SC 121212

City Chambers DUNDEE DD1 3BY 4th December, 2012 Membership Councillor Kevin Keenan Councillor Richard McCready
Councillor Fraser Macpherson Bailie Derek Scott Councillor Jimmy Black Councillor Kevin Cordell Councillor Craig Melville Bailie Willie Sawers All other Members Agenda and papers for information
Dear Sir or Madam SCRUTINY COMMITTEE Please attend the SCRUTINY COMMITTEE to be held in the City Chambers, City Square, Dundee on Wednesday, 12th December, 2012 at 2.00 pm. Substitute members are allowed. Yours faithfully DAVID K DORWARD Chief Executive
DECLARATION OF INTEREST
Members are reminded that, in terms of The Councillors Code, it is their responsibility to make decisions about whether to declare an interest in any item on this agenda and whether to take part in any discussions or voting. This will include all interests, whether or not entered on your Register of Interests, which would reasonably be regarded as so significant that they are likely to prejudice your discussion or decision-making. 2 INSPECTION - ST ANDREWS PRIMARY SCHOOL
(Report No 475-2012 enclosed).
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PUBLIC SERVICE IMPROVEMENT FRAMEWORK (PSIF) ASSESSMENTS
(Report No 397-2012 enclosed). 4 INTERNAL AUDIT REPORTS
(Report No 477-2012 enclosed). 5 INTERNAL AUDIT REPORTS - SUMMARY OF PROGRESS ON THE IMPLEMENTATION OF RECOMMENDATIONS
(Report No 478-2012 enclosed). 6 THE PROCESSES AND SYSTEMS IN PLACE FOR THE MANAGEMENT OF CASH WITHIN SCHOOLS AND MEASURES IN PLACE TO CHECK ARRANGEMENTS
(Report No 488-2012) enclosed). 7 MANAGING PERFORMANCE: ARE YOU GETTING IT RIGHT?
(Report No 486-2012 enclosed). 8 NATIONAL FRAUD INITIATIVE 2012/2013
(Report No 363-2012 enclosed). 9 CORPORATE PERFORMANCE SELF-ASSESSMENT 2012/2013
(Report No 451-2012 enclosed).
1 REPORT TO: REPORT ON: SCRUTINY COMMITTEE - 12 DECEMBER 2012 EDUCATION SCOTLAND (HMIe) INSPECTION OF ST ANDREWS RC PRIMARY SCHOOL AND NURSERY CLASS DIRECTOR OF EDUCATION 475-2012
REPORT BY: REPORT NO:
1.0 1.1
PURPOSE OF REPORT The purpose of this paper is to report on the findings of Education Scotland (HMIe) following an inspection at St Andrews RC Primary School and Nursery Class.
2.0 2.1
RECOMMENDATIONS It is recommended that the Scrutiny Committee: i) ii) notes the contents of this report; and instructs the Director of Education to monitor progress towards meeting the areas for improvement contained in the report.
3.0 3.1
FINANCIAL IMPLICATIONS None.
4.0 4.1
MAIN TEXT St Andrews RC Primary School and Nursery Class were inspected by Education Scotland in June 2012. They published a report on their findings on 30 October 2012. At the time of the inspection 340 children were on the Primary school roll and a further 40 children were receiving pre-school education in the nursery on a part-time basis. The inspectors identified the following strengths of the school and nursery class: Childrens experiences in the nursery class. The Honey Bee nurture programme in the early years of primary school. Staff involvement in the life and work of the school.
4.2
4.3
The following areas for improvement were agreed with the school and education authority: Raise childrens attainment across all aspects of their learning. Ensure that approaches to support for learning meet the needs of all children. Improve the curriculum in line with the principles of Curriculum for Excellence. Introduce effective approaches to self evaluation which will improve the quality of education, including arrangements for tracking childrens progress.
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2 4.4 4.4.1 Quality Indicators HMIe reports using a six-point scale for reporting performance: excellent very good good adequate/satisfactory weak unsatisfactory 4.4.2 outstanding, sector leading major strengths important strengths with some areas for improvement strengths just outweigh weaknesses important weaknesses major weaknesses
The following quality evaluations were given at this inspection: Quality Indicator Improvements in performance Children's experiences Meeting learning needs Primary School Nursery Class Weak Good Satisfactory Good Weak Good For both the school and nursery class Weak Weak
The curriculum Improvement through self-evaluation 4.5
St Andrews RC Primary School's School Improvement Plan (2012-2015) includes a focus on the identified areas for improvement. These will be regularly reviewed, monitored and evaluated in line with both the school and the local authority's quality improvement calendars. The attached appendix outlines improvements made to date. HMIe indicated that St Andrews RC Primary School and Nursery Class need additional support and more time to make the necessary improvements. Therefore, it is their intention to engage in an interim support visit, work alongside the local authority and maintain contact to monitor progress. It is also their intention to return to evaluate progress in improving provision within one year of the publication date of the report.
4.6
5.0 5.1
POLICY IMPLICATIONS This report has been screened for any implications in respect of Sustainability, Strategic Environment Assessment, Anti-Poverty and Equality Impact Assessment and Risk Management. There are no major issues.
5.2
6.0 6.1
CONSULTATION This report has been subject to consultation with the Chief Executive, Director of Corporate Services and Head of Democratic and Legal Services.
7.0 7.1
BACKGROUND PAPERS The following Background Papers were relied upon in preparation of this Report: Education Scotland (HMIe) Inspection Report for St Andrews RC Primary School and Nursery Class, Dundee City Council October 2012.
MICHAEL WOOD Director of Education

November 2012
3 Dundee City Council Education Department Scrutiny Committee Report Inspection and Reporting Inspection Agency Report publication date Name of establishment Sector Name of headteacher / manager Roll Education Scotland (HMIE) 30 October 2012 St Andrews RC Primary School and Nursery Primary/Nursery Avril Barnett (Acting)/Lorna Ferry (Acting) 340 plus 40 part time nursery pupils Inspection Outcomes Quality Indicator Improvements in performance Learners' experiences Meeting learning needs The curriculum Improvement through self-evaluation Nursery good good good weak weak Primary weak satisfactory weak weak weak Secondary
The report uses the following word scale: excellent very good good satisfactory weak unsatisfactory outstanding, sector leading major strengths important strengths with some areas for improvement strengths just outweigh weaknesses important weaknesses major weaknesses
Key Strengths Childrens experiences in the nursery class The Honey Bee nurture programme in the early years of the primary school Staff involvement in the life and work of the school
Areas for Improvement and Action Raise childrens attainment across all aspects of their learning Ensure that approaches to support for learning meet the needs of all children Improve the curriculum in line with the principles of Curriculum for Excellence Introduce effective approaches to self-evaluation which will improve the quality of education, including arrangements for tracking pupil progress.
Analysis of Report Following the inspection week the department took immediate action to enhance the capacity of leadership the Education Manager and Quality Improvement Officer taking charge of the establishment. The PT (SfL) was released from class commitments for session 12/13 to allow her to improve the quality of support for learning and to address the significant issues related to Additional Support Needs across the nursery and primary. The School Improvement Plan 2012/15 reflects the areas for improvement and action and provides a clear strategic focus for school improvement. HMIE returned to the school on November 5/6 2012 for a support visit (Appendix 1). Further to this visit a confidence statement was issued which confirmed that the school had made significant progress and that plans/records were detailed and accurate with very appropriate targets and vision. Quotes from the confidence statement included: plans were detailed and included the right priorities and tasks needed to bring about improvement; a number of important aspects had already been addressed; the new team, working with staff, has achieved a great deal in a very short period of time. As part of the Department priority to introduce co-operative learning to all schools in Dundee, 3 staff have already attended these academies, with another 7 booked in for training this session. Staff already trained have cascaded strategies to their colleagues and peer visits to share good practice has begun. Staff already report that this is having a beneficial impact on learning and teaching. Again, in line with Departmental priorities, the school is in phase 2 for the implementation of On Track With Learning, with 2 staff identified as Lead Personnel to take this forward and are working with other cluster schools to implement this strategy. Staff in nursery and early years are embracing Responsive Planning and are being supported by the link Child Development Officer. Staff are being supported to improve the curriculum and have been given clear guidance on CfE and have been given inservice training in November 2012 on Building the Curriculum 4, skills development and planning for effective learning, teaching and assessment. HMIE will further support the school in Jan March 2013 with this. Curriculum development will be a major focus for development during the remainder of this session. Approaches to quality assurance have been improved, with the production of a clear quality assurance calendar which demonstrates the purpose and impact of activities. Consultations have taken place with staff, pupils and parents and a number of improvements are taking place as a result eg working groups involving staff, parents, pupils and relevant partners to review homework, approaches to health and wellbeing and positive behaviour are being established with staff taking the lead in these. Programmes of PRD/EPRD are in place and a more robust approach to absence management is evident to reduce the significant levels of staff absence. Partnerships with professional partners and other agencies are more effectively involved in supporting the life and work of the school and there are plans to extend this further eg, colleagues in community learning are willing to support a homework club in the school. Consultation with the newly elected pupil council on what it is like to be a learner in St Andrews demonstrates that the pupils are more motivated and positive about the quality of learning and their voice in this. Clearly there is much more to achieve but the school has achieved a great deal and are confident that plans for further improvements will secure raised attainment and achievement for all learners. HMIE have indicated that they will return in September/October 2013 to follow through on the outcomes of the original report and will publish a report to parents/carers on their findings.
5 Appendix 1
I was impressed by the very thorough and effective way in which both Avril Barnett, Education Manager and acting head and Margaret Foley, QIO had responded to the inspection. The plans were detailed and included the right priorities and tasks needed to bring about improvement. A number of important aspects had already been addressed. These included:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Child protection procedures and record keeping Review of all LAAC children to ensure compliance with Council policy. Addressing staff absence through formal council procedures Addressing some of the issues surrounding behaviour emphasising the responsibility of class teachers Establishing regular meetings with SfL staff and action minutes Re-establishing effective partnership working to better meet the needs of young people and their families. Engaging with parents where there were concerns surrounding a child. Providing support and access to other agencies if needed. Extending the breakfast club by targeting individuals. Appointing a health assistant to increase capacity within health and wellbeing. Introduced more in-depth and diagnostic assessments. Involving parents during the assessment process. Increased the time available for SfL staff to consult with class teachers. Provided appropriate CPD for staff especially around increased expectations and improving behaviour (Education Scotland staff) Introduced focussed class visits by SMT to address pace and challenge and differentiation. . Consulted with the newly elected Pupil council on what it is like to be a learner in St. Andrews school. Introduced a new SfL referral form One development still at early stages is the development of a nurturing school. We agreed that this will be a challenging agenda for some staff but that it is important that all staff accept that all childrens health and wellbeing is the responsibility of all. The review of SfL is well underway. There is a need to further develop the capacity of a few to undertake all the roles and responsibilities associated with SfL. The management team are very aware of this and are providing clear direction including robust monitoring is order to secure improvement.
Overall I feel that the new team, working with staff, has achieved a great deal in a very short period of time. They plan to use the RIF to engage further with staff on aspects of learning and teaching.
6 30 October 2012 Dear Parent/Carer St Andrews RC Primary School and Nursery Class Dundee City Council Recently, as you may know, my colleagues and I visited and inspected your childs school. During our visit, we talked to parents and children and we worked closely with the headteacher and staff. We wanted to find out how well children are learning and achieving and how well the school supports children to do their best. The headteacher shared with us the schools successes and priorities for improvement. We looked at some particular aspects of the schools recent work, including the approaches staff are taking to improve childrens literacy skills and promote positive behaviour. We also considered the impact of the schools nurture programme in supporting vulnerable children in the early stages of primary school. As a result, we were able to find out how good the school is at improving childrens education. How well do children learn and achieve? Children in the nursery learn and achieve well. They are happy, settled and play very well together. They are confident in choosing their activities and are motivated when learning outdoors. They enjoy talking about their learning and planning what they want to do next. Across the primary school, the quality of childrens learning experiences is satisfactory overall. Most children behave well and are keen to learn. They respond well and make progress when teachers set challenging tasks and stimulating activities. Senior managers now need to ensure that this practice is of a consistently high standard across the school. Most children are able to work collaboratively on tasks, developing their skills in sharing opinions and ideas, and learning from each other. In a few classes, children receive good feedback on their learning. Overall, too many are unclear about their learning goals and what they have to do to improve. Your children tell us that they feel safe and well cared for in school. They think that the praise reward system is helping them to improve how they learn and behave. A few children display challenging behaviour. Children take on responsibilities willingly and achieve well in a range of volunteering and leadership activities. Those who have specific roles, for example as games trainers or buddies, show good leadership. Others achieve success and gain important skills in a range of cultural, sporting and enterprising activities. In the nursery class, children are developing good early literacy and numeracy skills. Almost all talk confidently about their ideas and experiences. They enjoy looking at books and listening to stories and are beginning to recognise sounds and words. In play activities, most children are developing their early mathematical skills of counting and measuring. They have a good awareness of how to keep healthy and daily energetic play outdoors is helping them develop their movement skills. The primary school does not have a clear enough view of childrens progress across all areas of the curriculum including literacy, numeracy and health and wellbeing. There is considerable room for improvement in how well children achieve. At the early stages, they are making a good start in English and mathematics. This is not sustained as children move from stage to stage. Most children listen well and follow instructions. They need more opportunities to develop their confidence in speaking out in class and to a wider audience. Across the school, children enjoy reading and, by the upper stages, they can discuss favourite authors and say why they like their books. At the early stages, children can write imaginative pieces using descriptive vocabulary. Overall, most children need to improve their skills in writing. In mathematics, there are major weaknesses in childrens skills in mental and written calculations, problem solving and other important aspects of mathematics such as shape and measure. Children are making limited progress in developing their understanding of aspects of health and wellbeing. How well does the school support children to develop and learn? In the nursery class, your children are supported to develop and learn well. There is considerable scope to improve how well your children are supported to develop and learn across the primary school. Nursery staff plan relevant activities related to childrens interests and needs. They record childrens progress in useful profiles and are aware that these can be developed further by involving children more in the process. In the primary classes tasks and activities do not yet fully meet the needs of all children. Most teachers share with children what they are going to learn during lessons. However, they need to extend the way in which they use questioning and activities to stimulate childrens thinking and extend their learning and creativity. Teachers recognise the need to improve approaches to planning and assessment
7 to ensure all children make suitable progress. Staff in the primary school and nursery class know their children and families very well. They are committed to supporting childrens care and welfare. There is a very strong community of faith through close links with the local Roman Catholic parish. The Honey Bee Tree initiative provides a high level of nurture and support for vulnerable children in the early stages of primary school. Staff work well with external partners such as the educational psychologist to support children. Senior managers need to review the roles and responsibilities of support for learning staff to ensure all children receive appropriate support when they need it. In the nursery and primary classes, staff have helped to develop and implement changes to the curriculum, taking account of Curriculum for Excellence. As a result, children find their learning more active and interesting. All staff now need to ensure that all programmes of work help children build progressively on their learning and skills as they move from stage to stage. How well does the school improve the quality of its work? Across the primary school and nursery class, staff are hardworking and caring. They want to improve childrens learning experiences and develop childrens skills. Your children would like more of a say in how to improve their school. Senior managers now need to work with staff, children, parents and other partners to develop a well-defined plan on how to achieve this. Teachers need to improve their approaches to evaluating the work of the school so that improvements can be made where necessary. Senior managers, together with all staff, need to implement a more rigorous approach to self-evaluation to drive forward school improvement. The school requires significant support from the education authority to develop its capacity for improvement. This inspection of your school and nursery class found the following key strengths. Childrens experiences in the nursery class. The Honey Bee nurture programme in the early years of primary school. Staff involvement in the life and work of the school. We discussed with staff and the education authority how they might continue to improve the school and nursery class. This is what we agreed with them. Raise childrens attainment across all aspects of their learning. Ensure that approaches to support for learning meet the needs of all children. Improve the curriculum in line with the principles of Curriculum for Excellence. Introduce effective approaches to self-evaluation which will improve the quality of education, including arrangements for tracking childrens progress. What happens at the end of the inspection? As a result of our inspection findings we think that the school needs additional support and more time to make necessary improvements. Education Scotland will discuss with the local authority the most appropriate support in order to build capacity for improvement. We will engage in an interim support visit to the school, working alongside the local authority, and will maintain contact to monitor progress. We will return to evaluate progress in improving provision within one year of publication of this letter. We will then issue another letter to parents on the extent to which the school has improved. In that letter we will inform you if we are going to carry out a further inspection visit. Fiona Robertson HM Inspector Additional inspection evidence, such as details of the quality indicator evaluations, for your school can be found on the Education Scotland website at http://www.educationscotland.gov.uk/inspectionandreview/reports/school/primsec/StAndrewsRCPrimaryD undeeCity.asp. Please contact us if you want to know how to get the report in a different format, for example, in a translation. You can contact us at enquiries@educationscotland.gsi.gov.uk or write to us at BMCT, Education Scotland, Denholm House, Almondvale Business Park, Almondvale Way, Livingston EH54 6GA. If you want to give us feedback or make a complaint about our work, please contact 01506 600200, or write to us at the above address or e-mail: feedback@educationscotland.gsi.gov.uk.
DUNDEE CITY COUNCIL REPORT TO: REPORT ON: REPORT BY: REPORT NO: Scrutiny Committee - December 12 Public Service Improvement Framework (PSIF) Assessments Chief Executive 397 -2012
1. 1.1
PURPOSE OF REPORT To report to committee a summary of the strengths, areas for improvement and high level performance indicators for the services that have completed a PSIF assessment between April and September 2012: Architectural Services and Revenues Division.
2.
RECOMMENDATIONS It is recommended that:-
2.1
The Committee notes the findings of the PSIF assessments for Architectural Services and Revenues Division.
3. 3.1 4. 4.1
FINANCIAL IMPLICATIONS There are no financial implications as a result of this report.
BACKGROUND PSIF (Public Service Improvement Framework) is an evidence based self assessment model that allows services to identify strengths, backed up by fact based evidence and highlight areas for improvement in a structured way. This then enables departments/services to review performance and plan how to take things forward. Dundee City Council is committed to continuous improvement. By assessing ourselves we can determine how well we are performing against a nationally recognised model. Where areas for improvement are identified, there is a commitment to make those improvements and review performance on a regular basis so that continuous improvement becomes embedded in our culture. This is done through the online plan database and all assessments completed are added and are being monitored. Due to the Council restructure, it was possible to reduce the number of services needing to be assessed from 38 to 30. Since the last report, 2 services have been assisted by the PSIF Team to carry out a self assessment. The following is a summary of the main findings and conclusions generated by each of those 2 services' PSIF assessment.
4.2
4.3
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5. 5.1
MAIN TEXT City Development - Architectural Services, March 2012 The Architectural Services division carried out a self assessment during March 2012. Architectural Services' team was made up of staff from across all 3 sections: Architects, Quantity Surveyors and Building Services. The information contained in this report is based on the areas for improvement identified during the assessment. Results A major part of the assessment is reviewing the performance over the past three to five years for evidence of continuous improvement. The table below highlights a sample of the most key performance measures for the Council as a corporate body and shows the trends over this period.
Architectural Services Key Results from SOA/Council Plan/Service Plan/Other plan for the service Long term status: = >5% improvement, = maintained, = >-5% deterioration
Definition
% commercial EPCs completed % Property Reviews completed Statutory maintenance (H&S) contracts completed within set annual budget % of properties included in H&S contracts with full DCC compliance certificates (or equivalent report) as at 30/3/11 Number of health and safety accidents on sites (statutory maintenance contracts) % by which ASD fees for statutory maintenance contracts are below mean cost benchmarked with other LAs using data from RICS/SCALA 85% 10
07/08
08/09
09/10
10/11
85% 0 79 89%
Current Target
95% 25 100 95%
Benchm ark
N/A N/A N/A N/A
Long term Improveme nt Status
0 0
0 2
N/A N/A
The main strengths resulting from the self-assessment were as follows: Theme Service Planning Approach that is delivering results The Service Plan clearly states the department's objectives and is a strong operational driver. Dundee is the Lead Authority on Masterbill. The division appoints Continuous Professional Development (CPD) champions who ensure that professional development is maintained across S1 and S2. Knowledge is shared between staff through an internal process called workshop bites.
People Resources
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There are several methods of involving and empowering people across the department, e.g. CPD, technical meetings and this is supported by improving staff survey results. We apply the corporate approaches to reward, recognition and welfare consistently. We work closely with many relevant consultants, contractors and regulatory bodies e.g. City Engineers, EHTS to deliver more efficient and effective services. We have good processes for financial management in place including a Quantity Surveyor section. We have regular close communication with our clients and survey them every 2 years. Many of the employee results have improved since 2007. The service has some indicators that measure its efficiency.
Partners & Other Resources
Service Processes People Results Performance Results
The main areas for improvement identified by the self assessment were: Theme Client/Customer Communication Area for Improvement The Service Level Agreements (SLAs) are not being discussed or updated at senior client meetings. Not all clients are being included in these meetings. No evidence of an action plan from 2010 Employee Survey and some poor results. The amalgamation of the QA and Workflow systems has become too complex and is not flexible enough for all the different types of work carried out, e.g. there are too many forms, forms are difficult to find, the processes are not being followed consistently. The previous process, set up to look at procedures with a remit to eliminate any redundant processes, stalled at re-organisation. Action Update the Service Level Agreement (SLAs), set time scales for client meetings to review SLAs and ensure all clients are included. Consolidate Department structure under City Development so that 2013 Employee Survey will identify any new areas for action. Identify a responsible officer to pro-actively review our processes, e.g. fee monitoring. Reinstate Lean Service reviews. Set up clear 'minimum' procedures to be followed for all projects. Identify a responsible individual to carry out an audit of the electronic filing system and ensure that it is reviewed regularly. Ensure that all relevant staff
Employee Satisfaction/Matters
Performance Improvement
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Theme
Area for Improvement
Action are trained in the new procedures and apply them consistently. Review that the procedures are being applied consistently. Allocate relevant person to manage client surveys. Review of surveys to be carried out to establish relevance of questions and any targets or comparisons to be set. New customer survey to be done annually with results then analysed and action plan to be prepared. Clients and employees to be informed of results and actions to be taken.
Client surveys have been prepared but no person allocated to manage and monitor results and adjust as required, to ensure relevance.
There is not always a developed Client Brief with the Client that links to the SLA and this can result in inaccuracies and fee issues arising in project delivery.
Post results on intranet. Team Leader to issue the relevant SLA to the project administrator at the start of the project. Develop a set of standards for Client Briefs to show essential information that must always be included whilst still allowing enough flexibility for Clients to identify their requirements. Monitor the standards.
5.2
Corporate Services - Finance Revenues, May 2012 The Finance Revenues Division carried out their assessment during May and June 2012. The Finance Revenues Division is a customer facing part of the Corporate Services Department providing important services to thousands of people and families in the Dundee City area as follows:
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It decides based on rules set down by the UK and Scottish Parliaments who has to pay Council Tax and/or Non Domestic rates and how much people have to pay. It pays Housing and Council Tax benefits based on a person's or family's circumstances It collects and recovers any unpaid sums in respect of bills issued for Council Tax, Non Domestic rates, Housing Benefit overpayments and Community Charge (Poll Tax).
Results A major part of the assessment is reviewing the service's performance over the past three to five years for evidence of continuous improvement. The table below highlights a sample of the most key performance measures for the services and shows their trends over this period. Finance Revenues Key Results from SOA/Council Plan/Service Plan/Other plan for the service Long term status: = >5% improvement, = maintained, = >-5% deterioration
Definition % of Local Housing Allowance claims paid direct to landlords % of Local Housing Allowance claims paid directly to claimant by BACS % of claims calculated accurately % of claims processed within 14 days % of enquiries received from those targeted by take-up campaigns Average time taken to process change of circumstances in days Average time taken to process new benefit claims in days Right time indicator - average time to process change events in days % of Council Tax collected for any year within 4 years of the year finishing % of Council Tax collected in current year for current year % of Non Domestic Rates collected for any year within 2 years of the year finishing % of Non Domestic Rates collected in current year for current year % of Council Tax payers paying by Direct Debit % of reduction in number of cash payers Cost of benefits administration per claim () 71.18 71.52 91.3 91.4 11 30 13 11 37 15 98
83.6
08/09
09/10
10/11 28.55 93.67
11/12 32.32 98.54 84.9 94

