Report of the Commissioners for the Isle of Anglesey County Council to the Minister for Local Government and

Communities

ANGLESEY COMMISSIONERS CYNGOR SIR YNYS MN ISLE OF ANGLESEY COUNTY COUNCIL LLANGEFNI YNYS MN/ANGLESEY LL77 7TW Ffn / Tel: (01248)751919 Ffacs / Fax: (01248) 750839

Quarter Two Report (July September 2011)

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Foreword On 18 March 2011, the then Minister for Social Justice and Local Government appointed Commissioners to take responsibility for the executive decision making functions of the Isle of Anglesey County Council. In accordance with their terms of reference and the requirements of the Ministerial Direction, the Commissioners are required to provide the Minister with regular updates on the progress which has been made in delivering the necessary improvements which would enable him to consider bringing formal intervention on Anglesey to an end. This report is the Commissioners Quarter Two report which covers the period from July to September 2011. Alex Aldridge (Commissioner Byron Davies (Commissioner) Margaret Foster (Commissioner) Mick Giannasi (Commissioner) Gareth Jones (Commissioner)

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EXECUTIVE SUMMARY 1.0 Introduction This report is the second report prepared by the Isle of Anglesey Commissioners for the Minister for Local Government and Communities covering the three month period July to September 2011. It summarises the progress made to address the priorities for action outlined in the Quarter 1 report and the tasks ahead for the second six month period of the Commissioners intervention. 2.0 Background The Commissioners have continued to operate within the framework for their intervention set out by the Minister, fulfilling the role previously carried out by the Executive. At the end of the first three months work in the Isle of Anglesey County Council (IOACC), the Commissioners produced their report setting out the historical concerns of the Regulators and the Minister which had led to the current intervention. Following the Ministers acceptance of the recommendations contained in their first report Commissioners have adopted a twin track approach to achieve sustainable recovery, i.e. in addition to tackling the shortcomings identified in the outstanding audit and inspection work, they have commenced work on developing an organisational culture which has a clear vision and values, as well as developing the personal capacity and capability of officers in order to improve the service to citizens. This report details the conclusions we have drawn. In summary, these are as follows. 3.0 3.1 Commissioners Strategic Work Programme Our first report to you identified several issues which required our and the Councils immediate attention. Reviewing and strengthening the corporate centre

3.2

3.2.1 We have completed a review and evaluation of the senior management arrangements and the options for strengthening accountability, responsibility, and delivery through adopting a more business-like and responsive approach. The next steps will be to consult on the proposed revised management structure and to proceed to implementation as quickly as possible to allow the revised arrangements to be established and operational in adequate time for the Commissioners to be assured that they are sufficiently robust and sustainable.
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3.3

Developing a community engagement strategy

3.3.1 The Council has adopted a Strategy to outline the priorities for community

engagement and consultation for the Isle of Anglesey County Council, which describes how priorities will be delivered, who will be responsible for this and how progress will be monitored.
3.3.2

In order to sustain the recovery required by the Welsh Government, it is important that people feel part of the democratic process and involved in decision making. The Council promoted this agenda at the Anglesey County Show and five local community meetings have been planned to inform the public about the ongoing reform process in Anglesey and to encourage interest in participation in the Councils work. For Quarter 3 the focus will move to introducing a more responsive complaints procedure and to developing better communication links with citizens exploiting modern technologies. Enhancing the business and financial planning process

3.3.3

3.4

3.4.1 We believe that robust Corporate Planning and Performance Management arrangements are among the core components of the reform programme at IOACC. Combined Officer / Elected Member / Commissioner workshops have been held, chaired by the interim Chief Executive, to identify proposed strategic priorities and define outcomes to form the Corporate Business Plan 2012/15. Ten Corporate Governance Themes were jointly agreed, to sit alongside the strategic aims of the Council, and provide the basis upon which engagement and consultation with citizens and stakeholders will take place for the future. 3.4.2 An evidence based approach to performance management and performance reporting is being developed within a structured Performance Management Framework. Wherever possible, measurable targets are being applied, to be reported throughout the Council at a level of detail appropriate to provide assurance at each stage. 3.4.3 Considerable progress has been made in improving the robustness of decision making within the Authority with risk management starting to play an essential part of that process. 3.4.4 The Corporate Business Plan produced as a result of this process will set the context for the 2012 / 2013 Budget Plan. It is vital that Councillors, Officers and Commissioners reach agreement on the required actions, and this will be a key product for Quarter 3.

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3.5

Re-engaging in the Collaboration and Shared Services Agenda

3.5.1 Local Authorities, particularly smaller Authorities like Anglesey, need to exploit the opportunities for efficiency which lie in collaboration and shared services. Whilst Anglesey has been at the forefront of some collaborative work in the area of education, in general Anglesey has not been leading on the collaborative agenda. With the support of the Interim Chief Executive and the Welsh Local Government Association, Commissioners are now contributing constructively to a number of strategic partnership forums, most notably, the North Wales Strategic Partnership. Elected members have progressively reengaged in this work 3.5.2 Progress has been made in taking forward a number of partnership initiatives which have received the Full Councils endorsement. Notably the Isle of Anglesey County Council and Gwynedd Council have begun the work of preparing a Joint Local Development Plan (Joint LDP) for the Anglesey and Gwynedd Planning Authorities. Work has also continued on pan North Wales Education collaboration and to further progress the Partnership Rationalisation Review work with Gwynedd. 3.5.3. There is still some way to go before IOACC is fully re-established as a full partner in Regional and Sub-Regional collaborative initiatives and during Quarter 3, Commissioners will be seeking to work with others to improve services and value for money by sharing ideas and resources. 3.6 Developing the Economic Development Programme

