Contact: Jenny Heath, ext 7402

1 Summary

The following decisions are sought:

· That Cabinet note the performance indicator results and future targets in relation to the selected basket of key indicators and in the context of the operational commentary.

· That Cabinet agree the messages in the general conclusions about performance, which will form the basis for reporting in the annual Performance Plan

2 Reason for the recommendations

The Council is under a statutory obligation to report all Best Value Performance Indicators in the annual Performance Plan and to include an overall statement on performance.

Performance results are one factor in setting targets for future activity, which in turn either inform or are affected by policy and strategic decisions.

3 Other options considered and rejected

Not applicable

4 Conflicts of interest declared by the decision maker, or member, or officer consulted

Not applicable

5 Dispensation granted by the Standards Committee

Not applicable

6 Reason(s) for the matter being dealt with if urgent

Not applicable

Approved by: (signature) Date: (date of decision)

7 Background

7.1 Cabinet received two earlier reports which highlighted the need to improve performance data collection and reporting:

· Comprehensive Performance Assessment and the Hampshire Improvement Programme (23 December 2002)

· District Auditor's Annual Audit and Inspection Letter 2001/02 (10 February 2003)

7.2 Progress has been made on a number of fronts to improve both the process of data collection and the interpretation of results so that they can inform decision making and the setting of challenging targets for the future:

· Operational managers have been nominated for each performance indicator, ensuring there is ownership of the results and future targets by someone who is well placed to propose and implement action as necessary. Nominated operational managers are being asked to provide a continuing commentary on the performance of each indicator.

· A process proforma has been completed for each performance indicator, with each operational manager taking responsibility for ensuring there are sufficient resources and adequate systems for accurate data collection as outlined in the proforma.

· The District Auditor has undertaken a preliminary assessment of each process proforma and provided comments back to the operational managers. Since the ODPM's final guidance was not available at this time, the District Auditor's commentary cannot be seen as defining their ultimate assessment of compliance with statutory requirements.

· Time has been allowed in the internal audit plan from 2003/04 to carry out a rolling programme, monitoring whether data collection systems are adequate

· IT Services have been commissioned to identify and implement a basic software system for the central collation of performance indicators

· County Treasurer's Consultancy Team have revised the presentation of comparative information to enable a better interpretation of performance indicator results. (Appendix One attached.)

· The Corporate Performance Team is being augmented to ensure there is additional support to the central performance indicator co-ordinator.

8 Presentation of information

8.1 The annual Performance Plan (formerly Best Value Performance Plan) must be published by 30 June. Each year the Office for the Deputy Prime Minister (ODPM) and the Audit Commission set out the definitions and data which must be reported for each Best Value Performance Indicator (BVPI). The full set of 100+ BVPIs is then collated and published in the Performance Plan and subsequently audited by the District Auditor.

8.2 The Performance Plan continues to be the principal means of accessing the full set of performance data. This year the Performance Plan is being produced as a website within Hanstweb and will therefore, be capable of recording updates to information as soon as they become available. A commentary from each nominated operational manager will be attached to the BVPIs, so each indicator is set in context with other relevant plans and activity.

8.3 In addition to the Performance Plan it is of course important that senior officers and Cabinet are advised of key results. It is not desirable to examine every performance indicator result in depth as definitions change, some indicators are deleted and others added. It is possible, however, to identify a core set of BVPIs that have remained stable or that are relevant to key areas of council activity. Because of their stability they are more likely to have developed into robust indicators as authorities have become familiar with the requirements for data collection.

8.4 Previously the `Kent basket' of indicators has been used for comparative purposes. Work has now been carried out to identify a set of 44 BVPIs and report on them in a way which reflects Hampshire's structure. These 44 are held to provide a reasonable benchmark for comparison with other local authorities and over time. Reflecting changes in the national suite of indicators, 13 have been added and 6 deleted from the `Kent basket' used last year. An overall ranking is arrived at to compare the Council's performance with other county councils. The same methodology has been used for this calculation as was previously used by Kent County Council, with each indicator being given an equal weighting.

8.5 It should be noted that this report is only concerned with reporting against national Best Value Performance Indicators, which are intended to give an overall flavour of performance. A more complete picture of performance in specific areas would include information collected for other Government departments, notably the Department of Health and the Department for Education and Skills. These results are reported elsewhere.

