Meeting documents

1         THE ISSUE

1.1    The report sets out currentprogress made on pooling and aligning resources for the Local Area Agreement,and on governance arrangements to ensure its effective implementation.

2         RECOMMENDATION

The Council Executive is asked to agree that:

2.1   The draft principles for pooling and aligning resources in the LAA, setout in Appendix One, be adopted for the purpose of developing the first year ofthe LAA

2.2   The Local Strategic Partnership and LAA Project Board be invited to undertakemore detailed work on the draft Governance Arrangements for the LAA set out in Appendix 2

2.3    The second draft of theLocal Area Agreement be brought to the Council Executive on 10^thJanuary, and that this:

(1)     Identifies pooled andaligned resources, with clear links to the Financial Plan

(2)     Sets out in particular howthe LAA will align resources available for the following key outcomes:

§        Improving the quality of the local environment

§        Tackling climate change

3         FINANCIAL IMPLICATIONS

3.1    Bath & North East Somerset'sfirst Local Public Service Agreement (LPSA) attracted £920,000 in pump-primingfunds into the area and it is expected that significant performance rewardgrant will also be gained. Similar sums will potentially be available throughthe LAA, now that the "reward" element has been incorporated into theLAA process. The Council Executive has earmarked £50,000 from PSA performancereward grant to `pump-prime' the development of the LAA. The Local Area Agreement provides anopportunity to pool and align resource streams to improve outcomes, and thisreport sets out draft principles for progressing this approach.

4         Community Strategy Outcomes

4.1   The report to the Council Executive in September 2006 set out in detailhow the emerging LAA framework contributes to the Community Strategy ambitions.The Community Strategy ambitions to be addressed through the LAA are set below:

·     Promoting a 'sense of place'so people identify with and take pride in our communities

·     Celebrating thecontributions people from different backgrounds and with different experiencescan make, and promoting equality of opportunity

·     Sharing resources, workingtogether, and finding new ways of doing things

·     Building communities wherepeople feel safe and secure

·     Taking responsibility forour environment and natural resources now and over the long term

·     Improving our localtransport

·     Improving our housingsituation for local people

·     Improving localopportunities for learning and gaining skills

·     Improving our local economy

·     Improving our localenvironment

·     Improving our local healthand social care

5         CORPORATE IMPROVEMENT PRIORITIES

5.1   The report to the Council Executive on September set out in detail howthe emerging LAA framework contributes to the Corporate Plan improvement ambitions,as follows:

·     Reducing fear of crime

·     Promoting independence ofolder people

·     Improving life chances fordisadvantaged teenagers

·     Improving the environmentfor learning

·     Cultural Development

·     Reducing Landfill

·     Increase in AffordableHousing

·     Improving the Quality ofPublic Transport/Roads/Pavements and easing congestion

·     Developing a sustainableeconomy

·     Improving the public realm

·     Improving customer satisfaction

6         CPA KEY lines of enquiry

6.1   The LAA blocks contribute significantly to the CPA key lines of inquiryset out below:

·     Ambition for the community -i.e. What the council, together with its partners, is trying to achieve - the LAA outcome framework isdriven by Community Strategy ambitions

·     Prioritisation of ambitions-work onstretch targets is based on the prioritisation of ambitions

·     Increasing capacity of thecouncil to deliver ambition for the Community to ensure we achieve what we saywe will- theLAA focuses on building capacity in particular under the stronger communitiestheme

·     Managing performance ofcommunity ambition to ensure we achieve what we say we will- the LAA will be subject toclear performance management

·     Creating and developing abetter quality of life for the area through

o Sustainable Communities and Transport

o Safer and Stronger Communities

o Healthier Communities

(These outcomes are set outunder the relevant blocks in the LAA draft)

·     Improving engagement withand a range of services for Older People and Children and Young People

(This outcome is set outunder the relevant blocks)

7         the report

7.1   The Executive in October received a report containing the first draftLocal Area Agreement submitted to Government Office. The Executive requestedthe LAA Project Board to:

(1)    Undertake work on options for the potential alignment and pooling of resourcestreams to ensure delivery of the LAA

(2)    Consider options for the detailed governance arrangements for theperformance management of the Local Area Agreement

(3)    Report back to the Council Executive on the outcomes of this work inDecember 2006

7.2   The Project Board held a Workshop on 3^rd November, toexamine in detail how the Local Agreement can help "pool" and "align" resourcein order to ensure that the resources available locally to public agenciessecure agreed outcomes. The workshop, facilitated by the Local GovernmentImprovement and Development Agency, heard that Local Area Agreements identifyexisting sources of resource that help meet agreed targets. These funds are oftwo types:

(1)    "Pooled" resources. This occurs where organisations agree to bringtogether a range of funds that meet a common goal into one budget. In thesecases, individual organisations usually work through a joint body that agreeshow resources should be allocated. There are a number of effective examples ofsuch pooled resources locally, such as for the drugs and alcohol service.

