Agenda item

Total Performance Monitor - Qtr 4 End of Year 2019/20

A report by the Director of Finance and Support Services setting out the performance and finance position as at Quarter 4 End of Year 2019/20.

 

The Committee is asked to examine the data and supporting commentary for the Quarter 4 End of Year 2019/20 TPM and make any recommendations for action to the relevant Cabinet Member or Scrutiny Committee.

Minutes:

66.1  The Committee considered the Quarter 4 End of Year 2019/20 Total Performance Monitor (TPM) report from the Director of Finance and Support Services (copy appended to the signed minutes).

 

66.2  The Cabinet Member for Finance introduced the report and informed the Committee that the financial outturn was in line with that forecasted, ending the year with £0.5m less overspend than predicted.  The overspend will be funded by a draw down from reserve funds as outlined in the report.  2019/20 has been a testing year due to the £17m fund provided for the Children’s Services Improvement Plan and £1.4m for the Fire & Rescue Service Improvement Plan; interim reports show both Plans are on course to deliver the expected improvements. The outbreak of Covid-19 has been a further budget challenge at the end of year 2019/20, and all 2020/21 budget assumptions will be reviewed in light of Covid-19.  The Cabinet Member welcomed comments from the Committee ahead of the decision report being considered by Cabinet on 26 May 2020.

 

66.3  The Director of Finance and Support Services introduced the finance aspect of the report and highlighted that the forecasting for the year was realistic.  Capital receipts flexibility was used in October 2019 to fund the overspend.  The failure to deliver savings in-year is significant and officers understand why that occurred.  The current challenge regarding Covid-19 leads to uncertain demands for the year 2020/21 and a more fragile financial position; the reset West Sussex Plan will reconsider the resource implications for the current year.

 

66.4  The Committee made comments in relation to the TPM finance report including those that follow. It:

·       Recognised that 2019/20 has presented financial challenges, that the eventual outturn was forecast in the first half of the year and brought under control during the second half of the year resulting in further potential overspends being avoided.  The Committee noted that the report largely reflects the position prior to the effects attributable to the Covid-19 pandemic.

·       Highlighted the £15m overspend for 2019/20, the current £85m Covid-19 spend, and the £34m fund provided by central Government towards the additional cost, and queried whether the Council will face future financial difficulties.  Queried whether further funds will come from central government to help fund the Covid-19 response and how our financial situation compares to that of other authorities.  The Leader explained the situation is being closely monitored, the Council has received £36m from central government already, and further funds have been committed by the Minister for Housing, Communities and Local Government.  The Leader meets weekly with West Sussex MPs who support the Council and represent to central Government, in addition to regular County Council Network (CCN) meetings which represent the Council’s needs and presses for further funding.

·       Noted the significant budget funding uplift required in 2019/20 due to the Children’s Services and Fire & Rescue Service Improvement Plans needed to bring the services up to standard.  Noted that work is continuing and both Improvement Plans are on the right course, however the improvements made are yet to be demonstrated in the TPM report.

·       Recognised the financial challenges to achieve savings and will closely monitor the situation through future TPM quarterly reports in 2020/21.  A balance between savings, service delivery and future financial resilience is required; the outfall of Covid-19 effects will be seen in the 2020/21 Quarter 1 TPM report.

·       Queried whether the Council has the necessary skills and capabilities to deliver planned savings whilst maintaining an appropriate level of performance, and also replenish its reserves.  The Cabinet Member for Finance stated the Council has a prudent financial record, with a history of replenishment of reserves since 2010, and is confident that it can be achieved despite Covid-19 challenges.  The Leader explained that the reset of the West Sussex Plan and governance arrangements will create the ability to deliver savings and that the effectiveness of the savings plan will also be reviewed.

·       Commented that the risk of failure of social care providers is a concern during the pandemic.  The Director of Finance and Support Services commented that the risk in this area is increased, but officers are looking at how to support providers and how to deal with care homes that fail as a result of Covid-19.

·       Queried why there are a disproportionate number of people in residential care in West Sussex compared to nationally accepted good practice and what is being done to mitigate this.  The Cabinet Member for Adults and Health explained that local levels were much higher than national levels prior to 2013 however officers are working to reduce this.  April 2020 saw a 20% increase in domiciliary care provision attributable to Covid-19, so the aim is to accelerate this in future by encouraging more elderly residents to remain in their own homes and maximise their independence.

·       Expressed concern regarding the potential “cliff edge” of social care staff leaving the authority as a result of reaching the end of their tie-in period and queried what steps are being taken to mitigate this risk.  The Cabinet Member for Children and Young People explained a Transformation Director has been appointed to oversee and mitigate against this risk, reduce the cost pressures, and look at the overall recruitment and retention offer to social workers.  The Interim Director of Human Resources and Organisational Change confirmed the HR team are supporting the Director of Children’s Services to address any potential shortfall and plans to move away from the current recruitment/retention model.

