Agendas, reports and minutes

Minutes of Meeting of the Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 25 November 2015 at 10.30 am.

Present:

Mr B Fernie, Mr A Mackinnon, Mrs H Carmichael, Mr A Christie, Dr I Cockburn, Mrs M Davidson, Mr D Fallows, Mr B Gormley, Mr D Kerr (substitute), Mr R Laird, Mr B Lobban, Mrs D Mackay, Mr D Mackay, Mr T Maclennan, Mrs I McCallum, Mr F Parr, Mr J Rosie (substitute), Ms M Smith, Mrs K Stephen, Mr B Thompson,

Non Members also Present:

Mrs J Barclay, Mr A Baxter, Mr B Clark, Ms J Douglas, Mr J Gray, Mr R Greene, Mrs L Macdonald, Mr G Mackenzie, Mr A Rhind, Mr J Stone,

Officials in attendance:

Ms M Morris, Depute Chief Executive/Director of Corporate Development 
Mr D Yule, Director of Finance 
Mr A Gunn, Head of Revenues and Business Support, Finance Service 
Mr J Batchelor, Head of People & Performance, Corporate Development Service 
Ms V Nairn, Head of Digital Transformation, Corporate Development Service 
Mrs C McDiarmid, Head of Policy and Reform, Chief Executive’s Office 
Mr D Goldie, Head of Housing, Community Services 
Mr A Maguire, Head of Property Partnerships, Development & Infrastructure Service 
Mrs S McKandie, Exchequer Manager (Policy & Development), Finance Service 
Mr M Fraser, Finance Manager, Finance Service  Mr A Bruce, Service Delivery Manager, Finance Service 
Ms Fiona Wood, Finance Manager (Accounts and Central Services), Finance Service 
Ms J Scotson,Business Change Manager, Corporate Development Service 
Ms T Page, Customer Service Manager , Corporate Development Service 
Mr M Bailey, Project Manager, Corporate Development Service 
Mr J Robertson, Corporate Improvement Programme Manager, Corporate Development Service 
Mr J Shepherd, ICT Operations Manager, Corporate Development Service 
Mr B Omoniyi, ICT Strategy and Projects Manager, Corporate Development Service 
Mr K Fox, ICT Reprovision Programme Manager, Corporate Development Service 
Mr G Falconer, Occupational Health, Safety and Wellbeing Manager, Corporate Development Service 
Mr M MacDonald, Human Resources Manager, Corporate Development Service 
Mr P Mascarenhas, Community and Democratic Engagement Manager, Chief Executive’s Office 
Ms R Cleland, Corporate Communications Manager, Chief Executive’s Office  Mrs K Lackie, Business Manager, Chief Executive’s Office 
Mr D Norrie, Emergency Planning and Business Continuity Manager, Community Services 
Mr G Bull, Corporate Property Asset Manager, Development & Infrastructure Service 
Mr G Youngson, Acting Property Manager, Development & Infrastructure Service 
Mr S Carr, Principal Policy Officer – Climate Change, Chief Executive’s Office 
Ms K Masson, Policy Coordinator – Climate Change, Chief Executive’s Office 
Ms G Cassells, Policy Officer – Climate Change, Chief Executive’s Office 
Ms C Stachan, Accountant, Finance Service 
Mrs L Dunn, Principal Committee Administrator, Corporate Development Service 
Ms A Macrae, Committee Administrator, Corporate Development Service 
Miss J Green, Administrative Assistant, Corporate Development Service

An asterisk in the margin denotes a recommendation to the Council. All decisions with no marking in the margin are delegated to the Committee.

Mr B Fernie in the Chair

Business

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Dr D Alston, Miss J Campbell, Mr J McGillivray and Mr D Millar.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

The Committee NOTED the following declarations of interest:

Item 4(b): Non-Financial: Ms J Douglas and Mr F Parr 
Item 4(c): Non-Financial: Ms J Douglas and Mr F Parr 
Item 6(b): Non-Financial: Ms J Douglas, Mr F Parr and Mr R Laird 
Item 15: Non-Financial:Mr A Christie, Ms J Douglas and Mr B Gormley 
Item 16: Non-Financial: Mrs D Mackay: Financial: Mr A Christie 
Item 17: Non-Financial:Mr A Christie 
Item 28(b): Non-Financial: Mrs L Macdonald 
Item 32: Non-Financial: Mr D Fallows

Also, and in terms of the general dispensation granted by the Standards Commission, Mr D Kerr declared a financial interest in any items which might arise during discussion in regard to Council housing on the grounds of being a Council House tenant.

Following on from the above and during discussion the Committee AGREED to consider providing only a summary of any comments and actions agreed by the Audit and Scrutiny Committee in future reports to the Committee on internal audit reviews to avoid duplication, with access to the full reports being provided by way of an electronic link.

3. Digital Inclusion in the Highlands –Presentation
In-ghabhail Didseatach sa Ghàidhealtachd – Taisbeanadh

The Business Change Manager gave a presentation on Digital Highland which was a partnership approach to Digital Inclusion in the Highlands. She referred to the benefits of being online to users in terms of the financial, social, educational and employability value and the ability to access public and health services. She also provided a profile in terms of digital use in the Highlands including the areas where and reasons why residents were likely to be digitally excluded which related mainly to rurality, skills and inclination. In conclusion the Business Change Manager provided details of the digital resilience project which was designed to build a resilient partnership across a local authority area. She also outlined the next steps which included undertaking research into barriers into digital inclusion, facilitate local partnership, recruit digital champions; provide signposting to support; and promote and deliver digital skills training.

