Annual Finance Service Plan 2013/14 and Performance Report

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10 Νοε 2013 (πριν από 4 χρόνια και 1 μήνα)

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Annual Departmental
Plan

v1



Annual Finance
Service Plan 2013/14
and Performance
Report

FINANCE DEPARTMENT






Derry City Council


Annual Service Plan & Performance Report v0.1

Page
2






FINANCE DEPARTMENT




Annual
Finance
Service Plan
201
3
/1
4

and Performance Report





1

Section One: Foreword


I am pleased to present the Annual
Finance Service Plan for 2013/14

to the Policy and Resources
Committee.



This plan

helps to e
nsure that our services are accountable, planned and clear, and that our
performance is measured.

Similar to previous years it

demonstrates many achievements and is an
opportunity to inform elected members and the public of the key role performed by the staff within
the
Finance
Department in providing effective
financial
services in line with departmental
objectives which in turn
helps us deliver the Council’s mission and strategic outcomes set out in
our Corporate Plan 2011/15.


I would like to sincerely thank every individual member of staff for their dedication and comm
itment
throughout the year
.







Joe Campbell

CITY TREASURER








Annual Service Plan & Performance Report v0.1

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3


2

Section Two: Service Profile /Summary


2.1

Services Provided


The Finance Department is located at the Council’s offices at 98 Strand Road and consists of
12

FTE staff. The total cost of running the department for
2013/14 is budgeted to be £
512,200

of
which salar
ies account for approximately
88.7
%. The Department
provides a range of key services
to the other D
irectorates

within Council and has an important influencing and supporting role in the
development of new initiatives and policies.


The services provided by the Department to its users can be divided into
thr
ee

main areas

i.e.
F
inancial Services
,
Treasury Management

and
Financial Management and Reporting;


2.2

Purpose of Service


2.2.1

Local Government Finance Act (Northern Ireland) 2011


The Local Government Finance Act (Northern Ireland) 2011 requires the Co
uncil to make
arrangements for the proper administration of its financial affairs and to designate an officer of the
Council as its Chief Financial Officer to supervise these arrangements.


The Chief Financial Officer must confirm

on an annual
basis
in

acc
ordance with the Local
Government Finance Act (Northern Ireland) 2011 that
the r
ates estimates are robust, that the
district f
und balance
and other reserves are a
t an adequate level and the Council’s borrowing limit
is affordable
.



2.2.2

CIPFA Statement on the role of the Chief Financial Officer in Local Government


The CIPFA Statement sets out five principles for the

Chief Financial Officer in a public service
organisation:


1)
is a key member of the Leadership Team, helping it to develo
p and implement

strategy and to
resource and
deliver

the authority’s strategic objectives

sustainably and in the public interest;


2)

must be actively involved in, and able to bring influence to bear on, all material

business
decisions to ensure immediate
and longer term implications,

opportunities and risks are fully
considered, and alignment with the authority’s

financial strategy; and


3)

must lead the promotion and delivery by the whole authority of good financial

management so
that public money is safe
guarded at all times and used

appropriately, economically, efficiently and
effectively.


To deliver these responsibilities the Chief Financial Officer:


4)
must lead and direct a finance function that is resourced to be fit for purpose; and


5)
must be
professionally qualified and suitably experienced


CIPFA has introduced a formal requirement for Local Authorities to report on compliance
with the
Statement’s Principles in the Annual Governance Statement and this reporting requirement
became mandatory fr
om 2011/12 and is included in the Code of Practice on Local Authority
Accounting.



Annual Service Plan & Performance Report v0.1

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4


2.3


Service
P
riorities and
O
bjectives


The key strategic objectives are:
-




Financial Management and Reporting


To ensure

the effective stewardship and use of public funds
through overall planning and
management of the Council’s financial affairs in ways which optimise its ability to deliver its
corporate priorities, deliver efficiencies and service improvements and make appropriate provision
in respect of necessary reserves
, while minimising the burden on local ratepayers.


Provide strategic financial advice to Senior Management Team, Council and its standing
committees on all financial matters including the financing options of major corporate
initiatives/capital projects
and contribute to the development of robust business cases, economic
appraisals and value for money studies as required.


Maintain a prudential framework, keeping commitments in balance with available resources,
monitoring income and expenditure levels ens
uring that this balance is maintained, taking
corrective action when necessary

and produce annually the Prudential Indicators and formally
report to Council annually on the adequacy of Council’s reserves, the robustness of rates
estimates and the Council’s

affordable borrowing limit.


