KLOE 1.1

Does the organisation plan its finances effectively to deliver its strategic priorities and secure sound financial health?

Themes to cover:

Integrated Financial Planning

The authority undertakes a comprehensive integrated approach to financial planning. The corporate plan links to the community strategy, the LAA and the countywide community strategy which is currently being prepared. The priorities and cross cutting themes within the corporate plan are reflected in nine service delivery plans (SDP) covering the five priority areas (housing, green issues, bringing people together, place shaping and community safety) and four delivery plans covering support functions (resources, regulatory services, ICT services and customer services). Each SDP contains strong links to the corporate plan and objectives within that plan. (See example SDP document 1.1.1)

The performance and task sections in particular within each of the SDPs informs and is reflected in the detailed budget plans (both capital and revenue) with, for example, key tasks being linked to individual areas of spend where appropriate.

The SDPs also contribute to the overall budget planning process and checks are made to ensure that the budget and the SDPs reflect the appropriate common items such as capital and revenue growth bids. The SDPs also contain sections on risk and the key tasks are backed up by details of anticipated resources, both financial and employees.

A key aspect of the SDP preparation process is that they are prepared by relevant managers on the ground who are then responsible for owning the process. These same managers are more often than not also involved in the detailed individual directorate budget discussions that take place with the Finance Services Division. This year, to strengthen the process still further, working groups of relevant officers are being established for each SDP which will then meet to monitor progress against the SDPs at quarterly intervals and then report back on problems and significant variances through the Strategic Performance Management Group and onto the Overview and Scrutiny Committee (OSC) and cabinet if necessary.

Corporate property and HR feature within the Resources SDP and a separate SDP exists for ICT services. All of the SDPs are prepared as essential parts of the budget and integrated approach to financial planning and are presented to committee alongside the detailed estimates for capital, revenue and fees and charges. This comprehensive approach, with appropriate regard and referencing to physical assets, ICT and HR, ensures that not only are members given all of the relevant information together to help make a fully informed judgement but that due regard is taken of all of the resources available to the authority, not just financial.

SDPs together with budget proposals are presented first to the OSC, which conducts an in depth examination of the proposals (this year's budget took 5 hours to go through this stage). Recommendations are then made to cabinet which receives detailed strategic documents relevant to the budget covering capital and revenue resources, a capital strategy, prudential indicators, treasury management strategy, investment strategy and a medium term general fund financial strategy alongside reports proposing changes in council house rents and council tax. The whole bundle of reports (covering the OSC and cabinet) when presented together in this way demonstrate a level of detail and integration such that there is a consistency of approach and members can see the effects of a service or policy change in one area which is then reflected throughout the documents. (See budget proposals document 1.1.2)

The SDPs and budget proposals are prepared in consultation with the respective leading portfolio holders through the autumn such that by November each year, when the government announcements about grants, subsidies etc. are announced, the authority is in a position to talk in detail to the controlling group of members about the overall picture. A series of budget meetings take place with the members of the controlling groups at which regular update reports are prepared by the Deputy Chief Executive. The Deputy Chief Executive or Head of Finance Services attended most of these group meetings (at least for part of the meeting) to ensure that members received the correct advice and explanations of difficult and contentious items. (See joint group reports documents 1.1.3 & 1.1.4) The SDPs are finally considered in late January/early February prior to cabinet discussions on the budget in mid February and the Council budget meeting in the first week of March.

Whilst the medium term strategy is fully refreshed at the time of the budget each year, interim reviews during the course of the year are also made as appropriate. Similarly, monitoring of the capital and revenue budget position takes place on an ongoing basis and adjustments are made through cabinet reports at various stages throughout the year. All cabinet reports with monetary issues contain financial implications prepared by the Head of Finance Services or the Deputy Chief Executive which also include statements as to whether or not the issues under consideration are within the budget planning process or not. Such reports also indicate the changing effects over a period of years (part year or full year) for any new projects. (See cabinet report re job evaluation document 1.1.5)

In preparing the budget plans directorates are invited to submit capital and revenue growth schemes covering the next three years. Such submissions are made using a proforma document which asks about how the submission links to corporate priorities, legal and statutory requirements and detailed financial projections. The capital submissions in particular are then scored against a set of criteria with the scores used by leading members to help determine the final programme. (See example capital and revenue submission documents 1.1.6 & 1.1.7)

By taking this standard approach it allows members to consider how the schemes fit in with the Council's overall priorities such that resources can be channelled into the higher priority areas and can be judged against any expected improvements in performance.

In considering capital and revenue submissions and detailed budgets, these have all now been realigned to tie into the corporate priorities. The budget for 2009/10 has been particularly problematic because of the downturn in the economy and budget priorities have had to be carefully considered with budget and service reductions also being necessary. As far as possible the proposed budget reductions have aimed to improve back office efficiency by reducing employees in administratively based posts (e.g. clerical assistants, payroll clerk) and those in areas where a decrease in demand has occurred (e.g. building control). In addition the reduction in employees has been with a view to protecting as far as possible front facing services to the public.

Reductions in other than employees have been predominantly in discretionary service areas and have been drawn up to try and protect services as far as possible and certainly until the economy starts to pick up again. Some environmental services and leisure services have been particularly affected by the reductions but in all cases the reductions are aimed at cutting back at services to some degree rather than removing them entirely (e.g. verge maintenance, play days).

As an illustration of the transfer of funds, the Council has taken the decision to withdraw the availability of alternatives to the concessionary travel permit in 2009/10. Concessionary travel has to be available under the statutory free fare scheme but this authority provides an enhanced service through a countywide partnership offering discretionary enhancements for such as use of rail and the tram. The scheme, which is in accordance with a number of objectives around social inclusion, through the discretionary elements, and the environment, through less use of cars and more use of public transport, is immensely successful and demand has been steadily increasing but government funding has not kept pace with these increases. For many years the authority has offered as alternatives to the travel permit a concession towards a TV licence or travel tokens. The numbers taking up these options have been dwindling quite significantly as more and more eligible people move to the travel permit. Accordingly, and in order to help balance the increasing resources needed for the travel scheme, the TV allowance and travel tokens have been withdrawn as from 2009/10. All people taking up the alternative allowances in 2008/09 have been written to and over half have already transferred to the travel permit instead with very few adverse comments received.

The budget proposals for 2009/10 and the medium term term strategy are both based around a target of enabling the authority to have taken action to counteract the effects of the recession and make controlled cost reductions over a couple of years such that by 2011/12 the authority will be in a balanced budget position and not reliant on the use of reserves. It has never been the intention to get to this position in one year (2009/10) since the effects would be too dramatic and significant and the authority needed to take a more measured approach to reductions which may start to affect service levels more significantly. It is with this concept in mind that a cross party budget working group of members has been established to not only oversee the implementation of the planned reductions for 2009/10 but to also plan well ahead for further reductions to achieve the balanced position as outlined by 2011/12. (See document budget working group terms of reference1.1.8)

The authority does not necessarily try to maximise income from charges. Leisure centre charges, for example, are below most neighbouring private facilities quite deliberately in order to meet social inclusion objectives and still encourage healthy living and exercise. Concessions are offered to children, full-time students, elderly people and those with certain disabilities and a leisure card is available to borough residents offering discounted rates. Other schemes run in conjunction with the PCT around such as exercise referral also offer preferential rates.

Other examples of where charges are used (or not used) in accordance with the corporate priorities and objectives include:

All of the capital programme schemes are evaluated against corporate priorities and the programme is presented in line with those priorities. Revenue implications are fully reflected as part of the programme and are subsequently incorporated into the medium term strategy. Monitoring of progress against the whole programme takes place monthly through General Management Team with a more thorough appraisal of key schemes taking place quarterly or more frequently if needed. (See example documents 1.1.9 & 1.1.10) Monthly updates are also given to members through the members' bulletin. As an example of using capital to promote service improvements, the 2008/09 programme formed the basis for extending the glass recycling scheme in line with the government's targets and the Council's own green issues priority. The full year effects when the scheme would be up and running were programmed into the medium term strategy in March 2008.

Medium to long term financial planning

The Council's medium term financial strategy is updated as part of the budget process each year with other updates taking place on occasions throughout the year and being used mainly for internal purposes or group meetings. (See document medium term budget update report 1.1.11)

The strategy incorporates all significant known resource changes as well as the longer term revenue implications of the capital programme, the cost of any new capital financing and any known growth items/service changes. Items particularly taken into account in the March 2009 version of the strategy were:

Allowance was also made for potential pay awards (based upon 2.5% per annum) and rises in fees and charges. The strategy assumed demand as at March 2009 levels with no indication built in for any upturn in the economy. As such the strategy can arguably be presenting almost a worst case yet prudent scenario.

The medium term strategy formed a key part of the budget deliberations and was highlighted in a budget amendment from the conservative group. The picture as portrayed in the schedule 2 to the strategy showing a continuing shortfall between resources and spending plans was a major factor in setting up a cross party budget working group with the aim of removing this gap in funding by 2011/12.

Sensitivity within the model is covered in the accompanying report as is an assessment of the budget risks. Some areas with significant financial repercussions are specifically referred to in the strategic risk register namely; failure to obtain adequate resources to achieve service objectives, failure of financial management and/or budgetary control, failure to maximise collection of income due to the council, failure to meet government efficiency targets, implementation of supporting people requirements and high volumes or employee or client fraud.

