To:                                                  Pitt, Joanne

Subject:                                         RE: CIPFA Monthly ASD Newsletter - September 2020

 

 

From: CIPFA <cipfa@email.cipfa.org.uk>
Sent: 22 September 2020 11:14
To: Pitt, Joanne <
Joanne.Pitt@cipfa.org>
Subject: CIPFA Monthly ASD Newsletter - September 2020

 

 

 

Alternative Service Delivery Network

22 September 2020

 

Events

Role and Responsibilities Of Directors and Non-Executive Directors Webinar

16 October 2020 

Alternative Service Home

Advisor Update

 

Recent times has seen a huge growth in the number of local authority trading companies (at the last count there were approximately 750) as organisations respond to growing financial pressures and service demands. At one stage, the question was not whether your authority had set up a trading company, but how many had been set up. Some of these trading companies were prematurely established  and the business case had at least a few holes. This was before Covid and now with the difficult trading conditions, unfortunately many of these entities will need huge amounts of efforts and investments (which will be in short supply) to continue trading.

 

We have also noted a few examples of trading companies which have closed down recently and some of the key features they all shared included failings in the creation and management of the company (usually results in “institutional blindness”) and inadequate governance arrangements. 

 

The composition of the board of directors and the wider governance aspects has been a very challenging area and something which authorities and trading companies need to look into as a matter of urgency. Board of directors, especially for a company looking to trade in a significant way requires commercial and financially astute members and is not akin to representing the council on a non-commercial partnership board or voluntary group. It is vitally important that board members are skilled and trained in managing complex commercial bodies and also have a clear understanding of legislation to ensure that they are able to fulfil their roles and responsibilities with confidence. 

 

The ASDN has scheduled a webinar on 16 October on the roles and responsibilities of Directors and Non-Executive Directors in a new series of events which will look into the area of governance. Please book using the link on the right.

 

Best wishes

 

Mohamed 

 

Network and CIPFA News

Council to review leisure services following ‘force majeure’

Peterborough City Council is to review the running of cultural and leisure services in the city, following the termination of its outsourcing agreement and transfer of responsibilities for running the services back to the authority.

 

Council confirms £60m loan for airport

Luton Borough Council has approved the borrowing of £60m, which it then intends to lend to its wholly-owned London Luton Airport Ltd as it seeks to offset losses resulting from Covid-19.

 

 

News Roundup

 

Government urged to ‘adopt own state aid system’

The UK government should look to create its own state aid system after the Brexit transitional agreement ends, according to the Institute for Government.

 

Council rejects plan for own waste company

An attempt to set up a council-owned waste contractor in Norfolk has collapsed after a disputed vote. Broadland and South Norfolk councils – which work together to deliver most services – had been expected to set up the local authority trading company to provide waste and start cleansing services.

  

Robin Hood Energy: The failed council firm that cost city millions

Council-run Robin Hood Energy set out to help people struggling with their bills, but instead it failed to turn a profit, ended up losing millions and is being closed down, leaving 230 workers redundant. Now that Nottingham City Council has decided to pull the plug on its grand project, BBC News looks at what happened.

 

Watchdog warns over UK furlough fraud and government contracts

National Audit Office says it will investigate procurement amid concern over level of furlough scheme abuse.

 

The key pandemic priorities for employers revealed

To play its part as a responsible LATCO, at ODS we’ve been coming up with new ways of working amid the crisis. From the outset of the COVID-19 outbreak, we told our customers, suppliers, and workforce that while we do not know the extent of the virus’s impact, the number one priority will always be their safety. We published a Business Continuity Plan (BCP) on our website that identified how we deal with a variety of issues caused by the virus, such as reduced workforce, fuel, or material supplies.

 

Planned council run Lancaster home building company 'could comfortably borrow £25m' to grow housing portfolio

Council report asks councillors to approve the use of up to £50,000 funding from the council's reserves for the initial specialist legal and financial advice required to set up a Local Housing Company (LATCo).

 

Business continuity through a COVID-19 lens

COVID-19 has brought business continuity under scrutiny, with the opportunity to enhance resilience into the future. Padma Naidoo looks at what worked and how this will influence business continuity in the future…

 

Publications

Leadership Matters

CIPFA NED Certificate

 

Alternative Service Delivery Network Advisors

Mohamed Hans 

+44 (0) 1924 461 825 / +44 (0) 7717 345188
mohamed.hans@cipfa.org

CIPFA | The Chartered Institute of Public Finance & Accountancy

 

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