Agenda item

The Committee received an update on the Borough’s contract management procedures, following risks identified in an Internal Audit report in September 2017. The main findings of the audit were as follows:

·  There had been inconsistent contract management across SBC.

·  Contract management roles were poorly defined and lacked clear accountability.

·  There was insufficient contract management capability and capacity.

·  Contract risks and opportunities were not well managed.

·  No process to manage dependencies and interdependencies across contracts / service areas.

·  The contracts register was incomplete.

·  Current structures would not drive sufficient change.

The Director of Finance & Resources provided assurance to the Committee that action was being taken to address the weaknesses and explained the approach that had been taken.  It was recognised that historic issues relating to existing contracts needed to be addressed, and the recent major contracts such the Repairs, Maintenance & Investment contract with Osbornes had been more robust. 

Findings of the audit had been accepted by the Corporate Management Team and it was agreed that key recommendations made within the report be implemented.  It was brought to Members attention that good progress had been made on the recommendations, which included the Contract Register being reviewed monthly and published online; development of a corporate contract management framework creating a checklist and evaluation tool to evaluate current and future contracts against best practice. Following a review there had been internal discussion about the most appropriate structures to manage contracts in the future including the respective roles of central and departmental teams.

Councillor Strutton addressed the Committee under Rule 30 and he highlighted the apparent failure over several years to address the weaknesses in contract management.  He asked about the plans to improve monitoring, policies and procedures and highlighted the role of Members in providing strong oversight.  The comments were noted.

Members were assured by the approach outlined by the Director and welcomed the changes that had been introduced and the benefits to be gained from effective contract management were highlighted.  It was suggested and agreed that the Committee take a more active role in scrutinising major contracts by widening the scope of its regular scrutiny of the Arvato contract to include other contracts such RMI.  An update would be provided early in the New Year.

Resolved –

(a)  That details of the report and the actions being taken in response to the identified weaknesses be noted.

(b)  That the Committee considered a wider report on contract management including RMI and potentially other major contracts in early 2019 alongside the scheduled scrutiny of the Arvato contract.