Contact: Jenny Heath, ext 7402 / Chris Tee, ext 7677

1 Summary

1.1 This report provides a summary of corporate performance for the half year 2006/07 ended 30 September 2006. It proposes that the results help inform development of the new Corporate Business Plan which will facilitate focus on a small number of top level performance measures in future following adoption of the new Corporate Strategy earlier this year. It is also proposed that a 3^rd quarter refresh of performance information takes place in preparation for the CPA Corporate Assessment in 2007.

2 Purpose of the Report

2.1 The Council has been developing its performance framework in the light of the recommendations made in the 2002 CPA Corporate Assessment:

`In order to use performance management more effectively to drive continuous improvement, the Council should:

· Develop further output and outcome measures and report these regularly to councillors for monitoring against targets

· Ensure that corporate and service reviews are clearly outcome focused

· Use performance indicators more proactively both corporately and at service level to drive improvements in performance

· Ensure that targets for improvement are robust and stretching.'

2.2 While the Annual Audit and Inspection letter has recognised progress in these areas, the spotlight will once again be put on performance management when the Council has its CPA Corporate Assessment in May 2007.

2.3 This report presents a summary and analysis of the key corporate performance results for the half year 2006/07, drawing attention to issues arising.

3 Performance Reporting Process

3.1 The results have been compiled from information supplied by departments. An important stage in the process has been the use of a standard template report to engage departmental management teams in identifying the key issues and achievements that should be incorporated in the corporate report and more importantly in addressing key performance issues.

3.2 Departments, having discussed their detailed findings at a Departmental Management Team meeting, should then have shared their results with their Executive Member prior to this Cabinet meeting. Nonetheless, whilst this report focuses on the overall performance of the County Council, it is accompanied by a compendium of half year results by department with performance summaries, value for money statements, a short list of major achievements and key best value performance indicators to provide detailed performance information.

3.3 Given that the half year only ended on 30 September, the report contains some estimated information, although the estimates should be based on reasonably firm assumptions. Also, it must be noted that some information is only captured on a once a year basis and therefore only estimates will be available until year end for those activities.

4 Corporate Performance Summary

Key Areas for action

4.1 Chief Officers have reflected on the performance results and compared them to their plans and targets for this financial year and have highlighted the following key areas of action:

· Preparation for the CPA Corporate assessment and the Joint Area Review of Children's services is needed to give us the best possible chance of achieving well in these inspections

· Renewal of the IiP accreditation to demonstrate our continued development of councillors and staff

· Launch of the new HCC contact centre to continue extending and improving public access to our services

· Implementation of the financial recovery plan for Adult Services whilst continuing to maintain current levels of service

Performance in relation to Corporate Strategy Aims 2006/07

4.2 The original corporate strategy aims of the County Council were replaced in July 2006 to reflect the priorities of the Administration elected in May 2005. For the first three months of this financial year, the corporate strategy aims and targets set by the previous Administration remained the focus of the County Council's activities.

4.3 Good progress has been made during the first half year 2006/07 towards achieving the original six Corporate Strategy aims and carrying on this progress against the new Corporate Strategy and its three priorities.

Performance in relation to the Corporate Strategy Targets 2006/07

4.4 The following chart shows the percentage of (old) Corporate Strategy targets (those that were measurable at half year) achieved, not achieved or on target as at the end of September 2006:-

4.5 This shows that over 31% of targets have already been achieved, with a further 47% on target to be achieved by year end - confirmation that considerable progress has already been made during this half year.

4.6 Of the 22% not achieved, the vast majority of these relate to the provisional Children's Services Key Stage education results produced for the last academic year where it is expected that achievement will increase once remarks and appeals have been incorporated. Further targets that haven't been met are partially outside the control of the authority (e.g. lack of volunteers affecting numbers participating in the youth games).

4.7 The transition between the former and new corporate strategies has complicated the reporting of targets set in order to achieve both final and intermediate goals.

4.8 Areas of notable performance include:

· Successful development of the Community Safety Service, with plans for its expansion

· The "Trailblazer" project which uses outdoor education to enhance curriculum based learning and environmental awareness, now extended to over 200 schools and youth groups

· Completion of the 10^th and final new build nursing home

· The modernisation of home care with short term rehabilitation model now operating across the county

· The increased diversion of waste from landfill

These results compare well against the backdrop of maintaining the level of Council Tax in the lowest quartile and our continued low level of government funding.

