Item 8 - CPA - Ealing Council

KLOE Summary of criteria2.2 The financial performance of significant partnerships is reviewed.2.2 There is a training programme in place for members and staff onfinancial issues.2.3 A member has been allocated portfolio responsibility for assetmanagement and local performance measures in relation to assetshave been developed.Financial standing3.1 Collection and recovery of material categories of income ismonitored.Internal control4.1 Appropriate staff are trained in risk management.4.2 Criterion in relation to effective arrangements for internal financialcontrol, for example, carrying out regular bank reconciliations andreconciliations of major feeder systems (new).4.2 Standing orders, standing financial instructions and systemprocedure notes are reviewed and updated as appropriate.4.2 Criterion at level two in relation to business continuity plans asrequired by the Civil Contingencies Act (2004) (new).4.2 Governance arrangements are in place for significant partnerships.4.3 The council is proactive in raising standards of ethical conductamong members and staff and can demonstrate that counter fraudand corruption work is adequately resourced.Key actions for 2007Work to take forward further improvements will be carried out with directsupport from Strategic Finance working with services through the FinanceStrategy Group and FABS DMT. The team is not complacent and work isplanned on improving financial reporting specifically on group accounts,improving capital planning and project appraisal through theimplementation of a quarterly capital review group and carrying out aprogramme of 5 service led VFM reviews. These services have beenselected for VFM reviews during 2007 - Parks & Countryside service,Parking, Housing Management, Schools service discretionary service,Street Cleansing. The continuing implementation of the improvementactions will assist the Council in managing its resources more effectively.Set out in the following table are key actions arising specifically from the2007 KLOEs:7

Key ActionsKey Line of Enquiry Action Target Date StatusFinancial ReportingLevel 3-The council candemonstrate that it isconsidering the viewsof a range ofstakeholders inmaking its decisionwhether topublish an annualreport; andThe council publishessummary financialinformation that meetsthe needs of a range ofstakeholders. (bothnow a ‘must have’)Stakeholderneeds takeninto account.Statements ofaccounts pageon websiteinvitingsuggestions.Summarydocument for2006/07accountsproducedSeptember 2007Owner:Director ofCorporateFinanceWorkprogrammedto enableinclusion inAround EalingSeptember2007Financial ManagementLevel 3- There is aregular trainingprogramme providingtraining on financialissues for membersand relevant nonfinancestaff (now a‘must have’)Identify andproducestrategiccapacity todeliver afinancialtrainingprogramme tobudget holdersto improve theskills andcompetenciesof differentstakeholdergroupsPlan to be inplace March2007ProgressongoingOwner:Director ofCorporateFinanceTraining onyear endclosing andgrantsscheduled infor March andJune. Membertraining will beprovided withfinancialawarenesstraining.Trainingplanned fordelivery duringApril –September2007Financial ManagementLevel 2 -The financialperformance ofsignificantpartnerships isregularly reviewed,linked to outputs, andthe results shared withpartners and actedupon. (now a ‘musthave’)Set upprocesses toreviewperformanceand provideupdate reportsto FinanceStrategy Groupand CorporateBoardQuarterlyOwner:Heads ofFinanceProcesses tobe set up toreviewperformanceincludingsection infuture FinanceMonitors8

Financial managementLevel 3 The councilhas developed a set oflocalperformance measuresin relation to assetsthat evaluate asset usein relation to corporateobjectives. (now a‘must have’)Complete AssetManagementStrategy bywithperformanceindicatorsApril 2007Owner:Director ofregeneration andcommunitydevelopmentThis will formpart ofwork on theupdatedAssetManagementPlan.Internal Control Level2- The council hasidentified itssignificantpartnerships and hasappropriategovernancearrangements in placefor each of them. (nowa ‘must have’)Set upprocesses toput in placeappropriategovernancearrangementsApril 2007Owner:Director of LegalServicesPartnershipprotocols inplace.Directory ofpartnershipsand audit ofarrangementsto becompletedApril 20074. FinancialImprovements in overall CPA performance will in time lead to a reductionin inspection and audit activity and therefore result in savings for theCouncil. This year Ealing will be charged £141,000 by the AuditCommission for inspection. There are no financial implications arisingfrom the improvements required to maintain level 3 scores.Some level 4 scores will require changes to working arrangements thatmay have an impact upon costs. Any increased costs will be identified ata later date and may need a value for money assessment on furtherimprovement of CPA scores before being considered for approval.5. LegalComprehensive Performance Assessment is underpinned by thestatutory provisions of the 1999 and 2000 Local Government Acts.There are no direct legal implications as part of the report. However, legalaspects are covered in the Key Lines of Enquiry (KLOEs) under theInternal Control Assessment and Ealing has achieved much in this areae.g. around governance and decision making.6. Value For MoneyThe Auditor’s assessment for 2006 on the fifth element of Use ofresources, ‘Value for Money’, is level 3, ‘performing well’, animprovement of 1 on the 2005 score. The self-assessment in Appendix 1illustrates how Ealing meets the relevant KLOE’s and the progress thathas been made in delivering Value for Money over the last 12 months.9

7. Risk ManagementThis is covered in the Key Lines of Enquiries under Internal Control.8. Community SafetyThere are no direct community safety implications as part of this report9. Links to Strategic ObjectivesThe council’s medium-term financial strategy, budgets and capitalprogramme are designed to deliver the Council’s strategic priorities. Thecorporate business plan drives the medium-term financial strategy, withchanges in allocations determined in accordance with policies andpriorities. The budget set for 2006/07 addresses the delivery of local andnational priorities and the Council’s performance and focus on the needsof its communities. Effective financial management supports the strategicobjective for improved value for money and keeping council tax rises low.10. Equalities and Community CohesionThere is no need for an Equality Impact Assessment as part of this report.11. Staffing/Workforce and Accommodation implications:Most of the work required to improve on the Council’s ‘use of resources’is already included in staff objectives and work programmes.12. Property and AssetsThere are no direct property/asset implications as part of this report.13. Any other implications:There are no other implications as part of this report.14. ConsultationCorporate Board considered this report on 20 December.15. Timetable for ImplementationOfficers are committed to continous improvement in the use of theCouncil’s resources. Financial Management and the other elements of theassessment are ongoing processes.16. AppendicesAppendix 1 - Self-assessment for Value For MoneyAppendix 2 - Key Lines of Enquiry for the 2007 Assessment17. Background Information• Audit Commission -CPA – The Use of Resources Framework for 2006• Key Lines of Enquiry for Use of Resources Assessment10

ConsultationName ofconsulteeDepartmentDate senttoconsulteeDateresponsereceivedfromconsulteeCommentsappear in reportpara:InternalRichard Ennis Executive Director of Finance 8 Dec 17 Dec Para 3and Business SupportSarahDirector of Corporate Finance 8 DecSelvanathanHelen Harris Head of Legal Services 8 Dec 13 Dec Para 3Cllr David ScottPortfolio holder for Financeand PerformanceReport HistoryDecision type:Urgency item?Non-key decisionNoAuthorised by Cabinetmember:Date report Report deadline:drafted:8 Dec 2006 18 Jan 2007Date report sent:Report no.:Report author and contact for queries:Nigel Watson, Head of Strategic Finance, x640311