Decision details

To consider the 2023/24 financial and performance position for the services reporting into the Corporate Services Policy Advisory Committee (CS PAC) as at 31^st December 2023 (Quarter 3). The primary focus is on:

• The 2023/24 Revenue and Capital budgets; and
• The 2023/24 Key Performance Indicators (KPIs) that relate to the delivery of the Strategic Plan 2019-2045.
• Corporate Risk Register

That

1.  The Revenue position as at the end of Quarter 3 for 2023/24, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted;

2.  The Capital position at the end of Quarter 3 for 2023/24 be noted;

3.  The Performance position as at Quarter 3 for 2023/24, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted;

4.  The UK Shared Prosperity Fund update, attached at Appendix 3 to the report, be noted;

5.  The Risk Update, attached at Appendix 4 to the report, be noted;

6.  The uncollectable Business Rates (NNDR) listed at Appendix 5 to the report be approved for write-off, and;

7.  The new contract approval levels shown at Appendix 6 to the report be approved. These changes will then need approval by Democracy and General Purposes Committee before final approval by Council.

The Medium-Term Financial Strategy for 2023/24 to 2027/28 - including the budget for 2023/24 - was approved by full Council on 22^nd February 2023. The report updates the Committee on how its services have performed over the last quarter with regard to revenue and capital expenditure against approved budgets.  

The report also includes an update to the Committee on progress against its Key Performance Indicators (KPIs), and an updated covering corporate risks.

REVENUE AND CAPITAL BUDGETS   

The tables below summarise the overall position as at 31^st December 2023. Further details and an explanation of the significant variances are shown in Appendix 1 to the report.  

Revenue Budget

Capital Budget

PROCUREMENT LEVELS   

Contract Approval Level - As part of the work of regularly reviewing procurement processes to ensure they remain fit for purpose and support the Council’s priorities two new policies and and one statement were discussed on 14th December 2022 at CS PAC and subsequently approved by Cabinet. These have subsequently been implemented as follows:   

·  Sustainable Procurement Policy

·  Social Value Policy

·  Modern Slavery Statement   

As part of the continual review of procurement, and the underlying policies and processes which underpin the delivery of the service, it is proposed to update of the financial approval levels.  This is to reflect a consistent approach across the procurement partnership, and to reflect the impact of inflation since the levels were originally set in 2018/19.   

New approval levels are being recommended to streamline the procurement process for officers and the procurement team. Appendix 6 to the report details the current and future approval levels.  The changes can be summarised as :

·  increasing the approval level at the high value from £75k to £100k

·  on all levels reducing the seniority of the approval

·  clarify the process at the lower end at under £10k

·  this process also encourages the use of e-tendering to maximise competitiveness of any procurement requests.   

During financial year 2022-23 of the 27 MBC procurements, 15 were over the current MBC ITT threshold of £75k. Of these 15, 13 were valued at over £100k – which is the proposed new threshold for a mandatory ITT process.    

The proposed new procurement thresholds reflect more accurately the operational procurement being undertaken at MBC. These new thresholds will be supported by a new digital approvals process, which will allow us greater oversight and transparency of all procurement over £5,000 within the organisation. This will provide us with the following benefits:   

·  Efficiency for procuring officers

·  Efficiency for the procurement team

·  Greater oversight and scrutiny of spend

·  Aligned procurement processes and procedures across the procurement partnership.   

These changes support procurement best practice and allow a consistent approach across the Procurement Partnership between Tunbridge Wells and Maidstone Borough Council. Note that the new approval levels will require a change to the Council’s constitution and will therefore now be considered by the Democracy and General Purposes Committee and by Council.

To not approve the write off of the uncollectable Business Rates and the new contract approval levels.  However, these were not recommended for the reasons set out above and because the business rates to be written off would be too difficult or impossible to recover.