During discussion, Members raised the following issues:-

• it was important that digital inclusion formed a key part of the Council’s anti-poverty strategy for the Highlands;
• it was important that the Digital Highland Partnership undertook work at a local level within communities, for example by organising ‘train the trainer’ events;
• that the Council in conjunction with Highlands and Islands Enterprise and other neighbouring local authorities continue to promote digital inclusion by exerting pressure to improve broadband connections and mobile phone coverage across the north of Scotland;
• concern at the slippage on the roll-out of the Digital Highland and Islands Superfast Broadband project and also the fact the project did not necessarily deliver complete coverage in areas with some people being unable to connect into the new or upgraded system in their locality;
• that the BIG group project in Nairn be welcomed on the basis this was an intergenerational project which also addressed issues of social inclusion;
• a copy of the presentation be circulated to Members;
• reference to the financial barriers some people faced in being able to install a broadband connection within their homes and therefore that consideration be given to the opportunities to open up Council buildings to provide the public with free access to the internet and on-line services; and
• in regard to the above it was reported that free internet access was offered at some public buildings in Highland such as libraries, colleges and youth clubs and it was suggested there was a need to better advertise and promote the availability of these facilities.

Thereafter, the Committee AGREED that a copy of the presentation be circulated to Members.

FINANCIAL MONITORING SGRÙDADH IONMHASAIL

4. Revenue and Savings Monitoring Report to 30 September 2015
Aithisg Sgrùdaidh Teachd-a-steach agus Sàbhalaidhean gu 30 Sultain 2015

(a) Corporate Revenue Monitoring to 30 September 2015
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Sultain 2015

There had been circulated Report No RES/89/15 dated 12 November 2015 by the Director of Finance which presented the financial position of the revenue budgets of the General Fund and Housing Revenue Account (HRA) for the period from 1 April to 30 September 2015 and the estimated position for the 2015/16 financial year.

During discussion, Members raised the following issues:-

• that a briefing be arranged for the Ward 21 Members in regard the Courthouse in Grantown-in-Spey and its potential future uses for the benefit of the community;
• that Members be provided with more detailed information in regard to the figures shown within the Appendices to the report in respect of earmarked balances;
• it was suggested that to achieve the required income targets for car parking charges there was a need to consider this as a Highland wide issue rather than to focus solely on Inverness;
• that an explanation be provided on the overspend shown on expenditure on dangerous buildings although it was acknowledged this information might have been reported to the Planning, Development and Infrastructure Committee; it was confirmed that this matter would be referred back to the Director of Development and Infrastructure for clarification if required;
• the need to review the budget for the Council Tax Reduction (CTR) Scheme in view of the policy changes introduced by the Department of Work and Pensions which reduced the qualifying amounts on which CTR was calculated;
• it was suggested that in considering how to use any surplus generated through the above Scheme it should be borne in mind that the saving had been achieved at the expense of the poorest in society;
• that Members were concerned at the increasing use of vacancy management as a tool to offset and manage budgets pressures but which might be to the detriment of services and the need for more detailed information to be provided to Members on the service implications to allow for further scrutiny; and
• in regard to the above concern that the use of vacancy management to offset pressures on Care and Learning budget might be impacting on services for children and vulnerable adults and in this regard it was requested that that Members be provided with a list of the posts by geographical area within the Care and Learning Service which were subject to vacancy management.

The Committee:-

i. NOTED the financial position of the General Fund and HRA revenue budgets as at 30 September 2015 and the estimated year end net underspend of £1.290m and additional anticipated income from Council Tax of£0.932m making a total surplus of £2.222m;

ii. NOTED that pressures in respect of the Pay Award and the Living Wage totalling £1.717m which settled after the closure of the monitoring period would be included in future monitoring reports and would impact on the underspends above. Assuming no other changes this would reduce the overall surplus to£0.505m;

iii. AGREED that a briefing be provided to Ward 21 Members on potential uses of the Courthouse in Grantown-on-Spey;

iv. AGREED that Members be provided with more detailed information in regard to the figures shown within the Appendices to the report in respect of earmarked balances; and

v. AGREED that Members be provided with a list of the posts by geographical area within the Care and Learning Service which were subject to vacancy management.

(b) Service Savings for 2015/16 – Quarter 2 Progress Report
Sàbhalaidhean Seirbheis airson 2015/16 –Aithisg Adhartais Ràith 2

Declaration of Interests - Ms J Douglas and Mr F Parr declared a non-financial interest in this item as Directors of High Life Highland, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There had been circulated Report No RES/90/15 dated 13 November 2015 by the Director of Finance which provided an overview of progress made by Services on the agreed savings proposals for 2015/16.

During discussion, Members raised the following main points:-

• that while recognising the challenges and risks associated with achieving savings targets it was suggested that a number of the savings targets which had been agreed by the Council in December 2014 had been over optimistic; going forward there was a need to consider in more detail any proposals presented as part of the budget setting process to ensure there was more potential for them to be delivered and to reduce reliance on vacancy management;
• it was important that future progress reports provided more detailed information around the proposed alternative savings measures as set out in Appendix 3 of the report, including the service implications to allow for Member scrutiny;
• concern at the progress being made in achieving the income targets on the Members’budget in terms of voluntary contributions;
• in regard to the above it was suggested there was some flexibility within the Scottish Government regulations to allow the Administration to undertake a full review of the remuneration and allowances paid to Members, specific reference being made to opportunities which might exist to achieve savings in relation to mileage allowances, basic allowances and payments to senior councillors;
• it was suggested that consideration also be given to Members’ full expenses being published on a monthly basis in the interests of openness and transparency;
• in response to the above the Leader of the Council advised that the Administration would consider comments and suggestions in regard to the opportunities to review Members remuneration and allowances to generate savings;
• it was suggested that the income target of £15,000 set for the voluntary contributions on the Members budget had been unachievable and based on more accurate costings and that the sum of £4,000 would have been a more realistic figure;
• discussion around the reasons why the level of savings which were estimated could be achieved from the renegotiating and refinancing of PPP contracts would not be achieved;
• it was important to continue to focus on further improving and enhancing the Council’s digital technology to allow Members to participate in more meetings remotely thereby reducing expenditure on travel expenses;
• an explanation was sought on the reasons why it was not proposed to introduce a standard timetabling structure across Highland secondary schools, on the basis this was the optimal staffing and timetabling model regardless of whether it would achieve savings; it was confirmed that Members comments on this matter would be reported back to the Director of Care and Learning; and
• an explanation was provided in terms of how the ragging status was arrived at in terms of the savings measures and also the importance of a consistent approach being taken in this regard.

