Contact: Jenny Heath, ext 7402

1 Summary

1.1 This report introduces the update to last year's Direction of Travel self-assessment, as part of the Comprehensive Performance Assessment (CPA) regime. In order to present the most up-to-date information to the local auditor it is proposed that the Leader and Chief Executive agree the final version.

1.2 The report also notes the action taken to research ways to improve the Council's position for this element of CPA, concluding that for this year, the Council has done well to maintain service quality in the face of significant challenges.

2 Background

2.1 Under the Comprehensive Performance Assessment (CPA) regime revised in 2005, the annual refresh included a new judgement of the Council's `direction of travel' in addition to the more familiar assessment of overall performance and achievement. The Council maintained its status last year as a top performing council, through the award of four stars for performance and achievement. The Council's direction of travel was assessed as `improving well', only one step away from the top score of `improving strongly'.

2.2 Cabinet received a report on 23 January 2006, outlining the initiatives which would be undertaken to improve the direction of travel score:

· Increasing the engagement of senior members and officers in performance management

· Learning lessons from other authorities who are already assessed as improving strongly

· Increasing the Council's influence at the national level.

2.3 The performance framework continues to be developed and since January achievements include:

· Development of the scrutiny role, supported by the presentation of summarised performance results to scrutiny chairmen on 11 July 2006, on a departmental basis and presentations to scrutiny panels in September 2006.

· Meetings with people in departments who are responsible for performance, financial and workforce planning and reporting - which is improving evidence to support decision making and review.

· Plans to purchase the performance management system are progressing, with implementation anticipated by the end of the financial year.

· The development of the Corporate Business Plan is ensuring key corporate targets and indicators are identified, which are capable of being regularly monitored and reviewed annually.

2.4 The following conclusions have been drawn from visits to Kent and Shropshire County Councils, who were designated as improving strongly in 2005.

· A high national profile is taken as evidence of engagement in the national drivers for improving performance, enhancing credibility about the councils' own performance regimes

· Political leadership that provides a strong focus on performance through both the executive and scrutiny functions is key

· Consistent managerial leadership that doesn't differentiate between performance management and the `day job' is essential

· A strong focus on evidence-based decision making and accountability are signs of a healthy performance culture.

· Performance information systems underpin the availability and accessibility of evidence to support policy development and decision making

It was has not been possible to arrange a mutually convenient visit to Derbyshire County Council, the remaining county council assessed as improving strongly in 2005. However, this will proceed later in the year.

2.5 With the aim of improving its external focus and sphere of influence in respect of developing performance frameworks, the Council has been actively developing its national and regional links through:

· The Leader's chairmanship of the County Council's Network, the LGA's Resources Committee and the Innovation Forum and representation on the LGA Executive Committee

· The Chief Executive is the shared performance lead with Shropshire County Council for the Association of County Council's Chief Executives.

· The Director of Recreation & Heritage's appointment to the national board of the Museum Libraries and Archives Council(MLA).

· The Director of Children's Services appointment to the Lifting Burdens Task Force and presidency of the Association of Directors of Social Services.

· The Director of Property Business and Regulatory's national work on procurement for the South East Centre of Excellence

· The County Treasurer's role as CSR07(Comprehensive Spending Revivew 2007) coordinator and lead financial adviser on children's services for the LGA.

· Hosting the Support Office for the South East Counties Leaders and Chief Executives in their joint approach to `South East issues'.

3 2006 requirements and timetable

3.1 The Audit Commission outlined their approach to this year's direction of travel assessment in August as:

· Examination of the Council's self-assessment and supporting documents, which are due on 10 November 2006. The self-assessment should fill in gaps in relation to other documentation already supplied for this year's refresh and will relate to the period since the last self-assessment and this year's submission (September 2005 - October 2006)

· Fieldwork to be carried out between 27 November and 8 December 2006. Current indications from the local auditor are that additional local interviews are unlikely to be needed and he will conduct his enquiries through the Corporate Performance Team.

· Public reporting of the assessment - the judgement plus a 180 word summary will be reported in February 2007. This is later than in previous year's to take account of the results of the User Satisfaction survey

· Reporting to Cabinet by the Audit Commission Relationship Manager in March 2007, will provide further detail through the annual audit and inspection letter

4 The direction of travel self-assessment

4.1 An initial draft of the self-assessment is attached. It has been compiled from information returned following the 2005/06 year end and will be further informed by the 2006/07 half year performance results, as well as progress with last year's audit recommendations and the most recent assessments made by inspectors of front-line services, primarily CSCI and Ofsted.

4.2 Because of the timing of the half year results and inspection judgements, it is unlikely that the full information will be available at the time of reporting to Cabinet. It is therefore suggested that the Leader and Chief Executive approve the final version before submission.

5 Conclusions about likely outcome for 2006

5.1 Since last year, the Council has improved well by continuing to focus its effort and resources on value for money and performance. The focus has been on maintaining high quality services, in the face of significant challenges:

· Changes in the health economy and demand for services with the resulting impact on the Adult Services budget

· Implementation of significant change programmes to bring about the modernisation of Childrens and Adults Services

· The final stages of the Pay and Benefits project

At this stage in the refresh process, the most likely outcome will be a maintenance of the Council's status as `improving well'.

6 Recommendation

1 That the Chief Executive, in consultation with the Leader, is authorised to finalise and submit the self-assessment by the 10 November deadline, in accordance with the outline proposed in this report.

Although the proposal does not link to the Corporate Strategy, it nevertheless requires a decision because self assessment strengthens the Council's overall ability to focus improvement activity and therefore supports the efficient, economic and effective delivery of all corporate priorities.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have 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.

Returns of information and correspondence from departments held on file by the Corporate Performance Team