Agenda item

PRE-DECISION SCRUTINY OF REPORTS DUE FOR DECISION BY THE LEADER

Members of the Committee are requested to bring their copy of the reports due for consideration by the Leader on or after 25th November 2020.

 

Minutes:

The Committee considered the following reports on the Part 1 agenda which were due for consideration by the Leader on or after 25th November 2020:

 

(1)  BUDGET MONITORING 2020/21

Report FSD20058

 

The report provided firstly, the second budget monitoring position for 2020/21 based on expenditure and activity levels up to the end of September 2020, excluding the financial impact of Covid-19.  The report also highlighted any significant variations which would impact on future years as well as any early warnings that could impact on the final year end position. Secondly, the report identified latest indications of the financial impact of the Covid-19 situation which needed to be treated with some caution at this stage because of the ongoing uncertainty arising from moving out of lockdown to transition and ultimately the ‘new normal’. 

 

The Director of Finance introduced the report explaining that in terms of departmental budgets there were cost pressures but also underspends in the contingency so overall as far as ‘business as usual’ there was an underspend.  In terms of Covid-19, significant resources had come from Government but there were also pressures and burdens associated with Covid-19 and it was important that residents and businesses were supported.  This resulted in a shortfall in funding of £2m this year and a further £9m relating to Council Tax/Business Rate collection.  The Committee noted that these were broad estimates that needed to be treated with caution, however was clear that there were pressures arising from the uncertainty around how long the second wave would continue and what would be the overall impact.  In terms of managing the pressures, Members noted that Bromley was in a better position that some other local authorities.  Finally, in terms of the full year effect, the issues outlined in the report would need to be addressed as part of the 2021/22 budget which would be presented to the Committee’s meeting in January.

 

In response to a question the Director of Finance confirmed that the Council found itself in quite a strong position in relation to investment income and Treasury Management as a result of a number of two-year investments that had been made.  The Director of Finance confirmed that he was not expecting a reduction in the budget next year as a result of the benefit of the higher rates of investment prior to the changes in the market.  There would be an impact in relation to investment properties not just as a result of the Covid situation but also resulting from the ‘new normal’ and the impact on property investment income.

 

The Committee noted that compared to some other local authorities the Council found itself in a relatively good position in terms of the key tests.

 

RESOLVED: That the Leader be recommended to

 

(a)  consider the latest financial position;

 

(b)  note that a projected net overspend on services of £1,538k is forecast based on information as at September 2020.

 

(c)  consider the comments from Chief Officers detailed in Appendix 2;

 

(d)  note a projected reduction to the General Fund balance of £83k as detailed in section 3.3 of the report;

 

(e)  note the full year cost pressures of £6.4m as detailed in section 3.4 of the report;

 

(f)  agree to the release of £200k from the 2020/21 Central Contingency relating to Staff Merit Awards as detailed in para. 3.2.2 of the report;

 

(g)  agree to the release of £125k from the 2020/21 Central Contingency relating to TFM Posts as detailed in para. 3.2.3 of the report;

 

(h)  agree to the release of £52k from the 2020/21 Central Contingency relating to PrEP Grant as detailed in para. 3.2.4 of the report;

 

(i)  agree the release of £520k from earmarked reserves to fund community equipment as detailed in para. 3.9.1 of the report;

 

(j)  identify any issues that should be referred to individual Portfolio Holders for further action.

 

Estimated Financial Impact of Covid-19

 

(k)  consider the latest estimated financial impact of Covid-19 situation, detailed in Section 4, and note the ongoing financial uncertainty position relating to net costs and the current shortfall in Government funding; and

 

(l)  note that the estimated financial impact of the Covid-19 situation which needs to be treated with some caution at this stage because of the ongoing uncertainty arising from the impact moving out of ‘lockdown’ to transition and ultimately the ‘new normal’. 

 

 

(2)   CAPITAL PROGRAMME MONITORING 2ND QUARTER 2020/21

 Report FSD20089

 

The report summarised the current position on capital expenditure and receipts following the 2nd quarter of 2020/21 seeking the Leader’s approval to a revised Capital Programme.

 

RESOLVED: That the Leader be recommended to

 

(a)  Note the report, including a total re-phasing of £1,817k from 2020/21 into future years, and agree a revised Capital Programme;

 

(b)  Approve the following amendments to the Capital Programme:

 

(i)  Increase of £174k to the Capital Maintenance Budget;

 

(ii)  Increase of £175k to fund the purchase of a new Property Management System;

 

(iii)  Increase of £41k in relation to the Emergency Travel Fund;

 

(iv)  Reduction of £623k due to the loss of TfL grant funding; and

 

(v)  Reduction of £57k to the Devolved Formula Capital budget.

 

 

(3)  COUNCIL TAX SUPPORT/REDUCTION SCHEME 2021/22

Report FSD20081

 

The report advised Members of the result of the public consultation exercise and seek approval for the scheme to be forward to Full Council.

 

A Member noted that the consultation had only included one option, suggesting that in future it may be sensible to include multiple options.