9 Results to 2001/02

9.1 Appendix 1 provides comparative data for the Hampshire basket of 44 BVPIs, showing:

· How Hampshire's results for 2001/02 compare with those of the 34 county councils

· A three year time series analysis of Hampshire results for each of these BVPIs up to and including 2001/02. A few indicators do not have a full set of information due to changes in definition, or their recent addition as a BVPI.

9.2 The following commentaries have been extracted from those made by operational managers to place the results in context, particularly in relation to the Corporate Strategy and the local PSA.

9.2.1 Policy and Resources

Work to improve the Council's achievement under the Commission for Race Equalities Standard is currently being developed.

Work has been underway to improve the accuracy of data collection in relation to sickness absence and early retirement. A slight deterioration in sickness absence figures is deemed to be a result of the improved process.

Access for disabled in council buildings - the slight shortfall on the target for 2001/02 was accounted for by the acquisition of some new buildings and improved information on existing properties.

The Council has improved its position in relation to payment of undisputed invoices and is in a good position compared to other county councils. However, results fall short of the Government set targets which are deemed unrealistic (100% in 2002/03). The Council's performance may worsen as central control is relinquished through the roll-out of SAP, though checks are being put in place to minimise this risk.

Plans to address the Government targets for electronic interactions with the public are outlined in the Council's `Implementing Electronic Government Statement'.

Trading standards checklist - although the 90% target was narrowly missed in 2001/02, full achievement of the standard is expected in 02/03.

Meetings with Police have established a more robust basis for collecting data about burglaries and vehicle crimes so that they relate directly to the Council's administrative area.

9.2.2 Education

Two indicators measure the percentage of unfilled places at primary and secondary schools. The primary target was exceeded, though as primary numbers fall meeting this target will become increasingly difficult. Areas for potential primary re-organisation have been identified and proposals to manage the issue contained in the 2003/04 draft budget. The secondary total was within target and will probably remain so for the next four years, although there are already pressures in some areas of the county.

The range of indicators relating to pupil achievement are key to achieving targets in the Corporate Strategy and in the local PSA. The results for the BVPI measuring the proportion of 15 year olds achieving 5 or more GCSEs at grade A* - C show a slight shortfall against targets but in line with national trends. Work is being done with all secondary schools, via the Education Development Plan and the national Key Stage 3 Strategy. Further work is using local PSA funding to raise achievement in particular schools and areas where pupil achievement should be higher. The local PSA target is very challenging and the draft 2003/04 budget gave priority to supporting school improvement activities to meet it. Similarly the inspection and advisory service remains focused on helping primary schools through the implementation of the national primary literacy and numeracy strategies.

It is anticipated there will be a slight downturn in the results for the length of time it takes to issue a first statement of special needs while new systems are introduced. The new systems will ultimately increase efficiency.

Currently in the top quartile for the number of exclusions, the implementation of national policies is anticipated to increase the numbers of pupils excluded. It is hoped to mitigate this through continued effective use of the Behaviour Support Service and a Best Value review, which is focused on maximising the benefit of multi-agency links.

The missed targets for pupil absence reflect a national increase in levels of absence. Sustaining high attendance is crucial to achieving pupil performance and local PSA targets. Additional resources are being deployed to tackle persistent poor attendees and the role of the Education Welfare Service in attendance has been the subject of a Best Value review.

9.2.3 Social Care

Poor performance against the indicator for employment, education and training for care leavers is being addressed by the creation of a specific team, whose aim is to facilitate the transition through leaving care and maintaining the corporate parent role for young people who have left care. An immediate upturn in result is not expected as links have already been lost with some care leavers in the cohorts that continue to be measured.

Like many other southern authorities Hampshire experiences problems with its performance related to providing intensive home care for people aged 65 and over. This is caused by:

· The need to invest additional resources to drive up performance at the same time as meeting rising demand

· market capacity shortages driving up costs

· rural environment leading to significant carer travel.

The very strict definition of intensive care, which excludes Direct Payments and sessions at daytime facilities, makes it difficult to gain national recognition for improved performance. As explained in the PSA monitoring report, elsewhere on this agenda, there is an extensive, monitored action plan, designed to drive up activity for this indicator.

Percentage of people receiving a statement of their needs and number of clients receiving a review - historically these activities have been seen as bureaucratic for some users. Work to contact all known clients or to automate simple counting solutions is underway, though little change in the result is anticipated before the implementation of the new management information system SWIFT.

