Council 25.10.12 Full Meeting Papers 1

Notice of Meeting and Agenda
The City of Edinburgh Council

Thursday, 25 October 2012 at 10 am in the City Chambers, High Street, Edinburgh
Order of Business
Including any notices of motion and any other items of business submitted as urgent for consideration at the meeting.
Declaration of Interests
Members should declare any financial and non-financial interests they have in the items of business for consideration, identifying the relevant agenda item and the nature of their interest.
Deputations
If any
Questions
4.1 By Councillor Edie Affordable Housing Capital Investment for answer by the Convener of the Health, Social Care and Housing Committee By Councillor Edie Self Management Funding for People with Long Term Health Problems for answer by the Convener of the Health, Social Care and Housing Committee By Councillor Edie Affordable Housing Securing Planning Consent Survey 2011/12 for answer by the Convener of the Health, Social Care and Housing Committee
4.2
4.3
Minutes
5.1 5.2 Health, Social Care and Housing Committee of 11 September 2012 (circulated) submitted for approval as a correct record Economic Development Committee of 18 September 2012 (circulated) submitted for approval as a correct record
5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10
The City of Edinburgh Council of 20 September 2012 (circulated) submitted for approval as a correct record Finance and Resources Committee of 25 September 2012 (circulated) submitted for approval as a correct record Audit Committee of 27 September 2012 (circulated) submitted for approval as a correct record Policy and Strategy Committee of 2 October 2012 (circulated) submitted for approval as a correct record Pensions and Trusts Committee of 3 October 2012 (circulated) submitted for approval as a correct record Education, Children and Families Committee of 9 October 2012 (circulated) submitted for approval as a correct record Transport, Infrastructure and Environment Committee of 11 October 2012 (to follow) submitted for approval as a correct record Culture and Leisure Committee of 23 October 2012 (to follow) submitted for approval as a correct record
Appointments
If any
Reports from Committees

7.1 Leaders Report (circulated)
New Business
8.1 8.2 8.3 The New Portobello High School and New St Johns RC Primary School report by the Director of Children and Families (circulated) Edinburgh Tram Project Update report by the Director of Corporate Governance (to follow) Management Rules for Public Parks and Greenspace 2013-2023 report by the Director of Services for Communities (circulated) Note: The above report was continued by the Council on 20 September 2012 8.4 Governance Review and Transformation Programme report by the Chief Executive (circulated) (a) Operational Governance: Contract Standing Orders, Financial Regulations and Guidance for Appointment of Consultants report by the Director of Corporate Governance (circulated)
(b)
Strategic Governance: (i) (ii) (iii) Council Performance Framework report by the Director of Corporate Governance (circulated) Strategic Plan report by the Director of Corporate Governance (circulated) A Framework to Advance a Cooperative Capital 2012/17 report by the Director of Corporate Governance (circulated)
(c)
Programme Governance: Edinburgh Transformation Programme report by the Director of Corporate Governance (circulated)
8.5 8.6
Best Value Audit Submission report by the Chief Executive (circulated) Audited 2011/12 Financial Statements report by the Director of Corporate Governance (circulated)
Reports from Neighbourhood Partnerships

If any
10
Notices of Motion for Debate at Council

10.1 By Councillor Chapman Workfare continued by the Council on 20 September 2012 Council: Notes the Workfare scheme introduced by the Westminster Government that forces people on welfare to work without payment under threat of loss of benefits; Believes that this undermines paid employment, genuine volunteering and the social welfare system, and does not benefit individuals or communities, but perpetuates poverty; Resolves not to take part in any Workfare or other forced labour scheme. 10.2 By the Lord Provost Strategic Defence and Security Review That the City of Edinburgh Council: (a) notes that significant numbers of armed forces personnel are being made redundant as part of staffing reductions under the terms of the Strategic Defence and Security Review (SDSR).
(b)
notes the potential for former military personnel to return to Edinburgh without employment and requiring housing and other support services. calls for a report to assess the potential implications and availability of Council and other specialist support services for veterans.
(c)
10.3
By Councillor Burns Inter-faith Relations within Edinburgh Council deeply regrets the production and broadcasting of an internet film The Innocence of Muslims which has offended Muslims and increased racial tension. Council believes that the violent reaction to the film, most notably in Libya and Egypt, is to be deplored. Council firmly believes in the principle of free speech, which should provide an equal voice to all in society, but is also aware that free speech comes with a responsibility not to undermine the freedom and liberty of others and should not incite hatred or crime. The City of Edinburgh Council will continue to be steadfast in its protection of religious groups from attacks and also in its condemnation of reactionary violence and hate crime. Furthermore, Council resolves to contact the various faith groups of the city to canvass their opinion on how to further improve inter-faith relations within Edinburgh. Carol Campbell Acting Head of Legal, Risk and Compliance
Notes: 1) If you have any questions about the agenda or meeting arrangements, please contact Allan McCartney, Committee Services, City of Edinburgh Council, City Chambers, High Street, Edinburgh, EH1 1YJ; 0131 529 4246; e-mail allan.mccartney@edinburgh.gov.uk. A copy of the agenda and papers for this meeting will be available for inspection prior to the meeting at the main reception office, City Chambers, High Street, Edinburgh. The agenda, minutes and public reports for this meeting and all the main Council committees can be viewed online by going to www.edinburgh.gov.uk/meetings. Members and Officers of the Council can also view them by going to the Orb home page and clicking on Committee Papers Online.
2)
3)
Webcasting of Council Meetings Please note: this meeting may be filmed for live or subsequent broadcast via the Councils internet site at the start of the meeting the Lord Provost will confirm if all or part of the meeting is being filmed. You should be aware that the Council is a Data Controller under the Data Protection Act. Data collected during this webcast will be retained in accordance with the Councils published policy. Generally the public seating areas will not be filmed. However, by entering the Council Chamber and using the public seating area, you are consenting to being filmed and to the possible use of those images and sound recordings for web casting or training purposes. If you have any queries regarding this, please contact Committee Services on 0131 529 4105 or committee.enquiry@edinburgh.gov.uk.
Please recycle this paper
Item no 4.1
QUESTION NO 1 By Councillor Edie for answer by the Convener of the Health, Social Care and Housing Committee at a meeting of the Council on 25 October 2012
Question
When did the Convener and/or Vice-Convener of the Health, Social Care and Housing Committee last meet with the Scottish Governments Housing Minister to press the case for Edinburghs fair share of capital investment in affordable housing?
Item no 4.2
Question
Noting the announcement of 6 million to fund Self Management for people with long term health problems: (a) (b) How much of this will be spent in Edinburgh? How much, if any, of this funding will this Council receive? Will the Convener give us an assurance that any of that funding which may come to this Council will be spent on additional support beyond that already budgeted for?
(c)
Item no 4.3
The Affordable Housing Securing Planning Consent Survey 2011/12 published in September showed that Edinburgh was building almost 30% of the affordable homes in Scotland. Question (1) Does the Convener agree that "These figures show that Edinburgh has become one of the UK's leading local authorities in delivering badly-needed new affordable homes?
Question
(2)
Does he also agree that "Our planning and investment policies, linked to a positive and co-operative relationship between the Council and developers, builders and housing associations has resulted in this record number of approvals?
Item no
5.1
Committee Minutes
Health, Social Care and Housing Committee

