Issue - meetings

At a previous meeting the Audit & Governance Committee requested clarity and update on Surrey Highway progress in realising projected Project Horizon Savings, and to ensure that a process is in place for the financial transfer of savings to Surrey County Council (SCC). This was highlighted in the 2014 Audit Report and in the resulting Management Action Plan.

Declarations of interest:

None.

Witnesses:

Jane Young, Carriageway Team Leader

David Harmer, Chairman of Economic Prosperity, Environment and Highways Board

Key points raised during the discussion:

1.    The Carriageway Team Leader introduced the report.

2.    The Chairman asked why it had taken so long to get the payments transferred.  The Carriageway Team Leader explained that it takes some to get tickets in and review them to finalise material tonnages.  It had been agreed now to do this quarterly and this had been diarised with the Kier team. 

3.    In response to a question about underperformance clawbacks, the Carriageway Team Leader explained that there are Key Performance Indicators in place and underperformance against these can affect monthly profits.  However, this has not been an issue.

4.    The Carriageway Team Leader agreed with Members that access to the Chertsey Depot was not easy and informed them that discussions were underway with Property Services to make it easier for aggregate industries to access the depot. 

5.    The Carriageway Team Leader explained the process for extraction and use of tar from roads.  The amount of tar being found in roads was normal for the age of the roads and the Council has a duty to deal with it as a contaminant.

6.    Concern was expressed that planning permission was not fully in place for the site at Hithermoor.  The Carriageway Team Leader assured the committee that conversations were taking place with the Planning Service.

7.    The Carriageway Team Leader confirmed that a further payment of £150,000 was anticipated in the December bill batch.  The rest of the savings would be part of the opportunity pot.

8.    The Carriageway Team Leader explained that chemical testing of materials on lorries was undertaken to prevent fraudulent activity.

9.    The Chairman of Economic Prosperity, Environment and Highways Board agreed that there were risks in any project of this nature but that all due diligence had been undertaken.  He suggested that the service could only be vigilant to try and prevent fraudulent activity.  He assured the committee that his Board was able to keep supplier performance under review through regular Member Reference Group meetings. 

Action/Further information to note:

None.

RESOLVED:

The committee NOTED the report.