Issue - meetings

This report provides details of the final Business Case for the shared service between City of York Council and North Yorkshire County Council for internal audit, counter fraud and information governance services and seeks approval to proceed to the next phase of the project, which involves transferring the relevant services to a company wholly owned by the two councils.

Note: Annex A to the above report has not been included in the printed papers but has been supplied to Members as a separate document and is available on the Council’s website.

RESOLVED: (i)         That approval be given to proceed with the implementation of the wholly owned company as the appropriate long term organisational structure for the shared service (Option 1), in accordance with the details set out in the report and the attached Business Case.

REASON:      To enable the implementation of the appropriate long term structure for the shared service (Part II of the strategic plan).

                        (ii)        That the appointment of the Executive Member for Corporate Services and the nominated Officers to the Board of Directors of the shared service company be agreed.

REASON:      To ensure appropriate governance and accountability for the shared service company.

                        (iv)       That the shared service be authorised to carry out functions relating to housing benefit and council tax benefit, using Section 70 of the Deregulation and Contracting Out Act 1994 and the Contracting Out (Functions of Local Authorities: Income-Related Benefits) Order 2002.

REASON:      To ensure that staff employed by the shared service company can properly undertake future investigations into benefit related fraud.

                        (v)        That the Council be authorised to enter into a Premises Licence with the shared service company for the future use of office accommodation.

REASON:      To enable the Council to provide fully serviced accommodation to the shared service company.

                        (vi)       That the Council be authorised to enter into an agreement for an overdraft facility with the shared service company.

REASON:      To ensure that the shared service company has adequate funds to cover its working capital requirements.

                        (vii)      That Officers report to a future Executive meeting on the staffing issues that remain to be determined.

REASON:      To ensure that these matters are satisfactorily addressed.

Members considered a report which provided details of the final Business Case for the shared service between City of York Council (CYC) and North Yorkshire County Council  (NYCC) in respect of internal audit, counter fraud and information governance services.

The two councils had been working in partnership since September 2007 to develop the shared service, which was intended to provide greater resilience, capacity and flexibility for both councils, as well as the delivery of increased efficiencies.  An Outline Business Case and timetable had already been approved by the Executive Member for Corporate Services in March 2008.  The Project Board had now completed the detailed Business Case for Phase II, which had been made available to Members and on the Council’s website as Annex 1 to the report. 

Members were invited to consider the following options:

Option 1 – proceed with the full implementation of the company, wholly owned by both councils.  This was recommended, as the most appropriate long term structure for the shared service.

Option 2 – ask Officers to examine the alternative structural options, which had previously been rejected.

In response to the issues raised on this item under Public Participation, Officers reported that NYCC had that morning approved the arrangements for the shared service in full awareness of UNISON’s concerns.  Staff and unions had been kept informed of developments throughout the process.  The company would be council owned, with both CYC and NYCC holding an equal number of shares.  It would operate in accordance with the principles and governance arrangements as indicated under ‘Legal Implications’ at paragraph 21 of the report. 

Having noted the comments of the Shadow Executive on this item, it was

RESOLVED: (i)         That approval be given to proceed with the implementation of the wholly owned company (Option 1) as the appropriate long term organisational structure for the shared service (Option 1), in accordance with the details set out in the report and the attached Business Case.¹

REASON:      To enable the implementation of the appropriate long term structure for the shared service (Part II of the strategic plan).

                        (ii)        That the appointment of the Executive Member for Corporate Services and the nominated Officers to the Board of Directors of the shared service company be agreed. ²

REASON:      To ensure appropriate governance and accountability for the shared service company.

                        (iii)       That the shared service be authorised to carry out functions relating to housing benefit and council tax benefit, using Section 70 of the Deregulation and Contracting Out Act 1994 and the Contracting Out (Functions of Local Authorities: Income-Related Benefits) Order 2002. ³

REASON:      To ensure that staff employed by the shared service company can properly undertake future investigations into benefit related fraud.

                        (iv)       That the Council be authorised to enter into a Premises Licence with the shared service company for the future use of office accommodation. ⁴

REASON:      To enable the Council to provide fully serviced accommodation to the shared service company.

                        (v)        That the Council be authorised to enter into an agreement for  ...  view the full minutes text for item 158