0 25 95 98 99 0 9 25 16 94 92 99
Current Target
Long term Improvement Status
97.8
85.3
82.3 93.1
0
12.4 31.7 15.4 94.4 92.93 97.3
6.9 20 8.5 94.3 93.3 97.4
95.4 41.6
95.2 42.4
95.65 44.28 12 71.85
95.76 46.29 23.32 65.66
96 40 7 N/A
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Cost of collecting Council Tax per property () Cost of collecting Non Domestic Rates per property ()
21.32 39.51
21.67 35.81
22.26 43.69
19.96 40.52
N/a N/a
CUSTOMER SATISFACTION KEY FACTORS ON SERVICE QUALITY

Long term status: = >5% improvement, = maintained, = >-5% deterioration
Definition % of calls abandoned Average call waiting time in seconds (cumulative average for year to date) Customer satisfaction with accuracy of response Customer satisfaction with explanation of query Customer satisfaction with fullness of response Customer satisfaction with length of wait to be seen Customer satisfaction with manner in which dealt 08/09 09/10 10/11 18.66 41 79.5 98.4 91.7 92.4 98.4 11/12 19.08 42 83.7 99.1 93.1 88 99.1
10 5 100 100 100 100 100
Current Target
Long term Improvement Status
The main strengths resulting from the self-assessment were as follows: Theme Leadership Approach that is delivering results There are clear and defined plans to deliver outcomes and meet the Council's objectives. Robust performance measures are in place to monitor service delivery effectively. Managers review this information and take appropriate action to continue to meet the goals and objectives of the service. The department has a training service to ensure that all staff are trained and developed according to departmental needs. Home working staff have the same access to training as office based staff. Procedures are in place to meet the needs of different customer groups. Customer feedback is evaluated on a regular basis to identify any areas for service improvement. The division encourages charitable endeavours which benefits the community and promotes a sense of achievement with the staff. The service has policies, strategies and plans that support the core values and long-term outcomes of the
Service Planning
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organisation. The service has integrated business and financial planning. The policies, strategies and plans set out clear actions and appropriate targets that will support the service in the delivery of outcomes. For example, to maximise the collection and recovery of taxes and debts there are measures to improve Council Tax and Non Domestic Rates collection levels, The service has challenging standards for its main services, which take account of its responsibility for delivering national and statutory standards and targets. To prevent financial hardship and reduce poverty we have set challenging targets in order to reduce the time taken to process benefits and changes in circumstances within set periods of time. The service sets comprehensive and measurable standards for aspects of the quality of customer service to be expected in all dealings with the organisation. The service monitors performance against standards and key performance targets. People Resources There is a robust performance management framework in place that sets out a wide number of key performance targets within all of Revenues service areas. For example, the Benefit Counter Fraud Unit will have targets linked to the number of successful Prosecutions. Policies and plans that support people are in place to support the core values and long term outcome of the organisation. The dedicated Training Team provides support to develop staffs knowledge, skills and capabilities. The service provides opportunities for staff to become involved in the decision making process. For example staff were involved in the enquiry team and liaison section lean service reviews . The service promotes and encourages work-life balance as far as possible and promotes socially responsible behaviour by allowing flexible/mobile working for staff where the service requirements allows us to. Partners and Other Resources The service manages information and knowledge resources. The service has IT systems to support the management of information and knowledge. The service protects customers' privacy both in face-to-face discussions at booths at Dundee House and in the transfer and storage of customer information. The service ensures the security of resources and makes the most of technology to improve services
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and/or deliver efficiencies. The service has a comprehensive process in place to collate customer feedback to enable improved customer service. Govmetric data gathered from the Revenues enquiry team measures customer service delivery. Information from other sources, such as customer surveys are used to enhance the service. The divison has various indicators that measure the efficiency of its service.
Service Processes
Key Performance Results
The main areas for improvement identified by the self assessment were as follows:
Theme Staff Consultation
Area for Improvement There is not an adequate method for management to assess staff's opinion of things like reward and recognition, leadership, communication, etc There is no effective communication or consultation (staff & Customers) strategy in Revenues There is an inconsistent approach to delivering Customer Service Standards
Improvement Action Establish an annual departmental staff survey.
Communication
Establish a Revenues Communication/consultation Strategy.
Establish a new customer service training programme. Undertake a review of customer service performance.
Reward and Recognition
There is no system in place for managers to reward staff or recognise and motivate staff leading to inconsistencies in the way staff are being treated. Inconsistent methods of leadership applied through varying application of rules in the workplace and the way these policies are being communicated to staff can lead to staff dissatisfaction as shown in the last employee survey results.
Create a quarterly Newsletter.
Leadership
Implement a leadership training plan
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6. 6.1
POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty and Risk Management. There are no issues in this regard to report on.
7. 7.1 8
CONSULTATION The Chief Executive, Director of Corporate Services and Head of Democratic and Legal Services. BACKGROUND PAPERS The PSIF Assessment reports referred to in this report are prepared individually including an improvement plan and this is a summary document.
David Dorward Chief Executive
Date 19/11/2012
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REPORT TO: REPORT ON: REPORT BY: REPORT NO: 1.0
SCRUTINY COMMITTEE 12 DECEMBER 2012 INTERNAL AUDIT REPORTS CHIEF INTERNAL AUDITOR 477-2012
PURPOSE OF REPORT To submit to Members of the Scrutiny Committee a summary of the Internal Audit Reports finalised since the last Scrutiny Committee.
2.0
RECOMMENDATIONS Members of the Committee are asked to note the information contained within this report.
3.0
FINANCIAL IMPLICATIONS None
4.0 4.1
MAIN TEXT The day-to-day activity of the Internal Audit Service is primarily driven by the reviews included within the Internal Audit Plan. Broadly, on the completion of a specific review, a report which details the audit findings and recommendations is prepared and issued to Management for a formal response and submission of Managements proposed action plan to take the recommendations forward. Any follow-up work subsequently undertaken will examine the implementation of the action plan submitted by Management. Executive Summaries for the reviews which have been finalised in terms of paragraph 4.1 above are provided at Appendix A. Within each Executive Summary the prime aim is to provide both Members and Management with key information which includes the reason for undertaking the review, summary financial data and statistics, the areas encompassed within the review and specific areas which were excluded, the principal audit objectives, an audit opinion on the adequacy of the systems and control framework of the area reviewed, the key conclusions based on the audit findings and recommendations and a summary of Managements response to the audit report. The full reports are available to Members on request. POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty, Equality Impact Assessment and Risk Management. There are no major issues.
4.2
5.0
6.0
CONSULTATIONS The Chief Executive, Director of Corporate Services and Head of Democratic and Legal Services have been consulted on the content of this report.
7.0
BACKGROUND PAPERS None
Sallie Dailly, Chief Internal Auditor
DATE: 03 December 2012
477-2012
12-12-12
Appendix A i) INTERNAL AUDIT REPORT 2011/08 Client Subject Introduction A review of the arrangements in place in the Council surrounding the physical collection of Social Work income (cash and cheques) from clients in Council and non-Council establishments for the provision of 'lunch clubs' (lunch and teas) was part of the internal audit work. Traditionally these are referred to as lunch clubs but in practice may provide meals at both lunch and tea times. Best practice dictates that all income should be collected and recorded timeously, held securely until it is banked and reconciled to the bank account and ledger. Segregation of duties is a key internal control that should be in place when counting, recording and reconciling income. The 2011/12 Social Work income budget for meals (including establishments receiving meals from Tay Cuisine and four Social Work establishments cooking / preparing meals on-site) in Council and non-Council establishments was 129,280. Actual income for the same period was of the order of 147,000. Scope and Objectives To assess the adequacy of the processes and procedures in place locally, in a sample of establishments, surrounding collecting, counting, recording, holding, banking, reconciling and monitoring of income from lunch clubs. In addition, the processes and procedures in place centrally within Social Work, Financial Services for the reconciliation and monitoring of income from this source were also reviewed. Conclusion The principal conclusion drawn from this review is that there are weaknesses in the system which should be addressed. The main areas highlighted in the report are as follows: To assist with ensuring income records are complete and accurate, consistent working practices are in place, income is secure and banking, reconciliation and monitoring arrangements are robust, a review of working practices in place locally and centrally surrounding Social Work lunch club income should be carried out. Management Response to the Audit Report The audit findings and recommendations were formally reported to the Director of Social Work and appropriate action agreed to address the matters raised. Social Work Meals Income
477-2012
12-12-12
Appendix A (cont'd) ii) INTERNAL AUDIT REPORT 2011/30 Client Subject Introduction A review of the fuel management system operating within the Environment Department at the Clepington Road and Caird Park sites was part of the planned internal audit work. The majority of fuel used by the Council is purchased in bulk directly from the supplier and is used in the operation of vehicles, plant and machinery. The main fuelling sites across the city are currently Marchbanks, Clepington Road and Caird Park and the fuel types supplied are diesel, petrol and gas oil. Whilst vehicles are re-fuelled directly from the pumps, plant and equipment is re-fuelled indirectly via the use of jerry cans. The withdrawal of fuel is controlled through the use of a vehicle and driver recognition fob system. An internal audit review of fuel management at the Marchbanks site was undertaken and reported to the Scrutiny Committee as part of the 2011/12 work. This review therefore focussed upon the Clepington Road and Caird Park sites. These sites use SSLfuel an online software package for fuel management supplied by FUELlink Systems. There are approximately 320 vehicles and 600 pieces of plant and equipment currently being fuelled from the Clepington Road and Caird Park sites and the expenditure on fuel for these two sites during the 2011/12 financial year was of the order of 420,000 and 180,000 respectively. Scope and Objectives The overall objective of this review was to examine the fuel management system and supporting process operating within the Clepington Road and Caird Park sites of the Environment Department. Conclusion The principal conclusion drawn from this review is that there are weaknesses in the system which should be addressed. The main areas highlighted in the report are as follows: To improve effectiveness in the management and monitoring of fuel, steps should be taken to ensure records within SSLfuel and the departmental costing system are kept up-to-date. As part of this reconciliations should be undertaken on a regular basis of the data held in the computerised systems and also between the computerised records and the actual fuel stock. In addition, the management reporting functionality of SSLfuel should be assessed to formalise management information requirements. To reduce the potential risk of unauthorised access to fuel stock, the controls over the issue, return, storage and monitoring of fuel fobs should be reviewed. In addition, staff should liaise with the supplier of SSLfuel to obtain assurance in respect of the backup arrangements for this system. Management Response to the Audit Report The audit findings and recommendations were formally reported to the Director of Environment and appropriate action agreed to address the matters raised. Environment Fuel Management (Clepington Road and Caird Park)
477-2012
12-12-12
Appendix A (cont'd) iii) INTERNAL AUDIT REPORT 2012/05 Client Subject Introduction A review of procedures operated within the Construction Division in respect of sub-contractors was part of the planned internal audit work. The Construction Division undertakes a range of work including responsive maintenance, planned maintenance, emergency repairs, refurbishment and new build on the councils housing stock and non-housing property portfolio. In order to provide these services the Division employs of the order of 400 operatives covering the key building trades. Work is scheduled throughout the year to ensure that as far as possible there are sufficient resources available to carry out the various contracts. The Division may however be required to utilise the services of sub-contractors to supplement in-house resources where a shortfall in a particular skill set has been identified. This includes tradesmen with specialist skills which are not available in-house. It is important that there are robust procedures in place to mitigate the potential risks of using subcontractors. This includes comprehensive pre-qualification assessments covering such areas as financial and technical competence. During the 2011/12 financial year total expenditure in relation to sub-contractors was of the order of 3.4 million. Turnover in respect of Construction Services during this period was of the order of 27m. Approximately 55% of the total expenditure on sub-contractors related to non-housing refurbishment and new-build contracts. Scope and Objectives The overall objective of this review was to examine the procedures operated by the Construction Division in respect of the selection, vetting, appointment and performance of sub-contractors. The focus of this assignment related to sub-contractors utilised in respect of refurbishment and new build of non-housing properties. Conclusion The principal conclusion drawn from this review is that there are weaknesses in the system which should be addressed. The main areas commented upon in the report are as follows: Until the procurement agenda is more fully developed steps should be taken to improve current practices to demonstrate and evidence that potential sub-contractors are competent in both technical and financial matters and have been selected and vetted in line with good practice. To improve the control framework the letter of offer to the sub-contactor should included a more defined timeframe for return of the prescribed documents and steps should be taken to ensure that post-contract evaluation forms are completed and input to the database for all sub-contractors. Management Response to the Audit Report The audit findings and recommendations were formally reported to the Director of Environment and appropriate action agreed to address the matters raised. Environment Sub-Contractors
477-2012
12-12-12
Appendix A (cont'd) iv) INTERNAL AUDIT REPORT 2012/15 Client Subject Introduction As part of the planned internal audit work, a follow-up review of Internal Audit Report 2011/24, Winter Maintenance - Communication was undertaken. The original internal audit report concluded that there were weaknesses in the system which should be addressed. In summary these related to the following: Implementation of specific actions to improve the Council's communication strategy on winter maintenance. These actions were categorised under five key themes namely agreeing priorities, service provision, customer services, internal and external communication and were assigned target dates of November 2011 through to November 2013. Consideration being given to planning a number of local community initiatives to run in parallel with the Scottish Government's 2011 "Ready for Winter" week. Scope and Objectives The objective of this follow-up was to assess whether or not the specific actions due to be implemented by November 2011 which were agreed by management in Internal Audit Report 2011/24 had been appropriately implemented and to ensure that, where little or no progress had been made towards implementation, that plans are in place to progress them. Conclusion The principal conclusion drawn from the follow-up work undertaken is that the actions taken by management have addressed the control weaknesses highlighted in the original review that were to be dealt with by implementing the short timescale recommendations. In addition, evidence obtained and reviewed as part of this follow-up process demonstrated that some of the medium and long term recommendations are already progressing. Corporate Follow-up Review of Winter Maintenance - Communication
477-2012
12-12-12
Appendix A (cont'd) v) INTERNAL AUDIT REPORT 2012/19 Client Subject Introduction As part of the planned internal audit work, a follow-up review of Internal Audit Report 2011/19, Amendment of Creditors' Standing Data, was undertaken. The original internal audit report concluded that whilst there was basically a sound system of control there were some areas where it was viewed improvements could be made. The main areas commented upon in the original report were as follows: To reduce the risk of diversion of material payments from genuine creditors, departmental staff should be instructed that requests for set-up of new creditors should be made before placement of orders and all requests to update the creditors system should be appropriately authorised. Prior to updating any creditors' data, creditors team staff should check the profile of previous payments. Where these are significant, additional checks such as written verification should be considered and the changes should be authorised by supervisory staff. Corporate Follow-up Review of Amendment of Creditors' Standing Data
Scope and Objectives To assess whether or not each of the recommendations agreed by management in Internal Audit Report 2011/19 had been implemented within the given timescales. The follow-up review was restricted to areas included in the original report. Conclusion The principal conclusion drawn from the follow-up work undertaken is that whilst some action has been taken to strengthen the control weaknesses highlighted in the original review there are still some recommendations which require to be implemented by management. The main areas where actions agreed by management are still outstanding are as follows: To further enhance control over creditors standing data, an updated Dundee City Council New Supplier Request Form is in the process of being implemented.
Management Response to the Audit Report The audit findings and recommendations were formally reported to the Director of Corporate Services and appropriate action agreed to address the matters raised.
477-2012
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Appendix A (cont'd) vi) INTERNAL AUDIT REPORT 2012/20 Client Subject Introduction As part of the planned internal audit work, a follow-up review of Internal Audit Report 2011/16, Control Self Assessment for Social Work Establishments, was undertaken. The original internal audit report concluded that whilst there was basically a sound system of control there were some areas where it was viewed improvements could be made. The main area commented upon in the original report was as follows: To maximise utilisation of available resources in the provision of assurance to management and reduce the level of inspection activities required, consideration should be given to the introduction of control self assessment. Social Work
Follow-up Review of Control Self Assessment for Social Work Establishments
Scope and Objectives To assess whether or not the recommendation agreed by management in Internal Audit Report 2011/16 had been implemented within the given timescale. The follow-up review was restricted to areas included in the original report. Conclusion The principal conclusion drawn from the follow-up work undertaken is that the actions taken by management have addressed the control weaknesses highlighted in the original review.
477-2012
12-12-12
Appendix A (cont'd) vii) INTERNAL AUDIT REPORT 2012/21 Client Subject Introduction As part of the planned internal audit work, a follow-up review of Internal Audit Report 2011/17, Control Self Assessment for Education Establishments, was undertaken. The original internal audit report concluded that whilst there was basically a sound system of control there were some areas where it was viewed improvements could be made. The main areas commented upon in the original report were as follows: To further strengthen the content of the questionnaire prior to it being issued consideration should be given to the inclusion of contextual narrative to underpin the linkage between risk assessment and the control self assessment process. In addition, to assist in the assessment of the effectiveness of internal controls the questionnaire should be amended to include the designations for example of committee members and personnel having access to computerised systems. Education
Follow-up Review of Control Self Assessment for Education Establishments
Scope and Objectives To assess whether or not the recommendations agreed by management in Internal Audit Report 2011/17 have been implemented within the given timescale. The follow-up review was restricted to areas included in the original report. Conclusion The principal conclusion drawn from the follow-up work undertaken is that the actions taken by management have addressed the control weaknesses highlighted in the original review.
477-2012
12-12-12
SCRUTINY COMMITTEE - 12 DECEMBER 2012 INTERNAL AUDIT REPORTS - SUMMARY OF PROGRESS ON THE IMPLEMENTATION OF RECOMMENDATIONS CHIEF INTERNAL AUDITOR 478-2012
PURPOSE OF REPORT To submit to Members of the Scrutiny Committee an update on the progress in implementing internal audit recommendations previously reported to and agreed by Management.
2.0
3.0
FINANCIAL IMPLICATIONS None
4.0 4.1
MAIN TEXT The 2006 CIPFA Code of Practice for Internal Audit in Local Government in the United Kingdom states that Management has responsibility for ensuring that agreed actions are implemented and internal audit should obtain assurances that actions have been implemented. The Code also states that it is the responsibility of the Head of Internal Audit to determine the need for and the form of follow-up action. The Internal Audit Annual Plan includes a specific allocation for follow-up reviews through which the Chief Internal Auditor can assess the extent to which the agreed recommendations have been implemented within the given timescales. The outcomes of such reviews are formally reported to Management and the Executive Summaries are subsequently included in the Internal Audit Reports which are a standing item on the Scrutiny Committee agenda. It is not feasible, within existing resources, for the Internal Audit Service to carry out formal follow-up reviews for all of the areas previously audited. In order to overcome this limitation, assurances are formally sought from management by means of Progress Reviews in which they are required to provide an update of action taken in respect of recommendations previously made. Some of these will be subject to a specific follow-up review as mentioned in paragraph 4.2 above, depending upon management responses, the area under review and the resources available. Attached at Appendix A is a schedule which details the progress reviews which have been undertaken during 2012/13 by the Internal Audit Service and also summarises progress made towards implementation of the agreed recommendations. POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty and Equality Impact Assessment and Risk Management. There are no major issues.
4.2
4.3
5.0
6.0
CONSULTATION The Chief Executive, Director of Corporate Services and Head of Democratic and Legal Services have been consulted on the content of this report.
7.0
Sallie Dailly, Chief Internal Auditor

