Our Ref: Your Ref: Contact: Kirsty Brown Tel: 01698 302 401 Fax: 01698 302351 E-Mail: [email protected] Date: 15 Nov 2019
Chief Executive’s Office Members of the Archie Aitken Finance and Resources Committee Head of Legal & Democratic
Solutions Civic Centre, Windmillhill Street Motherwell ML1 1AB DX 571701, Motherwell 2 ww w .northlanarkshire.go v .uk
Notice is given that a Meeting of the FINANCE AND RESOURCES COMMITTEE is to be held within the Civic Centre, Motherwell on Wednesday, 27 November 2019 at 10:00 am which you are requested to attend.
The agenda of business is attached.
Head of Legal and Democratic Solutions
Members : Councillors: D Ashraf, J Ashraf, D Baird, A Beveridge, B Burgess, R Burrows, A Campbell, T Castles, T Cochrane, M Coyle, D Cullen, H Curran, C Currie, P Di Mascio, K Docherty, S Farooq, T Fisher, F Fotheringham, M Gourlay, A Graham, J Hume, C Johnston, T Johnston, J Jones, K Larson, G Lennon, J Linden, J Logue, F MacGregor, R McKendrick, C McManus, I McNeil, T Morgan, P O'Rourke, J Reddin, N Shevlin, W Shields, K Stevenson, A Valentine, S Watson.
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Page 2 of 197
AGENDA
(1) Declarations of Interest in terms of the Ethical Standards in Public Life Etc. (Scotland) Act 2000
MINUTES
(2) Minute of the Meetings of the Joint Consultative Committee for Local Government Employees of 8 and 31 October 2019 (page 7 - 10) Submit minute of the meeting of the Joint Consultative Committee for Local Government Employees of 8 October 2019 and 31 October 2019 for approval (copy herewith)
(3) Minute of the Meeting of the Employee Appeals Sub-Committee of 10 October 2019 (page 11 - 12) Submit minute of the meeting of the Employee Appeals Sub-Committee of 10 October 2019 for approval (copy herewith)
OPERATIONAL
(4) Employee Engagement and Wellbeing (page 13 - 46) Submit report by the Head of People and Organisational Development providing an update on the progress made in relation to the programme of work aligned to employee engagement and wellbeing (copy herewith)
(5) Sexual Entertainment Venues Licensing (page 47 - 50) Submit report by the Head of Legal and Democratic Solutions (1) informing of the licensing provisions for Sexual Entertainment Venues (SEVs), and (2) seeking approval to undertake a public consultation on the licensing of SEVs in North Lanarkshire (copy herewith)
(6) Freedom of Information Report (page 51 - 58) Submit report by the Head of Legal and Democratic Solutions providing details of the Freedom of Information and Environmental Information Requests received by the Council during financial year 2018/19 (copy herewith)
(7) Community Council Quadrennial Elections 2019 (page 59 - 62) Submit report by the Head of Legal and Democratic Solutions advising the results of the recent quadrennial elections for the Community Councils in North Lanarkshire following the close of the nomination process on Monday, 9 September 2019 (copy herewith)
(8) Registration Service - Review of Festive Opening Hours (page 63 - 76) Submit report by the Head of Legal and Democratic Solutions presenting his findings in relation to the Council decision that there be an investigation into the possibility of Council registration offices being kept open during the festive period (excluding weekends and bank holidays) (copy herewith)
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2
PERFORMANCE
(9) The Plan for North Lanarkshire: Strategic Performance Framework Reporting Arrangements (page 77 - 90) Submit report by the Head of Business Solutions outlining the next steps in terms of the reporting arrangements for the Strategic Performance Framework (Please Note: an A3 copy of the Appendix has been enclosed with your papers) (copy herewith)
MONITORING
(10) Revenue Monitoring
(a) Revenue Budget Monitoring Report - Chief Executives and Other Corporate Services 1 April to 11 October 2019 (page 91 - 100) Submit report by the Head of Financial Solutions providing a summary of the Chief Executive and other corporate services financial position for the period 1 April to 11 October 2019 (copy herewith)
(b) Revenue Budget Monitoring Report - Council Summary 1 April to 11 October 2019 (page 101 - 110) Submit report by the Head of Financial Solutions providing an update on the overall position for the General Fund Accounts, Housing Revenue Account and Adult Social Care for the period 1 April to 11 October 2019 (copy herewith)
(11) Capital Programme 2019/20 Monitoring Report 1 April to 11 October 2019 (page 111 - 118) Submit report by the Head of Financial Solutions providing an update on the 2019/20 resources and expenditure for the Council's Capital Programmes as at 11 October 2019 (copy herewith)
(12) Treasury Management Monitoring Report for Quarter Ended 30 September 2019 (page 119 - 128) Submit report by the Head of Financial Solutions advising of the Treasury Management Activity for the quarter ended 30 September 2019, including the positive performance against the key treasury and prudential indicators (copy herewith)
FINANCIAL
(13) Payment of Local Taxation and Benefit Update (page 129 - 134) Submit report by the Head of Financial Solutions providing an update on the payment performance for Council Tax and Non Domestic Rates and the administration of welfare benefits and Council Tax Reduction Scheme as at 31 October 2019 (copy herewith)
(14) General Debtors Debt Write-Off 2019/20 (page 135 - 138) Submit report by the Head of Financial Solutions presenting a summary of outstanding debtor accounts which are deemed uncollectable following all attempts at recovery or are considered uneconomically viable to continue pursuing (copy herewith)
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CONTRACTS
(15) Contract Renewal - iTrent (page 139 - 168) Submit report by the Head of People and Organisational Development seeking approval to award the contract for the continued use of the iTrent system for the period 25 December 2019 to 24 December 2026 to Midland HR (copy herewith)
(16) Contract Award: Metal Doors and Blacksmith Works - Service and Maintenance 2020/24 (page 169 - 176) Submit report by the Head of Asset and Procurement Solutions seeking approval to award the contract for Metal Doors and Blacksmith Works - Service and Maintenance 2020/24 (copy herewith)
CONFERENCE
(17) Conference: Scottish Licensing Law and Practice - The Essential Licensing Update 2019 (page 177 - 178) Submit report by the Head of Legal and Democratic Solutions regarding an invitation for representatives to attend a conference on 6 December 2019 (copy herewith)
LAND/PROPERTY
(18) Re-allocation of Land
(a) Land at Dykehead Road, Airdrie from Environmental Assets to Enterprise and Housing Resources (page 179 - 182) Submit report by the Head of Asset and Procurement Solutions seeking approval to re- allocate land at Dykehead Road, Airdrie from Environmental Assets to Enterprise and Housing Resources (copy herewith)
(b) Land at Mabel Street, Motherwell from Environmental Assets to Enterprise and Housing Resources (page 183 - 186) Submit report by the Head of Asset and Procurement Solutions seeking approval to re- allocate land at Mabel Street, Motherwell from Environmental Assets to Enterprise and Housing Resources (copy herewith)
(19) Cumbernauld Indoor Bowling Club - Proposed Lease Variation (page 187 - 190) Submit report by the Head of Asset and Procurement Solutions seeking approval to vary the existing lease and grant an unexpired lease term of 25 years to Cumbernauld Indoor Bowling Club (copy herewith)
(20) North Lanarkshire Properties LLP - Consent for Sale of Various Properties (page 191 - 198) Submit report by the Head of Asset and Procurement Solutions seeking approval for the sale of North Lanarkshire Properties LLP's interest in various properties (copy herewith)
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EXCLUSION OF PUBLIC The Committee is asked to consider passing the following resolution: "That under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 8 of Part 1 of Schedule 7A of the Act."
(21) Town Centre Fund - Acquisitions (page 199 - 208) Submit report by the Head of Asset and Procurement Solutions seeking approval for proposed acquisition of various properties through the Town Centre Fund (copy herewith)
Page 6 of 197 AGENDA ITEM 2
JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES – 8 October 2019
Motherwell, 8 October 2019 at 2 pm.
A Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES
IN ATTENDANCE
The Administrative Officer.
APOLOGIES
Councillor Duffy, Convener; Councillors D. Ashraf, Baird, Barclay, Beveridge, M. Coyle; Douglas, Feeney, Kelly, Logue, H. McVey and Stocks.
M. Quigley, UNISON, Vice-Convener; C. McGuire and S. Traynor GMB; A. Clark, D. Lowrie, C. Ross, M. Simpson, J. Struthers and J. Watson, UNISON and M. Scroggie and J. Rooney, Unite (T &G).
In the absence of the necessary quorum, the meeting stood adjourned until Thursday, 31 October 2019 at 2 pm.
Page 7 of 1197 ADJOURNED JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES – 31 October 2019
Motherwell, 31 October 2019 at 2 pm.
An Adjourned Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL
GOVERNMENT EMPLOYEES
PRESENT
Councillor Duffy, Convener; Councillors Barclay, Beveridge, Kelly, Logue, and Stocks.
V. McEwan and J. Watson, UNISON.
CHAIR
Councillor Duffy (Convener) presided.
IN ATTENDANCE
Chief Executive, Head of People and Organisational Development, Head of Financial Solutions, Employee
Relations Manager, HR Business Partnership Manager, Committee Officer and Administrative Officer (Legal and
Democratic Solutions).
APOLOGIES
Councillors Brannan-McVey, M. Coyle, and Douglas, and M. Quigley, UNISON.
Page 8 of 1197 ADJOURNED JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES – 31 October 2019
In terms of Section 7 of the Constitution of the Consultative Committee for Local Government Employees, and in the absence of the necessary quorum, the meeting stood adjourned.
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Page 10 of 197 AGENDA ITEM 3
EMPLOYEE APPEALS SUB – 10 October 2019
Motherwell, 10 October 2019 at 10 am.
A Meeting of the EMPLOYEE APPEALS SUB-COMMITTEE
PRESENT
Councillor Shields, Convener; Councillor Reddin, Vice-Convener; Councillors Beveridge, Gourlay, C. Johnston, MacGregor, Masterton, McCulloch, Pettigrew, Quigley, Annette Valentine, Watson and Woods.
CHAIR
Councillor Shields (Convener) presided.
IN ATTENDANCE
The Employee Relations Manager and Committee Officer.
ALSO IN ATTENDANCE
Head of Housing Solutions, Employee Relations Officer, J. Watson, Unison and Appellant 3/2019.
APOLOGY
Councillor Barclay.
DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000
1. The meeting noted that there were no declarations of interest.
It was agreed in terms of Section 50A(4) of the Local Government (Scotland) Act 1973, that the public be excluded from the meeting for the following item on the grounds that the business involved the likely disclosure of exempt information as defined in paragraph 1 of Part 1 of Schedule 7A of the Act.
HOUSING SOLUTIONS - APPEAL AGAINST DISMISSAL 3/2019
2. There was submitted intimation of an appeal against dismissal by Appellant 3/2019 together with a report by the Head of Housing Solutions in explanation of the circumstances leading to the dismissal.
The Sub-Committee then heard representations and submissions from the Head of Housing Solutions and witnesses on behalf of the Service, and representations and submissions from J. Watson, Unison, and Appellant 3/2019.
Thereafter, both parties withdrew from the meeting.
Councillor MacGregor, seconded by Councillor Pettigrew, moved that the grounds of the appeal had been substantiated and the appeal be upheld.
Councillor Beveridge, seconded by Councillor Quigley, moved as an amendment that the grounds of the appeal had not been substantiated and the appeal be not upheld.
Page 11 of 197 EMPLOYEE APPEALS SUB – 10 October 2019
On a vote being taken 8 Members having voted for the amendment and 4 Members having voted for the motion, the amendment was accordingly declared carried.
Both parties were then re-admitted to the meeting.
Decided: that the grounds of the appeal had not been substantiated and the appeal be not upheld.
Page 12 of 197 AGENDA ITEM 4
North Lanarkshire Council Report Finance and Resources Committee
FW/ST ☐approval ☒noting Ref Date 27/11/19
Employee Engagement & Wellbeing
From Fiona Whittaker, Head of People & Organisational Development Email [email protected] Telephone 01698 274047
Executive Summary The purpose of this report is to update Finance and Resources Committee on the progress of our programme of work aligned to employee engagement and wellbeing. This work is underpinned by a number of linked strategies and programmes, including the Council’s full roll out of the Investors in People Framework, the Scottish Government’s Fair Work Framework and recent launches of the Lanarkshire Mental Health & Wellbeing Strategy and our own North Lanarkshire Council Health & Wellbeing Strategy, which was approved by Finance and Resources in September 2019. All of this is further supported by the ongoing development of our very successful reward and recognition and employee health and wellbeing provisions under the banner of Work Well NL and NL Life.
Given the challenging operational and economic context we face, with significant programmes of change and transformation impacting across the Council, it has never been more important for us to ensure that we have a consistent focus on engaging and supporting the wellbeing of our employees. This report sets out our actions and progress to date and outlines our forward plan of activity for the coming year and beyond to ensure that we continue to drive employee engagement and sustainable performance across the organisation. This work is integral to our Workforce for the Future Strategy and vital to support the successful delivery of Council’s ambition as set out in The Plan for North Lanarkshire.
Recommendations 1) Finance and Resources Committee is asked to note the excellent progress of the programme of work in this area and support the ongoing direction of travel.
The Plan for North Lanarkshire
Priority Improve North Lanarkshire’s resource base Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition
Page 13 of 197 1. Background
1.1 North Lanarkshire Council’s employee engagement plan is fully aligned to the Investors in People (IiP) framework (Appendix 1). Investors in People is the internationally recognised industry standard for people management that sets out and measures the extent to which organisations are able to drive high levels of performance and employee engagement. The framework is also used to benchmark our practices against those of other leading organisations. 1.2 Our Workforce For The Future strategy has employee engagement embedded within its five strategic workforce priorities and over the last twelve months, we have undertaken a rolling programme of Investor’s in people assessments across all services, with a view to achieving full Council recognition against the standard by in 2020. 1.3 Enterprise and Housing Resources and Social Care achieved accreditation in 2017 and Infrastructure and Chief Executives in 2018. To complete the programme Education and Families are in the process of arranging their assessment which is scheduled to be complete by March 2020. 1.4 In support of our Developing the Young Workforce goals, and the employability programme of work, the Council was also assessed against the Investors in Young People (IiYP) framework this year, and were delighted to be accredited with the standard award in recognition of our practices and pathways that have positive outcomes for young people. We still have some way to go to achieve the highest level of award and are currently developing an improvement plan for implementation during 2020. 1.4 Finally, from our Investors in People 2017/18 improvement recommendations we have identified five priority areas of focus for 2019/20 and beyond that will enable us to take consistent action across our services so that we can work towards achieving a higher level of accreditation for this award. 1.5 Set out in the remainder of this report is our overall progress to date and our forward plan for employee engagement and well-being against our identified five priority areas of focus.
2. Report
Our five priority areas of focus for Employee Engagement. 2.1 Our priority areas of focus are fully aligned to support the IIP Framework and informed by the dimensions of the Scottish Governments ‘Fair Work’ framework (see Appendix 2). Priority #1 - Leaders clearly communicate the organisation’s vision and supporting behaviours. This includes providing clear line of sight between individuals contribution and ‘We Aspire’ our shared ambition and developing a set of guiding behaviours for ways of working that will give an overview of what’s expected of individuals at every level. These guiding behaviours will also be key to supporting and reinforcing our policies such as equality and diversity and dignity at work.
Page 14 of 197 Priority #2 - Enhance our Leadership capability to engage and develop high performing teams. Achieved through increased investment in leader development and a revision of our Leadership Framework following approval at CMT in March 2019.
Priority #3 - Continue to improve internal communication and feedback channels. Ensuring that staff networks are seen as an important part of employee engagement and how we deliver change across the organisation. Strengthening how we communicate our plans and progress including more upward communication of action being taken in service areas. Continuing to create opportunities for two way dialogue with all staff on our plans and progress. Developing appropriate digital means of communication to communicate more broadly across the organisation and to improve our reach with remote workers Priority #4 – Build and develop our council wide approach to reward and recognition. Continuing to promote ‘NL Life and Reward and Recognition NL’ with an increased focus during 2019 on financial wellbeing support in support of the recommendations from the Fairness Commission Report.
Priority #5 - Develop and roll out approaches that promote improved employee health and well-being. Aligned to the recently launched Mental Health and Wellbeing strategy for Lanarkshire ‘Getting it Right for every person (GIRFEP) and the Council’s Mental Health & Wellbeing Strategy, we will continue to enhance our Council Wide programme currently delivered through ‘Work Well NL’. We also continue to maintain our Healthy Working Lives Gold Standard award and the accreditation assessment process allows us to measure our progress.
Progress to date and forward plan. 2.2 Priority #1- Leaders clearly communicate the organisation’s vision and supporting behaviours. 2.2.1 During 2019 we have placed greater emphasis on making our Senior Management team more visible through staff engagement sessions focused on communicating We Aspire our shared ambition, and the plan for North Lanarkshire. This has been delivered through a number of roadshows and conferences with key staff groups for example; social work conference, justice conference, youth justice conference, people and organisational development roadshows, health and social care partnership roadshows, Head Teacher conferences and twilight development sessions. 2.2.2 Extended Corporate Management team development sessions have also provided a vehicle to communicate plans and progress to third and fourth tier officers, at the same time these officers have the opportunity to showcase their work and efforts in working together across services to deliver the plan for North Lanarkshire to Senior Management. From September through to December we are running a series of interactive One North Lanarkshire sessions with staff and these will continue through until December with all feedback gathered and used to shape our plans and the sessions evaluated by the end of the year.
Page 15 of 197 2.2.3 Working in partnership with Strategic Communications we will continue to focus on embedding our shared ambition by developing guiding behaviours for ways of working that will be introduced through the use of personas. These behaviours will give an overview of what’s expected of individuals at every level against our ‘Work Here’ narrative. 2.2.4 Focus groups were held with employees in October and November to inform and guide this work. The behaviours will be applied across all of our HR and Talent strategies from attraction through to exit. This will enable us to enhance our recruitment processes, finding the right people for jobs and driving up performance in support of our ambition. We also have plans to align these with our policies around improving diversity and dignity at work.
2.3 Priority #2 - Enhance our Leadership capability to engage and develop high performing teams. 2.3.1 In September 2018 the Council launched three new We Aspire leader development programmes, namely; Foundations, Fundamentals and Influential Leaders. These programmes are designed to expand the capacity of our most promising current and future leaders to lead and perform successfully in their roles in support of our shared ambition and plans. 2.3.2 Since September 2018, 76 managers have participated in these programmes with 41% from Enterprise & Communities and 17% from Chief Executives (there are a further 40 individuals waiting to enrol on future programmes). The remainder of participants are from Education and Families and Health and Social care which is reflective of the fact that there is a more tailored offering available for these services to enhance professional practice and standards, such as the launch of the new ‘Aspiring Principal Teacher’ Leadership programme in October 2019 and the Professional Development Award in Leadership and Management for Care Services that commenced in February 2019. 2.3.3 Towards the end of the year we will launch our new management development offering including a series of Management Development master-classes to enhance skills and confidence around leading teams for high performance. This will be supported by a new managers’ toolkit where managers can access new online resources that will support them to enhance engagement and team effectiveness. 2.3.4 We will continue to work in partnership with colleagues across services to enhance our Leadership framework whilst reviewing the impact of all programmes to ensure that they continue to meet the needs of both the organisation and individuals.
Page 16 of 197 2.4 Priority #3 - Continue to improve our internal communications and feedback channels, making better use of digital technologies. 2.4.1 We are committed to ensuring that our staff networks are seen as an important part of employee engagement, particularly in the early stages of change programmes. We have been working to strengthen and develop our existing networks and introduce new ones where they are needed for example; proactively working with the employee equality forum resulting in great progress on our Disability Confident Leader and Equally Safe programmes of work.
2.4.2 We have established a network of Digital Transformers who continue to be key to our digital transformation plans. This approach will continue as we take forward our Investors in Young People recommendations involving employees as well as young people from our schools.
2.4.3 It was recognised through both IiP and our Best Value Audit review that we should develop more approaches to cascade our ambition and plans with employees at every level, including staff in front line services who are more difficult to reach. The team brief was refreshed as a key mechanism to communicate progress on our plans reaching all staff through existing team meetings and tool box talks. There have also been a number of targeted briefing sessions with staff in front line services such as Waste and Regulatory Services, Streetscene and Facilities Support and these will continue to happen.
2.4.4 We have continued to develop appropriate digital means of communication. The monthly Chief Executive newsletter has been developed using new interactive MS office digital application ‘Sway’ and we have continued to make best use of the Connect platform to communicate messages and plans for all staff.
2.4.5 We developed a digital Induction booklet for new starters to offer improved information on our Council services, structures and plans. Early 2020 we will be implementing a new employee on-boarding and induction process to integrate new employees into the organisation, helping them to understand how they can be successful in their role and how their work contributes to the organisation ambition and plans.
2.4.6 Digital NL will be a key enabler to facilitate further improved communication and feedback. We have maximised use of the Yammer platform to increase the visibility and access of the Senior Team providing greater clarity about our direction as a Council and how we are making progress against the North Lanarkshire Plan. We are also working on a schedule that will include all Heads of Service in these online discussions, to bring greater depth of understanding to plans across services in line with our IiP feedback and recommendations.
Page 17 of 197 2.4.7 The introduction of MS Office 365 in summer 2020 will see advanced tools to enable greater collaboration across services. We need our services to work together in more common ways, sharing knowledge and learning collectively to create innovative solutions that will deliver our ambition at pace. Prioritising effective collaboration across our service areas should lead to better information sharing, improved accountability and co-ordination on council- wide initiatives.
2.5 Priority #4 - Build and develop our council wide approach to reward and recognition. 2.5.1 By formalising our Reward and Recognition framework, the Council has positioned itself as an attractive and forward thinking employer, attracting and retaining talent and providing an environment where people want to give their best, recognising employee contribution towards the Council’s strategic priorities and ambitions. 2.5.2 We have continued to develop and promote our very successful Reward and Recognition discounted shopping provision under the banner of NL Life. Since launch in August 2018 there has been a steady increase in registered employee users at 4,873. There have been 35,320 logins to the site. The total employee spend has been £244,273 and employees have made savings of £21,500 in total by using the site. 2.5.3 The average spend has risen from £9 per person to c.£30 per person (£38.57 at peak in June this year) with the most popular spend against electrical items, groceries, cinema and theatre, holidays and travel, insurance and retail/clothes and footwear. The top 10 most popular retailers are Curry’s, TUI, Argos, Disney Holidays, Tesco, Cineworld, M&S, B&Q, Asda and Ikea, demonstrating that NL Life is clearly supporting employees with their lifestyle choices and helping them to make the most of their money. 2.5.4 Towards the end of August 2019 we ran ‘NL Life week’, an online targeted communication campaign to further raise awareness of the benefits available and launch the new financial wellbeing and education section ‘NL Life - Help with your finances’ that brings together a number of free resources and signposts individuals to support available such as Credit Unions, Citizens advice and the Governments money advice service. This new offer also fully aligns with recommendations set out in the recent Fairness Commission Report commissioned by the Council. 2.6 Priority #5 - Improved approaches to employee health, safety and wellbeing. 2.6.1 Driving down absence The management of absence is a fundamental facet of the council’s ability to maximise our resource base. The council recognises that absence levels have been increasing over recent years and has taken a series of pro-active steps to help address concerns. A dedicated resource in Employee Relations is now leading on a range of initiatives, in conjunction with colleagues across the organisation.
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These initiatives include:
• Improved reporting to enable speedier and more informed decision making. Working with the Employee Service Centre, all identified managers now receive monthly absence reports. These reports show all staff to have met absence triggers and in need of further action and top 5 reasons for absence. Improved reporting for the teaching trade unions has been an important aspect of this work.
• In areas of high absence, targeted work has been undertaken to review processes and implement support mechanisms for managers and employees to address levels of absence. Training for managers has also been undertaken, where gaps have been identified.
• Our full non-teaching Managing Attendance Policy is now also under review with a view to further improving our ability to effectively manage our levels of absence across the Council.
2.6.2 Mental Health & Wellbeing In response to concerns around the level of absence linked to stress and mental health, the council has recently agreed a new Mental Health & Wellbeing Strategy. The strategy, aligned to the Mental Health and Wellbeing strategy for Lanarkshire ‘Getting it right for every person (GIRFEP) will sit alongside a new awareness and training programme that is currently under development due for launch early 2020. Whilst this is under development we will continue to promote our existing WorkwellNL offer and resources. 2.6.3 Work Well NL 2.6.3.1 Our employee health and wellbeing offering supports us to improve the quality of working life for all employees. All elements of the provision offer employees with quality information to maintain their health and wellbeing and are directed at supporting a reduction in sickness absence. The provision includes:
• Health checks including blood pressure, weight and cholesterol • Seasonal flu vaccinations • Increased access to physiotherapy • Active health programme • NL Back Care Programme • Podiatry Services • Employee Counselling services • Targeted campaigns such as Menopause awareness.
2.6.3.2 Work Well NL has received 7,531 visits since 1st August 2018 and 707 employees have taken advantage of Healthy Lifestyle checks. In 2018 there was a 58% increase in the issue of flu vaccination vouchers with 3267 sent out last year and this campaign continues through October and November 2019. We have increased our access to physiotherapy, which is the offer most in demand, with 814 sessions taken up and 107 employees have benefited from our back care programme.
Page 19 of 197 2.6.3.3 We more recently launched our podiatry services geared towards supporting staff in physical roles and 276 employees have taken advantage of this offer. The employee counselling service ‘Time for Talking’ has received 1,040 enquiries. We will continue to promote WorkwellNL and maximise our partnerships to deliver this e.g. promoting the walking pathways challenge as part of Get Walking Lanarkshire – Health Walks programme during October and November.
2.6.4 Healthy Working Lives
2.6.4.1 We are delighted to have maintained our gold award standard for Healthy Working Lives (HWL) in recognition of our Health, Safety and Wellbeing practices across services. This required us to undertake a health needs assessment survey and a report of the findings is currently being prepared and will be presented to Corporate Management Team.
2.6.4.2 This assessment helps us an organisation identify issues and continue to improve health, safety and wellbeing through a structured framework that should lead to having a healthier, more motivated and productive workforce; reducing absence rates and supporting employees in work and returning to work, contributing to the health of our wider community and enhancing our reputation as a leading employer.
2.6.4.3 The recommendations following approval from CMT will inform our overall programme of work around Health, Safety and Wellbeing into 2020 and continue to offer us a benchmark against leading organisations with the next assessment due in 2022.
2.7 Next steps
2.7.1 As mentioned earlier in the report our Education and Families service will undertake IiP assessment later this year with the overall Council findings consolidated and reported, including incorporating the H&SC partnership I- matters results, by March 2020.
2.7.2 We will at that time review the findings and recommendations and refocus our employee engagement priorities for 2020/21 in approval with CMT with a further update to Committee during 2020.
3. Equality and Diversity
3.1 Fairer Scotland Duty
Our work around employee engagement supports the recommendations of the fairness commission and the Fairer Scotland Duty to reduce the inequalities of outcome caused by socio-economic disadvantage.
Page 20 of 197 3.2 Equality Impact Assessment
The IiP framework has been subject to an equality impact assessment. ______
______4. Implications
4.1 Financial Impact We continue to focus on maximising our drawdown of available funding for initiatives and leveraging partnership relationships and delivery to ensure best value for the Council.
4.2 HR/Policy/Legislative Impact There are a number of Council wide impacts on existing HR Policies and processes. These have been fully managed in accordance with agreed procedures any change subject to assessment and Committee approval.
4.3 Environmental Impact Increased use of Digital Technologies related to employee engagement activity will have an environmental by reducing the need for material resources.
4.4 Risk Impact Progressing our organisational capability in being IiP, IiYP, HWL accredited is aligned with managing our reputational risk by ensuring that we live up to external challenge on all of the accreditations we have been awarded.
______
5. Measures of success
5.1 The IiP, IiYP and HWL frameworks will provide a measure of the effectiveness of leadership and management and Health, Safety and Wellbeing practices across the organisation.
5.2 Ongoing measurable progress against our ambitions to build a Workforce for the future ______6.0 Supporting Documents
Appendix 1: Investors in People Framework Standard Appendix 2: Scottish Government Fair Work Framework ______
Fiona Whittaker Head of People and Organisational Development
Page 21 of 197 Page 22 of 197 The Standard
Page 23 of 197 2
The standard for people management What it takes to lead, support and manage people well for sustainable results
@IIP /investors-in-people 2017 /InvestorsInPeople.UK
First edition of the Sixth Generation Investors in People Standard, 2015. ISBN: 9781900567534 First published in September 2015 by the UK Commission for Employment and Skills, 20 Great Smith Street, London SW1. All rights reserved. No part of this publication, including registered trademarksPage and 24 protected of 197 designs, may be reproduced in any material form without written permission from the copyright owner. 3
A mark of distinction
The Investors in People Standard What is a standard? sets out the criteria for high A standard is a level of quality and attainment. The criteria within standards capture knowledge, principles and effective performance through people. approaches drawn from industry leaders. Standards can It’s a simple framework to therefore be a very effective tool to measure and benchmark performance against common global principles. Formal benchmark the effectiveness accreditation against a standard demonstrates achievement in of leadership and management a particular field or industry. Research shows that organisations accredited against the Investors in People Standard outperform practices in any organisation. industry norms. For example, 60% of Investors in People accredited organisations predict business growth, compared to Those that meet the performance requirements of the UK business average of 47%,1 demonstrating the difference the Investors in People Standard proudly display their excellence in people management makes to performance. accreditation to the world. It’s a mark recognised across Investors in People is the standard for people management. 75 countries that sets apart those that have achieved First established in 1991 by UK government, the Standard excellence in the way they lead, support and manage has been revised six times, and 2015 sees the latest generation people. Why? Because they understand that it’s people release. It is an internationally protected trademark and that make the difference. only accredited organisations have the exclusive right to This guide sets out the criteria of the Investors in People display the award. Standard and supporting background information on the principles and underpinning methodology. It’s a simple roadmap for anyone looking to achieve Investors in People accreditation and a topic guide for anyone looking to manage change or foster excellence in people management in their own team or business.
% 60of Investors in People accredited organisations predict business growth, compared to the UK business average of 47%
1 UKCES, Employer Perspectives Survey, 2012. Page 25 of 197 4
The sixth generation Standard
September 2015 saw the launch of the sixth generation Standard. The update and revision was based on the features of leading organisations from across the world.
Led by a UK government commission review, hundreds of academics, business leaders, industry experts and practitioners were involved in the creation of the sixth generation. Research into the characteristics of organisations that are able to achieve sustained, improved results over the long term were used as a foundation. The result is a simple framework for sustainable performance through people.
First released in 2015, the sixth generation Investors in People Standard introduces a four stage performance model, and nine new indicators based on the features of organisations that consistently outperform industry norms. Alongside this introduction, after independent review of the Standard by University of Bath Management School in 2015, a Platinum award level was introduced. This change reflects the significant raising of standards with the introduction of the sixth generation.
*UKCES Employer Perspectives Survey 2012. Page 26 of 197 5
Exploring the Standard
You won’t find processes, policies or paperwork. You will find easily understandable criteria that form a simple road-map for excellence in any industry.
Leading Supporting
Creating purpose in a changing For many, constant change is the environment, whilst motivating new normal. Sustainable organisations through change, have become use flatter structures to enable essential skills for many roles. faster decision-making, agility and High performing organisations customer focus. The Standard explores foster leadership skills at every level the way in which people are of the organisation to deliver supported to perform. This is through outstanding results. The leading the way jobs are designed, reward indicators explore the clarity of is structured, performance is managed, vision and purpose and how well and the autonomy people have to leaders in the organisation inspire make decisions. employees to perform.
Improving Organisation ambition
Constant adaptation, flexibility We invest in people to improve and continuous improvement performance. Therefore, the aims and feature heavily in the very best ambitions of the organisation, are at organisations. A philosophy of the heart of the Investors in People continuous improvement is at framework. Every indicator builds from the heart of the Investors in People an understanding of this ambition to Standard. Being a sustainable test the alignment of purpose across organisation means developing the employees and the extent to which capabilities, resources and plans practices are driving positive results. for tomorrow. It means fostering At the highest level of performance innovation to constantly find every practice will drive sustainable new ways to achieve the ambition results for the organisation. of the organisation.
Page 27 of 197 6
The performance model
Constantly moving. Constantly Understanding the stages improving. Constantly keeping ahead. The performance model is built upon four unique progression stages that reflect the key transitions an organisation passes Every indicator builds against a simple through as principles and practices mature.2 The stages are scale to understand the effectiveness not linked to the size or complexity of an organisation. A large complex organisation may only operate at ‘Developed’ level. of people management approaches. Equally, a small innovative organisation may have practices at ‘High Performing’, regardless of relative simplicity of Organisations are measured using a four stage performance operations. Rather, the stages identify the principles and model that ranges from ’Developed’ to ‘High Performing’ outcomes that must be in place, to achieve sustainable across all nine indicators. This unique model allows for direct performance through people. For this reason, the indicators comparison year on year and across sectors and industries. are best thought of as scales, from ‘Developed’ to ‘High Performing’ at the highest. Each level, from ‘Developed’ to ‘High Performing’, clearly describes how successfully practices are embedded and aligned through the organisation.
