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<p>The department has engaged regularly with Birmingham City Council, including in
recent months over the pressures it faces around its failed implementation of the
Oracle IT system and its unresolved equal pay liability. We have expressed serious
concern over the Council's governance arrangements, and, in April, I requested that
the Council commission an independent governance review, which will report on its
findings in the coming weeks. I have placed a copy of my correspondence from August
with the Leader of the Council in the Library of the House of Commons.</p><p>Councils
are responsible for their own financial management. The department stands ready to
speak to any council that has concerns about its ability to manage its finances. The
decision to issue a Section 114 report is a local one, taken by the statutory chief
finance officer.</p><p>In line with the practice of successive administration, details
of internal discussions are not normally disclosed.</p><p> </p>
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