Performance Monitoring - Exception Report by yaofenjin

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									                                                                                   Item No.



City of Westminster
Committee                            Date             Title of Report
Finance and Support Services         12th June 2002   Performance monitoring – exceptions
Overview and Scrutiny                                 report
Committee

Classification                                        Report of
For general release                                   Chief Financial Officer

Wards involved                 All


Policy context                 Supports Finance and Support Services Overview and Scrutiny
                               Committee aims: “To maintain a low council tax” and “To
                               provide quality services to our customers”.


Financial Summary              There are no specific financial implications arising from this
                               report.
Report Author                  Eugene McLaughlin : Tel 020 7641 3208

1.     SUMMARY OF THIS REPORT

1.1    This report highlights and summarises for Members of the Finance and Support
       Services Overview and Scrutiny Committee, key matters that have arisen in meeting
       Council priorities and performance plan targets in 2001/2 as well as any specific
       issues that have arisen during the 4th Quarter of 2001/2.

1.2    The highlighted information is in section 4 and draws on key performance issues
       which are set out in detail in a number of briefing papers circulated to Members with
       this agenda. The highlights in section 4 cover:
        Issues arising in meeting performance plan targets in 2001/2
        Progress on BVPI targets, specifically any targets which have not been achieved
           in 2001/2
        Key matters arising from “live” contracts in 2001/2 and their performance
        key financial performance information including latest information on corporate
           as well as Finance and Support Services out-turns
        Treasury management issues
        Other matters relevant to the work of this Committee. For the purposes of this
           quarter, issues addressed are:
                     payment and debtors position
                     update on write-offs
                     6 monthly monitoring report on the security services contract
                     an information update on Environment and Leisure, Transportation
                       and Infrastructure and City Development income in 2002/3



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                    an update on the current financial position on the use of temporary
                     accommodation for homeless families and asylum seekers‟ families.

2.     RECOMMENDATION

2.1    That Members note the highlights in section 4 of this report and identify any issues
       arising that should be included in the workplan and reported on in more depth at a
       future meeting of this Committee.

3.     BACKGROUND TO THIS REPORT

3.1    Performance Plan Monitoring is reported regularly to Members to keep them
       informed of progress in meeting priorities, and also to alert Members to any
       difficulties being encountered. Until March 2002, Members received a range of
       reports concerning performance, covering quarterly performance plan monitoring,
       exceptions reporting on BVPI targets, budget information, treasury management
       information and separate reports on specific issues which impacted on the work of
       Finance and Support Services Overview and Scrutiny Committee. In addition this
       Committee also considered an annual report on contract performance as well as
       reports on contractor performance 6 months after the start of a new contract which
       had been awarded by the Cabinet Member for Finance.

3.2    In order that Members of this Committee are better placed to carry out their scrutiny
       and overview role, the performance information has been re-structured to assist
       Members to highlight those matters which will develop the policy and budget
       framework of the Council.

3.3    A number of reports on performance issues, previously considered at Committee
       have been sent to Members as Briefing Reports. Key performance issues highlighted
       in this report are based on the detailed Briefing Reports circulated with this agenda.
       Those briefing notes are:
        Performance Plan – 4th Quarter Monitoring
        Corporate Health BVPIs 2001/2 – 4th Quarter and Outturn monitoring
        Annual report on Contract and Business Unit performance 1st April 2001 to 31st
           March 2002.
        Performance report for first 6 months of Security Contract
        Payments and Debtors Performance
        Environment & Leisure, Transportation & Infrastructure and City Development
           Income 2002/3
        Asylum Seekers & Temporary Accommodation Costs

4.     KEY ACTIVITIES IN 2001/2 – HIGHLIGHTS

4.1    PERFORMANCE PLAN 2001/2

4.1.1 The previous Finance Committee agreed three aims for 2001/02. These are:
            Maintain an affordable Council Tax;
            Provide effective strategic management, corporate controls and support;
            Provide quality service to our customers.




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       Detailed progress in achieving all Finance and Support Services performance plan
       targets is set out in the Briefing Report “Performance Plan 2001/2 – 4th Quarter
       monitoring”.