Prepare
Financial Statements

for
Derry City
Council, NWRWMG and Peace III Joint Committees in
accordance with the new SORP and

Accounts direction by 30
th

June of each year


Manage the process within Council of setting the
annual Budgets and the striking of the District
Rate by 15
th

February each year



Ensure that effective budgetary control arrangements are in place so that overall the outturn of net
expenditure each year remains within budget


To
develop and review annual
ly a robust 3 Year
revenue and
capital plan

to
ensure adequate
financial resources are available to deliver the Corporate Plan
.




Treasury Management


To manage the Council’s borrowings, investments and cash flows, its banking, money market and
capital mark
et transactions; the effective control of the risks associated with those activities; and
the pursuit of optimum performance consistent with those risks.


Coordinate the timely submission of grant claims
.




Financial Services


To maintain the necessary Financial Systems to ensure that all Suppliers, and statutory collection
agencies are paid accurately and on time, and that all monies owed to Council are collected in full
and in a timely manner. Develop policies and procedures o
n same.








Annual Service Plan & Performance Report v0.1

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5


2.4

Summary of Resources


2.4.1
The
Finance and Human Resources Department
has a net budget of
£
512
,200

representing
1.34
%
of the Council’s overall net expenditure budget of
£3
8,253
,900
f
or the
201
3
/1
4

year. The majority of the
Service’s

costs relate to
Salaries

as indicated by the table
below.
The

Financial Resources

for the Finance Service area is as follows:


Budget Description

Last year’s
budget
(
2012/13
)

£

Budget

2013/14


£

Salaries

447,900

454,300

Insurances

4,500

5,300

Telephone, stationery, computer
maint
enance
. etc

39,700

39,700

Training,Travel
,

Protective C
lothing

6
,
900

6
,
900

Conferences

300

300

General M
aterials

5,000

5,000

Loan Charges

2,400

2,400

New E
quipment / Maint
enance

of
equipment

3,400

3,400

Recoupment

Income

(5,100)

(5,100)




Total

505,000

512,200


2.4.2

Currently there are
12

s
taff

within the
Finance and Human Resources Department
.
The
Workforce Profile

for the Finance Service Area is as follows:


Grade
1

No (& %)

Male

No (& %)

Female

No (& %)

With a
disability

Total

No. (& %)

Former Manual


0 (0%)


0 (0%)

0 (0%)


0 (0%)

Scales 1
-
6

2 (17%)

5 (42%)

0 (0%)

7 (59%)

JM


0 (0%)


1 (8%)

0 (0%)


1 (8%)

MM and above

4 (28%)


0 (0%)

0 (0%)


4 (33%)

Totals

6 (50%)


6 (50%)

0 (0%)

12 (100%)


2.4.3

An organisational structure for

the
service

is
provided

at Appendix 1.
T
he service
is located
at Council Offices, 98 Strand Road.





1

Subject to change in light of Single Status Agreement implementation

Annual Service Plan & Performance Report v0.1

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3

Section Three: Strategic Assessment


3.1

Baseline Assessment of Service


The Service must meet

a number of statutory targets on an annual basis including the completion
of rates estimates, financial stateme
nts,

and various other miscellaneous returns for
HMRC
by the
prescribed

dates. As in previous
years
these statutory targets have all been met.


Derry City Council previously participated in a Northern Ireland Local Authority Financial Services
Process Benchmarking Club in order to comply with the Best Value Order.
A range of performance
indicators were produced on a consistent basis and compared f
avourably with the other Councils
who participated.




Meeting Customer Expectations


The

Finance Service area
mainly provides

support service
s

to the frontline services provided by
Council.
A

wide range of support services
are provided
comprising payments to suppliers,
invoicing
for

services provide
d

and credit
control, and management accounting
. These services
are provi
ded
directly
to
Council Departments and
Culture Company

2013

and through
representations on Boards and Audit Committees

of
CODA Operations Limited and ERNACT.



Meeting Service Objectives


As

demonstrated throughout this plan the Finance Service has a very strong track record in
delivering on the Service Objectives
as
detailed in
section
2.3

above.



Key Achievements and O
utcomes


The Finance Services Key Achievements du
ring 2012/13
included:




The annual statutory targets for the completion of
2013/14
rates estimates,
2012/13
financial statements

for Council, NWRWMG and Peace III Joint Committees
, and various
other miscellaneous returns for tax etc were all achieved by the due dates.




In overall terms the net expenditure outturn for
2012/13

will not exceed the
overall budget
appr
oved
in
Rates Estimates
.




Coordinated

the a
chieve
ment of
a 1% reduct
ion in net expenditure
for 2013/14
to
increase
the Leisure Development Fund from £13.7 million to £18.7 million.




Represented Derry City Council on the
CODA Board
that
achieve
d

a
5
% reduction in the
level of subvention to the City of Derry Air
port for the

financial year 2012/13




In accordance with the
Local Government Finance Act

(
Northern Ireland
)
2011

produce
d

the
Prudential Indicators

for 2
013/14

and
set

the Council’s affordable borrowing limit and set
the external borrowing limit as part of approval o
f

the Rates Estimates for 2013/14
.




The Department
reviewed and updated the
treasury management policy and implemented a
revised travel and subsistence policy during the year
.



Annual Service Plan & Performance Report v0.1

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7




Bank interest earned for
2012/13

was

£
811,946
. This investment return is
significantly
above t
he current base interest rate.




Grant
claims
were

submitted
to a wide range of funding bodies
for payment

during the year
with

LGA audit certification where required




Since its introduction in April 2003
,

the Self Insurance Programme has achieved savings of
£2.
4
million

up to 2012/13
.




Council’s credit control procedures
were reviewed
and implemented during the year




T
he
percentage

of supplier payments
paid within
30
working
days
was 75%
and
the
percentage

of supplier payments
paid
within 10

working
days
was
37%

for 2012/13




The total number of absence days for the Finance Service for
2012/13

was 145 days
(5.3%). One member of staff who has a serious illness accounted for 128 days and if
excluded the sickne
ss absence % would have been 0.6%.




A

Disaster Recovery and Continuity Plan for

Accounts Payable
was completed
during
2012/13
.



Outstanding Activities from Last Year’s Plan




The Purchase to Pay Process was to be reviewed by March 2013. This also had to be
deferred when Finance’s role in the financial management of City of Culture increased
significantly during 2012/13. The review of the Purchase to Pay Process has been
resched
uled for
March
201
4

and will be carried out in conjunction with Strabane District
Council
.



3.2

Policy and Operational Context


The Service has recently implemented the additional requirements from the introduction of the
Local Government Finance Act

(
Norther
n Ireland
)
2011
.

These included the development of
a
new
treasury management policy and the production of the Prudential Indicators
. In addition to this

the
C
ouncil's affordable borrowing limit and external borrowing limit
were set
as part of approval of
annual rates estimates
.


Risk Registers are in place for all service areas within the Finance Department. All
r
isk
s

are
regularly reviewed and manage
ment controls to mitigate the risks updated as appropriate
.


Key

Risks are
detailed

in section 4.
5

below.


3.3

Stakeholders and Consultations


The

Finance Service objectives detailed at
section
2.2
above
have been developed to assist the
Council in meeting its statutory obligations,
and
to
contribute fully to the successful delivery of the
Council’s Corporate P
lan

2011/15
and the City’s One Plan.







Annual Service Plan & Performance Report v0.1

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8


4

Improvemen
t Planning and Performance


4.1

Staff Development


All s
taff
will
ha
ve

the opportunity to avail of
training

courses offered by the Local
Government
Training Group

(LGTG)

which
is responsible for providing relevant and topical training to the Local
Government Sector. This is subsidised training as
all

Council
s
make a financial contribution
to

LGTG
.
Some

staff
are
also required to undertake Continuous Professional Development to
m
aintain their professional qualifications.


4.2

Staff Consultation


Regular departmental sta
ff meetings are held which keep

staff fully informed and provide the
opportunity
for all staff
to provide feedback on issues raised
.



4.3

Mainstreaming the Equality and
Disability Duties


The Finance Service
is fully committed to fulfilling its Section 75 and
Disability duties and
promoting equality of opportunity and good relations. All new policies are screened for equality
impact assessment (EQIA) and an EQIA has been
carried out
on the current Corporate Plan
.




4.4

Mainstreaming
Sustainable Development


The Finance Department contributes

to the objectives of the Sustainable Development Duty, which
came into effect on 31 March 2007, by using recycled materials, by recycling paper, ink cartridges
and promoting the recycling of materials and through implementing energy conservation initiative
s
such as switching off lights and keeping windows closed.


