{meta} Agenda for Lead Member for Finance and Support Services Briefing on Thursday, 24 October 2019, 10.00 am

Agenda and decisions

Venue: The Boardroom, Salford Civic Centre, Chorley Road, Swinton. View directions

Contact: Claire Edwards 

Items
No. Item

1.

Apologies for absence.

2.

Declarations of interest.

3.

Decision Items (Part 1 - Open to the Public):

3a

Fleet Replacement: Capital Programme Virement. pdf icon PDF 65 KB

Decision:

Salford City Council - Record of Decision

 

I, Councillor Hinds, Lead Member for Finance & Support Services, in exercise of the powers contained within the Council Constitution, do hereby:

 

Approve the virement of £1.294m within the 2019/20 Place directorate capital programme to accelerate the Council’s fleet replacement programme.

 

The Reasons are capital resource of £1.294m was previously assigned against Regeneration for a leasehold acquisition. The acquisition did not complete and as a result is to be re-prioritised to accelerate and increase the Council’s fleet replacement programme that sits under Environment in 2019/20. 

 

Options considered and rejected were resource could be carried forward into 20/21 to finance other Place / Council capital financial commitments

 

Assessment of risk delay in decision will reduce the number of fleet vehicles that can be ordered in 2019/20

 

The source of funding is 2019/20 Place capital programme

 

Legal Advice obtained (Tony Hatton, Principal Solicitor) –

As set out in the Council’s Constitution, each directorate is allocated a budget amount as their share of the annual revenue budget approved by Council, and capital virements (movement of budgets between approved capital schemes) are permitted subject to the approvals being made by authorised persons as set out in section 7.4 of the Budget and Policy Framework Procedure Rules. 

 

For a virement of the amount requested, it would appear that section 7.4 (g) applies and the approval of lead member for financial and support services in consultation with the section 151 officer is required. Section 7.4 reads as follows:

 

“7.4 The person set out below shall be entitled to vire across budget heads or budget amounts as follows:

 

a) a Chief Officer may vire between budget heads under their control and within their directorates £150,000 in any financial year.

 

b) the Member(s) of the Cabinet for a relevant service area(s) may, with the approval of the relevant Lead Member, vire between budget heads within their control sums of £150,000 and over, up to £350,000 in any financial year.

 

c) the elected City Mayor may vire sums up to £100,000,000 between the budget amounts of different directorates in any financial year.

 

d) the Assistant Director Finance shall be responsible for authorising all virements from the central inflation and contingency provision to other service budgets.

 

e) any such virement must be notified to the Assistant Director Finance and virements of above £150,000 must be reported for information to the next meeting of the Overview and Scrutiny Board.

 

f) any virement above £ 100,000,000 will require the approval of full Council.

 

g) Virements within the capital programme of up to £2,000,000,are subject to the approval of the lead member for financial and support services in consultation with the S151 Officer.

 

Financial Advice obtained (Alex Archer)

Unsupported borrowing of £1.294m was identified as part of the 2019/20 capital programme for a scheme in City Centre Salford. As the intended scheme did not materialise, alternative uses for the funding were considered. The proposed virement within Place directorate reduces the requirement  ...  view the full decision text for item 3a

3b

Former Tenants' Arrears Write Off. pdf icon PDF 892 KB

Decision:

Salford City Council - Record of Decision

 

I, Councillor Hinds, Lead Member for Finance & Support Services, in exercise of the powers contained within the Council Constitution, do hereby:

 

Approve the debt write off of former tenants’ arrears to the value of £40,209.84.

 

The Reasons are – During the 2018/19 financial year, a number of former tenants’ arrears have become unrecoverable and Pendleton Together have advised that following their internal debt recovery process, it would be advisable to write off £40,209.84 relating to 81 cases.  This level of write off represents 0.8% of the rental income for 2018/19.

 

Options considered and rejected were– not relevant.  Throughout the year, a number of the former tenants’ arrears become irrecoverable and it is appropriate to write these off in accordance with Financial Regulations. 

 

Assessment of risk – High.  Key financial risks resulting from the updated HRA business plan are identified in this report

 

The source of funding is – HRA Bad Debt Provision

 

Financial Advice obtained – this report concerns key aspects of the Council’s revenue finances

and has been produced by the Finance division.

 

Procurement Advice obtained – not relevant.

 

The following documents have been used to assist the decision process:

  • Pendleton Together Account Statements
  • HRA Business Plan

 

Contact Officer: Paul Hutchings, Strategic Finance Manager          Tel No: 0161 793 2574

 

 

 

This decision is not subject to consideration by another Lead Member.