Edinburgh, 11 September 2012
Present:- Councillors Ricky Henderson (Convener), Day (Vice-Convener), Aitken, Bridgman, Burgess (substituting for Councillor Corbett), Chapman, Child (substituting for Councillor Doran), Bill Cook, Dixon, Edie, Griffiths, Bill Henderson, Heslop, Lunn, Ross, Rust and Work. In Attendance:- Councillor Mowat (item 2).
Minutes
Decision To approve the minute of the Health, Social Care and Housing Committee of 19 June 2012 as a correct record.
Short-Term Private Lets Review Findings

The Committee had previously agreed, in response to a motion by Councillor Mowat, to review the powers available to deal with the impact of short term private lets used as party flats. Details were provided of the review undertaken in response and outlined future control options. Councillor Mowat was heard in regard to her previous motion. Motion 1) 2) To note the contents of the report regarding the review findings. To note the development and introduction of new comprehensive Antisocial Behaviour procedures given. To agree that a Short Let Task Force be formed.
3)
2 Health, Social Care and Housing Committee 11 September 2012
4)
To agree that Opinion of Counsel be sought to clarify and explore the legal position in relation to future planning and licensing control of shortterm let activities as described in the report. To note that the report would form the basis of a further report to the Health, Social Care and Housing Committee, following the receipt of Counsel Opinion and further consideration by the review group.
5)
- moved by Councillor Ricky Henderson, seconded by Councillor Day. Amendment 1) To approve recommendations 8.1 (a), (b), (c) and (e) in the report by the Director of Services for Communities 2) To delete recommendation 8.1(d) of the Directors report and replace it with: At the same time as the Task Force is working, explore all ways in which planning policy could more effectively deal with these properties. This review should include Opinion of Counsel; evidence from other Councils as to the actual impact of planning controls; and consideration of enforcement practicalities if planning controls are in place. - moved by Councillor Chapman, seconded by Councillor Burgess. Voting For the motion For the amendment Decision To approve the motion by Councillor Ricky Henderson. (References Health, Social Care and Housing Committee 6 March 2012 (item 1.2); report by the Director of Services for Communities, submitted.) 15 2
Motion by Councillor Ricky Henderson Lothian and Edinburgh Abstinence Project, Malta House
The following motion by Councillor Ricky Henderson was submitted in terms of Standing Order 28:That Health, Social Care and Housing Committee: a) commends the work of Lothian and Edinburgh Abstinence Project (LEAP) in supporting people with addictions to become drug and alcohol free through the provision of a structured treatment and rehabilitation day programme and aftercare. notes that LEAP is currently based at Malta House, a property owned by the Church of Scotland. notes that the Church of Scotland intends to sell Malta House and gave 6 months notice of their intention to terminate the lease from January 2013. agrees that the Director of Health and Social Care takes steps to ensure that the Council works in partnership with LEAP, the Church of Scotland, NHS Lothian and other appropriate organisations to find a solution which will enable LEAP to continue its valuable work and look at ways of extending its services.
b)
c)
d)
Decision To approve the motion.
Firrhill Health and Social Care Centre Response to Motion by Councillor Rust
In response to a motion by Councillor Rust, details were providedon the current status of the Firrhill Health and Social Care Centre project, including clarification as to the roles and involvement of the Council and various partner agencies. Details were provided on the history of the Centre and progress made on the project. Decision 1) To note the history of the Centre to date.
2)
To note the recent progress made by NHS Lothian in community engagement and obtaining initial approvals for the project. To receive an update report on the project once the Outline Business Case had been finalised.
3)
(References Health, Social Care and Housing Committee of 19 June 2012 (item 2); report by the Director of Health and Social Care, submitted.) Declaration of Interests Councillor Ricky Henderson declared a financial interest in the foregoing item as a stakeholder Director of NHS Lothian.
Support to Carers
Priorities for support for carers across Edinburgh and proposed developments to provide additional support were presented. Decision 1) To note the proposed developments to increase support to carers: Emergency Scheme, Volunteer Scheme with Online System, and Self Directed Support to Carers. To note that the Director of Health and Social Care would submit an update report in 12 months.
2)
(Reference report by the Director of Health and Social Care, submitted.)
Live Well in Later Life 2012-22, Edinburghs Joint Commissioning Plan for Older People Consultation Arrangements
Details were presented of the consultation arrangements for the Joint Commissioning Plan for Older People 2012-22. Decision To note the consultation arrangements. (Reference report by the Director of Health and Social Care, submitted.) Declaration of Interests Councillor Aitken declared a non-financial interest in the foregoing item as a Director of Oxgangs Care.
Health and Social Care Revenue Budget Monitoring 2012/13 period three 30 June 2012
The revenue monitoring position of the Health and Social Care Department after three months of the financial year 2012/13 was provided. Decision To note the contents of the report. (Reference joint report by the Directors of Corporate Governance and Health and Social Care, submitted.)
Social Work Complaints Review Committee

8.1 27 June 2012 Decision To approve the recommendations by the Complaints Review Committee. (Reference report by the Complaints Review Committee, submitted.) 8.2 15 August 2012 Decision 1) To approve the recommendations by the Complaints Review Committee. To note the report by the Chief Social Work Officer.
2)
(References reports by the Complaints Review Committee and the Chief Social Work Officer, submitted.) 8.3 22 August 2012 (1) Decision 1) To approve the recommendations of the Social Work Complaints Review Committee. To note the report by the Chief Social Work Officer.
2)
(References reports by the Complaints Review Committee and the Chief Social Work Officer, submitted.)
8.4 22 August 2012 (2) Decision To note the decisions by the Social Work Complaints Review Committee. (Reference report by the Complaints Review Committee, submitted.)
Rechargeable Repairs Policy

