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EAST AYRSHIRE COUNCIL

CABINET - 20 NOVEMBER 2019

Report by Depute Chief Executive and Chief Financial Officer Economy and Skills

SUBJECT: EAST AYRSHIRE PERFORMS – SUMMARY REPORT

PURPOSE OF REPORT

1 To advise Members of a number of important performance measures as at 13 October 2019 (Period 7), including the projected financial position for the year, expenditure reduction measures, treasury indicators, progress of the capital programme, absence management, complaints, health and safety, and risk management.

2 The report also provides Members with details of the projected financial position in respect of the alternative delivery models; East Ayrshire Leisure Trust and Ayrshire Roads Alliance.

RECOMMENDATIONS

3 It is recommended that Members:

(i) Note the financial management position as detailed in paragraphs 7 to 15;

(ii) Request that Depute Chief Executives identify how any shortfall in approved expenditure reduction measures shown in paragraphs 9 and 10 will be met;

(iii) Approve the commissioning of the Residents Survey as at paragraph 16;

(iv) Approve £0.280m of funding for customer service delivery posts from the Transformation Fund as detailed at paragraph 17;

(v) Note the position in relation to the Bellwin threshold and recent flooding expenditure as detailed at paragraph 18;

(vi) Approve £0.030m of funding to the Barony A Frame Trust to support the upgrade of lighting equipment for the Barony A Frame, as detailed at paragraph 19;

(vii) Approve the commitment of £0.160m from Economy & Skills in year underspends for external support to assist with asset valuation requirements, as detailed at paragraph 20;

(viii) Agree that the £0.100m funding set aside form the Town Centre Regeneration Fund for the refurbishment of Newmilns local office is reallocated for the refurbishment of the Morton Hall, as detailed at paragraph 21;

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(ix) Approve the re-profiling of capital budgets from 2019/20 to future years as at paragraph 23 to 25;

(x) Note the contract figure exceeding the accepted tender value by more than 10% in respect of the refurbishment works at Stewarton Academy, detailed at paragraph 26;

(xi) Agree that the new Community Room within the new Bellsbank Primary School, Early Childhood Centre and Community facility should be dedicated to Nancy Murray, detailed at paragraph 27;

(xii) Note that the Stewarton Sports Centre has been renamed the Rose Reilly Sports Centre as highlighted at paragraph 28;

(xiii) Note the information in respect of People highlighted at paragraphs 29 to 30 and in the summary report;

(xiv) Note the health and safety position as detailed in paragraphs 31 to 36 and in the summary report;

(xv) Note the current risks as identified in the Corporate Risk Register in the summary report and as further detailed at paragraph 37; and

(xvi) Otherwise note the contents of this report.

INTRODUCTION

4 Supporting information is available on the Members’ Portal, and Depute Chief Executives and Heads of Service are available to discuss any aspect of the report. The supporting information will include:

 Summarised Revenue Information by Department  Capital Programme Monitoring Report;  Health and Safety Performance Report;  East Ayrshire Performs: Key Statistics.  Transformation Workstreams

5 The established reporting format of East Ayrshire Performs follows a Red / Amber / Green (RAG) exception reporting approach. The table below details the “colour scheme” and the tolerances associated with each banding.

COLOUR VARIANCE Significantly off target Red (+/- 2% or more of budget; or £0.500m, whichever is less) Slightly off target Amber (+/- 0.5% to 2% of budget; or £0.125m, whichever is less) Broadly on target Green Within +/- 0.5% of budget

EXECUTIVE SUMMARY

6 The East Ayrshire Performs Summary Report (for the period ended 13 October 2019) is attached to this covering report. As indicated above, an analysis of current performance measures is available via the Members’ Portal.

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Financial Management – Revenue

7 The General Fund uncommitted balance is forecast to be £12.354m (3.5%) at the year end taking account of the current projected online position. The projection in respect of services, and the overspends noted in the report, assume that remedial action will be taken in the year to redress the noted projected outturn.

8 A review of service earmarked balances has been undertaken following the completion of the external audit of the 2018/19 Annual Accounts and a detailed report will be considered as a separate agenda item to this Cabinet meeting with the proposal to transfer £0.066m to the General Fund Uncommitted balance. This would increase the General Fund Uncommitted balance forecast to £12.420m (3.5%) at the year end assuming the transfer is approved.

Expenditure Reduction Measures

9 Council on 28 February 2019 approved £8.983m of efficiency savings related to management action for 2019/20. £8.550m (95%) of these savings are currently achieved, or anticipated to be achieved without issue. The exceptions are those detailed below. These are being closely monitored by services and any anticipated variances will be highlighted to Members with services identifying compensating savings in other budget lines.

10 The relevant Depute Chief Executives require to identify how any likely shortfall will be addressed in year and this information will be included in the next East Ayrshire Performs Report.

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Revenue Budget

Health and Social Care

11 The Health and Social Care budget is currently projected to underspend by (£0.738m) predominantly arising from an anticipated underspend on equipment and adaptations expenditure, savings within service strategy employee costs and a lower number of external child placements than in previous years. The annual budget for equipment and adaptations work on council properties is £1.263m and there is also an earmarked balance available from 2018/19 of £0.840m. The 2019/20 spend is currently anticipated to be £1.549m taking account of current commitments and it is anticipated that £0.554m will be ring-fenced for expenditure on equipment and adaptations in future years with the IJB asked to approve this. The position will be monitored and further updates reported in future reports.

Safer Communities

12 Safer Communities are projecting to end the year with an overspend of £0.797m mainly due to pressures in relation to Primary and Secondary Education school transport. The Head of Service requires to produce an action plan to address this and advice on this will be included in the next East Ayrshire Performs report.

Pupil Equity Fund

13 The Council was allocated £3.522m of Pupil Equity Funding for 2019/20 from the Scottish Government to address the poverty related attainment gap and the current projection assumes a full spend of this funding at this point. PEF funding is under the direct control of individual head teachers, with the option to carry forward some of this funding until the end of June 2020 to enable the implementation of plans over the academic year. For 2019/20 (Year 3 PEF), in line previous years, it is likely to result in some schools requiring to earmark any underspend at the end of the financial year, with full spend of the funds by June 2020. Individual school plans are currently being progressed by head teachers and their current status is reported in the Summary report.

14 The funding is used within schools to improve outcomes for children and young people in literacy, numeracy and health and wellbeing. For example, at Newmilns Primary School and ECC, some of the money funded an additional classroom assistant to improve reading and writing skills for small, targeted literacy groups which has had a positive impact on the progress being made by the children involved. At Grange Academy, some PEF spend included improving health and wellbeing of a small group of S1 pupils through a residential outdoor learning experience with feedback from pupils involved suggesting that they have raised aspirations and improvements in essential skills such as teamwork, communication and resilience. At Park School, the resources were focussed on raising attainment in numeracy by training staff and providing resources for pupil support and the school has reported that this targeted support has resulted in an increasing number of young people achieving SCQF level 4 Numeracy.

15 Clearly Head Teachers are using these funds in ways that address specific issues in their own schools but these examples illustrate that PEF is being used effectively and is focussed on outcomes which help to close the poverty related attainment gap. The Chief Executive has, however, requested that an assessment of the impact of PEF funding is carried out by the South West Regional Improvement Collaborative (RIC). 7

The assessment will provide an evaluation of PEF spending across the RIC and will include the identification of PEF funded interventions that have led to the greatest impact on improving outcomes for children and young people locally and across the South West RIC.

Resident’s Survey

16 As Members will be aware, the Council and Community Planning Partnership have, since 2005, commissioned a Resident’s Survey on a three yearly basis. The survey is a valuable tool which supports the Council and its partners to gage residents’ feedback and improve service delivery. The last survey exercise was undertaken in 2017 and the next survey would be due to take place during 2020. Following a comprehensive tender process, the 2017 Survey was undertaken at a cost of approximately £0.030m and it is proposed that this will be met from in-year underspends within Economy and Skills. Subject to Cabinet approval, the intention would be to commission the survey to be undertaken early in 2020, to allow the results to inform the Council’s forthcoming Strategic Self-Assessment.

Customer Services Delivery

17 The implementation of a corporate approach to customer services has led to a number of bespoke workstreams being created. One relates to the enhancement and promotion of the Council’s customer service platform (Firmstep), with the establishment of a small team of staff seconded from the IT support section of the Customer Services division. The scale and pace associated with the workstream is such that there is a need to backfill a number of posts on a temporary basis for 2 years in order that the system developments and functionality changes can be made to the Firmstep system as well as continuing to support colleagues with IT related issues and requests. The cost of the secondments is estimated to be £0.280m. Approval is sought that this be funded from the Transformation Fund. The current balance of the Transformation Fund is £2.634m, with £0.660m currently uncommitted, this would leave £0.380m uncommitted.

Bellwin – Flooding

18 As Members will be aware the Bellwin Scheme seeks to capture unplanned costs associated with local incidents and disasters. Analysis of the expenditure incurred as a result of the flooding incidents that took place in the summer reveals that it is unlikely that the Bellwin threshold of £0.593m will be exceeded for these claims. However, where costs incurred do not exceed the threshold, then they can be held and added to any subsequent in year incidents that may occur and take the expenditure to the threshold level.

Barony A-Frame

19 Egger UK, whose chipboard production and wood recycling plant is sited on the other side of the road from the Barony A Frame, have offered to provide a power supply from their site to the Barony A Frame and to provide electricity to illuminate the A Frame free of charge. In order to access this, the lighting equipment requires to be brought up to standard and it is proposed to provide funding of up to £0.030m to the Barony A-Frame Trust to enable them to accept this offer which will greatly enhance the facility.

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Asset Valuations

20 Members will recall that as part of the external auditors’ report on the audit of the 2018/19 Annual Accounts a recommendation was made around the Council’s approach to the valuation of fixed assets. As part of the action arising from the recommendation, a thorough examination and review of existing valuation methods has been undertaken to identify the areas where further work, changes in process and external support is required. The valuation system has been in-house based since the inception of the Council and given the recommendation it is felt that it would be beneficial to support the existing in house team by procuring the services of external valuers to prepare the 2019/20 valuations and produce a comprehensive procedure document for use in future years. Colleagues in the Estates team within Governance will prepare specification, manage procurement and carry out the contract management function with the costs estimated at £0.160m being met from in-year underspends within Economy and Skills.

Town Centre Regeneration Fund – Newmilns

21 At Cabinet on 1 May 2019, an indicative allocation of £0.100m was set aside from the Town Centre Regeneration Fund to carry out the refurbishment of the former local office to bring back into use for commercial/retail or office space. Following engagement with the Community Council, Cabinet are now asked to agree that the funding can be reallocated for the refurbish of Morton Hall making it a more accessible facility and to enhance the facilities available for the community within the Town Centre. This proposal still fits with the

 National Town Centre Action Plan  Town Centre First Principle.  Enterprising Communities.  Vibrant Local Economies theme  Newmilns and Greenholm Community led Action Plan

Capital Programme

Progress Update

22 The East Ayrshire Performs Summary Report provides an update on the Council’s 10 Year Capital Investment Programme. A number of projects are currently on-site including the Barony Campus, Dean Castle Keep Restoration, Bellsbank Primary School and Early Childhood Centre, Loanhead Primary School extension, various new housing developments and Early Years projects across the authority. A number of projects are also due to start on site within the next 12 months including the Central Distribution Kitchen in Kilmarnock, the new Waste and Recycling Centre at Caponacre, Cumnock, speculative business units at Moorfield and the new build Netherthird Primary School.

Re-profiling of Capital Budget Allocations

23 The capital investment programme and associated budget allocations across financial periods are established, in many cases, several years in advance of projects being realised on site. The budget allocations within the capital investment programme are largely included for indicative purposes only therefore it is appropriate each year to reassess the programme to ensure these budgets continue to be aligned 9

with actual and expected progress. The re-profiling of budgets is not representative of a lack of progress in terms of these projects but is essential to ensure the information provided for annual reporting purposes is meaningful and aligned with forward planning assumptions.

24 The following table sets out the revised position for 2019/20 based on currently available information, taking account of proposed transfers. A full review of the capital programme is currently being undertaken by Facilities and Property Management and details of the re-profiled spend will be considered as part of that report to Cabinet.

2019/20 2019/20 2019/20 Original Revised Amount Reprofiled Projects Budget Budget Reprofiled £m £m £m Lainshaw Primary Refurbishment 0.431 0.215 (0.216) Onthank Primary Toilet Refurbishment 0.400 0.250 (0.150) Logan Primary Refurbishment 0.230 0.115 (0.115) Netherthird Primary New Build 2.579 1.000 (1.579) Loudoun Academy 1.365 0.350 (1.015) Darvel Primary Accessibility 0.100 0.020 (0.080) St Sophia's Primary Refurbishment 0.000 0.200 0.200 Stewarton Academy Refurbishment 0.000 0.300 0.300 Hillhead Primary Refurbishment 0.266 0.100 (0.166) Catrine Early Childhood Centre 1.557 0.500 (1.057) Central Distribution Kitchen 2.000 0.400 (1.600) Rowallan Industrial Unit 1.200 0.000 (1.200) Moorfield Additional Units 1.050 0.000 (1.050) Economic Regeneration & Development Fund 2.408 0.500 (1.908) Moorfield Units 4 & 5 1.924 0.750 (1.174) Street Lighting LED 3.715 0.200 (3.515) New Cumnock Flood Scheme 3.067 0.600 (2.467) TOTAL 22.292 5.500 (16.792)

25 The impact of the realignment above will reduce the current 2019/20 General Services Capital budget from £97.636m to £80.844m, with forecast expenditure of £81.412m, resulting in a revised projected variance for 2019/20 of £0.568m. Expenditure to date on the General Services Capital Programme is £31.052m, which represents 38% of the revised budget.

Internal Refurbishment at Stewarton Academy

26 Internal refurbishment works at Stewarton Academy were completed over the summer 2019 holiday period. However, due to the condition of the existing building fabric additional works had to be undertaken, including replacement of the existing extract system, ceilings and wall panelling. As a result, the final figure for the contract is anticipated to exceed the accepted tender value of £0.141m by £0.042m (an increase of 30%). The additional costs can be contained within the overall Refurbishment and Component Renewal capital budget allocation for Stewarton Academy.