478-2012
DATE: 27 November 2012

12-12-12
APPENDIX A
Report No.
INTERNAL AUDIT REPORTS SUMMARY OF PROGRESS ON THE IMPLEMENTATION OF RECOMMENDATIONS Number of Other Comments Recommendations Department Subject
Due to be Implemented Implemented in full
2009/33
Corporate
Business Continuity
The recommendations have been partly implemented but due to the restructure of Council Departments slippage has occurred in the testing of the Corporate Plan, review of Departmental Plans and formalisation of arrangements with critical suppliers. Outstanding work is scheduled to be completed by August 2013. Work is ongoing to finalise systems for evaluating projects funded from the Central Energy Efficiency Fund and provision of management information reports from STARK.
2009/40
City Development
Follow-up Review of Energy Management
2010/02
Education
Follow-up Review of School Placing Requests
Updated guidance is scheduled to be available for parents on the Councils website by January 2013.
2010/12
Education
Public Private Partnership Operational Phase
Whilst the audit recommendations in respect of management arrangements and business continuity planning have been progressed finalisation will in part be dependent upon the outcome of a workforce planning review which is currently ongoing.
2010/13
City Development
Greenmarket Car Park
478-2012
12-12-12
APPENDIX A (contd)
Report No.
2010/18
Education
Business Credit Cards
2010/19
Finance Revenues Council Tax Refunds
Refunds has been identified as a specific review within the Councils STEP programme. Therefore although the audit recommendations have been advanced any outstanding areas will be considered as part of this exercise.
2010/20
Leisure and Communities
Cash Collection at Golf Courses
2010/28
Dundee Contract Services Construction
Management of Portable Assets
Work to go live on a new software solution by the start of the 2013/14 financial year is currently ongoing.
2010/29
Dundee Contract Services - Land Services
Management of Portable Assets
Work to go live on a new software solution by the start of the 2013/14 financial year is currently ongoing.
478-2012
12-12-12
APPENDIX A (contd)
Report No.
2010/31
Education
Attendance Management (Secondary Schools)
2010/32
City Development
Management of School Transport
2010/33
Social Work
Contracting and Payments
Significant progress has been made in respect of the recommendations and it is anticipated that they will be implemented in full by the end of the calendar year.
2010/35
Finance
Insurance Arrangements for School Transport
2011/01
Finance
User Access to Payroll
Due to the Council restructure there has been slippage in the planned review of user profiles. It is now scheduled for this exercise to be completed by the end of the calendar year.
478-2012
12-12-12
APPENDIX A (contd)
Report No.
2011/02
Social Work
Client Services
2011/04
Environment
Debit and Credit Card Refunds Brown Street Kennels
2011/07
Information Technology
USB Memory Devices
Progress has been made in moving towards use of encrypted memory devices. There are however still some technical issues which require to be further researched to fully resolve this matter.
2011/11
Corporate
Procurement
The Tayside Procurement Consortium Sustainable Procurement Action Plan is currently being rolled out across all procurement in Dundee City Council.
2011/12
Information Technology
User Access to IT Systems
478-2012
12-12-12
APPENDIX A (contd)
Report No.
2011/14
Corporate
Performance Indicators
As a result of the Councils restructure taking forward the reports recommendations in respect of improvements to current arrangements and working practices have been delayed. However it is intended that the position will be reviewed once the new Departmental Service Plans have been finalised. Significant progress has been made with respect to implementation of the recommendations. The areas to be finalised, namely analysis of the results from the lean review of the pick-up of materials from suppliers and a system for recording surplus equipment, are scheduled for completion by the end of the financial year. Whist work in terms of the recommendations has commenced completion was delayed due to priority being given to other Changing for the Future projects. Full implementation is scheduled to be complete by the end of January 2013.
2011/20
Environment
Procurement and Management of Materials
2011/21
Corporate
Periodicals, Publications and Subscriptions
2011/26
Support Services
Debit and Credit Card Refunds Registrars
2011/27
Chief Executive
Debit and Credit Card Refunds Ancrum Outdoor Education Centre
478-2012
12-12-12
REPORT TO: REPORT ON:
SCRUTINY COMMITTEE 12 DECEMBER 2012 THE PROCESSES AND SYSTEMS IN PLACE FOR THE MANAGEMENT OF CASH WITHIN SCHOOLS AND MEASURES IN PLACE TO CHECK ARRANGEMENTS DIRECTOR OF CORPORATE SERVICES AND DIRECTOR OF EDUCATION 488-2012
REPORT BY: REPORT NO:
1.0
PURPOSE OF REPORT To provide members with an assurance on the processes and systems in place for the management of cash within schools along with the measures in place to check these arrangements.
2.0
3.0
4.0 4.1
BACKGROUND Following a formal investigation into the misappropriation of income and cash at Baldragon Academy and the subsequent internal audit report presented to the Scrutiny Committee in August 2012 (Report No 310-2012), the members requested that a further report be brought back to a future meeting which provided assurances on the processes and systems in place for the management of cash within schools along with the measures in place to check these arrangements. MAIN TEXT Processes and Systems in Place for the Management of Cash Financial Regulations and Guidance The Education Department has established financial guidance for all educational establishments which is available electronically on the Education Department Intranet Site. The guidance covers :Devolved School Management School Funds Income / Banking Procedures Miscellaneous Financial Procedures
5.0 5.1 5.1.1
5.1.2
Financial Management Training Financial management training arrangements have been formalised and cover induction of new staff, refresher training and any ad hoc requirements. All financial management training is carried out by Finance professionals within the Education Department and is available to all relevant teaching and non-teaching staff within educational establishments.
5.2 5.2.1
Measure in Place to Check Arrangements School Financial Monitoring Visits Each establishment is visited at least once a year by one of the DSM Accountants, who represents the Director of Corporate Services, to discuss their financial position. Opportunities are taken at this visit to discuss any concerns, issues they have with their finances or financial procedures. The headteacher, school administrative officer and business manager, in the case of secondaries, are normally present at these meetings. Advice can also be sought at anytime by contacting either their DSM Accountant or Senior Clerical Officer within the Corporate Services Department in Dundee House.
5.2.2
School Funds The Finance Manager or the Assistant Finance Manager based in the Education Department provide support, advice and guidance regarding the operation of schools funds. School Fund procedures are covered within Financial Management training and within the School Fund Guidance.
5.2.3
Self Assessment Audits

Ultimately staff within the various education establishments are responsible for ensuring adherence to good practice in such areas as devolved school budgets, purchasing and ordering, income, banking, petty cash, school funds, security and inventories. The Education Department has however introduced Self Assessment Audits (SAA) for all educational establishments to inform the assessment of the control environment at an operational level, particularly in relation to financial matters and identify potential areas of risk to be addressed.
The last SAA exercise was completed in 2009 and the 2012 audit is in the process of being finalised. Assessment forms were issued to all nursery, primary, secondary and Kingspark schools to be completed and returned by March 2012. The majority of the forms have been returned. Recommendations have been made as a result of the returned forms and schools have been advised at their latest monitoring meetings. No major areas of concern have arisen during the audit process. It is proposed in future to have a rolling programme of SAAs with every educational establishment being audited every two years. 6.0 POLICY IMPLICATIONS The report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty, Equality Impact Assessment and Risk Management. There are no major issues. 7.0 CONSULTATIONS The Chief Executive and the Head of Democratic and Legal Services have been consulted on the content of this report.
8.0
MARJORY STEWART Director of Corporate Services
28 November 2012
MICHAEL WOOD Director of Education
28 November 2012
REPORT TO: REPORT ON: REPORT BY: REPORT NO: 1
SCRUTINY COMMITTEE 12 DECEMBER 2012 MANAGING PERFORMANCE: ARE YOU GETTING IT RIGHT? DIRECTOR OF CORPORATE SERVICES 486-2012
PURPOSE OF REPORT To provide Elected Members with a summary of the above national study that has recently been issued by Audit Scotland on behalf of the Accounts Commission.
RECOMMENDATIONS It is recommended that Elected Members note the main findings arising from this national study, including a tool for checking progress (see appendix 1 in report) and tools to aid performance management and improvement (see appendix 2 in report).
4 4.1
MAIN TEXT As part of its series of 'How Councils Work' publications, Audit Scotland has reviewed performance management and improvement on behalf of the Accounts Commission. This report highlights the importance of managing performance and explains that every one has a role to play. The report explains how to establish a performance management culture through the development of an effective performance management framework, good performance measures and the effective use performance information. The report is divided into the following areas: Part 1 - Introduction This section introduces the concept of performance management and why it is so important in these challenging economic times. Part 2 Councillors have an important role in managing performance and delivery This section explains that councillors need to be clear about what the council is trying to achieve and how they will monitor and review performance. They also need to be prepared to challenge officers on service performance to ensure that priorities are delivered and the needs of local communities are being met. Councillors can support improvement by showing they are actively interested in performance and taking action based on what the performance information is telling them. Part 3 Developing a performance management culture This section emphasises that managing performance is everyones business. In good councils, performance management practices are embedded throughout the organisation, are part of the day job and are not seen as a burden or an add-on. Where performance management is part of the culture, councillors and managers lead by example, by actively managing performance and communicating results. Good councils acknowledge good performance and deal with poor performance.
4.2
486-2012
Part 4 Developing an effective performance management framework This section explains that for a performance management framework to be effective it needs to reflect the councils priorities and be integrated into business planning arrangements. Part 5 Developing good performance measures This section explains that a good performance management framework uses a range of robust performance measures that provide a clear picture of performance. The measures should reflect a councils priorities and meet the needs of those who use them. Part 6 Using performance information effectively This section states that performance information must be acted on to improve performance. Performance reports for the public are important for accountability and should be easy to find and easy to understand. Benchmarking is an effective way of helping organisations to deliver better services. Part 7 Developing self-evaluation and improvement activity Performance management information should clearly identify where improvement is needed. There is a wide range of improvement tools and techniques available and councils need to select the most effective way to review and improve services. Selfevaluation and review must be robust and honest to be effective. Part 8 Partnership working The principles of effectively managing performance also apply to partnership working. Partners need to have a shared understanding of priorities and the impact their work is having. Part 9 Key Points for action This final section sets out a summary of the key characteristics of a council with effective performance management and improvement. Appendix 1 A tool for checking progress This appendix is a checklist for councillors to evaluate how much they know about performance in their council and to help them to decide on action points. Appendix 2 Tools to aid performance management and improvement This appendix lists the available tools to aid performance management and improvement with an explanation of what they are and how long it would take to implement each one. 4.3 The key messages from the report are as follows: councillors have an important role in managing performance and delivery and need to know and understand what the council is trying to achieve. performance management is everyones responsibility and will only be effective when it is embedded across the organisation. performance measures must reflect the councils priorities and be used to support improvement. it is not enough to only measure performance; it must be acted on, reported, benchmarked and reviewed. good performance management information supports self-evaluation to show where improvements are needed. performance management information needs to be easy for our partners, customers and stakeholders to understand.
486-2012
POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty, Equality Impact Assessment and Risk Management. There are no major issues.
CONSULTATIONS The Chief Executive, Director of Corporate Services and Head of Democratic and Legal Services have been consulted on the content of this report.
BACKGROUND PAPERS None.
MARJORY M STEWART DIRECTOR OF CORPORATE SERVICES
03 DECEMBER 2012
486-2012
How councils work: an improvement series for councillors and officers
Managing performance: are you getting it right?
Prepared for the Accounts Commission October 2012
The Accounts Commission

The Accounts Commission is a statutory, independent body which, through the audit process, requests 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 45 joint boards and committees (including police and fire and rescue services).
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.
Managing performance: are you getting it right? 1
Contents
Key messages Page 2 Part 1. Introduction Page 4 Part 2. Councillors have an important role in managing performance and delivering improvement Page 6 Part 3. Developing a performance management culture Page 10 Part 4. Developing an effective performance management framework Page 14 Part 5. Developing good performance measures Page 17 Part 6. Using performance information effectively Page 23 Part 7. Developing self-evaluation and improvement activity Page 28 Part 8. Partnership working Page 32 Part 9. Key points for action Page 35 Appendix 1. A tool for checking progress Page 37 Appendix 2. Tools to aid performance management and improvement Page 41 What do auditors say? These boxes appear throughout this report and represent case studies from individual councils. They have been drawn from Audit Scotland audit reports. They are not key findings for all councils.
About our how councils work series The Accounts Commission seeks to support developments in best value and how to manage resources such as people and finance. We recognise these as two components vital to successfully delivering council services. Our how councils work series of reports aims to stimulate change and improve performance. We select topics based on the recurring themes and issues from our Best Value audit work, the work of local auditors and our annual overview report. This is the fourth report in the series. The first, published in August 2010, examined roles, responsibilities and working relationships of councillors and council officers in achieving best value. The second report, published in June 2011, examined the relationships between councils and their ALEOs (arms-length external organisations). The third report, published in May 2012, highlighted the importance of good-quality cost information in policy decision-making and scrutinising performance. All reports are available on Audit Scotlands website: www.audit-scotland.gov.uk This report highlights the importance of councils effectively managing performance and improvement to: deliver efficient and effective services to local communities show they are achieving best value. We have worked closely with the Improvement Service in developing this report and we are grateful for their contribution.
Key messages
Everyone has a role to play in managing performance.
Key messages 3
1. Our audit work has found that all councils can improve how they manage performance and improvement. Effectively managing performance and improvement helps councils demonstrate that they are delivering efficient and effective services to communities and are making the best use of resources. 2. Councils have a statutory duty to provide Best Value, set out in the Local Government in Scotland Act 2003. This duty applies to both councillors and council employees (council officers). Best Value is about councils continuously improving the performance of their services, and effectively managing performance and improvement is essential to achieve this.
3. The key messages in this report are: Everyone in the council has a role to play in managing performance. Councillors need good-quality performance information to make well-informed decisions, scrutinise performance and identify areas for improvement. Performance measures must reflect a councils priorities if it is to assure itself that its objectives are being met. Managing performance is important for governance and accountability. An effective performance management culture, led by both officers and councillors, is essential. Performance information must be acted on to improve outcomes. Self-evaluation and review activity form an important part of continuous improvement. Councillors and officers need to ensure that the principles of effectively managing performance apply equally when working with partners.
Part 1. Introduction
Having an effective performance management framework and culture helps councils to achieve Best Value.
Part 1. Introduction 5
Why is managing performance and improvement important? 4. In 2011/12, councils spent 21 billion on providing a wide range of important services for the public. In challenging economic times it is even more important that every pound is spent wisely, and that councils are as efficient as they can possibly be. 5. Audit Scotland reports1 highlight that managing performance is an area where all councils can improve. No single council has all the elements of a comprehensive performance management and improvement framework in place.
7. Community Planning Partnerships (CPPs) also need an effective performance management framework in place to show how they are contributing towards outcomes for local communities. 8. During 2011, we gathered evidence on the self-evaluation arrangements in place across councils. This highlighted inconsistencies in the coverage and quality of information available to enable councils to implement effectively performance management. Having an informed view of how well services are performing and how corporate processes are contributing to this enables a council to focus on which areas they need to improve.
managers who are responsible for managing effective performance. They need selfevaluation frameworks to help ensure they are meeting the needs of communities and that all employees contribute to managing performance. 10. Our report combines information and guidance that already exists with the findings from our audit work (what do auditors say?). We have also included case studies to show how councils are using performance management in practice. 11. We want this report to stimulate discussion among councillors and officers and support change and improvement. This is critical given the current financial climate and the need to challenge existing ways of doing things. The report supports councillors and officers by signposting sources of information and guidance. We have also included checklists and other self-assessment tools that we hope councillors and officers will find helpful. 12. This report covers: the important role of councillors in managing performance the importance of leadership by both officers and councillors in developing a performance management culture developing effective performance management frameworks to support improvement developing performance measures using performance information effectively developing self-evaluation and improvement activity managing performance in partnerships.
What do we mean by managing performance?

Performance management involves gathering, analysing and acting on performance information to improve services and the quality of peoples lives in the local community. Managing performance is a continuous part of the day-to-day role of councillors and all staff.
Source: Audit Scotland
What do we mean by self-evaluation?

Self-evaluation is where a council systematically examines its own services, achievements, and processes to assess whether it is meeting its stated aims, objectives and outcomes efficiently and effectively.
6. Having an effective performance management framework and culture helps councils to achieve Best Value for the public money they spend. Effective and resilient performance management arrangements provide firm foundations for councils to: assess whether they are delivering their stated objectives assure themselves, and demonstrate to others, that they are delivering efficient and effective services to their communities and contributing towards outcomes.
Who is this report for? 9. This report is for: councillors who are responsible for setting the direction and scrutinising performance. They need to ensure they have the information and support available to enable them to do this. Part 2 of the report focuses on the important role councillors have in managing performance chief executives and corporate management teams who are responsible for delivering the councils objectives. To do this, they need to develop and sustain a culture of continuous improvement and ensure action is taken to improve performance
Local audit reports, Best Value audit reports, overview reports and national performance audit reports.
Part 2. Councillors have an important role in managing performance and delivering improvement
Councillors need to be clear about what the council is trying to achieve and how they will monitor and review performance.
Part 2. Councillors have an important role in managing performance and delivering improvement 7
Councillors have an important role in managing performance. They need to be clear about what the council is wanting to achieve and how they will monitor and review performance. They also need to be prepared to challenge officers on service performance to ensure that priorities are delivered and the needs of local communities are being met. Councillors can support improvement by showing they are actively interested in performance and taking action based on what the performance information is telling them. 13. All councillors have a strategic role in managing performance. This can be council wide or may be service specific, depending on their role. They are responsible for setting the vision of the council, prioritising what needs to be done and monitoring how well it is being achieved. It is not about the operational management of services, that is the role of council officers. 14. Councillors need to develop a shared understanding of managing performance with senior officers across all service areas and partnership activity. In practice, this develops by councillors regularly considering performance reports in meetings and by discussing performance with officers. Councillors need to have the confidence, skills and appropriate training to challenge officers constructively and effectively. This sends out a clear message to council officers that managing performance is being taken seriously by councillors. Councillors need to be clear about priorities and ensure appropriate performance measures are in place 15. Councillors need to be clear about their strategic vision and the councils priorities. All councils have finite resources and councillors have to ensure that what they are trying to achieve is effectively prioritised and resourced.
What do auditors say?