Details were provided of the benefits and viability of a Rechargeable Repairs policy and approval was sought in principal for the implementation of a policy. Decision 1) To approve the principle of a Rechargeable Repairs policy ensuring that people at risk or vulnerable people, such as those experiencing abuse from ex-partners or adults with children who have challenging behaviour, were not prejudiced by the policy. To agree that work should continue towards the implementation of a Rechargeable Repairs policy in Spring 2013. To approve consultation of the draft Rechargeable Repairs policy with wider tenant groups and commit to report back to Committee in January 2013. To note that tenants experiencing particular hardship during kitchen and bathroom replacement were dealt with sensitively, including permanent rehousing within same multi storey blocks. That a performance monitoring report be submitted to the Committee on the Policy within one year of its implementation, the report to include: (a) (b) (c) (d) (e) the number of rechargeable repairs, the cost, the income received, the recovery rate, the number of disputes and outcomes including monitoring by age, disability, ethnicity and gender.
2)
3)
4)
5)
(References Health, Socail Care and Housing Committee 16 August 2011 (item 18); report by the Director of Services for Communities, submitted.)
10 CCTV Telfer Underpass

Details were provided of a proposal to install CCTV in Telfer Underpass and seek capital approval for the project. Decision 1) To agree the capital expenditure of 50,000 to be met from the Services for Communities Capital allocation. To request the Director of Services for Communities review underpasses in the city in regard to safety issues. To refer the report to Council for approval.
2)
3)
(Reference report by the director of Services for Communities, submitted.)
11 Approaches to Developing Affordable Homes on Council Land

Details were provided on new investment models that could be adopted to secure delivery of affordable homes on Council land. Decision 1) To agree that a Corporate Working Group be set up to develop procurement options for delivering affordable homes on Council owned land. To agree to receive a report from the Corporate Working Group to include recommendations by December 2012.
2)
(References Health, Social Care and Housing Committee 19 June 2012 (item 14); report by the Director of Services for Communities, submitted.)
12 Adaptations Service: Flexible Options and Solutions

Details were provided of other flexible adaptation options and solutions in addition to the flexible approach to bathing adaptations in Council housing which had been previously reported to Committee. Decision 1) To note that a flexible approach to the provision of adaptations was in place and the co-ordinated approach between Services for Communities,
Health and Social Care and Children and Families, continued to review other flexible options and solutions. 2) To discharge the remit from the Health, Social Care and Housing Committee of 6 March 2012.
(References Health, Social Care and Housing Committee 6 March 2012 (item 12); joint report by the Directors of Health and Social Care and Services for Communities, submitted.)
13 The Future of Right to Buy Scottish Government Consultation Paper

Details were provided of Scottish Governments proposals to change the Right to Buy (RTB) for Council homes and sought approval for the draft response to the consultation. Motion To approve the draft response to the consultation as detailed in the Directors report. - moved by Councillor Day, seconded by Councillor Work. Amendment To recommend that the Committee withdraw the response to the Scottish Governments consultation, considering it be disproportionate given there were only 54 sales with preserved right to buy and 10 sales with modernised right to buy in 2011/12. - moved by Councillor Rust, seconded by Councillor Aitken.
Voting For the motion For the amendment Decision To approve the motion by Councillor Day. (Reference report by the Director of Services for Communities, submitted.) 14 3
14 Housing Performance Report April/May 2012

Details were provided of performance management information for Services for Communities for the period April/May 2012. Decision To note performance for the period April/May 2012. (Reference report by the Director of Services for Communities, submitted.)
15 Services for Communities: Revenue Budget Monitoring 2012/13 Month Three Position
Details were provided of the month three revenue monitoring position during for Services for Communities. Decision To note the revenue budget position for 2012/13 (Reference report by the Directors of Corporate Governance and Services for Communities, submitted.)
16 Empty Homes Task Force

Details were provided of actions being taken by the Council to reduce empty homes, and gave proposals for the establishment of an Empty Homes Task Force to investigate ways to bring empty homes in the private sector back into use.
Decision To agree that an Empty Homes Task Force be set up in line with the membership and remit set out in the Directors report. (Reference report by the Director of Services for Communities, submitted.)
17 Energy Efficiency:
17.1 Consultations: Developing an Energy Efficiency Standard for Social Housing and Homes that Dont Cost the Earth: Scotlands Sustainable Housing Strategy Approval was sought for draft responses to two Scottish Government consultations on an Energy Efficiency Standard for Social Housing and Homes that dont cost the earth: Scotlands Sustainable Housing Strategy. Decision 1) To approve in principle, the draft response to the consultation on an Energy Efficiency Standard for Social Housing, and to authorise the Director of Services for Communities, in consultation with the Convener, to submit the response after considering the request to include a greater emphasis on the need to improve energy efficiency of council housing, including measures such as Energy Company Obligations, to reduce energy use, fuel bills and carbon emissions from the Councils housing stock. To approve in principle, the draft response to Homes that dont cost the earth: a consultation on Scotlands Sustainable Housing Strategy, and to authorise the Director of Services for Communities, in consultation with the Convener, to submit the response after considering the request to include options for applying standards in private housing which is consistent with the Capital Coalition commitment to reduce carbon emissions by 42% by 2020.
2)
(Reference report by the Director of Services for Communities, submitted.) 17.2 Impact of Council Housing Emissions on the Carbon Footprint of Edinburgh The Policy and Strategy Committee at its meeting on 4 September 2012 referred the above report by the Director of Services for Communities to the Health, Social Care and Housing Committee for consideration Decision To note the report . (Reference Policy and Strategy Committee 4 September 2012 (Item 8), report by the Acting Head of Legal, Risk and Compliance, submitted.)
18 Scottish Social Housing Charter Indicators Scottish Housing Regulator Consultation

Details were provided of the Scottish Housing Regulators (SHR) new Regulatory Framework for monitoring the Scottish Social Housing Charter and approval was sought for a draft response to a consultation on proposed indicators for measuring social landlords performance. Decision To agree the draft response to the consultation as detailed in the Directors report. (Reference report by the Director of Services for Communities, submitted.)
19 National Tenancy Deposit Scheme Publicity Plan

Details were provided on the development of a publicity plan for the national tenancy deposit scheme. Decision To note the publicity plan for the national tenancy deposit scheme. (Reference report by the Director of Services for Communities, submitted.)
20 Rent Collection Performance

Details were provided in the collection of income to the Housing Revenue Account (HRA) from Council house rents, the pressures arising from the upcoming welfare reforms and the actions being taken in response.
Decision 1) To discharge the remit from Finance and Resources Committee on 31 July 2012 to report on the impact of legislative changes on rent collection performance. To note the content of the report.
2)
3)
To note that further reports would be presented as the rent services redesign project develops. To note that a report on welfare reform is scheduled to be reported to Policy and Strategy Committee on 2 October 2012.
4)
(References Finance and Resources Committee 31 July 2012 (Item 21), report by the Director of Services for Communities, submitted.)
Item No
5.2
Committee Minutes
Economic Development Committee

