Agenda Document Pack - Finance and Resources Committee - 07/06/2023
Perth and Kinross Council · 7 June 2023
Back to Finance and Resources Committee — 7 June 2023 and its agenda
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Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 31/05/2023 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 07 June 2023 at 14:00. If you have any queries please contact Committee Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Stewart Donaldson (Convener) Councillor Grant Laing (Vice-Convener) Bailie Chris Ahern Bailie Alasdair Bailey Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor Angus Forbes Provost Xander McDade Councillor Tom McEwan Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 66
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Finance and Resources Committee Wednesday, 07 June 2023 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES/SUBSTITUTES 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF THE FINANCE AND RESOURCES COMMITTEE OF 26 APRIL 2023 FOR APPROVAL (copy herewith) 5 - 8 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 23/176) 9 - 10 5 AUTHORITY TO WRITE OFF DEBTS AND OBSOLETE STOCK Report by Head of Finance (copy herewith 23/174) 11 - 30 6 SERVICE ANNUAL PERFORMANCE REPORT 2022/23 CORPORATE AND DEMOCRATIC SERVICES Report by Chief Operating Officer (copy herewith 23/175) 31 - 66 Page 3 of 66
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FINANCE AND RESOURCES COMMITTEE Minute of hybrid meeting of the Finance and Resources Committee held in the Council Chamber, 2 Hight Street, Perth on Wednesday 26 April 2023 at 2.00pm. Present: Councillors S Donaldson and G Laing, Depute Provost A Parrott, Bailie A Bailey, and Councillors P Barrett, B Brawn (substituting C Shiers), A Chan, D Cuthbert, E Drysdale, J Duff, A Forbes, I James (substituting for Bailie C Ahern) Provost McDade, T McEwen, J Rebbeck and C Stewart. In Attendance: T Glen, Chief Executive; S Devlin, Executive Director (Education and Children’s Services); B Renton, Executive Director (Communities); C Mailer (Chief Executive’s Service); G Boland (Education and Children’s Services); M Butterworth, C Guild, F Crofts, S Coyle, J Ferguson, C France, S Rice-Jones and F Robertson (Communities); D Mitchell (Health and Social Care Partnership), K Donaldson, L Simpson, S MacKenzie, S Walker, L Brady, K Fraser, J Jennings, P Johnstone, K Molley, A Brown and M Pasternak (all Corporate and Democratic Services). Apology: Bailie C Ahern and Councillors C Shiers Councillor S Donaldson, Convener, Presiding. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting and apologies were noted above. 2. DECLARATIONS OF INTEREST There were no declarations made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF PREVIOUS MEETINGS The minute of meeting of the Finance and Resources Committee of 1 February 2023 was submitted and approved subject to the following amendment: • After declaring an interest in items 9 and 10, Bailie A Bailey left the meeting after item 8. 4. OUTSTANDING BUSINESS STATEMENT Resolved: (i) The contents of the Outstanding Business Statement, be noted. (ii) The removal of all completed actions from the Outstanding Business Statement, be agreed. 3 Page 5 of 66
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5. TRANSFORMATION AND CHANGE C Mailer, Executive Lead (Strategic Planning and Transformation) delivered a slide-based presentation which provided an update on the Transformation and Change Programme 2022-27. Members questions were answered. The Convener thanked C Mailer for her informative presentation. 6. REVENUE BUDGET 2022/23 – UPDATE NO.4 There was submitted a report by Head of Finance (23/120) providing an update on progress with the 2022/23 General Fund Revenue Budget based upon the January 2023 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. Amendment (Bailie A Bailey and Councillor A Forbes) Section 10.2 is deleted (such that the £1.289M remains in unearmarked reserves). Section 11.8 is updated to the effect that the funding of £250k comes instead from unearmarked reserves. Insert a new resolution “Committee request a report giving the rationale and full background on the future plans for the utilisation of the funding in the earmarked reserve for children and young people’s residential care which outlines the pressures faced and provides a recommendation on and justification for any further funding required. THERE WAS A 15 MINUTE RECESS AND THE MEETING RECONVENED AT 15.46. After further discussions, Bailie A Bailey and Councillor A Forbes withdrew their amendment. Amendment (Councillors C Stewart and J Duff) That the constraints on the “Events – Licensing” reserve be broadened so that community groups and charities can apply into the fund for new licences, in order to support community events and the recovery of groups, charities and communities from Covid. Councillors S Donaldson and G Laing agreed to incorporate Councillors C Stewart and J Duff amendment into their motion. Resolved: (i) The contents of Report 23/120, be noted. (ii) The projected outturn for General Fund Services, as set out in Section 5 of Report 23/120 and Appendices 1 and 2 to this report, be noted. Page 6 of 66
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(iii) The projected outturn for Corporate Budgets, as set out in Section 6 of Report 23/120, be noted. (iv) The Health & Social Care projected outturn, as summarised in Section 6 of Report 23/120 and Appendix 3 to this report, be noted. (v) The projected outturn for the Housing Revenue Account, as summarised in Section 7 of Report 23/120 and Appendix 4 to this report, be noted. (vi) The adjustments to the 2022/23 Management Revenue Budget detailed in Appendices 1-6 and Section 8-10 of Report 23/129, be approved. (vii) The adjustments to the 2023/24 Management Revenue Budget detailed in Section 11 and Appendix 7 of Report 23/120, be approved. (ix) It be agreed that the ‘Events-Licensing’ reserve be broadened so that community groups and charities can apply into the fund for new licences, in order to support community events and the recovery of groups, charities and communities from covid. 7. COMPOSITE CAPITAL BUDGET 2022/28 & HOUSING INVESTMENT PROGRAMME 2022/27 – MONITORING REPORT No.4 There was submitted a report by the Head of Finance (23/121) providing a summary position to date for the 6-year Composite (General Fund) Capital Budget for 2022/23 to 2027/28 and the 5-year Housing Investment Programme 2022/23 to 2026/27 and seeking approval for adjustments to the programmes. Resolved: (i) The content of report 23/121, be noted. (ii) The proposed adjustments to the six-year Composite Capital Budget 2022/23 to 2027/28, as set out in Sections 5 and 6 of Report 23/121 and summarised in Appendix I and II to the report, be approved. (iii) The proposed adjustments to the Housing Investment Programme Budget 2022/23 to 2026/27, as set out in Section 7 of Report 23/121 and summarised in Appendix III to the report, be approved. (iv) The progress with the delivery of major Capital projects as summarised in Appendix IV of Report 23/121, be noted. 8. TREASURY ACTIVITY AND COMPLIANCE REPORT 2022/23 QUARTER 4 There was submitted a report by the Head of Finance (23/122) updating the Committee on Treasury Activity for the quarter ending 31 March 2023, and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS); Investment Strategy and Prudential Indicators. Resolved: (i) The contents of Report 23/122, be noted. (ii) The continuation of the Council’s 2022/23 Permitted Investments until 10 May 2023, be approved. Page 7 of 66
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FINANCE AND RESOURCES COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 23/176) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Action Update Lead Officer /Service Action due Action Expected 15. 26 April 2023 Revenue Budget 2022/23 – Update No.4 In relation to the Integration Joint Board, assurance to be provided around spending on Older Peoples Care. The 3-Year Workforce Plan Update that was considered at the IJB on 29 March 2023 was circulated to all members. COMPLETED Donna Mitchell 7 June 2023 7 June 2023 4 Page 9 of 66
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PERTH & KINROSS COUNCIL Finance & Resources Committee 7 June 2023 AUTHORITY TO WRITE OFF DEBTS AND OBSOLETE STOCK Report by Head of Finance (Report No. 23/174) 1. PURPOSE 1.1 This report seeks approval to write off identified debts in respect of Sales Ledger; Council Tax (including Water & Waste Water charges); Non-Domestic Rates; Irrecoverable Rents; Housing Benefit Overpayments and Car Park Trading Account Income. In addition, approval is sought to write off obsolete stock and write off other miscellaneous balances. 2. RECOMMENDATIONS 2.1 The Committee is requested to: (i) approve that all amounts detailed in section 4 and the attached appendices to this report are written off for accounting purposes. (ii) note that whilst these amounts are written off, the files are not closed, and every effort will be made to collect outstanding debt where recovery is cost effective. (iii) approve the removal of charges for services for people seeking asylum for a further year – see section 5. 3. BACKGROUND 3.1 In order that the appropriate entries may be made in the Council’s Annual Accounts for the year ending 31 March 2023, it is necessary to consider the write off of debts, obsolete stock and other miscellaneous balances. 3.2 To accommodate year end accounting processes and timescales, some of the Council’s systems have already been amended to reflect the proposed adjustments, pending approval by the Committee of the recommendations within this report. 3.3 The debts included within this report have progressed through the Council’s debt recovery process using the various legislative procedures available for each category of debt to collect the amounts outstanding. The amounts that remain due, after exhaustive recovery procedures have been undertaken, are included within this report for write off as a last resort. Should any additional 5 Page 11 of 66
