Why is there a £17k to £19k discrepancy in allowances and expenses for councillors on Merseyside Fire and Rescue Authority?

Why is there a £17k to £19k discrepancy in allowances and expenses for councillors on Merseyside Fire and Rescue Authority?

Why is there a £17k to £19k discrepancy in allowances and expenses for councillors on Merseyside Fire and Rescue Authority?

                                                           

Current Chair of the Audit Sub Committee Cllr Denise Roberts is in the foreground of this photo from 27th November 2014 Background L to R former DCE Kieran Timmins  DCFO Phil Garrigan and councillor
Current Chair of the Audit Sub Committee Cllr Denise Roberts is in the foreground of this photo from 27th November 2014 Background L to R former DCE Kieran Timmins DCFO Phil Garrigan and councillor

There’s a discrepancy I’ve spotted. In the papers for the Merseyside Fire and Rescue Authority Policy and Resources Committee that meets on the 17th September 2015. There is a note in the Statement of Accounts (note 29) on page 59. It’s short so I’ll quote it below as it’s mainly information in a table.

29. Members’ Allowances

The Authority comprises of 18 councillors from the 5 districts of Merseyside. The total allowances paid to members within the year were:

  2014/15 2013/14
£000 £000
Allowances 225 239
Expenses 14 23
239 262

As you can see from the table above, for 2014/15 the total allowances paid to councillors is £225,000 and the total expenses for 2014/15 to councillors £14,000. The total for these two figures is £239,000.

On June 11th the Merseyside Fire & Rescue Authority met, agenda item 9 was Members Allowance Payments 2014/15. This agenda item contained a table detailing payments to councillors for 2014/15.

The total allowances detailed in that table for 2014/15 are £143,242.50 + £16,140 + £24,210.00 + £1.345.00 + £8,070.00 + £11,939.57 + £6,053.04 + £2,690.33 = £213,690.44

However £213,690.44 does not equal £225,000!

The difference is £11,309.56 +-£500!

The total expenses detailed in that table are £1,338.45 + £4,175.84 + £2,194.05 = £7,708.34

Again £7,708.34 does not equal £14,000.

This difference is £6,291.66 +-£500!

The two differences add up to a grand total of £17,601.22 +-£1000.

As the figures in the statement of accounts are rounded to the nearest £1000, this could be any figure between £16,601.22 and £18,601.20.

On the expenses side I can make an educated guess that the expenses paid directly by Merseyside Fire and Rescue Authority that are detailed on the 49 pages of expenses here for councillors weren’t in June being properly coded. Page 2 of a letter from Janet Henshaw states that this amount estimated at between £5,700 and £6,700 wasn’t being coded to each councillor as it would require going through approximately 12 monthly invoices and coding expenditure to 18 councillors (which is classed as a “wholly unreasonable use of scarce resources”).

I’ve totted up amounts in the first twenty-four pages and they total £3,068.04. Assuming the other pages are for broadly similar amounts that would make the total in the ballpark figure of £6,136.08 (which is within the range of £6,291.66 +-£500).

However I’m still at a loss as to why there’s a ~£11,309.56+-£500 difference on allowances for 2014/15!

Perhaps I should ask the auditor Grant Thornton what’s going on and also raise it with the councillors and officers?

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Why did Wirral Council include Ian Coleman as a whistleblowing contact in the Passenger Transport Contract?

Why did Wirral Council include Ian Coleman as a whistleblowing contact in the Passenger Transport Contract?

Why did Wirral Council include Ian Coleman as a whistleblowing contact in the Passenger Transport Contract?

                                                 

Here is my first question to Wirral Council’s auditor (Grant Thornton) about the Passenger Transport Contract.


Wirral Council has a contract with Eye Cab Limited called the "Passenger Transport Contract". This contract started on the 1st September 2014 and runs to the 31st August 2015 and is for the provision of taxi services.

I requested to inspect a copy of the contract (see Audit Commission Act s.15(1)(a)) which was arranged for the 4th September 2015. As a local government elector for the Wirral area, I can question the auditor about the 2014/15 accounts from 9.30am on the 18th August 2015 until the accounts are closed (see Audit Commission Act 1998 s.15(2)).

Page 36 of the contract has a section titled &quotSection 5 CONFIDENTIAL COMPLAINTS PROCEDURE (Whistle-blowing) A Guide for Suppliers and Contractors (see attached page 36).