Present:- Councillors Munro (Vice-Convener), Austin Hart, Blacklock, Chapman, Bill Cook, Edie, McVey, Milligan, Orr (substituting for Councillor Buchanan), Paterson, Rankin, Ross and Rust.
Convener
In the absence of the Convener, Councillor Munro chaired the meeting.
Minute
Decision To approve the minute of the Economic Development Committee of 26 June 2012 as a correct record.
Presentation - Changes to Employability Provision

Jim Rafferty, Capital City Partnership, gave a presentation on working towards an integrated employment and skills service in Scotland. He described the background, underpinning principles, the potential for integration and recommendations, then answered questions from elected members on the detail of the proposals. Decision To thank Mr Rafferty for his interesting and informative presentation.
2 Economic Development Committee 18 September 2012
Economic Development Service: Progress Against the Three Year Plan 1 April 2012 to 30 June 2012
Details were given of the work of the Economic Development Service since the last Committee meeting and on progress towards meeting the core objectives in the three year plan for 2012/13 to 2014/15 Decision 1) To note the progress of the Economic Development Service since the last Committee cycle. To note the developments in the economy. That a meeting be sought with Edinburgh Airport Board of Directors in relation to investment support and that the Board be invited to attend a future meeting of the Committee to deliver a presentation on the subject. That the Head of Economic Development report to a future Committee on the Employability and Skills activities in relation to looked-after children. That consideration be given to the inclusion of the Edinburgh Guarantee in future funding agreements.
2) 3)
4)
5)
(Reference report by the Head of Economic Development, submitted.)
Economic Development Service: Audit of Performance for 2009/10 to 2011/12

Decision To note the progress on the audit of the performance of the Economic Development Service 2009/10-2011/12. (Reference report by the Head of Economic Development, submitted.)
City Development Revenue and Capital Budget Monitoring 2012-13 Month 4 Position to 31 July 2012
Details were given of the monitoring position of City Development after 4 months of the financial year and an update given on the projected outturn for 2012/13.
3 Economic Development Committee 18 September 2012 Decision 1) To note City Development currently projected an outturn forecast in line with the approved budget for 2012/13. To note the revenue budget would continue to be monitored throughout 2012-13 with measures identified to mitigate any risks to a balanced budget that emerge as the year progresses.
2)
(Reference report by the Head of Economic Development, submitted.)
Development Activity Bulletin 2011

The Planning Committee had recently considered a report by the Director of Services for Communities on the Councils fourth annual Development Activity Bulletin, which summarised the amount of development recently-delivered or processed through the planning process in Edinburgh, in terms of market value. Decision 1) 2) To note the report. That the Head of Economic Development report to a future meeting of the Committee on the methods used by other cities in Scotland to secure future investment.
(Reference Planning Committee of 9 August 2012 (item 4); report by the Acting Head of Legal, Risk and Compliance, submitted.)
Canal Champion
Decision That Councillor Munro be appointed as Canal Champion. (Reference report by the Head of Economic Development, submitted.)
Item no
5.3
Committee Minutes

Meeting 5 Thursday, 20 September 2012
Year 2012/2013
Edinburgh, 20 September 2012. At a meeting of The City of Edinburgh Council.
Present:-
LORD PROVOST
The Right Honourable Donald Wilson
COUNCILLORS
Elaine Aitken Robert C Aldridge Norma Austin Hart Nigel Bagshaw Jeremy R Balfour Gavin Barrie Angela Blacklock Chas Booth Mike Bridgman Deidre Brock Steve Burgess Andrew Burns Ronald Cairns Steve Cardownie Maggie Chapman Maureen M Child Bill Cook Nick Cook Gavin Corbett Cammy Day Denis C Dixon Karen Doran Paul G Edie Catherine Fullerton Nick Gardner Paul Godzik Joan Griffiths Bill Henderson Ricky Henderson Dominic R C Heslop Lesley Hinds Sandy Howat Allan G Jackson Karen Keil David Key Richard Lewis Alex Lunn Melanie Main Mark McInnes Adam McVey Eric Milligan Joanna Mowat Gordon J Munro Jim Orr Lindsay Paterson Ian Perry Alasdair Rankin Vicki Redpath Cameron Rose Frank Ross Jason G Rust Alastair Shields David Walker Iain Whyte Norman Work
2 The City of Edinburgh Council 20 September 2012
Donald Gorrie and Jimmy Cook Tributes

Councillor Edie paid tribute to Donald Gorrie, former city Councillor, MP and MSP, who had died on 25 August 2012. He had served the city as a member of Lothian Regional, Edinburgh District and Edinburgh City Councils and as an MP and MSP for a total of 37 years. The Lord Provost paid tribute to Jimmy Cook, former Edinburgh Councillor, who had died on 6 September 2012. He referred to his long service to the city as a Councillor from 1962 to his retirement in 1996 and as Convener of Lothian Regional Council from 1986-1990. The Council observed a minutes silence in their memory.
Disposal of Leith Waterworld

