HERTFORDSHIRE COUNTY COUNCIL

POLICY, RESOURCES & PERFORMANCE CABINET PANEL

WEDNESDAY 11 JULY 2012 AT 2.00 PM

CABINET

MONDAY 16JULY 2012 AT 2.00 PM

COUNTY COUNCIL ANNUAL REPORT 2011/12
Report of the Chief Executive & Director of Environment

[Author: Adam Levy, Policy Officer

Tel: 01438 845355]

Executive Member:Robert Gordon (Leader of the Council)

  1. Purpose of report

1.1To present the County Council’s draft Annual Report for 2011/12 (see Appendix A).

  1. Summary

2.1Despite the removal of the statutory obligation to produce an Annual Report, Hertfordshire County Council has chosen to continue to do so as best practice.

2.2The Annual Report structure remains similar to last year’s version, specifically reporting on:

  • the County Council’s overall performance,
  • the County Council’s expenditure for 2011/12
  • progress against Hertfordshire County Council’s corporate priorities
  • progress against the Council for the Future programme
  • the Council’s progress on developing localism
  • future challenges and risks for the Council

3.Recommendation

3.1The Policy, Resources & Performance Cabinet Panel is invited to recommended that Cabinet agrees that this report be sent to County Council on 17July 2012 for information.

4. Background

4.1It is not proposed to publish hard copies of the report. As with last year’s report, it will be web –based. The intention is to make it as engaging, interactive and user-friendly as possible by showcasing case studies of council best practice through the use of pre-existing video footage of council best practice.

5. Financial Implications

None.

6. Equalities Implications

None.

1

APPENDIX A

HERTFORDSHIRE COUNTY COUNCIL

ANNUAL REPORT 2011/12

Foreword from Robert Gordon, Leader of the County Council and John Wood, Chief Executive

Welcome to Hertfordshire County Council’s Annual Report for the year 2011/12 which takes stock of what we have achieved over the year, and how we have spent your money.

The national financial picture continues to challenge us. With rising demand for public services, above average inflation and increasing demographic pressures, the past year has been an extremely challenging one. We have faced these issues head-on, making the necessary savings whilst doing all we can to protect front line services. There is much more to do, but we are confident that the changes we are putting in place will enable us to provide services that continue to meet the changing needs of our residents now and in the future.

2011/12 was the second full year of our county-wide transformation process ‘Council for the Future’. Through the programme we have delivered £91m of savings for 2011/12, exceeding our target of £88.5m. Whilst considering this a success, it has not been easy and the £11.3 million in savings made over the last two years from reducing the council’s payroll demonstrates our commitment to protecting services above all else. We challenged staff to innovate and as a result 85% of savings have come from efficiencies and just 15% from service changes. We’ve not shut a single public library or children’s centre, and continue to spend record sums on our roads.

However, the financial challenges that we have faced this year tell only part of the story.

Hertfordshire County Council has fully embraced the new world of self improvement. With local councils no longer receiving an annual scored assessment of overall performance, we have actively sought ways of independently assessing and externally verifying the services we provide. Through this, we are confident that Hertfordshire County Council’s performance remains amongst the best nationally.

During the past year HCC has been shortlisted for two prestigious national awards: the Local Government Chronicle (LGC) Council of the Year award and the Municipal Journal Best Achieving Council.

This report documents the key challenges we have faced and how we have met them. We know we have a lot of work still to do, but we are proud of the successes we outline in this document, and of our staff, whose hard work has helped us achieve them.