The Investors in People performance model
Stage 1 – Developed The appropriate principles and practices are in place and communicated. People and leaders know what is expected of them.
Stage 2 – Established People and leaders are actively engaged in ensuring the appropriateness and consistency of the principles and practices.
Stage 3 – Advanced People and leaders actively drive positive outcomes, taking ownership of the principles and practices.
Stage 4 – High Performing The principles and practices are fully integrated with other business practices. People and leaders take accountability for delivering consistently positive results, always with an eye on improvement and the future.
2 The Investors in People performance model was informed by the extensive work and research around the Capability Maturity Model (CMM) developed by PageCarnegie Mellon28 of 197 University and the subsequent People CMM developed as a result (P-CMM). 7
Achieving accreditation
Achieving Investors in People Stage One accreditation is an outstanding Discovery Exploring the free online self-assessment achievement. It requires genuine and resources. commitment from leaders, passionate Generate your own self-assessment report online at www.investorsinpeople.com. When you’re employees and everyone focused on ready, start working with a practitioner to outline the ambitions of the organisation. your ambition and purpose as an organisation. This will guide every step of the assessment journey.
To employees, accreditation signals a high performing culture and a commitment to their development and Stage Two success. To customers it signals quality products or Online Assessment services. To stakeholders it signals a leadership team Understanding employee’s views is at the to trust. heart of our assessment. We ask your employees a set of 40 online questions To achieve accreditation, an organisation must be assessed to quickly collect data and test alignment against against the Standard by a licensed practitioner, against the the Standard. We gather data to ensure every global policies and requirements set out by Investors in assessment is robust, accurate and delivers tangible People. Practitioners are experts in their field. They bring insight for the management team. experience, knowledge and networks to ensure that every assessment is a journey to excellence. Stage Three Assessment is conducted simply and efficiently using Employee interviews and observation a mixture of online tools, interviews and leadership Going deeper into key themes emerging from discussions. Every assessment is conducted against all the online assessment through face to face criteria, so any award level can be achieved, from every meetings and observations. assessment undertaken. It’s an efficient but robust The interviews are about delving further into process that delivers an accurate picture of performance: strengths and opportunities for improvement.3
Stage Four Accreditation report Understanding your award level and benchmark performance. Now could be the time to celebrate. Whatever the outcome, you’ll be able to benchmark your performance against your previous assessments or industry competitors, by exploring the data revealed in your assessment report.
3 The number of interviews undertaken varies based on the response rate to the online assessment. Your practitioner will be able to advise based on internationalPage 29policies. of 197 8
Award levels
To meet the minimum level Using the free online self-assessment is a simple for accreditation organisations way to see how your organisation compares before progressing to full assessment. are required to meet all nine Additional levels of accreditation indicate higher performance indicators at performance in people management. Benchmarked against global industry practice, the following criteria
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Find your benchmark
Only by looking externally, Using data gathered through the assessment, organisations and bringing in latest approaches, can develop a continuous improvement culture, by focusing on performance gains in leadership, motivation, culture and will every team become the employee alignment. best they can be. Every Investors With 27 scales for comparison the performance model allows in People assessment is for detailed analysis against each theme within the Standard. an opportunity to measure Visit www.investorsinpeople.com to find out more. and benchmark performance against others.
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Leading and inspiring people Leaders make the organisation’s objectives clear. They inspire and motivate people 1to deliver against these objectives and are trusted by people in the organisation. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Creating Leaders provide clarity There is clear and regular Leaders ensure that there is Leaders are active transparency around the organisation’s two way communication a consistent level of trust at role models, leading and trust purpose, vision and between leaders and all levels of the organisation by example and trusted by objectives people at all levels people in the organisation
Motivating People understand Line managers support Leaders are passionate Leaders motivate people to deliver the organisation's objectives people to deliver the about delivering the and inspire people to the organisation’s organisation's objectives organisation’s objectives achieve results above and objectives and motivating people to beyond what is expected deliver against them of them
Developing Line managers know what People know what People have confidence in Future leadership leadership is expected of them to lead, to expect from their line the leadership and manage- capabilities are defined in capability manage and develop their manager and provide ment capabilities within the line with the organisation’s people effectively feedback on how they are organisation values and leaders meet managed and developed these challenges
Living the organisation’s values and behaviours People and leaders act in line with the organisation’s values at all times. 2 They have the courage and support to challenge inconsistent behaviours. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Operating in line Leaders clearly People are led, managed Leaders consciously The organisation’s with the values communicate the and developed in line with consider and act in values are at the heart organisation’s core the organisation’s values line with the organisation’s of everything it does. values and how they should values when making They shape the way it be applied decisions operates at every level
Adopting the People know and People are personally People do the right thing People make decisions values understand what the motivated to behave in in accordance with the based on values rather organisation’s values are line with the organisation’s values, not necessarily than self interest values the easiest or most convenient thing
Living the values People understand how People are encouraged Leaders create a culture People feel comfortable to behave in line with the to demonstrate the of openness and trust challenging behaviours organisation’s values organisation’s values in the where people consistently that are not in line with the way they behave behave in line with the organisation’s values and organisation’s values people are held to account
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Empowering and involving people There is a culture of trust and ownership in the organisation where 3 people feel empowered to make decisions and act on them. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Empowering People have access to the People feel empowered to People are encouraged to People use their initiative people knowledge and information identify ways to improve take the lead and have the to lead and take ownership they need to do their job how they do their job opportunity to develop over delivering the well their leadership skills organisation’s objectives
Participating and People or their People are involved in People consistently Participation, collaboration collaborating representatives are decisions that have an participate in decisions and teamwork are at the consulted about impact on them and feel and feel their contribution heart of the organisation’s decisions which have their contribution makes a makes a difference approach to decision- an impact on them difference making
Making decisions Leaders trust and support Leaders involve people Leaders are open and People are empowered to people to make decisions when establishing their transparent about sharing challenge the status quo to in line with their level of level of decision-making, in information which enables improve the organisation’s responsibility line with their role people to make and act on performance decisions themselves
Managing performance Objectives within the organisation are fully aligned, 4 performance is measured and feedback is used. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Setting objectives People know what is Leaders involve people Stretching individual and People take the lead in expected of them and in setting clear and team objectives are aligned to setting stretching objectives understand how their achievable objectives. the organisation’s objectives that support and respond to individual objectives People are regularly and performance measures. the organisation’s goals and fit the organisation’s reviewed against these People take responsibility plans for change objectives objectives for monitoring their own performance
Encouraging high Line managers invest Line managers have Line managers are highly People are expected and performance time in managing open and honest effective and consistent actively supported to strive performance and ensure conversations with at supporting high for high performance at all people understand the people about their performance and addressing times performance process performance underperformance through effective, constructive and open dialogue
Measuring People’s performance People’s behaviours are Performance data and Giving and seeking timely and assessing is regularly measured assessed against the evidence of behaviours feedback on an informal basis, performance and assessed against organisation’s values are captured and used engaging in performance objectives. People effectively to improve the discussions and coaching are receive feedback on performance of people and a core part of the day-to-day their performance the organisation running of the organisation
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Recognising and rewarding high performance Recognition and reward is clear and appropriate, creating a culture 5 of appreciation where people are motivated to perform at their best. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Designing The way the organisation Leaders continually review The approach taken to People are involved an approach to recognises and rewards how the organisation recognising and rewarding in designing the recognition and people supports its recognises and rewards people is flexible and organisation’s approach reward objectives its people tailored to meet individual to recognising and motivations rewarding people
Adopting a culture The organisation has an Individual and team People feel confident There is a culture of of recognition appropriate and clear achievements are rewarded that individual and appreciation where approach to recognition and celebrated with team achievements are people feel valued and and reward financial or non-financial consistently recognised are recognised for their benefits and encouraged across the efforts and performance organisation
Recognising and People know how they are People are People are motivated High performing rewarding people recognised and rewarded recognised for their to perform at their best as people and teams receive and the criteria have been behaviour as well as their a result of the approach to greater financial or clearly communicated performance on a formal recognition and reward non-financial recognition and informal basis and rewards
Structuring work The organisation is structured to deliver the organisation’s ambition. 6 Roles are designed to deliver organisational objectives and create interesting work for people, while encouraging collaborative ways of working.
Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Designing roles Roles are designed to Roles are designed to Roles are designed to help Roles are designed in order deliver organisational create interesting work people develop the skills to meet the changing goals by creating clear for people, with skills and and capabilities needed for needs of communities, accountability and avoiding capabilities for each role progression markets, organisational duplication of effort across clearly identified strategy and employees teams
Creating autonomy Each role is designed with Policies and practices Policies and practices are Policies and practices in roles clear decision-making across the organisation aligned to help people take are regularly reviewed authority support people to make individual ownership and and improved to speed the decisions required in act quickly and effectively up decision-making their specific roles and increase individual ownership
Enabling It is clear how roles enable People are Open communication The organisation’s structure collaborative people to work together to encouraged to work across and flexible work practices encourages people to working achieve the organisation’s the organisation to share make collaboration across create formal and informal objectives information and expertise the organisation easy and networks to maximise effective collaboration
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Building capability People’s capabilities are actively managed and developed. This allows people to realise their full 7 potential and ensures that the organisation has the right people at the right time, for the right roles. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Understanding Line managers have Learning and development The organisation is flexible People take ownership people’s potential development conversations opportunities are in the way it develops of their own learning and with people to identify provided in line with the people, using innovative development to effectively their potential and ensure organisation’s objectives solutions that meet support the organisation’s learning and development and enable people to learning and development objectives needs are met achieve their full potential needs
Supporting learning Development advice People have the Investment in learning and Continuous learning is and development and guidance is well opportunity and support development is evaluated part of the culture of the communicated throughout to put new skills and to understand the impact organisation the organisation knowledge into practice on people’s progression opportunities
Deploying the Recruitment and selection Resource planning is The organisation uses Leaders continually look to right people at the is fair, efficient and actively managed to succession planning to the future to identify and right time effective and fits with the support the organisation’s ensure critical roles are filled plan the capabilities people organisation’s objectives objectives and people can progress will need to deliver success
Delivering continuous improvement There is a focus on continuous improvement. People use internal and external sources to 8 come up with new ideas and approaches, supported by a culture that encourages innovation. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Improving The investment in people The organisation uses Leaders look beyond People take through internal is evaluated and the information from internal the current business responsibility for and external results are used to improve and external sources to environment to learn from continuous improvement. sources performance improve how it manages the outside world and They look to the world and develops its people bring in knowledge to around them for new ideas improve the organisation’s and innovation then deliver performance change in line with this
Creating a People are aware of People are encouraged to People are supported The organisation nurtures culture of how they can contribute try new approaches and by their leaders to take innovation and acts quickly continuous to improving their learn from their efforts, reasonable risks when in response to new ideas improvement performance and the ways mistakes and successes trying new and innovative and opportunities of working within the approaches organisation
Encouraging People are encouraged to People work together People are passionate New ideas deliver innovation come up with new ideas to generate new ideas about innovation and positive outcomes for volunteer new ideas the organisation
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Creating sustainable success The organisation has a focus on the future and is responsive to change. Leaders have a 9 clear understanding of the external environment and the impact this has on the organisation. Themes Developed Established Advanced High Performing In place and understood Engaging and activating Creating positive outcomes Embedded and always Improving
Focusing on the Leaders communicate People are actively People believe the Leaders are aware of future future priorities engaged in both organisation is a great place future challenges for short-term and to work and are committed the organisation and long-term planning to its future success consciously develop their own capabilities, and partner with stakeholders to respond to these
Embracing change Where change happens it is Benefits of change are People that demonstrate Change is viewed as communicated in a timely measured and captured. optimism and drive are ‘business as usual’, and transparent way across Successes and failures are selected to champion where mistakes are the organisation openly communicated change and support others accepted and valued, as to understand and engage an opportunity for learning with it and improvement
Understanding the Leaders have a clear The workforce is People understand the The organisation has a external context understanding of who diverse and reflects the relationship between positive impact on the the stakeholders are in communities and markets the organisation and the communities and markets the communities and the organisation serves wider community it serves the markets the organisation serves
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Glossary of key words
Accountability: When people have responsibility to make Communities: Groups of people who live in the same place decisions and take actions for areas of work within their remit. or share common characteristics.
Accredited: When you have been successfully assessed and Context: The background, framework, setting, or situation achieved the requirements of the Investors in People Standard, surrounding an event or situation. you are accredited as an Investors in People organisation. Continuous improvement: A type of change that is focused Alignment: A state of agreement or cooperation between on increasing the effectiveness and/or efficiency of an persons towards a common goal or objective. In the context organisation to fulfil its policy and objectives. of the Standard, alignment refers to the extent to which Contribution: The role played by a person in bringing about management practices are driving performance outcomes; a result or helping something to advance. The extent to which people are aligned with the wider ambitions of the organisation. Consistent: Behaviour and actions which are carried out in the same way over time, in order to be fair or accurate. Appreciation: Recognising and understanding the worth, quality and importance of your employees’ contributions. Constructive feedback: Information provided to an individual regarding their performance. The aim is to increase their Autonomy: A degree of freedom and discretion given understanding both of their strengths and of the areas where to an employee over his or her job. they could improve. Authority: The formal power given to people which includes Constructive relationships: Positive working relationships a right to command a situation, commit resources, and give between employees and representative groups. instruction to other stakeholders. It is always accompanied by an equal responsibility for one’s actions or a failure to act. Consult: What managers do when they discuss matters of mutual concern with representative groups, so that they Behaviour: The way in which people respond to their can take account of the views of employees when making surrounding environment. decisions that may affect their interests. Benchmarking: Comparing your organisation’s people Corporate Social Responsibility: An organisation’s duty to management performance with that of others. act as a responsible employer and member of the community. ‘Business as usual’: The normal conduct of business regardless This may include involvement in local community projects. of current circumstances, despite difficulties or disturbances. Culture: The organisation’s beliefs, behaviours and values Business plan: A plan that sets out your organisation’s that influence the way people work. objectives. It may also be known as an organisational Data: Statistics and facts collected together for reference plan, corporate plan, strategic plan, development plan or and analysis. improvement plan. Decisions: Conclusions or resolutions reached after Capabilities: The knowledge, skills and behaviours that your consideration of the available information. organisation’s people need to achieve your ambition. Dialogue: A discussion between two or more people or Celebrate: The chance for your people to come together and groups, often towards the exploration of a particular subject share in your success as a business. or resolution of a problem. Coaching: A formal or informal process that aims to improve Discussion: A conversation or debate about a certain topic. the performance, learning and development of an individual Typically in order to reach a decision or exchange ideas. through effective questioning and feedback. It is about helping people to think issues through for themselves, rather than about Diversity: The cultural, social, gender or other differences telling or instructing someone. between people, with reference to an organisational culture that encourages and values these differences. In addition, Collaboration: Cooperative relationships between employees, a culture of diversity is about recognising, valuing and taking working towards a common goal. account of different skills and life experiences. Page 37 of 197 16
Diverse workforce: A workforce made up of people from Higher accreditation: Additional levels of achievement different cultural backgrounds, with different personal following successful assessment against the IIP Standard characteristics related to race, gender, disability, sexuality, indicating higher performance in people management religion, belief, age and marital status. practice. Benchmarked against industry best practice, the following criteria must be met to achieve higher accreditation: Effective: Successful in producing a desired or intended outcome. • Investors in People Silver: All nine indicators at ‘Developed’ and seven of the nine indicators at ‘Established’ level Embedded: Deeply implanted ideas or beliefs become • I nvestors in People Gold: All nine indicators at ingrained or embedded in the holder’s mind. ‘Developed’ and ‘Established’ and seven of the Empowered: Having the authority or power to make nine indicators at ‘Advanced’ level. and implement decisions. • I nvestors in People Platinum: All nine indicators at Equality: Recognising that everyone is treated with dignity ‘Developed’, ‘Established’ and ‘Advanced’ and seven and respect, regardless of race, gender, disability, sexuality, of the nine indicators at ‘High Performing’ level. religion or belief, age, marital status or other personal Impact: The results achieved from an action and the effect characteristics. In terms of learning and development, equality it has had on performance. means recognising that different groups have different needs, and ensuring that they have appropriate and fair access to High performance: Consistently high levels of collaboration appropriate opportunities. and innovation that produce superior results.
Evaluation: The process of reviewing the results of something, Ideas: A thought or collection of thoughts. Ideas often form such as learning and development activity, to identify its impact during brainstorming sessions or through discussions. on performance and to assess whether it has achieved its intended objectives. Impact: A measure of the consequences of one action or influence upon another. Feedback: Information about reactions to a person’s performance of a task used as a basis for improvement. Improve: To enhance or make something better in terms of quality, value or usefulness. Framework: The Investors in People framework underpins the world recognised Investors in People Standard. Based on Indicators: The nine ‘indicators’ of people management best 25 years of leading practice, the latest IIP framework (sixth practice that make up the Investors in People framework. generation) reflects the latest workplace trends to help every Organisations that perform at, or above, the Standard in these person contribute effectively to the organisation’s ambition. nine areas are considered to be of the performance required to achieve the Investors in People accreditation. Goals: Observable and measurable end results, having one or more objectives to be achieved within a defined time frame. Initiative: Taking action or decisions without direct outside influence. Guiding evidence: The evidence highlighted underneath each of the nine Investors in People indicators. This evidence Innovation: New ideas, more effective devices or processes. helps to focus assessments on the required evidence to meet Innovation can be viewed as the application of better solutions the varied performance levels (see performance model for that meet new requirements or existing needs. more information). Inspirational leadership: A quality attributed to leaders who are able to create a culture of motivation and commitment. Inspiring leaders aim to create an environment of trust in which people can be creative and motivated to fulfil their potential. They tend to: have passion; have a sense of purpose; be honest and trustworthy; encourage others to share their vision; inspire others to achieve their potential.
Involve: To cause a person or group to participate in a situation or experience.
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Key performance indicators (KPIs): Measures what an Optimism: Hope and confidence about the future or the organisation uses to monitor, understand, predict and improve successful outcome of something. its performance. Depending on the organisation’s purpose and Outcomes: The result or consequence of actions carried out. objectives, these may relate to people, finance, customers and quality. Ownership: People who are prepared to demonstrate ownership play a greater role in the success of the organisation, Knowledge: Facts, information, and skills acquired by a person and are willing to own a decision or action and be accountable through experience or education. for its outcome. Leaders: A leader is anyone with responsibility for managing, Participation: Joint consultation in decision making, directing, motivating or supervising others within the goal setting and teamwork. organisation. This would include senior managers, line managers, team leaders, supervisors and anyone else with a People: Any individual who helps the organisation to achieve similar role. They are influential members within an organisation its objectives. The scope of this would embrace all roles in an to whom others look for advice, opinions, and direction. organisation including managers and top managers, full-time, part-time and voluntary employees, people on renewable Learning and development: Any activity that develops short-term contracts, and regular, casual employees, as well skills, knowledge or attitude. Activities may range from formal as people who are members of representative groups training courses run internally or externally to informal on-the- (people that act as official representatives, rather than ordinary job training or coaching. members.) Learning styles: The different ways in which people are Performance: An action, task, or operation, seen in terms best able to learn. Can include (for example) solitary or group of how successfully it was performed scenarios, discussion, written information, pictures, hands-on learning and seminars. Performance Model: The four stages of performance that underpin each of the nine indicators within the Investors Line manager: A person with direct managerial responsibility in People framework. The performance levels allow for for a particular employee. measurement, benchmarking and progression towards higher Markets: An actual or nominal place where forces of demand levels of accreditation. and supply operate and where buyers and sellers interact to The Investors in People performance model includes the trade goods or services. following stages: Stage 1: Developed, Stage 2: Established, Stage Measured: Judgement or assessment of something by 3: Advanced, Stage 4: High Performing comparison with a standard. Personal development: Any activity that develops an Mentoring: The advice and guidance offered by a more individual’s skills, knowledge or attitude, which may or may not experienced person to develop an individual’s potential. be related to the work they carry out in the organisation. Mentoring tends to focus on long-term career goals rather Practitioners: Practitioners are licensed Investors in People than immediate performance issues, and may be carried out assessors and advisers with extensive management experience by people from within the organisation or outside it, but not across numerous sectors. Working with a licensed Investors in usually by an individual’s manager. People practitioner ensures that you, as a client, are receiving Motivating: Using incentives or persuasion to influence the the most up-to-date information on the Investors in People way people think or behave. Standard and are undergoing a compliant assessment against the Investors in People Standard. Objectives: A specific result that a person or business aims to achieve within a time frame and with available resources. Priorities: The ordering of a number of different jobs or tasks, depending on their importance or urgency. Organisation: A social unit of people that is structured and managed to meet a need or to pursue collective goals. Progression: Changing or developing towards an improved situation or state. Openness: The capacity to entertain different and non- customary ideas and to change one’s behaviour accordingly Purpose: The reason for which something is done or created or for which something exists. Opportunity: A set of circumstances which make it possible to do or achieve something. Page 39 of 197 18
Quantify: To explain in measurable terms – for example, Succession planning: The process of identifying suitable quantifying the results achieved through learning and people and preparing them to replace important executives development activities. in an organisation when these executives leave or retire.
Recognition and reward strategy: A strategy which provides Sustainable: An organisation that maintains its own viability both reward in the form of formal compensation and responds to external changes. and benefit arrangements (financial and non-financial); Stakeholders: These are the people who have an interest in and recognition in its arrangements for acknowledging the organisation, its activities and its achievements. They may and appreciating people’s specific achievements. include customers, partners, employees, shareholders, owners, Recruitment and selection: Recruiting and selecting people the Government and regulators. from both inside and outside your organisation. Strategy: The plan an organisation has for how it aims to Representative groups: Groups such as trade unions, other achieve its vision. workplace representatives, employee associations, works Team: A small or large group of people who come together councils and partnership councils. to work towards a shared goal – for example, a project team, Resource planning: The process by which an organisation a branch or a department. In small organisations, a team may makes sure that it has the right managers and people to be the whole organisation. Where an evidence requirement achieve its objectives. refers to a team, this will mean the whole organisation if there is no smaller team/are no smaller teams. Responsibility: The opportunity or ability to act independently and make decisions without authorisation Transparent: Transparent business and financial activities are done in an open way without secrets, so that people Review: Carefully examining a situation to find out whether can trust that they are fair and honest. changes or improvements need to be made. Trust: Firm belief in the reliability, truth, ability, or strength Risk: An uncertain situation which can involve exposure of someone or something to danger or loss. Underperformance: To perform less well than expected. Roles: The position or purpose that someone or something has in a situation, organisation, society, or relationship. Values: The principles that determine how people work within an organisation. Role models: People looked to by others as examples to be imitated. Vision: What and where an organisation wants to be in the future, and how it wants to be described by its people Self-interest: A situation in which you consider the advantage and customers. to yourself when making decisions, and decide to do what is best for you. Volunteer: A person who freely offers to take part in an enterprise or undertake a task. Self-review: An evaluation of an organisation’s strategy or practice by using formal or structured methods. Ways of working: The processes, values and behaviours embedded within an organisation which inform the way Social responsibility: An organisation’s duty to act as a its employees operate. responsible employer and member of the community. This may include developing people through local community projects.
Status quo: The existing state of affairs.
Structure: The way in which the parts of a system are arranged or organised, or the system itself.
Strive: To make great efforts to achieve or obtain something.
Success: The accomplishment of an aim or purpose.
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Acknowledgements
Investors in People would like to thank the following individuals for their collaboration and support in developing the sixth generation of the Investors in People Standard.
Will Butler-Adams Linda Urquhart Ben Reynolds Managing Director, Brompton Bicycle Ltd Chairman, Morton Fraser LLP Director, Shilling
Professor Wendy Hirsh Linda Holbeche Dr Anthony Hesketh Researcher and Consultant, Institute Co-Director, The Holbeche Partnership Senior Lecturer, Lancaster University for Employment Studies Management School Lesley Uren Warren Richmond Member of PA’s Management Group, Dr Andre de Waal CEO, Retail Marketing Group Limited PA Consulting Associate Professor, Maastricht University School of Management Professor Veronica Hope Hailey Katherine Bassey Dean, School of Management Head of Staff Engagement and University of Bath Innovation, Organisation and Resource Development, UNISON Valerie Todd Director of Talent and Resources, Crossrail Kate Dee Global Organisation & Leadership Tarra Simmons Development Director, Time Warner Deputy Group General Manager, Mid Counties Co-op Justin Harris Performance & Business Manager, Professor Stephen Bevan Lafarge Tarmac Director, Centre for Workforce Effectiveness, The Work Foundation Jonathan Simnett Managing Director, Sean Taggart Big Stick Communications Owner and CEO, The Albatross Group Grahame Smith Scott Johnson General Secretary, STUC Chief Executive, Chas Smith Group Ltd Florence Agyei Peter Cheese Head of HR, Chelmsford City Council CEO, CIPD Dave Prentis Nita Clarke General Secretary, UNISON Co-Chair, Engage for Success Carol Kavanagh Louise Goodwin Group HRD, Travis Perkins Director of Corporate Services, Chelmsford City Council Ben Willmott Head of Public Policy, CIPD
Page 41 of 197 Get in touch
Call 0300 303 3033 today 2017 Follow us on twitter: @IIP
Go online: www.investorsinpeople.com
ISBN: 9781900567534 1.1 02/17
The Investors in People brand, trademarks and assets are owned by Investors in People Community Interest Company (Company registered in England and Wales No: 10420361).
©2017 The Investors in People name, designs, mark and logo are protected by copyright and international trademark law. For more information or to report a possible infringement please contact [email protected]. No part of this publicationPage should42 ofbe reproduced,197 sold or copied without the permission of the copyright owner. Images and visualisations are illustrative and do not necessarily represent outputs and products. FAIR WORK FRAMEWORK 2016 AA Appendix 2
SECTION 1 THE FAIR WORK FRAMEWORK
6 Page 43 of 197 FAIR WORK FRAMEWORK 2016
THE VISION AND FRAMEWORK FOR FAIR WORK IN SCOTLAND
THE VISION By 2025, people in Scotland will have a world-leading working life where fair work drives success, wellbeing and prosperity for individuals, businesses, organisations and for society.
DEFINING FAIR WORK Fair work is work that offerseffective voice, opportunity, security, fulfilment and respect; that balances the rights and responsibilities of employers and workers and that can generate benefits for individuals, organisations and society.
SECURITY RESPECT
FAIR WORK OPPORTUNITY EFFECTIVE VOICE
FULFILMENT
7 Page 44 of 197 FAIR WORK FRAMEWORK 2016
UNDERSTANDING FAIR WORK AND ITS POTENTIAL opportunity, security, fulfilment and respect. These dimensions cover the scope of workers to ‘have a say’ Many people agree that work should be fair, and that fair and to influence and change practices, how people can work should be available to everyone no matter who they access and progress in work, the employment conditions are. It isn’t easy, however, to define fairness, and defining they experience, the work that people do and how people fairness subjectively – as something that is different for are treated at work. everyone – doesn’t help to shape good practice or to inform policy-making. These five dimensions are important for two reasons: We have drawn on international debates and research National and international research identifies to define fairness in a way that is relevant for everyone good practice within each of the dimensions in work, a way that can be applied across different jobs, that can create positive outcomes for employers, industries and sectors and that can be workers, employers and for society. measured and improved on. We have drawn heavily on academic research particularly on job quality2, on trade Taken together, these dimensions have significant union impact, on workplaceii relationships and practices synergies. The dimensions can reinforce each that support job quality and on the importance of other, creating a virtuous circle of practices, co-operation. We have also identified international behaviours, attitudes and outcomes. examples where high productivity, more inclusive labour 3 markets and greater equality co-exist, often supported The model below , developed by researchers at the by strong embedded partnership arrangements. Scottish Centre for Employment Research at the University of Strathclyde, captures how fair work is a Based on the evidence of ‘what works’ and through crucial component in delivering high performing and our discussions with stakeholders, we have defined innovative workplaces where workers and employers fair work through five dimensions: effective voice, share the benefits of productive and innovative work, creating the potential for transformation towards inclusive economic growth for society as a whole.
FAIR WORK POLICY LEVERS PRACTICES
MOTIVATION
ABILITY EMPLOYEE BEHAVIOURS EMPLOYEE ATTITUDES STAKEHOLDERS HIGH EMPLOYEE WELLBEING WORKPLACE PERFORMANCE EMPLOYEE PROSPERITY INNOVATION & INVOLVEMENT OPPORTUNITY PRACTICES WORK PRACTICES
WORKPLACE SOCIETAL OUTCOMES OUTCOMES PRODUCTIVITY HEALTH & WELLBEING PERFORMANCE INCLUSIVE GROWTH GROWTH INNOVATION PROSPERITY
Fair, innovative & transformative work The FITwork Project
Scottish Centre for Employment Research
8 ii Throughout this report we use the term ‘workplace’ to include both a discrete place of work (an office or a factory, for example)and any location where people carry out work (for example, delivering care services in someone’sPage 45 home). of 197 FAIR WORK FRAMEWORK 2016
The FITwork model summarises how fair work is a crucial There is much overlap between the dimensions, ingredient in supporting the types of worker behaviours but we have focused on them discretely in order to and attitudes that can create positive outcomes for provide a lens through which employers can evaluate individuals, employers and society. High performance their own approach and practices, workers and their work practices aim to generate the best business representatives can evaluate their own experience outcomes from worker talents and abilities, while of work, and both can work together to identify areas workplace innovation practices create the space in which where fairness might be enhanced. We also note some worker contribution can make a positive difference. Fair cross-cutting themes that are relevant across all of the work overlaps with both types of practice but addresses dimensions of fair work. the important question of why workers should and do invest more of themselves in work. By creating Section 1 concludes with our key recommendation and the conditions in which workers’ skills and abilities are our thoughts on who might help us deliver fair work, supported and developed, by promoting opportunities how they might do so and what may be the key levers of for skills and abilities to be deployed and by creating the change. motivation for workers to take up those opportunities, Section 1 can be read on its own as our Fair Work fair work as outlined here facilitates the discretionary Framework. Section 2 provides an account of the efforts of workers that underpin high productivity, background and policy context of the Fair Work Agenda performance and innovation – all of which can contribute in Scotland. It brings together a wide range of evidence to healthier, wealthier and more inclusive societies.4 that has informed the development of the Framework Fair work is consistent with business and economic and gives a more expansive account of what we have success and the Fair Work Agenda represents learned in our consultation over the last year. In Section 2 an investment in Scotland’s people, businesses, we offer more detailed examples of fair work in practice. organisations, economic prosperity and social wellbeing. These examples do not imply perfection; rather, they Fair work is not simply about a different distribution of offer practical insight into how key elements of fairness the rewards from work – although this is important. It is can be achieved. about improving business and organisational outcomes so that there are more rewards to be shared. We know that poor quality work is more common in countries with lower levels of GDP per capita.5 Trade unions have a crucial role to play both in distributing the ‘returns’ from work and in contributing to making workplaces more effective and prosperous for all. In the pages that follow we outline the five dimensions of fair work that comprise our Framework. We outline what each dimension means, and how delivering fairness in each dimension can benefit employers, workers and society. We give a brief summary of what people have told us over the last year about each dimension. We then offer some ideas as to how fairness in each dimension might be achieved. These ideas are not exhaustive but illustrative of some of the practical actions that might be taken to improve fairness at work.
9 Page 46 of 197 AGENDA ITEM 5
North Lanarkshire Council Report Finance and Resources
☒approval ☐noting Ref AA/PG Date 27/11/19
Sexual Entertainment Venues Licensing
From Archie Aitken, Head of Legal and Democratic Solutions Email [email protected] Telephone 01698 302295
Executive Summary
The purpose of this report is to inform Committee of the licensing provisions for Sexual Entertainment Venues (“SEV”) and to seek Committee approval in the carrying out of a public consultation on the licensing of Sexual Entertainment Venues in North Lanarkshire.
Recommendations
Members are asked to:-
(1) Note the contents of this Report; (2) Approve a public consultation in order to gather evidence on (a) whether SEVs in North Lanarkshire should be licensed and, if so, what the appropriate number of such venues should be; and (b) if it is decided to licence such venues, what information should be included in a SEV licensing policy statement.
The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (14) Ensure the highest standards of public protection
1. Background
1.1 The key aims of civic licensing are the preservation of public safety and order and the prevention of crime. The Air Weapons and Licensing (Scotland) Act 2015 amended the Civic Government (Scotland) Act 1982 to the extent that local authorities are able to licence SEV if they wish to do so. The legislation permits, but does not require, the Council to introduce a licensing regime for SEVs. Such venues were not previously subject to a specific licensing regime, discretionary or otherwise, however, the provisions of the Licensing (Scotland) Act 2005 applies to the extent that venues require a Premises Licence if alcohol is sold.
Page 47 of 197 1.2 The scope and impact of the adult entertainment regime has been subject to Scottish Government scrutiny in recent years. A Working Group convened in 2005 made a number of recommendations aimed at improving standards in the industry and safeguarding the interests of performers and customers. The recommendations stopped short of introducing direct local authority regulation over SEVs, on the basis that local licensing boards could regulate adult entertainment by way of the existing alcohol licensing regime. In 2011, a Court of Session case held that the 2005 Act was limited to the regulation of the sale of alcohol and that local authorities could not seek to use the alcohol licensing regime to regulate matters beyond the scope of that regime. A Scottish Government consultation entitled ’Consultation on Regulation of Sexual Entertainment Venues’ was issued in July 2013. The consultation invited view on the establishment of a licensing regime for sexual entertainment venues.
