Agenda and minutes

The Chairman will read the following announcement:

“I would like to remind everyone present that this meeting will be recorded for subsequent repeated viewing on the Internet and copies of the recording could be made available for those that request it.

By being present at this meeting it is likely that the recording cameras will capture your image and this will result in the possibility that your image will become part of the broadcast.

You should be aware that this may infringe your human and data protection rights. If you have any concerns please speak to the webcasting officer.

Please could I also remind members to put on their microphones before speaking by pressing the button on the microphone unit”

The Chairman reminded everyone present that the meeting would be broadcast live to the Internet, and that the Council had adopted a protocol for the webcasting of its meetings.

(Assistant to the Chief Executive) To declare interests in any item on this agenda.

There were no declarations of interest pursuant to the Council’s Code of Member Conduct.

To confirm the minutes of the last meeting of the Committee held on 22 November 2012 (previously circulated).

Resolved:

(1)        That the minutes of the meeting held on 22 November 2012 be taken as read and signed by the Chairman as a correct record.

(Directorate of Finance & ICT) To consider the attached report (FPM-021-2012/13).

The Assistant Director (Accountancy) presented the draft General Fund and Housing Revenue Account (HRA) Budgets for the financial year 2013/14. The budgets had been presented on a Directorate-by-Directorate basis with accompanying notes where significant changes had occurred. It was highlighted that £803,000 of savings in the Continuing Services Budget (CSB) had now been identified, and the reduction of £313,000 in Government support should not now impact upon services. The Directorate budgets were presented to the Cabinet Committee (and Scrutiny Panel) to consider and make recommendations prior to the budget being formerly set during February 2013.

Office of the Chief Executive

The Chief Executive reported that the original estimate for 2012/13 had been expenditure of £2.939million, with a probable outturn of £2.942million. The current draft estimate for 2013/14 was £2.809million, which represented a saving of £133,000 mainly due to there being no District Council elections planned for May 2013.

The Chief Executive stated that the CSB budget showed planned savings of £31,000 for 2013/14, of which the largest item was £22,000 in relation to salary savings for the Chief Executive’s post. The District Development Fund (DDF) budget for 2013/14 showed an anticipated income of £89,000, of which the largest item was the reduction in expenditure from no District Councils elections planned for May 2013. An item had been included for the County Council elections planned for May 2013, but a reimbursement of costs was expected from Essex County Council. There was a small additional expenditure included within the Internal Audit budget relating to staffing costs from increased  audit activities.

The Chief Executive highlighted the position for the individual cost centres within the Office of the Chief Executive, in comparison to 2012/13:

·     Corporate Activities                 £52,000 reduction in expenditure;

·     Elections                                 £112,000 reduction in expenditure;

·     Member Activities                    £16,000 increase in expenditure;

·     Voluntary Sector Support        £15,000 increase in expenditure;

·     Other Activities                        £1,000 increase in expenditure; and

·     Support Services                    £10,000 increase in expenditure.

The Assistant Director clarified that the planned expenditure of £261,000 for Elections comprised of £163,000 for Electoral Registration and £98,000 for any potential District Council bye-elections during the year. The increase in expenditure of £16,000 for the Civic & Member budget heading had been caused by a number of items being moved from Corporate Policy Making to Civic & Member.

The income of £69,000 for Members Allowances was queried by the Portfolio Holder for Safer, Greener & Highways; it was explained that this related to the recharge of Members’ Allowances to the Housing Revenue Account, and therefore showed as income in the General Fund. For both the Civic & Member and Members Allowances budget headings, 22% of the expenditure was charged to the Housing Revenue Account as this related to the Housing items discussed at the Council, Cabinet and Scrutiny Panels.

The Members considered that the level of recharges made it difficult to analyse whether the service was providing value for money and whether it should be retained in-house or out-sourced. The Finance & Performance Management Scrutiny Panel was requested to investigate recharges as Members found the current  ...  view the full minutes text for item 33.

(Director of Finance & ICT) To consider the attached report (FPM-020-2012/13).

The Senior Finance Officer (Risk Management and Insurance) presented a report regarding the Council’s Corporate Risk Register.

The Corporate Risk Register and Risk Management document had been considered by the Risk Management Group on 26 November and the Corporate Governance Group on 5 December. These reviews had identified some amendments to the Corporate Risk Register, however, no new risks had been identified. The amendments, which had been identified and incorporated into the register, were as follows:

(a)        Risk 30 – Reduction in Government Funding

The wording of both the risk Vulnerability and Trigger had been amended to reflect the updated position.

(b)        Risk 18 – Loss or theft of data

Both groups decided the likelihood had moved from significant to low and this change had been added to the Corporate Risk Register and the action plan had been amended to reflect this decision.

