EAST AYRSHIRE COUNCILdocs.east-ayrshire.gov.uk/CRPADMMIN/2012 AGENDAS... · 2014-10-02 · EAST AYRSHIRE COUNCIL . GOVERNANCE AND SCRUTINY – 9 OCTOBER 2014 EAST AYRSHIRE PERFORMS

EAST AYRSHIRE COUNCIL

GOVERNANCE AND SCRUTINY – 9 OCTOBER 2014

EAST AYRSHIRE PERFORMS – SUMMARY REPORT

Report by Executive Director of Finance and Corporate Support 1 PURPOSE OF REPORT 2 To advise Members of a number of important performance measures as at 27 July

2014 (Period 4), including the projected financial position for the year, expenditure reduction measures, treasury indicators, progress of the capital programme, absence management, complaints, health and safety, and risk management.

3 The report also contains a new section which provides Members with details of the

projected financial position in respect of the alternative delivery models; East Ayrshire Leisure Trust, Ayrshire Roads Alliance and the East Ayrshire Health and Social Care Partnership.

4 INTRODUCTION 5 Supporting information is available on the Members’ Portal, and Executive Directors

and Heads of Service are available to discuss any aspect of the report. The supporting information will include:

• Summarised Revenue Information by Department • Capital Programme Monitoring Report; • Employee Statistics; • Health and Safety Performance Report; • East Ayrshire Performs: Key Statistics; • Corporate Risk Register.

6 The established reporting format of East Ayrshire Performs follows a Red / Amber /

Green (RAG) exception reporting approach. The table below details the “colour scheme” and the tolerances associated with each banding.

COLOUR VARIANCE

Red Significantly off target (+/- 2% or more of budget; or £0.500m, whichever is less)

Amber Slightly off target (+/- 0.5% to 2% of budget; or £0.125m, whichever is less)

Green Broadly on target Within +/- 0.5% of budget

AGENDA ITEM No 6

7 EXECUTIVE SUMMARY 8 The East Ayrshire Performs Summary Report (for the period ended 27 July2014is

attached to this covering report. As indicated above an analysis of current performance measures is available via the Members’ Portal.

9 Financial Management – Revenue 10 The General Fund uncommitted balance is forecast to be £8.760m (2.8%) at the

year end taking account of the current projected underspendof £0.035m. 11 Expenditure Reduction Measures 12 All of the 2014/15 departmental savings options are anticipated to be achieved at

Period 4 with the exception of the original saving for the deletion of a Curriculum for Excellence (CfE) post. It became apparent that the implementation of new qualifications by SQA required additional support at a local level and that this post would be necessary to implement support structures for subject teachers during session 2013/14. This has provided an almost complete roll out of N6 qualifications across the academic session. The original saving has been offset by additional savings achieved in the school technicians service.

13 In addition, due to timing issues, two savings require to be rephased into 2015/16.

The re-modelling review in respect of residential learning disability models of care including Berryknowe is currently underway however, the new structure and re-design is still being finalised and the £0.200m saving will now be achieved in 2015/16. Alternative options to replace the Group Life Assurance Scheme continue to be explored in consultation with the Trade Unions and the lead in time for any new schememeans that the saving requires to be rephased into 2015/16.

14 An analysis of the workstreams that have financial savings attached is provided in

the following table. A number of the workstream savings have been achieved and work continues in respect of the corporate workstreams.

Workstream 2014/15Approved

Saving £m

2014/15Revised Saving

£m

Update

Transforming our Relationship with the Communities we Serve

0.060 0.060 Saving achieved and budget reduced

Alternative Delivery Models

0.405 0.100 The timing of transfer / rationalisation of assets means savings in 2014/15 limited to the Trust efficiency target of 2.5%.

Transport Arrangements - Schools - Saving shown as No 6 in 2% list

0.090 0.090 Work has been completed in respect of school travel arrangements for the

remainder of the academic year.

Transport Arrangements –Social Work

0.200 0.200 Proposals agreed and budget reduced.

Property and Estate Rationalisation

0.280 0.280 While specific proposals to deliver this saving have yet to be finalised the savings are projected to be achieved. A total of 124 expressions of interest have been received and 100 of the applications have been supported to Stage 2 – detailed application.

Energy Efficiency 0.500 0.500 The workstream will seek to reduce energy usage in order to mitigate anticipated increases in energy prices. Forward purchasing forecasts undertaken by Procurement Scotland indicate that this will be achieved in 2014/15 although the market remains volatile.

Administrative and Clerical Functions

0.837 0.837 Work continues in respect of the workstream in conjunction with Heads of Service.

Printing Arrangements 0.100 0.100 Saving achieved and budget reduced

Customer Contact 0.100 0.100 Saving achieved and budget reduced

Review of Council-wide External Grant Funding Arrangements

0.196 0.196 Saving achieved and budget reduced

15 HRA Initiatives 16 Following the successful conversion of two blocks of 1 bedroom accommodation at

Girvan Crescent, Newmilns and John Morton Crescent, Darvel into family accommodation, it is proposed to convert the block of 1 bedroom flats at 1-6 Girvan Crescent, Newmilns. This block has proved difficult to let owing to lack of demand and indicative costs for the works conversion into family accommodation is anticipated to be £0.180m.

17 Identified dampness problems at Arran Drive Auchinleck, associated with defective damp proof course and ground levels, has affected a number of properties. It is proposed to carry out remedial treatment and groundworks and thereafter the properties will be returned to the letting pool.Indicative costs for dampness remedial works are estimated at£0.300m.

18 Cabinet previously agreed the demolition of properties at 113-121 and 123 - 149

Barshare Road however it is proposed that the terraced block at 103-111 Barshare Road which has three of the five properties empty with little prospects of being re-let is also demolished. One tenant would require to be re-housed and consequently there would be one buyback of a property. The removal of this terrace block would provide an improved aspect to the cleared site and afford improved opportunities for future site development considerations. The indicative costs for demolition is £0.050m.

19 Treasury 20 Members will recall that Cabinet on 17 August 2011 approved bridging finance of

£0.466m for the Catrine Environmental Heritage Project to cover delays in the payment of Scottish Rural Development Programme (SRDP) grant funding. The latest information provided by the project indicates that progress on site is progressing well and accelerated works due to good weather has resulted in a requirement to seek an increase in the bridging finance to cover the delay between contractor payments and the receipt of grant from SRDP. A separate report by the Acting Executive Director of Neighbourhood Services was presented to Cabinet.

21 Capital Programme 22 The new 3-18 Campus in Kilmarnock will be delivered by East Ayrshire Council in

conjunction with the Scottish Futures Trust (SFT). An update report was presented to Cabinet on 5 March 2014 which indicated initial timescales applicable to the Project.Hub South West have provided an updated programme which proposes Stage 1 submission by September / October 2014 with anticipated approval by the Council by October / November 2014. Hub South west have revised forecast timescales for Stage 2 and have committed to this being completed as planned by May 2015 which, if achieved, would bring the project back on schedule as previously reported with the Project completion date of August 2017.

23 The Council’s stage 1 bid for £1.3m to Scottish Government under the

Regeneration Capital Grant Fund was successful. The Council’s bid entitled Kilmarnock Town Centre Business Hub is one of 30 from 91 applications to be invited to submit a stage 2 application. Work is currently underway to prepare the submission, which must be lodged by 8 September 2014, with the outcome due to be notified to the Council towards the end of November 2014.