i. NOTED the progress made by Services towards their savings targets for 2015/16;

ii. NOTED that comments and suggestions in regard to the potential to review Members remuneration and allowances to generate savings would be considered by the Administration; and

iii. AGREED that future progress reports provide more detailed information around the proposed alternative savings measures, including the service implications.

(c) Transformational Savings Programme
Prògram Shàbhalaidhean Cruth-atharrach

Declaration of Interests - Ms J Douglas and Mr F Parr declared a non-financial interest in this item as Directors of High Life Highland, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There had been circulated Report No RES/91/15 dated 16 November 2015 by the Depute Chief Executive/Director of Corporate Development which explained that the Transformation Savings Programme (TSP) was progressing with a target to achieve £18m in efficiency savings for the period 2015/16 - 2018/19, as agreed by Council in December 2014.

During discussion, Members raised the following points:-

• that a report be provided to the relevant committee on the alternatives to be identified in respect of the project ‘Waste Disposal Anaerobic Digestion’;
• in regard to the project ‘Waste Disposal - Energy from Waste’ that a report be submitted to the relevant committee on the review of the financial model which had been completed; the Depute Chief Executive/Director of Corporate Services confirmed that a report on this item would be submitted to Community Services Committee early in 2016;
• concern at lack of progress around shared services and the fact partners were not more willing to take this forward at a time of diminishing resources; it was suggested that there was a need for a culture change at a national level and for this to be politically driven and therefore the Council should consider its approach to lobbying Ministers so that public sector bodies were instructed to undertake more joint working;
• a point in regard to proposals around the project ‘Supporting Community Organisations’ and specifically the reasons why it was recommended this project be moved into the financial years 2017/18 and 2018/19 given this was a key priority for the Council in the context of increasing pressures on its budgets;
• that clarification also be provided on proposals to continue to support communities which were ready to take on services;
• in regard to the above it was suggested there was little appetite within some communities to take on services on the basis they did not feel capable of doing so and therefore whether the projected savings detailed against this heading were achievable; and
• that it was important the Council had an enabling role to assist communities to take on services for example in relation to overcoming issues in regard to insurance and employment of staff.

The Committee:-

i. NOTED progress with the delivery of the Transformational Savings Programme;

ii. NOTED actions being taken to ensure savings were delivered; and

iii. APPROVED the recommended changes to savings as follows:

a) Transport Programme: 2015/16 savings balance of £117,000 carried forward with remaining years savings re-profiled;

b) Waste Disposal Anaerobic Digestion: saving not deliverable and alternative to be identified;

c) Supporting Community Organisations: move 2015/16 (£50,000) and 2016/17 (£200,000) savings into 2017/18 and 2018/19;

d) Mobile Service Delivery: 2015/16 savings balance of £88,000 carried forward to 2016/17; and

e) Shared Services Business Support: alternative saving to be found.

5. Corporate Capital Monitoring to 30 September 2015
Sgrùdadh a’ Chalpa Chorporra gu 30 Sultain 2015

There had been circulated Report No RES/92/15 dated 13 November 2015 by the Director of Finance which provided an overview of expenditure on the General Fund and Housing Revenue Account (HRA) capital programmes for the period from 1 April to 30 September 2015 and the estimated position for the 2015/16 financial year.

During discussion, Members raised the following points:-

• an assurance was sought and provided that the sum of £15,000 allocated from the Capital Discretionary Fund toward an energy scheme at Merkinch Community Centre would remain in the budget in the event that a replacement building was not the preferred option of the community;
• concern at the slippage on the budget for investing in renewal energy projects and a point as to why the Council was not proactively seeking to invest in some of the community windfarm or hydro schemes ongoing across the Highlands; the Chair advised that he welcomed any such potential investment and that he would discuss this matter directly with Ms M Smith outwith the meeting; and
• it would be helpful to have an update on progress with the work being undertaken by the Commercial Manager; the Depute Chief Executive/Director of Corporate Development advised that it was intended to report to the next Committee in February 2016 on the Commercial Manager’s activities in terms of income generation.

The Committee NOTED the financial position of the General Fund and HRA Capital Programmes as at 30 September 2015.

6. Applications to Capital Discretionary Fund 2015/16
Iarrtasan dhan Bhuidseat Chalpa fo Ùghdarras 2015/16

(a) Kyle of Sutherland Development Trust – New Visitor Centre and Restaurant at the Falls of Shin
Urras Leasachaidh Caolas Chataibh – Pròiseact Coimhearsnachd Eas Sin

There had been circulated Joint Report No RES/93/15 dated 13 November 2015 by the Director of Finance and the Head of Policy and Reform. The Kyle of Sutherland Development Trust, a registered charity based in Bonar Bridge, Sutherland, was seeking capital discretionary funding of £100,000 for the development of a new Visitor Centre and Restaurant at the Falls of Shin in Sutherland. This report recommended that Members approve the application subject to the full funding package being secured.

