1. 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

2. Commitment to residents
Serving Hampshire Strategic Plan
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

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

4. 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)

5. 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

6. 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

7. 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)

8. 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)

9. 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?

10. 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

11. 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?

12. 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

13. 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

14. 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

15. Questions