Governance of LDL

James Marshall made this Freedom of Information request to Liverpool City Council

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Gwrthodwyd y cais gan Liverpool City Council.

Dear Liverpool City Council,

I am studying Public Administration, with a view towards a management career in local government. I am researching the governance of public sector outsourcing, and I have chosen to make a specific study of the Liverpool Direct contract, because it has a number of unusual features.

Under the Freedom of Information Act, please provide the following :

1. A copy of the LDL contract documentation, including Terms and Conditions, schedules, Joint Venture Agreement. I accept that commercially sensitive details such as pricing may be redacted

2. A copy of the Council's documentation which details the governance arrangements surrounding this contract. I assume that you provide policy guidance to officers to avoid conflicts of interest

3. A copy of the last 3 years' financial records for the joint venture. I am particularly interested in understanding how the joint venture benefits the Council, so any detail showing profit-sharing over the past 3 years would be particularly beneficial.

Thank you.

Yours faithfully,

James Marshall

Jawahier Sharif Ali, Liverpool City Council

Dear Mr Marshall,

Acknowledgement of your request for information.
Thank you for your recent correspondence requesting information from the
City Council.  Your request was received in our offices on 02 July 2012
and, is being processed in accordance with the Freedom of Information Act
2000.

The information you have requested can be summarised as follows:

1. A copy of the LDL contract documentation, including Terms and
Conditions, schedules, Joint Venture Agreement. I accept that commercially
sensitive details such as pricing may be redacted

2. A copy of the Council's documentation which details the governance
arrangements surrounding this contract. I assume that you provide policy
guidance to officers to avoid conflicts of interest

3. A copy of the last 3 years' financial records for the joint venture. I
am particularly interested in understanding how the
joint venture benefits the Council, so any detail showing profit-sharing
over the past 3 years would be particularly
beneficial.

If the above summary is incorrect or you wish to change any details, let
me know at the earliest opportunity.

A response will be sent to you as soon as possible and in any case within
the statutory deadline which is 20 working days from the working day after
your request was received.

For your information, the Act defines a number of exemptions which may
prevent the release of information you have requested. There will be an
assessment and, if any of the exemption categories apply, the information
will not be provided to you.  You will be informed if this is the case

Please quote the above reference number in all future communications.

Regards 
Jawahier Sharif Ali (Fatima)
Information Officer
Legal Service
Liverpool City Council
Municipal Buildings
Dale Street,
Liverpool
L2 2DH
Tel: 0151 225 3132
Email: [1][email address].uk 
Website: [2]www.liverpool.gov.uk

P  Please consider the environment before printing this email. Thank you

dangos adrannau a ddyfynnir

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Dear Liverpool City Council,

I recently submitted a FOI request, which may be viewed at the following address :

http://www.whatdotheyknow.com/request/12...

By law, this should have been answered within 20 working days or refused, with an appropriate exemption stated. Neither took place - the request appears to be in limbo.

Please respond at your earliest convenience. I have taken advice from my head of department, and will write to the ICO in 5 working days if I have not received a satisfactory response.

Yours faithfully,

James Marshall

Kevin Symm, Liverpool City Council

1 Atodiad

Please find attached response
Regards,

Kevin Symm I Senior Information Officer
Liverpool City Council I Municipal Buildings I Dale Street I Liverpool I
L2 2DH
T: 0151 225 3132 I E: [1][email address]
Online: [2]www.liverpool.gov.uk

dangos adrannau a ddyfynnir

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http://www.liverpool.gov.uk/

Gadawodd Denise Simmons anodiad ()

The Council is being somewhat economical with the facts in response to your third point. Section 7.3.2 of the JVA states clearly "the company shall provide each shareholder within 10 busines days of the end of each 3 month period with unaudited management accounts, including a profit and loss account, balance sheet and cashflow for a 12 month period."

LCC as a shareholder is therefore entitled to receive this information, either it doesnt and therefore LDL is in breach of contract, or it does and does not retain the information which suggests incredibly poor financial management of public accounts.

I would suggest you try and ask for this information again on the basis of the information received from LDL to LCC in line with the JV agreement

Dear Liverpool City Council,

You have partially answered an FOI request which I submitted. I note that this partial response was later than the statutory deadline.

The original question can be viewed at the following address :

http://www.whatdotheyknow.com/request/go...

You responded as follows :

"Response:

The City Council can confirm that it holds some but not all of the information you have requested. However, we can provide the following:

1. Section 21 of the Freedom of Information Act states that public authorities do not have to provide information to applicants where it is reasonably accessible to an applicant by other means. The Council holds information which is caught by your request but believes that in this case the information you have requested is reasonably accessible to you by other means, specifically the following link:
http://files.whatdotheyknow.com/request/...

2. This is contained within the body of the contract

3. Liverpool City Council does not hold this information; this information may be held by BT/Liverpool Direct Limited. However as they are not subject to FOIA there is no requirement for them to provide this information.

