Agenda item

That the Committee welcome greater flexibility at a local level and to consider the inclusion of the provision for alternative arrangements on paying-in and obtaining cash in the bank tender.

The Finance Manager - Technical Accountancy introduced the progress report on preparations to tender the Council’s banking arrangements as the current contract was due to expire in May 2014.  She provided details of the method used for tendering and explained that delays had been incurred in the tender exercise being carried out by Eastern Shires Purchasing Organisation meant that arrangements with the current provider, Nat West, would continue on a monthly rolling basis until the new contract was in place, thus avoiding any risk from loss of service provision to the Council.

A cross-directorate group of senior officers had been established to consider future banking requirements for all Council establishments in a wider context, along with more efficient and modern methods of dealing with petty cash.  However, it was recognised that due to the increasing number of bank branch closures across the UK, it was likely that this could have an impact on the Council during the course of the three year banking contract.

Councillor Ian Roberts explained that the issue had arisen as a result of the closure of one third of Nat West branches in Flintshire and that no prior warning of this had caused inconvenience for schools using these services, resulting in alternative services being put in place.  On consideration of the handling of petty cash, he felt that the use of other local banking facilities, including post offices, would be more convenient to schools, particularly those sited in villages.  He went on to say that the contract for the Council’s banking services should include provision for branch presence in the county.

The Finance Manager agreed but pointed out the cost implications of dealing with cash as opposed to more modern methods.  She added that consideration could be given to including criteria within the contract to ensure that the Council was notified in advance of any branch closures.

Mr. Paul Williams said that split banking arrangements could be considered including use of building societies and suggested that the regular ‘bullion’ run could be utilised to include any cash collected by schools.

In response to questions from Councillor Tim Newhouse, the Finance Manager was unable to give an accurate date when the new arrangements would be in place but would provide a separate response to the Committee on the value of the bank contract.

In reference to earlier comments from Councillor Roberts, Councillor Glyn Banks said that it may be useful for the successful bank tenderer to agree to a paying-in system in post offices.

Following comments from Councillor Arnold Woolley on the Government’s drive for schools to use cashless systems for school meal payments, Councillor Roberts said that this was not the case for smaller rural schools and that the cost implications of investing in such facilities at all schools would be significant.  While acknowledging the need to modernise ways of working, he felt it was reasonable to expect banks to change their practices for the convenience of all.  Councillor Roberts made a proposal to welcome greater flexibility at a local level and to consider the inclusion of the provision for alternative arrangements on paying-in and obtaining cash as part of the bank tender.  This was seconded by the Chair and on being put to the vote, was carried.

RESOLVED:

That the Committee welcome greater flexibility at a local level and to consider the inclusion of the provision for alternative arrangements on paying-in and obtaining cash in the bank tender.