Independent review
Completed
Medway Council: External assurance review
External assurance review of Medway Council led by the Chartered Institute of Public Finance and Accountancy (CIPFA) undertaken in September 2024.
Government Response
MHCLG decides to grant Medway Council Exceptional Financial Support, issuing a capitalisation direction under sections 16(2)(b) and 20 of the Local Government Act 2003 approving up to £20.239m for 2024-25. No statutory Best Value intervention is imposed; the council does not appear on MHCLG's intervention list.
Recommendations
Recommendation 1
Review the preventative and cost reduction measures the council is taking to contain or limit the impact of these drivers of financial fragility.
Recommendation 2
The council acts to limit spending to within the approved budget and, if this proves unfeasible, undertakes a further review of Earmarked Reserves to fund any shortfall and preserve the General Fund Balance at £10 million.
Recommendation 3
Identify realistic level of EFS required in combination with radical plans to curb spending and maximise funding.
Recommendation 4
Ensure Kyndi finalises plans for approval by the Kyndi Shareholder Board.
Recommendation 5
Ensure execution of overarching Service Agreement and terms for the services for which agreement have been reached.
Recommendation 6
Execute interim agreement and then ensure sufficient focus and capacity to complete negotiations and execute terms for services where negotiations are yet to commence in a timely manner.
Recommendation 7
That the council develop efficiency measures associated with key One Medway Council Plan priorities and sub-priorities.
Recommendation 8
Medway should set out clear plans for the changes required in adult social care and waste management services to enable progress to be monitored
Recommendation 9
Internal Audit should be invited to review compliance with the revised procurement arrangements and the suitability of the KPIs being developed for key contracts.
No recommendations with this response.