Agenda item

A report from the Executive Director of Finance, Resources and Customer Services is attached. (Non key)

(Report No.149)

(7.30 – 7.35 pm)

Councillor Doug Taylor (Leader of the Council) introduced the report of the Executive Director of Finance, Resources and Customer Services (No.149) updating on the findings of a review of the Council’s companies at both an entity and group level, and making recommendations on setting up an Oversight Board (referred to as the Shareholder Board).

NOTED

1.               That Appendix 3 to the report set out the proposed Company reporting structure. In response to a question raised with regard to the Oversight Committee for the Independence and Well Being Company, and HoldCo for energetic; it was noted that subject to the proposed review by the new Shareholder Board, this Oversight Committee might no longer be required.

2.               The proposal in recommendation 2.2 of the report that for consistency only one Councillor (Cabinet Member) should sit on each Company Board. Members felt that this proposal should form part of the review to be undertaken by the Shareholder Board to ensure that this proposal would be appropriate for each Company. Members proposed therefore to note rather than agree the proposal at this stage, as reflected in decision 2 below.

3.               The proposed timescales for the review and implementation of the proposals in moving forward. It was felt that the proposed review of the current arrangements should start in the current municipal year with a view to the full implementation in the light of the review, starting in the new municipal year.

4.               That the initial membership of the Shareholder Board would be:

Councillor Achilleas Georgiou (Deputy Leader)

Councillor Daniel Anderson (Cabinet Member for Environment)

Councillor Yasemin Brett (Cabinet Member for Community, Arts and Culture)

Councillor Krystle Fonyonga (Cabinet Member for Community Safety and Public Health

The membership would be reviewed at the start of the new municipal year and in the light of the initial review being undertaken.

5.               In response to questions raised, it was noted that the Companies were subject to internal audit programmes, as appropriate to the individual Company and, that external auditors were also appointed. Audit reports were publicly available and the Freedom of Information Act principles also applied to the Companies. As a sub-committee of Cabinet, meetings of the Shareholder Board would be held in public, subject to the normal restrictions on part two information.

6.               The role of the Shareholder Board as a Cabinet Sub-Committee was outlined and, how this was distinct from the role undertaken by the Overview and Scrutiny Committee.

7.               The success of the companies involved and the need for a strategic overview of them all. The Shareholder Board would consider the strategic direction of each company, set targets, monitor progress and consider areas of mutual benefit and development.

Alternative Options Considered: NOTED, the alternative options which had been considered as set out in section 4 of the report.

DECISION: The Cabinet agreed

1.               To set up a sub-committee of Cabinet to be referred to as the Shareholder Board, which would take on oversight and, directional responsibilities for all of the Council’s companies. The initial membership of the Board to comprise:

Councillor Achilleas Georgiou (Deputy Leader)

Councillor Daniel Anderson (Cabinet Member for Environment)

Councillor Yasemin Brett (Cabinet Member for Community, Arts and Culture)

Councillor Krystle Fonyonga (Cabinet Member for Community Safety and Public Health

2.               To note the recommendation that for consistency only one Councillor (Cabinet Member) would sit on each Company board. This would be subject to an initial review by the Shareholder Board.

3.               An early action of the sub-committee (Shareholder Board) would be to review the other governance arrangements of each company and report back on recommendations to improve consistency and approach.

4.               To agree the Terms of Reference set out in appendix 1 of the report.

5.               To note that an annual report from each company would be submitted to Cabinet in the September cycle of meetings.

Reason: The detailed reasons for the recommendations were set out in section 5 of the report.

(Non key)