The Council actively participates in a number of partnership arrangements with other authorities that produce cost efficiencies and more effective working. The more significant arrangements include: business rates, building control and ICT training with Ashfield DC (estates supervision also to be added shortly); choice based lettings, First Lets project and joint CRDP arrangements with Gedling and Rushcliffe councils; countywide partnership re concessionary travel; joint procurement initiatives around refuse vehicles, vans, ballot papers and postal voting packs, council tax leaflets and cash security collection. Other partnerships/joint working arrangements/joint procurement initiatives are being developed on a regular basis.

Engages with stakeholders

The Council is part of the countywide Citizen's Panel arrangements and is using the information to help guide services and service improvements. As an example, the downturn in satisfaction with leisure services has been highlighted as an area needing examination within the improvement plan.

The budget papers as presented to cabinet included a section on consultation and an informal public consultation has been carried out about one particular budget measure, namely the introduction of car parking charges, which has attracted over 1400 responses.

Equality impact assessments have been conducted for all of the major service areas and the results have been used to influence how services are being delivered. Equality and diversity training has also been given to all employees to aid service provision. A new Equality and Diversity Framework and associated policies are expected to be presented to cabinet in May 2009. The council regards itself as being at level 3 with regard to the equality standard and is awaiting an inspection to confirm this.

As part of the corporate planning process the council undertook a comprehensive consultation exercise with staff, the public and other stakeholders. The results helped shape the corporate plan and have subsequently fed through into objectives and action plans around those objectives. These in turn have been cross referenced within the service delivery plans used to form the basis of the budget process. (See corporate plan listening exercise document 1.1.12)

In some cases the public and outside stakeholders have a primary role in influencing spending plans. Community Action Teams cover the whole borough and feedback from the meetings can help to bring forward or change spending proposals. The capital neighbourhood pride schemes are selected from a list put forward by Community Action Teams and councillors. (See neighbourhood pride cabinet report document 1.1.13)

Managing spending

The Council has a good record of budgetary control and has consistently underspent against budgetary plans but within acceptable limits. As a key part of this process capital and revenue budget monitoring takes place through a variety of means:

Capital Monthly monitoring of whole programme to GMT (See example document 1.1.9)

Quarterly monitoring in depth of key capital schemes (See example document 1.1.10)

Monthly summary presented to members

Revenue Monthly monitoring by finance services in consultation with relevant directorates

Monthly salaries monitoring to GMT and Leader (See example monthly report and memo to Leader documents 1.1.14 & 1.1.15)

Capital/revenue Regular updates to cabinet of significant variations/need for budget revisions. (See example cabinet report 1.1.16)

The Council is regarded as low spending/good value for money and service satisfaction has not been sacrificed to achieve this. The Council repeatedly is regarded as one of the best (most satisfactory) in Nottinghamshire in citizens panel surveys. (See results of district tracker Feb 08 document 1.1.17)

Performance indicators are set around collection and recovery of the major income streams and performance is repeatedly above average with the level of rent arrears in particular being well regarded. Guidance exists for officers on the methods of recovery of debt based upon value, age and type of debt. Recovery processes are well established with timetables for reminders, final notices etc being set out at the start of the year and being adhered to. New methods of recovering debt are always being considered and the use of Rossendales (bailiffs) for small sundry debts that did not warrant court action was introduced relatively recently.

Despite the economic situation the signs are that council tax collection in 2008/09 is very close to the 2007/08 performance and rent arrears have remained at or just below March 2008 levels. Bad debt provisions in respect of council tax and housing benefit overpayments are based upon the age profile of outstanding debt.

Financial governance and leadership

Regular briefings are given to GMT and to heads of service about financial issues and budget problems. Strategic reports around budget planning are taken to GMT before they go forward for debate by members in order that a full appreciation of the situation occurs and members of GMT have the chance to input their thoughts into the process. (See example GMT reports 1.1.18 & 1.1.19)

Devolved budgets exist for many items but this excludes the following which are determined centrally by the finance services section: salaries, insurance, travel expenses, financing costs, leasing charges, business rates, admin recharges, investment income. Regular liaison takes place between the responsible accountant within finance services and the various relevant directorates.

Training has been offered to all members on financial management and training takes place on a regular if somewhat ad hoc basis with departmental staff as and when issues arise, new employees are set on or new system changes are brought in.

In finance services an appropriate mix of qualified accountants, qualified accounting technicians and part qualified accountants and technicians has been maintained commensurate with the demands of the service. In total, out of 16 employees in finance services, 4 are fully qualified accountants and a further 7 are part qualified accountants or qualified/part qualified technicians.

Reports from internal and external audit are regularly presented to the General Purposes and Audit Committee. External audit reports presented in the last year have covered use of resources, audit and inspection letter, annual governance report and the audit plan. Other reports covering data quality and less significant financial issues were dealt with by the strategic performance management group and the Deputy Chief Executive respectively.

KLOE 1.2

Does the organisation have a sound understanding of its costs and performance and achieve efficiencies in its activities

Themes to cover:

Understanding costs

The Council's commitment to achieving value for money remains as strong as it always has and the recent additional financial constraints have resulted in concerted efforts to find new, creative ways of making efficiencies and of challenging value for money.

In the audit and inspection letter for 2007/08, auditors report that 74% of our statutory PIs improved in 2007/08, placing us 12^th best Council in the country in our rate of improvement.

Strategically, the Council's executive recently approved a corporate wide restructure. As part of that restructure the Council looked at opportunities for financial savings, whilst retaining necessary capacity and aiming to realign responsibilities in line with corporate priorities and the wider partnership objectives of our own LSP and those of the county-wide LAA. Examples included:

Operationally, value for money is challenged through a number of methods. The Council retained a programme of best value reviews right up until 2008. They included comparisons of costs and service quality with similar `family' authorities. Best value principles of economy, efficiency and effectiveness are rooted in all we do and are incorporated in the Council's key activities and decisions. Our Medium Term Financial Strategy also ensures that limited resources are carefully managed. To ensure priorities can be met, every effort is made to maximise resources and make the best use of available resources by, for example:

Costs are thoroughly challenged during the budget setting process which is now fully integrated with service planning (1.2.1 and 1.1.1) All proposed new revenue and capital developments are assessed against a scoring matrix designed to ensure that new investment is consistent with the Council's priorities.

The Council maintains a regular budget monitoring regime which includes by exception monthly monitoring by the Finance Department (see 1.3.3), monthly reports to the General Management Team on salaries (see 1.1.4) and the capital programme (see 1.1.9), and updates to cabinet when significant budget variations are detected. More detailed monitoring of the higher priority category A capital schemes takes place at quarterly intervals by GMT to monitor progress, evaluate risks, etc. All capital bids include future years' costings, including revenue implications. Major decisions are based on a business case that considers the initial set up costs, the forecast annual cost and any anticipated savings. The procurement exercise itself generally includes qualitative as well as quantitative factors to reflect such as social and environmental concerns.

The Capital Strategy is prepared in accordance with the Council's 12 capital objectives (see1.2.2). The objectives are converted into priorities and spending plans which are in turn linked to sources / potential sources of funding and to the consultees to be engaged as part of the decision making processes. The methodology for the process of evaluating capital submissions against the stated objectives and capital investment priorities is attached (see 1.2.3).

The Capital Strategy, which forms part of an overall framework under the Corporate Plan 2008/12 and the Community Strategy 2006/12, needs to be considered in association with these and other strategies, such as the People Strategy 2007/11, the Information and Communications Technology (ICT) Strategy 2007/11, the Corporate Asset Management Plan 2009/12 and the Medium Term Financial Strategy 2009/12 as part of an integrated approach to the planning and delivery of services in line with the organisation's priorities.

The Council has good comparative information on costs and performance and routinely uses this to review and challenge whether it is achieving value for money. Our performance management framework allows for the efficient and effective monitoring of performance against national and local performance indicators. These are reported at varying frequencies to the General Management Team (see 1.2.4) and the Strategic Performance Management Group (1.2.5).

The recently formed Budget Working Group, which is a group of cross party members tasked with monitoring achievement of the 2009/10 budget plans and preparing for 2010/11 and beyond, receives reports covering financial information, inputs and outputs as part of the evaluation of service changes (see 1.2.6)

Decision Making

Significant Council decisions are based on and reinforced by high quality opinion data provided by our residents. The Council conducted a Citizens' Panel exercise during August 2008 in which residents were asked which factors were most important in making an area a good place to live. The results indicate that the Council's priorities - green issues, community safety, housing, place shaping and bringing people together - continue to reflect the priorities that residents had endorsed when the Corporate Plan was under development in 2007.

The Council demonstrates a willingness to listen and act on the concerns of residents. In 2008, the Council undertook a specific consultation with the young people of the borough in order to ensure that the voice of young people was heard and that their wishes received the backing of the Council in the way of funding. This was particularly important given the high percentage of the adult population who, in the BVPI general survey and the subsequent Citizens Panel survey, expressed a view that activities for children and young people most needed improving. Activities for children and young people is also one of the council's cross cutting priority themes.

The exercise with young people was carried out in partnership with the Local Strategic Partnership's Children and Young People sub-group. The action plan that was drawn up and reported to cabinet represented the things young people wanted to see happen in the borough. The funding implications of the action plan have been included in budget estimates where appropriate.

The most recent dedicated budget survey, conducted in late 2007, has helped in developing the budget proposals for 2009/10. The responses have helped shape the Council's thinking in respect of:

The Council recognises that the economic downturn has implications on budgets, not only in terms of financial pressures but also by way of changes in service demands. For instance, the 2008/09 budget proposals included a target for employee savings to be achieved through a combination of early retirements, detailed consideration of the need to fill any posts becoming vacant and whether or not the function can be performed more efficiently through other sources. Following the success in meeting these targets further such targets have been put in place for 2009/10.

