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Leicestershire & Rutland Leicestershire & Rutland Association of Local Councils Annual Report of the Executive Committee 2018 (incorporating the 2017-18 accounts) LRALC, Jubilee Hall, Stadon Road, Anstey, Leicestershire, LE7 7AY Tel 0116 235 3800 Email [email protected] Website www.leicestershireandrutlandalc.gov.uk LRALC Executive Committee members Back row left to right: Cllr John Springthorpe (Vice Chairman), Cllr Tony Hirons, Cllr Gordon Brown, Cllr Ron Simpson Front row left to right: Cllr Gillian Hoult, Cllr Pat Crane, Cllr Guy Jackson (Chairman), Cllr Mary Sherwin, Cllr Sue Gerrard 2 Leicestershire & Rutland Association of Local Councils Annual Report 2017-18 Welcome to what will be the last report of the Executive Committee of the unincorporated Association that was the Leicestershire and Rutland Association of Local Councils. Future reports will originate from the Board of Directors of the newly formed (23rd April 2018) LRALC Ltd. The unincorporated LRALC is in the process of being wound up. Executive Committee members Two new Executive Committee members joined the Association in September 2017; Cllrs Gillian Hoult and Mary Sherwin representing North West Leicestershire and Hinckley & Bosworth respectively. The Association remains in a position where some LRALC Branch areas do not formally meet, which has resulted in the need for the LRALC Executive to appoint Executive Committee members for those Branch areas. Whilst this was constitutionally acceptable it was a far from ideal way for a member led organisation like LRALC to appoint those to govern the body. As such LRALC Ltd no longer includes branches in its democratic structures and governing document (its Articles of Incorporation) and instead is reintroducing the AGM where representatives from each council will appoint Directors and take other decisions. However, the Association still actively supports and encourages branch areas to meet and discuss matters of local interest, and under the new company structure each of the 7 branch areas have a directorship position reserved for them. The full list of Executive Committee members as at 31st March 2018 is detailed below, with additional committee memberships listed in brackets. Those marked in red ceased to be Executive Members on 22nd April on the eve of incorporation: Name Branch Guy Jackson (Chairman) (Investment Trustee) Blaby John Springthorpe (Vice-Chairman) (Investment Trustee) Blaby Betty Crick Charnwood Sue Gerrard Charnwood Tony Hirons (Investment Trustee) Harborough Stephen Bilbie Harborough Mary Sherwin Hinckley & Bosworth Pat Crane Hinckley & Bosworth Anne Dames Melton **Vacant** Melton Pat Thomas North West Leicestershire Gillian Hoult North West Leicestershire Ron Simpson (Investment Trustee) Rutland Gordon Brown Rutland 3 2017-18 Finances The Executive Committee set a deficit budget for 2017-18 but, due to a short delay in incorporation (originally due on 1st April) and upon the advice of our accountants, the year-end accounts attached to this report include substantial income (c£35,000) to 22nd April 2018. As such, the year end balances for 2017-18 are at the highest recorded level for several years (see graph on page 4). However, for the sake of comparison to previous years, the outturn at 31st March 2018 was a deficit was £14,567.30 but if we’d have received the LCC money it would have been £9,567.30. The Executive Committee, at its December 2017 meeting, agreed a planned deficit budget for the next three years (2018-21) to further progress the strategic growth of the incorporated company by creating a new post of Training and Advice Manager. A combined surplus of £45,546.39 generated between 2012-2017 allowed LRALC to invest in this expansion of staffing resource. The need for an increased staff resource was identified in an independent organisational review carried out in 2016 by LCPD from Hampshire. A Medium Term Financial Plan was adopted by the LRALC Executive in December 2017 which outlined the plan to return to a balanced budget. The contract with Leicestershire County Council continued during 2017-18 with a further £20,000 being received during the year from the County Council for specific agreed outcomes which LRALC met or exceeded (quarterly monitoring meetings are in place to ensure that the Association is delivering against the contracted outcomes). A renewed contract has recently been agreed for the period 2018-21. The continuation and expansion of our comprehensive range of training courses offered by the Association was a major factor in us delivering our sixth consecutive surplus. Delegate satisfaction remains high and the majority of the courses proved very popular, many selling out. As a result, the training income received during 2017-18 was, once again, slightly