Issue - meetings

To receive and respond to the findings of the Overview and Scrutiny Committee‘s review of the quarter three performance management information. 

That the Overview and Scrutiny Committee’s comments on the Performance Management Report for Quarter Three of 2018/19 be NOTED.  

94.1           The report of the Chair of the Overview and Scrutiny Committee, circulated at Pages No. 15-64, asked Members to review and, if appropriate, take action on the observations of the Overview and Scrutiny Committee following its review of the 2018/19 quarter three performance management information.

94.2           Attention was drawn to the observations made by the Overview and Scrutiny Committee, attached at Appendix 1 to the report; the Council Plan Performance Tracker, attached to the report at Appendix 2; and the financial performance information circulated at Appendices 3-5.

94.3           The Chair of the Overview and Scrutiny Committee explained that the Committee had raised general questions around the performance management information; however, the main focus of questions, and something about which Members had significant concern, was the financial performance of Ubico. Whilst the report of the Head of Finance and Asset Management indicated an overall budget surplus of over £600,000 against the budgeted profile as at the end of quarter 3, it was felt to be disappointing that the Ubico contract had reported a projected overspend in excess of £230,000 – an increase of £89,000 from quarter 2. This had provoked a lengthy debate with concern expressed over the £59,000 overspend on tyres and how that had happened - no explanation could be provided but Officers had given assurance that robust questions were being asked of Ubico. The budgeting between quarter two and quarter three was felt to be unacceptable which was a view shared by the Head of Finance and Asset Management; however, he was confident that working with Ubico’s new financial controller would ensure accounting practices were improved moving forward. Assurance was provided that all costs would be looked at to ensure they had been correctly allocated. The Head of Community Services had advised that the Ubico response was inadequate and, as a result, meetings would take place every three weeks between himself, the Deputy Chief Executive, the Head of Finance and Asset Management and the Managing Director of Ubico to try and understand the deficit. Members had asked whether the Council’s internal audit team could investigate but had been advised that, whilst this was possible, in the first instance it would be beneficial to obtain Ubico’s internal audit team audit plan to see if any assurance could be obtained from their work. In response to a query as to whether it was possible to compare the figures with partner authorities, the Head of Finance and Asset Management confirmed that he had access to the high-level figures and a number of other authorities were also in deficit for various reasons. The Chief Executive had assured Members that Officers were taking a robust approach with Ubico and, whilst there had been concerns about service issues previously, this was the first time there had been a problem of this level with the Ubico contract framework. Although some of the overspend was understandable, the deficit for the quarter was significant and the information being provided had been very limited. It was in  ...  view the full minutes text for item 94