(c)        Risk 8 – Business Continuity Planning

At the Finance and Performance Management Cabinet Committee on 22 November 2012, Councillor Waller requested a review of the Business Continuity Planning Risk. The Council was carrying out a review of the Corporate Business Continuity and the Risk Management and Corporate Governance Group would consider this Risk further when the review was completed. This was due in the second quarter of 2013.

It was reported that the Council was under a legal obligation to bring the Gazetteer up to the required standard and it had been agreed to fund this update at the Cabinet meeting held on 10 January 2013. It was noted that the Gazetteer had a significant impact on the Council. Although, this would be a temporary measure whilst the works were being completed, it should still be added to the risk register to ensure the Council had the correct focus on it.

Councillor Waller also queried the current matrix used by the Council to represent the Corporate Risk Register. The majority of the boxes were empty and there were no risks listed as either Negligible or Catastrophic. It was felt that a more suitable matrix should be used. The Senior Finance Officer commented that this could indicate the Council was managing its risks well if there were none listed as Catastrophic, however other suitable matrices would be examined for possible use.

Members queried why Risk 1, Recruitment Restrictions, was still on the risk register, as the restrictions had been removed at the same meeting of the Cabinet on 10 January. The Senior Finance Officer reported that the meetings of the Risk Management Group and Corporate Governance Group which had reviewed the Corporate Risk Register had been held before the decision by the Cabinet. This risk would be reviewed and deleted as part of the next scheduled update.

Members were asked to consider the updated Corporate Risk Register, that the risks listed were scored appropriately, whether there were any additional risks that should be included and whether the tolerance line should be amended.

Recommended:

(1)        That Risk 8, Business Continuity Planning, be reviewed following the completion of the  ...  view the full minutes text for item 34.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

Resolved:

(1)        That, in accordance with Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs (6) and (24) of the Council Procedure Rules, the Chairman had permitted the following item of urgent business to be considered following the publication of the agenda:

            (a)        Council Budgets 2013/14.

(Director of Finance & ICT) To consider the attached report (FPM-022-2012/13).

The Assistant Director (Accountancy) presented a report detailing the proposed Council Budget for 2013/14, which would enable the Council’s policy on the level of reserves to be maintained throughout the period of the Medium Term Financial Strategy (MTFS). The budget was based on the assumption that Council Tax would be frozen and that average Housing Revenue Account rents would increase by 4.36% in 2013/14.

The Assistant Director advised that the Financial Issues Paper (FIP) was prepared against the background of cuts in public expenditure, ongoing difficulties within the economy and highlighted the uncertainties associated with Local Government Resource Review, Business Rates Retention, Welfare Reform, New Homes Bonus, Double-Dip Recession, Development Opportunities, Community Budgets, and Organisational Review. There was now greater clarity on some of these issues, but several of them would not be resolved for some time.

In setting the budget for the current year it had been anticipated adding £13,000 to the general fund reserves. This was possible as the savings achieved during the budget process last year had exceeded the target and produced a Continuing Services Budget (CSB) balance below that which had been anticipated. The small addition of £13,000 was welcome as the MTFS at that time was predicting the use of just over £1million of reserves to support spending in the following three years.

The revised four year forecast presented with the FIP took into account all the additional costs known at that point and highlighted the structural reform to local authority finances due to the local retention of business rates and the Government’s programme of welfare reforms. This projection showed a need to achieve savings of £250,000 on the 2013/14 estimates, £400,000 in 2014/15 and 2015/16 and £200,000 in 2016/17 to keep revenue balances above the target level at the end of 2016/17. The FIP established the following budget guidelines for 2013/14: the ceiling for CSB net expenditure be no more than £14.91million including net growth/savings; the ceiling for District Development Fund (DDF) net expenditure be no more than £0.560million; and the District Council Tax to be frozen.

The Assistant Director reported that the Government’s Comprehensive Spending Review had only provided two years worth of figures instead of the usual four because of the Government’s desire to radically change the system of funding local authorities. The figures for 2013/14 and 2014/15 were only received late in December 2012. Under a new system, the Council had been placed in band 3 which meant that its reduction in Formula Grant had been limited to 9.4%, or £606,000. The final Grant figure of £6.05million had been £313,000 lower than anticipated.

The Government had introduced a new scheme of Business Rates Retention, but the detailed regulations and guidance was still awaited. For Epping Forest, the predicted amount of non-domestic rates to be collected in 2013/14 had been set at £31.888million. Of this, 40%, or £12.755million related to the Council, but the amount of business rates to be retained by the Council had already been set by the Government at  ...  view the full minutes text for item 36.