To report performance to the end of July 2007 against the Annual Operating Plan 2007-08, national performance indicators used externally to measure the performance of the council, together with performance against revenue and capital budgets and corporate risks, and remedial action to address areas of under-performance. 

The Committee considered the Integrated Performance Report (IPR) on performance to the end of July 2007 against the Annual Operating Plan 2007-08, national performance indicators used externally to measure the performance of the council, together with performance against revenue and capital budgets and corporate risks, and remedial action to address areas of under-performance. 

 

Performance Against Performance Indicators

 

The Head of Policy and Performance presented the section of the report on performance indicators.  He explained the revised format and the intention to seek to make further improvements to the way the performance information was presented.

 

Referring to the opening paragraphs of the IPR he noted the performance highlights as set out in the report.  He drew attention to the upturn in performance of the benefits service and favourable feedback from the Government Office West Midlands on the end of year review of the Local Area Agreement. 

 

He noted that 13 of the 16 indicators marked as red (not on target) were under the Council priority: maximising the health, safety, economic well being, achievement and contribution of every child.  Of these 8 targets involved the Primary Care Trust.  A meeting scheduled with the Trust on 7 September to give final consideration to the Teenage Lifestyle Survey and agree the indicators for measurement in the coming year had not taken place.  The Trust had, however, indicated that they would meet and resolve matters at a more recent meeting of the Herefordshire Partnership performance management group.

 

In the course of discussion the following principal points were made (page references are to pages of the IPR circulated as a separate document):

 

·         (p16/17) a question was asked about a number of indicators with a baseline, no target but still with a direction of travel.  The Head of Policy and Performance commented that the reasons for the lack of a target were being followed up.  The relevant directorates had supplied the information on the direction of travel.  There was no reason why targets should not be provided in all appropriate cases.  In fact targets should have been set by April.

 

 

·         (p17 - 89b) It was noted that performance on the number on the child protection register per 10,000 population under 18 was currently below target.  In reply the Committee was informed that if the Council had a lower number of children on the register than might on average be expected this could imply that not all potential cases were being identified and children were potentially at risk.  However, if too many were being recorded this could imply an unsatisfactory regulatory framework.

 

·         Attention was drawn to the absence of performance templates for a number of indicators.  The Head of Policy and Performance replied that it was expected that these would have been completed by the time the next IPR was produced.

 

·         (p3) Progress against the target for the average length of stay in B&B accommodation for homeless households was questioned.  In reply it was noted that whilst the Government target of zero would not be achieved in the short term there had been significant success in moving homeless households out of temporary accommodation.

 

·         (p9 – 89b HC – percentage of initial assessments within 7 working days of referral).   A question was asked about performance against this target.  It was noted that the commentary alongside the indicator, whilst outlining capacity in the Referral Assessment Team remained a pressure point, stated that the target which had been set remained the aim. 

 

The Cabinet Member (Children's Services) reported that the issue was being treated with the utmost urgency.

 

·         In response to a further question about recruitment it was noted that the recruitment of 8 additional Social Workers had been approved and previously reported.  There was, however, a difficulty nationally in recruiting social work staff.

 

Whilst acknowledging the efforts which had been made and continued to be made the Committee remained concerned about the recruitment of social workers and the need to ensure that all vacancies are filled.

 

 

·         (p12) It was asked whether sickness absence was a problem in any particular directorate.  The Head of Human Resources reported that there had been improvements across all directorates and all were now performing well against this indicator.

 

·         (p13 and 14)  Members drew attention to the number of targets where data was not available and there was no evidence of direction of travel.

·         It was also requested that where data was to be reported annually, as was the case for a number of indicators, it should be made clear when that reporting date would actually happen.

 

·         that it should be made clear in the IPR whether good performance was shown by performance being above or below the relevant performance indicator target,

 

 

·         In relation to a number of adult social care financial indicators listed on page 14 the Head of Financial Services said that a reorganisation of financial services staff within adult social services was taking place which should improve the timely collection of data.  He  reassured the Committee that monitoring of performance against the forecast was taking place and that when suitable systems are in place in year financial indicators will be brought forward as part of future monitoring.

 

·         The need for clarity in the description of each indicator was noted, whilst acknowledging the desire for descriptions to be brief.

 

·         The absence of a commentary on appendix b explaining why performance was or was not on track was noted.

 

·         (p20/21)  the absence of evidence to support a number of performance indicators for Children’s Services and the direction of travel was highlighted.  It was noted that the Area Performance Assessment was due shortly.  It was asked whether all the necessary data would be available for the inspectorate.  The Cabinet Member (Children’s Services) said that a concerted effort was being made to ensure that this was the case.

 

·         (P26)  A question was asked about target 79b ii on the recovery of housing benefit overpayments.  The Director of Resources undertook to check and confirm progress.