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information be received, the debt will be written back. Every effort is made to collect outstanding debt where it is cost effective to recover. 3.4 This report includes all the recommended write off and on amounts for financial year 2022/23. 3.5 The Council continues to support engagement with customers throughout the debt recovery process, particularly as a consequence of current increases in the cost of living. For individuals and families, this includes sign posting customers to the Council Tax and Housing Benefits; Welfare Rights and Tenancy Support teams to ensure that they have access to appropriate advice and support in claiming entitlements and maximising household income. 4. PROPOSALS Sales Ledger 4.1 Appendix 1 details Sales Ledger debt which it has not been possible to collect for various reasons. Sales ledger debt relates to outstanding income from a number of fees and charges levied for Council Services including Commercial Waste and Residential and Non-Residential Care. Many of these debts have been placed with Sheriff Officers, including instances where debtors are deceased or untraceable. 4.2 The Council has introduced several measures to maximise income collection including “set-off” (which, in certain circumstances, allows the Council to apply customer debt against payments due by the Council) and encouraging customers to pay at point of sale, therefore, reducing cost of collection and the level of debt. Appendix 1 sets out the debt recovery process for Sales Ledger debt. 4.3 After consultation with Services who raised the original invoices, it is recommended that the Council write off £268,887.05 as shown in Appendix 1. This amount includes debt relating to ten financial years from 2013/14 through to 2022/23. A comparison by Service between the current and the previous financial year is shown below. Write off By Service Total 2022/23 Total 2021/22 Corporate & Democratic Services 3,000.00 312.00 Education & Children's Services 20,446.12 30,862.23 Health & Social Care 80,046.04 92,644.41 Communities 165,394.89 157,892.27 268,887.05 281,710.91 4.4 The total provision for bad and doubtful debts included within the Council’s Annual Accounts for Sales Ledger debt at 31 March 2022 was £1,032,274. The total value of Sales Ledger invoices raised in financial year 2022/23 Page 12 of 66
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totalled approximately £23 million and the proposed write off for all years represents approximately 1.2% of this amount. 4.5 In most instances, accounts raised prior to 30 September 2021 carry a 50% provision whilst those raised prior to 31 March 2021 are fully provided for. Where debts fall into this category, part or all of the amount to be written off will be met from the provision. 4.6 Where no provision or only partial provision has previously been made, the balance of the write off will be charged against the issuing Service’s Revenue Account for 2022/23. Council Tax and Non-Domestic Rates 4.7 Appendices 2 and 3 set out the debt recovery processes for Council Tax and Non-Domestic Rates respectively. To maximise levels of collection and reduce collection costs, the Council continues to promote the use of electronic forms and payment by Direct Debit. Approximately 77% of Council Tax customers currently pay by Direct Debit. 4.8 Appendix 2 details Council Tax (including Water and Waste Water Charges) where the sum of £917,290.81 has been deemed uncollectable (£278,900.17) in 2021/22). There is an overall provision for bad and doubtful Council Tax debt of £15,670,037.23 as at 31 March 2022. 4.9 In the report for the previous financial year (2021/22), the recommended Council Tax write off was shown “net” of £278,900 of historic small value credit balances where the householder could no longer be traced for a refund. Following the ongoing review of historic balances, the recommendation in this report includes £436,909 of debt balances where the debtor can no longer be traced. This has contributed to the movement between years in relation to the write off of Council Tax debt. 4.10 The total amount of Council Tax billed for financial year 2022/23 was £122 million (including Water and Waste Water Charges), with an in-year collection rate of 97.95% (97.17% in 2021/22). This is a high collection rate which is expected to be amongst the best in Scotland in 2022/23. 4.11 The proposed write offs relate to the last 30 financial years during which time the Council has raised over £2 billion in Council Tax and has continually delivered high collection levels. 4.12 Appendix 3 details Non-Domestic Rates income totalling £56,014.88 which it has not proved possible to collect for the reasons shown in the appendix (£269,612.49 was written off in 2021/22). 4.13 In terms of write offs relating to Non-Domestic Rates the costs are met by the Scottish Government through the “pool” mechanism. The provision for bad and doubtful Non-Domestic Rates debt was £675,819.26 at 31 March 2022. Page 13 of 66
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4.14 The amount recommended to be written off for all years represents approximately 0.1% of the £56.1 million of Non-Domestic Rates income raised in financial year 2022/23. The in-year collection rate for Non-Domestic Rates was 97.91% for 2022/23 (94.29% in 2021/22). 4.15 These proposed write offs relate to the last 8 financial years during which time the Council has raised over £395 million in Non-Domestic Rates and has also continually delivered high collection levels. 4.16 Appendices 2 and 3 also include accounts where the balance is for a small value either in debit or credit (£0.99) for Council Tax and Non-Domestic Rates. It is uneconomical to collect or refund/transfer such small amounts and, therefore, an automated process is in place to adjust these accounts. Housing Revenue Account (Rents) 4.17 Appendix 4 details rent charges raised in respect of former tenants and court expenses incurred which it has not been possible to collect for the reasons set out. 4.18 A comprehensive review of former tenant arrears has been undertaken within Communities which has identified a requirement to write off £599,701.65 (including £36,727.07 of sequestrations) of outstanding housing rent (£363,100.10 was written off in 2021/22). The provision for bad and doubtful Housing Revenue Account debt was £1,959,568 as at 31 March 2022. The in-year collection rate for Housing Rents was 98.61% for 2022/23 (99.08% in 2021/22). 4.19 Authority is also requested to write off outstanding arrears on garage sites and lock ups of £1,758.29 (£2,955.41 was written off in 2021/22). 4.20 The overall proposed write off for the Housing Revenue Account is £601,459.67 (including sequestrations). The total rent charge raised in 2022/23 was £30,074,461.60, with the proposed write off for all years representing 2% of this figure. Housing General Fund 4.21 Appendix 5 details charges for those housing services administered through the Council’s rent system, provided to Homeless clients placed in temporary accommodation. These tenancies have ended, and it has not proved possible to recover outstanding income, in part, due to the vulnerable nature of the client group. 4.22 Authority is requested to write off £123,654.38 (including £259.22 for sequestrations) for the period 1 March 2022 to 28 February 2023 (£206,522.09 was written off in 2021/22) for rent and service charges for housing services provided to homeless households placed in temporary accommodation. The provision for bad and doubtful debts in relation to this activity was £576,835.23 as at 31 March 2022. Page 14 of 66
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4.23 The majority of the write off for temporary accommodation, 58.06% (£71.655.01) is, in the main, due to arrears which accrued when rents and service charges were higher than at present and this debt has now become prescribed in the current financial year. A debt becomes prescribed where “the debt is too old to be recovered and barred by statute (5 years or over)” 4.24 Authority is also requested to write off Housing Benefit overpayment debt of £36,763 for 2022/23 (£67,126 was written off in 2021/22) which it has not proven possible to recover. The provision for bad and doubtful Housing Benefit overpayment debt was £745,682 as at 31 March 2022. The total value of Housing Benefit overpayments in 2022/23 was approximately £351,000 and the proposed write off value for all years represents 10.47% of this amount. The recovery of Housing Benefit payments, however, remains an ongoing process and £347,000 was recovered in 2022/23 which includes former debt. Car Park Trading Account Income 4.25 Authority is requested to write off £220,341 in respect of Car Park Trading Account Income (£103,873 was written off in 2021/22). This amount equates to all amounts charged and still outstanding in relation to the period prior to October 2021. The provision for bad and doubtful Car Park Trading Account debt was £236,370 as at 31 March 2022. The proposed write off is equivalent to 12.92% of the number of Penalty Charge Notices issued during 2021/22 (19.66% in the previous financial year). Stock Write Offs 4.26 Authority is requested to write off obsolete stock of £2,000 in respect of vehicle parts at Friarton Depot (£3,000 was written off in 2020/21). Full provision has been made for this write off. Outstanding Balances 4.27 Authority is requested to write off outstanding balances over various accounts. These balances relate to transactions before 31 March 2021. The net amount of the outstanding balances is a write off totalling £7,211.48 (£10,928.30 was written on in 2021/22). 5. SUPPORT FOR PEOPLE SEEKING ASYLUM 5.1 The Council remains committed to providing a safe and welcoming place for people who are seeking asylum and refugees. To support this, for 2021/22 it was agreed that charges for all adult care and support services for people seeking asylum with no recourse to public funds and all refugees within Perth and Kinross should be waived. It was also agreed that this position would be reviewed annually. 5.2 The demographic of people coming to Perth and Kinross has and continues to be predominantly younger adults, some with children, and it is anticipated that Page 15 of 66
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this will continue, resulting in minimal additional demand for adult care and support services. The costs of this proposal are, therefore, nominal. 5.3 It is proposed that this position is maintained for 2023/24 and reviewed for 2024/25. 6. CONCLUSION 6.1 In all the above cases it has either not been possible to recover outstanding monies due to the Council or to utilise stocks held by the Council. The write off debt is only recommended after all means of recovery have been exhausted. Although the amounts will be written off for accounting purposes, the files are not closed, and every effort will be made to collect the outstanding debt where new information becomes available and where recovery is cost effective. Approved Name Designation Contact Details Lynn Law Finance chxfinance@pkc.gov.uk Approved Name Designation Date Stewart MacKenzie Head of Finance 30.05.2023 Karen Donaldson Chief Operating Officer 30.05.2023 Page 16 of 66
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Strategic Plan Yes Resource Implications Financial Yes Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Strategic Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 17 of 66
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3. Assessments Equality Impact Assessment 3.1. Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1. The Chief Executive, Executive Directors and the Chief Operating Officer have been consulted in the preparation of this report. 2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. Page 18 of 66
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3. APPENDICES Appendix 1 – Sales Ledger debt written off in financial year 2022/23 by year and reason. Appendix 2 – Council Tax debt written off in financial year 2022/23 by year and reason. Appendix 3 – Non Domestic Rates debt written off in financial year 2022/23 by year and reason. Appendix 4 – Irrecoverable Rents written off in financial year 2022/23 by year and reason. Appendix 5 – Homeless debt written off in financial year 2022/23 by year and reason. Page 19 of 66