In discussion, Members welcomed the project and commented on the excellent work being undertaken by the Kyle of Sutherland Trust in the area.

The Committee APPROVED a contribution of £100,000 over two years from the Capital Discretionary Fund 2015/16 towards the Falls of Shin Community project, subject to the full funding package being put in place.

(b) Merkinch Welfare Hall, Inverness – ‘Fit for the Future’ Project
Pròiseact‘Fit for the Future’ aig Talla-leasa Mharc-innis

Declaration of Interests - Ms J Douglas and Mr F Parr as Directors of High Life Highland and Mr R Laird as Chair of the Merkinch Partnership all declared a non-financial interest in this item, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interest did not preclude her from taking part in the discussion.

There had been circulated Joint Report No RES/94/15 dated 13 November 2015 by the Director of Finance and Inverness City Area Manager which invited Members to consider providing funding of up to£28,763 from the Capital Discretionary Fund towards a projected deficit of£82,526, to enable the Merkinch Welfare Hall “Fit for the Future” project to proceed.

In discussion the project was welcomed as an important step in the regeneration of the area. It was also suggested that the wording at paragraph 2.1.4 of the report was inappropriate and that this type of language should not be replicated in any future reports.

The Committee AGREED:-

i. the project to reconstruct the Merkinch Welfare Hall, Inverness be awarded a maximum sum of £0.029m from the Capital Discretionary Fund for the year 2015/16, to be advanced only in the event that existing funders were not agreeable to increasing their respective contributions to meet the stated increase in project costs; and

ii. that Council funding be conditional on other funding being in place.

7. Finance Service Revenue Monitoring to 30 September 2015
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 30 Sultain 2015

There had been circulated Report No RES/95/15 dated 12 November 2015 by the Director of Finance which commented on the Revenue Monitoring position for the Finance Service for the period to 30 September 2015.

The Committee AGREED the monitoring report to the end of September 2015.

8. Corporate Development Service Revenue Expenditure Monitoring to 30 September 2015
Sgrùdadh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2015

There had been circulated Report No RES/96/15 dated 12 November 2015 by the Depute Chief Executive/Director of Corporate Development which commented on the revenue monitoring position for the Corporate Development Service for the period 1 April 2015 to 30 September 2015.

In discussion, it was proposed that both the Elections and Democratic Services Teams be commended on delivering savings on their revenue budgets while coping with increased pressures and demands on their services. Accordingly it was requested that Members congratulations be passed on to the respective Heads of Services in recognition of their work.

The Committee AGREED the revenue monitoring report for the period 1 April 2015 to 30 September 2015.

9. Corporate Development Service Capital Budget Monitoring Report to 30 September 2015
Sgrùdadh Calpa Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2015

There had been circulated Report No RES/97/15 dated 12 November 2015 by the Depute Chief Executive/Director of Corporate Development which set out the monitoring position for the Corporate Development Service’s 2015/16 capital budget for the period to 30 September 2015.

The Committee:-

i. AGREED the monitoring position for the Corporate Development Service’s capital budget for the period 1 April 2015 to 30 September 2015; and

ii. APPROVED the re-profiling of the ICT Reprovision budget to match with the revised project timetable.

10. Chief Executive’s Office and Members Revenue Expenditure Monitoring to 30 September 2015
Sgrùdadh Caiteachas Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 30 Sultain 2015

There had been circulated Report No RES/98/15 dated 13 November 2015 by the Chief Executive which provided information on the revenue monitoring position for the Chief Executive’s Office and Members’ budget for the period 1 April 2015 to 30 September 2015.

The Committee AGREED the revenue monitoring report for the period 1 April 2015 to 30 September 2015.

11. Chief Executive’s Office Capital Budget Monitoring to 30 September 2015 Sgrùdadh Buidseit Calpa Oifis an Àrd-Oifigeir gu 30 Sultain 2015

There had been circulated Report No RES/99/15 dated 15 November 2015 by the Chief Executive which set out the monitoring position for the Chief Executive’s Office 2015/16 capital budget for the period to 30 September 2015.

The Committee AGREED the capital monitoring position for the Chief Executive’s Office Capital Budget for the period 1 April 2015 to 30 September 2015.

EMPLOYEE SURVEY
SUIRBHIDH LUCHD-OBRACH

12. Employee Survey 2015
Suirbhidh Luchd-obrach 2015

(a) Corporate Response
Freagairt Chorporra

There is circulated Report No RES/100/15 dated 26 October 2015 by the Depute Chief Executive/Director of Corporate Development providing the corporate commitments which address the key messages and areas for improvement from the 2015 Employee Survey. The impact of these commitments would be measured in the next Employee Survey.

In discussion concern was expressed at the impact of budget reductions on staff who were delivering front line services and the need for there to be more recognition of the impacts on staff.

The Committee AGREED the corporate commitments in response to the 2015 Employee Survey.

(b) Finance Service Results
Toraidhean Seirbheis an Ionmhais

There is circulated Report No RES/101/15 dated 13 November 2015 by the Director of Finance which provided Members with the key findings for the Finance Service in response to the views expressed in the 7th Highland Council Employee Survey.

The Committee NOTED:-

i. the results of the 7th Employee Survey for the Finance Service;

ii. that the results would be presented to staff and that an Improvement Action Plan would be compiled; and

iii. that progress against this Improvement Action plan would be monitored by the FMT, reported to the Chief Executive’s Quarterly Performance meetings, and reported to Resources Committee towards the end of 2016.