(2)    "Aligned" resources. This approach, used extensively in existing LocalArea Agreements, highlights in the LAA document the funds that are available tomeet an outcome, and usually establishes a shared planning framework wherepartners agree to work together. However, unlike with "pooled" budgets,individual organisations continue to hold the funds directly and agree only towork together as appropriate. This is often seen as a useful approach to buildtrust and confidence in joint working at the start of the LAA process.

7.3   The LAA Project Board workshop considered in detail these variousapproaches, and the Board has now worked up a series of principles to guide howpooled and aligned budgets might work within the LAA, building on good practicein Bath & North East Somerset and elsewhere. The principles also addresskey issues such as risk management and democratic accountability through electedmembers. These principles are attached as Appendix One. The principles stressthat for any pooled budgets, distinct arrangements must be in place inorder to assess and manage risk and to ensure clear accountability. Alignedbudgets also provide the potential for partners to highlight theircontributions to shared goals and forge a basis for improved joint working.Each of these approaches present different risks which must be managedappropriately through following the agreed principles.

7.4   Some Government resource streams are "centrally pooled" into the LAA,allowing a degree of local flexibility over how they are deployed. For thesefunds, appropriate outcomes and indicators have to be agreed through the LAAprocess. Additionally, it must be noted that, in general, centrally "pooled" resourcestreams have already been allocated to, or committed against, the delivery ofidentified services or projects.

7.5   In addition to these existing funds, the Local Area Agreement attracts"pump-priming" funds, which must be spent specifically on achieving stretchtargets.

7.6   Pooled or aligned budgets require that robust "governance arrangements"are in place. These ensure that performance is managed, that transparency andaccountability are maintained, and that elected members roles are fullyreflected. However, strengthened governance arrangements will be requiredbecause the LAA is delivered by a wide range of partners, working togetherthrough the Local Strategic Partnership.

7.7   The LAA Project Board and Local Strategic Partnership have considered how the existingframeworks for partnership working in Bath & North East Somerset can bedeveloped further. The approach taken has been to identify and clarify keyroles that will need to be undertaken in the delivery and review phases of the LAA.The key roles are as follows:

(1)    "Governance "or "Board" roles, designed to ensure accountability to partnerorganisations and to local communities. This would allow for links, forexample, with local partnership bodies.

(2)    High-level "block lead" roles for each of the Local Area AgreementBlocks

(3)    Partnership and delivery body roles

7.8   These roles, as proposed by the LAA Project Board, are set out in moredetail in Appendix 2 of this report, and the LAA Project Board and LSP will beundertaking more detailed work on structures. Any structure will be supportedby a clear performance management framework whereby performance data will bereported to partners, officers and members in good time to take appropriateaction to deliver agreed performance, "escalating" as necessary to theappropriate partner organisations. Discussions with partners are currentlyunderway on how best to develop this proposal, which would also entailstrengthening the LSP Board potentially to include wider links to localcommunities. Detailed work on roles, potential memberships and operatingarrangements for the LAA governance structure are taking place, includingproposals to

§        Reconfigure the LSP Board to ensure widergovernance representation and strengthen links with local communities and thevoluntary and community sector

§        Clarify the bodies responsible for deliveringLAA outcomes, with key roles and common terms of reference developed

§        Create of protocols to manage theserelationships and ensure effective performance management

7.9   In order to support these roles, including those of elected members,work is underway with the four unitary authorities to develop a proposal forthe Government's "Capacity Building Fund", which would provide for some of thetraining and development needed to ensure these new roles are fully supported.

7.10It is important to note that elected member roles are crucial to thedevelopment and delivery of the LAA. As well as Executive member roles, workingwith partners to deliver the LAA, the Overview and Scrutiny process will play akey role in challenge, performance management and scrutiny of the LAA. TheCorporate Issues and Partnership Overview and Scrutiny Panel agreed at itsmeeting of 21st September agreed that each Overview and Scrutiny Panel shouldbe responsible for scrutiny of appropriate block outcomes. Any further work ondeveloping Overview and Scrutiny roles will of course be driven by Overview andScrutiny itself, working with the Chairs' Group. It is also suggested that aseries of member workshops be held in order to gain feedback on the approachesoutlined in Appendix 2. As part of the LAA engagement process, the relevantextracts from the LAA have been presented to Overview and Scrutiny Panels asfollows:

§        Housing and Community Safety Overview and Scrutiny Panel, 9^thNovember

§        Health and Social Services Overview and Scrutiny Panel, 10^thNovember

§        Major Projects Overview and Scrutiny Panel, 21^st November

§        Education, Youth, Culture and Leisure Overview and Scrutiny Panel, 27^thNovember

§        Corporate Issues and Partnerships Overview and Scrutiny Panel, 30^thNovember

§        Resources Overview and Scrutiny Panel, 12th December

7.11The reports to these Panels also highlight the key issuesarising from GOSW feedback on the LAA. In general, GOSW feedback has beenpositive. The feedback praises the way in which the LAA process has been usedas an opportunity to strengthen links with local communities and the voluntarysector, the recognition of the importance of performance management to theeffective implementation of the LAA, and the positive commitment totackling equalities issues through the LAA. As well as detailed comments on targets, GOSW alsosuggest that the next stage of the LAA should focus on making moreexplicit the links between the blocks. In particular, GOSW have statedthey would welcome the inclusion in the LAA of a clear approach to thetargeting of specific neighbourhoods on the basis of differentiated need.