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Appendix 1 YEAR GONE AWAY NO FUNDS UNECONOMICAL TO COLLECT DECEASED (NO FUNDS) HCC DISCRETION PANEL SEQ/LIQ OR REC DEBT PRESCRIBED SERVICE REQUEST TOTAL VAT EX VAT VALUE TOTAL DEBT 2013/14 708.65 708.65 0.00 708.65 2014/15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2015/16 0.00 0.00 0.00 0.00 0.00 0.00 1,323.50 0.00 1,323.50 222.62 1,546.12 2016/17 542.70 8,889.35 160.00 0.00 0.00 0.00 8,118.80 0.00 17,710.85 71.00 17,781.85 2017/18 174.50 8,853.48 718.33 850.28 0.00 2,508.77 2,028.07 0.00 15,133.43 258.69 15,392.12 2018/19 6,266.01 11,492.29 581.82 338.11 0.00 368.50 0.00 0.00 19,046.73 1,273.98 20,320.71 2019/20 3,840.46 37,731.80 1,240.17 27,838.48 0.00 740.01 0.00 0.00 71,390.92 4,629.57 76,020.49 2020/21 7,433.88 27,839.92 3,274.63 4,175.76 0.00 1,283.75 0.00 0.00 44,007.94 4,573.64 48,581.58 2021/22 12,787.86 51,128.14 6,711.69 5,130.01 0.00 375.30 0.00 0.00 76,133.00 6,267.69 82,400.69 2022/23 1,846.76 463.76 209.82 2,059.25 0.00 661.89 0.00 0.00 5,241.48 893.36 6,134.84 TOTAL 32,892.17 146,398.74 12,896.46 40,391.89 0.00 5,938.22 12,179.02 0.00 250,696.50 18,190.55 268,887.05 The Council can claim back VAT due to the VAT Bad debt relief (The Council cannot claim for the first 6 months, however the Council can claim back 4 years prior to this to 30 September 2018). Sales Ledger Debt Recovery Process (excluding Commerical Rent) Day 1 - Invoice Issued If not paid, Day 29 - Final Notice issued If not paid, Day 44 - 7 Day letter issued Thereafter, each case is looked at individually and most cases are then passed to either the Sherriff Officer or Legal Services to collect. Commercial Rent Debt Recovery Process Day 1 - Invoice Issued (min 4 weeks prior to due date) Day 29 - reminder sent to first time defaults Day 29 - legal letter issued to persistent late payers Day 38 - If no payment made, surveyor contacts tenant to discuss. Day 44 - Thereafter, each case is looked at individually and most cases are then passed to either the Sherriff Officer or Legal Services to collect. Day 44 - Interest will be added, where appropriate to late rent. Sales Ledger Debt Written off in financial year 2022/23 by year and reason 5 Page 21 of 66
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Appendix 2 Financial Year Statutory Additions Deceased - No Estate No Trace Sequestration etc. Small Balances Uneconomical/ Unable to Pursue/Collect Council Tax Reduction Official Error Total 1993 £103.48 -£503.17 £1,385.38 £0.00 £0.60 £0.00 £0.00 £986.29 1994 £323.03 -£496.96 £3,113.87 £0.00 £0.28 £0.00 £0.00 £2,940.22 1995 £331.98 -£170.52 £3,057.62 -£97.88 -£0.12 £0.00 £0.00 £3,121.08 1996 £824.32 -£43.30 £8,122.13 £353.54 -£1.54 £0.00 £0.00 £9,255.15 1997 £891.35 £280.60 £8,594.03 £196.22 -£1.63 £0.00 £0.00 £9,960.57 1998 £798.63 -£89.35 £6,847.62 £0.00 -£3.34 £0.00 £0.00 £7,553.56 1999 £1,223.32 £252.83 £14,245.04 £689.50 -£4.73 £0.00 £0.00 £16,405.96 2000 £3,206.75 £1,090.29 £35,712.51 £817.25 -£2.26 £325.45 £0.00 £41,149.99 2001 £5,385.21 £1,167.18 £53,479.70 £1,213.69 -£0.19 £0.00 £0.00 £61,245.59 2002 £5,490.66 £2,369.14 £34,121.12 £3,195.83 £4.82 £8.67 £0.00 £45,190.24 2003 £3,506.17 £4,218.13 £23,422.81 £1,050.47 -£3.03 -£46.25 £0.00 £32,148.30 2004 £2,300.67 £4,249.23 £5,981.93 £1,965.65 -£10.55 £0.00 £0.00 £14,486.93 2005 £1,301.36 £4,243.25 £3,279.54 £5,508.27 £1.48 £0.00 £0.00 £14,333.90 2006 £1,351.50 £4,507.82 £2,416.00 £4,838.36 -£4.71 £0.00 £0.00 £13,108.97 2007 £1,882.00 £6,442.44 £3,703.00 £7,099.08 -£23.10 -£295.40 £0.00 £18,808.02 2008 £2,278.93 £7,410.55 £3,547.98 £6,043.83 -£0.36 £0.00 £0.00 £19,280.93 2009 £1,717.02 £4,683.70 £2,180.14 £5,394.04 -£1.27 £0.00 £0.00 £13,973.63 2010 £1,917.55 £4,348.96 £3,749.21 £6,655.60 -£4.09 £649.50 £0.00 £17,316.73 2011 £2,145.05 £7,231.38 £6,305.61 £7,066.14 -£5.28 £0.00 £0.00 £22,742.90 2012 £2,708.11 £6,752.05 £8,582.24 £6,635.24 -£8.29 £173.52 £0.00 £24,842.87 2013 £2,494.61 £6,408.94 £6,103.68 £8,483.29 -£9.50 £908.23 £178.33 £24,567.58 2014 £2,585.24 £5,074.29 £9,257.34 £7,313.63 -£5.97 £685.56 £0.00 £24,910.09 2015 £3,230.02 £6,984.75 £7,087.58 £7,298.60 -£15.11 -£112.19 £0.00 £24,473.65 2016 £3,638.65 £5,210.09 £12,094.12 £12,963.22 -£2.21 -£0.12 £33.51 £33,937.26 2017 £5,961.97 £9,594.83 £21,314.39 £20,342.50 -£52.23 £0.00 £333.29 £57,494.75 2018 £7,302.88 £10,111.23 £43,548.43 £15,635.46 -£5.20 £69.79 £337.29 £76,999.88 2019 £14,879.72 £14,050.77 £80,590.18 £21,720.48 -£4.42 £797.09 £1,031.59 £133,065.41 2020 £15,883.86 £12,683.21 £49,107.11 £33,963.46 £1.89 £636.51 £1,290.00 £113,566.04 2021 £10,289.84 -£10,693.97 -£26,700.06 £34,984.74 -£190.68 £70.37 £1,599.77 £9,360.01 2022 £2,675.51 £851.28 £2,658.75 £21,998.41 -£30.12 £591.92 £1,318.56 £30,064.31 Totals £108,629.39 £118,219.67 £436,909.00 £243,328.62 £380.86 £4,462.65 £6,122.34 £917,290.81 Council Tax Debt Recovery Process Day 1 - Bill Issued with instalment details If not paid, Reminder issued giving 14 days to pay If not paid,Summary Warrant applied for - 10% penalty applied, charge becomes payable in full If not paid, Sheriff Officer instructed to collect debt If not paid, Sheriff Officer serve a "Charge for payment" to allow diligence Council Tax Written-Off During Financial Year 2022/23 - Summary of Write-Off Reasons 5 Page 23 of 66
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Appendix 3 Financial Year Statutory Additions Deceased No Trace Sequestration, Liquidation etc. Ceased Trading Wrongly Rated Small Balances Uneconomical to Pursue/Collect Total 2000-2014 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 -£1.18 -£18.28 -£19.46 2015 £43.28 £0.00 £434.36 £0.00 £432.79 £0.00 -£0.20 £0.00 £910.23 2016 £266.20 £0.00 -£491.69 £0.00 £2,231.70 £0.00 -£4.91 £0.00 £2,001.30 2017 £1,418.03 £107.18 -£85,096.63 £9,655.73 £15,075.60 £3,675.91 -£0.50 £0.00 -£55,164.68 2018 £7,819.85 £110.40 -£53,667.98 £50,044.71 £34,738.74 £10,235.44 -£0.36 £0.00 £49,280.80 2019 £15,231.85 £112.70 -£53,418.14 £53,032.87 £55,512.73 £15,141.00 £0.00 £0.00 £85,613.01 2020 £2,712.82 £0.00 -£25,440.96 £10,702.81 £12,050.84 £59,112.75 -£8.33 £0.00 £59,129.93 2021 £1,794.16 £0.00 -£15,845.12 £14,643.98 £5,550.83 £0.00 -£3.46 £0.00 £6,140.39 2022 £9,250.17 £0.00 -£189,643.16 £67,310.48 £21,203.82 £0.00 £2.05 £0.00 -£91,876.64 Totals £38,536.36 £330.28 -£423,169.32 £205,390.58 £146,797.05 £88,165.10 -£16.89 -£18.28 £56,014.88 Non-Domestic Rates Debt Recovery Process Formal recovery cannot take place until 30 September each year If not paid, Ratepayer must be 2 instalments in arrears, final notice is issued If not paid, Summary Warrant applied for - 10% penalty applied, charge becomes payable in full If not paid, Sheriff Officer instructed to collect debt If not paid, Sheriff Officer serve a "Charge for payment" to allow diligence Non-Domestic Rates Written-Off During Financial Year 2022/23 - Summary of Write-Off Reasons 5 Page 25 of 66
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Appendix 4 YEAR GONE AWAY NO FUNDS UNECONOMICAL TO COLLECT DECEASED (NO FUNDS) SEQUESTRATED DEBT PRESCRIBED TOTAL DEBT 2017/18 £0.00 £0.00 £0.00 £0.00 £0.00 11753.77 £11,753.77 2018/19 £6,149.78 £42,987.90 £17.33 £0.00 £0.00 £0.00 £49,155.01 2019/20 £17,766.69 £19,969.61 £248.51 £0.00 £0.00 £0.00 £37,984.81 2020/21 £47,441.36 £2,131.62 £281.40 £421.98 £0.00 £0.00 £50,276.36 2021/22 £88,395.68 £18,616.21 £9,152.91 £5,813.42 £4,420.39 £0.00 £126,398.61 2022/23 £210,065.73 £57,331.95 £9,589.09 £14,839.64 £32,306.68 £0.00 £324,133.09 TOTAL £369,819.24 £141,037.29 £19,289.24 £21,075.04 £36,727.07 £11,753.77 £599,701.65 Irrecoverable Rents Debt Recovery Process Day 14 - Arrears reminder letter sent If not paid, Day 21 - Attempt Contact with tenant If not paid, Day 28 - Further investigation either 7 day non-occupation letter or Pre Notice of Proceedings letter sent If not paid, Day 35 - Notice of Proceedings served by Sheriff Officer If not paid, Day 42 - Visit to tenant If not paid, Day 49 - Warning Letter Generated with effective date of Notice of Proceedings and possible court action If not paid, Day 56 - Taken to Eviction Prevention Panel and authorisation for Court Action sought Irrecoverable Housing Rents Debt Written off in financial year 2022/23 by year and reason 5 Page 27 of 66
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Appendix 5 YEAR GONE AWAY NO FUNDS UNECONOMICAL TO COLLECT DECEASED SEQ/LIQ OR REC DEBT PRESCRIBED TOTAL DEBT 2017/18 £0.00 £0.00 £0.00 £0.00 £71,655.01 £71,655.01 2018/19 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 2019/20 £5,283.85 £400.67 £117.18 £0.00 £0.00 £5,801.70 2020/21 £2,788.52 £2,323.31 £8.50 £0.00 £0.00 £5,120.33 2021/22 £1,856.30 £2,811.73 £8,757.19 £1,001.70 £0.00 £14,426.92 2022/23 £4,889.86 £10,351.15 £10,536.98 £613.21 £259.22 £0.00 £26,650.42 TOTAL £14,818.53 £15,886.86 £19,419.85 £1,614.91 £259.22 £71,655.01 £123,654.38 Homeless Debt Recovery Process Day 14 - Arrears reminder letter sent If not paid, Day 21 - Attempt Contact with tenant If not paid, Day 28 - Further investigation either 7 day non-occupation letter or Pre Notice of Proceedings letter sent If not paid, Day 35 - Notice of Proceedings served by Sheriff Officer If not paid, Day 42 - Visit to tenant If not paid, Day 49 - Warning Letter Generated with effective date of Notice of Proceedings and possible court action If not paid, Day 56 - Taken to Eviction Prevention Panel and authorisation for Court Action sought Homeless Debt Written Off in financial year 2022/23 by year and reason 5 Page 29 of 66
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PERTH AND KINROSS COUNCIL Scrutiny & Performance Committee - 7 June 2023 Finance & Resource Committee- 7 June 2023 SERVICE ANNUAL PERFORMANCE REPORT 2022/23 CORPORATE & DEMOCRATIC SERVICES Report by the Chief Operating Officer (Report No. 23/175) 1. PURPOSE 1.1 This report presents the Service Annual Performance Report 2022/23 for Corporate and Democratic Services (CDS). It details progress over the last year against improvement actions contained within the 2022/23 Service Business Management Improvement Plan. 2. RECOMMENDATION 2.1 It is recommended that the Scrutiny & Performance Committee: • scrutinises and comments, as appropriate, on the Corporate and Democratic Services’ Annual Performance Report 2022/23. It is recommended that the Finance & Resources Committee: • approves the Corporate and Democratic Services’ Annual Performance Report 2022/23. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Proposals • Section 6: Further Considerations • Section 7: Conclusion • Appendix 4. BACKGROUND 4.1 In previous years, Council Services have produced a Joint Service Business Management and Improvement Plan (BMIP) and Annual Performance Report (APR) on an annual basis. This year, however, as we transition to new performance reporting and strategic planning arrangements, we are presenting a Service Annual Performance report on its own which will provide a final report on last year’s BMIP. Details of in-year improvement actions are included, with a refocussing of improvement actions around the 6 Page 31 of 66