4.1.2 The key activities of this Committee are monitored against these aims. Outputs for
      all 3 aims have been achieved in 2001/2. All targets except 3 have been met within
      timescales:
       The timescales for evaluation and award of the CSi contract have slipped.
          However, the first phase of the CSi is still programmed to begin on schedule in
          September 2002.
       The scope of the Best Value Review of Risk Management proved unworkable
          and that review did not complete. Instead, elements of that review have now
          been incorporated into other BV reviews
       The Healthier City Best Value Review has been deferred to 2004/5

4.1.3 Council tax/ NNDR collection rates
      Progress has been achieved in improving Council Tax and NNDR collection rates.
      Council tax collection rate has increased from 91.8% in 2000/1 to 93% in 2001/2.
      The collection rate for NNDR has increased from 96.7% in 2000/1 to 97.6% in
      2001/2. Detailed information is in the Briefing Report “Performance Plan 2001/2 –
      4th Quarter monitoring”.

4.1.4 Complaints information
      The City Council works to resolve as many complaints as possible at stage 1. Further
      information on the complaints situation is set out in the Briefing Note “Performance
      Plan 2001/2 – 4th Quarter monitoring”.

4.1.5 Treasury management
      During 2001/2 the rate of return realised by the Council‟s own internal investment
      manager on invested and re-invested funds was 5.28%, compared with the local
      authority benchmarked rate of 4.5%. She also out-performed the portfolios managed
      by SSBCiti, Dresdner and Scottish Widows. Detailed information on treasury
      management performance is in the Briefing Report “Performance Plan 2001/2 – 4th
      Quarter monitoring”.

4.1.6 Corporate out-turn
      The Cabinet agreed the 2001/02 revised estimates at its meeting on 25th February
      2002. The provisional outurn revenue expenditure is likely to be close to the original
      approved budget.

4.1.7 Capital
      It is anticipated that the capital outturn (including accruals) will be close to the
      approved limit of £90.1 million.

4.1.8 Finance and Support Services
      The 2001/02 probable outturn for the Central Departments is a favourable variance
      of around £290,000 against the Revised Estimate of some £30M credit (a net 1%
      variation on Revised Estimate). The Closing of Accounts process has yet to be
      finalised and soime final adjustments may be needed before the final out-turn can be
      confirmed. An analysis of major variations from Revised Estimates and the reasons
      behind them is being complied and will be reported in the final Outturn Report in
      July.


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4.1.9 There has been a small increase in the number and value of Council Tax and NNDR
      write-offs in 2001/2 from 2000/1. Analysis of the write offs is set out in the Briefing
      Note “Performance Plan – 4th Quarter Monitoring”.

4.2    BEST VALUE PERFORMANCE INDICATORS 2001/2

       In 2001/2 Finance and Support Services Overview and Scrutiny Committee was
       responsible for monitoring 34 corporate health BVPIs. Of the 34 targets, 25 were
       fully met or exceeded target and 9 did not meet the target. Fourth quarter and Out-
       turn figures for all corporate health BVPIs are set out in the Briefing Note “BVPIs
       2001/2 – 4th Quarter monitoring”. Further information on those BVPIs that did not
       meet target is set out below:

4.2.1 BVPI 7 - Percentage of electoral registration forms returned
      The target for 2001/2 was 94% and the figure achieved in January 2002 (the
      government‟s new date for register publication) was 83%. The figure subsequently
      increased to 92% in March 2002. The reason for the shortfall was largely because
      the register publication date was brought forward by 10 weeks earlier than in
      previous years. This had a particular impact in Westminster where a higher
      proportion of properties fail to respond at each stage of the canvass than in other
      local authorities, so canvassing has to continue over a longer period to achieve a
      comparable return. In addition the response rate by post from the initial delivery to
      all households is poor at just over 30%. Greater reliance has therefore had to be
      placed on staff canvassing households door to door. Whilst there is a core of
      experienced and committed staff, it remains difficult to recruit and retain new staff.
      In order to improve the situation, the canvass will be commenced earlier in 2002.