Performance reporting to the committee is limited and inconsistent and this has impacted on the ability of councillors to scrutinise performance. The council reported performance against 308 indicators. The council recognised that this number of indicators did not enable clarity on the key issues for councillors. Quarterly performance reports have been produced since late 2009 and are made available to councillors. Councillors find the reports, particularly the narrative, useful. Reports could, however, be more balanced in terms of highlighting areas for improvement as well as the positive messages.
Source: Audit reports
16. A councils vision and its priorities are typically set out in either a strategic or corporate plan and are reflected in the community plan. Service plans or operational plans flow from these documents and should detail how individual services plan to deliver on the councils priorities. Councillors should review these plans to ensure they clearly reflect the councils priorities and therefore ensure that service performance is helping to deliver the councils objectives. 17. Once the councils priorities have been agreed, councillors need to decide what it is they want to know in order for them to assure themselves that they are achieving the desired outcomes. Councillors should work with officers to make sure they get the information they need to fulfil their role effectively and therefore need to consider: what information they need how often they need it how it should be presented, so that it is easily understood. 18. Councillors need a range of high-level indicators to help assess performance at a strategic and corporate level, supplemented by more detailed indicators on service performance. To be fit for purpose the information needs to be:
accurate timely meaningful (but not overly detailed) relevant high quality well presented. 19. Councils are large, complicated organisations and it is not realistic or practical to routinely report on all aspects of performance. We have found that very lengthy detailed performance reports are not effective, as important issues can be buried away in the detail. Councils should therefore use tools to help councillors focus on the important issues. 20. Some measures might, for example, be reported on an exception basis to show where performance has varied from a specified standard. Councillors can be involved in helping to set the levels of variance and then be advised when performance is outside these acceptable levels. 21. Many councils use the traffic light or RAG (red, amber, green) approach which uses colour coding to help highlight where performance is on track and where there are areas of concern.
22. Councillors should also use benchmarking data. Comparing performance trends against targets, over time and with other councils can prompt questions about performance such as why is it other councils appear to be performing better than us? or why are other councils apparently providing cheaper services? Councillors should actively scrutinise performance and act on the performance information they receive 23. Having set the strategic direction for the organisation councillors have a responsibility to scrutinise performance. 24. To fulfil this scrutiny role effectively, councillors need to hold officers to account and ensure they are delivering good-quality services by taking action to address any areas of poor performance.2 Effective and challenging scrutiny by councillors demonstrates a commitment to Best Value and reinforces a positive performance management culture. 25. Councillors should robustly and constructively challenge service performance. Questioning is an important part of scrutiny. Simply considering performance reports is not sufficient and councillors have a responsibility to ask for explanations and additional analysis when necessary. 26. Many councils have committees and panels with a specific remit covering performance and scrutiny these are covered in more detail in Part 7 of this report. These forums can be an effective way of scrutinising performance and supporting improvement. It is worth remembering, however, that managing performance and scrutiny needs to take place in all forums, from full council, through committees and subcommittees to less formal panels and working groups. Managing performance is not the responsibility of an individual committee.
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How does it work in practice?

The council uses a combination of scrutiny committees and an audit committee to scrutinise performance. The roles and responsibilities of service scrutiny committees and the audit committee are clearly defined and do not overlap. Service scrutiny committees consider matters relating to service performance whereas the audit committee will consider matters relating to corporate service reviews, self-evaluation activity and external audit or scrutiny. A guidance booklet on scrutiny is provided to councillors. It covers: overall scrutiny arrangements within the council roles and responsibilities of individual councillors, committees and of officers the role of internal and external audit and inspection audit in scrutiny the work of the scrutiny committees the work of the audit committee contacts for members for assistance key techniques and lines of scrutiny questioning.
Source: Guide to Scrutiny, Perth & Kinross Council, September 2010
27. Performance measurement and scrutiny are only a means to an end and not an end in themselves. Councillors have an important role in taking decisions to respond to what the performance information is telling them. This might include: Revising plans and measures where priorities or circumstances have changed. Targeting resources to ensure priorities are delivered. Identifying improvement activity to address any areas of concern. Considering options about how or what services are delivered.
Councillors need training and support to fulfil their role effectively 28. Councillors need to have the appropriate support or training to ensure that they have a good understanding of how managing performance works and what their role is. This should be part of any induction process for new councillors and can also be useful for returning councillors. Training and support on managing performance should also form part of a councillors continuous personal development (CPD). Councillors may also benefit from specific training, for example, where they are part of specific review process or a member of a scrutiny panel.
Making an impact: An overview of the audits of Best Value and Community Planning 200409, Accounts Commission, October 2009.
Part 2. Councillors have an important role in managing performance and delivering improvement 9
29. Appendix 1 to this report includes a checklist of prompt questions designed to assist councillors evaluate whether they receive the information, guidance and support they need to fulfil their role effectively.
Want to know more?

Guide to scrutiny (Perth & Kinross Council, September 2010) http://www.pkc.gov.uk/NR/rdonlyres/B3A2393E-732F-4280-A3F2F50E2501610E/0/FINALSCRUTINYHANDBOOKSEPTEMBER10.pdf Scrutiny: Driving Performance Improvement (Welsh Local Government Association, 2007) http://www.wlga.gov.uk/english/overview-scrutiny-publications/ scrutiny-driving-performance-improvement-2007/ Guide to becoming a councillor (COSLA/Improvement Service) http://www.improvementservice.org.uk/library/downloaddocument/3444-the-candidate-s-guide-to-becoming-a-councillor/ 2012 councillor induction pack, Notebook 3 Corporate Governance (COSLA/Improvement Service) A councillors guide to performance management (2nd edn), 2006 http://www.idea.gov.uk/idk/aio/4810912 Audit Commission: Is there something I should know: Questions for councillors to ask (IDEA/Audit Commission) http://www.audit-commission.gov.uk/SiteCollectionDocuments/ AuditCommissionReports/NationalStudies/20090730istheresomethin gishouldknowrep.pdf Achieving excellence: An elected member guide to performance management (APSE) http://www.apse.org.uk/research.html Case studies: The Role of Board Members in Strategy Execution: How an Effective Board helps to Drive Performance (Advanced Performance Institute) http://www.ap-institute.com/case-studies.aspx CPD framework (Improvement Service) http://www.improvementservice.org.uk/component/option,com_is_ blank/Itemid,1328/
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Part 3. Developing a performance management culture
Councillors and senior officers need to ensure managing performance is part of their day-to-day business.
Part 3. Developing a performance management culture 11
Managing performance is everyones business. In good councils, performance management practices are embedded throughout the organisation, are part of the day job and are not seen as a burden or an add-on. Where performance management is part of the organisations culture, councillors and managers lead by example, by actively managing performance, and communicating results. Good councils acknowledge and recognise good performance and deal with poor performance. 30. Performance management frameworks, systems and measures are essential but they can only go so far. Having a good performance management culture in place helps councils to deliver their objectives and ensure they are providing efficient and effective services. An effective performance management culture will help improve performance 31. An effective performance management culture will help councils deliver their priorities, improve services and outcomes and deal with the challenges that they face. This involves everyone, councillors, officers and partners, all having a shared understanding of what is expected and why. Fostering an effective performance management culture means that: councillors and officers share a common purpose and vision everyone knows how their work contributes to priorities managers and staff monitor and manage their own performance and achievements performance is reported regularly at all levels of the organisation

The Corporate Management Team (CMT) should demonstrate strong leadership in managing performance and driving continuous improvement. CMT meetings, the forum for discussion of strategic issues, rarely focus on improvement activity and related performance issues. The council has not had a strong culture of improvement, with significant weaknesses in performance monitoring and scrutiny by councillors and no strategic approach to self-assessments to help drive improvements.
councils recognise and acknowledge where they are succeeding and where they need to deal with poor performance high standards of conduct and performance are expected and delivered. 32. Our audit work has identified a lack of an effective performance management culture as a common theme. There are a number of reasons why this seems to be the case. In some instances, we found a lack of awareness and leadership. In others, we found a focus on a system or process but not on developing a culture that would make best use of the systems that are in place. Councillors and senior officers should demonstrate a good understanding of performance and share this across the council 33. Councillors and senior officers need to ensure that managing performance is part of their day-to-day business. In practice, this develops by councillors regularly considering performance reports in meetings and by discussing performance with officers. It also involves managers considering performance corporately in management team meetings as well as in service management meetings and team meetings.
34. Councils should regularly communicate about how they are performing throughout the organisation. This needs effective communication systems to be in place so that all staff are kept up to date on performance. Councils can do this in various ways, depending on where and when people work. For example, they can use: electronic media such as email or the councils intranet written media such as newsletters, briefings and notice boards discussions at staff conferences, team meetings and briefings. 35. Councillors should be kept up to date through performance reports and formal meetings but councils can also supplement this by communicating in other ways, such as councillors briefings and notices on notice boards in the councillors lounge. 36. Managers need to recognise good performance and openly acknowledge it at both individual and team level. Recognising good performance is also about sharing success stories and knowledge across the council and with councillors and partners. It is about highlighting how improved performance has made a positive impact on communities.
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Everyone has a role to play in managing performance 37. Performance management is not something that is just done by managers; everyone has a role to play. Exhibit 1 summarises the main roles and responsibilities within councils.
38. All employees need a clear understanding of how: their day-to-day own work contributes to the organisations priorities their individual work objectives link to corporate objectives.
39. Effective induction processes for new employees are extremely important in setting the right expectations of performance for both the employee and the manager. In an effective performance review process, employees and managers focus on improvement and the employees development. This forms the basis of the employees personal development plan.
Exhibit 1
Group
Main roles and responsibilities within councils
Role
Responsibility
Councillors Council Strategic role in setting vision and direction. Holding officers to account on performance issues and providing constructive challenge. Keeping a watching brief of the councils overall performance position, particularly areas of poorer performance and risk as well as areas of good practice and innovation. Use information received through surgeries and queries from members of the public when considering performance. Setting council objectives and priorities. Monitoring overall council performance. Agreeing performance measures. Directing specific reviews to scrutinise decisions and offer alternative policy or service proposals to help improvement. Providing challenge on performance issues.
Committee
Councillor
Officers Chief executive Ensuring action is being taken to deal with areas of poorer performance and risk as well as developing areas of best practice and innovation. Managing performance and setting out what the council wants to achieve. Leading council services and taking the lead on continuous improvement; reporting performance to the public and corporately. Taking action to deal with, or referring them to, the CMT or the council as appropriate.
Corporate Management Team Senior managers
Challenging areas to improve and areas of risk. Implementing strategic decisions and sharing good practice. Carrying out self-evaluation of strengths, areas for improvement, outstanding risks and how these are being dealt with.
Part 3. Developing a performance management culture 13
40. Members of staff should discuss their performance regularly with their manager ensuring they have enough time and the appropriate skills to enable them to achieve their objectives. An employees personal development plan should explain how the council will meet their development needs and should be reviewed annually.

The chief executive, directors and assistant chief executive are using progress reports and delivery of performance targets described in business plans as part of the evidence to support regular performance management reviews with senior officers. The information forms part of the evidence for annual appraisal of senior officers and is being built into the current work to revise personal development processes within the council. The council has made good progress against its improvement priorities over the last year including a council-wide appraisal process for staff linked to performance management.
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Part 4. Developing an effective performance management framework
Managing performance is essentially about planning what an organisation wants to achieve, doing the work, reviewing what has been done and assessing whether it has the desired impact.
Part 4. Developing an effective performance management framework 15
For a performance management framework to be effective it needs to reflect the councils priorities and be integrated into business planning arrangements. 41. Managing performance is essentially about planning what it is an organisation wants to achieve, doing the work, reviewing what has been done and assessing whether it has had the desired impact. This is often called the plan, do, review, revise cycle (Exhibit 2). 42. Councils need to be clear about their priorities so they can understand what they need to measure when developing their approach to managing performance. 43. Councils also need to find effective ways of involving local communities and developing a good understanding of what local people need, want and expect from them. The results of this community engagement activity can then feed into the councils business planning processes. Sound business planning forms the basis of what to measure 44. Good councils have business planning processes which clearly link high-level strategic priorities with more specific objectives for services, teams and individuals. This is often referred to as the golden thread (Exhibit 3, overleaf). Audit work tells us that in the most effective councils there are clear links between strategic priorities (typically set out in Single Outcome Agreements (SOAs) and corporate plans), service priorities (captured in service plans) through to plans at an operational and individual level. 45. Each level of business planning should be accompanied by a relevant set of performance objectives and measures to assess progress and impact.
Exhibit 2
Types of performance measure
Set out the objectives or targets Identify what needs to be done to achieve these Identify how this will be done and what resources will be needed Identify who is responsible Set clear measures
Ensure the necessary systems and processes are in place Take action Identify and manage risks Support staff to achieve their objectives
Plan
Do
Revise
Review
Incorporate improvements into future planning Revise objectives and targets Update resource planning
Monitor progress regularly Identify what worked well and what could be improved Speak to service users and stakeholders about their experience Scrutinise performance and hold those responsible to account

we reported that work was under way to map the service plans objectives and performance measures against the councils strategic priorities, key actions and the SOA outcomes. This work has been completed resulting in improved linkages between key objectives, strategic priorities and the SOA within service plans. The targets and indicators used in the performance management system are linked to service business plans and national outcomes. Links to SOA local outcomes and corporate priorities could be clearer and more explicit.
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Exhibit 3
What we mean by the golden thread
National outcomes
Local priorities
Performance information and impact on users
Single Outcome Agreement Corporate plan Departmental planning Service planning Team or unit plans Personal plans
Objectives, priorities and performance expectations

Many councils have had difficulty in implementing a comprehensive approach to managing performance 46. The principles of performance management are widely known. However, many councils have found it difficult to design and implement a comprehensive corporate approach to managing performance. 47. Audit work tells us that commonly experienced difficulties include: a lack of a corporate approach to managing performance there are different arrangements across services weaknesses in the information available information is of poor quality, unclear or incomplete a focus on introducing electronic systems at the expense of developing a performance management culture. 48. We have previously reported on the main features of an effective performance management framework (Exhibit 4).3
3
Exhibit 4
Key features of an effective performance management system The process There is an effective corporate framework in place and embedded across the organisation. The system produces information that is accurate, timely and relevant to the councils priorities and service activities. The data is analysed to enable the quality of services at a global level, eg social work, and at a divisional level or area level to support the different levels of accountability within the council. Focusing on action and improvement Information is monitored at an appropriate level. Poor performance is challenged. Effective action is taken to improve performance and the impact is monitored. Improvement actions are specific and measurable.
Making an impact: An overview of the audits of Best Value and Community Planning 200409, Accounts Commission, October 2009.
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Part 5. Developing good performance measures
Good performance measures are SMART.
18
A good performance management framework uses a range of robust performance measures that provide a clear picture of performance. The measures should reflect a councils priorities and meet the needs of those who use them. Councils need to set clear performance measures 49. Councils need to use a range of measures including performance indicators, targets and trends to get a clear picture of whether the council is achieving its objectives. This is essentially the do part of the plan, do, review, revise cycle (Exhibit 2 in Part 4). 50. Good performance measures typically have the characteristics set out in Exhibit 5. Performance measures are most effective where they: focus on the councils priorities are based on a sound understanding of current and past performance and what is likely to influence future performance. 51. Council strategic plans rightly span a number of years and it is therefore important that shorter-term, interim objectives or milestones are in place to assess progress. Similarly it is important that councils have a clear picture of current performance a baseline so that they can assess both progress and impact over time. Types of performance measures 52. To manage performance effectively, councils need to set clear objectives and then use a combination of measures to track progress and impact. They need good-quality information on: inputs to understand what resources the council is using to deliver services and objectives
Exhibit 5
Characteristics of good performance measures Good performance measures are SMART: Specific: the performance measure indicates exactly what result is expected so that performance can be judged accurately Measurable: data are available or can be collected relatively easily Achievable: they are realistic, not based on aspirations Relevant: they matter to the intended audience and clearly relate to the service being measured Timely and have information available frequently enough to have value in making decisions combine fact (quantitative) with views and opinions (qualitative) measure inputs, outputs and outcomes.

The BV2 pathfinder report highlighted the need for more comprehensive performance management arrangements including the need for good performance information which includes the views of customers and local people and analysis of comments and complaints. The councils performance reporting and monitoring remains too dependent on process-based information, such as the progress of specific projects, and SPIs divorced from local outcomes. It should rather take into account information on customer views and other service-user data; value for money; how well the council is achieving service standards; and delivering wider outcomes. The council has over 5,000 performance indicators on the performance management system, providing a wide range of detailed management information on the efficiency and effectiveness of services. Each service in the council has a suite of indicators that provide a multi-faceted view of performance, including the level of customer satisfaction, quality of service provision against service standards, efficiency and effectiveness.
Part 5. Developing good performance measures 19
processes to know when and where services are being delivered and if they are being delivered on time outputs to understand both the level and quality of the service the council is delivering outcomes to assess what impact the services are having and whether they are achieving the agreed objectives. 53. Good performance management frameworks combine these measures to give a council an overview of performance. Exhibit 6 describes the types of performance measures and gives examples. Knowing what it costs to deliver a service is an important input measure. Our recent report Using cost information to improve performance focuses specifically on using cost information and measures.4 54. People need different kinds of performance information at the different levels of the organisation. Councillors and senior managers need a strategic overview of organisational performance while service managers require information that helps them to manage their service or team. Individual members of staff also need to know how they are performing. This means that there is a natural hierarchy of measures (Exhibit 7, overleaf) which should reflect the hierarchy of plans described in Part 4 of this report and the structure of the organisation. Good performance measures take account of who and what they are for 55. Performance measures need to serve the purpose they were designed for. They should, therefore, be tailored for the information user. Councillors typically need a set of
Exhibit 6
Types of performance measure
Type of performance measure Input measure
Description
Example
A measure of the resources used by a service or process. Some inputs relate to workload, others relate to the amount of resources used in a process. The number of units of a process or service produced or delivered. Aspects of business or service processes such as completion rates, processing times, backlogs, error rates.
Staff hours used Cost of school books
Output measure
Number of hours of care provided
Process measure
Days between request for care assessment and assessment Days to process benefits application Improvement in standard of living and equality of opportunity Reduction in deaths
Outcome measure
A measure of the ultimate benefit from undertaking an activity or providing a service.
high-level indicators giving them an overview of overall performance. Managers need more detailed measures to help them manage services, and team leaders need operational indicators to manage their teams. 56. A regular core set of measures that summarises the councils overall achievement is useful for councillors, especially when backed up by a commentary that provides clear messages on performance. Other measures might be reported only to highlight where performance has varied from an expected standard. Councils use various methods to report performance information. For
example the RAG (red, amber, green) system uses colours to highlight positive performance as well as under-achievement or where there is a risk of not meeting a target. 57. Simply reporting performance by itself cannot explain success or failure. In some cases, extra analysis is needed, perhaps using statistics or graphs, to understand the trend, history and probable direction of performance. Service managers and staff who collect performance information have a responsibility to identify areas where additional analysis can help. Equally, councillors and senior officers have a responsibility to ask for and provide
Using cost information to improve performance: are you getting it right?, Accounts Commission, May 2012.
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Exhibit 7
Hierarchy of performance indicators (PIs)
Type of indicator Output, outcome
Category of indicator Outcome/ quality of life Pls
Main audience Citizens, CP partners, council
Input, output, outcome
Corporate PIs
Citizens, council, committees, CMT
Input, process, output
Service level PIs
Customers, committee, CMT, service managers, employees Customers, service managers, employees Managers and employees
Input, process, output
Operational level PIs
Process, output
Personal performance PIs
Volume of performance information
resources (people or money) for additional analysis if necessary. The most effective reporting by performance officers: presents information in an accessible way using appropriate charts rather than tables limits the number of measures in any one report to avoid information overload highlights measures that are causing concern, for example by using a dashboard to graphically represent performance information clearly explains reasons for performance being off target sets out what action will be taken to restore performance where measures are off target.
Good performance measures take account of customer satisfaction and the needs of specific user groups 58. Councils need to take account of the needs of their communities and people who use their services when deciding what performance measures to use. This is because customer feedback is an important measure of success or progress towards outcomes. 59. Councils that take account of the needs and preferences of the people who use services can adapt services and better satisfy the needs of their communities. Most councils survey service users and citizens in some way. Some have established customer standards that set out what people can expect by way of service quality. Reports from surveys, and about how well the council is meeting
customer standards, are useful performance measures. Information from complaints systems identify problems and also helps gauge customer satisfaction. Performance measures are vital to demonstrate Best Value 60. Our Best Value audits have shown that councils need to do more to demonstrate cost effectiveness across the whole range of their services. They can do this by comparing cost and service performance trends over a period of time. Performance measures therefore need to include a combination of cost and quality indicators. Councils can also demonstrate Best Value by using benchmarking to compare themselves with other councils or comparable organisations. Part 6 of this report covers benchmarking in more detail.
Part 5. Developing good performance measures 21

As part of the improvement model all services are developing efficiency indicators to help the council understand its costs relative to other providers and authorities.
What does a good set of performance measures look like in practice?

