

2. CAPITAL MONITORING ­ COMPOSITE CAPITAL PROGRAMME 2002/2003

With reference to Article 3 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 1041/02 by the Director of Finance advising members of the capital expenditure incurred for the period from 1 April to 31 July 2002 and measuring the projected capital expenditure for the year against budgeted provision and available resources for the year.

The Report indicated that actual expenditure for the year totalled £2.028 million which equated to 17% of the revised budget of £11.796 million for the year. However, in addition to actual expenditure achieved, work was ongoing on a number of projects for which no payment had, as yet, been made. Such payments would of course be reflected within the actual spend levels of future statements. The Report also indicated that the latest estimate of expenditure of £11.807 million exceeded the total potential capital resource of £10.880 million by £927,000 and although the Composite Capital Programme was currently projecting an overspend, it was noted that the programme was normally subject to a degree of slippage as the year progressed.

The Committee, for its interest, agreed:-

  1. to note the position as at 31 July 2002 on the Composite Capital Programme, as per the accompanying monitoring statement;
  2. to note that the Capital Budget Sub-Group (CBSG) had met on 9 August 2002 to review the position on the Composite Capital Programme for 2002/2003 and future years and that, as part of the budget process for 2003/2004, it was expected that the CBSG would continue to review the position on the Composite Capital Programme and address issues relating to the projected spend position, possible slippage of projects and resources potentially available for 2002/2003; and
  3. to note that projections of the year end position would be on-going and brought forward, on a regular basis, to future meetings.

3. HOUSING CAPITAL PROGRAMME ­ HRA BLOCK 2002/2003

With reference to Article 4 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 870/02 by the Director of Finance relating to the HRA Housing Capital Programme and the HRA Housing Capital Programme for the year.

The Report advised that the actual spend achieved to 30 June 2002 on the Housing Capital Programme was £0.582 million, which did not include internal fees to 30 June 2002. This level of spend was consistent with the work programmes devised and being worked to by Property Services to achieve the Capital Programme for the year.

The Committee, for its interest, agreed:-

  1. to note the figures presented for the Housing Capital Programme; and
  2. to approve the application of the higher-than-expected revenue balance (some £161,000) to supplement the Planning Maintenance budget.

4. RENEWAL AND REPAIRS FUND

With reference to Article 5 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 1042/02 by the Director of Finance detailing the actual financial position of the Renewal and Repairs Funds for Property, Roads, Information Technology, Equipment, Vehicles and Printing. The Report indicated that the total balance available on the funds was £2,276,540.

The Committee agreed to note the contents of the Report.

5. REVENUE MONITORING STATEMENT 2002/2003

With reference to Article 6 of the minute of meeting of this Committee of 12 March 2002, there was submitted Report No 1043/02 by the Director of Finance on the actual revenue expenditure incurred and income received in respect of the Council´s departments as well as the Police, Fire and Valuation Joint Boards and the DLO´s for the period 1 April to 31 July 2002.

The Report indicated that, from the information contained in Sections B to F in the Appendix to the Report, under some of the cost heads individual departmental actual expenditure was currently ahead of the phased budget. While there were no particular concerns arising in these areas, the position would continue to be monitored closely, to ensure that overall net expenditure did not exceed departmental cash limited budgets.

The Committee, for its interest, agreed to note the contents of the Report.

6. REVENUE BUDGET OUTTURN 2002/2003

With reference to Article 6 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 1044/02 by the Director of Finance updating members on the likely revenue outturn for the financial year 2002/03 on the General Fund and the Housing Revenue Account for the financial year 2002/03 and indicating that there were no particular issues to draw attention to at this stage.

The Committee, for its interest, agreed to note the contents of the Report.

7. PAYE/NATIONAL INSURANCE CONTRIBUTIONS ­ HEALTH CHECK

There was submitted Report No 1045/02 by the Director of Finance advising the Committee of the outcome of the Health Check that had been carried out in all areas of Income Tax (PAYE) and National Insurance Contributions (NIC's), in order to minimise/avoid the risk of exposure and financial penalties arising from non-compliance of Inland Revenue and Social Security rules and regulations.

The Report indicated that a health check had been undertaken by W J B Chiltren, who had concluded that, whilst the Council´s compliance with the Income Tax and Social Security legislation was, in the main, very good, some areas of limited exposure nevertheless existed. Steps were now being taken to address these problems and a copy of the Health Check was available in the Finance Department.