The vacancy control panel process, led by the Deputy Chief Executive and the Head of Human Resources, has provided opportunities to re-evaluate posts and make significant contributions both in meeting the demands for efficiency savings and in the Council's approach to business process improvements. The panel examines whether or not a post needs to be filled, alternative employee resources that could be used to cover the work, temporary or permanent appointment and the scope for making further improvements/efficiencies further down the establishment if the post is filled from existing resources. While the rate of vacancies may decrease during the economic downturn, it is anticipated that opportunities for re-evaluation will continue to present themselves during 2009/10.

When making decisions, the Council considers and takes account of whole life costs and benefits and their impact on the local community and the environment. The Council is sensitive to the long term implications of its decisions and undertakes a cost/benefit analysis of major decisions. It cannot, of course, ignore external conditions and the base 2009/10 detailed estimates did not reflect the effects on this authority of the economic downturn, not only in terms of financial pressures, but also by way of changes in service demands. Thus, a number of further budget changes have been made in response to the prevailing conditions:

General

In addition to the employee target for savings arising from the natural turnover of staff as mentioned above, the ongoing effects of the vacancy control panel process and a rationalisation of posts known to becoming vacant has led to some 19 posts being deleted from the establishment producing savings of £300,000 per annum. A high proportion of the posts deleted is in back office and support function roles and have been generated by more efficient working methods. Some other posts deleted are in areas where service demand has decreased.

Place Shaping

Taking a long term view of the implications of the tram network being extended to Beeston and of the proposals for the long term development of Beeston town centre the Council is considering the introduction of car parking charges. The Council has to balance a number of potentially conflicting priorities here, such as maintaining the vitality and viability of our town centres against the need to avoid Beeston becoming a car park for visitors to Nottingham and the need to generate additional income. In addressing the need to maintain town centre vitality, the proposal is to fix charges at a level below that of our neighbouring authorities.

Green Issues

Savings of £101,000 have been identified by undertaking to maintain urban highway grass verges at the County Council funded level rather than the higher level of maintenance hitherto provided by the Council.

Changes to working practices and a reduction in the level of Saturday working is expected to produce estimated savings of £50,000 in 2009/10 in respect of refuse collection.

Bringing People Together

A detailed review of leisure centre budgets identifying savings in excess of £100,000 although the effects on front line services have been kept to a minimum with only bar and crèche closures having a direct effect on customers.

Regulatory Services

The offer of a TV licence allowance and travel token concessions as an alternative to the enhanced free fare concessionary travel scheme has been withdrawn.

Taken together many of the areas where budget savings are planned will contribute to the Council's efficiency savings.

The Council recognises the importance of working in partnership in order to respond to local needs and priorities. The Council plays a key role in the administration and monitoring of the merged community safety partnership, is the lead organisation of the LSP and therefore has a strong understanding of the resources at the disposal of the respective partnerships.

Shared intelligence between agencies has developed into shared service delivery in the shape of the merged Community Safety Partnership. The partnership jointly employs a data analyst who provides information on the effectiveness of crime and disorder reduction activity and identifies hot spots to enable resources to be efficiently targeted.

Making Efficiencies

A significant number of Council services are benchmarked, with the Council participating in exercises run by CIPFA, APSE, HQN and SOCITM as well as more local comparisons with neighbouring authorities. Results from such benchmarking support the view that the Council is generally a low spend, value for money authority (see 1.2.7a - d). The data is reflected in a number of service plans where trends are apparent and the newly acquired performance management system will enable improved trend analysis as it becomes populated with increasing amounts of data.

Information from benchmarking is reviewed to help identify particular aspects where improvement may be required or where costs appear to be out of line.

The Council continues to improve and refine its performance management framework. A significant element of this incremental process has been the acquisition of a performance management system (Covalent). Covalent enables us to tailor our performance reporting to its target audience and ensures a consistent and coordinated approach to performance management across departmental boundaries. This system will be instrumental in providing a comprehensive corporate mechanism for collecting and monitoring performance.

Opportunities for VFM improvements are continually being looked for and examples of achievements in recent years include:

An Efficiency Working Group, consisting of officers and members, monitors progress against the efficiency agenda and works to identify new savings and efficiency opportunities. The Council also plays an active role in the Nottinghamshire Improving Efficiency Group, which has been recently established to identify future opportunities for working together between authorities. The work of our Efficiency Working Group is shaped by our new Efficiency Strategy which incorporates the various strands of the Council's approach to efficiency and consolidates them with those of the East Midland Regional Improvement and Efficiency Partnership. (See 1.2.11)

The Council is committed to the best value principles of securing continuous improvement in the performance of its service in terms of economy, efficiency and effectiveness. Our approach enables sustainability and quality to be taken into account and does not restrict us to a `lowest price' philosophy. In making procurement decisions we endeavour to balance cost and quality with social and environmental needs. Where appropriate this is in consultation with the users themselves.

On housing modernisation, for example, the previous contract ended and it has now been re-tendered. Workshops with tenants, key officers and members took place before tendering to ascertain the needs and priorities as to, for example, liaison with tenants, more effective methods of working, planning work programmes, materials used etc. An external consultant was engaged to help advise upon and appraise the process for selection of the successful tenderer.

Our Procurement Strategy objectives include commitments to encourage small firms, ethnic minority businesses, social enterprises and voluntary and community sector suppliers to bid for contracts, to ensure compliance with employment issues in procurement, to award contracts on the basis of whole life costs and benefits and to ensure that social and sustainability issues feature in procurement.

Investment over the past few years, particularly in ICT systems, has helped to improve efficiency and contain costs. Examples include:

In terms of securing external funding, the Council has limited opportunities to access funds due to a general absence of deprivation issues (although we have identified pockets of deprivation at the super output area spatial level). This has resulted in a very proactive approach to securing external funding wherever possible to supplement limited capital and revenue resources. During 2008/09 we were successful in securing capital funding from:

On the revenue side, external funding bodies included:

We have evaluated our whole approach to Partnerships with the development of a detailed Partnership Strategy (See 1.2.12). The Strategy seeks to maximise the opportunities to build capacity and invest in its future through innovative partnerships. It establishes the criteria for successful partnership working, including achieving a good return on investment in terms of time and money. All significant partnerships were reviewed during the course of the year (Example report See 1.2.13) and included:

We are now delivering our second Community Strategy. Through our Community Action Teams we support community leadership and have developed capacity within our communities to enable real engagement and involvement. This has been enhanced following the introduction of an area-based approach to delivering the objectives of the Community Strategy.

We continue to allocate capital and revenue funding to voluntary and community organisations, acknowledging the role they play in enriching the quality of life for the community. This includes our innovative `Neighbourhood Pride' initiative which encourages community involvement and the leverage of matched funding from other organisations and agencies, thereby maximising partnership working.

After several year of providing financial support to the Citizens Advice Bureau, our partnership with them has been further cemented through the provision for accommodating the CAB within the main Council Offices in Beeston. This will benefit customers by providing a more convenient location for the service, and maximise the opportunities for joint working between the CAB and Council departments (See 1.2.14).

The Head of ICT and Corporate Services is the lead officer on business transformation and this is also reflected in the job descriptions and responsibilities of a number of individuals. In addition to the use of ICT as mentioned above to enable better VFM, ICT has been particularly used in the last year to improve services to users through the redesign of the web site and additional facilities enabled through this site.

In addition the front line Customer Services function has been established around a dedicated customer management system. Some limited integration between the customer management system and other back office systems is available at present and this will be developed further over the coming years. Currently not all services are within the customer services arrangement and more are being added through phases 2 and 3 of the project. The service has proved to be popular and successful with resolution rates at first point of contact exceeding 80%, unanswered call rates being reduced and good customer feedback (See 1.2.15).

The introduction of VOIP has also taken place such that a better telephone set up now exists based upon the Council's data network with a significant increase in telephone versatility and a reduction in telephone costs as a result.

A new ICT strategy has been put in place with a dedicated delivery action plan for business transformation. (See 1.2.16)

KLOE 1.3

Is the organisation's financial reporting timely, reliable and does it meet the needs of internal users, stakeholders and local people?

Themes to cover:

Financial Monitoring and Forecasting

The Council operates a devolved financial management structure that attempts where possible to allocate resources to budget holders associated with the delivery of front line services. To support this structure, the Council has an on-line and relatively up to date Financial Management System (FMS) that allows budget holders to monitor expenditure on budgets for which they are responsible, scrutinise all transactions associated with the budget and identify any significant variances that may be emerging. Commitment accounting is an integrated part of the system which also incorporates an integrated electronic set up for placing and recording orders.

The arrangements that are in place are intended to ensure that budget monitoring is undertaken on a regular basis by those responsible and enables prompt action to be taken should any significant budget variances be identified.

These arrangements are supported by monitoring undertaken by the accountants within the Finance Services Division. Each individual service area has an accountant allocated to it to provide support on financial management issues to the budget holders and to any support staff who utilise the system.

Finance Services also produce reports detailing significant revenue variances in conjunction with the budget holders. These variances are recorded on an exception basis and are defined as “variations of greater than £5,000 and 1% of the approved budget”. Examples of those produced at the end of June, July and August and are attached (See documents 1.3.1 to 1.3.3).

These reports for 2008 formed the basis of a report to Cabinet on 23 September 2008 (see document 1.1.16) that identified a number of income shortfalls in 2008/09 in particular and resulted in a supplementary revenue estimate of £356,750.

