Decision details

An update report on Brighton & Hove City Council (BHCC) joining the Orbis Partnership for the provision of business services.

Declarations of interests:

None

Witnesses:

Graham Liddell, Head of Internal Audit, Brighton and Hove City Council

Kevin Foster, Chief Operating Officer, East Sussex County Council

John Stebbings, Chief Property Officer, Surrey County Council

Key points raised during the discussion:

1.   An introduction to the report was provided by the Head of Internal Audit at BHCC who advised Members that due diligence in respect of joining the Orbis Partnership was still being undertaken by BHCC. Attention was drawn to the four key areas of focus that are being used to define the due diligence as outlined in the report. More consideration would need to be given to the areas which had been identified but it was stressed that it was necessary to draw the due diligence process to a conclusion so that Policy, Resources and Growth Committee can confirm the decision to join the Partnership, subject to this due diligence,  and in what capacity. The Head of Internal Audit stated that BHCC was required to make 30% savings within its budget by 2020 and that further consideration was required on how membership of the Orbis Partnership could contribute sufficiently to BHCC achieving these savings.

2.   Members inquired about the length of time that it had taken BHCC to conduct due diligence on the Orbis Partnership and why it had taken longer than anticipated. The Head of Internal Audit advised the Committee that undertaking a thorough and effective due diligence process was difficult and time-consuming even for those services at BHCC where integrating with the Partnership was expected to be relatively straightforward.

3.   The Committee stated that the report read as being more cautious around the outcomes of due diligence than previous updates and asked if other options for rationalising back office functions were under consideration. Members were informed that other options had previously been reviewed but that, as of December 2015, joining Orbis was the only one that had been given any serious consideration. The Chief Operating Officer stressed that the interests of all parties involved the partnership was paramount and that it was important to ensure, through due diligence, that BHCC would benefit and achieve considerable savings through its involvement in the partnership.

Actions/ further information to be provided:

None

RESOLVED:

The Orbis Joint Committee:

i.          noted the progress being made by BHCC towards completing due diligence on joining the Orbis Partnership; and

ii.         noted the current intention to make a recommendation to the Brighton and Hove City Council Policy, Resources & Growth Committee in October 2016.