Issue - meetings

James Newman, Director of Finance Corporate, introduced the report and provided an explanation of the CIPFA new financial management code which was introduced in October 2019.

Melissa Williamson, Finance Transformation Manager, talked through the stages that had taken place to date.  First there was a “light touch” review and now they had commissioned an external review by CIPFA.  The emerging findings were shown in the report provided.

Mark Williams, CIPFA, provided an overview to the panel about the review currently taking place and detailed the emerging key findings which were generally positive.  Feedback was being gathered from staff interviews and an online survey.  There had been positive feedback about the finance team, although some issues around systems, for example SAP.  A report and action plan would be produced once the review was fully completed.

The panel thanked officers for their work on this and commented as follows:

1.    Cllr Demirel asked officers if they were prepared to address the issues raised.  Fay Hammond, Executive Director Resources, said the review had proved to be very helpful and allowed them to focus on strengths and areas for improvement.  The finance team had recently been restructured with new directors brought in.  Fay felt the team had achieved a great deal and the review gives a good foundation and framework to focus on.

2.    It was asked if the reviews were standard practice – officers commented that almost 400 bodies have had a CIPFA review including many local authorities.  It was not compulsory but noted as best practice.

3.    Cllr David-Sanders asked about the restructure and how it was going to future proof this ownership. Fay responded highlighting that there were now clear role definitions around what the team do and services provided.  The team also worked closely with the Finance Improvement Board.

4.    Cllr Leaver questioned if the Finance Improvement Board was temporary or ongoing.  Melissa advised that it would continue throughout the Enterprise Resources Planning (ERP) implementation.  The scope may change and evolve to fit requirements.

5.    Cllr Leaver also asked about the audit and closure of accounts.  Mark responded advising that many local authorities were experiencing similar issues.  Staff appeared to be welcoming of the proposed improvements and plans.

6.    Cllr Hockney enquired about the revised CIPFA code and Minimum Revenue Provision (MRP).  Fay stated that independent treasury advisors had reviewed and confirmed it was appropriate.  Fay confirmed that capital receipts were not used in the revenue budget for MRP.  ACTION: Cllr Hockey and Fay would look at this further outside of this meeting.