Agenda item

A report by the Director of Finance and Support Services setting out the finance, performance, Improvement Plan, workforce, and risk positions of the authority as at the end of June 2020.

The Committee is asked to examine the data and supporting commentary for the Quarter 1 TPM and make any recommendations for action to the relevant Cabinet Member or Scrutiny Committee.  The Committee should particularly focus on the impact of the COVID-19 pandemic affecting the financial, performance and risk to the Council, and the suggested changes to performance measures and targets.

The Chairmen of the service scrutiny committees will be invited to inform the Committee of any financial, performance or risk issues identified within their portfolio areas over the past quarter.

82.1  The Committee considered the Quarter 1 Total Performance Monitor (TPM) report from the Director of Finance and Support Services (copy appended to the signed minutes).

82.2  The Cabinet Member for Finance introduced the report, noting it is the first full quarterly report showing the effect of COVID-19.  Key spend increases are expected in the children looked after (CLA) service and home to school transport.  Cases of COVID are rising in the UK and the chance of a second wave with further lockdown would greatly affect both the national and local economy.

82.3  The Chairmen of the service scrutiny committees present were invited to present a brief update on the current issues and work of their committees.

82.4  The Director of Finance and Support Services introduced the finance aspect of the report, highlighting that financial performance is very challenging at the current time and the council are lobbying for additional COVID funds.  The Medium-Term Financial Strategy (MTFS) section of the report looks forward at the issues faced and the uncertainty of funding. 

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

·       Expressed concern that incidences of unsafe practice and failure to meet statutory duties have not been picked up by management or shown in the performance measures and audit processes, particularly in relation to mental health services.  Further agreed the Regulation, Audit and Accounts Committee (RAAC) should be asked to review the audit planning processes in order to highlight issues earlier in relation to both financial and operational control processes. 

·       Questioned whether empty residential care beds provided through the block contract could be used for respite care and how the Adult Services budget could be balanced without a reduction in service given the significant increase in costs.  The Cabinet Member for Adults and Health recognised the decrease in numbers accessing residential care at the moment which was due to a national concern and confidence in the care sector during the COVID-19 situation.  It was also recognised that organising respite care during the COVID crisis has been difficult.

·       Commented that proper adult social care funding is needed, and queried if the service are managing with the existing levels of mental health staff or needing to increasingly rely on volunteers.  The Cabinet Member for Adults and Health confirmed there is a shortage in the service and work is underway in trying to attract more support.  Redundancies at Gatwick Airport as a result of COVID have provided some recruitment opportunities for care workers, and the service are working with local schools, colleges and universities to promote Healthcare as a career option.  A website ‘Proud to Care’ has been developed to encourage recruitment in the sector.  The Council continues to lobby Government for proper social care funding.

·       Supported bringing the situation in relation to care market pressures to the Governments’ attention and supported the HASC Enquiry Day in January which will also consider looking at care market pressures.

·       Commented on the increased demand in the Children Looked After (CLA) and High Needs Block services.  Queried whether a change in policy or socio-economics had caused the increase in numbers of CLA, whether the numbers of CLA were expected to continue to rise given the public health pandemic, and queried in relation to the increased budget gap in both services whether the right delivery models were in place to provide these essential services.  The Cabinet Member for Children and Young people explained that there was a significant increase in demand for CLA placement, with the service further under pressure due to COVID-19.  An Access to Resources Panel has been set up to ensure a good delivery plan and value for money but the benefit of this will not be seen until the next financial year.  The service finance is affected by the three children’s homes currently closed for refurbishment; these are due to re-open in March 2021 which will reduce costs.  The Cabinet Member for Children and Young People undertook to provide further information on the causes of the increased numbers of CLA.

·       Queried whether the right delivery model was in place for a cost effective service provision given the increase in numbers of children with an Education, Health and Care Plan (EHCP) and the budget strain on schools.  The Cabinet Member for Education and Skills commented that the delivery model was not as effective as it could be, as 650 children attend Independent or out of county schools rather than schools within West Sussex. Research is being completed on future special education needs demand which will provide useful information for school place planning; engagement with Further Education colleges in the county to gauge their special educational needs demand will also being undertaken. 

·       Commented that the High Needs Block from the Dedicated Schools Grant (DSG) is significantly raised and queried how this compares to neighbouring counties.  The Cabinet Member for Education and Skills will provide detailed figures to the Committee.  The Director of Finance and Support Services commented the overspend for DSG is not as high as other authorities but that lobbying Government for sufficient funding should continue.

·       Recognised there is to be a cross-cutting Home to School Transport Task and Finish Group, with details of remit and Terms of Reference to be discussed with officers and the Chairman of CYPSSC shortly.

·       Queried what the cost to the Council has been for addressing Ash Dieback, and how this has been addressed with private landowners adjacent to public highways.  The Cabinet Member for Highways and Infrastructure commented that inspections are underway but that costs could be significant, and undertook to provide figures to the Committee.

