{Disestablished Committee} - Finance and General Purposes Overview and Scrutiny Committee

Read the Minutes

9 March 2006

Present:

• Councillor Priest - In the Chair 
• Councillors Andrews, Flanagan, Isherwood, Leech, Morrison, Pritchard, Brian O'Neil, Rothery, Sandiford and Trotman. 

Also Present:

• Councillor S. Murphy, Executive Member for Finance and Human Resources 

FGP/06/14 Minutes

Decision

To approve as correct records the Minutes of the meetings held on 9th and 27th February 2006.

FGP/06/15 Annual Audit 2004/5 and Inspection letter and Performance Review Audit Action Plan

The Committee considered the Annual Audit and Inspection Letter for 2004/2005.

The District Auditor, Mr Clive Portman attended the meeting and responded to Members' questions on specific aspects of the audit process. In particular members questioned how the scores from half of the indicators in the bottom quartile resulted in an overall 3-star rating for the authority, and the extent to which auditors could be confident regarding the absolute relevance of the assessments made against the performance of other similar authorities.

Mr Portman indicated that in addition to the indicators the audit process also considered detailed findings from specific service inspections undertaken during the year which produced much more detailed information about the standard of services and the efficiency of delivery, which, in many cases evidenced examples of best practice, and all of this information contributed to the determination of the overall star assessment. He emphasised that the overall assessment had to be based on all the information available, and that in Manchester's case the body of evidence demonstrated that the Council was improving adequately with two-thirds of performance indicators having improved over the past two years.

There were however a number of areas where performance needed to improve which he had highlighted in the audit report, and these were recognised and accepted by the authority. Reference was made to the poor score in relation to financial reporting and to the District Auditor's view that this was 'below acceptable standards'. Mr Portman indicated that the timetable for the closing down of the Council's accounts had been progressively brought forward in recent years and he believed that accounting systems had not kept pace with these changes. New financial management systems to be implemented across the Council in April should significantly improve the quality of management information available from which to construct more accurate accounts, and produce clearer audit trails. The Committee then turned to look at the Performance Management Audit.

The Assistant Chief Executive (Performance) introduced the action plan prepared in response to the findings of the audit. He indicated that there was wide acceptance within the authority that performance management needed to improve at a faster rate and for there to be a more robust regime of internal challenge, though he believed that the extent of deprivation in the city and the impacts that this placed on service demands and delivery imposed significant challenges.

Decision

1. To thank the District Auditor and his team for attending the meeting.

2. To note the outcomes of the Performance Management audit and the action plan devised to address key findings and recommendations for improvement, and to agree to return to revisit this issue and to monitor the implementation of the Action Plan at key points during the coming Municipal Year.

3. To note the concerns expressed by the District Auditor about the control of education budgets and to agree to review core educations funding as part of the work programme for 2006/2007.

FGP/06/16 Postal Services Review

The Committee considered the report of the Deputy Chief Executive (Regeneration) presenting the findings of the Sub Group previously appointed to review the future development of postal services within the city.

The Committee also received a presentation by the New Economics Foundation (NEF) on the conclusions and recommendations from their examination of current impacts and future prospects in relation to post offices in Manchester. Their report identified the impacts of past post office closures on communities and businesses in Manchester, in some cases reflected in reductions in business turnover of up to 50%. Continued uncertainty existed in relation to the future of Crown offices, the existence of which had previously been cited as one of the reasons supporting the previous closure programme.

A member referred to the recent announcement regarding the proposed withdrawal of the Post Office Card Account which would undermine the core business viability of many post offices. Concerns were also expressed that the impacts of increasing competition in the postal services market following the ending of Royal Mail's monopoly could lead to further post office closures, and that the potential for this supported careful consideration being given to the case for separating Post Offices Ltd from Royal Mail.

Decision

1. To invite Councillor Battle, Deputy Leader of the Council, and the Executive Member for Finance and Human Resources to work with the Sub Group with a view to bringing forward a fully costed action plan based on the recommendations in the report for presentation to the Executive on 31 May 2006.

2. As part of the development of that Action Plan to consider recommending to the Executive that the Council should lobby government to reverse their decision to discontinue the Post Office Card Account, on the basis that this will undermine the business viability of many post offices.

3. To thank NEF and the officers of the Council for their valuable assistance to the Sub Group in its work.

FGP/06/17 Draft Sustainable Community Strategy

A report of the Chief Executive was submitted in relation to the Draft Sustainable Development Strategy and inviting the Committee to submit views to the Executive which would be asked to approve the strategy for the purposes of public consultation on 15 March.

Welcoming the strategic approach being taken Members emphasised the importance of securing wide public endorsement and engagement to the process.

Decision

To commend the strategy to the Executive for the purposes of public consultation.