CIPFA North West – Audit & Governance Group

Autumn Seminar

Regeneration Schemes

11 October 2013

Neil Bellamy, Director

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Regeneration

• Strong local economy

• Improved amenities

• Better Housing

• Thriving, vibrant town centres

“To double the Borough’s population by 2030, with a complementary increase in jobs, prosperity and quality public services”

“Fulfil Corby’s potential as a dynamic, fast growing and increasingly prosperous borough, distinguished by the quality of its built and rural environment and calibre of its retail, cultural and sporting facilities”

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Four schemes

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Regeneration schemes - characteristics

Council Restructures – Change – Financial Pressure

Visible Unique

Multi agencyMulti funded Grant conditions

ContractualHigh Value Volatile

Inspirational

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What we covered

Organisation Checks and BalancesGovernance Arrangements

Internal Control

Financial Management

Organisation Checks and Balances

Project Management

Organisation Checks and Balances

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Decisions, decisions......

• Who? What? and Where?

• Legitimacy

• Budget decisions

• Documenting

• Member scrutiny

• Legislation

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Internal Control

Contractual procedures - loan guarantee

Payment control

Budgetary Control

A “clearing fund” to buy unsold properties

But actually used to fund their construction

not included in budget reports

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Budgetary Control - Clarity

Project Board report

£m

Projected spend 43.9

Budget 41.8

Projected overspend 2.1

Committee Report

£m

Spend to date 7.2

Projected spend 9.3

Budget 9.3

Projected over/underspend 0

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Financial Management

Risk of overspend

Is there one?

Who bears it?

Clarity on who bears it, how it will be monitored.

Certainty of sponsorship/grants

Difficult in a complex arena

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Financial Management

Decisions based on full costs

£m £m

Construction 14 House sale income 18

Marketing & Sales 2

----- -----

16 18

Profit 2?Donation of land valued at £3 million

Involvement of the Finance Team is key

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Project Management

Key but difficult job in construction contracts

Depth of in house knowledge/expertise

Ability to stand back, pragmatism.

Grant deadlines

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Organisational Controls

Chief Financial Officer Role

Monitoring Officer Role

Whistleblowing

Culture

Members

Internal Audit/Audit Committee

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Summary and top three key questions

Increased complexity = increased risk – Regeneration is complex

One large scheme can stretch in house resources

Basics become even more important

Importance of finance involvement (you!)

Are you aware of all regeneration

schemes?

Are your audit committees willing

to challenge on this?

Have you got the skills to assess the risks in such

schemes?

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Final Reflection

Push for regeneration

Multi agency

Flagship/high profile schemes

Financial pressure – search for efficiencies

Sound familiar?

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Thank you and questions

Contact

Neil BellamyDirectorMidlands Public Sector1 Waterloo WayLeicesterLE1 6LP

Tel: +44 (0)116 2566082Mob: +44 (0)7880 788292

© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom.

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