82.6  The Interim Director of HR and Organisational Change introduced the Workforce section of the TPM, highlighting that the council should be proud of the workforce who have been under pressure, with many staff re-deployed, adapting or stepping-up to additional roles.  An increase in mental health sickness has been seen and there is a drive for staff to recognise and talk about mental health.  Support for flexible working has been provided which has also reduced the council’s carbon footprint. 

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

·       Queried whether staff training has continued and moved to an online/virtual platform, whether this has been effective, and if this should be a model for the future.  The Interim Director of HR and Organisational Change confirmed most training has moved online and much more is being re-designed to go virtual too.

·       Acknowledged the Council is facing significant change, and queried if the HR capacity needed to cope with the extra projects, process changes and workload is known.  The Committee looks forward to seeing the People Framework at a future meeting and inputting feedback to it.  The Cabinet Member for Economy and Corporate Resources noted that an understanding of demand is required and that the People Framework will address culture change as well as helping to ensure the right staff and skills are in place for future operation.

82.8  The Director of Finance and Support Services introduced the Transformation and Risk aspects of the report, and noted that the Capital aspect of the TPM report would be discussed during the Capital Programme Performance Monitor item.  The Risk Register highlights some new risks regarding COVID including pressure on council staff, in particular senior staff. 

82.9  The Committee made comments in relation to the TPM Transformation and Risk sections including those that follow. It:

·       Queried regarding Corporate Risk 1 (No-deal Brexit) whether the estimated potential knock-on cost and organisational pressures for the Council of such an outcome are known, whether these are quantifiable, and queried whether the Council have made clear to the Government the potential effects.  The Cabinet Member for Finance recognised changes to service demand on the workforce, for example in Social Care and Trading Standards, and confirmed that the Council is working with others on a response to Government.  The Director of Finance and Support Services explained work was previously undertaken  however this will require revision in light of COVID-19.  It has been factored into the Reset work but is a live risk issue. 

·       Queried what is being done to support local businesses who may experience hardship due to Brexit export or market changes.  A response will be sought from the Cabinet Member for Economy and Corporate Resources.

·       Queried regarding Corporate Risk 71 (staff continuing to work from home during the pandemic) whether this will change in light of recent Government advice to return to workplaces.  Queried whether an assessment of staff productivity in the office versus from home has been undertaken, and encouraged an evidence-based approach to future working practice.  The Director of Finance and Support Services commented that working practice is being discussed and lessons learned; both methods have advantages and drawbacks, which can differ between departments and individuals.  The Director of Property and Assets also explained to the committee that there are three criteria for staff returning to work from Council offices; operational, well-being and physical environment. The offices cannot function at the same density as in the past due to ensuring safe social distancing requirements. 

·       Requested that the Committee be updated on the increased risk seen to Corporate Risk 22 (financial stability of Council services).

·       Acknowledged the new Corporate Risk 70 (increased demand placed on the senior officers) due to the ongoing threat of COVID-19.

82.10  The Head of Intelligence and Performance introduced the performance aspect of the TPM report, highlighting that the performance indicators have been reviewed; those that cannot be adequately measured at the current time due to COVID-19 have been suspended, and some additional indicators have been added. 

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

·       Commended officers on a well-presented and useful explanation of the suspended performance measures.  Commented that it was pleasing that many measures were amended to enable ongoing performance monitoring.

·       Queried whether the performance monitoring data included in relation to road condition should include all roads, B C and unclassified roads, not just ‘A’ roads. The Cabinet Member for Highways supported the monitoring of the wider network if affordable and will keep the Committee informed of the processes and performance data in place.

·       Commented regarding measure 33 (Economic Growth – GVA) that an amber prediction for the end of the year seemed optimistic given the current circumstances.

82.12  The Chairman commented that uncertainty is the over-arching theme in the TPM on the ongoing situation with COVID-19, plus the uncertainty over a potential second wave in addition to the uncertainty over Brexit.  Key issues and areas of concern will continue to be picked up by scrutiny committees and Task and Finish Groups.

82.13  Resolved:

1)      That the Committee express concern on the unsafe practices not being picked up by management or through audit processes, particularly in relation to mental health services, and recommend that the Regulation, Audit and Accounts Committee (RAAC) review the audit planning and processes to highlight issues earlier in relation to both financial and operational control processes;

2)      That the Committee support the work of the Cabinet Member for Adults and Health in bringing the situation in relation to care market pressures to the Governments’ attention and support the HASC Enquiry Day in January, including care market pressures on their Agenda;

3)      That the Committee request the Cabinet Member for Children and Young People provides further details to the Committee on the large increase in demand in relation to Children Looked After;

4)      That the Committee recognise there is to be a cross-cutting Home to School Transport TFG, with details of remit and Terms of Reference to be discussed with officers and Cllr Barling, Chairman of CYPSSC, next week;

5)      That the Committee look forward to seeing the People Framework at a future meeting and inputting feedback to it;

6)      That the Committee request information on how the Council is preparing and supporting local businesses in relation to Brexit; and

7)      That the Committee request information on productivity in relation to officers working from home versus working from the office.