An essential component of effective financial monitoring and forecasting is the reconciliations required to ensure that key systems are reporting data in a timely and efficient manner and that the integrity of this data can be relied upon. A table (see document 1.3.4) is maintained showing the key reconciliations, the required frequency of these and the officer responsible. This table is used by the Chief Accountant to monitor progress and take any further action if progress is not being maintained.

An annual review of the key reconciliations process is undertaken by the Audit and Control section each year and the March 2009 report is attached (see document 1.3.5). This concluded that actions identified in the 2007/08 review had been satisfactorily addressed.

Budget monitoring in the second part of the year is an essential part of the budget setting process for the forthcoming year. Specialist reports are produced showing actual spend to the of August compared with the previous year's figures for the same period and the whole year and these form the basis of working papers used for preparing forecasts for the year in question and the following year. Revised estimates are established for each budget heading following detailed scrutiny by the Finance Services Division in consultation with the respective budget holders. The results are summarised and form part of the strategic budget discussions with members during the autumn and provide the basis for the future year's budget proposals.

A plan for the capture and reporting of financial information relating to progress on the capital programme is produced for each year. The 2008/09 plan is attached (see document 1.3.6). This is intended to enable the respective project managers for each scheme to have an input into the financial monitoring process and allow for the early identification of any errors or potential under/overspends or delays in projects.

This culminates in a report to the General Management Team (GMT) each month. (See document 1.1.9) This report is then included in the Members Bulletin.

Some capital schemes are particularly significant due to factors such as their size or the fact that they require significant partnership working. These schemes have been designated as “Category A”. The project manager for such a scheme has to complete a template each quarter setting out what work was completed in the previous quarter, what is planned for the next quarter, what risks have been identified and any measures that have been implemented to address these. (See document 1.1.10)

As well as producing annual revenue and capital budgets and monitoring these in an effective and timely manner, the Council produces a medium term financial strategy (MTFS) which incorporates a risk assessment of the most significant items within the revenue budget for the forthcoming year. The MTFS forms part of the strategic budget proposals presented to cabinet and leading to the setting of the Council's council tax. (See document 1.1.2).

Significant variances between the outturn position and the budget are summarised in a report to the General Purposes & Audit Committee when it considers the annual statement of accounts. More detailed examination of variances exceeding £5,000 and 1% of the budget are reported through the Overview and Scrutiny Committee. (See document 1.3.7)

In 2007/08 net expenditure on the General Fund was within 3.1% of the estimate whilst expenditure and income within the Housing Revenue Account were both within 1% of the budget.

Using Fit for Purpose Financial Reports to Monitor Performance and Support Strategic Decision Making

All reports to Council/Cabinet/relevant committee meetings include a section on financial implications where appropriate. This sets out the anticipated financial consequences in both the current and future years of the issues or proposals within the reports and how it is intended that these are addressed.

Such reports are based upon a corporate format to ensure that they are fit for purpose. This helps to ensure that reports are clear, concise and written in a way that makes them easy for the intended recipient of the report to understand.

As set out above, the FMS is designed to enable budget holders to access monitoring and forecasting information themselves. They can then obtain any further assistance from Finance Services if required. The FMS also contains a range of reporting facilities to allow budget holders to obtain dedicated reports based upon criteria that they define. The budget holders can write these reports themselves or request the assistance of Finance Services if they have more detailed and complex reporting requirements.

There may be occasions where budget holders require detailed and complex information to be obtained from the FMS and then presented to them along with information from other sources in a manner that can be easily understood. Finance Services staff are often required to provide assistance of this nature. A typical example relates to the monthly report that Finance Services provide to staff in Housing that shows how actual expenditure compares with the budget across various headings and incorporates the provision of any relevant comments. (See example report document 1.3.8)

Preparation of Accounts

The preparation for and production of the annual accounts is completed in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom: A Statement of Recommended Practice. A copy of this document is purchased each year along with the accompanying guidance notes and used to ensure that all the necessary requirements (including any changes) are identified and complied with.

A plan is used to co-ordinate the preparation of the annual accounts. This specifies all the key tasks, allocates these to named individuals and sets the timescales for their completion. The 2008/09 accounts closedown timetable is attached (See document 1.3.9).

The Head of Finance Services (HoFS) is responsible for monitoring and ensuring that all the tasks set out within the accounts closedown timetable are completed by the specified dates. The named individuals responsible for each task notify the HoFS after each task is complete. In addition, if any issues are identified that are likely to impact upon the ability to meet the various deadlines then the HoFS is notified and measures to tackle these issues are agreed and implemented. The HoFS also meets with the accountants on a regular basis during April/May to review progress in preparing the annual accounts and confirm that the annual accounts are on schedule for completion by the relevant date.

Guidance is circulated to departments across the organisation so that they are aware of the key dates in the accounts preparation process and what will be required from them as part of this process. This includes details, for example, of the process for ensuring that year end accruals are conducted appropriately. The guidance issued for the production of the 2008/09 annual accounts was circulated on 27 February 2009 and this is attached (See document 1.3.10).

The Council is proactive in identifying and addressing changes to statutory requirements and relevant accounting and reporting standards. For example, the consideration of new SORP requirements is one of the key tasks within the accounts closedown timetable. In recent years this has involved the transition to and implementation of the income and expenditure account, the statement of recognized gains and losses and the introduction of the revaluation reserve and capital adjustment account. This work was informed by attendance at seminars, liaising with external auditors and networking with finance colleagues in other local authorities.

The introduction of International Financial Reporting Standards (IFRS) will have a significant impact upon financial reporting. Measures have been taken to identify the implications of this through attendance at seminars and researching this issue widely. A project plan is to be established to oversee the implementation of IFRS and the work implications are being reported to the General Purposes & Audit Committee. (See document 1.3.11)

The Council is proactive is obtaining any information from partner organisations required for the completion of the annual accounts. This includes, for example, information from Nottinghamshire County Council relating to the Council's involvement with the Local Government Pension Scheme to comply with Financial Reporting Standard (FRS) 17. Further examples relate to the notes in the annual accounts on pooled budgets such as the “First Lets” partnership with Rushcliffe and Gedling Borough Councils and the Nottinghamshire Local Area Agreement (LAA).

A draft annual statement of accounts is presented to the General Purposes and Audit Committee in June. This allows the members to scrutinise the document and seek clarification or further information on particular items. The draft is accompanied by an explanatory report setting out in easily understandable terms the key issues and details of any significant financial variances from the budget. (See document 1.3.12)

Any changes to the draft annual statement of accounts that are required following the external audit are reported to the General Purposes and Audit Committee in September together with the external auditor's report on governance issues arising from the accounts audit.

Publishing Reports

The most recently published annual accounts and the audit and inspection letter are made available on the Council's website as soon as they have been approved.

It is recognised that financial statements are often long and complex documents that are difficult to understand. A summarised version of the annual accounts setting how the major areas of expenditure on the revenue account, the capital programme and the housing revenue account (HRA) along with the financing of these is set out in the Broxtowe Matters newsletter that is distributed to all households in the borough each autumn and is also available on the website. Feedback on how the information is understood has generally been positive. Versions in large print, other formats and other languages are available on request.

Use of Resources - Procurement

1) Clear vision of expected outcomes

The Council recognises the need for a multi-agency approach to deliver shared outcomes and is committed to working in partnership in order to achieve shared ambitions. We work closely with other public organisations and external partners to meet the aspirations and expectations of people both within our own community and in the wider county context.

The borough's aspirations are delivered in partnership through the Broxtowe Partnership, the Local Strategic Partnership for Broxtowe. This multi-agency partnership provides a localised focus on the outcomes it wants to achieve for those who live, work or enjoy leisure time in Broxtowe.

The Partnership has a range of Task Groups which deliver actions and outcomes in these themes and equality and diversity cuts across all of them. However, it is the Partnership's Positive Communities Task Group which most proactively advances equality and diversity issues.

The Partnership has developed the Nottinghamshire Sustainable Community Strategy which encapsulates the ambitions, aims and objectives of partners for Nottinghamshire. The Broxtowe Borough Partnership has refreshed its own Community Strategy which is now aligned with the Sustainable Community Strategy and the Council's own Corporate Plan.

Many of the targets set out in the Community Strategy and the Sustainable Community Strategy are linked to the Local Area Agreement for Nottinghamshire, known as the Nottinghamshire Partnership. This again is a multi-agency partnership with objectives with equality and diversity issues.

Broxtowe Borough Council's own corporate plan reflects the wider social, economic and environmental issues that these multi-agency partnerships are designed to address. But it also reflects the specific needs of our communities. Indeed, the alignment of our corporate plan with local needs and aspirations on the one hand and wider county and regional objectives on the other was a key project aim in the development of our corporate plan.

In our corporate plan, therefore, we have a document which provides a basis for service planning, commissioning and procurement. Furthermore, in listening to the views of our residents, we have made a specific point of ensuring that the views of minority groups have been given a voice.

The Council's Procurement Strategy is aligned to our corporate priorities of:

In addition the Council has a number of cross cutting themes, these being:

Understanding Local Community

In negotiating contracts, mangers have a clear understanding of what is required in order to meet the needs of their customers. This has been demonstrated through:

2) Extensive Involvement in Commissioning

Involve service users -

Housing Modernisation requested tenants and Councillors input throughout procurement process. They were also involved in the evaluation of tenders.

Glass Collection Bags - were these bought after consultation with residents?

Playground equipment? - were these bought after consultation with residents?

Leisure centre equipment - were these bought after consultation with residents?