(c) Corporate Development Action Plan
Toraidhean Seirbheis an Leasachaidh Chorporra

There had been circulated Report No RES/102/15 dated 13 November 2015 by the Depute Chief Executive/Director of Corporate Development which provided a brief summary of the responses from Corporate Development staff to the Highland Council’s 7th Employee Survey and provided the action plan agreed with staff as a result of their views.

It was noted that while satisfaction levels with career development in the Service was listed as being 31%, there was no reference to this matter within the Action Plan. Discussion then followed on the challenges of providing career development opportunities at a time when the size of the organisation was reducing as well as the need to achieve continued efficiencies and new methods of working. However, there was a need for staffs’ transferrable skills to be recognised which would enable staff to apply for career development opportunities across all Council services as they arose.

The Committee NOTED:-

i. the results of the Corporate Development staff response to the 2015 Employee Survey;

ii. the Action Plan agreed with staff to address specific areas for improvement; and

iii. that the plan would be tracked by the Service Management Team and progress would be reported to Resources Committee towards the end of 2016.

BUSINESS CONTINUITY PLAN
PLANA LEANTAINNEACHD GHNOTHACHAIS

13. General Business Continuity Plan (BCP)
Plana Leantainneachd Ghnothachais na Comhairle

There had been circulated Report No RES/103/15 dated 10 November 2015 by the Director of Community Services which introduced the attached Council’s Business Continuity Plan (BCP). The plan identified key business activities delivered by Council Services. It had been prepared according to a methodology agreed by the Executive Leadership Team which identified key activities which must be maintained against a range of timeframes. Services’ BCPs form an integral part of the Council’s overall General BCP. These plans had been approved by Services’ respective committees. Any identified training for staff in the activation of the BCP would follow, as would testing, and periodic review.

Arising from the report discussion followed on a general point around the measures in place to ensure there was consultation with the wider community in the event of a major incident or emergency.

The Committee APPROVED the Council’s General Business Continuity Plan.

FINANCE SERVICE
SEIRBHEIS AN IONMHAIS

14. Treasury Management
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/104/15 dated 12 November 2015 by the Director of Finance which provided details on the Treasury Management transactions undertaken within the period which was submitted to the Committee in compliance with CIPFA's Code of Practice on Treasury Management and the Council's approved Financial Regulations.

The Committee NOTED the Treasury Management Summary of Transactions reports.

(b) Mid-year Review Report 2015/16
Aithisg Ath-sgrùdadh Meadhan-bliadhna 2015/16

There had been circulated Report No RES/105/15 dated 12 November 2015 by the Director of Finance which provided the Treasury Management Mid-year Review Report 2015/16 for Members’ scrutiny. In compliance with CIPFA’s Code of Practice on Treasury Management in Local Authorities, the report would also be submitted to the Council in December 2015 for approval.

The Committee NOTED:-

i. the Treasury Management Mid-year Review Report 2015/16; and

ii. that, in compliance with CIPFA’s Code of Practice on Treasury Management in Local Authorities, this report would also be submitted to Council for approval in December 2015.

15. Welfare Reform Update
Cunntas às Ùr mu Ath-leasachadh Shochairean

Declarations of Interest - Mr A Christie as General Manager of Inverness, Badenoch and Strathspey Citizens Advice Bureau, Ms J Douglas as a volunteer and member of the Steering Group of the Badenoch and Strathspey Foodbank, and Mr B Gormley as Advisor to Lochaber Citizen’s Advice Bureau all declared a non-financial interest in this item, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There had been circulated Joint Report No RES/106/15 dated 13 November 2015 by the Director of Finance and the Director of Community Services which provided comprehensive information on the current status of Universal Credit and other Welfare initiatives. It also made available financial monitoring information, covering the Council’s considerable involvement in this area of work.

During discussion, Members raised the following points:-

• it was noted that a briefing note would be circulated to Members on working tax credits following the Chancellor of the Exchequer’s Autumn Statement;
• concern that any reductions in the child or working tax credits might result in increased child poverty and reduced access to school meals;
• concern that the benefit sanctions regime was draconian and punitive and a source of distress to people in the Highlands, many of which were vulnerable; it was also suggested that the sanctions did not work in terms of getting people back into employment or take into account the barriers people faced, such as the ability to afford transport costs to attend DWP appointments, and resulted in an increased reliance on support such as food banks;
• that the mitigating actions being implemented by Community Services in relation to temporary accommodation be welcomed; however there was a need to review this further to reduce the reliance on and charges for temporary accommodation;
• concern that many of the recommendations set out in the Child Poverty Action Group’s report were outwith the control of both the Council and the Scottish Government, specific reference being made to the limited funding that was available to ensure affordable, reliable transport was available locally;
• concern that the Chancellor of the Exchequer’s Autumn Statement and continued reductions in public sector funding would significantly compound the issues and problems set out in the report and that an already serious situation in the Highlands was set to get worse;
• it was important therefore that the Council continued to articulate and consider further the impact on the individuals within communities in Highland over the next few years and for Members and officials to consider the actions that could be taken in mitigation;
• that in terms of getting people back into work welfare reform had not been designed for an area such as the Highlands which suffered from low wages and had a relatively high proportion of part time workers and experienced greater seasonal fluctuations in unemployment than the rest of the country;
• a point in regard to whether there had been any impacts associated with
  the increase in burial and cremation charges on the
  population in Highlands; the Benefits and Welfare Manager confirmed information on this matter was being collated and would be reported to a future meeting of the Committee;
• that clarification be provided on the number of requests for direct payments to landlords refused by the DWP and the reasons for refusal; the Head of Housing advised that he would respond directly to Ms M Smith on this matter;
• the importance of staff contacting and visiting people on universal credit to provide support as soon as they moved into rent arrears; and
• a request that information on the timescales for the UK Government implementing its policy changes to the current sanctions system be circulated to Members once officers received this information.