A marketing campaign for the leasehold interest in Leith Waterworld had been carried out. Bids to re-open and operate the facility had been submitted by Splashback. (a) Deputation Splashback The deputation explained that the Splashback campaign had been formed arising from the shared concern of residents over the closure of an important community leisure facility. The campaign had attracted widespread support from individuals and a diverse range of organisations across the city. The deputation acknowledged that Splashbacks bid for Leith Waterworld (LWW) was conditional and that further work was required to develop a detailed business case. However, the bid highlighted the community, social and health benefits of re-opening LWW. Splashbacks vision for LWW was to provide a wide range of leisure facilities and create an inclusive hub for health and well-being. While the deputation was grateful for the Councils willingness to work with Splashback, they asked the Council to demonstrate what could be achieved by a co-operative Council. They urged the Council to work proactively in partnership with a credible and enthusiastic community group and make a practical commitment to assist in developing a business case which would deliver the opportunity to re-open LWW.
3 The City of Edinburgh Council 20 September 2012 (b) Joint Report by the Directors of Corporate Governance and Services for Communities The outcome of the marketing of the long leasehold interest in Leith Waterworld following the closing date of 7 August 2012 was detailed. Approval was sought to reject the bids that had been received and to undertake a fresh marketing campaign for the property. Letters in support of Splashback had been received from a number of organisations and Mark Lazarowicz, MP. Motion 1) To agree with the independent GVA report as detailed in the appendix to the joint report by the Directors of Corporate Governance and Services for Communities and reject the bid/s received from Splashback (as they were currently configured) as they were not commercially acceptable and did not demonstrate best value. To note GVA indicated that the anticipated timescale for any further closing date, market conditions permitting, would not be before the first quarter of 2013. Therefore, to further agree that the re-marketing of the property should take place in due course, if required, but not before 1 February 2013. Thus, to use the intervening 4 months (October-January) to give further support to the Splashback Community Bid, in an effort to submit an offer that was commercially acceptable and demonstrated best value. This support to include: Dedicated assistance from Economic Development (or other appropriate) Council Officers. The aim being to ascertain whether Community Ownership could be commercially viable and of best value to the Council. Within a strict deadline by 31 January 2013 and the meeting of full Council that day.
2)
3)
4)
- moved by Councillor Lewis, seconded by Councillor Austin Hart (on behalf of the Capital Coalition).
4 The City of Edinburgh Council 20 September 2012 Amendment 1 1) To note the GVA report recommending rejection of the bids received from Splashback and the remarketing of the property in due course due to perceived deficiencies in the Splashback business case submitted, the lack of a feasibility study and the requirement for ongoing subsidy. To note however that only one party submitted bids following extensive marketing of the site. Further, to note that GVA considered that the "development potential [of the Waterworld site] is [...] limited", that the "commercial attraction is poor", that "alternative uses [for the Waterworld site] are limited", and that aspirations for a capital value in the region of 1.5m should be lowered. Further, to note that the GVA report had considered only the commercial aspects of the Splashback bids, ignoring the nearly 250,000 in social benefit that the pool could offer to a ward such as Leith which contained areas of high deprivation. Bearing in mind the negative comments from GVA on the prospects of a commercial bid for the site and the very substantial social benefits that reopening the pool would bring, to delay remarketing the site, and use the intervening time to work co-operatively with the Splashback group to try to overcome any perceived shortcomings in their bid. To agree that the co-operative working outlined in paragraph 5 above should include, but not be limited to, the following: (a) to offer support from Council Officers from the new Co-operative Development Unit, or any other department considered appropriate, to further refine the Splashback business case; to enter into discussions with Splashback, without prejudice, to explore the possibility of an ongoing subsidy for the pool.
2)
3)
4)
5)
6)
(b)
7)
Further, to continue the co-operative working until Splashback were in a position to submit a revised bid or until both parties by mutual agreement concluded that a viable bid was not possible. Further, to agree that any revised bid submitted under paragraph 7 should be referred to full Council for a decision, and should be accompanied by an officer report assessing the bid on the basis of best value.
8)
9)
To agree that, should no viable bid be forthcoming following the period of cooperative working outlined in paragraph 7, the site should then be remarketed as proposed by GVA.
- moved by Councillor Booth, seconded by Councillor Chapman (on behalf of the Green Group). Amendment 2 To approve the recommendation by the Directors of Corporate Governance and Services for Communities: That the Council agrees with the GVA report to reject the bid received from Splashback and the remarketing of the property in due course. The anticipated timescale for a further closing date, market conditions permitting, would not be before the first quarter of 2013. - moved by Councillor Balfour, seconded by Councillor Paterson (on behalf of the Conservative Group. Voting The voting was as follows: For the motion For amendment 1 For amendment 2 Decision To approve the motion by Councillor Lewis. 38 votes 6 votes 11 votes
(References Act of Council No 22 of 28 June 2012; letters in support of Splashback; joint report no CEC/39/12-13/CG&SfC by the Directors of Corporate Governance and Services for Communities, submitted.) Declaration of Interests Councillors Austin Hart, Balfour, Booth, Cairns and Lewis declared a nonfinancial interest in the above item as Directors of Edinburgh Leisure.
Questions
The question put by a member to this meeting, written answer and supplementary question and answer are contained in appendix 1 to this minute.
Minute
Decision To approve the minute of the Council of 23 August 2012 as a correct record.
Appointments to Council Companies

The Lord Provost ruled that the following item, notice of which had been given at the start of the meeting, be considered as a matter of urgency in order that it be considered timeously. Councillor Buchanan had resigned as Director of a number of Council companies with effect from 19 September 2012 and the Council was invited to make nominations to the companies in his place. Decision 1) To nominate Councillor Ross to the boards of the following Council companies: Capital City Partnership Limited Gyle Developments Limited Marketing Edinburgh Limited Waterfront Edinburgh Limited. 2) To instruct the Director of Corporate Governance to take the necessary steps on behalf of the Council to appoint Councillor Ross to the boards.
(References Act of Council No 2 of 24 May 2012; report no CEC/44/12-13/CG by the Director of Corporate Governance, submitted.)
Leaders Report
The Leader presented his report to the Council. The Leader commented on: Donald Gorrie and Jimmy Cook Live webcast of Council meetings Portobello High School legal judgement Refuse collections schedule changes Urban Broadband Fund confirmation of 10.7m award to Edinburgh.
The following questions/comments were made: Councillor Jackson Councillor Balfour - Jimmy Cook - Jimmy Cook and Donald Gorrie - Children and Families Department appreciation for work on Portobello High School project - Congratulations to athletes for their success at the Olympic and Paralympic Games - Refuse collection schedule changes - Councils governance structure budget process - Refuse collection - clarity on collection rates - bin operatives training - ABM decision - Jimmy Cook and Donald Gorrie - Edinburgh Economic Strategy social benefits and environmental impact - Council Co-operatives update on development - Council budget process - Urban Broadband Fund - Public contact with Council - Public consultation on major policies - Congratulations to Duncan Place Resource Centre Youth Samba Band performance at Paralympics - Tribute to Edinburgh resident Jeni Ayris killed in suicide attack in Afghanistan - Urban Broadband Fund - Jimmy Cook - Cyrenians Homeless Prevention project success - Funding for carers
Councillor Mowat
Councillor Burgess
Councillor Austin Hart
Councillor Rankin Councillor Rose Councillor Aldridge
Councillor Booth
Councillor Howat
Councillor Day Councillor Edie
Councillor McVey
- White Ribbon Scotland Campaign to end violence against women - Urban Broadband Fund inclusion of rural areas
Councillor Work
(Reference report no CEC/42/12-13/L by the Leader, submitted.)
Community Empowerment and Renewal Bill Scottish Government Consultation

