Agenda and minutes

To approve as a correct record the minutes of the meetings of the Joint Committee held on 26 June and 28 August 2015, and to authorise the Chairman to sign them.

The minutes of the meetings of the Joint Committee which took place on  26 June and 28 August 2015 were agreed as a correct record and signed by the Chairman.

Members were provided with a report which updated the position in respect of 3 of the 4 oneSource Key Performance Indicators (oKPIs).

With regards to oKPI2 – savings achievements, the report informed Members that the oneSource forecast financial position at August 2015 (period 5 reporting) showed a projected overspend of £898k. This had been largely due to delays in implementing service review recommendations and associated service restructures.

It was explained that the suspension of the Delphi programme (One Oracle implementation in Newham) had also significantly contributed to the delay, especially in relation to Finance, Exchequer and Transactional Services and Strategic and Operational HR. These services had shown a combined pressure in the region of £700k, which could not be fully realised until processes were aligned and rationalised, allowing reductions in staffing requirements. Officers commented that savings in management costs had been made where possible as had other one-off savings.

Concerning oKPI 3 – percentage of Council Tax collected, it was reported that the rate of collection In Havering throughout the first six months of the year remained comparable to that achieved over the same period last year and was slightly ahead as at the end of September, at 58.40%. It was also noted that Newham had achieved an outturn of 52.79% in September, an increase of 0.54% compared to last year.

With regards to oKPI 4 - percentage of National Non-Domestic Rates (NNDR) collected, Havering was ahead of its profiled target of 59.09%. It was noted that NNDR collection had performed slightly lower at a rate of 60.29% for Newham in comparison to the collection rate of 61.77% for the same period last year. It was explained however that the recent inclusion of the Olympic stadium, for which payments were not due until October 2015, had increased the overall collectible debit and therefore to some degree had distorted the collection rate.

Members voiced their concern at the projected overspend of £898k and sought assurances from officers that the savings target for Year 2 would be met. Officers stressed that savings targets for Year 2 would be met and that the projected overspend was largely due to the delay in delivering the one Oracle system in Newham. The consequence of the delay had slowed the integration of services across both boroughs, which were now being progressed.

It was agreed that members of the Joint Committee would receive monthly updates on progress towards reaching the Year 2 savings targets.

 The Joint Committee Noted the: -

·         oneSource key performance indicators (KPIs);

·         current oneSource forecast outturn position.

The report updated Members on performance relating to oKPI 3 – customer satisfaction with oneSource services.

It was explained that performance in this area was reported to the Joint Committee every six months after quarter 2 and 4, and that the indicator was collected by an electronic survey campaign which was undertaken biannually.

A challenging 80% customer satisfaction target has been set for oneSource to exceed in 2015/16. For September 2015, combined customer satisfaction increased to 75.82%, rising by 5.82% since the previous survey was conducted in January 2015.

Members noted that individually, customer satisfaction with the service received was 78% from Havering customers, 69% from Newham customers and 81% from oneSource customers. It was report that the best performing services were Internal Audit and Counter Fraud (83%), Procurement (83%) and Human Resources & Organisational Development (85%).

The performance results demonstrated that oneSource had made significant improvements to the delivery of its services but still needed to do more to meet its target. Officers suggested that there needed to be a greater focus setting satisfaction targets which struck a balance between managing service user expectations with the resources available within oneSource.

A member of the Joint Committee voiced concerns that sufficient resources weren’t available in a oneSource service area to assist with operations in another service areas in Havering Council. Officers agreed to discuss the matter outside of the meeting.

The Joint Committee Noted the oneSource customer satisfaction key performance indicator (KPI).

Members were informed that since the business case for oneSource was originally developed, the financial challenges facing Havering and Newham Councils had continued to increase.  As the level of funding available to the councils reduced and contract, it was appropriate that the back office contribute further to the savings required, in order to continue to protect front facing services. 

Officers suggested that a higher level of savings would be delivered as oneSource services and processes are harmonised across the two councils, and to reflect the general reduction in the overall scale of operations across the authorities.  Consequently, both Section 151 Officers had included within their budget strategies additional savings requirements from oneSource.

It was proposed, therefore, that oneSource be asked to deliver additional savings totalling £3.5m per annum by 2018/19 as part of both partner authorities’ budget strategies. Officers commented that both Havering and Newham Councils, in consultation with oneSource, would need to develop a strategic approach on how those savings could be achieved.

The Joint Committee Noted the report and that a further report would be brought to the February meeting outlining potential options for delivering the further savings required by both councils.

Verbal report

Members noted the verbal update on potential business opportunities connected with the expansion of oneSource and were encouraged by the expressions of interest shown by other local authorities in the services which oneSource delivers