In 2007, the five UK audit agencies (Audit Commission, Audit Scotland, National Audit Office, Northern Ireland Audit Office and Wales Audit Office) jointly launched a set of indicators for each of five corporate service activities: estates management, finance, human resources, ICT, and procurement. Two further services were added later: communications and legal. The indicators are widely acknowledged as a reliable source of measurement. Many public bodies across the UK adopted them voluntarily, and they are used for benchmarking. This suggests they have been successful. The indicators produced for each corporate service area comprise a set of primary and secondary indicators that combine indicators of cost, user satisfaction, management practice, input, process and outcomes.
61. In May 2012, we published a report called Using cost information to improve service performance: are you getting it right? This report highlighted the benefits of using cost measures as part of a performance management framework. Would an apparently high-performing service be viewed in the same light if it appeared to be costing twice as much as a similar service in a neighbouring council, for example? Without good cost information, councillors cannot fully monitor and scrutinise service performance. Good outcome measures are vital to demonstrate impact 62. Delivering better outcomes is a complicated business and can be difficult to measure. The measures councils use must not only adequately reflect what is going on but also provide a basis for decision-making, identifying areas for improvement or where learning could be shared. 63. Part of the value of a good measure is in comparing performance against others, so, wherever possible, councils should use existing measures. Using a range of sources of performance information to provide comparisons makes data more reliable. Sources include the Society of Local Authority Chief Executives (SOLACE) local outcome indicators, benchmarking groups, and statutory performance indicators from the Accounts Commission.
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Want to know more?

Using cost information to improve service performance: are you getting it right? (Accounts Commission) http://www.audit-scotland.gov.uk/docs/local/2012/nr_120510_hcw_ costs.pdf Value for money in public sector corporate services: A joint project by the UK public sector audit agencies http://www.nao.org.uk/publications/0607/vfm_in_public_sector_ corporate.aspx On target: The practice of performance indicators (Audit Commission) http://www.audit-commission.gov.uk/SiteCollectionDocuments/ AuditCommissionReports/NationalStudies/archive_mptarget.pdf A measure of success: Setting and monitoring local performance targets (Audit Commission) http://www.audit-commission.gov.uk/Pages/default.aspx How to design key performance indicators: management white paper (Advanced Performance Institute) http://www.ap-institute.com/white-papers.aspx Customer satisfaction measurement tool (Improvement Service) http://www.improvementservice.org.uk/library/592-customer-firstprogramme/777-customer-satisfaction-measurement-tool/viewcategory/ SOLACE/Improvement service local outcome indicators http://www.improvementservice.org.uk/local-outcome-indicators/ ABC benchmarking partnership http://www.improvementservice.org.uk/resources/toolkits/ benchmarking-for-improvement-toolkit/ SOCITM benchmarking ICT service http://www.socitm.net/info/216/benchmarking_services/106/ benchmarking_ict_service/1 CIPFA corporate services benchmarking club http://www.cipfabenchmarking.net/corporateservices/ Accounts Commission Statutory Performance Indicators http://www.audit-scotland.gov.uk/performance/
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Part 6. Using performance information effectively
Councillors and officers need good-quality performance information that enables them to identify areas of concern and respond to these through well-informed decisions.
24
Performance information must be acted on to improve performance. Performance reports for the public are important for accountability and should be easy to find and easy to understand. Benchmarking is an effective way of helping organisations to deliver better services. Good-quality performance information must be acted on to improve performance 64. Having a highly developed performance management framework is not an end in itself. It is vital that decision-makers take action based on what the performance information is telling them. For example, where performance measures are indicating that performance is poor, or deteriorating, a council should decide what action needs to be taken to improve performance. 65. Councillors and officers therefore need good-quality performance information that enables them to identify areas of concern and respond to these through wellinformed decisions. The performance information therefore needs to be accurate, timely and meaningful. 66. Councils that manage performance well focus on gathering and using information about performance at all levels of the organisation. Reliable information means they can start to make decisions about what needs to improve. 67. Where an action plan is developed to respond to performance issues councils need to have good governance in place to ensure they are delivered. Improvement plans therefore need to clearly identify: the issues action to be taken
who will be responsible for action timescales what resources are required to implement the actions how progress will be monitored and by whom what the measure of success will be. Performance reports for the public should be easy to find and easy to understand 68. Public performance reporting (PPR) is all about informing the local community about where the council is performing well and where they need to do better. It is an essential part of accountability. However, a recent Audit Scotland review showed there is significant scope to improve the methods councils use to tell the public how they are performing.
69. To meet public performance reporting expectations councils need to:5 clearly identify what information to provide at a service activity level and which at a corporate level use information from its performance management and information systems use a range of media to report how they are performing include guidance on how people can find more detailed information present information in a clear, easy-to-understand and concise format have an accessible feedback system which encourages people to comment on the information, and ensures the feedback is regularly reviewed. 70. An easy-to-understand and concise public performance report would typically include the following: Information on what services the authority provides, what people can expect from them, and how to find out more detailed information. Information on what the council has learned from consultations and how it will respond to them. Information on how the council works with partners on Community Planning. Information that shows the council is spending its money wisely and providing value for money. Information that provides a rounded, honest and balanced picture of how the council is performing.

The council has developed a PPR strategy and uses a range of methods for communicating and engaging with stakeholders. The council has worked with its residents to develop its PPR arrangements in line with residents needs. However, performance reports to councillors and the public did not set out clear targets for the councils services and objectives for future service delivery. In addition, the reports did not set out timescales and measurable targets for how the council will address areas of poor performance.
Local Government in Scotland Act 2003.
Part 6. Using performance information effectively 25
What does it look like in practice?

A council carries out effective public performance reporting. The main aspects of this are: making information publicly available within a reasonable time of the period it refers to reporting on a range of information to show that it is securing best value across all services in: how it uses resources, such as skills and money in responding to community concerns on equality on sustainability using several media to communicate with the public. It makes information available on its website but also uses local newspapers and mailshots to inform the public. Performance information is easy for people to access from the websites homepage all reports and website information are in plain, clear language using visual devices to show performance information using red, amber and green traffic lights graphics to help readers understand the information benchmarking family groups of councils to show how the council compares with similar councils. Data cover a three-year period where it is possible to make comparisons using cost information to show that value for money is improving over time. This is accompanied by contextual information explaining the data including information to show that the council listens and responds to the public. Examples include satisfaction survey results, complaints data and what action the council has taken in response to customer feedback including a balanced view of performance on areas of good performance and where improvement is needed.
Want to know more?

The Local Government in Scotland Act 2003 Best Value Guidance Measures to Support public Performance Reporting Guidance for local authorities on reporting performance to the public (2005) http://www.scotland.gov.uk/ Publications/2005/01/20531/ 50061 Best Value toolkit: Public Performance Reporting (Audit Scotland) http://www.audit-scotland. gov.uk/docs/best_value/2010/ bv_100809_performance_ management_toolkit.pdf Trend information, comparative information, and performance against targets or benchmarks to help people assess how performance is changing. Information that explains: what the council is doing to improve its performance and impact what targets it has for improvement what improvements have been achieved since it last reported. Benchmarking performance information helps improvement 71. At its most basic level, benchmarking is simply about making comparisons. Councils can compare their own performance over time, or compare how they are doing with other councils or other organisations. As far back as 1999, we published guidance about benchmarking in a report called Measuring up to
26
the best: a managers guide to benchmarking which remains relevant today.6 More recently the report Using cost information to improve performance7 focuses on using cost information in benchmarking. 72. Using benchmarking effectively, councils might ask questions about their performance such as: Why is performance deteriorating over time? Why is it other councils appear to be performing better than us? Why are other councils providing cheaper services? 73. Benchmarking can be an effective way of helping organisations to deliver better services by sharing knowledge and information directly and learning from other organisations. Benchmarking can be a powerful tool for managers to improve services, but used inappropriately it can also be expensive and can fail to deliver benefits. 74. Councils need to be clear about what they expect from benchmarking. This will provide a focus for their work, and will reduce the danger of making performance comparison an end in itself. Outcomes might include: lower costs better value for money improved customer satisfaction achieving targets implementing good practice. 75. The factors that lead to successful benchmarking include: allowing enough time for planning and devoting enough people and time to benchmarking

The council has been active in the development of the SCOTS1 national road asset management performance indicator suite and national benchmarking exercises and can demonstrate improved performance management and reporting. The performance management framework can be further enhanced by the use of comparative data and clearer links to SOA performance.
Note: 1. Society of Chief Officers of Transportation in Scotland Source: Audit Scotland
Want to know more?

ABC benchmarking survey The Improvement Service (IS) has developed a benchmarking toolkit in response to findings from research by the ABC Benchmarking Partnership.1 The research found that managers in local authorities believed benchmarking to be important but they sometimes faced practical barriers when undertaking it. The toolkit aims to respond to some of the issues raised by the research by providing opportunities for self-learning and facilitated learning to help managers develop practical knowledge and skills. http://www.apse.org.uk/ APSE performance networks Association for Public Service Excellence (APSE) performance networks are public sector benchmarking groups across the UK. They cover 14 services and members get a range of performance reports, comparative data and access to other resources. http://www.apse.org.uk/ Public Audit Forum The UK audit agencies developed indicators designed to help public sector organisations understand, compare and demonstrate the value for money performance of their corporate services. These indicators have been used extensively by public sector organisations across the UK. More detail is available on the forums website: www.public-audit-forum.gov.uk Measuring up to the best: a managers guide to benchmarking (Accounts Commission, January 1999) http://www.audit-scotland.gov.uk/docs/local/pre1999/nr_9901_ managers_guide_benchmarking.pdf Better benchmarking for high performance (CIPFA, 2010) http://www.cipfa.org/Policy-and-Guidance/Publications/B/BetterBenchmarking-for-High-Performance
Note: 1. Members of the ABC Benchmarking Partnership work together to improve services by sharing and comparing data, processes and solutions to common problems.
6 7
http://www.audit-scotland.gov.uk/docs/local/pre1999/nr_9901_managers_guide_benchmarking.pdf Using cost information to improve service performance: are you getting it right?, Accounts Commission, May 2012.
Part 6. Using performance information effectively 27
ensuring councillors and senior officers support benchmarking activities organising the process of benchmarking defining the measures for comparison having clear objectives focusing on important issues identifying partners such as those with similar issues understanding why performance varies implementing change. 76. Overall, councils do not use benchmarking as much as they could. Some councils use benchmarking for specific services but it is not used consistently. Our report on Maintaining Scotlands roads for example, identified that councils have developed around 80 local performance indicators but that they are not used consistently across councils.8 This means that councils might not compare their costs and performance with other councils. The vast majority of indicators are about promptness of response. Only seven councils reported using indicators relating to customer service such as satisfaction levels or the number of third-party liability claims they received. As part of the road asset management project, the Society of Chief Officers of Transportation in Scotland (SCOTS) has developed performance indicators for road maintenance that all Scottish councils can use. This consistency allows councils to use benchmarking.
How does it work in practice?

A council has a single live, active corporate improvement plan that includes all its improvement activity and actions required at any point in time. The corporate improvement plan clearly details the action required and its intended outcome, the officer responsible for the action and timescales. All improvement activity is reported and monitored through committees and all committees are responsible for ensuring all activities make their way into the corporate improvement plan. The corporate management team and audit and scrutiny committee have joint responsibility for considering and monitoring improvement actions.

We found limited evidence that progress against the Best Value improvement plan and corporate improvement plan is being regularly monitored.
Revising activity in response to information improves performance 77. The revise stage of the performance management cycle (Exhibit 2) identifies how councils might respond to what performance information is telling them. This might include: revising plans and measures where circumstances may have changed so that plans are no longer achievable, objectives have changed or where measures are under or over ambitious or no longer relevant realigning resources where a council may need to make changes to its workforce, assets or financial resources to achieve its objectives
changing performance information a council may need to change the quality of the performance information collected if this is not providing a basis for effective decision-making and scrutiny. 78. Audit work tells us that an integrated corporate improvement plan makes it easier for councils to prioritise improvements and manage improvement activity. Councils may in turn need to amend corporate, divisional, business, team and individual plans to reflect improvement priorities.
Maintaining Scotlands roads: a follow-up report, Accounts Commission/Auditor General for Scotland, February 2011.
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Part 7. Developing self-evaluation and improvement activity
Having considered the need for improvement, councils then need to consider the most appropriate way to respond.
Part 7. Developing self-evaluation and improvement activity 29
Performance management information should clearly identify where improvement is needed. There is a wide range of improvement tools techniques available and councils need to select the most effective way to review and improve services. Selfevaluation and review must be robust and honest to be effective. Performance management supports continuous improvement 79. Continuous improvement requires councils to consider whether they are providing services in the most efficient and effective way on an ongoing basis. Effective performance management arrangements should clearly identify where improvement is needed. 80. Having identified the need for improvement, councils then need to consider the most appropriate way to respond. Self-evaluation and review is key to improving performance 81. Self-evaluation is a process which uses evidence, challenge and critical reflection to improve performance. To continuously improve councils should consider: how services are performing what impact services are having how effectively corporate processes support service delivery. 82. Councils need to know themselves and what they can realistically achieve. Self-assessment activity can provide an organisation with a structured approach to improvement. It should also provide assurance: for the council that it is improving
for auditors and inspectors that the council is critically evaluating its services. 83. Where there is evidence that selfevaluation is working well, auditors and other scrutiny partners can reduce their audit and scrutiny activity. 84. There is a wide range of review and improvement tools and methodologies available to councils. They include: Public Sector Improvement Framework (PSIF) European Framework for Quality Management (EFQM Excellence model) reviews at strategic, service and operational levels. 85. Appendix 2 summarises some of these and other methodologies. We do not favour any particular methodology over another. The most important thing is that councils choose tools that are effective and deliver improvement.
86. The characteristics of an effective improvement methodology are that it is: focused and proportionate so that the council looks at the right things, and strikes the right balance to ensure that the time it spends reviewing things leads to tangible results structured, rigorous and challenging transparent, honest and realistic flexible the review should be a learning process; positive experiences should be shared across the organisation and negative experiences should not be replicated elsewhere in the council. 87. During 2012, we surveyed councils to gauge the level and range of self-evaluation activity. Overall, this showed a commitment to self-evaluation. But it also showed inconsistencies in coverage and in the quality of how it was being used across services, outcome areas and corporate systems.

The corporate self-assessment was completed in May 2010, and helped the council identify a number of areas for improvement. These actions are being taken forward in the Corporate Improvement Plan, and include an organisational development framework, a number of leadership development programmes, and further improvements in internal communications. A programme of PSIF reviews is also being rolled out across service areas. The service has undertaken self-assessment exercises but these have not been used effectively to provide internal challenge and prompt improvement. A cyclical programme of Best Value reviews has been undertaken covering all service areas. The reviews have contributed to improvements, however there is little prioritisation of the areas that are subject to review.
for the public that services are being provided efficiently
30
What does good self-evaluation look like?

The council has a self-evaluation and improvement plan. This comprises: a regular strategic level self-assessment a cycle of service level reviews an annual review of corporate governance arrangements a cycle for service level self-evaluation using an established model a programme of business reviews targeting areas for efficiencies cross-cutting service reviews led by the Governance and Scrutiny Committee. The council ask suitably experienced officers from across the organisation and internal audit to perform the reviews. A peer from another council acts as a critical friend throughout the reviews providing an independent perspective and judgements. The output from each self-improvement activity is a clear, detailed improvement plan identifying actions, responsibilities and timescales. It feeds into the councils single corporate improvement plan. Progress is scrutinised and monitored by both the CMT and the Governance and Scrutiny Committee. The council has a track record of delivering improvements effectively.
Audit work can help with continuous improvement 88. Both internal and external audit can support continuous improvement. Audit provides an independent and objective check on systems, processes and performance. 89. Internal audit teams are responsible for evaluating the effectiveness of a councils internal control systems. These are the systems that help an organisation to use its resources, economically, efficiently and effectively. 90. The CIPFA publication Measuring up: An introduction to theories and concepts of performance management in the public services9 states that Internal audit has a key role in relation to an organisations performance management systems. It is in a unique position to provide an organisation with assurances about the overall integrity of the performance management systems: that they have been appropriately designed and are balanced, that they reflect both internal and external requirements, and that the data can be used with a measure of confidence. 91. CIPFAs Technical Information Service (Exhibit 8) covers the internal audits responsibility for providing assurance on performance information and supporting systems. 92. Most councils have audit and scrutiny committees. These committees typically are charged with considering internal and external audit reports and checking that the councils governance arrangements are sound. In some cases, they are also responsible for: holding administration councillors and officers to account for managing performance
Want to know more?

Assess yourself: using self assessment for performance improvement (Accounts Commission, May 1998) http://www.audit-scotland.gov.uk/about/ac/
Measuring up: An introduction to theories and concepts of performance management in the public services, CIPFA, 1998.
Part 7. Developing self-evaluation and improvement activity 31
Exhibit 8
Extract from CIPFAs Technical Information Service It is the responsibility of management to ensure it has an effective performance management system but this can be independently validated by the internal audit service and may be subject to scrutiny by external agencies. This should enable managers across the council to use the information with confidence and manage more effectively. The aim of internal audit in this context is to provide independent assurance on the performance information and the supporting systems. The main audit objectives are: to review the extent that the performance management system and its accompanying targets and measures adequately supports and promotes the achievement of corporate objectives to establish to what extent the council has sound systems and controls to support performance management and to validate performance outputs to examine how far those systems and controls operate satisfactorily in practice and link with effective management information systems to monitor performance to examine the extent to which performance information is reliable, accurate and timely to identify appropriate ways of improving performance information systems and recommend actions where improvements are shown to be necessary, practicable and cost effective.
Source: CIPFA Technical Information Service Internal Audit
identifying areas of need or issues of concern directing service, cross-cutting or policy reviews directing and occasionally being directly involved in reviewing the performance review activity coordinating and managing the programme of scrutiny. 93. An effective audit committee can therefore provide a valuable independent check of the councils financial and nonfinancial performance and support improvement.
94. Councils are subject also to external audit and inspection and this provides a useful source of information to help them improve. Councils should have processes in place so that the relevant councillors and officers consider findings and recommendations. It is important that councils consider how the findings from external scrutiny can best be incorporated within its existing improvement plans. 95. Some councils, however, can rely too much on audits and inspections for assurance or to cover specific areas of corporate activity. This leads them to exclude audit and inspection focus areas when considering their own improvement activity. External scrutiny is not a substitute for rigorous self-evaluation.
32
Part 8. Partnership working
Managing performance in a partnership is complex.
Part 8. Partnership working 33
The principles of effectively managing performance also apply to partnership working. Partners need to have a shared understanding of priorities and the impact their work is having. 96. Managing performance in a partnership is complex. The organisations in any partnership are likely to have different decision-making and accountability arrangements, organisational cultures and planning and performance systems. 97. All of this makes it all the more important that partnerships have good performance management arrangements in place as this helps to ensure partners have a shared understanding of the priorities and the impact that the partnership work is having. 98. Our audit work shows that: the performance management and reporting processes of
partnerships are not well developed there is a clear need to improve the way they report performance to the public. 99. Performance management systems for community planning need to cope with the demands of reporting on SOAs and the complexities of partnership working (Exhibit 9). 100. In November 2011, we published a report on economic development in Community Planning Partnerships (CPPs).10 The report found that, in more complex partnerships, CPPs differ in how they manage performance. Some CPPs acknowledge that they are not achieving some outcomes as planned, but take little further action. Sometimes this is because they feel lack of progress is outwith the CPPs control. In other CPPs, board members may work behind the scenes to find out why outcomes are
not being achieved and may agree informal actions to deal with this. 101. Some CPPs adopt a more collective and transparent approach to managing performance. They work together to understand why they are not achieving outcomes and to identify what different partners can do to deal with the problem. Building a culture of mutual respect and trust to enable partners to constructively challenge each other when outcomes are not being achieved is vital.

The partnership is unable to effectively demonstrate progress against partnership outcomes due to partnership arrangements still developing and limitations with the partnerships performance management arrangements.
Exhibit 9
Good governance principle for partnership working
Key principles
Features of partnerships when things are going well
Features of partnerships when things are not going well
Performance measurement and management Clearly defined outcomes for partnership activity Partners agree what success looks like and indicators for measuring progress Partners implement a system for managing and reporting on their performance Understand the needs of their local communities and prioritise these Have a clear picture of what success looks like and can articulate this Have clearly defined outcomes, objectives, targets and milestones that they own collectively Have a system in place to monitor, report to stakeholders and improve their performance Demonstrate that the actions they carry out produce the intended outcomes and objectives Prioritise their own objectives over those of the partnership Unable to identify what success looks like Fail to deliver on their partnership commitments Do not have agreed indicators for measuring each partners contribution and overall performance or do not use monitoring information to improve performance Unable to demonstrate what difference they are making
10
The role of community planning partnerships in economic development, Accounts Commission/Auditor General for Scotland, November 2011.
34
102. Our recent report on community health partnerships (CHPs) also emphasised how over-complicated performance reporting arrangements are for CHPs.11 They are burdensome on CHPs as they need to take account of different national and local planning and performance monitoring systems and targets which have been developing over time. This means there is a risk that the different requirements may overlap and are not always aligned.