Involve Potential Suppliers -

Glass Collection Bags - issues surrounding the manufacturer of bags discussed with suppliers beforehand.

Time Recording and Access Control System - discussions with potential suppliers about available technology. Also visited reference sites.

Playground equipment? - were these bought after consultation with suppliers?

Leisure centre equipment - were these bought after consultation with suppliers?

Involving Staff -

Contract managers discuss requirements with procurement, so buyer and user has input into the procurement process.

Contract Opportunities

Contract opportunities are advertised on Source Nottinghamshire Website www.sourcenottinghamshire.co.uk and Council Website as a minimum. Standing Orders and Financial Regulations also require the need to advertise opportunities over £60,000.

Local and Small suppliers are considered in the procurement process. Often requirements are split into smaller Lots (eg services for void housing split into property clearance, property cleaning, plumbing services, building services and electrical services) to make it easier for small and local businesses to participate in the tendering process.

Information available to potential suppliers on the website includes:-

3) Improvement Through Service Redesign

We recognise the significant improvements that can be achieved from the contribution of IT and Business Transformation processes. We have achieved 100% of our e-government targets and have implemented a range of highly significant initiatives, including fundamental improvements to the core ICT infrastructure.

We continue to develop our Customer Relationship Management (CRM) service framework towards the delivery of a one-stop front line service. Developments in home working have helped reduce accommodation costs and link to work undertaken on space utilisation. An increasing use of mobile technology has widened access to key systems and flexible working as well as helping improve efficiency. Examples include:

E-Procurement

Although our Procurement Strategy is our principal document governing the way in which we procure and commission services, we also have an E-Procurement Strategy in place to reflect the growing importance of e-procurement. Our E-Procurement Strategy is due to be revised.

Use of purchase cards to enable quicker payment, less admin and take opportunity of internet buying and special deals.

Emailing of orders via Purchasing System to save paper and postage costs.

Payment of invoices by BACS and emailing remittances.

Tender documents are available electronic for download. They can also be sent by email.

Contract opportunities are advertised electronically on OJEU, Source Nottinghamshire and Council website.

E-Procurement Strategy details the requirement to continually assess e-procurement opportunities and how no technology or process should be implemented that would make it difficult or impossible for any businesses to trade with the Council.

The Market Place has not been put in place due to cost and other disadvantages to local businesses.

4) Understanding the Supply Market.

The Council's latest Procurement Strategy (See 2.1.1) has as its primary aim that of ensuring a corporate approach to procurement through the pursuit of more rationalised contract arrangements, both internally and in partnership with other councils.

Our approach has seen many new cost effective corporate and joint contracts put in place, some of the more significant being:

Where applicable savings achieved were taken into account within the previous Gershon regime and will continue to be valuable in looking at savings over the next three years. Other cost reductions have been generated for several years by encouraging all departments across the Council to identify savings and more effective ways of working through restricting inflation allowances for such as printing, postages, supplies and services. Off-contract spend on office stationery is now monitored. Purchasing card purchases are monitored and analysed.

The Efficiency Working Group is investigating ways of rationalising the cost of printing in house. This work involves further analysis into:

The use of ESPO and OGC frameworks are also promoted on the Council's intranet site.

5) Evaluation of Procurement Options

Evaluation criteria for procurement projects are discussed between the procuring officer and contract manager.

There is contract management guidance on the Council's intranet site which the Contract managers should use.

The Council has a Sustainable Procurement Policy. This specifies that the Council uses and purchases products that cause minimal or no harm to the environment.

The Council reviews its procurement options in the following way:

1) Is there an existing framework available that provides value for money?

2) If we pursue our own procurement process if it possible to collaborate with other organisations?

3) Purchase on our own.

The Council is a member of the Nottinghamshire Procurement Forum which assesses collaborative procurement opportunities. This organisation is overseen by the Nottinghamshire Improvement and Efficiency Group and the East Midlands Improvement and Efficiency Group.

The procurement process for each requirement is also considered within the framework of the Public Procurement European Directives and the Council's own Standing Orders and Financial Regulations.

Usually the Council uses an evaluation criterion of Most Economically Advantageous Tender (MEAT), a balance of cost and quality. It sometimes uses lowest price if the procurement is straight forward and bidders are able to meet the specified criteria.

Procurement projects that use the MEAT evaluation process have to be approved by Cabinet.

The Council considers environmental and social responsibility issues in its procurement process. For the purchase of the Housing Voids services, scaffolding services and fixed electrical testing services all suppliers had to conform to the relevant health and safety policies and regulations. In the Housing Modernisation contract, the supplier was to employ apprentices.

6) Reviewing Service Competiveness and Achieving value for money and wider objectives.

Housing Modernisation contract has various KPI's and cost performance measures built into it.

The Council uses competition to prove value for money by getting at least 3 quotes for a requirement or by going through a full tender process.

E-Procurement -

Use of purchase cards to enable quicker payment, less admin and take opportunity of internet buying and special deals.

Emailing of orders via Purchasing System to save paper and postage costs.

Payment of invoices by BACS and emailing remittances.

Tender documents are available electronic for download. They can also be sent by email.

Contract opportunities are advertised electronically on OJEU, Source Nottinghamshire and Council website.

E-Procurement Strategy details the requirement to continually assess e-procurement opportunities.

7) Sources of evidence

Procurement Strategy - http://intranet/CHttpHandler.ashx?id=14488&p=0

E-Procurement Strategy - http://intranet/CHttpHandler.ashx?id=14488&p=0

Sustainable Purchasing Policy - http://intranet/CHttpHandler.ashx?id=14495&p=0

Staff Information - http://intranet/index.aspx?articleid=2754

Staff Guidance - http://intranet/index.aspx?articleid=2754

Contract Management Guidance - http://intranet/CHttpHandler.ashx?id=11236&p=0

Tendering Guide for Suppliers - http://www.broxtowe.gov.uk/CHttpHandler.ashx?id=14497&p=0

Guide to Doing Business with the Council - http://www.broxtowe.gov.uk/CHttpHandler.ashx?id=14163&p=0

Procurement Website - http://www.broxtowe.gov.uk/index.aspx?articleid=843

Advertising of Contract Opportunities - http://intranet/index.aspx?articleid=2754

KLOE 2.2

Does the organisation produce relevant and reliable data and information to support decision making and manage performance?

Themes to cover:

Produces relevant and reliable data and works with partners to secure data quality

Data quality is seen as the responsibility of every employee, particularly those whose work involves entering, extracting, analysing or reporting data. Senior management take responsibility for overseeing the data quality requirements of the employees within their respective service areas.

The Deputy Chief Executive is the nominated Data Quality Manager and has a corporate role in ensuring data quality is given a high profile. He has particular responsibilities where information is subject to audit, such as statutory performance indicators, the Council's financial information and accounts and grant and subsidy claims. Chief Officers have ultimate responsibility for data quality matters within their respective departments, while senior managers have a day-to-day operational responsibility for data quality requirements in their respective service areas. The Strategic Performance Management Group (SPMG) has operational responsibility for promoting the importance of data quality throughout the organisation and this is reinforced by the Council's General Management Team (GMT). The SPMG is responsible for monitoring the Data Quality Policy (See 2.2.1) and for ensuring progress against the action plan. It is responsible for monitoring and approving the performance information produced, particularly around statutory performance indicators, and overseeing the implementation of recommendations in respect of data quality made by the Audit Commission.

At a governance level, Chief Officers provide evidence to support the Annual Governance Statement, which incorporates commitments to probity, transparency, etc. The Strategic Risk Register, which is reviewed quarterly by the Strategic Risk Management Group, adjusts risks in the light of prevailing circumstances and flags any amendments to GMT. Data Quality has been identified as a strategic corporate risk and has been added to the Strategic Risk Register. The risk management process incorporates horizon scanning to identify potential or emerging threats or risks. The General Purposes & Audit Committee is provided with regular updates of the key risks facing the Council.

The Corporate Plan, as the Council's key strategic document has been subjected to a financial appraisal and risk assessment and the document incorporates a commitment to data quality. (See document 2.3.12)

The Council's commitment to data quality is formalised in the Data Quality Policy, which has been actively promoted via the Senior Management Team. Data Quality controls are incorporated into a BVPI Control Sheet, which must be signed off by the respective Chief Officer to signify that he/she has reviewed the data to be presented for audit. A process for establishing the procedures and protocols for the collation of local performance indicators, mirroring that for the national indicators, has also been in place since 2006.

Individuals responsible for collating national indicator data are kept appraised of updated information on each of their respective indicators as and when it is produced.

The Audit and Control section undertake an annual audit around data quality as well as picking this aspect up within individual service audits (See 2.2.2).

Lead members and officers on partnership arrangements are fully aware of the need for data quality when sharing information through partnerships. The Partnership Working Strategy (See 1.2.12) includes among its aims the need to “Establish effective methods and processes by which the Council and the Broxtowe area can get the best out of its partnerships”, and the “Need to ensure there are clear lines of communication between the Council and the Partnerships it is engaged with.”

Provides information which supports the decision making process

The Council recognises that members and officers need accurate data on which to be able to base their decisions. Externally, partners and auditors need to have confidence both in the data we share and in that which we present for audit.

The Council's Data Quality Policy is designed to ensure that the Council meets national standards and requirements in terms of the data it produces, handles and manages. It is a corporate policy, applicable to all service areas. The policy is supported by a comprehensive set of guidance notes and operational procedures. Extensive guidance is provided to service managers on the development of annual service plans (See 2.2.3). In keeping with our commitments to data quality we have developed a corporate approach to the collection and reporting of national performance indicator data. Through the use of a pro forma, all PI collators are required to provide details of the calculation of the PI, the explanation for any significant variance from the previous year and the proposed targets for future years. A corporate approach to the collection of local performance indicator data has also been established in order to ensure that a robust and transparent approach to their collation is achieved in line with the approach to that for statutory indicators (See 2.2.4).

