PART 1
(OPEN TO THE PUBLIC)
ITEM NO.
REPORT OF THE DIRECTOR OF CORPORATE SERVICES
TO THE QUALITY & PERFORMANCE SCRUTINY COMMITTEE
ON 25th NOVEMBER 2002
TITLE :
BEST VALUE PERFORMANCE INDICATORS 2002/03 PERFORMANCE FROM 1 APRIL 2002 – 30 SEPTEMBER 2002
RECOMMENDATIONS :
That Members consider and comment upon the Directorate’s performance for the
second quarter of 2002/03.
EXECUTIVE SUMMARY :
To present the Directorate's performance for the second quarter of 2002/03 against the
Best Value Performance Indicators contained within the Best Value Performance Plan.
BACKGROUND DOCUMENTS : Working files available across the Directorate.
(Available for public inspection)
CONTACT OFFICER :
Allison Lobley 0161 793 3171
WARD(S) TO WHICH REPORT RELATE(S)
KEY COUNCIL POLICIES (Continued Overleaf)
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1.
DETAILS
1.1
Attached as appendix B to this report are the comparator action plan graphs for
the Best Value Performance Indicators (BVPI’s) monitored by the Corporate
Services’ Directorate, which are currently performing below target for the
second quarter of 2002/03.
2.
DIRECTORATE STATUS REPORT
2.1
The Directorate’s status report showing how well we are performing against all
of the Performance Indicators contained within the BVPP 2002/03 is attached at
Appendix A. This report shows at a glance where we are on target to achieve
top quartile performance, and where we are not currently meeting our targets.
3.
PERFORMANCE INDICATORS WHERE NO PERFORMANCE IS REPORTED
FOR THE SECOND QUARTER
3.1
Performance will not be reported for this quarter on the following indicators:
78a
78b
78c
79a
79b
3.2
The average time for processing new claims
The average time for processing notification of changes in circumstances
The % of renewal claims processed on time
The % of cases for which the calculation of the amount of benefit due
was correct on the basis of the information available for the determination
of a sample of cases checked post-determination
The % of recoverable overpayments (excluding Council Tax Benefit) that
were recovered in the year
Following recent examination of the Authority’s Benefit PI’s by District Audit
several observations have been made which suggest that existing measures of
performance within the area of benefits administration haven’t fully complied
with the definition of the statutory performance indicator. These discrepancies
have included some of the following items;
 The benefits overpayments recovery performance indicator had not been
amended following a change in the definition of the PI in February 2002
which was applied retrospectively by the Audit Commission to the 1 st April
2001. NB. District Audit have suggested that due to the timing of this
change, Salford is not the only Authority to be faced with this situation.
 With respect to the processing of benefit claims performance indicators
Salford had not included claims received prior to the commencement of the
financial year, which were processed within the financial year. Salford’s
performance measure had included claims received only during the period of
the financial year.
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In all cases, Salford’s working practices had been verified in the past by District
Audit and these issues had not been brought to our attention. Considerable
work is now being undertaken to respecify computer systems to ensure that the
correct information is being reported upon. It is anticipated that this information
will be available during December 2002 when performance monitoring reports
will recommence.
To give Members some indication of present workload positions within benefits
administration, I have set out at Appendix C details of present levels within the
Service which you will note represent a large improvement upon previous years
performance. Members may also be aware that following the recent inspection
of the Benefits Service in October as part of the Comprehensive Performance
Assessment process the Service received the top rating of 4 on a 4 point scale.
4.
PERFORMANCE INDICATORS WHERE PERFORMANCE IS UNDER
TARGET
Revenues and Benefits
Costs of Council Tax collection, benefits administration
Business Rates Collection
Financial Support Group (FSG)
Prompt payment of invoices
Legal Section
% of standard land searches carried out in 10 working days
5.
REVENUES AND BENEFITS
5.1
The comparator action plan graphs for the following indicators are shown at
Appendix B:
5.2
Cost
LPI 29 – The average cost of collecting Council Tax for every home that has to
pay
Performance 2nd quarter 2002/03
Target 2002/03
3
£10.93
£9.59
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LPI 30 – Average cost of handling a Housing benefit or Council Tax benefit
claim, taking into account differences in the types of claim received
Performance 2nd quarter 2002/03
Target 2002/03
£91.96
£78.43
Current performance
In both cases performance is not on target although at this stage within the
financial year prior to budgets being closed and claimant numbers being clearly
established, we are not clear whether current performance will be typical of the
likely performance for the remainder of the year. The experiences of other Local
Authorities implementing Verification Framework tell us that through tighter
controls at the benefit gateway, claimant numbers do reduce. Whatever the total
costs of benefits administration in real terms therefore, any decline in claimant
numbers will adversely affect performance in this area. This situation will need
to be monitored closely.
Barriers to improvement
The implementation of Verification Framework has led to increases in staffing
resources within benefits to tackle the additional workload this entails. Whilst
such investment has been supported by Government funding, as stated above it
is anticipated that Verification Framework will reduce claimant numbers.
Proposed action
There will be continued monitoring of costs levels/claimant numbers to ensure
that the recent performance trends are maintained and costs continue to
reduce.
