Agenda item

In accordance with the Committee’s decision on 2nd February 2021, an independent options appraisal had been undertaken to identify a future model for providing the Council’s financial leadership.  This work had been conducted by PJH Management Consulting Limited and assessed the relative merits of:

          Option 1: recruit a permanent employee to the post of s151 Officer;

          Option 2: enter into an agreement with Surrey County Council (SCC) whereby SCC           will provide TDC with a comprehensive finance function comprising the s151 role and leadership and management of a full range of financial functions; and

          Option 3: share a finance function with a local district or borough council.

Option 3 was not considered viable in the short term as no other council in Surrey or Kent had expressed an interest in developing a sharing proposal. 

Phil Hall, of PJH Management Consulting Limited, attended the meeting to present his report which identified Option 2 as the favoured solution, supported by a business case. The report was accompanied by SCC’s proposition document.

The report concluded that the provision by SCC of a comprehensive finance function is deliverable and will enable TDC to benefit from the scale, relevant experience and range of skills of the SCC finance team, offering continuity for TDC’s financial improvement plan and an acceleration of the transformation of its finance function. It was further recommended that:

• external specialist financial advice be procured to conduct an annual review of SCC’s service and for exceptional occasions when the s151 Officer has a conflict of interests; and

• a review group be established to monitor progress against the transformation plan.

Phil Hall summarised the case for option 2 and advised that, subject to giving due notice, the Council could withdraw from the agreement with SCC and revert to an in-house service model.

Regarding the procurement of external advice referred to above, Councillor Sayer proposed that this be subject to consultation with Group Leaders, as per the recommendation for entering into the agreement with SCC.

            R E S O L V E D – that:

A.    the Committee’s preferred option is for the Council to enter into an agreement with Surrey County Council in which it provides TDC with a comprehensive finance function comprising the s151 role and leadership and management of a full range of financial functions, and supports TDC through the Tandridge Finance Transformation Plan;

B.    the Acting Chief Executive, following consultation with the Group Leaders and Chair the Committee, be authorised to approve the agreement with Surrey County Council;

C.   the Acting Chief Executive, following consultation with the Group Leaders and Chair the Committee, be authorised to procure an arrangement whereby the Council can draw upon external specialist financial advice (for an annual review of the SCC service and for the exceptional occasions when the s151 Officer has a conflict of interests); and

D.   a small Member / officer working group be established to monitor progress with the Tandridge Finance Transformation Plan.

Note: In accordance with Standing Order 25(3), Councillor Pursehouse wished it recorded that he voted against A to D above.