Aberdeen City Council sets record straight on financial management
30/05/08
A report in the Press & Journal newspaper today contains a serious misrepresentation of Aberdeen City Council’s power to manage its finances.
The newspaper is reporting that Aberdeen City Council has been “effectively stripped of the power to manage its money” following the release yesterday of the findings of the Accounts Commission’s Best Value Hearing, which was held earlier this month. The headline on the story states that the City Council has “lost control of the purse strings”.
Both of these statements are factually incorrect.
The Accounts Commission made a number of recommendations to Aberdeen City Council following the Hearing.
The recommendation misrepresented by the Press & Journal reads as follows:
“The Council should appoint an independent local government finance expert to establish whether the Council’s proposed savings are accurate and achievable, and to monitor closely the delivery of the savings.”
The Accounts Commission wants the City Council to utilise the skills of an independent expert to help us stabilise our financial position.
The financial expert will be appointed by the full council. The remit of the role will also be discussed by the full council.
The appointee will review the budget strategy, the budget monitoring arrangements and the achievement of savings. Particular attention is bound to be paid to the council's spending on demand-led health and care services, which has historically put intense pressure on the budget.
He or she will may suggest alternative strategies and recommend that the City Council adopt them in order to successfully make the savings we must achieve.
He or she will necessarily discuss the budget situation with elected members, the chief executive, corporate directors, heads of service and other staff.
The full council will then consider any recommendations.
There is no suggestion from the Accounts Commission that the independent finance expert will take over the control of the council, as implied by the Press & Journal.
If you have any queries regarding this, or any other news story, please contact Aberdeen City Council on: 01224 522000.