1.3. The Council’s response to the consultation was supportive of a specific licensing regime for sexual entertainment and it was recognised that the licensing of SEVs involves specific considerations that are only applicable to those establishments. The Council felt that having that having a discretionary regime solely for the purpose of licensing SEVs would ensure that the activity is properly and effectively regulated. This led to the introduction of a specific, discretionary licensing regime for SEVs. The regime allows local authorities to consider local circumstances in setting the number of permitted SEVs with their area and enables appropriate control and regulation to be exercised in respect of these venues. Such a regime requires to be considered in the context of the promotion of gender equality, and the regime seeks to balance the freedom of individuals to engage in legal employment with the right of local authorities to exercise appropriate control and regulation of adult entertainment venues in their area.
1.4. The premises that can be regulated under the new provisions are those in which sexual entertainment is provided before a live audience for, or with a view to, the financial gain of the organiser. The statutory definition of “sexual entertainment” includes “any live performance and any live display of nudity provided solely or principally for the purpose of sexually stimulating any member of the audience”. Premises where this entertainment occurs on no more than four dates within a twelve month period do not require a SEV licence. The statutory definition covers premises that offer such entertainment on a restricted basis as well as premises that are dedicated venues providing sexual entertainment as one of their primary functions.
1.5 Local authorities who choose to license SEVs require to publish a policy statement developed in consultation with relevant interest groups. It must also pass a resolution for SEV licensing to take effect in its area. In considering whether to pass a resolution an authority should consider whether they wish to control SEVs, even if there is no such premises operating in their area. If there is no resolution in place, then no licence is required to operate an SEV and SEVs would operate without direct regulation from the local authority. New SEVs could also come into operation and sexual entertainment in these venues would remain largely unregulated. If a resolution is passed, existing and new SEV would require a license and would therefore be directly regulated by the local authority. Where a licence were granted, licence conditions would help reduce the risk of criminality such as human trafficking and prostitution and help safeguard the wellbeing of performers, customers and the wider community.
Page 48 of 197
2. Report
2.1 There are currently no known premises within the North Lanarkshire area providing sexual entertainment in terms of the statutory definition. If an SEV licensing regime is introduced then a resolution would require to be made. The effect of that resolution would be that premises wishing to provide such sexual entertainment within their premises would require to obtain an SEV licence from the Council. If such a resolution were to be passed, the date on which the licensing scheme comes into operation must not be before the expiry of a period of one year beginning with the day the resolution is passed.
2.2 If, following the public consultation, Committee was minded to licence SEVs in the North Lanarkshire area, the Council will require to publish a detailed policy statement at least 28 days before the new licensing system comes into operation. The policy statement would require to consider, in particular, the impact of the SEV licensing regime in the area, having regard to how it will affect the licensing objectives of (a) preventing public nuisance, crime and disorder; (b) securing public safety; (c) protecting children and young people from harm, and (d) reducing violence against women.
2.3 The legislation permits local authorities to decide upon a numerical limit of zero SEV premises in their area, however, there would require to be an evidential basis for this. The Scottish Government has recently issued guidance to assist local authorities in deciding whether to licence such venues. This guidance will require to be taken into consideration when determining any policy or resolution. Given that there requires to be an evidential basis in relation to any SEV licensing regime, the proposed consultation will help inform the decision on whether to introduce such a regime in North Lanarkshire, and if so, the number of licences to be issued and what should be included in the policy statement. The guidance can be accessed here:- https://www.gov.scot/publications/guidance-provisions-licensing-sexual- entertainment-venues-changes-licensing-theatres/pages/1/
2.4 The proposed consultation will gather evidence on a range of issues detailed in the guidance including:- • the number of premises currently operating within the area, • the location of such premises and proximity to schools, places of worship, residential areas and organisations supporting victims of gender based violence, • the effect that such venues may have on the local community in terms of the licensing objectives, • whether there have been any incidents of sexual assaults, anti-social behaviour or prostitution reported in the area, • whether there have been any incidents of human trafficking or exploitation in the area.
The consultation would invite views from members of the community in addition to interested parties including elected members, community councils, Police Scotland, Scottish Fire and Rescue Service, NHS Lanarkshire, North Lanarkshire Adult and Child Protection Committees, organisations providing support to victims of Gender Based Violence and internal Council departments.
2.5 The proposed consultation would run for a period of 8 weeks to allow consultees an opportunity to respond. Responses to the consultation will assist Committee in deciding whether an SEV licensing regime should be introduced and, if so, the numbers of licences to be issued and matters to be addressed in a policy statement. If
Page 49 of 197 Committee were to introduce an SEV licensing regime, a draft policy statement would be put out to further consultation.
3. Equality and Diversity
3.1 Fairer Scotland Duty The Fairer Scotland Duty is not applicable.
3.2 Equality Impact Assessment While it is not considered necessary at this stage to carry out an Equality Impact Assessment, it should be noted that the Guidance, referred to above, contains, at paragraphs 17 to 27, an outline of the relationship between the Guidance and a number of national strategies relating to a range of rights and freedoms of individuals including “Equally Safe: Scotland’s strategy for preventing and eradicating violence against women and girls” and the “Trafficking and Exploitation Strategy”. Accordingly, these will require to be taken into account in determining any actions arising from the consultation process.
4. Implications
4.1 Financial Impact None at this stage. Should a resolution to licence SEVs be adopted, Committee will require to set a licence fee. 4.2 HR/Policy/Legislative Impact The consultation will provide an evidential basis for Committee to determine whether to introduce an SEV regime.
4.3 Environmental Impact There is no environmental impact.
4.4 Risk Impact None.
5. Measures of success
5.1 Improving economic opportunities and outcomes.
6. Supporting documents
No appendices
Head of Legal and Democratic Solutions
Page 50 of 197 AGENDA ITEM 6
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref Date 27/11/19
FOI Committee Report
From Archie Aitken, Head of Legal and Democratic Solutions Email [email protected] Telephone 01698 302295
Executive Summary
This report provides details of the number of Freedom of Information (FOI) and Environmental Information (EIR) requests received by the Council during 2018/19 and provides further comparative and ancillary information.
Recommendations
It is recommended that Committee note the report.
The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (20) Improve the involvement of communities in the decisions, and development of services and supports, that affect them
1. Background
1.1 The Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004, both of which came into force in January 2005, provide rights to the public to ask for and be given recorded information held by public authorities. Once a request is received, the Council has, in most cases, 20 working days to provide the information asked for, or explain why it cannot be provided. If the Council does not respond, or the requester is unhappy with the response, the requester can ask the Council for an internal review of the decision. If the requester is still unhappy following the internal review then they can appeal to the Scottish Information Commissioner. This report provides a breakdown of the requests, internal reviews and appeals to the Scottish Information Commissioner processed by the Council in 2018/2019.
Page 51 of 197 2. Report
2.1 In financial year 2018/19 the Council received 1652 requests for information. This consisted of 1404 FOI requests and 248 EIR requests.
2.2 The combined total of 1652 requests is a 7.7% increase on last year’s total of 1534 requests. This increase continues to reflect the trend of request numbers increasing each year. The increase of 7.7% is broadly similar to the 8% increase in requests received by public authorities across Scotland in 2018/19, as reported recently by the Scottish Information Commissioner. The EIR requests' total of 248 is an 8.3% increase on the 229 requests that were received in 2017/18.
2.3 As can be seen from the attached documents, most requests were recorded as being received from “public and other”. This represents requests received from individual members of the public with no identified affiliation to an organisation or group. The next largest categories were requests from the media (20%), businesses or commercial enterprises (17%), elected representatives (9%) and solicitors (8%). These totals represent a 2% increase from last year in the proportion of requests received from “public and other” and a 3% increase in the proportion of requests received from the media. The proportion of requests received from elected representatives, businesses or commercial enterprises, and solicitors has decreased compared to last year.
2.4 Requests for an internal review of the original decision were received for 30 cases in 2018/19. This is a slight increase from the 28 reviews received in 2017/18. The number of reviews represents 1.8% of the total requests received. This is broadly in line with the proportions received in previous years. For comparison, the Scottish Information Commissioner reports that the proportion of internal reviews received in 2018/19 by all Scottish Public Authorities compared to the total number of requests is 2.7%.
2.5 Of the 30 internal reviews, in 20 cases the original decision was upheld wholly or partially, 7 were overturned and received a new decision at review, and 3 reviews were undertaken due to there being no responses sent to the original request.
2.6 Following internal review, 3 cases were appealed to the Scottish Information Commissioner by requesters in 2018/19. In one of these cases the Commissioner found fully in favour of the Council and the other two appeals were withdrawn by the requesters during the process. 2.7 Of the 1652 requests received in 2018/19, 6 requests were withdrawn and 19 were closed due to not receiving the clarification required in order to progress the enquiry. Of the remaining 1627 requests that were fully progressed, 1598 requests (98.2%) were responded to within the statutory deadline. This compares with a compliance rate of 98.5% in 2017/18 and 97.8% in 2016/17. The 2018/19 compliance rate broken down by quarter is as follows:-
Quarter 1 – 97.5% Quarter 2 – 98.8% Quarter 3 – 98% Quarter 4 – 98.5%
Page 52 of 197 3. Equality and Diversity
3.1 Fairer Scotland Duty Not Applicable
3.2 Equality Impact Assessment Not Applicable
4. Implications
4.1 Financial Impact There are no financial impacts.
4.2 HR/Policy/Legislative Impact There are no HR/Policy/Legislative impacts.
4.3 Environmental Impact There are no environmental impacts.
4.4 Risk Impact There are no risk impacts.
5. Measures of success
5.1 None
6. Supporting documents
6.1 Appendix 1 - Total number of requests received under either the Freedom of Information (Scotland) Act 2002 or the Environmental Information (Scotland) Regulations 2004, broken down by month.
Appendix 2 – Details of cases submitted for internal review.
Appendix 3 – An indication of the category of applicant.
Head of Legal and Democratic Solutions
Page 53 of 197 Page 54 of 197 Page 55 of 197 FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 ENVIRONMENTAL INFORMATION (SCOTLAND) REGULATIONS 2004
Requests by type of Requester - 2018/2019
Media Solicitor Commercial Voluntary/ Elected Trade Academic/ Public Total (on /Private Campaign Representative Union Student & Other behalf Enterprise Organisation (MP, MSP, of MEP, client) Councillor)
April 25 4 23 5 11 2 2 53 125 May 12 11 15 8 9 3 2 49 109 June 19 11 26 13 20 2 2 39 132 July 25 17 30 10 6 3 2 61 154 August 19 17 28 6 7 3 2 51 133 September 33 16 20 8 10 5 1 45 138 October 52 8 20 9 17 3 2 59 170 November 35 6 15 12 23 4 6 42 143 Dec-18 20 11 12 6 8 2 1 31 91 Jan-19 42 11 47 2 15 2 2 74 195 February 23 9 28 8 9 2 2 44 125 March 29 16 13 6 12 3 3 55 137 Total 334 137 277 93 147 34 27 603 1652
Page 56 of 197 Requests by type of Requester - 2014/2015- 2017/2018
Media Solicitor Commercial Voluntary/ Elected Trade Academic Public Total (on /Private Campaign Representative Union I Student behalf Enterprise Organisation (MP, MSP, Other of MEP, client) Councillor)
2017/2018 260 131 268 86 192 36 25 536 1534
2016/2017 227 181 223 68 187 24 19 564 1493
2015/2016 217 193 192 54 168 14 19 488 1345
2014/2015 264 164 211 56 115 17 28 533 1388
Page 57 of 197
Page 58 of 197 AGENDA ITEM 7
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref CJ/PP Date 27/11/19
Community Council Quadrennial Elections 2019
From Head of Legal and Democratic Solutions Email [email protected] Telephone 01698 302340
Executive Summary
The purpose of this report is to advise Committee of the outcome of the recent Quadrennial Elections for Community Councils in North Lanarkshire following the close of the nomination process on Monday, 9 September 2019.
Recommendations
The Committee is asked to:-
(1) Note the current status of Community Councils in North Lanarkshire following the Quadrennial Elections; (2) Approve the change of name of Tannochside Community Council to Thorniewood Community Council, and (3) Approve that an event be arranged to recognise the service of former Community Councillors.
The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (19) Improve engagement with communities and develop their capacity to help themselves
1. Background
1.1 At the meeting of this Committee on 13 March 2019, consideration was given to a report seeking approval of the arrangements for Quadrennial Elections to establish Community Councils in North Lanarkshire, in terms of the Scheme for Establishment of Community Councils, on the basis that the current Community Council members were required to stand down on Monday, 7 October 2019.
2. Report
2.1 Following an extensive publicity campaign, utilising the Council’s website and social media pages, libraries throughout North Lanarkshire and advertisements in the local
Page 59 of 197 press, nominations were sought for sufficient numbers of Community Councillors to re- establish the 80 Community Councils throughout the Council’s area.
Re-established Community Councils
2.2 Nominations were received for membership following the nomination process and the undernoted Community Councils were re-established:-
Allanton & Hartwood, Auchinloch, Banton & Kelvinhead, Bellshill, Cairnhill, Caldercruix, Carbrain & Hillcrest, Castlecary, Central Wishaw, Chryston, Cleland, Coltness, Condorrat, Craigmarloch, Craigneuk, Dullatur, Glenboig, Glenmavis, Greengairs, Harthill & Eastfield, Kildrum, Kilsyth, Kirkwood, Ladywell, Monkland Glen, Newarthill, Newmains & District, North Calder, Overtown & Waterloo, Plains, Queenzieburn, Salsburgh, Seafar & Ravenswood, Shotts, Stepps & District, The Village and Westerwood.
2.2.1 There were 37 Community Councils re-established on 8 October 2019, with their inaugural meetings taking place within 42 days of establishment.
Establishment of New Community Council
2.3 In addition, sufficient nominations were received to establish Tannochside Community Council. The Community Council was established on 8 October 2019 and held its inaugural meeting on 9 October.
2.4 Tannochside Community Council have requested that their Council be renamed Thorniewood Community Council as, in their opinion, this would better reflect the area that they represent.
Elections/Disbandment
2.5 There were no instances in which the number of nominations for Community Councillors exceeded the number of available vacancies, and accordingly there was no need to conduct any election.
2.6 There were no cases where an existing Community Council failed to attract sufficient nominations for Community Councillors which would have caused that Community Council to cease to operate.
Recognition of Service
2.7 Following the close of nominations, a number of former Community Councillors have stood down. By way of recognising the service and contribution these individuals have made to civic life and to their communities during their term of office, it is proposed that an event be held for them on a date to be confirmed.
3. Equality and Diversity
3.1 Fairer Scotland Duty
Not applicable.
Page 60 of 197 3.2 Equality Impact Assessment
Not applicable.
4. Implications
4.1 Financial Impact
The funding to support the Quadrennial Elections is contained in the budget for Community Councils.
4.2 HR/Policy/Legislative Impact
There is no impact.
4.3 Environmental Impact
There is no impact.
4.4 Risk Impact
There is no impact.
5. Measures of success
5.1 To support and assist Community Councils in terms of the North Lanarkshire Council Scheme for the Establishment of Community Councils.
6. Supporting documents
6.1 There are no supporting documents.
Head of Legal and Democratic Solutions
Page 61 of 197
Page 62 of 197 AGENDA ITEM 8
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref AA/PD Date 27/11/19
Registration Service – Review of festive opening hours
From Archie Aitken, Head of Legal and Democratic Solutions Email [email protected] Telephone 01698 302422
Executive Summary
At its meeting on 3 October 2019, the Council decided that the Head of Legal and Democratic Solutions should investigate the possibility of the Council’s registration offices being kept open during the festive period (excluding weekends and bank holidays) and that a report setting out his findings should be submitted to a future meeting of this Committee.
Recommendations The Committee is asked to note the contents of the report, and that, having investigated the current arrangements in place for the registration of deaths during the festive period, the Head of Legal and Democratic Solutions is of the opinion that the arrangements currently in place should not be changed.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (24) Review and design services around people, communities, and shared resources
1. Background
1.1 At the Special Council meeting on 14 December 2010 it was agreed to close Council Offices over the festive period as part of the savings exercise.
1.2 At the Policy and Resources (Human Resources) Sub Committee in May 2012 it was agreed that, where Council premises are closed between Christmas and New Year, employees would be expected to take three days leave from their annual leave entitlement.
Page 63 of 197 2. Report
2.1 The Registration Service introduced festive closure arrangements in December 2012 opening the registration office in Coatbridge each day during the period when other Council offices were closed. This arrangement continued in 2013. From 2014 onwards, one office in each area was opened on alternate days, namely in Motherwell, Coatbridge and Cumbernauld. Latterly, the Airdrie office has been used instead of Coatbridge.
2.2 The staffing arrangements in each office are set at a maximum of 6 officers with the capacity to register 21 deaths per day, if required. It should be noted that the Standby out of hours facility operates throughout the festive period (including weekends, public holidays and evenings) to meet the needs of those who require to register a death as a matter of urgency for religious reasons.
2.3 Analysis of the registration of deaths over last year’s festive period (2018) is summarised as follows;
• During the three days of 27th, 28th and 31st December, 62 death registrations took place in North Lanarkshire (Appendix 1 shows details by office).
• On the first two working days after the New Year, the 3rd and 4th of January, 39 death registrations took place (Appendix 2 shows details by office).
• From 7th to 11th January 2019, the first full working week of the new year, 99 death registrations took place (Appendix 3 shows details by office).
2.4 Having reviewed the above information, it is clear that, by opening one office, on each of the days during the festive closure, demands for this service have been fully met, with 22, 19 and 21 death registrations having taken place each day.
2.5 Furthermore, on 3rd and 4th January 2019, the number of death registrations made was in single figures for each office. This trend continued into the following week, and demonstrates that there had been no accumulation of outstanding registration requests as a result of only one office being open, each day, over the festive period.
2.6 The Registration Service has no record of any complaints about the availability of its services since the introduction of the festive closure in 2012.
3. Equality and Diversity
3.1 Fairer Scotland Duty
Not Applicable
3.2 Equality Impact Assessment
Not Applicable
4. Implications
4.1 Financial Impact
Page 64 of 197 Not Applicable
4.2 HR/Policy/Legislative Impact
Not Applicable
4.3 Environmental Impact
Not Applicable
4.4 Risk Impact
Not Applicable
5. Measures of success
5.1 The Registration Services continues to provide a highly efficient and effective service to the people of North Lanarkshire.
6. Supporting documents
6.1 Appendix 1 – Death registrations for 27th, 28th and 31st December 2018.
6.2 Appendix 2 – Death registrations for 3rd and 4th January 2019.
6.3 Appendix 3 – Death registrations for 7th to 11th January 2019.
Head of Legal and Democratic Solutions
Page 65 of 197 APPENDIX 1 Deaths Registered at Motherwell Registrars on 27th December 2018 – 22 in total
Entry Number Home Address 971 Coatbridge 972 Coatbridge 973 Newmains 974 Motherwell
975 Morningside 976 Wishaw 977 Coatbridge 978 Motherwell 979 Coatbridge 980 Coatbridge 981 Hawick 982 Uddingston
983 Holytown 984 Motherwell 985 Calderbank 986 Ayr 987 Airdrie 988 Bellshill 989 Carluke 990 Allanton
991 Bellshill 992 Wishaw
Page 66 of 197 Deaths Registered at Cumbernauld Registrars on 28th December 2018 – 19 in total
Entry Number Home Address 634 Moodiesburn 635 Coatbridge 636 Bellshill 637 Wishaw 638 Hamilton 639 Airdrie 640 Wishaw 641 Wishaw 642 Wishaw 643 Airdrie 644 Motherwell 645 Cumbernauld 646 Coatbridge 647 Cumbernauld 648 Airdrie 649 Holytown 650 Cumbernauld 651 Cumbernauld 652 Carluke
Page 67 of 197 Deaths Registered at Airdrie Registrars on 31st December 2018 – 21 in total
Entry Number Home Address 744 Cumbernauld 745 Coatbridge 746 Coatbridge 747 Uddingston 748 Airdrie 749 Kilsyth 750 Airdrie 751 Cumbernauld 752 Motherwell 753 Motherwell 754 New Stevenston 755 Lenzie 756 Coatbridge 757 Cumbernauld 758 Bellshill 759 New Stevenston 760 Wishaw 761 Newmains 762 Motherwell 763 Airdrie 764 Greengairs
Page 68 of 197 APPENDIX 2 Deaths Registered at Airdrie Registrars 3rd and 4th January 2019 – 7 in total
Entry Number Date of Home Address if Registration different 1 3rd January Wishaw 2 3rd January Coatbridge 3 3rd January Airdrie 4 3rd January Motherwell 5 3rd January Morningside 6 4th January Airdrie 7 4th January Airdrie
Deaths Registered at Cumbernauld Registrars 3rd and 4th January 2019 – 9 in total
Entry Number Date Registered Home Address 1 3rd January 2019 Croy 2 3rd January 2019 Carstairs 3 3rd January 2019 Cumbernauld 4 3rd January 2019 Muirhead 5 3rd January 2019 Cumbernauld 6 3rd January 2019 Cumbernauld 7 4th January 2019 Glasgow 8 4th January 2019 Cumbernauld 9 4th January 2019 Cumbernauld
Page 69 of 197 Deaths Registered at Coatbridge Registrars 3rd and 4th January 2019 – 8 in total
Entry Number Date of Home Address if
Registration different rd 1 3 January Coatbridge 2 3 rd January Coatbridge 3 3 rd January Glenboig 4 3 rd January Coatbridge
5 3 rd January Uddingston 6 4th January Coatbridge 7 4th January Baillieston 8 4th January Wishaw
Deaths Registered at Motherwell Registrars 3rd and 4th January 2019 – 6 in total
Entry Number Date of Registration Home address 1 3rd January Allanton 2 3rd January Wishaw 3 3rd January Wishaw 4 3rd January Newarthill 5 3rd January Motherwell 6 4th January Motherwell
Page 70 of 197 Deaths Registered at Bellshill Registrars 3rd and 4th January 2019 – 9 in total
Entry Number Date of Registration Home address 1 3rd January Bellshill 2 3rd January New Stevenson 3 3rd January Bellshill 4 3rd January Shotts 5 3rd January Wishaw 6 4th January Shotts 7 4th January Overton 8 4th January Bellshill 9 4th January Motherwell
Page 71 of 197 APPENDIX 3
Deaths Registered at Coatbridge Registrars 7th to 11th January 2019 – 22 in total
Entry Number Date of Home Address Registration 9 7th January Uddingston 10 Coatbridge 11 Glasgow 12 Wishaw 13 8th January Motherwell 14 Wishaw 15 Shotts 16 Bellshill 17 9th January New Stevenston 18 Airdrie 19 Coatbridge 20 Glasgow 21 Carluke 22 10th January Cumbernauld 23 Bellshill 24 Coatbridge 25 Cleland 26 Coatbridge 27 Cumbernauld 28 11th January Coatbridge 29 Cumbernauld 30 Blantyre
Page 72 of 197 Deaths Registered at Airdrie Registrars 7th to 13th January 2019 – 31 in total
Entry Number Date of Home Address Registration Entry Number Date of Home Address if Registration different 8 7th January Airdrie 9 Airdrie 10 Airdrie 11 Coatbridge 12 Caldercruix 13 Airdrie 14 Chapelhall 15 8th January Airdrie 16 Airdrie 17 Coatbridge 18 Plains 19 Hamilton 20 Coatbridge 21 Chapelhall 22 Cumbernauld 23 Cumbernauld 24 Airdrie 25 Uddingston 26 9th January Claderbank 27 10th January Airdrie 28 Coatbridge 29 Airdrie 30 Airdrie 31 Airdrie 32 Airdrie 33 Coatbridge 34 Chapelhall 35 11th January Motherwell 36 Airdrie 37 Bargeddie 38 13th January Bellshill (call out Cultural death)
Page 73 of 197 Deaths Registered at Motherwell Registrars 7th to 11th January 2019 – 15 in total
Entry Number Date of Home Address Registration 7 7th January Wishaw 8 Kirknowe 9 Motherwell 10 Braidwood 11 8th January Motherwell 12 Waterloo 13 Carfin 14 Motherwell 15 9th January Wishaw 16 10th January Motherwell 17 Carluke 18 Motherwell 19 11th January Wishaw 20 Motherwell 21 Blackburn , W.Lothian
Page 74 of 197
Deaths Registered at Bellshill Registrars 7th to 11th January 2019 – 20 in total
Entry Number Date of Home Address Registration 10 7th January Bellshill 11 Bellshill 12 Glasgow 13 Uddingston 14 Shotts 15 8th January Bellshill 16 Wishaw 17 Wishaw 18 9th January Holytown 19 Shotts 20 Motherwell 21 10th January Holytown 22 Coatbridge 23 Uddingston 24 11th January Bellshill 25 Bellshill 26 Newarthill 27 Motherwell 28 Bellshill 29 Uddingston
Page 75 of 197 Deaths Registered at Cumbernauld Registrars 7th to 11th January 2019 – 11 in total
Entry Number Date of Registration Home Address 10 8th January 2019 Banknock 11 8th January 2019 Cumbernauld 12 9th January 2019 Bonnybridge 13 9th January 2019 Muirhead 14 9th January 2019 Cumbernauld 15 10th January 2019 Kilsyth 16 10th January 2019 Cumbernauld 17 10th January 2019 Cumbernauld 18 11th January 2019 Auchinloch 19 11th January 2019 Kilsyth 20 11th January 2019 Kilsyth
Page 76 of 197 AGENDA ITEM 9
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref Date 27/11/19 The Plan for North Lanarkshire : Strategic Performance Framework reporting arrangements From Katrina Hassell, Head of Business Solutions Email [email protected] Telephone 01698 302235
Executive Summary Elected Members are aware of The Plan for North Lanarkshire, Programme of Work, and four supporting Strategic Frameworks (i.e. Policy, Performance, Self-Evaluation, and Governance).
Having secured committee approval at Policy and Strategy Committee on 26th September 2019, this report outlines the next steps in terms of the reporting arrangements to service committees for the Strategic Performance Framework.
This aims to ensure evidence is presented to committee that allows for day to day activities, and progress towards achieving the shared ambition, to be regularly reported, monitored, assessed, and scrutinised.
This will also enable performance issues to be identified and remedial action to be undertaken to ensure the council remains on track towards achieving the shared ambition.
Recommendations It is recommended that the Finance and Resources Committee:
(1) Note the contents of this report and accompanying appendices, (2) Review the performance presented and identify where further information is required to understand or investigate performance further, and (3) Note the next steps.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition (21) Continue to identify and access opportunities to leverage statements additional resources to support our ambitions (22) Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners (23) Build a workforce for the future capable of delivering on our priorities and shared ambition
Page 77 of 197 1. Background
1.1 Members will recall The Plan for North Lanarkshire (approved in February 2019) articulates the long-term vision for North Lanarkshire that focusses on inclusive growth and prosperity for all.
1.2 Having set the long-term vision it is important this is cascaded down to day to day activities that provide a consistent focus for resources and working practices.
1.3 In this respect, a Programme of Work is in place which outlines the activities required to underpin delivery of The Plan; this was approved at Committee in March 2019.
1.4 The Plan and Programme of Work are supported by four complementary frameworks designed to enable a regular structured approach to assessing progress, measuring success, and identifying (where necessary) areas requiring improvement. These are:
Strategic Policy Framework, approved at Committee in September 2018. Strategic Self-Evaluation Framework, approved at Committee in February 2019. Strategic Performance Framework, approved at Committee in February 2019. Strategic Governance Framework, which is currently under development and will be presented to Corporate Management Team in the autumn of 2019.
1.5 This report provides the Finance and Resources Committee with an outline of their performance monitoring responsibilities in line with the Strategic Performance Framework. It outlines the Ambition Statements aligned to the Finance and Resources Committee and provides the accompanying extracts from the Strategic Performance Framework.
1.6 The purpose of the report is to set the context, raise awareness, clarify responsibilities and present the performance information, in line with The Plan for North Lanarkshire, which the Committee will be responsible for scrutinising moving forward.
2. Performance results
Strategic Performance Framework
2.1 The Strategic Performance Framework comprises a group of performance indicators at three levels. These aim to collectively provide an overview of performance and demonstrate the impact of the programmes of work and service activities on the people and communities of North Lanarkshire.
2.2 As has been previously approved, the three levels are summarised below. (1) The North Lanarkshire context Suite of 28 Health Check Indicators that collectively provide the North Lanarkshire context. (2) Improving outcomes Suite of indicators and information to enable an assessment of progress towards improving the priorities and ambitions outlined in The Plan for North Lanarkshire. (3) Day to day operations Performance indicators that allow the quality, efficiency, and effectiveness of day to day operations to be assessed.
Page 78 of 197 2.3 The detailed Strategic Performance Framework, approved in September 2019, aligns the indicators to one or more of the 25 Ambition Statements in The Plan for North Lanarkshire. It also shows the connections between the Ambition Statements, Programme of Work elements, Strategic Policy Framework, and performance indicators at the three levels in the Framework.
Finance and Resources Committee responsibilities
2.4 In line with terms of reference outlined in the Scheme of Administration, the Finance and Resources Committee will be responsible for monitoring and reviewing performance information for the following Ambition Statements:
21. Continue to identify and access opportunities to leverage additional resources to support our ambitions. 22. Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners. 23. Build a workforce for the future capable of delivering on our priorities and shared ambition.
2.5 The Strategic Performance Framework extracts, relevant to the Finance and Resources Committee (see Appendix 1), provide all relevant information that aligns to The Plan for North Lanarkshire for these Ambition Statements. This information comprises the following:
Priorities Ambition Statements 21, 22, and 23 impact on all 5 priorities
Strategic There are 4 service There are 5 service There are 4 service Policy policies / strategies policies / strategies policies / strategies Framework in place to facilitate in place to facilitate in place to facilitate delivery of Ambition delivery of Ambition delivery of Ambition Statement 21 Statement 22 Statement 23
- Financial Strategy - Asset Management - Digital and IT - Procurement Strategy Strategy Strategy - Procurement - Safety Policy - Communication Strategy - Workforce for the Strategy - Digital and IT Future - Digital and IT Strategy - Communication Strategy - Environment Strategy Strategy - Communication Strategy
Programme There are 8 There are 9 There are 9 of Work corresponding corresponding corresponding elements in the elements in the elements in the Programme of Programme of Programme of Work: Work: Work:
- P010 Arms’ length - P002 Asset review - P005 Inclusive delivery to support and rationalisation growth (tackling - the shared - P025 Parks master poverty) ambition planning - P018 Economic - P011 Three year - P026 Co-ordination Regeneration revenue budget of environmental Delivery Plan
Page 79 of 197 strategy assets - P024 Employability - P012 Community - P027 services Investment Fund Rationalisation of - P058 Disability - P055 Community operational base Confident Leader asset mapping - P028 Shared accreditation - P056 Community services - P061 Employee matters / local - P029 Energy and learning and governance carbon development system management programmes - - P057 Community - P046 Integrated LearnNL engagement / community hubs / - P062 Digital community campuses workforce and visioning - P047 Schools new skills framework build programme - P063 Trade Union - P059 Improve - P071 Digital consultative procurement wireless services framework capabilities - P064 Employee - P060 Framework engagement and for the delivery of wellbeing legal professional - P065 Living Wage services consolidation
Health There are 4 main There are 4 main There are 5 main Check indicators which indicators which indicators which Indicators activities towards activities towards activities towards (level 1) Ambition Statement Ambition Statement Ambition Statement 21 are expected to 22 are expected to 23 are expected to have an impact on: have an impact on: have an impact on: - Population - Population - Population projections - % projections - % projections - % change change change - Mid-year population - Estimated housing - Total net migration estimates by tenure - rate per 1,000 - Total net migration - Rating of - % of pupils entering - rate per 1,000 neighbourhood as positive - Estimated housing a place to live destinations by tenure - Perception of - % of all people neighbourhood economically active improvements - % of the working population that have no formal qualifications
Performance This contains the detail for each performance indicator in the Indicators Strategic Performance Framework relevant for the Finance and (for level 2 Resources Committee. Where provided by services, this also and 3) shows baseline, trend, and target/threshold information for each indicator.
2.6 The Strategic Performance Framework established a set of guiding principles to ensure the right information to the right audience at the right time. Members may wish to use this as a guide when reviewing the performance information presented to Committee.
2.7 The guiding principles are that reporting is:
Aligned - to The Plan for North Lanarkshire to give stakeholders an insight into the performance of council activities in the short-term and against the shared ambition in the long-term. Consistent - to ensure a standard process across time and each committee. This
Page 80 of 197 aims to help build credibility, reliability, and a common understanding. Transparent - to allow stakeholders to understand what is being measured, what it means, and what level of performance has actually been achieved and what change has taken place. In context - to avoid the So What? question and provide a coherent narrative to ensure fully informed review, scrutiny, and decision making processes. Balanced - to ensure any text adds value and tells a balanced narrative that identifies areas requiring improvement and any remedial action undertaken.