4.2.2 BVPI 8 - Percentage of undisputed invoices paid within 30 days
      The target for 2001/2 was 95% and the out-turn figure achieved was 63.8%. The
      City Council continues to make progress in working towards the target- to make
      100% of undisputed invoice payments within 30 days of receipt. Unadjusted
      statistics for 2002/03 show performance at around 73% without taking any account
      of specific disputes or delays in receiving the invoices.

       Each department has plans in place to improve performance. This includes
       identifying log jams in processes, streamlining procedures, identifying technical
       system improvement and other audit actions to review the causes for the shortfall.
       There is also monthly monitoring within each department overseen by departmental
       lead officers. Chief Officers are directing an action plan to monitor continual
       improvement. There has been a sustained upturn in performance towards the end of
       2001/02 and this is holding up into 2002/03.

4.2.3 BVPI 11 - Percentage of senior management posts filled by women
      The target for 2001/2 was 30% and the out-turn figure achieved was 28%.


4.2.4 BVPI 15 - Ill health retirements as percentage of total workforce
      The target for 2001/2 was 0.19% and the out-turn figure achieved was 0.32%. The
      situation varies each quarter and continues to be monitored.

4.2.5 BVPI 17 - Percentage of Black and Minority Ethnic staff in workforce


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       The target for 2001/2 was 25% and the out-turn figure achieved was 16.2%.

4.2.6 BVPI 78a – Speed of processing new Housing Benefit claims
      The target set was 80 days and the outurn position was 96 days.
      The indicator used by the DTLR calculates the average time taken to determine a
      new claim from receipt of the claim. The City Council uses a much broader
      indicator to measure performance in that we calculate performance for new claims
      and review claims. This indicator is reported weekly and the out-turn using the City
      Council's own broader definition was 78 days in 2001/2.
      Both the BVPI indicator and the Council's internal broader indicator have to take
      account of the time taken for claimants to return sufficient documentary evidence to
      meet the requirements of the Council's Verification Framework (an additional fraud
      prevention measure). This additional measure is not operated by a number of other
      local authorities

       The BVPI target for 2001/2 of 80 days was set by the City Council at a point when
       there was very little comparative data available and in hindsight the target was not
       appropriate.
       As mentioned above, in 2001/2 the City Council's out-turn under the BVPI definition
       was 96 days. By April 2002 this has dropped to 82 days. The broader internal
       indicator for "new and review claims" figure for 2001/2 was 78 days, and in April
       had reduced to 66 days.

4.2.6 BVPI 127 and 128 - Rate of Violent crime per 1000 household and Vehicle
      crime per 1000 household
      The council has limited influence on these BVPIs. In partnership with other
      agencies, a range of actions has been put in place which have led to reductions.

4.3    CONTRACTS PERFORMANCE IN 2001/2

4.3.1 Detailed information on contract performance is set out in the Briefing Note
      “Annual report on Contract and Business Unit performance 1st April 2001 to 31st
      March 2002”. Of the “live” contracts in 2001/2, approximately 80% were delivered
      to specification and were on time. Financial performance information on individual
      contracts is set out in the Briefing Note. A number of matters affecting contract
      performance are highlighted in that Note.
            Term Contract for Building Management (provided by Carillion) -
             Performance of this contract has scored as unsatisfactory throughout the year.
             Detailed monitoring and performance information has also been reported to
             the Cabinet Member for Schools.
            Contract for Housing Benefits provided by CAPITA - the performance of the
             Housing Benefit contract is subject to 6 monthly monitoring by this
             Committee. Whilst improvements are still needed, progress has been made
             during 2001/2, reflected in the quality score and reduced numbers of
             complaints.
            The CAPITA contract for recruitment and advice scored 2.4 across the year,
             against the City Council‟s required standard score which is 3. The overall
             performance continues to require significant monitoring and improvement.
             The ITNET payroll contract scored 2.4 across the year and warning letters
              have been issued and financial penalties imposed.




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4.3.2   The Council‟s procurement strategy is being implemented and is closely linked to
        Electronic Service Delivery targets.

