Independent review
Completed
Eastbourne Borough Council: External assurance review, 2024-25
External assurance review of Eastbourne Borough Council led by the Chartered Institute of Public Finance and Accountancy (CIPFA) undertaken in August 2024.
Government Response
MHCLG decides to grant Eastbourne Borough Council Exceptional Financial Support, issuing a capitalisation direction under sections 16(2)(b) and 20 of the Local Government Act 2003 approving up to £3m for 2024-25. No statutory Best Value intervention is imposed; the council does not appear on MHCLG's intervention list.
Recommendations
Recommendation 1
That a spreadsheet is further developed as a single source of information on the expected actions and deficit mitigations and the single plan against which progress in delivering expected savings, additional income, asset sales and reduction in borrowing is monitored and scrutinised by Members.
Recommendation 2
That the direction and monitoring of savings and improvement activity is consolidated under the control of a single Finance led Board.
Recommendation 3a
That a new Finance led Board develop and apply a robust process for the identification of realistic, achievable and sustainable savings / service improvements.
Recommendation 3b
That the new savings and service improvement governance arrangements include comprehensive risk and impact assessments, scenario and profile planning.
Recommendation 4
That a clear diversification strategy is developed to ensure a coherent and integrated approach to asset disposals, investments and alternative service delivery options.
Recommendation 5
We recommend that in due course the outcome of the beachfront consultation is built upon and widened out into a strategy for all aspects of Eastbourne's role in promoting tourism (not just its asset portfolio) and diversifying the local economy and its own income stream.
Recommendation 6
That a review is undertaken of the risk management arrangements and a new risk management strategy, to ensure a more robust process that highlights actions and accountabilities and therefore provides a source of continual assurance.
Recommendation 7
That the Audit and Governance Committee consider the Strategic Risk Register and key operational and project risk registers at every meeting by inviting the responsible members of Corporate Management Team (CMT) (other risk owners) to present 'their risks' to demonstrate progress in the implementation of mitigating actions.
Recommendation 8
That a review of the Internal Audit function be undertaken to cover audit planning, coverage and reporting.
Recommendation 9
That the council establishes robust mechanisms for monitoring and evaluating the performance of the services post-transfer to ensure that the transition achieves the desired improved outcomes, especially for tenants.
Recommendation 10
That clear criteria for determining its decision-making in respect of each disposal and the proceeds it might bring in is established.
Recommendation 11
That arrangements are put in place to establish a more formal and granular profiling of the capital programme.
Recommendation 12
That the council monitors this key prudential indicator ratio to bring it down to the target 10%.
Recommendation 13a
That regular briefings are held with leading members, and the Leader of the Opposition, including directly from the council's treasury management advisors.
Recommendation 13b
That experience of other local authorities is utilised in presenting reports which meet the regulatory requirements, but which clearly bring Members' attention to the key movements, trends and implications.
Recommendation 14
It is recommended that the Committee reviews its terms of reference and associated workplan to receive wider governance assurances. This should extend to considering how the Committee interfaces with Cabinet and the Scrutiny Committee on a formal basis.
Recommendation 15
That the council consider adding at least another co-opted independent member to the Committee.
Recommendation 16a
That the Audit and Governance Committee prepare an annual report that is submitted to full council to demonstrate the work undertaken and the Committee's impact and influence.
Recommendation 16b
That the Audit and Governance Committee undertake an annual self-assessment of its effectiveness in line with CIPFA guidance and best practice.
Recommendation 17
That the Constitution is reviewed to ensure all aspects reflect how the council operates and delivers its services.
Recommendation 18
That consideration is given to better aligning Scrutiny Committee meetings with Cabinet, including potentially increasing the number of Scrutiny meetings to 'match' those of Cabinet.
Recommendation 19
That the respective Codes of Conduct for Officers and Members are reviewed to include specific reference to the Nolan Principles – Standards in Public Life.
Recommendation 20a
The significance of the Stability and Growth Programme should be referred to in the AGS and assurances provided that it is supported through effective governance that is continually monitored.
Recommendation 20b
That although the AGS is predominantly a retrospective report, it recognises the governance challenges in the forthcoming year, which are significant in Eastbourne's context.
Recommendation 21
That a review is undertaken of the annual governance review process to improve the rigour and evidence to support the preparation of the AGS.
Recommendation 22a
That senior management and Cabinet provide support and commitment to ensure the Budget and Spending review is robust and delivers its intended outcomes.
Recommendation 22b
That a revised financial management process is determined from the Budget and Spending review that provides sustainable focus and grip on the council's financial position.
Recommendation 23
That the planned review of charges and service levels to Lewes DC is completed and factored into the 2025/26 budget.
Recommendation 24
It is recommended that the council remains assured of the capacity and continuation of support from the third sector / friends groups.
Recommendation 25
That the council considers a more formal and structured approach to benchmarking and comparative analysis, particularly in the areas where their operational models and service delivery arrangements have changed.
Recommendation 26
That the business / service planning process is reviewed as part of the Budget and Spending Review process to ensure that strategic alignment.
Recommendation 27
That consideration is given to linking existing or new KPIs to the Corporate Plan themes.
Recommendation 28
That a fundamental review is undertaken of the procurement and contract management needs of the council to ensure there is sufficient strategic capacity and expertise to support the council's challenging change and transformation programme and to secure sustainable savings and efficiencies.
Recommendation 29
That a new procurement strategy is prepared that will meet the challenges of the council over the next few years.
No recommendations with this response.