PAPER B

 

Purpose: for Decision

 

Meeting :        REPORT TO CABINET

 

Date :              6 MARCH 2007

 

Title :               QUARTERLY FINANCIAL AND PERFORMANCE – QUARTER ENDED 31 DECEMBER 2006

 

REPORT OF THE  LEADER OF THE COUNCIL

 

                                                            IMPLEMENTATION DATE: 16 March 2007

 

PURPOSE

 

1.      For members to consider the Council’s performance during the third quarter of 2006/07 (the quarter ended 31 December 2006).

 

OVERVIEW OF QUARTERLY PERFORMANCE

 

REVENUE BUDGET

 

2.      There has been a continuing focus of attention in the third quarter to ensure that the revenue budget is under control, building on the earlier success of identifying and centralising the control of individual service contingency budgets and reserves. 

 

3.      At the end of the previous quarter the projected overspend had been reduced from over £6 millions to just £401,000. By the end of the third quarter the net overspend has been reduced to a net £138,000, representing a significant achievement in financial performance. An updated position will be available to report verbally when the Cabinet meets.

 

4.      An analysis by Cabinet Member of the Council’s revenue position at the end of Quarter 3 is attached in Appendix 1 to this report.

 

CAPITAL BUDGET

 

5.      Details of the capital programme are also shown in Appendix 1. The second quarter report highlighted that there was significant slippage capital spending when compared to the budget. After reflecting a more realistic profile of capital spending (by moving nearly £8 millions into 2007/08) the position at the end of the third quarter is that slippage is now forecast to be around £970k, representing a marked improvement. Slippage does have the effect of ‘masking’ the true over – commitment of capital funding, which at the end of the third quarter is calculated at £533k.  The latter will be offset by increased capital receipt generation or cost reduction.

 

KEY PERFORMANCE INDICATORS

 

6.      During the previous quarter, attention was given to identify those critical


7.      indicators that provide a clear indication of the ‘health’ of each Council service.  These indicators have now been refined and the Council is showing a marked improvement in its ability to produce the data required. This represents a significant shift in the Council’s performance culture, aided by the continuing refinement of the  performance management system.

 

8.      Performance against these indicators to the end of December 2006 is shown by Cabinet member in Appendix 2 of this report.  In a conscious attempt to improve our focus, the indicators are reported on an exception basis only – ie those that are showing as ‘Red’. There are still some 44 indicators out of an original total of180.

 

9.      Members will note that there are other improvements to the format of the report compared to that for Quarter 2 – intended to facilitate interpretation of the data. The report now includes columns for ‘Frequency’ (of data collection or reporting), ‘Aim’ (ie intentional course of direction), ‘Trend’ (the direction of the indicator since the last month), a ‘Year end target’ and a ‘Year end forecast’ against that target, and finally a ‘Commentary’ on each indicator to aid understanding. 

 

REVIEW BY THE AUDIT & PERFORMANCE COMMITTEE

 

10. The Audit and Performance Committee now plays a key role in the process of reviewing performance. It is now given an opportunity to examine performance before this report is provided to the Cabinet. The Committee reviewed the third quarter’s performance when it met on 13 February. It made the following resolutions:

 

  1. THAT a regular update report should be received on the Disposals Programme to enable the (Audit & Performance) Committee to monitor progress throughout the year.

 

  1. THAT the Cabinet Member for Assets, Planning and Housing be invited to provide a briefing for Members (of the Audit & Performance Committee) on the Asset Management Strategy and the Disposals Programme.

 

  1. THAT the figures for violent crime should include the previous 3 month period.

 

  1. THAT further information for intensive home care would be circulated to the Committee.

 

  1. THAT further information for sickness absence in the Adult and Community Services directorate should be sought from the Human Resources section.

 

  1. THAT further information be made available for Looked After Children placements.

 

  1. THAT figures for free bus passenger journeys for those aged 60 or over be monitored on a regular basis.

 

  1. THAT the information relating to urgent repairs (item 50) and highways repairs (item 65) be provided to (Audit & Performance) Committee Members.(Both these indicators were scoring as green and therefore do not appear on the attached Appendix)

 

  1. THAT information regarding how quickly and when fly-tipping incidents were dealt with to be provided in future reports.

 

  1. THAT a local indicator for the number of children taking up sporting activities in schools be provided on a quarterly basis.

 

11. Members are asked to consider the resolutions of the Audit & Performance Committee when examining Appendixes 1 and 2.

 

STRATEGIC CONTEXT

 

12. The Council’s objective of being high performing and cost effective will be better delivered through the introduction of an effective performance management system.

 

13. Performance management was highlighted as one of the Council’s areas for improvement in last year’s Comprehensive Performance Assessment.  It is also an important component of the Direction of Travel judgement made by the District Auditor in his annual Audit & Inspection Letter.

 

CONSULTATION

 

14. The Council’s performance management system involves the examination of performance at monthly service boards. As such, senior management are involved in discussions about performance on a routine basis.

 

15. As reported above, the Audit & Performance Committee now has the opportunity to review performance and can make its recommendations before Cabinet meets.

 

FINANCIAL/BUDGET MPLICATIONS

 

16. There are no direct financial implications arising from this report.

 

LEGAL IMPLICATIONS

 

17. The Council has a statutory requirement under the terms of the Local Government Act 1999 to achieve the Best Value in the delivery of its services.  The performance of a service against expectations forms a key component of the test of Best Value.

 

OPTIONS

 

1.                  Note the performance of the Council as at the end of Quarter 3.

 

2.                  Consider the resolutions of the Audit & Performance Committee of 13 February.

 

3.                  Identify specific areas of performance requiring further explanation by the responsible Cabinet Member.

RISK MANAGEMENT

 

18. There are no direct risk implications arising from this report.

RECOMMENDATIONS

That the Cabinet:

1.     Note the performance of the Council as at the end of Quarter 2.

 

2.      Consider the resolutions of the Audit & Performance Committee of 13 February.

 

3.      Identify specific areas of performance requiring further explanation by the responsible Cabinet Member.

 

 

BACKGROUND PAPERS

Audit Commission, (August 2006), CPA Corporate Assessment.

Quarterly Financial & Performance Management (Quarter ended 31 September 2006) – Cabinet 5 December 2006

 

APPENDIXES ATTACHED

Appendix 1   - Financial Management Report for Quarter 3 (to 31 December 2006)

Appendix 2 - Performance Management of Key Indicators for Quarter 3 (to 31 December 2006)

 

Contact Point: Bob Streets, Programme Lead for Compliance, tel: (82)3622, email : [email protected]

 

STEVE BEYNON

Director of Children’s Services

COUNCILLOR ANDREW SUTTON

 Leader of the Council