South Northamptonshire Council Scrutiny 10 July 2019 March...

South Northamptonshire Council

Scrutiny

10 July 2019

Monthly Performance, Risk and Finance Report – March 2019 / End of year

Report of Assistant Director: Customers and Corporate Servicesand Assistant Director: Finance and Governance

This report is public

Purpose of reportThis report summarises the Council’s Performance, Risk and Finance monitoring position as at the end of each month.

1.0 Recommendations

The meeting is recommended:

1.1 To note the monthly Performance, Risk and Finance Monitoring Report.

1.2 To note that the Performance, Risk and Finance Monitoring Report is considered by Cabinet on a monthly basis.

1.3 To review and comment on the performance update for March (Appendix 2)

2.0 Introduction

2.1 The Council is committed to performance, risk and budget management and reviews progress against its corporate priorities on a monthly basis.

2.2 This report provides an update on progress made in 2018-19 to deliver the Council’s priorities through reporting on performance, the Leadership Risk Register and providing an update on the financial position.

2.3 The Council’s performance management framework sets out the key actions, projects and programmes of work that contribute to the delivery of the 2018-19 business plan and the priorities of the Council. These measures and key performance indicators are reported on a monthly basis to highlight progress, identify areas of good performance and actions that have been taken to address underperformance or delays.

2.4 The Council maintains a Leadership Risk Register that is reviewed on a monthly basis. The latest available version of the risk register at the date this report is published is included in this report.

2.5 The Report details section is split into three parts:

Performance Update Leadership Risk Register Update Finance Update

2.6 There are two appendices to this report:

Appendix 1 – 2018/19 Business Plan Appendix 2 – Monthly Performance Report

3.0 Report Details

Performance Update

3.1 The Council’s performance management framework sets out the key actions, projects and programmes of work that contribute to the delivery of the 2018-19 business plan (Appendix 1) and the priorities of the Council.

3.2 The 2018-19 business plan set out three strategic priorities: Protected, Green and Clean; Thriving Communities and Wellbeing; District of Opportunity and Growth.

3.3 This report provides a summary of the Council’s performance in delivering against each strategic priority. To measure performance a ‘traffic light’ system is used. Where performance is on or ahead of target it is rated green, where performance is slightly behind the target it is rated amber. A red rating indicated performance is off target.

Priority: Protected, Green and Clean

3.4 The Council is committed to protecting the natural environment and ensuring the character of the district is preserved and enhanced. Our commitment included working to ensure the district has high standards of environmental cleanliness and greater waste and recycling services. Maintaining the district as a low crime area is another key part of this priority and the Council is committed to working in partnership to deliver against this objective.

3.5 Overview of our performance against this strategic priority:

The Community Safety team continues to work with partners to identify and tackle community safety problems and trends in the district. A Rural Crime Plan was discussed at the South Northants Community Safety Partnership in March.

The Licensing Team maintains a focus on ensuring community safety as a key licensing outcome. The continue to assess and review the mandatory safeguarding awareness training for taxi licence applicants to ensure that it is still fit for purpose. All new applicants for taxi licences are required to undertake the training ahead of being issued with a licence.

The Watermeadows parkrun was officially started by Councillor Richard Dallyn, on Saturday (16 March). Now in its 5th week, the parkrun takes in a 5-kilometre path around the Watermeadows. It has been welcomed by the local community with attendance figures in the hundreds for the first few events. The free events take place every Saturday morning at over 1,400 locations in twenty-three countries across five continents. They are open to everyone. The Water meadows event was also held on 16th April to celebrate conservation and the community – working with Wildlife partners in a similar way to Wild Towcester event Easter 2018.

Priority: Thriving Communities and Wellbeing

3.6 The Council is committed to supporting our communities to thrive and to promoting the wellbeing of our residents. This priority includes supporting health and wellbeing, improving leisure facilities and delivering leisure activities and working in partnership with voluntary organisations to deliver services in a manner that safeguards children, young people and vulnerable adults. Another key aspect of this priority is preventing homelessness, the delivery of affordable housing and improving the condition of residential properties.