The Committee agreed to note that the Health Check of PAYE/NIC´s had been carried out and that, in the main, the Council had been compliant in terms of Income Tax and Social Security legislation.

8. MEMBERS' ALLOWANCES SCHEME

With reference to Article 12 of the minute of meeting of this Committee of 12 March 2002, there was submitted Joint Report No 1046/02 by the Chief Executive and the Director of Finance recommending a cut off period for the payment of member´s expenses claims, in order to improve the speed of submission of travel subsistence and other submission expenses claims.

The Committee agreed:-

  1. that all claims submitted more than 3 months after the expenses would normally have been paid, would be paid only with the express approval of the Chief Executive and the Director of Finance;
  2. that claims which were submitted outwith the timescales would require to be submitted to the Payroll Section with an accompanying memorandum from the Chief Executive endorsed by the Director of Finance; and
  3. that the Council´s Financial Regulation 12 be amended to incorporate the above change.

9. PAYROLL AND PERSONNEL SYSTEMS UPDATE

With reference to Article 17 of the minute of meeting of this Committee of 16 October 2001, there was submitted Joint Report No 1047/02 by the Chief Executive, the Director of Finance and the Director of Information Technology providing an update of progress and intentions for the future of the implementation of the new fully integrated payroll/personnel system.

The Report indicated that, given the Personnel Sections commitment to Single Status, in particular to Job Evaluation, it was intended to implement the payroll system as soon as possible with Personnel´s involvement kept to a minimum in the early stages of implementation. Involvement of other departments had been identified and would be phased in the course of the project to meet their respective requirements. Implementation costs of £64,550 for Phase 1 could be met from existing balances within the Information Technology Renewal and Repairs Fund. The finalised costs for implementation of later phases and any other costs to be met, would be subject to further Reports as required.

The Committee agreed:-

  1. to note the progress and future intentions regarding the implementation of the new fully integrated payroll/personnel system; and
  2. to note the confirmation of costs of which would be met from current balances within the Information Technology Renewal and Repairs Fund.

10. ANNUAL ACCOUNTS ­ MONTROSE LINKS TRUST ­ YEAR ENDED 31 MARCH 2002

With reference to Article 12 of the minute of meeting of this Committee of 28 August 2001, there was submitted Report No 1048/02 by the Director of Finance detailing the audited Annual Accounts of the Montrose Links Trust for the year ended 31 March 2002.

The Accounts indicated that a small deficit had been incurred during the financial year 2001/2002 and, although the deficit could be met from the reserves of the Trust, the situation would require careful monitoring to ensure that a surplus was generated in future years. Notwithstanding this result, the level of reserves indicated by the Balance Sheet was adequate and showed the Trust´s financial affairs to be in good order.

The Committee agreed to note the 2001/2002 Annual Accounts of the Montrose Links Trust, a copy of which was appended to the Report.

11. GENERAL FUND REVENUE BUDGET ­ VIREMENT FLEXIBILITY BETWEEN 2001/2002 AND 2002/2003

With reference to Article 10 of the minute of meeting of this Committee of 28 August 2001, there was submitted Report No 1049/02 by the Director of Finance detailing the amounts to be carried forward in departmental budgets from 2001/2002 to 2002/2003 under the terms of the budget virement flexibility scheme.

The Report indicated that the Council´s draft Annual Accounts for 2001/2002 had identified a total controllable revenue underspend by departments of £1.353 million. The sums to be carried forward to uplift 2002/2003 revenue budgets totalled £0.846 million, which would leave a balance of departmental underspends of £0.507 million available within General Fund balances. This would provide the departments concerned with additional flexibility to meet budget pressures in financial year 2002/2003 and permit the provision of ring-fenced resources for specific initiatives.

The Committee agreed:-

  1. that the ring-fenced underspends for 2001/2002, totalling £0.370 million, as set out in Section 4 of the Report, be carried forward in full to 2002/2003; and
  2. to note that a further £0.476 million (i.e. excluding the £0.370 million of ring-fenced sums) would be carried forward by departments from 2001/2002 to 2002/2003 under the terms of the budget virement flexibility scheme.

12. ANNUAL REPORT 2001/2002 ­ INSURANCE AND RISK MANAGEMENT

With reference to Article 13 of the minute of meeting of this Committee of 28 August 2001, there was submitted Report No 1050/02 by the Director of Finance summarising the main activities in relation to Insurance and Risk Management during 2001/2002.

