Archived decisions

REPORT OF THE

Cabinet / Leader

PART II

COMPREHENSIVE PERFORMANCE ASSESSMENT (CPA) - USE OF RESOURCES ASSESSMENT 2006

On 24 July 2006, the Cabinet considered a report updating them on changes to the model of assessment for the `Use of Resources' block in the Comprehensive Performance Assessment (CPA) and the audit processes, which evaluate the Council's performance in this area. The Use of Resources area of the CPA is a measure of financial probity and a key indication of the County Council's ability to deliver value for money, hence providing robust evidence of how services are being improved by specifically managing resources and building on past good performance. The report also outlined progress in addressing the recommendations made following the assessment in 2005.

The CPA model was revised in 2005 in order to provide a `harder test' of council ability. The Use of Resources block particularly employed more rigorous criteria as well as receiving a greater weighting within the overall model; a Value for Money (VfM) self-assessment was introduced as a key element within the block. The County Council rose to the challenge of this `harder test' and scored three out of a possible four for the Use of Resources block, which compared favourably with other councils and included a score of three out of a possible four for the Value for Money element.

The 2005 VfM assessment drew on information provided through the County Council's performance reporting framework which monitors progress against its own and national targets; the Annual Efficiency Statements - the County Council is on target to exceed the 2.5% efficiency gains required under Gershon which is a positive factor for the VfM assessment overall; and commentaries on data profiles which compare cost and performance information across all County Councils and Hampshire's nearest CIPFA neighbours. In respect of the 2006 VfM assessment, the Audit Commission have notified the County Council of a significant delay in producing the profile data. However, having scored three in 2005 the County Council is only required to update the assessment with significant local changes. The Leader and the Executive Member for Performance, Efficiency and Communications will be kept informed of progress with the 2006 assessment.

The Use of Resources assessment also explored the possibility of whether or not to publish an annual report. In addition, the Government, Audit Commission and the accounting profession are considering whether the Reporting Standard relating to an `Operating and Financial review' intended to apply to listed companies, should also apply in the public sector. The Cabinet were of the view that this would lead to duplication and increased costs given that the County Council already publishes an annual statement of accounts and a (Best Value) Performance Plan. Accordingly, the Cabinet took the decision to continue with its existing policy pending a clearer view emerging from the Government and key regulatory stakeholders on the future form of financial and performance reporting.