Next steps
2.8 Having set the scene, future reports in 2020 will thereafter update the Finance and Resources Committee on performance against the items outlined in the Strategic Performance Framework extracts.
3. Equality and Diversity
3.1 Fairer Scotland Duty There is no requirement to carry out a Fairer Scotland Duty assessment on this report. However, services will provide further information to the Finance and Resources Committee, where relevant, in this respect.
3.2 Equality Impact Assessment There is no requirement to carry out an equality impact assessment on this report. However, services will provide further information to the Finance and Resources Committee, where relevant, in this respect.
4. Implications
4.1 Financial impact There is no financial impact arising from the performance information presented in this report. However, services will provide further information to the Finance and Resources Committee, where relevant, in response to any matter in this respect arising from the performance results and scrutiny process.
4.2 HR/Policy/Legislative impact There are no HR/policy/legislative impacts arising from the performance information presented in this report. However, services will provide further information to the Finance and Resources Committee, where relevant, in response to any matter in this respect arising from the performance results and scrutiny process.
4.3 Environmental impact There is no environmental impact arising from the performance information presented in this report. However, services will provide further information to the Finance and Resources Committee, where relevant, in response to any matter in this respect arising from the performance results and scrutiny process.
4.4 Risk impact Risks are identified in each service specific report when the respective policies/strategies are presented to committee. Risks are also identified within each Programme of Work report. This identifies what the risk is and where the risk is managed (i.e. through the corporate risk register, service risk register, or a particular project management framework).
Page 81 of 197 5. Measures of success
5.1 Key measures of success include the following:
The evidence presented demonstrates a positive impact on day to day operations and improving outcomes for the people and communities of North Lanarkshire. The evidence presented supports the delivery of The Plan for North Lanarkshire.
6. Supporting documents
6.1 Appendix 1 - Strategic Performance Framework extracts relevant to the Finance and Resources Committee
Katrina Hassell Head of Business Solutions
Page 82 of 197 Inclusive growth and prosperity for all - where North Lanarkshire is the place to Live, Learn, Work, Invest, and Visit Priorities: Shared 1. Improve economic opportunities and outcomes. 4. Enhance participation, capacity, and empowerment across our Ambition 2. Support all children and young people to reach their full potential. communities. 3. Improve the health and wellbeing of our communities. 5. Improve North Lanarkshire's resource base. The Plan for North Lanarkshire Ambition statement 21 Continue to identify and access opportunities to leverage additional resources to sup- 5 priorities port our ambition 25 ambition statements
28 health check indicators Measuring this indica- 1. Health Check Baseline Baseline- tor will tell What does The North Lanarkshire context Strategic Programme Indicators -NL Scotland us if we success look like Policy of Work / have we have Framework Activities C01: Population projections - +1.0% +3.2% Increased Steadily increasing The NL population is projected to increase 1% by 2026, then decrease by 0.9% to % change 2016-26 2016-26 our popula- population in NL, 2041, meaning a net change overall of 0.1% (+233 people) by 2041. Every 2 years tion and net and in particular Of note is the change in the structure of the population which will see a 16% Strategic Policy Programme of Work inward mi- growth in the num- reduction in the number of school age children and a 10% reduction in the ∗ Framework P010 Arms’ length delivery to sup- gration ber of school age working age population, but a 51% increase in adults aged 65+. ∗ Financial Strategy port the shared ambition children and the C02: Mid-year population es- 339,960 5,424,800 NLs population has been growing since 2008 (+2%, +6,900 people), however this ∗ ∗ P011 Three year revenue budget working age popu- Procurement Strategy timates Mid-2017 Mid-2017 is at a lower growth rate than the national average. lation. ∗ Digital and IT Strategy strategy Annual It is estimated NLs population growth will continue to be favourable for the next ∗ ∗ Communication Strategy P012 Community Investment Fund 10 years. ∗ P055 Community asset mapping C03: Total net migration - rate 2.16 4.4 Inward migration in NL has been positive in recent years, meaning more people ∗ P056 Community matters / local per 1,000 2017 2017 have moved in than out. Inward migration is a general sign of a positive eco- governance system Annual nomic picture. ∗ P057 Community engagement / It is anticipated that the level of investment underway across NL will result in community visioning framework inward migration continuing. ∗ P059 Improve procurement capa- C04: Estimated housing by Increased Having a range of The council remains the largest local authority landlord in Scotland with a stock
bility tenure 57% 58% the housing housing stock that of 36,315 homes (2018). While the population is expected to grow by only 0.1% ∗ P060 Framework for the delivery of Owner occupied, 12% 15% choice avail- meets population by 2041, household numbers are projected to rise by 9% - this will mean in- Private rented, 1% 4% able to our growth demands creased demand for homes. legal professional services 6% 11% Vacant or second home existing and and also changes in More significantly, single adult households are projected to increase by 60% Housing association 24% 12% future resi- household compo- (almost 15,000 people) by 2041. Local authority 2017 2017 dents sition. Annual
2. Improving Outcomes ∗ Rent lost - % of rent due in the year that was lost due to properties being empty ∗ Council tax - % of income due from council tax collected in the year ∗ Non domestic rates - % collected in the year ∗ Rent - £ collected as a % of total rent due in reporting year ∗ Rent - arrears as at 31 st March each year as a % of total rent due for the reporting year
3. Day to Day Operations ∗ Assessment score - procurement and commercial improvement programme (PCIP) ∗ Council tax - cost of collecting council tax per dwelling ∗ Payment of council invoices - % of invoices that were paid within 30 calendar days of receipt ∗ Accounts - cost of closure of accounts as a % of gross expenditure; % variation between the forecast outturn and actual outturn ∗ Procurement spend - % through collaborative contracts with other publicly funded bodies; % with contracted suppliers ∗ Statutory financial reports - % completed by deadline date ∗ Treasury - % of prudential indicators complied with Page 83 of 197 2. Improving Outcomes 3. Day to Day Operations
What is being measured? Baseline Trend 2019/20 2020/21 2021/22 What is being measured? Baseline Trend 2019/20 2020/21 2021/22 Target / Target / Target / Target / Target / Target / threshold threshold threshold threshold threshold threshold Pi119 Council tax - % of income due from council 94.1% 94% 94.5% 95% Assessment score - procurement and commercial 70% 68% n/a 78% tax collected in the year 2018/19 + / - 1.5 + / - 1.5 + / - 1.5 improvement programme (PCIP) 2018/19 + / - 5 + / - 5
94.2% Council tax - cost of collecting council tax per dwell- £6.37 £10.80 £10.50 £10.50 2017/18 ing 2018/19 + / - £2 + / - £2 + / - £2 ranked 30 out of 32 £7.66 Family group average: 2017/18 95.6% ranked 17 out of 32 National average: Family group aver- 96.0% age: £7.25 Pi120 Non domestic rates - % collected in the 96.3% 95.8% 95.8% 95.8% National average : year 2018/19 + / - 1.5 + / - 1.5 + / - 1.5 £7.35 Pi121 Rent - £ collected as a % of total rent due 97.5% 99% 99% 99% Payment of council invoices - % of invoices that 89.9 % 95% 95% 96% in reporting year 2018/19 + 1 / - 2.5 + 1 / - 2.5 + 1 / - 2.5 were paid within 30 calendar days of receipt 2018/19 + / - 1 + / - 1 + / - 1
90.7 % st Pi122 Rent - arrears as at 31 March each year as 8.6% 8% 9% 10% 2017/18 a % of total rent due for the reporting year 2018/19 + / - 1 + / - 1 + / - 1 ranked 23 out of 32
Family group aver- 6.9% age: 2017/18 94.2% ranked 13 out of 32 National average : Family group average: 93.2% 6.6% National average: Accounts - cost of closure of accounts as a % of 0.021% 0.025% 0.025% 0.025% 2018/19 + / - 0.005 + / - 0.005 + / - 0.005 6.8% gross expenditure Accounts - % variation between the forecast outturn 0.84% 0% 0% 0% Pi123 Rent lost - % of rent due in the year that 0.65% 0.75% 0.73% 0.71% and actual outturn 2018/19 + / - 1 + / - 1 + / - 1 was lost due to properties being empty 2018/19 + / - 0.08 + / - 0.08 + / - 0.08
0.70% Procurement spend - % through collaborative con- 29.3% 21% 22% 23% + / - 2.5 2017/18 tracts with other publicly funded bodies 2018/19 + / - 2.5 + / - 2.5 ranked 7 out of 32 Procurement spend - % with contracted suppliers 89.8% 93% 93% 93% Family group average: 2018/19 + / - 5 + / - 5 + / - 5 0.97% 100% National average : Statutory financial reports - % completed by dead- 100% 100% 100% - 5 0.89% line date 2018/19 - 5 - 5 Treasury - % of prudential indicators complied with 100% 100% 100% 100% 2018/19 - 5 - 5 - 5 Legal services - number of legal service delivery 84.3% 81% 81% 81% hours as % of total staff hours 2018/19 + / - 5% + / - 5% + / - 5% Costs - average cost £ per hour of providing legal £47.26 £42.19 £43.46 £44.76 service 2018/19 + / - 10% + / - 10% + / -10%
Page 84 of 197 As at September 2019 Inclusive growth and prosperity for all - where North Lanarkshire is the place to Live, Learn, Work, Invest, and Visit Priorities: Shared 1. Improve economic opportunities and outcomes. 4. Enhance participation, capacity, and empowerment across our Ambition 2. Support all children and young people to reach their full potential. communities. 3. Improve the health and wellbeing of our communities. 5. Improve North Lanarkshire's resource base. The Plan for North Lanarkshire Ambition statement 22 Facilitate a North Lanarkshire wide approach to asset rationalisation, including with 5 priorities communities and partners 25 ambition statements
28 health check indicators Measuring this indica- 1. Health Check Baseline Baseline- tor will tell What does The North Lanarkshire context Strategic Programme Indicators -NL Scotland us if we success look like Policy of Work / have we have Framework Activities C01: Population projections - +1.0% +3.2% Increased Steadily increasing The NL population is projected to increase 1% by 2026, then decrease by 0.9% to % change 2016-26 2016-26 our popula- population in NL, 2041, meaning a net change overall of 0.1% (+233 people) by 2041. Every 2 years tion and net and in particular Of note is the change in the structure of the population which will see a 16% Strategic Policy Programme of Work inward mi- growth in the num- reduction in the number of school age children and a 10% reduction in the ∗ Framework P002 Asset review and rationalisa- gration ber of school age working age population, but a 51% increase in adults aged 65+. ∗ Asset Management Strategy tion children and the ∗ Procurement Strategy ∗ P025 Parks master planning working age popu- ∗ Digital and IT Strategy ∗ P026 Co-ordination of environ- lation. ∗ Environment Strategy mental assets C04: Estimated housing by tenure Increased the Having a range of The council remains the largest local authority landlord in Scotland with a stock of 36,315 ∗ Communication Strategy ∗ P027 Rationalisation of operational Owner occupied 57% 8% housing housing stock that homes (2018). While the population is expected to grow by only 0.1% by 2041, household base Private rented 12% 15% choice availa- meets population numbers are projected to rise by 9% - this will mean increased demand for homes. ∗ Vacant or second home 1% 4% ble to our growth demands and More significantly, single adult households are projected to increase by 60% (almost P028 Shared services Housing association 6% 11% existing and also changes in 15,000 people) by 2041. ∗ P029 Energy and carbon manage- Local authority 24% 12% future resi- household composi- ment Annual 2017 2017 dents tion. ∗ P046 Integrated community hubs / C07: Rating of neighbourhood as Improved our Having neighbour- Residents’ perceptions of their neighbourhood have remained stable with little change a place to live by urban / residents per- hoods where people recorded over the last 5 year period. campuses rural classification 33% 60% ceptions of want to live is a fun- ∗ P047 Schools new build pro- Accessible small town (very 62% 37% their neigh- damental aspect of gramme good) 95% 97% bourhoods the shared ambition. ∗ P071 Digital wireless services Accessible small town (good) 2016 2016 Accessible small town (very good/ good) Annual C08: Perception of neighbour- Improved the Improvements to the Residents’ perceptions of improvements in their neighbourhood show some fluctuation hood improvements in past perceptions of most deprived neigh- over the last 5 years with a decrease in those who feel their neighbourhood has got much three years by Scottish Index our most dis- bourhoods to ensure or a little better - this is offset by a similar decrease in those who feel their neighbourhood of Multiple Deprivation (SIMD) advantaged that residents share has got a little or much worse. - 20% most deprived 1% 4% communities equally in the improv- The largest increase can be seen in residents who feel their neighbourhood has stayed the Got much better 19% 15% of the areas in ing picture and there same. Got a little better 57% 53% which they live is social inclusion Stayed the same 8% 14% across our diverse Got a little worse 8% 7% towns and communi- Got much worse 7% 7% ties. Don’t know 2016 2016 Annual
2. Improving Outcomes ∗ Community asset transfers (CATs) - number of council owned assets trans- level above 75% ∗ ∗ Assets - % of internal floor area of operational buildings that are in a satisfacto- ferred as a result of CAT requests Carbon footprint for the council - tCo2e of carbon emissions; carbon emis- ∗ ry condition; % operational buildings that are suitable for their current use Occupancy level, primary schools + secondary schools - % with occupancy sions per FTE employee
3. Day to Day Operations cy jobs as a percentage of day to day routine jobs ∗ ∗ Corporate property repairs - % emergency completed within timescale; % routine completed within timescale; emergen-Page 85 ofPublic 197 accessibility to council buildings - % council buildings, public areas, suitable for, accessible to disabled people 2. Improving Outcomes 3. Day to Day Operations
What is being measured? Baseline Trend 2019/20 2020/21 2021/22 What is being measured? Baseline Trend 2019/20 2020/21 2021/22 Target / Target / Target / Target / Target / Target / threshold threshold threshold threshold threshold threshold
Pi124 Assets - % of internal floor area of opera- 86.6% 85% 86% 87% Public accessibility to council buildings - % council 85.2% 85% 86% 87% tional buildings that are in a satisfactory condition 2017/18 + / - 5 + / - 5 + / - 5 buildings, public areas, suitable for, accessible to 2017/18 + / - 5 + / - 5 + / - 5 ranked 18 out of 32 disabled people data available in Sep- Family group average : tember each year 86.6% Corporate property repairs - % emergency com- 98.2 % 97% 97% 97% National average : pleted within timescale 2017/18 + / - 1.5 + / - 1.5 + / - 1.5 86.3% Pi125 Assets - % operational buildings that are 81.9% 82% 83% 84% Corporate property repairs - % routine completed 98.0 % 97% 97% 97% suitable for their current use 2017/18 + / - 5 + / - 5 + / - 5 within timescale 2017/18 + / - 1.5 + / - 1.5 + / - 1.5 ranked 22 out of 32 Family group average: Corporate property repairs - emergency jobs as a 36.0 % 34% 34% 34% 80.4% percentage of day to day routine jobs 2017/18 + / - 2.5 + / - 2.5 + / - 2.5 National average : 81.0%
data available in Sep- tember each year Pi126 Community asset transfers (CATs) - number 3 3 3 of council owned assets transferred as a result of CAT requests Pi127 Occupancy level, primary schools - % with 55% 59% 59% 60.5% occupancy level above 75% 2018/19 +/ - 2 + / - 2 + / - 2
Pi128 Occupancy level, secondary school - % with 52.2 % 63% 63% 63% occupancy level above 75% 2018/19 + / - 2 + / - 2 + / - 2
Pi129 Carbon footprint for the council - tCo2e of 121,723 tCo2e 101,947 96,806 91,665 carbon emissions 2017/18 + / - 10% + / - 10% + / - 10%
data available in No- vember each year
Pi130 Carbon footprint for the council - carbon 9.5 7.9 7.6 7.2 emissions per FTE employee 2017/18 + / - 10% + / - 10% + / - 10%
data available in No- vember each year
Page 86 of 197 As at September 2019 Inclusive growth and prosperity for all - where North Lanarkshire is the place to Live, Learn, Work, Invest, and Visit Priorities: Shared 1. Improve economic opportunities and outcomes. 4. Enhance participation, capacity, and empowerment across our Ambition 2. Support all children and young people to reach their full potential. communities. 3. Improve the health and wellbeing of our communities. 5. Improve North Lanarkshire's resource base. The Plan for North Lanarkshire Ambition statement 23 Build a workforce for the future capable of delivering upon our priorities and shared am- 5 priorities bition 25 ambition statements 28 health check indicators
Measuring this indi- 1. Health Check Baseline Baseline- What does success look Strategic Programme cator will tell us if -NL Scotland like The North Lanarkshire context Policy of Work / Indicators we have we have Framework Activities C01: Population projections - +1.0% +3.2% Increased our popula- Steadily increasing popula- The NL population is projected to increase 1% by 2026, then % change 2016-26 2016-26 tion and net inward tion in NL, and in particular decrease by 0.9% to 2041, meaning a net change overall of Strategic Policy Programme of Work Every 2 years migration growth in the number of 0.1% (+233 people) by 2041. Framework ∗ P005 Inclusive growth (tackling school age children and the Of note is the change in the structure of the population which ∗ Digital and IT Strategy poverty) working age population. will see a 16% reduction in the number of school age children and a 10% reduction in the working age population, but a ∗ Internal Audit Strategy ∗ P018 Economic Regeneration De- 51% increase in adults aged 65+. ∗ Safety Policy livery Plan ∗ Workforce for the Future ∗ P024 Employability services C03: Total net migration - rate 2.16 4.4 Inward migration in NL has been positive in recent years, per 1,000 2017 2017 meaning more people have moved in than out. Inward migra- ∗ Communication Strategy ∗ P058 Disability Confident Leader accreditation Annual tion is a general sign of a positive economic picture. It is anticipated that the level of investment underway across ∗ P061 Employee learning and devel- NL will result in inward migration continuing. opment programmes - LearnNL ∗ P062 Digital workforce and skills C13: % of pupils entering pos- 91.8% 93.7% Improved the further Every child leaving a NL The proportion of young people leaving school in NL and ∗ P063 Trade Union consultative itive destinations 2016/17 2016/17 education and em- school is able to share entering a positive destination has shown a year on year im- framework Annual ployment prospects equally in the improving provement. ∗ P064 Employee engagement and for our young people economic picture and However, of more note is the 8.2% of young people who do achieve the pathway they not. This can equate to approx 300 children, most of whom wellbeing wish to. are those hardest to reach and disengaged from school. ∗ P065 Living Wage consolidation C18: % of all people economi- 77.8% 77.6% Increased the number More people aged 16 to 64 Employment rates in NL remain relatively steady since 2014 and cally active in employ- October October of our residents in em- living in NL are economically on a par with the national average. ment (16-64 years) 2017/ 2017/ ployment active and contributing to the Annual, updated quarterly September September local / national economy. 2018 2018
C21: % of the working age 13.6% 8.7% Increased the qualifica- An increase in formal qualifi- While the proportion of NLs working age population with formal population (aged 16-64) 2017 2017 tion levels of our work- cations are important for the qualifications has shown year on year improvement, a significant that have no formal force working age population in number of 16 to 64 year olds have no qualifications (29,400 peo- qualifications order to increase skills and ple). Annual, updated quarterly flexibility within the work- This restricts their ability to access current or developing employ- force. ment opportunities.
Page 87 of 197 2. Improving Outcomes ∗ Employee turnover - % of new starts who leave in the first year ∗ RIDDOR - number of reported injuries, diseases, dangerous occurrences, per ∗ ∗ Sickness absence - average number of days lost per employee Employee learning and development - average development hours per par- 1,000 employees ∗ Equal opportunities - % of the highest paid 5% of employees who are women ticipant attending training opportunities ∗ ∗ Gender pay gap - % gap between average hourly rate of pay for male and fe- Investors in People employee engagement - % services who have maintained male employees or improved their standard of award; % response rate to online survey in both ∗ Applications for vacancies from protected characteristics applicants - % annual or pulse review ∗ applying for posts; % interviewed; % successful Employee engagement NL Life - Reward and Recognition NL - average £ ∗ Employee retention - number of employees retained as a % of total workforce spend per person per month; % uptake of different benefits offered; Workwell - all employees; ethnic employees; disabled employees NL - % participation in employee well-being activities
3. Day to Day Operations ∗ Employee recruitment - time to hire - Employee Service Centre; time to hire - services; % posts filled first time ∗ Investors In People employee engagement framework - % of actions delivered from improvement plan ∗ Employee learning and development - % of attendees at training who said they felt confident to apply what they’d learned; % of learners who stated their personal learning outcomes were met ∗ Employee learning and development - % completion of compliance or mandatory training (e.g. equality, diversity, Gen- eral Data Protection Regulation (GDPR), and health and safety); % of required workforce who have completed or are work- ing towards further education / professional qualifications required for their role; % of managers who have participated in a learning and development module / training programme; % of Graduate Apprentices with career progression within 2 years of completion
Page 88 of 197 2. Improving Outcomes
What is being measured? Baseline Trend 2019/20 2020/21 2021/22 What is being measured? Baseline Trend 2019/20 2020/21 2021/22 Target / Target / Target / Target / Target / Target / threshold threshold threshold threshold threshold threshold Pi132 Sickness absence, all employees (including 10.39 9.67 Pi139 Employee turnover - % of new starts who new for 2019/20 teachers) - average number of days lost per em- 2018/19 + / - 0.5 leave in the first year ployee Pi140 Employee learning and development - av- new for 2019/20 Pi133 Sickness absence, teachers - average num- 8.01 6.52 erage development hours per participant attend- ber of days lost per employee 2018/19 + / - 0.22 ing training opportunities 6.78 all employees ranked 23 out of 32 by ethnic minority 2017/18 by gender Family group average: disabled employees 5.70 new for 2019/20 National average: Pi141 Investors in People employee engagement 5.93 - % services who have maintained or improved Pi134 Sickness absence, all employees (excluding 11.20 10.96 their standard of award teachers) - average number of days lost per em- 2018/19 + / - 0.34 - % response rate to online survey in both an- nual or pulse review ployee 11.86 new for 2019/20 2017/18 Pi142 Employee engagement NL Life ranked 22 out of 32 Reward and Recognition NL - average £ spend Family group average: per person per month 11.46 % uptake of different benefits offered National average: Workwell NL - % participation in employee well- 11.41 being activities Pi135 Equal opportunities - % of the highest paid 61.0% This measure is used for bench- Pi143 RIDDOR - number of reported injuries, dis- 5.0 4 5% of employees who are women 2018/19 marking purposes eases, dangerous occurrences, per 1,000 employ- 2018/19 + / - 1
60.3% ees 2017/18 ranked 5 out of 32 3. Day to Day Operations
Family group average: What is being measured? Baseline Trend 2019/20 2020/21 2021/22 55.9% Target / Target / Target / National average: threshold threshold threshold 54.6% Employee recruitment new for 2019/20 Pi136 Gender pay gap - % gap between average 4.7% This measure is used for bench- - time to hire - Employee Service Centre hourly rate of pay for male and female employees 2018/19 marking purposes
- time to hire - services 8.0% - % posts filled first time 2017/18 Investors In People employee engagement framework new for 2019/20 ranked 17 out of 32 - % of actions taken forward / delivered in the service Family group average: from improvement plan 1.8% Employee learning and development new for 2019/20 National average: - % of attendees at training who said they felt 3.9% confident to apply what they’d learned new for 2019/20 Pi137 Applications for vacancies from protected - % of learners who stated their personal learning characteristics applicants outcomes were met - % applying for posts Employee learning and development new for 2019/20 - % interviewed - % completion of compliance or mandatory train- - % successful ing (e.g. equality, diversity, General Data Protec- Pi138 Employee retention - number of employees new for 2019/20 tion Regulation (GDPR) , health and safety) retained as a % of total workforce - % of required workforce who have completed or all employees are working towards further education / profes- ethnic employees sional qualifications required for their role disabled employees - % of managers who have participated in a learning and development module / training programme - % of Graduate Apprentices with career progres- sion within 2 years of completion
Page 89 of 197 As at September 2019
Page 90 of 197 AGENDA ITEM 10A
North Lanarkshire Council Report Finance & Resources Committee
☐approval ☒noting Ref VR/RM Date 27/11/19
Revenue Budget Monitoring Report; Chief Executives & Other Corporate Services 01.04.19 – 11.10.19 (Period 7)
From Elaine Kemp, Head of Financial Solutions Email [email protected] Telephone 01698 302408
Executive Summary This report provides a summary of the Chief Executive & Other Corporate Services financial performance for the period 1 April 2019 to 11 October 2019 (Period 7). The report illustrates the projected outturn as at 31 March 2020, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations.
The Council approved its General Fund Revenue Budget on 21 February 2019, of which £70.670m currently represents the Net Revenue Budget for the Chief Executive & Other Corporate Services. The Service is currently projecting a year-end balanced budget for the financial year. In addition, the 2019/20 budget incorporates £1.957m of savings previously approved by the Council. It is currently anticipated that £1.726m of savings (88%) will be delivered by the financial year-end.
Recommendations It is recommended that the Finance & Resources Committee:
(1) note the financial position of the 2019/20 Chief Executive & Other Corporate Services revenue budget.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
Page 91 of 197 1. Background
1.1 The Council’s approved Financial Regulations require the Chief Executive to remain within the approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within budget monitoring reports. Where significant deviations are identified, the Chief Executive must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings.
2. Report
2.1 Summary of Financial Position 2.1.1 The Council approved its General Fund Revenue Budget on 21 February 2019, of which £69.845m (9.32%) represented the approved Revenue Budget for the Chief Executive & Other Corporate Services. Subsequent realignments of service budgets has resulted in a revised budget of £70.670m; an increase of £0.825m primarily due to realignment of bank interest income of £0.750m within loan charges which are reported corporately as part of the Revenue Monitoring Council Summary report.
2.1.2 The Service is currently projecting a balanced budget for the financial year. Section 2.2 below and appendices one to five of this report further explain any significant budget variations contributing to this outturn position.
2.1.3 There is no overall movement in outturn from that previously reported, however within the Service there is increased expenditure in employee costs of £0.500m primarily due to further review of budget requirements within People & Organisational Development and IT costs of £0.275m primarily due to the renewal of the iTrent contract. These variances are offset by projected underspends in administration and property costs of £0.626m primarily in relation to underspend in insurance charges of £0.750m, and increased income recoveries of £0.168m, due to increased PPP income of £0.339m partly offset by increased under-recovery of advertising income of £0.170m.
2.1.3 The 2019/20 budget incorporates £1.957m of savings previously approved by the Council on 23 February 2019. It is presently anticipated that £1.726m of savings (88%) will be delivered by the financial year-end. Further information regarding particularly challenging savings is included in Appendix 5.
2.2 Analysis of Significant Variances 2.2.1 Employee costs are anticipated to be overspent by £0.412m primarily due to delay in achievement of savings targets, additional structure review costs, which are partly offset by increased turnover savings. This overspend is currently being managed on a one off basis across the Service however, there is an underlying budget issue, mainly in relation to People and Organisational Development. The Service continues to consider options to address this on a permanent basis.
2.2.2 Supplies & Services are anticipated to be overspent by £0.516m primarily due to increased ICT licencing and maintenance costs in Business Solutions (of £0.178m) due to legacy transformation contracts and People & Organisational Development (of £0.336m) mainly due to the renewal of the iTrent contract.
2.2.3 Administration and Property costs are anticipated to be underspent by £0.570m primarily due to an underspend in Insurance Fund costs of £0.750m, which is partly offset by increased expenditure of £0.075m on legacy IT transformation project resources and Printing of £0.038m which is offset by increased income recovery.
2.2.4 Income is projected to be over-recovered by £0.375m, primarily due to increased PPP income of £0.338m, capital recharges of £0.100m, other Government grant funding of £0.027m, ICT recharges of £0.037m within Business Solutions, support recharges of Page 92 of 197 £0.048m in Legal & Democratic Solutions and Financial Solutions and printing recharges of £0.038m within Strategic Communications. These increases are partly offset by reduced fees & charges income of £0.220m primarily due to Strategic Communications advertising income under-recovery of £0.170m and under-recovery of registration and legal recharges in Legal & Democratic Solutions of £0.050m.
2.2.5 Payments to other bodies are detailed in appendix 3. These account for £14.569m of the Chief Executive & Other Corporate Services annual budget. A minor overspend of £0.007m is currently anticipated primarily due to increased COSLA and Audit fees and medical costs, partly offset by a minor underspend in election costs.
2.3 Earmarked and One-Off Resources 2.3.1 In finalising the Council’s draft accounts to 31 March 2019, the service was given approval to earmark £10.638m of resources to fund key projects and initiatives. It is anticipated that £5.074m of these reserves balances will be utilised in 2019/20, with the remaining balance required for future years.
2.3.2 Committee should note that costs in relation to Digitisation are anticipated to be £4.206m. This reflects increased expenditure of £1.400m in 2019/20 in relation to ICT Service Delivery licence, support and maintenance contracts. This cost pressure will be addressed by the benefits realised from the Digital NL programme as indicated in the approved business case. Until the savings are realised, these costs will be offset by earmarked reserves. In addition, it is envisaged that a further £3.206m of the Digital NL reserve will be utilised in 19/20 for resourcing the Digital NL project team, and forecast delivery of the initial phases of the project within the financial year.
2.3.3 Details of the Service’s earmarked funds are provided in appendix 4.
2.3.4 The Service has an anticipated requirement to utilise £0.923m of the corporate earmarked funds to support VRS costs related to 2019/20 savings / restructures (£0.752m) and 2020/21 savings (£0.171m). These costs are not included in the Service outturn position as stated in paragraph 2.1.2.
2.5 2019/20 Budget Savings 2.5.1 The Council approved total savings of £1.957m which relates to the Chief Executive & Other Corporate Services. As at period 6 the Service anticipates £1.726m (88%) of its approved savings will be delivered by the financial year-end.
2.5.2 The unachievable savings of £0.231m has predominantly arisen as a result of delays in implementation. The Service is currently considering opportunities for alternative savings to manage this shortfall in year. It is envisaged that £0.099m of these savings will be fully achieved from 2020/21, with a potential recurring savings gap of £0.132m been identified. These are in relation to non-achievement of Advertising income in Strategic Communications, and delays in implementation of workforce changes in Legal & Democratic Solutions.
2.5.3 Appendix 5 provides further commentary regarding the challenging savings and the actions being taken to address the funding gap which has arisen.
2.6 Management Actions 2.6.1 The Service will take a range of corrective management actions to ensure it contains expenditure within its approved 2019/20 budget provision, including the close management of vacant posts and curtailment of non-essential expenditure.
3. Equality and Diversity
3.1 Fairer Scotland Duty There are no specific impacts to note. Page 93 of 197
3.2 Equality Impact Assessment There are no specific impacts to note.
4. Implications
4.1 Financial Impact Known burdens and pressures continue to be managed to ensure the service remains within the approved budget.
4.2 HR/Policy/Legislative Impact There are no HR/Policy/Legislative impacts linked to this report.
4.3 Environmental Impact There are no environmental impacts linked to this report.
4.4 Risk Impact All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels.
Reflecting the risk analysis matrix included within the Risk Management Strategy, the Service considers delays or amendments to savings proposals could present an ongoing risk to the financial outturn for 2019/20.
To minimise risk this report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. There are no significant financial risks which have been identified at this stage in the financial year, however this will continue to be closely monitored.