Performance of Best Value Performance Indicators (BVPIs) Half Year 2006/07

4.9 The following chart shows the percentage of Best Value Performance Indicators (BVPIs) that have either improved, worsened or stayed the same for this half year.

4.10 This shows, where data is available, a potential improvement on the previous year in 56% of the indicators, with 33% showing a potentially worse performance and 11% remaining the same. Departments where the majority of BVPIs show potential improvement include Human Resources, Childrens Services and Environment, although much of the data is only collected annually. Adult Services shows a potential worsening of performance against the previous year.

4.11 It is worth noting that of the seven indicators remaining the same, three were actually achieving 100% - a level from which it is not possible to achieve better performance.

4.12 Particularly notable performance was achieved in Children's Services with continuing improvement in National Key Stage tests and GCSE examinations, for example, in the percentage of pupils achieving 5 or more GCSEs at grade A* - C, now 61.2%; this is already set against high levels of performance compared to national averages and statistical neighbours.

4.13 Further notable performance was achieved in waste management - where, as a result of recent investment in energy from waste plant, the percentage of waste sent to landfill continued fall and is now standing at 17%, down a further 2% since the end of March. This ensures that Hampshire remains a national leader in this area. Road casualty levels for fatal and serious casualties also continue to show a reduction.

4.14 Other areas of excellent performance in relation to the national indicators include the continuing high level of performance in Trading Standards where 100% achievement continues to be reported in compliance with BVPI 166b. The majority of Corporate Health indicators showed an improvement with increased percentages of staff from ethnic minorities and a further increased percentage of invoices paid on time, now 95%.

4.15 Areas of poorer performance, perhaps understandably in view of their financial situation, are reported across the majority of Adults Services indicators against the targets set. It is intended that their financial recovery plan will help improve these results. Children leaving care with 1 or more GCSEs and those leaving care in going into education/training or employment are also both predicted to fall in performance by year end (estimates only available at this stage). These have been recognised as areas of concern and priorities for action.

4.16 Crime figures produced by Hampshire Constabulary show an increase in vehicle crime and violent offences in a public place for this half year although burglaries and violent offences by a stranger have both reduced in this period.

4.17 Regarding performance against target, 58% of indicators with half year data available (51 of the 79 indicators reported in total) are predicted at this stage to equal or better their target, a potential increase on the 2005/06 end of year results where 55% of indicators equalled or bettered their target.

4.18 Further analysis of information of this type will be possible when the performance management electronic information system is installed.

5 Audit of BVPI performance results 2005/06

5.1 The auditors have given the Council one reservation on BVPI 165 (pedestrian crossings with disabled facilities). This is our best result yet and continues the improvement in the accuracy of our performance indicators. The reservation means the auditors were not satisfied that the data collection and reporting was robust enough rather than any judgement on performance. However, this reservation has an impact on the Environment service score within CPA and has the result of limiting the block to a three out of four, where previously a four out of four was predicted. Options for the department to contest this reservation and the BVPIs inclusion within the CPA regime are being investigated. In terms of ensuring a reservation is avoided in the future, the responsible team are reviewing their data collection and will adjust their monitoring regime accordingly. It is likely this will involve inviting the local auditors to help design a system which is both robust and pragmatic.

6 Public reporting of performance

6.1 The corporate summary above can be made available on Hantsweb, if this is requested. However, previous half year reports have not been published as there are so many estimated figures. Nonetheless, this summary, together with the departmental reports, will be used as the performance results to be presented to the Audit Commission in March to support the CPA Corporate Assessment being undertaken in May 2007. As it would be best to provide the most up to date information, it is suggested that there is a 3^rd quarter refresh of performance information undertaken in late January 2007.

Recommendations

The following decisions are sought:

1 That Cabinet agree that the corporate performance report and results - half year 2006/07 will be used to inform the development of the Corporate Business Plan.

2 That the corporate performance report summary and results - half year 2006/07 are refreshed in January 2007 before release to the Audit Commission for the CPA Corporate Assessment.

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.

Departmental returns of performance results - held by the Corporate Performance Team and by departmental performance contacts

N.B. The list excludes:

1. Published works

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