Agenda item

The committee will be asked to agree the  proposed centralised finance structure. Report to follow

The Committee were advised that as part of the Haringey Efficiency and Savings programme a review of the financial management function across the Council had been undertaken in order to arrive at a revised finance structure and a new model of delivery of the finance function of the Council. Essentially the report proposed a centralisation of the of the finance structure of the Council. This would involve a significant reduction of staff employed in the finance environment.  There would be a refocus of accountability for budget holders of services with transition work and training undertaken with them to fully ensure that their responsibilities were realised.

The Committee were asked to refer to section 6.4 of the report which set out the total reductions in posts and the costs between the current and proposed structure. The original target of 50% reduction in cost had been reduced to 40% to allow the Council to be in a safer position to deliver its statutory responsibilities and ensure that financial control risks were fully mitigated against. This would be particularly pertinent over the next two years.

The Committee learned that there had been three consultation events with staff on the restructure proposals, which had been well attended by staff.  The Employee side concurred that this had been an inclusive exercise where staff had participated in the consultation process.  The Lead Finance Officer had also offered a series of one to one meetings which had been fully utilised by staff.  There had been effective liaison with the trade unions and their comments on the consultation were attached.

Following concerns expressed by staff and unions in the consultation process on the grading structure and the number of posts being deleted at SO1, PO1, PO2 level, there had been some posts at this level added to the structure. There were also some range grades added to improve prospects in some positions.

The Committee expressed concern about the amount of responsibility for financial management  that would be given to managers and enquired  what mechanisms were in place to monitor their performance  and ensure that  the risks associated with this transfer of duties was managed. It was noted that there was a transition plan compiled with the support of Organisational Development to manage this change process.   There were also early plans to develop the SAP system to a more accessible and usable tool for managers which would in turn contribute to supporting them with their increased financial role. As communicated earlier, there would be additional courses offered to managers based on their knowledge and experience levels.

Clarification was sought on how single status rulings would be applied to posts in this restructure.  In response it was noted that this was an ongoing process, which would continue even after the agreement of the restructure,   to review posts in the old structure and resolve anomalies and understand if there was a right of appeal regarding single status. It was noted that this would not be applicable to the posts in the new structure.

 In their consultation response, the Employee side had requested the use of closed ringfences in the appointment process instead of open ringfences to provide more opportunity for existing staff to fill the posts in the new structure.  The Committee noted that where there was a change in duties to a post then the use of an open ring fence was applicable.   The priority was to ensure that candidates had the right skills match to the position being applied for, which the open ring fence allowed. The aspiration of the Lead Finance officer was to employ, to the new posts, from the existing pool of staff.

 RESOLVED

1. That the outcome of the consultation with staff and trades unions outlined in the attached appendices be noted.

2. That  following due regard to the authority’s public sector duties including the consideration of the attached equalities impact assessment , the proposed new centralised finance structure as set out in the report be approved.