Passenger Transport Contract Wirral Council page 36 of 40 thubmnail
Passenger Transport Contract Wirral Council page 36 of 40

At the bottom of this page of the contract it details two people that a complaint under the whistleblowing procedure can be made to.

The second of these individuals is:

"Ian Coleman, Director of Finance, Wirral Borough Council, Finance Department, Treasury Building, Cleveland Street, Birkenhead, Merseyside, CH41 6BU"

Wirral Council’s Employment and Appointments Committee agreed early voluntary retirement for Ian Coleman on the 3rd October 2012 (see attached minutes).

Therefore as Ian Coleman was not an employee of Wirral Council at the time the Passenger Transport Contract was put out to tender (or when the contract was agreed) why was he included as a whistleblowing contact in the contract?

Yours sincerely,

John Brace

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Graham Burgess (Chief Executive) announces he will retire from Wirral Council on 31st December 2014

Graham Burgess (Chief Executive) announces he will retire from Wirral Council on 31st December 2014

Graham Burgess (Chief Executive) announces he will retire from Wirral Council on 31st December 2014

                                                      

graham_burgess

Above is Graham Burgess in July 2012 at the Council meeting that chose him as Chief Executive

Below is the text of a media release issued by Wirral Council and distributed by David Armstrong, Assistant Chief Executive to those at the Cabinet meeting this evening. Usually I don’t just reprint press releases, but as it’s late and it’s newsworthy I think people had better know.

===================================================================================================================

(Wirral Council logo)

MEDIA RELEASE FROM WIRRAL COUNCIL

October 9, 2014

Wirral Council Chief Executive, Graham Burgess announces his retirement

Wirral Council Chief Executive Graham Burgess informed tonight’s meeting of Wirral’s Cabinet that he is to retire on December 31, 2014.

Graham officially joined Wirral Council in September 2012. Previous to that, he had been Chief Executive of Blackburn with Darwen Borough Council, and remains a leading figure in the Local Government Association (LGA).

He said: ‘When I took up post, I said that first and foremost, my role was to help shape the transformation of Wirral. Wirral is now a very different place to when I arrived, and I feel now is the right time to hand over to let the next phase of this work begin.

‘I have enjoyed the opportunity to work with the organisations and communities that make Wirral a special place, and I will continue to take a strong interest in the borough’s future. I would like to thank the people I have worked with, including residents, Councillors, and staff for their hard work. There are many excellent people working for Wirral and I wish them every success as they take the authority forward.’

Councillor Phil Davies, Leader of Wirral Council today paid tribute: ‘Graham joined us at a very difficult time and has been a positive and transformational catalyst for change. I would like to thank him for galvanising a collective will to move forward positively and constructively.

‘I am sad to see him go. We have been a good partnership forged by a shared appetite for change and innovation. However. we will continue the positive progress already made, and look forward to choosing a new Chief Executive to continue to take us forward into the next phase.’

Before joining Wirral Council on a full-time basis, Graham had spent a considerable amount of time in Wirral, including as a member of the Council’s LGA-led Improvement Board.

Graham, who was born in and lives in Liverpool, was previously Chief Executive of Blackburn with Darwen Borough Council. He began working for Wirral Council as part of the LGA Improvement Board, after series of external reports highlighted major weaknesses in the authority.

Since taking up the post of Chief Executive on an interim basis, then later being permanently appointed to the role, Wirral has been selected as one of nine authorities to participate in the Public Services Transformation Network.

The Council’s improvement has also been named by the LGA as being the fastest turnaround of any Council in the country, and is held up by the LGA as an example of best practice.

Since Graham joined the authority, Wirral has made significant progress in managing the financial risks and challenges it faces. An independent ‘Value for Money,’ report, compiled by auditors Grant Thornton, and published in September, also found that Wirral had made significant progress in managing the financial risks and challenges it faces.

Ends

Follow Wirral Council on Twitter: www.twitter.com/WirralCouncil

For further information contact Gill Gwatkin, Press and PR Officer, Wirral Council, 0151 691 8360.