24 Absence Management

25 The indicator on staff sickness statistics is the number of days lost per employee. A total of 2.1days were lost per employee for the period 1 April 2014 to 27 July 2014 (Periods 1 – 4). This compares to 2.6 days for the same period last year. Executive Directors, Heads of Service and Departmental Management Teams continue to review absence levels, reasons and interventions on a four weekly basis. Work with the Trade Unions to review the policy in light of experience has been concluded and a report will be presented to Cabinet in the near future.

26 Health and Safety 27 Comparative analysis was undertaken on the total number of incidents reported

during Periods 1 to 4 (2014/15) with 2013/14 and it was identified that there was a reduction of 67 (12%) incidents in 2014/15. It is considered that proactive safety measures and monitoring, such as unannounced inspections and the issuance of guidance documentation and Safety Flashes, have had a positive impact on incident reduction.

28 There were a total of 2,462 recorded unannounced inspections undertaken during

Periods 1 to 4 (2014/15). Regular unannounced inspections are carried out by Departmental Supervisors, Senior Management and the Health and Safety Team. These inspections provide a sound basis for proactive safety monitoring and also support compliance with established safety standards. Any safety deficiencies observed during unannounced inspections, along with the actions taken to address these deficiencies, are reported to the relevant manager and discussed at Departmental and Senior Management Teams on a monthly basis.

29 Risk Management 30 The Corporate Risk Register (CRR) waslast reviewed and updated by the CMT on

Monday 18 August 2014. Whilst a number of strategic risks have been identified, appropriate action to mitigate against them is being taken.

31 RECOMMENDATIONS TO CABINET 32 It was recommended to Cabinet who subsequently agreed to:

(i) Note there are no specific Education recommendations;

(ii) Note the financial management position as detailed in sections8 to 14, and in

the summary report (iii) Approve the replacement and rephasing of savings options from 2014/15 to

2015/16 as noted at paragraphs 12 - 13; (iv) Approve the expenditure in respect of HRA Initiatives as noted at paragraphs

16 – 18;

(v) Note the position regarding Catrine Heritage Project as noted at paragraph 20;

(vi) Note the revised Stage 1 dates for the new 3-18 Campus in Kilmarnock as at

paragraph22 and Regeneration Capital Fund bid as noted at paragraph 23;

(vii) Note the financial position of the alternative delivery models as shown in the summary report;

(viii) Note the health and safety position as detailed in section 26 and in the

summary report; (ix) Note the current risks as identified in the Corporate Risk Register in the

summary report; and

(x) Otherwise note the contents of this report. 33 RECOMMENDATION TO GOVERNANCE AND SCRUTINY COMMITTEE 34 It Is recommended that Members:

(i) Note the contents of this report. Alex McPhee Executive Director of Finance and Corporate Support 27 August2014

LIST OF BACKGROUND PAPERS – NIL Members wishing further information should contactCraig McArthur, Head of Finance, Telephone (01563) 576513

Period 4 2014/12 (27 July 2014)

REVENUE

Revised Annual

Budget

£m

Projected Variance

(favourable) / adverse

£m

2.798 0.01660.587 0.01426.412 (0.519)13.709 (0.004)

9.928 0.000113.434 (0.493)

Revised Annual

Budget

£m

Projected Variance


£m

0.266 0.0000.453 0.001

17.242 (0.247)(0.230) (0.014)

Lead Partnership - Standby Services 0.237 0.000Learning Disabilities 11.039 0.558Mental Health 2.364 0.118Older People 31.380 (0.134)Physical Disabilities 0.548 0.046Sensory 0.230 (0.036)Service Strategy 4.119 0.284Transport 0.432 0.000

68.080 0.576

Premises Costs 0.470 (0.016)68.550 0.560

Revised Annual

Budget

£m

Projected Variance


£m

0.171 0.0004.342 (0.258)1.880 0.0009.749 (0.143)3.807 (0.010)2.494 (0.073)

22.443 (0.484)

Finance & Corporate Support

Integrated Health & Social Care


Central Management SupportFinanceHuman ResourcesCorporate InfrastructureDemocratic ServicesLegal, Procurement & Regulatory

Key Points:

Total

Key Points:

Addiction / Substance MisuseAdult Support and ProtectionChildren and Families / Women's ServicesJustice Services

Revenue

ResourcesSchoolsCommunity SupportFacilities ManagementBuilding Learning Communities

Educational Services

Total for Partnership

Total

Community SupportThe variance primarily relates to underspends in the Residential (Outwith) Placements budget and reduced employee costspartly offset by additional payments to childminders.

LEARNING DISABILITIESThe variance primarily relates to adult care package costs and increased self directed services, partly offset by reducedemployee costs and higher than anticipated care at home income.

MENTAL HEALTHThe additional cost reflects increased care package costs, partly offset by the timing of filling vacancies and reduced overtime.

PHYSICAL DISABILITIESThe additional cost reflects increased care package costs, partly offset by the timing of filling vacancies.

SENSORYThe variance is due to reduced employee costs due to the timing of filling vacancies.

SERVICE STRATEGYThe variance largely relates to potential non-recurring costs arising from the jointly agreed principles and processes for seniorstaff appointments to the partnership partly offset by the timing of filling vacant posts.

BUDGETS OUTWITH THE PARTNERSHIP :-

PREMISES COSTSThis variance relates to repairs budgets held for new facilities in respect of adult day care and Ross Court.

Page 2

Revised Annual

Budget

£m

Projected Variance


£m

0.526 0.0240.052 (0.001)

13.006 0.0271.291 (0.128)

Planning and Economic Development 2.809 0.4202.220 0.0006.993 0.0575.894 0.000

32.791 0.399

Revised Annual

Budget

£m

Projected Variance


£m

0.913 (0.073)4.020 0.115

Insurance 2.307 0.00021.101 0.000

(49.963) (0.150)56.248 0.000

(45.329) 0.000(10.703) (0.108)

Neighbourhood Services

Central Services

Revenue

Central Services

Chief Executive's Office (incl. Health and Safety, Internal Audit)Other Non-Departmental expenditure

Debt ChargesCouncil TaxHB/CTHB/CT Benefit Subsidy

Housing & Environment ServicesInternal Transport Service

Strathclyde Partnership for TransportAlternative Delivery Model - Ayrshire Roads Alliance


Key Points:

Key Points:

Central Management Support

Alternative Delivery Model - East Ayrshire Leisure Trust

Emergency Planning

FINANCEThe variance mainly relates to reduced employee costs due to the timing of filling vacancies and in preparation for future yearssavings and additional income from the Department for Work and Pensions (DWP) in relation to Welfare Reform changes.

LEGAL, PROCUREMENT AND REGULATORY SERVICESEmployee cost savings generated across the service from a number of severances agreed to enable the achievement of futureyear efficiencies, reduced car mileage and travel expenditure and additional income are partly offset by additional expenditureon supplies as services .

CENTRAL MANAGEMENTThe variance relates to additional employee costs in respect of the officer team created for open cast mining and severancecosts partly offset by managed savings on supplies and services.

INTERNAL TRANSPORT SERVICEThe variance mainly reflects reduced costs in respect of vehicle maintenance materials due to the reducing size and age ofthe fleet.