5. Measures of success
5.1 The Service continues to operate within approved budget resources.
6. Supporting documents
6.1 Appendix 1 Objective Summary Appendix 2 Subjective Summary Appendix 3 Payments to Other Bodies Appendix 4 Earmarked Reserves Appendix 5 Budget Savings
Elaine Kemp Head of Financial Solutions
Page 94 of 197
Appendix 1 Chief Executive & Other Corporate Services Revenue Budget Monitoring Report - Objective Analysis 1 April 2019 - 11 October 2019 Period 7
DIVISION OF SERVICE BUDGET ACTUAL YEAR TO DATE ANNUAL PROJECTED PROJECTED OUTTURN PERIOD ANALYSIS TO DATE TO DATE VARIANCE BUDGET OUTTURN VARIANCE % MOVEMENT (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
CHIEF EXECUTIVE 397,281 397,604 (324) ADV 837,507 827,476 10,031 FAV 1.2% 10,031
LEGAL & DEMOCRATIC SOLUTIONS 1,006,313 1,127,650 (121,337) ADV 1,944,105 2,176,809 (232,704) ADV (12.0%) (232,704) Primarily due to non-achievement and delay in achievement of approved savings, shortfall in turnover savings target, and additional costs being incurred AUDIT & INSPECTION 282,650 268,270 14,380 FAV 507,601 492,024 15,577 FAV 3.1% 15,577 FINANCIAL SOLUTIONS 7,048,385 6,467,028 581,357 FAV 36,489,597 35,606,777 882,820 FAV 2.4% 882,820 Increased turnover savings, underspend in overtime costs offset by one-off costs associated with structure review. Underspend in Insurance Fund costs due to review of insurance requirements. BUSINESS SOLUTIONS 6,141,586 6,282,991 (141,405) ADV 7,500,490 7,500,490 0 0.0% 0
PEOPLE & ORGANISATIONAL 3,652,941 4,195,135 (542,194) ADV 6,729,199 7,582,279 (853,080) ADV (12.7%) (853,080) Shortfall in turnover savings target, additional costs due DEVELOPMENT to delay in implementation of savings targets and increased ICT licence costs STRATEGIC COMMUNICATIONS 502,592 573,981 (71,388) ADV 769,659 967,307 (197,648) ADV (25.7%) (197,648) Primarily under-recovery of advertising income, and shortfall in turnover savings target OTHER CORPORATE SERVICES 1,199,453 1,183,081 16,372 FAV 3,293,978 2,918,974 375,004 FAV 11.4% 375,004 Primarily increased PPP income and underspends in pensions, superannuation and Members costs JOINT BOARDS 7,577,018 7,577,018 0 12,598,046 12,598,046 0 0.0% 0
TOTAL NET EXPENDITURE 27,808,220 28,072,758 (264,538) ADV 70,670,182 70,670,182 0 0.0% 0
FAV = Favourable variation, underspend etc ADV = Adverse variation, overspend etc
Page 95 of 197 Appendix 2 Chief Executive & Other Corporate Services Revenue Budget Monitoring Report - Subjective Analysis 1 April 2019 - 11 October 2019 Period 7
CATEGORY BUDGET ACTUAL YEAR TO DATE ANNUAL PROJECTED PROJECTED OUTTURN PERIOD ANALYSIS TO DATE TO DATE VARIANCE BUDGET OUTTURN VARIANCE % MOVEMENT (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
EMPLOYEE COSTS 14,017,037 14,163,287 (146,250) ADV 28,031,750 28,443,665 (411,915) ADV (1.5%) (499,349) Primarily additional costs being managed across service (£0.418m), unfunded posts (£0.107m), one-off costs associated with structure reviews (£0.115m) and increased pension costs (£0.054m) partly offset by increased turnover savings £0.242m and underspend on overtime £0.046m
PROPERTY COSTS 1,109,902 992,258 117,644 FAV 2,547,159 2,318,129 229,030 FAV 9.0% 234,377 Primarily underspend in property insurance costs of £0.250m
SUPPLIES & SERVICES 3,053,758 3,443,224 (389,466) ADV 5,667,872 6,184,248 (516,376) ADV (9.1%) (283,999) Increased expenditure on ICT licensing and maintenance costs £0.508m (iTrent licences and maintenance of £0.338m and legacy transformation IT contracts £0.178m)
TRANSPORT & PLANT 48,944 51,488 (2,545) ADV 222,901 222,934 (33) ADV (0.0%) (33)
ADMINISTRATION COSTS 3,525,861 3,378,257 147,604 FAV 8,545,258 8,203,943 341,315 FAV 4.0% 354,603 Primarily underspend in Insurance Fund of £0.500m, offset by increased expenditure on legacy IT project resources of £0.075m, Legal fees £0.028m, Members alarms £0.018m and Printing £0.038m (offset by increased income recovery below)
PAYMENTS TO OTHER BODIES 7,457,698 7,462,302 (4,604) ADV 14,569,216 14,576,013 (6,797) ADV (0.0%) (90)
TRANSFER PAYMENTS 46,783,812 46,783,812 0 119,241,711 119,241,711 0 0.0% 0
CAPITAL FINANCING COSTS 717,445 717,445 0 1,249,283 1,249,283 0 0.0% 0
OTHER EXPENDITURE 2,125,937 2,137,351 (11,414) ADV 3,944,954 3,955,410 (10,456) ADV (0.3%) (11,206)
TOTAL EXPENDITURE 78,840,394 79,129,425 (289,031) ADV 184,020,104 184,395,336 (375,232) ADV (0.2%) (205,697)
Primarily increased PPP income £0.338m, capital recharges £0.100m, other grant funding of £0.027m, ICT recharges of £0.037m, support recharges £0.048m and INCOME 51,032,175 51,056,667 24,493 FAV 113,349,922 113,725,153 375,230 FAV 0.3% 205,697 printing recharges £0.038m, partly offset by reduced fees and charges income £0.220m (advertising £0.170m, registration fees £0.020m & legal recharges £0.030m).
NET EXPENDITURE 27,808,220 28,072,758 (264,538) ADV 70,670,182 70,670,182 0 0.0% 0
FAV = Favourable variation, underspend etc ADV = Adverse variation, overspend, income under-recovery etc Page 96 of 197 Appendix 3 Chief Executive & Other Corporate Services Revenue Budget Monitoring Report - PTOB Analysis 1 April 2019 - 11 October 2019 Period 7
DESCRIPTION BUDGET ACTUAL YEAR TO DATE ANNUAL PROJECTED PROJECTED OUTTURN PERIOD TO DATE TO DATE VARIANCES BUDGET OUTTURN VARIANCE % MOVEMENT TYPICAL AREAS OF EXPENDITURE/ANALYSIS OF VARIATIONS (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Medical Fees 925 5,702 (4,778) ADV 8,359 13,137 (4,778) ADV (57.2%) (4,030) Increased medical costs
PTOB General 0 118 (118) ADV 730 848 (118) ADV (16.2%) 0 minor variance
Agency Fees 25,778 20,943 4,835 FAV 84,468 79,633 4,835 FAV 5.7% 4,890 Projected underspend to offset Disputes/Settlements costs
Town Twinning 4,811 4,790 21 FAV 9,033 9,012 21 FAV 0.2% 0
Childrens Panel 10,823 12,517 (1,694) ADV 25,035 25,035 0 0.0% 0
COSLA Annual Levy 186,586 188,393 (1,807) ADV 186,586 188,393 (1,807) ADV (1.0%) 0 COSLA actual costs higher than budgeted
Community Council Grants 13,015 13,015 0 25,000 25,000 0 0.0% 0
External Audit Fee 0 0 0 501,900 505,900 (4,000) ADV (0.8%) 0 Audit fees under accrued by 4k prior year
Election Provision 8,081 4,255 3,826 FAV 96,000 92,061 3,939 FAV 4.1% 3,939 Underspend in by-election costs
Tourism - Visit North Lanarkshire 0 0 0 37,000 37,000 0 0.0% 0
Disputes / Settlements 0 4,890 (4,890) ADV 0 4,890 (4,890) ADV 0.0% (4,890) Previous years settlement costs
CCG Invoices/Paypoint/Cash 861,353 861,353 0 1,835,051 1,835,051 0 0.0% 0
Crisis Invoices/Paypoint/Cash 0 0 0 781,139 781,139 0 0.0% 0
Sub-contractor Payments 0 0 0 1,869 1,869 0 0.0% 0
Local Tax Paypoint Commission 11,308 11,308 0 35,000 35,000 0 0.0% 0
COSLA Migration Scotland 150,000 150,000 0 150,000 150,000 0 0.0% 0
Lands Valuation Contribution 1,165,700 1,165,700 0 2,103,410 2,103,410 0 0.0% 0
SPT Contribution 2,710,638 2,710,638 0 5,421,275 5,421,275 0 0.0% 0
SPT Concessionary Fares Contribution 283,681 283,681 0 567,361 567,361 0 0.0% 0
Customer First Contribution 2,025,000 2,025,000 0 2,700,000 2,700,000 0 0.0% 0
TOTAL EXPENDITURE 7,457,698 7,462,302 (4,605) ADV 14,569,216 14,576,013 (6,797) ADV (0.0%) (91)
FAV = Favourable variation, underspend etc ADV = Adverse variation, overspend, income under-recovery etc Page 97 of 197
Appendix 4 Chief Executive & Other Corporate Services Status of Earmarked Resources 1 April 2019 - 11 October 2019 Period 7
2019/20 19/20 Projected Spend, Reserves Reserves Total Initial Adjustments Approved Spend to 2019/20 No Longer Required Description of Earmarked Resource Earmarked 19/20 Commentary regards usage in Year Reserve Date Required for Future Reserve Allocation Value % Total in 19/20 Years
Service Specific Earmarked Reserves:
Chip and Pin Equipment 46 46 0 46 32 46 100.00% 0 0
Flagship Events & Promotions 200 200 0 200 0 200 100.00% 0 0
Family Firm (4 Years) 492 164 0 164 47 164 100.00% 0 328
Digitisation 9,900 0 4,606 4,606 2,189 4,606 100.01% 0 5,294 £1.4m overspend in relation to Service Delivery ICT Licence, Support and Maintenance Contracts and £3.206m estimated spend regarding DNL Project.
Best Value Team 0 0 58 58 40 58 100.19% 0 0
Total 10,638 410 4,664 5,074 2,307 5,074 100.01% 0 5,680
Page 98 of 197 Appendix 5 Chief Executive & Other Corporate Services Challenging Budget Savings Monitoring Report Period 7
APPROVED SAVINGS REPLACEMENT SAVING/FUNDING Revised Gap in Target Value Savings Any Additional Information Description/Reference Approved Description Value Value Deliverable Gap Savings
£000 £000 £000 £000 £000
Approved Savings (February 2019)
Non achievement in implementation of savings. Rationalisation of Print and Mail Operations 53 21 32 0 32 Service currently investigating alternative saving options.
Delay in achievement due to increase in fees Recognition of National Statutory Marriage Fee effective from December 2019. Service currently 27 7 20 0 20 Increases investigating alternative saving options within year. Will be achieved in full for 2020/21
Non achievement due to delays in feasabilty Advertising 100 0 100 0 100 studies (this may remain unachievable after feasability is complete).
Review of the Administration and Members' Delay in achievement due to delays in staff leaving 36 27 9 0 9 Support staff posts. Will be achieved in full for 2020/21
Delay in Creditors Manger Leaving anticipated leaving date Dec 2019,1 SWF Processing Officer Review of Financial Solutions/Revenues & Benefits 233 174 59 post deduction not realised YTD. Gap covered by 59 0 reduction in SWF processing hours worked and saving in overtime budget
Reduction in Staff within People & Organisational Delay in achievement due to delays staff leaving 90 79 11 0 11 Development posts. Will be achieved in full for 2020/21
Total Chief Executive Savings 539 308 231 0 172
Total Savings 1,957 1,726 231 59 172
Page 99 of 197
Page 100 of 197 AGENDA ITEM 10B
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref EK/KS/VS/FC Date 27/11/19
Revenue Monitoring Report Council Summary 1 April to 11 October 2019 (Period 7)
From Elaine Kemp, Head of Financial Solutions Email [email protected] Telephone Fiona Carney, 01698 302402
Executive Summary This report updates Committee on the overall position for the General Fund Account, Housing Revenue Account and Adult Social Care for the financial year to 31 March 2020. The report consolidates the budget monitoring position of all Services, highlighting and explaining major variances as per the Council’s approved Financial Regulations.
The Council approved its General Fund Revenue Budget on 21 February 2019. Revised assumptions following the issue of Local Government Finance Circular 2/2019 in March 2019 and notification from Scottish Government of additional funding gives a revised budget of £762.942m. The Council is currently projecting a deficit of £0.351m against this budget.
The 2019/20 budget incorporates £27.666m of savings. It is projected that £25.070m of savings (91%) will be delivered within the financial year, with replacement savings of £2.424m identified to date leaving a shortfall of £0.172m.
Recommendations It is recommended that Committee:
(1) Note the financial position of the 2019/20 revenue budget;
(2) Note the contents of this report.
The Plan for North Lanarkshire Priority All priorities
Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
Page 101 of 197 1. Background
1.1. The Council’s approved Financial Regulations require Assistant Chief Executives to remain within their approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within their budget monitoring reports. Where significant deviations are identified, Assistant Chief Executives must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings.
2. Report
2.1. Summary of General Fund Financial Position 2.1.1. The Council approved the proposed General Fund Revenue Budget of £780.729m on 21 February 2019 which included spend which is offset by ring fenced grants of £33.501m, resulting in a Net Service Expenditure of £747.228m. The approved budget also included assumptions on a number of items of undistributed funding, which have been updated following the issue of Local Government Finance Circular 2/2019 in March 2019, resulting in a revised opening budget of £748.926m. The Scottish Government made a commitment to fund an element of the negotiated teachers’ pay agreement. However due to the uncertainty over the level of funding the Council only budgeted its share of the costs. The Scottish Government funding has now been announced at £13.966m, which is required to meet the increased salary costs being incurred. This along with additional funding in relation to Brexit preparations, brings the revised budget to £762.942m.
2.1.2. The Council approved a savings target of £13.830m on 21 February 2019. In addition to this, previously approved action identified savings totalling £13.836m to support the overall position, resulting in total savings for the year of £27.666m. Services currently anticipate £25.070m (91%) of the approved savings are achievable in the current financial year. Further detail can be found in Section 2.4 below.
2.1.3. Table 1 below summarises the projected income and expenditure position, which illustrates a deficit of £0.351m currently envisaged for the financial year.
Annual Projected Period 7 Period 4 Period 7 Budget Outturn Variance Movement £m £m £m Variance £m £m Expenditure Net Service Expenditure 762.942 763.293 (0.351) (0.727) +0.376 Income Aggregate External Finance 615.918 615.918 - - - Local Tax Collection 142.295 142.295 - - - Use of Balances 4.729 4.729 - - - Total Income 762.942 762.942 Projected variance : - (0.351) (0.351) (0.727) +0.376 surplus/(deficit) at 31 March 2020 Table 1
Page 102 of 197 2.2. Analysis of Significant Variations 2.2.1. Table 2 below illustrates Services’ projected outturn financial positions, with additional information also available within Appendix 1 and paragraph 2.2.2 below.
Service P7 Outturn P4 Outturn P7 (£m) (£m) Movement (£m) Education and Families (0.901) Overspend (1.177) Overspend +0.276
Enterprise and Communities - On Budget - On Budget -
Social Work (Non-Integrated) - On Budget - On Budget -
Chief Executives and Other - On Budget - On Budget - Corporate Services External Trading Activity - On Budget - On Budget -
Executive Services Total (0.901) Overspend (1.177) Overspend +0.276
Loan Charges 0.700 Underspend 0.600 Underspend +0.100
Interest on Revenue Balances (0.150) Under- (0.150) Under- - recovery recovery
Total (0.351) Overspend (0.727) Overspend +0.376
Table 2
2.2.2. Education and Families are projecting an overall overspend of £0.901m, which is a movement of £0.276m from the reported position at period 4. The movement is primarily as a result of increased employee cost underspends (£1.209m), partially offset by an increased overspend in Payments to Other Bodies (£0.826m). The projected outturn variance mainly reflects an anticipated overspend of £1.290m within Transport Costs arising from the increased cost of providing demand led ASN transport and consortium travel for secondary pupils. In addition, the demand for fostering and kinship payments has increased coupled with ongoing demand pressure for external pupil placements resulting in a net overspend within Payments to other Bodies of £1.592m. Both these overspends have been partially offset by an anticipated employee cost net underspend of £1.678m, expected from lower than anticipated uptake of 2 year old nursery provision and synergies associated with grant funded programmes. Within this overall position, there are £1.454m of unachieved savings which have predominantly arisen as a result of temporary timing delays in implementing new staffing structures and phased implementation of savings to reflect the academic year. The Service management team has implemented a range of management initiatives to mitigate the current financial position and the impact of these actions will be incorporated within future reports.
2.2.3. Enterprise and Communities are currently projecting on budget, however within this position there are a number of compensating over and underspends. Within employee costs there is a net overspend of £0.676m as a result of a delay in the VRS process partially offset by vacancy savings. In addition, there are timing delays in the achievement of asset management and procurement savings within Asset and Procurement Solutions (£0.207m and £0.100m), and a delay in achieving savings in respect of lease costs and fleet reductions has resulted in increased transport costs within Fleet of £0.516m. These overspends are offset by lower demand for private sector housing grants (£0.300m), management action including the reduction of repairs spend, and increased income of £1.268m across the service. Page 103 of 197 2.2.4. Chief Executives and Other Corporate Services is reporting on budget. However there is currently an anticipated overspend within employee costs of £0.412m primarily due to a delay in the achievement of savings and further structure review costs which are partially offset by increased turnover savings. The Service has also incurred additional ICT licencing and maintenance costs of £0.508m, mainly arising from one off costs in relation to the iTrent contract. These overspends are currently being managed within the Service through increased PPP volume discount income of £0.338m and reduced insurance costs of £0.750m. The reduced insurance costs will result in a recurring saving going forward.
2.2.5. Prudent management of the Council’s borrowing is expected to result in a year end surplus of £0.550m. Within this position are savings on loan charges of £0.700m, which is partially offset by an under-recovery in interest on revenue balances of £0.150m as a result of the reduced loans pool rate.
2.3. Earmarked Reserves and Change Management Fund 2.3.1. The Council’s annual accounts highlight a General Fund reserve balance of £44.372m. This balance includes £8m for the Contingency Reserve and a total of £31.008m earmarked for specific future commitments including £4.729m to support the overall 2019/20 revenue budget position. The remaining £5.364m was allocated to the Change Management Fund (CMF) to support future emerging issues. To date, £0.743m of this has been earmarked from CMF including £0.440m to address an outstanding legal dispute, £0.245m to fund the 2019/20 costs of an Environmental Improvement Taskforce and £0.058m to continue support for Best Value posts within Business Solutions. These allocations result in revised Earmarked Reserves and Change Management Fund balances of £31.751m and £4.621m respectively.
2.3.2. A summary position is shown in appendix 2 which includes use of reserves across a number of years. A total of £23.553m has been profiled for use in 2019/20 and the balance of £8.198 profiled for future years. As at period 7, projected use of reserves in 2019/20 is £23.324m, with the remaining £0.229m required for use in future years. All earmarked reserve balances will continue to be closely monitored and reported to future meetings of the Committee.
2.3.3. Recognising the current forecast overspend of £0.351m, together with other anticipated movements including £4.506m drawdown from the capital fund, it is expected that by the end of the financial year the balance on the Change Management Fund will reach £9.376m. The detail of this balance is shown at Appendix 3.
2.4. 2019/20 Budget Savings 2.4.1. The approved 2019/20 budget includes savings of £27.666m as detailed in paragraph 2.1.2 above, with progress on implementation of these included within the relevant Services’ monitoring report. It is anticipated that £25.070m (91%) of these will be achieved in the current financial year, leaving an in-year savings gap of £2.596m. Replacement savings of £2.424m have been identified leaving a revised gap of £0.172m which is not considered achievable in the current financial year.
2.5. Risks and Uncertainty 2.5.1. All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy (June 2018), Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels.
Page 104 of 197 2.6. Housing Revenue Account 2.6.1. The Housing Revenue Account is projecting a year-end surplus of £0.121m primarily due to savings within capital financing costs of £0.500m and void rent loss of £0.050m, which are partially offset by an overspend in housing repair call charges of £0.346m and an under recovery in garage rental income of £0.083m. Further information regarding the financial performance is reported to Communities and Housing Committee.
2.7. Adult Health and Social Care 2.7.1. Council Adult Health and Social Care provision to the Integration Joint Board (IJB) is currently anticipating a full year overspend of £4.004m. The Service is facing demand pressure across key functions such as Self Directed Support (SDS) and placements in Independent Care homes (£2.378m and £3.239m respectively), which are partially offset by underspends currently projected within administration costs of £1.983m in relation to these areas. There has also been increased demand for homecare met through local authority staffing provision, resulting in an overspend in employee costs of £0.874m, which is partially offset by reduced payments to independent homecare providers of £0.269m. The outturn represents a favourable movement of £0.602m from that reported at Period 4, primarily as a result of recently agreed contributions from NHS Lanarkshire in relation to an SDS care package, reduced employee cost overspend, and increased administration cost underspend partially offset by increased SDS overspend.
2.7.2. The Adult Social Care management team will continue to review and implement management action and initiatives, with the aim of reducing the projected overspend. This action will include vacancy management, curtailment of non-essential expenditure, maximising income/grant. In conjunction with partners there will be further assessment of options to mitigate demand led pressure.
3. Equality and Diversity
3.1. Fairer Scotland Duty There is no specific impact in relation to Fairer Scotland.
3.2. Equality Impact Assessment There is no specific Equality Impact Assessment required.
4. Implications
4.1. Financial Impact There is no financial impact resulting from the contents of this report.
4.2. HR/Policy/Legislative Impact There are no HR Policy or Legislative impact resulting from the contents of this report.
4.3. Environmental Impact There is no environmental impact linked to this report.
4.4. Risk Impact There is no risk impact linked to this report.
5. Measures of success
5.1. The Council continues to operate within approved budgeted resources.
Page 105 of 197 6. Supporting documents
Appendix 1 Summary by Division Appendix 2 Anticipated Commitments – Earmarked Reserves Appendix 3 Availability of One Off Funds – Change Management Fund
Elaine Kemp Head of Financial Solutions
Page 106 of 197
Page 107 of 197
Page 108 of 197 Appendix 3 NORTH LANARKSHIRE COUNCIL AVAILABILITY OF ONE-OFF FUNDS AS AT 11 October 2019 (PERIOD 7)
Change Management Fund £000 £000 Unallocated balance from 2018/19 5,364 Less: Legal Dispute (440) Environmental Task Force (245) Business Solutions Additional Posts (58) (743)
Current unallocated balance 4,621
Add: 2019/20 drawdown from Capital Fund 4,506 Transfer from TCA 600 5,106 Less: Period 7 reported overspend (351) (351) Total Unallocated Change Management Fund 2019/20 9,376 Planned 2020/21 Drawdown from Capital Fund 930 Anticipated One-Off Change Management Fund for use in 2020/21 10,306
Page 109 of 197
Page 110 of 197 AGENDA ITEM 11
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref EK/KS/JQ Date 27/11/19
Capital Programme 2019/20 Monitoring Report 1 April to 11 October 2019 (Period 7)
From Elaine Kemp, Head of Financial Solutions Email [email protected] Telephone 01698 302408
Executive Summary The purpose of the report is to provide an update on the 2019/20 resources and expenditure for the Council's Capital Programmes. The report also shows the 2019/20 provisional outturn position and the resultant variances.
Recommendations It is recommended that the Committee notes the financial position of the Council’s Capital Programmes as at 11 October 2019.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
Page 111 of 197 1. Background
1.1 The Council General Fund Capital Investment Programme supported by General Fund resources incorporates a number of components including the Composite Service Core Investment Programme, Hub Campuses including the continuation of SC21 projects and the Early Years Expansion, Enterprise Projects including City Deal, and the Community Investment Fund. In addition, the Housing Revenue Account (HRA) resources support a number of HRA Capital Investment Programmes including Mainstream, New Build and Council Buy Back scheme.
1.2 The 2019/2020 General Fund Capital Investment programme is currently £95.165m with a £95.710m investment programme in relation to HRA capital projects. The budget reflects decisions made at the Strategic Capital Delivery Group (SCDG) in accordance with the SCDG terms of reference and where appropriate either by the individual service committees, Finance and Resources Committee or the Policy and Strategy Committee per the Scheme of Administration. Appendix 1 provides a breakdown of the overall 2019/20 budget by Service/ Programme and associated approved budget movements.
2. Report
2.1 Overall Council Capital Programme 2.1.1 The overall Council capital programme for 2019/20 and the projected outturn as at 11 October 2019 (Period 7) is summarised in Table 1 below:
Capital Programme Summary 2019/20
Investment
Current Projected Outturn Programme Outturn Variance £000s £000s £000s Composite Service Core Investment 64,278 64,278 0 Hub Campuses 13,069 13,069 0 Enterprise Projects 3,818 3,818 0 Community Investment Fund 14,000 4,000 10,000 Sub - Total General Fund Investment 95,165 85,165 10,000
HRA Total HRA Investment 95,710 90,500 5,210
Total Council Programme 190,875 175,665 15,210 Resources:
External Grants & Contributions 74,162 68,645 (5,517) Capital Receipts 4,525 930 (3,595) Capital Receipts - Transfer to Capital (4,525) (930) 3,595 Fund Capital Receipts - HRA 0 37 37 CFCR 27,178 27,178 0 Borrowing Requirement: General Fund Investment 36,079 26,079 (10,000) HRA Investment 53,456 53,726 270
Total Resources 190,875 175,665 (15,210) Table 1- Overall Council Capital Programme 2019/20 Page 112 of 197 2.1.2 On a budgeted programme of £190.875m an under spend of £15.210m is currently anticipated. Further financial performance information regarding each of the programmes is discussed in paragraphs 2.2 to 2.4 below.
2.2 General Fund Capital Programme and Projected Outturn by Service/ Programme 2.2.1 The financial performance of the overall General Fund Investment programme as at 11 October 2019 is detailed in Appendix 2 and summarised below.
Resources 2.2.2 Based on the revised programme of £95.165m approved by the SCDG, at period 7 the level of resources required to meet the current programme is projected to be £10.000m less than budget.
2.2.3 In 2019/20 total external grants and contributions of £63.273m are anticipated to be received, of which £59.054m will be applied to the General Fund investment programme in the current year as per Appendix 2. The balance of £4.219m unapplied grant being carried forward to be used in 2020/21. This reflects known commitments from outside bodies to provide capital funding primarily from the Scottish Government General Capital Grant of £36.000m and other specific Scottish Government Grants including VDLF £3.723m, Town Centre Fund Capital Grant of £3.750m, Early Years Expansion Programme £7.700m and £3.282m for Enterprise Projects.
2.2.4 Receipts from the sale of assets support the General fund investment programme. The 2019/20 Capital receipts budget is £4.525m and is projected to be £3.595m less than anticipated due to asset sales not expected to be completed in the current financial year plus additional remediation costs which have recently been identified. These receipts will continue to be closely monitored throughout the financial year. In accordance with previous approvals the anticipated £0.930m receipts will be transferred to the Capital Fund with the intention to draw down from this into revenue during 2020/21.
2.2.5 Appendix 2 indicates a requirement to borrow £26.079m to support the overall general fund programme and reflects the net 2019/20 movements in the acceleration/re- profiling of projects and additional resources in the general fund programme.
Expenditure 2.2.6 Actual expenditure for the 2019/20 General Fund investment programme to 11 October 2019 is £26.609m and committed expenditure is £52.108m, which represents 61.18% of the total projected spend of £85.165m Further analysis by service/ programme on projected outturn, actual expenditure and commitment to date are contained within Appendix 2, as follows:
Enterprise and Communities 2.2.7 The projected out-turn of £55.363m for Enterprise and Communities is forecast to be in line with budget, reflecting the decision of the SCDG meeting on 7 October 2019 to accelerate/re-profile project budgets and the additional resources available, highlighted within the budget movements summary per Appendix 1.
2.2.8 Expenditure at the end of period 7 is £22.194m which mainly relates to expenditure in relation to Roads (£4.296m), Street Lighting (£2.069m), Vehicles Plant & Equipment (£2.277m), Local Development Plan (£1.702m) Civic Centre Refurbishment (£1.377m) and Re-wiring Contracts (£1.399m).
Page 113 of 197 Chief Executives: Business Solutions 2.2.9 Business Solutions is forecasting total expenditure in relation to the capital projects of £6.275m which is in line with budget. Expenditure at the end of period 7 is £0.633m and is forecasting a break-even position at this stage of the financial year reflecting a number of management actions taken through the Strategic Capital Delivery Group to date and expected future proposals.
Social Work 2.2.10 Social Work is forecasting total expenditure of £2.640m, which is in line with budget, with expenditure at period 7 being £1.003m.
Hub Campuses 2.2.11 The Hub campuses theme incorporates the continuation of the SC21 and Early Years Expansion programme. Actual expenditure across these areas to 11 October 2019 is £2.215m and committed expenditure is £4.862m which represents 37.20% of the projected targeted spend of £13.069m. An analysis of actual expenditure and commitment to date regarding the 2 main programmes is as follows;
Continuation of SC21 Projects (Phase 2& 3) 2.2.12 Projects in relation to SC21 phase 2 and 3 approvals, are forecasting total expenditure of £5.369m for 2019/20, with no significant variances to note, with expenditure expected to be on target, reflecting the decision of the SCDG meeting on 7 October 2019. This is shown within the budget movements summary in Appendix 1 with actual expenditure at period 7 of £1.844m.
Early Years Expansion 2.2.13 In 2019/20, there is a forecast total expenditure of £7.700m in relation to the early years expansion, with no significant variances, the spend expected to be on target. Actual expenditure at period 7 is £0.371m.
Enterprise Projects 2.2.14 Enterprise projects primarily incorporate projects in relation to the City Deal which includes Pan Lanarkshire, A8/M8 improvements and other projects including Motherwell Park and Ride works. Actual expenditure across these areas to 11 October 2019 is £0.564m and committed expenditure is £1.854m, which represents 48.56% of the projected targeted spend of £3.818m.
Community Investment Fund (CIF) 2.2.15 The CIF to support new investment over and above the Council core composite and other capital programmes. An initial capital investment of £14.000m has been approved in 2019/20, and work continues to establish priorities for this fund in line with The Plan for North Lanarkshire. This programme is in the early stages of development with a CIF sub-group established and the terms of reference and governance framework recently approved by the SCDG meeting on 7 October 2019. To ensure there is robust governance arrangements around the allocation of this fund and to give full consideration is given to key investment priorities it currently anticipated there will be and underspend £10.000m.
2.3 HRA Capital Programme & Projected Outturn 2.3.1 The financial performance of the HRA Capital Programme is reported in detail to the Communities & Housing Committee. A commitment of £81.131m is currently reported, which is 89.65% of the projected outturn. As at period 7 expenditure of £39.498m has been incurred. A summary of performance as at 11 October 2019 is provided at Appendix 3.
2.3.2 An under spend of £5.210m, which relates to the mainstream programme, is currently projected against a total programme of £63.450m.This has resulted in a reduction in Page 114 of 197 borrowing requirement of £5.247m for this programme including the additional £0.037m in capital receipts.
2.3.3 For the new build programme, it is anticipated that expenditure will be on target. However, the resource mix has been amended to reflect the current qualifying expenditure for grant purposes, with government grants of £5.517m being replaced by an equivalent amount of additional borrowing with these grants available for use in 2020/21 with a resultant reduction in borrowing in this year.
2.2.4 The HRA buyback scheme is on target with a projected spend of £12.500m.
2.4 Service Virement Requests 2.4.1 All approved Service virement requests have been incorporated into Appendix 1 with no requests pending.
3. Equality and Diversity
3.1 Fairer Scotland Duty There are no specific impacts on Fairer Scotland.
3.2 Equality Impact Assessment There are specific equality impact assessments to note.
4. Implications
4.1 Financial Impact There is no financial impact as a result of the contents of this report.
4.2 HR/Policy/Legislative Impact There is no HR/Policy/Legislative impact as a result of the contents of this report.
4.3 Environmental Impact There is no environmental impact as a result of the contents of this report.
4.4 Risk Impact There is no risk impact as a result of the contents of this report.
5. Measures of success
5.1 N/A
6. Supporting documents
6.1 Appendix 1 Council Capital Programme 2019/20 budget movements Appendix 2 General Fund Investment Programme Summary 2019/20 – as at 11 October 2019 (Period 7) Appendix 3 HRA Capital Investment Programme Summary 2019/20 – as at 11 October 2019 (Period 7)
Elaine Kemp Head of Financial Solutions Page 115 of 197 2019/20 Council Capital Programme – budget movements Appendix 1
Chief Exec - Community Total Enterprise & Social Hub Enterprise Overall Business Investment General HRA Capital Communities Work Campuses Projects Programme Solutions Fund Fund £000s £000s £000s £000s £000s £000s £000s £000s £000s 2019/20 Opening programme 36,749 7,920 2,418 13,905 14,000 3,293 78,285 95,710 173,995 Additions; New Programmes - - - - - 450 450 0 450 Budget Reductions (200) - - - - - (200) 0 (200) Impact of SCDG approvals in 2018/19 7,283 379 249 - - - 7,911 0 7,911 2018/19 carry forwards (912) (64) (27) - - - (1,003) 0 (1,003) 19/20 acceleration of projects from future 7,828 600 - - - - 8,428 0 8,428 years 19/20 re-profiling of projects to future years (11,149) (2,596) - (836) - - (14,581) 0 (14,581) Additional Resources 15,839 36 - - - - 15,875 0 15,875 Budget Transfers (75) - - - - 75 0 0 0 Revised Capital Programme 2019/20 55,363 6,275 2,640 13,069 14,000 3,818 95,165 95,710 190,875
Page 116 of 197 General Fund Investment Programme Summary 2019/20 - as at 11 October 2019 (Period 7) Appendix 2
Investment Current Projected Outturn Committed Committed Actual Programme Outturn Variance Expenditure Expenditure % Expenditure 2019/20 2019/20 2019/20 @ P7 of Projected @ P7 £000s £000s £000s £000s Outturn £000s
Enterprise & Communities 55,363 55,363 0 38,746 69.99% 22,194 Chief Executives: Business Solutions 6,275 6,275 0 5,576 88.86% 633 Social Work 2,640 2,640 0 1,070 40.53% 1,003 Sub - Total Composite Core Investment 64,278 64,278 0 45,392 70.62% 23,830
SC21 - Phase 2 & 3 5,369 5,369 0 4,322 80.50% 1,844 Early Years Expansion 7,700 7,700 0 540 7.01% 371 Sub - Total Hub Campuses 13,069 13,069 0 4,862 37.20% 2,215
City Deal 3,293 3,293 0 1,329 40.36% 501 Motherwell Park & Ride 525 525 0 525 100.00% 63 Sub - Total Enterprise Projects 3,818 3,818 0 1,854 48.56% 564
Community Investment Fund 14,000 4,000 10,000 0 0.00% 0
Total General Fund Investment 95,165 85,165 10,000 52,108 61.18% 26,609
General Fund Resources; External Grants & Contributions 59,054 59,054 0 CFCR 32 32 0 Capital Receipts 4,525 930 (3,595) Capital Receipts - Transfer to Capital Fund (4,525) (930) 3,595 Sub -Total Resources Exc.Borrowing 59,086 59,086 0
Borrowing Requirement: Composite Core Investment 11,724 15,319 3,595 Add'l due to receipts to capital fund 4,525 930 (3,595) SC21 Phase 2 & 3 5,369 5,369 0 Community Investment Fund 14,000 4,000 (10,000) City Deal (14%) 461 461 0 Sub - Total Borrowing Requirement 36,079 26,079 (10,000)
Total Resources 95,165 85,165 (10,000) Page 117 of 197 HRA Capital Investment Programme Summary 2019/20 - as at 11 October 2019 (Period 7) Appendix 3
Investment Current Projected Outturn Committed Committed Actual Programme Outturn Variance Expenditure Expenditure Expenditure 2019/20 2019/20 2019/20 @ P7 % of Projected @ P7 £000s £000s £000s £000s Outturn £000s Mainstream Programme 63,450 58,240 5,210 55,038 94.50% 28,634 New Build Programme 19,760 19,760 0 17,800 90.08% 6,050 Council Buy Back Scheme 12,500 12,500 0 8,293 66.34% 4,814 Total HRA Investment 95,710 90,500 5,210 81,131 89.65% 39,498
HRA Capital Resources; External Grants & Contributions 15,108 9,591 (5,517) CFCR 27,146 27,146 0 Capital Receipts 0 37 37 Sub - Total Resources exc. Borrowing 42,254 36,774 (5,480) Borrowing Requirement: HRA - Mainstream 40,974 35,727 (5,247) HRA - New Build 1,482 6,999 5,517 HRA - Buyback Scheme 11,000 11,000 0
Sub - Total Borrowing Requirement 53,456 53,726 270
Total Resources 95,710 90,500 (5,210)
Page 118 of 197 AGENDA ITEM 12
North Lanarkshire Council Report Finance & Resources Committee
☐approval ☒noting Ref JQ/EK Date 06/11/19
Treasury Management Monitoring Report for quarter ended 30 September 2019
From Elaine Kemp, Head of Financial Solutions Joseph Quinn, Finance Email [email protected] Telephone Manager, 01698 302061
Executive Summary This report fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. It informs on the quarterly Treasury Management activity for the period 1 April 2019 to 30 September 2019 and compliance with the mandatory treasury and prudential indicators encompassing a mid-year review and compliance with the mandatory treasury and prudential indicators.