3.6.1 There is consensus that economic development is vital to the prosperity of the Island and in that respect, the Commissioners have actively picked up the reins of a number of key programmes, like Wylfa B, Energy Island and the Regional Development Plan. 3.6.2 In June 2010, the Anglesey County Council Energy Island Programme was launched by the then Deputy First Minister. The Programme aims to place Anglesey as a major low carbon sustainable energy hub to the benefit of Anglesey but also wider North West Wales and North Wales region. The Energy Island Programme has been adopted as a corporate priority aimed at addressing one of the Councils key strategic priorities of Protect and develop the Islands economy and can now be further enhanced, particularly within a Welsh Government context, by the role the Commissioners will be undertaking on Anglesey, working with the Leader, Elected Members and Officers.

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3.6.3 New initiatives in Tourism in North Wales are being explored as well as the potential for collaboration. In Quarter 3 Commissioners will also seek to develop further economic opportunities that will materialise on the Anglesey Aluminium site 3.7 3.7.1 Strengthening the Constitution Where Necessary A number of changes to the Constitution have been recommended by Commissioners and have already been implemented. However, further work is needed to review the Constitution, particularly in the light of recent difficulties that have arisen from uncertainties around the application of Protocols. An inclusive review group has been set up including a lead Commissioner, the Monitoring Officer, Welsh Government and WLGA representation and Member involvement. This group will produce recommendations for the Minister to consider in Quarter 4. Working with Officers to facilitate improved services for the people of Anglesey

3.8

3.8.1 The Commissioners Quarter 1 report highlighted that although the Councils services were for the most part considered to be satisfactory, it was evident that the longstanding lack of leadership and of adequate risk management had started to impact on the delivery of services. In particular Childrens Services were the subject of a critical CSSIW Report issued on 1 July and the Council had not progressed key decisions in respect of surplus places in Schools. 3.8.2 In order to address the issues raised in the CSSIW Report, additional resources were approved to increase capacity and expert help was sought to prepare and implement a comprehensive improvement action plan monitored by the relevant Scrutiny Committee. This has set clear targets for the service and has supported the advertisement of the post of Head of Service at a competitive salary. 3.8.3 A further Inspection will take place in October, which will indicate priorities for action in Quarters 3 and 4. Sustainability is likely to remain a concern. Strengthening the Corporate Governance and the Business Planning of the Council will be vital to creating a sound basis for continuing the improvement process and maintaining safe services for residents. 3.8.4 During the Quarter, the Education Scrutiny Committee has carried out a comprehensive review of performance. Targets have been set for schools to increase the number of pupils assessed at the higher level in KS1, KS2 andKS3 and to address the improvements expected in Estyns inspection

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framework. The Schools Organisation Plan has been prepared and was highly commended by Welsh Government. 3.8.5 A safeguarding review has also been carried out in co-operation with Childrens Services at the request of the Ministers (Education and Social Services) for a review across Wales, and during Quarter 3 the results will be evaluated and procedures tightened to provide assurance across all the Councils services

3.8.6 All service departments will need to develop a customer centred approach as the whole culture of the Council moves in this direction during Quarters 3 and 4. Commissioners will continue to work with Members and Officers to facilitate this change. 4.0 4.1 How the elected Members are engaging in the process of improvement During the Quarter, whilst Commissioners have continued to exercise the responsibilities previously reserved to the Executive, they have followed a process of gradual re-engagement of the Shadow Executive and Elected Members in the work of the Council. Relationships with Commissioners are good, and Elected Members have adopted a much more positive approach. Commissioners have involved Shadow Portfolio Holders in regular meetings with Officers and this has been received well, allowing constructive relationships to develop and providing mentoring for Officers and Executive Members. In this way the Executive has been re-engaged to work alongside Commissioners to observe the way in which they are operating. Members have also contributed effectively to building a consensus around the Corporate Plan and Budget Planning process. The importance of risk management and of a robust performance management framework are now appreciated and the role of Scrutiny in offering a meaningful challenge to policy and performance is better understood. The forward programme for Scrutiny will be further developed during Quarter 3. There has been a single occasion on which Commissioners had to intervene in a decision made by a Council Committee against Officers advice, but this decision was reversed at a Full Council with the support of those Councillors present. Commissioners will continue to monitor the means by which Members resolve the difficult issues which will inevitably present themselves. The experience to date is that the majority of Councillors have been supportive and have demonstrated a willingness to work with Commissioners and Officers to put the Council on a more business like footing for the future. Re- engagement will progress during Quarter 3 in order to test sustainability.
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4.2

4.3

4.4

4.5

5.0 5.1

The Management of Risk During Quarter 2 The risks managed during the Quarter have remained broadly similar to those identified in Quarter 1.The limited capacity of the corporate centre has been a factor in delaying progress in key areas and important milestones have been delayed by the need to make a number of interim appointments. These risks have been mitigated to some extent by the excellent quality of those inputs. Financial performance remains a risk, complicated by the failure to close the 2010/2011 accounts in a timely fashion. Whilst the overall financial position remains stable for 2011/12, the challenging financial outlook for Welsh Local Government poses risks for 2012/13. The status of some risks has improved in that the Commissioners have received very good co-operation from Members, Officers and other Agencies. If this is maintained then this will be an encouraging sign for the future. However, the challenge of preparing a Budget for 2012/13 will test the unity of purpose achieved to date. Commissioners have worked to establish positive relationships with regulators, but further critical reports may adversely affect recruitment.