PLANNING AND ECONOMIC DEVELOPMENTThe variance is mainly due to anticipated shortfalls in income relating to building warrants and planning application fees, partlyoffset by reduced employee costs.

Page 3

226.515 (0.126)

Budgeted

Transfer

£m

Projected Transfer

£m

0.000 (0.091)0.000 (0.035)0.000 (0.126)

The variance noted above assumed that all workstream savings will be achieved in the current year.

Revised Annual

Budget

£m

Projected Variance


£m

(225.601) 0.000(1.150) 0.000

0.000 0.0000.236 0.000

(226.515) 0.000

Revised Annual

Budget

£m

Projected Variance


£m

52.059 (0.944)(52.059) 0.010

0.000 (0.934)

Opening Balances

£m

In year Movement

£m

Projected Closing Balance at

31/3/15

£m

Uncommitted (8.725) (0.035) (8.760)Committed and Departmental (14.527) (0.091) (14.618)Transformation Fund (4.124) 0.000 (4.124)Total (27.376) (0.126) (27.502)

Total (all uncommitted) (5.891) (0.934) (6.825)

Key Points:

General Fund Balances

HRA Balances

Utilisation of Previous Years BalancesTotal Funding

Housing Revenue Account

ExpenditureIncomeNet Expenditure

Transfer to uncommitted general fundFund Transfers

Funded by

Aggregate external financeTransfer from Capital FundTransfer from Renewal and Repairs Fund

RevenueKey Points:

NET EXPENDITURE

In Year Fund Transfers

Departmental balance c/f

Housing Revenue AccountThe HRA is projected to be £0.934m under budget. There are lower than budgeted void rent loss savings, debt charges andstaff costs from the timing of filling vacancies. In addition the level for bad debts resulting from under occupancy rent arrearsare lower than anticipated due to changes to Discretionary Housing Payments.

CHIEF EXECUTIVE'S OFFICEThe variance reflects reduced employee costs within Internal Audit and Health and Safety mainly due to the timing of fillingvacancies.

OTHER NON-DEPARTMENTAL EXPENDITUREThe variance reflects a re-profiling of the 2014/15 Alternative Delivery Models workstream saving relating to East AyrshireLeisure Trust with £0.100m of the saving anticipated in 2014/15 against a target of £0.405m. In addition the Community Caresaving of £0.200m for Berryknowe requires to be re-profiled to 2015/16. The impact of the reprofiling is an adverse varianceof £0.505m in the current year which is partly offset by savings identified in respect of centrally held budgets including auditfees and additional income recovered by the Finance Service for Scottish Water and DWP Administration grant for 2014/15

There are currently no variances projected in respect of savings from centrally held workstreams relating to Property andEstates Rationalisation (£0.280m), Administration and Clerical Review (£0.837m) and Energy (£0.500m) are projected to beachievable.

DEBT CHARGESAs indicated in the Council's Treasury Management Strategy it is currently anticipated that there will be a requirement to utilise£1.150m from the Capital Fund to offset debt charges. The amount may reduce in future periods as in year borrowing is re-profiled.

Page 4

ALTERNATIVE DELIVERY MODELS

Revised Annual Budget

£m

Projected Variance


£m

Learning Disabilities 15.171 0.558Mental Health 4.978 (0.032)

2.054 0.0000.453 0.001

35.008 (0.134)Physical Disabilities 0.781 0.046Sensory 0.230 (0.036)Service Strategy 4.327 0.284Transport 0.431 0.000Community Nursing 6.037 0.000Prescribing 23.099 0.000General Medical Services 14.926 0.080

2.775 0.0001.130 0.1500.237 0.000

Primary Care (including Dental) 60.859 0.000Children and Families / Women's Services 17.481 (0.247)Justice Services 1.616 (0.014)Health Visiting 2.144 0.000Justice Services Grant (1.846) 0.000

191.891 0.656


£m

Projected Variance


£m

1.933 0.0351.889 0.1675.060 0.0225.798 (0.016)

14.680 0.208

Ayrshire Roads Alliance - Consolidated Budget

Key Points:

Standby Services

Total

Key Points:

Strategic Delivery - East AyrshireStrategic Delivery - South AyrshireLocal Delivery - East AyrshireLocal Delivery - South AyrshireTotal


Addiction / Substance MisuseAdult Support and ProtectionOlder People

East Ayrshire Community HospitalKirklandside Hospital

Integrated Health & Social Care

Consolidated Partnership Budget

STRATEGIC DELIVERY – EAST AYRSHIREThis variance mainly reflects a temporary programme manager post and IT set-up costs, which will be met from the Council'sTransformation Fund, and a shortfall in roads permits and notices income.

STRATEGIC DELIVERY – SOUTH AYRSHIREThis variance mainly reflects a shortfall in roads permits and notices income and additional expenditure on supplies andservices. This is partly offset by vacant posts and additional capital and bus shelter income.

LEARNING DISABILITIESThe variance primarily relates to adult care package costs and increased self directed services, partly offset by reducedemployee costs and higher than anticipated care at home income.

PHYSICAL DISABILITIESThe additional cost reflects increased care package costs, partly offset by the timing of filling vacancies.

SENSORYThe variance is due to reduced employee costs due to the timing of filling vacancies.

SERVICE STRATEGYThe variance largely relates to potential non-recurring costs arising from the jointly agreed principles and processes for seniorstaff appointments to the partnership, partly offset by the timing of filling vacant posts.

KIRKLANDSIDE HOSPITALThe variance relates to additional employee costs which are offset by savings within mental health services.

Page 6


£m

Projected Variance


£m

0.442 0.000Marketing and Development 0.418 0.000Cultural and Countryside: 2.851 0.000Sport and Community Venues 2.103 0.023

5.814 0.023

(5.894) 0.000(0.080) 0.023

0.080 (0.023)0.000 0.000


Total after Transfer to Reserves

Key Points:

Trust Chief Executive / Central Support

Net Expenditure

Management FeeTotalTransfer to Reserves

East Ayrshire Leisure Trust

SPORT AND COMMUNITY VENUES

The variance relates to an under recovery of fee income due to the unavailability of the synthetic grass pitch at St Joseph'sAcademy and discussions are ongoing to resolve the matter.

LOCAL DELIVERY – EAST AYRSHIREThis variance mainly reflects shortfalls in roads maintenance and street lighting income, additional debt charges in relation topurchased vehicles , an increased bad debt provision in relation to parking fines and additional costs in relation to the multi-storey car park at Kilmarnock. This is partly offset by staff turnover savings, reduced expenditure on fuel and leasing costs,winter materials and street lighting electricity, along with additional car parking income.

LOCAL DELIVERY – SOUTH AYRSHIREThis income mainly reflects reduced sub-contractor and street lighting costs along with additional car parking income. This ispartly offset by a shortfall in roads maintenance income, along with additional transport costs and departmental debt charges.This variance will require to be met by South Ayrshire Council.