The Policy and Strategy Committee had referred recommendations, in terms of Standing Order 53, on the Councils draft response to the Scottish Governments consultation on the Community Empowerment Bill. Motion 1) To note the Scottish Governments proposals and timescales for progressing the Community Empowerment and Renewal Bill. To approve the Councils draft response to the consultation as detailed in the appendix to report no PS/20/12-13/SfC by the Director of Services for Communities. To discharge the motion by Councillor Chapman.
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- moved by Councillor Burns, seconded by Councillor Brock (on behalf of the Capital Coalition). Amendment 1 1) To note the draft response and to thank officers for the considerable work that had gone into pulling this together. To approve the draft response, with the following additions or changes: (a) Add new paragraph to response to Q2: Key to improving the Neighbourhood Partnership approach is the devolution of further power and responsibility to communities, including more local control of budgets, as this will motivate local people to become more involved.
2)
(b)
Change the second paragraph of the response to Q5 as follows: From the planning perspective, an overarching duty to engage is perhaps not necessary, especially given the statutory duties built in to the land use planning system. However, what is required is better application of these duties; communities still often feel excluded by the planning process, and do not have as much power to contribute to decision making as do developers, for example. There needs to be parity in treatment of communities and developers within the planning system, so that communities can influence developments in their local areas more transparently.
(c)
Add new paragraph to response to Q6: Community Councils need increased support from Local Authorities to enable them to engage more members of their communities, and thus be more effective representatives. It should not be assumed that Community Councils are simply conduits for delivering or implementing Council policy; they should be encouraged to develop their own plans, and properly resourced so to do.
(d)
Add new paragraph to response to Q8: It is generally recognised that Community Councils need increased support, including financial and administrative support and access to professional advice, from Local authorities in order to effectively fulfil their current constitutional and statutory duties.
(e) (f)
Question 18 should be answered Yes. Question 19 should be answered Yes, and the reasons given as follows: Communities should be able to request the right to manage certain local budgets; some budgets certainly lend themselves to this, for example environmental projects where local knowledge is a key ingredient to success. If this were to happen, communities would have to be properly supported in the developing of budgetary priorities, ensuring transparency and accountability. Participatory Budgeting mechanisms should be developed by the community with support from the Local Authority for specific services and projects. The Local Authorities could still choose, in consultation with local people, to retain control of some local areas of spending.
(g)
Add new paragraph to response to Q22: Community control of public assets should not be limited to unused or underused public sector assets, but could be extended to a wide variety of successfully utilised assets.
(h)
Add new paragraph to response to Q25: However, communities should be supported by the Local Authority in the use of common good assets, and to ensure that these assets are used to best effect. National guidelines on community use of common good assets would be welcomed.
(i)
Add new paragraph to response to Q32: Many communities feel impeded by bureaucracy in the management and control of GYO initiatives. Simplification of the insurance and liability requirements for such projects would encourage more communities to use their local green spaces for such activities.
(j) (k)
Answer to Q42 should be Yes. The following should replace the response to Q42: Careful consideration would need to be given to the risk of raising unrealistic expectations by the introduction of such powers, but as the exercise of such powers would remain in the gift of local authorities, they should be developed, and local authorities then properly supported to resource their implementation. The European Convention on Human Rights sets out a very strong framework that protects individuals property rights from interference from public sector bodies. Any public interest argument would need to be set out in primary legislation and then in any subsequent cases that were argued in court.
- moved by Councillor Chapman, seconded by Councillor Booth (on behalf of the Green Group.) Amendment 2 To approve the Councils draft response to the Scottish Governments consultation subject to the following: 1) In relation to question 21c replace the answer with: Most of the City of Edinburgh Council area is presently excluded from rural community right to buy, which is itself subject to a current
Government review. However, there is merit in the two reviews being considered in tandem and to see how the respective rights would be aligned in practice given the, albeit limited, potential for overlap between the two. 2) In relation to question 22 insert: The terms unused or underused require to be defined and specifically who is determining the application of these terms. There may be concern that an underused asset is in fact provided to assist a vulnerable group which may not be lucrative for the public sector or widely popular in the community, but which serves a need. It could be that transfer of such an asset may be a divisive issue for a community. Similarly a green space may be relatively unused, but the value of the space is arguably that. Asset would also require definition. If a transfer to a community body is likely to be successful, then it requires to be an asset. If a property is underused it may in fact be a liability and this may generally be a critical issue. It is recognised that there may also be TUPE issues if staff are to be transferred with an asset. 3) In relation to question 46 retain the original response but add the following wording, pointing out that: Communities by their nature are diverse and while some may be well resourced and have a wide range of background expertise or knowledge others may not. It is therefore likely that any legislative changes may have a more pronounced uptake or impact in some communities than others and capacity will be an important issue. 4) In relation to question 48 replace the answer with: Some derelict or unused land may serve as a habitat for wildlife, both in urban and rural areas. Potentially biodiversity may suffer on bringing such land back into use. 5) In relation to Question 49: Retain the original response but add the following wording, pointing out that: The Consultation does not make reference to the positive effect which business has from an economic and social viewpoint, for communities in terms of creating jobs etc. The sense that businesses too are part of the community is not really evident in the consultation. Overall consideration of investment and the wider economy need to be given more explicit
consideration in further reviewing the proposals. In terms of local authorities the full impact on them would need to be considered. The implications of some of the proposals would impose more duties and responsibilities on them. This would no doubt entail greater costs in public administration. We therefore recognise that some of the proposals would represent an extra regulatory burden and place further financial constraints on them and consequently on the taxpayer. - moved by Councillor Rust, seconded by Councillor Balfour (on behalf of the Conservative Group). In accordance with Standing Order 30(7), paragraph (1) of amendment 2 was accepted as an addendum to the motion. Voting The voting was as follows: For the motion (as adjusted) For amendment 1 For amendment 2 Decision To approve the motion (as adjusted) by Councillor Burns. Declaration of Interests Councillors Cairns, Corbett and Rust declared a non-financial interest in the above item because of their involvement in the consultations on behalf of organisations. (References Policy and Strategy Committee 4 September 2012 (item 7); report no CEC/36/12-13/PS by the Acting Head of Legal, Risk and Compliance, submitted.) 39 votes 6 votes 11 votes
CCTV Telfer Underpass

The Health, Social Care and Housing Committee had recommended that the Council approve capital expenditure to install CCTV in the Telfer Underpass.
13 The City of Edinburgh Council 20 September 2012 Decision To approve capital expenditure of 50,000 to be met from Services for Communities Capital allocation to install CCTV in the Telfer Underpass. (References Health, Social Care and Housing Committee 11 September 2012 (item 10); report no CEC/37/12-13/HSCH by the Acting Head of Legal, Risk and Compliance, submitted.)
Governance Review: Political Management Arrangements and Operational Governance

