To consider the Council’s performance for the first eight months of 2007-08 against the Annual Operating Plan 2007-08 and national performance indicators used externally to measure the performance of the Council; partnership performance for the first six months in delivering the Local Public Service Agreement, Local Area Agreement and Herefordshire Community Strategy; and performance against revenue and capital budgets and corporate risks, and remedial action to address areas of under-performance. 

The Committee considered the Council’s performance for the first eight months of 2007-08 against the Annual Operating Plan 2007-08 and national performance indicators used externally to measure the performance of the Council; partnership performance for the first six months in delivering the Local Public Service Agreement, Local Area Agreement and Herefordshire Community Strategy; and performance against revenue and capital budgets and corporate risks, and remedial action to address areas of under-performance. 

Performance against Performance Indicators

The Corporate Policy and Research Manager (CPRM) presented this section of the report, summarising progress.

He reported a slight increase in the number of red indicators (not on target) and those marked green (on target or met target) since the last report.

He provided an update on progress in identifying an agreed set of defined indicators and targets for measures of healthy teenage lifestyles, an issue highlighted by the Committee in November 2007.  He reported that a set of proxy indicators had been developed for consideration by the Director of Children’s Services prior to submission to the Children’s Trust Board and the Herefordshire Partnership Performance Management Group.  Subject to their consideration, these would be included in future IPRs.

He also updated the Committee on the percentage of children on the child protection register that are re-registrations (26 HCS), which had improved significantly in the third quarter; the % of 15 year-old pupils achieving 5 or more GCSEs at grades A* - G or equivalent, including English and Maths (30 HCS) and  the number of half-day sessions missed by looked after children as a % of total number of sessions in primary schools (35b HCS) – in both cases, although the target had not been achieved, performance had improved compared with the previous year;  and the completion rate of initial assessments of children in need within 7 working days of referral (89b HC), where third quarter out-turn had improved compared with quarter two.

He also referred to the apparent stabilisation in the number of referrals of children in need (89a HC) at around 240 to 245.  Although the necessarily tentative target set following the 2005 Joint Area Review had been 280, there were no longer concerns about the thresholds for referrals and the level being achieved was regarded as within the acceptable range.

He drew attention to the findings of the satisfaction survey 2007, the results of which had been taken into account in the IPR, noting that the survey was something to which the Committee might wish to give further consideration.  In summary there were few significant changes since the previous year’s General Survey.   Performance against a few perception indicators had declined but there had also been improved performance against some others.  Work was underway to examine in detail what underlay areas where public satisfaction was relatively low or had declined.

He added that a new national survey was being introduced in September 2008.  This would be a place survey focusing on citizens’ perceptions in relation to quality of life and outcomes.

He reported that the Audit Commission would publish the 2007 Comprehensive Performance Assessment (CPA) score in February 2008.  The Council’s direction of travel seemed likely to be classed by the Audit Commission as continuing to be in the category of “improving adequately”.

Looking forward to the equivalent 2008 assessment, which would be published in early 2009, the current data showed that 62% of indicators were on course to improve, but 25% to be worse than last year.

The overall CPA score was expected to show a fall from 3* to 2*.  The CPRM explained the reasons for the change.  This was the result of an expected change in the score for housing from 2 to 1 because of a one-year change in the selection of housing performance indicators used in the Audit Commission’s assessment. This was against the background of performance having improved in some respects against the overall suite of indicators previously assessed.

As a result of a proposed further one-year change in the housing indicators to be used for this Audit Commission assessment in 2008, if nothing significant changed in the housing performance in 2007/08 the score was expected to increase to 3.

He added that if housing were to be scored 3 in 2008 and all other service scores were to stay at their expected 2007 level, the overall Council score would fall to 2 because the protection for the 2002 Corporate Assessment score of 3 was to end and the 2005 Corporate Assessment score of 2 to come into play.

In the ensuing discussion the following principal points were made (page references are to pages of the Integrated Performance and Finance Report (IPR) circulated as a separate document.)

·         The time it was taking to establish some baselines and targets was questioned.  The CPRM said that the Council and Partners were becoming more disciplined in this respect.  He commented on the importance, having established a baseline and target, of measuring performance in-year.  He noted that there were a number of targets where the performance figure itself was only measured annually and a way had to be found of tracking progress against those targets, for instance by means of proxy indicators or timetabled actions that were necessary to improve performance.  There had in the past been Government pressure to adopt particular indicators for the Local Public Service Agreement and the Local Area Agreement that had led to there being some in respect of which there had not been baselines on the basis of which targets could be set.  This deficiency had now been addressed in the majority of cases but there were a significant few where baselines and targets had not yet been established.   Members reiterated the importance of ensuring that there were baselines established and targets set in a timely manner.

·         (p18 89 HC) The completion rate of initial assessments of children in need within 7 working days of referral was discussed.  The CPRM added that a benchmarking survey was being undertaken to inform target setting for 2008/09.  Recruitment of social workers was on track towards the longer-term target increases, enabling the number of agency staff to be reduced, which should lead to improved performance. 

·         Concern was expressed that the report stated that performance against this indicator continued to decline.  The CPRM reiterated that since the publication of the IPR performance information showed some improvement.  However, the difficulty in recruiting social work staff was a national issue, which would continue to require constant attention.  Aspects of recruitment were discussed.  Members decided, on balance, that given the evidence that officers were taking all possible measures to strengthen recruitment and retention, they would make no further recommendations on this point at this time.