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new Corporate Plan priorities later in the year through the Corporate Annual Performance Report and Delivery and Improvement Plan. 5. PROPOSALS 5.1 The Corporate and Democratic Services’ (CDS) Annual Performance Report, set out in tabular form for ease of reference, shows improvement actions, activity undertaken for 2022/23 along with performance highlights and impacts and, where improvements did not proceed as intended, reasons and our learning. 5.2 Future reporting will be aligned to our new Corporate Plan, which was approved by Council on 21 December 2022, and covers the period from 2022/23 to 2027/28. 5.3 As part of our transformation programme, we are also reviewing our strategic planning and performance reporting arrangements across the Council. The Council is rolling out a new performance management software system in 2023 which will change the way in which performance information is captured, managed and presented. 5.4 The improvement activity underway for 2023/24 will be outlined within the Corporate Annual Performance Report and Delivery and Improvement Plan. This will be reported to Scrutiny and Performance Committee and then Council in September and October, respectively. 6. FURTHER CONSIDERATIONS 6.1 CDS provide a broad range of professional and technical knowledge, skills and expertise to support the Council to achieve its corporate objectives and deliver high quality operational services. We also deliver important front-line services, including the provision of vital advice and support in relation to welfare rights, grants, benefits and local taxes; registration, licensing and information rights services, customer contact and corporate complaints. 6.2 The public sector landscape remains challenging; demand for our services is increasing at a time when the Council and our communities are dealing with significant financial pressures. Escalating costs due to inflation and unprecedented increases in energy costs due to the volatility of the global energy market have presented key financial and strategic challenges for CDS and the wider Council. Putting increased energy costs alone into perspective, based on 21/22 levels, gas and electricity increased by 231% and 61% respectively for 22/23, illustrating that the need for effective governance and internal control has never been more important or necessary. 6.3 During 2022/23 we also played a significant role in transitioning a new Council and new political administration following the Local Government Elections in May 2022; working closely with elected members to design and implement a new decision-making structure to better align with their identified strategic priorities. Page 32 of 66
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6.4 The professional and technical advice and support provided by CDS are integral to the delivery of the Council’s frontline services in Education & Children's Services, Communities and the Health & Social Care Partnership. We continue to work closely with our colleagues across the Council and the Partnership to protect and care for our most vulnerable people and support and promote physical and mental wellbeing. From maintaining and developing the school estate to recruiting staff to providing professional advice and support, we enable children and young people to achieve their full potential. We also help create a vibrant and inclusive economy through the negotiation, contracting and construction of significant capital investment projects such as the new Perth High School, Blairgowrie Recreation Centre, the various phases of the Cross Tay Link Road and the new Perth Museum. 6.5 Tackling poverty is a strategic priority of the Council. As people across Perth and Kinross are affected by the current cost of living crisis, our Revenues and Benefits team have played a direct role in mitigating the impact; supporting individuals and local businesses through the provision of expert welfare rights support and representations to maximise income, and the processing and distribution of grants and payments to support local businesses. Statistics for 2022/23 show the teams: - • helped local people access approximately £6.5million in benefits (22% increase on 2021/22 figures) • processed and paid: ➢ 6539 crisis grants (£574k) ➢ 8235 local low-income support payments (£997k) ➢ 1321 community care grants (no final figure yet as amounts accrue) ➢ 2790 discretionary housing payments (£994k) ➢ 719 self-isolation grants (£256k) ➢ 1029 Energy Bills Support Scheme payments (£294k since late 2022) ➢ 44,299 cost of living payments paid to council tax accounts (£6,644,850) ➢ 662 cost of living payments paid directly to bank accounts (£99,300) 6.6 Aligned to our corporate priority to tackle climate change and support sustainable places, Property Services have been working with teams to reduce energy consumption across the Council’s property estate. A combination of good practice, effective data monitoring and energy management, energy audits and savings projects and proactive end-user engagement delivered impressive results. Figures for 2022/23 show: • Energy consumption reduced by 6,817 MWh (12%) compared to previous year. • Reduction of 1,535 tonnes (14%) CO2 compared to previous year. • Annual energy costs projected in July 2022 for year 22/23 was £6M. Actual energy costs for 22/23 were £5.4M (10% reduction). Page 33 of 66
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6.7 As our communities’ needs increase and become more complex in nature, the Council is looking to redesign and transform services. CDS are leading the consolidation and redesign of key corporate functions i.e., human resources and organisational development, finance, property, customer services, and procurement and commissioning. These projects will ensure we have the most efficient and effective models of delivery to best support the Council to deliver better outcomes for the communities that we serve, to make financial savings and to make best use of talent across our teams. 6.8 CDS are also key advisors and enablers for the design and implementation of the wider organisational transformation and change programme; working with frontline services to provide professional advice and support in relation to legislative requirements, workforce resource and capacity, property, digital transformation, budget and best value. 6.9 Customer and employee expectations are evolving rapidly and increasingly both expect a seamless experience across digital and other channels. Technology is fundamental to enhancing customer and employee experience and delivery of effective operations. It drives efficiency, improves services, empowers customers and enables data-driven decision-making. We are reviewing business systems and processes to facilitate improvements. 6.10 As well as building skills and capability to manage automation, we are developing fresh approaches to address the longer-term skill shortages in Scotland and the UK. A continued focus on workforce planning, upskilling, learning and culture will also ensure that we create a compassionate organisation where everyone is supported and can thrive. 7. CONCLUSION 7.1 Corporate & Democratic Services provides strategic management of corporate resources – people, finances, property, ICT and digital and information assets – and touches every part of the organisation through professional and technical advice and support. 2022/23 has been a year of continuous change and improvement for CDS – moving beyond the pandemic and harnessing the opportunities it presented for how we work, where we work and when we work. And responding to the increasing and changing needs of our communities as they too recover from the pandemic and deal with the cost-of-living crisis. 7.2 There has never been a more important time to ensure that corporate functions are working in a cohesive, integrated and effective manner and are taking a dynamic and adaptable leadership role across the organisation. The transformation projects for corporate functions will bring new models of delivery to support wider transformation and change to public services in Perth and Kinross. Page 34 of 66
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Authors Name Designation Contact Details Lisa Simpson Head of Legal and Governance Services 01738 475000 Karen Donaldson Chief Operating Officer Corporate & Democratic Services Approved Name Designation Date Karen Donaldson Chief Operating Officer 26 May 2023 Page 35 of 66
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial None Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment None Strategic Environmental Assessment None Sustainability (community, economic, environmental) None Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Community Plan/Corporate Plan 1.1 This report supports the delivery of the Strategic Objectives within Perth and Kinross Community Plan (Local Outcomes Improvement Plan) 2017-2027 and Corporate Plan 2018-2022. 2. Resource Implications Financial 2.1 There are no financial implications arising from this report. Workforce 2.2 There are no workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no asset management implications arising from this report. Page 36 of 66
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3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 This report has been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. No further action is required as it does not qualify as a PPS as defined by the Act and is therefore exempt. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. 3.5 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Legal and Governance 3.6 Not applicable. Risk 3.7 Not applicable. Page 37 of 66
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4. Consultation Internal 4.1 The Corporate & Democratic Services Management Team were consulted during the preparation of this report. External 4.2 Not applicable. 5. Communication 5.1 Not applicable. 2. BACKGROUND PAPERS 2.1 The background papers referred to within the report are: • Corporate & Democratic Services Business Management Improvement Plan 2022/23 and Annual Performance Report 2021/22 3. APPENDICES • Corporate & Democratic Services Annual Performance Report 2022/23 Page 38 of 66
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Service APR 2022/23 Appendix 1 6 Page 39 of 66
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2 Contents Page Introduction 3 PART 1 - Service Annual Performance Report 2022/23 Performance Summary 4-22 Key Performance Indicators 23-27 Page 40 of 66