Recommendations It is recommended that Committee note the Treasury Management Activity for the quarter ended 30 September 2019 including the positive performance against the key treasury and prudential indicators.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
Page 119 of 197 1. Background
1.1 The Council manages its treasury activities in line with the CIPFA Code ‘‘Treasury Management in the Public Services’. The Code requires the Council to produce reports on its Treasury Management policies, practices and activities on a regular and ongoing basis. The Council fulfils these obligations in part by the preparation of a Treasury Management Monitoring report produced on a quarterly basis contained herein encompassing a mid-year review.
1.2 The Treasury activity undertaken in the second quarter of 2019/20 reflects the key requirements of the Council’s 2019/20 Treasury Management Strategy, with the Public Works Loan Board and Long-term Money Market being the prime source of long-term funds. In terms of investment activity, this is conducted in accordance within the approved 2019/20 investment strategy.
2. Report
2.1 Summary Position 2.1.1 The net overall borrowing position to 30 September 2019 is £843.8m, this representing an increase of £38.4m from the position at the 30 June 2019 with a detailed breakdown of the net cash movement shown in column (6) within Appendix 1.
2.2 Borrowing 2.2.1 At the end of the quarter, total external debt amounted to £907.4m which represented an increase of £85.2m. This was partially due to an increase in net long term borrowing of £50.5m, with new PWLB loans totalling £60.0m undertaken, offset by £8.5m of PWLB debt and £1.0m of Money Market loans falling due for repayment within the quarter. There was also a small reduction of almost £0.7m in the municipal bank balances available to the Council and whilst there was temporary borrowing activity, there was no movement overall in the opening and closing balance as temporary loans were repaid of £69.5m which were matched by new temporary loans of an equivalent amount.
2.2.2 Another significant contributory factor to the £85.2m increase in total external debt was the increase in long term liabilities. In July 2019 Cumbernauld Academy was opened which was financed under a Subhubco/DBFM structure in conjunction with the private sector and the Scottish Futures Trust. This will be accounted for by the Council as credit arrangement and treated as a long term liability under the Prudential Code arrangements and £36.9m has therefore been included within the balances for long term liabilities at 30 September 2019.
2.2.3 There was also £1.5m in lease payments under existing finance lease and PPP obligations that fell due for repayment under the leasing arrangements in place, with long term liabilities amounting to £180.9m at 30 September 2019.
2.2.4 During the quarter PWLB interest rates moved downward to the lowest levels they had been in the previous 12 months, linked closely to the turbulence in the external environment due to the Brexit uncertainty related to the withdrawal agreement. The Council therefore sourced £60.0m of loans from the PWLB in 2 tranches, £40m on the 6 August 2019 at an average rate of 1.33% and £20m at an average rate of 1.23% on the 27 September 2019, both loans repayable over a 15 to 20 year time horizon. All loans repayable on an equal instalment basis, providing a smoother debt maturity profile and spreading the refinancing risk. The interest rate achieved was below budgeted levels anticipated.
Page 120 of 197
2.2.5 Throughout this monitoring period the approach to borrowing was in line with the approved strategy, the Council sourcing long-term borrowing, taking advantage of temporary (short-term) borrowing at attractive rates and internal cash balances being used to meet the principal repayments, daily revenue account requirements and the capital financing requirement in lieu of future borrowing for capital purposes. The strategy adopted reflecting interest rate forecasts, the management of carrying costs and the retention of cash balances at appropriate levels managing the associated investment, interest and liquidity risk.
2.2.6 In September 2019, the Council made a successful application to the PWLB to access the certainty rate which allows a 20 basis point (bps) (0.2%) discount on loans from the Public Works Loan Board (PWLB) under the prudential borrowing regime. This will continue to provide the Council with an opportunity to borrow from the PWLB at more beneficial rates until October 2020 and beyond subject to a further successful application.
2.2.7 The Council, following a successful application to the PWLB, will receive a further discount of 0.20% on future borrowing of up to £8.3m. This reduced rate known as the infrastructure rate, is available for financial years 2021/22 (£4.0m), 2022/23 (£3.0m) and 23/24 (£1.3m).
2.2.8 However on 9 October 2019, the Council was notified of a change to the interest rate terms on offer from the PWLB. Prior to the announcement PWLB lending was generally available at 80bps (0.80%) above UK gilt prices. Following this action, the margin that applies to new loans from the PWLB has been increased by an additional 100bps (1%) above gilts.
2.2.9 In the light of the increased PWLB interest rates on offer and the potential uplift of borrowing costs and impact on capital investment plans, the Council will review its current borrowing strategy looking to mitigate the immediate impact. This may include, reviewing short term borrowing approach and consideration of alternative funding sources available from banks, pension funds and other institutional investors as their terms may now become more attractive to the Council.
2.3 Debt Restructuring 2.3.1 During the quarter under review, in conjunction with our Treasury advisors, we monitored the economic climate in relation to our financial targets and Treasury Management strategy. The interest rates prevailing throughout the period resulted in no beneficial opportunities for debt restructuring /rescheduling of the PWLB debt portfolio arising.
2.3.2 Further reports regarding future activity will be presented to Committee as appropriate.
2.4 Investments 2.4.1 At the end of the second quarter of 2019/20, there was an increase of £46.8m in cash and cash equivalents with £42.8m in relation to an increase in short term investments held, with approximately £241.0m of short-term investments maturing being met by new short-term investments of £283.8, as shown within column 6 of the attached Appendix 1.
2.4.2 The increase in balance of funds available for investment resulting from the long term borrowing being undertaken and the prudent management of liquidity, to meet current commitments and future cash demands, based on the latest cashflow
Page 121 of 197 projections, with cash balances held being invested securely in line with Councils investment strategy.
2.4.3 At the end of the quarter the bank overdraft including cash in transit totalled £11.3m. The bank overdraft at 30 September 2019 comprised £11.1m of net BACS receipts/payments outstanding due for clearance within 3 days of the quarter end date and cheques unpresented of £0.5m, offset by an equivalent balance of £0.3m of cash in transit.
2.4.4 The Council in line with the approved strategy to manage liquidity maintained a minimum balance of £3.0m available on an overnight basis (instant access) ensuring that the Council maintained the necessary prudent level of funds to meet all service objectives.
2.4.5 During the quarter there has been no significant uplift in average short term rates and they continue to offer minimal returns with no noticeable difference between the 7 day and 1 month LIBID (London Inter-bank Bid Rate) rate and generally available investment rates offered by financial institutions and money market funds.
2.4.6 The Council continues to demonstrate good performance levels in investment activity, and continues to regularly outperform the 7 day and 1 month LIBID (London Inter-bank Bid Rate) rate.
2.4.7 The Treasury Management team continues to take a prudent approach to investing surplus funds in line with the approved 2019/20 Investment Strategy. The primary principle governing Council investment criteria being the security of the investment followed by ensuring sufficient liquidity in its investments.
Non Treasury Management Investments 2.4.8 During the quarter £0.3m invested with Hub South West in connection with the Cumbernauld Academy DBFM, relating to the facility currently held in the form of a bridging loan facility, earned interest of £0.003m. This was capitalised per the terms of the loan agreement and increased the balance of third party advances.
2.4.9 This was offset by a re-imbursement of £0.005m, in respect of the £0.9m invested with Hub South West in connection with the Greenfaulds High School DBFM. Per the terms of the subordinated debt agreement, repayments of both principal and interest are received half yearly on March and September on an annuity basis.
2.4.10 In addition, a repayment of £0.033m was made in respect of the third party advance of £0.805m, made in 2018/19 to NLL Ltd, to provide cashflow support. This advance will be repaid over 5 years and permissible under the approved Treasury Management Investment Strategy.
2.5 Interest Rate Movements 2.5.1 During the quarter under review, the Bank Rate remained at 0.75%.This rate was unchanged following the monthly meetings of the Monetary Policy Committee (MPC) in July, August, and September 2019. As a result during the second quarter there continued to be very little movement in the short term 7 day LIBID rate, around the 0.69% mark. The deterioration in global activity and sentiment confirmed that monetary policy decisions related to Brexit could be in either direction depending on whether or not a deal is ultimately reached by 31st October.
Page 122 of 197 2.5.2 With politics, both home and abroad, continuing to be a big driver of financial markets over the last quarter and the deterioration in the wider economic environment, compounded by Brexit-related uncertainty, the speech by the Bank of England Governor Mark Carney during the quarter, in early July, signalled a major shift to the Bank’s rhetoric. This has increased the possibility of interest rate cuts, rather the Bank’s erstwhile ‘gradual and limited’ rate hike guidance.
2.5.3 Sporadic movements in supply and demand for UK gilts heavily influence the gilt prices and yields, with corresponding movements up or down in the PWLB interest rates reflecting the perception of improved stability or increased uncertainty in other non UK financial markets respectively.
2.5.4 During the quarter under review, there was a reduction in long term rates, with the PWLB 10 year borrowing rate having a 0.55% spread between the highest and lowest interest rate available throughout the quarter which were 1.88% and 1.33% respectively, averaging 1.62% throughout the quarter.
2.5.5 The Treasury Management Section will continue to monitor financial and economic policy and their impact upon the Council’s investment and borrowing activity.
2.6 The Prudential Code for Capital Finance in Local Authorities 2.6.1 The Local Government in Scotland Act 2003 requires the Council to undertake its Treasury activities with regard to the Prudential Code for Capital Finance in Local Authorities.
2.6.2 Committee, at its meeting on 13 March 2019, approved a report titled, “Treasury Management Strategy 2019/2020 and Treasury and Prudential Indicators 2019/2020 to 2021/2022”. This report detailed a variety of mandatory and local indicators aimed at assisting members to determine that proposed capital investment levels and treasury management decisions satisfied the key requirements of affordability, prudence and sustainability. Performance against key prudential indicators for 2019/20 to date is detailed within Appendix 2.
2.6.3 Committee will wish to note the following salient points:- (i) Indicator 1(a) illustrates that investment on capital expenditure is lower than anticipated due to a reprofiling of projects within the 2019/20 capital programme since the TM strategy was approved in February 2019. This is monitored in detail as part of the Council's capital programme reporting mechanisms. Similarly the mix of resources used to finance the capital expenditure in 2019/20 is expected to vary from the initial estimates. The anticipated level of in-year borrowing is anticipated to be lower by £13.2m reflecting the reduced capital expenditure with the level of borrowing also adjusted to reflect the decision to transfer £3.2m of capital receipts to the Capital Fund and lower capital grants and external contributions of £0.8m.
(ii) The Prudential Code requires the Council’s capital investment to be affordable and prudent. To demonstrate this, a Prudential Margin (the need to borrow versus actual borrowing) is calculated. Indicator 1(b) demonstrates a healthy prudential margin at the 30 September 2019. The timing and profile of external borrowing to replenish cash reserves and balances are being managed giving full consideration to liquidity, interest rate and refinancing risk whilst minimising the potential carrying costs.
Page 123 of 197 (iii) Indicator 2 illustrates that both the overall authorised and operational borrowing limits for borrowing and long term liabilities have not been exceeded, with the maximum borrowing undertaken within the period being well below the approved boundaries.
(iv) Indicator 3(a) highlights the proportion of external interest payable by the Council which is fixed and external interest payable which may vary over the term of the borrowing and which exposes the Council to the effects of interest rate changes. At the 30 September 2019 the level of borrowing subject to variability is deemed to be within acceptable levels.
(v) Indicator 3(b) highlights a projected loan charge saving of almost £1.29m compared to the prudential estimates for 2019/20. This projection taking into account both the treasury management activity and the annuity based loans fund accounting requirements.
(vi) A treasury management saving of £1.64m is projected, £0.95m for General Fund and £0.69m for HRA. This saving reflecting the cashflow management techniques adopted, directing the timing of new borrowing, managing investment security, liquidity and interest rate risk and the identification of short term borrowing opportunities. This resulting in reduced loans fund interest payments and expenses.
(vii) Per the annuity based loans fund accounting requirements the schedule for capital advances repayment has been re-calculated to reflect the savings in interest payments and the impact on the loans fund interest annuity rate. Due to the intricacies of the annuity accounting model this results in a net increase of £0.35m in capital advances due for repayment by services from their revenue resources which is split £0.25m for the General Fund and £0.10m for HRA. The primary reason for this increase, being the average capital repayment profile over the asset life, being shorter than anticipated for assets acquired during 2018/19.
(viii) Indicator 3(c) relates to the level of fixed debt due to mature within time periods. The level of debt maturing remains within the upper limits set for each category at the beginning of the financial year.
3. Equality and Diversity
3.1 Fairer Scotland There are no specific impacts on Fairer Scotland.
3.2 Equality Impact Assessment There are no specific Equality Impact Assessments to note.
4. Implications
4.1 Financial Impact The financial impact is contained within the body of the report.
4.2 HR/Policy/Legislative Impact There are no HR/Policy/Legislative impacts.
Page 124 of 197 4.3 Environmental Impact There are no environmental impacts.
4.4 Risk Impact 4.4.1 All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy (September 2012), Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels.
4.4.2 To minimise risk this report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with Financial Regulations.
5. Measures of success
5.1 Overall the approach adopted by the Council’s Treasury Management team during the quarter under review met the key requirements of the 2019/20 Treasury Management Strategy. Prudential indicators have remained in accordance with those approved by Committee on 13 March 2019. The projected final outturn illustrates a healthy prudential margin and borrowing levels that are below sustainable limits, ensuring that the projected capital investment levels remain affordable and sustainable.
6. Supporting documents
6.1 Appendix 1: Loans, Long term Liabilities & Investments as at 30 September 2019
6.2 Appendix 2: Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2019
Elaine Kemp Head of Financial Solutions
Page 125 of 197 LOANS , LONG TERM LIABILITIES & INVESTMENTS AS AT 30 SEPTEMBER 2019 Appendix 1
DEBT RESTRUCTURING NEW BORROWING / BALANCE EARLY LONG-TERM PRINCIPAL NET CASH BALANCE 1-July-19 REDEMPTION REFINANCING LIABILITIES REPAYMENTS MOVEMENTS 30-September-19 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 418,261,741 0 0 60,000,000 (8,488,644) 51,511,356 469,773,098 MONEY MARKET LOANS 93,000,000 0 0 0 (1,000,000) (1,000,000) 92,000,000 ENERGY EFFICIENCY LOAN 809,362 0 0 0 (26,023) (26,023) 783,339 512,071,103 0 0 60,000,000 (9,514,666) 50,485,334 562,556,437
SHORT-TERM LOANS TEMPORARY 141,500,000 0 0 69,500,000 (69,500,000) 0 141,500,000 MUNICIPAL BANK 23,181,573 0 0 0 (738,624) (738,624) 22,442,949 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 164,687,853 0 0 69,500,000 (70,238,624) (738,624) 163,949,229
LONG -TERM LIABILITIES
FINANCE LEASE OBLIGATIONS 2,078,148 0 0 0 0 0 2,078,148 LONG TERM LIABILITY 143,366,080 0 0 36,909,000 (1,464,530) 35,444,470 178,810,550 145,444,228 0 0 36,909,000 (1,464,530) 35,444,470 180,888,698
TOTAL EXTERNAL DEBT 822,203,184 0 0 166,409,000 (81,217,820) 85,191,180 907,394,364
INVESTMENTS THIRD PARTY ADVANCES 1,996,444 0 0 0 (35,438) (35,438) 1,961,006 BANKS & OTHER FINANCIAL INSTITUTIONS 29,946,139 0 0 0 0 42,864,095 72,810,234 BANK OVERDRAFT INCL CASH IN TRANSIT (15,216,911) 0 0 0 0 3,964,447 (11,252,464) CASH & CASH EQUIVALENTS 16,725,672 0 0 0 (35,438) 46,793,104 63,518,776
NET BORROWING 805,477,512 0 0 166,409,000 81,182,382 38,398,075 843,875,587
Page 126 of 197 Appendix 2 Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2019
1. Capital Expenditure, Capital Financing Requirement and Prudential Margin
(a) Capital Expenditure Initial Projected Estimate Outturn 2019/2020 2019/2020 (£m) (£m) Total spend : Capital Expenditure 208.5 190.0 Total spend : Credit Arrangement 60.0 60.0 Total Capital Investment 268.5 250.0 Financed By: Borrowing 101.5 88.3 Capital receipts 4.5 3.2 Capital receipts transfer to Capital Fund 0.0 -3.2 Capital Grants & Other External Contributions 75.4 74.6 Capital from Current Revenue 27.1 27.1 Credit Arrangement 60.0 60.0
(b) Prudential Margin Calculation Initial Projected Estimate Outturn 2019/2020 2019/2020 (£m) (£m) Capital Financing Requirement 1,084.5 1,060.2 Gross Borrowing 990.1 937.9 Prudential Margin 94.4 122.3
2. Authorised Limit and Operational Boundary Initial Initial Maximum Authorised Operational Borrowing Limit Boundary Level Q2 2019/2020 2019/2020 2019/2020 (£m) (£m) (£m) Borrowing 950.0 940.0 733.2 Other Long-term Liabilities 210.0 205.0 178.8 Totals 1,160.0 1,145.0 912.1
3. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 30/09/2019 (£m) % External Interest Payable on Fixed Rate Loan Debt 21.50 89.1% External Interest Payable on Variable Rate Loan Debt 2.60 10.9% b) Loans Fund Revenue Account Initial Projected Estimate Outturn 2019/2020 2019/2020 Variance (£m) (£m) (£m) %tage Loans Fund Interest Payments 29.0 27.5 1.5 5.3% Loans Fund Expenses 0.3 0.4 -0.1 -21.2% Total Loans Interest Payments & Expenses 29.3 27.9 1.4 4.6% Loans Funds Investment Income -0.3 -0.4 0.1 -38.1% Total Loans Fund Interest Payments Investment Income & Expenses 29.0 27.5 1.5 5.1% Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses : General Fund 18.7 17.8 0.9 4.9% Loans Fund Interest Payments Investment Income & Expenses : HRA 10.3 9.6 0.7 6.4%
Capital Advances Repayments - General Fund 23.4 23.6 -0.2 -0.7% Capital Advances Repayments - HRA 7.8 7.9 -0.1 -1.2% Total Capital Advances 31.2 31.5 -0.3 -0.9%
Total Loan Charges 60.2 59.0 1.2 2.0% c) Maturity Structure of Borrowing 12 months to 10 to 20 <12months 2 years 2 to 5 years 5 to 10 years years 20 to 40 years >40 years Upper Limit maturing :Fixed & Variable Rate Debt 20.0% 15.0% 25.0% 30.0% 35.0% 45.0% 30.0% Lower Limit maturing :Fixed & Variable Rate Debt 0.0% 0.0% 5.0% 5.0% 5.0% 10.0% 5.0% Maturity structure at the start of Q2 6.7% 5.8% 18.6% 11.7% 18.1% 32.0% 7.0% Maturity structure at the end of Q2 8.9% 6.5% 15.7% 12.9% 20.4% 29.1% 6.4% Page 127 of 197
Page 128 of 197 AGENDA ITEM 13
North Lanarkshire Council Report Finance and Resources Committee
☐approval ☒noting Ref EK/PD Date 27/11/19
Payment of Local Taxation & Benefit Update
From Elaine Kemp, Head of Financial Solutions Email [email protected] Telephone 01698 302408
Executive Summary This report provides an update on the payment performance for Council Tax and Non Domestic Rates and the administration of welfare benefits and Council Tax Reduction Scheme as at 31 October 2019.
Current year collection of Council Tax at end of October was 64.4% up 0.1% at the same point last year.
Non Domestic Rates collection as at 31 October 2019 was 65.4%, 0.1% lower in comparison with last year.
Comparing 2019/20 to 2018/19 at the end of October performance for speed of processing benefit applications and changes has significantly improved in line with expectations.
SWF spend at current levels will exceed the Scottish Government allocation. The priority level has been assessed and it is now necessary to move the priority to high most compelling to ensure spend is in line with budget at year end.
Recommendations Members are asked to note the report.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
Page 129 of 197 1. Background
1.1 The report compares collection performance for Council Tax and Non Domestic Rates to the previous year, speed of benefit processing for new applications and changes and details Discretionary Housing Payment and Scottish Welfare Fund spend for the year.
2. Report
2.1 Council Tax 2.1.1 Graph 1 below shows the cash amount collected within the initial billing year, in respect of Council Tax for the last ten years. As at 1 October 2019 the collection rate was 64.4% of the net Council Tax payable. This is slightly up by 0.1% from last year’s collection level at a comparable point within the financial year.
Graph 1 In Year Council tax Collection 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
2.1.2 This is a statutory PI however it does not reflect the overall collection rate of Council Tax which has a greater bearing on the Councils finances.
2.1.3 The Council when setting its revenue budget and the level of income to be raised from Council Tax determines a level of collection which will be ultimately met. After a period of increasing collection rates this has stabilised at a composite level of 97.0% up until the introduction of the Council Tax Reduction Scheme (CTRS). Since 2015/16 it has been set at 96.3% for the period 2015/16 to 2017/18 and 95.4% for 2018/19. This reduction is due to the impact of the ending of the council tax freeze which means that more people have effectively been required to contribute to paying all or an increased element of the council tax bill.
2.1.4 Over the period 1993/94 to 2008/09 the total level of council tax received by the Council has exceeded this 97% level ranging from 97.20% to 98.43%. From 2009/10 until 2018/19 the value collected ranges from 94.46% to 96.98%.
2.1.5 At this stage in the financial year it is anticipated that there will be a break even position across the council tax product. This will be monitored and any change reported to Committee.
Page 130 of 197 2.2 Non Domestic Rates 2.2.1 Non Domestic Rates collection as at 31 October 2019 was 65.4%, 0.1% lower than at the same point last year.
2.3 Benefits Update 2.3.1 The data below highlights the Statutory Performance Indicator which measures both the speed of Processing of both new claimants and changes in circumstances for Housing Benefit. The average figure is based on the latest information published by DWP.
April 2019 – October 2019 Table Scottish Quarter 1 Process 2019/20 2018/19 Average 2019/20 New Claims 18 26 17 Change of Circumstances 8 12 6
2.3.2 The Year to date speed of processing for both new applications and change of circumstances for April to October has improved significantly against last year, in line with expectations.
2.3.3 Processing performance for quarter 1 last year was impacted by the move to Universal Credit (UC) Full Service by Job Centres in North Lanarkshire. This change contributed to a higher level of changes being notified to the Council with an increase in the length of time to verify and complete the processing of the change. Improved automation of changes has contributed to improving the overall speed of processing statistics.
2.3.4 The roll out of UC has impacted the number of new claims being received for Housing Benefit. Applications received for Housing Benefit, to the second quarter, have declined from 1,906 in 2018/19 to 871 in 2019/20. CTRS claims processed during the same period was 3,365 against 4,999 last year. However, although the Housing Benefit new applications caseload is reducing overall the workload has remained consistent due to the requirement to administer CTRS applications and administration of UC change of circumstances affecting CTRS claims. From 2018/19 to 20019/20 changes notified by DWP for UC claimants has risen from 21,099 to 36,954. This will continue to increase as the Universal Credit caseload continues to increase.
2.4 Council Tax Reduction Scheme 2.4.1 From 1 April 2013 Council Tax Benefit was replaced with the Council Tax Reduction Scheme. As at 31 October 2019 a total of £23.037m had been awarded. Given the changing nature between the CTRS and the amount of the Council Tax product billed to individual households as previously commented upon in section 2.1 earlier the Council set a notional budget of £22.300m in respect of awards for 2019/20. Although awards are higher than this the overall impact on the 2019/20 Council Tax product which also includes other factors such as household numbers and percentage collection is, showing a breakeven position for the year to date.
Page 131 of 197 2.5 Discretionary Housing Payments 2.5.1 From 1 April 2017 funding for DHP has been devolved to Scottish Government. This funding is made up from both the Scottish Government’s commitment to fully fund the implications of the Bedroom Tax and an additional sum available for other reasons such as the Benefit cap and the restrictions on Local Housing Allowance rates.
2.5.2 At 31 October 2019 the total of both that paid to date and those committed over the remainder of the financial year in respect of Bedroom Tax was £4.256m.
2.5.3 In addition the Council also receives £0.655m in respect of non-bedroom tax related issues. As at 31 October 2019, £0.356m has been paid or committed from the fund.
2.6 Scottish Welfare Fund 2.6.1 The Council has operated the full roll-out of the Scottish Governments Scottish Welfare Fund since 1 April 2016.
2.6.2 As at 31 October 2019 8,601 awards were made. 6,921 relate to Crisis Grants and 1,680 relate to Community Care Grants. Those applications not proceeding to an award are 3,053 in respect of Crisis Grants and 626 in respect of Community Care Grants.
2.6.3 The level of funding has been reducing to reflect the agreed distribution formulae with a reduction in core funding from £2.775m in 2017/18 to £2.616m in 2018/19 and in administration grant from £0.402m in 2017/18 to £0.387m. This level of funding remains the same for 2019/20.
2.6.4 As at 31 October 2019 we have spent £1.628m (or 62.2 %) of the annual award budget of £2.616m. At current spend levels this would lead to an overspend of the sums allocated by Scottish Government. The current priority setting level for the fund is “High”. The Service has reviewed the priority setting and have recommended “High Most Compelling” to ensure grants awarded are in line with the funds allocated by Scottish Government.
3. Equality and Diversity
3.1 Fairer Scotland Duty No impact.
3.2 Equality Impact Assessment Not Required.
4. Implications
4.1 Financial Impact No impact.
4.2 HR/Policy/Legislative Impact No impact.
4.3 Environmental Impact No impact.
Page 132 of 197 4.4 Risk Impact No impact.
5. Measures of success
5.1 Continuous improvement year on year in processing times and collection rate.
6. Supporting documents
6.1 N/A
Elaine Kemp Head of Financial Solutions
Page 133 of 197
Page 134 of 197 AGENDA ITEM 14
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref EK/PD Date 27/11/19
General Debtors debt Write-Off 2019/20
From Elaine Kemp, Head of Financial Solutions Email [email protected] Telephone 01698 302408
Executive Summary The purpose of this report is to present to the Committee the summary of outstanding local taxation accounts which are deemed uncollectible following all attempts at recovery. A Bad Debt Provision has been included within the annual accounts recognising the non- collection of these accounts.
Recommendations It is recommended that Committee:
1. Note the decision of the Head of Financial Solutions under delegated responsibilities to write off £299,586.04 for debts under £500.
2. Approve the write off of £3,661,001.67 which includes debts greater than £500.
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
Page 135 of 197 1. Background
1.1 The Council billed net £179m Council Tax and Water Charges and £117m Non Domestic Rates charges for the year 2019/20.
1.2 There will continue to be an appraisal of the outstanding balances to assess those which are deemed uncollectible. This annual process conforms to best practice and is underpinned by a systematic approach to recovery and a realistic assessment of the expected collection of outstanding balances.
2. Report
2.1 An analysis of the outstanding balances has been conducted and £3,960,587.71 has been identified as uncollectible. The write-off can be analysed as shown in the table below:
Cause Analysis Council Tax NDR Total
Deceased 202,950.99 202,950.99
Liquidation / Sequestration etc 824,887.22 2,932,749.50 3,757,636.72
Total 1,027,838.21 2,932,749.50 3,960,587.71
Value Analysis Council Tax NDR Total
<£500 284,704.74 14,881.30 299,586.04
>£500 743,133.47 2,917,868.20 3,661,001.67
Total 1,027,838.21 2,932,749.50 3,960,587.71
2.2 Collection of Local Taxation is sought from all payees in the year of liability and subsequent years with the use of diligence as appropriate. The level of collection is reported at each committee cycle.
2.2 Over time the collection of outstanding sums is prevented where there is no longer any legal basis to collect. This occurs where a person or business is subject to a sequestration, bankruptcy, winding-up or where the estate of the deceased has no funds to meet the debt and there is no other liable party.
2.3 For Council Tax a deceased person’s estate may continue to be liable after their death until the property is sold or bequeathed in the winding up of the estate, consequently there are Council Tax debts for individuals who died during 2015/16 and show in later years as the estate is now settled.
2.4 The accounts submitted for write off are cases where there is no legal basis for recovery. To ensure that all legal recoveries are exhausted, e.g. distribution form estates / trustees etc, it is proposed that the write-off is applied after the third year of
Page 136 of 197 the event. Outlined in Table 1 below are the sums for such cases as outlined in paragraph 2.2 which are currently held as debtor in the Council’s accounts.
2.5 Council Tax debt for the years up to and including 2011/12 have been fully provided for and as such there is no cost to the Council associated with the write off of these debts. However for the years after this there is the potential of a cost to the Council. However this cost will be offset within the overall Council Tax budget.
2.6 There is no cost to the Council in respect of the NDR write off as this is accounted for in the NDR pooling arrangements with Scottish Government.
2.7 The Head of Financial Solutions has exercised powers under the Scheme of Delegation to write-off those balances which are under £500, which represents £299,586.04 of the sum identified in paragraph 2.1.
3. Equality and Diversity
3.1 Fairer Scotland Duty No Impact
3.2 Equality Impact Assessment No Impact
4. Implications
4.1 Financial Impact There are no additional financial implications for the current year because a corresponding bad debt provision has been included in previous year’s accounts.
4.2 HR/Policy/Legislative Impact No implications.
4.3 Environmental Impact No impact.
4.4 Risk Impact No impact.
5. Measures of success
5.1 N/A
6. Supporting documents
6.1 N/A
Elaine Kemp Head of Financial Solutions
Page 137 of 197
Page 138 of 197 AGENDA ITEM 15
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref FW/JH Date 27/11/19
iTrent Contract Renewal
From Fiona Whittaker, Head of People and Organisational Development Email [email protected] Telephone 01698403574
Executive Summary The current contract for the i-Trent system comes to an end on 24th December 2019, and this report updates the Finance and Resources Committee on the plans for the continuation of the contract with the current provider and further development of the capability of the system to support digitisation and service improvement across the Council. Significant work has been undertaken over the last 18 months to improve the i- Trent system and this has ensured that the system is now well embedded across the organisation with measured improvements in performance and control of HR processes. To ensure that the Council can fully leverage the capability of the system it is proposed that rather than extending the existing contract, a new contract is awarded to Midland HR for the continued use of the i-Trent system and this will be procured as a direct award from an existing Scottish Government collaborative procurement framework agreement. Under this arrangement there is no requirement for a review of the market and a longer term contract can be agreed which offers further discounts over the life of the contract. A significant driver for this approach is the fact that a new contract enables Midland HR (MHR) to provide additional system functionality in line with the Digital NL ambition at low or no cost and this will create opportunity for further transformation of People and Organisational Development (POD) services across the Council. Outlined in the remainder of this report are the current iTrent contract arrangements, costs savings and qualitative benefits realised to date. Details of the proposed new contract are also outlined, with projected benefits and return on investment potentials expected to be realised in future years.