Enhance community resilience - Business Continuity arrangements include service level business continuity plans based on impact assessments which identify the critical functions provided by teams and the minimum resources required for continuation of functions.

Plans should ensure that critical services will continue to function in the event of a disruption, ensuring all services recover promptly.

A number of arrangements are in place to ensure robust emergency plans, including relationships with key partners, including facilitating the Inter Agency Group which plans for events at Silverstone in 2019, engaging with Parish Councils together with County Council. Attending and supporting regional and national exercises, conferences and training with key partners. This has included learning from those agencies involved in major terrorist and weather related incidents in recent years including Manchester, Salisbury, Lancaster and London. Working with the local resilience forums to assess risks and plan for foreseeable events and circumstances which could adversely impact on our communities.

Delivery of the welfare agenda has seen Internal and external partners invited to attend a new Universal Credit working group with the aim of supporting residents, landlords and the councils through this huge change. The first meeting is due to be held in May 19.

Performance on the average time taken to assess new claims and change events for Housing Benefit is excellent as at the end of 18-19.

Priority: District of Opportunity and Growth

3.8 The Council is committed to developing the local economy, promoting inward investment and delivering sustainable growth. This priority also contributes towards making great places to live, work, visit and invest through economic development and working in partnership to deliver strategic transport infrastructure projects.


Delivery of innovative and effective housing schemes - SNC is one of a small group of housing organisations working with Mayday Trust to pilot a person centred, strength based approach to housing and support services called Personal Transitions Service. The PTS service is offered to people with 'complex needs'.

In 2018/19:

- 28 people have met with and/or worked with a housing coach since April 2018

- 20 people working with the Housing Options Service were referred to the PTS for accommodation and support from a housing coach

In 2018-19, a total of 7 people have been accommodated by Mayday Trust, of these: 1 had sustained their accommodation for 12 months; 1 had sustained their accommodation for 6 months; 2 had a planned move into alternative (non-Mayday) accommodation.

Work to establish a pilot for a housing options outreach service in Northampton General Hospital is progressing well. Health sector colleagues have secured sufficient money to fund a post for 12 months. There is support from other local housing authorities in the county to work with the pilot post once established. The aim of the pilot is to reduce the number of cases and time that people remain in hospital when they are ready to be discharged as a result of housing issues. A meeting has been arranged in early May between health, South Northamptonshire Council, Daventry District Council and Northampton Borough Council to agree final arrangements of how the pilot will operate.

Local plan - The Council is preparing background documents for inform the Examination scheduled to begin during the week commencing June 10 2019. Due to staff leaving the Council the number of planning officers remaining in the team will reduce from a base of 6 officers to 3 from May 13 2019.

Summary of Performance

3.10 The Council reports on performance against 20 business plan measures and 12 key performance indicators on a monthly basis. Performance for this month is summarised in the table below. The full details, including commentary against each measure and key performance indicator can be found in Appendix 2.

3.11 Spotlight On: Each month this report will focus on a theme or service provided by the Council, highlighting how this contributes to the delivery of the strategic priorities and the key achievements delivered to date.

Community Services – Arts Development and Community engagement

The community services team aims to deliver arts development by:-

Using arts & cultural activities to engage and strengthen communities and improve health & wellbeing across the district

Taking Part initiatives delivered across the district

Taking pART - The scheme which encourages people of all ages to be creative has supported a successful community Big Draw event at Stoke Bruerne in partnership with Inland Waterways Trust and several art workshops at Yardley Arts (in Yardley Hastings) with local primary school pupils and families plus half-term animation workshops, which have added to the successful development of this Community Interest Company that provides good opportunities for amateur and professional artists.

Arts events calendar – an events calendar is prepared and distributed monthly to promote opportunities. Available as a download from SNC website (Leisure/Arts & Culture).

The Heseltine Gallery - The Friends of the Heseltine Gallery is a voluntary group supported by the SNC Arts Partner. They have managed to keep the gallery going by working with Chenderit School to agree a future plan and securing funding through Middleton Cheney New Homes

money to engage a freelance Project Manager for 18 months from April. Their March exhibition is a major fundraising activity for which artists have donated artwork to be sold by Prize Draw and auction.

