Supporting local ambitions and building a sustainable legacy Processes to follow, the questions to ask, and the need for a positive relationship between officers and Members Carolyn Williamson Deputy Chief Executive & Director of Corporate Resources Hampshire County Council Vice President CIPFA

Commitment to residents Serving Hampshire Strategic Plan 2017-2021 Hampshire maintains strong and sustainable economic growth and prosperity People in Hampshire live safe, healthy and independent lives People in Hampshire enjoy a rich and diverse environment People in Hampshire enjoy being part of strong, inclusive communities

Decision process for the strategic plan Agreed at Cabinet Agreed at Full Council Published as the County Council’s strategic plan

Metrics to measure performance A set of objectives and performance targets which track customer experience, that: Are set within a performance management framework Work as part of a performance cycle Plan Develop Perform Review Include a combination of statutory (e.g. safeguarding) and locally determined targets (e.g. primary school meal uptake)

Performance reporting Inputs Reports and scrutiny Quarterly (Q1, 2, 3 and 4) RAG status on measures derived from departmental management information Commentary on achievements and risks from departments Performance update for Corporate Management Team Biannually (Q2 and 4) As above, along with results from external assessments Cabinet performance report Policy & Resources Scrutiny Annually (Q4) Full Council performance report

Medium Term Financial Strategy (MTFS) Financial resilience Strategic aims Performance standards Over time inform Financial position Commitment to residents informed by financial climate Medium Term Financial Strategy (MTFS) Including detail, risk assessments and impacts of capital, revenue, efficiencies and investments Annual Budget Report Annual budget and precept for the year ahead

Financial decision making Decision / action Delivered by Agree budgetary framework Cabinet Full Council Support S151 in presenting the Medium Term Financial Strategy (MTFS) Corporate Management Team Agree MTFS Policy and Resources Scrutiny Agree annual budget Executive Members (for budget areas)

Financial resilience reporting Reports cover… Business as Usual Budget monitoring Risks and issues Position on Departmental ‘cost of change’ Delivery of savings and investments Potential draw on contingencies and/or reserves …and are taken to… Departmental Management Teams Corporate Management Team Monthly Cabinet Quarterly Full Council (as part of the year end report) Annually Note: No Scrutiny role (not a policy matter)

Risks and opportunities Has a robust business case been produced (if appropriate)? Are impact assessments complete? Is the objective clear, and does it link to the commitment to residents and performance measures? Are the financial implications robust, avoiding optimism bias, and have they been independently signed off by the CFO or their representative? Are risks clearly highlighted with appropriate mitigation? Carefully record the rationale for the final decision, whether in line with the recommendations or not What is the recommendation, and why?

Role of the Chief Financial Officer The Chief Financial Officer in a public service organisation… …is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest. …must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s financial strategy. …must lead the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively. To deliver these responsibilities the Chief Financial Officer… …must lead and direct a finance function that is resourced to be fit for purpose. …must be professionally qualified and suitably experienced. Source : CIPFA – The role of the CFO

Questions to ask Are the risks and mitigations clearly identified? What were the scrutiny comments? How do we know this is what the public want from us? What does the Section 25 report produced alongside the annual budget report say? Is our Medium Term Financial Strategy realistic? What is our performance compared to public expectations and key comparator organisations? Are you sure this is deliverable?

Relationships between Councillors and Officers Mutual respect and trust Clear responsibilities and accountabilities ‘Line of sight’ for Councillors on performance and financial resilience Transparency of proposals and the reasons for decisions made Ability to positively challenge Ask appropriate and searching questions Expect and attend briefings Officers

Issues, risks and opportunities Case Study 1: Farnborough Airshow Objective To build permanent conference facilities for the Farnborough International Airshow Issues, risks and opportunities Significant economic development factors Business case had a high degree of risk and assumptions around future income streams Needed to be finished for 2018 Air Show Effectively no security for loans Actions £30m funding sought, including loans of £4.5m from Hampshire County Council and Rushmoor BC plus funding from Local Economic Partnership and the banking sector All risks and concerns highlighted to Members Decision taken in light of the risks, weighing up the financial risk against the wider benefits Outcome Facilities were opened on time and are operating successfully Case Study 1: Farnborough Airshow

Case Study 2: County Council Transformation Programme 2018 Objective Hampshire County Council to deliver savings of £140m by 2019/20 (two year target) Issues, risks and opportunities Significant public reaction to reductions in some universal services (household waste recycling centre’s, school crossing patrols, bus subsidies and community transport) Actions Proposals were developed and agreed by County Council in October 2017 Following feedback, Officers were asked to look at alternative options and ideas Changes were made as part of the 2018/19 budget setting process to mitigate the impact of £5.3m of savings Outcome Savings options were agreed, alongside a policy decision to utilise part of the additional 1% council tax flexibility Changes were reported transparently and openly, and were justified as part of the decision making process The County Council is on target to deliver £140m of savings by 2019/20 Case Study 2: County Council Transformation Programme 2018

Questions