Agenda item

A report by the Chief Executive and Director of Finance and Support Services setting out the corporate performance, finance, workforce, risk and capital programme positions as at the end of June 2023.

The Committee is asked to examine the data and supporting commentary for the Performance and Resources report and make any recommendations for action to the relevant Cabinet Member or Scrutiny Committee.

17.1     The Committee considered the Quarter 1 Performance and Resources Report by the Director of Finance and Support Services summarising the positions of finance, performance, risk, and workforce as at the end of June 2023 (copy appended to the signed minutes).

17.2     Summary of responses to Members’ questions and comments: -

·         The table of savings includes extra income of £6.3m, the non-delivery of savings at ‘significant risk or not delivered’ (red), but not those ‘at risk’ (amber), mitigations will be put in place

·         The Council monitors savings at ‘significant risk or not delivered’ (red) to see if they can be delivered differently if not, they are taken out of the budget

·         The underspend in Highways & Transport relates to a reduction in projected energy costs for the street lighting Private Finance Initiative contract and a reduced uptake of concessionary fare journeys - there has been an overspend on highways maintenance

·         The Council has budgeted for a 4% pay increase for staff and will use contingency funds to cover this if the award is higher

·         Grants tend to be allocated after the budget has been set so the Council assumes they will be fully spent on expenditure that it wouldn't otherwise be able to fund

·         Some grants come every year but vary in value, so spending plans will be aligned to the value of the grant when known

·         There may be new grants that may give opportunities to do new things, or spend on existing services

·         If a grant for a service is withdrawn, it is likely that the service would have to be withdrawn

·         The quarter 1 position contains indications that inflation is falling slowly, this will be monitored so inflation costs from contracts are known in advance. Planning for next year will include regular checks on assumptions to cover inflation

·         Investment income was set in the budget at a lower rate of interest than the Council is now getting – interest rates will be monitored and a realistic assumption of the rate for next year’s budget made

·         The Council purchases its energy through a consortium that gets the best deal possible

·         The additional £6.3m from the Business Rates and Collection Fund is the difference between what the Council thought would be the return and what it actually was from the district/borough councils. Action: The Director of Finance and Support Services to get more information from the district/borough councils on the breakdown of the Business Rates and Collection Fund returns

·         Capital Programme projects are looked at scheme by scheme with inflation built into the budget for each

·         Projects are taken forward when they are needed by services - where grant money is available, the work has to be done within certain timescales

·         The Asset Management Strategy shows when maintenance/repair work needs to be done on Council buildings

·         A backlog is building up on highways maintenance as this can only be done when the Council receives grants from Government – fewer grants have been received lately so the Council has put money into this area

·         Health & Safety issues are prioritised for maintenance

·         One West Sussex school is on the Government list of those affected by the use of reinforced autoclaved aerated concrete (raac), one academy has shut as a precaution (academies are responsible for their own maintenance)

·         The Government will pay for survey/repairs. Specialist surveyors are required but are hard to get and costly

·         Surveys could disturb asbestos that would then need to be removed.

·         There was a query as to whether the Council would have to find alternative school placements for children attending an academy if it had to close due to problems with raac

·         All Council buildings built or extended during the time raac was in use will be checked

·         Human Resources is looking at introducing a dignity/respect policy so staff are aware of what action they can take if abused

·         Corporate Risk 61 ‘a serious incident occurs resulting in the death or serious injury of a child’ relates to social care

·         The Council is looking at key performance indicator (KPI) targets for 2024/25 and will decide whether the KPI52 target is still appropriate

·         The business rates for the old Horsham fire station would have been paid through the Fire & Rescue Service budget, when the premises were vacated the costs for the building became the Council’s responsibility - it is a similar situation with Centenary House, Worthing where the length of vacancy has been longer than thought so the Council had not planned for higher costs

·         The development of Broadbridge Heath Park has been delayed by water neutrality and will go to tender when planning permission is granted

·         The Committee queried the Property Team performance in relation to delivering the schools programme

·         In April the One Public Estate partnership submitted two bids to the Brown Field Land Release Fund, the one for Arun was successful the one for Durrington was not

·         There was an overspend on additional costs associated with the Children’s statutory complaint process as there were more complaints than anticipated

·         There was a query as to how many new apprentices are Children Looked After - Action The Director of Human Resources & Organisational Development to check

·         Stay conversations have been introduced to see what can be done to stop people leaving the Council. A new exit survey has also been introduced asking why people leave - reasons include furthering career opportunities elsewhere and the cost of living

·         The agency matrix cost has decreased although the same number of agency staff has been employed – this is because of the type of staff employed e.g. less social workers

17.3       Resolved – that the Committee: -

                  i.        Recognises the financial challenges ahead and welcomes the assurance that these are continually monitored

                ii.        Welcomes the work that has been undertaken to review savings included within the current budget and that this will be monitored and managed through-out the year

               iii.        Welcomes the continuing work on property surveys in relation to the national situation with regard to reinforced autoclaved aerated concrete and would welcome any up-dates at the appropriate time on the survey results and the resultant risks (specific link to CR61 (A serious incident occurs resulting in death or serious injury of a child where the Council is found to have failed in their duty to safeguard, prevent or protect the child from harm))

               iv.        Requests that CR61 is reviewed and if necessary up-dated to include risks around property, not just social care

                v.        Requests an answer in relation to the County Council’s responsibilities around school places if an academy has to close

               vi.        Welcomes the review of Key Performance Indicators and any changes to targets to be more appropriate or stretching

             vii.        Requests that officers and Cabinet review how information on the Property Team performance is included in the Performance & Resources Report in future

            viii.        Would welcome information on the work officers are currently undertaking in terms of time lost due to sickness in days and costs at an appropriate time

               ix.        Welcomes the extra workforce information being included in this report

                x.        Requests further key details on health and safety of employees in future reports