·         (p5 HC 73) Disappointment was expressed that Investors in People accreditation, the aim to achieve which the Committee had supported, would not be achieved by the target date of March 2008.  It was asked whether there were any particular reasons and noted that whilst the external assessment had identified areas of strength it had also identified areas of weakness.  The view remained that the process was beneficial to the organisation.  It was noted that an action plan was being developed with the aim of gaining accreditation by the end of 2008.

·         It was asked what action was planned to monitor the effectiveness of the Council’s Communication Strategy given the importance of perception in the new format of satisfaction survey and the bearing this would have on external assessments of the Council’s performance.  The CPRM said that an action plan was in place.  He added that, under the new Comprehensive Area Assessment arrangements, the onus was on the Council and its partners to demonstrate a good understanding of need and of the views of service users and citizens generally.  Members requested that the importance of monitoring the effectiveness of the Council’s communication strategy should be highlighted.

·         It was asked whether there was a risk that the current level of performance might deteriorate, affecting the Audit Commission’s assessment of the Council’s direction of travel.  The CPRM said that intensive work was underway to seek to improve performance where this was below last year’s whilst maintaining performance in those areas where it was better.  The experience in 2006/07 had been that in the last three months of the year it had been possible to improve performance against a significant number of indicators in respect of which performance had been below that in the previous year.  This involved ensuring that data had been properly collected as well as focusing on performance itself.

·         Members remarked on perceived vagaries of the CPA scoring system.

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 overall revenue budget position showed a reduction in the projected overspend to £1.005 million and explained the reasons for this, as described in the report.

He drew attention to the claim to be lodged to the Government Office West Midlands (GOWM) under the Bellwin scheme for damage caused by the flooding in July 2007, noting the possible risk that the Government might not agree to support the entire claim.

Turning then to the analysis of expenditure by Directorates he highlighted a number of potential financial risks: the position on temporary accommodation; negotiations with HALO Ltd in relation to the implementation of single status and job evaluation; and the possible claw back of grant associated with the Actively Regenerating Communities in Herefordshire programme following an audit by GOWM; aspects of ICT expenditure; and the Waste Contract.

The further slippage on the capital programme was noted.

The Head of Financial Services highlighted that the VAT position would now be included as part of the budget monitoring reports adding that the position was satisfactory.

He also noted the change in the prudential borrowing position.

In the ensuing discussion the following principal points were made:

·         Asked about the Bellwin claim the Head of Financial Services confirmed that every effort had been made to ensure that all eligible expenditure was claimed.

·         Concern was expressed that a change of strategy in the arrangements for allocating places in the new accommodation for older people at Leadon Bank, Ledbury was being considered.  It was understood that negotiations were taking place, initiated by the Council, which could lead to the number of places reserved for placements by Herefordshire Council under the current agreement being reduced and being released by the Council for the contractor to let privately.  It was requested that any proposed changes to the current strategy for the provision of places at Leadon Bank, Ledbury should be reported to Cabinet for consideration and Members of the Committee and Local Members advised of any such intention.

·         In response to questions the Head of Financial Services agreed to provide a written answer on the number of partners involved in the Actively Regenerating Communities in Herefordshire programme, and to confirm the position on expenditure on the Riverside school amalgamation scheme.

·         The continued improvements in the presentation of the information on the revenue budget and capital programme in response to the Committee’s requests were welcomed.

·         It was asked what assumptions had been made in the budget about the expected savings from the current review of the provision of school places.  The Head of Financial Services, whilst noting that while generating overall savings the review would require new elements of funding as well, replied that consideration was being given to how savings might be phased.  Savings would be expected to be ring-fenced within the schools budget.

·         Clarification was sought on the significant projected overspend on the community network upgrade and the fact that savings on the old network had yet to be realised.  The Director of Corporate and Customer Services said that a combination of factors was involved.  These included that some buildings had been added to the old network after the initial scoping work and that some buildings had remained on the old network for longer than expected.

·         A question was asked about the treatment of invest to save monies within the adult social care budget.  The report stated that as the funding would be underspent at the year–end part of the sum had been used to fund specific short-term packages.  The Head of Financial Services confirmed that the allocation of £2.7 million for invest to save monies remained in the base budget.

·         The continued improvement in the presentation of the information on the revenue budget and capital programme was welcomed. 

·         The forecast expenditure on the Herefordshire Connects programme provided for in the capital programme was questioned.  The Head of Financial Services replied that whether the sum was expended depended on whether the purchase of specific replacement systems proceeded following the Committee’s call-in of Cabinet’s decision to do so.

·         The potential that the projected cost of the cattle market would exceed expectations and that this was due to be considered by Cabinet on 24th January, 2008 was noted.

·         It was noted that tenders had been let for the replacement of the Minster High School, Leominster and some concern expressed at how this and other developments fitted with the proposals associated with the review of the provision of school places.

·         Asked about the lack of detail in the corporate risk log alongside risks CR 29-32 the Head of Financial Services said that these were newly identified risks and the entries in the risk register would be completed shortly.

Members noted that the IPR had been circulated as a separate document and was available to the public on request.  It was suggested that in future where documents were circulated separately in this way this was clearly indicated on the agenda papers.

RESOLVED

That    (a)        the importance of ensuring that baselines were established and targets set in a timely manner be re-emphasised to all Directorates and in particular the Council’s partners;

(b)       any proposed changes to the current strategy for the provision of places at Leadon Bank, Ledbury should be reported to Cabinet for consideration and Members of the Committee and Local Members advised of any such intention;

            (c)        the importance of monitoring the effectiveness of the Council’s communication strategy be highlighted;

                        and

                        (d)       the continued improvement in the presentation of the information     on the revenue budget and capital programme be welcomed.