4.4     PAYMENT AND DEBTORS POSITION

4.4.1 Debt management performance is being reviewed in detail. Since the release of a
      new financial system in April 2001, performance has improved to a 75% recovery
      level on value. This rate appears consistent with rates elsewhere within the Local
      Authority sector. However Chief Officers are committed to improving recovery rates
      and have commissioned work to achieve this with a view to improving cash flow
      and reducing the net costs of collection. This includes fundamental reassessment of
      the basis of debt raised and optimum means for collection.

4.4.3 Payment performance and debt management is continually under review and future
      performance will be reported to this Committee.

4.5     PRE-PAID BAG SCHEME

4.5.1. Sales information to the 26 May 2002 suggests a shortfall of £17,829 against the
       target to date of £942,422. The full year income target is £6,750,000 and there is no
       projected variance against this target at this time.

4.5.2. The shortfall to the 26 May 2002 for pre-paid bags sales is offset by improved sales
       performance in skip/container collections which is £26,717 ahead of the target to
       date of £72,794.

4.5.3 London Refuse, a direct commercial competitor to the Commercial Waste Business
      Unit (CWBU) have recently sent out flyers promoting their cheaper waste collection
      service to businesses. The main area effected has been area 2. Sales in this area are
      £31,528 down on target as at 26 May 2002

4.5.4 The CWBU is considering the actions that can be implemented to increase sales in
      area 2. This may include a specific targeted sales campaign at offices, either through
      flyers or sales visits to promote the Council service.

4.6     CAR PARKING

4.6.1 Casual income from Car Parks to 24 May 2002 is showing a shortfall of £10,053
      (0.4%) on an original target to date of £2,446,380. Income for season tickets at Car
      Parks to the end of April is showing a shortfall of £ 2,914 on an original target to
      date of £2,435,000. The projected shortfall on casual income by year-end is
      £150,000. There is no projected shortfall against the original target for season ticket
      income to year-end.

4.6.2. The projected shortfall in car parks casual income of £150,000 is due to a number of
       factors -
        Bad surface condition at Cramer Street car park. Cramer Street Car Park was
           taken back from NCP on the 21 December 2001. Work commenced
           approximately 6 weeks ago (12 week programme of works was agreed) on
           improving access to the Car Park. However for the duration of the works
           approximately 1/3rd of the Car Park has been unavailable for use.
        Continued resistance to tariffs implemented late in 2001/02.


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          General economic uncertainty, particularly following events on September 11,
           2001.

4.6.3 The internal Car Parks Working Party is producing an action plan, which includes: -
       New marketing avenues are being explored with the „Partnership Scheme‟,
         which involves working in conjunction with hotels and restaurants in the West
         End.
       New contact points have been established with the Oxford, Regent and Bond
         Street Associations and London Tourist Board.
       The launching of a holiday parking scheme for residents. The scheme will make
         use of underutilised spaces in Car Parks and release On-Street spaces.

4.7    OTHER ISSUES

4.7.1 Satisfactory performance of the security services contract is reported. Members may
      note that since the contract started in September 2001, the score has exceeded 3 in
      every month except one. The City Council‟s required standard score is 3.

4.7.2 The net cost of asylum seekers to the general fund has fallen consistently as current
      asylum seekers leave the system and new asylum seekers are the responsibility of the
      National Asylum Seekers Service (NASS). The Home Office has increased grant
      levels in 2002/3 above the budgeted level and Westminster will benefit by £1.05
      million. However there is still a net cost to the general fund of £268,000. A briefing
      note updating Members on the current operational and financial position is set out in
      the Briefing Note “Asylum Seekers & Temporary Accommodation Costs”.

5.     CONCLUSION

5.1    This report highlights key performance issues. A number of matters including
       Payments and Debtors Performance and Environment & Leisure, Transportation &
       Infrastructure and City Development Income 2002/3 have been brought to Members
       attention. Members are asked to note the report and identify any issues arising that
       should be reported on in more depth at a future meeting of this Committee.


       IF YOU HAVE ANY QUERIES ABOUT THIS REPORT OR WISH TO
       INSPECT ONE OF THE BACKGROUND PAPERS, PLEASE CONTACT

       BACKGROUND PAPERS: The document referred to in compiling this report were:
       Finance Operational Committee Performance Plan 2001/02
       Quarterly monitoring reports 2001/ 2




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