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Bellsbank Primary School, Early Childhood Centre and Community facility

27 A request has been made to transfer a plaque dedicated to Nancy Murray from the IFE wing in the current Bellsbank building to one of the community rooms in the new building. Nancy Murray was the Centre Supervisor of the IFE wing for over 25 years. When she retired a decision was made to name one of the rooms in her honour not only for her hard work and dedication as Centre Supervisor but also for her contribution to the community of Bellsbank as a whole. Nancy continues to attend project classes and be heavily involved in the activities of the Bellsbank community. Cabinet is therefore asked to agree that the new Community Room within the new Bellsbank Primary School, Early Childhood Centre and Community facility should be dedicated to Nancy Murray.

The Rose Reilly Sports Centre

28 In recognition of the outstanding international sporting accomplishments of Rose Reilly, Stewarton Sports Centre has been renamed the Rose Reilly Sports Centre following discussion with Group Leaders and local members. Whilst in normal circumstances advance Cabinet approval would have been sought for a name change of this nature, it was agreed that in this instance it was important not to disclose the honour in advance of the event to celebrate her achievements on 4 October 2019, and retrospective Cabinet approval is now sought.

People

Absence Management

29 The indicator on staff sickness statistics is the number of days lost per employee. A total of 4.08 days were lost per employee for the period 1 April 2019 to 13 October 2019 (2018/19 comparator for the same period was 3.81 days). Chief Officers and Departmental Management Teams continue to review absence levels, reasons and interventions on a four weekly basis.

Workforce Planning Update

30 As per Cabinet of 1 May 2019, it was agreed that future updates on the Workforce Plan would be included in the East Ayrshire Performs Report. An update on current progress is included in the main East Ayrshire Performs document.

Health and Safety

31 Comparative analysis was undertaken on the total number of incidents reported during Period 5 - 7 2019/20 with the same period in 2018/19 and it was identified there was an decrease of 175 (27%) incidents during this period.

32 There were 8 incidents reported to the HSE in line with RIDDOR during the period which is a decrease in comparison to the previous year where there were 10 incidents during the same period.

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33 There were a total of 1,545 recorded unannounced inspections undertaken during Period 5 - 7 2019/20. Regular unannounced inspections are carried out by Supervisors, Senior Management and the Health and Safety Team. These inspections provide a sound basis for proactive safety monitoring and also support compliance with established safety standards. Any safety deficiencies observed during unannounced inspections, along with the actions taken to address these deficiencies, are reported to the relevant manager and discussed at Executive and Senior Management Teams on a monthly basis.

34 Health and Safety continue to lead on the Council’s Here to Listen Suicide Prevention Strategy with 58 employees and 13 members of the community trained to be Suicide First Aiders (ASIST). A further ASIST course is scheduled for December 2019 with 15 employees and 9 from the community due to attend resulting in 73 employees embedded throughout the Council providing Suicide First Aid by the end of 2019.

35 Health and Safety are continuing their rolling programme of raising awareness with the distribution of a further 20,000 ‘Z cards’ together with the Suicide Support Directory and are developing a Here to Listen poster with a QR code to allow easy access to the new Suicide Prevention Internet page. Currently the Z cards have been distributed to all dentists, opticians, doctors and orthodontists throughout East Ayrshire.

36 To date Health and Safety have delivered Tool Box Talks on the Here to Listen strategy to 391 employees and 115 employees have attended SafeTALK training. Additionally 386 employees and 73 members of the community have attended SafeTALK awareness sessions during 2019.

Risk Management

37 The Corporate Risk Register (CRR) was last reviewed and updated by the Executive Management Team (EMT) on Monday 4 November 2019.

Alex McPhee Depute Chief Executive and Chief Financial Officer Economy and Skills 14 November 2019

Background Papers: Nil.

Person to Contact: Joseph McLachlan, Acting Head of Finance and ICT Tel: 01563 576574 Email: [email protected]

Implementation Officer: Joseph McLachlan, Acting Head of Finance and ICT Tel: 01563 576574 Email: [email protected]

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Period 7 2019/20 (to 13 October 2019) 13

REVENUE Revenue 14 Projected Revised Annual Projection to Variance Economy and Skills Budget 31 March 2020 (favourable) / £m £m adverse £m Education 107.461 106.899 (0.562) Finance and ICT 8.116 7.761 (0.355) Planning and Economic Development 4.959 4.887 (0.072) Policy Planning and Performance Division 1.338 1.363 0.025 Central Management Support 1.281 1.281 0.000 Total 123.155 122.191 (0.964) Key Points: Education The variance relates primarily to non-devolved functions within the Early Years function in relation to vacancies and partner provider costs (£0.317m). The balance relates to PEF funding that will require to be earmarked at the year end to support staffing costs to the end of the academic year (£0.245m). The Council has been allocated £3.763m of Scottish Attainment Challenge funding in 2019/20 and the service continues to monitor expenditure in relation to this area to ensure this funding is fully spent within the year. Finance and ICT The service currently anticipates a favourable variance of (£0.355m) which is the result of employee cost savings from a number of vacant posts. Projected Revised Annual Projection to Variance Safer Communities Budget 31 March 2020 (favourable) / £m £m adverse £m Housing and Communities 15.289 15.512 0.223 Ayrshire Roads Alliance 6.280 6.247 (0.033) Facilities and Property Management 25.701 25.683 (0.018) Human Resources 1.830 1.817 (0.013) Health and Safety 0.308 0.308 0.000 Transport Services 4.362 5.159 0.797 Central Management Support 0.278 0.283 0.005 Arms Length Organisations 4.591 4.591 0.000 Emergency Planning 0.064 0.064 0.000 SPT 2.249 2.192 (0.057) Total 60.952 61.856 0.904 Key Points: Housing and Communities Housing and Communities probable overspend is £0.223m. However, this includes an adverse variance of £0.774m within Waste Management, mainly due to additional employee and landfill costs along with a shortfall in anticipated income. This is offset by underspends within Outdoor Amenities and General Fund Housing. The Waste Service is experiencing a sustained period of volatility and a transformational review of Waste Management is currently being undertaken and should report to Cabinet by the end of the calendar year.

Transport Services It is anticipated that Transport Services will outturn £0.797m greater than budget. Primary and Secondary Education Transport projected (£0.678m) greater than budget mainly due to contract inflation and prior year unachieved savings. Vehicle maintenance and fleet management costs are also expected to outturn (£0.119m) greater than budget. This reflects a delay in achieving the 19/20 savings linked to buying rather hiring vehicles. Additionally, a shortfall in SLA income and additional expenditure across several lines are offset by savings in supplies and services and employee costs.

SPT The variance reflects a lower than anticipated precept payment to SPT. Revenue 15 Projected Revised Annual Projection to Variance Wellbeing Budget 31 March 2020 (favourable) / £m £m adverse £m Children, Families & Criminal Justice Services 20.474 20.360 (0.114) Community Care 56.155 55.884 (0.271) Service Strategy 6.035 5.839 (0.196) Outwith Placements 4.744 4.576 (0.168) Lead Partnership Services 0.663 0.672 0.009 Total 88.071 87.331 (0.740) Premises Costs 0.435 0.437 0.002 Total 88.506 87.768 (0.738) Key Points: Community Care The IJB has received the full annual budget allocation of £1.263m from the Council's Housing Revenue Account for equipment and adaptations work on council properties at this time. In addition £0.840m was earmarked at the 2018/19 year end. It is currently anticipated that the 2019/20 spend will be £1.549m, giving consideration to existing and likely future commitments, which results in an amount of £0.554m not anticipated to be spent in the current year. The underspend will be ring fenced for equipment and adaptations for future years and the IJB at its meeting on 28 November 2019 will be asked to approve that this balance is earmarked. Service Strategy The service anticipates a favourable variance predominantly in relation to staff turnover. Outwith Placements The projected underspend is based on the costs for the current client group. The favourable variance shown relates to reduced numbers of external placements compared to previous years.

Projected Revised Annual Projection to Variance Governance Budget 31 March 2020 (favourable) / £m £m adverse £m Governance 3.012 2.972 (0.040) Total 3.012 2.972 (0.040) Key Points: The variance is mainly due to the timing of filling vacancies.

Projected Revised Annual Projection to Variance Central Services Budget 31 March 2020 (favourable) / £m £m adverse £m Chief Executive's Office (incl. Internal Audit) 0.677 0.677 0.000 Other Non-Service Related expenditure 5.773 5.773 0.000 Insurance 2.519 2.519 0.000 Financing Costs 17.607 17.607 0.000 HB/CT Benefit Subsidy 9.965 9.965 0.000 Central Services 36.541 36.541 0.000 Key Points: There are no material variance currently projected at this time. Revenue 16 Balance In year Balance at Brought Partnerships and Projects Movement 13 October 2019 Forward £m £m £m Economy and Skills (6.344) 1.250 (5.094) Safer Communities (1.010) (0.069) (1.079) Governance (1.726) (0.616) (2.342) Total (9.080) 0.565 (8.515) Key Points: Economy and Skills The balance predominantly relates to restoration bonds held in respect of Open Cast mining with £1.224m net spend having been incurred in 2019/20 representing the majority of the in year movement. Safer Communities The balance includes amounts held for Roads and Transportation including projects related to Tesco Kilmarnock (£0.073m) and culvert repairs on A77 (£0.170m). Facilities and Properties Management hold amounts for the Energy Efficiency Initiative (£0.303m). Private Sector Empty Homes funding (£0.250m) and HLF funding in relation to Dean Castle Country Park are also held within the overall amount. Governance The balance predominantly relates to funds received in respect of various Windfarms with the in year movement representing a net receipt of income in year.

Projected Revised Annual Projection to Variance In Year Fund Transfers Budget 31 March 2020 (favourable) / £m £m adverse £m Proposed earmarked balances in year 0.275 1.113 0.838 Total Transfers 0.275 1.113 0.838 NET EXPENDITURE 312.441 312.441 0.000 Projected Revised Annual Projection to Variance Funded by Budget 31 March 2020 (favourable) / £m £m adverse £m Aggregate External Finance (241.491) (241.491) 0.000 NHS Social Care Allocation (Share of £250m & £107m) (8.845) (8.845) 0.000 Council Tax (60.283) (60.283) 0.000 Utilisation of Previous Years Balances (1.822) (1.822) 0.000 Total Funding (312.441) (312.441) 0.000 Projected Revised Annual Projection to Variance Housing Revenue Account Budget 31 March 2020 (favourable) / £m £m adverse £m Expenditure 55.937 55.270 (0.667) Income (55.937) (55.270) 0.667 Net Expenditure 0.000 0.000 0.000 Key Points: Housing Revenue Account It is anticipated that HRA will outturn on budget. Variances are however anticipated on both income and expenditure. The most significant variances relate to savings on employee costs (£0.362m) and debt charges (£0.672m), with expenditure pressures anticipated on grounds maintenance and environmental works (£0.600m). Revenue 17 Current Opening In year Projected Balance Movement Balance £m £m £m General Fund Balances Uncommitted (12.354) 0.000 (12.354) Committed and Service-Related (21.602) 0.680 (20.922) Transformation Fund (2.663) 0.029 (2.634) Total (36.619) 0.709 (35.910) HRA Balances Total (13.960) 0.000 (13.960) 18

PUPIL EQUITY FUND (PEF) 19

Pupil Equity Fund Total 2019/20 Available Resources 2019/20 Expenditure 2018/19 2019/20 PEF Total Actual To Projected Variance to Balance Allocation Funding Date Actual date Establishment C/Fwd £ £ £ £ £ £

Auchinleck Academy 30,880 101,520 132,400 75,142 132,400 0 Auchinleck PS 24,710 78,000 102,710 17,334 76,499 (26,211) Catrine PS 16,080 37,200 53,280 20,457 53,280 0 Drongan PS 210 73,200 73,410 42,590 73,410 0 Mauchline PS 22,050 51,840 73,890 30,449 66,479 (7,411) Muirkirk PS 11,100 54,000 65,100 31,780 61,196 (3,904) Ochiltree PS (50) 10,800 10,750 1,650 10,750 0 Sorn PS 1,190 4,800 5,990 272 5,990 0 Auchinleck Education Group 106,170 411,360 517,530 219,675 480,004 (37,526)

Barshare PS 32,590 75,600 108,190 36,799 108,190 0 Barshare Unit 11,750 21,600 33,350 10,258 27,720 (5,630) Cumnock Academy 30,440 102,000 132,440 60,397 132,440 0 Greenmill PS 2,860 62,400 65,260 49,091 65,260 0 Hillside School 7,970 30,000 37,970 24,537 35,395 (2,575) Logan PS 24,580 50,400 74,980 15,562 67,163 (7,817) Netherthird PS (2,100) 82,800 80,700 49,970 80,700 0 New Cumnock PS 6,220 72,000 78,220 30,948 78,220 0 Cumnock Education Group 114,310 496,800 611,110 277,561 595,088 (16,022)

Bellsbank PS 13,540 68,400 81,940 25,581 81,940 0 Dalmellington PS 6,430 33,600 40,030 29,331 40,030 0 Dalrymple/Littlemill PS 10,200 48,000 58,200 27,809 58,200 0 Doon Academy 25,920 58,800 84,720 31,071 84,720 0 Patna PS 4,180 55,800 59,980 19,375 59,980 0 Doon Education Group 60,270 264,600 324,870 133,168 324,870 0

Annanhill PS (1,880) 70,800 68,920 16,331 68,920 0 Crosshouse Communication Unit 1,850 9,600 11,450 2,405 11,450 0 Crosshouse PS 1,460 36,000 37,460 17,075 37,460 0 Gargieston PS (2,210) 23,760 21,550 15,662 21,550 0 Grange Academy 1,720 124,800 126,520 56,006 126,520 0 Hillhead PS 75,560 170,400 245,960 86,628 212,273 (33,687) Park School 3,360 64,800 68,160 27,706 52,948 (15,212) Shortlees PS 36,010 277,200 313,210 163,352 313,210 0 Grange Education Group 115,870 777,360 893,230 385,165 844,331 (48,899)