·       Expressed concern at the effect on the budget of continued increase in school transport costs, and queried whether it is comparable to other authorities and if providing the service offers value for money.  The Cabinet Member for Education and Skills commented that children with an Education Health Care Plan (EHCP) are the major cost driver for the school transport budget, but West Sussex levels are comparable to other authorities.

·       In relation to the extended mortuary services to prepare for the pandemic, queried whether the previously abandoned plans to build a permanent extra mortuary within the county will be reconsidered.  The Cabinet Member for Adults and Health explained that ordinarily mortuary provision for the county is adequate, however the paused project will be reconsidered following Covid-19. 

·       Commented in relation to the £20.5m business rates pilot funds reserved for the Gigabit project, that following the Covid-19 outbreak this project may not be a priority and queried whether the funds could be given to local councils or small businesses to help plug the funding gap.  The Cabinet Member for Economy and Corporate Resources commented that the numbers of residents having to work from home during the current pandemic underlines the importance of the gigabit project, especially to residents in rural areas where poor connectivity can prevent them from working remotely.  Some of the funding is ringfenced and cannot be reallocated, however as the project is very important to the county and supports Government priorities it is likely to continue.

 

66.5  The Head of Intelligence and Performance introduced the performance aspect of the TPM report and highlighted that the outturn performance was in line with the expectations forecast.  Half of the 2019/20 performance measures have been met (33), with 16 of the 67 measures not achieved and the remaining 18 measures partly achieved.

 

66.6  The Committee made comments in relation to the TPM performance report including those that follow. It:

·       Highlighted that 24% of the performance measures were not met, and noted there are many contributing factors behind this. 

·       Commented that the West Sussex economy and communities have changed substantially as a result of the Covid-19 pandemic, strongly supported a reset of the West Sussex Plan priorities and re-evaluation of the TPM performance indicators, and requested these come before the Committee for scrutiny before they are formally approved.  The Leader agreed that the measures should be reconsidered in line with his earlier comments regarding resetting the West Sussex Plan and supporting policies.  It is hoped draft documents will be produced in July and these will come forward for scrutiny at an appropriate time.

·       Recognised performance improvements have been made that have not yet fed through to successful key performance indicator measures in the TPM report.  Noted that improvement will be difficult to gauge once the effect of the Covid-19 pandemic is also shown in the next quarterly report and impacts on the rest of 2020/21.

·       Commented that measure 22 – Business Survival rates - were down in 2018/19, and can be expected to be further reduced due to Covid-19 which will be shown in the 2020/21 quarter 1 TPM report.  The Cabinet Member for Economy and Corporate Resources agreed and informed Members that he is currently reviewing an economic recovery document received from the Government and will address business survival rates in the next TPM report. 

·       Expressed concern that resident’s level of satisfaction for services received achieved 46% against the target of 75% for 2019/20.  The Cabinet Member for Finance commented that in light of budget challenges clear messaging is needed to manage the expectations of residents towards a reasonable statutory expectation.

·       In relation to measure 31 - Adults with learning disabilities who are in paid employment - commented that an element missing from the good work already complete is a list of disability friendly employers within West Sussex and suggested this be considered.  The Cabinet Member for Adults and Health welcomed this suggestion and will take this onboard.

·       Highlighted the poor performance of measure 19 – Reoffending rates for children and young people.  The Cabinet Member for Children and Young People commented that the poor performance shown is due to a lag in the figures for reoffending and will provide updated information to the Committee.

·       Queried whether the performance of measure 16a – Countywide take up of free early education and childcare (age 3-4) - was poor compared with our neighbouring authorities.  The Cabinet Member for Children and Young People will provide this information to the Committee.

 

66.7  The Cabinet Member for Economy and Corporate Resources introduced the Workforce section of the TPM, highlighting that the measure previously requested by the Committee for managers completing formal appraisal training is included in the report.  A reduction has been seen in the rate of completed Staff Inductions which is attributed to Covid-19, as is an increase in staff sickness in quarter 4.

 

66.8  The Committee made comments in relation to the TPM workforce report including those that follow. It:

·       Commented that given the rate of completed staff inductions has fallen to 64% compared with a target of 90%, how are officers ensuring new starters complete their work safely and in compliance with Council policies, and have remote training sessions been considered to replace face to face sessions.  The Cabinet Member for Economy and Corporate Resources commented that the induction programme is being converted to a virtual programme where possible, and potential safety issues are addressed by line managers.  The Interim Director of Human Resources and Organisational Change commented that for all new staff recruited during the Covid-19 pandemic measures have been put in place to ensure safe working practices and Health and Safety Act compliance.

