Agenda item

Report of Cabinet Member with Responsibility for Performance Management Efficiency

The Cabinet Member with Responsibility for Performance Management & Efficiency presented the 3^rd Quarter Corporate Monitoring Reports.  Members were guided through the performance data and updated on progress in tackling areas that the Council was underperforming in and measures taken for improvement.

The Head of Financial Services reported that the monitoring report of expenditure and income for 2008/09 set out an indicative corporate picture of the Council’s financial performance relating to the period ending December 2008.  It summarised the variances reported through Services’ quarterly Performance Review Team (PRT) meetings and identified omissions, updates and/or actions required and included salary monitoring, capital expenditure and financing, Housing Revenue Account, revenue collection performance and Insurance and Risk Management.  The quarter’s monitoring was based on the Revised Budget as approved by Council on 4^th February 2009.

Members were advised that the current overall general fund summary position showed that there was a net underspend of £24K against the revised budget at the end of December, which was expected to reduce to £7K by the end of the year.  Based on current forecasts, net spending was broadly in line with the budget.  Under or overspends had been kept within 2% of the overall net controllable revenue budget.  All actions from the previous quarter had been dealt with through the budget process by corrective action or by presenting options to Star Chamber. 

Appendix A to the report detailed the major true variances that had been included within individual Services’ PRT reports.  There were a number of significant overspends relating to Salt Ayre Sports Centre and Heysham Pool energy costs, in addition to increased costs of Rent Allowances and delayed Planning Application fee income. 

It was reported that savings of £41K had been achieved against the revised salary budget to-date, which it was anticipated would increase to a total of £70K by the year end.  The capital programme had been revised as part of the current budget process and reported through to Cabinet accordingly.  There were no variances to report in respect of the approved revised programme. 

Members were informed that at the end of December, the position for the Housing Revenue Account showed an overspend of £109K against the revised budget, which was currently projected to change to an overall net underspend of £28K by the end of the year.  The level of current overspend was predominantly due to outstanding claims relating to insurance repairs.  The Council Housing rent income collected for the year was in line with the estimate. The Council Housing Capital programme had spend of £1.793M against the approved revised programme of £3.877M. 

Performance against the in-year collection targets was slightly down in Council Tax and Business Rate collection, the latter having declined due to increases in the overall amounts collectable and the impact of new Empty Property Rate legislation as well as the economic downturn.  The level of outstanding sundry debts at the end of December totalled £2.1M, which was over £0.4M more than the same period last year, having increased overall by £600K from the previous quarter, due to quarterly rents being raised by Property Services.

Members were advised that the Council’s risk management procedures were undergoing a substantial review to consider whether any improvements could be made to the way that risk was managed in several key areas.  It was noted that details of the review, together with the revised Risk Management Strategy, would be reported to Audit Committee in April.

With regard to 2008/09 Treasury Management Progress to 31^st December 2008, it was reported that there had been no activity in respect of long-term borrowings and the recent upturn in long-term Public Works Loan Board (PWLB) rates meant that there may be opportunity to reschedule debt in quarter 4.  There had been no fixed term investments made in quarter 3, and the original investment interest budget had been reduced following on from Iceland, and the reduction in rates was predicted to cause further budgetary pressure going into quarter 4.  Appendix A to the report set out certain indicators and other relevant monitoring information.  Appendix B to the report showed investment interest earned to 31^st December 2008 and highlighted investments where the counterparties had since been downgraded and removed from the counterparty list.  The investment with the Bradford & Bingley had matured in quarter 2, however, and monies had returned to the Council.  Icelandic Banks had been accounted for up to 8^th October 2008 at the point when they went into administration.  As at 25^th November, no monies were held in the Allied Irish Call Account and no new investments would be made with Irish organisations in current circumstances:  the country’s sovereign rating had just been downgraded.  There remained, however, one investment with Anglo Irish Bank Corporation, due to mature in June 2009.

The Cabinet Member with Special Responsibility for Performance Management & Efficiency reported on the third round of Performance Review Team (PRT) meetings for 2008/09, which took place between 26^th January and 6^th February 2009 and monitored progress against the action sheets drawn up for the previous round of meetings. 

Members considered the Corporate PRT Report and raised queries, specifically on:

Reference No. 6 Cult24 – Produce a Dance Strategy – on target? – Further information was requested for future consideration.

Reference No. 8 Cult29 – Effective swimming development programme – Further information was requested on the effect the introduction of free swimming would have on the new Performance Indicator.

Reference No. 11, ICS06 – Abandoned calls to Customer Service Centres – Further information was requested.  The Head of Information and Customer Services was presently undertaking work in this area.

Reference No. 15, NU188 – Planning to adapt to climate change (half yearly) – Concerns were raised in connection with this and Reference Nos. 16 and 17.  The Head of Corporate Strategy advised that he was working with the Cabinet Member with Responsibility for the LSP Environment Thematic Group.  A procedure was in place for dealing with the long-term absence of staff through sickness and a graduate placement had been recruited from Lancaster University’s Environmental Sciences Department, through the One to One Programme.  Work was ongoing with the Energy Savings Trust.

Reference No. 16, PROP01 – Reduce overall energy use 08/09 and Reference No. 17 PROP02 – Reduce CO₂ emissions - The Head of Corporate Strategy advised that management, investment and change were required to improve energy efficiency and reduce CO₂ emissions and this had been recognised in the Council’s Budget.  Salt Ayre Sports Centre accounted for half of the Council’s energy bills and a special study had been commissioned involving staff.             The Climate Change Cabinet Liaison Group and Facilities Management were looking at ways of managing the issue efficiently.  Additionally, SMART targets linked into the Council’s 3-year strategy would ensure that performance was met.

With reference to Action Note, No. 5 – Request report back on Planning Service staffing levels due to downturn.  Less applications, opportunities for reduced capacity – details on any proposed changes to the staffing structure in Planning Services would be reported for future consideration by the Panel.

Resolved:

That the report and issues raised be noted.