Operationally, and at a more service specific level, processes around data quality continue to be developed and updated. For example:

In terms of the presentation of data, the Covalent performance management system has been utilised to provide a highly visual representation of status. The system has been in operation across the Council since April 2008 and a number of different options for reporting progress against service plans and PI status have been trialled with varying degrees of success. Different reporting options continue to be explored.

Ensures data security and compliance with statutory requirements

Key data quality requirements are outlined on the log-on page of the Covalent tool. This serves as a reminder to all users of the importance of data quality, security. The log-on page also provides a link to the Council's Data Quality Policy.

Data and information security

All of the Council's key business areas have industry standard computer systems in place to aid the delivery of core services. Security arrangements, including access controls, are in place for the organisation's business critical systems. Backup arrangements are in place and the respective system media is securely stored in a remote fireproof environment. Backup media is verified to test media. A standard for the use of strong passwords exists and this is enforced through active directory. Individual systems, where possible, are LDAP compliant and therefore have the same rigour enforced. Encryption tools are available to all employees sending data to third parties.

An Information Management Group led by the Deputy Chief Executive has recently been formed to bring together and ensure a consistent, comprehensive and integrated approach to information management across the authority. As well as ICT information management issues, the group will also encompass issues around Freedom of Information, Environmental Information, Data Protection and the Council's publication scheme for information requests See 2.2.5). Policies around Information Management (See2.2.6), Information Security (See 2.2.7), Information Classification (See2.2.8), User Access (See2.2.9) and Government Connect (See 2.2.10) have been put in place but are yet to be fully embedded across the organisation. The Council was able to put in place the necessary arrangements and controls such that it was able to go live on the Government Connect system on 1 April 2009.

Systems access and controls

All major systems have a nominated system owner who is responsible for ensuring that security, access control, password standards, etc. are implemented and maintained. A Systems Owner Guide is in place to describe fully the access and security procedures that should be followed in order to ensure data and information security. Appropriate third party maintenance contracts are in place to ensure the stability of our implemented systems.

Business continuity

A Business Continuity Plan (See 2.2.11) is in place which underpins continuity plans for all key service areas. A stand alone IT Continuity and Disaster Recovery Plan is also in place (See2.2.12). In partnership with three other local authorities we have purchased a continuity contract for ICT business continuity from an external supplier (See 2.2.13).

Lessons from incidents

System administration of individual systems falls to the respective ssytem owners who have responsibility to ensure processes are secure. User access audits are partially in place and external access tests are conducted annually through a controlled security provider performing penetration testing.

Audit position

The Council's internal Audit and Control Section undertake work each year around ICT controls which supplements that undertaken by the external auditors. The programme of work is based around the CIPFA system control matrices for this area.

Monitors performance against priorities

The Council recognises the crucial difference between performance monitoring and performance management and can point to several examples where it has responded to issues when it has become apparent that performance has been below par:

We understand that in order to respond to the needs and aspirations of local people, we need good quality data that will help shape and inform service development. Our membership of the Nottinghamshire Citizens' Panel `Nottinghamshire Listens' provides us with reliable local opinion. This is a cost effective and efficient way of co-ordinating our consultation effort with the County Council and other key partners. In order to identify more localised issues we draw heavily on the views expressed at our Community Action Team meetings and this information is shared with our LSP partners.

We recognise the need to effectively engage with hard to reach groups. Focus groups of disabled people and carers, members and representatives of the BME communities in our borough and students have provided information that has helped shape the development of our Corporate Plan, inform the equalities impact assessments we have undertaken and has helped us tailor our services to meet specific needs.

Up until 2009, the Council had in place a total of 20 service delivery plans (SDPs) containing service level proposals and projects. Each performance measure the Council utilises was identified with one or other of the SDPs and were linked to actions where appropriate. Service level objectives were themselves linked to corporate objectives and service strategies, thus establishing the `Golden Thread' of performance management.

From April 2009, we have altered our approach to monitoring service level actions and performance measures, adopting a `top down' rather than a `bottom up' approach. The catalyst for this new approach has been the Council's new Corporate Plan. By their nature Corporate Plan priorities and objectives are high level, strategic aspirations. However, we have demonstrated our commitment to achieving them by ensuring they are linked directly to actions and performance measures at the operational level. To strengthen this process, delivery plans are now developed as cross-cutting plans with each corporate priority having its own separate plan (See 1.1.1). These five delivery plans are supplemented by four other which cover our customer, support and regulatory service areas.

Therefore, each corporate priority and its respective objectives have actions and performance indicators against which it will be easier to measure progress. A Corporate Plan scorecard report, produced from the performance management system, is considered by Cabinet every quarter (See 2.2.14).

Covalent reports are increasingly being utilised at the service level as a basis of discussion at team meetings. At the corporate level, the Council's General Management Team receive a progress report on a number of key performance indicators which is presented in a dashboard format (See1.2.4). The Strategic Performance Management Group also receives a Covalent report that provides a quarterly update on the status of the full suite of retained BVPIs and the new National Indicators (See 1.2.5).

As the lead partner on the Broxtowe Partnership we have utilised the Covalent system to improve the management of LSP task group activity. Reports produced by the system are used in Task Group meetings as a basis for discussion on progress and provides an opportunity to focus on actions or milestones that may be falling behind schedule (See 2.2.15).

KLOE 2.3

Does the organisation promote and demonstrate the principles and values of good governance?

Themes to cover:

Principles of good governance

The Council adopted the previous CIPFA/SOLACE framework and moved to adopting the new framework as from April 2008 when a detailed report was taken to the General Purposes & Audit Committee. At least annually that same committee, which is charged with responsibility for corporate governance under specific responsibilities spelt out in the Council's constitution, receives an update report as part of the precursor to the Annual Governance Statement that is included in the Council's statement of accounts. (See GP & Audit report and local code documents 2.3.1 and 2.3.2)

The role of members is clearly defined in the Council's constitution with specific sections on such as: codes of conduct, guidance on hospitality and gifts, delegation arrangements and a protocol for councillor/officer relations. Part X1 of the standing orders provides a narrative about the Council's executive arrangements including the scrutiny function. The scheme of delegation lays out in more detail specific items delegated to committees or council officers. No delegation to individual members exists at present although this may be considered as a result of comments from the recent CPA inspection. The constitution is reviewed at least annually but interim amendments can also be made when required. (See constitution and review report documents 2.3.3 & 2.3.4)

The constitution also includes sections on some external relationships including parish/town councils and the Broxtowe Partnership.

The Broxtowe Partnership (the local LSP) has existed for many years and many external bodies are represented on the partnership and the various task groups that have been created for strands of work within the partnership. The Partnership has its own separate section of the Council's website, directly accessible from the Council's homepage, which provides much more detail of its work and that of the task groups. (See http://www.broxtowe.gov.uk/index.aspx?articleid=4443)

The Council promotes community engagement through, amongst other things, Community Action Teams (CATs) which operate in all areas of the borough. The CATs, which are all chaired by the local councillor, meet four times per year and provide an opportunity for grass roots contact with the public and the community.

The Council is also supportive of the voluntary sector, both financially through its grant aid policy, and in more of hands on approach through providing accommodation and services for such as the CAB within the Council Offices and the Broxtowe Volunteer Bureau in a building adjacent to the offices. Other council premises around the borough are also let out to the voluntary sector.

Member development arrangements are in place and the Council has committed to preparing a member development charter and having a detailed training and education programme in place. (See document 2.3.4a) Training for members already takes place on a regular basis covering specific service areas, such as planning, licensing and risk management for those councillors with those committee responsibilities, as well as more corporate responsibilities such as financial management. A specific member induction programme was prepared and initiated following the last Council elections in 2007.

Members and senior officers attend appropriate workshops/events in order to understand and enhance their roles (See training programme breakdown document 2.3.5) and a skills needs analysis has taken place with members to ascertain where, for example, they may be lacking in ICT skills. All internally held courses are monitored through feedback reports from attendees.

Purpose and vision

The Council's corporate plan was prepared in late 2007/early 2008 and followed a period of extensive and wide reaching consultation with officers, the public, hard to reach groups, members and other stakeholders. The consultation enabled a vision, values, priorities, cross cutting themes and objectives to be produced which also aligned with wider national and local agendas including the Local Area Agreement. (See corporate plan and appendices documents 2.3.6 to 2.3.12)

The plan has been reviewed at the end of its first year and targets have been reviewed and revised as appropriate. (See review of corporate plan document 2.3.13)

Members and officers have good working relationships across all political parties and regular meetings occur between senior management and the respective portfolio holders. Work on more easily categorising portfolio responsibilities with the Council's corporate priorities and cross cutting themes is currently taking place.

Ethical framework and culture

Codes of conduct for councillors and officers are in place (see constitution documents 2.3.3f and 2.3.3g). The employee code is also within the Council's single status conditions of service.

The Standards Committee, which is made up of a mixture of borough councillors, parish councillors and independent members, meets regularly and oversees standards of conduct and complaints for the borough and parish/town councils. It has during the course of the year changed its role to encompass dealing with local complaints and has had to conduct hearings and look into complaints relating to a number of councillors. (See example report document 2.3.14) The Council's Monitoring Officer acts as the lead officer for the committee and advises members, conducts training and undertakes investigations as appropriate. Three member investigations have taken place during the last year, one of which is currently still open. Training has been given on the work of the committee and the new responsibilities in respect of parish/town councils. (See documents 2.3.15 & 2.3.16)

Returns are submitted to the Standards Board on a quarterly basis in accordance with the prescribed timetable.

