The Audit of Best Value and Community Planning Orkney Islands Council Prepared for the Accounts Commission June 2008 The Accounts Commission The Accounts Commission is a statutory, independent body which, through the audit process, assists local authorities in Scotland to achieve the highest standards of financial stewardship and the economic, efficient and effective use of their resources. The Commission has four main responsibilities: • securing the external audit, including the audit of Best Value and Community Planning • following up issues of concern identified through the audit, to ensure satisfactory resolutions • carrying out national performance studies to improve economy, efficiency and effectiveness in local government • issuing an annual direction to local authorities which sets out the range of performance information they are required to publish. The Commission secures the audit of 32 councils and 41 joint boards (including police and fire and rescue services). Local authorities spend over £16 billion of public funds a year. Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Government and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds. Orkney Islands Council 1 Contents The Audit of Best Value Part 3. How are services Page 2 performing? Page 23 Commission findings Page 4 Statutory performance indicators Page 24 Overall conclusions Page 6 Education Page 25 Part 1. Does the council have clear strategic direction? Community social services Page 9 Page 26 The local context Housing Page 27 Leadership and culture Page 10 Waste management Page 28 Setting a clear direction Page 12 Sustaining communities Page 29 Responding to the community Page 13 Transport Page 30 Openness and accountability Page 14 Part 4. What needs to improve? Page 32 Part 2. Is the council organised to deliver better services? Orkney Islands Council’s improvement Page 15 agenda Page 33 Working with partners Page 16 Managing performance Page 17 Scrutiny Page 18 Managing resources Page 19 Continuous improvement and competitiveness Page 21 Equal opportunities Page 22 2 The Audit of Best Value The Audit of Best Value 3 This report is made by the Controller As Best Value and Community of Audit to the Accounts Commission Planning encompass, all the activities under section 102(1) of the Local of a council it is not realistic to audit Government (Scotland) Act 1973. After everything in depth, so we plan our considering it the Commission may detailed work in two ways: do any or all of the following: • Where possible, we draw on • direct the Controller to carry out the findings of other scrutiny further investigations processes, such as the work carried out by the council’s • hold a hearing external auditors and by inspectorates. These are • state its findings. incorporated in our report. The Local Government in Scotland Act • We select certain aspects of 2003 introduced new statutory duties the council’s performance for relating to Best Value and Community detailed audit investigation. A wide Planning. The scope of Best Value and range of sources, including the Community Planning is very broad council’s own assessment of its but, in general terms, a successful performance, reports issued by council will: external audit and inspections, and national statutory performance • work with its partners to identify a indicators (SPIs), informs this clear set of priorities that respond selection. to the needs of the community in both the short and longer term The report reflects this selective approach, with detailed commentary • be organised to deliver those on some areas and limited or no priorities coverage in others. While we have made some comparisons with other • meet and clearly demonstrate councils, our overall approach has that it is meeting the community’s focused on performance trends and needs improvement within Orkney Islands Council. The report also reflects the • operate in a way that drives picture available at the time our main continuous improvement in all its audit work was conducted – between activities. September and October 2007. The challenge for local government is We gratefully acknowledge the to find new ways of working across co-operation and assistance provided services and with other bodies to to the audit team by Orkney Islands achieve the best results for citizens Council, particularly the councillors and service users. The key objectives and officers contacted during the of this audit were to: audit. We would specifically like to thank councillor Stephen Hagan, • assess the extent to which the convener of the council; Alistair Orkney Islands Council is meeting Buchan, the chief executive; and its duties under the Local Gillian Morrison, project manager Government in Scotland Act 2003 (Corporate Change and Development). • agree planned improvements with the council. These will be reviewed by the council’s external auditor over the next three years. 4 Commission findings Commission findings 5 1. The Commission accepts this report • The community and corporate on the performance of Orkney Islands plans need to be supported by Council’s statutory duty to secure clear action plans with specific, Best Value and to initiate and facilitate measurable targets and the community planning process. milestone dates. The Commission recognises that the report gives a broad picture of • A number of the basic systems the council’s performance based on and processes to support and the work of Audit Scotland and the demonstrate Best Value are not findings of other scrutiny bodies such yet in place. as Inspectorates and that it does not attempt a comprehensive review of 5. The Commission notes that the all service delivery. We acknowledge council carries out benchmarking the co-operation and assistance given with the other islands councils and to the audit process by members and would encourage it to benchmark officers of the council. with a wider range of councils, to enable benefits to be achieved from 2. The Commission recognises the best practice elsewhere in Scotland. challenges faced by Orkney Islands We look forward to receiving an Council arising from its remote and improvement plan with measurable dispersed geography. We acknowledge and achievable outcomes, which will the council’s good leadership and its build on the good work being done by performance in a number of areas, the council. and the innovative approach which it has adopted in response to its circumstances, in particular in its partnership arrangements with NHS Orkney and its joint working with community councils. 3. We particularly welcome: • the council’s level of self awareness • its culture of openness • the extent of community engagement • the council’s financial planning and sustainability. 4. With regard to areas where the council needs to make progress we would highlight the following: • The council needs to adopt innovative approaches to building capacity, particularly to support corporate functions. • There is a need for effective corporate performance management arrangements. 6 Overall conclusions Overall conclusions 7 Orkney Islands Council faces 1. Orkney Islands Council is Scotland’s 4. The council has a range of many challenges arising from its smallest local authority, serving improvement activities in place, remote and dispersed geography. a population of approximately including best value reviews, Its small scale makes it difficult 20,000 people dispersed over 19 responses to audit and inspection to build the capacity to make the of its 70 islands. Its geography and results, and reacting to trends in transformational change needed to demographics are challenging. Social Statutory Performance Indicators fully embed best value processes and economic sustainability feature (SPIs). However, improvement and modernise services. The highly as council priorities. The council activity is not coordinated effectively. council can demonstrate good has a workforce that is rooted in the This significantly limits the council’s performance in a number of key community and is highly motivated ability to demonstrate continuous service areas, including education to improve the quality of life for local improvement in services. The and social work. It is strongly people. However, its small size and council has recently developed focused on the survival of its fragile low budget base make it difficult to an improvement framework to communities and engages well attract and retain appropriately skilled address this but it has not yet been with local community groups. It and experienced staff, particularly to fully implemented. Key elements, provides good leadership to the support corporate development. such as an effective performance Community Planning Partnership management system, have yet to (CPP) and works effectively with a 2. Elected members and senior be initiated and as a result corporate variety of partners. officers are prominent in the performance management is weak. community and the council’s role However, the council has not fully in providing community leadership 5. Elected members need to take a recognised the role of Best Value is strong. The convener and more active role in promoting Best in helping it to achieve its strategic chief executive provide effective Value. They would benefit from aims. Elected members