Appointment of Section 151 Officer - East Lindsey District Council

EAST LINDSEY DISTRICT COUNCIL REPORTCOMMITTEE:COUNCILDATE: 15 TH DECEMBER 2010SUBJECT:PORTFOLIO HOLDERWard(s) affected:SECTION 151 OFFICERCOUNCILLOR COLIN DAVIEALLBrief description of report content and the decision being asked for:Summary:Following receipt of the Merged Services report at Full Council in July 2010 whichagreed the TUPE transfer of all ELDC Finance staff to a new company (Compass PointBusiness Services), it was agreed to appoint a Strategic Director of South HollandDistrict Council to act as the council’s temporary Section 151 Officer until permanentarrangements are established.This report brings forward a proposal to work in collaboration with Boston BoroughCouncil to appoint a permanent joint Section 151 Officer to work across both Councils.Recommendations:That Council agrees to the appointment of the current Section 151 Officer ofBoston Borough Council to work across both Councils on a 50/50 basis withsalary costs met on a 50/50 basis across both organisations.REASON: To ensure that the statutory role of Section 151 Officer is fulfilled and playsan active part in supporting the Council as part of the ELDC senior ManagementTeam.This report has been prepared by:Stuart Davy – Strategic Director Tel: 01507 601111e-mail: stuart.davy@e-lindsey.gov.ukThis report was prepared after consultation with:Richard Harbord – Interim Chief Executive of Boston Borough CouncilThis report has been signed off by:Nigel Howells – Chief Executive

The following policies form a context to this report:n/aThis report is a key decision included in the Forward Plan.LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW(papers relied on to write the report but which are not published and do notcontain exempt information)1. N/AOTHER HELPFUL PAPERS(papers which the report author considers might be helpful – this might includepublished material)1. Merged Services report to Full Council of 29 th July 2010.Local Government (Access to Information Act) 1985Is the report Exempt –NoPlease contact the person who has written this report if you wantmore information about this report or the background papers.1.0. INTRODUCTION1.1 In creating Compass Point Business Services, all posts relating to the previousFinancial Services business unit of ELDC were TUPE transferred to the newcompany with effect from 1 st August 2010. This included the previous post ofChief Finance Officer which also fulfilled the role of Section 151 Officer to theCouncil.1.2 The role of Section 151 Officer is identified in the Local Government Act of 1972as a statutory position within local authorities and must be fulfilled by anappropriately qualified person. This function cannot be fulfilled by a third partyorganisation (other than another local authority) and neither can it be fulfilled byan individual who is not an employee of a local authority. It cannot, therefore,be fulfilled on behalf of the Council by an employee of Compass Point BusinessServices.1.3 On the establishment of Compass Point Business Services it was agreed that aStrategic Director of South Holland District Council fulfil this responsibility forELDC on a temporary basis until more permanent arrangements could be put inplace.

1.4 The appointment of a Section 151 Officer is a responsibility of Full Council.1.5 There is currently no member of staff employed by ELDC with the requiredqualifications to undertake this role.2.0. BACKGROUND2.1 The Section 151 Officer is responsible to ensure that the local authority hasarrangements in place for the proper conduct of its financial affairs and tomonitor their adequacy and effectiveness in practice. These arrangements mustcover:• the legality of transactions• standards of financial conduct and the prevention and detection of fraudand corruption• the systems of internal financial control• the financial standing of the authority3.0. SUBJECT INFORMATION AND ISSUES/FACTS AND FIGURES3.1 Following the creation of Compass Point Business Services it has been theintention to work in partnership with a neighbouring authority for the provisionof Section 151 services to this Council. As a consequence, positive andconstructive discussions have been held with the Interim Chief Executive ofBoston Borough Council which has resulted in a proposition for both Councils toshare the services of their current Section 151 post holder on a 50/50 basis.3.2 Such an arrangement would see the Councils sharing remuneration costs on a50/50 basis. This would be reflected in a time commitment to both partieswhich would be on the basis of an average of 2.5 days per week. BostonBorough Council would remain the substantive employer of the post holder witha secondment arrangement being agreed between the two Councils.3.3 The time commitment with ELDC would be shaped to ensure a full participationin Management Team and attendance at appropriate meetings such as FullCouncil, Executive Board, Audit Committee, Overview/Scrutiny and othermeetings as and when required.4 SUPPLEMENTARY FACTS5 COUNCILLOR COMMENTS – If no comments are received from one ormore of the Ward Members consulted state which Councillor(s) didnot respond5.1

6 DISCUSSION / CONSIDERATION – ISSUES / CONCLUSION –including reasons for recommendation(s)6.1 As outlined earlier in the report, the post of Section 151 is a statutory functionthat must be fulfilled by an appropriately qualified employee of a local authority.6.2 In preparing for the new financial challenges of the future, this Council has beenimplementing a wide range of efficiencies over the past few years including, butnot exclusively, the establishment of Compass Point Business Services. Part ofthis work includes establishing where more efficient working arrangements withneighbouring authorities will reduce costs whilst maintaining front line services.7 OTHER OPTIONS FOR CONSIDERATION (drawn from previoussections)7.1 It has been outlined earlier in this report that it is not an option to engage theservices of a third party organisation (except another local authority) orindividual to provide Section 151 services to the Council. This includes CompassPoint Business Services. This means that the two options are to either: a)Wholly employ a section 151 Officer or b) share the costs of a Section 151Officer with a neighbouring authority.7.2 The option of wholly employing a section 151 Officer has been regarded as aleast favoured option. The previous Chief Finance Officer post at ELDC fulfilledthe role of Section 151 Officer and managed the delivery of the Finance BusinessUnit (and had responsibility for the IT function). It is clear, therefore, that sincethe transfer of the Finance and IT functions to Compass Point Business Services,a significant part of these previous responsibilities no longer lie with ELDC withthe result that the responsibilities of Section 151 Officer alone do not representa requirement for a full time post within ELDC.8 PERFORMANCE MONITORING8.1Subject Deadline Responsible Officer9 RISK ASSESSMENT9.1 The agreement of permanent arrangements for the role of Section 151Officer at East Lindsey District Council is a necessary requirement toensure the ongoing fulfilment of these statutory duties.10 FINANCIAL CONSIDERATIONS/IMPLICATIONS. PLEASE ALSOINCLUDE NAME OF OFFICER RESPONDING10.1 Costs for the post would be shared on a 50/50 basis between the two councils.This equates to a salary cost of £58,000 per annum (including on costs) forELDC.

11 LEGAL CONSIDERATIONS/IMPLICATIONS. PLEASE ALSO INCLUDENAME OF OFFICER RESPONDING11.1 It is a statutory requirement to appoint a Section 151 Officer for the council.12 INCLUDE IF APPROPRIATE AND ONLY BRIEF EXPLANATION OFISSUE. PLEASE ALSO INCLUDE NAME OF OFFICER RESPONDING12.1 Environmental issues -12.2 Human Resources – A formal secondment arrangement will be put inplace between ELDC and Boston Borough Council12.3 Section 17 -12.4 FOI/Human Rights/Data Protection -12.5 Equality and Diversity -13 HOW DO THE ACTIONS/RECOMMENDATIONS CONTAINED IN THISREPORT DELIVER OUR COMMUNITY AND CORPORATE STRATEGIES?13.1 By ensuring that the local authority has arrangements in place for theproper conduct of its financial affairs and to monitor their adequacy andeffectiveness in practice.