The Committee:-

i. NOTED the proposed changes to Child and Working Tax Credits scheduled to be implemented from April 2016;

ii. AGREED the impact that Universal Credit was having on Council rent arrears and the mitigating actions Community Services was implementing to temporary accommodation provision continue to be monitored;

iii. NOTED the policy changes the UK Government were introducing to the current benefit sanction system and the impact of sanctions on JSA claimants in the Highlands during 2014/15;

iv. NOTED the changes to debt relief and the reduced costs arising from The Bankruptcy and Debt Advice (Scotland) Act plus the inclusion of mandatory money advice for those seeking relief;

v. AGREED to support the positive outcomes arising from the Scottish Legal Aid Board funded projects and the ongoing project funded by the Big Lottery;

vi. NOTED the management information and budgetary position provided in the appendices to the report;

vii. NOTED that a briefing note on working tax credits would be circulated to Members following the Chancellor of the Exchequer’s Autumn Statement;

viii. AGREED that information on any impacts associated with the increase in burial and cremation charges on the
population in Highlands be reported to a future meeting of the Committee; and

ix. AGREED that information on the timescales for the UK Government implementing its policy changes to the current sanctions system be circulated to Members once officers received this information.

16. European Social Fund Priority 2 – Promoting Social Inclusion, Combating Poverty and any Discrimination
Maoin Sòisealta na h-Eòrpa: Eadar-theachd a thaobh Bochdainn agus In-ghabhail Sòisealta

Declarations of Interest - Mrs D Mackay declared a non-financial interest in as a Director of East Sutherland Citizen’s Advice Bureau, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interest did not preclude her from taking part in the discussion.

Mr A Christie declared a financial interest in this item as General Manager of Inverness, Badenoch and Strathspey Citizens Advice Bureau and left the Chamber for the item.

There had been circulated Joint Report No RES/107/15 dated 16 November 2015 by the Head of Policy and Reform and the Head of Revenues and Business Support which asked Members to note the approval of the Strategic Intervention for Poverty and Social Inclusion. The report outlined the operations approved as part of the Intervention and the next steps required in the process including the identification of match funding.

During discussion, Members raised the following points:-

• that in regard to the projects detailed in Appendix 1 to the report which were currently funded through the Welfare Fund into 2016, that consideration be given to additional funding being allocated to the Fund in the next financial year to cover any funding gaps and to ensure these important projects continued over the transitional period;
• the opportunities to secure match funding from the Council’s community planning partners and the action that could be pursued in this regard;
• it was reported that the CAB projects detailed in the report had delivered significant benefits for client groups within communities and that the interim evaluations of these projects had been good;
• concern that the eligibility criteria which was applied to European funding could be more restrictive in terms of the client groups that could benefit from that funding and the need to ensure that flexibility was retained within projects to fit the needs of people in the Highlands rather than the funding criteria;
• information was sought on the safety checks in place to ensure the ESF intervention was not used to mitigate against any problems being created by UK Government policy given that this would breach EU funding rules;
• that clarification be provided on the availability of potential additional sources of funding required to meet the balance of £173,105 in the match funding required in respect of Intervention and in regard to whether these sources would be available for further years so that it was not necessary to commit the full remaining balance of the Welfare Fund; and
• concern at the delays in the Council being able to bid and access EU funding through the Scottish Government and it was noted that the Leader in conjunction with the Leader of Comhairle nan Eilean Siar were in contact with the relevant Minister on this issue.

The Committee:-

i. NOTED the update on the Strategic Intervention application and the approval from the Scottish Government for the proposed approach in Highland;

ii. NOTED the financial requirements in relation to this ESF strand and the match funding required;

iii. AGREED to ring-fence the remaining Welfare Fund of £649,000 to be used in principle as match funding for the ESF Poverty and Social Inclusion Intervention;

iv. AGREED to report back on the potential for funding to be allocated to the Welfare Fund in the next financial year.

17. Finance Service – Quarterly Performance Report 2015/16
Seirbheis an Ionmhais – Aithisg Dèanadais Ràitheil 2015/16

Declaration of Interest - Mr A Christie declared a non-financial interest in this item, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There had been circulated Report No RES/108/15 dated 13 November 2015 by the Director of Finance which provided a summary of key and statutory performance indicators for the Finance Service as at 30 September 2015.

During discussion, Members made the following comments:-

• in circumstances where Social Work needed to urgently place a child into childcare some small local providers were not being paid promptly for their services and clarity was sought on the invoice payment process in this regard;
• an explanation for the relatively low performance for payment of invoices for the Care and Learning Service was sought;
• where there was an underspend in a service’s budget, it was queried how much of that was due to the delay in the payment of invoices. However, it was explained that expenditure was allocated to the service budget at the point of placing a purchase order and not at the point of payment and therefore any saving made due to the delay in payment of invoices would be reflected corporately and not in the service budget; and
• the role of Business Support in the administrative process of Single Grant Applications (SGAs) should include checking that all requested documentation was received with the application before it was logged and distributed to Ward Managers or other relevant officials.

The Committee NOTED the statutory and key performance indicators and AGREED:-

i. the process of paying invoices for childcare be reviewed to ensure small local providers were being paid promptly for their services;

ii. investigations be made to ensure that Service underspends were not a result of late payment of invoices; and

iii. consideration be given to expanding the role of Business Support in the administrative process of Single Grant Applications (SGAs) to include checking that all requested documentation was received with the application.

