To receive apologies for absence.

Apologies were received from Councillor JK Swinburne.

To receive any declarations of interest by Members in respect of items on this agenda.

(Councillors PA Andrews, SPA Daniels and PJ Edwards, declared a personal interest in agenda item 6: Final Revenue and Capital Outturn 2006/07 in relation to any potential contribution towards parks and countryside services by Hereford City Council.)

To approve and sign the Minutes of the meeting held on 30th March, 2007.

RESOLVED:              That the Minutes of the meeting held on 30th March, 2007 be             confirmed as a correct record and signed by the Chairman.

To consider suggestions from members of the public on issues the Committee could scrutinise in the future.

The Committee considered how the register of complaints might be used to identify issues for the Committee to investigate.  It was recognised that it was important to focus on any overall trends rather than being drawn into the detail of individual complaints.  The annual report on complaints would therefore be scrutinised to identify whether there were any such trends which merited investigation.

To report performance for the whole of the operating year 2006-07 against the Annual Operating Plan 2006-07, together with corporate risks.  The report also covers the full set of Best Value Performance Indicators (BVPIs) and the progress being made against the Council’s Overall Improvement Programme.

The Committee considered performance for the whole of the operating year 2006-07 against the Annual Operating Plan 2006-07, together with corporate risks. 

The report also covered the full set of Best Value Performance Indicators (BVPIs) and the progress being made against the Council’s Overall Improvement Programme.

The report to Cabinet on 7 June 2007 was appended to the report.

The Head of Policy and Performance presented the report.  He circulated a chart showing the Council’s scores under the Comprehensive Performance Assessment (CPA) in 2005 and 2006 and the target scores which had been set for 2009.  He said that the Council was not yet performing well enough nor could it demonstrate a pattern of continuous improvement.  The target scores for 2009 were designed to ensure that the Authority obtained a three star rating and was ranked as a Good authority under the CPA framework.

In response to a question he confirmed that the Authority’s CPA rating, was currently 3*.  However, this could be seen a  ‘protected’ position.  The Authority had been one of the first to be assessed under the CPA “harder test” regime in 2005 and has been rated 2* overall. Under the Audit Commission’s rules, it was entitled, like all the other authorities whose scores had dropped, to retain the higher rating attained under the 2002 CPA, until every authority had been assessed under the ‘harder test’. At that stage the Authority would have to have improved or drop to a 2* rating when all assessments were reconciled and new consistent ratings published.  Results of authorities under the “harder test” to date showed a mixed pattern with both improvements and reductions in ratings.

The Director of Corporate and Customer Services noted that the assessment regime was to change again to become a Comprehensive Area Assessment.  This would be a broader assessment of both the Council and its partners.  The new assessment framework would also place an emphasis on the public’s perception of performance.

Turning to the Integrated Performance Report the Head of Policy and Performance reported that of the full set of strategic performance indicators 33 were identified in the red category (not achieved or, where no end of year outturn had been reported, latest data indicated that the target would not be achieved). 

Of the Best Value Performance Indicators, 62% were improving and 27% deteriorating. 

The Government Office for the West Midlands (GOWM) had also confirmed that the Minister had decided that the GOWM-led improvement board for Children and Young People would continue to oversee the Council’s progress for the next six months.

The Head of Policy and Performance also highlighted the importance of performance against the indicators included in the Local Public Service Agreement (LPSA2G) and the Local Area Agreement (LAA).  He added that although performance had generally improved against the LPSAG2 targets 11 of 31 indicators were in the red category because the annual target had not been achieved.  In come cases whilst there had still been improvement this had been insufficient to achieve the  ...  view the full minutes text for item 5.

To consider the final revenue and capital budget outturn for 2006/07.

(Councillors PA Andrews, SPA Daniels and PJ Edwards, declared a personal interest in agenda item 6: Final Revenue and Capital Outturn 2006/07 in relation to Hereford City Council’s stated intention not to pay their contribution towards parks and countryside services.)

The Committee considered the final revenue and capital budget outturn for 2006/07.

The report to Cabinet on 7 June 2007 was appended to the report.

The Head of Financial Services presented the report.  He highlighted that the overall position was an underspend of £3.197m on the Council’s 2006/07 revenue account.  This was good news, improving the Council’s financial standing, one of the themes in the Audit Commission’s Use of Resources Assessment. 

He commented on some of the key variations between outturn and budget for each Directorate and the carry forwards approved by Cabinet in support of corporate priorities. 

He also commented on the level of the Council’s reserves and the establishment of new specific reserves.

The significant amount of slippage on the Capital Programme was also highlighted.

In the ensuing discussion the following principal points were made:

·         In reply to a question the Head of Financial Services confirmed that the £274,000 underspend on the Environment revenue budget had not been ringfenced.  The Director of Environment had decided that the whole sum should be added to the waste reserve.

·         Asked about the adequacy of the Adult and Community Services budget the Head of Financial Services commented on the significant pressures associated with residential placements as well as the service redesign work being undertaken from 2007/08 using the additional £2.7m budget allocation.  There would be a need to determine the overall position especially around the pooled budget arrangements with the Primary Care Trust under the Section 31 arrangements.

·         The underspending on school transport was discussed.  The Head of Financial Services said that savings had been achieved as a result of a review of school routes.  Further savings, although not as significant, were expected in 2007/08.  A Member expressed some concern about arrangements in North Herefordshire.

·         The Leader of the Council commented on the failure of the Government’s Comprehensive Spending Review to recognise the pressures on social care funding in contrast to its increased expenditure on the health service.  He suggested Members should encourage local Parish Councils to lobby MPs.

·         In presenting the report the Head of Financial Services had referred to the significant level of balances held by schools.  He had also noted that whilst revenue balances showed a reduction over the year, capital balances had increased significantly.  He had a concern that one reason for this might be because schools were seeking to avoid the revenue clawback rules the Council had indicated it would use if balances did not reduce.  It had also to be borne in mind that national funding rules did not permit balances transferred to capital to revert to revenue.  Some concern was expressed about the Council’s ability to clawback money from schools.  It was requested that it be established whether any other authorities were pursuing or had  ...  view the full minutes text for item 6.