0 0 0

1 1

2

0 00

0.5

1

1.5

2

2.5

New Referral Ongoing Welfare Referrals PhysiotherapyReferrals


Short Term Long Term

East Ayrshire Leisure Trust: Occupational Health Referrals (Period 1 to 3 2014/15)

0

50

100

150

200

250

300

350

400

Mu

sculo

Skeletal

An

gina/ H

eart Pro

blem

Op

eration

s/Re

covery/

Treatme

nts

Stress - Perso

nal

Inju

ry No

n W

ork

Co

lds/ Flu

Resp

iratory

Oth

er

Neu

ro - lo

gical

Pregn

ancy R

elated

Stom

ach/ A

bd

om

inal

Head

ache/M

igraine

Viral In

fection

Total

East Ayrshire Leisure Trust: Working days lost, by reason (Period 1 to 3 2014/15)

Page 7

TREASURY

Key Points:

Treasury

0

5

10

15

20

25

3020

15

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

2053

2054

2055

2056

2057

2058

£'m

ou

tsta

nd

ing

Year of maturity

Maturity Profile of Loan Debt

The Council had a total debt portfolio of £290.396m at the date of the report. 77% of this debt is with thePublic Works Loan Board (PWLB), with the balance being loans with financial institutions. The averageinterest rate of all loans is 4.96%.

The Council had a total investment portfolio of £59.730m at the date of the report. This was invested across arange of counterparties as permitted within the Treasury Management Strategy. An average interest rate of0.55% was being earned on these investments. The maturity profile of investments is noted below:

- Call (instant access): £20.945m (35.1%)- Up to 3 months: £10.985m (18.4%)- Between 3 and 6 months: £17.800m (29.8%)- Between 6 and 12 months: £10.000m (16.7%)

Community group loans are currently issued to:- Catrine Community Trust: £60,000- Scottish Dark Sky Observatory: £50,000

5.000 5.000

5.000

5.000

5.000

4.993 4.993

4.992

4.981

2.665

2.665

2.665 2.665

2.000 2.000 0.110

National Bank Australia (5.000m)Commonwealth Bank Australia (5.000m)Nationwide B S (5.000m)Standard Chartered (5.000m)Nordea (5.000m)Santander (UK) PLC (4.993m)Handelsbanken (4.992m)Barclays (4.992m)Bank of Scotland PLC Fixed Term Dep (4.980m)Goldman Sachs MMF (2.665m)Blackrock MMF (2.665m)Prime Federation MMF (2.665m)Ignis MMF (2.665m)Toronto Dominion (2.000m)Rabo (2.000m)Community group loans (0.110m)

Investments (£'m)

0

5

10

15

20

25

3020

15

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

2053

2054

2055

2056

2057

2058

£'m

ou

tsta

nd

ing

Year of maturity

Maturity Profile of Loan Debt

Page 9

CAPITAL PROGRAMME

Budget

Allocation

(£m)

Expenditure

to Date (£m)

Forecast

Expenditure

(£m)

Current

MilestoneStatus

Flowerbank Early Years / Sir Alexander FlemingCentre 4.250 3.490 3.850 Complete

Loudoun Academy Leisure Centre 1.300 1.635 1.680 Complete

Merger of Kirkstyle and Bellfield Primary Schools 11.200 0.000 11.200 Design

School Estate Rationalisation 16.300 0.000 16.300 Development

Galston Community Facilities 1.000 1.059 1.060 Development

Galston Office Facilities 2.800 0.305 2.800 Development

Onthank Primary School 4.000 2.511 4.000 Construction

Dunlop Primary School Extension 0.500 0.164 0.500 Construction

Kilmarnock Secondary School 33.000 0.093 33.000 Design

Hurlford Primary Dining Facilities 0.500 0.008 0.500 Tender

Fenwick Primary School Extension 0.500 0.000 0.500 Development

Early Learning and Childcare Provision 0.646 0.000 0.646 Development

General Projects 3.668 0.012 3.203 N/A N/A

Capital

Educational & Social Services

Key Points:

Flowerbank Early Years Centre / Sir Alexander Fleming CentreWorks at Flowerbank Early Years Centre are now completed and the facilitiy has opened to the public. It is currentlyprojected that the costs for the combined project will be above the contract sum however it is anticipated that the overalltotal costs can be contained within the current budget allocation

Galston Office FacilitiesThe Project Board previously considered a number of design options in relation to the refurbishment of the existingbuilding which would meet the needs of all users. There had been particular difficulties achieving full accessibility(particularly to the upper level meeting room) given the confines of the existing footprint, and it was consequently agreedto proceed with refurbishment proposals which allowed for limited accessibility to the upper floor. However, followingcompletion of a full invasive survey of the building consideration is now being given to a range of alternative options , withdiscussions ongoing with Historic Scotland regarding the proposals.

Onthank Primary SchoolWorks to construct the new extension have been delayed on-site, primarily due to sequencing of works beingdetrimentally impacted by the demolition works which were delayed due to unforseen asbestos within the building whichrequired to be removed, and the identification of nesting protected birds on the existing roof. As a result the new facilitiywill now be opened on a phased basis from the 25 August, with the remainder of the demolition / reinstatement worksbeing completed by October 2014.

Dunlop Primary School (Phase 2)Internal alterations have been completed prior to the school returning on 18 August, with the new extension for thekitchen servery scheduled for completion by October. Temporary dining facilities will be in place until the new extensionworks have been completed.

Hurlford Primary SchoolWork was delayed due to changes in specification required by Planning. Detailed design works has been completed andtender documents are currently being prepared for issue. Some preparatory works have been undertaken during theschool summer holidays in advance of the main works which are currently anticipated to start on-site October 2014, withcompletion by February 2015. Early indications are that overall costs may exceed the original budget allocation; primarilyas a result of additional works required to existing school toilets and the extent of mechanical and electrical alterations forthe new accommodation.

Merger of Kirkstyle / Bellfield Primary SchoolCabinet on 4 June 2014 approved proposals for the merger of Kirkstyle and Bellfield Primary Schools on a site adjacentto the Bellfeild Community Centre. Design works have commensed with arrangements being made to complete athorough consultation and engagement with all key stakeholders. An indicative budget allocation of £11.200m has beenestablished for the project based on projected rolls of 500 primary and 105 early years pupils. It is currently anticipatedthat works will commence on-site summer 2015 with completion targeted for Autumn 2016.

Page 11

Budget

Allocation

(£m)

Expenditure

to Date (£m)

Forecast

Expenditure

(£m)

Current

MilestoneStatus


Energy Efficiency 3.000 0.063 3.000 Development

Transformation Strategy Fund 5.000 0.479 5.000 Development

Public Services Network 2.300 0.338 2.300 Development

Doon Academy Synthetic Pitch 0.941 0.031 0.941 Construction

Depot Improvements 4.000 0.145 4.000 Development

Lugar Recycling/Outdoor Amenities 2.110 0.036 3.620 Development

Dean Road Bridge 1.850 0.245 1.850 Tender

Kilmarnock Town Centre Regeneration (General) 5.000 0.041 5.000 Development

Cumnock Town Centre Regeneration 4.000 0.026 4.000 Development

Cumnock Town Hall 1.048 0.491 1.048 Construction

Other Town Centre Regeneration 4.652 0.060 4.652 Development

Dean Castle Country Park 0.200 0.000 0.200 Development

Council House Building Programme (SLP) 29.326 8.271 31.164 Construction


Housing Investment Programme 14.679 2.917 14.679 N/A N/A

Capital

Key Points:



Doon Academy Synthetic PitchWorks commenced on-site 28 July and are anticipated to be completed by end-November 2014. Works have alsocommenced on-site to refurbish the existing changing facilities, however, this has been delayed by 4 weeks due to theidentification of unforeseen asbestos. Alternative arangements for changing facilities have been agreed in consultation withEducation colleagues.