The Report concluded that a number of robust risk management initiatives had been taken forward through the Corporate Risk Management Group during 2001/2002 to help mitigate risks to the Council. With the Council´s commitment to the Local Code of Corporate Governance, 2002/2003 would be an important year in that the principles and practices of embedded risk management, including procedures for business risk profiling which were at the core of the Local Code, would require to be established to ensure Code compliance and good business practice. Additionally, the substantial increases in insurance premiums at 2002/2003 renewal would have to be taken on board and a commitment made to a risk and loss control culture to manage the threats of the hardened insurance market.

The Committee agreed to note the contents of the Report.

13. REMISSION OF RATES

With reference to Article 7 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 1052/02 by the Director of Finance advising the Committee of applications for the Remission of Rates, indicating that the granting of the applications, as detailed in the Report, would be consistent with the Council´s policy. The annual cost to the Council in respect of the applications was £69.74.

The Committee agreed to approve the applications for Remission of Rates, as detailed in the Appendix to the Report.

14. BEST VALUE SERVICE REVIEW ­ SALES LEDGER

There was submitted Report No 1053/02 by the Director of Finance advising members that a review of the sales ledger service within the Finance Department had been undertaken in accordance with the Council´s Best Value Service Review Model and setting out a proposed Service Improvement Plan as a consequence of the review.

The Report indicated that the service provided by Angus Council compared favourably in both cost and efficiency terms to the benchmarking partners and, in accordance with the Council´s Corporate Model, the Review Team had determined that the service was of an "acceptable standard". In accordance with the Council´s improved procedure for the scrutiny of Best Value Service Reviews, the Review Report, including the Service Improvement Plan, had been considered and approved by the Monitoring Group. A copy of the full Report was available in the Members' Lounge.

The Committee agreed:-

  1. to note the terms of the Report;
  2. to note and approve the terms of the Report on the Service Review of the sales ledger service; and
  3. to approve the proposed Service Improvement Plan arising from the Review, as appended to the Report.

15. BRECHIN CATHEDRAL CEMETERY WALL ­ URGENT REPAIRS

With reference to Article 15 of the minute of meeting of the Personnel and Property Services Committee of 3 September 2002, there was submitted Report No 1031/02 by the Director of Property Services seeking approval of an additional £15,000 supplementary funding from the Property Renewal and Repairs Fund to carry out urgent repairs to the Cemetery Wall at Brechin Cathedral.

The Committee, for its interest, agreed:-

  1. to note the requirement for additional funding to undertake repairs to Brechin Cathedral Cemetery Wall; and
  2. to approve the bid for supplementary funding in the sum of £15,000 from the Property Renewal and Repairs Fund in 2002/2003.

16. WEBSTER´s SPORTS CENTRE ­ RENEWAL OF SWIMMING POOL FILTERS

With reference to Article 14 of the minute of meeting of the Personnel and Property Services Committee of 3 September 2002, there was submitted Report No 1030/02 by the Director of Property Services seeking approval to the provision of supplementary funding from the Property Renewal and Repairs Fund to undertake the renewal of swimming pool filters and associated plant at Webster´s Sports Centre, at an estimated cost of £23,000.

The Committee, for its interest, agreed:-

  1. to note the requirement for additional funding to undertake the renewal of swimming pool filters and associated plant at Webster´s Sports Centre; and
  2. to approve the bid for supplementary funding in the sum of £23,000 from the Property Renewal and Repairs Fund in 2002/2003.

17. PUBLIC TRANSPORT WEB SITE

With reference to Article 11 of the minute of meeting of the Planning and Transport Policy Committee of 29 August 2002, there was submitted Joint Report No 1006/02 by the Director of Information Technology and the Director of Planning and Transport proposing the development of two web sites to enhance the current Council web site content by including Public Transport Information.

The Committee, for its interest, agreed to approve the development of two new web sites containing Public Transport Information at a cost of £23,650.

18. ADDITIONAL RESOURCES 2002/2003

With reference to Article 7 of the minute of meeting of Angus Council of 4 July 2002, there was submitted Report No 1056/02 by the Director of Information Technology giving further details of the proposals to utilise the additional information technology resources previously approved by the Scottish Executive.