18. Audit Scotland Benefits Administration – Performance Audit Annual Update 2014/15
Fios Bliadhnail Sgrùdadh Buaidh nan Sochairean 2014/15 (Sgrùdadh Alba)

There had been circulated Report No RES/109/15 dated 13 November 2015 by the Director of Finance in response to Audit Scotland’s Benefits Performance Audit Annual Update for 2014/15 which was based on the findings from 10 Councils across Scotland. A copy of the report was attached at Appendix 1.

During discussion, Members welcomed the improvements to the benefits administration process which were beneficial both for the Council and for the applicants. In relation to the administrative reduction of the Inverness Winter Fuel Payments Scheme, it was queried whether there would be a similar reduction in the amount the Inverness Common Good Fund paid to the Council for administrative charges.

The Committee:-

i. NOTED Audit Scotland’s Benefit Performance Annual Audit Update 2014/15;

ii. NOTED the ongoing improvements and developments in the delivery of benefits administration; and

iii. in view of the reduction of the administration of the Inverness Winter Fuel Payment Scheme, AGREED to respond to Mr R Laird, on whether there would be a corresponding reduction in charges from the Council in respect of the administering of the Inverness Common Good Fund.

19. Internal Audit Reports
Aithisgean In-sgrùdaidh

There had been circulated Report No RES/110/15 dated 11 November 2015 by the Director of Finance which informed Members as to the objectives and findings of seven Audit Reports presented to the Audit and Scrutiny Committee on 30 September 2015, and updated them on progress against each of the resulting Plans. The reports were:-

1. Online Payments
2. General Ledger
3. Non Domestic Rates – Billing and Collection
4. Council Tax – Billing and Collection
5. Treasury Management 
6. Housing Benefit Payments 2014/15 
7. Matters Arising from the Statement on Internal Control 2014/15

The Committee NOTED the findings of the Audit Reports and the actions being taken to implement the recommendations.

20. Changes to the Structure of delivering Hub Design, Build, Finance and
Maintain (DBFM) Projects
Atharrachaidhean do Structar lìbhrigidh phròiseactan Dealbhaidh,
Togail, Ionmhais agus Cumail Suas Co-ionaid

There had been circulated Report No RES/111/15 dated 16 November 2015 by the Director of Finance which outlined changes to the hub Design, Build, Finance and Maintain (DBFM) delivery model that were required to reinforce the classification of these projects as private under ESA10 rules. It was recommended that the Committee accept them and consent to the hub Shareholders Agreement and the Territory Partnering Agreement being amended to accommodate these changes. As part of this recommendation delegated authority was requested to be given to the Chief Executive, Director of Finance and Director of Care and Learning to resolve any unforeseen detailed issues that might arise during the implementation of these changes.

The Committee was also advised that these changes to the hub DBFM delivery model would be retrospectively applied to the Council’s Wick Campus DBFM project. These structural changes did not affect the costs, funding arrangements, contract terms and timetable for the Campus project.

During discussion, Members made the following comments:-

• the changes to the structure for delivering hub DBFM projects were required by the Scottish Government and, as the Council was not receiving any benefits as a result of these, funding to meet the costs of implementing the changes should be provided by the Scottish Government; and
• it would help public accountability to have a Council representative on the Board of Trustees for the Hub Community Foundation (HCF).

The Committee:-

i. NOTED the changes that were being made to the hub DBFM delivery model;

ii. AGREED to the implementation of these changes;

iii. AGREED to consent to the hub Shareholders Agreement and the territory partnering Agreement being amended to accommodate these changes;

iv. AGREED that delegated authority be granted to the Chief Executive, Director of Finance and Director of Care and Learning to resolve any unforeseen detailed issues which might arise during the implementation of these changes;

v. NOTED that these changes to the hub delivery model would be retrospectively applied to the Council’s Wick Campus project but that this did not affect the project costs, funding arrangements, contract terms or timetable for the project; and

vi. NOTED there might be a resource implication on the Council as SFT had yet to decide on the funding arrangements to meet the cost of changing the contract documents for specific projects including the Wick Campus project.

CORPORATE DEVELOPMENT SERVICE
SEIRBHEIS AN LEASACHAIDH CHORPORRA

21. Report on Customer Services Excellence Award
Aithisg Sàr-mhathais Sheirbheisean Luchd-ceannaich

There had been circulated Report No RES/112/15 dated 4 November 2015 by the Depute Chief Executive/Director of Corporate Development which detailed the continued achievement of the externally assessed Customer Service Excellence Award by the Council’s Customer Services team. Currently, this was the only externally evaluated standard supported and recognised by the UK Cabinet Office.

In discussion, Members commended the Customer Services team for their tremendous work despite facing uncertainty about their jobs in the last year.

The Committee NOTED the outcomes of the assessment and the on-going successful achievement of the Customer Service Excellence standard.

22. ICT Services Performance Report April to September 2015
Aithisg Coileanaidh Sheirbheisean TFC Giblean gu Sultain 2015

There had been circulated Report No RES/113/15 dated 3 November 2015 by the Depute Chief Executive/Director of Corporate Development which updated Members on the key achievements of the ICT Services Team, the delivery of services by the Council’s ICT providers principally Fujitsu Services and Vodafone for the period from April 2015 to September 2015.