Lugar Waste & Recycling and Outdoor Amenities CentreDiscussions are continuing with the Acting Executive Director of Neighbourhood Services to develop viable andsustainable options, including the possible transfer of Outdoor Amenties to the Lugar site. A tender is being prepared sothat accurate construction costs can be ascertained to inform the overall busness case.

Dean Castle Country ParkThe final Stage 2 submission to Heritage Lottery Fund (HLF) for the development of new facilities at Dean Castle CountryPark has been delayed and will not now be submitted as planned by the end of August 2014. This is primarily due to theneed to develop a scheme which can be delivered within the overall grant funding constraints. The design team is currentlyconsidering amendments to specification / client requirements which would bring estimated costs back in line with thefunding package. Works are also in hand to prepare the application to HLF for the funding in relation to the Castle Keep asa result of significant concerns with the integrity of the building. It is currently anticipated that the application will besubmitted by end August 2014. The works to repair the Keep roof are due to commence early September.

Dean Road BridgeWorks have commenced on site with an anticipated completion by February 2015.

Cumnock Town HallConstruction works are programmed for completion in October with internal installations including sound and lightingsystems being carried out thereafter. The Leisure Trust will provide professional input in respect of the final internal works.

Council House Build ProgrammeWorks have commenced on-site at Chapel Lane, Galston, Robertland Square, Stewarton, Ayr Road, Cumnock; SkeochRoad, Mauchline; Brewlands Street, Galston; Hillhead Crescent / West Langland Street / Witch Road / Portland Street /Rennie Street, Kilmarnock, and are largely progressing to programme. Works at Kilwinning Road, Stewarton have beendelayed due to major sewer diversion works; costs and potential design changes are currently being considered. Works atLochore Terrace, Darvel have also been delayed due to difficulties reaching agreement with Scottish Water; however theissue has been overcome and works are currently anticipated to commence on site October 2014.

Kilmarnock Secondary SchoolWorks are currently on-going with the contracting partner and associated design team to prepare appropriate Stage 1design propsoals in consultation with key stakeholders. Hub South West have revised the original programme for Stage 1submission to address concerns they had with the impact of school holidays on initial consultation / engagement, andhave indicated that this will not now be completed until September / October. To bring the project back on programme,hub South West have revised forecast timescales for Stage 2 and have committed to this being completed as planned byMay 2015. Corporate Infrastructure staff continue to work closely with hub South West and the Scottish Futures Trust tomonitor progress against the current programme.

Page 12

PEOPLE

Average Number of

employees

Number of working

days lost

Days lost per

FTE employee

18 22 1.2543 1,343 2.5

1,763 3,578 2.01,192 1,363 1.11,561 3,703 2.41,076 3,139 2.9

East Ayrshire Council 6,153 13,148 2.1* including Internal Audit and Health and Safety

Note: data for period 1 to period 3 2012/13 estimated based on April to June data following a change in collection method.

Note: data for period 1 to period 5 2012/13 is unavailable following a change in collection frequency.

Vacancies Advertised (Period 1 to 4) 2014/15 2013/14

35 37110 87145 124

Grievances (Period 1 to 4 2014/15): Stage 1 Stage 2 Stage 3 Stage 4

0 0 0 00 0 0 00 1 0 00 0 0 00 1 0 00 1 1 00 3 1 0

Disciplinary Action (Period 1 to 4 2014/15):

Verbal /

WrittenFinal Dismissal Other

0 0 0 02 0 1 02 2 0 511 3 0 315 5 1 530 10 2 13

Educational & Social Services (LGE). Educational & Social Services (Teachers).Health and Social Care PartnershipNeighbourhood Services.

N/A1.9

2.72.6

Total

Neighbourhood ServicesTotal

Finance and Corporate Support

Chief Executive's OfficeFinance and Corporate SupportEducational and Social ServicesHealth and Social Care PartnershipNeighbourhood ServicesCollective Grievances

People

Period 1 to 4 2014/15

Chief Executive's Office

Educational and Social ServicesHealth and Social Care Partnership

OpenRestricted

Period 1 to 4 2013/14

Days lost per FTE employee

10.21.33.0

Total

Chief Executive’s Office*

Finance & Corporate Support.

0.6% 0.5% 0.9%0.5%

0.0%

2.0%

4.0%

6.0%

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

Leavers as a percentage of employees

2014/15 2013/14

7.3 7.3 7.4 5.6

0.0

5.0

10.0

15.0


Average number of working days lost (All Staff) - Annual Equivalent Value

2014/15 2013/14

Page 14

Key Points:

People

31.3% (1) 24.3% (4)

8.4% (4)

20.2% (29) 25.3% (1)15.9% (5)

24.1% (1)25.1% (33)

5.1% (1)

12.1% (7)

18.8% (1)6.5% (16)24.7% (8)

26.6% (1)

15.5% (20)

14.5% (4)

18.8% (1)

31.3% (1) 7.6% (1)

7.9% (8)25.3% (1)

15.8% (2)

8.4% (6)24.8% (82) 20.3% (1)

41.7% (73)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Chief Executive's Office Finance & Corporate Support Educational and SocialServices

Teachers Neighbourhood Services

Reasons for Absence - Period 6

All other Stress – Work Related Stress – Work and Personal Stress – Personal

Stomach/Abdominal Other Reason Operations/Recovery/Treatment Neurological

Musculoskeletal Colds/Flu Chronic Fatigue Syndrome

42

3 3

15

41

50

3 3

0

10

20

30

40

50

60



Short Term Long Term

Occupational Health Referrals (Period 1 to 4 2014/15)

Note: Percentages in this graph represent the percentage of working days lost per department for each reason, while thenumber in brackets represents the number of staff absent for each reason. These two values are not related as the percentageof working days lost is affected by duration of absence, not the number of staff absent. For example, 10 days were lost forDepartment X in June, 1 member of staff was absent with the Angina for 9 days, another member of staff was off with Colds/Flufor 1 day. The graph values for Department X would be 90% (1) for Angina and 10% (1) for Colds/Flu.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Op

eration

s/Re

covery/Treatm

ent

Mu

sculo

-Skeletal

Stress - Perso

nal

Stress - Wo

rk Re

lated

Stom

ach/A

bd

om

inal

Inju

ry - No

n W

ork R

elated

Oth

er

Resp

iratory

Viral In

fection

An

gina/H

eart

Pregn

ancy R

elated

Stress - Bo

th W

ork &

Perso

nal

Co

lds/Flu

Wo

rkplace

Inju

ry

Head

ache/M

igraine

Skin C

on

ditio

ns

Neu

rolo

gical

End

ocrin

e

Gyn

aecolo

gical

Ch

ron

ic Fatigue Syn

dro

me

Total

Working days lost, by reason (Period 1 to 4 2014/15)

The Council introduced a revised Sickness Absence Management Policy effective from 1 April 2013 which wasdesigned to reduce the number of days lost each year. Year to date in 2014/15, the Council reports 2.1 days lostper employee during period 1 to period 4, compared to 2.6 days lost per employee over the same period last year.Work with the Trade Unions to review the policy in light of experience has been concluded and a report will bepresented to Cabinet in the near future.

