APPENDIX B

Recommended Action	Priority	End Date	Accountability	Outputs & Commentary	Resources
R1 Monitor the delivery of the Council’s action plan to ensure that improvements supporting the effective use of resources are implemented and embedded.	High	Ongoing	Director of Finance	Detailed action plans for improving the Council’s Use of Resources have been developed and are now in the process of being implemented.	Contained within existing resources and budgets
R2 Arrangements for ensuring the quality of performance data should be improved	High	Ongoing until 31/3/08	Director of Children’s Services	The Council is currently in the process of developing its Data Quality Strategy and Action Plan which is closely referenced to the Key Lines of Enquiry (KLOEs) for data quality issued as a guide by the Audit Commission.	Subject to agreement of the Action Plan.
R3 The recommended improvements to processes relating to severance issues highlighted in my letter, which have yet to be addressed, should be formally implemented as soon as possible:	High		Director, People and Organisation Development
R3.1 Members to formally approve the changes to severance processes and satisfy themselves that procedures are now robust	High	Immediate		R3.1 The revised policy and procedure for dealing with severance matters has been developed. A formal decision by the relevant cabinet member under delegated powers has been published and subject to call in, will be approved.	Contained within existing resources and budgets
R3.2 Officer decision making processes, more generally, to be reviewed to ensure that there is a complete audit trail for all decisions in future.	High	Complete		R3.2 Procedural documents have been amended to clearly set out the requirements for severance arrangements, to ensure that there is full cabinet member involvement and which includes guidance on the circumstances where the chief executive and leader are required to formally approve severance payments in situations where financial compensation is in excess of £50,000. The outcomes and recommendations of the recent Ethical Governance review will inform changes to the general decision making processes.	Contained within existing resources and budgets
R3.3 An annual report to be prepared for Members setting out the full cost including the long term impact of severance decisions in the future.	High	Complete, subject to first annual report		R3.3 Each individual case now provides the opportunity to fully brief cabinet members on the full financial implications of proposed severance payments. A report will now be taken to members when they consider the Council’s annual accounts each year, setting out the totality of long term impact to the council.	Contained within existing resources and budgets
R3.4 Performance review processes to be reviewed to ensure that there is robust evidence retained for all future one to one review meetings within the Council’s framework.		Complete		R3.4 Procedures are to be set in place (and compliance monitored) to ensure that there are secure arrangements for the storage of individual performance review documents within Directorates and indeed corporately for Directors and Heads of Service. The responsibility for these arrangements rest with the Director, People and Organisation Development.	Contained within existing resources and budgets
R4 The Council need to develop a more strategic approach to procurement which improves the overall coordination of the process	High	30/9/07	Directors Team	The Director of Customer Services will have responsibility for strategic procurement at director team level. The Disciplinary & Investigation Committee established to examine the Undercliff issue will make recommendations both around general procurement and the issues raised in the QP report. The Director of Environment & Neighbourhoods is to re-negotiate the relationship with the local bus operator. Procurement savings to be identified with the assistance of the Regional Centre of Excellence based at Kent CC. Such savings to be included in the Medium Term Financial Strategy. The Council will consider what interim support is required to progress with the improvement to procurement practices.	If the Council proceeds with strengthening the capacity of the procurement discipline, this will require some additional financial resource.
R5 Arrangements in respect of engineering works at the Undercliff Drive must be put on a proper legal basis as a matter of urgency and action taken to demonstrate competitiveness and risk management in relation to these ongoing contracting arrangements.	High	31/3/07	Director of Environment & Neighbourhoods and Interim Director of Legal & Democratic Services	The Council has established a Committee of elected members to investigate the circumstances surrounding the procurement of consultancy services in relation to the Undercliff Drive scheme. At the same time, and without waiting for the conclusions of that investigation, the Council has engaged procurement and legal advice to ensure that the procurement of such services is put on a proper legal basis as soon as possible.	The engagement of legal advice in to ensure arrangements are put on a proper legal basis is estimated to cost between £250k and £300k to be met from existing resources.

Recommended

Action

Priority

End

Date

Accountability

Outputs & Commentary

Resources

Monitor the delivery of the Council’s action plan to ensure that improvements supporting the effective use of resources are implemented and embedded.

High

Ongoing

Director of Finance

Detailed action plans for improving the Council’s Use of Resources have been developed and are now in the process of being implemented.

Contained within existing resources and budgets

Arrangements for ensuring the quality of performance data should be improved

High

Ongoing until 31/3/08

Director of Children’s Services

The Council is currently in the process of developing its Data Quality Strategy and Action Plan which is closely referenced to the Key Lines of Enquiry (KLOEs) for data quality issued as a guide by the Audit Commission.

Subject to agreement of the Action Plan.

The recommended improvements to processes relating to severance issues highlighted in my letter, which have yet to be addressed, should be formally implemented as soon as possible:

High

Director, People and Organisation Development

R3.1

Members to formally approve the changes to severance processes and satisfy themselves that procedures are now robust

High

Immediate

R3.1

The revised policy and procedure for dealing with severance matters has been developed. A formal decision by the relevant cabinet member under delegated powers has been published and subject to call in, will be approved.

Contained within existing resources and budgets

R3.2

Officer decision making processes, more generally, to be reviewed to ensure that there is a complete audit trail for all decisions in future.

High

Complete

R3.2

Procedural documents have been amended to clearly set out the requirements for severance arrangements, to ensure that there is full cabinet member involvement and which includes guidance on the circumstances where the chief executive and leader are required to formally approve severance payments in situations where financial compensation is in excess of £50,000.

The outcomes and recommendations of the recent Ethical Governance review will inform changes to the general decision making processes.

Contained within existing resources and budgets

R3.3

An annual report to be prepared for Members setting out the full cost including the long term impact of severance decisions in the future.

High

Complete,

subject to first annual report

R3.3

Each individual case now provides the opportunity to fully brief cabinet members on the full financial implications of proposed severance payments. A report will now be taken to members when they consider the Council’s annual accounts each year, setting out the totality of long term impact to the council.

Contained within existing resources and budgets

R3.4

Performance review processes to be reviewed to ensure that there is robust evidence retained for all future one to one review meetings within the Council’s framework.

Complete

R3.4

Procedures are to be set in place (and compliance monitored) to ensure that there are secure arrangements for the storage of individual performance review documents within Directorates and indeed corporately for Directors and Heads of Service. The responsibility for these arrangements rest with the Director, People and Organisation Development.

Contained within existing resources and budgets

The Council need to develop a more strategic approach to procurement which improves the overall coordination of the process

High

30/9/07

Directors Team

The Director of Customer Services will have responsibility for strategic procurement at director team level.

The Disciplinary & Investigation Committee established to examine the Undercliff issue will make recommendations both around general procurement and the issues raised in the QP report.

The Director of Environment & Neighbourhoods is to re-negotiate the relationship with the local bus operator.

Procurement savings to be identified with the assistance of the Regional Centre of Excellence based at Kent CC. Such savings to be included in the Medium Term Financial Strategy.

The Council will consider what interim support is required to progress with the improvement to procurement practices.

If the Council proceeds with strengthening the capacity of the procurement discipline, this will require some additional financial resource.

Arrangements in respect of engineering works at the Undercliff Drive must be put on a proper legal basis as a matter of urgency and action taken to demonstrate competitiveness and risk management in relation to these ongoing contracting arrangements.

High

31/3/07

Director of Environment & Neighbourhoods and

Interim Director of Legal & Democratic Services

The Council has established a Committee of elected members to investigate the circumstances surrounding the procurement of consultancy services in relation to the Undercliff Drive scheme. At the same time, and without waiting for the conclusions of that investigation, the Council has engaged procurement and legal advice to ensure that the procurement of such services is put on a proper legal basis as soon as possible.

The engagement of legal advice in to ensure arrangements are put on a proper legal basis is estimated to cost between £250k and £300k to be met from existing resources.