Our performance

  • Hertfordshire County Council’s performance continues to rankamongst the best nationally across its services. Key achievements are outlined throughout the report under the relevant Council Corporate Plan priority.
  • The county received its best ever educational results last year and continued to be amongst the best nationally. In 2011, 67% of Hertfordshire children gained five A*-C grades at GCSE including English & Maths.
  • Ofsted (the inspectorate of Children’s Services) conducted an unannounced inspection of our contact, referral and assessment arrangements for children's services in May 2011 and concluded that "highly effective arrangements are now in place to provide a consistent and coherent response to children and young people who may be at risk."
  • Our adoption service was also inspected by Ofsted in September 2011. It found "good outcomes for children,which are outstanding in some respects”.
  • Following inspection in January 2012, our Youth Offending Service was found to be "performing reasonably well" with "examples of creative, thoughtful case management and effective engagement with children and young people and families."
  • A programme of streetlight modification, enabling streetlights to be switched off in areas of low demand between midnight and six o’clock in the morning, is being rolled out across Hertfordshire. Some residents were concerned that this would lead to an increase in crime. However, evidence gathered by Hertfordshire Constabulary has not supported this. The move will reduce the energy used by the county’s street lights by approximately 35 per cent, saving over £1million every year.
  • The Traffic Penalties Tribunal ruled in February 2012 that bus lane enforcement measures put in place for Moor End Roadin Hemel Hempsteadwere not enforceable. The County Council has subsequently offered to pay back the penalty fines paid by drivers.
  • Hertfordshire County Council was short listed for two prestigious awards; the ‘Council of the Year’ award by the Local Government Chronicle (LGC)and the “ ‘Best Achieving Council’ award by the Municipal Journal.
  • Serco, the council’s shared managed services partner, won an Innovation Award for the new Social Care Access Service that they deliver on our behalf.
  • Our organisation was recognised as one of the top gay-friendly workplaces in the country in the 2011-12 Stonewall Workplace Equality Index.
  • We reached acollective agreement with the trades unions on our staff’sterms and conditions. Coming into effect on 1t April 2012,key changes included the removal of fringe allowance and changes in sick pay and overtime, saving just under £7 million a year.
  • Despite challenging financial times, the Council still managed to invest £181.3 million on improving existing and acquiring new assets.
  • The Shared Internal Audit Service (SIAS) partnership between the Council and five Hertfordshire District Councils has contributed ongoing efficiency savings of £300,000 for its partner organisations. The SIAS is delivering high quality value added assurance work with less resource.

Our finances

The following summarises Hertfordshire County Council’s full statement of accounts for the financial year from 1st April 2011 to 31st March 2012, which is, at the time of publication, subject to audit opinion. A full set of the accounts was provided to the Audit Committee on 20th June 2012. A full set of the previous years audited accounts can be found at:

Income and expenditure account:

The income and expenditure account not only represents spending during the financial year on day to day items, such as salaries, premises costs and supplies & services, it also shows our liabilities in terms of future pension costs and depreciation charges. It also shows income from government grants, council tax and other sources received during the year. The table below sets out the net cost of providing services in Hertfordshire during 2011/12 and how this was financed.

2010/11
£m / 2011/12 £m
Services
Adult Social Care / 293.0 / 333.3
Central Services to the Public (including Corporate Court Services) / 7.8 / 8.1
Children’s Education Services / 244.3 / 360.3
Cultural, Environmental, Regulatory Planning Services / 74.5 / 73.5
Fire Rescue Service / 45.5 / 49.3
Highways Transport Services / 80.9 / 100.7
Housing Services / 21.7 / 4.4
Non Distributed Costs / 4.1 / (5.3)
Cost of Services / 771.8 / 924.3
Exceptional Items* / (205.5) / 9.0
Net Cost of Services / 566.3 / 933.3
Other Adjustments
Impairment and Depreciation Charges / (118.9) / (229.9)
Capital Financed by Grants, Reserves and Receipts / 146.2 / 151.1
Pension Costs (Employers and Deferred) / 170.1 / (3.9)
Other Items (including Interest and Financing costs) / 50.0 / 83.8
Total Other Adjustments / 813.7 / 934.4
This was paid for by
Local Council Tax Payers / 500.2 / 504.5
Business Rates / 153.6 / 153.3
Government Grants / 159.9 / 276.6
813.7 / 934.4

* Exceptional items relates to there having been a surplus on the actuarial gains in the pension fund assets/liabilities in 2010/11. For 2011/12 these were not of anexceptional nature.

Balance sheet:

The balance sheet shows the end of year financial position for the council as a whole. This includes the financial value of the land, buildings, highways and other assets we own, as well as money owed to us and by us.

2010/11 £m / 2011/12 £m
Assets and (Liabilities)
Capital Assets (including Heritage Assets) / 2953.9 / 2764.3
Cash at Bank and Investments / 77.7 / 208.0
Stock / 4.2 / 4.5
Money Owed to the Council / 124.7 / 120.5
Money Owed by the Council / (202.6) / (239.0)
Long-term Borrowing / (306.6) / (278.9)
Capital Receipts in Advance / (82.9) / (145.0)
Pension Liabilities / (708.2) / (867.5)
Provisions / (28.7) / (39.2)
Total assets less liabilities / 1831.5 / 1527.7
Reserves and Balances
Pension Reserve / (708.2) / (867.4)
Other Reserves / 2349.4 / 2188.2
Specific Reserves / 135.1 / 151.7
General Fund Balance / 18.3 / 26.0
Capital Grants Unapplied / 36.9 / 29.2
Net worth / 1831.5 / 1527.7

Key Terms for Balance Sheet Items

Capital Assets include land, buildings, highways infrastructure, heritage assets, plant, equipment and vehicles. The value of our schools represents the major part of the balance sheet value. The decrease in valuerepresentsthe number of schools converting to academies and therefore conversion of school land and buildings to leases.

