Hampshire Fire and Rescue Authority

Performance Review and Scrutiny Committee Item 5

27^th February 2009

Performance Assessment 2008 : Direction of Travel, Use of Resources and Organisational Assessment.

Report by the Chief Officer

Contact: Phil Webb Performance Review Manager

[email protected]

1

Summary

1.1

This report by the Audit Commission (AC) details their findings for their 2008 assessments of our Direction of Travel, Use of Resources, and Organisational Assessment.

1.2

The Audit Commission have reported their assessment of our `Direction of Travel' as `improving strongly'.

This is good news as it is the highest score achievable and recognises the efforts made during 2008. It also shows a creditable improvement over the 2007 rating.

1.3

The assessment of our `Use of Resources' looked at the Authority's performance across a range of financial themes including the arrangement for securing Value for Money. The Audit Commission rated this area as a 3 - Consistently above minimum requirements - performing well.

1.4

The Organisational Assessment concentrated upon the Authority's ability to `Manage Performance and provision of `Value for Money'. In both areas the Audit Commission have awarded a rating of 3 out of a potential 4. The Audit Commission (AC) have agreed to make a presentation on this to Members at the March Governance Meeting.

2

Recommendation

2.1

That the contents of this report be noted.

3

Direction of Travel assessment 2008

3,1

The purpose of a scored Direction of Travel assessment is to provide a concise statement of a Fire and Rescue Authority's strength of improvement or deterioration. In reaching their conclusion the AC will consider how well the authority has performed since its last assessment and whether it will continue to improve.

3.2

In particular the AC considered the following major areas of service improvement:

· Fire Prevention and Risk Management

· Working together: the regional approach

· Effective response

· Resilience and New Dimension

· Fire and Rescue Staff

· Workforce development

3.3

The outputs from the assessment are (1). a rating - Hampshire is improving strongly, and (2). a narrative detailing our progress since last year. This is detailed below.

What progress has the authority made in the last year?

Hampshire Fire and Rescue Authority is improving strongly. It has made good and sustained progress in delivering better services that meet the needs of all its communities. The Authority is achieving high service performance with 76% of its performance indicators improved since last year. It has worked with key partners, such as the Police, Ambulance Service and schools to provide the most timely emergency response, reduce road traffic accidents, anti-social behaviour and arson. It manages its resources well and has continued to provide good value for money through careful financial management, innovation and extensive partnership working. Staff work in a cost-effective and flexible way, undertaking community safety activities such as home fire safety visits and making significant improvement in reducing incidents of fire, death and injury. Hampshire has made good progress in addressing weaker areas highlighted in last year's review. Diversity is now well integrated into the organisation, but the Authority knows it needs to continue to improve its approach to equality and diversity so that it truly reflects the communities it serves. Hampshire has robust plans for improving further and has the ability, capacity and confidence to make change.

4

Use of Resources

4.1

This assessment looks at the Authority's performance across a range of financial themes including the arrangement for securing Value for Money, these together with our scored rating are detailed below.

Audit Commission Assessment

Element Score

Financial Reporting

3

Financial Management

3

Financial Standing

3

Internal Control

3

Value for Money

3

Audit Commission - Overall Use of resources Judgement

Element Score

Overall Score

3

4.2

The use of resources judgements are scored on the following scale:

4 - well above minimum requirements - performing strongly

3 - consistently above minimum requirements - performing well

2 - at only minimum requirements - adequate performance

1 - below minimum requirements - inadequate performance

The Audit Commission (Draft) report identified a number of opportunities for improvement and these together with our initial responses are attached as Appendix 1. These will be added to our Improvement Register to ensure they are progressed to the satisfaction of the Authority.

5

People Impact Assessment

5.1

There are no specific issues arising from this report to bring to the attention of members.

5.2

The proposals within this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998, and the Race Relations (Amendment) Act 2000.