The Council had continued consideration of proposed new governance arrangements. Following further consultation, an overview of a revised governance model was provided and new political management arrangements were proposed. An update was also provided on Elements Two (Operational Governance) and Elements Three and Four (Strategic and Programme Governance) of the governance review. Motion 1) To approve the system of Committees as detailed at paragraph 2.5 of the report by the Director of Corporate Governance. To approve the arrangements for consideration of neighbourhood plans as detailed at paragraph 2.8 of the Directors report. To approve option 2 at paragraph 2.30 of the Directors report for the administration of trusts; ie that responsibility for trusts/endowments be transferred from the Pensions and Trusts Committee to the Finance and Budget Committee. To appoint 15 members to the Corporate Policy and Strategy Committee with a political balance of 5 Labour, 4 SNP, 3 Conservative, 2 Green and 1 SLD and to appoint the Leader and Deputy Leader as Convener and ViceConvener respectively. To appoint 20 members to the Education, Children and Families Committee with a political balance of 7 Labour, 6 SNP, 4 Conservative, 2 Green and 1 SLD and to appoint Capital Coalition members as Convener and Vice-Convener.
2)
3)
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To appoint 15 members to the Health Wellbeing and Housing and Transport and Environment Committees with a political balance of 5 Labour, 4 SNP, 3 Conservative, 2 Green and 1 SLD and to appoint Capital Coalition members as Convener and Vice-Convener for each Committee. To appoint 13 members to the Communities and Neighbourhoods, Culture and Sport and Finance and Budget Committees with a political balance of 5 Labour, 4 SNP, 2 Conservative, 1 Green and 1 SLD and to appoint Capital Coalition members as Convener and Vice-Convener of each Committee. To approve the regulations for appointment of religious, teacher and parent representatives detailed in appendix 6 to the Directors report. To appoint the following additional members to the Education, Children and Families Committee: A Craig Duncan (Church of Scotland) Ms Marie Allan (Roman Catholic) Rev Thomas Coupar (The Robin Chapel) Allan Crosbie (Teacher Representative) Raymond George Simpson (Teacher Representative) Parent representative in accordance with the regulations in appendix 6 to the Directors report.
7)
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10) To appoint 13 members to the Governance, Risk and Best Value Committee with a political balance of 5 Labour, 4 SNP, 2 Conservative, 1 Green and 1 SLD and appoint a Conservative member as Convener. 11) To appoint 10 members to the Petitions Committee with a political balance of 3 Labour, 3 SNP, 2 Conservative, 1 Green and 1 SLD and appoint a Green Party member as Convener. 12) To approve the procedures for the Petitions Committee detailed in appendix 5 to the Directors report subject to the provisions outlined in option 3 at paragraph 2.25 of the report; ie that the threshold for signatories be set at 500 but that the Convener had discretion between 250 and 500 signatures for localised issues only. 13) To appoint 5 members to the Pensions Committee with a political balance of 2 Labour, 2 SNP and 1 Conservative and appoint a Capital Coalition member as Convener. 14) To appoint members to Committees as detailed in appendix 2 to this minute and to note that the Leader and Deputy Leader would continue as ex officio members of the Executive Committees.
15) To agree, in respect of appointments to the Committees (including appointment of Conveners and Vice-Conveners) where nominations had not yet been submitted, that the political groups be entitled to nominate and appoint specific Councillors to those positions in order to make up the political balance and to appoint Conveners and Vice-Conveners from the relevant political groups as agreed by Council. 16) To appoint Conveners and Vice-Conveners as detailed in appendix 2 to this minute. 17) To approve the Committee Terms of Reference and Scheme of Delegated Functions detailed in appendix 3 to the Directors report subject to determination of policy being a function reserved to Executive Committees. 18) To repeal Standing Orders and approve in their place the Procedural Standing Orders for Council and Committee meetings set out in appendix 2 to the Directors report, such repeal and approval to take effect from 29 October 2012, subject to removal of the sentence:'A Convener can only delay consideration of business submitted in terms of this Standing Order by one cycle.' at paragraph 29.1. 19) To approve the outline programme of meetings at appendix 4 to the Directors report and to implement the new arrangements from 29 October 2012. 20) To continue the remuneration arrangements agreed by Council on 24 May 2012 for the Lord Provost, Depute Lord Provost, Leader, Deputy Leader, Conveners and Vice-Conveners of the Regulatory and Planning Committees, Convener of the Licensing Board and Opposition Group Leaders. 21) To approve the designation of Senior Councillors detailed in paragraph 2.36 of the Directors report and to note that the Convener and ViceConvener of the Communities and Neighbourhoods Committee would receive allowances at a rate of 50% and 40% respectively. 22) To delegate authority to the Director of Corporate Governance to take such actions and make such minor adjustments to the documents set out in appendices 2 to 6 of the Directors report as might be necessary in order to implement the decisions of Council in relation to the report. 23) To review these new arrangements after six months operation.
24) To note progress and consultation arrangements for elements two, three and four of the governance review. - moved by Councillor Burns, seconded by Councillor Cardownie (on behalf of the Capital Coalition). Amendment 1 To approve the recommendations by the Director of Corporate Governance at paragraph 6 of his report subject to the following: 1) To approve recommendation 6.2.1 taking option 2 as outlined in paragraph 2.30 of the Directors report. To replace recommendation 6.2.7 with the words: To appoint seven additional members to the Education, Children and Families Committee to include three religious representatives, two teacher representatives and two parent representatives: one from the primary sector and one from the secondary sector. 3) To approve recommendation 6.2.10 in respect of the Petitions Committee and approve Option three detailed in paragraph 2.25(c) of the Directors report. To replace recommendation 6.2.15 with: In addition to remuneration arrangements agreed for the Lord Provost, Depute Lord Provost, Leader, Deputy Leader and Opposition Group Leaders by Council on 24 May 2012, to designate the Councillors appointed to the following positions Senior Councillors with the level of remuneration based the percentage of the Leaders salary as follows: Conveners of the Executive Committees 65% Vice-Conveners of the Communities and Neighbourhoods, Culture and Sport, Education, Children and Families, Finance and Budget and Health, Wellbeing and Housing Executive Committees 45% Chair of the Governance, Risk and Best Value Committee 50%; and Chair of the Petitions Committee 45%
2)
4)
- moved by Councillor Balfour, seconded by Councillor Rose (on behalf of the Conservative Group.)
17 The City of Edinburgh Council 20 September 2012 Amendment 2 1) To broadly welcome changes, following consultation, to the proposed political governance arrangements rejecting a single, central decisionmaking committee and in favour of retaining executive subject committees as decision-making bodies. To further welcome the creation of subject Sub-Committees to develop policy, the creation of a Petitions Committee, a Sub-Committee of Finance and Resources to develop the Council budget and research services to inform scrutiny and policy development. To approve the refined Committee model as detailed in the report by the Director of Corporate Governance. To approve recommendations 6.2.2, 6.2.3, 6.2.4, 6.2.5, 6.2.8, 6.2.9, 6.2.11, 6.2.14, 6.2.15, 6.2.17 in the Directors report. To approve recommendation 6.2.1 and select option 2 at paragraph 2.30(b) of the Directors report that responsibility for the trusts/endowments be transferred from the Pensions and Trusts Committee to the Finance and Budget Committee. To approve the regulations for the appointment of religious, teacher and parent representatives as detailed in appendix 6 to the Directors report except under paragraph 6, Nomination of Parents Representative, insert after the first sentence: Parent Representatives will be determined by a ballot of all properly constituted parent councils. 7) To approve option two in recommendation 6.2.7, except replace a parent representative with two parent representatives. To approve the Procedures for the Petitions Committee detailed in appendix 5 to the Directors report, subject to selection and incorporation of option 3 outlined in paragraph 2.25 of the report. To approve the Committee Terms of Reference and Scheme of Delegated Functions in appendix 3 to the Directors report except: (i) Policy Development and Review Sub-Committees should be able to develop and agree new policies within any of their executive committee remit; therefore amend paragraph 9.7 as follows: 9.7 Consider, develop and determine policies for the services included in its parent committees remit, by deleting within the strategic framework approved by the Council.
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9)
(ii)
At paragraph 13 Leadership Advisory Panel: Change Green Group Leader to Green Group Convener.
(iii)
Bring the Planning Committee into line with the other 15-member Committees of the Council amend paragraph 14.1 as follows: 5 Labour Delete 5 SNP and insert 4 SNP 3 Conservative Delete 1 Green and insert 2 Green 1 SLD.
(iv) Replace existing paragraph 14.4 with: Substitutes for the Planning Committee are permitted after they have undertaken the appropriate training. (v) Clarify at paragraph 2.14 of the Directors report that any member of an Executive Committee may request consideration by the Committee of any report within a package of reports otherwise being considered under routine business.
10) To approve recommendation 6.2.13 subject to the deletion of the following from Standing Order 29.1: A Convener can only delay consideration of business submitted in terms of this Standing Order by one cycle. 11) To note progress and consultation arrangements for elements two, three and four of the governance review. - moved by Councillor Burgess, seconded by Councillor Corbett (on behalf of the Green Group). Voting For the motion For amendment 1 For amendment 2 36 votes 14 votes 6 votes
19 The City of Edinburgh Council 20 September 2012 Decision To approve the motion by Councillor Burns. (References Acts of Council No 4 of 24 May and No 8 of 23 August 2012; report no CEC/44/12-13/CG by the Director of Corporate Governance, submitted.)
Management Rules for Public Parks and Greenspace 2013-2023