5.2

5.3

6.0

The issues to be addressed during the next Quarter (September to December) and the longer term prospects up to May 2012 and Beyond The Commissioners are satisfied that the work completed to develop the Corporate Plan 2012/2015 has captured the outstanding issues which needed to be addressed in April 2011 as well as the Improvement Themes identified in their Quarter 1 report. The consensus achieved to prepare the work plan has been encouraging and will provide a robust framework to take forward the improvement process. Therefore the Commissioners intend to adopt the Ten Corporate Governance Improvement Themes shown at Appendix 2 as their future work programme. The milestones for Quarter 3 will be to:Prepare the budget strategy for 2012/2013; Agree the strengthened corporate management arrangements; Establish the Improvement Board and implement the Performance Management Framework; Make substantial progress to improve poor performing services; Progress citizen engagement; Make further progress in economic renewal; Strengthen the Constitution; Establish constructive relationships with Regulators;
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6.1

6.2

Develop an agreed plan to develop the Corporate Centre; Implement risk reporting for the Council. 6.3 Commissioners will monitor the progress achieved against the 10 Key Themes through the Performance Management Framework and will seek to build on the trust which has started to develop between Officers, Elected Members, Commissioners and the public of Anglesey. Conclusions The report provides a summary of the progress that the Commissioners and IOACC have made during their second three months in office. At this stage there are positive signs that the improvement process has commenced, but there is still a great deal of work to be done to deliver against the recommendations of inspection reports, as well as further developing the fundamental strategic issues. The most urgent issues have been addressed and a stable platform for improvement has been created. However, the limited capacity of the corporate centre has meant that some important developments have taken longer than the Commissioners consider ideal and action has been taken to secure additional capacity. There are encouraging signs in a number of areas, not least amongst them is the way in which most elected members have responded to their involvement in the Corporate Plan and preparation of the Budget Strategy. The Commissioners are satisfied that their 10 Key Themes will address the concerns of regulators and the perceived weaknesses identified by Commissioners, in order to secure improved services to the people of Anglesey. It is too early to say when sustainability will be achieved, but Commissioners will continue to work with Officers and Elected Members in developing their capacity and capability to resume control of the Council. Progress against the tasks agreed for Quarter 3 will be an indicator of when the Council is likely to be ready to return to democratic control. Commissioners invite the Minister to note the progress made and recommend the proposed work programme for his approval.

7.0 7.1

7.2

7.3

7.4

7.5

7.6

7.7

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PURPOSE AND FORMAT OF REPORT

1.0 This report is the second report prepared by the Isle of Anglesey Commissioners for the Minister for Local Government and Communities covering the three month period July to September 2011. It summarises the progress made to address the priorities for action outlined in the Quarter 1 report and the tasks ahead for the second six month period of the Commissioners intervention. The report will describe:The work programme agreed by the Commissioners as a product of the analysis undertaken during the first three month period; The focus of effort during this second three month period; The progress made against the priorities agreed with the Minister as an outcome of the Quarter 1 report; How the elected Members are engaging in the process of improvement The management of risk during this period; The issues to be addressed during the next Quarter (September to December) and the longer term prospects up to May 2012 and beyond; The recommendations made to the Minister for the Commissioners forward work programme in Quarter 3. 4.0 The format of the Report will be narrative in the main but will include quantitative data where this is available so that future progress can be measured objectively.

2 .0

3.0

BACKGROUND
5.0 The reasons for the Ministers decision to appoint Commissioners to intervene in the IOACC were explained fully in the Quarter 1 report. The role of the Commissioners is to exercise all functions previously the responsibility of the Executive, although the full Council retains responsibility for a number of key functions (including adopting the budget) and for quasi judicial functions like planning, regulatory and licensing functions which remain matters for the relevant committees of the Council. There are safeguards in place against perverse or obstructive decision making in that Commissioners have reserve powers provided by the Minister should the Council or its Committees fail to have regard to the advice of the statutory officers of the Council. The Commissioners are accountable to the full Council together with its scrutiny and audit committees, as was the executive previously, and must assure appropriate attendance at scrutiny committees and full Council. They must also ensure that they consult members of the Council regularly in order
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6.0

7.0

to take into account all relevant views within the Council. They must also communicate effectively with the public about decisions made and the progress of their work, and provide regular reports to the Minister. 80 At the end of the first three months work in IOACC, the Commissioners produced their report which set out the historical concerns of the Regulators and the Minister which had led to the current intervention. With the assistance of the WLGA, the Commissioners identified ongoing concerns which had not yet been addressed, and a number of strategic issues which need attention for the Council to move forward. A number of further issues were raised by the WAO and CSSIW during the first Quarter requiring immediate attention and which reflected the longstanding lack of strategic direction within the Council. Whilst the Quarter 1 report demonstrated that there had been some good progress in engaging Members with the work of the Commissioners and in setting up sound governance structures for the Council including the appointment of an Interim Chief Executive, there remained major organisational and cultural issues to be addressed.