5.3
Business Rates Collection
BVPI 10 - The % of non-domestic rates due for the financial year which were
received by the Authority
Performance 2nd quarter 2002/03
Target 2002/03
4
57.23%
97.10%
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Current performance
I would remind Members of previous comments made in respect of the effects
on the service of the conversion to the new Business Rates software package
from April 2002
Barriers to improvement
In the short-term implementation of the Pericles Business Rates computerised
system will continue to create some “teething” problems as users familiarise
themselves with new procedures and indeed new procedures/documentation
are designed.
Current action
As previously stated the recovery timetable is currently brought up to date and it
is anticipated that from January 2002 collection improvements will then follow.
5.4
Legal Section
BVPI 179 – The % of standard land searches carried out in 10 working days
Performance 2nd quarter 2002/03
Target 2002/03
87.97%
95.00%
Current performance
The level of performance is due to the introduction of the new Con 29 form
introduced in July 2002. Staffing problems in the Traffic Section led to
considerable delays in returning the forms to us. This of course had a knock on
effect on our figures. These problems have now been largely resolved.
Current action
We are starting to look at the possibilities of more electronic searches, which
should speed up things, and a new part time member of staff has been
appointed.
5.5
Prompt Payment of Invoices
BVPI 8 – The % of invoices which were paid promptly
Performance 2nd quarter 2002/03
Target 2002/03
5
80%
100%
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Current performance
Performance during the second quarter of 2002/03 improved from the position in
the first quarter due mainly to the return from long-term sickness absence of
several staff members, in the latter part of the first month of the quarter.
The four agency workers who had been engaged towards the end of the first
quarter continued their employment until mid September in order to tackle the
backlog which had built up due to sickness in the first quarter. It had been
decided that the structure, anyway, was inadequate to undertake the workload
and two extra posts were approved during the first quarter and filled from late
September.
Payment within 30 days of invoices which do not have a computer generated
order was 95% during the quarter (accounting for around 56% of all invoices
paid). Payment within 30 days of invoices with a computer generated order
improved to 69% from 55% in the first quarter.
Difficulties with SAP goods receipting continued and queries in that regard were,
for most of the quarter, being referred to the FSG Purchasing Section.
Vacancies on the Purchasing Section led to such queries not being promptly
addressed. These issues account for the overall target not being met. Queries in
relation to goods receipting are now being dealt with by Creditor Officers
although queries of other types still need to be referred to the Purchasing
Section.
Barriers to improvement
It is felt that goods receipting is improving as users become more accustomed
to requirements. It is still, however, not working as efficiently as required,
causing delays in processing invoices and adversely affecting the indicator. The
process does seem over complicated.
Staffing resources had not been adequate to cope with workload. This has now
been addressed but inexperienced staff are still being trained.
Lack of adequate SAP training due to lack of resources on the e-Merge team.
Lack of resources on the e-Merge team led to cancellation of training scheduled
for mid June 2002 which has not yet been re-scheduled.
Delays in implementing a short-term document imaging system, which would
enable a review of resources due to time saved not having to file invoices. This
resulted from having to change proposed suppliers to bring us in line with the
corporate approach, in mid-negotiation.
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Work surrounding the creation of New Prospect Housing Limited (the Housing
ALMO) diverted key resources from mainstream work.
Proposed action
Training to address complications of invoice verification processing still to be rescheduled. This has been referred to the e-Merge Team as a priority.
The implementation of a short-term document imaging solution should release
additional resources for invoice processing. This is being progressed with Anite
Public Sector.
Longer term to implement an at-source imaging solution which would provide
Directorates with access to invoice images, and hopefully reduce delays in
transportation of documentation.
Continuing to build close working relationships with Directorates and suppliers
to improve the procedures for processing.
Enquiries are in hand with providers of Customer Care training (including
potential in-house providers) with a view to all FSG staff attending courses to
improve their customer care skills. Telephone greetings have already been
standardised, in which staff state their first name and area of work.
Continued SAP support to requisitioners and authorisers to improve the
workflow processes to enable more efficient processing. Refresher training
provided recently.
Findings from the review of procurement to enable a more simplified process by
the consideration of purchase orders that do not require goods receipting for
certain services / goods provision, need to be implemented.
Longer term - the investigation of the potential for purchase cards for certain
goods/service provision. This could alleviate the pressures of processing high
volume invoices such as provisions.
Staffing levels have been reviewed and staff appointed to fill new vacancies.
Longer-term strategy for the creditors group to be compiled. A start will be
made on this during the third quarter.
More experienced staff are now concentrating on paying invoices which result
from computer generated purchase orders, leaving less experienced staff to pay
other, easier invoices. The Senior Creditor Officer is mentoring the less
experienced staff.
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A system has been introduced to identify disputed invoices which should be
excluded from counting within the calculation for this indicator. This will
manifest itself within the next quarter’s analysis but will not be retrospective to
the beginning of this financial year. Directorates have been instructed to inform
the Creditor Team of any disputed invoices.
The e-Merge Team has been asked to re-configure SAP to include only
“commercial” payments within the calculation for this indicator.
6.
RECOMMENDATION
6.1
Members’ comments and questions on our performance are welcomed.
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