During discussion, Members made the following comments:-

• it was queried whether the Category F Schools project would stop being categorised as Red now that the process of replacing curriculum devices had been started with a large scale deployment of Chrome Books to Kingussie High School;
• in relation to the Security Phase 2 project it was disappointing that the issue of independent access for all users had been unable to be resolved;
• concern was raised in relation to the ongoing issues relating to bandwidth capacity for the Wireless Guest Access project. In response it was confirmed that this service was now available in all Highland libraries except Grantown on Spey and capacity issues would be monitored;
• the technical issues with providing Wireless Guest Access in the library in Grantown on Spey was further reason to support amalgamating the library and the Town House; and
• it was asked whether the delay of the Confirmed Initial Order (CIO) for the transition to Scottish Wide Area Network (SWAN) had been ratified as expected. In response it was confirmed that the national programme had been delayed but assurances had been received from Capita that the Council’s transition, by September 2016, would not be delayed.

The Committee NOTED:-

i. the content of the report and the positive outcomes being delivered from the contracts with Fujitsu and Vodafone;

ii. that robust contract management and governance arrangements continued to be applied and pursued by the Council to the Fujitsu and Vodafone contracts; and

iii. the enhanced management information provided relating to ICT projects.

23. Project Management Governance Policy
Rianachd Pròiseict Chorporra

There had been circulated Report No RES/114/15 dated 6 November 2015 by the Depute Chief Executive/Director of Corporate Development which presented the Council’s new Project Management Governance Policy. It described the new proposed corporate approach to project management governance and provided assurance to Members that processes and controls were in place to ensure successful project delivery within the Council.

During discussion, Members made the following comments:-

• this was a long overdue policy and the clarity on the methodologies used to improve project management which it gave was welcomed;
• the policy was introduced due to concerns raised at the Audit and Scrutiny Committee relating to project management of a number of projects, particularly the concern that Ward Members when raising concerns on behalf of their communities were not being listened to. Therefore, assurance was sought, and provided, that the policy included capacity for Ward Members to raise concerns and that their concerns would be taken on board to avoid a repeat of previous experiences where projects had failed including instances where scrutiny at Committee was not effective due to a lack of information available to Members;
• the new process of having a lead officer who was accountable for a project should improve issues relating to communication which was key to building the confidence of communities and elected Members in the process;
• the policy did not refer strongly enough about the need for local communication from the early stages of a project and this concern should be addressed as the policy was implemented;
• it was felt that the policy did not address communication issues and drew more from the Scottish Government Construction Procurement Manual methodology and should draw more from PRINCE2 methodology, particularly the stakeholder management matrix;
• it was suggested that there should be Member representation on the Higher Project Management Boards, especially when selecting contractors. However, caution was expressed at Members becoming involved in operational issues, and for that reason, it was currently the Council’s policy not to have Member representation. It was suggested that a copy of the Procurement Policy be recirculated to Members for information; and
• using the example of the project to renew Primary Schools in Greater Fort William, the importance was stressed of reinforcing the links with the community and stakeholders throughout the process to ensure that that their concerns were addressed, their trust gained, and their aspirations were met.

The Committee AGREED:-

i. to the introduction of the Project Management Governance Policy;

ii. to include the Council’s Procurement Policy as an item on the agenda for the next meeting; and

iii. that comments raised in relation to communications and stakeholder management, particularly in regard to ensuring that feedback from Ward Members was taken on board, be reflected in the guidance and training documentation that would be developed in support of implementation of the policy.

24. Unified Communications Project
Conaltraidhean Aonaichte

There had been circulated Report No RES/115/15 dated 27 October 2015 by the Depute Chief Executive/Director of Corporate Development which provided an update on the Unified Communications Project. The project aimed to deliver communication technologies to enable effective ways of collaboration without the need to travel. An external review of the Pilot recommended that the technical approach should be changed. The redesign of the project would be concluded by the end of November with an aim of finalising any procurement by Summer 2016. Project completion was targeted for early 2018. Since the last report to Committee, the sponsorship of the project had changed from the Head of Digital Transformation to the Corporate Improvement Programme Manager.

During a summary of the report, the Corporate Improvement Programme Manager suggested holding a workshop aimed at gathering the views of Members in the design and use of video conferencing, webcasting and associated services so the project could deliver against its design principles.

In discussion, Members supported the purpose and evaluation of the Microsoft Lync pilot despite being unsuccessful and delaying the deployment of a Unified Communications solution, which was vitally important to overcome the geography of the Highlands.

The Committee NOTED the:-

i. update on the Unified Communications Project to date;

ii. current Unified Communication Project budget; and

iii. position with regard to indicative timescales/next steps.

The Committee AGREED a workshop be held to gather the views of Members in the design and use of video conferencing, webcasting and associated services.

25. Corporate Development – Sickness Absence Statutory Performance Indicator, Quarterly Performance Report
Comharran Coileanaidh Reachdail Ràitheil an Leasachaidh Chorporra

There had been circulated Report No RES/116/15 dated 14 November 2015 by the Depute Chief Executive/Director of Corporate Development which provided quarterly details of the Sickness Absence Statutory Performance Indicators for Quarter 2 of 2015/16.

The Committee NOTED the performance in relation to sickness absence.

26. Occupational Health, Safety and Wellbeing Annual Report
Aithisg Bhliadhnail Slàinte agus Sàbhailteachd

There had been circulated Report No RES/117/15 dated 16 November 2015 by the Depute Chief Executive/Director of Corporate Development which presented the Council’s occupational health, safety and wellbeing (OHSW) performance, achievements and progress in 2014/15 and presented the plan for 2016.

In discussion, Members drew attention to the significant increases in the trends for major injuries and working days lost and queried whether the improved engagement in health and safety by services was changing working practice.

The Committee NOTED the content of the report and APPROVED the OHSW plan for 2016.