9.0

10.0

COMMISSIONERS STRATEGIC WORK PROGRAMME

11.0 As agreed by the Minister, Commissioners have adopted a twin track approach to achieve sustainable recovery i.e. in addition to tackling the shortcomings identified in the outstanding audit and inspection work, they have commenced work on developing an organisational culture which has a clear vision and values, as well as developing the personal capacity and capability of officers in order to improve the service to citizens. Against this background, Quarter 2 activity has focused on redefinition of the Corporate Planning and Performance Management processes, preparing the budget strategy and addressing the development of the organisational structure, capacity and capability. The immediate tasks were defined in the Quarter 1 Report as follows:reviewing and strengthening the corporate centre; developing a community engagement strategy; enhancing the business and financial planning process; re-engaging in the collaboration and shared services agenda; developing the economic development programme; strengthening the Constitution where necessary; working with officers to facilitate improved services for the people of Anglesey.

12.0

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PROGRESS AGAINST PRIORITIES

Reviewing and Strengthening the Corporate Centre 13.0 Commissioners have made some good progress during Quarter 2 and have engaged in discussions with Councillors, Officers, Trade Unions , Communities and Citizens to progress management and Officer issues. Part of the Commissioners work during this period has entailed a review and evaluation of the senior management arrangements and the options for strengthening accountability, responsibility, and delivery through adopting a more business-like and responsive approach. An extensive dialogue has therefore been undertaken with the Interim Chief Executive to explore the options that are available for senior management arrangements to modernise Officer arrangements that will accommodate an organisational culture shift to accept legitimate Councillor challenge, performance outcomes, corporate strategies, budgetary frameworks, risk assessment, citizen and community engagement, and collaborative working. This cultural shift will be supported by a similar shift in Executive and Scrutiny arrangements so that there is a developing partnership approach between Councillors and Officers to ensuring the economic, social and environmental wellbeing of the citizens and communities of Anglesey. Commissioners have been in detailed consultation with the Interim Chief Executive over the last few months to take account of the existing arrangements and the challenges that need to be addressed and ensure that the Senior Leadership Group (SLG) and Corporate Services arrangements for Anglesey can be modernised and serve to consolidate and improve corporate governance, strengthen the coherence, and improve the efficiency, capacity and capability of the corporate services. As a consequence of this work a full assessment of the strengths and weaknesses of the corporate functions of the Council has been completed and action has been taken to deal with some outstanding issues of Officer performance. In addition, further assistance has been secured in the form of an Interim S.151 Officer to close the overdue 2010/2011 accounts, and to provide advice on financial services capacity. The next steps will be to consult more widely on the proposed revised management structure and to proceed to implementation as quickly as possible to allow the revised arrangements to be established and operational in adequate time for the Commissioners to be assured that they are sufficiently robust and sustainable.

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Developing a Community Engagement Strategy 18.0 The Council has taken the important step of adopting a Strategy to outline the priorities for community engagement and consultation for the Isle of Anglesey County Council over the next two years. It sets the overall framework for the Authority underpinned by the strategic importance of delivering services for citizens and communities as set out in the Corporate Business Plan. The Strategy describes how priorities will be delivered, who will be responsible for this and how progress will be monitored. It recognizes that effective Community Engagement is central to the Councils work to develop a more outcome focused organisation Engaging the community and service users in the councils work is a key element of good governance to ensure robust public accountability and to inform the Councils strategic direction, allocation of resources and identify key priority issues for services. It will also contribute towards establishing an increased sense of community and be key to changing perception so that the Council is seen as listening and accessible. Considerable energy has been devoted to engagement with the Community Plan and to developing a more open, positive approach with the media. However a significant cultural change needs to take place within the Council to adopt a more open style of working and a greater focus on responsiveness to the customer. Planning processes, which have previously been perceived as a major issue in developing positive community relationships, have continued to show improved key indicators (see Appendix 1). Media coverage has also been more balanced with informed input from Council members. For Quarter 3 the focus will move to introducing a more responsive complaints procedure and to developing better communication links with citizens exploiting modern technologies. The need to engage communities to promote democratic renewal was identified as a key improvement objective in the 2011-12 Corporate Business Plan. In order to sustain the recovery required by the Welsh Government it is important that people feel part of the democratic process and involved in decision making. The Council and its key partners recognise the potential of developing an area based approach to engagement. In this way, communities of interest are bought together to inform decision making on a local level. A very successful event was held at the Anglesey County Show to launch the democratic renewal agenda and the secondary school catchment areas have initially been used as the building blocks to develop the Councils approach to community engagement. Five local community meetings are planned to inform the public about the ongoing reform process in Anglesey and to encourage interest in participation in the Councils work.
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19.0

20.0

21.0

Enhancing the business and financial planning process 22.0 Establishing strong Corporate Planning and Performance Management arrangements was recognised as one of the core components of the reform programme at IOACC. Robust and mature Performance Management arrangements are a key area of focus. In order to formulate the Corporate Business Plan 2012/15 it is essential that the organisation adopts and develops strategic priorities with more outcome focused measurements. In order to achieve this, combined Officer / Elected Member / Commissioner workshops were held, chaired by the interim Chief Executive, to identify proposed strategic priorities and define outcomes to lead the formulation of the said plan. This was accomplished and Ten Corporate Governance Improvement Themes were jointly agreed, to sit alongside the strategic aims of the Council, and provide the basis upon which engagement and consultation with citizens and stakeholders will take place for the future (see Appendix 2). In order to demonstrate that the Business Plan is being delivered and outcomes are being achieved, an evidenced based approach to performance management and performance reporting is being developed within a structured Performance Management Framework. Information available from Ffynnon is being used to provide the basis for indicators which are considered at regular intervals together with other information deemed relevant. Wherever possible measurable targets are being applied, to be reported throughout the Council at a level of detail appropriate to provide assurance at each stage. Reports produced to date are shown at Appendix 3. The assessment against each of the Commissioner's Themes has been assessed objectively against a Red/Amber/Green rating scale. This is an initial assessment based on the progress made in Quarters 1 and 2. There are a number of areas assessed as 'Red' and it is those areas that Commissioners will be focusing their attention in Quarters 3 and 4.

23.0

24.0 In order to monitor and manage the performance process and in addition to the SLG, Scrutiny Committees and the full Council, Commissioners have established an Improvement Board including Officers, Commissioners, Shadow Executive, and Chairs of Audit and Scrutiny. The Improvement Board is due to meet shortly to review the information available at this time, and is expected to refine its approach over the next few months to act as a Corporate Improvement and Risk Management mechanism. 25.0 Considerable progress has been made in improving the robustness of decision making within the Authority with risk management starting to play an
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essential part of that process. A Corporate Risk register is being developed following the information gained from the Quarter 1 performance monitoring arrangements and further risk training for managerial staff and Strategic Leaders is scheduled for Q3. This risk management information will be available to the Improvement Board and to Scrutiny Committees. 26.0 The Corporate Business Plan produced as a result of this process will set the context for the 2011/2012 Budget Plan. Broad assumptions concerning allocations have been communicated within the Council and work is ongoing to produce savings plans which will deliver the Budget Strategy for the forthcoming financial year. It is vital that Councillors, Officers and Commissioners reach agreement on the required actions and this will be a key product for Quarter 3. Reengaging in the Collaboration and Shared Services Agenda 27.0 In the current financial environment, it is vital that Local Authorities, particularly smaller Authorities like Anglesey, exploit the opportunities for efficiency which lie in collaboration and shared services. Whilst Anglesey has been at the forefront of some forward thinking collaborative work in the area of education and has developed some worthwhile shared services at operational level, in general Anglesey has not been leading on the collaborative agenda. With the active support of the Interim Chief Executive and the Welsh Local Government Association, Commissioners have signalled a willingness to reengage and are now contributing constructively to a number of strategic partnership forums, most notably, the North Wales Strategic Partnership. During this Quarter members have progressively resumed their role in this work and are supporting Officers with their contribution in a positive fashion. Progress has been made in taking forward a number of partnership initiatives which have received the Full Councils endorsement. Notably the Isle of Anglesey County Council and Gwynedd Council have begun the work of preparing a Joint Local Development Plan (Joint LDP) for the Anglesey and Gwynedd Planning Authority areas. They have approved the first step in the process which is to prepare a Delivery Agreement, including the timetable for the preparation for the Joint LDP. It also includes the budgetary and staff resources required within the Councils for its preparation Council Officers, Elected Members, the public, interested groups in the area and developers can contribute to the process. Work has also continued to establish the Regional Schools Effectiveness and Improvement Project and the Council approved the OBC in principle although there are some reservations regarding the proposed management arrangements. The LSB agreed to further progress the Partnership
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29.0

Rationalisation Review work with Gwynedd. The Council has endorsed the proposal to conduct a single needs assessment to provide a robust evidence base to identify priorities at a local level and create an Integrated Plan based on an outcomes methodology owned by the LSB. This will build upon and replace the separate statutory plans which are now in place Children and Young People, Health, Social Care and Wellbeing, Community Safety and the Community Strategy. In relation to Partnership rationalisation, a joint Project Board between Gwynedd and Anglesey has already been established and a Project Plan prepared with a target set to complete the work by April 2012. Two workshops have been held with the intention to report upon progress to the joint meeting of the two LSBs scheduled for 6 October 2011 to decide the types of joint working models to be developed. 30.0. Members have been fully engaged in discussions on the Compact and its implications for the future but there is still some way to go before IOACC is fully re-established as a full partner in Regional and Sub-Regional collaborative initiatives. During Quarter 3 Commissioners will be seeking further opportunities to work with others to improve services and value for money by sharing ideas and resources. Developing the Economic Development Programme 31.0 There is a broad consensus that economic development is vital to the prosperity of the Island and in that respect, the Commissioners have actively picked up the reins of a number of key programmes like Wylfa B, Energy Island and the Regional Development Plan. These initiatives have developed quickly and this is providing a significant call on Commissioners time and energy. In June 2010, the IOACC Energy Island Programme was launched by the then Deputy First Minister as a major job creation initiative in the sustainable low carbon energy sector. The Programme aims to place Anglesey as a major low carbon sustainable energy hub to the benefit of Anglesey but also wider north west Wales and North Wales region. The Energy Island Programme has been adopted as a corporate priority aimed at addressing one of the Councils key strategic priorities of Protect and develop the Islands Economy but also addressing other strategic priorities. The positioning of Anglesey can now be further enhanced, particularly within a Welsh Government context, by the role the Commissioners will be undertaking on Anglesey, working with the Leader, Elected Members and Officers. The potential of the Programme to provide sustainable expansion in the economy of the island is key to the future of the community. The development of Wylfa B, together with a number of energy related and tourism projects, will
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33.0