6

Risk Analysis

6.1

We are required to provide an effective, efficient service in the most economic way. The Audit Commission now take the lead in all performance assessments for the Service. This report focuses on the Authority's performance across a broad range of activities. It is most important that we consider the issues raised and introduce measures to address any shortcomings.

6.2

To maintain focus, all outstanding issues will be included in the Service Improvement Register to ensure actions are taken and progress monitored towards resolution.

6.3

Failure to carry out this process leaves the Authority open to public criticism and the risk of reputational damage.

Background Information (Section 100D of Local Government Act 1972)

The following document disclose the 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 the report:

Note: The list excludes: (1) published works; and (2) documents that disclose exempt or confidential information defined in the Act.

· Appendix 1 - Improvement opportunities arising from the Audit Commission Report - Use of Resources 2008, and proposed strategies for improvement.

KLOE *

ref number

Improvement opportunities identified by the Audit Commission

Proposed strategy for improvement

1.1

Ensure that the working papers to support the accounts include an analytical review of the accounts with explanations and workings to support significant variations.

This action point has been discussed with the Audit Commission, who have confirmed that they will provide examples of the required working papers to the appropriate Financial Services staff, to enable them to implement improvements.

1.2

Review and update the web-site contents in respect of financial reporting to ensure full accessibility to groups, such as non-English speakers, visually impaired etc.

Financial services are developing their own intranet web page. Financial information will be available in a highly summarised format, but more detailed information will also be available if required. Advise will be sought from the External Advisory Group.

Actions will also be taken to improve navigation from the home page to financial information.

1.2

Consult public and other stakeholders on the publication of an annual report in addition to current information, and in particular on the level and presentation of financial information included. Ensure published annual report covers environmental impact issues. Consider the costs/benefits of producing an annual report.

The Service is committed to the compilation and publication of an annual report.

2.1

Ensure that the medium-term financial strategy models balances, resource requirements, and revenue items using different planning scenarios and link this to corporate risk management and financial reports.

The Treasurer has developed some models which illustrate the impacts of various budget scenarios, and this type of work will be continued..

2.2

Further develop reporting to include `traffic light' system to focus members on key variances and actions.

Work will be undertaken to introduce a traffic light system to the budget monitoring reports. Tolerance levels to indicate the flagging of performance against target will be considered, adopted, and explained in reports. The Audit Commission have agreed to provide us with examples of good practice.

2.2

Include operational activity indicators that are lead indicators of spend within budget monitoring systems. Regularly evaluate the effectiveness of leadership provided on financial management.

We will consider the most appropriate operational activity indicators within the budget monitoring system.

Examples of indicators that could be used are:

· Number of operational incidents

· Total non operational travel

· Number of calls responded to by Retained Duty System staff

· Number of Home Fire Safety Visits undertaken

· Total energy consumption

· Vacancy levels.

2.3

Ensure that detailed performance measures and benchmarking are being used to describe and evaluate how the Authority's asset base contributes to the achievement of corporate and service objectives.

Performance measures used in national studies on value for money will be examined to determine the most appropriate to be used and monitored on a regular basis.

3.1

Establish and monitor challenging targets for a comprehensive set of financial health indicators with specific attention to material or problem areas. These should be based on a thorough assessment of the current position, including benchmarking against other Authorities. Indicators and targets for financial health could include: accuracy of budget, delivery of capital programme, payment of invoices, effectiveness of debt recovery, payroll effectiveness, liquidity, reserves, accuracy of provisions etc.

We will look at which efficiency indicators we will find useful in recent reports by the Audit Commission's on Community Safety report and CIPFA/Institute of Public Finance

Those statistical financial health indicators that are adopted will be reported to regularly.

4.1

Ensure the risk management process documents and facilitates regular `risk management awareness training' for all members appropriate to their needs and responsibilities.

Identify a senior officer and member to jointly champion and take responsibility for embedding risk management at all levels throughout the authority.