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3 INTRODUCTION Introduction Corporate and Democratic Services (CDS) provides the broad range of professional and technical knowledge, skills, and expertise to support the Council and ensure that it does the right things, at the right time, in an open, fair and transparent way. This includes ensuring that the Council acts lawfully and ethically and that our strategic resources are managed effectively. We maintain and provide assurance that our corporate governance framework, (which includes our organisational culture, decision-making, resource management, policies, processes, systems, and internal controls), is robust and effective, and supports the Council to achieve its strategic objectives to help make life better for people across Perth and Kinross. We also deliver important front-line services, including the provision of vital advice and support in relation to welfare rights, grants, benefits and local taxes, registration, licensing and information rights services, customer contact and complaints. We recognise that the environment in which we are operating is increasingly challenging; demand for services is increasing and needs are becoming more complex, at a time when both the Council and individuals face increasing financial pressures. A key priority for CDS therefore is to ensure that our financial, human, property, digital and information resources are optimised, aligned appropriately, and deliver best value; and to provide the professional and technical support to enable the Council to change and transform services to better meet the needs of our communities. Purpose This report provides an overview of the performance of CDS in relation to our defined priority areas for action and improvement, as set out in our Business Management and Improvement Plan 2022-23. Our priority actions and improvements are grouped under the following headings: - • Getting the basics right: supporting and providing assurance in relation to corporate governance and the Council’s system of internal control, strategic resource management, compliance, and accountability • Developing people, skills, and capacity • Exploiting digital opportunities and data insight • Protecting our physical and information assets • Improving our customers’ experience • Working smarter Page 41 of 66
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4 CORPORATE & DEMOCRATIC SERVICES ANNUAL PERFORMANCE REPORT 2022/23 SUMMARY Getting the Basics Right What we did Impact/Learning This means ensuring that we support and maintain: ❖ effective corporate governance ❖ robust system of internal control ❖ effective strategic resource management and stewardship ❖ legal and regulatory compliance ❖ open, fair, and transparent decision- making ❖ scrutiny and accountability Corporate Governance Framework ➢ Assessed, evaluated, and provided assurance as to the adequacy and effectiveness of the Council’s governance and control arrangements through the Annual Governance Statement. Democratic Decision-making ➢ Supported transition, election, and induction of a new Council. ➢ Developed and delivered a programme of learning and development for Councillors. ➢ Implemented a new decision-making structure. ➢ Revised the Council’s Scheme of Administration. ➢ Revised the Perth and Kinross Integration Scheme for Health and Social Care. ➢ Implemented devolved decision-making pilot for the Kinross-shire area. Kinross-shire Pilot ➢ Awaiting independent evaluation of the Kinross-shire pilot to determine shape, scope and remit of model for devolved decision-making. ➢ Key challenge in designing a model which adds value to communities and to the decision-making process. Learning suggests that the structural model may need further development, providing an opportunity to review scope/remit/format/ membership, etc as we explore options for devolved decision-making in three further areas in 2024/25, as agreed by Council. Page 42 of 66
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5 Financial Stewardship ➢ Statutory accounts for 2021-22 completed to high standard with positive assessment from external auditors. ➢ Developed a new Financial Strategy and Principles to support effective decision-making. ➢ Implemented a robust programme of revenue and capital monitoring. ➢ In partnership with Senior Leadership Team and elected members, set balanced Revenue Budget for 2023-24 and Provisional Revenue Budgets for 2024-25 and 2025-26. ➢ Reviewed strategic investment decisions to set Capital Budget for 2023/24 – 2027/28 ➢ Developed Medium Term Financial Plan for 2023-2029. ➢ Developed Service Concessions Strategy to manage immediate budgetary pressures and support the Council move to new models of service delivery through the Transformation & Change Programme. ➢ Exceeded expectations in relation to in-year collection for both Council Tax and Non- Domestic Rates with collection levels in 2022-23 anticipated to be amongst the highest in Scotland. ➢ Planned and implemented significant update of core financial systems with minimal disruption to operations as a basis for improving future system functionality. Budget Monitoring/Reporting ➢ In response to elected member feedback, have revised format of Capital monitoring report to include summary of progress on major projects. ➢ Due to the complexity of and the level of detail in financial monitoring reports, they are viewed as “impenetrable” to the average non technically qualified reader. We will therefore review and revise the format of Revenue & Capital monitoring reports to focus more on strategic issues and exceptions reporting. Budget Setting Process ➢ Re-established forward year budgeting at a detailed level linked to the delivery of strategic priorities and the identification of the first phase of Transformation savings. Budget process, however, remains resource intensive with known limitations in respect of data analysis. ➢ It is recognised that the budget preparation process is particularly labour intensive for both officers and elected members. Consultation exercise being undertaken to identify opportunities to improve/streamline the process. This will also link into the Finance transformation workstream and through the “big conversation” we aim to develop and improve community engagement on the budget and Council approach to participatory budgeting. Capital Investment ➢ Ongoing challenges in deliverability and affordability recognised through review of elements of existing programme. ➢ Ongoing review and update of scale of financial challenge and risks. Page 43 of 66
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6 ➢ Acknowledgement of need to strengthen asset management approach and reinvest in existing assets. ➢ New Corporate Asset Management Plan to be developed and submitted to Council in December to strengthen evidence base for Council consideration of long-term Investment Blueprint and funding strategy in setting budget in February / March 2024. ➢ Development of roadmap for future financial systems improvements together with business case for investment. Medium Term financial planning ➢ Risk /challenge is the significant reliance on non- recurring funding (common across Scottish authorities) which underlines importance of adopting a robust approach to implementing the Financial Strategy and Principles. ➢ Service concession strategy provides additional short-term funding to support Council services but requires the reconfiguration and transformation of service delivery to achieve long term financial sustainability. ➢ Improved performance - In year collection at 31 March 2023: Council Tax 97.95% (+0.78% on previous year); Non-Domestic Rates 97.91% (+3.62% on previous year). Council Tax income c £200k more than budget. Continue to review and monitor the collection levels, payment behaviour and maximise entitlement to statutory reductions. Page 44 of 66
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7 Systems of Internal control ➢ Ensured implementation and provided assurance as regards the effectiveness of the organisational arrangements in place for: - o the management of risk o the processing of personal data o cyber security & resilience o access to public information o complaints handling o procurement compliance ➢ Secured continuing Public Sector Network accreditation. ➢ Developed and implemented policy and procedural framework for the licensing of short term lets in compliance with new statutory requirements. ➢ Continue to test, assess, review control measures in each area to maintain and provide assurance as to their effectiveness. ➢ Annual Governance Statement and specific annual reports provided assurance as to the effectiveness of the arrangements in place in relation to Corporate Complaints, Procurement, Cyber Security, Data Protection Compliance, FOI, and Registrars Risk Management ➢ The Council procured a new performance and risk management system which has provided the opportunity to review and update the risk management framework. This has highlighted the need to develop the organisational risk appetite profile to ensure that our risk management activity is aligned to the achievement of the new corporate plan objectives. Records Management ➢ Successfully developed a corporate electronic document management system (EDMS) as part of our compliance requirements under public records management legislation. ➢ Challenges relate to the sheer scale, diversity, and complexity of the data which the organisation holds and the multiple systems and various media in which it is held. ➢ The Council still holds several thousand storage boxes of paper filles which require to be digitised/archived/destroyed in accordance with the Records Management Policy ➢ This element of a much wider organisational EDMS programme has enabled services to move from legacy shared drives and has ensured ready availability of information from any device or location where staff are working from and has helped to improve information asset management. Page 45 of 66
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8 ➢ We will build on learning from Phase 1 to further extend the work done on EDMS to Line of Business Systems (LoB). The purpose of the wider programme is not only to ensure legal compliance but also to enhance the value of our data as a corporate business asset to enable the Council to achieve its desired strategic outcomes. Page 46 of 66
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9 Developing People, Skills and Capacity What we did Impact/Learning Continue to work proactively with all Services to enable them to make informed decisions about their workforce requirements to ensure they are fit for the future. ➢ Revised and updated the Workforce Management Plan. ➢ Revised Framework for Managing Workforce Changes. ➢ Vacancy & Post Management provisions refreshed to mitigate impact of budget position. ➢ Budget pressures continue to pose the greatest challenge. ➢ There are recruitment challenges in the areas of health and social care. A targeted recruitment campaign for social care role took place, the impact of which was reported to the IJB and the situation continues to be closely monitored. Competition for certain professional and technical skills makes recruitment and retention challenging. Growing our own, improved advertising and promotion of vacancies are among our approaches. ➢ Given the changing nature of Local Government work we need to ensure that we have the right skillset and behaviours within the organisation. We will look to nurture and develop talent by growing our own and refreshing the MA/Graduate arrangement. ➢ The Corporate Workforce Plan 21-23 is being refreshed to ensure that we can deliver the Corporate Plan priorities, budget decisions, improve mobility, retention and talent management and focus efforts on delivering transformation and change. ➢ Changes to the Framework for Managing Workforce Change to ensure it remained fit for purpose and provisions were affordable and support improved flexibility, adaptability and movement of staff across the Council to facilitate change and transformation. ➢ We will continue to promote and apply the vacancy and post management provisions to manage savings in years 2 and 3 of budget. Page 47 of 66