Kilmarnock Academy 36,710 144,000 180,710 99,018 180,710 0 Loanhead PS 11,340 54,000 65,340 31,075 61,440 (3,900) Whatriggs PS 78,920 148,800 227,720 67,362 177,150 (50,570) Onthank PS 67,140 159,600 226,740 76,705 199,212 (27,528) James Hamilton PS 55,950 115,200 171,150 75,769 160,025 (11,125) Willowbank School 19,300 75,600 94,900 46,410 77,520 (17,380) Kilmarnock Education Group 269,360 697,200 966,560 396,339 856,057 (110,503)

Darvel PS 19,130 58,320 77,450 7,651 77,450 0 Fenwick PS 160 8,640 8,800 4,683 8,800 0 Galston PS 28,660 67,200 95,860 34,181 76,495 (19,365) Hurlford PS 70 69,120 69,190 32,363 69,190 0 Loudoun Academy 32,210 85,200 117,410 66,592 117,410 0 Newmilns PS 10,880 29,160 40,040 14,651 40,040 0 Loudoun Education Group 91,110 317,640 408,750 160,121 389,385 (19,365) 20

Pupil Equity Fund

Total 2019/20 Available Resources 2019/20 Expenditure 2018/19 2019/20 PEF Total Actual To Projected Variance to Balance Allocation Funding Date Actual date Establishment C/Fwd £ £ £ £ £ £

Mount Carmel PS 2,330 48,000 50,330 10,005 50,330 0 St Andrew's PS 11,050 106,920 117,970 38,125 107,262 (10,708) St Joseph's Academy 61,150 98,400 159,550 40,203 159,550 0 St Patrick's PS 7,750 33,480 41,230 20,500 39,215 (2,015) St Sophia's PS 7,220 32,400 39,620 6,954 39,620 0 St Xavier's PS 7,770 16,800 24,570 10,941 24,570 0 St Joseph's Education Group 97,270 336,000 433,270 126,728 420,547 (12,723)

Dunlop PS 2,420 20,400 22,820 9,109 22,820 0 Kilmaurs PS 2,090 29,160 31,250 21,156 31,250 0 Lainshaw PS 47,760 80,400 128,160 61,839 128,160 0 Nether Robertland PS 8,400 46,800 55,200 23,319 55,200 0 Stewarton Academy (890) 44,400 43,510 9,433 43,510 0 Stewarton Education Group 59,780 221,160 280,940 124,856 280,940 0

East Ayrshire Total 914,140 3,522,120 4,436,260 1,823,614 4,191,222 (245,038) Key Points: Schools have been allocated £3.522m of Pupil Equity Funding from the Scottish Government in 2019/20 to address the poverty related attainment gap. This is in addition to the £0.914m of 2018/19 funding that was carried forward to be utilised by the end of the previous academic year.

National Guidance allows schools to carry forward their PEF allocation to the next financial year with the general expectation that it is fully utilised by the end of the current academic year (June 2020). At Period 7, £0.245m of PEF funding is anticipated to be earmarked at the end of the financial year to fund salary costs to the end of the academic year. The Head of Education has reiterated to all schools the importance of ensuring full utilisation of PEF funding by this point and colleagues in Finance continue to provide detailed ongoing support to headteachers.

An updated approach to monitoring and supporting PEF spend is in place for school session 2019/20 to monitor spend on a regular basis involving representatives from Education, Finance, Procurement and Human Resources. 21

ALTERNATIVE DELIVERY MODELS Alternative Delivery Models 22 Variance Revised Annual Projected Actual (favourable) / Ayrshire Roads Alliance - Consolidated Budget Revenue Budget 31 March 2020 adverse £m £m £m Strategic Delivery 4.016 3.711 (0.305) Local Delivery - East Ayrshire 4.269 4.499 0.230 Local Delivery - South Ayrshire 4.399 4.161 (0.238) Total 12.684 12.371 (0.313) Key Points: STRATEGIC DELIVERY This variance mainly reflects staff turnover savings due to vacant posts and reduced insurance costs relating to ARA South. This is partly offset by additional computing costs and a shortfall in capital recharge income.

LOCAL DELIVERY – EAST AYRSHIRE This variance mainly reflects a shortfall in parking income, as well as some additional winter maintenance costs and other minor pressures, being offset partly offset by savings on vacancies.

LOCAL DELIVERY – SOUTH AYRSHIRE This variance mainly reflects savings from vacancies as well as additional capital recharge income, partly offset by work at Girvan harbour, roads maintenance sub-contract costs and other minor variances.

Expenditure to Forecast Budget Capital Budget Date Expenditure Allocation £m £m £m East Ayrshire Bridges 1.434 0.333 1.434 Roads Resurfacing 5.367 1.966 5.367 A70 Route Improvements (Glenbuck) 0.894 1.151 1.601 Footways Resurfacing 0.210 0.115 0.210 New Cumnock Flood Scheme 3.067 0.357 0.600 Street Lighting 0.257 0.056 0.257 Street Lighting LED 3.715 0.073 0.200 SPT Schemes 1.445 0.019 1.445 Cycling Walking & Safer Streets 0.199 0.025 0.199 EAC Roads General Projects 1.376 0.540 1.152 Total - East Ayrshire 17.964 4.635 12.465 Bridges 0.236 0.145 0.236 Roads Resurfacing 2.052 1.774 2.052 Footways Resurfacing 0.000 0.050 0.050 Cycling Walking & Safer Streets 0.184 0.054 0.184 Street Lighting 0.308 0.091 0.308 Street Lighting LED 3.537 1.445 3.537 SPT / SUSTRANS 0.475 0.014 0.475 SAC General Projects 1.458 0.235 1.067 Total - South Ayrshire 8.250 3.808 7.909 Alternative Delivery Models 23 Key Points: CAPITAL – EAST AYRSHIRE A70 Glenbuck The works are now substantially complete with the realigned road opened fully to traffic on 30 June 2019. Minor snagging to be completed and some tree planting in the appropriate season. Roads Resurfacing Carriageway Programme commenced with 22km resurfaced to date . Timber Transport funding has been awarded to enable additional works on the A713 and U759 totalling £0.291m. New Cumnock Flood Protection Works Phase 1 (Leggate) – RMU subcontractor has completed downstream parapet replacement works and works are ongoing with the upstream parapet replacement to Connell Burn bridge. Awaiting BT lowering of their apparatus to allow completion of footpath works.

Phase 2 New Cumnock – The Afton Dyers Lawyer have now confirmed they are content with SGN’s original form of wording and are now ready to conclude the deed of servitude and compensation, required to allow SGN to carry out their works. SGN legal are liaising with Wilson Auctions Lawyers to conclude the legal requirements. Principal Bridge Assessment Programme Package 1 = 551 Structures Package 2 = 71 Structures (additional non-ARA footbridges and walls) Package 3 = 15 Structures (additional non-ARA footbridges) Package 4 = 7 structures (CCT Structures; tunnel, walls, hillside slip) Total = 644 Structures All inspections are completed for Packages 1 and 2. Reports are completed for 617 structures, with 5 structures awaiting Drone/confined space inspection information before completion. Package 3 & 4 (non-ARA footbridges and Catrine Community Trust structures) are due for inspection in July/August. Viaduct The viaduct civil/ electrical works are due to be completed by 22 November 2019 and the light fittings are anticipated to be commissioned by the end of November 2019. Total cost to date is £0.127m. CAPITAL – SOUTH AYRSHIRE Additional spend on externally funded projects will be reclaimed by South Ayrshire Council.

Variance Revised Annual Projected Actual (favourable) / East Ayrshire Leisure Trust Budget 31 March 2020 adverse £m £m £m Corporate Services 1.182 1.126 (0.056) Cultural 2.013 2.050 0.037 Countryside and Outdoor Activities 0.933 0.954 0.021 Sport and Fitness 0.538 0.548 0.010 Net Expenditure 4.666 4.678 0.012 Management Fee (4.620) (4.620) 0.000 Total 0.046 0.058 0.012 Net Transfer to / from Reserves (0.046) (0.058) (0.012) Total after Transfer to Reserves 0.000 0.000 0.000 Key Points: Corporate Services The variance relates to the temporary arrangements following the retiral of the former Chief Executive and further vacancies which are not being filled at this time. Cultural The variance reflects additional bank staff costs linked to achievement of income levels, as well as one off costs for essential flooring replacements at the Palace foyer and museum refurbishment costs at the Dick Institute. Countryside and Outdoor Activities Income shortfalls, primarily in relation to Annanhill Golf Course, are predominantly offset by saving arising from staff vacancies. Sport and Fitness A shortfall in income across a variety of areas is predominantly offset by management action resulting in savings on employee and general expenditure budgets. 24

TREASURY 25 Treasury Maturity Profile of Loan Debt £30,000,000

£25,000,000

£20,000,000

£15,000,000

£10,000,000

£5,000,000

£- 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 2060 2062 2064 2066 2068

Investments (£'m) UK Treasury Bills (14.971m)

Handelsbanken (10.000m) 0.405

7.145 14.971 Bank of Scotland PLC (10.000m) 7.500 HSBC (10.000m)

10.000 10.000 Santander (7.500m)

10.000 Barclays (7.145m)

Hub South West Scotland Ltd (0.405m)

Key Points: The Council had a total debt portfolio of £382.523m at the date of the report. 77.36% of this debt is with the Public Works Loan Board (PWLB), with the balance being loans with money market institutions and temporary borrowing. The average interest rate of all loans is 4.11%.

The Council had a total investment portfolio of £60.021m at the date of the report. This was invested across a range of counterparties as permitted within the Treasury Management Strategy. An average interest rate of 0.691% was being earned on these investments. The longest duration of the investments is three months with the UK Treasury Bills. Of the total 51.89% was invested on "overnight" terms which essentially means instant access. 26

CAPITAL PROGRAMME 27 Capital Forecast Forecast Total Project Total 2019/20 2019/20 Project Expenditure Project Budget Expenditure Progress / £m Budget £m £m £m Risk Learning Estate Barony Campus 68.000 68.000 32.983 30.279 5 St Sophia's Primary Refurbishment 3.600 4.391 0.000 0.200 3 Bellsbank Primary Replacement 6.280 6.280 5.240 5.240 5 Stewarton Academy Refurbishment 15.675 15.675 0.000 0.300 2 Nether Robertland Primary 1.850 1.850 0.000 0.031 2 Loanhead Primary & ECC 5.400 5.527 2.435 2.435 5 Netherthird Primary New Build 10.314 10.314 2.579 1.000 3 Crosshouse Communication Centre 6.200 6.200 0.000 0.050 3 Dunlop Primary Extension & ECC 3.700 3.824 0.015 0.050 3 Loudoun Academy Refurbishment 4.410 4.410 1.365 0.350 4 Logan Primary Refurbishment 0.690 0.690 0.230 0.115 4 Hillhead Primary Refurbishment 0.450 0.450 0.266 0.100 2 Kilmaurs Primary Refurbishment 1.040 1.040 0.000 0.010 2 Onthank Primary Toilet Upgrade 0.400 0.400 0.400 0.250 2 Lainshaw Primary & ECC 0.500 0.500 0.431 0.215 6 Catrine Early Childhood Centre 1.692 1.692 1.557 0.500 N/A Central Distribution Kitchen 2.000 2.000 2.000 0.400 N/A Early Years 1140 Hours Programme 13.083 13.083 3.318 9.099 N/A Future Schools Development Fund 20.100 20.100 0.500 0.000 N/A Darvel Primary Accesibility 0.100 0.100 0.100 0.020 N/A General Projects 1.650 1.650 2.019 1.012 N/A Total Learning Estate 167.134 168.176 55.438 51.656 Need to Know: Barony Campus Works are progressing well on-site. The external envelope is fundamentally complete with internal partitioning, first / second fix on-going with some decoration and installation of floor finishes also started on- site. The works to install a dedicated fibre connection between the Rothesay House and the campus are almost completed, with the other infrastructure works around the site in terms of developing the safer routes to school due to commence early 2020. A furniture supplier has also been appointed by the Council and works are underway to finalise products and materials before an order is placed before the Christmas break. The pace of the construction programme continues to present some challenges on-site in relation to Building Control certification, however these are being closely managed and monitored by Council staff. St Sophias Primary School Work is on-going to develop the detailed programme of work and the associated timetable for completion. It is anticipated this information will be available shortly for further, more detailed discussion with school staff. Bellsbank Primary School Construction works are progressing well on-site with the building largely wind and water tight. Based on the current programme it is anticipated that works will be completed as planned by February 2020. The official topping out ceremony took place on 3 October. Stewarton Academy / Nether Robertland Primary School A master plan exploring the possibility of creating a connected campus between Stewarton Academy and Nether Robertland Primary as part of the wider proposals for the secondary school and future ECC and ASN requirements is currently being developed in consultation with staff and education practitioners. An associated programme of works is also being developed and will brought forward, together with the wider master plan, to a future Cabinet meeting. Loanhead Primary School Works commenced on-site as planned in August 2019 and are currently progressing well on-site. It is currently anticipated that all works will be completed by Summer 2020 which will allow the decanted staff and pupils to return to their newly refurbished and extended school for the start of the new school term in August 2020. 28 Capital Netherthird Primary School The planning application for the new school has been submitted and work is on-going to finalise the information necessary for a tender to be issued in November. Based on current timescales it is anticipated that construction works on the new school will commence on-site in the Spring 2020 as planned.

Crosshouse Communication Centre Work is on-going to prepare the necessary design and tender information to allow construction works to commence on-site in August 2020 to coincide with the revised timescales for the school decanting into the vacated Kirkstyle Primary School which will be available following the transfer of Loanhead Primary School back to their newly refurbished school in the Summer 2020.

Dunlop Primary School Work is on-going to finalise the assessment of the alternative option to relocate the Dunlop Early Childhood Centre to a new site within Dunlop. It is evident from initial exploratory works that the proposed site does present some challenges, particularly in relation to the existing infrastructure. Estimated costs are being prepared which will assist with the decision making progress going forward. Based on current timescales the new ECC will not be available for August 2020 however contingency plans are in place to meet 1140hr obligations. The school Parent Council are aware of this and parents will be advised of the options as part of the normal application process.

