Agenda item
Best Value Inspection - Overview and Scrutiny
Minutes:
The Committee received and noted a report that detailed references made to Overview and Scrutiny within the best value inspection report undertaken by PricewaterhouseCoopers LLP (PwC). A summary of the discussion on this report is set out below:
The Committee noted that on the 4th April 2014 the Secretary of State for Communities and Local Government (DCLG) had appointed PwC to undertake a best value inspection of the London Borough of Tower Hamlets pursuant to section 10 of the Local Government Act 1999 (as amended by the Local Audit and Accountability Act 2014). The appointment letter it was noted had indicated that the focus of the inspection would include:
1. The Authority’s payment of grants and connected decisions;
2. The transfer of property by the Authority to third parties;
3. Spending and the decisions of the Authority in relation to publicity; and
4. The Authority’s processes and practices for entering into contracts.
Whilst the Committee had not been the specific focus of the inspection, PwC’s report, it was noted, had made it clear that their work had regard to matters escalated through the Council’s own governance processes, including Overview and Scrutiny. This it was noted had included for example, Call-ins informing the sample of contracts selected for detailed review. In addition, the Committee was informed that in the PwC’s report four properties had been identified for further investigation (Poplar Town Hall, Sutton Street Depot, 111 – 113 Mellish Street and Limehouse Library) were also known to them as a result of, ‘third party information and/or the authority’s own governance processes.
The inspection report also referenced a number of other issues, or comments, which had been raised by Overview and Scrutiny Committee, or through a Call-in, in its final report, including in relation to:
1. Mainstream Grants;
2. 954 Fund;
3. Community Chest and Community Events;
4. Disposal of Poplar Town Hall;
5. Lease of Sutton Street Depot; and
6. Transfer of funds from reserves to the Mayor’s Office.
Although the Committee was advised that the inspection by PwC had not directly assessed the effectiveness of Overview and Scrutiny Committee or how it fulfilled its functions, the Committee was of the view that scrutiny is a vital component of good governance and improves councils’ decision-making, service provision and cost-effectiveness. It is political without being partisan; it can provide independent challenge to executive decision-making, delivering the accountability which is crucial to modern, efficient local government. The Committee also felt a strong accountability framework promotes confidence in the Council’s administration and that adequate and effective scrutiny is essential to the Council achieving its Best Value Duty.
However, the Committee considered that its recent experience and the evidence of the PWC report is that this important scrutiny role has not always been adequately facilitated under the current governance arrangements of the Council. In particular, the Committee had raised concerns about not being given timely access to information that would have allowed it to undertake scrutiny and that they felt that the Committee had, had difficulty in accessing independent advice to fulfil its functions.
It was
Resolved
- That the Chair should write to the Secretary of State asking that he gives consideration to ensuring that the remit of the Commissioners includes the oversight of the operation of the governance arrangements including the role of the Committee.
Supporting documents: