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Public performance reports

Revenues and service costs

The Council Plan Connect, outlines our objectives for 2017-22.  Connect ambitions and objectives should not be seen in isolation, they interact with each other and as we achieve success in one, we move closer to success in others.  In delivering our vision to ‘improve the quality of life of everyone in South Lanarkshire’ our ambitions show how our work links with our partners including our Community Planning Partners. 

Each year we produce an Annual Performance Report which details how we have performed in achieving our Connect objectives. To complement the Annual Performance Report we have created a suite of individual Public Performance Reports. This report outlines the performance in relation to our revenue and service costs and how this links to the outcomes of our ambition to ‘Achieve results through leadership, good governance and organisational effectiveness'.

Revenues and service costs

The following performance information and indicators relating to revenues and service costs measure our efficiency in processing and charging for services, collecting debts and income. Efficient use of public money becomes ever more important as budgets continue to be squeezed and funding becomes more and more scarce.  The Reporter Spring 2016 provides further information about the 2016-17 budget setting and financial considerations.

Revenues

Revenue expenditure is the cost of running services: for example salaries, electricity, supplies and minor repairs. This will be off-set by Revenue income or money received from, for example the sale of goods or services, admission fees and commissions. In 2016-17 revenue funding of £669 million was raised from two main sources - funding from Scottish Government grants, Non domestic rates and charging for certain services - £544 million (83%); and Council Tax - £115 million (17%).

More on the council's financial information is included in the Annual Performance Report (pages 14 and 15) and the final outturn report to committee for the year including an extract from the Annual Report and Accounts.

Savings including Efficiency

The savings exercise is an integral part of the budget setting process, and helps the council to arrive at a balanced budget each year. Resources are asked to identify savings which can be implemented, with minimal impact to service delivery, where possible. The package has included savings arising from efficiencies, overheads, charges (both inflationary and non-inflationary) and those with a service impact. 

Consultation

As part of the annual budget setting process, the council undertakes a public consultation exercise involving representatives from the Citizens’ Panel and specific interest groups like the Employee Network, Trade Unions, South Lanarkshire Youth Council, Seniors Together, the South Lanarkshire Disability Partnership and Access Panel and Lanarkshire Ethnic Minority Action Group.  The focus of the consultation changes each year depending on the savings proposed and the budget priorities. The results from the public consultation events are advised to all elected Members.  The public are also asked for their views on the budget proposals by emailing savings@southlanarkshie.gov.uk.

Support service costs

Expenditure and services that are not directly linked to, but are incurred in providing the council’s front line services are classed as ‘Support’ costs.
 

Support service costs as a percentage of total gross expenditure – No target set

What this means This indicator calculates the proportion of the total cost of running the council that is spent on support services like Finance, Legal, Human Resources, Information Technology, Internal Audit, Procurement and Asset Management.
Why this matters By monitoring the cost of providing support services the council can compare spend over previous years and against the Scottish average.
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC 4.3% 4.3% 4.6% No
Scotland 5.3% 5.4% 5.0%
How we have performed in improving this public service The marginal increase in the cost of support services as a percentage of total gross expenditure from 4.1% to 4.2% is due to a decrease in the gross expenditure of the council. Looking forward, work is ongoing across a number of services that will see reductions in the level of support costs, specifically in relation to Finance, IT, Personnel, Legal and Business Support. Achievement of these savings will be monitored through the savings achievement updates prepared for the Corporate Management Team.

Making payments

Percentage of invoices that were paid within 30 days – Target 85%

What this means 30 calendar days represents the normal credit term period by which debts should be paid. This indicator calculates how many invoices are paid within this timescale.
Why this matters This indicator allows the council to keep track of payments to ensure target is being achieved. 
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC 94.8% 95.8% 95.0% No
Scotland 92.5% 92.8% 93.1%
How we have performed in improving this public service Our performance in paying invoices on time dropped slightly (by 0.8%) in 2016-17 but is in line with the previous year and continues to exceed the national average.

Council tax

In South Lanarkshire, Council Tax accounts for approximately 17% of the funding required to pay for the range of services that we provide for the residents of the area. It is essential that we not only maximise this source of income by collecting as much as possible of the income due, but that we also ensure that the cost of collecting the income is kept as low as possible.

The cost per dwelling of collecting Council Tax –  Target £13.50

What this means

This indicator measures the average cost of administration and collection of Council Tax across all council dwellings. It is calculated by dividing the gross costs of Council Tax administration by the number of households in the local authority area at the end of the year.

Why this matters This indicator measures the collection costs which allows the council to compare to our target, our previous performance and the Scottish average.
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC £11.35 £7.60 £7.21 Yes
Scotland £10.95 £10.34 £8.98
How we have performed in improving this public service The cost of council tax collection  decreased by 5% from £7.60 to £7.21 in 2016-17 and is well below the Scottish average. This indicates that the council is becoming more efficient in terms of the cost of collecting Council Tax.

 

Percentage of income due from Council Tax received by the end of the tax year – Target 95.8%

What this means The amount of Council Tax actually collected is expressed as a percentage of the total amount due in the year.   
Why this matters This indicator allows efficiencies in the collection of Council Tax to be compared between years.
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC 95.8% 95.9% 96.0% Yes
Scotland 95.5% 96.0% 95.8%
How we have performed in improving this public service The council exceeded both its target collection rate of 95.8% in 2016-17 and the Scottish average. The council aims to improve performance each year in order to increase revenue collection.

Benchmarking Framework cost indicators

The Local Government Benchmarking Framework (LGBF) is the result of ongoing work by various agencies including Scottish local authorities, the Improvement ServiceSOLACE and COSLA to create a framework to enable councils to work together to develop and use performance information in a way which will help understand variations, share good practice and improve services.

The final results for Scotland for 2016-17 are scheduled to be published by the Improvement Service in April 2018.  To coincide with this, South Lanarkshire Council uploads a report on to the council's website, detailing all our LGBF results with contextual information and explanatory narrative.  Cost indicators are detailed and explained in full under the appropriate service Public Performance Report. A summary of the indicators and the status is included below:

Cost indicators - These indicators use financial data to calculate the cost of providing services. Comparisons of performance year on year and between councils can be made using the tool mylocalcouncil.

Indictor 2014-15 2015-16 2016-17 Are we improving?
Cost per primary school pupil £4,560.49 £4,711.20 £4,773.98 No
Cost per secondary school pupil £6,133.34 £6,208.95 £6,429.95 No
Cost per pre-school pupil £2,609.47 £2,963.86 £3,754.36 No
Older persons (65+)Home care costs per hour £19.66 £20.38 £21.25 No
Average weekly cost per person (age 65+) in residential care £410.83 £401.22 £416.08 No
Cost per attendance at sports facilities £2.20 £2.23 £2.21 Yes
Cost per library visit £3.54 £3.72 £3.67 Yes
Cost per museum visit £2.90 £2.71 £3.14 No
Cost of parks and open spaces per 1,000 population £32,458 £32,834 £28,480 Yes
Net cost of waste collection per premise £67.37 £66.26 £73.62 No
Net cost of waste disposal per premise £88.38 £94.12 £92.62 No
Net cost of street cleaning per 1,000 population £16,943 £16,529 £15,929 Yes
Cost of maintenance per km of road £13,167 £13,771 £17,943 Yes
Cost of trading standards per 1,000 population £3,517 £3,624 £3,513 Yes
Cost of environmental health per 1,000 population £13,971 £14,002 £12,851 Yes

Further information

The Annual Report and Accounts contains very detailed financial information but also a summary of highlights of the year from the Leader of the Council and the Chief Executive Officer.  This is audited by our external auditors, Audit Scotland, and we obtained a 'clean' audit certificate.  South Lanarkshire Leisure and Culture Annual Report outlines the work and highlights the financial information for the leisure and culture activities.

Resource Plans are prepared each year by all council Resources to outline the key developments they intend to take forward in the year.  Performance and actions relating to Revenues and service costs can be found in the following Resource Plans:

Twice a year, performance reports are presented to council committees on progress against the Resource Plans. In addition, reports detailing progress against the Council Plan Connect objectives are prepared – see Quarter 2 and Quarter 4 performance reports for further information. 

More information on our objectives can be found in the Council Plan Connect and also the Annual Performance Report.

The information contained within this report reflects the position based on the data available at the time of publication (March 2018)