Archived decisions

Hampshire County Council

Policy & Resources Select Committee Item 7

July 10 2007

Scrutiny of budgets

Report of the Chief Executive

Contact: Emma Gordon

1. Introduction

Under the current Hampshire County Council Constitution, responsibility for scrutiny of financial management sits with the Policy and Resources Select Committee. Following the 2006-7 round of budget scrutiny, it became apparent that this approach towards scrutinising budgets is not sufficiently robust or supported by all Select Committees and also represents a disproportionate workload for the Policy and Resources Committee.

The importance of scrutinising budgets in the light of the council's aims and objectives and performance against these ambitions has also been recognised. Therefore, it is suggested that any proposals for an annual cycle of budget scrutiny needs to take into account the council's plans and strategies and its performance against these.

2. Proposals for an annual cycle of budget and performance scrutiny

The following annual cycle for Select Committee work on budgets and performance monitoring is proposed, subject to any input by relevant stakeholders including the Corporate Management Team and Cabinet.

July 2007:

    · P&R Select Committee receives presentation on Corporate Business Plan and Final Accounts.

    · Members use the performance measures identified in the Corporate Business Plan to focus their scrutiny of budgets throughout the year.

October/November 2007:

    · Half-year performance results and financial monitoring presented to P&R Select Committee.

    · Select Committees reconsider half-year results against the performance measures identified in the Corporate Business Plan and select topics for scrutiny.

November/December 2007:

    · Series of seminars/challenge days with departmental finance and performance officers to help Select Committees' understanding of key issues which may affect budget setting.

    · Key issues from seminars communicated to P&R Select Committee.

February 2008:

    · Select Committees scrutinise departmental budgets (i.e. Culture and Communities scrutinises Recreation and Heritage) and reports recommendations to Policy and Resources Select Committee.

    · Findings from seminars/challenge days to advise this scrutiny.

    · Policy and Resources Select Committee reports final recommendations to Cabinet.

July 2008:

    · P&R Select Committee receives full year performance results and Final Accounts, along with the medium term financial strategy.

    · Members use the performance measures identified in the Corporate Business Plan, and results against these measures, to focus their scrutiny of budgets throughout the year.

    · Series of seminars/challenge days with departmental finance and performance officers to help Select Committees' understanding of key issues which may affect budget setting.

...Annual cycle continues as per 2007.

Key points to note:

    · The P&R Select Committee will receive the same information as Cabinet at full and half year in this model.

    · It is recommended that the July seminars/challenge days do not commence until 2008 due to short lead-in times this year.

3. Recommendations

That the Policy and Resources Select Committee:

    1. Proposes a change to the Constitution to allow all Select Committees to scrutinise individual departmental budgets.

    2. Proposes that scrutiny of the annual budget setting process relates to the departmental budgets closest to the Committee's overall Terms of Reference (i.e. Culture and Communities scrutinises Recreation and Heritage budget).

    3. Endorses proposals outlined in this report for the annual cycle of budget scrutiny, subject to any feedback from the Corporate Management Team and Cabinet.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

NB: the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

(Quote list of documents here: either "none" if 1 or 2 above apply; or list the relevant letters, memos, etc. and their location)