South Northamptonshire Arts is a flourishing community and network of artists who organise an annual Art Trail in October. 2018 was the fifth year supported with a community grant to help with marketing costs. Nearly 70 local artists took part, exhibiting and selling work in 16 venues around the district plus 4 just over the Daventry border. A central display was mounted in Towcester Library. Venues include artists’ own studios, churches and chapels, village halls, the Canal Museum rooms and galleries, with group shows in the larger spaces. All types of artwork were on show and being demonstrated by the makers. Attendances increase each year, with many visitors going to multiple venues on the trail and engaging with the artists.

Other community arts groups or events supported with event promotion, advice and community grant funding during 2018 include:

Phoenix Community Cinema – regular screenings in village halls in Blakesley, Blisworth, Cogenhoe, Culworth, Evenley, Kings Sutton, Marston St. Lawrence, Milton Malsor, Moreton Pinkney, Nether Heyford, Paulerspury, Whittlebury and in Brackley Library. Other villages previously using the service have since bought their own film equipment and continue to show films.

Fiori Musicali concerts and ‘meet the musician’ events in churches (Castle Ashby, Canons Ashby, Passenham) and historic houses (Aynho, Sulgrave) and choir tutoring.

Towcester Midsummer Music – fundraising by Rotary & Lions Clubs Brackley Music in the Park – Free, organised by Brackley Folk Club Pattishall Picnic in the Park – family music festival organised by a voluntary group Brackley Youth Theatre – Edinburgh Festival performances with new equipment. Brackley Players – equipment for use in new facility Warts & All Theatre Co. – After School drama clubs project Brackley Community Carnival. One-off events organised by Farthinghoe Village Hall (Royal Wedding), Grange

Park PC (music for community festival), Towcester Rotary (Welsh Male Voice Choir concert).

Risk Update

3.12 The Council maintains a Leadership Risk Register that is reviewed on a monthly basis. The latest available version of the risk register at the date this report is published is included in this report.

3.13 The heat map below shows the overall position of all risks contained within the Leadership Risk Register.

3.14 The table below provides an overview of changes made to the Leadership Risk Register during the past month. Any significant changes since the publication of the report will be reported verbally at the meeting.

Leadership Risk Res Score Direction Latest UpdateL01 Financial Resilience 9 Low risk ↔ Reviewed, no changes.

L02 Statutory functions 9 Low risk ↔ Reviewed, no changes.

L03 Lack of management Capacity 12 Medium risk ↔ Reviewed, no changes.

L04 Local Plan 8 Low risk ↔ Reviewed, no changes.

L05 Business Continuity 9 Low risk ↔ Reviewed, no changes.L06 Partnering 12 Medium risk ↔ Reviewed, no change.L07 Emergency Planning 12 Medium risk ↔ Reviewed, no change.L08 Health & Safety 12 Medium risk ↔ Reviewed, controls, risk

manager, mitigating actions and comments updated.

L09 Cyber Security 15 Medium risk ↔ Reviewed, no changes. L10 Safeguarding the Vulnerable 8 Low risk ↔ Reviewed, no change.

L11 Income generation through council owned companies

9 Medium risk ↔ Reviewed, no changes.

L12 Financial sustainability of third party third party suppliers

8 Low risk ↔ Reviewed, no change.

L13 Local Government Reorganisation

9 Medium risk ↔ Reviewed, no change.

L14 Corporate Governance 9 Low risk ↔ Reviewed, commentary updated.

Finance Update

3.15 We are continuing to develop the way we report and the ease of access and understanding of information we provide to ensure Members, and the public, are fully aware of the financial position of the Council.

In previous years financial reporting has been on a quarterly basis. This frequency of information is being improved during 2018/19. We have introduced monthly monitoring and reporting across the organisation. This improvement in reporting is providing budget managers, senior leadership and members with more up to date information regarding the financial position and outlook for the Council.

The finance team has aligned itself with the business areas to provide better support and consistency and continuity of advice moving forward across both revenue and capital budget areas in addition to monitoring any over funding levels.