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10 Support the health and wellbeing of our employees as the organisation continues to adapt and incorporate the lessons of the pandemic to ensure the effective delivery of services to the people of Perth and Kinross. ➢ Efforts are made to maintain health and wellbeing across staff groups and teams, including: o Promotion and delivery of H&WB content through a variety of mediums e.g., monthly newsletter/slides. o Employee Assistance Provision and the Access to Mental Health Support Service promoted via comms and invitation for individuals, managers and/or teams to be provided with a brief on the service and wellbeing hub. o A wellbeing podcast series focused on a range of related topics e.g., Drug and Alcohol, mental wellbeing. Signposting to PKC Scottish Mental Health First Aider course for men. o Promoted financial wellbeing hints and tips, offered courses and events and sign-posted to sources of support in payslips and via other mediums. o Signed up to the Menopause Workforce Pledge which the Council is actively supporting and informing employees affected by the menopause. ➢ Absence within CDS remains below the corporate and national average for local government. HR meet regularly with senior management to provide timely and proactive support when staff are absent, and to identify potential trends and hotspots. ➢ Risks are low in most CDS work settings however we continuously review and/or refresh safe systems of work and conduct generic risk assessments to ensure that we are proactively managing health, safety and wellbeing risks. Corporate Absence levels – see commentary in Key Performance Indicators section Engage in the Equally Safe at Work Programme (part of the Scottish Government’s strategy to eradicate violence against women and girls) ➢ Council has signed up to the Development stage of the Equally Safe at Work programme. ➢ Undertaken a diversity survey to increase uptake of disclosure around disability and ethnicity. Promotion of information on Equally Safe to improve disclosure, working with unions to support and sign-post staff. ➢ Promoted the 16 Days of Activism programme organised by The Violence Against Women Partnership. ➢ Working group has been developed to manage actions. Page 48 of 66
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11 Exploiting Digital Opportunities and Data Insight What did we do Impact/Learning A fresh, fit for the future Digital Strategy continues to be developed, against the backdrop of post-COVID remobilization; the maturing Perth & Kinross Offer and the emerging Transformation and Change Programme. ➢ Digital Perth and Kinross - Digital Strategy 2023- 2027 and Delivery Plan to 31 December 2024 approved by the Finance & Resources Committee on 1 February 2023, and published. ➢ Digital Perth & Kinross being woven into the Transformation & Change programme initiatives, including Business Systems Review workstream. ➢ Elected Member Digital Champion appointed. ➢ Strategy sets out principles and clearly articulates our ambition for delivering positive sustained digital change and better outcomes for our people and places. ➢ Need to ensure that the Strategy is visible and implemented consistently. ➢ Resource challenges: volume of work being generated by Transformation and Change / Smarter Working programmes requires to be managed concurrently with Strategy Delivery Plan. Implement Mosaic as the Council’s new social care platform working towards a potential go-live date in September/October 2023. ➢ The original suppliers Project Plan was reviewed and a new “Go Live” date of Feb/Mar 2024 was agreed between the supplier and PKC. ➢ Collaborated with the supplier and established a detailed workplan to support an Agile delivery model for implementation. ➢ Collaborated with all service areas in the design and development of the new social care workflows and forms that will be available on “Go Live” within Mosaic. ➢ Commenced data migration testing from SWIFT to Mosaic to validate the accurate and safe transfer of all client data. ➢ Commenced the development of the training materials that will support the intensive training period leading up to “Go Live”. ➢ The impact of the adjusted timeframe has been mitigated to ensure that the product is supported during the first year after “Go Live”, and that during that post “Go Live” period we can continue to implement other key areas of the product such as the Citizen and the Provider Portals. ➢ Agile working is enabling the services, the project team and the supplier to work collaboratively in small increments to rapidly design, evaluate, and test a complex social care process to find the most appropriate and effective way of carrying out that process using all the features of Mosaic, before moving on to the next one. ➢ Working collaboratively with services has ensured that the social care processes are designed and owned by the practitioners and are user-friendly, streamlined, efficient, remove duplication and capture all the key information. Page 49 of 66
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12 ➢ Data migration testing is ensuring the ongoing and continuing support and safety of our service users on the transfer from SWIFT to Mosaic at the moment of “Go Live”. ➢ Critical to a competent and safe “Go Live” start for Mosaic, and for our service users, it is essential that all practitioners and users of Mosaic are familiarised with the product and receive training in the use of the new processes and workflows immediately prior to “Go Live”. This timing will ensure there is no “skill fade” experienced by users when they access the new Mosaic system. Move HR and Payroll system ‘ResourceLink’ to a cloud-based solution. This is due to be migrated over the summer of 2022. ➢ This was not achieved within the anticipated timeframe due to systems issues to be resolved by the supplier and is now planned for June 2023. We continue to work with the provider to ensure effective implementation. ➢ We have been testing the speed and functionality in the background and will move over to the Cloud in June 2023. This will create improved functionality within the HR and Payroll system and facilitate efficiencies. Use data analytics to build the capacity and create the capabilities necessary for introducing new technologies. ➢ Developed a Strategic Data and Analytics (D&A) Programme. ➢ Continued to progress implementation of a PKC Data and Analytics platform. ➢ Data literacy training programme launched. ➢ These tools are starting to be used effectively and delivering benefit: - o Enterprise business intelligence tools (PowerBI and ArcGIS) now implemented and being used to deliver reports/dashboards. o PKC data warehouse capabilities continuing to mature and corporate data platform implemented / onboarding of data in progress. ➢ Going forward the focus needs to be on: - o Governance and collaboration: continue to evolve a holistic One Council D&A environment. o growing awareness of available tools to accelerate adoption. Page 50 of 66
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13 o building capacity: grow skills and expertise / embed new operating model, aligned to appropriate roles / business need. o demand management: embed approach for prioritising run the business / change the business demands on finite D&A programme resources. Page 51 of 66
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14 Protecting our Physical and Information Assets What did we do Impact/Learning Property Assets ➢ Property Services has full statutory and planned preventative maintenance programmes in place to provide safe and compliant accommodation to staff, pupils and public across all buildings. ➢ In 22/23 maintenance arrangements in place mitigated any material unplanned loss of service due to building fabric or element failure. ➢ Property Services delivered £5m of reactive and planned maintenance activities across the estate with contractor partners including the main statutory maintenance concerning gas, fire risk assessments, electrical and asbestos systems. ➢ Given the financial pressures facing all local authorities we have developed a Test of Change project with Angus and Dundee Councils to identify potential efficiencies and improvements via collaborative procurement. ➢ In 23/24 a Property Asset Management Strategy and plan will be presented to Council for approval which will help make better informed decisions in relation to future investment. Influence and facilitate the necessary changes in practice to enable the Council to achieve Scottish Government targets of net zero by 2045 and intermediate reduction targets. ➢ The Council like other organisations and individuals faced unprecedented increases in energy costs due to the volatility of the global energy market. Putting these increased energy costs into perspective based on 21/22 levels, gas and electricity increased by 231% and 61% respectively for 22/23. ➢ To mitigate the impact of increased energy costs and continue to work towards the Scottish Government’s Net Zero targets it is essential the Energy and Engineering team within Property Services: o Continue the good work undertaken in previous years. o Extend our commitment to increase energy efficiency measures in accordance with the PKC Climate Change Action Plan. ➢ The building level interventions included upgrades to Building Management Systems (BMS), rationalising hot water systems, installing LED lighting, and replacing inefficient heating equipment. ➢ These measures have also been undertaken alongside increased energy awareness to change behaviours throughout the estate in conjunction with building users and the Climate Change Team. ➢ All these actions have resulted in the following reductions from 21/22 levels: • Energy Consumption - 6000 MWh (12%) • Carbon Emissions - 1325 TCo2e (14%) • Costs - £500k (8%) ➢ As an example, some of the greatest reductions from above were achieved in one of the IIL School Campuses. Upgrading of the BMS system at this site achieved cost reductions of £60k. Page 52 of 66