During Period 1 to Period 4, 279 employees hit absence trigger as set out in the Council’s Sickness AbsenceManagement Policy. In total, 34 employees, or 12.2% of all staff who hit an absence trigger, have been dicisplined.

Page 15

HEALTH AND SAFETY

Health and Safety

RIDDOR - The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995

Key Points:

Key Points:

68 74 7636

52 53 77

22

0

50

100

150

200


Non Reportable Incidents

Non-Reportable: Employees' Injuries Non-Reportable: Others' Injuries

Of the 458 ‘non-reportable’ incidents reported to the Health and Safety Team, the 3 main ‘Causes’ were:Violence and Aggression x 208 (45%), Slips-Trips-Falls x 58 (13%) and Near Miss x 51 (11%).

During Periods 1-4 (2014/15) there were a total of 473 incidents reported to the Health and Safety Team.This is a decrease of 12% when compared with Periods 1-4 (2013/14) where there were 540 incidentsreported. Of the 473 incidents reported to the Health and Safety Team during Periods 1-4 (2014/15), 15required to be reported to HSE in line with RIDDOR. The ‘Causes’ of the 15 incidents were: ManualHandling (2), Occupational Disease (2), Slips-Trips Falls (4), Sports and Activities (1), Struck by FallingMaterials/Moving Objects (3), Violence and Aggression (1), and Other Category not listed (twisting/jerkingbody awkwardly) (2).

0.5465789470.218947368

0.0913157890.068947368

0.024210526

0 0.2 0.4 0.6

Educational astablishments

Leisure Facilities and public places

Housing Stock or Hostels

Location of Non- Reportable Incidents (Period 1 to 6)

1

52 2

1

21

1

0

5

10


Reportable Incidents

RIDDOR - Employees' Injuries RIDDOR - Others' Injuries RIDDOR - Dangerous Occurrence RIDDOR - Reportable Disease

A high percentage (55%) of non-reportable incidents occurred within Educational Establishments,including Special Schools and Additional Support Needs facilities.

0

100

200

300

400

500P

rimary Sch

oo

ls

Special Sch

oo

ls

On

Site

Early Ch

ildh

oo

dC

entre

s

Dep

ots

Secon

dary Sch

oo

ls

Service User’s H

om

e

Offices

Ch

ildren

’s Ho

uses

Day C

entres

Clean

ing

Janito

rial

Ho

stels

Resid

ential

Establish

men

ts

Sup

po

rted Learn

ing

Cen

tres

EAST

Ho

spitals

Caterin

g

Co

mm

un

ity Cen

tres

Total

Location of Non- Reportable Incidents (Period 1 to 4)

Page 17

* Educational Establishments includes early childhood centres, primary schools, secondary schools, special schools and ASN Facilities.

Key Points:

Key Points:

Health and SafetyKey Points:

Year to date, 895 working days were lost due to work related related stress, compared to approximately1,205 working days over the same period last year.

Where an employee is absent due to work related or personal stress then they are subject to the set earlyintervention arrangements which require immediate referral to the Occupational Health Service for initialassessment of the reasons for the absence and consideration of whether, at that stage, referral to amedical adviser is required.

5368 71

17

0

50

100

150


Number of violence and aggression incidents (Reportable and Non-Reportable)

2014/15 2013/14

During Periods 1-4 (2014/15) there were 209 incidents of Violence and Aggression, one (1) of whichrequired to be reported to HSE, in line with RIDDOR. This is an increase of 3 incidents when comparingto Periods 1 – 4 (2013/14). Period 4 (2014/15) shows a significant decrease in incidents reported, whichis influenced by the Summer Holiday period; Violent and aggressive incidents within EducationalEstablishments account for 67% of all violent and aggressive incidents reported during this period.

The average number of days to report an incident during Periods 1-4 (2014/15) was 3.0 days. This is areduction of 0.9 days when comparing to Periods 1-4 (2013/14) where the average number of days toreport an incident was 3.9 days.

285.0224.0 221

165.0

0.0

100.0

200.0

300.0

400.0


Number of days lost to work related stress

2014/15 2013/14

1.0

6.03.5

1.9 3.3 2.5 1.7 2.32.5 2.23.0 4.2 2.7

2.2

11.7

3.2 2.64.9

0.05.0

10.015.0

Period 1 Period 2 Period 3 Period 4 Period 5

Average number of days to report incidents

Finance & Corporate Support Neighbourhood ServicesEducational and Social Services Health and Social Care Partnership

4153 45

10

50

100

150

Pe

riod

1

Pe

riod

2

Perio

d 3

Perio

d 4

Pe

riod

5

Pe

riod

6

Perio

d 7

Perio

d 8

Pe

riod

9

Pe

riod

10

Perio

d 1

1

Perio

d 1

2

Perio

d 1

3

Number of violence and aggression incidents (Educational Establishments*)

12 15 26 16

0

50

100

150

Perio

d 1

Perio

d 2

Perio

d 3

Perio

d 4

Perio

d 5

Perio

d 6

Perio

d 7

Perio

d 8

Perio

d 9

Perio

d 10

Perio

d 11

Perio

d 12

Perio

d 13

Number of violence and aggression incidents (Excluding Educational Establishments*)

Page 18

COMPLAINTS

Dealt with

Under

Stage 1 only

Dealt with

Under

Stage 2 only

Dealt with

Under

Stage 1 then

Stage 2

Number of

complaints

Finance & Corporate Support. 6 1 0 7Educational Services 6 0 0 6

22 3 3 280 1 0 1

34 5 3 42

Number

Closed

Number

Closed

Within Time

Average Days

to Respond

Upheld in

FullPartially Upheld

29 13 (44.8%) 10.4 10 (34.5%) 5 (17.2%)4 1 (25.0%) 33.8 0 (0.0%) 2 (50.0%)

Finance and Corporate SupportEducational and Social ServicesNeighbourhood ServicesCross DepartmentEast Ayrshirestage 1 6.8 22.3 8.8 10.4stage 2 28.0 33.0 41.0 33.8

East Ayrshire Council

Neighbourhood Services. Cross Department

Complaints

Complaints Received (YTD 2014/15)

Key Points:

Complaints Closed (YTD):

Key Points:

Stage 1 ComplaintsStage 2 Complaints

Complaints Closed (YTD 2014/15)

During the reporting period, a total of 42 complaints were dealt with. As at 27 July 2014, 33 of these were closed and 9remained open. This compares with 81 complaints that were dealt with during the same period in 2013/14.

Improvement activities have been identified during the reporting period including a change to procedures relating to thesettlement of ex-gratia payments within Housing Asset Services, the issue of a Safety Flash to all Waste Managementdrivers regarding working in the vicinity of schools and customer care training being provided to all Revenues and Benefitsemployees.

The average number of days to respond to a Stage 1 complaint was 10.4 days for the reporting period, while the averagenumber of days to respond to a Stage 2 complaint was 33.8 days. This compares with 8.4 days for Stage 1 and 29.7 daysfor Stage 2 complaints reported in the same period in 2013/14.