Logan Primary Refurbishment Works have commenced on-site in relation to the refurbishment of the Early Childhood Centre as part of the 1140 hours programme which includes additional elements of work within the contract relating to the wider refurbishment of the school, including the next phase of heating distribution pipework replacement, the first phase of re-roofing works and elements of external fabric refurbishment to fascias. It is currently anticipated that works will be completed by March 2020.

Kilmaurs Primary Refurbishment Works are in progress to develop the wider refurbishment works to Kilmaurs Primary School which will include replacement of the existing dining block supported by other related works to the building fabric and mechanical and electrical systems.

Early Years Programme Good progress continues to be made with the extensive programme of works in relation to the 1140 hours commitment; as at October 2019 with 25 projects either completed or currently on-site, 1 at tender award stage and 3 projects at the early stages of development. Of the 3 projects currently at an early stage of development (Catrine, Fenwick and Dunlop) it is likely that these will not be delivered by the national deadline for the 1140 hours programme of August 2020 however contingency plans are in place for the intervening period from August 2020 until these are completed. Despite these potential delays the Scottish Future Trust has advised that East Ayrshire Council's construction programme is progressing extremely well relative to other local authorities. Significant recent progress includes i) New Build ECCs - works to construct the new ECC facilities at Kilmaurs, Nether Robertland and Netherthird are on-going. It is currently anticipated that all three sites will be completed by late January / early February 2020. ii) Central Distribution Kitchen - the site at Rowallan has now been purchased from Scottish Enterprise. As a result the tender for the construction of the new central distribution kitchen has been awarded. It is currently anticipated that works will commence on-site early 2020 with completion by the Summer 2020. 29 Capital Forecast Forecast Total Project Total 2019/20 2019/20 Project Expenditure Project Budget Expenditure Progress / £m Budget £m £m £m Risk Business Growth Portfolio ECONOMIC DEVELOPMENT Town Centre Regeneration Fund 1.701 1.701 1.701 1.701 3 Economic Regeneration & Development 14.054 14.054 2.408 0.500 0 Kilmarnock Town Centre Regeneration 2.210 2.210 0.500 0.510 0 Moorfield Park - Additional Units 1.050 1.050 1.050 0.000 0 Moorfield Units 4 & 5 4.920 4.920 1.924 0.750 4 Rowallan Industrial Unit 1.200 1.200 1.200 0.000 0 General Projects 1.661 1.661 0.161 0.163 N/A Total Business Growth 26.796 26.796 8.944 3.624 AYRSHIRE GROWTH DEAL East Ayrshire 13.500 13.500 1.247 1.247 UK / Scottish Government 59.500 59.500 TBC TBC Total Ayrshire Growth Deal 73.000 73.000 1.247 1.247 Need to Know: Town Centre Regeneration Fund The Architecture and Asset Planning Team continue to work in partnership with the Policy, Planning and Performance Section to deliver a range of projects funded from the Town Centre Regeneration Fund capital grant from the Scottish Government, including improving the appearance of areas within Kilmarnock Town Centre including the Foregate, Bank Street, Sturrock Street and properties in King Street / St Marnock Street, together with other developments in Newmilns, Auchinleck, Darvel, and the Doon Valley. In addition, the Architecture and Asset Planning Section are also providing professional advice and assistance to the Health and Social Care Partnership in terms of developing proposals and associated business case in relation to the proposed Kilmarnock Health Hub.

Moorfield Park - Industrial Units Planning consent for the construction of the two new speculative industrial units on the Moorfield Phase 2 Estate has been granted. A tender for the construction contract has been issued and is due to return end November. It is currently anticipated that all works will be completed by Summer 2020 as planned.

Ayrshire Growth Deal The Facilities and Property Management Section and Planning and Economic Development are currently working in partnership to develop all of the projects in relation to the Ayrshire Growth Deal. A programme of workshops have been agreed in order to take forward the National Energy Research Demonstrator (NERD) project, together with similar arrangements for the Ayrshire Manufacturing Investment Corridor (AMIC) and Moorfield Phase 3 developments. This work will help inform the wider delivery programmes and associated financial estimates required to support the finalisation of the business cases. 30 Capital Forecast Forecast Total Project Total 2019/20 Project Expenditure Project 2019/20 Expenditure Progress / £m Budget £m Budget £m £m Risk Corporate Estate Waste & Recycling Depot - South Area 5.300 5.300 1.796 1.796 3 Customer Contact Centre 0.495 0.562 0.361 0.406 5 H&SC Management System 0.742 0.742 0.373 0.393 N/A North West Area Centre Reconfiguration 0.223 0.223 0.223 0.223 N/A CCTV Improvements - Town Centres 0.200 0.200 0.200 0.150 N/A CCTV Renewal 0.425 0.425 0.175 0.105 5 Risk Management Centre Equipment 0.400 0.400 0.380 0.210 N/A Energy Efficiency 1.777 1.777 0.824 0.824 N/A Transformation Strategy Fund 3.944 3.944 1.152 0.000 N/A Refurbishment & Component Renewal 13.500 13.500 1.500 1.500 N/A ICT Programme 11.346 11.346 0.746 0.500 N/A General Projects 1.050 1.050 0.617 0.624 N/A Total Corporate Estate 39.402 39.469 8.347 6.731 Need to Know: Waste & Recycling and Outdoor Amenities Centre Ayr Road Depot - the works to form the new car park have commenced on-site and are anticipated to be completed by Early 2020. A tender has been issued for the re-roofing of the existing garage building, with a separate tender to refurbish the remainder of the existing building to be issued shortly. Caponacre Waste and Recycling - the planning application has been submitted for approval however concerns have been raised on potential noise pollution as a result of the proposed operations. Specialist consultants have been appointed now to consider these concerns and any potential mitigations however it is likely that amendments will be necessary; this is currently delaying tender issue.

Customer Contact Centre Construction works to form the new Customer Contact Centre in the former Torbetts Shop, Kilmarnock were completed on 21 October and the building handed over. Work is currently on-going to finalise the furniture and equipment for the new facilities with delivery and installation anticipated to be completed by December 2019.

Energy Efficiency A programme of energy efficiency projects are being developed and delivered this includes additional contributions to existing projects including Customer Contact Centre and Loanhead Primary Extension. The remaining phase of Building Energy Management Systems (BEMS) is also on-going and is due to be completed by end 2019. . 31 Capital Forecast Forecast Total Project Total 2019/20 Project Expenditure Project 2019/20 Expenditure Progress / £m Budget £m Budget £m £m Risk Culture and Community Assets Dean Castle Restoration Project 10.889 10.739 1.150 1.150 5 Galston Office Development 3.450 3.705 0.781 0.781 3 1 Dunlop Street / 12 Strand Street 1.000 1.000 0.391 0.391 5 Dalricket Landfill Site 1.000 1.000 0.105 0.105 N/A Other Cemetery Improvements 1.000 1.000 0.174 0.174 N/A Active Travel Hub 0.150 0.150 0.150 0.150 N/A Dalmellington Cemetery Extension 0.175 0.175 0.171 0.171 N/A General Projects 3.450 3.299 0.624 0.617 N/A Total Culture and Community Assets 21.114 21.068 3.546 3.539 Roads Infrastructure Ayrshire Roads Alliance East Projects N/A N/A 17.964 12.465 N/A Total Roads Infrastructure N/A N/A 17.964 12.465 Transport Fleet Vehicle Purchases 8.000 8.000 2.000 2.000 N/A Total Transport Fleet 8.000 8.000 2.000 2.000 Wellbeing, Sport and Outdoor Estate Telecare N/A N/A 0.150 0.150 N/A Total Wellbeing, Sport and Outdoor N/A N/A 0.150 0.150 Housing Estate Council House Building (SHIP) 112.490 115.143 35.719 23.711 N/A Housing Investment Programme (HIP) N/A N/A 16.557 16.557 N/A Total Housing Estate 112.490 115.143 52.276 40.268 Need to Know: Dean Castle Country Park Dean Castle Restoration Project – works are progressing well on-site with the external stonework repairs. It is anticipated that the scaffold to the front elevation of the Palace will be removed by November. The replacement of internal electrical, mechanical and security services are nearing completion to the Palace and Keep with the heating system also anticipated to be operational within these buildings prior to Christmas. Additional works are required to be undertaken to the Banqueting Hall ceiling, boiler house and stone corbels supporting the external walkways. Based on the current programme it is anticipated that all works will be completed as planned by April / May 2021.

Galston Office Facilities External consultants have been appointed and are currently developing the concept designs and cost estimates. Based on the current programme it is anticipated that works could commence on-site Summer 2020 with completion by Summer 2021.

1 Dunlop Street / 12 Strand Street Following the removal of the roof, inspection of the remaining structure and discussions with Planning, a Conservation Report is being prepared and designs developed to allow for the demolition of the existing structure and its sympathetic replacement to mirror architectural features of the original build. 32 Capital Council House Build Programme The Cessnock Road, Hurlford project has been completed and handed over. Works at Tinto Avenue, Kilmarnock are progressing well, with Phase 1 and Phase 2 completed and Phase 3 due to be handed over in October. The first phase at Carnshalloch Avenue, Patna, was also completed in September. Works at David Dale Avenue, Stewarton have been hampered by drainage issues and it is now anticipated works will be completed in early 2020. Works at Fraser Walk, Kilmarnock commenced on site in August and are progressing to programme. Consultants engaged by the Council’s contracting partner continue to engage with SEPA to try and address their flooding related objections to the planning application for Brown Street, Newmilns. Phase 1 mine workings consolidation works have commenced at Witch Road, Kilmarnock and are due to be completed by October. Design development works have also commenced on a number of new projects including Mill O Shields Road, Drongan, Kilmarnock Road, Mauchline, Kennedy Drive, Kilmarnock, Quarryknow Road, Auchinleck and Bellevue Gardens, Kilmarnock.

Forecast Forecast Total Project 2019/20 Expenditure Total Project 2019/20 Expenditure £m Budget £m Budget £m £m Total - General Fund 335.446 336.509 97.636 81.412 Total - HRA 112.490 115.143 52.276 40.268 TOTAL - CAPITAL 447.936 451.652 149.912 121.680

General Forecast Expenditure: Funded By Fund HRA Total £m £m £m Capital Grants 26.549 3.209 29.758 Capital Funded from Current Revenue (CFCR) 0.000 7.024 7.024 Reserves 0.000 0.715 0.715 Capital Receipts 0.402 0.140 0.542 Net Financing (Borrowing) 54.461 29.180 83.641 Total Funding - 2019/20 81.412 40.268 121.680

Key

Project Risk Green Amber Red

RIBA Plan of Work Stages 0 Strategic Design 1 Preparation and Brief 2 Concept Design 3 Developed Design 4 Technical Design 5 Construction 6 Handover and Close Out 7 In Use 33

TRANSFORMATION STRATEGY Transformation Strategy 34 Members will recall that Cabinet approved on 26 June 2019, a framework and associated recommendations to embed FACE in our workforce and communities. This included the development and roll-out of an immersive and interactive FACE experience, which has now been delivered to 1,811 employees, with a further 30 sessions scheduled to run until February 2020. Feedback is being gathered on an ongoing basis, and is being used to make improvements and assess the effectiveness of the experience, to ensure we can transform effectively with savings delivered, services redesigned, demand effectively managed and outcomes improved.

As noted previously good progress is being made around the development of digital and associated new ways of working as part of service redesign. East Ayrshire Digital Week was delivered from 16 - 19 September, with a number of events and interactive sessions delivered to a wide audience of participants. A number of suggestions and ideas are now being developed further as we seek to fully embed digital in our services. A video summarising the week's activities has been produced, and is now available on the Council's Internet (Digital Week video)

Work has commenced on identifying how to best implement the previously agreed Smarter Working principles at London Road. Initial engagement with CMT will shortly extend to Elected Members, to understand any specific requirements that need to be considered in applying these principles in a building with a different user base.

WORKSTREAM 1 – FAIRER, KINDER AND CONNECTED Reduce loneliness and isolation The Transformation Strategy acknowledged the negative impact that loneliness and isolation has on mental and physical health. By tackling this important area and creating better connected communities, we can reduce demand on Council services and improve the wellbeing of our residents. A number of events, aligned to national work, have already been delivered, with a range of initiatives led by the HSCP underway to encourage people to be kinder to others, but also to recognise how they can help themselves to ease feelings of loneliness.

Data driven decision making We have an abundance of data which if effectively structured, linked and interrogated can provide greater insight and intelligence, particularly around early intervention and demand reduction work. A workshop was recently co-designed and delivered with the Improvement Service to support and challenge where data could be better utilised to inform decision making. Opportunities for further collaboration across services and partners are being developed. Transformation Strategy 35 WORKSTREAM 2 – WORKFORCE PLANNING Workforce reduction - service All Heads of Service are bringing forward plans for the redesign of their services, review and redesign with projects and proposals emerging to deliver services in a different way. As noted previously, digital continues to be seen as a major enabler for redesign. The Head of Transformation continues to meet regularly with Heads of Service to ensure these redesign plans are advancing at the necessary pace, with due consideration of the workforce planning implications, and remain aligned to the future service spending targets previously approved by Cabinet. It is anticipated that Cabinet will continue to be asked to consider and agree proposals to redesign services, with a reduced level of spend, with an early review of the PPP service previously agreed by Cabinet in October. Engagement as appropriate with service users, staff groups, Trade Unions and Elected Members will be an important consideration in the redesign process. Workforce planning - career An in-house career changer programme to increase our early years workforce has changers resulted in 40 employees retraining to work in this important area. This will allow a number of the original posts to be deleted, with opportunities identified to support growth in this area by a further 15 over the next 3 months. “Learn to Teach” has also been positive, with 4 employees currently retraining as primary school teachers, and the development of a programme to extend these opportunities into secondary teaching also now at an advanced stage. Internal recruitment processes now routinely consider opportunities for career change, with posts in Housing recently advertised in this way. Coaching The FACE framework agreed by Cabinet on 26 June 2019, recognised that a coaching programme was a necessary component of our work to train, develop and support our people to make best use of their strengths and talents. This programme has been developed in-house, and is being co-delivered by colleagues in OD and Transformation. This will be embedded as a key element of the OD offer with introductory / overview sessions available, right through to in- depth immersive programmes for front-line staff. To date 81 staff have successfully completed the detailed programme, with a further 32 participating in cohorts 5 and 6, which started in October 2019. Further products are being developed jointly between OD and Transformation, around "Leader as Coach" and "Caring and Empowered Conversations". It is anticipated that the coaching approach, as it is rolled out, will support a reduction in demand for Council WORKSTREAM 3 – DIGITALLY CONNECTED Support services to work digitally, Members previously agreed a number of high-level principles to underpin the and deliver more effective strategic review of customer contact. This project is now progressing at pace and customer contact arrangements will support service redesign across the Council. A dedicated project team is now in place, and an initial programme of work has been agreed. This will include a review of existing customer contact arrangements to identify where functions will transfer into the customer services team; a shift towards up-front payments and a subsequent review of billing; and a number of initial service improvements within revenues and benefits and waste management. Development of the "Our East Ayrshire" contact centre in Kilmarnock is progressing well, with the construction work on the former Torbett's building now complete and handed over to the team. It is anticipated that the purpose-designed centre will be operational by early 2020.