Heritage Assetsare assets that are intended to be preserved in trust for future generations because of their cultural, environmental or historical associations.

Pension Liabilities and the Pension Reserve represents our commitment to pay pensions to both retired staff and current employees upon retirement net of the value of the pension fund investments. The reported liability has increased as a result of an adverse change in the financial assumptions used in the actuarial variation. The liability is large, but our financial position remains sound due to both its long term nature and statutory arrangements for funding it.

Other Reservesthese relate to capital accounts, financial instruments and property revaluations which are shown in the income and expenditure account, and generally do not have an impact on the council’s general fund balance or council tax.

Specific Reserves are funds we hold for specified purposes. These include unspent allocations of £66.2 million held in relation to schools, as well as money for future capital investment.

General Fund Balances are required to provide adequate funds to meet any unforeseen calls on resources.

Capital Grants Unappliedare grants held for capital purposes where the conditions of the grant have not yet been met.

Capital Investment:

In addition to the day to day expenditure shown in the Income and Expenditure Account, £181.3 million was spent on improving existing and acquiring new assets.

2010/11 £m / 2011/12 £m
Services
Adult Social Care Services / 5.6 / 12.9
Central Services to the Public (including Corporate Court Services) / 8.8 / 6.5
Children & Education Services / 90.1 / 99.1
Cultural & Environmental Services / 1.8 / 1.9
Fire Rescue Service / 1.0 / 1.4
Highways & Transport Services / 58.6 / 59.5
165.9 / 181.3
Funded by
Borrowing / (25.1) / (26.3)
Grants / 91.9 / 131.8
Capital Receipts / 33.9 / 2.0
Revenue Contributions / 44.8 / 56.5
Capital Reserves / 20.4 / 17.3
165.9 / 181.3

[Link – Video of Deputy Leader presenting ‘A Day in the life’ of our services and where we spend our money]
Support economic wellbeing

  • Hertfordshire’s economy, while remaining fundamentally strong, is still affected by the wider national economic climate. The county’s overall employment rate has slightly fallen to 74.2% for 2011 compared with 75.1% in 2010. Whilst this is the lowest it has been since 2004, the employment rate in Hertfordshire is still higher than the best performing region in the country (the South-East), which was around 72%. Currently, around 2.7% of the working age population are claiming Job Seekers’ Allowance – a slight rise on the previous year, though the figure still compares favourably to the rest of the region.
  • The skills levels of Hertfordshire’s residentsremain well above both the regional and national averages with 76.5% of the population qualified to level 2 (GCSE equivalent), up from 74.5% last year. Similarly, the percentage of the population qualified to level 4 or higher (degree level equivalent) has increased from 37.4% to 39.1% which is the highest ever level in the county.
  • Hertfordshire was successful in its bid to establish a county-wide Local Enterprise Partnership (LEP) to drive economic growth in the county. The business-led LEP share with the County Councila goal to promote steady and sustained economic growth in the county with an overall vision of Hertfordshire becoming a world leading economy; one of the top three in the country outside London.
  • TheLEPhas secured over £16 million from Central Government’s Growing Places Fund. This money is to address priority infrastructure needs, attract private sector investment and encourage job creation. £11.5 million of this money is to help fund four projects: Watford Health Campus, Maylands Gateway, Spencer’s Park in Hemel Hempstead and Elstree Studios in Borehamwood.
  • Jointly with Buckinghamshire County Council, Hertfordshire County Council hassecured£3.07 million to support the roll-out of superfast broadband in the two counties. To find out more go to
  • 8.3%of Hertfordshire’s businesses are signed up to CompeteFor – the portal which enables businesses to compete for contract opportunities linked to the London 2012 Games and other major public and private buying organisations. This is the highest percentage in the East of England which has an average sign-up of 6.7%.
  • Hertfordshire gives grant funding to local Citizens Advice Bureaus around the county to provide budgeting advice, welfare benefits information and assistance with appeals and debt problems. 5,500 people were assisted during 2011/12 with over £5 million in additional benefits claimed by vulnerable people.
  • The council strengthened its commitment to recruiting young people, particularly those from more vulnerable group to apprenticeships. For example, 9 young people who were, or are, Children Looked After by the Authority have been employed this year.