Recommendations It is recommended that the Finance and Resources Committee: 1) Approve the new contract with Midland HR for the continued use of the iTrent system for the period 25th December 2019 to 24th December 2026. 2) Agree plans for implementation of additional self-service functionality. 3) Otherwise note the contents of this report and accompanying appendices.
Page 139 of 197
The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base
Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition
1. Background
1.1 The original iTrent contract was awarded in January 2015 with provider Midland HR. This contract was agreed for a maximum of 6 years with extensions available at years 3 and 5.
1.2 The first 2 years of the current contract allowed for system configuration, development and discussion with management teams about operational implementation of self service.
1.3 Year 3 saw the implementation of the new HR Model designed to take advantage of the new HR and Payroll system and realise savings in line with the business case.
1.4 The last 18 months have focussed on the full rollout of the iTrent system across the Council, and significant learning has been gained by the team regarding how to successfully engage and upskill front line staff when rolling out this type of technology.
1.5 It should be noted that the full final rollout of iTrent over the last 12 months has delivered significantly enhanced self service capability to view payslips, request leave and process expenses and mileage claims, contributing to a sustained reduction in data input and duplication.
1.6 Given the considerable time and effort which has been invested in embedding and improving the system and its capability, there is no desire to move away from iTrent at this time.
1.7 In part this is due to the significant work which would be needed to source, develop, and implement a new workforce system to all staff.
1.8 The 2015 business case also costed the new system implementation at almost £1million and this will have significantly risen since then also making the move to a new system a cost prohibitive proposition.
1.9 We are also aware that i-Trent is now the system choice for an increasing number of Councils within Scotland and North Lanarkshire has been called on to provide best practice input to a number of other Local Authorities in this regard over the last 12 months.
1.10 With the next phase of our work in developing the system, we are striving to be at the forefront of i-Trent developments and the next steps are key to pushing the boundaries of what self- service provision can do for our employees and managers in line with the wider digitalisation of the Council.
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2. Report
2.1 Current iTrent Contract, arrangements and costs
2.1.1 In table 1 below, the current contract costs are noted in column one and the proposed new contract costs are noted in column two.
2.1.2 Elected members will note that the new contract allows for the inclusion of additional functionality at a more cost effective rate, with discounts applied by MHR. If we were to buy the modules individually under the current contract, they would cost significantly more.
Table 1
Current Proposed Description Contract New Contract Annual Rental £149,369 £170,780 Annual license cost for the system
Analytics £10,724 £12,756 This module allows for the creation of reports from the system
Cloud Services £70,659 £54,838 This includes the full costs associated with cloud based hosting arrangements for the system
iTrent Assist £3,960 £3,960 Helpdesk support provision
Proposed new modules to enhance functionality Time and £21,600 0 This new module would enable employees Attendance to clock in and out via the mySelf app or Chatbot (with a proposal for this to replace Etarmis). Implementation would also offer increased ability to report on working patterns and times; triggers in real time for managers on those not clocking in and potential functionality to record overtime hours automatically and calculate payment.
Insight Builder £12,600 £5,000 Dashboards and data visualisation, fully configurable to give managers access to the data they want when they want it in the format they want it.
On-boarding £34,4767 £6,250 Recruitment and induction module allowing new recruits to input their own details (reducing data input in the Employee Service Centre (ESC)), also includes manager starter checklists and links to ensure new employees are set up on all relevant systems and with any processes, prior to starting.
Page 141 of 197 Chatbot £33,846 £22,000 Employees can book holidays, check balances, log expenses, check in and out and let Chatbot calculate overtime and TOIL/flexi automatically. Daily briefings can be pushed out and pre-determined questions to assist with employee engagement can be developed.
Total Annual £333,275 £275,584 costs One off cost NA £263,122 Paid upfront as part of contract year 1 negotiations Total contract £1.66m £1.64m value over 5 years Total contract £2.33m £2.19m value over 7 years
*One off cost of new contract implementation recouped within four and half years
2.2 Proposed new iTrent Contract
2.2.1 The new contract has been procured as a direct award from a single provider Scottish Government collaborative procurement framework agreement (Software added value re-seller framework). 2.2.2 In summary, the proposed new contract contains all the same functionality as we currently have plus additional functionality around chat-bot, time and expenses, insights (enhanced manager dashboards) and on-boarding. This additional functionality will significantly move us forward with self-service and digitalisation.
2.2.3 A standard contract length would be 5 years however our negotiations for a new contract have allowed for extension to a maximum 7 year contract, increasing the level of stability of the contract with MHR and allowing for further discounts over the term of the contract.
2.2.4 To enable the proposed new contract, a one-off spend of £263,122 has been paid to MHR to secure the discounts. Spreading the contract over 7 years gives a higher level of return and efficiency, which would not be fully realised with a 5 year contract.
2.3 People and OD Savings and Benefits of iTrent realised to date
2.3.1 The 2015 business case noted a staffing saving of £1.9million within 5 years this is set out in appendix 2.
2.3.2 Following a revised costing exercise in 2018, it was discovered that the initial savings had been overstated due to an error in the average level of staffing costs used to calculate the business case. This figure was revised to £1.3 million. The £0.6millon saving reduction is being met through a review of Revenue and Benefits.
2.3.3 Within 4 years from 16/17 to 19/20, savings of £1.1million have been realised and with a further £200,000 anticipated in 20/21 budget, the £1.3million revised figure will be met within the 5 years specified.
Page 142 of 197
2.3.4 With the proposed developments to the system, further year on year savings will be achieved.
2.3.5 Additional savings in the region of £30K per year are also associated with the proposed removal of the Etarmis system.
2.3.6 Alongside the financial savings, qualitative benefits mentioned in the 2015 business case have been fully realised and we are confident that additional benefits will continue to be realised as noted in the table below.
Table 2
Original Business Case Current State
Be able to report from one single source of Automated reports to managers on information − to enable management sickness absence, salary and overtime information to be produce reliably, quickly information are provided. Manager and without manual intervention. dashboards are the next steps in this provision.
Enable self−service and workflow for Self-service rollout up-to level 3 is in place managers and staff − to reduce the need for for over 10,700 employees. This is the manual, paper−based processes and highest current level which allows enable managers to have greater visibility employees to request leave, overtime, and of their financial and workforce information expenses. This is a 99% increase on the on−line; same time last year.
An additional 4679 employees have either level 1 or level 2 access.1400 staff, mainly within Facilities Support Services remain on level one however this rollout is scheduled to move to level two in October.
Eliminate duplicate data processing − iTrent is interfaced with Etarmis and has ensure that systems are integrated feeds from MySwiss to reduce duplication. appropriately to avoid data being There remains further opportunity for re−entered into different systems (e.g. improvement and this is one of the areas operational systems and peripheral where the additional functionality of the new systems such as Brightwave, COSLA, etc.) contract will provide further automation and to reduce effort spent on duplication, risk of associated benefits. human error and manual intervention
Be accessible and easy to use − to Over 75% of all employees have accessed encourage the workforce to adopt on−line their mySelf account in the last three processes and new working practices months. In some areas this is as high as 94%.
Support a mobile and diverse workforce − Rollout to frontline services has seen recognising that many staff do not have employees bringing their own devices along access to an office computer, but may need to see how to work mySelf. One to one access via a smartphone, domestic training has proved highly successful in computer or manually, in some these areas with large volumes of front line circumstances. staff being trained.
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2.4 Projected benefits of the new contract and associated new functionality 2.4.1 The increased functionality of the new contract will deliver a number of important benefits which are detailed in the table below:
Table 3
Module Proposed change Cost savings potential
Time and Etarmis is system currently used Switching off the Etarmis system Attendance by the Council to record flexi would save £29,334.43 annually and time. Etarmis has little reporting Etarmis would be eradicated capability and does not fit completely with the time and around the Council’s ambitions attendance module. With the new for agile working. To use contract this module is free therefore Etarmis currently, staff generally an automatic savings is made here. need to use an ‘on the wall’ device to clock in and out and Automatic overtime recording would the proposal would be to cease reduce admin input both in the ESC the use of Etarmis and transfer and Enterprise and Communities staff across to the new iTrent (E&C) teams. That would be 82 days module. inputting for ESC and a further impact in frontline admin teams in E&C.
Insight Builder This new functionality will Managers getting access to the right significantly increase manager’s information at the right time presented ability to use data more in the right way is essential to good intelligently to manage services decision making. Self-service would and people. also reduce time spent on ad hoc reports with a potential saving of 1 FTE.
Onboarding Increased recruitment and According to research 69% of induction functionality and employees are more likely to be streamlining of the processes retained if onboarding is good. will lead to a reduction in data Time spent on this activity across the input, reduction in manager time Council is not quantifiable as it is wide across services, reduction in spread but would have a positive chasing up compliance impact on manager’s time for each paperwork, increased speed of new start and would enhance the recruitment and ease of speed of which posts are filled, again application (especially for leading to efficiencies. internal candidates whose details are already in the system). This functionality will also link with the active directory to ensure new starts are added and leavers removed automatically and in a timely manner.
Page 144 of 197 Chatbot Options for employees to make Moving 25% of People Helpdesk calls engaging digitally even easier. to Chatbot could save up to 2 FTE More likely to engage with staff. Chatbot as it’s quicker and frees up time to concentrate on more value add tasks.
2.4.2 On top of the above proposed developments within iTrent over the next few years, there are a few additional suggested options to further enhance the provision. The ESC will work closely with Digital NL to progress these elements.
2.4.3 A dynamic workforce scheduling solution, which fully links to i-Trent would significantly reduce duplicated work and administration currently undertaken by the Employee Service Centre. Both Fife and Highland Council have implemented this system with Fife saving £2.35 million a year within their home care support team and Highland seeing a 20% increase in productivity within their housing maintenance team. This would replace the current Kirona system if implemented.
2.4.4 A fully linked workforce scheduling system could also track mileage and feed directly into iTrent, eradicating the need for input of expenses by staff or admin teams. The current system Kirona does not currently have this functionality and requires the upload of data between the two systems to enable the calculation of expenses.
2.4.5 The new ‘MyNL’ website, a one stop shop for People and OD related information was launched at the beginning of November. We anticipate that this will further reduce levels of enquiries to the helpdesk as well as time spent correcting errors arising from a lack of manager information on HR processes. It is anticipated that this could realise further savings of 1-2FTE in 2020/21.
3. Equality and Diversity
3.1 Fairer Scotland Duty Not applicable
3.2 Equality Impact Assessment The iTrent EQIA has been updated to reflect the proposed new functionality.
4. Implications
4.1 Financial Impact
Agreeing to a new contract allows a discounted rate for a number of additional modules which will enhance functionality, including increased automation to enable the release of further savings within the ESC and admin teams across the Council.
4.2 HR/Policy/Legislative Impact
The new contract provides a significant opportunity to increase self-service and digitalisation of our HR and workforce provision, including better data for managers to make informed decisions with access to the information when they need it and in the format they need it.
4.3 Environmental Impact
Page 145 of 197
We expect that an enhanced ability to clock in and out away from office locations will increase the agility of the workforce and reduce need for unnecessary employee travel. There is also a continued reduction in paper processes within the ESC.
4.4 Risk Impact
The continuation of our current system licence and relationship with Midland HR is critical to ensure that we have an effective HR, payroll and workforce management system across the Council.
5. Measures of success
5.1 Increased automation of processes will lead to FTE savings and savings released through the discontinuation of the Etarmis system.
5.2 Increased self-service functionality, easy to use technology to increase employee engagement and workforce for the future capabilities.
5.3 Increased insights for managers based on people data and analytics. Every people related decision being backed up by data.
5.4 Increased accessibility to HR processes and streamlined integration with other systems.
5.5 Using technology to give people better experiences, both for our employees on the front line and for those who would have previously been inputting this information in admin teams across the Council.
5.6 Reduction in errors, paper processes and duplication.
5.7 Annual saving of £56,486.81 with new contract with provision of additional functionality.
6. Supporting documents
6.1 Appendix 1 Summary of Procurement and Evaluation process 6.2 Appendix 2 Policy & Resource Committee report for original i-Trent business case.
Fiona Whittaker Head of People & Organisational Development
Page 146 of 197 Appendix 1
Contract Title iTrent
Estimated contract start date 25th December 2019
Initial contract period adopted by the 7 years Council Contract period extension option As required pending review
Estimated total contract value £2,182,462.36 including extension option Governing UK Regulation Public Contracts (Scotland) Regulations 2015
Procurement procedure adopted Direct award from Scottish Government Software added value re-seller framework agreement.
Page 147 of 197 AGENDA ITEM No,
NORTH LANARKSHIRE COUNCIL REPORT
To: POLICY & RESOURCES COMMITTEE Subject: HR/PAYROLL REPLACEMENT PROJECT − FULL BUSINESS CASE From: EXECUTIVE DIRECTOR OF CORPORATE SERVICES
Date: 11/05/2015 Ref: JM/MO
1. Purpose of Report
1.1 The purpose of this report is to seek approval of the Full Business Case (post procurement) for the HR & Payroll Replacement Programme.
2. Background
1.1 The procurement of an up−to−date Human Resources/Payroll System is a significant project within the Council's Transformation Programme and has been the subject of regular update reports to the Service and People First Member/Officer Transformation Board and to this committee.
1.2 In February 2015 Committee agreed to:
− Note the decision made by the Executive Director Corporate Services to proceed to contract award on 28th January 2014 with MidlandHR for the provision of an HR and Payroll Solution and associated ICT Managed Service. − Agree that external experts were required for the installation and implementation phase of the project and agree that Ernst & Young be retained for this implementation phase. − Approve that the necessary and relevant NLC resource be made available for the implementation of the project to ensure a successful conclusion within the time frame. − Note the tight timeline for the delivery of the initial phase of the project (Feb 2016) and that arrangements are being put in place to closely monitor progress.
2.1 This project has already been identified as high risk mainly due to the implementation timescale (i.e. it is now in week 13 of a 45 week initial phase), and it is essential that the correct resources are applied to ensure successful delivery to the required timescale.
3. Full Business Case
3.1 The Full Business Case can be found in Appendix 1.
4. Executive Summary
4.1 The Council's contract with its current HR and Payroll system provider expires in February 2016 and the current system is not fit for purpose for the evolving needs of the Council..
4.2 Given the financial pressures facing the Council, the organisation needs to: − Implement a replacement HR & Payroll solution to meet the basic operational requirements and avoid the cost of extending its current contract which expires in February 2016 at around £750K; − Reduce the cost of HR and payroll processes and producing management information; and − Improve its ability to target key workforce challenges, such as absence management, a modern flexible and mobile workforce, etc.
4.3 The new solution needs to support the Business Change by: − Being able to report from one single source of information − to enable management information to be produce reliably, quickly and without manual intervention;
Page 148 of 197 − paperEnabling−based self−service and workflow for managers and staff − to reduce the need for manual, processes and enable managers to have greater visibility of their financial and workforce information on−line − Eliminating duplicate data processing − ensure that systems are integrated appropriately to avoid data being re−entered into different systems − Being accessible and easy to use − to encourage the workforce to adopt on−line processes and new working practices − Supporting a mobile and diverse workforce − recognising that many staff do not have access to an office computer, but may need access via a smartphone, domestic computer or manually, in some circumstances.
4.4 Having completed the procurement, the Outline Business Case (OBC) has been updated and finalised as the Full Business Case (FBC):
− Only the costs have been revised. The Council has not suggested the need to update the quantified efficiencies (savings). − The OBC and FBC differ by around £23k over the 6 year period, which would be considered not material. − The FBC will be used throughout the project and post−implementation to track actual costs and benefits, against the agreed FBC. − The FBC is a critical baseline document for this project. However, it is typical for the FBC to be revised as the implementation of the project progresses and assumptions are clarified.
4.5 A comparison showing the actual Figures from the FBC versus the estimated figures from the OBC are contained within the table below:
Full Business Case (post procurement process)
OPTION 4
11.723,826 1277.120 i 10 10 10 £0 12.000.946 fl−90,137T1197.742 1175.792 1182.824 £205,652 £213,878f fl,166.024
£0 1 4614,419 41306,463 41,772,280 −11,998,056 42,126,560 −11,817,815
£1,899,618 −0154,475 I −01,116,327 41,574.538 41,792,404 1 −11,912,702
£1,899,618 −1149,251 41,042,122 11,420,143 −11,509,156 −01,656.809 I −13,467,564
£1,899,618 ! 61.750,366 I 008,245 I −0711,898 −02,221,055 43.887.864
Outline Business Case (pre procurement process)
OPTION 4
11.700,000 −° −−−−−−−−−−−−£176,200−−− − £176,200 £176,200 £176,200 £176,200 1 £176,200 £1,057,200 − £0 −1614,419 j −11,306,483 −11,772,280 −11,999,056 −12.126,580 −11,817,815
£1,876,200 219l 1130283 1596 00 fl,821,85C £1950 380 14635,618 :; .E7,0527,43573T− 11,875,200 .1532,9 .635996431
£1,876,200 I £1,865,428 £808,297 4631,276 42,165.230 −03,864,873
The difference between the FBC (post procurement) and the OBC (pre procurement) is small
Page 149 of 197 Implementation costs £124,054 lower due to NIC team cost Solution costs −fl08,824 4% annual inflationary uplift Savings £0 not revised Overall NPV £22,990 slightly lower cost Pavback Period No change Remains within 3 years
5. Next Steos
The council must plan ahead to − Ensure that there are appropriate checkpoints within the project to monitor the efficiencies stated within the full business case remain viable and can be achieved − Ensure that a benefits management plan and approach is shaped alongside the project implementation − Ensure consideration is given to determining the most appropriate Target Operating Model to achieve the savings identified − Acknowledge that the business case may need to be updated during the project − Agree that any change is managed through formal change control and Board approval 6. Recommendations
6.1 It is recommended that Committee − a. Approve the Final Business Case b. Note the items in 5 − Next Steps
xecutivAD
ctor of Corpo
For further information pIeae contact .,iune Murray on tel. ext. 302345
Page 150 of 197 Appendix 1
HR & Payroll Replacement Programme − Full Business Case
Page 151 of 197 North Lanarkhire Council
North Lanarkshire Council
HR & Payroll Systems Replacement
Full Business Case
Version 1
25 February 2015
Page 152 of 197 Document Control
Revision History
Reference Documents
Document Acceptance
Disclaimer: In carrying out EYs work and preparing this report, we have worked to the instructions of North Lanarkshire Council. It should not be provided to any third party without EY's prior written consent. EY's report may not have considered issues relevant to any third parties, any use such third parties may choose to make of this report is entirely at their own risk and we shall have no responsibility in relation to any such use. EY'S work did not include generally accepted auditing, review, or other assurance standards and accordingly does not express any form of assurance. Furthermore, EY'S work does not constitute any legal opinion or advice.
Page 153 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
CONTENTS STRATEGICCASE ...... 4 1.1 Purpose ...... 4
1.2 The for change 4 case ...... 1.3 The current environment...... 5
2 FUTURE STATE ...... 7
2.1 Context & success criteria ...... 7 2.2 Design Principles...... 7
2.3 The preferred Option —to implement an enhanced HR & Payroll environment...... 8 3 ECONOMIC CASE...... 9 3.1 Assessing efficiency opportunities...... 9
3.2 Costs −confirmed system implementation ...... 10
3.3 Costs − confirmed system annual operating costs ...... 10 3.4 Costs —forecast Council project team ...... 11
3.5 Costs − business & operating model change management ...... 11
3.6 Savings − operational efficiencies...... 12 3.7 Net present value analysis ...... 14
3.8 Qualitative Benefits ...... 15 3.9 Risks & Issues...... 15
3 Page 154 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
I STRATEGIC CASE
1.1 Purpose
The brief document represents the "Full Business Case" (FBC) for the implementation of a new HR & Payroll operating model at North Lanarkshire Council ('NLC' or the 'Council').
Following the approval of the Outline Business Case (OBC), in September 2014, by Corporate Management Team (CMT), the Council began a competitive procurement process through the Official Journal of the European Union (OJEU) for a replacement HR & Payroll system, hosting services and implementation services. The shape and focus on this procurement was determined by the Council's preferred option in the OBC (namely Option 4b), to replace the current HR & Payroll system and transform its wider HR and payroll business processes, using enhanced functionality such as learning administration, self−service, etc.
This document represents an update to the OBC, based on the confirmed, contractual costs agreed with the appointed supplier of the new solution, Midland, implementation assistance provided by EY and the confirmed cost of the internal Council project team. The forecast savings resulting from the project are unchanged from the OBC, and are restated for clarity.
1.2 The case for change
The Council's contract with its current HR and Payroll system provider expires in February 2016. Furthermore, given the financial pressures facing the Council, the organisation needs to: • Implement a replacement HR & Payroll system to meet basic operational requirements and avoid being in breach of its current contract which expires in February 2016; Reduce the cost of fulfilling HR and payroll processes and producing management information; and • Improving its ability to target key workforce challenges, such as absence management.
The Council has developed a comprehensive set of requirements. At a high level, the following key themes have emerged as requirements for future investment in systems and process change:
Be able to report from one single source of information − to enable management information to be produce reliably, quickly and without manual intervention; Enable self−service and workflow for managers and staff − to reduce the need for manual, paper−based processes and enable managers to have greater visibility of their financial and workforce information on−line; • reEliminate−entered duplicate data processing − ensure that systems are integrated appropriately to avoid data being into different systems (e.g., operational systems and peripheral systems such as Brightwave, COSLA, etc.) to reduce effort spent on duplication, risk of human error and manual intervention Be accessible and easy to use − to encourage the workforce to adopt on−line processes and new working practices; • Support a mobile and diverse workforce − recognising that many staff do not have access to an office computer, but may need access via a smartphone, domestic computer or manually, in some circumstances.
It is clear that alongside any replacement in systems, the Council will only achieve value from this investment if its current processes and working practices are significantly improved. New systems will enable improvement, but unless the Council changes that way it works and uses these systems, little improvement will be actually achieved.
Page 155 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case 1.3 The current environment
The Council's current HR and payroll processes are complex and administratively intensive, while the production of effective management information is time consuming. The Council spends approximately £5.2rn on HR support, and a further £0.7m for internal payroll service, equating to 140 FTE5. Through high level benchmark comparisons with other local authorities, the Council's HR and payroll processes appear high cost'. One of the key causes of this situation is the current HR and payroll systems architecture. The majority of staff records do not originate from the Council's core HR & Payroll system (Cyborg), as most employee records are managed within line of business systems (e.g., MySWIS, SEEMIS, BCMS, etc) which do not integrate to Cyborg. Furthermore, the Council does not have a data warehouse for employee records. To overcome the lack of integration and cross−system reporting, significant HR resources are used in processing data and maintaining management information.
Below is a summary of current staffing level used to fulfil existing HR and payroll business requirements, given current processes and systems:
2 In addition, the cost of operating existing HR and payroll systems is summarised below:
In addition to the cost of operating the current HR and payroll operating model, the systems and process environment has a number of significant limitations when compared to the Council's requirements. These are summarised below:
Cyborg is the master (originating) system I Duplication of effort − data has to be manually re−keyed into Cyborg: for less than 25% of employee records o E.g., leave data available in ETARMIS has to be extracted on a and there limited interfaces I exist weekly basis and entered into Cyborg between Cyborg and (i) the operational systems (e.g., BCMS, mySWlS and I o E.g., applicant data available in COSLA has to be re−keyed into SEEKS) and (ii) peripheral HR systems Cyborg to create a new employee record (e.g., COSLA, Brightwave, etc.)
iThe Council has 1 HR/Payroll FTE to every 120 Council employees versus an upper quartile ratio of 1t 205. The mean performance is 1t 175. This analysis excludes learning and development resources. 2 The costs of the HR element within systems including SEEMIS. BCMS and mySWIS have been excluded from the table above, as it represents a small element of an operational system which will remain functional in the future and for which the Council will still need to pay for 3 Refers to a payment made annually to an independent contractor for system customization related work
Page 156 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case RURMNU M' Increased risk of human error due to manual re−keying
The corporate system cannot The concept of 'averaging' has to be applied to calculate lost days, for accommodate all of the work patterns some employees, which lends itself to inaccuracies within NLC o E.g.,HSWS is able to calculate lost hours for home care workers but not for non−home care workers
The corporate system does not record Paying people with multiple posts must be calculated manually and different rates across multiple posts lends itself to human error
There is no direct feed between HR and Data in some cases has to be manipulated manually which lends itself Payroll data in the corporate system to human error • Payroll receives data in multiple formats for certain processes (e.g., excel spreadsheets, memos, timesheets, etc.)
There is no single source of data. Significant effort required to extract and collate data for MI purposes Multiple systems across the Council store Limited access to real−time data employee related data and the majority Restricts Corporate HR from conducting further analyses without the of HR processes are fulfilled using intervention from individual Services operational line of business systems Limited visibility of HR data stored within Service system Inconsistency in the information that is stored within individual systems o E.g., position management − job titles can vary between systems Excel spreadsheets and Access Databases are used to analyse and store data which are in many cases saved on individual Shared Drives and inaccessible to others
Lack of self−service functionality and • Significant volume of paper based processing workflows o E.g., Absence recording / overtime / expenses • Increased involvement required from HR to complete transactional activities • E.g., Line Managers are required to contact HR to obtain an employee's leave balance to establish entitlement to participate in the Buy/bank leave scheme
Page 157 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case 2 FUTURE STATE
2.1 Context & success criteria
In the OBC, the Council assessed the options to improve HR and payroll systems, processes and reporting. To give these options context, the Council has established some core design principles to explain how it wants HR and payroll processes and working practices to be in the future. Furthermore, the Council's IT Strategy has informed the commercial and technical principles that should underpin the delivery and operation of a new solution. These criteria were defined as being:
• Strategic alignment − testing the options against the design principles; • Benefits & scope to meet future needs − ability of the option to delivery tangible benefits, and be flexible to accommodate new requirements as existing solutions are decommissioned and service needs change; • Project complexity & cost − the technical complexity of the implementation, the scale of business change and the cost of implementation • Timescales − the ability of the solution to be implemented within the Council's current time constraints, namely go−live by December 2015 • NPV & Payback − this reflects the economics of the solution, in terms of costs and benefits, and the payback period.
2.2 Design Principles 2.2.1 Process & data design
The design principles have been developed by the HR & Payroll Project Board, to serve as the key rules that should determine the development and improvement of the HR and payroll operating environment moving forwards:
• The Council will standardise processes using a corporate model The corporate solution will be the single source of all employee data • HR processes should be recognised as distinct from operational processes, linked by data and systems The Council will fully exploit the capabilities of current packaged HR & Payroll systems, by changing HR and payroll working practices Managers will access information and approve HR and payroll transaction through self−service • Employee self−service will be the default approach to HR transactions for staff who have direct access to the corporate ICT network Corporate reporting for Members and Chief Officers will be timely and efficient • Change will deliver tangible and material benefits to the Council
2.2.2 High level functional requirements
Through engagement with stakeholders across the Council, the following have emerged as headline requirements for a replacement solution:
• Must be able to integrate and allow for data exchanges with the main operational systems • System must accommodate the different roles and responsibilities that the council resources undertake • Absence recording needs to be considered as a primary operating function of the new system to provide the elected members with assurances that absence management is being effectively monitored • Payroll functionality must reflect the differences in how pay patterns are presented at NLC • Ability to consolidate actuals vs forecast on payroll budget • A robust self−service platform which allows for employee administration to be managed by the individual • ePayslips to be put in place to largely remove the printed services in operation • Integration with other 3rd party systems − e.g., COSLA, Brightwave, etc. • Reporting needs to be more intelligent, in real time and provides accuracy in data across all services within the council
Page 158 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
• Need to provide more value —adding support than transactional administration • Online employee records −moving away from manual personnel files
2.2.3 Technical & commercial requirements
Finally, the following requirements relate to technical and commercial requirements for a new solution. These reflect the Council's IT Strategy and typical best value requirements:
• Affordability − most cost effective design solution, typically on a multi−tenancy framework • Time to deploy − ability to implement using existing non−customised solutions which are both innovative and easily applied • Zero infrastructure − managed 'software as a service' (SaaS) to ensure that infrastructure costs are minimal, with no use of on−site data centre facilities • Seamless upgrades − patching to reflect changes to business requirements, undertaken as a managed service to reduce the dependency on high cost, specialist internal resources and reduce the potential for single points of failure • Guaranteed levels of support service − maintenance to be delivered by third parties on the basis of contracted service levels • Backups and Data Recovery − ITSCM plans to ensure validity of data • Mobility − opportunity for Council staff to access systems from anywhere, at anytime, using a Council device (due to PSN requirements) • Security − data is stored within an ISO27001/112 environment
2.3 The preferred Option − to implement an enhanced HR & Payroll environment
Enhancing a new HR & Payroll System with additional functionality will enable more streamlined and efficient delivery through the removal of integrations between multiple systems, and maintain the integrity of a single system as the definitive source for all HR & Payroll related data. The merits behind proposing a system that has added functionality, primarily one that supports modules for learning and development, pension management, enhanced self−service components, and complex workforce planning will ensure that the HR & Payroll System is one that is all encompassing for service delivery. This can in parallel be supported by a process model which provides stability, consistency and structure to how the new system is used. Learning and Development and Workforce Planning will be used as a combined module to focus on a Talent Management Strategy, one that can be achieved through the automation of the majority of transactional activities. This will result in a truer reflection of the skills and capabilities of the HR & Payroll professionals at NLC. Further to this, the self−service portal will accommodate both Employee and Manager Portals, where detailed workflows will set out approval levels and limits to create task automation; a key driver for change.
The impact of this option on the existing HR & Payroll function would be a complete shift from the dependency on using operational systems, and the disaggregated processes used to perform service delivery. NLC would need to consider a full shift towards a single applied process across the entire council. The benefits of will be a common set of processes which would determine improved management information across all aspects of HR & Payroll delivery, as a single source of data managed by the system produces a single out − something that would be highly relevant to absence management. The output: a focus on strategic HR as opposed to transactional activity, means that the core issues affecting NLC can be managed more robustly.
Enhanced functionality assumes that the new HR & Payroll System would be the single source of all data, and that it houses all the functionalities required to advance and transform the HR & Payroll function in NLC. Having additional modules to manage enhanced functionality requires a great deal of process and business change as part of the implementation; however the Council has expressed a clear desire towards a new way of working.
Page 159 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case 3 ECONOMIC CASE
3.1 Assessing efficiency opportunities
There are 113.80 FTEs that conduct HR activities and 26.50 FTEs that perform Payroll activities, across the Council. It must be noted however, that the number of FTEs provided for HR are approximate and that resources that contribute to HR processes but that have split jobs are not accounted for. This includes for example, Managers and clerical/administrative staff that contribute to entering HR/Payroll data within LLS and those resources outside of Facility Support Services that contribute to HR/Payroll processes in RE&S. Additionally, it must be noted that the number represented for HR is exclusive of resources that perform Learning & Development activities.
Overview of the number of employees, HR FTEs and employee to HR ratio, per Service
Overview of the number of FTE5 involved in HR and Payroll, across the Council
AMW Employee to HR FTE 148:1 Employee to Payroll FTE 634:1 Employee to HR & Payroll EVE 120:1
The employee to HR ratio is likely to vary across Services, as a result of a number of factors such as the extent to which Line Managers within individual Services require support, the complexity of current HR and Payroll processes, as well as the nature of the workforce.
Overall however, the employee to HR and Payroll FTE ratio at NLC is 120:1. In comparison to this figure, the upper quartile ratio of employee to HR and Payroll FTE ranges from 180:1 to 220:1 in the UK within local government. This information indicates that there is scope for improvement, subject to significant improvements in the design and operation of the HR and payroll systems and process environment.
