Agenda item

To consider the report, together with Gwynedd Council’s responses to the

recommendations

·         To accept the report

·         To approve Gwynedd Council's response to the recommendations of Audit Wales

The Head of Finance Department submitted a report outlining the Gwynedd Council's responses from Audit Wales in relation to the Council's financial sustainability. Attention was drawn to four recommendations that were contained in the report.  Alan Hughes , Lead Auditor from Wales Audit Office, was welcomed to present the findings.

It was noted that the Council had a good understanding of its financial position, although a number of financial challenges remained, including continuing to carry over savings that were yet to be realised, that caused unresolved financial pressures on services, and that identifying and delivering savings would be more challenging in future.

The Head of Finance referred to the responses, and asked the Committee to support the actions.

Thanks were expressed for the report

During the ensuing discussion, the following observations were made by members:

·         In recommendations 2 and 3 there was a need to consider the fact that these were not financial data requirements 

·         It was important for the Council to use background information

·         All financial decisions were based on data

·         Why was a 3 year forecast needed? The Government did not have a 3-year plan, and therefore why was the Council required to have one in place? It was accepted that forecasting was possible, but projections would not have a firm foundation

·         Note regarding 'evidence to demonstrate the utilisation of reserves
to improve and transform services, which may in turn support the financial
sustainability of the Council' - Audit Wales was asked to provide an example of a situation - need broader information

·         Were these general observations, or weaknesses within departments?

There was agreement with the observation that data was used to make investment decisions, but current data could also be used to divest where there might be a reduced demand or a need to do things differently. It was considered that £71m in reserves was a substantial sum that could contribute towards transformation programmes that would lead to sustainable services.

In response, the Head of Finance Department noted that the reserves contributed to new projects e.g. schools information technology strategy, climate management project post, Galw Gwynedd improvements, and departments were encouraged to submit plans and bids for funding.

In response to a question regarding departments submitting plans, and the need to ensure that the money went to the right places when in considering those plans, it was noted that many bids had been submitted and the Cabinet would discuss the bids in January.

In response to an observation about the three-year projections, the Auditor noted that there was value in forecasting, despite no funding sources having been agreed. It was suggested that although financial data was part of the current conversation, background information such as an increase in demand, complex cases or market prices could be examples that would enrich the conversation. It was noted that the performance management process was being modernised with the setting of measures and indicators, although unfortunately not all departments did this. He added that the Council's direction was promising, and that he was confident in the Council's ability to identify changes by using the context of situations - the Council would therefore be well placed.

In response to the observations, the Cabinet Member noted that all types of data should be considered and used in order to offer a better service to residents.

RESOLVED

·         To accept the report

·         To approve Gwynedd Council's response to the recommendations of Audit Wales