Paperlite As Members are aware, all Council meetings became paperlite with effect from 1 April 2019. This is now being extended across the Council, with EMT and CMT also now paperlite. The recent Youth Climate Change Conference, hosted in the Chambers, was live streamed to a number of schools, with online and interactive presentations through the innovative use of new digital solutions. The hybrid mail solution is increasingly being rolled out across the Council, including recent adoption by the housing service, with over 30,000 letters to date sent out using this new approach. Transformation Strategy 36 WORKSTREAM 3 – DIGITALLY CONNECTED (continued) Digital Strategy A digital strategy is being finalised that will set out a high level direction of travel for the Council around the deployment of digital services and new technology. The strategy is deliberately not technology led, and instead will focus on key themes, outlining best practice and case studies, and setting a future direction for digital to support service redesign. WORKSTREAM 4 – VIBRANT AND EMPOWERED Develop a placed-based, clean A new way of place-based working was initially designed alongside the outdoor green and vibrant approach to services workforce, and as Members will be aware this is now operational in both delivering outdoor services the Doon Valley and Cumnock areas, with Kilmarnock, Stewarton and Irvine Valley areas currently being implemented. Work continues to ensure managers and front-line staff across all teams understand what place-based working means, and how it can transform operational service delivery. This includes the introduction of empowered teams, which can support the delayering of management structures across teams and services. A report is being finalised detailing the opportunities, risks and benefits associated with empowered teams, while providing guidance that can be followed to create empowered teams as part of service design.

WORKSTREAM 5 – PROPERTY Agree the approach to future Members will recall the smarter working approach and principles agreed by space usage; and review office Cabinet on 7 November 2018. These have now been fully introduced at the Opera accommodation requirements House, which has seen the employee : desk ratio and utilisation improve by over 30%. Weekly analysis indicates that maximum limits on occupancy levels (by floor and overall), have not been exceeded since these principles were implemented. Future phases of the Smarter Working roll-out are being planned across our remaining offices, to ensure we can make best use of our spaces, and provide maximum flexibility to our employees. A initial sample of schools have been identified across the area, where flexible work space will be created to provide mobile workers further flexibility to work remotely. An online mapping solution has been created to provide easy to access information about digital services that are available across the Council, including guest wifi, wireless access to corporate systems, hot desks and community accessible ICT equipment. New ways of working are now necessary, and it is important to ensure employees and managers are supported to identify and embrace these opportunities. OD are providing support to teams to redefine how they can work more effectively and flexibly. Future office space requirements continue to feature prominently, and will be closely aligned to the strategic work being overseen by the Project Management Board - Kilmarnock Town Centre.

WORKSTREAM 6 – INCOME AND COMMERCIALISATION Explore opportunities for new As Members will recall, a transformational review of parking was undertaken and areas of charging / revenue reported to Members on 27 February 2019. A number of opportunities to generate streams additional parking income were identified and have been the subject of extensive public engagement. Further work, including parking studies in key areas, has been undertaken, and all results and comments are being collated and analysed to allow political consideration, and a final report to be presented to Cabinet in December. Council Lottery Members will recall that a number of Councils are working collaboratively through the Improvement Service and Scotland Excel, to establish a business case and identify a commercial partner to operate a Council lottery. When this was last discussed by Members, it was noted that there are good examples of community- led lotteries in East Ayrshire. The review has therefore been widened to consider if these community based ventures could be supported to upscale and deliver on a Council wide basis. ur 37

PEOPLE People 38 Breakdown of Absence Statistics

Average Average Employees Work Days WDL Per Service Groupings Employee Employee FTE Absent in Lost Employee Headcount Numbers Period (WDL, FTE) Chief Executive's Office 95 88 14 103 1.17 Economy and Skills 2,896 2,591 430 2,853 1.10 Health & Social Care Partnership 1,386 1,089 304 2,775 2.55 Safer Communities 1,898 1,611 337 3,592 2.23 Total 6,275 5,379 1,085 9,323 1.73

Council Year to Date Totals 2019/20 6,254 5,355 1,921 21,849 4.08 Council Year to Date Totals 2018/19 6,199 5,291 1,908 20,163 3.81

WDL Per Employee

0.69 0.62 0.63 0.58 0.53 0.51 0.52

0.00 0.00 0.00 0.00 0.00 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13

Key Points: Within periods 5 - 7 the average number of employees within East Ayrshire Council was 6,275, when adjustments were made to take account of part-time workers the average number of Full Time Equivalent (FTE) employees was 5,379. There were 1,085 instances of absence over the period giving a total of 9,323 Working Days Lost (WDL).

Council Reasons For Absence Periods 5 - 7 2,500 2,000 1,500 1,000 500 0 Working Days Lost Days Working

Key Points:

In the Council, the top 5 reasons for absence were Stress Personal (2,178.6 days lost), Musculo/Skeletal (1,620.4 days lost), Operations (1,119.6 days lost), Stomach/Abdominal (655.7 days lost) and Stress Work Related (621.4 days lost). People 39 Short Term Absence (Periods 5 - 7) 2 days to 8 days to Service Groupings 1 day 7 days 1 month Chief Executive's Office 5 5 0 Economy and Skills 171 192 98 Health & Social Care Partnership 88 112 104 Safer Communities 98 151 116 Total 2019/20 362 460 318 Total 2018/19 395 415 301

Long Term Absence (Periods 5 - 7) 1 month to 3 months to Over 6 Service Groupings 3 months 6 months months Chief Executive's Office 4 0 1 Economy and Skills 44 18 14 Health & Social Care Partnership 47 28 19 Safer Communities 53 27 24 Total 2019/20 148 73 58 Total 2018/19 145 79 42 Key Points: During the period 1140 people were absent for less than 1 month (short term). The most frequent period of absence was in the category of 2 to 7 days.

Absence Triggers (Periods 5 - 7) % of Employees Employees Service Groupings activating a activating a Trigger Trigger Chief Executive's Office 6 6.3 Economy and Skills 211 7.3 Health & Social Care Partnership 200 14.4 Safer Communities 219 11.5 Total 2019/20 636 10.1 Total 2018/19 581 9.4 Key Points: During the period there were 636 instances where an Absence Trigger was activated, most of these cases occurred within Safer Communities. As a percentage of the workforce, 10.1% of Council employees activated an Absence Trigger within the reporting period.

Occupational Health Activity (Periods 5 - 7) Number of New Number of Service Groupings Occupational Early Health Interventions Referrals Chief Executive's Office 3 0 Economy and Skills 44 13 Health & Social Care Partnership 50 28 Safer Communities 64 25 Total 2019/20 161 66 Total 2018/19 155 83 People 40 Occupational Health Activity New Occupational Health Referrals Number of Early Interventions

21 18 19 30 18 21 27 78 67 54 56 53 49 41

0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Key Points: During the period there were 161 new referrals to the Occupational Health Service and 66 instances of Early Intervention.

Welfare Activity

Number of Number of Number of Number of Physiotherapy Physiotherapy Counselling Counselling Service Groupings Appointments Appointments Appointments Appointments (Periods 5 - 7) year (Periods 5 - 7) year

Chief Executive's Office 0 5 1 3 Economy and Skills 23 62 10 26 Health & Social Care Partnership 23 121 25 66 Safer Communities 66 231 21 52 Total 2019/20 112 419 57 147 Total 2018/19 270 679 66 128 Welfare Activity Number of Physiotherapy Appointments Number of Counselling Appointments

28 24 14 14

24 96 84 85 72 25 42 18 28 12 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13

Key Points: During the period 307 Physiotherapy Appointments took place and a further 90 to the Counselling Service

Disciplinary Activity (Relating to Absence) Periods 5 - 7

Outcome still Verbal Written Service Groupings Final Warning Dismissal Other under Warning Warning consideration Chief Executive's Office 0 0 0 0 0 0 Economy and Skills 1 3 0 0 0 1 Health & Social Care Partnership 0 4 0 0 0 2 Safer Communities 1 3 1 0 1 0 Total 2 10 1 0 1 3

Council Year to Date Totals 2019/20 8 31 2 0 9 Council Year to Date Totals 2018/19 7 37 4 0 3 People 41 Disciplinary Activity (Excluding Absence) Periods 5 - 7

Outcome still Verbal Written Service Groupings Final Warning Dismissal Other under Warning Warning consideration Chief Executive's Office 0 0 0 0 0 0 Economy and Skills 0 0 1 1 1 1 Health & Social Care Partnership 0 1 1 1 0 1 Safer Communities 0 0 1 1 0 0 Total 0 1 3 3 1 2

Council Year to Date Totals 2019/20 0 3 4 4 7 Council Year to Date Totals 2018/19 3 8 7 1 6 Key Points: During the period there were 27 Disciplinary Hearings with 3 employees being dismissed. There were 4 Final Warnings, 11 Written Warnings and 2 Verbal Warnings.

Grievance Activity Periods 5 - 7 Concluded Concluded at Concluded at On-going Service Groupings at Stage 2 Stage 3 Stage 4 Case Chief Executive's Office 0 0 0 0 Economy and Skills 0 0 0 0 Health & Social Care Partnership 0 0 0 0 Safer Communities 0 1 0 0 Total 0 1 0 0

Council Year to Date Totals 2019/20 2 4 1 Council Year to Date Totals 2018/19 2 0 0 Key Points: During the period there was 1 grievance concluded at Stage 3

EA PERFORMS PEOPLE UPDATE – October 2019 Workforce Plan: Key Performance Areas

FACE IMPLEMENTATION FACE Experience

Our Immersive FACE experience started in September. This has now been delivered to 1,811 employees across all services, equating to 27% of the workforce, with a further 30 sessions scheduled to run until February 2020. 94% of all people who have attended have provided feedback that they feel much better informed about FACE and how these qualities and behaviours are part of everything we do.

FACE Time EAGER has now been replaced by FACE Time with career conversations being part of this online process. 2019 is a transition year with employees signing off on the previous year’s EAGER objectives before setting up their online Face Time account with this year’s objectives and “My Plan” detail. Face Time supports the focus of the meeting being about career development and it can be updated throughout the year. Developing a Younger Workforce A Youth Employment Group has recently been set up and an action plan is being created. Representatives across the council are part of this group including 2 representatives from our younger workforce. The role of the Youth Employment workforce group is to identify all routes for young people in our communities to move into employment within the Council, as well as supporting some of our most hard to reach young people gain work experience or move into employment within our local economy. It will also identify further ways to engage with local schools and the local community to promote the range of roles that can be carried out within the Council. An apprenticeship Framework is being created which will outline a consistent approach to employing young people within an apprenticeship programme, including rates of pay, mentoring support that will be available and identifying potential career pathways for young people on successful completion of their training. People Workforce Reduction – Headcount & FTE 42 The undernoted table provides the comparison headcount and Full Time Equivalent (FTE) for all East Ayrshire employees, including temporary employees and teachers over the period of 31st March 2018 to 30th September 2019.

H/Count FTE 31.3.18 H/Count FTE 31.3.19 H/Count FTE 30.06.19 H/Count FTE Service Groupings 31.3.18 31.3.19 30.6.19 30.09.19 30.09.19 Chief Executive's 99 93.29 98 90.46 96 89.22 95 88.65 Office Economy & Skills 2706 2422.76 2817 2516.51 2842 2540.25 2884 2591.3 H&SC Partnership 1440 1134.23 1389 1101.04 1379 1089.43 1377 1086.55 Safer Communities 1942 1649.79 1872 1589.69 1895 1615.5 1875 1597.87 Total 6187 5300.07 6176 5297.7 6212 5334.4 6231 5364.36 Key Points: All services over the 18 month period have reduced in terms of Headcount and FTE, with the exception of Economy and Skills, who have increased by 178 people or 168.54 FTE over this period. The largest increase is within education and relates to Teachers, Early Learning and Childcare posts and Classroom Assistants. Temporary Arrangements – Headcount & FTE The undernoted table provides information on the headcount of employees working in temporary contracts as well as the full time equivalent of temporary posts, covering the period from 31st March 2018 to 30th September 2019. Temporary Employees Temporary Posts (FTE) Service Groupings 31.03.18 31.03.19 30.06.19 30.09.19 31.03.18 31.03.19 30.06.19 30.09.19 Chief Executive’s 5 4 5 5 2 2.29 2.19 2.19 Office Economy & Skills 304 335 328 317 120.53 130.67 129.11 159.53 H&SC Partnership 61 62 59 51 21.93 23.2 23.2 21 Safer Communities 308 286 263 219 68.43 71.7 79.05 68.21 Total 678 687 655 592 212.89 227.86 233.55 250.93 Key Points: Temporary employees' accounts for 9.5% of the overall headcount, with the number of temporary employees reducing over the last quarter by 63 or 9.6%. The number of temporary posts has increased by 17.38 FTE over the last quarter. This is due to an increase in temporary posts within Economy & Skills of 30.42 FTE. All other services have reduced or remained static. All temporary working arrangements continue to be monitored by the workforce review group.