We noted that arrangements to extend the councils performance and risk management processes to the Community Planning Partnership (CPP) are now embedded. The councils partners have access to the pyramid system and are able to populate and comment upon data in the scorecards. The council has extended the improvement model and performance management system to its community planning partners ensuring consistency of approach to performance improvement. Performance management remains underdeveloped and needs to improve to enable partners to effectively monitor progress against identified outcomes.
11
Review of Community Health Partnerships, Accounts Commission/Auditor General for Scotland, June 2011.
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Part 9. Key points for action
An effective council will have the key characteristics for managing performance and improvement.
36
The characteristics of a council with effective performance management and improvement An effective council will: have a developed culture where leaders demonstrate good management of performance and communicate regularly on performance and improvement issues have a corporate framework for performance management and continuous improvement be clear on its priorities and have plans that meet the golden thread test use a wide range of measures to effectively manage performance use benchmarking to compare and monitor improvement against other councils encourage scrutiny and challenge from councillors use overview and scrutiny panels to challenge performance actively respond to areas requiring improvement use self-evaluation and reviews to demonstrate continuous improvement use internal audit service to assure performance management systems and measures work constructively with partners to manage performance and improvement. An effective council will ensure that: all staff understand their role in managing performance and use it in their day-to-day work councillors understand their role in all aspects of performance management and improvement councillors are provided with clearly presented and quality information to enable them to make decisions both internal and public reports are of good quality and are tailored appropriately for their use the principles of performance management apply equally to working with partners.
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Appendix 1.
A tool for checking progress
Questions for councillors Performance management culture 1. Do I have a good understanding of performance across the council? 2. Does a key aspect of my role involve scrutinising performance information and challenging officers? 3. Do I need training to help me understand performance management? Performance management framework 4. Am I involved in establishing what communities need, allowing me to establish priorities? Performance measures 5. Does the information I receive cover: service performance? customer satisfaction? trend data? benchmarking data? targets? outcomes? Performance information 6. Is the performance information I receive concise, accurate, balanced and presented in an easily understandable format? 7. Do officers provide me with performance information which is clear and concise and allows me to judge how well we are doing? 8. Does the information I receive tell me: if we are meeting our targets? why variances occurred? what the implications are of not meeting the target? if resources are adequate? what impact it will have on people who use services, local people and partner agencies? if there is an impact on equalities, sustainability or efficiency? what impact this might have on corporate priorities? Yes/No Action
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Questions for councillors 9. Does the information presented by officers tell me: what performance is predicted over the short and longer term? what action needs to be taken to see improved performance (this could include additional resources, more training)? where there is under-performance when will it be back on track and whether additional resources are required to achieve this? 10. Does the information I receive allow me to challenge over and underperformance and question whether we are achieving value for money? 11. Do I regularly challenge officers on the performance information presented to me? 12. Does performance information provided by officers allow me to monitor progress on priorities and plans? 13. Do I require any training or support to help me challenge officers on performance? Self-evaluation and improvement 14. Am I aware of the self-evaluation and review processes in the council? 15. Do I scrutinise the results of reviews and suggest appropriate action? 16. Do I receive regular updates on progress against the improvement plan? Partnership working 17. Do I work constructively with partners to improve performance?
Yes/No
Action
Appendix 1. A tool for checking progress 39
Questions for officers Performance management culture 1. Do I regularly discuss performance and improvement at meetings? 2. Do I communicate and discuss our performance with my team? 3. Do all staff understand their role in managing performance? 4. Am I managing performance in day-to day activities and do I share practice with others? Performance management framework 5. Am I clear on our approach to managing performance? 6. Is it the approach based on a clearly structured framework? 7. Do we have a clear link in plans from corporate plans to personal work plans? Performance measures 8. Do we have a comprehensive hierarchy of performance measures which provides councillors with the information they need to judge performance? 9. Am I involved in benchmarking across our service, and do I compare performance with our peers? Performance information 10. Does information provide a clear picture of performance? 11. Am I clear on where we need to improve? 12. Am I regularly challenged by councillors on performance issues? 13. Do I use the internal audit service to provide assurance on our performance management systems? 14. Do we present clear performance information to the public on our performance? 15. Are our plans and resources revised in response to areas of concern? 16. Do I regularly monitor action plans from improvement activity?
Yes/No
Action
40
Questions for officers Self-evaluation and improvement 17. Do we have a framework for self-evaluation and improvement activity? 18. Is our corporate improvement activity well coordinated? Partnership working 19. Do we have a performance framework in place for partnership working?
Yes/No
Action
41
Appendix 2.
Tools to aid performance management and improvement
Tool Balanced scorecard What is it? A strategic planning and management system. It provides a method of: ensuring business activities are in line with the organisations vision and strategy of the organisation improving internal and external communications monitoring organisation performance against strategic goals. Business process re-engineering This is about analysing and designing workflows and processes within an organisation. A business process is a set of logically related tasks performed to achieve a defined business outcome. This is used as a basis for self-assessment, an exercise in which a service assesses itself against nine criteria. This helps to identify current strengths and areas for improvement against strategic goals. The model takes an all-over view to enable organisations to: assess where they are understand their strengths and potential gaps in performance. Investors in People Specialises in transforming business performance through people. A framework of best practice thats outcome focused: it outlines what you need to achieve but never prescribes how, making it truly flexible. It is the internationally recognised standard for Quality Management Systems (QMS). It is a framework and a set of principles that ensure a common-sense approach to managing business activities to consistently achieve customer satisfaction. It is a focused short-term project to improve a process. It includes training followed by analysis, design and implementation. Aims to eliminate waste in processes at all levels, from identified need to service delivery. It involves constantly reviewing processes to ensure they are constantly and consistently delivering value to customers. A self-assessment framework that encourages organisations to comprehensively review their own activities and results. It provides various improvement tools so that organisations can look at how continuous improvement is working across the whole organisation. Six months to three years from committing to achieving it. Improvements anticipated in 6-12 months from the start of the project, although can be sooner for individual processes. Approximately 35 staff days over six weeks. Estimate of time to implement Four to six months to implement depending on level of measurement in place.
EFQM excellence model
ISO9001 quality management system
Implementation to assessment takes approximately six to nine months.
Kaizen Blitz
Usually two to three months from conception to bedding in a new process. Three to 36 months to fully implement.
Lean review
Public Service Improvement Framework
Approximately two to four months.
Managing performance: are you getting it right?

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Audit Scotland, 110 George Street, Edinburgh EH2 4LH T: 0845 146 1010 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk
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This publication is printed on 100% recycled, uncoated paper
THE SCRUTINY COMMITTEE - 12 DECEMBER 2012 NATIONAL FRAUD INITIATIVE 2012/13 DIRECTOR OF CORPORATE SERVICES 363-2012
PURPOSE OF REPORT To inform Elected Members of the Council's participation in the National Fraud Initiative 2012/13.
2.0
RECOMMENDATION Elected Members are asked to note:-
2.1 2.2 2.3 3.0 3.1 4.0 4.1
The Council's participation in the above exercise. Value of fraud and irregularities noted to date as a result of past participation in NFI exercises. The contents of "The National Fraud Initiative in Scotland". FINANCIAL IMPLICATIONS There are no financial implications. BACKGROUND The Council has participated in the National Fraud Initiative since 2004. Originally the exercise involved a small number of participants and a small number of databases being cross-matched using computer-assisted audit techniques. The exercise has grown substantially over the years. Local government, central government and the National Health Service now all contribute datasets for matching purposes to prevent and detect fraud. The number of systems involved such as payroll, creditors and benefits has also grown substantially and there are now over 80 matching reports for follow up in Dundee City's case. In June 2010 the Council's Audit and Risk Management Sub-Committee was advised that as a result of the exercises to 2008/09 over 500,000 of irregularities and fraud had been identified. Since then a further 104,000 has been identified as a result of the 2010/11 exercise with further work still to be completed and reported on in 2013.
4.2
4.3
4.4
4.5
RMK/LAB 27/11/2012 Reports/NFI 2012-13 363-2012
2 4.6 As well as identifying frauds and irregularities, participation in the National Fraud Initiative also provides the Council with valuable assurance as to the integrity and robustness of its financial systems. POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Strategic Environmental Assessment, Anti-Poverty, Equality Impact Assessment and Risk Management. There are no major issues. CONCLUSION Significant irregularities and frauds have been identified as a result of participation in the National Fraud Initiative and the Council has gained assurance as to the integrity and robustness of many of its key financial systems. CONSULTATION The Chief Executive and the Head of Democratic and Legal Services have been consulted on the contents of this report. BACKGROUND PAPERS Report 324-2010 National Fraud Initiative 2008-09.
5.0 5.1
5.2 6.0 6.1
7.0 7.1
8.0
27 NOVEMBER 2012
RMK/LAB 27/11/2012 Reports/NFI 2012-13 363-2012
The National Fraud Initiative in Scotland
Prepared by Audit Scotland May 2012
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, efcient and effective use of public funds.
The National Fraud Initiative in Scotland 1
Contents
Summary Page 2 Key messages Page 3 Part 1. Impact and outcomes Page 5 Key messages Outcomes Page 6 Benefit outcomes Page 7 Pension outcomes Page 9 Blue badges outcomes Other matches Page 10 What bodies actually save or recover because of the NFI Page 11 What does the level of outcomes tell us? Page 12 Part 2. Helping to improve, holding to account Page 13 Key messages Overall findings Areas that need improvement Page 14 Part 3. Future of the National Fraud Initiative Page 16 Key messages Page 17 Appendix 1. Governance arrangements Page 18 Appendix 2. Self-appraisal checklist Page 20
Summary
Key facts 19.8
million
Alleged frauds reported to the Procurator Fiscal Service Outcomes from NFI 2010/111
145
78
million
Cumulative NFI outcomes for Scotland
Overpayments being recovered
1,681
0.6
million
Largest reported individual fraud
Bodies managed their NFI roles well
85
per cent
Public bodies that took part in the NFI
81
For national reporting purposes outcomes are collated as at 31 March 2012. Outcomes recorded by participants after this date are included in subsequent reports. Outcomes figures referred to cover detected fraud, overpayments and recoveries and includes those already delivered as well as ones that have been estimated where this is appropriate.
The NFI is an important regular check on the robustness of public sector arrangements for identifying and taking action to stop, reduce and recover fraud and error.
Summary 3
Key messages Audit Scotland, working closely with public bodies, external auditors and the Audit Commission, has completed another major counter-fraud exercise. The National Fraud Initiative (NFI) exercises make a significant contribution to the security of public sector finances by confirming that services are provided to the correct people and by eliminating fraud and error. Eighty-one bodies took part being the largest and most diverse group since the NFI began. 1. Public bodies spend billions of pounds of taxpayers money on the Scottish population providing services and financial assistance to those that need them the most. These systems are complex and errors can happen. Unfortunately, there are also some individuals who seek to exploit the systems and fraudulently obtain services and benefits to which they are not entitled. 2. The recent Annual Fraud Indicator published by the National Fraud Authority has put the loss to the UK economy from fraud at 73 billion.2 Of this total some 6.3 billion3 has been attributed to fraud within central government, the NHS, local government, and the benefits and tax credits systems. 3. Audit Scotland has coordinated another major counter-fraud exercise working together with a range of Scottish public bodies, external auditors and the Audit Commission to identify fraud and error. These exercises, known as the National Fraud Initiative in Scotland (NFI), are undertaken every two years as part of the statutory audits of the participating bodies. The latest exercise (NFI 2010/11) started in October 2010 and is now nearing completion.
2 3
4. The success of the NFI comes primarily from the public servants who: investigate the NFI data matches identify and stop frauds and errors recover overpayments hold fraudsters accountable improve their systems. 5. The role of external auditors in the NFI is vital. They review and conclude on the effectiveness of local arrangements in terms of how well the NFI is integrated into counter-
fraud polices. They also provide assurance on the progress being made on NFI investigations. Auditor conclusions provide the evidence for Part 2 of this report. 6. Exhibit 1 summarises the relationships and responsibilities within the NFI in Scotland. 7. The NFI in Scotland is now well established and has been operating for over a decade since it was first piloted. The NFI enables public bodies to take advantage of computer data matching techniques to detect fraud and error. The NFI remains the largest national fraud detection and prevention
Exhibit 1
Relationships and responsibilities within the NFI in Scotland
Audit Scotland enables the NFI process and prepares the national report
Data matches
Local government
Central government
NHS
Assurances provided
Fraud and error detected or deterred
External auditors review and provide opinions on arrangements
Annual Fraud Indicator, National Fraud Authority, March 2012. Ibid.
scheme that can provide data matches within and between public bodies. Its key features are that it: acts as a deterrent to potential fraudsters identifies errors and fraud enabling appropriate action to recover money and/or press criminal charges can provide assurances, similar to a regular health check, that all is well and can also identify where improvements are required represents value for money in terms of the efficiencies deliverable through centralised data processing and identifying targeted high-priority matches. 8. In NFI 2010/11, 81 bodies took part from local government, health and central government sectors. This number represents the largest and most diverse set of participating bodies since the NFI started. Audit Scotland also includes data about its own employees and those of audit
firms carrying out external audit work for the Auditor General for Scotland and the Accounts Commission. 9. The NFI works by using data matching to compare a range of information held on bodies systems to identify potential inconsistencies or circumstances that could indicate fraud or error which are called matches. Where matches are identified these are made available to bodies to investigate via a secure web application. Bodies investigate these and record appropriate outcomes based on their investigations. 10. Exhibit 2 provides some examples of the types of data set matches undertaken. 11. In addition to the main NFI matching exercise, a separate exercise has been undertaken to match electoral registers against those households where council tax single person discounts are being claimed. The matches took place in October 2011 and the results were provided to councils in February 2012 to investigate. Across the UK, Angus
and Perth and Kinross Councils were the only ones that decided not to participate due to their interpretation of data protection and electoral legislation. The NFI is one of the ways which councils can address fraud and error in this area. A number of councils also employ credit reference agencies to match single person details against a wider range of data sets such as credit and utility records. 12. Audit Scotland carries out the NFI process under powers in the Criminal Justice and Licensing (Scotland) Act 2010. It is important for all concerned that this exercise is properly controlled and data handled in accordance with the law. The governance arrangements for the NFI are summarised in Appendix 1. 13. The NFI is important in the context of the current economic climate and fiscal projections for future public sector expenditure. NFI exercises make a significant contribution to the security of public sector finances by ensuring that services and benefits are provided only to the correct people and by identifying and eliminating fraud and error.
Exhibit 2
Examples of the types of data set matches undertaken Type of data match Housing benet claimants to Employees and public sector occupational pensions Employees to Employees Public sector pensions to Deceased persons records Blue badges to Deceased persons records Employees to Failed asylum seekers or expired visas
Potential fraud or error Employees or occupational pensioners may claim benet without declaring their income or by under-declaring the amounts. An employee may be on long-term sick leave while working at another body. A pensioners death may not have been reported to the pension authority. The pension continues to be paid to a bank account or may be collected by a relative. The permit holders death may not have been reported to the council. The permit may continue to be used fraudulently or be sold for improper use. It is unlawful for any body to employ persons who are not entitled to reside or work in the UK.
Part 1. Impact and outcomes
Cumulative NFI outcomes are now at 78 million for Scotland and represent a signicant return to Scotlands public nances.
Key messages Outcomes from NFI 2010/11 are 19.8 million. 14.1 million have been identified directly from NFI 2010/11 investigations. 5.7 million are further savings from NFI 2008/09. 3.1 million overpayments are being recovered. Cumulative NFI outcomes are now at 78 million for Scotland and represent a significant return to Scotlands public finances. Across the UK, 939 million NFI outcomes have now been recorded. Outcomes 14. All outcomes start from when a match is made between two sets of data. However, a match does not automatically mean that there is a fraud and investigations are required to enable the correct conclusion to be drawn for each match. 15. The data supplied by participating bodies for NFI 2010/11 returned 287,559 matches. Of these, 33,846 were identified as recommended matches, being matches with a higher risk of fraud or error. It is up to individual bodies to determine which matches and the number of matches to investigate. 16. Since we last reported on the NFI in May 2010, outcomes valued at 19.8 million have been recorded. Cumulative outcomes from the NFI in Scotland are now at 78 million and represent a significant return to the public finances of Scotland.
Exhibit 3
Detail of key outcome areas recorded by bodies as at 31 March 2012
4% 11% 36% Pension overpayments 7m 2008/09 further outcomes 5.7m Housing and other benefits 4m Travel 2.2m 20% Other 0.9m
29%
Source: Audit Commission NFI secure web application
17. The 2010/11 outcomes are split: 14.1 million of NFI 2010/11 matches. 5.7 million of outcomes from further follow-up work on NFI 2008/09 matches. 18. Exhibit 3 provides more detail of key outcome areas recorded by bodies as at 31 March 2012. 19. Investigations from NFI 2010/11 are ongoing. The evidence from previous exercises is that between reports significant outcomes continue to be delivered. The last two NFI reports showed that: 30 per cent of 2008/09 outcomes arose after NFI March 2010 45 per cent of 2006/07 outcomes arose after NFI March 2008 . 20. If this pattern is continued, we could expect to see further outcomes in the region of 4 to 6 million from NFI 2010/11. Further, the electoral register to council tax single person discounts matches were only released in February 2012. The
2008/09 exercise, which included 16 councils whereas 30 are taking part in the 2010/11 exercise, resulted in 4,322 discounts being cancelled at a value of 1.4 million. 21. Importantly, once overpayments have been identified recovery action can be taken. As at 31 March 2012, there was recovery action being taken in 82 per cent of cases which had an overpayment. 22. The NFI is more than the value of the financial outcomes recorded. Exhibit 4 sets out the main results from the 2010/11 matches. 23. What cannot be measured directly is the value of the deterrent effect that the planned biennial NFI data matching has on potential fraudsters. Its significance should not be overlooked and is a key benefit to the Scottish public and taxpayers. 24. No obvious national trend can be assumed from the results of the last four NFI exercises because of changes in the scope of the exercise and in the approach by bodies to tackling fraud and error.
Part 1. Impact and outcomes 7
25. The most successful matches in terms of financial outcomes accounting for 94 per cent of the total, are: pensioners, 50 per cent housing benefits, 28 per cent transport, 16 per cent. 26. It is worth noting that one of the more unusual matches the NFI undertakes housing benefits to personal alcohol licences has led to one of the largest potential multiple frauds that the NFI has ever detected in Scotland (see Case study 1). 27. This investigation illustrates clearly that where a fraud has been perpetrated by a person this can lead to the identification of further frauds and crimes. Determination and commitment are required on the part of the investigators to deliver successful outcomes such as in this case. Benefit outcomes 28. The NFI provides councils with the opportunity to identify a wide range of benefit frauds and errors. The most common are caused by undeclared occupational pensions and undeclared earnings from public sector employment. 29. Where other benefits such as income support and Jobseekers Allowance are also in payment, councils liaise with the Department for Work and Pensions and joint investigations may be carried out. The amounts in this report include these other benefits, where relevant.
Exhibit 4
Main results from the 2010/11 matches
4,403 10
employees dismissed or resigned blue badges stopped or flagged for future checks
2,731
concessionary travel fares stopped
16
invalid student UK visas identified
1,528
Outcomes
housing benefit payments stopped or reduced
45
cases to be prosecuted
318
housing benefit frauds stopped
89
creditor errors identified
184
occupational pensions stopped
Case study 1
As a result of NFI data received an investigation was undertaken in respect of the benefit claimant. The investigation established that the claimant: was a personal licence holder and named premises manager, on the premises licence, in respect of a local public house was claiming incapacity benefit on the basis of being unfit for work had a spouse who was also a personal licence holder and had used the claimants address on licence applications and had previously claimed housing benefits. This was potentially fraudulent as they failed to declare both their relationship to their landlord and that they had paid the deposit and legal fees for the property while also running another public house. As a result of the investigation, the claimant and spouse were reported to the Procurator Fiscal Service with six potential benefit frauds totalling 50,804. Following legal advice a further charge relating to the potential fraudulent use of the premises licence was also reported to the Procurator Fiscal Service estimated at 536,995. Charges have also been instigated regarding any proceeds of crime.
Source: Local authority
30. Exhibit 5 summarises the benefit outcomes from all NFI exercises to date. 31. This would indicate that there has been a decline in benefits outcomes in the last exercise. The possible reasons are: previous NFI exercises have likely detected the most significant and longest-running frauds and errors the trend may demonstrate the exercises impact in deterring fraud. the efforts of bodies to continuously improve their systems. 32. However, 2.7 million of the 2008/09 figure were recorded after the last NFI report in May 2010. If this trend is repeated then we would expect to see benefits outcomes at similar levels to the last exercise. 33. The continuing high levels of benefits outcomes, despite expected reductions, are best explained by the increased number of bodies participating in the NFI 2010/11 and the impact of the economic recession resulting in increased numbers of benefits claims. 34. By the end of March 2012, councils had identified benefits overpayments from their NFI 2010/11 matches relating to (2008/09 figures are in brackets): 997 (1,042) public sector pensioners 322 (331) local government employees 100 (74) persons working in the NHS in Scotland. 35. While no overpayments are desirable, Exhibit 6 puts these figures in the context of the populations involved and it does provide some overall assurance that these areas do not have high levels of fraud and error.
36. In terms of value, East Dunbartonshire and South Lanarkshire Councils have so far achieved the highest levels of outcomes from their NFI 2010/11 benefits investigations (709,000 and 682,000 respectively). A further eight councils recorded benefits outcomes in excess of 100,000. Only Shetland Islands
Council and Comhairle nan Eileen Siar recorded no benefits outcomes. 37. Another measure of success is the yield in terms of benefits outcomes to total housing benefit expenditure. Exhibit 7 provides details of the top three councils in terms of yield ranking.
Exhibit 5
Housing and other benefits outcomes
8 7 6 million 5 4 3 2 1 0 2004/05 2006/07 Year
6.7 5.8 5.4 4
2008/09
2010/11
Exhibit 6
NFI benefits outcomes compared to source populations Sector Public sector pensioners Local government employees NHS employees Number 300,000 283,491 154,424 Overpayments identied 997 322 100
Source: Audit Commission NFI secure web application, Scottish Government and Scottish Public Pensions Agency
Exhibit 7
Housing benefit yield by outcomes Council East Dunbartonshire Council South Lanarkshire Council Falkirk Council Total expenditure 21,376,508 109,638,063 46,725,600 2010/11 outcomes 708,895 682,418 209,730
Source: DWP and Audit Commission NFI secure web application
Pension outcomes
38. Care must be taken when analysing these yield rankings as there are a number of factors that can influence movement. These factors are discussed later in this section. Generally councils need to consider whether finding significant outcomes indicate effective detection of fraud and error, or whether improvements to controls within systems could be made to reduce errors. Pension outcomes 39. The NFI provides pensions administering councils and the Scottish Public Pensions Agency (SPPA) with an efficient and effective means of checking that payments are only being made to living persons. NFI 2010/11 helped these bodies identify 184 pensioners whose deaths had not been reported to them. Including other pension-related outcomes (for example, cases where early retirees have returned to work but not reported circumstances that require their pension to be reduced) and forward savings, the amounts for NFI 2010/11 total 7.1 million. 40. As in previous NFI exercises the majority of the outcomes in local government are in the: Strathclyde Pension Fund (SPF), administered by Glasgow City Council, which has a membership of 195,000 with outcomes of 1.5 million. SPF administers about 42 per cent of all the local government pensions in Scotland Lothian Pension Fund, administered by City of Edinburgh Council, which has 66,000 members with outcomes of 0.8 million. 41. The SPPA recorded outcomes of 4.4 million from its 2010/11 matches where 95 outcomes were identified. In 85 of these cases recovery is in progress. Exhibit 8 summarises pension outcomes since the NFI started.
Exhibit 8
Pension outcomes
8 7 6 5 4 3 2 1 0 2004/05 2006/07 Year
5.3 4.4
2.3 0.6
2008/09
2010/11
Case study 2
The NFI matched housing benefit claim details against council payroll details. Following investigations of this match it transpired that a housing benefit claimant had failed to declare the fact that they had a partner living with them who was also working. Further investigations revealed that in fact both partners were employed by the council. The overpayment value was 8,886 and the case was prosecuted by the procurator fiscal. After pleading guilty the claimant was sentenced to eight months imprisonment and has resigned.
Case study 3
A man was sentenced to six months in jail in February 2012 for failing to disclose that he had received a lump sum payment from a pension fund totalling 27,000. Total overpayment of housing and council tax benefits and income support, obtained between October 2009 and March 2010, was 15,000. This fraud was discovered following an investigation of an NFI match.
42. The SPPA continues to work closely with the General Registers Office for Scotland4 following a successful exercise between the NFI 2006/07 and 2008/09. This significantly reduced the number of unknown deceased pensioners that remained to be detected from their NFI 2008/09 matches.
43. While the absence of notification of the death of a member still accounts for the majority of overpayments in the 2010/11 exercise, there has been an increase in the number that were due to members returning to work but not informing the SPPA that they had done so. The 2010/11 savings also capture legacy matches for reemployed
On 1 April 2011, the General Registers Office for Scotland merged with the National Archives of Scotland to become the National Records of Scotland.
10
teachers that had not been included in previous NFI exercises. NFI was the catalyst, on the back of the experience of a previous exercise, for what has become a very successful relationship with General Registers Office for Scotland. SPPA reports that, with a view to further improving controls, they hope to engage with a data cleansing and mortality screening company, to improve processes further.
External auditor SPPA
Good practice 1
Perth and Kinross Council In the 2008/09 exercise, over 1,000 badges were cancelled following NFI investigations. Only 242 were cancelled in the 2010/11 exercise. The council has now put in a process whereby the registration of a death in their area results in an immediate check into whether the deceased had a blue badge. If the registration check shows that a blue badge had been issued to the deceased then the system is updated and the blue badge is cancelled. This demonstrates a good example of a positive outcome that can arise from NFI investigations but that do not result in large financial outcomes. By reviewing the reasons for outcomes and taking action to strengthen systems, this council has taken steps to ensure that blue badge parking is available only to eligible people in its area.
Source: Perth and Kinross Council
Blue badges outcomes 44. The blue badge scheme allows individuals with mobility problems, and who may have difficulty using public transport, to park free at on-street parking meters and payand-display machines. Holders are also allowed to park in designated blue badge spaces and may also be permitted to park on single or double yellow lines in certain circumstances. 45. Badges are sometimes used or renewed improperly by people after the death of the badge holder. The use of a blue badge by an unauthorised person is an offence. Importantly, by using a blue badge to park without need the space is denied to people with real mobility issues. This is the true social cost of this type of fraud. 46. Councils do not always attempt to recover a badge relating to a deceased person to avoid causing distress but, by flagging the relevant records, they can at least ensure that badges are not improperly renewed in the future. By sharing information with other departments councils can also recover valuable equipment and aids if they have not been informed of a persons death. 47. Scottish councils have reported correcting 4,403 blue badge records where NFI helped them to identify that
the holder was deceased. Edinburgh and West Lothian Councils collectively corrected over 1,800 records. 48. The Audit Commission first identified the problem of blue badge fraud in a report published in September 2009 and also in their subsequent annual Protecting the Public Purse reports. They identified how criminals forge blue badges or steal genuine ones from cars, and how a blue badge can be sold on the black market for as much as 500. 49. On 1 January 2012, the new Blue Badge Improvement Scheme (BBIS) procured by the Department of Transport as part of the Blue Badge Reform Programme was made available to local authorities. The BBIS, which is being phased in over the next three years, is designed to help to prevent fraud and enable more effective monitoring of cancelled, lost or stolen badges. 50. These new arrangements are welcomed and the NFI will continue to undertake the deceased data matching to assist in identifying potential abuse of the badge scheme.
Other matches Payroll 51. The NFI matches data to identify cases of potential payroll fraud. But investigations can also lead, for example, to the discovery that employees are in breach of conditions of service or EU working time limits. Apart from other consequences, excessive working hours may pose public safety risks. 52. The NFI also matches payroll data to UK Border Agency information about failed asylum seekers and expired and granted visas where there is no entitlement to work in the UK. It is unlawful to employ anyone who is not entitled to reside or work in the UK and NFI provides bodies with a means of supplementing their recruitment checks. 53. As a result of NFI 2010/11 matches, ten public sector employees in Scotland have so far been dismissed or resigned after bodies confirmed that they did not have permission to reside or work in the UK.
54. A key data match is between authorities to ensure that staff are not being paid twice or are continued to be paid after they have left one organisation. Case study 5 represents, by value, one of the most significant payroll irregularities since we made these matches available in 2004/05. Student matches 55. Information about full-time students was initially used by the NFI to help councils check for invalid awards of housing benefit. Except in limited circumstances, full-time students are not entitled to housing benefit. Over the last three exercises, NFI matches have helped councils identify hundreds of cases where housing benefit was being paid improperly to students. 56. Since NFI 2006/07, the Student Awards Agency for Scotland (SAAS) has been provided with its own matches, identifying cases where students may be failed asylum seekers or may not hold valid permissions to reside or study in the UK. 57. The SAAS has recorded 16 cases of students that were found, after investigating NFI matches with the UK Border Agency, not to be entitled to receive support. This was because either these individuals were not entitled be in the UK or they had lied about their personal circumstances. These students had received student support amounting to 180,113. Payments to private residential care homes 58. The NFI matches information about private residential care home payments to data about deceased persons. This can identify where payments may be continuing for people who have died. 59. The NFI helped councils identify 39 cases from these data matches and overpayments worth 29,206. All of these overpayments are being recovered.
Case study 4
Investigations into an NFI match between payroll and expired UK visas identified that an employee had no right to work in the UK but was still being paid. This was confirmed with the UK Border Agency. The employee was dismissed and an overpayment of 1,847.29 identified for recovery.
Case study 5 update