Registers of interests, gifts and hospitality for employees and councillors exist and are regularly updated. The ICT user guide contains information and guidance on use of equipment and ICT practices and all employees with internet and e-mail access have signed a statement governing their usage of such facilities. Where necessary, disciplinary action can be taken against employees for misuse of the internet and e-mail facilities. Indeed one employee has been dismissed recently in part for misuse of the internet.

A whistle blowing charter is within the constitution and reference to the charter has been included within some key contract documents with external suppliers.

One Ombudsman complaint during the year resulted in an award against the Council and this was reported to the Standards Committee and the General Purposes & Audit Committee. (See report to GP & Audit document 2.3.17)

Reports on complaints received are considered by the Council's General Management Team during the course of the year and, in addition, summary reports are taken to the Standards Committee and the General Purposes & Audit Committee. (See annual report on complaints 2.3.18)

Partnership governance

The Council has in place a partnership working strategy and all significant partnerships of the Council were reviewed in 2008 through the select committee process that preceded the current revised scrutiny arrangements. The partnership working strategy is currently being reviewed and a new version is expected to go to cabinet in the near future.

Many of the significant partnerships have governance arrangements within them although the degree of detail varies depending upon who the partnership is with and the size and nature of the arrangement. The LAA partnership, for example, has carefully structured governance arrangements, whereas such as the working relationship with Ashfield DC re business rates is less specific. Key partnerships are backed up by legal documentation. (See partnership review reports 2.3.19 & 2.3.20) The review in 2008 was a precursor to the authority withdrawing from one partnership (South Notts Home Improvement Agency) where it was not felt to be working satisfactorily. Similarly the Broxtowe Partnership has a formal well documented structure and governance set up (see website).

Meetings with key partners are generally minuted although the degree of formality again varies with the partnership.

KLOE 2.4

Does the organisation manage its risks and maintain a sound system of internal control?

Themes to cover:

Risk Management

The Council's risk management framework is set out in the risk management policy statement and strategy. The most recent version of the risk management policy statement and strategy was approved by the General Purposes and Audit Committee on 24 September 2007 and this is attached (See document 2.4.1).

A key component of the risk management framework is the Strategic Risk Register. The Strategic Risk Register as at 28 February 2009 is attached (See document 2.4.2). This sets out the strategic risks that have been identified along with the following details in respective of each risk:

The latest version of the Strategic Risk Register can be viewed on the intranet and a copy is available for inspection in the members' room.

The Strategic Risk Register is analysed at each meeting of the Strategic Risk Management Group. The group meets four times per year under the chairmanship of the Head of Finance Services and is comprised largely of a number of Heads of Service. It seeks to ensure that the Strategic Risk Register is up to date by monitoring and assessing existing risks, identifying new risks and recommending action to address those risks. The minutes of the Strategic Risk Management Group meeting on 4 March 2009 are attached (See document 2.4.3). These minutes are, in turn, scrutinised by the General Management Team (GMT) and form the basis of an update report to each meeting of the General Purposes and Audit Committee.

The Strategic Risk Management Group is supported by an Operational Risk Management Group. This is chaired by the Chief Audit and Control Officer and meets approximately one week before the Strategic Risk Management Group. The Operational Risk Management Group seeks primarily to identify and assess operational risks and raise awareness of risk management amongst all employees. The minutes of the Operational Risk Management Group meeting on 22 October 2008 are attached (See document 2.4.4).

Each meeting of the General Purposes and Audit Committee receives an update on risk management issues. This usually consists of proposed amendments to the Strategic Risk Register identified by the Strategic Risk Management Group following their most recent review. The Members are asked to approve the proposed amendments and can ask further questions regarding any risks and the measures being taken to manage these. The last review of the Strategic Risk Register was reported to the General Purposes and Audit Committee on 8 December 2008 and this report is attached (See document 2.4.5).

A guide for staff on risk management setting out the Council's risk management framework along with details of how to identify and assess risks was produced in April 2008. This guide is available to all staff to access on the intranet and is attached (See document 2.4.6).

Members have received a number of presentations on risk management from both staff and from external consultants designed to increase their awareness of both risk management and their responsibility to ensure that the principles of effective risk management are firmly embedded within the organisation.

Ian Horwood (Risk Management Advisor) from IPF Ltd gave a presentation on risk management to the members of the Resources Select Committee (which previously had responsibility for risk management) on 4 October 2006 designed to enhance their awareness of this subject and his presentation is attached (See document 2.4.7). Paul Adcock (now Head of Finance Services) and Martin Paine (Chief Audit and Control Officer) gave a presentation on the Council's risk management structures to the General Purposes and Audit Committee on 16 April 2007 and this presentation is also attached (See document 2.4.8).

GMT regularly undertakes a process to identify potential issues for the organisation that could have risk management implications known as “horizon scanning”. This is maintained by the Chief Executive and considered at each meeting of the Strategic Risk Management Group. The most recent “horizon scanning” exercise was undertaken by GMT in March 2009 and the resulting document is attached (See document 2.4.9).

Each of the priorities in the Corporate Plan have been subjected to risk assessments to determine the likelihood of risks adversely affecting these priorities, the potential impact of such risks, any measures that are being implemented to mitigate these risks and the residual risk scores. These risk assessments were included (Appendix 5) in a review of the Corporate Plan that was approved by Cabinet on 17 February 2009 and this appendix is attached (See document 2.3.13).

The Council's newly acquired performance management software includes a risk management module which is still to be fully enabled. This is expected to increase the risk profile particularly in respect of key tasks within the Service Delivery Plans (SDPs). Each SDP includes a section on risks associated with key tasks and the plans were reviewed to inform the Strategic Risk Register.

Risk assessments are also included within committee reports where of direct relevance to help inform the decision making process. (See example report document 2.4.10)

Risk assessments also form part of any appraisal and review of key partnerships. (See documents 2.3.19 and 2.3.20)

Counter Fraud and Corruption Arrangements

The Council has anti fraud policy statement that is available to all staff to access on the intranet and this is attached (See document 2.4.11).

The Council also has a sanctions policy that is designed to ensure that all cases of fraud that are investigated are dealt with in a consistent manner that is in line with best practice. This document can be accessed by staff on the intranet and is attached (See document 2.4.12).

Cases of fraud that result in successful prosecutions are publicised in the local media and on the Council's website.

The risk of fraud and corruption is recognised as a corporate risk by the inclusion of high volumes of employee or client fraud as a strategic risk within the Council's strategic risk register.

The Council has a dedicated fraud investigation team located within the Regulatory Services Division. This team liaises with key partners such as the police and the Department for Work and Pensions (DWP) and joint prosecutions with the DWP often take place. The number of prosecutions and sanctions per 1000 caseload has been steadily rising and the number achieved in 2008/09 was 6.23 per 1000 caseload.

As parts of the efforts to clamp down on fraud and benefit overpayments generally, within the Benefits Section changes were introduced a few years ago to the procedures for recovery of housing benefit overpayments with the result that the overpayment recovery rates (including sanctions) have improved.

The Council maintains a Register of Members Interests within the Democratic Services section. Details of any gifts or hospitality received by either members or officers are recorded. The Register can be inspected at any time.

The Council actively participates in the National Fraud Initiative (NFI). Information obtained from “data matching” exercises is analysed to ensure that the reasons behind any matches identified are valid and that there is no evidence of fraud occurring. The work on looking at matches from the NFI is predominantly dealt with by the Head of the Benefit Fraud Section although the Chief Audit and Control Officer is involved with non-benefit cases covering such as payroll matches. Fair processing notices were in place for all affected service areas prior to participation in the NFI exercise.

Fraud and corruption is reflected in several council documents. The Council's financial regulations (See document 2.3.3e) refer to the need to refer any suspected irregularity to the Director of Finance (now Deputy Chief Executive) and the Officer Code of Conduct also includes a section on corruption (See document 2.3.3g). Anti-corruption clauses are also included in standard contract documents. The whistle-blowing charter also makes reference to using this procedure to combat possible fraud and corruption. (See document 2.3.3k)

Anti money laundering arrangements are in place but no suspected cases have been reported in recent years. (See document 2.4.13)

System of Internal Control

A report on corporate governance is provided to the General Purposes and Audit Committee each year. The report includes a draft annual governance statement that the members approved before its inclusion in the Statement of Accounts. The annual governance statement contains a review of measures taken to enhance governance during the year along with planned improvements for the forthcoming year. The corporate governance report to be presented to the General Purposes and Audit Committee on 20 April 2009 is attached (See document 2.3.1).

The annual governance statement includes details of an annual review of the effectiveness of the system of internal control. Each Chief Officer has to complete a questionnaire at the end of each financial year providing confirmation of their responsibilities for control arrangements, business risk management and data quality in their respective areas. The review of the effectiveness of internal control questionnaire for 2008/09 is attached (See document 2.4.14).

A review of the effectiveness of the system of internal audit is undertaken each year in line with the requirements of the Accounts and Audit (Amendment) Regulations 2006. The most recent review involved an external peer review undertaken by the Internal Audit Manager at Erewash Borough Council. He presented his report to the General Purposes and Audit Committee on 30 June 2008 and this is attached (See document 2.4.15).