Ensure all reports to support strategic policy decisions, and initiation documents for all major projects, require detailed sustainability impact appraisal.

Further awareness sessions will be arranged for elected Members during the next financial year.

A senior officer acts as a risk management champion.

The relevant Committee will be asked to appoint a Member to act as risk champion.

Reports already contain a section on risk analysis, but further guidance will be included in the forthcoming report writing training on that aspect as well as environmental considerations to be reported.

Consideration will be made to undertaking sustainability impact appraisals for major projects and strategic policy decisions.

4.2

Ensure the Governance Committee provides effective challenge across the authority and independent assurance on the risk management framework and associated internal control environment to members and the public.

Demonstrate the impact of the work of the Governance Committee through an annual review.

The Strategic Risk Management Policy and Register will be reported to Governance Committee annually in September.

The self assessment matrix which forms part of our Annual Governance Statement will form basis of a review of the work of the Governance Committee.

4.2

Ensure that standing orders, standing financial instructions and the scheme of delegation make specific reference to partnerships as appropriate.

Financial Regulations make specific reference to governance requirements for partnerships. This has been discussed with the Audit Commission, and evidence provided. They have agreed to close this action down.

4.2

Obtain appropriate assurance on a risk basis of the viability of the business continuity plans of all significant suppliers/contractors.

Consideration will be given to gain assurance of the viability of business continuity plans of key suppliers.

4.3

Ensure that planned proactive counter fraud and corruption work is determined by a formal risk assessment and is adequately resourced. In 2007/08 planned identity fraud training did not take place owing to the continued unavailability of relevant staff.

Ensure that all staff are aware of and have clearly acknowledged and accepted their responsibility to prevent and detect fraud and corruption.

Demonstrate that staff and staff within contracting organisations, have confidence in the whistleblowing arrangements and feel safe to make a disclosure.

The strategy for the undertaking of proactive counter fraud and corruption work from 2009/10, and ensuring that our controls in terms of fraud and corruption are adequate, have been discussed and agreed with Internal Audit. Internal Audit in turn will ensure that they liaise with External Audit on this issue.

Reminders will continue to be put out about the reporting concerns at work policy.

5.1

Continue to develop and embed the approach to whole life costing.

Uniform and vehicle replacement programmes are examples of where we use whole life costing.

This approach will also be used in respect to energy initiatives and the review of car use.

5.1

The Authority is currently experiencing serious challenges in its management of property maintenance. The review undertaken to update the Property Management Strategy and Register revealed that the service is not keeping pace with the backlog of building maintenance and repairs identified format the 3-year rolling programme of building condition surveys.

The Finance and General Purposes Committee has recommended that the repairs and maintenance budget is increased by £250,000 pa to help meet the maintenance backlog. Also £450,000 per annum capital budget is to be used for improvement works identified in the condition survey.

5.1

Demonstrate that the capital programme is used, with partners, to challenge existing service models to achieve a transformation in services for users.

This has been discussed with the Audit Commission to clarify requirements, but we have examples, such as the Portsmouth Community Contact Point, where our facilities are used jointly with our partners to enhance services provided to the community.

5.2

Demonstrate that information regarding costs and quality of services includes information on equity across the community, for example spend per head across diverse communities analysed against service standards achieved in those communities.

This issue has been discussed with the Audit Commission, as have the difficulties in defining the link between initiatives and outcomes . We will look at the spend per head of population and endeavour to measure it against improvements made in various sections of the community.

5.2

Include efficiency savings and Value for Money targets in departmental plans, section plans, and relevant personal development plans. Ensure that the targets are profiled through the year.

We will take steps to include efficiency savings in departments and personal plans wherever possible. A pilot is currently being run in one group to devolve budgets. In this case, efficiency savings will be identified at Group level.

5.2

Review the approach to target setting and revise future targets where they have already been achieved.

Targets and tolerance levels are currently being reviewed, and will continue to be monitored in the future.