The risk based monitoring undertaken to date has highlighted areas of risk at this stage. The variances to date are set out below. All services are reviewing their forecasts to identify savings and efficiencies which may mitigate some of the risks being identified. Further risk to this position will be highlighted and detailed in future reports.

3.16 Revenue Position

The Council’s forecast financial position is set out in the table below.

The Council’s forecast financial position is set out in the table below.

Revenue Monitoring

(Brackets denotes an Underspend)

Budget£000

Forecast£000

Current Month

Variances£000

Prior Month

Variances£000

Corporate Services 561 561 - -

CORPORATE SERVICES TOTAL 561 561 - -

Communities 1,099 1,099 - -

Leisure & Sport 112 98 (14) 0

Housing 1,059 1,062 3 (22)

WELLBEING TOTAL 2,270 2,259 (11) (22)

Leisure & Sport (£14k) additional income due to inflation on the Parkwood contract.

Housing £3k, £33k additional resources cost to support the implementation of the new legislation on Houses with Multiple Occupancy “HMO” for extra resource, however further vacant posts has resulted in a savings of (£30k).

Planning Policy & Development 1,385 1,505 120 117

Economy & Regeneration 678 692 14 -

PLACE & GROWTH TOTAL 2,063 2,197 134 117

Planning Policy & Development £120k comprises £73k under recovery of planning income due to the volatility in the number of expected planning applications; there is an earmarked reserve which has been utilised to assist with managing this risk; and £47k on Building Control due to engagement of agency staffs caused by shortage of skilled personnel to fill the vacant roles.

Economy & Regeneration £14k for the Executive Director post of Place and Growth.

Environmental Services 3,129 3,230 101 55

Environmental Health & Licensing 578 588 10 -

ENVIRONMENT TOTAL 3,707 3,818 111 55

Environmental Services £101k mainly made up of £92k due to increase in the price charge per tonne (Gate Fees) for dry goods recycling and the installation of car park barriers £9k.

Environmental Health & Licensing £10k due to a reduction in the volume of taxi licenses issued and a license fee reduction.

Law & Governance 944 877 (67) (13)

Finance & Procurement 1,778 1,965 187 230

Property Investment & Contract Management 707 711 4 13

FINANCE & GOVERNANCE TOTAL 3,429 3,553 124 230

Law and Governance (£67k) made up of (£13k) savings on subscription within Corporate & Democratic Core and (£54k) vacant posts within Legal.

Finance & Procurement £187k consists of £40k additional cost further to outsourcing the Corporate Fraud Team to OCC and National Fraud Initiative "NFI" work and £147k forecast overspend arising from interim staff costs required to support the Council in meeting financial reporting deadlines and implementing financial management improvements.

Property Investment & Contract Management £4K shortfall of income across properties & PV Screen.

Customers & IT services 1,734 1,763 29 -

Strategic Marketing & Communications 340 382 42 23

HR, OD & Payroll 326 347 21 -

Performance & Transformation 716 696 (20) 35

CUSTOMERS & IT SERVICES TOTAL 3,116 3,188 72 58

Customers & IT Services £29k largely due to an under recovery of income from CSN £40k where the contract relates to 10 months, not 12 months and (£11K) saving due a vacancy.

Strategic Marketing & Communications £42k overspend for the additional Interim Director costs.

HR, OD & Payroll £21k overspend relating to additional software system costs.

Performance & Transformation (£20k) due to a reduced cost for the Director post and additional Land Charges income.

TOTAL DIRECTORATES 15,146 15,576 430 438

Use of Reserves (370) (369) 1 450

Interest on Investments (270) (362) (92) (98)

Pension Costs 272 285 13 (15)

Accumulated Absences 0 (4) (4) -

Capital Charges (978) (955) 23 -

EXECUTIVE MATTERS TOTAL (1,346) (1,405) (59) 337

Use of Reserves £1k for transfers to specific ear marked reserves.

Interest on Investment (£92k) increase in interest income from Treasury Management.

Pension Costs £13k additional pension costs.

Capital Charges £23k under recovery of capital charges.