We reported in the NFI 2008/09 report about a significant match involving a salaried professional who had been paid by two councils at the same time after they had left one council to work in another for over two years. The total net cost to the council which the employee left has since calculated to be 99,907. A substantial portion of the overpayment has now been repaid. Importantly, revised procedures have put in place in the council to prevent this from happening again.
Case study 6
An NFI match between student loans and UK visas identified that 28,531 of financial support was obtained by a student after they had provided counterfeit documentation. The UK Border Agency is also pursuing this person.
Source: Student Awards Agency for Scotland
What bodies actually save or recover because of the NFI 60. The estimated value of the NFI to the public purse since we last reported in May 2010 is 19.8 million. However, some of this represents overpayments that will never be recovered and estimated values that have been attached, for example, to cancelling a blue badge. These amounts may not translate into cash savings, but they are valuable outcomes nonetheless. 61. During 2009, we canvassed bodies and established from those that responded that NFI overpayments are usually subject to the same recovery processes that apply to other debt. Most bodies do
not keep separate records of NFI recoveries. Indeed, Audit Scotland would prefer that bodies devoted their resources to investigation work, rather than require them to record NFI amounts that are often recovered by frequent small payments over long periods of time. 62. Historically, the average level of housing benefit overpayment recoveries in Scottish councils is around 31 per cent. Assuming, very conservatively, that this is typical of all NFI recoveries, and if we add the estimated forward savings from areas such as benefits and pensions, we can reasonably estimate that the actual cash savings or recoveries for the public purse are at least half of the total outcomes of 19.8 million.
12
What does the level of outcomes tell us? 63. The NFI impacts on a number of levels and across a number of bodies. These levels can be summarised as shown in Exhibit 9. 64. A key benefit of the NFI is the fact that by identifying fraud and error the opportunity is provided to bodies to establish why they occurred and then improve their systems. This can be done by: simplifying system processes reviewing and strengthening the internal controls that failed to stop or capture errors or fraud. 65. While it would be difficult to eliminate all errors and prevent all frauds the NFI can provide the focus for such reviews to take place. Exhibit 10 summarises the circumstances where fraud and error are most likely to be found. 66. System complexity can result in errors made by either the individual wishing to obtain a service or by the public servant processing the data. Where an individual knowingly exploits systems and controls by providing incorrect information then this is fraud. Both fraud and error can be reduced by public bodies establishing sound systems of internal controls. 67. Audit Scotland does not take a view on whether high levels of NFI outcomes are a good result or not. High levels of outcomes could be due to increased fraud and error in the system or to poor internal controls in operation. 68. An important feature of the NFI is the deterrent effect created by the NFI exercise taking place and the communication of this to those whose data is included.
Exhibit 9
The NFI impacts on a number of levels and across a number of bodies
Generate savings and outcomes Identify weaknesses and lead to improvements Act as a deterrent (prevention) Provide assurances Enable recovery action Deliver penalties
Exhibit 10
Circumstances that increase the risk of error and fraud
System complexity
Weak internal controls
Increased risk of errors and fraud
69. Equally important is the assurance given to those bodies with few matches that in the areas covered by the NFI there does not appear to be significant problems. This work can provide assurances to the Accountable Officers about the effectiveness of their control arrangements, and therefore strengthen the evidence for the Annual Governance Statements.
13
Part 2. Helping to improve, holding to account
External auditors concluded that 85 per cent of participating bodies managed their roles in the NFI 2010/11 exercise satisfactorily.
14
Key messages 85 per cent of participating bodies managed their roles in the NFI 2010/11 exercise satisfactorily. 31 per cent of bodies need to follow up their matches more promptly. A third of bodies need to integrate the NFI into their corporate policies and strategies for preventing and detecting fraud and error. Five bodies were considered not to have deployed sufficient resources on managing the NFI. Eight bodies did not use the NFI self-appraisal checklist. Overall findings 70. External auditors concluded that the 85 per cent of participating bodies had managed their role in the NFI 2010/11 exercise satisfactorily. However, a few showed scope for significant improvement. Appendix 2 includes a checklist that we encourage all bodies to use to self-appraise their involvement in the NFI prior to NFI 2012/13. 71. Auditors also provided up-to-date information about each bodys NFI performance and progress at the end of February 2012. In reaching their conclusions, auditors do not attach significant weight to the value of NFI outcomes achieved by bodies (Exhibit 11). 72. While 85 per cent is slightly down on the 2008/09 exercise ratings, it continues to indicate a high degree of commitment to the NFI. Local auditors are providing strong assurance that all sectors are taking the NFI seriously by putting adequate arrangements in place. Central government bodies have slightly
Exhibit 11
External auditor review of NFI arrangements
100 90 80 70 Percentage 60 50 40 30 20 10 0 Satisfactory Adequate Year
Source: External auditors
Local government NHS Central government
Not satisfactory
better arrangements in comparison with NHS and local government sectors. 73. Local government has the largest number of matches across the range of data sets. It is not entirely unexpected, therefore, that they have been identified as having more scope to improve. 74. Almost all of the officers directly involved in preparing for the NFI and following up matches demonstrate commitment, while 90 per cent of the officers nominated to coordinate the exercise were considered suitable for the role. 75. Other key aspects of auditor reviews: 91 per cent of bodies submitted their data on time. 88 per cent of bodies gave priority to following up recommended matches. Five bodies were considered not to have deployed sufficient or appropriate resources on managing the NFI exercise.
Areas that need improvement 76. Exhibit 12 summarises the key areas where local auditors indicated that there was room for improvement. 77. While a number of bodies could improve aspects of their approach to the NFI, Comhairle nan Eilean Siar is the only body where auditors rated their NFI arrangements as not satisfactory overall and that require improvement as a matter of priority. Disappointingly this is the same rating auditors gave the council two years ago. 78. We are pleased to report that auditors have identified improvements by the following bodies to NFI arrangements since the 2008/09 report: Argyll and Bute Council East Renfrewshire Council Moray Council Orkney Council Shetland Island Council Stirling Council.
Part 2. Helping to improve, holding to account 15
79. Auditors confirmed that appropriate arrangements had been made for issuing fair processing notices to those individuals whose data is submitted for the exercise. 80. Auditors reported that nine per cent of bodies submitted data for NFI 2010/11 after the specified processing deadline. This creates a need for another processing run at a future date, and thereby increases unnecessarily the cost of processing data. These bodies fell several months behind the other participants while waiting for their matches, as well as causing other bodies to receive further matches. 81. Twenty-one per cent of bodies did not record their outcomes fully on the NFI secure web application. Many could also improve the way they record their investigations and conclusions on the NFI application. Audit Scotland will work with colleagues in the Audit Commission to improve the clarity of recording requirements. However, the likely effect is that the value of the outcomes referred to in this report is understated in some areas.
Exhibit 12
Areas of concern Percentage of bodies needing to improve 41
Areas of concern There is no internal audit monitoring of NFI approach and outcomes to ensure identied weaknesses are addressed Fraud and error polices and strategy did not integrate NFI arrangements Bodies are slow to follow up matches Reporting NFI progress and outcomes to senior management and board/members is limited Self-appraisal checklist was not used to improve arrangements
Source: External auditors
33 31 15 10
16
Part 3. Future of the National Fraud Initiative
The NFI 2012/13 exercise is due to commence in June 2012.
Part 3. Future of the National Fraud Initiative 17
Key messages The NFI will continue and is seen as a key tool in the prevention of fraud and error in the public sector. The NFI 2012/13 exercise is due to commence in June 2012. The next exercise will look to expand the range of bodies and data sets. The NFI is developing real-time data matching aimed at fraud prevention. 82. The Scottish Government (SG) has recently updated its counter-fraud strategy5 including its zero tolerance approach to fraud. This strategy has five strategic objectives: Awareness: SG will prevent fraud by raising awareness of fraud and its safeguards among public organisations in Scotland, our partner organisations in the private and voluntary sectors and our stakeholders. Prevention: SG will prevent fraud through improving our systems and controls to support our business and public services. Teamwork: SG will prevent fraud by removing silos and working together across organisations and the public sector to share information and develop combined approaches to countering fraud. Investigation: SG will handle fraud by being proactive in analysing data to identify areas at risk of fraud, by being effective and professional in our investigations of specific cases and by maintaining a robust whistleblowing procedure.
Enforcement: SG will handle fraud by continuing to be tough on fraudsters by punishing them more efficiently and effectively. 83. The NFI has a clear contribution to make in assisting the Scottish Government deliver these objectives. This strategy identifies data matching as a key component in delivering these aims and also recognises the efficiencies that can be delivered. 84. There are ongoing discussions about which organisation is best placed to enable the NFI to be most effectively delivered once the Audit Commission is wound up. There is every indication from government that it will continue and be expanded in the future. 85. The overall aims of the NFI are to serve the public interest by: safeguarding public money against losses from fraud or misappropriation contributing effectively to the fight against fraud. 86. To meet these aims the NFI 2012/13, which will be launched in June 2012, will involve work under three broad themes: Continuing with successful batch data matches and developing the service to offer more flexibility and meet new risks. Putting more emphasis on fraud prevention through the development of real-time datamatching services. Extending data matching for fraud purposes to a broader range of organisations and sectors.
87. Audit Scotland looks forward to the next NFI exercise and continuing to work with the Audit Commission and participating bodies to successfully deliver these aims.
Scottish Public Finance Manual, Annex 1- Fraud, Scottish Government, April 2012.
18
Appendix 1.
Governance arrangements
Background The following summarises the key legislation and controls governing NFI data matching. Legislation The NFI 2010/11 exercise was carried out under new powers given to Audit Scotland for data matching included in the Criminal Justice and Licensing (Scotland) Act 2010 passed by the Scottish Parliament. Under the new legislation: Audit Scotland may carry out data matching exercises for the purpose of assisting in the prevention and detection of fraud or other crime and in the apprehension and prosecution of offenders (referred to hereafter as the permitted purposes) Audit Scotland may require specified persons to provide data for data matching exercises. These include all the bodies to which the Auditor General for Scotland (AGS) or the Accounts Commission appoints auditors, licensing boards, and officers, office holders and members of these bodies or boards other persons or bodies may participate in Audit Scotlands data matching exercises on a voluntary basis. Where they do so, the statute states that there is no breach of confidentiality and generally removes other restrictions in providing the data to Audit Scotland the requirements of the Data Protection Act 1998 continue to apply Audit Scotland may disclose the results of data matching exercises where this assists the purpose of the matching, including disclosure to bodies that have provided the data and to the auditors appointed by the Auditor General for Scotland and the Accounts Commission Audit Scotland may disclose both data provided for data matching and the results of data matching to the AGS, the Accounts Commission, the Audit Commission, or any of the other UK public sector audit agencies specified in Section 26D of the Public Finance and Accountability (Scotland) Act 2000, for the purposes described above wrongful disclosure of data obtained for the purposes of data matching by any person is a criminal offence Audit Scotland must prepare and publish a Code of Practice with respect to data matching exercises. All bodies conducting or participating in its data matching exercises, including Audit Scotland itself, must have regard to this Code Audit Scotland may report publicly on its data matching activities. Code of Data Matching Practice The Criminal Justice and Licensing (Scotland) Act 2010 Act includes important data protection safeguards such as a requirement for Audit Scotland to prepare a Code of Data Matching Practice, and to consult with the UK Information Commissioner and others before publication. Our Code was updated in November 2010 to reflect the new legislation and to ensure that NFI exercises continue to comply with data protection requirements and best practice in notifying individuals about the use of their information for NFI purposes. The code can be found on the Audit Scotland website. Training Audit Scotland provided guidance and held NFI training events for Scottish participating bodies and their auditors, in conjunction with colleagues in the Audit Commission. NFI web application Bodies access the application via the internet using password access and encryption controls similar to internet banking. The secure website is the safest method of providing the data matches to bodies. The Audit Commission regularly reviews the application and implements developments to improve its functionality, ease of use, and security.
Appendix 1. Governance arrangements 19
Security review and accreditation In 2009, the whole of the Audit Commissions NFI system was subjected to a stringent security review. This covered infrastructure, information storage, handling and processing when under the control of the Audit Commissions data processing contractor and the NFI team. The review was undertaken by a CLAS consultant from Hewlett Packard who confirmed compliance with government information standards. This accreditation involved demonstrating to key government departments that the NFI is suitably secured and that information risks are managed to government standards. The National Computing Centre also undertook independent penetration testing of the NFI systems and concluded that the NFI was well implemented and robust from a security perspective. As well as regular internal reviews by the Audit Commission, the other UK audit agencies (ie, Audit Scotland, the Wales Audit Office, the Northern Ireland Audit Office and the National Audit Office) now also share a programme of independent audits of the different aspects of NFI data security. The Information Commissioners Office has also conducted an NFI data security audit at the invitation of the Audit Commission. All of these measures provide current and future NFI participants with assurances that data is processed according to rigorous government security standards.
20
Appendix 2.
Self-appraisal checklist
Yes/no/ partly Leadership and commitment 1. Are we committed to the NFI? Has the council/board, audit committee and senior management expressed support for the exercise and has this been communicated to relevant staff? 2.. Do ofcers directly involved in preparing for the NFI and following up matches demonstrate commitment? 3. Where NFI outcomes have been low in the past, do we recognise that this may not be the case the next time, that the NFI can deter fraud and that there is value in the assurances that we can take from low outcomes? 4. Is our NFI key contact (KC) the appropriate ofcer for that role and do they oversee the exercise properly? 5. Do KCs have the time to devote to the exercise and sufcient authority to seek action across the organisation? 6. Is the NFI an integral part of our corporate policies and strategies for preventing and detecting fraud and error? Planning 7. Do we plan properly for NFI exercises, both before submitting data and prior to matches becoming available? 8. Do we conrm promptly (using the on-line facility on the secure website) that we have met the fair processing notice requirements? 9. Do we plan properly to provide all NFI data on time using the secure data le upload facility? 10. Do we adequately consider the submission of any risk-based datasets in conjunction with our auditors? Effective follow-up of matches 11. Do all departments involved in the NFI follow-up of matches promptly after they become available? 12. Do we give priority to following up recommended matches, high-quality matches, those that become quickly out of date and those that could cause reputational damage if a fraud is not stopped quickly? 13. Do we recognise that the NFI is no longer predominantly about preventing and detecting benet fraud? Have we recognised the wider scope of the NFI and are we ensuring that all types of matches are followed up? Is action required? Who by and when?
Appendix 2. Self-appraisal checklist 21
Yes/no/ partly 14. Are we investigating the circumstances of matches adequately before reaching a no issue outcome, in particular? 15. In health bodies are we drawing appropriately on the help and expertise available from NHS Scotland Counter-fraud Services? 16. Do all departments follow up their NFI matches on a reasonable timescale? 17. Are we taking appropriate action in cases where fraud is alleged (whether disciplinary action, penalties/cautions or reporting to the Procurator Fiscal)? 18. Do we avoid deploying excessive resources on match reports where early work (eg, on recommended matches) has not found any fraud or error? 19. Where the number of recommended matches is very low, are we adequately considering the related all matches report before we cease our follow-up work? 20. Overall, are we deploying appropriate resources on managing the NFI exercise? Recording and reporting 21. Are we recording outcomes properly in the secure website and keeping it up to date? 22. Do staff use the online training modules in the secure website and do they consult the NFI team if they are unsure about how to record outcomes? 23. If, out of preference, we record some or all outcomes outside the secure website have we made arrangements to inform the NFI team about these outcomes? 24. Do we review how frauds and errors arose and use this information to improve our controls? 25. Does internal audit, or equivalent, monitor approach to the NFI and our main outcomes, ensuring that any weaknesses are addressed in relevant cases? 26. Are NFI progress and outcomes reported regularly to senior management and elected/board members (eg, the audit committee or equivalent)? 27. Do we publish internally and externally the achievements of our fraud investigators (eg, successful prosecutions)?
Is action required?
Who by and when?
The National Fraud Initiative in Scotland