9.2.4 Environment

Targets were not met for the four indicators which relate to environmentally-friendly disposal of waste. While changes in the definition of the indicator had an impact, problems also arose from the over-estimation of recycling targets and the temporary closure of a central composting site. The Hampshire Natural Resource Initiative is anticipated to create new approaches to reducing waste and so meet the local PSA target.

The three indicators which relate to the condition of the road network are crucial for achievement of the local PSA target. Work has already taken place to halt the deterioration of principal roads in the local road network and the focus is now turning to the condition of non-principal roads.

Work to reduce the total numbers of people killed or seriously injured and slightly injured in road accidents is on target to achieve the local PSA goals.

The target for determining planning applications was not met due to staffing issues. From 2002/03 the definition has changed to reflect the longer time needed to determine applications made to a county council because of their complex nature.

It has not been possible to collect accurate information in relation to passenger journeys on local bus services, due to the dependence on information from private companies. Work on this is ongoing, since achievement in this area is a local PSA target.

9.2.5 Recreation and Heritage

The number of visits to libraries has declined in line with the national trend. However, the implementation of the People's Network and Discovery Centres is anticipated to reverse the trend in Hampshire.

The three indicators reflecting the use made of the museum service have been strongly influenced by the opening of the Milestones Museum in November 2000 and the high number of visitors it received in the first eighteen months of operation.

10 Current results (2002/03)

10.1 Operational managers and PI Co-ordinators are currently collating results for the year just ended. This deadline can be particularly difficult for some indicators, especially those that are cross-referenced to the close of accounts. Therefore Appendix 2 provides the 2002/03 results for the same basket of 44 BVPIs, with an indication of whether the figure provided is actual or estimated. The District Auditor will require actual figures to be published in the Performance Plan for the whole range of 100+ BVPIs.

10.2 Nominated operational managers will be asked to provide a commentary, once the results are collected in.

11 Targets for future years

11.1 The Council has been required to provide future targets for all BVPIs since they were introduced in 2000. This year the ODPM has also required that targets be provided for the following two years - a set of 3 future years targets in total. This was an unexpected requirement and did not feature in the annual consultation document. Nominated operational managers have been asked to set these additional targets on the assumption that current levels of funding will continue. This assumption will be highlighted when the information is reported in the Performance Plan.

11.2 Appendix 2 provides the target figures that nominated operational managers have been asked to set.

12 General conclusions on performance indicated by the PI results

12.1 The Corporate Assessment Team noted Hampshire's top position in 2000/01 in relation to other County Councils and the fact that 43% of the BVPIs were in the top quartile. This was undoubtedly a contributory factor in the final CPA judgement of the Council as `excellent.'

12.2 As has been previously stated there have been concerns about the accuracy of performance reporting, leading to District Audit reservations of 18 out of the 87 indicators for 2001/02. Without considering the impact of the audit reservations, an overall ranking in comparison to other county councils places Hampshire third, in respect of the selected basket of indicators. It must be remembered that Hampshire County Council is not operating in isolation to influence these figures and that relative positioning is also affected by the efforts made by other councils to improve their services.

12.3 In the selected basket of 44, 17 indicators are in the top quartile and a further 15 are in the second quartile, demonstrating that there is a generally high level of performance, although the Council is addressing its poorer performance in the three indicators showing as bottom quartile. Overall Hampshire has 32% in the top quartile.

12.4 Appendix two gives a better indication of how the Council's own performance has changed from 2001/02 to 2002/03 and how this relates to the targets being set for the future. In total 21 PIs are estimated to have improved results from 2001/02 to 20002/03, while 15 have deteriorated and a further 3 have remained stable. This position may change as some results are still not finalised.

12.5 In nearly all cases targets have been set at a higher level. In some cases these appear to be extremely challenging and reflect either nationally set targets or the Council's own ambitious plans held in the local PSA. As a general principle, the Council has set itself the aim of achieving top quartile status.

12.6 The commentary from operational managers will be vital to put this performance in context and to provide the rationale for how the targets have been arrived at.

Recommendations

1 That Cabinet note the performance results and targets that are presented in the selected basket, in the context of the commentary made by operational managers for 2001/02.

2 That Cabinet agree the messages in the general conclusions on performance (para 12), which will form the basis for reporting in the Performance Plan.

Section 100D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB The list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

File Location

PI file containing returns made by Held by the central PI Co-ordinator

departmental officers in the Policy Unit