Progress – but much still to be done
LEADER’S UPDATE ON COUNCIL FINANCES
CITY council leader David Mellen has been quizzed over the need for “forensic analysis” of Nottingham City Council’s companies and finances.
Councillor Mellen, outlined the work that has been done, and that which is yet to be done, amid continued scrutiny from a Governmentappointed Improvement and Assurances Board.
At a full council meeting on Monday, he said the council recognised “the seriousness of the financial governance and operational challenges we face”, but emphasised that if the executive was to live up to the expectations of the people of Nottingham, it must rethink its approach.
“Over the course of the last year the council has undertaken a significant amount of work to deliver against the first set of milestones and has made strong foundations for further improvement,” he said.
He said achievements included the implementation of a refreshed strategic council plan, a new constitution, a review and realignment of portfolios, officer restructuring and the appointment of new corporate directors.
But there was still much work to be done. He added that, during discussions with the board, there were “instances where further items need to be added to the plan, such as including additional work on the council’s risk management policy and strengthening financial management training”.
Councillor Andrew Rule, for the Conservatives, asked when forensic analysis would be carried out into the running of the council’s companies – after unlawful payments totalling £15m were uncovered.
Councillor Rule said: “The leader of the council will recall that, at the extraordinary council meeting last week, I called for a forensic analysis into the transactions between the council-owned companies and the council to ensure that there had been no misapplication of capital spend to supplement revenue spend, together with providing reassurance that value for money has been achieved. Can he confirm when this will be carried out?”
Councillor Mellen replied: “The annual governance statement confirms that the council’s affairs are in good order and particular focus will be given in the current year to ensure that transactions are in line with legal and requirements of council policies.
“The council had its meeting on January 4 which agreed specifically further detailed analysis into both transactions between Nottingham City Council and Nottingham City Homes, and transactions within the Nottingham City Homes group, is undertaken, and this work is expected to be completed by the end of next month.”