offer employment in the longer term as well as during the construction phase. Working closely with education partners, the Council intends to maximize the opportunities of employment for local residents by equipping them with the required skills. The agenda for the Council will be to work effectively with developers, central government and Welsh Government to secure the required infrastructure to support the Programme and ensure it is well managed and co-ordinated for the benefit of the local community and Wales as a whole. 34.0 This will be a challenging task, and the Council will need to develop the capacity of Officers and Members to lead this extensive strategic programme. Commissioners will be supporting this development during Quarters 3 and 4 in order to establish a robust structure within the Council to take the Programme forward. A key step will be the strengthening of the corporate centre and the re-engagement of the shadow executive and Elected Members in decision making and in forging strong relationships with partners. In Quarter 3 Commissioners will seek to develop further economic opportunities that will materialise on the Anglesey Aluminium site. The Works Director of Anglesey Aluminium chairs a regular Working Group including officers from the Authority and other interested parties. The recent announcement by the Minister for Business, Enterprise, Technology and Science on Enterprise status for Anglesey also provides further evidence of the potential to secure additional employment opportunities for the residents of Anglesey. A new focus is centring on Tourism in North Wales, and the six Councils understand the monetary and employment impact tourism has upon the local economy. Clearly the collaborative agenda will ultimately lead to change, and there will be a need to embrace change. However, it is essential that the Council and its Elected Members bring their influence, expertise and knowledge to the fore. Recent Welsh Government Ministerial visits such as the First Minister to Coleg Menai are having a positive effect. Individual Ministers are meeting the business community and issues such as broadband, transportation, planning and tourism are being raised. Strengthening the Constitution Where Necessary 36.0 A number of changes to the Constitution have been recommended by Commissioners and some have already been implemented. However further work is needed to review the Constitution, particularly in the light of recent difficulties which have arisen from uncertainties around the application of Protocols. An inclusive review group has been set up including a lead Commissioner, the Monitoring Officer, Welsh Government representation and Members.
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The aim is to produce a modern Constitution which will provide a strong framework for the future effective political and governance structure of the Council. In order to embed the recent behaviour changes and ensure sustainability Elected Members have been given the opportunity to participate in the process in a controlled way and it is anticipated that a revised Constitution will be submitted to the Minister in Quarter 4. Working with Officers to facilitate improved services for the people of Anglesey

38.0

The Commissioners Quarter 1 report highlighted that although the Councils services were for the most part considered to be satisfactory, it was evident that the longstanding lack of strategic leadership and of adequate risk management had started to impact on the delivery of services. In particular, Childrens Services were the subject of a critical CSSIW Report issued on 1 July and the Council had not progressed key decisions in respect of surplus places in schools. In order to accelerate progress in addressing the issues raised in the CSSIW Report, the Director of Social Services was supported by the Commissioners and the Council, to obtain external advice to assist in the improvement process. In recognition of the serious potential risks additional resources were approved to obtain experienced agency staff to increase capacity and expert help was sought to prepare and implement a comprehensive improvement action plan. Following the resignation of the previous post holder, an interim Head of Service was appointed and a Childrens Services Improvement Board was set up to oversee the required change programme. This is being monitored by the relevant Scrutiny Committee, which has set clear targets for the service and has supported the advertisement of the post of Head of Service at a competitive salary. A further inspection will take place in October, which will indicate priorities for action in Quarters 3 and 4. Sustainability is likely to remain a concern. The work ongoing to strengthen the Corporate Governance and the Business Planning of the Council will be vital to creating a sound basis for continuing the improvement process and maintaining safe services for residents. The role of Scrutiny in managing risk effectively will need to develop with Executive Members and Officers working together more openly to establish where savings in budgets can be delivered and where investment must be made.

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41.0

During the Quarter, the Education Scrutiny Committee has carried out a comprehensive review of performance which has been broadly satisfactory, in comparison with the rest of Wales, although the improvement of previous years has not been maintained. However, there are concerns around certain key indicators (at Key Stages 1 & 2) and priorities have been revised to ensure that Authoritys performance corresponds more closely to the FSM (free school meals) rank in comparison with the rest of Wales. Targets have been set for schools to increase the number of pupils assessed at the higher level in KS1, KS2 and KS3 and to address the improvements expected in Estyns inspection framework. The Schools Organisation Plan has been prepared and was highly commended by Welsh Government. Against this background, the priorities have been agreed for future improvement including strengthening the strategy for raising standards in literacy and numeracy and enhancing business planning and corporate monitoring of service performance through scrutiny. Progress has been made in reducing surplus places through the closure of two primary schools. A safeguarding review has also been carried out in co-operation with Childrens Services at the request of the Ministers (Education and Social Services). This request was made to all local authorities and followed adverse inspection findings about child protection in another Local Authority. During Quarter 3, the results will be evaluated and procedures tightened to provide assurance across all the Councils services. For other services, the major challenge is to engage users more closely in planning services for the future and to respond more effectively to enquiries and complaints. Service departments will need to develop a customer centred approach as the whole culture of the Council moves in this direction during Quarters 3 and 4. Commissioners will continue to work with Members and Officers to facilitate this change.

