Meeting documents
Cabinet
Wednesday, 6th December, 2006
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
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MEETING DATE: |
6th December 2006 |
AGENDA ITEM NUMBER |
12 |
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TITLE: |
Public Service Agreement (PSA) - Final Report |
EXECUTIVE FORWARD PLAN REFERENCE: |
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1406 |
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WARD: |
All |
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AN OPEN PUBLIC ITEM |
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List of attachments to this report: Appendix A PSA 4 Monthly Performance Report Appendix B PSA Funding |
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1 THE ISSUE
1.1 This report provides updated information about the progress made on the Council's Public Service Agreement (PSA), which was agreed with the Government in August 2003. The PSA includes 30 "stretch" targets, the successful achievement of which - either in full or in part - results in a performance reward grant to the Council. The Government also provided upfront funds to assist achievement against these targets.
1.2 This is the seventh and final report on the PSA targets.
2 RECOMMENDATION
The Council Executive is asked to:
2.1 Note the final position reported in Appendix A
2.2 Note the amount of the Performance Reward Grant in Appendix B.
3 FINANCIAL IMPLICATIONS
3.1 The agreed PSA funding was as follows:
Total Pump Priming money £919,613
Total Unsupported Credit Approvals £1.072m
Performance Reward Grant £3.578m maximum
Note: Services and other agencies agreed to contribute a further £1m to achieve these targets.
3.2 Pump priming money has been used to enable services to meet stretch performance targets over the 3-year PSA period as a contribution towards the extra costs involved.
3.3 Unsupported Credit Approvals (UCA) have been included in our approved capital programme.
3.4 Details of the pump priming and UCA funds allocated to each individual PSA target are set out in the performance report attached.
3.5 Appendix B shows that we are expecting to receive £2.085 million of the £3.578 million PRG available, to be paid out in two equal instalments in the two financial years following the end of the Agreement. Assuming we submit the claim by February 2007, this will result in a payment of circa £1.0425 million in 2007-8 and the same again in 2008-9.
3.6 The Council's internal auditors were required to verify that the targets have been achieved. Internal Audit found that overall control of the process for the production and administration of the PSA Performance Indicators was adequate and effective. It is their opinion that the current PSA target forecasts represent a true and fair view of the position relating to the 2005/2006 figures. Accordingly, the review has resulted in the allocation of a Level 4 Assurance rating, i.e., the administration and management of the system of internal controls was good and only minor weaknesses were identified. All targets that are national performance indicators are automatically audited by PWC as part of their normal audit procedures. Both Audit and the Chief Executive are required to sign-off a schedule of achievement in order to process the claim.
3.7 Part of the claim requires the Council to verify that it has spent the pump priming money in accordance with the Agreement. Appendix B shows that there was an under spend of £21,688. The Council will not have to repay this element of the pump-priming grant as long as the funding will continue to be used for PSA related projects, in accordance with Schedule 3 of the original agreement. If the funding is used in a way that deviates from the schedule, this will also be considered acceptable as long as the Council can show there is good cause for deviating from the original plans. Strategic Directors have confirmed that all pump priming funds will be spent in line with the PSA related projects and initiatives.
3.8 The Financial Plan update report elsewhere on this agenda sets out the council's current financial position and proposes that in developing their budget proposals for 2007/08 and future years the expected PSA reward grant be set aside as contribution to the proposed exceptional risk reserve. If this forms part of the Executive's budget proposals, it will be subject to full council approval in February 2007.
4 COMMUNITY STRATEGY OUTCOMES
> Celebrating the contributions people from different backgrounds and with different experiences can make, and promoting equality of opportunity -
PSA theme of improving access to sustained employment to people with disabilities
> Sharing resources, working together, and finding new ways of doing things -
the report gives progress on performance in our Public Service Agreement that was agreed in August 2003, resulting in 30 "stretch" targets i.e. achieving above and beyond normal improvements
> Building communities where people feel safe and secure -
PSA theme of reducing vehicle crime
> Taking responsibility for our environment and natural resources now and over the long term -
PSA theme of improving the local environment
> Improving our local transport - PSA theme of increasing bus usage
> Improving our housing situation for local people - PSA theme of reducing stays in B&Bs for homeless people
> Improving local opportunities for learning and gaining skills - P
SA themes of improving pupil attendance in secondary schools, improving educational attainment for young people leaving care and improving library services
> Improving our local environment -
PSA theme of improving the local environment
> Improving our local health and social care - PSA theme of reducing the violence of accidental fire-related de
aths/injuries in the home and improving quality of life and independence of older people and improving health through sport and leisure
5 CORPORATE IMPROVEMENT PRIORITIES
> Reducing the Fear of Crime - PSA theme of reducing vehicle crime
> Promoting the Independence of Older People - PSA theme of improving quality of life and independence of older people
> Improving the Life Chances of Disadvantaged Teenagers - PSA themes of improving pupil attendance in secondary schools and improving educational attainment for young people leaving care
> Reducing Landfill - PSA theme of improving the local environment
> Improving the Quality of Public Transport, Roads and Pavements and Congestion - PSA theme of increasing bus usage
6 CPA KEY LINES OF ENQUIRY
> Ambition for the community - PSA targets are described within 12 themes that all contribute to the overall ambition for the community
> Prioritisation of ambitions - PSA 1 agreed areas for "stretch" performance in areas that were important to the public, identifying 30 "stretch" targets that would demonstrate achievement
> Increasing capacity of the council to deliver ambition for the Community to ensure we achieve what we say we will -
PSA provided pump-priming funds for services to help them to achieve "stretch" targets. Achievement of agreed targets also triggers performance reward monies (anticipated to be circa £2m)
> Managing performance of community ambition to ensure we achieve what we say we will - PSA targets were robustly monitored by Directors throughout the 3 years. A recent intern
al audit has also confirmed that overall control of the process for production and admin of PSA PI's was adequate and effective.
