Decision details

To approve revised processes and procedures for the approval of capital schemes.

Matter for Decision

 

Mid-year Financial Review (MFR) 2014 and Budget Setting Report (BSR) 2015 highlighted the need to improve existing capital plan processes.

 

The report built on Phase 1 of the review of the capital plan. The report proposed detailed changes to the process whereby new projects come forward onto the Capital Plan and existing projects move from the Projects Under Development (PUD) list for approval and inclusion on the General Fund capital plan.

 

Decision of Executive Councillor for Finance and Resources

 

The Executive Councillor:

 

     i.        Approved the establishment of a Capital Programme Board (CPB) officer group, to be convened by the Head of Finance (HoF) with delegated authority to approve project appraisals (full business case) for capital projects up to £300k, subject to changes to the Council’s existing delegations (see Appendix A of the Officer’s Report)

 

    ii.        Approved the changes identified in Appendices B and C of the Officer’s report for ‘other’ capital approval processes.

 

   iii.        Agreed to recommend Council to approve a Capital Feasibility Fund of £35,600 in 2015/16, funded from a ‘top-sliced’ 5% of net capital funding available, with delegated authority for allocation of these funds given to the CPB in conjunction with the s151 officer.

 

iv.        Approved the appointment of a capital accountant/programme manager, funded from existing resources, to implement the proposed changes detailed in this report.

 

  v.        Agreed to recommend Council to approve placing all current projects on the General Fund capital plan that do not produce a full business case by 30 November 2015 on to the PUD list, i.e. remove approved funding and require these projects to come forward for funding once a full business case has been approved.

 

vi.        Agreed to ask Officers, in consultation with the Executive Councillor Chair and Spokes, to develop a process to ensure there is transparency and opportunity for Member oversight of projects between £75,000 and £300,000. 

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Head of Finance regarding the mid-year Financial Review.

 

In response to Members’ questions the Head of Finance confirmed that Appendix A – Amendments to Financial Delegations, contained an omission. Corrected text to read as follows:

 

For projects where the estimated total cost is over £15,000 and up to £300,000: a full business case report must be completed and referred to the Capital Programme Board for approval, provided that the relevant Ward Councillors have been consulted, where appropriate.

 

For projects where the estimated cost is over £300,000: a full business case report must be completed and referred to the Capital Programme Board for consideration and then the relevant scrutiny committee and referral to the relevant Executive Councillor for approval, provided that the relevant Ward Councillors have been consulted, where appropriate.

 

The Committee expressed concerns that public consultation might begin before any decision had been made about a project. This could raise public expectations. The Head of Finance confirmed that public expectations would need to be managed. However, early consultation was regarded as the best way to shape the project.

 

The Committee questioned their opportunities to scrutinise projects. The Chief Executive stated that the report was seeking to achieve a balance between opportunities for scrutiny and efficient delegations that made the decision making process manageable.

 

An additional recommendation requesting that Officers develop a consultation process for member oversight of smaller projects was suggested. Wording as follows:

 

Agreed to ask Officers, in consultation with the Executive Councillor Chair and Spokes, to develop a process to ensure there is transparency and opportunity for Member oversight of projects between £75,000 and £300,000. 

 

The Committee resolved unanimously to endorse the amended recommendations.

 

The Executive Councillor approved the recommendations.