The external peer review identified a number of measures designed to enhance the effectiveness of the internal audit function and a formal response including an updated action plan and terms of reference was presented to the General Purposes and Audit Committee on 29 September. This is attached (See document 2.4.16).

An update by the Chief Audit and Control Officer of internal audit reviews conducted and the findings is presented to each meeting of the General Purposes and Audit Committee. (See document 2.4.17) The members of the committee challenge the internal audit findings and can ask for matters to be referred elsewhere or reported back to them. (See document 2.4.18)

The General Purposes and Audit Committee was established in February 2007 and a review of the role of the committee took place in December 2007. (See document 2.4.19) An annual report on the work of the committee is presented to full Council. (See document 2.4.20)

The Council has in place a business continuity plan as required by the Civil Contingencies Act 2004. This was approved by the General Purposes and Audit Committee on 24 September 2007 and is attached (See document 2.4.21). A number of business continuity related events have taken place over recent months including testing of the ICT disaster recovery arrangements. These are summarised in a report presented to the Civil Contingencies Planning Group on 10 December 2008 and this is attached (See document 2.4.22).

KLOE 3.3

Does the organisation plan, organise and develop its workforce effectively to support the achievement of its strategic priorities?

Themes to cover:

Productive and skilled workforce

The Council's People Strategy 2007-11 (See document 3.3.1) recognises the importance of having a committed, skilled and motivated workforce.

The Council has been recognised as an Investor in People organisation since 1996. The corporate Training Policy (See document 3.3.2) underpins the Investors in People Framework of developing people in line with the Council's strategic priorities.

All Service Delivery Plans include a section to identify areas of training and development for employees/departments which are linked to strategic priorities.

Evaluation of all courses is undertaken to monitor the quality and impact of training and development.

All employees receive an annual Personal Development Review.

The training and development budget was previously held centrally for the whole of the Council. This was successfully devolved in 2008 to individual directorates and now enables manages to take more responsibility for the planning and prioritising of individual, team and departmental training needs. A central pot has still been retained to fund corporate courses such as induction, customer service, diversity as well as vocational training.

The introduction of a new Attendance Management Policy in 2004 followed by training for all managers has reduced sickness absence levels over four years by an average of 5.5 days per employee. (See documents 3.3.3 and 3.3.4) Sickness absence is reported monthly to Chief Officers and is also discussed at General Management Team when problems are perceived.

Recruitment and selection procedures were reviewed and streamlined in 2006 and in 2008/09 over 75% of job applications have originated electronically. All posts with the Council are advertised on the Council's website and in the media as appropriate commensurate with the post in question. A review of local media advertising methods took place in 2008 to reduce costs whilst still effectively marketing vacant posts.

To help retain and motivate employees, in November 2008 the Council introduced a new free voluntary benefits scheme `Brocks Benefits' to all its employees and over 50% of employees joined the scheme within the first six weeks. (See document 3.3.5)

An ICT skills audit has been conducted in respect of general skill levels and those appertaining to key systems.

The authority operates a work experience programme with local schools each year and, during 2009/10, 25 placements have been offered. The Council also supports a modern apprentice programme in all directorates across the organisation and currently there are two multi-skilled trainee operatives working within the Environment Directorate.

The Council has many ways of maintaining its communication links with employees and these include Senior Management Team briefings by the Chief Executive, Chief Executive's web page, Broxtowe Employee Newsletter, employee roadshow events, email, notice boards and team meetings. The Council also surveys its employees on a bi-ennial basis focusing on communication, HR, managerial and corporate issues. Outcomes are then fed into the HR service delivery plan and programme of work. A cross directorate Employee Focus Group exists and is used as a communication channel both ways between employees and management. Directorates have their own individual arrangements for communication and these typically encompass such as: team briefings, departmental newsletters and staff council arrangements,

Health and safety is high on the Council's agenda with regular training sessions being held for employees covering their work areas. The Safety Committee, chaired by the Chief Executive and incorporating a cross departmental mix of senior officers, meets several times a year and receives reports about current issues as well as information about the level of accidents across the authority. (See document 3.3.6)

The Council has an active programme of well being initiatives for its employees which includes the following:

Workforce planning

On an annual basis the HR team will analyse and profile its workforce and use this information to forecast needs and development plans accordingly. This information will also be considered by the Council's Vacancy Control Panel when reviewing vacant posts and helping to plan for changes in the workforce.

The Council has signed up to the government's Skills Pledge, and has subsequently undertaken a corporate audit of employee qualification levels in January 2009. This information will help the Council address key skills shortages, develop the potential of employees and retain the investment in training employees wherever possible. Currently approximately 35% of employees are either at entry level or level one (GCSE level) and will qualify for additional support through the Skills Pledge programme.

The Council is aiming to implement changes to its pay structure and terms and conditions of employment during 2009 through its job evaluation (JE) programme. Every post in the organisation has been evaluated including Heads of Service, Directors and the Chief Executive. The impact of implementation will be monitored closely, particularly with regard to turnover levels, sickness absence and service delivery.

Good relationships exist with trade unions and the latter are actively involved in discussions about workforce matters before they are approved and implemented. This includes having the opportunity to have their comments formally included in any reports which deal with changes to the establishment or terms and conditions for employees.

The financial situation of the Council and the national economic situation has led to the need for rationalisation of aspects of the council's workforce and, as part of the 2009/10 budget process, 19 specific posts have been deleted or frozen and further posts are at risk due to the withdrawal/reductions in some service areas (e.g. leisure centre crèches, employee catering facility). The posts removed to date are generally in back office areas, where the work can be covered by working more effectively, or in service areas where there has been a downturn in demand (e.g. planning). The unions have been supportive of the approach taken in preference to a redundancy situation arising. Due regard of the Council's priorities has been taken in changing the workforce.

Organisational change

The People Strategy is grounded in the Council's plans to improve its services and respond to changing priorities. It dovetails with work on communications, equality and diversity, efficiency and performance management, whilst integrating significantly with the ICT and Asset Management strategies. The integration of such strategies and the actions arising have recently been reviewed. (See document 3.3.7)

The Council has made fundamental changes in how it delivers it frontline services and back office systems through the introduction of its Customer First (CRM) programme in April 2007. The range of services dealt with through the Customer Services section is gradually being expanded with posts transferring in from service departments to the central unit.

A review of the corporate structure was implemented in October 2008 following the retirement of two Chief Officers. This led to the streamlining of directorates from six to four with the result of bringing more services together. This included, for example, the transferring of the Building Maintenance section into the Housing Division and the creation of a Regulatory Services Division. (See document 3.3.8)

The changes arising from the corporate review were widespread and employees were kept informed through briefings from the Chief Executive and the individual Chief Officers. It took several months from the initial approval to the restructure in April 2008, through a series of reports around each individual directorate in July 2008 (See example document 3.3.9) in preparation for the changes to take effect from October 2008.

26 employees from across the organisation have received Business Improvement Technique training. Not only have they each attained a NVQ Level 2 they have been able to introduce new systems of work in the areas of HR, Planning and Development Control, which have translated into significant savings in terms of time and money through redesigning processes and cutting waste. The new skills learnt are continuing to be used and the team working aspect of the training has also been invaluable to those who have taken part in the programme.

Following a successful pilot scheme in 2008, all employees with access to a computer at work will be able to access their payslips electronically together with their own personal records during 2009 through the HR Division's kiosk system. Kiosk will also enable managers to gain direct access to information such as absence levels, salary and grading information, overtime and mileage levels for employees within their department.

The Council understands that it needs to develop its leadership capacity at all levels for now and in the future and this will help to embrace and make organisational changes effective. To support this, a scheme of management competencies is currently being developed and this should ensure that the Council has strong leaders at all levels.

Diversity and good people management

The Council is committed to mainstreaming equalities into all its areas of service delivery and employment practice. The Council achieved Level 2 of the Equality Standard for Local Government in 2007. It now considers itself to be at level 3 and is awaiting an inspection to confirm this position.

The Council operates an effective Equalities Working Group which is chaired by the Chief Executive. Equality and impact assessments have been completed for every service area across the organization and a new Diversity and Equality Framework is to go before cabinet in May 2009.

Awareness training sessions on equality and diversity have been provided to employees across the Council and also to individual sections where there are specific needs. The Council is currently working in partnership with Nottinghamshire County Council regarding the production of a diversity brochure and interactive CD.

The Council has maintained the Disability Two Ticks symbol for over 10 years.

Over 50% of managers have successfully completed the ILM Leadership award at either level 3 or level 5.

The Council is continually developing and implementing effective people management policies and procedures through its Local Joint Consultative Committee and consultation with managers. These include comprehensive policies in relation to attendance, capability, disciplinary and grievance issues and the Council also operates a wide range of family friendly policies and actively supports wherever possible, employees who request to change the hours or days they work.

The use of technology is enabling some employees now to work from or be based at home on either a permanent or occasional basis. The introduction of PDA's is also allowing employees to work more effectively and efficiently at reduced cost to the Council.

In addition the Council has in place a range of family friendly policies covering such as: compassionate leave, change of working hours, time off for dependants, job sharing. (See example documents 3.3.10 and 3.3.11)

The Council has fully engaged with the recognised trade unions to produce job evaluation proposals covering pay and changes to terms and conditions. The proposals have been approved by cabinet and have been submitted to the unions several months ago. (See documents 3.3.12 and 3.3.13) The Council is awaiting feedback from the national union advisors prior to proceeding to ballot employees. Employees have been kept in touch with the position on JE through a series of dedicated newsletters as well as in briefings. (See document 3.3.14)