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Annual Improvement Report Newport City Council

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Annual Improvement Report Newport City Council Annual Improvement Report Newport City Council Issued: May 2014 Document reference: 243A2014 About the Auditor General for Wales The Auditor General is independent of government, and is appointed by Her Majesty the Queen. The Auditor General undertakes his work using staff and other resources provided by the Wales Audit Office, which is a statutory board established for that purpose and to monitor and advise the Auditor General. The Wales Audit Office is held to account by the National Assembly. Together with appointed auditors, the Auditor General audits local government bodies in Wales, including unitary authorities, police, probation, fire and rescue authorities, national parks and community councils. He also conducts local government value for money studies and assesses compliance with the requirements of the Local Government (Wales) Measure 2009. Beyond local government, the Auditor General is the external auditor of the Welsh Government and its sponsored and related public bodies, the Assembly Commission and National Health Service bodies in Wales. The Auditor General and staff of the Wales Audit Office aim to provide public-focused and proportionate reporting on the stewardship of public resources and in the process provide insight and promote improvement. This Annual Improvement Report has been prepared on behalf of the Auditor General for Wales by Non Jenkins and Jackie Joyce under the direction of Alan Morris. 2 Annual Improvement Report - Newport City Council Contents Summary report and recommendations 4 Detailed report Introduction 9 In 2012-13, the Council made progress in delivering its improvement objectives and its education service mostly performs at or above expected levels, but the Council is not achieving everything it set out to do in some other key services 10 The Council’s evaluation and reporting of its performance improved in 2012-13 but governance and data quality arrangements needed to be strengthened 25 During 2013-14 the Council was at a pivotal point as it began to address longstanding weaknesses in arrangements that underpinned improvement and, with wider ownership and strengthened capacity, it had the potential to achieve the scale and pace of changes required 30 The Council is likely to make arrangements to secure continuous improvement for 2014-15 if it continues to maintain the pace of change 36 Appendices Appendix 1 Status of this report 37 Appendix 2 Useful information about Newport and Newport City Council 38 Appendix 3 Annual Audit Letter 39 Appendix 4 Newport City Council’s improvement objectives and self-assessment 42 3 Annual Improvement Report - Newport City Council Summary report and recommendations Summary • performance in relation to key education measures shows that the Council 1 Each year, the Auditor General must report maintains a low-cost system of primary on how well Welsh councils, fire and rescue and secondary schools which perform authorities, and national park authorities are at or above expected levels for most key planning for improvement in delivering their indicators; services. This report sets out the findings of the work undertaken on behalf of the • analysis of key performance measures Auditor General by the staff of the Wales for social services reveals a mixed Audit Office; and also draws on the work picture of performance; and of the relevant Welsh inspectorates. The • analysis of other performance information report covers the delivery and evaluation reveals a mixed picture of improvement. of services of Newport City Council (the Council) in relation to 2012-13, and its 3 We also found that the Council’s evaluation planning of improvement for and reporting of performance improved in 2013-14. Taking these into account, the 2012-13 but governance and data quality report records the Auditor General’s arrangements needed to be strengthened. conclusion on whether he believes that the We came to this conclusion because: Council will make arrangements to secure continuous improvement for 2014-15. • although the Council discharged its improvement reporting duties under the 2 The audit team found that, in 2012-13, the Measure for 2012-13 there is potential to Council made progress in delivering its strengthen its arrangements further; improvement objectives and its education service mostly performs at or above • the Council had been slow to address expected levels, but the Council is not weaknesses in the governance achieving everything it set out to do in arrangements that underpin its decision some other key services. We came to this making to support improvement but conclusion because: is now putting arrangements in place to strengthen scrutiny and its change • the Council made progress in delivering programme; its 2012-13 improvement objectives; • the Council recognised that it had not managed performance and risk well enough, and is putting some better arrangements in place to drive improvement; 4 Annual Improvement Report - Newport City Council • processes for dealing with data were • the Council is improving its financial not consistently applied or embedded management arrangements. across services leading to significant weaknesses in the accuracy of reported 5 Taking the above into account, we data; and believe that the Council is likely to make arrangements to secure continuous • the Council complied with its improvement for 2014-15 if it continues to responsibilities relating to financial maintain the pace of change. reporting and its use of resources. 4 Finally, we found that, during 2013-14 the Council was at a pivotal point as it began to address longstanding weaknesses in arrangements that underpinned improvement and, with wider ownership and strengthened capacity, it had the potential to achieve the scale and pace of changes required. We came to this conclusion because: • whilst improvement planning was developing, the Council failed to discharge some of its improvement planning duties under the Measure for 2013-14; • the Council recognises that its governance arrangements need to be strengthened in some key areas; • the Council’s transformation programme has delivered efficiency savings; but the Council has not exploited the programme to more effectively target resources, support sustainable improvement in services and deliver better outcomes for local citizens; and 5 Annual Improvement Report - Newport City Council Recommendations 6 Over the course of our work in 2013-14 we made a number of statutory recommendations. These have previously been published and reported to the Council in the Corporate Assessment Report dated September 2013 and are set out below for information. We will continue to monitor the progress made by the Council in implementing the recommendations as part of future work programmes. R1 The Council should ensure that members are provided with robust information at the earliest opportunity to enable them to inform, take and challenge choices and decisions effectively, and ensure that they are recorded and reported transparently. This includes the provision of: • Options appraisals. • The implications of the options, recommendations and decisions. • Fully costed business cases prior to initiating major programmes to support change. The financial impact of any significant proposed service changes should be reflected in medium-term financial plans directly where the change is certain to proceed or as a sensitivity if the change is not certain. R2 The Council should address with more urgency the weaknesses in its governance arrangements that underpin its decision making to support improvement. This would include: • strengthening committee work programming arrangements to ensure they are timely, meaningful, informative, transparent, balanced, monitored, and joined up; • reviewing and updating the Council’s constitution ensuring that roles, responsibilities and accountabilities are clear, and that all members understand and apply their respective roles in relation to each other without compromising independence; • empowering members to be more proactive and accountable for their roles and responsibilities; • strengthening decision-making arrangements to ensure transparency and appropriate safeguards are in place; • strengthening scrutiny arrangements to more effectively inform and challenge policies, options, decisions and actions, and hold Cabinet members, officers, partners and others to account more robustly to drive an increased pace of progress and improvement; • strengthening and mandating member and officer development and learning programmes based on competency assessments to improve skills and understanding to enable them to undertake their roles more effectively; and • addressing information security and business continuity arrangements. 6 Annual Improvement Report - Newport City Council R3 The Council needs to quickly address weaknesses in its strategic financial planning and management to ensure that it is able to deliver its planned improvements. In doing so, the Council needs to: • strengthen medium-term financial planning with fuller consideration of demographics, projections and priorities as well as the management of risks that are linked to the risk register(s); • the delivery of financial savings needs to be monitored and reported more effectively at a corporate level as well as the investments being made to improve/maintain services; • strengthen the status of financial management at a strategic level and ensure that responsibility is aligned to corporate objectives and accountabilities; and • ensure there is sufficient
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