7.12As part of the LAA process, a so-called "enabling measure" has beendeveloped to help improve the way in which the performance is reported in thearea of health and social care. This isdesigned to help with plans for Council and PCT integration, focussing on acommon assessment framework to deliver clear improvements in health and socialcare outcomes.

7.13The LAA Project Board will continue to co-ordinate work on the LAA anda further report will be brought to the Executive in January 2007 with thesecond draft LAA for determination. The finalised LAA document will be agreedin February 2007, linked to the Council's Financial Plan. The LAA lasts forthree years, with an annual "refresh".

8         RISK MANAGEMENT

8.1    The report author and LeadExecutive member have fully reviewed the risk assessment related to the issueand recommendations, in compliance with the Council's decision making riskmanagement guidance. The LAA Project has been subject to risk assessmentprocedures.

9         RATIONALE

9.1    Bath & North EastSomerset Council is the accountable body for the LAA and, through its CommunityLeadership role, has a key interest in ensuring that the emerging LAA governanceframework is robust.

10      OTHER OPTIONS CONSIDERED

10.1 None

11      CONSULTATION

11.1Executive councillor, Parish council, Town council, Overview &Scrutiny Panel, Trades unions, Other B&NES Services, Local residents,Community Interest Groups, Youth Council, Stakeholders/Partners, Other publicsector bodies, Section 151 Finance Officer, Chief Executive, Monitoring Officer

11.2Significant engagement withpartners and local communities has taken place on the development of the LAA. A statement of community involvement for theLAA is available here

12      ISSUES TO CONSIDER INREACHING THE DECISION

Social Inclusion; CustomerFocus; Sustainability; Young People; Equality (age, race, disability,religion/belief, gender, sexual orientation); Corporate; Other LegalConsiderations

13      ADVICE SOUGHT

13.1 The Council's MonitoringOfficer (Council Solicitor) and Section 151 Officer (Resources Director) havehad the opportunity to input to this report and have cleared it forpublication. Advice has also been sought from the Director-level sponsor forthe LAA and from Strategic Directors.

APPENDIX ONE: Pooling andAligning Resources: Draft Principles developed by LAA Project Board

UNDERLYING APPROACH

• Build on good practice from existing pooled and aligned budgets

• Commit to building trust through effective governance arrangements, ensuring links are made with staff at all levels

• Develop joint planning and data to further take forward the LAA and make best use of local resources

• The focus for pooling and aligning budgets should be on agreed local outcomes

• There should be clarity about lines of accountability for discussing and agreeing how the resources can best deliver the outcome- eg, a partnership or other group with transparent representation

• There should be transparency of decision-making through a shared performance management system

• There must be links back through Governance representation to the body from which the resource emanates

• There must be appropriate levels of elected member involvement, through executive, Overview and Scrutiny, Member Champion and local community leadership roles

Pooling budgets requirerisk to be managed in a different way, and it is therefore suggested that followingadditional elements be put in place for pooled budgets:

• A risk-management process should be undertaken and arrangements for managing risk put in place. This could include, where proportionate, formal risk-sharing arrangements.

• There should be dedicated finance officer support in order to understand other agencies' financial systems

• Locally set financial rules and procedures should be in place

• Where appropriate a formal legal basis for pooling should be agreed

These shouldbe formally agreed to by each organisation through their governancearrangements

APPENDIX TWO: DraftGovernance Arrangements for the Local Area Agreement

Thekey building blocks for the LAA governance and performance managementarrangements are:

• Effective performance management systems within the Council, using our QPR reporting tool. Work is currently underway to link this system with the PCT and other agencies to provide a platform for LAA reporting.
• Effective partnership working, through the Local Strategic Partnership and delivery Partnerships for the blocks including for Community Safety, Children and Young People and Health
• Key roles for elected members in their Executive, local community leadership, Member Champion and Overview and Scrutiny roles

Thekey emerging roles are set out below:

Thiswould require a reconfiguration of LSP working to ensure a split between the"governance", to operate through an LSP Board, and the "delivery" mechanisms,to operate through a series of groups and partnerships which would be broughttogether through "Block Leads" under an LSP LAA Delivery Board. Theinter-relationships between these bodies are based on a clear "ladder ofaccountability" accountability set out in the diagram overleaf.