Developing a Young Workforce The undernoted table details the change in number of young people (under 25) employed within the council, detailing apprentices and all other employees under 25. The figures include temporary employees. 31.3.18 31.3.19 30.6.19 30.09.19 No of All other No of All other No of All other No. of All other Service Groupings Apprentices under 25's Apprentices under 25's Apprentices under 25's Apprentices under 25’s Chief Executive's 0 2 0 1 0 1 0 1 Office Economy & Skills 16 117 12 131 9 127 7 161 Health & SC 1 60 1 38 0 41 0 41 Partnership Safer Communities 43 72 55 69 52 72 49 71 Total 60 251 68 239 61 241 56 274 Key Points: Part of the Council’s Workforce plan is to grow our young workforce. From the figures above the number of young people completing apprenticeships has reduced slightly, however the number of young people employed in other positions has increased overall by 9% over the period detailed above. At present 5.3% of all employees are under 25, which is a slight increase on the last quarter reported. 43

HEALTH AND SAFETY 44 Health and Safety Reportable Incidents

5 4 1 3 2 4 3 1 2 2 2 1 1 0 Period 1Period 2Period 3Period 4Period 5Period 6Period 7Period 8Period 9 Period Period Period Period 10 11 12 13 RIDDOR - Employees' Incidents RIDDOR - Others' Incidents RIDDOR - Dangerous Occurrence

RIDDOR - The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 Key Points: During Periods 5 - 7 (2019/20) there were a total of 464 incidents reported to the Health and Safety Team. This is a decrease of 175 incidents when compared with 2018/19 where there were 639 incidents reported.

Of the 464 incidents reported to the Health and Safety Team, 8 required to be reported to HSE in line with RIDDOR. This is a decrease of 2 when compared to 2018/19 when there were 10 reported to HSE.

The ‘Causes’ of the 8 incidents were: Slips-Trips-Falls x 2; Operator Error x 2; Struck by Falling Object x 2; Struck by Moving Object x 1 and Violence and Aggression x 1.

Non Reportable Incidents 250 200 58 50 150 31 53 100 23 144 29 164 50 122 11 124 71 69 46 0 Period Period Period Period Period Period Period Period Period Period Period Period Period 1 2 3 4 5 6 7 8 9 10 11 12 13

Non-Reportable: Employees' Incidents Non-Reportable: Others' Incidents

Key Points: Of the 456 ‘non-reportable’ incidents reported to the Health and Safety Team during Periods 5 - 7 (2019/20) the 3 main ‘Causes’ were: Violence and Aggression x 252 (55%); Slips-Trips-Falls x 53 (12%) and Sports and Activities x 16 (4%). 45 Health and Safety Location of Non- Reportable Incidents (Periods 5 - 7 2019/20) 500 400 300 200 100

0 School Primary House Children's Site On Secondary Childhood Early School Special Depot Centre Learning Offices Centre Resource Janitorial Hostel Catering User's Service Cemetery Cleaning Residential Crossing School Management FM Communication EAST School Supported and Admin and Home Centre Centre

Key Points: A high percentage (64%) of non-reportable incidents occurred within Educational Establishments, and in particular Primary Schools. Number of violence and aggression incidents 2019/20 (Reportable and Non-Reportable) 2018/19 400 300 200 129 134 95 96 100 57 48 23 0 Period Period Period Period Period Period Period Period Period Period Period Period Period 10 11 12 13 1 2 3 4 5 6 7 8 9

Number of violence and aggression Number of violence and incidents (Educational Establishments*) aggression incidents 350 70 (Excluding Educational Establishments*) 300 60 250 50 200 40 29 150 108 30 22 21 22 105 20 20 100 75 76 20 19 35 50 26 10 4 0

0 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11Period 12 Period 13 Period Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period

Average days to report an incident 2019/20 Target 6.0 5.0 4.0 3.0 2.0 3.1 1.0 2.3 3.0 2.3 1.9 3.0 3.0 0.0 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period Period Period Period 10 11 12 13

* Educational Establishments includes early childhood centres, primary schools, secondary schools, special schools and ASN Facilities. Key Points: During Periods 5 - 7 (2019/20) there were 253 incidents of Violence and Aggression, 1 of which required to be reported to HSE in line with RIDDOR. This is a decrease of 160 incidents compared to 2018/19 when there were 413 incidents.

The average number of days to report an incident during 2019/20 was 2.8 days. This is an increase when compared with 2018/19 where the average number of days to report an incident was 2.5 days. 46

Business Briefing 47 Business Briefing Period Target Result Status Economy and Skills Average number of days to process a new benefits claim YTD 5.8 7.8 or change event Sept Percentage of benefits claims processed that are YTD 97.0% 98.9% accurate Sept Average time (weeks) to deal with all non-householder Sept 8.0 9.5 planning applications (not including legacy cases) Legacy planning applications as a percentage of all live Sept 10.0% 7.3% planning applications Percentage of householder planning applications Sept 80.0% 87.5% determined within target Percentage of consumer complaints completed within 14 Sept 70.0% 73.8% days Key Points: Benefits Processing At 7.8 days the average number of days to process a new benefits claim or change event is above the annual target of 5.8 days; however, the last few months of each year are always significantly lower due to year-end uprating and it is anticipated that over the course of the year, the average number of days will reduce. Therefore, although the figure is currently 0.4 days higher than the previous quarter, it remains on track to meet that year-end target figure at this time.

The percentage of claims processed accurately remains high and the service continues to ensure that staff are trained and supported to carry out processing to a high standard.

Non-Householder Planning Applications Performance at 9.5 weeks to deal with non-householder planning applications at September 2019 fell marginally below target (8.0 weeks), mainly because of a small number of complex cases. Applications falling outwith the 8-week target period will be subject to processing agreements and 'stop the clock' regulations.

Legacy Planning Applications The percentage of legacy planning applications, at 7.3%, is currently sitting at a historical low, with the comparable figure at September 2018 recorded at 14.5%. This reflects the ongoing targeting of staff resources at dealing with these cases. The determination of legacy cases is a complex process, often requiring the submission of outstanding technical information from the applicant and completion of legal agreements before the applications can be determined.

Householder Planning Applications The current performance level of householder planning applications at 87.5% is ahead of target (80.0%), a trend that has prevailed for the most part during the last two years. In general terms, most applications are determined within the statutory (8-week) deadline. Where applications cannot be determined within this period as a result of delays on the part of the applicant, such applications will be subject to processing agreements and 'stop the clock' regulations.

('Stop the clock' allows Scottish planning authorities to remove a period from the total determination time from an application, for example: due to inactivity while a land transaction is on hold; applicant failed to provide amended drawings; site survey required; and delay in consultation response from an external consultee.) 48 Business Briefing Consumer Complaints With the exception of a short period during summer 2019, Regulatory Services maintained performance levels this year, ensuring that the target has consistently been met. Staff are aware of the need to prioritise complaints and complete as efficiently as possible.

Early Learning and Childcare Expansion Planning for Phase 3 has started and will be fully implemented from August 2020. Contingency plans are in place for early childhood centres (ECCs) where building work will be completed beyond August 2020.

There are currently 40 blended model 1,140 hours places with childminders and early year settings.

At August 2019, there were 919 children aged 2-5 years receiving more than 600 hours of early learning and childcare (ELC).

A new post of Senior Lead Early Learning and Childcare Practitioner has been established in 11 primary schools with ECCs.

A recruitment challenge is now presenting itself in relation to Senior Early Learning and Childcare Practitioners (ELCP) due to extensive recruitment and opportunities for the posts of Equity and Excellence Leads and Depute Managers. Opportunities will be afforded to the ELC workforce for acting Senior ELCP posts. 49 Business Briefing Period Target Result Status Safer Communities Average number of days to re-let council houses Period 7 60 51.9

Percentage of rent lost through properties being void Period 7 3% 1.4% Number of void properties (excluding those voids to be Period 7 400 252 demolished) Current rent arrears as a percentage of net rent Period 7 10% 7.5%

Rent collected as a percentage of total rent due Period 7 96% 95.7%

Percentage of tenants leaving with rent arrears Period 7 61% 73.8% Average days in temporary or emergency Period 7 70 58.6 accommodation Percentage of new tenancies sustained for more than a Period 7 80% 81.1% year Average length of time taken to complete emergency Period 7 3 2.4 repairs (hours) Percentage of local authority streets rated category A or Sept 19 90% 91% B Key Points: Council House Re-lets Current re-let performance is 51.9 days The current year to date performance is 42.5 days compared with 50.5 days at the same period in 2018/19. Current year to date performance is 50.3 days in Cumnock and Doon Valley, 50.8 days in Irvine Valley and Ballochmyle, 32.6 days in Kilmarnock Central and South and 29.0 days in Kilmarnock North. In the year to date, 93.2% of council houses were let in under 16 weeks (31.5 days average) with 6.7% in 16 weeks to under one year (186.7 days average) and 1% over one year (475.0 days average).

Council House Voids The current number of voids (excluding those to be demolished) is 252 compared with 219 at the same period in 2018/19. 456 properties have decisions to dispose/demolish as part of the Housing Asset Management Framework (HAMF). Current void rent loss performance is 1.44% compared with Period 7 in 2018/19 at 1.45%. Currently Cumnock and Doon Valley performance is 1.48%, Irvine Valley and Ballochmyle is 2.34%, Kilmarnock Central and South is 1.06%, and Kilmarnock North is 0.87%.

Current Rent Arrears Current Tenant Arrears is £1,726,240 compared to £1,064,757 at Period 7 in 2018/19. Universal Credit (UC) is directly attributable for £519,562 of current rent arrears. As a result of Universal Credit Full Service being introduced in East Ayrshire, general arrears are accrued before a tenant receives their first UC payment and this has resulted in a rise in Current Tenant Arrears levels. Housing Services have introduced a Universal Credit Team to support our residents to claim UC and reduce the impact of Welfare Reform changes on our tenants. This new team assists and advises people in our communities on issues of rent arrears and multiple debt, helps with access to technology and internet, assists with online applications and personal budgeting, and seeks to reduce fuel poverty. Additionally, the team advises and assists people into employment, education or training through accessing services from other partners. In addition, the Housing Service has developed a 50 Business Briefing neighbourhood coach approach, which redefines the relationship between the social landlord and the tenant focusing on the positives in people, building trusting long-term relationships, equipping people for success and connecting tenants to a range of local services that might help them thrive and grow.

Rent Collected as a Percentage of Total Rent Due Current performance is 95.7%, in 2018/19 at Period 7 it was 96.1%.

Percentage of Tenants leaving with Rent Arrears Current performance is 73.8%. The current year to date figure is 68.9% compared with 66.3% for the year to P7 in 2018/19. The current year to date average arrears is £666.57, compared with £619.53 at the same period in 2018/19.

Housing Services are doing everything possible to tackle arrears recovery, including through the introduction of tenancy health checks to help mitigate this increasing trend. Additional steps have been introduced with regard to recovery of properties that may have been abandoned, with relevant details of the tenants passed to the Corporate Fraud Team, who look to trace these individuals prior to recovery of the property to help enhance tenancy sustainment and recover any arrears, to assist in managing this area of performance. Additionally, as a result of Universal Credit Full Service being introduced in East Ayrshire, in general, arrears are accrued before a tenant receives their first UC payment and this has resulted in a rise in Current Tenant Arrears levels, which has a knock on impact on this indicator.

Length of Time in Temporary or Emergency Accommodation Current performance is 58.6 days compared with 66.6 days at the same period in 2018/19. Current performance is 49.9 days in hostels and 57.8 days in furnished flats. The majority of homeless applicants wish to live in the Kilmarnock North and Kilmarnock Central and South Areas. The HAMF has led to a significant review of our housing stock and properties in David Dale Avenue, Witch Road and Frazer Walk have been demolished meaning there are less properties available to house individuals from the homeless group in these areas. The Scottish Government Rapid Rehousing agenda will seek to address some of the issues in respect of time spent in temporary accommodation.

Tenancy Sustainment Current performance for tenancy sustainment is 81.1%, compared to 81.4% at Period 7 in 2018/19. In the current period, Cumnock and Doon Valley performance is 80.1%, with Irvine Valley and Ballochmyle at 78.0%, Kilmarnock Central and South at 82.3%, and Kilmarnock North at 85.7%. Currently, sustainability from the Transfer Group is 88.5%, from the Waiting Group 81.4% and from Homeless Group is 71.9%.

Housing Repairs In Period 7, the average time to complete an emergency repair to a council house was 2.4 hours, which is better than the 2018/19 Scottish local authority average of 4.3 hours.

Local Authority Street Cleanliness The latest inspection at September 2019 resulted in a street cleanliness score of 91.1%. This is based on a snapshot of a particular area at any given time. The score can be impacted by timings, such as a busy day in the town or shopping area or at times when schools are on breaks. Weather and bin collections can also be a factor. The current performance is an improvement on the 2018/19 end of year performance which was 89.0%. 51 Business Briefing Period Target Result Status Wellbeing Hospital discharge (over 2 weeks) as at the end of the August 0 0 month

Delayed discharge bed days August 490 272

Number of Children and Young People Looked After Sept Reduce 361

Key Points: Delayed Discharges The number of people who remain in hospital when assessed as fit to be more appropriately supported in another setting (known as 'delayed discharges') for over 2 weeks has been maintained at zero as at August 2019.

Previously reported increases in occupied bed days slowed in late 2018, followed by a sustained lower rate from March 2019 onwards. East Ayrshire continues to perform well relative to benchmark comparators. In August 2019, the total of 272 bed days included 174 'Standard' delay bed days and 98 complex discharges ('Code 9' reasons). Improvement in occupied bed day activity in East Ayrshire is demonstrated when comparing the current August 2019 figure (272) to the figure recorded in August 2018 (579), representing a significant decrease of 53%. The improvement in bed days occupied as a result of delays in complex discharges has been particularly significant in recent months, falling from 210 on average over the course of 2018/19 to the 98 reported for August 2019.

Number of Children and Young People Looked After In the reporting period the long-term reduction in the number of children looked after has been maintained. Figures highlighted a total of 463 looked after and accommodated children and young people in East Ayrshire as at June 2016 with a further reduction to 393 in December 2018. As at September 2019 there were 361 looked after children and young people in East Ayrshire, indicating a further reduction of 8% in the first 9 months of 2019. As previously noted this is associated with the partnership working and asset-based ways of working in relation to prevention and early intervention.

