Podcast transcript

This is Anne McCubbin talking with John Baillie, Chair of the Accounts Commission about our latest follow up report on Best Value at Aberdeen City Council (July 2009). 

Now, John, looking back we had a public hearing at this council last year didn’t we? This followed an audit report from Audit Scotland that was really very critical of the council. Then the Commission released its findings and also identified serious problems at this council and recommended that the council seek external assistance.

You also asked for a follow up report in 12 months’ time. And so that’s what we’ve had from Audit Scotland and we’re now in a position that you have your latest findings.

What are those findings, what do they say?

We commend Aberdeen City Council on the progress it has made. Since 2008 there has been prompt and decisive action taken. Now, inevitably, there is still much to do, but the council now has a very promising base for further improvement.

You referred to ‘prompt and decisive action taken by the council’ there. What’s actually happened? What have they done?

We particularly welcome the steps taken by the council to establish new management structures and a new senior management team. There are early signs of change in organisational attitudes and progress in implementing a new system of performance management. 

And we’re also pleased that the council has started to improve its budget setting. 

These changes all took place against a backcloth of the formation of a leadership board, which was supported by an expert support panel of peers, both members and officers.

So what role did the external support panel have here?

It’s important to bear in mind that the external support group was one of several steps that the council took. And the effort and the work that the council put in to improving things needs to be recognised. That of course was in part due to the strong all-party leadership board, as well as the external support group.

The actual support group itself was made up of colleagues from other parts of the local authority community around Scotland and they were there to help and advise the council on what steps it should take. 

You’re pleased with the progress so far, but are there things that still need to be tackled and that still need to improve?

The council is aware it needs to build on these improvements and ensure progress is made as quickly as possible. 

It is particularly crucial to establish strong financial management and monitoring to enable the council to address the serious financial position it faces. And of course that is the more challenging given the recession on the one hand and on the other hand the financial pressures that Aberdeen City, and indeed all councils, are facing. 

Just following up on your point there about financial management, last year you had real concerns about the council’s approach to its finances. Have things improved at all?

The council has started to improve its budget setting and its budget monitoring. It is of course still early days, but they are underway with that.

The other aspect of that is that the systems of performance management have also been improved and that is about both measuring the performance and the delivery of services, and also the cost of these services.

So, just summing up on the financial management…?

They’ve started a significant process of improvement in their financial management. 

So, we’ve got your findings today. What happens next?

We continue to monitor progress at Aberdeen City Council, using the local external auditors. And, secondly, we have the financial statements of all councils, including Aberdeen City Council, due to come to us shortly. These financial statements are for the year ended 31 March 2009, and we will be very interested in what they have to tell us. 

Finally, what can local people take from your findings today?

Local people can be encouraged by the progress so far. It is important however to stress the seriousness of the financial position of the council, and that is the more challenging given the recession and the financial pressures that all councils are facing. So it means that the council does need to maintain both its focus and its momentum for improvement to achieve even more. 

John, thanks very much.