===================================================================================================================

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Expense claim forms for Councillor John Hale (Wirral Council) 2013 to 2014

Expense claim forms for Councillor John Hale (Wirral Council) 2013 to 2014

Expense claim forms for Councillor John Hale (Wirral Council) 2013 to 2014

                                                   

Carrying on with the series of councillor’s expense claim forms we get to councillors whose surnames begin with H and the first one of those is Councillor John Hale. Councillor John Hale is a Conservative Party councillor for the ward of Hoylake and Meols (that’s the name of one ward not two different wards). He’s been a councillor since 1975 and according to Wirral Council’s website apart from a few months in 1999 has been a councillor for nearly all that time.

He’s one of Wirral Council’s representatives on the Merseyside Police and Crime Panel who earlier this year banned filming at one of their meetings in Birkenhead Town Hall. The Merseyside Police and Crime Panel most recent meeting on September 4th 2014 could be filmed (however we weren’t at it). I will however point out that Councillor John Hale was a member of the Merseyside Police and Crime Panel but wasn’t present at the meeting of 24th April 2014 when that filming decision was made by Councillors Frank Prendergast (Everton, Liverpool City Council (Labour)), Peter Brennan (Old Swan, Liverpool City Council (Labour)), Doreen Kerrigan (Linacre, Sefton Metropolitan Borough Council (Labour)) and Moira McLaughlin (Rock Ferry, Metropolitan Borough of Wirral (Labour)).

However in a cunning move the “powers that be” (Knowsley is the host authority for the Merseyside Police and Crime Panel), made sure that future meetings of the Merseyside Police and Crime Panel are now held in Huyton (reason given was “cost grounds” at the public meeting I wasn’t allowed to film earlier this year) which when you consider this increases the costs of many councillors’ expenses claims travelling there, Office of the Police and Crime Commissioner’s staff travel costs etc it would seem to be a rather spurious claim as although Knowsley said they could get their own Council Chamber for “free”, it’ll still form part of the administrative costs I’m sure they’ll claim back from the Home Office.

It seems a common theme that the increased costs of doing things differently are never brought up in a public meeting (which let’s face it in many places are run for the convenience of officers and councillors not the “public” who often aren’t even there) just the supposed “savings”. After all Knowsley officers had a very long briefing (in private) with the four councillors before the meeting started and one can only guess (from what was during the public meeting that they wouldn’t allow to be filmed which is a decision that didn’t even make the official minutes) that the officers persuaded them to hold future public meetings where officers work (therefore Knowsley officers wouldn’t have to travel much to different bits of Merseyside but the many people on the Panel, whether independent members or councillors, Office of the Police and Crime Commissioner’s staff and everyone else going to this meeting would have to travel further) and not holding it at a more central place in Merseyside. I assume it’s Wirral Council paying these travel costs (for its councillors on the Panel) because nobody has ever told me whether these expenses are recharged back to Knowsley (as the host authority).

What however is interesting to note is that Knowsley Council received £53,000 in 2013/14 for the administration costs of the Merseyside Police and Crime Panel and £11,040 for those on it (which is up to £920 per panel member for expenses) from the Home Office.

Maybe Knowsley think the room hire cost for Birkenhead Town Hall is just too extortionate when you consider Knowsley are only receiving a paltry £53,000 from the Home Office!

However peering into the murk of Wirral Council councillor’s expense claims, it’s now unclear whether Councillor John Hale’s expense claim to Wirral Council for travelling to the Merseyside Police and Crime Panel are (or have been) recharged back to the host authority Knowsley or not. Certainly if Knowsley is getting “up to £920 per member for expenses” it would seem terribly unfair for Wirral residents to be footing the bill through both national and local taxes whilst Knowsley gets the money. It’s something I’ll have to ask Wirral Council’s auditor Grant Thornton about though as I’m unsure.

Its predecessor body (before the Police and Crime Commissioner elections in November 2012) the Merseyside Police Authority met in Liverpool City Centre. However from what I remember the new Police and Crime Commissioner Jane Kennedy as far as I know decided that the building the Merseyside Police Authority used to meet in wasn’t needed. Public meetings involving the Merseyside Police now happen in a variety of different locations.

Huyton, from a historical perspective is part of Lancashire and we both half wondered if this came about because in Birkenhead Town Hall (whilst waiting for the briefing to finish) we both said in earshot of a Knowsley Borough Council employee that if they had the Merseyside Police and Crime Panel as far away as Huyton that we probably wouldn’t be able to get to its public meetings.

This is just one aspect of his expenses claim though but if expenses aren’t currently being recharged back to Knowsley it may represent a small saving to Wirral Council if it was. It’s certainly a question I should ask of Wirral Council’s auditors.