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15 ➢ Capital Investment of circa £500k is planned / scheduled for 2023/24 and an additional £2m of capital funding was added into the Council budget on 1 March 2023 for decarbonisation. ➢ Staff are concurrently working up the detail behind the Climate Change Strategy Action Plan to move towards decarbonising the estate by 2045. The focus for 2022/23 is managing the increasing demand for maintenance within available budgets. An escalation in contract costs tied to CPI (Consumer Prices Index) combined with national supply chain difficulties with materials and resource supply will also bring significant challenges. ➢ Financial outturn is included in projections provided to F&R Committee. Inflationary and demand pressures have been recognised within 23/24 budgets. ➢ Management of demand levels for maintenance are reflective of the condition of the estate. These are monitored monthly and material changes reported to F&R Committee. ➢ The property consolidation transformation review should lead to a reduction in the cost of maintaining the estate. ➢ Proposals will be developed via the future Property Asset Management Strategy and Plan and will provide options for future years. Information Assets Increase cyber security talent pool to eliminate single points of failure and increase resilience ➢ Along with a member of the Records and Information Security team, a new Graduate Apprentice is undertaking a BSc in Cyber Security at Napier University alongside their operational role within the team. This is building and developing greater in-house knowledge, skills, and expertise. ➢ Given that human error/action poses the greatest risk within the organisation, the graduate apprentice role will be developed to support all areas of Information Security, but with a focus on user awareness, passwords, and threat intelligence. Deliver Cyber tabletop exercises to increase level of cyber awareness and increase resilience ➢ Given the sensitive and diverse nature of the information held within these services and interaction with other systems, to date, exercises have been undertaken within o HR o Legal & Governance o Safer Communities o Live Active Leisure ➢ Additional exercises are scheduled for other teams to raise awareness and increase preparedness. ➢ Externally led exercise is scheduled for senior leadership and the cyber incident response team. ➢ This ongoing programme of work will build on experience with exercises and testing being rolled out across the organisation and repeated as required. Page 53 of 66
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16 Develop and Implement Cyber Incident Response Plan (CiRP) ➢ Cyber Incident Response Plan has been developed, approved and is now being implemented. ➢ This plan has been tested through several tabletop exercises. Sessions have been very well received and are highly recommended by previous participants. Teams have commended the collaborative effort of Legal and Governance and the IT Service in delivering Cyber sessions which cover all areas not just the technical elements. ➢ Building on the tabletop exercises, the Plan will be independently tested by external parties as part of a leadership cyber exercise. Partner with external specialists to implement a managed 24/7 Cyber Security Operations Centre (SOC). ➢ Cyber Security Operations Centre (CSOC) / 24/7 external monitoring in place and operating effectively. ➢ This significantly enhances our security capacity and capabilities for early threat detection, containment, response, and remediation. Therefore, we are better equipped to manage/mitigate external risks to the accessibility and integrity of our data which is key to delivery of vital services and the achievement of the Council’s aims and objectives. Ensure that our IT infrastructure and networks protect our systems with up-to-date cybersecurity measures and have PSN (Public Service Network) accreditation. ➢ Achieved annual PSN accreditation. The Council must re-accredit to the PSN annually and provide assurance that the Council network is well run and presents no onward risk to central government services. ➢ Phishing simulation tool being implemented/onboarded. ➢ Cyber Security Response Plan and Team in place. ➢ Phishing simulation exercises are resulting in greater awareness and understanding (and a recognition) that our own people pose the most likely cyber security threat to our systems and data. By continuing with a programme of training and testing we will continue to reduce that risk. ➢ To mitigate against constantly evolving cyber threats, there will always be a need to continually invest in and improve our cyber defences. Strategic plans for securing and accessing our information assets include: redesigning the Council’s IT network model to deliver a fit for the future digital environment; optimising current investment in cyber defences and implementing enhanced security features. Page 54 of 66
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17 Improving our Customers’ Experience What did we do Impact/Learning Contributed to key priorities (Child Poverty, Economic Wellbeing and Fairness and Equality) ➢ Welfare Rights Team achieved Benefit Gains of £6.5m (£5.3m in 2021/22). Continued to administer and review PKC’s Financial Insecurity Fund; getting £567k of assistance to those on low incomes (including assistance with priority debt) and ensuring that the scheme covers those with No Recourse to Public Funds. ➢ Created the Local Low Income Support Payment which distributed £997k to 8235 low- income households and care leavers. ➢ Completed administration of Scottish Government’s Cost of Living Awards and Self Isolation Support Grants. Undertook delivery of the UK Governments two latest Energy Schemes. ➢ Augmented Scottish Welfare Fund budget which enabled better outcomes from applications for Crisis Grants ➢ Following successful inspection of Welfare Rights (August 2022), retained accreditation at the highest level in respect of benefit representation at Courts and Tribunals. ➢ Positive Customer Feedback – 100% satisfaction (Welfare Rights) ➢ Using financial assistance schemes are recognised as a highly effective gateway to encourage contacts with Welfare Rights, which enables us to maximise statutory entitlements and identify other assistance required by customers. ➢ Continue to ensure that people who need our help can be identified at the earliest opportunity; maximising use of data, ensure information we provide is clear and easily accessible to all and ensure that the public and frontline in all sectors are aware of how to contact and refer to us. ➢ This enables Welfare Rights to continue to advise and represent our customers at court and tribunal with regards to benefits at the highest standard. ➢ Continue to ensure that the necessary culture, plans, and procedures are in place and continuous improvement can be demonstrated. Also ensure that the necessary knowledge and skills can be demonstrated. This is required to meet the increasing standards for retention of accreditation. Develop an ambitious Customer Service Strategy. ➢ Webchat rolled out across all Council web pages. ➢ This commitment links to the Transformation & Change workstream on Customer Services. ➢ A new customer services strategy will optimise use of digital transformation and ensure customer insight and intelligence are used to develop and improve customer standards and services. ➢ Adding the webchat channel has had a positive impact on our customer services performance. ➢ Continue to look at ways of improving end to end digital service delivery. ➢ Reviewing all our customer channels, looking for ways to improve access to information and improve online uptake. Page 55 of 66
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18 ➢ Pullar House opened for “walk ins” in October 2022 after operating an appointment only system during the pandemic. The system for “walk ins” has been operating in tandem with the more efficient and effective appointment system also being offered to customers. ➢ Customer numbers and reasons for in-person visits at both Pullar House and 2 High Street receptions are being monitored to inform future strategy. Continue to promote digital channels and make sure no citizen is excluded. ➢ New high-volume processes designed, developed, and implemented: o General Enquiries (Redesign). o EAP Change of Circumstances (staffing changes) o Short Term Lets Licences. o Green Recovery Capital Grant Enhancement Package. ➢ Gold Silver and Bronze prioritisation model now being used by Digital Board to endorse priority Online Services work packages for the next period. ➢ External Digital Participation Research Report commissioned, resulting in Digital Participation Action Plan for Perth and Kinross. ➢ 122 customer facing online processes have been developed (96 of which are active). ➢ 27 internal online processes have been developed (20 of which are active). ➢ 24/7, 365 days per annum availability to our citizens, relieving the pressure on other channels (F2F and telephone) for those who do not or cannot engage with us digitally. ➢ Continue “One Council” development of the corporate mobile working and online service platforms. Investigate opportunities for new and emerging technologies including webchat to improve service operation and design. ➢ Microsoft ChatBot being piloted with HR as part of the Digital Employee Experience Programme. ➢ PKC use of Microsoft Power Apps pioneered to create / publish an “always available” Offline Working Guide for staff. ➢ Sensors being deployed across our Social Housing estate to proactively monitor property condition to better allocate resources to support tenants and avoid costly repairs. ➢ Initial HR ChatBot pilot is generating significant Service interest. Future priorities/use cases will require to be identified, to optimise value from our investment in this technology. Page 56 of 66
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19 ➢ Internet of Things (IoT) pilots under way as proof of concept for implementation of an enterprise IoT platform, which encompasses multi- disciplinary deployment of sensors linked in with corporate platforms such as Building Management, Data Warehouse and Mobile Working platform. ➢ Opportunities for exploring the Microsoft PowerPlatform tools in which we already invest need to be investigated to avoid investment in alternative third-party products. Page 57 of 66
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20 Working Smarter What did we do Impact/Learning Undertaken council wide engagement to review workspace requirements based on how we are using hybrid working to determine overall space requirements and consider the need for quiet spaces, collaboration spaces, bookable rooms with and without hybrid meeting equipment. ➢ Working Smarter Project Scope approved by the Transformation & Change Board. ➢ 18 rooms available with hybrid meeting facilities (16 available in central Perth offices and two in secondary schools). ➢ Hybrid working continues to operate successfully across teams throughout PKC. ➢ Flexible Working Framework developed for hybrid and remote working. ➢ Guidance for managers and staff continues to be updated and promoted to reflect best use of how, where and when we work. ➢ A project team has been established that will deliver an action plan to take working smarter forward, reviewing, and optimising use of Perth office accommodation, and exploring options for One Public Estate. ➢ Programme for rollout of hybrid meeting equipment to other work locations across Perth and Kinross. Work to digitise paper records for services to ensure that they are available to the right people at the right time to support effective remote and hybrid working. ➢ Engaged in a large-scale operation to digitise records for a number of services. ➢ Information is more readily available and accessible and supports effective remote and hybrid working. ➢ This will contribute towards a reduction in physical storage requirements whilst improving the Council’s understanding of what data it holds. ➢ This is an extensive, ongoing programme of work. Transformation & Change – Finance Review. ➢ Project scope agreed. ➢ Engagement with finance teams across the Council ➢ Reviewed current operational finance structures across the organisation to develop options to consolidate teams, review systems, streamline processes and improve efficiency. ➢ New service delivery model will be developed based on bringing all finance teams together and business partnering principles. Page 58 of 66