·       Commented that Managers have a responsibility to ensure their staff work in a safe way, and sought reassurance that this obligation was being actioned given the rates of long and short term sickness outlined in the report [para 111.].  Queried if the sickness figures were included in the RIDDOR statistics and requested the information be made available to the Committee.  The Cabinet Member for Economy and Corporate Resources confirmed the bulk of the sickness statistics are included within the RIDDOR report and this will be made available to the Committee.  The Interim Director of Human Resources and Organisational Change confirmed staff are currently working in a risk-based way and that the health and safety team are ensuring safe working is implemented.

 

66.9  The Director of Finance and Support Services introduced the Transformation, Risk and Covid-19 aspects of the report, noting that the risk register was provided for information and the financial cost of Covid-19 is still in progress.

 

66.10  The Committee made comments in relation to the TPM Transformation, Risk and Covid-19 sections including those that follow. It:

·       Queried what measures are being taken to minimise expenditure on transformation projects considered at risk of being curtailed or not delivering the planned outcomes.  The Cabinet Member for Economy and Corporate Resources confirmed the transformation programme is being kept under review and projects will be remodelled or curtailed as required.

·       Queried when the results of the post-Covid service led improvement plan would be available for scrutiny by this Committee.  The Cabinet Member for Economy and Corporate Resources will confirm an expected timeline to the Committee.

·       Queried why a large and costly transformation project was allowed to continue with little Member oversight, and how this will proceed in future.  Members suggested that future governance and Member oversight arrangements around the transformation programme are reviewed and brought to the committee for future scrutiny, and that an Access Panel be considered to provide the approval to access ongoing funds.  The Cabinet Member for Economy and Corporate Resources noted that the spend on consultants for the project was not wasted as it has carried over into the service led improvement programme, the benefits of which are outlined in that report [see item 68.].  The necessary transformation can be delivered and scrutiny has been encouraged.  The Cabinet Member welcomed suggestions on improvements to the programme’s governance, will consider the measures suggested, and will report back to a future meeting of the Committee.

·       In relation to corporate risk no.22 which considers the impact of Covid-19 and other issues on the cost of Council services and the financial impacts on the Council arising from the pandemic emergency, queried why the general economic risks to the community have not been identified as a risk and given due consideration.  The Director of Finance and Support Services confirmed the Covid impact on the wider community was being considered as it affects the Council’s receipt from business rates, council tax, house building etc., and work to encourage the local economy will form part of the discussions in resetting the West Sussex Plan and supporting policies.

·       Commented that the lessons learned following the Covid-19 pandemic should be reviewed for all services, along with resident’s future expectations of Council services.

·       Commented that the Secretary of State for Transport recently detailed an ‘emergency action travel fund’ of £250m, and sought confirmation of the amount the Council expects to receive and what action can be taken to ensure identified projects are able to progress quickly.

 

66.11  The Committee agreed that the recommendations in the decision report to utilise reserves to meet the expenditure requirement and to allocate the contingency budget as set out in paragraph 1.8 of the decision report be supported.

 

66.12  Resolved:

 

1)   That the Committee recognise 2019/20 has been a difficult year, the eventual outturn was forecast in the first half year, however this was brought under control during the second half of the year resulting in further potential overspends being avoided. Noted that the report is prior to the effects attributable to Covid-19;

 

2)   That the committee recognises the ongoing financial challenges of Covid-19 and supports the work of the Leader in liaising with Government, local MPs and the LGA in order to recognise the challenges being faced by the County Council;

 

3)   That the Committee notes the significant budget funding uplift required due to the Children’s Services and Fire & Rescue Service Improvement Plans required to bring the services up to standard, that both Improvement Plans are on the right course and work is continuing, and that the improvements made are not seen straight away in the TPM;

 

4)   That the committee recognises the financial challenges to achieve savings and will closely monitor the situation through future TPM quarterly reports in 2020/21. It acknowledges the balance needed between savings, service delivery and future financial resilience, and anticipates seeing the outfall of Covid-19 in the 2020/21 Quarter 1 TPM report;

 

5)   That the Committee recognises the lessons learned following the Covid-19 pandemic should be reviewed for all services, along with resident’s expectations of Council services;

 

6)   That the committee strongly supports an urgent reset of the West Sussex Plan, priorities and relevant Council policies and requests that the Committee scrutinise these at the appropriate time;

 

7)   That the Committee recognises performance improvements have been made that have not yet fed through to successful key performance indicator measures in the TPM report, however also recognises that this will be difficult to gauge once the effect of the Covid-19 pandemic is shown in the next quarterly report and impacts on the rest of the year’s performance;

 

8)   That the committee recommends the governance arrangements around the transformation programme be reviewed, to include Member oversight, and that this is brought to the committee for future scrutiny;

 

9)   The committee requests information in relation to the ‘emergency travel fund’ and what action can be taken to ensure identified projects are able to progress quickly; and that

 

10) The committee supports:

a.   the requirement to utilise reserves to meet the expenditure requirement, and

b.   support the allocation of the contingency budget set out in paragraph 1.8 of the decision report presented to the Committee.

Supporting documents: