Agenda item

A member of the Resources & Performance Scrutiny Board suggested the engagement of external consultants by Cherwell District Council as a potential topic for scrutiny. This is an opportunity for members of the Resources and Performance Scrutiny Board to question officers about the topic.

The Community and Corporate Planning Manager and Finance Officers will be present at the meeting.

The Resources and Performance Scrutiny Board will wish to reflect on the evidence and agree the next steps.

The Chairman welcomed the Head of Finance, the Community and Corporate Planning Manager and the Corporate Strategic Procurement Manager to the meeting. He explained that a member of the Resources & Performance Scrutiny Board had queried the use of external consultants during the council’s drafting of the Sustainable Community Strategy and suggested the engagement of external consultants by Cherwell District Council as a potential topic for scrutiny. This would be an opportunity for members of the Resources and Performance Scrutiny Board to question officers about the topic.

The Community and Corporate Planning Manager began by providing a general overview of different types of consultants and why they were used before the Corporate Strategic Procurement Manager focussed on how Cherwell District Council procures consultants. The Board was advised that the same procurement process principles were applied to the procurement of consultants as to any procurement process the council undertakes, including options appraisal, detailed specification, award of contract and monitoring.

The Board was advised that all services could potentially use consultants however they must be procured in the correct manner and the service area must have a budget it could call upon to meet the cost of employing the consultants. The management of consultants was dependent on the specific project and generally incorporated in the contract between the council and the consultant.

The Head of Finance gave an overview of the council’s spending on consultancy by service area. She explained that consultancy was a discretionary area of expenditure and could only be budgeted for if there was a business case and it could show value for money. Expenditure on consultancy had reduced by around two-thirds between 2008/09 and 2010/11. The consultancy budget set for 2011/12 forecast a further reduction in expenditure and would represent a very small amount in the councils overall budget. The Head of Finance explained that in contrast to the reduced expenditure on consultants, expenditure on private contractors had increased. This was as a direct result of the decision to outsource the internal audit and revenues and benefits services. These increased were however offset by the reduction in expenditure on salaries and both contracts have shown considerable reductions in the cost of providing these services for the Council at increased quality. 

The Community and Corporate Planning Manager addressed the use of consultants during the drafting of the Sustainable Community Strategy (SCS). She explained that the SCS was the long-term vision and plan for a local area. Preparation of SCS’s is a requirement for councils. Section 4 of the Local Government Act 2000 requires a principal authority to prepare an SCS for promoting or improving the wellbeing of its area. The Board was advised that Cherwell District Council had historically used consultants when developing plans and strategies as there was no team in place to fulfil the function. As a consequence the Executive approved funding to use consultants to assist with the development of the SCS. In addition to producing the SCS, a further legacy of the process has been the development of a team which, as part of its remit, leads on consultation, and consultation forums which can be used by all service areas. 

The Chairman thanked the Head of Finance, the Community and Corporate Planning Manager and the Corporate Strategic Procurement Manager for the comprehensive briefing on the council’s use of external consultants. The Board agreed that the item should be added to their work programme. Members agreed that they should continue to monitor consultancy costs through the Finance Scrutiny Working Group. Additionally, the Board requested that officers provide an overview of the full process of procuring consultants to a future Board meeting.

Resolved

(1)               That the Resources and Performance Scrutiny Board continue to monitor consultancy costs through the Finance Scrutiny Working Group.

(2)               That officers be requested to provide additional information on the complete process of procuring consultants giving examples from each directorate to a future meeting of the Board.