Perth & Kinross Council: the Audit of Best Value And
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The Audit of Best Value and Community Planning Perth & Kinross Council Prepared for the Accounts Commission August 2008 The Accounts Commission The Accounts Commission is a statutory, independent body which, through the audit process, assists local authorities in Scotland to achieve the highest standards of financial stewardship and the economic, efficient and effective use of their resources. The Commission has four main responsibilities: • securing the external audit, including the audit of Best Value and Community Planning • following up issues of concern identified through the audit, to ensure satisfactory resolutions • carrying out national performance studies to improve economy, efficiency and effectiveness in local government • issuing an annual direction to local authorities which sets out the range of performance information they are required to publish. The Commission secures the audit of 32 councils and 41 joint boards (including police and fire and rescue services). Local authorities spend over £18.9 billion of public funds a year. Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Government and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds. Perth & Kinross Council 1 Contents The Audit of Best Value Managing finance Page 2 Page 21 Commission findings Asset management Page 4 Continuous improvement activity Overall conclusions Page 22 Page 6 Competitiveness Part 1. Does the council have clear strategic direction? Delivering efficiencies Page 9 Page 23 The local context Equal opportunities Page 10 Page 24 Leadership and culture Part 3. How are services Page 11 performing? Page 26 Setting a clear direction Page 13 Statutory performance indicators Page 27 Community engagement Page 14 Customer focus Page 28 Part 2. Is the council organised to deliver better services? Education and children’s services Page 16 Page 29 Working in partnership and Housing and community care Community Planning Page 30 Page 17 The local economy Performance management and Page 31 reporting Page 18 Creating a sustainable environment Page 32 Scrutiny Part 4. What needs to improve? Managing people Page 35 Page 20 Perth & Kinross Council improvement agenda Page 36 2 The Audit of Best Value The Audit of Best Value 3 This report is made by the Controller As Best Value and Community of Audit to the Accounts Commission Planning encompass all the activities under section 102(1) of the Local of a council it is not realistic to audit Government (Scotland) Act 1973. After everything in depth, so we plan our considering it the Commission may detailed work in two ways: do any or all of the following: • Where possible, we draw on • direct the Controller to carry out the findings of other scrutiny further investigations processes, such as the work carried out by the council’s • hold a hearing external auditors and by inspectorates. These are • state its findings. incorporated into our report. The Local Government in Scotland Act • We select certain aspects of the 2003 introduced new statutory duties council’s performance for detailed relating to Best Value and Community audit investigation. A wide range of Planning. The scope of Best Value and sources, including the council’s own Community Planning is very broad assessment of its performance, but, in general terms, a successful reports issued by external audit and council will: inspections, and national statutory performance indicators (SPIs), • work with its partners to identify a informs this selection. clear set of priorities that respond to the needs of the community in The report reflects this selective both the short and longer term approach, with detailed commentary on some areas and limited or no • be organised to deliver those coverage in others. While we have priorities made some comparisons with other councils, our overall approach has • meet and clearly demonstrate focused on performance trends and that it is meeting the community’s improvement within Perth & Kinross needs Council. The report also reflects the picture available at the time of our • operate in a way that drives main audit work, conducted between continuous improvement in all February and March 2008. its activities. We gratefully acknowledge the The challenge for local government is co-operation and assistance provided to find new ways of working across to the audit team by Perth & Kinross services and with other bodies to Council. We would particularly like achieve the best results for citizens to thank Councillor Miller, the leader and service users. The key objectives of the council; Bernadette Malone, of this audit were to: the chief executive; and Barbara Renton, Improvement and Innovation • assess the extent to which Perth Manager, and all other members and & Kinross Council is meeting officers contacted during the audit. its duties under the Local Government in Scotland Act 2003 • agree planned improvements with the council. These will be reviewed by the council’s external auditor over the next three years. 4 Commission findings Commission findings 5 1. The Commission accepts this 4. However, there are areas of service report on the performance of Perth delivery where the council needs & Kinross Council’s statutory duty to to further improve, most notably secure Best Value and to initiate and in relation to its planning function facilitate the Community Planning and to educational attainment. We process. The Commission recognises acknowledge that the council’s rate that the report gives a broad picture of service improvement is good and of the council’s performance based that the council itself recognises the on the work of Audit Scotland and the areas where improvement is needed findings of other scrutiny bodies such in service delivery. The council should as Inspectorates and that it does not also give attention to creating linkages attempt a comprehensive review of between its asset management, all service delivery. We acknowledge financial management and workforce the co-operation and assistance given planning arrangements. A particular to the audit process by members and challenge for the future is the need officers of the council. to provide affordable housing in the context of an increasing population. 2. Perth & Kinross Council demonstrates a strong commitment 5. The Commission considers that to Best Value. We acknowledge Perth & Kinross Council has the the effective leadership of the capacity and ability to build on its council, good relationships between current performance and looks councillors and officers and the forward to receiving an improvement close involvement of its Community plan with measurable and achievable Planning partners. The council outcomes which will build on the also has effective performance good work being done by the council. management arrangements. 3. The Commission also welcomes the council’s: • high level of self-awareness • culture of continuous improvement and focus on what works • good corporate working • engagement with employees • implementation of the single status agreement with no disruption to service delivery • open, clear and balanced public reporting. 6 Overall conclusions Overall conclusions 7 Perth & Kinross Council to challenge service delivery between political group leaders demonstrates a strong models and deliver further is a key feature in providing clear commitment to Best Value and efficiencies. strategic direction. Parliamentarians continuous improvement and an are particularly well engaged through appetite for better services for the The full impact of recent changes the Parliamentary Forum. There is a area. The council and its strategic has not yet fully fed through to cohesive executive officer team that partners work well together, are service performance. In particular, deals with strategic cross-council clear about the priorities for the area the council has important issues in a professional manner and and are committed to the Perth and decisions to make if it is to meet provides regular scrutiny of financial Kinross Single Outcome Agreement its affordable housing targets and and performance information. Depute (SOA). The leadership of the council respond to the additional demands directors and heads of service have a is strong and effective in terms anticipated from high population significant role in corporate leadership of strategic direction, delivering growth projections. which enhances the council’s capacity change and providing the capacity to improve. for further improvement. There 1. Perth & Kinross Council are good working relationships demonstrates a strong commitment 4. Community Planning is well between elected members and to Best Value and continuous developed in Perth and Kinross, executive directors and relations improvement and an appetite for supported by a strong commitment between political group leaders better services for the area. The to partnership working, effective are constructive. council and its partners share a clear planning structures and a clearly and ambitious vision and they are defined set of desired outcomes. A robust performance committed to the Perth and Kinross Effective partnership working management framework is in SOA. The vision reflects the significant has already delivered improved place across the council. This is challenges faced by the council in