Outwith Placements The projected favourable variance of £0.168m is the most recent position and was reported to the monthly Outwith Placement Screening Group meeting on 1 October 2019.

Currently, the number of external residential placements is 19 and accounts for the majority of the projected cost, the remainder relating to additional educational support needs provided internally. This projection includes additional recurring demography funding of £1m invested during 2018/19 partially offset by £0.250m debt repayment for both years 1 and 2 specifically related to 2017/18 £2.205m overspend. 52

COMPLAINTS 53 Complaints It should be noted that for consistency and to support benchmarking in reporting arrangements, the performance measures identified in this complaints report have been aligned to the performance indicators provided in the Scottish Public Services Ombudsman's (SPSO) National Reporting Framework.

Complaints Received (1 April 2019 to 13 October 2019)

Stage 1 Stage 2 Escalated Number of Complaints Complaints Complaints complaints

Economy and Skills 9 1 5 15 Governance 0 0 1 1 Safer Communities 41 6 3 50 Cross Department 0 2 0 2 East Ayrshire Council 50 9 9 68 Key Points: During the reporting period, a total of 68 complaints were received. As at 13 October 2019, 66 of these complaints were closed with a full response given and 2 complaints remained open. This compares with 64 complaints that were dealt with during the same period in 2018/19.

Complaints Closed (1 April 2019 to 13 October 2019)

Average Time Number Number In Working Partially Closed Within Upheld in Full Closed Days To Upheld Time* Respond Stage 1 Complaints 50 33 (66.0%) 6.5 13 (26.0%) 16 (32.0%) Stage 2 Complaints 7 5 (71.4%) 20.9 0 (0.0%) 5 (71.4%) Escalated Complaints 9 7 (77.8%) 18.0 0 (0.0%) 5 (55.6%) * Closed within 5 working days for Stage 1 complaints, within 20 working days for Stage 2 complaints and within 20 working days for Escalated complaints.

Key Points: Of the 66 complaints closed with a full response given, 50 were dealt with only at Stage 1 of the Complaints Handling Procedure, 7 complaints were dealt with only at Stage 2 and 9 complaints were Escalated.

Escalated complaints are complaints which have been escalated from Stage 1 to Stage 2 of the Complaints Handling Procedure.

Improvement Actions recorded for the reporting period, specifically in relation to Stage 2 complaints, include:

• strengthened objector notification processes within the Planning Service; and • revised guidance provided to residents, owners and tenants in respect of housing regeneration projects.

Further work is being taken forward as part of the Council’s Complaints Handling Procedure to align with the SPSO’s Model of Complaints Handling, including the procedure for recording improvement actions. 54 Complaints

Average time in working days to respond stage 1 stage 2 escalated

35.0 29.0 30.0 25.0 25.0 22.5 20.9 19.2 20.0 18.0 18.0 13.7 15.0 12.4 10.0 5.2 6.5 5.0 0.0 Economy and Skills Governance Services Safer Communities Pan-Department East Ayrshire Council

Key Points: The average time in working days to respond to: - a Stage 1 complaint was 6.5 days (4.2 days in 2018/19); - a Stage 2 complaint was 20.9 days (30.7 days in 2018/19); and - an Escalated complaint was 18.0 days (18.5 days in 2018/19). The percentage of complaints which were upheld:

- for Stage 1 complaints was 26.0% (35.1% in 2018/19); - for Stage 2 complaints was 0.0% (10.0% in 2018/19); and - for Escalated complaints was 0.0% (9.1% in 2018/19).

The percentage of complaints which were partially upheld:

- for Stage 1 complaints was 32.0% (18.9% in 2018/19); - for Stage 2 complaints was 71.4% (30.0% in 2018/19); and - for Escalated complaints was 55.6% (36.4% in 2018/19).

Figures in brackets relate to periods 1 to 7 in 2018/19. 55

RISKS 56

Risk Risk Risk Owner Overall Risk No. We consider the overall risk rating to be High as there remains significant uncertainty within the United Kingdom as to the longer term impact of the Comprehensive Spending Review, recent Budget announcements and the ongoing austerity measures. Projections included in the Transformation Strategy Update Report (2014), anticipated a balanced budget by 2017 following the rephasing of a number of savings, and assuming the delivery of all previously approved efficiencies and workstreams. The SG policy to maintain teacher numbers and the pupil / teacher ratio at September 2014 Census levels continues to adversely impact on the savings previously approved by Council or alternatively on the level of Economic Depute Chief grant received from the SG. Reviews of existing structures / financial controls / service climate - The Executive delivery models are ongoing to maintain strong financial management across the Council. level of grant and Chief Officers continue to analyse budget announcements, economic forecasts and demographic funding 1a Financial projections to ascertain the local impact of these. Council on the 28 February received and available in the Officer approved the 19/20 Budget Report which contained details of an indicative budget gap of future will not Economy £10.3m. Detailed work on the 20/21 Budget has commenced and early indicators, based on support existing and Skills wider uncertainties, mean that the budget gap is likely to increase. The budget has been service levels. informed by the Scottish Government medium term financial plan and will be updated further once the financial settlement is received, now anticipated in January 2020, rather than December 2019.

Red We consider the overall risk at present to be High as continuing reforms to benefits, and job losses in the area, could have a severe impact across Council services. The anticipated downturn has been reflected in Council budgets with income and bad debt budgets critically reviewed and realigned. The impact of welfare reform is being monitored on an ongoing basis but is leading to an increase in bad debt provision for rents and council tax. Universal Credit full service launched in East Ayrshire in October 2017 and like most councils Economic on Universal Credit Full Service the HRA is experiencing an increased level of rent arrears. climate - The This is being kept under constant review with policies, processes and procedures being current updated to mitigate as far as possible the anticipated impact of UC. Cabinet on 28 August economic 2018 approved the creation of an additional 7 members of staff to the UC Project team with the Depute Chief position will team working closely to support our communities impacted by universal credit. In October Executive have an impact 2018 the Secretary of State for Work and Pensions announced that digital and personal and Chief on the income budgeting support currently undertaken by councils will transfer to CAB's on 1 April 2019. This 1b Financial collected by the change has the potential to disconnect the various successful elements of support provided to Officer council those on UC within our communities. Detailed work has commenced across the Council and Economy with partners to review existing pathways for those within our communities who require and Skills assistance with benefits, UC, debt. This work will review existing arrangements, remove duplication and double handling and result in a more effective journey for those who are most in need of help. Work has recently commenced to examine and appraise self assessment system that calculates benefit entitlement in order to further enhance benefit uptake and ensure income is maximised. This piece of work progresses alongside the partnership approach to review support pathways and although the recent work is in its infancy, updates will be provided in future EAP reports.

Red 57

Risk Risk Risk Owner Overall Risk No. We consider the overall risk to ratingbe Highto beasHighrecentas thereand imminent remains significant reforms to uncertaintybenefits, and withinjob thelosses United in the Kingdom area will ashaveto athe severelonger impactterm on impact residentsof the and Comprehensive indeed across Council Spending services. Review, recentWelfare Budget Reform announcementsis having an acute and impactthe ongoingon East austerity Ayrshire measures. residents. Work is progressing to ensureProjections support included mechanismsin the Transformation are in place through Strategy Financial Update Inclusion Reportand (2014),other anticipated appropriate a servicesbalanced includingbudget by CAB. 2017 following CAB have the moved rephasing officeof ato numberallow someof savings, capacityand assuming issues to thebe addressed,delivery of allandpreviouslythese new approvedoffices efficiencies are now fullyand operational.workstreams. Officers The SG frompolicy socialto services,maintain housing,teacher numbers finance,and economicthe pupil development,/ teacher ratio communications,at September DWP2014 andCensusCAB levels meet continues regularly to planadverselyappropriate impact on responsesthe savingsto previouslywelfare reform approvedin termsby Councilof serviceor alternatively delivery.on Changesthe level toof Discretionarygrant received Housing from the Payments SG. Reviews regulationsof existing have enabled structuresadditional / financial payments controlsto be /awarded service todeliverythose models tenants are affectedongoingbyto undermaintainoccupancy strong financialand who managementapply for the across payments, the Council.and is mitigatingOfficers continue against potentialto analyse rentbudget arrears.announcements, Benefits sanctions economic are continuing forecaststoandhavedemographican adverse impactprojectionson ato rangeascertainof individuals. the local impact Fundingof these. was identified, Council targetedon the 28atFebruaryvulnerable received individualsand whoapproved rely on thefood 19/20 banks Budgetand Reportsuffer fuel which poverty, containedand detailscontinuingof an fundingindicative for CABbudgetto support gap of individuals£10.3m. Detailed impacted workbyonwelfarethe 20/21 reform. Budget A reporthas commencedto Cabinet onand 31earlyMay indicators,2017 approved based theon extensionwider uncertainties,of this funding meanto that31 March the budget2018. gapTheis revisedlikely to Benefitincrease. Cap The camebudget into force has beenon 7 Novemberinformed by2016the Scottish and is having Governmentan adverse medium impact term across financial a numberplan andof households.will be updated A total furtherof 79oncehouseholds the financial were settlement capped asis ofreceived, 31 Octobernow2018,anticipatedimpactinginonJanuary 282 children.2020, rather The annual than totalDecember value 2019.of benefit payments not now being paid as a result of the cap is £0.184m. An Economic appropriate and flexible response to the roll out of UCFS in East Ayrshire is in place and climate - The remains under close review as claimant numbers increase. The Grants Committee at its local economic meeting of 15 March 2018 agreed a further detailed review of the funding mechanism for position will Depute Chief those individual community and voluntary sector projects that were recipients of Grants have a direct Executive Committee funding would be undertaken as part of the Transformation Strategy with the impact on the and Chief continuation of additional funding to CAB for 2018/19 through the Welfare Reform Grant as 1c residents of Financial approved by Council on 22 February 2018 as part of the Revenue Budget. In addition the East Ayrshire Officer Universal Credit Project Team will support those in our communities who will be impacted by and their Economy Universal Credit and changes to the wider benefits system. DWP has recently announced that demand for and Skills the planned Managed Migration of those on legacy benefits will still take place over the council planned timescales but that the migration itself will begin with a tapered introduction. The services. methodology used in respect of the migration i.e. job centre, local authority area, type of benefit, etc. is unknown at this time, however as noted earlier, whichever method is used the groups being migrated on to UC will impact the most vulnerable within our communities. Discussions with those services and other organisations that provide support around welfare reform, income maximisation, debt and debt advice has highlighted that there has been a shift in the type of support in recent times with a move to significantly more complex cases presenting for advice. Support continues to be given although it is leading at times to increased workload. The work noted earlier regarding reviewing the levels of assistance will provide additional support to those most in need by both identifying the precise type of support required and in seeking to prepare for the substantial increase in workload that is likely to arise as a result of the DWP managed migration policy. Recent updates on the current level of support provided by Council services such as the Financial Inclusion Team and the Universal Credit Project Team, as well as the CAB, highlight an increased demand for services and assistance for complex cases of financial distress. In addition the Revenues & Benefits service with F&ICT are experiencing an increase demand for Scottish Welfare Fund payments leading to a "high demand" status being applied to Crisis Grant and Community Care Grant applications.

Red 58

Risk Risk Risk Owner Overall Risk No. We consider the overall overall risk risk ratingto be toHigh,be Highas thereas there are uncertainties remains significant around uncertainty the impacts within that leavingthe United the KingdomEU will have,as to particularlythe longerintermthe event impactof ofa worstthe Comprehensive case scenario no-deal Spending withdrawal. Review, recentThe potential Budget announcements loss of funding, and impact the ongoingon economic austerity conditions measures. including growth, inflation, Projectionsborrowing costs, includedand thein the potential Transformation for further changes Strategyto Updatelocal government Report (2014), funding anticipatedall present a a significantbalanced budget financial by risk 2017to followingthe Council theand rephasingthe localof economy,a number includingof savings, theand numberassumingof public the anddeliveryprivateof all sectorpreviously jobs. There approved are also efficiencies potentialand risksworkstreams.to the Council TheinSGrespectpolicyoftoemployeesmaintain whoteacher are numbersEU Nationalsand the livingpupilin/the teacher UK, the ratio impactat Septemberon local2014 communities,Census levels the impact continueson theto Financial Risk - adverselysupply of goods, impact services,on the savings and supply previously chains approved that are reliantby Council on EUor countries.alternatively on the level of The UK leaving grantClose receivedcontact is frombeing themaintained SG. Reviews acrossofUKexistingand Scottish structures governments / financialto ensure controlswe /operate service the European deliverywithin established models are mechanismsongoing to andmaintainprocesses. strong A financial close overview managementof EU acrossfunded the projects Council.is Union and the Officersbeing maintained, continue to particularlyanalyse budget aroundannouncements, Employability programmes economic forecaststo establishand demographic the potential potential for a projectionsimpacts on totheascertain Council. the The local impact impacton ofborrowingthese. Council costs hason the not 28yetFebruary materialised, received althoughand worst case approvedaffordability theof 19/20the Budget capital Report programme which remains containedunder detailsconstantof an indicativeand detailedbudget scrutiny. gap of scenario no- Depute Chief Transformation£10.3m. Detailed Strategy work on 2the will 20/21 require Budgetto takehas accountcommencedof thisand changingearly indicators, landscape. based Theon deal withdrawal wider uncertainties, mean that the budget gap is likely to increase. The budget has been Executive Ayrshire Growth Deal (AGD) may provide some mitigation in terms of the economic impact. will have an informed by the Scottish Government medium term financial plan and will be updated further and Chief COSLA are coordinating work that assesses the impacts, including the EU Settlement impact on our once the financial settlement is received, now anticipated in January 2020, rather than 2a Financial Scheme, employability, funding, procurement, economic impacts, local democratic workforce, local accountabilityDecember 2019.and other local issues. On 31 October 2018 the East Ayrshire Community Officer communities, Planning Partnership (EACPP) received a briefing from the Minister for UK Negotiations on Economy the provision of Scotland's Place in Europe on the current thinking linked to the implications of Brexit. The and Skills goods and briefing was extended to both the North Ayrshire CPP South Ayrshire CPP. A detailed report services, supply on the possible implications for the Council of a no-deal withdrawal from the EU was presented chains, the local to Cabinet on 16 January 2019. Members will be briefed on any significant developments as economy and they arise. In accordance with our standing arrangements for community resilience, the the Council’s Council has established a ‘UK Withdrawal from the EU Preparedness Group’, chaired by the financial Chief Executive, and includes members of the Executive Management Team and other key position officers. The Depute Chief Executive (Safer Communities) had been identified as tactical lead for taking forward the Council’s arrangements. Action and mitigation plans are in place and our state of readiness is kept under review albeit noting the ever changing issues relating to the UKs withdrawal form the EU. Support and advice continues to be provided to local business as well as non-UK EU nationals.