Below are Councillor John Hale’s expense claim forms.

Cllr John Hale expenses claim 2013 2014 page 1
Cllr John Hale expenses claim 2013 2014 page 1
Cllr John Hale expenses claim 2013 2014 page 2
Cllr John Hale expenses claim 2013 2014 page 2
https://johnbrace.files.wordpress.com/2014/09/cllr-john-hale-expenses-claim-2013-2014-page-3.jpg
https://johnbrace.files.wordpress.com/2014/09/cllr-john-hale-expenses-claim-2013-2014-page-3.jpg
Cllr John Hale expenses claim 2013 2014 page 4
Cllr John Hale expenses claim 2013 2014 page 4
Cllr John Hale expenses claim 2013 2014 page 5
Cllr John Hale expenses claim 2013 2014 page 5

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REVEALED: Grant Thornton’s previously secret £50,0000 report into how Wirral Council played the regeneration game

REVEALED: Grant Thornton’s previously secret £50,0000 report into how Wirral Council played the regeneration game

REVEALED: Grant Thornton’s previously secret £50,0000 report into how Wirral Council played the regeneration game

                          

If there’s somethin’ strange in your neighborhood
Who ya gonna call (Grant Thornton)
If it’s somethin’ weird and it won’t look good
Who ya gonna call (Grant Thornton)

Yes, my challenge for today is “making accountants sound interesting” (wish me luck)!

So where to start this tale that has about as much twists, turns and complexity as a Dan Brown thriller? Well in order to keep your attention and not send you to sleep I’ll be comparing what happened to far more exciting things (as this blog isn’t called “101 fascinating tales of bean counting”).

Wirral Council paid a company called Enterprise Solutions (NW) Limited approximately a million pounds for work done on a program called ISUS (a program to support businesses). It also paid them for work on another scheme called BIG (a business grants program). However something had gone wrong so Wirral Council sent in a crack team of accountants from Grant Thornton to investigate.

Grant Thornton as Ghostbusters
This blog has no file photo of Grant Thornton’s crack team of accountants, so using perhaps more artistic licence than is necessary this is the blogger’s impression of them (from the film Ghostbusters) (although being accountants they were probably wearing suits instead).

This intrepid team (who were paid ~£50,000 for all this) went to interview the whistleblowers who worked for Enterprise Solutions (NW) Limited to find out what had happened. As Enterprise Solutions (NW) Ltd is an absurdly long name that takes forever to type I will from now on instead be calling them the USS Enterprise instead.

There was trouble on the USS Enterprise and the whistleblowers said (this is a summary of hundreds of page of a report) that the “the engines cannae’ take it anymore”. Money was being fed into the USS Enterprise’s engines from Wirral Council. Its mission was to seek out new businesses and boldly help them (in the form of grants and other assistance). However the whistleblowers knew that thing were going very wrong and detailed the who, what, where, why and when.

The crack team from Grant Thornton heard what the whistleblowers had to say and then tried to investigate what had happened. They even went to the USS Enterprise to investigate further and spent three days there.

However, someone senior on the USS Enterprise heard about this and perhaps frightened that they might find something that would lead to a court-martial prevented Grant Thornton from setting foot on the ship ever again. This was despite the contract between Wirral Council and the USS Enterprise stating that Wirral Council could have access to their “accounts and records” (although there’s a long running controversy as to whether this contract was ever signed). This didn’t however deter (much) the crack team of accountants who then wrote (as best they could) reports on both the BIG and ISUS programs.

These reports went to Wirral Council, who then refused to publish them, giving the reason that they had referred some of the matters in it to the Merseyside Police. They felt that publishing it would prejudice any potential future criminal prosecutions (but there are also others that felt this was an extremely convenient excuse to prevent Wirral Council being embarrassed by what Grant Thornton had discovered).

A long, long time later the Merseyside Police got back in touch with Wirral Council with a letter that can be summed up by we can’t charge or ask the CPS to prosecute people in this matter as the police had been denied access to key evidence they’d need.

So then Wirral Council convened a special meeting of its Audit and Risk Management Committee to discuss the whole matter.

That is it in a nutshell (leaving an awful lot out too). The detailed nature of what the whistleblowers alleged is far beyond a few hundred words I have here to do justice to and I’m sure will be discussed next Tuesday evening at a special meeting of the Audit and Risk Management Committee.

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