higher than expected. This is in line with an increase in demand from councils for specialist courses as the sector experiences continuing change and expanding powers. Training is now also being offered for local council operational staff, e.g. playground inspection training for grounds staff. The graph below illustrates the Association’s financial journey since 2005-06, with 2010- 12 being a period where several grants and other sources of external funding either reduced or ceased, resulting in the loss of a staff post in March 2012. However, with the return to surplus in 2012-13 and a dramatic increase in the proportion of self-generated income, even with the current deficit budget LRALC is in the most financially sustainable shape it has been for many years. 4 Investment of Reserves A total of £60,000 of LRALC’s reserves have previously been invested in a conservative Discretionary Fund Management portfolio. The closing balance of £68,904.01 shows unrealised gains of £1,263.85 during 2017-18. This figure includes investment charges of £351.47 which had been deducted. The investment is intended to be long term, i.e. it is not anticipated that any of the invested funds will be required for operational purposes indefinitely and would only be withdrawn if the investment were at risk. The Association is very happy with the level of return on this investment, but continues to monitor the investment through an Investment Trustee Committee to ensure the money in it is managed appropriately and prudently. Current membership Membership of the Association has increased slightly for the 2017-18 year. We welcomed four PC’s into membership; Garthorpe & Coston PC, Greetham PC, Illston on the Hill PC & Knossington and Cold Overton PC. Feedback from members remains extremely positive with the Association being seen to provide a much valued, professional service. 5 Requests for support and advice remain the “bread and butter” of the Association’s services and are increasing in complexity, scope, and urgency. Over the course of the year LRALC officers have responded to around 1000 individual enquiries from member councils. Some of the queries were simple questions and others, as always, were more complicated and required more detailed and comprehensive assistance. The ongoing supplementary legal and HR support offered by Roger Taylor of Wellers Hedleys and Chris Moses of Personnel and Advice Solutions remain a valuable source of support and advice for LRALC member councils, and the new provision of a VAT advice service commissioned by LRALC with The Parkinson Partnership, headed by Steve Parkinson, whom many of you will know from his previous role as the SLCC’s VAT adviser. LRALC Strategic Plan 2017-20 During 2016-17 the Association developed its second Strategic Plan. Progress is moving ahead at a steady pace with many of the objectives being either in place or firmly in the development stage, i.e. the LRALC Internal Audit Service and the Councillor mentoring Scheme. NALC Cllr John Springthorpe continued to represent our membership at National level and is the Association’s National Council member at NALC. Federation of East Midlands Associations of Local Councils (FEMALC) FEMALC is a constituted grouping of County Associations (CALCs) comprising Derbyshire, Nottinghamshire, Lincolnshire, Leicestershire and Rutland and Northamptonshire and was created in 1999. Together these Associations represent some 1,054 town and parish councils throughout the region with an electorate of some 1.3 million. The LRALC representative on FEMALC is Cllr John Springthorpe who represents member councils at regional level. The LRALC Chairman and Chief Officer are the nominated FEMALC representatives to attend meetings of East Midlands Councils (EMC); EMC represents the interests of councils in the East Midlands to Government and national organisations. Training Core training (delivered by LRALC officers) for councillors and clerks remained a key priority with most planned training courses being very well attended. During the year 14 councillor sessions were run with approximately 157 members receiving training. These included Councillor’s and Chairman’s courses. We have also seen an increase in requests for in-house councillor training and the new hour long briefing session covering the Framework for Councillor’s Conduct and Interests has proven very popular too and will be extended to cover a range of other topics suitable for a 1-hour briefing. Alongside this training for elected members LRALC officers also delivered 6 core training sessions primarily aimed at Clerks which comprised a combined 57 bookings taken for Clerks 1, 2 and 3 training. Core training courses will continue to be developed and delivered by the Association in line with demand
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