 

The appropriate scrutiny panel to call-in the decision is the Overview & Scrutiny Board.

 

 

 

 

 

Signed: Councillor Hinds                                            Dated: 24th October 2019 

Lead Member for Finance & Support Services

 

 

 

FOR DEMOCRATIC SERVICES USE ONLY

 

This decision was published on 24th October 2019.

 

This decision will come in force at 4.00 p.m. on 31st October 2019, unless it is called-in, in accordance with the Decision Making Process Rules.

 

3c

Sundry Debtor Write Off - Quarter 2. pdf icon PDF 60 KB

Decision:

Salford City Council - Record of Decision

 

I, Councillor Hinds, Lead Member for Finance and Support Services, in exercise of the powers contained within the Council Constitution, do hereby:

 

Approve the write off of Sundry Debt to the value of £27,423.02. 

 

The Reasons are that these sundry debts, after exhaustive attempts to collect, are found to be irrecoverable for a variety of reasons, e.g. liquidation, absconded, no longer trading, bankrupt, deceased, uneconomical to collect, and irrecoverable after court action etc .

 

Options considered and rejected were - Not relevant due to the nature (age and value) of these accounts. The majority of accounts relate to those proven uneconomical to collect, irrecoverable after court action, bankruptcy / liquidation.

 

Assessment of Risk - Low

The source of funding is the Council’s bad debt provision.

 

Legal Advice obtained – legal advice has been obtained on each of the individual cases where court action has been taken.

 

Financial Advice obtained - Chris Hesketh

There is adequate provision for the sundry debt write offs from the councils provision for bad debt. The provision is reviewed on an annual basis to ensure that the provision is set at an appropriate level.

 

Procurement Advice obtained – Not applicable.

 

The following documents have been used to assist the decision process:

The relevant documents contain exempt or confidential information and are not available for public inspection. The background documents would provide the identity of individuals or companies involved in the write off.

Contact Officer: Chris Hesketh, Head of Financial Management                 Tel No. 0161 793 2668

 

This decision is not subject to consideration by another Lead Member.

 

The appropriate scrutiny panel to call-in the decision is the   Overview and Scrutiny Board.

 

 

 

 

 

Signed: Councillor Hinds                                            Dated: 24th October 2019

Lead Member for Finance & Support Services

 

 

FOR DEMOCRATIC SERVICES USE ONLY

 

This decision was published on 24th October 2019.

 

This decision will come in force at 4.00 p.m. on 31st October 2019, unless it is called-in, in accordance with the Decision Making Process Rules.

 

 

 

3d

Write Off of Irrecoverable Debt - Council Tax, Business Rates and Housing Benefit Overpayment. pdf icon PDF 63 KB

Decision:

Salford City Council - Record of Decision

 

I, Councillor Hinds, Lead Member for Finance and Support Services, in exercise of the powers contained within the Council Constitution, do hereby approve the proposed write-off of irrecoverable debts as outlined below:

 

Council Tax £320,422.49

Housing Benefit Overpayments £42,963.55

Business Rates £1,545,690.55

                                            

The Reasons are: 

The liabilities mentioned in the report for write-off are irrecoverable.

 

Options considered and rejected were:

To leave outstanding amounts on the accounts for a further period.

 

Assessment of Risk:

The write-off irrecoverable amounts is an essential part of account administration.

 

The source of funding is:

The bad debt provision

 

Legal Advice obtained: N/A

 

Financial Advice obtained:

The bad debt provision has been confirmed.

 

The following documents have been used to assist the decision process.

Some of the relevant documents contain exempt or confidential information and are not available for public inspection. Other documents which are in the public domain are the relevant write-off strategies

 

Contact Officer: Jane Betts- Service Manager –Business Rates     Tel. 0161 793 2710 

 

 

This decision is not subject to consideration by another Lead Member.

 

The appropriate Scrutiny Panel to call-in the decision is the Overview and Scrutiny Board.

 

 

 

 

 

Signed: Councillor Hinds                                            Date: 24th October 2019

Lead Member for Finance and Support Services

 

 

FOR COMMITTEE SERVICES USE ONLY

 

This decision was published on 24th October 2019.

 

This decision will come in force at 4.00pm on 31st October 2019, unless it is called-in, in accordance with the Decision Making Process Rules.

 

 

4.

Exclusion of the Public.

5.

Decision Items (Part 2 - Closed to the Public): No Items.

6.

Any other business.