42.0

43.0

HOW THE ELECTED MEMBERS ARE ENGAGING IN THE PROCESS OF IMPROVEMENT

44.0 During the Quarter, whilst Commissioners have continued to exercise the responsibilities previously reserved to the Executive, they have followed a process of gradual re-engagement of the shadow executive and Elected Members in the work of the Council. Relationships with Commissioners are good, and following some initial negative reflections on the past, Elected Members have adopted a much more forward looking approach. This has been evidenced by more focused debate at Commissioners Boards and Full
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Council meetings, and a responsible attitude to dealing with conflicting views in these meetings. 45.0 Commissioners have involved Shadow Portfolio Holders in regular meetings with Officers and this has been received well, allowing constructive relationships to develop and providing mentoring for Officers and executive Members. In this way the Executive has been re-engaged to work alongside Commissioners to observe the way in which they are operating both as a group and within individual portfolios. In general terms, the relationships which are developing are proving to be mutually beneficial and there has been a useful two way exchange of views and information. Significantly less time has been spent on resolving conflicts between Elected Members. A number of workshops have been held to build a consensus around the Corporate Plan and Budget Planning process. These have provided the opportunity for Commissioners, shadow portfolio holders, Scrutiny Chairs including Audit and Vice Chairs to work with Officers to create a shared understanding of the challenges faced by IOACC and a vision for the future. Commissioners are of the view that the Elected Members involved in the process are committed to developing constructive relationships with Commissioners and Officers based on mutual respect. The importance of risk management and of a robust performance management framework are now appreciated and the role of Scrutiny in offering a meaningful challenge to policy and performance is better understood. The forward programme for Scrutiny will be further developed during Quarter 3 to ensure that key issues are identified as part of the Councils routine governance processes. The positive signs seen to date will need to be maintained over a substantial period before there can be any confidence that the new approach is sustainable beyond the Commissioners intervention in IOACC. There has been a single occasion on which Commissioners had to intervene in a decision made by a Council Committee against Officers advice, but this decision was reversed at a Full Council with the support of those Councillors present. Commissioners will continue to monitor the means by which Members resolve the difficult issues which will inevitably present themselves over the next six months. Commissioners will aim to encourage a mature debate and dialogue, to reach an agreed way forward at times of disagreement, and which will put the welfare of the people of Anglesey first. Elected Members have continued to represent the interest of constituents and they have been permitted access to Officers on local matters which concern them. However, such access is still monitored. The experience to date is that the majority of Councillors have been supportive, and have demonstrated a willingness to work with Commissioners and Officers to put the Council on a
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46.0

47.0

48.0

more business like footing for the future. However, it would be premature to suggest that the new ways of working are sufficiently embedded at this time to allow a return to full democratic control. Elected Members are now representing the Council at many external meetings and re- engagement will progress during Quarter 3 to test whether the current improvements can be maintained on a sustainable basis over the next three to six months.

THE MANAGEMENT OF RISK DURING QUARTER 2

49.0 The risks managed during the Quarter have remained broadly similar to those identified in Quarter 1. The limited capacity of the corporate centre has been a factor in delaying progress in key areas. There have been continuing issues in ICT and HR and the need to make a number of interim appointments in Finance at short notice have delayed important milestones The improvement process in Childrens Services was slowed down by the need to make interim appointments and to obtain external advice. These risks have been mitigated to some extent by the excellent quality of those inputs but this highlights the need to create a staffing structure for the future which will attract suitably skilled employees, able to met the challenges of the improvement agenda Financial performance remains a risk, complicated by the failure to close the 2010/2011 accounts in a timely fashion. Whilst the overall financial position remains stable, the Affordable Priorities Programme put in place before the Commissioners arrival appears unrealistic in part and is unlikely to be achieved. In view of the challenging financial outlook for Welsh Local Government, this poses risks for 2012/13, although the 2011/12 outturn is expected to be satisfactory. The status of some risks has improved in that the Commissioners have received very good co-operation from Members, Officers and other Agencies. If this is maintained then this will be an encouraging sign for the future. The financial challenge of preparing a Budget for 2012/13 will test how far the unity of purpose achieved through the agreement of the Corporate Plan can be maintained when difficult decisions must be made Commissioners have worked hard to establish positive relationships with regulators and to seek an understanding around how quickly improvement can progress. There is uncertainty about whether these efforts have been successful and it is possible that further negative feedback will be received. This poses a risk in itself, in that it is likely that frequent negative publicity will reinforce the poor public perception of IOACC. Recruitment to a number of key posts may be affected and considerable effort will need to be made to attract suitable candidates.

50.0

51.0

52.0

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THE ISSUES TO BE ADDRESSED DURING THE NEXT QUARTER (SEPTEMBER TO DECEMBER) AND THE LONGER TERM PROSPECTS UP TO MAY 2012 AND BEYOND
53.0 The Commissioners are satisfied that the work completed to develop the Corporate Plan 2012/2015 has captured the outstanding issues which needed to be addressed in April 2011 as well as the Improvement Themes identified in their Quarter 1 report. The consensus achieved to prepare the work plan has been encouraging and will provide a robust framework to take forward the improvement process. Therefore the Commissioners intend to adopt the Improvement Themes shown at Appendix 2 as their future work programme. The progress achieved will need to be closely monitored through the Performance Management Framework which has been developed. In particular, the Quarter 3 challenge will be to build on the trust which has been established between Officers, Councillors and Commissioners, regaining the confidence of the Anglesey public and continuing the Corporate Development of the Council to create sustainable change. The key tasks will be to; Prepare the budget strategy for 2012/2013; Agree a strengthened corporate management structure; Establish the Improvement Board and implement the Performance Management Framework; Make substantial progress to improve poor performing services; Progress citizen engagement; Make further progress in economic renewal; Strengthen the Constitution; Establish constructive relationships with Regulators; Prepare an agreed plan to develop the Corporate Centre; Implement risk reporting for the Council. 55.0 The successful implementation of the work plan as described above will allow IOACC to make significant progress towards re-establishment as an effective democratic body, with good corporate governance arrangements. However there will need to be a period of stability before the sustainability of any improvements can be assessed. Therefore it is still too early to predict when full democratic control can be restored with confidence that the culture has changed. Significant progress will be required to restore public confidence.
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54.0