The number of HR EVEs represented within this table is exclusive of EVEs that perform L&D activities and those resources that contribute to HR processes but have split jobs (as mentioned previously) Corporate HR currently provides day−to−day support to the three smaller Services (Inc., CE, CS and FCS). In addition to this however, Corporate HR also provides strategic/advisory services, across all Services
Page 160 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
3.2 Costs − confirmed system implementation Following the completion of the procurement process, and contract award to Midland HR, the following implementation costs have been confirmed:
STMlON xpnation of p rice Yea Year Assumes 18,000 employees 102,328 102,328 Environment & Hosting Set−up Assumes 18,000 employees 95,000 95,000 Software Charges − iTrent initial fee S seats 12,000 12,000 Software Charges − Business Objects 5 seats 63,224 15,806 79,030 Services − Project Management Phi 56 days / Ph2 14 days 118,912 29,728 148,640 Services − Functional Consultancy Phi 56 days / Ph2 14 days 21,367 7,432 28,799 Services − Configuration Phi 23 days / Ph2 8 days 14,864 3,716 18,580 Services − Integration Phi 16 days / Ph2 4 days 9,290 4,645 13,935 Services − Data Migration Phi 10 days I Ph2 5 days 9,290 4,645 13,935 Services − Reporting / Ml Phi 10 days / Ph2 5 days 7,432 3,716 11,148 Services − Testing Phi 8 days / Ph2 4 days 9,290 7,432 16,722 Services −Training Phi 10 days / Ph2 8 days 76,000 76,000 Fixed price premium 10,200 10,200 Environment & Hosting Set−up 2env X (850 X 6mth) 7,709 7,709 Additional functionality (P110) 2,965 x £2.60 ,od: Interfaces with Other Systems 50,000 50,000 −Time Management Card Reader Interface NLC estimate 50,000 50,000 − mySwis Interface NLC estimate 50,000 50,000 − BCMS interface N estimate 50,000 50,000 − SeeMIS interface NLC estimate 50,000 50,000 − Financial Ledger Interface I−3.3 − LTqtal implementation costs for Midland HR
Costs − confirmed system annual operating costs
10 Page 161 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
3.4 Costs − forecast Council project team Through discussions with key stakeholders and project planning, the following project team budget has been defined for the first phase of the implementation. A further estimate of flOOk is forecast for phase 2.
3.5 Costs − business & operating model change management To support the Council with the implementation of operational changes to deliver the required benefits and outcomes, EY has been appointed to lead on this workstream, supported by the Council's project team and change leads across the organisation. The support during phase 1 has been forecast as £478,003. A provision of £lOOk has been estimated for phase 2, which may or may not be required.
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Page 162 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
3.6 Savings − operational efficiencies
The current operating cost associated with the HR & Payroll function is approximately £6.855,493. This is inclusive of the employee costs associated with HR and Payroll employees, as well as the cost associated with the system landscape that currently supports HR and Payroll activities, across the Council. These figures are reflective of the costs highlighted previously in Section 3 and have been broken−down in a number of categories in the table below, for reference.
Most notably, costs associated with HR employees has been split based on the assumption that employees spend approximately 30% on strategy and management support, 50% on transactional activities, and the remaining 20% on managing data and reporting. The other category which has been broken−down in the table is the cost associated with the current system landscape. Costs have been split in terms of the cost associated with Cyborg (E159,537), all other systems that support HR & Payroll activities (195,408) and the cost of internal ICT support and maintenance resources (E5,000):
Payroll resources £700,982 − Strategic HR resources £1,573,235 Transactional HR resources £2,622,058 HR reporting resources £1,048,823 Cyborg support & maintenance £159,537 Other 3rd party system support & maintenance £195,408 Internal ICT support & maintenance resources £5,000 Total £6,855,493
In addition to the figures provided above, a quantitative benefit analysis has been conducted. This analysis has been carried out taking into consideration a number of factors including benchmark ratios and potential efficiency savings. Experience of other local authorities has proposed that the employee to HR & Payroll ratio can be improved at NLC based on other councils operating on a ratio between 180:1 and 210:1. Further to this, with relevance to efficiency savings, it is typically estimated that the implementation of a modern HR & Payroll system wherein there is self−service and workflow functionality will enable significant efficiencies. An "optimism bias" has been applied to our raw efficiencies estimates, particularly in the initial years post implementation, to reflect on challenges in embedding new processes and ensuring effective compliance. Below is a forecast of the anticipated efficiency benefits:
Payroll FTEs 26.50 225312 199i:19.10j1852 HR FTEs 113.80 96.73 88.99 84.54 82.01 79.55 −−4−−−−−−J−−−−.− H−−−−−−− ...... Total FTEs 140.30 L 119.26 109.71 104.23 101.10 98.07 Incremental efficiency saving 15% 8 5% −− Employee to HR ratio 148:1 174:1 189:1 199:1 205:1 211:1 Employee to Payroll ratio 634:1 746:1 811:1 853:1 880:1 907:1 Employee to HR & Payroll ratio 120:1 141:1 153:1 161:1!:166 171:1
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Page 163 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
Below is a summary of how this translates in terms of the impact on current staffing levels and current ICT costs
r..5
Payroll 0.00 1.99 4.62 6.47 7.40 7.98
HR 0.00 8.54 19.85 27.80 31.79 34.25
Total FTE (reduction against FYi 3/14) 0.00 10.52 24.47 34.27 39.20 42.23
Total FIE saving £0 £417,815 £1,109,879 £1,575,676 £1,801,452 £1,929,976
Current [Cr cost saving (Cyborg, etc) £0 £196,604 £196,604 £196,604 £196,604 £196,604
New ICT costs (from Midland iTrerit) −fl75,792 −U82,824 −f 190,137 −U97,742 •f205,652 −213,878
Net recurrent ICT costs −U75,792 £13,780 £6,467 −f 1, −9,048 417,274
13 Page 164 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
3.7 Net present value analysis Incorporating the above cost and benefits analysis, the resultant NPV is anticipated:
Midland HR software & services £806,906 £77,120 £0 £0 £0 £0
Totals £806,906 £77,120 £0 £0 CO £0
Core Council project team £318,917 £100,000
Council data quality and input team £120,000
Change management (EY) £478,003 £100,000
Totals £916,920 £200,000 £0 £0 EQ £0
T7i
ksl Midland HR (including 4% uplift) £175,792 £182,824 £190,137 £197,742 £205,652 £213,878
Totals £175,792 £182,824 £190,137 £197,742 £205,652 £213,878
Annual spend £1,899,618 £459,944 £190,137 £197,742 £205,652 £213,878
From benefits analy5 £0 −€614,419 −€1,306,483
Net annual cashflow £1,899,618 −€154,475 −€1,116,347 −€1,574,538 −€1,792,404 −€1,912,702
Discount factor @3.5% 1.0000 0.9662 0.9335 0.9019 0.8420 0.8714
Discounted annual value £1,899,618 4149,251 −€1,042,122 −€1,420,143 −€1,509,156 −€1,666,809
Cumulative NPV £1,899,618 £1,750,366 £708,245 −€711,898 −€2,221,055 43,887,864
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Page 165 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case 3.8 Qualitative Benefits
In addition to the cost implications provided above, a number of benefits are associated with the proposed implementation. Provided below is an overview of the key benefits that are associated with the procurement of a modern HR & Payroll function:
A single source of data Improved management reporting through the availability of real−time data, to enable Management to making informed decisions and provide valuable insights into key areas of concern Increased efficiency through the use of self−service functionality and workflows (this includes both employee and Manager self−service): • Enables employees and Line Managers to complete basic transactional processes on the system • Reduces HR's involvement in labour intensive data−entry tasks • Reduces the amount of duplication and paper−based processes • Decreases time to complete processes • Allows for greater focus to be placed on strategic HR initiatives • Saves costs currently spent on printing and postage Increased visibility of key HR challenges facing individual Services through the use of one single source of data Greater consistency in the way that HR services are delivered across the Council through the standardisation of processes and ultimately improved end−user satisfaction
3.9 Risks & Issues
There are a series of risks and issues facing NLC in terms of the economic case. Primarily, the Cyborg commercial agreement expires in February 2016, which requires all capital expenditure to be deployed and operational with sufficient contingency periods in order to mitigate this risk. However, below is a summary of the critical issues that need to be acknowledged and proactively managed through the project.
Dedicated Council project While Midland HR will bring expertise and knowledge, the Council's resources will capacity & capability be critical to delivering the project. The implementation support provided by Midland HR is for an 'assisted build', while means that the greatest level of input for configuration, data migration, integration and testing will need to come from the Council.
Furthermore, to ensure that the new solution, processes and working practices are fully embedded within Council operations, there will need to be significant effort placed in identifying the practical changes to employees' work, processes and skills.
Current operating model for HR The current operating model is based on a service−specific design of HR processes, information, system and support. The delivery of this business case is predicated by a fundamental change in this approach, with standardised HR and payroll processes, procedures and practices across the Council. Furthermore, the respective role of managers and HR will also need to change, to maximise benefits, with greater emphasis on managers being effective people managers, and embracing self−service.
Cultural readiness & leadership Employee and manager self−service is not the norm at the Council. The benefits of moving to a modern, web−based, highly automated solution can only be achieved if the system is adopted by the business and used by all managers, and by staff that
15 Page 166 of 197 North Lanarkshire Council HR & Payroll Systems & Process Transformation Full Business Case
−T "QrisLa have access to the Council network.
Stakeholder engagement across The project has been largely the domain of HR, ICT and payroll practitioners. The the business Council cannot expect the necessary change of working practices to occur unless departmental management teams, front line managers and Members are actively engaged and part of the change process.
Timescales The timescale for phase 1 is challenging. Resource commitment, clear and supportive leadership, action−orientated and positive behaviours will be fundamental to making this happen.
Technology led, and a lack of There is a significant risk that the project will focus on "getting the system to work", business change rather than driving benefits from the project. Business change and phase 2 must remain the primary aim of the project, rather than aiming low to just get the system running on time
16
Page 167 of 197
Page 168 of 197 AGENDA ITEM 16
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref Date 27/11/19
Contract Award for Metal Doors and Blacksmith Works – Service and Maintenance 2020-2024
From James McKinstry, Head of Asset and Procurement Solutions Email [email protected] Telephone Graham Proudfoot Procurement and Support Manager, 01698 403957
Executive Summary Committee is asked to approve the award of a Contract for Metal Doors and Blacksmith Works – Service and Maintenance 2020-2024 (the ‘Contract’) to; City Gate Construction (Scotland) Ltd.
The Contract is for an initial period of two years from the date of award of the Contract. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 24 months.
The value of the Contract is up to Three Million and Eighty Thousand Pounds (£3,080,000).
Recommendations It is recommended that the Committee approves the award of the Contract for Metal Doors and Blacksmith Works – Service and Maintenance 2020-2024 to City Gate Construction (Scotland) Ltd to a maximum value of £3,080,000.
This recommendation follows the completion of a contract award procedure, where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council.
The Plan for North Lanarkshire
Priority Improve North Lanarkshire's resource base
Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
Page 169 of 197
1. Background
1.1 The Contract makes provision for the servicing, maintenance, repair and replacement of metal doors and associated blacksmith works across the Councils corporate property portfolio and for the provision of similar works within properties operated by North Lanarkshire Properties and Culture NL.
2. Report
2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council.
2.2 The value of the Contract dictated that the contract award procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. The contract opportunity was published in the OJEU and on the Public Contracts Scotland website. The Open procurement procedure was adopted.
2.3 Based on the criteria and scoring methodology set out in the procurement documents, an evaluation of the tender responses was completed by members of the UIG. Selection stage responses were evaluated first, tenderers who satisfied the selection stage criteria progressed to the award stage evaluation.
2.4 The contract award recommendation is made on the basis of the Tenderer who submitted the most economically advantageous tender.
2.5 The tender submitted by City Gate Construction (Scotland) Ltd has been evaluated as representing the most economically advantageous tender for this Contract.
2.6 Appendix 1 provides a summary of the evaluation process, Appendix 2 provides a summary of the procurement process and Appendix 3 details the SME status and location of Tenderers.
2.7 Officers from Enterprise and Communities will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to Contract and Supplier Management.
3. Equality and Diversity
3.1 Fairer Scotland Duty The report is not about a key strategic decision and not subject to the Fairer Scotland Duty.
3.2 Equality Impact Assessment An Equality Impact Assessment is not required.
Page 170 of 197 4. Implications
4.1 Financial Impact The value of the Contract is up to £3,080,000 including the options to extend the Contract.
The costs associated with contract delivery will be contained within existing budgets across the Service.
Savings Considerable effort has been made to update the Specification and Schedule of Rates for this Contract, to ensure it is fit for purpose and delivers best value for the Council. Given the updates that have been made to the Specification and Schedule of Rates, it is not possible to complete a full cost comparison exercise in order to identify savings against current contract rates. Of the Schedule of Rates items that can be compared, the new Contract indicates a saving of circa 50% has been achieved.
Price Stability Contract pricing is fixed for the first year of the Contract. Thereafter the Contract makes provision for pricing to be adjusted by the application of the Building Calculation Information Service (BCIS) price index as provided by the Royal Institution of Chartered Surveyors.
4.2 HR/Policy/Legislative Impact
Community Benefits The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. The successful Tenderer has committed to delivering a range of community benefits, these include;
Targeted Recruitment and Training Supply Chain Initiatives Social Enterprise Young Person Engagement
The community benefits that will be delivered do not include the creation of jobs or apprenticeships.
Fair Work Practices The successful Tenderer has also demonstrated commitment to Fair Work practices including payment of the real Living Wage to staff employed in the delivery of the Contract.
Equalities The contract award procedure excludes any Tenderer where a complaint had been upheld after investigation by the Equality and Human Rights commission or its predecessors and a failure to take remedial action.
4.3 Environmental Impact There is no environmental impact arising from this report.
4.4 Risk Impact
Page 171 of 197 There are no significant risk implications arising from this report.
5. Measures of success
The Contract will deliver the following outcomes;
5.1 the appointment of a Service Provider who has the experience and capability to deliver an innovative, high quality and responsive service;
5.2 the contract award procedure is compliant with the procurement legislation and internal procedures;
5.3 that best value is both demonstrable and achieved;
5.4 that the Contract secures a range of community benefits;
5.5 that the Contract supports payment of the living wage to staff employed in the delivery of the Contract;
5.6 that the Contract performance is proactively managed against a number of Key Performance Indicators; and
5.7 a collaborative approach to the procurement of the requirement, minimising the burden on internal resource and leveraging the economies of scale.
6. Supporting documents
The plan for North Improve economic opportunities and outcomes, and to improve Lanarkshire North Lanarkshire’s resource base
Appendix 1 Summary of Evaluation Process
Appendix 2 Summary of Procurement Process
Appendix 3 SME status and location of all Tenderers
James McKinstry Head of Asset & Procurement Solutions
Page 172 of 197 Appendix 1 – Summary of Evaluation Process
Recommended Final Tender Tenderer Name Final Rank for Contract Score Award (Yes/No)
City Gate Construction (Scotland) Ltd 96.13% 1 Yes
Taymore Ltd 68.06% 2 No
Welding Engineers Ltd 64.24% 3 No
Ascot Doors Ltd Failed to satisfy selection stage criteria
Page 173 of 197 Appendix 2 – Summary of Procurement Process
Contract Title Metal Doors and Blacksmith Works – Service and Maintenance 2020-2024
Contract takes effect from 1 December 2019
Total contract period that can be adopted 48 months by the Council (months) Estimated total contract value including £3,080,000 extension option Governing UK Regulation Public Contracts (Scotland) Regulations 2015
Procurement procedure adopted Open Procedure
Interest List – number of organisations 10 that downloaded the procurement documents from the procurement portal
Number of tenders received 4
Number of non−compliant tenders 0
Number of compliant tenders 4
Number of providers recommended for 1 contract award Basis of contract award Most economically advantageous tender
30.00% Quality 70.00% Price
Evaluation Team Staff from Enterprise and Communities
Page 174 of 197 Appendix 3 – SME status and location of all Tenderers
Name of Tenderer Size of Tendering Location Organisation (Local Authority/Council Area) (Micro, Small, Medium or Large) City Gate Construction Medium Renfrewshire Council (Scotland) Ltd
Taymore Ltd Small South Lanarkshire Council
Welding Engineers Ltd Small South Lanarkshire Council
Ascot Doors Ltd Medium North Lanarkshire Council
Page 175 of 197
Page 176 of 197 AGENDA ITEM 17
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref KB/DR Date 27/11/19
Conference: Scottish Licensing Law and Practice – The Essential Licensing Update 2019
From Archie Aitken, Head of Legal and Democratic Solutions Email [email protected] Telephone 01698 302401
Executive Summary The purpose of this report is to advise the Committee of an invitation received in respect of Members attendance at the Scottish Licensing Law and Practice (SLLP) conference entitled the Essential Licensing Update 2019.
Recommendations That Committee approve the attendance of one Elected Member at the Essential Licensing Update 2019 conference on Friday, 6 December 2019.
The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities
Ambition statement (14) Ensure the highest standards of public protection
1. Report
1.1 An invitation coming under the remit of this Committee, has been received for representatives to attend a conference entitled the Essential Licensing Update 2019.
1.2 The Conference is the SLLP's annual end of year event being held on 6 December 2019 from 10 am to 1 pm at the Royal College of Physicians and Surgeons of Glasgow, 232-242 St. Vincent Street, Glasgow.
1.3 The line up for the event includes:- • Protecting Children from Harm: Preventing Sexual Exploitation; • Minimum Pricing Evaluation Latest; • Civic Government Law Update; • Gambling Latest: What's on the Cards, and • Checking Out Due Diligence
Page 177 of 197 2. Equality and Diversity
2.1 Fairer Scotland Duty
The Fairer Scotland Duty is not applicable to the content of this report.
2.2 Equality Impact Assessment
There is no requirement for an Equality Impact Assessment.
3. Implications
3.1 Financial Impact
The Conference fee is £88.00 per delegate.
3.2 HR/Policy/Legislative Impact
There are no specific HR/Policy or Legislative impacts.
3.3 Environmental Impact
There are no environmental impacts.
3.4 Risk Impact
There are no identified risks.
4. Measures of success
5.1 Attendance at the Conference will enhance the Elected Member’s knowledge in relation to this subject matter.
5. Supporting documents
5.1 There are no supporting documents.
Head of Legal and Democratic Solutions
Page 178 of 197 AGENDA ITEM 18A
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref JA/CS Date 27/11/19
Re-allocation of land at Dykehead Road, Airdrie from Environmental Assets to Enterprise & Housing Resources
From James McKinstry, Head of Asset & Procurement Solutions Email [email protected] Telephone Chris Sullivan 01698 302993
Executive Summary The purpose of this report is to seek council consent for the re-allocation of land currently within the remit of Environmental Assets to Enterprise & Housing Resources. This will enable Enterprise & Housing Resources to develop the site with new build council housing in keeping with the council’s strategy to increase council housing provision.
Recommendations It is recommended that the Finance and Resources Committee:
(1) Consider the contents of this report and accompanying appendix; and
(2) Agree the proposal for this site to be re-allocated from the council’s Environmental Assets to Enterprise & Housing Resources for the purpose of construction of new build council housing. It is recommended that Committee approve the re-allocation of the land from Environmental Assets to Enterprise & Housing Resources on the understanding that any SportScotland requirements are met and appropriate planning consents are obtained before any development commences.
The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities
Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth
1. Background
1.1 The council’s Strategic Housing Investment Plan outlines the sites that have been identified by Enterprise & Housing Resources as suitable for new build council housing provision. The site at Dykehead Road, Airdrie is included in the paper submitted to a meeting of the Enterprise and Housing Committee on 5 September 2018. The contents of that report were noted and approved in keeping with the Committee paper.
1.2 The land currently sits within the remit of Environmental Assets and would require to be re-allocated to Enterprise & Housing Resources so that the land falls under their remit and control in future.
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2. Report
2.1 Enterprise and Housing Resources have approached Asset & Procurement Solutions to assist with the proposed re-allocation of land at Dykehead Road, Airdrie, extending to 33,223 square metres or thereby, from Environmental Assets to Enterprise & Housing Resources. The land is identified on the plan attached to this report at Appendix 1.
2.2 Environmental Assets have confirmed that they have no objection to the land being released from their remit and they have submitted a report to the Head of Asset & Procurement Solutions to that effect.
2.3 Where there is no objection from Services or local Members to land or property being declared Surplus and passed to another Service or marketed for sale, the Head of Asset & Procurement Solutions has delegated authority to agree the Surplus declaration without the requirement to report to Committee on every case. However, in this instance a local Member has raised questions about the loss of this amenity area for the local community and that the land serves a purpose not available in much supply in the locality. In addition, questions were raised over the current open space provision and some of the land in periodic use for a football pitch.
2.4 Should the site be taken forward for development, SportScotland will be formally consulted on the loss of the football pitch. In past experience where a football pitch is not in active use and SportScotland agree with this position, the way of addressing the loss of a football pitch often recommended by SportScotland is in the form of upgrading existing local sports facilities to more comprehensively serve the local community. If the development is to proceed, the impact on open space provision for the local community would require to satisfy the requirements of the council’s Planning Service. The Planning Service will require to take the impact of the development into account and may impose conditions on any planning consent to mitigate the loss of open space. 2.5 It is recommended that Committee approve the re-allocation of the land from Environmental Assets to Enterprise & Housing Resources on the understanding that any SportScotland requirements are met and appropriate planning consents are obtained before any development commences.
3. Equality and Diversity
3.1 Fairer Scotland Duty
No impact under the Fairer Scotland Duty in relation to this report.
3.2 Equality Impact Assessment
Consideration has been given to the equality impact and no issues have been identified as the provision of additional social housing will benefit those in need of assistance within the community.
Page 180 of 197
4. Implications
4.1 Financial Impact
An accounting payment will be required to be made between the Housing Revenue Account and the General Services Account to reflect the value of the land. This will be assessed by the Estates team of Asset & Procurement Solutions if approval of the re- allocation of the land is confirmed.
There will be a reduction in the streetscene section’s maintenance costs of £11,754 per year. However there may be a financial liability to the council for future maintenance of any amenity areas within the new council housing area.
4.2 HR/Policy/Legislative Impact
There are no specific impacts under this heading associated with this report.
4.3 Environmental Impact
There are no specific impacts under this heading associated with this report.
4.4 Risk Impact
There are no specific impacts under this heading associated with this report.
5. Measures of success
5.1 The re-allocation of the land from Environmental Assets to Enterprise & Housing Resources will allow the development of this site for social housing in keeping with the council’s strategy to increase housing capacity for the benefit of the community.
6. Supporting documents
6.1
Appendix 1 Location Plan
James McKinstry Head of Asset & Procurement Solutions
Page 181 of 197
Appendix 1
Page 182 of 197 AGENDA ITEM 18B
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref JA/CS Date 27/11/19
Re-allocation of land at Mabel Street, Motherwell from Environmental Assets to Enterprise & Housing Resources
From James McKinstry, Head of Asset & Procurement Solutions Email [email protected] Telephone Chris Sullivan 01698 302993
Executive Summary The purpose of this report is to seek council consent for the re-allocation of land currently within the remit of Environmental Assets to Enterprise & Housing Resources. This will enable Enterprise & Housing Resources to develop the site with new build council housing in keeping with the council’s strategy to increase council housing provision.
Recommendations It is recommended that the Finance and Resources Committee:
(1) Consider the contents of this report and accompanying appendix; and
(2) Agree the proposal for this site to be re-allocated from the council’s Environmental Assets to Enterprise & Housing Resources for the purpose of construction of new build council housing. Committee approval is sought to re-allocate the land from Environmental Assets to Enterprise and Housing Resources on the understanding that reasonable steps will be undertaken to provide the boxing club with alternative premises prior to any work to develop the site commencing.
The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities
Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth
1. Background
1.1 The council’s Strategic Housing Investment Plan outlines the sites that have been identified by Enterprise & Housing Resources as suitable for new build council housing provision. The site at Mabel Street, Motherwell is included in the paper submitted to a meeting of the Enterprise and Housing Committee on 5 September 2018. The contents of that report were noted and approved in keeping with the Committee paper.
1.2 The land currently sits within the remit of Environmental Assets and would require to be re-allocated to Enterprise & Housing Resources so that the land falls under their remit and control in future.
Page 183 of 197
2. Report
2.1 Enterprise and Housing Resources have approached Asset & Procurement Solutions to assist with the proposed re-allocation of land at Mabel Street, Motherwell, extending to 6,434 square metres or thereby, from Environmental Assets to Enterprise & Housing Resources. The land is identified on the plan attached to this report at Appendix 1
2.2 Environmental Assets have confirmed that they have no objection to the land being released from their remit and they have submitted a report to the Head of Asset & Procurement Solutions to that effect.
2.3 Where there is no objection from Services or local Members to land or property being declared Surplus and passed to another Service or marketed for sale, the Head of Asset & Procurement Solutions has delegated authority to agree the Surplus declaration without the requirement to report to Committee on every case. However, at present the Forgewood Boxing Club occupies a single storey hutted facility on the site. During the consultation process two local members commented that they had concerns that Forgewood Boxing Club had not yet agreed a location or type of suitable premises that would suit a relocation of the Boxing Club. With this in mind they requested that “some form of provision is put in place to allow the continued use of the premises, as is, up until the club sign off and take lease of an agreeable premises. This should also allow a reasonable time for moving of equipment.” It is the council’s intention, via North Lanarkshire Properties, to make available suitable alternative premises for the boxing club to relocate to prior to any development of the site commencing. Committee approval is sought to re-allocate the land from Environmental Assets to Enterprise and Housing Resources on the understanding that reasonable steps will be undertaken to provide the boxing club with alternative premises prior to any work to develop the site commencing. 2.4 Enterprise & Housing Resources applied for planning consent for the development of the land for social housing. The council’s Planning and Place issued a Decision Notice on 18 June 2019 confirming agreement to the development of the land from a planning perspective under reference19/00161/FUL.
3. Equality and Diversity
3.1 Fairer Scotland Duty
No impact under the Fairer Scotland Duty in relation to this report.
3.2 Equality Impact Assessment
Consideration has been given to the equality impact and no issues have been identified as the provision of additional social housing will benefit those in need of assistance within the community.
Page 184 of 197
4. Implications
4.1 Financial Impact
An accounting payment will be required to be made between the Housing Revenue Account and the General Services Account to reflect the value of the land. This will be assessed by the Estates team of Asset & Procurement Solutions if approval of the re- allocation of the land is confirmed.
There will be a reduction in the streetscene section’s maintenance costs of £1,698 per year. However there may be a financial liability to the council for future maintenance of any amenity areas within the new council housing area.
4.2 HR/Policy/Legislative Impact
There are no specific impacts under this heading associated with this report.
4.3 Environmental Impact
There are no specific impacts under this heading associated with this report.
4.4 Risk Impact
There are no specific impacts under this heading associated with this report.
5. Measures of success
5.1 The re-allocation of the land from Environmental Assets to Enterprise and Housing Resources will allow the development of this site for social housing in keeping with the council’s strategy to increase housing capacity for the benefit of the community.
6. Supporting documents
6.1
Appendix 1 Location Plan
James McKinstry Head of Asset & Procurement Solutions
Page 185 of 197
Appendix 1
Page 186 of 197 AGENDA ITEM 19
North Lanarkshire Council Report Finance and Resources Committee
☒approval ☐noting Ref JM/IM Date 27/11/19
Cumbernauld Indoor Bowling Club - Proposed Lease Variation
From James McKinstry, Head of Asset and Procurement Solutions Ian Martin Email [email protected] Telephone 01236 632 667
Executive Summary This report concerns a proposal to vary the existing lease and grant an unexpired lease term of 25 years to Cumbernauld Indoor Bowling Club to satisfy potential grant funding requirements.
The report outlines the following;
The existing occupation and previous approval provided by the Council’s Infrastructure Committee on 7 February 2018. The proposed heads of terms inclusive of the extended lease term.
Recommendations
It is recommended that the Finance and Resources Committee:
(1) Approves the proposed lease terms detailed within Section 2.2 of this report.
(2) Agrees all other terms and conditions are to be adjusted by the Head of Asset & Procurement Solutions.
The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities
Page 187 of 197 1. Background
1.1 The existing lease between North Lanarkshire Council and Cumbernauld Indoor Bowling Club commenced on 28 October 2016 and expires on 27th October 2021. The passing rental is £15,000 per annum exclusive of VAT.
1.2 The building has suffered from water ingress in recent years. The Council recently carried out an inspection of the roof and produced a report on the condition which recommended various repairs to parts of the roof. Under the lease terms the Club are responsible for all repairs and maintenance, but due to the financial constraints the Club are not in a position to fund the repairs on their own and have requested assistance from the Council and external funders.
1.3 The Council has provided details of various funding sources to the Club but is it is likely that a longer term lease will be necessary to satisfy the level of funding required.
1.4 The Council’s Infrastructure Committee on 7 February 2018 consented to a 12 year extension from 28 October 2021 however it is understood that due to the extent of the costs involved a longer lease term of 25 years will be required by the Club.
2. Report
2.1 Description 2.1.1 The property comprises a steel portal frame building with steel profile cladding and roof. 2.1.2 The property is located on North Carbrain Road within Cumbernauld Town Centre as shown on the attached plan. 2.1.3 The building extends to a gross internal area of 2,331 sq m (25,091 sq ft) or thereby. 2.2 Lease proposal Provisional agreement has been reached with Cumbernauld Indoor Bowling Club on the following terms and conditions:
2.2.1 Lease Extension: Unexpired term of 25 years from the date of variation.
2.2.2 Rent: The rent will remain at the current level of £15,000 per annum exclusive of VAT.
2.2.3 Rent Review: The rent shall be reviewed 5 yearly based upon the market rent.
2.2.4 Legal Fees: Both parties shall bear their own legal fees in connection with this transaction.
2.3 All other terms and conditions to be adjusted by the Head of Asset & Procurement Solutions.
Page 188 of 197 3. Equality and Diversity
3.1 Fairer Scotland Duty There are no applicable considerations.
3.2 Equality Impact Assessment There are no considerations in this regard.
4. Implications
4.1 Financial Impact The proposed lease provides income over a period of 25 years for the Council.
4.2 HR/Policy/Legislative Impact There are no specific impacts resulting from this proposal.
4.3 Environmental Impact There are no specific impacts resulting from this proposal.
4.4 Risk Impact Failure to enter into agreement with the existing tenant could result in the lease being terminated early losing the potential income stream for future years. The facility for the local community will also be lost.
5. Measures of success
5.1 The proposed lease may be measured upon the ability of the club to fulfil the lease terms and costs associated with the repairing and maintenance obligations as well as providing a continued service to the local community.
6. Supporting documents
6.1 Appendix 1 Location Plan.
James McKinstry Head of Asset and Procurement Solutions
Page 189 of 197 Appendix 1
Page 190 of 197 AGENDA ITEM 20
North Lanarkshire Council Report Finance and Resources Committee
IM/DT/NLP/WARDS ☒approval ☐noting Ref Date 27/11/19 11,17 and 19
North Lanarkshire Properties LLP – Consent for Sale of various properties
From James McKinstry, Head of Asset and Procurement Solutions Ian Martin Email [email protected] Telephone Tel: 01236 632667
Executive Summary The purpose of this report is to seek council consent for the sale of North Lanarkshire Properties LLP’s interests in various properties.
Recommendations It is recommended that Committee grants consent, required under the terms of the Limited Liability Partnership Agreement, to North Lanarkshire Properties LLP to dispose of the properties detailed at Section 2.1 within this report.
The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes
Ambition statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure
Page 191 of 197 1. Background
1.1 The Limited Liability Partnership Agreement among NL Property Investments Limited, North Lanarkshire Council and North Lanarkshire Properties LLP (NLP) sets out the basis on which NLP is to be organised and the rights and obligations of NLP, NL Property Investments Limited and the council. Clause 14.1.17 provides that NLP is not permitted to sell, transfer or otherwise dispose of any asset with a value in excess of £50,000 without the prior written consent of the council.
1.2 NLP’s Management Committee has considered on the 5th of September 2019 a report regarding the potential sale of the assets detailed below.
2. Report
2.1 NLP has been developing an investment strategy and as part of this a number of assets, including the properties detailed below have been identified as being suitable for sale. The sale of the assets could provide scope for NLP to make additional payments towards their loan with Barclays Bank thereby reducing future borrowing and interest payments or alliteratively provide funding to invest in their portfolio.
Office space at 18 to 20 Windmillhill Street, Motherwell; Office space at 110 to 114 Windmillhill Street Motherwell; Industrial space 13 to 23 Hagmill Road (including vacant site at 25-29 Hagmill Road), Shawhead Ind. Est., Coatbridge; and Office space Motherwell Town Hall Business Centre, Motherwell;
2.2 The properties are detailed on the plans attached at Appendix 1. 2.3 NLP now wish to progress negotiations with their potential purchasers and move the proposed sales forward.
2.3 The sale of these properties now requires the council’s consent to proceed under the terms of the Limited Liability Partnership Agreement. Barclays consent will also be required prior to the sales.
3. Equality and Diversity
3.1 Fairer Scotland Duty
There is no requirement to carry out an assessment in this regard.
3.2 Equality Impact Assessment
There is no requirement to carry out an assessment in this regard.
4. Implications
4.1 Financial Impact
There should be no direct financial impact for the council as a result of this report.
The council is the potential purchaser for the property’s located at Windmillhill Street detailed above. In the event of terms being agreed with NLP the asset acquisition will
Page 192 of 197 be the subject of a further committee report if the price agreed breaches the delegation threshold.
4.2 HR/Policy/Legislative Impact
There are no specific impacts
4.3 Environmental Impact
There are no specific impacts arising out of this proposal.
4.4 Risk Impact
There are no specific risks associated with this report.
5. Measures of success
5.1 The sale of the properties will support North Lanarkshire Properties LLP’s investment strategy and sale of this property will generate a capital receipt.
6. Supporting documents
Appendix 1 Location Plans
James McKinstry Head of Asset and Procurement Solutions
Page 193 of 197
Appendix 1 Location Plans
Page 194 of 197
Page 195 of 197
Page 196 of 197
Page 197 of 197