[Case Study – LEP]

Maximise independent living

  • We have continued to improve our support for people who act as carers for their family or friends. In 2011/12, 40% of family carers received their own needs assessment from adult social care – and a specific carers’ service to support them in their role. This is a significant improvement from 33% in 2010/11 and remains above our target.
  • The County Council continues to increase the percentage of people who have a personal budget for their own care - and can decide what care and support services best meet their needs. In 2011/12, 64.4% of social care clients had a personal budget (meaning they knew how much their care cost and that they had a choice over it was delivered), above our target of 60% and an improvement on 57.6% in 2010/11.
  • During the last 12 months we have continued to work with Health partners to integrate health and social care services. The East of England Ambulance Trust now operate 'falls response cars' throughout the county, where a paramedic and a social worker visit people who have fallen at home to get them back on their feet and prevent hospital admission. This means that 75% of people who fall at home are given care at home rather than being admitted to hospital. We are working with G.P.’s in Welwyn Hatfield to deliver health and social care assessments via the same phone-line - meaning people get the service they need much more quickly first time.
  • Over the past year, Hertfordshire County Council has been preparing for the role that the new Health and Wellbeing board will take when it officially come into effect in 2013. Since July 2011, with membership comprised of the County council, District councils, NHS Hertfordshire, Clinical Commissioning Groups and Link, a shadow Health and Wellbeing board has been working to develop key priority areas to focus on to ensure that the Health and Wellbeing Board fulfils its aim of reducing health inequalities and improve the health and wellbeing of all people in Hertfordshire.
  • As part of our modernisation programme, we have created an 'eMarketplace' where people and their families can look online for care and support services for people. These range from gardening, cleaning services and pendant alarms through to homecare, residential care homes and advice about managing money. eMarketplace will be launched in Autumn 2012.
  • People who have been in hospital or have had an accident at home often just need some time to recover and regain their independence. Our enablement service with Goldsborough Home Care provides up to six weeks free support at home for people to assist them with daily tasks. 80% of new people who came to social care for support last year used this service and half of them didn't need any support afterwards.
  • We have launched a new information and advice service, Herts Help, which anyone can call on 0300 123 4044 for advice if they are concerned about themselves or someone else. Further information can also be found called here. Thousands of people have already called the number and received independent and confidential advice.
  • Ten young apprentices are employed annually in the council’s supported living units for people with learning disabilities. The retention rate is above 90% and the scheme won a national award. It is being widened out to other parts of social care over the next 12 months.

[ Case Study - Video on Falls Project]

Ensure a positive childhood

  • The proportion of Hertfordshire children achieving a good level of development in the Early Years Foundation Stage is above the national average and Hertfordshire’s early years services are performing well compared to other comparable authorities, and at a lower cost per head.
  • Our 82 Children’s Centres continue to provide both universal and preventative services, as well as delivering targeted work to children and their families needing extra support in order to narrow the gap in later attainment. 68.5% of 0-5 year olds in Hertfordshire are now registered with a children’s centre compared to 42.8% last year. 62.5% of our children’s centres that have been inspected by Ofsted through their new inspection framework have been deemed good or outstanding.
  • Our Children Looked After (CLA) strategy is helping us ensure that we have the right children in our care, and that we provide the right support to those who return home. The number of looked after children in Hertfordshire peaked in 2010 and has steadily decreased since then. In January 2012 there were 1029 looked after children. This represents a 9.3% reduction since 2010 at a time when national figures continue to rise. However, while our rate of children looked after per 10,000 of the overall population has reduced from 44.3 to 42.5, this is still higher than our national comparators (38).
  • As a result of a range of initiatives and approaches, the rate of referrals to social care assessment teams has reduced by 25% from 475.6 referrals per 10,000 in April 2010 to 356.1 in March 2012. The completion and quality of initial and core assessments within timescales have also been consistently strong over the past year, significantly above target and performance in similar areas.
  • We have established the country’s first joint child protection investigation team with the Police to assess and respond to allegations of child abuse and this has made a significant advance in information sharing and joint action to protect children.We have also been piloting the use of Police Community Support Officers to support our child protection teams, including accompanying social workers on selected visits to potentially abusive or aggressive families.
  • Hertfordshire’s Academy for social workers welcomed its third year of new recruits in September 2011. Hertfordshire, like many other local authorities, had a long-standing difficulty in recruiting qualified social workers. The introduction of our Academy, which was the first nationally, has turned the situation around and has significantly reduced the number of vacancies from 51 in 2010 to 21 in 2011. There is still work to be done to reduce this number further and more improvements will be in place by September 2012.
  • ‘Services for Young People’ was launched in 2011 to strengthen the provision of continued care for our most vulnerable young people as well as delivering more efficient use of resources. The Targeted Youth Support Service component is making a big difference in helping teenagers to remain with their families – in 2011,185 children and young people aged 10 and over entered care in 2011 compared with 310 in 2010.
  • We are piloting a range of family support projects, working with some of the most deprived families across the county, which is ensuring better coordination of support together with Police, Health, Adult Services and the voluntary sector. Positive outcomes are already being seen for a number of children supported in this way including preventing them from needing care or ensuring that they have the required support to stay in their own home.

[Case Study - Video on emotional resilience lessons in school]
Secure a good education for all