CONCLUSIONS
56.0 This report provides a summary of the progress which the Commissioners have made during their second three months in office and sets out the key tasks which they intend to address as they discharge their duties and responsibilities over the next six months. At this stage there are positive signs that the improvement process has commenced. There is still a great deal of work to be done to deliver against the recommendations of inspection reports, as well as further developing the fundamental strategic issues of vision, values and organisational culture which are necessary to deliver longer term sustainable recovery. The most urgent issues have been addressed and a stable platform for improvement has been created. However, the limited capacity of the corporate centre has meant that some important developments have taken longer than the Commissioners consider ideal. Action has been taken to secure additional capacity but further support for corporate functions will be required to accelerate progress towards sustainable and effective working arrangements. There are encouraging signs in a number of areas, not least amongst them is the way in which most elected members have responded to their involvement in the Corporate Plan and preparation of the Budget Strategy. The Commissioners are satisfied that their Ten Corporate Governance Improvement Themes will address the concerns of regulators and the perceived weaknesses identified by Commissioners, in order to secure improved services to the people of Anglesey. It is too early to say when sustainability will be achieved, but Commissioners will continue to work with Officers and Elected Members in developing their capacity and capability to resume control of the Council. Progress with the tasks agreed for Quarter 3 will be an indicator of whether the Council is likely to be ready to return to democratic control in the Spring of 2012. The Minister is invited to note the progress made in Quarter 2 and to approve the Commissioners work programme for Quarters 3 and 4 based on the Ten Corporate Governance Improvement Themes and the immediate tasks outlined above.

57.0

58.0

59.0

60.0

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APPENDIX 1
UPDATE ON PLANNING The Commissioner for Planning, Alex Aldridge, has reviewed the key performance indicators for the Planning and Orders Committee. The results demonstrate that planning decisions are now being taken in accordance with professional advice i.e.:the percentage of applications delegated to officers remains high and over the last 6 months has risen to 85% of all applications. the proportion of applications going to Committee called-in by Councillors for decision has fallen from 73% to 42% over the last 5 years. Since the appointment of the Commissioners 6 months ago it has fallen again to 35%. the number of decisions made contrary to officer recommendation has fallen from 21 (out of 362 decisions) in 2006/07 to 4 (out of 184 decisions) in 2010/11. That is a reduction from 6% to 2%. In 2010, the Council, through its Elected Members successfully introduced public speaking in the Planning Committee and the Commissioner oversaw it becoming permanent in April. The Commissioners have implemented further improvements and will be implementing proposals to remove from the decision-making process: the local councillor where an application is in her/his Ward any committee member who has not taken part in all previous meetings (including Committee Site Visits). These recommendations were supported at Full Council and will now be subject to Ministerial approval. Ynys Mn will be at the forefront in trying to ensure that the Committee is as objective as possible and less open to accusations of parochialism. The Commissioner has taken a deep interest in the work of the Committee and has had no reason to use his powers to intervene in its deliberations. As far as the rest of the Service is concerned, significant improvements have taken place over the last 6 months. the percentage of applications determined within 8 weeks has increased from 66% to 79% the percentage of appeals allowed by the Planning Inspectorate has fallen from 35% to 11%. The Welsh average was 33% in 2010-11. the percentage of enforcement complaints resolved within 12 weeks has gone up from 39% to 76%. The Welsh average was 63% in 2010-11. Finally, it is worthy of note that public consultation is a fundamental part of the process and the public can now speak in Committees. For many years the Council has pioneered the Anglesey Planning Forum as a means of exploring problems with its stakeholders like Town and Community Councillors, agents submitting applications and members of the public.
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APPENDIX 2
Ten Corporate Governance Improvement Themes

1.0 2.0 3.0

Relationships between Members and political groups The effectiveness of the Council's Standards Committee Scrutiny and its ability to effectively challenge and influence decisions and policies Standards of conduct and behaviour by Members and Officers The organisation, coherence and effectiveness of the Council's senior management team Develop strategic priorities with more outcome focused measurement Introduce a robust process for the performance, project and risk management; Improve the capacity, quality and management of corporate support services. Fully engage with and reflect the views and priorities of the citizens of Anglesey Develop effective partnerships between the Council and the public and private sectors at local, regional and national levels. Councils Strategic Priorities

4.0 5.0

6.0 7.0

8.0 9.0

10.0

1.0 2.0 3.0 4.0 5.0

Protect and develop the Islands Economy Build and support sustainable communities Promote healthy, safe, and fair communities Businesslike and Affordable Services Raising the economic, social and environmental profile of the Council and Island

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Recovery Road Map

Enhance Develop Political Local, Relationship Regional and National Partnerships Community Engagement Value for Money Effective Standards Committee

Effective Services

- Mission, Vision and Values. - Leadership and Organisational Culture

Effective Scrutiny

Strengthen Corporate Services

Sustainability

Improve Standards of - Communication Conduct and Behaviour Improve Develop Performance Coherent Risk and Senior Develop Management Project Outcome Team Management Based Priorities
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