Issue - meetings

Steve Robbins (Finance Projects Delivery Lead) and Liz Firmstone (Service Manager – Transformation) presented the report to the committee, starting with the background and then the findings.

Liz Firmstone confirmed the review included looking at the way the capital programme was managed.  The committee noted that there had been an increase in borrowing costs and an increase in material costs.  There were a number of challenges and concerns about slippage.  This project was concerned with what officers could do internally to ensure the best value for money for the council.

The project started in 2021 and areas for improvement identified.  In 2022 work started that included stakeholder engagement with100 individual across Warwickshire County Council and Councillors.  The project also reviewed best practice across other authorities and recommendations from the national audit office, identifying strengths and areas for improvements.

Steve Robbins confirmed that the majority of projects were delivered on time and had very low risks.  The committee noted that there are still areas to improve and a need for a more accurate costings at the project point of approval. In relation to new investigation funding, it was confirmed that more investigation would be needed for greater certainty that the project would be delivered within budget

The committee received an update on financial systems including budgeting and financial software.  There also needs to be a greater understanding of what stakeholders need to get the best out of each project.  New key business measures have been introduced. 

It was confirmed that there will be an annual report to key stakeholders which will include information in relation to the benefits accrued

The Chair thanked the officers for bringing the report to the committee adding that it was an innovative report.

Councillor Robert Tromans echoed the comments made by the Chair and added that he was please to see that there is more rigor around capital projects.  Councillor Tromans added that there are some things out of our control and asked how cost slippage is managed?  Liz Firmstone confirmed that very often government grants are match funded so the risk is to the council and not the governments.  In addition, this risk is considered and an appropriate level of contingency is put in place.  The committee noted that part of the culture change is being very up front about the potential risks, not all of which will materialise but there will be a contingency budget in place and it is there to manage risk. 

Councillor Peter Butlin, Portfolio Holder for Finance and Property added that over the last 12 months, inflation has driven costs u and that the more officers know before a project is started, the better.  Councillor Butlin continued, adding that many issues that have arisen in the past are things that officers should have known before the project started.   This new project will be embedded into the service and how it works.  It is a rolling project and will not eradicate slippage but it will improve it.

The Chair finished by  ...  view the full minutes text for item 7