The Report indicated that, as part of the implementation of the Modernising Government agenda and in particular the Council´s e-Government Strategy, a number of issues had arisen which indicated the advantages of certain Council employees being able to access the Council communications network remotely in the course of their duties. In addition, with the growth of the use by pupils/students of information technology in schools, together with the increasing availability of computer access at home and in public libraries, the ability to secure access to school materials outwith school hours would be particularly advantageous.

It was therefore proposed to invite the National Computing Centre to advise on the optimum methods and installation process by which secure access to the Council´s network could be provided, if the apparent emerging requirements were found to be justified. Once this consultancy phase had been completed, a further Report, detailing any procurement associated with the implementation would be submitted to Committee.

The Committee agreed to approve the proposal to investigate the security implications of permitting controlled external access to the Council communications network, as detailed in the Report.

19. MICROSOFT WINDOWS 2000 IMPLEMENTATION

There was submitted Report No 1057/02 by the Director of Information Technology proposing the allocation of funds from the Information Technology Renewal and Repairs Fund to implement a necessary migration from Microsoft Windows NT network environment to Windows 2000.

The Report indicated that the majority of the network services of the Council were currently underpinned by the Microsoft Windows NT network environment and that successful management and support of the network was critical to the core business processes of the Council. Since Windows NT had first been introduced within the Council in 1997, there had been considerable growth of the network facilities and Microsoft had now indicated that support for Windows NT would be withdrawn by 1 January 2003.

The size and complexity of the Council´s IT network meant that the implementation of a Windows 2000 network environment for the Council would be a lengthy and complex project which would be further increased due to the need to upgrade the facilities with minimal disruption to services.

The Committee agreed to approve the allocation of £91,000 from the IT Renewal and Repairs Fund to enable the necessary upgrade to the Council´s IT network environment.

20. SOCIAL WORK IT INFRASTRUCTURE UPGRADE PHASE 3

With reference to Article 10 of the minute of meeting of this Committee of 1 February 2000, there was submitted Report No 1060/02 by the Director of Information Technology seeking approval to commit funds from the Information Technology Renewal and Repairs Fund for the completion of an upgrade to the Social Work Departmental IT infrastructure. The Report detailed the sites within the Social Work Department which would be upgraded to enable five Social Work establishments to be connected to the corporate e-mail system.

The Committee agreed to approve the commitment of £241,200 from current balances in the Information Technology Renewal and Repairs Fund to enable procurement of computers, printers, enhanced networking and telephony to complete the third phase of the Social Work Departmental IT infrastructure upgrade program.

21. EXCLUSION OF PUBLIC AND PRESS

The Committee resolved, in terms of Standing Order 27(2), that the public and press be excluded from the meeting during consideration of the following items, so as to avoid the disclosure of information which was exempt in terms of Part 1 of Schedule 7A of the Local Government (Scotland) Act 1973, paragraphs 1, 6, 8 and 10.

22. INSURANCE MATTER ­ PERSONAL ACCIDENT

There was submitted Report No 1051/02 by the Director of Finance presenting information in relation to an accident which had occurred in the course of a late employee´s duties and asking the Committee to consider whether an ex-gratia payment would be appropriate, given the circumstances of the case.

The Committee agreed to approve the sum of £10,000, as an ex-gratia payment, which was equivalent to standard personal accident policy in terms of five times annual salary.

23. FRAMEWORK CONTRACT PROCUREMENTS FROM 1 APRIL ­ 31 JULY 2002

With reference to Article 36 of the minute of meeting of this Committee of 18 June 2002, there was submitted Report No 1058/02 by the Director of Information Technology advising the Committee of the procurements made under delegated authority from the IT Framework contract for the period 1 April to 31 July 2002.

The Committee agreed to note the procurements made by the Director of Information Technology from the IT Framework contract under delegated authority for the period 1 April to 31 July 2002.

24. COMPUTER PROCUREMENT FRAMEWORK REVIEW

With reference to Article 23 above, there was submitted Report No 1059/02 by the Director of Information Technology advising the Committee of the selection of suppliers under delegated authority for the supply of desktop computers, laptop computers, file servers, printers and scanners for corporate and educational use for the period from 1 September 2002 to 28 February 2003 under the Framework contract.

The Committee agreed to note the selection of suppliers under delegated authority for the period 1 September 2002 to 28 February 2003 as follows:-

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