(a)        The Council’s Overall Performance Improvement Plan

            To draw the Committee’s attention to the Council’s Overall Performance Improvement Action Plan and to the proposed arrangements for reporting progress against it to the Committee.

(b)       The Council’s Performance Improvement Cycle

            To draw the Committee’s attention to the Council’s Performance Improvement Cycle and to invite the Committee to continue to have regard to it in the development of the scrutiny programme.

(c)            Integrated Performance Report – 2005/06 End of Year Report

            To report: 

(a)   performance for the operating year 2005-06 against the Annual Operating Plan 2005-06;

(b)   the full set of Best Value Performance Indicators; and

(c)   the capital budget position and corporate risks.

(d)       Final Revenue Outturn 2005/06

            To note the final revenue outturn position for 2005/06 and associated issues.

(e)            Integrated Performance Report 2006/07 April-May Progress Report (To Follow)

            To report performance to the end of May 2006 against the Annual Operating Plan 2006/07 and the remedial action to address areas of underperformance.

(A) The Council’s Overall Performance Improvement Plan

The Committee considered the Council’s Overall Performance Improvement Action Plan and the proposed arrangements for reporting progress against it to Committee.

Councils are required to produce an overall performance improvement action plan following Comprehensive Performance Assessment, including Corporate Performance Assessment and Joint Area Review of Services for Children and Young People (JAR).  Following its Comprehensive Performance Assessment in the autumn of 2005, the Council produced the Action Plan set out at Appendix 1 to the report.  Following discussion with the Government Office for the West Midlands, the Audit Commission and the Commission for Social Care Inspection the action plan was approved by Cabinet on 27th April, 2006.

Reports on progress against the Overall Plan are being made on an exceptions basis to Cabinet as part of the normal Integrated Performance Report (IPR).  The first such report was included in the IPR to the end of May, and was the subject of a later agenda item.

The Audit Commission will be reviewing the Council’s progress in implementing the Overall Plan, initially in September 2006.

On scrutinising the Overall Improvement Plan the Committee noted the following principal points.

·         That as further performance elements were confirmed they would be added to the plan. This had already been done for the Children’s Service elements of the Plan, with particular importance attached to the indicators and performance against the targets that related to the safeguarding of children.

·         A number of local targets had been included so that significant over or under achievement against national comparators would trigger areas for concern.

·         On a suggestion that the percentage of children adequately housed could be added to the key children’s safeguarding performance indicators, it was noted that housing targets were included in other sections of the plan.

·         With regard to the reference to the Constitutional Review Working Group in Section 4 of the plan there was a question on whether Cabinet portfolios were now aligned with Council’s priorities.  Scrutiny would be looked at with a view to strengthening its performance management and enquiry work.

RESOLVED:

That (a) the Council’s Overall Performance Improvement Action Plan be noted;

                        (b)the proposed arrangements for reporting progress against the Plan to the Committee be noted;

                                    and

                        (c)        progress against the Plan be noted as part of its           consideration of the separate item on the Integrated    Performance Report to the end of May 2006.

(B) The Council’s Performance Improvement Cycle

The Committee was invited to consider the Council’s Performance Improvement Cycle and have regard to it in developing the scrutiny programme.

In accordance with the Council’s Overall Performance Improvement Plan the previous corporate planning and budget processes had been brought together to ensure that there was a direct relationship at all stages between the planning of budgets (and other resources) and the outputs and outcomes they were allocated to achieve.  The core elements of the performance improvement cycle were shown in Appendix 1 to the report.  This year the cycle had not been implemented in full for the reasons set out in the report.  The Plan would contribute to the medium term financial strategy and provide the basis for performance monitoring.

RESOLVED:

That (a) the new Performance Improvement Cycle be noted;

            and

            (b) regard continue to be had to the Performance Improvement Cycle in the development of the scrutiny programme.

(C) Integrated Performance Report – 2005/06 End-of-Year Report

The Committee received reports on:

(a)               performance for the operating year 2005-06 against the Annual Operating Plan 2005-06;

(b)               the full set of Best Value Performance Indicators (BVPIs); and

(c)               the capital budget position and corporate risks.

The report to Cabinet on 15th June 2006, covering the above suite of reports had previously been issued to Members.

The Corporate Policy and Research Manager highlighted that there were 25 indicators within the Annual Operating Plan that were linked to the LPSA2G, of which 17 had been marked as not having gone to plan, compared with 24 to January 2006.  Although outturn performance had been reported against some of these indicators, they were still judged to be failing because, in the majority of cases, no target had been set.  He also highlighted that of the Best Value Performance Indicators 58% had either improved or maintained performance compared to 57% last year. 36% had deteriorated, compared with 43% in 2004-05.  Information was awaited on 6% of the indicators.  He reported that Capital budget monitoring was the subject of a later agenda item. Corporate risk monitoring was set out at Appendix D to the report and ‘new risks’, principally in Adult Social Care and Children’s Services, had been detailed in the report.

RESOLVED: That the report be noted.

(D) Final Revenue Outturn 2005/06

The Committee considered the final revenue outturn position for 2005/06 and associated issues.

The Director of Resources reported that Cabinet, on 15th June 2006, had agreed that the final outturn for 2005/06 be approved; the Corporate Management Board’s recommendations for the carry forward of unspent budgets into 2006/7 be agreed; the creation of the new reserves in the 2005/6 Accounts be approved; and that an increase in the minimum level of general reserves and working balances of £1.5m to £4.5m or 3.75% of budgeted net revenue spending excluding schools budgets be considered as part of the Council’s Medium Term Financial Plan.

During the course of debate the following principal points were noted:

·               While robust financial monitoring reports were now in place, greater financial management was needed by directorates to ensure that services were delivered.  Ideally each year services should be improved with a minimal underspend.

·               Questioned on the base budget for Adult Social Care the Chief Executive reported that this year additional investment had been made to that service.  It would be for the Council to find reductions in other areas if it considered it necessary to supply further investment to this area.

·               The Chief Executive emphasised the importance of the Herefordshire Connect Programme in driving efficiencies to release resources to support other priorities e.g. Adult Social Care..

RESOLVED: That the report be noted.

(E) Integrated Performance Report – 2006/07 April-May Progress Report

The Committee was informed of performance to the end of May 2006 against the Annual Operating Plan 2006/07 and the remedial actions taken to address areas of under-performance.

The Corporate Policy and Research Manager reported that the Council’s current Corporate Plan set out the Council’s objectives, priorities and targets for the three years 2006-09. The Annual Operating Plan was the detailed action plan for 2006/7, and had been updated to include the indicators in the Local Area agreement (LAA) and the Herefordshire Community Strategy (HCS).  His report summarised progress in the first two months of the current operating year and included action being taken to address underperformance.  Appendix A to the report provided greater detail on each of the indicators that were currently not on schedule to be achieved.

He highlighted that out of 72 performance Indicators relating to the Local Area Agreement (which now incorporated those under LPSA2G) 42 had beed “red flagged”. This was of particular concern and remedial action would be required.

An exceptions report on the overall improvement plan, Appendix B to the report, was regularly provided to the Leader of the Council and Chief Executive.

RESOLVED: That the report be noted.