 

In respect of the Citizens Advice Bureau (CAB) Protocol around not taking action against individuals in debt, it was agreed that information on this issue would be included in the next monitoring report.  The Director of Finance confirmed that such cases were managed sympathetically by the Council.  The Director of Finance also confirmed that the Hardship Fund had been included in the 2021/22 base budget.

 

RESOLVED: That the Leader be recommended to

 

(a)  consider the updated Impact Assessment at Appendix 1.

 

(b)  consider the responses to the public consultation exercise at Appendix 2 and 3 of the report.

 

(c)  consider whether the Council Tax Support\Reduction scheme for 2021/22 retains the calculation of entitlement for working-age claimants on 75% of the households Council Tax liability. Thereby the maximum assistance provided to a claimant of working-age is 75% of his/her Council Tax liability.

 

(d)  Subject to the outcome of (a) to (c) above, recommend to Council the Council Tax Support\Reduction scheme for 2021/22.

 

(4)  BROMLEY THE BETTER BOROUGH

 

Bromley Council its partners had been working together to deliver its corporate plan ‘Building a Better Bromley’ (BBB). Much had been achieved by maintaining focus and harnessing our collective resources.  The report presented a refreshed plan, building on achievements. The Council and its partners were committed to taking the next steps in making ‘Bromley the better borough’.  The ambitions outlined in the aspirational plan would be delivered through a wide range of strategic and operational plans across the Council and partner agencies.

 

Following a lengthy discussion, the Committee agreed that further work should be undertaken, and Members should be encouraged to track change a MS Word version of the document which would be circulated following the meeting.  This would enable Officers to gather Member input and reflect upon and respond to the feedback provided.  The revised document could then be presented to the meeting of the Committee scheduled for January 2021.

 

RESOLVED: that a revised draft of “Bromley the Better Borough’ be presented to Members in January 2021.

 

 

(5)   Review of LEgal Services children and Adults team

 Report CSD20121

 

The report set out a review of the services provided by the Children and Adults legal team, the budget for the service, the demand for the service and the resourcing requirement going forward.

 

In opening the discussion, the Chairman highlighted that this represented a growth item.

 

Members noted that as a result of the increased demand within the Children and Adults Legal Team there had been a need to use the services of additional locum lawyers and this had resulted in an overspend within the service.  It was clear that there was an upward and sustained trend in the volume of children’s social work and consequently the report was seeking authority for additional staff to join the in-house team to meet that demand.

In response to a question the Director of Finance explained that a view needed to be taken on the extent to which the Council was able to meet its statutory obligations.  Sufficient funding was available within central contingency and there was an element of urgency in ensuring the service was adequately resourced to meet the level of demand.  Members noted that there was a significant risk to the Council, both financially and reputationally, if the Council found itself in a position whereby it was unable to provide adequate child protection and safeguarding arrangements.

 

RESOLVED: That the Leader be recommended to

 

(a)   Agree to the creation of 2 FTE permanent lawyer posts to support childcare work (£63k) and adult social care (£85k).

 

(b)   Agree funding of £35k to fund a 0.5 FTE Education lawyer post.

 

(c)   Increase the Legal revenue budget from April 2021 by £183k to fund these additional legal posts.

 

(d)   Drawdown from Central Contingency in 2020/21 a sum of £61k to fund the part year cost of these posts from 01 December 2020.

 

(e)  To include a sum of £170k held in Central Contingency for potential locum costs for additional childcare and adults social care legal support, to be drawn down when required by the Director of Corporate Services in consultation with the Portfolio Holder for Resources, Commissioning and Contract Management.

 

(6)   COVID 19: PROCUREMENT IMPLICATIONS

 Report CSD20062

 

On April 24 2020, the Leader granted delegated authority to Chief Officers (in Agreement with the Portfolio Holder as required), for a period of six months, to take suitable alternative procurement action to manage contracts in response to disruption caused by the current and ongoing Covid 19 Public Health measures.  During this period, a number of such actions were taken as appropriate.  The ongoing Covid 19 pandemic and associated Public Health measures continued to cause disruption, capacity and sustainability issues for Council staff, providers and the wider provider market. There was a continued risk that this may adversely affect the Council’s ability to undertake successful procurement processes for current or new contracts where a suitably compliant tender process would normally be required.

 

The report sought further authorisation from Executive, through the Leader, for delegated authority to Chief Officers to take appropriate procurement action, primarily variations to contracts as required, within the flexibilities available through the Contract Procedure Rules and the Public Contract Regulations 2015, to manage Council contracts effectively.  Delegated authority was sought for a further period of six months.  As the senior Executive member, the Leader could take all Executive decisions personally, subject to pre-decision scrutiny under the present temporary arrangements agreed by the Urgency Committee and Executive. Whereas the contract standing orders (CPR’s) were matters reserved to full Council, it was permissible for the Leader to vary Executive side delegations and suspend aspects of the rules as proposed in the report.

 

Noting that it had been agreed to undertake a review of the emergency decision making arrangements implemented by the Council’s Urgency Committee as a result of the Covid-19 pandemic, the Chairman suggested that there should be agreement to extend the current procurement arrangements for up to six months dependant on the outcome of the review of current decision making arrangements in January 2021.