The decrease in performance is being addressed by Departmental Management Teams who consider complaints as astanding item at their regular meetings. Improvements have also been made to the Complaints Management System togenerate automated prompts when new complaints are recorded. In respect of Stage 2 Complaints, those that exceeded the20 day response target were particularly complex and complainants were notified of the reasons for the extensions to timerequired to complete the consideration of their complaint.

6.8

22.3

8.8 10.4

28.033.0

41.0

33.8

0.05.0

10.015.020.025.030.035.040.045.0

Finance and CorporateSupport

Educational and SocialServices

Neighbourhood Services Cross Department East Ayrshire

Average number of days to respond

stage 1 stage 2

Page 20

BUSINESS BRIEFINGS

Period 2013/14 2014/15 Status

2014 24% 26%

2014 35% 35%

Period Target Result Status

Period 4 36.0% 37.5%

Period 4 27.5 days 25.3 Days

Period 4 11.5 days 8.4 Days

Period 4 74.0% 72.0%

Periods 1 - 4 - 28

Business Briefing

Dog fouling complaints; the number of fixed penalty noticesissued.

Percentage of trading standards consumer complaintscompleted within 14 days.

Educational and Social Services

Percentage of S5 pupils achieving 3 or more awards at SCGFLevel 5 (Higher)Percentage of S6 pupils achieving 3 or more awards at SCGFLevel 5 (Higher)

Key Points:

Finance and Corporate Support

Percentage of Council Tax received.Benefits administration. Average time to process a new benefitclaim. (YTD)Benefits administration. Average time to process a change incircumstances claim.

The percentage of S5 pupils achieving three or more awards at SCQF Level 6 has increased from 24% in 2013 to26% in 2014, this is the best set of results recorded over the last 5 years with an overall positive trend being notedbetween 2010 and 2014 up +4 percentage points.

The percentage of S6 pupils achieving three or more awards at SCQF Level 6 has remained the same at 35% in2014 when compared to 2013, this is the best set of results recorded over the last 5 year period with an overallpositive trend being noted between 2010 and 2014 up 6 percentage points.

A full, and more detailed analysis will be reported to Cabinet in the near future as part of the Council's StrategicPriorities performance reporting framework.

The Scottish Government has legislated through the Children and Young Peoples (Scotland) Act 2014 to increasethe provision of early learning and childcare for families in Scotland. The additional early learning and childcareservices have been made available to improve outcomes for children, in particular those from disadvantagedbackgrounds; to support parents to work, provide economic security for their families and routes out ofunemployment and poverty; and, to support parents with the costs of early learning and childcare.

The Children and Young People (Scotland) Act 2014 places a statutory duty on local authorities to provide anadditional 600 hours of early learning and childcare services for the following eligible groups: children aged 3 and 4years (August 2014); children aged 2 years who are looked after, or who are subject to a kinship care order; or whohave a parent appointed guardian (August 2014) ; and children aged 2 whose parents are in receipt of certain out ofwork benefits (31 October 2014)

East Ayrshire Council, Early Learning Service commenced the implementation of the additional service from the 18August 2014.

The annual East Ayrshire play day organised by East Ayrshire Councils, Vibrant Communities Service and the EastAyrshire Community Play Forum took place on Wednesday 6th August 2014 in Kay Park, Kilmarnock. The eventforms part of National Play Day and promotes the importance of play in children’s lives and celebrates children’sright to play as enshrined in the UN Convention (Article 31). The free event attracted more than 7,000 people fromacross East Ayrshire and beyond and offered families attending the opportunity to take part in a wide range of funactivities. The events available included arts and crafts, face painting, bouncy castles, quad biking, rodeo bull, giantgames, early year’s activities, mud slides ,water activities, den building, wigwam making, tyre crates, canoeing,climbing, crate climbing as well as commonwealth games taster sessions in sports like rugby, judo, gymnastics,cycling, hockey and “It’s a knockout”. Numerous community groups came out to support the event such as theCVO, Sky Project, Cedar project, Rotary Clubs, Credit Union, Victim Support, Tenants and Residents Federationsand Energy Advice groups to name a few. The event promotes the importance of engagement with communities andfamilies and well as a sense of community spirit and belonging.

Page 22

Period Target Result Status

Period 4 6.0% 8.2%

Period 4 850,000£ 1,303,111£

Period 4 390 476

Key Points:

Current Tenant Arrears as a percentage of the net amount ofrent due in the year

Key Points:

Business Briefing


Total amount of current tenant arrears

Number of void housing properties

The percentage of Council Tax received by the end of Period 4 was 37.5%; which is on target. The increase at thisstage is minimal. However, work is continuing to contact taxpayers to make arrangements for payment and toencourage future payments by direct debit to prevent debt accumulating.

The average time to process a new benefit claim and the average time to process a benefit change in circumstanceshave improved and are on target. the figures shown detail the year to date position, with the month of Julyperformance being an average of 25.5 days and 9.4 days for new claims and change in circumstances respectively.Improvements are as a result of revised procedures being put in place, vacancies being filled and staff trainingprogrammes increasing productivity, particularly for less experienced staff.

The percentage of Trading Standards consumer complaints which were completed within 14 days was 72.0%improving on the Period 3 figure of 70.9%. This measure is within tolerance. The service will continue to work toprovide further improvements in this area.

The increase in fixed penalty notices and formal written warning notices issued in respect of dog fouling is a directresult of a targeted focus on irresponsible dog owners. The approach is being used to address public concern aboutdog fouling, littering and fly tipping. It is intended that this exercise will raise the profile of the problem in the area;educate owners; deter complacency and achieve environmental improvements. The comparative figure for period 1- 4 in 2013/14 was 10 notices.

Current performance for tenant arrears is higher than the target of 6% and higher than 5.7% which was theperformance at 31 March 2014. The performance is above cyclical trends and recognises the adverse effects on thelocal economy of national economic trends and the impact of welfare reform. East Ayrshire has delivered favourablehistorical performance with regard to the current tenant rent arrears performance indicators over a number of years.In 2012/13 Audit Scotland benchmarking indicates that East Ayrshire Council had a ranking of 7th compared withthe other Scottish Local Authorities and at 4.7% was well below the Scottish local authority average of 6.8%. AtPeriod 4 there were 5,577 tenants with current rent arrears with 754 tenants with over £500 of rent arrears. Thisequates to an average of £237 arrears per tenant in arrears, a lower average arrears per tenant than £240 at 31March 2014. While the Under-occupation charge will, for the most part, be covered by Discretionary HousingPayment in the current year, arrears accrued in the previous year still need to be addressed. The Service hasrecently recruited 4 Housing Officers. Their remit will include dealing with clients who are being affected by theunder-occupancy charge.

Average re-let performance for all stock is 60 days compared with 50 days at 31 March 2013. Average not lowdemand performance is 32 days compared with 30 days at year end and average low demand re-let performance is92 days compared with 80 days for 2013/14. The number of void houses is 476, an increase from 398 at 31 March2014 (although currently 101 voids are to be demolished). If these are excluded the number of void properties atperiod 4 is 375 (171 are routine and 204 are long term voids). Void rent loss is 2.6% up from 2% at 31 March 2014.A review of the Council's housing stock will identify properties for which demand is low or non-existent andrecommend them for potential demolition.

Page 23

RISKS

Risk

No.Risk Risk Owner Overall Risk

Economic climate - The level of grant funding available in the future will not support existing service levels.