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21 Transformation & Change – Redesign of Strategic Procurement and Commissioning function. ➢ Extensive programme of initial engagement with internal stakeholders. ➢ Project Scope established. ➢ Data analytics work underway. ➢ Regular consultation and engagement sessions scheduled. ➢ Small scale test of change pilots underway in relation to certain supplies. ➢ Taking time to meet 1-1 with key stakeholders at the start of the project has ensured buy-in and closer collaboration across the organisation. ➢ Data is extensive and dispersed across different services but is failing to provide the necessary business intelligence to help drive savings and efficiencies. Data analysis exercise is underway to inform next steps. ➢ In response to the stakeholder engagement, a new procurement and commissioning strategy will be developed, test of change pilots will be evaluated and the development of integrated purchase to pay functionality will be further explored. Transformation & Change- Human Resources and Organisational Development. ➢ Project Scope agreed. ➢ Options appraisal developed. ➢ Engagement sessions with key stakeholders held in- person and online. Survey issued to inform the options appraisal. ➢ Systems mapping and benchmarking undertaken to inform future operating model of a consolidated HR and OD function. ➢ Further work required for Learning & Development options. Transformation & Change – Property function consolidation. ➢ Project Scope agreed. ➢ Options appraisal developed. ➢ Engagement sessions with all staff held in person in late 2022. ➢ New corporate landlord model of service delivery which brings together all property teams is being developed. ➢ Work is ongoing to develop a consolidated programme for all property activities, including general fund and Housing Revenue Account new build, to ensure corporate prioritisation and delivery resources are aligned. ➢ Corporate Property Asset Management Strategy and Plan is being drafted. Page 59 of 66
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22 Transformation & Change – Customer Services. ➢ Project scope agreed. ➢ High level option appraisal for Customer Services transformation developed. ➢ There is genuine cross-Council appetite to streamline, modernise and standardise our approach to customer service delivery. ➢ Engagement with our customers, businesses, and elected members. ➢ Continue to work collectively across teams to develop plans to deliver on new 2 hub model for Customer Services. ➢ Ensure digital transformation within customer services, making best use of customer data, building capacity and capability with a view to improving customer service. Page 60 of 66
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23 KEY PERFORMANCE INDICATORS Financial Management Indicator Performance Target Trend 2020/21 2021/22 2022/23 2022/23 Percentage of income due from council tax received by the end of the year 96.6% 97.7% 98.4% 97.5% Comments on performance during 2022/23 and target: Despite the significant ongoing financial challenges facing many households, the level of Council Tax collected during 2022/23 exceeded all expectations. A joined-up approach, with focus on maximising income for the Council, and also identifying customers who require assistance and providing targeted help/advice, has been key to this success. The Revenues and Benefits Service constantly review and improve its practices to ensure that they are fit for purpose and that continual improvement takes place. Percentage of invoices sampled that were paid within 30 days 89.7% 94.0% 93.7% 94% Comments on performance during 2022/23 and target: Payment performance has returned to pre covid-19 levels with the target for 2022/23 almost achieved. Support services as a percentage of total gross expenditure 3.8% 3.7% TBC 3.7% Not available Comments on performance during 2022/23 and target: 2022/23 information not available until publication of Improvement Service data later in 2023. Page 61 of 66
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24 Staffing Indicator Performance Target Trend 2020/21 2021/22 2022/23 2022/23 Sickness absence for employees (non teaching) – average number of days 8.3 10.9 13.0 No target – intention is to manage and mitigate absences Comments on performance during 2022/23 and target: Sickness absence for employees (non-teaching) has increased by 2.1 days. Short term sickness has increased by 3.93%, medium term sickness has increased by 0.83% and long-term sickness has reduced by 4.83%. A return to pre-Covid recording methodology along with wider societal increase in ill health figures has contributed to this increase. The HR team continue to provide detailed analysis of sickness information to explore information by absence reasons, numbers of occasions and days lost. More detailed work is required to determine if there are any trends or patterns for the increase in short term sickness. The data is monitored by service managers on a regular basis. Learning opportunities and support continue to be offered to managers with monthly wellbeing slides shared. We are intending to promote new tools to improve accessibility of information in 23/24. A suite of guidance with signposting to support with an increased focus on financial wellbeing due to the increase in cost of living has been developed. The recent launch of a new Employee Assistance Programme and proactive wellbeing platform will also support. Page 62 of 66
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25 Staffing Indicator Performance Target Trend 2020/21 2021/22 2022/23 2022/23 Sickness absence for teachers – average number of days 4.2 7.0 8.9 No target – intention is to manage and mitigate absences Comments on performance during 2022/23 and target: Sickness absence for teachers has increased by 1.9 days. Short term sickness has increased by 3.23% medium term sickness has reduced by 1.8% and long-term sickness by 1.43%. As noted above the increases are due in part to a return to pre-Covid recording methodology but also reflective of the wider societal increase in ill health figures. The HR team continue to provide detailed analysis of sickness information to explore information by absence reasons, numbers of occasions and days lost. More detailed work is required to determine if there are any trends or patterns for the increase in short term sickness. The data and commentary on trends is monitored by Head Teachers on a regular basis and regular updates on trends and hotspots shared at Headteacher meetings. Targeted action and support have been provided by HR as appropriate. Learning opportunities and support continue to be offered to managers with monthly wellbeing slides shared. We are intending to promote new tools to improve accessibility of information in 23/24. A suite of guidance with signposting to support with an increased focus on financial wellbeing due to the increase in cost of living has been developed. The recent launch of a new Employee Assistance Programme and proactive wellbeing platform will also support. Page 63 of 66
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26 Staffing Indicator Performance Target Trend 2020/21 2021/22 2022/23 2022/23 Gender Pay Gap -1.2 -1.1 -2.35% To be as close to balanced as possible Comments on performance during 2022/23 and target: The figure calculated using the average base hourly rate for males and females indicates a widening pay gap in favour of females. The median gap is sitting at 0%. We ensure a consistent application of salary on appointment and progression rules which are designed to support a fair and consistent base pay environment. The slightly increasing gap is influenced by the higher pay settlements received by colleagues in lower grades (reducing the gap between them and those in the next grade) many of whom are women in caring/pupil support roles and augmented by the increase in the proportion of women in the higher earners as noted below. Proportion of the highest paid 5% employees who are women 53.8% 54.0% 55.9% No target is set Comments on performance during 2022/23 and target: There is an increase in the top 5% of earner from 226 to 229 and an increase in the total number of female staff in the top 5% up from 122 to 128. The figure continues to increase based on recent pay awards and established good recruitment practice with improved personal and career development opportunities. It may also have been influenced by increased flexibility in working hours and attendance. It does not yet reflect the overall workforce distribution between men and women (women = 73% of the workforce). Going forward the introduction of the Leadership Competency Framework and associated development activity will provide further support for staff to develop their careers and investigation into a specific mentoring/development programme for women is taking place. Page 64 of 66
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27 Asset Management Indicator Performance Target Trend 2020/21 2021/22 2022/23 2022/23 Proportion of operational buildings that are suitable for their current use 90.9% 93.4% 96.15% 95% Comments on performance during 2022/23 and target: Additional data regarding Public Conveniences and depot sites added to scoring of suitability. Investment by Education and Children services on Perth Academy (£9m), Perth Grammar School (£5m), Letham PS (£5.3m) and Milnathort PS (£2.3m). Target for 2023/24 remains 96.15%, which is based on proposed planned investment at Riverside PS and Perth Museum, disposal of Balhousie PS and North Muirton PS but these don’t have a major effect on suitability scoring. Percentage of internal floor area of operational buildings in satisfactory condition 85.4% 89.8% 90.75% 90% Comments on performance during 2022/23 and target: 75% of GIFA of operational buildings for Condition surveys now complete. Investment on Perth Academy (£9m), Perth Grammar School (£5m), Letham PS (£5.3m) and Milnathort PS (£2.3m). Target for 2023/24 is 91%, which is based on planned investment at Riverside PS and Perth Museum, disposal of Balhousie PS and North Muirton PS. Key: Performance indicators (Arrow indicates whether performance has improved/declined/stayed the same) Improved Declined Stayed the Same Page 65 of 66
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