Red We consider the overall risk to be High as there remains an element of uncertainty in respect Financial Risk - of the total expected cost of resolving these, and potential future claims. Equal Pay, A reasonable provision has been identified to fund claims which are being managed by the Equal Value Council with its external advisers. Significant progress has been made in settling first wave Depute Chief and Holiday claims and settlement discussions are at a well advanced stage in respect of the majority of Executive 2b Pay Claims other claims with settlement anticipated in the next few months. The level of financial Safer could have a resources held for Equal Pay has been assessed as adequate by the Councils external Communities significant auditors and colleagues within Legal are liaising with claimants legal representatives to make financial impact payments. on the Council Red

As at October 2019, the Council has implemented restoration programmes for Dunstonhill; Financial Risk Depute Chief Netherton; Skares; Ponesk and Spireslack and has contributed to the restoration of Powharnal – Certain Executive and Dalfad which is being carried out by Mines Restoration Limited on behalf of the Scottish Liabilities in and Chief Government in response to the threatened EU Infraction proceedings. The Council also relation to 3 Financial continues to work with the owner/operators of the last current sites at Greenburn; House of opencast coal Officer Water; Chalmerston and Duncanziemere to deliver effective restorations solutions for each of sites may fall to Economy those sites. Finally, the Council has also set aside funding to support the restoration required the Council to and Skills at Grievehill and Garleffan and will be taking this forward with the adjacent landowners in early resolve course. This should be the last Council led restoration project for all of the opencast sites which were previously affected by the liquidation in April 2013 of Scottish Coal and ATH. Amber 59

Risk Risk Risk Owner Overall Risk No. TheWe consideroverall risk theis overallMedium riskrecognising rating to bethatHighthereashastherebeen remainsan increase significantin focus uncertaintyon Health withinand Safety.the UnitedFailure Kingdomin thisasareato wouldthe longerhave termsignificant impactconsequencesof the Comprehensivefor employees, Spendingservice Review,users andrecent the Budget Council. announcements and the ongoing austerity measures. WeProjectionshave arrangements included in intheplace Transformationto manage health Strategyand Updatesafety Reportacross the (2014),Council anticipatedwhich are a keptbalancedunderbudgetreview. byThe 2017ChieffollowingExecutive's the rephasingHealth andof aSafety numberStrategyof savings,Group,andwhichassumingincludes the Health and deliveryTrade Unionof all representation,previously approvedcontinues efficienciesto keepandunderworkstreams.review both Thepolicy,SG policyand relevantto maintainand teacher numbers and the pupil / teacher ratio at September 2014 Census levels continues to Safety - related operational matters. Regular Safety Flashes and Bulletins continue to be issued to adversely impact on the savings previously approved by Council or alternatively on the level of implementation Depute Chief ensure awareness across the organisation of key Health and Safety issues and regular site grant received from the SG. Reviews of existing structures / financial controls / service of Executive safety inspections of higher risk activities, such as construction, ensures that a strong safety 4 delivery models are ongoing to maintain strong financial management across the Council. arrangements Safer culture is maintained. The safety arrangements of the Council, which are contained within Officers continue to analyse budget announcements, economic forecasts and demographic fails to Communities Health and Safety Standards, are reviewed and updated regularly in consultation with the trade projections to ascertain the local impact of these. Council on the 28 February received and adequately unions. It is recognised that penalties, fines and sanctions for Health and Safety breaches approved the 19/20 Budget Report which contained details of an indicative budget gap of address risk. have increased in severity since new sentencing guidelines were introduced in England and £10.3m.Wales in Detailed2016. The workimpacton theof 20/21these BudgetguidelineshasincommencedScotland isandbeingearlymonitored, indicators,however based theon strongwider uncertainties,safety management mean thatarrangements the budgetput gapinisplacelikelybytotheincrease.Council Theare designedbudget hasto beenavoid informedincidents and,by the thereby, Scottish risk Government of prosecution. medium term financial plan and will be updated further once the financial settlement is received, now anticipated in January 2020, rather than December 2019. Amber The overall risk is currently assessed as Medium. The inquiry has recently started taking evidence and is likely to require significant volumes of information to be submitted. It can also be anticipated that historic claims for damages will be submitted, with the current insurance arrangements likely to be challenged. An inquiry preparation group has been put in place and is populated with officers from across the Council, NHS and HSCP. This group will consider how records can be produced and managed appropriately taking into account the many legal considerations. A communications Scottish Child plan and staff briefings will seek to ensure progress with the inquiry and any associated Abuse Inquiry - implications are appropriately shared, and reputational risk considered accordingly. Requests resource for information are now being received by the Council and these are being actioned. The requirements Council has received requests for information linked to the inquiry and these requests are in on the Council the process of being actioned. On 23 October 2018 the Scottish Government implemented Director of could, and the recommendations put forward by the Interaction Action Plan Review Group relating to 5 Health and potential abuse in care and announced that a Financial Redress Scheme will be passed subject to Social Care financial risk parliamentary approval by the end of the current parliamentary term. The Scottish depending on Governments Advanced Payment Scheme (APS) opened on the 25th April 2019 for those who claims made suffered abuse in care in Scotland before 2004 and who have either a terminal illness or are against the aged over 70 years old. The Council will assess any potential implications as matters develop Council further. Claims have been received by the Council and they are in the process of being assessed by colleagues across the Council including Procurement who are in the process of arranging for specialist claim assessors to be appointed to assist the Council in the evaluation of claims.

Amber The overall risk is Medium - However, should an individual not be adequately protected the impact for individuals could potentially be severe and would likely adversely impact on the Council’s reputation. In mitigation the Chief Officer’s Group (Public Protection) maintains a robust strategic overview of child protection, adult protection, MAPPA and violence against women activity and developments. The Child Protection Committee, Adult Protection Committee, South West Scotland Strategic Oversight Group (MAPPA) and the Violence Against Women Partnership are all in place, and have responsibility for strategic planning, continuous improvement/development, workforce development and public information / engagement. These partnerships report directly and regularly to the Chief Officer’s Group Protection of where a high level of scrutiny and challenge exists. Independent Chairs are now in post for the Children and Child Protection Committee and Adult Protection Committee, and this will create opportunities Vulnerable Director of to further improve our governance and accountability arrangements. Developing this further the Integrated Joint Board has approved a proposal to develop the Public Protection and 6 Adults - Health and linked Learning and Development functions further by developing a Public Protection Team, individuals are Social Care (by bringing exiting lead officers and other employees together) to be managed by a Senior not adequately Manager who will in turn report directly to the Chief Social Work Officer – this post has now protected. been filled with uptake of duties in October 2019. The Joint Inspection of Children and Young People’s Services reported in March 2018 and found that “as part of public protection arrangements, clear and effective governance arrangements were in place”. The report highlighted “a strong, coherent planning structure, with clear lines of accountability”, noting that “The multi-agency structures driving these processes were effective and all relevant services were meaningfully involved.”

Amber 60

Risk Risk Risk Owner Overall Risk No. TheWe consider overall risk the continues overall riskto be ratingMediumto beasHightheas naturethereof remainsthe activity significantis such uncertainty that new attacks within arethe increasingly United Kingdom likely.as to the longer term impact of the Comprehensive Spending Review, Enhancedrecent Budget procedures announcements are in placeand theto ongoingprevent austerityand detect measures. fraud, information received from colleaguesProjectionsin includedother areasin theand Transformationanti-fraud networks Strategyis assessed Updateas Reportreceived. (2014), This anticipated includes the a Nationalbalanced Anti-Fraudbudget by Network 2017 following (NAFN) the which rephasing most UKof Councilsa number participateof savings,in,andthe Scottishassuming Local the Authoritiesdelivery of Chiefall previously Internal Auditorsapproved Group efficiencies (SLACIAG)and workstreams. , Police Scotland, TheandSG intelligencepolicy to maintain shared withteacher the numbersCouncil’sandMonitoringthe pupil Officer/ teacheras ratiothe atCouncil’sSeptemberSingle2014 PointCensusof Contact levels continues (SPOC) forto Seriousadversely & impactOrganisedon the Crime savings (SOC) previously related issues. approved Corporateby Council anti-fraudor alternatively work continueson the levelto beof deliveredgrant received via the from partnership the SG. established Reviews withof existing North Ayrshire structures Council / financialin the formcontrolsof the / service shared team,delivery which modelshas are nowongoing been tooperationalmaintain strong since late financial2016, managementwith outcomes across reported the Council.to the Fraud and GovernanceOfficers continueand Scrutinyto analyse Committeebudget announcements, twice a year. The economic Councils forecasts Chief Governanceand demographic Officer, misappropriati Depute Chief Actingprojections HeadtoofascertainFinance and the localICT, Head impactofofHR,these.Head Councilof Transformationon the 28 Februaryand Chief received Auditor meetand on of council Executive regularlyapprovedas thethe 19/20 Strategic Budget Anti-Fraud Report which Group; contained the ICT Security details of Manager an indicativejoined thebudget group gap from of resources - the and Chief late£10.3m.2019. Detailed. The review work onoftheinternal 20/21 controls Budget undertakenhas commenced duringand theearly year indicators,by Internal based Auditonis 7 Council is faced Financial summarisedwider uncertainties,in their mean Mid-Year thatand the Annualbudget Reports gap is likely whichto areincrease. presented ThetobudgetGovernance has beenand with financial Officer Scrutinyinformed Committeeby the Scottishand Governmentfurther assurance mediumis termprovided financialas partplanof andthewillannualbe updatedexternal furtheraudit loss through Economy exercise.once the The financial external settlementaudit reportis received, for 2018/19now consideredanticipated byin theJanuary Governance2020, rather & Scrutiny than fraudulent and Skills CommitteeDecember 2019.on 24 September 2019 considered the Council’s anti-fraud arrangements and activities. stated that, “No concerns have been identified regarding fraud."

Amber The overall risk is Medium as failure to manage the consolidated impact of the current range of internal and external change programmes could be significant. The consolidated impact of the current range of internal and external change programmes is significant and failure to manage the programme effectively represents a financial and service risk. The Executive Management Team and Transformation Plan Strategic Board are alert to the consolidated impact of change programmes. It will continue to be important for individual Business Risk - project leads to maintain specific risk registers and to highlight any change in the level of risk, the Council is Depute Chief and for the EMT to ensure that sufficient resource and capacity exists to maintain unable to Executive organisational resilience as change is implemented. The Transformation Strategy was properly approved by Cabinet in June 2018 and a series of corporate workstreams were identified and and Chief manage the these together with service based redesign programmes are being advanced by Heads of 8 Financial impact of Service, supported by the Transformation Team. The latest Transformation team update is Officer multiple internal included within this report and provides further detail of the work that is being undertaken and Economy and external the savings being made. and Skills change programmes

Amber 61

Risk Risk Risk Owner Overall Risk No. TheWe consideroverall risk the overallis Medium risk ratingas theto impactbe Highcouldas therebe remainssignificant significantas has uncertaintybeen evidenced within elsewherethe United Kingdomand is increasinglyas to the longerlikely.termAttacks impactareof extremelythe Comprehensivecomplex and Spendingcould Review,exploit previouslyrecent Budget undetected announcements vulnerabilities. and the ongoing austerity measures. TheProjectionsCouncil includedhas a rangein theof security Transformationmeasures Strategyin place Updatethat are Reportsubject (2014),to ongoing anticipatedand robust a evaluation.balanced budgetThis includes by 2017 firewalls,followingvirus the rephasingchecking ofanda numberblockingofsoftware,savings,automaticand assumingsoftware the deliverypatchingofand all previouslyupdates, approvedwebsite filtering, efficienciesuserandrestrictions,workstreams.password The SGpoliciespolicy toandmaintainuser teachereducation. numbersThe Counciland theremainspupil /PSN teachercompliant ratio atandSeptemberthis provides2014anCensusexternal levelsassurance continuesof ourto Business Risk - adverselyintegrity, policies impact onandtheprocedures. savings previouslyA mandatory approvede-learningby Councilmoduleor alternativelyhas been introduced,on the levelandof Depute Chief the Council is grantfocussed receivedcyber fromsecurity theawareness SG. Reviewssessionsof existingare being structuresdeveloped. / financialThe SG controlshave published / servicea Executive subject to a deliveryresponse modelsto public aresectorongoingcybertoresilience,maintainand strongthe financialCouncil has managementfully engaged acrossin this theprocess Council.to and Chief ransomware or Officersensure we continueremaintoproperlyanalyseprotected.budget announcements,The Councils PSN economicarrangements forecastswereandrecentlydemographicsubject 9 Financial other cyber projectionsto an independentto ascertainexternal thereview local impactto ensureof these.that they CouncilmetonthetheCabinet28 FebruaryOffice requirements. received and Officer attack resulting approvedThe outcome theof 19/20the review Budgethas Reportnow been whichpublished containednoting detailsthatofthe anvaluedindicativeworkbudgetundertaken gapby of Economy in loss of £10.3m.IT colleagues Detailedhas workresultedon thein the 20/21Council Budgetcontinuinghas commencedto be fullyandPSNearlycompliant indicators,with basedour lateston and Skills systems or data certificatewider uncertainties,taking us through mean thatto June the budget2020. Finance gap is &likelyICTtoalongincrease.with Internal The budgetAudit continue has beento informedmonitor theby nationalthe Scottishrisk and Governmentcontrol environment medium termthrough financialtheirplanprofessional and will benetworks;updated furthernoting oncethat national the financial changes settlement are anticipatedis received, to that controlnow anticipated environmentin byJanuary 2022. 2020, rather than December 2019.

Amber