COST OF SERVICES 13,800 14,171 371 775

Funding

(Brackets denotes an Underspend)Budget

£000Forecast

£000

Current Month

Variances£000

Prior Month

Variances£000

Business Rates Baseline (1,814) (1,814) - -

Rural Services Delivery Grant (189) (189) - -

FORMULA GRANT EQUIVALENT (2,003) (2,003) - -

New Homes Bonus (2,445) (2,445) - -

GRANTS AWARDED TOTAL (2,445) (2,445) - -

BUSINESS RATES GROWTH TOTAL (2,727) (2,915) (188) (80)

Retained Business Rates (£188k) (£81k) Increase is due to growth in new businesses in the SNC District and (£107k) for Renewable energy.

Council Tax (6,519) (6,519) - -

Collection Fund (106) (106) - -

COUNCIL TAX INCOME TOTAL (6,625) (6,625) - -

TOTAL INCOME (13,800) (13,988) (188) (80)

(Surplus)/Deficit 183 245

0500

1,0001,5002,0002,5003,0003,5004,000

Wellbeing Place & Growth Environment

Finance & Governance,

Corporate Services & Executive

Matters

Customers & IT Services

Budget 2,270 2,063 3,707 2,644 3,116Forecast 2,259 2,197 3,818 2,709 3,188

(11)

134 111

65 72

Wellbeing Place & Growth Environment Finance & Governance, Corporate Services &

Executive Matters


Variances in £000s'

The Council is forecasting some variance with its overall expectations. The graph above shows that the forecast overspends do not significantly impact upon the overall profile of spend for the Council.

3.17 Capital Programme

A summary of the capital programme forecast is set out in the table below. The detailed Capital programme is shown in the appendices to this report.

Directorate Budget£000

Forecast £000

Re-profiled

into 2019/20

£000

Current Period

Variances£000

Prior PeriodVariances

£000

Wellbeing 4,443 3,183 1,110 (150) (100)

Environment 1,184 833 345 (6) (6)

Finance & Governance 1,329 482 858 11 11

Customers & IT Services 6,307 235 1,031 (5,041) (4,738)

Total 13,263 4,734 3,344 (5,186) (4,833)

Re-Profiled into 2019/20:Wellbeing £1,110k Comprises £397k for "Disability Facilities Grant" following external finding from Better Care, the fund will not be required this year, hence re-profiled to 2019/20. Housing Loan Fund, due to lack of demand for the loan, as originally envisaged there is a need for the loan, therefore future tranches should remain in place, hence the £150k budget has been re-profiled to 2019/20, and £318k retention monies on Brackley Pool re-profiled into 19/20 to allow for 12 month defects period. Due to decrease in need for the Discretionary Grants - Emergency assistance £50k has been profiled for 2019/20, (it is anticipated that more fund will be required in 2019/20). The Community Funding Panel have approved projects to utilise this budget, although completion is expected in 2019/20 £169k. Leisure Centre Condition Surveys £26k remaining budget will be utilised for Dilapidation work in line with agreed schedule.

Environment £345k made up of £20k container Bin Replacement, £316k Vehicle Replacement Programme and £9k for the upgrading or the M3 Assure system will not be required in 2018/19; but in the next budget year, hence re-profiled to 2019/20.

Finance & Governance £858k comprises £142k budget for 2 Whittons Lane which is currently at design stage and subject to planning permission hence completion is schedule for 2019/20; £40k for Middleton Cheney Church Yards work, due to the uncertainty of when the plan will be approved, the work is scheduled for completion in 2019/20; £7k Towcester Mill discharge planning conditions;£232k Ecology survey taken place, 'bats' identified, due to ecology restrictions works and planning stage, forecast works to start in May-19 hence re-profiled to 2019/20;£389k Towcester Town Centre Regeneration and £48k Brackley Regeneration where outstanding payments being finalised in 2019/20.

Customers & IT Services £1,031k Comprises £120k CRM/Improved Customer Services; £61k 5yr Rolling ICT Replacement Programme; £519k Website Development; £147kLand & Property Harmonisation;£53k Customer Excellent & Digital Harmonisation; £119k Unified Communications and £12k HR/Payroll system replacement where projects are ongoing for completion in 2019/20.