4.5

Risk
Management


In the achievement of the objectives and targets set out in this
Service
Plan, the Finance
Department will be exposed to various risks. The task of management and staff is to re
spond to
these risks so as to maximise the likelihood of achieving the objectives and targets by managing
the exposure to risk to an acceptable level.


As a result of this, risk registers have been developed at Service and Departmental level,
identifying

the risks the Department may face in trying to achieve its objectives. The registers are
reviewed and monitored on a regular basis and action plans have been produced for all high
scoring risks to try to reduce the likelihood of the risk occurring. The
risk management process in
place will allow the Department to have increased confidence in achieving its desired outcomes;
effectively constrain threats to acceptable levels and take informed decisions about exploiting
opportunities.










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The key ris
ks

identified are
:




Securing Adequate

Financial Resources

to Deliver Council’s Corporate Plan




City of Culture Programme remaining within budget




Consistent
Application of Finance

Policies




Implementation of the Review of
Public
Administration


Controls are
in place to mitigate against the above key risks.




4.6

Asset Management Planning



The Finance Service where applicable will carry out an asset suita
bility assessment during
2013/14
.


4.7

Service Scorecard


Please find enclosed as Appendix 2


4.8

Improvement Plan


Improvements planned for 2013/14 comprise statutory targets and projects/initiatives and can be
summarised as follows:




Coordinate the achievement of a
£500,000

reduction in net expenditure
budget
per annum
to fund £5 million of capital projects
for
2014/15.




Target CODA Board to achieve a
5
% reduction in the level of subvention to the City of Derry
Airport for the financial year 2013/14




Through efficient cash flow management to maximise the availa
ble cash resources for
investment

and on

an ongoing basis
to
submit timely grant claims to

Funders




Prepare Rates Es
timates and strike rate for 2014/2015

by 15
th

February 2014.





P
roduce the Prudential Indicators
for 2014/15

and review the council's affordable borrowing
limit and set the external borrowing limit as part of approval of annual rates estimates




Prepare Financial Statements for
2012/13

for Council, NWRWMG and Peace III Joint
Committees in accordance with the new
SORP and

Accounts direction by 30
th

June 2013




Provide Financial Services
and Financial Management
to the Cul
ture Company during
2013/14.





Provide Monthly Budgetary Control reports etc. to assist Service Managers in managing
their budgets to e
nsure for
2013/14

that in overall terms net expenditure outturn does not
exceed rates estimates




Review the Budgetary Control Procedures by December 2013

Annual Service Plan & Performance Report v0.1

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10





Adapt the monthly budgetary control reports to reflect the new organisation structure
following the implementat
ion of Transforming Derry City Council.



Prepare Whole of Government Accounts consolidation schedules for 2012/13 and submit
them to the Department of the Environment by the statutory deadline.




Develop a robust three year Medium Term Financial Plan (enco
mpassing a three year
capital plan) by September 2013.




As part of the transition

for

RPA, complete the assessment of the financial systems for the
New Council by March 2014.




Participate along with NI Councils in taking a landmark VAT case to treat VAT on

Leisure
services as non business




Ongoing management of Council’s Partial Self Insurance in conjunction with the Insurance
and Risk Manager.




Review the Purchase to Pay Process
in conjunction with the Procurement Manager and
strive to
Increase the
percent
age
of supplier payments within 30 days to 8
5
%
(2012/13
75%)
and
the
percentage

of supplier payments
within 10

days to
50
%
(2012/13 37%) by
March 2014




To reduce the average collection period
for Accounts Receivable to
35

days by March 2014

(2012/13 38
days)
.




To review and test

business continuity plans for F
inance Service area by September 2013.




Strive to maintain absenteeism rates within the Service to below 4
.5
% during 201
3/14
.



Annual Service Plan & Performance Report v0.1

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5

Section Five
-

Contacts



Sharon O Connor

Town Clerk
Chief Executive


s
haron.oconnor@derrycity.gov.uk


Joe Campbell

City Treasurer




joe.campbell@derrycity.gov.uk



Gary Walsh


Senior Accountant




gary.walsh@derrycity.gov.uk


Gerry Butler


Management Accountant



gerry.butler@derrycity.gov.uk


Alfie Dallas


Financial Accountant



alfie.dallas@de
rrycity.gov.uk


Karen Gibson

Temporary
Senior Accounts Officer

karen.gibson@derrycity.gov.uk


Geraldine O’Kane

Personal Assistant




geraldine.okane@derrycity.gov.uk