If you require this publication in an alternative format and/or language, please contact us to discuss your needs. You can also download this document in PDF, black and white PDF or RTF at: www.audit-scotland.gov.uk
Audit Scotland, 110 George Street, Edinburgh EH2 4LH T: 0845 146 1010 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk
ISBN 978 1 907916 62 5
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REPORT TO: REPORT ON: REPORT BY: REPORT NO: 1 1.1
THE SCRUTINY COMMITTEE - 12 DECEMBER 2012 CORPORATE PERFORMANCE SELF-ASSESSMENT 2012/2013 REPORT FOR SIX MONTHS TO 30 SEPTEMBER 2012 DIRECTOR OF CORPORATE SERVICES 451-2012
PURPOSE OF REPORT The purpose of this report is to advise Elected Members of the performance of Dundee City Council for the six months to 30 September 2012, as defined by the Key Quarterly Performance Indicators. RECOMMENDATION Elected Members note that performance levels for the first six months to 30 September 2012 have generally been maintained or improved. All Chief Officers should review the contents of Appendix 1 as it relates to their service and consider if there are any indicators for which performance can be improved over the remainder of the 2012/2013 financial year. Chief Officers should also review their Service Plans and consider if there are any further performance indicators which could usefully be reported to the Scrutiny Committee on a quarterly basis. FINANCIAL IMPLICATIONS All initiatives to improve performance must be kept within existing budgets. BACKGROUND The Council has now been monitoring performance on a quarterly basis for four years during which time it has became clear that the very process of monitoring performance more frequently than the traditional annually has helped improve performance and in some cases significantly. The Council has recently published its new Council Plan 20122017. Existing quarterly performance indicators have now been re-aligned with the plan under its main performance headings of Dundee Outcomes and Corporate Outcomes for ease of reference. It should be noted that not all performance indicators in the Council Plan can be reported on a quarterly basis and that the indicators in this report are grouped on a best fit basis. PERFORMANCE OVERVIEW The key performance indicators to be measured on a quarterly basis are listed in Appendix 1. Performance for each of these has been colour coded with green reflecting a performance improvement of >5% and amber denoting performance of +/-5%. Red denotes performance deterioration of >5% which is supported by comprehensive Position Statements for more detailed consideration. In Appendix 1, 96% of the performance indicators either showed performance being maintained or improved. This is consistent with previous reported figures. Only 2 of the indicators suggested a significant deterioration in performance. Twenty of the indicators demonstrated significant improvement on the same period for the previous comparative period.
2 2.1 2.2
2.3
3 3.1 4 4.1
4.2
5 5.1
5.2
RMK/AL 71-2012
6 6.1 6.1.1 6.2 6.2.1
DUNDEE OUTCOMES DO2 Our people will be better educated and skilled within a city renowned for learning, research, innovation and culture. The Council is currently collecting 2 indicators on a quarterly basis in this category for which 100% have improved performance compared to the previous period. DO3 Our children will be safe, healthy, achieving, nurtured, active, respected, responsible and included. The Council is currently collecting 3 indicators on a quarterly basis in this category. Four of the indicators have either maintained or improved performance compared to the previous period with the last indicator being a new indicator. Performance is therefore, 100%. DO5 People in Dundee will have improved physical and mental well-being. The Council is currently collecting 2 indicators on a quarterly basis in this category for which 100% have either maintained performance compared to the previous period. DO7 Our communities will be safe and feel safe. The Council is currently collecting 4 indicators on a quarterly basis in this category. Two of these indicators are new with performance of the remaining two being maintained compared to the previous period. DO8 Dundee will be a fair and socially inclusive city. The Council is currently collecting 5 indicators on a quarterly basis in this category for which 100% have either maintained or improved performance compared to the previous period. DO9 Our people will live in strong, popular and attractive communities. The Council is currently collecting 9 indicators on a quarterly basis in this category for which 89% have either maintained or improved performance compared to the previous period. Noise complaints was the only area in which performance decline. DO10 Our communities will have high quality and accessible local services and facilities. The Council is currently collecting 6 indicators on a quarterly basis in this category for which 83% have either maintained or improved performance compared to the previous period. Library borrowers was the only area in which performance declined. DO11 Our people will live in a low carbon, sustainable city. The Council is currently collecting 2 indicators on a quarterly basis in this category for which 100% have improved performance compared to the previous period.
6.3 6.3.1
6.4 6.4.1
6.5 6.5.1
6.6 6.6.1
6.7 6.7.1
6.8 6.8.1
RMK/AL 71-2012
3 7 7.1 7.1.1 CORPORATE OUTCOMES CO1 Our customers will get the services they need in an efficient and customer focused manner. The Council is currently collecting 17 indicators on a quarterly basis in this category for which 100% have either maintained or improved performance compared to the previous period. CO2 Our organisation values and respects its employees so involves all equally in improving our services. The Council is currently collecting 3 indicators on a quarterly basis in this category for which 100% have either maintained or improved performance compared to the previous period. POLICY IMPLICATIONS This report has been screened for any policy implications in respect of Sustainability, Environmental Assessment, Anti-Poverty, Equality Impact Assessment and Risk Management. There are no major issues. 9 9.1 10 10.1 CONSULTATION The Chief Executive and Head of Democratic and Legal Services have been consulted on the content of this report. BACKGROUND PAPERS Audit Scotland Performance Guidelines 2011/12 and 2012/13.
7.2 7.2.1
8 8.1
30 NOVEMBER 2012
RMK/AL 71-2012
Statutory Return/Self-Assessment 2012/2013 Corporate Performance - Dundee Outcomes 2011/12 2011/12 2012/13 compared to 6 months 6 months previous year to 30/09/11 to 30/09/12 Estimated Position 2012/13
Appendix 1 Page 1
Outcome DO2 - Our people will be better educated and skilled within a city renowned for learning, research innovation and culture Cultural Services Visits to museums per 1,000 population Visits to museums per 1,000 population in person Outcome DO3 Our children will be safe, healthy achieving,nurtured, active, respected, responsible and included Childrens Services % of looked after children placed with approved L.A. carers % of children given a supervision order seen within < 15 days % of CP referrals responded to within 24 hours
2010/11
Comment
Very good improvement of 5.5% 2710 2207 2038 1877 1152 1072 1215 Very good improvement of 7.2% 1149
Performance maintained 73.8 87.5 96.9 N/A N/A 68.8 88.9 97.1 N/A N/A 68.6 92.45 100.0 17.0 N/A 67.4 Excellent improvement at a high level 98.36 Performance maintained 95.2 Excellent improvement 62.7 This is a new indicator 43.6
% of initial CP case conferences taking

place within 15 working days of decision % of young people receiving aftercare in education, training or employment Outcome DO5 People in Dundee will have improved physical and mental well-being Leisure Services Number of attendances per 1000 population for all pools Number of attendances per 1000 population for indoor facilities
Performance maintained 3895 6406 3698 6564 2001 2916 2057 Performance maintained 2911
Page 2 2011/12 2011/12 2012/13 compared to 6 months 6 months previous year to 30/09/11 to 30/09/12 Estimated Position 2012/13
Outcome
2010/11
Comment
DO7 Our communities will be safe and feel safe Adult Social Work % Criminal Justice Social Work reports submitted by due date % Community Payback Orders seen within one day Average hours to complete a Community Payback Order - Level 1 Average hours to complete a Community Payback Order - Level 2 Outcome DO8 Dundee will be a fair and socially inclusive city Homelessness Number of homeless applications made during the period Average length of homeless stay in hostels (days) Average length of homeless stay in Furnished Dwellings (days) Average length of homeless stay in Bed and reakfast (days) % lets to statutory homeless households Performance maintained 1915 68 161 6 49 1614 45 130 5 52 791 51 138 4 52 798 Excellent improvement of 39% 31 Excellent improvement of 10% 124 Excellent improvement of 100% 0 Good improvement of 5.7% 49 Performance maintained 99.0 N/A N/A 5.4 98.9 93.6 N/A 5.3 99.3 94.1 N/A N/A 99.2 Performance maintained 91.1 This is a new indicator 5.1 6.5 Data prior to 2012/13 was based on CSO's and so is not 100% comparable for the 6 months
Outcome
2010/11
Comment
DO9 Our people will live in strong, popular and attractive communities. Protective Services Average time between noise complaint and attendance -hrs Average time between complaint and attendance - Part V ASBA 2004 - mins % of consumer complaints processed within 14 days % of business advice requests dealt with within 14 days % of food alerts receiving a response within 48 hours % of communicable disease notifications receiving a response < 2 working days % of pest control responses made < 5 working days Housing Average time to let Council Houses Non Low Demand Average time to let Council Houses Low Demand Outcome DO10 Our communities will have high quality and accessible local services and facilities Visitors to Council libraries Number of activities promoting reading Number of library visits per 1,000 of the population Borrowers as a percentage of the resident population Visits to Community Centres per 1,000 population Attendances at learning provision Performance maintained 1,387,270 3,536 9675 17.0 2725 148 Outcome DO11 Our people will live in a low carbon, sustainable city. Waste Management Number of complaints per 1,000 households % of household waste recycled by the authority Excellent improvement of 15.8% 19.3 N/A 10.4 30.4 11.0 32.1 9.26 Improvement of 5.9% 34.0 1,398,375 4150 9691 16.8 2966 149 720,565 1,837 4993 12.9 1474 87 694,175 Excellent improvement of 17% 2,152 Performance maintained 4769 Deterioration of 6.2% 12.2 Performance maintained 1442 Performance maintained 86 PS2 Excellent improvement of 20% 8.98 15.6 76.9 98.0 100 100 99 8.8 18 78.4 96.5 100 100 98 9.6 15.9 80.0 96.4 100 100 98 7.73 17.1 81.0 Performance maintained 93.5 Performance maintained 100 Performance maintained 100 Performance maintained 100 Deterioration of 7.5% but still well below the 20 minute target Performance maintained maintained PS1
Excellent improvement of 26% 99.88 109.6 61 71 69 83 51 Excellent improvement of 37% 52
Outcome CO1 Our customers will get the services they need in an efficient and customer focused manner Development Services % of householder planning applications dealt with within 2 months % of all planning applications dealt with within 2 months Benefits Administration Average number of days taken to process new claims % of cases for which the calculation of benefit due was correct % of benefit claims determined within 14 days Housing % of house sales completed within 26 weeks Roads & Lighting % of traffic light repairs within 48 hours % of street light repairs within 7 days Average number of visits made to the Council website % of CT income in the year collected in the year % of NDR income due collected in the year % of invoices paid within 30 days % of Dundee suppliers paid within 14 days Housing Rent arrears as a percentage of the net rent debit Finance Revenue projected outturn compared to annual budget Capital projected outturn compared to annual budget. % of creditors paid electronically
2010/11
Comment
Good improvement of 5.7% 86.5 69.9 85.36 65.63 86.0 67.0 90.9 Excellent improvement of 13.3% 75.9
Excellent improvement of 14.8% 31.7 82.3 85.6 20.0 84.9 94.0 21.6 84.8 92.8 18.4 Performance improved by 4% 88.2 97.3 Performance improved by 4.85% - just below threshold
Performance maintained 93.9 96.2 92.3 92.6
Performance maintained 99.80 92.5 4240 91.3 95.4 93 80 99.6 94.31 5269 93.3 95.8 93 81 98.5 95.4 5324 54.3 46.4 91 79 98.0 Performance maintained maintained 96.0 Performance maintained 5211 Performance maintained 54.5 Excellent improvement of 16.8% 54.2 Performance maintained 94 Good improvement 83
Performance maintained 9.6 10.0 8.8 9.0 Within tolerance levels 0.10 -4.50 94.0 -0.10 -4.00 93.6 0.00 -4.30 95.0 0.20 Within tolerance levels -0.10 Performance maintained 94.0
Outcome
2010/11
Comment
CO2 Our organisation values and respects its employees so involves all equally in improving our services Corporate Management Days sickness absence for local government employees Days sickness absence for teachers Accidents to employees of the Council Key performance improved by > 5% performance deteriorated by > 5% performance maintained within the above tolerances N/A * DO CO no ranking as not a statutory indicator represents a benchmark other than Audit Scotland's represents Dundee Outcome represents Corporate Outcome
12.1 days 9.4 days 407
11.03 days 6.25 days 334
5.18 days 2.32 days 158
5.4 days 2.38 days Excellent improvement 97
PS1 DUNDEE CITY COUNCIL Statutory Performance Indicators Position Statement Department Performance Indicator Environment Average time between noise complaint and attendance on site for Part V ASBA 2004 complaints (minutes) Previous +1 Previous Current N/A 7.5% 1 This is a specified indicator which means performance can be quickly compared from authority to authority. For 2012 Dundee recorded a performance of 18 minutes which was joint top for all Councils - an excellent performance. Current performance is still very good and lower than the target of 20 minutes. Specified Figure is within the 20 minute target 15.9 17.1
Trend Deterioration rate Latest City Ranking Statistical Overview
Specified/Non-specified Commentary
Recovery Assessment
Performance not expected to be significantly different at year end.
Other Comment
PS2 DUNDEE CITY COUNCIL Statutory Performance Indicators Position Statement Department Performance Indicator Leisure & Culture Dundee Borrowers as % of resident population Previous +1 Trend Deterioration rate Latest City Ranking Statistical Overview 12.8 5.43% N/A This indicator is no longer collected by Audit Scotland. Ready comparisons with other local authorities are no longer available. Previous 12.9 Current 12.2
Specified/Non-specified Commentary
Non-spec. The above figure does not include users who only borrow e-books or eaudio books, which may have affected the deterioration rate slightly. L&CD Library & Information Services recently had a one month fines amnesty to encourage borrowers to bring back long overdue items without having to worry about charges, and over 1,000 borrowers took advantage of this. None of these users would have been counted as active borrowers, and it is hoped many of them will start to borrow items again. A membership drive is currently in development.
Recovery Assessment Performance should improve for the next quarter. Other Comment

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City Chambers DUNDEE DD1 3BY 4th December, 2012 Membership Councillor Kevin Keenan Councillor Richard McCready

(Report No 475-2012 enclosed).

PUBLIC SERVICE IMPROVEMENT FRAMEWORK (PSIF) ASSESSMENTS

(Report No 397-2012 enclosed). 4 INTERNAL AUDIT REPORTS

(Report No 488-2012) enclosed). 7 MANAGING PERFORMANCE: ARE YOU GETTING IT RIGHT?

(Report No 486-2012 enclosed). 8 NATIONAL FRAUD INITIATIVE 2012/2013

(Report No 363-2012 enclosed). 9 CORPORATE PERFORMANCE SELF-ASSESSMENT 2012/2013

(Report No 451-2012 enclosed).

REPORT BY: REPORT NO:

FINANCIAL IMPLICATIONS None.

The curriculum Improvement through self-evaluation 4.5

MICHAEL WOOD Director of Education

RECOMMENDATIONS It is recommended that:-

FINANCIAL IMPLICATIONS There are no financial implications as a result of this report.

Long term Improveme nt Status

Partners & Other Resources

Service Processes People Results Performance Results

Area for Improvement

10/11 28.55 93.67

11/12 32.32 98.54 84.9 94

Long term Improvement Status

12.4 31.7 15.4 94.4 92.93 97.3

6.9 20 8.5 94.3 93.3 97.4

95.65 44.28 12 71.85

95.76 46.29 23.32 65.66

CUSTOMER SATISFACTION KEY FACTORS ON SERVICE QUALITY

Long term Improvement Status

Key Performance Results

Theme Staff Consultation

Improvement Action Establish an annual departmental staff survey.

Establish a Revenues Communication/consultation Strategy.

Reward and Recognition

Create a quarterly Newsletter.

Implement a leadership training plan

David Dorward Chief Executive

REPORT TO: REPORT ON: REPORT BY: REPORT NO: 1.0

FINANCIAL IMPLICATIONS None

BACKGROUND PAPERS None

Sallie Dailly, Chief Internal Auditor

DATE: 03 December 2012

REPORT TO: REPORT ON: REPORT BY: REPORT NO: 1.0

FINANCIAL IMPLICATIONS None

BACKGROUND PAPERS None

Sallie Dailly, Chief Internal Auditor

DATE: 27 November 2012

Follow-up Review of Energy Management

Follow-up Review of School Placing Requests

Public Private Partnership Operational Phase

Greenmarket Car Park

Business Credit Cards

Finance Revenues Council Tax Refunds

Leisure and Communities

Cash Collection at Golf Courses

Dundee Contract Services Construction

Management of Portable Assets

Dundee Contract Services - Land Services

Management of Portable Assets

Attendance Management (Secondary Schools)

Management of School Transport

Contracting and Payments

Insurance Arrangements for School Transport

User Access to Payroll