Agenda and minutes

To approve as a correct record the minutes of the meeting held on 1 November 2012.

The Minutes (copies of which had been circulated) of the meeting held on 1 November 2012 were approved as a correct record.

No declarations of interest were made.

To consider whether it is in the public interest to exclude the public during consideration of agenda items 4, 5 and 6 which contains information “not for publication by virtue of Category 3 “Information relating to the financial or business affairs of any particular person (including the authority) as set out in the Local Government Act 1972 (as amended).

RESOLVED – That in order to prevent the disclosure of information which was not for publication by virtue of category 3 “Information relating to the financial or business affairs of any particular person (including the authority) as set out in the Local Government Act 1972 (as amended) the public be excluded from the meeting during consideration of agenda items 4,5 and 6.

Report to follow

The Service Director (Legal and Democratic Governance) submitted a report (copies of which had been circulated) outlining the roles and responsibilities of the Contributors Committee and seeking a decision from the Committee if they wished to continue operating a Working Group of the Committee which would meet more regularly to have oversight of the Recovery Plan.

The following comments were made/issues raised:-

·         Clarification was sought in respect to the level of access that the Contributors Committee members would have to company accounts in order to carry out their monitoring and scrutiny function. It was agreed the senior financial officers of the Council and Solutions SK meet to consider the format in which information should be reported to future meeting of the Committee in order to best assist councillors carry out their duties and responsibilities and that an update be provided to the next meeting.

·         The Contributors Committee was the mechanism through which the Council exercised its rights as the owner of the company and as such appoints and removes directors and amends the Articles of Association. The role of the Committee was contained in the Contributors Agreement.

·         It was a requirement for the Committee to report at least annually to the Executive.

·         The process for the recruitment and appointment of non-executive directors to the Solutions SK Board.

RESOLVED – (1) That a Working Group of the Committee be established to monitor the Recovery Plan, to meet on a monthly basis and that the following councillors be appointed to attend:-

Councillor Peter Burns

Councillor Philip Harding

Councillor Syd Lloyd

Councillor John Pantall

(2) That the Democratic Services Manager, in consultation with the Chair and the Corporate Director for Corporate and Support Services be requested produce a programme of meeting for both the Solutions SK Contributors Committee and the Working Group and that the dates be circulated to councillors at the earliest opportunity.

Report to follow

The Service Director (Legal & Democratic Services) submitted a report (copies of which had been circulated) explaining further the roles and responsibilities of the Contributors Committee, the role of the Directors, the role of the Board and the role of the Customer. The report further clarified the governance arrangements within Solutions SK and put into context of the Governance Review carried out by Cobbetts Solicitors.

The following comments were made/issues raised:-

·         The Governance Review of Solutions SK undertaken by Cobbetts identified a number of areas in which the Council needed to be satisfied, namely:-

-       That the Contributors Committee has a clear understanding of its role and the means to carry it out.

-       That the governance and management structure of Solutions SK is fit for purpose and that its Board and senior management have the required skills and experience.

-       That there are appropriate working protocols between the Council as customer and Solutions SK as service provider which ensure that the relationship is conducted on a commercial basis.

-       That the governance arrangements are robust and understood.

·         It was suggested that the composition of the Solutions SK Board be amended with a view to reducing the number of Council representatives on the Board.

·         Consideration was given as to whether to appoint the Chief Executive or his nominee as a ‘Council Observer’ to the Board.

·         It was suggested that the Board carry out a skills audit of its members and report back to a future meeting of this Committee on the outcome of that audit.

·         It was requested that the minutes of future Client Group meeting be submitted to the Committee for consideration as well as an update on how the quality of services will be monitored.

RESOLVED – (1) (One against)That all Council representatives on the Solutions SK Board be removed.

(2) (One against) That no ‘Council Observer’ be appointed to the Solutions SK Board.

(3) That the Solutions SK Board be requested to carry out a skills audit of its members and report back to a future meeting of the Committee on the outcome of that audit.

(4) That the thanks of the Committee be extended to the previous Council appointed representatives on the Solutions SK Board.

1.  Conclusion of external investigation

2.  Recovery Plan

3.  Current year position

Report to follow.

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) summarising the stages of the external investigation and the conclusions which were reached, the minutes from the meeting of the Working Group on 29 November 2012 and the latest monthly finance and performance report presented to the Solutions SK Board by the company’s Finance and Commercial Director. The Managing Director Solutions SK submitted a further document requesting the Committee to approve amendments to the strategic direction for the company in the existing Business Plan in order to align the Business Plan with the Recovery Plan.

The following comments were made/issues raised:-

·         Councillors requested a presentation at the next meeting relating to the School Meals Service.

·         Clarification was sought in respect to the proposed changes to the strategic direction of the Company as detailed in the business plan.

RESOLVED – (1) That the report be noted.

(2) That approval be given to the proposed change to point 2 in the business plan (as circulated) but that further legal advice be sought in respect to the proposed changes to point 3 and that this matter be considered at the next Committee meeting.

(3) That all reports considered at previous meetings of the Contributors Committee relating to the external investigation be circulated to Councillors for information.