As we have not provided all of the information you have requested we are required to serve you with a section 17 notice, please treat the following as such"

Point 3 is unacceptable. I have looked through the material which you kindly provided in response to question 1, and would note the following statements in the Joint Venture Agreement :

. . . the Company shall :

7.3.2 provide each Shareholder within 10 Business Days of the end of the 3 month period ("quarter") ending on 30 June, 30 September, 31 December and 31 March in each year, with unaudited management accounts for such quarter in a form and content acceptable to the Shareholders including a profit and loss account and balance sheet for the period ending on that quarter and a cashflow forecast for of 12 months from the end of each quarter;

7.5 The "B" Shareholder will, not later than 30 days before the beginning of each Financial Year of the Company, consider and seek to approve the relevant draft profit and loss account budget, cashflow projections and balance sheet forecast and the proposed draft Business Plan and shall forthwith supply a copy of the documents to the "A" Shareholder once the same have been approved by the "B" Shareholder

It follows that the Council must hold the information requested by myself in my question 3. You must be mistaken in stating that this information is not held. Please answer question 3. I would remind you that the Council is now significantly overdue in its response.

Yours faithfully,

James Marshall

Information Requests, Liverpool City Council

Dear Mr Marshall,
 
Thank you for your email. I confirm that we now re-opened your case for
review and the matter will be dealt with by an officer who was not
previously involved with the response.
 
Regards,
 
Jawahier Sharif Ali (Fatima) I Information Officer
Liverpool City Council I Municipal Buildings I Dale Street I Liverpool I
L2 2DH
T: 0151 225 3132 I F: 0151 225 2392 I E:
[email address]
Online: [1]www.liverpool.gov.uk
 
 
 
 

dangos adrannau a ddyfynnir

Kevin Symm, Liverpool City Council

2 Atodiad

Please find attached response
Regards,

Kevin Symm I Senior Information Officer
Liverpool City Council I Municipal Buildings I Dale Street I Liverpool I
L2 2DH
T: 0151 225 3132 I E: [1][email address]
Online: [2]www.liverpool.gov.uk 

dangos adrannau a ddyfynnir

References

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mailto:[email address]
2. http://www.liverpool.gov.uk/
http://www.liverpool.gov.uk/

Dear Mr Kevin,

I reproduce the relevant portion of your response below :

"• Point 3 is unacceptable. I have looked through the material which you kindly provided in response to question 1, and would note the following statements in the Joint Venture Agreement:

. . . the Company shall:

7.3.2 provide each Shareholder within 10 Business Days of the end of the 3 month period ("quarter") ending on 30 June, 30 September, 31 December and 31 March in each year, with unaudited management accounts for such quarter in a form and content acceptable to the Shareholders including a profit and loss account and balance sheet for the period ending on that quarter and a cashflow forecast for of 12 months from the end of each quarter;

7.5 The "B" Shareholder will, not later than 30 days before the beginning of each Financial Year of the Company, consider and seek to approve the relevant draft profit and loss account budget, cashflow projections and balance sheet forecast and the proposed draft Business Plan and shall forthwith supply a copy of the documents to the "A" Shareholder once the same have been approved by the "B" Shareholder

It follows that the Council must hold the information requested by myself in my question 3. You must be mistaken in stating that this information is not held. Please answer question 3.

In order to provide a response to your original request I have revisited our original response and liaised with colleagues. I can now confirm the following in response to your correspondence above:

• The City Council maintains its position that it does not hold the information requested. However, further investigation has confirmed that Liverpool Direct Limited’s annual report to the City Council contains an extract from LDL’s full accounts. This can be accessed via the following link:
http://www.liverpooldirectlimited.co.uk/...

The relevant information is contained from page 38 onwards.

The full accounts can be accessed via http://wck2.companieshouse.gov.uk/6ed4b4...

In light of this I can confirm that the City Council acknowledges it should have provided more information in its original response.

As I have now reviewed your original response, you have exhausted the Council’s appeals process for the purposes of this request"

Providing me with a copy of a marketing document produced by LDL and pointing me to LDL's published accounts is not an answer to Q3. I would particularly highlight the rather obvious fact that LDL's accounts do not show any third party business whatsoever - if these accounts are a true record, then LDL only carries out the Liverpool City Council IT contract and does no other work. This is at odds with the information in the marketing leaflet you sent me, and also with the content of the LDL and LCC websites, both of which claim that LDL undertakes work for third parties.

What you are saying is that BT has never honoured these specific aspects of its contractual obligations, and that the Council has never successfully enforced them.

Yours sincerely,

James Marshall

Gadawodd Katie M. anodiad ()

The response to question 2 is ambiguous.
The question was clearly asking about the corporate governance of the company. The answer states that the governance arrangements are in the "contract"
Does this mean the JVA, which sets out the detailed governance arrangements, or are they referring to the arrangements set out in the SLA between LDL and the Council for managing and monitoring performance of the services provided under the SLA?
If they're referring to the JVA, then they need to explain how they have implemented these, and if they are not, then they need to provide some proper information on the corporate governance arrangements. Because the SLA does not cover them.