Current Period Variances:Wellbeing (£150k) of which, (£50k) Discretionary Grants Domestic Properties and a (£100k) budget for Empty Homes Work-in-default Recoverable; no longer required.

Environment (£6k) vehicle lifting equipment budgets are no longer required.

Finance & Governance £11k additional £10k overspend due to the changes required following the Ecology survey (bats) for Farthinghoe Recycling Depot, £3k for Brackley Regeneration for unplanned roofing work, a (£1k) saving on completion of the Watermeadows Bridge & Fencing project and (£1k) saving on the completion of the EPC Certification and compliance.

Customers & IT Services (£5,041k) of which (£4,900k) Local Development Company budget no longer required, Project decision taken at Cabinet on 8 October and additional (£141k) budget no longer required, originally planned for the Email archiving, ICT Infrastructure Replacement Programme, Microsoft Licensing & Support, Business System Harmonisation, Desktop PC & Server Replacement projects.

(150)

11

(5,041)

1,110

345

858

3,183

833

482

235

4,443

1,184

1,329

6,307

Wellbeing £000

Environment£000

Finance & Governance

£000

Customers & IT

Services£000

BudgetForecastRe-profiled into 2019/20Re-profiled beyond 2019/20Variance

1,031

(6)

Wellbeing, 33%

Finance & Governance, 10%

Customers & IT Services, 48%


48%

Local Development

Company

Website Redevelopment

Wellbeing33%

Brackley Pool

Disabled Facilities Grant

Finance & Governance10%

Towcester Town Centre

Regeneration

Brackley Regeneration

Environment9%

Vehicle Replacement Programme

Container Bin Replacement

Where a capital project spans more than one financial year or there are delays to the project, re-phasing or re-profiling of expenditure may be needed. Re-profiling and phasing updates to capital projects have been identified.

Reserves

Reserves are held to ensure the Council can manage and mitigate current and future risk. The Council regularly reviews its levels of reserves to ensure they are adequate. They are more specifically reviewed as part of the budget setting process and as part of the year end closure of accounts. Earmarked reserves are held for specific purposes and to manage specific risks.

During 2018/19 the Council has utilised reserves to meet its service objectives as set out in the budget.

4.0 Conclusion and Reasons for Recommendations

4.1 It is recommended that the contents of this report are noted.

5.0 Consultation

5.1 This report sets out performance, risk and budgetary information from the previous month and as such no formal consultation on the content or recommendations is required.

Environment, 9%

6.0 Alternative Options and Reasons for Rejection

6.1 The following alternative options have been identified and rejected for the reasons as set out below.

Option 1: This report illustrates the Council’s performance against the 2018-19 business plan. As this is a monitoring report, no further options have been considered. However, members may wish to request that officers provide additional information.

7.0 Implications

Financial and Resource Implications

7.1 The financial implications are detailed within section 3.15 of this report.

Comments checked by:

Andrew Hunkin, Executive Director: [email protected]

Legal Implications

7.2 There are no legal implications from this report.


Andrew Hunkin, Executive Director: [email protected]

Risk management

7.3 This report contains a full update with regards to the Council’s risk position at the end of the previous month. A risk management strategy is in place and the risk register has been fully reviewed.


Louise Tustian, Team Leader Insight Team 01295 [email protected]

8.0 Decision Information

Key Decision

Financial Threshold Met: No

Community Impact Threshold Met: No

Wards Affected

mailto:[email protected]



All

Links to Corporate Plan and Policy Framework

All

Lead Councillors –

Councillor Phil Bignell – Deputy Leader and Portfolio Holder for Customers and Service DevelopmentCouncillor Peter Rawlinson – Portfolio Holder for Finance and Governance

Document InformationAppendix No TitleAppendix 1Appendix 2

2018/19 Business Plan Monthly Performance Report

Background PapersNoneReport Author Geoff Kent – Assistant Director: Customers and Corporate

ServicesKelly Watson – Assistant Director: Finance and Governance

Contact Information

[email protected]

[email protected]



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