 

A number of Members expressed concerns around the lack of scrutiny in relation to procurement decisions.  It was stressed that as far as possible all decisions should be scrutinised prior to a decision being taken.  The Assistant Director for Governance and Contracts agreed to liaise with Portfolio Holders and Chief Officers to ensure better engagement with PDS Committees around procurement decisions.

 

RESOLVED: That the Leader be recommended to:

 

a)  Grant delegated authority to Chief Officers to take appropriate procurement action (as set out in paragraphs 3.14 to 3.19) as required to effectively manage contracts during the period of disruption caused by the current and ongoing Public Health measures;

 

b)  Agree that the delegated authority to Chief Officers to take appropriate procurement action is subject to Agreement with the Assistant Director Governance & Contracts, the Director of Corporate Services, the Director of Finance and the relevant Portfolio Holder where otherwise a procurement action would normally require a formal decision from the Portfolio Holder or Executive;

 

c)  Agree that the delegated authority to Chief Officers to take appropriate procurement action is in place for period of up to six months from 1 December 2020 following which it may be extended for a further period at the discretion of Executive or through the Leader subject to the review of decision making arrangements due to be conducted at the end of the year.

 

(Councillor Wilkins and Dunn requested that their vote against the proposals be recorded)

 

(10)  FORMAL CONSULTATION ON OUTLINE SERVICE PROPOSALS AND PROCUREMENT STRATEGY OF A REPLACEMENT FINANCIAL SYSTEM (PART 1)

  Report FSD20087

 

 

The Chairman, having declared an interest, left the meeting for the duration of this item.  Cllr Christopher Marlow, as Vice-Chairman, chaired the meeting during the Chairman’s absence.

 

As part of the IT Transformation programme, it had been recommended that reviews of Line of Business systems are undertaken to ensure they were supportable, fit for purpose and future proofed.  Bromley had been using Oracle software for its main financial system since 1998.  It was last upgraded to the current version in 2013 and was still hosted in the Council’s data centre. The system was used by approximately 600 staff across the Council and by Liberata.  The Council also had separate budget monitoring systems that were developed in-house in 2009/10 and presented a risk if compatibility issues arose from future changes required by various corporate Microsoft products, as well as being at risk from a loss of support.  Following an options appraisal, it was now proposed to procure Oracle Cloud ERP system for Finance functions to ensure the Council had a fit for purpose system that would meet the current and future needs of the Council.

 

Opening the discussion, the Vice-Chairman welcomed the move away from a series of stand-alone applications to an ERP noting that a cloud-based system would be more secure.  In response to a question concerning the decision to not consider alternate providers through a tender process, the Head of Finance (Adult Social Care) explained that a combination of factors had led to the recommendation.  Firstly, a like-for-like comparison of the cost offered by Oracle with the current system resulted in a saving, if further functionality was added at a later time further savings would be realised.  In addition, moving to a cloud-based system would give additional benefits and resilience with robust disaster recovery.  Secondly, a number of issues had arisen that had hastened a review of the system, such as the coding structure and separation of Pension Fund transactions, both of which were raised by external audit, and more recent issues following the Windows 10 deployment, such as the reporting tool no longer being supported.  It was therefore felt that there would be clear benefits to resolving those issues as soon as possible.  A tender process could take considerable time and the risks of further delay would outweigh the benefits of the tender exercise.

 

Members noted that the whilst an ambitious timetable for implementation was being proposed, Officers were confident that the system could be delivered within the proposed timeframe.

 

In response to a question concerning whether it would be possible to provide a cost comparison with other local authorities who had undertaken tender processes and awarded the contract to Oracle, the Head of Finance reported that this would be difficult as it would not be a like-for-like comparison due to the different software licensing arrangements in place, some of which would be based on the number of users of different elements of the system. 

 

A Member expressed concern that the usual procurement processes were not being used.  In response, the Legal Advisor to the Committee explained that the current contract with BT permitted modification of the contract and such a modification was allowed under Regulation 72 of the Public Contracts Regulations 2015.  The Director of Finance also highlighted that Value for Money was being sought through the process and as the Council had a history with Oracle some degree of loyalty recognition was expected; if at any time Officers felt that value for money was not being achieved a further report would be provided to Members.

 

RESOLVED: That the Leader be recommended to

 

(a)  consider the contents of the report;

 

(b)  agree a variation to the BT contract to include the procurement of Oracle’s Cloud Enterprise Resource Planning system for Finance and Procurement functions for a period of 5 years with the option to extend this for up to a further five years on an annual renewal basis;

 

(c)  delegate authority to the Director of Finance to agree the annual renewal of the Oracle Cloud Enterprise Resource System after year 5 in consultation with the Portfolio Holder for Resources, Commissioning and Contracts Management;

 

(d)  note that the capital scheme budget will be reduced by £200k to reflect the current projected costs of implementing the system;

 

(e)  note that a report will be presented to Members for approval of a replacement HR/Payroll system during 2021.

 

Supporting documents: