Agenda item

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 the Council’s interest to understand the reasons for the deficit and to work with Ubico to ensure it had proper controls in place.

94.4           In terms of actions within the Council Plan Performance Tracker, Overview and Scrutiny Members had noted the achievements highlighted in the report in terms of approval of the Medium Term Financial Strategy; approval of a new commercial strategy; the official launch of the growth hub; the completion of works to Lower Lode depot car park; the implementation of a car pool; the increased garden waste income; and consultation on important issues such as the Tewkesbury Borough Plan and the Ashchurch Masterplan. In addition, there had been general questions on various actions, the key ones being how the provision of electric charging points was progressing; the difficulties in progressing anything around the Battlefield Site; and progress in respect of the Tourist Information Centre. The Head of Finance and Asset Management had indicated that he anticipated the installation of electric charging points in quarter two of 2019/20 for use by both staff and the public. In addition, the Head of Development Services had explained that the opportunities regarding the Tourist Information Centre (TIC) were part of the overall strategy for tourism which would be presented to Members shortly. There had been various conversations in relation to the centre and the opportunity for a service agreement with Tewkesbury Abbey; however, there were issues about the use of the Hat Shop building, where the TIC was currently situated, and how this fitted with the conditions of the grant, so Officers had been working to ensure compliance. With regards to the sad face on the modular housing related action, Members had thought this was harsh given that two or three related projects were progressing. A separate report had also been presented at the Committee in relation to Healings Mill which Members had requested so as to get a greater understanding of the issues the site presented; a further report would be presented in six months’ time.  

94.5           During the discussion which ensued, a Member requested an update on the current situation regarding Ubico. In response, the Deputy Chief Executive advised that the key purpose of the regular meetings was to address the ongoing issues. The role of the Deputy Chief Executive was to arbitrate and ensure the timescales for getting the matters addressed was agreed. The meetings held to date had been very productive but there were still elements of the service which Tewkesbury Borough Officers were not happy with and a letter had been sent to Ubico identifying those issues and setting out deadlines for them to be addressed i.e. the reasons for the significant overspend on tyres. It was understood this was not a clear-cut picture but a justification of costs was needed. The Deputy Chief Executive undertook to circulate a summary of the actions agreed following the meeting. In terms of the discussion which had taken place at the Audit and Governance Committee, the Head of Corporate Services explained that there was an allocation of days for Ubico within the Internal Audit six monthly plan and this had been agreed by the Committee. The Internal Audit Team would work with the Head of Finance and Asset Management and Head of Community Services to decide how best to use the days and ensure no duplication of work with Ubico’s Internal Audit Team – there should be a clear way forward on this work within the next month.

94.6           Referring to Page No. 18, deliver short-term access improvements to the infrastructure around the Ashchurch Housing Zone, a Member noted that the overall programme delivery had been extended to March 2022 and she questioned whether that was acceptable in terms of the initial deadline of three years. In response, the Chief Executive confirmed that Homes England had extended the date itself to allow it time to process the applications which had been received. The Member also questioned whether the paperless billing for Council Tax and business rates would be introduced from the next financial year. In response, the Head of Corporate Services indicated that it would be implemented by June 2019 which meant it would not be available for the 2019/20 Council Tax billing.

94.7           The Chair offered his thanks to the Overview and Scrutiny Committee Chair for his updates to Executive Committee during his time as Chair. Accordingly, it was