> Creating and developing a better quality of life for the area through:
o Sustainable Communities and Transport -
PSA theme of increasing bus usage and improving local environment
o Safer and Stronger Communities - PSA themes of reducing the incidence of accidental fire related deaths/injuries in the home, reducing vehicle crime, improving pupil attendance in secondary schools, improving educational attainment for young people leaving care, improving local environment
o Healthier Communities - PSA themes of reducing incidence of accidental fire-related deaths/injuries in the home, improving health through sport and leisure
> Improving engagement with and a range of services for Older People and Children and Young People -
PSA themes of improving quality of life and independence of older people, improving pupil attendance in secondary schools and improving educational attainment for young people leaving care
7 THE REPORT
7.1 The PSA is a contract between the Council and the Government to "stretch" performance beyond that which would be expected from "normal" improvement activities.
7.2 In order to facilitate this, the Government agreed to provide additional funds to allow services to develop beyond budget constraints. These funds were in the form of Pump Priming and Unsupported Credit Approvals, as set out above, under section 3 of the report.
7.3 This agreement was part of the Government's first wave of PSA agreements. The Council is preparing to negotiate a second PSA linked to a Local Area Agreement that will support actions for improvement identified in the Community Strategy and Corporate Plan. This is scheduled to start in April 2007.
7.4 The Executive considered previous PSA reports in February, July and November 2004 and March, July and November 2005. In its first report the Executive resolved to (1) note the progress made and (2) to provide an incentive to those services, individually or jointly, achieving the stretch target in 2006/07, from the PSA award money.
7.5 This is the seventh and final report on the PSA targets with the final results against the stretch targets contained in Appendix A.
8 RISK MANAGEMENT
8.1 The report author and Lead Executive member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision-making risk management guidance. The following key risks were identified:
(1) The PSA provided a considerable amount of extra funding to services, some of which related to the Council's improvement priorities. Risk: failure to reach the `stretch' targets could result in a loss of income for these priorities, which in turn could reduce the Council's capacity to achieve Corporate Plan objectives. As stated in section 3.8, it is proposed that in developing the Council's budget proposals for 2007/08 and future years, the expected PSA reward grant be set aside as a contribution to the proposed exceptional risk reserve. Therefore, the consequences of the Council's failure to achieve some of the stretch targets has been superseded by the proposal to set aside the reward funding rather than use the funding to achieve Corporate Plan objectives.
(2) It was a condition of the grant that it must be spent during the defined period of the PSA, in accordance with the PSA agreement. Risk: the grant would need to be repaid if services did not carry out the work. Although Appendix B shows there was an under spend on the grant of £21,688, Section 3.7 confirms that the Council does not have to repay the under spend if the funds continue to be applied to PSA related work. Strategic Directors have confirmed that this is the case.
(3) Risk: services would employ staff using PSA funds without identifying on-going funding. Strategic Director's Group have confirmed this is no longer a risk.
(4) Risk: services would be developed using the funding without an exit strategy. Strategic Director's Group have confirmed this too is no longer a risk.
9 RATIONALE
9.1 This Council Executive is asked to agree the amount of the Performance Reward Grant stated in section 3.5 on the grounds that Internal Audit have found the processes in place for administering and producing the PSA figures both `adequate and effective'.
10 OTHER OPTIONS CONSIDERED
10.1 None.
11 CONSULTATION
11.1 Consultation regarding the project plans for each PSA agreement has been wide and various during the PSA agreement negotiations and has been reported as follows:
(1) Reports to the Council Executive in November 2004, January 2005, April 2005 and November 2005. Final report to be presented in December 2006.
(2) Reports to the Corporate Issues and Partnership O&S Panel in March and November 2004 and February and November 2005. Final report issued in November 2006.
12 ADVICE SOUGHT
12.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Strategic Director - Support Services) have been sent a copy of this report.
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Contact person |
Fiona Venton Harvey, Head of Performance, 01225 396119 |
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Background Papers |
Bath & North East Somerset Public Service Agreement 2003 - 2006 Final Agreement |
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Please contact the report author if you need to access the report in an alternative format. |
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