 

·         It was suggested that key officers might need to be invited to future meetings to assist the Committee in considering the detail of some of the indicators.

 

In summary the Committee recognised the format of the Integrated Performance Report was evolving and the efforts being made to improve its presentation to make it an effective performance management tool for Members.  In addition to the detailed points made above the Committee remained concerned that a number of performance templates remained to be completed.  It emphasised the need to ensure that these are completed as a priority before the year to which they relate to  permit proper performance management to take place.

 

Revenue and Capital Budgets and Corporate Risks

 

The Head of Financial Services presented the section of the report on the revenue and capital budgets and corporate risks.

 

He reported that the net projected overspend was currently £2.536 million.   This was of concern given the potential implications for 2008/09 and the likelihood of a poor Comprehensive Spending Review Settlement for local government.

 

The report set out the position on each Directorate’s budget and the Head of Financial Services commented on each section in turn identifying areas of budget pressures as set out in the report.

 

In the course of discussion the following principal points were made:

 

·         That the presentation of the revenue budget should include the budgets for the year to enable the significance of budget variations to be more clearly understood and comparisons readily drawn.

 

·         Considerable concern was expressed about the projected overspend on the revenue budget, the questions this raised about how realistic the budget was and the need for Cabinet to ensure that the position was not simply being accepted and that budgets were being firmly and effectively managed with plans in place to ensure budget compliance. 

 

·         It was recognised that the budgets in Adult Social Care and Children’s Services were susceptible to unforeseen pressures.

 

·         Concern was expressed about the pressures in ICT Services, notably the holding of vacancies to offset an overspend, the considerable non-staff costs that had not been budgeted for, as described in paragraph 35 of the report, and the full revenue impact of the Community network had yet to be established, noting that the Head of Financial Services had indicated this was estimated to be about £1million after a contribution from the Children and Young People’s Directorate.  There still seemed to be uncertainty over the full extent of the financial pressures.

 

·         The Director of Resources commented that the financial strategy had been developed to address the funding of the base budget.  Social care had experienced overspends in 2004/05 and 2005/06.  In 2006/07 resources had been added to the base budget for those services and a contingency sum for social care had also been established.  This had been backed up by work on needs analysis.  All directorates were being encouraged to modernise and reduce expenditure. The updated financial strategy and service priorities would be presented to the Committee soon.

 

She would continue to report her concerns about the growing pressures and the problems that lay ahead in meeting continual overspends.

 

Asked to comment further on the extent of her concern she said that the Corporate Management Board (CMB) was aware of the budget pressures and the need to provide services within the agreed cost.  CMB had been told that clear plans needed to be in place stating how each service would be delivered within the resource base.

 

The Head of Financial Services added that with the adult social care finance staff now part of the Resources Directorate a clearer picture of the pressures in that area was being established but it was a complex picture and a lot of work needed to be done to address the issues.

 

·         It was noted that the costs incurred as a result of summer flooding of a number of schools, estimated at £930,000 were not recoverable under the Government’s Bellwin Scheme.  This was because the risk was viewed as insurable.  The Council had decided to self-insure some years ago setting aside £250,000 to meet the risk.  In response to a request that the policy of self-insurance be reviewed the Head of Financial Services said this would be part of the corporate risk management approach.  Discussions would also take place with schools on a case by case basis, noting the levels of balances they were holding.  The Committee noted that the process for insuring schools against risk was being re-examined and would be the subject of further report.

 

·         In relation to the capital budget the Head of Financial Services reported that there was already evidence of slippage in the programme.  He reported that further clarification would be provided in future reports on the funding of the Capital Programme.

 

·         In relation to the corporate risk register the Head of Financial Services added that work was continuing to respond to the points made by the Committee at its last meeting on the Register’s content and presentation.

 

·         In response to a question the Director of Resources reported that a report on Strategic Options for the accommodation Strategy would not now be ready in October as the report indicated.  It was now expected to be ready by the end of December 2007 with further work then being carried out up to the end of March 2008.  Concern was expressed by Members at the delay in reporting on this issue.

 

·         Asked about the savings targets for the Herefordshire Connects Project the Director of Resources said that the original targets had been reviewed and she now considered the targets more deliverable and sounder.  The expectation was that savings would be lower than originally estimated by AXON, the business transformation consultancy, and delivered over a longer timescale. 

 

·         It was requested that local constituents be briefed on the design of the new livestock market.

RESOLVED: 

That    (a)        Cabinet be advised of the Committee’s comments and concerns as set out above;

            (b)       no issues be specifically referred to other Scrutiny Committees at this stage;

                        and

            (c)        a report be made to the Committee on the review of the approach for insuring schools against risk. 

 

(The meeting adjourned between 11.55 am and 12.00 noon.)