We consider the overall risk rating to be High as there remains significant uncertainty within the United Kingdom as to thelonger term impact of the Comprehensive Spending Review, recent Budget announcements and the ongoing austeritymeasures. Projections included in the Transformation Strategy Update Report presented to Cabinet on 11 December 2014,anticipate a budget gap of £1.017m by 2016/17 following the approval of a number of further savings, and taking intoaccount all previously approved efficiencies and workstreams.Reviews of existing structures / financial controls / service delivery models are ongoing to maintain strong financial

management across the Council. The Council's transformation strategy is designed to ensure a sustainable platform from

which to deliver services. Measures to close the projected budget gap will mitigate this risk. Officers have analysed recent

budget announcements at UK and Scottish levels to ascertain the local impact of these. Information on additional budget

pressures from demographic changes has also been gathered and where appropriate incorporated into the budget strategy.

The Transformation Plan Strategic Board meets regularly to challenge progress being made in delivery of the programme

and consider opportunities to close the remaining gap. Funding forecasts continue to be modelled and the 2015/16 budget

preparations have commenced with a view to updating the current analysis to allow the budget to be set in December.

Red

Economic climate - The current economic position will have an impact on the income collected by the council

We consider the overall risk at present to be High as recent and imminent reforms to benefits, and job losses in the area,most recently in the coal industry, could have a severe impact across Council services.The anticipated downturn has been reflected in Council budgets with an income contingency identified for 2014/15 and

beyond. The anticipated impact of welfare reform is being monitored on an ongoing basis with an update report considered

by Cabinet on 23 April 2014. The HRA budget continues to be reviewed given the recent changes to Discretionary Housing

Payments and the impact this will have on rent arrears due to under occupancy. It is anticipated that the previously expected

increase in bad debt provision, caused by the impact of under occupnacy, will no longer be required.

Red

Economic climate - The local economic position will have a direct impact on the residents of East Ayrshire and their demand for council services.

We consider the overall risk to be High as recent and imminent reforms to benefits, and job losses in the area will have asevere impact on residents and indeed across Council services.Welfare Reform is having an acute impact on East Ayrshire residents. Work is progressing to ensure support mechanisms

are in place through Financial Inclusion and other appropriate services including CAB. Officers have identified larger

premises for the Bureau to allow some capacity issues to be addressed. In addition, a senior officer group comprising

officers from social services, housing, finance and communications meet regularly to plan an appropriate response in terms

of service delivery. The recent changes to Discretionary Housing Payments regulations has enabled addtional payments to

be awarded to those tenants affected by under occupancy and who apply for the payments, and is mitigating against

potential rent arrears.

Red

We consider the overall risk to be High in terms of financial, reputational and economic risk factors. Individual sites are largein size with costs likely to be significant - liquidators are seeking to minimise their residual liabilities. The Council has noliability for the restoration of the sites and is assessing implications which may arise in respect of duties under theEnvironmental Protection Act to ensure that hazardous areas are made safe.Work is progressing at a national level through a Scottish Government led task force and the Council has significant

representation on this group. Legal and specialist engineering advice has been commissioned to support these efforts. An

update report was considered by Council in June 2014 summarising work to date, and outlining future arrangements in

respect of open cast coal mining in East Ayrshire. Members will continue to receive updates on risks as information

becomes available. Income from bonds has now started to be recieved by the Council to support future restoration works.

Red

The overall risk is Medium recognising that there has been an increase in focus on Health and Safety. Failure in this areawould have significant consequences for employees, service users and the Council.We have arrangements in place to manage health and safety across the Council which are kept under review. The Chief

Executive's Health and Safety Strategy Group, which includes Trade Union representation, continues to keep under review

both policy and relevant and related operational matters. Regular Safety Flashes continue to be issued to ensure

awareness across the organisation of key Health and Safety issues.

Amber

The overall risk is Medium - the impact for individuals could be severe and would adversely impact on the Council’s

reputation.Targeted service redesign including work force and organisational development continues across the Council and partner

agencies to support a continuous improvement agenda. The Chief Officer Group maintains an ongoing strategic review of

this important area.

Amber

We consider the overall risk to be Medium as there remains an element of uncertainty in respect of the total expected cost ofresolving these, and potential future claims.A reasonable provision has been identified to fund claims which are being managed by the Council with its external

advisers. The 2013/2014 year end review resulted in an increase to the provision to reflect legal fees being charged at

settlement. This is now subject to external audit as part of the normal audit process.

Amber

The overall risk is Medium as the nature of the activity is such that new attacks are increasingly likely.The overall risk continues to be Medium as the nature of the activity is such that new attacks are increasingly likely.Enhanced procedures are in place to prevent and detect fraud, information received from colleagues in other areas and anti-fraud networks is assessed as received. This includes participation since June 2014 in a scheme hosted by the NationalAnti-Fraud Network (NAFN) to deter attacks on creditor systems through NAFN as a co-ordinating reporting point with thebanks with the objective of closing down recipient bank accounts used by potential or actual fraudsters. NAFN was set up15 years ago to provide a wide spread of data services to members, to support them in the protection of the public purse. Itis the largest shared service operating in local government with 81% of UK councils signed up to the service. The Head ofFinance chairs a Strategic Anti-Fraud Steering Group which is reviewing and ensuring a corporate approach is taken. Closeliaison is being maintained with Police Scotland with regular meetings and ongoing communication including consideration ofa number of live cases.

Amber

The overall risk is Medium as failure to manage the consolidated impact of the current range of internal and external changeprogrammes could be significant.The consolidated impact of the current range of internal and external change programmes is significant and failure tomanage the programme effectively represents a financial and service risk. The Corporate Management Team,Transformation Plan Strategic Board and Corporate Risk Advisory Group are all alert to the consolidated impact of changeprogrammes. It will continue to be important for individual project leads to maintain specific risk registers and to highlight anychange in the level of risk, and for the CMT to ensure that sufficient resource and capacity exists to maintain organisationalresilience as change is implemented.

Amber

Executive Director of

Finance and

Corporate Support


Finance and

Corporate Support

7

Business Risk - the Council is unable to properly manage the impact of multiple internal

and external change programmes.


Finance and

Corporate Support

5

Financial Risk - Equal Pay and Equal Value Claims will have a significant financial

impact on the Council

6

Fraud and misappropriation

of council resources - the Council is faced with financial

loss through fraudulent activities.

1aExecutive Director of

Finance and

Corporate Support


Finance and

Corporate Support


Finance and

Corporate Support

1b

1c

Acting Executive

Director of

Neighbourhood

Services

Acting Executive

Director of

Neighbourhood

Services

4

Protection of Children and

Vulnerable Adults - individuals are not adequately

protected.

Director of Health

and Social Care

3

Health and Safety - implementation of new arrangements fails to

adequately address risk.

2

Financial Risk – Certain Liabilities in relation to opencast coal sites may fall to the Council to resolve

Page 1

Documents

EAST AYRSHIRE COUNCILdocs.east-ayrshire.gov.uk/CRPADMMIN/2012 AGENDAS... · 2014-10-02 · EAST AYRSHIRE COUNCIL . GOVERNANCE AND SCRUTINY – 9 OCTOBER 2014 EAST AYRSHIRE PERFORMS