The outcome of public consultation on the draft Management Rules for Public Parks and Greenspace was presented. Approval was sought for the next step of formal public notification so that the new rules could take effect from February 2013, when the current rules expired. Decision To continue consideration of the matter to the Council meeting on 25 October 2012. (References Transport, Infrastructure and Environment Committee 27 September 2011 (item 12); report no CEC/38/12-13/SfC by the Director of Services for Communities, submitted.)
10 Licensing (Scotland) Act 2005 Re-appointment of the City of Edinburgh Licensing Forum and Revised Constitution
The Councils statutory function regarding the membership of the Licensing Forum was detailed and approval was sought for amendments to its constitution. Decision 1) To approve the membership composition of the City of Edinburgh Licensing Forum. To re-appoint any existing member of the Forum should they wish to volunteer. To delegate authority to appoint or re-appoint members thereafter to the Director of Services for Communities in consultation with the Convener of the Forum.
2)
3)
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To approve the constitution of the Forum.
(Reference report no CEC/40/12-13/CG by the Director of Corporate Governance, submitted.)
11 Proposal to Change the Name of the Old Council Chamber to The Diamond Jubilee Room
Arising from a motion by Councillor Heslop, an appropriate commemoration of the Queens Diamond Jubilee was proposed. Decision To rename the Old Council Chamber in the City Chambers The Diamond Jubilee Room in honour of Her Majesty the Queens Diamond Jubilee. (References Act of Council No 17 of 28 June 2012; report no CEC/43/1213/SfC by the Director of Services for Communities, submitted.)
12 Edinburgh Athletic Club UK Winners of the Young Athletes League Motion by Councillor Day
The following motion by Councillor Day was submitted in terms of Standing Order 28: That this Council congratulates the athletes, coaches and officials of Edinburgh Athletic Club in winning the UK final of the Young Athletes League at Manchester's Sportcity on Sunday 2 September 2012. The result is the culmination of a season long competition to find the best track and field club in the UK for U13, U15 and U17 year old athletes and it is the first time that a Scottish club has won the competition since it began in 1974. Council commends the efforts and success of the Edinburgh Athletic Club and asks the Lord Provost to celebrate this in an appropriate manner. Decision To approve the motion by Councillor Day.
13 Edinburgh Common Riding Event for Bicycles Motion by Councillor Edie

The following motion by Councillor Edie was submitted in terms of Standing Order 28: Council notes the success of the re-established Edinburgh Common Riding which has become a highly popular community event since its resurrection. Council also notes that in 2001 during the foot and mouth outbreak the town of Melrose established a common riding by bicycle, which has now become a highly popular annual event, in addition to their own traditional Common Riding, with 542 participants this year, ranging from 8 months to over 80 years old. Council agrees to a report back to the Transport, Infrastructure and Environment Committee following discussion with the Cycling Forum on the feasibility of Edinburgh having an additional common riding event for bicycles possibly as part of the Bike Festival along the lines of that pioneered by Melrose. Decision To approve the motion by Councillor Edie.
14 Andy Murray Craiglockhart Tennis Centre Motion by Councillor Corbett

The following motion by Councillor Corbett was submitted in terms of Standing Order 28: Council: 1) Congratulates Andy Murray on becoming the first British winner of a Grand Slam Tennis Tournament in over 70 years; Recognises and celebrates Andy Murrays long association with the Craiglockhart Tennis Centre; Agrees to open discussions with Edinburgh Leisure with a view to naming the centre the Andy Murray Tennis Centre at Craiglockhart.
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Decision To approve the motion by Councillor Corbett.
15 Castlebrae High School Motion by Councillor Rose

The following motion by Councillor Rose was submitted in terms of Standing Order 28: Council 1. Notes that the administration has indicated an intention to close Castlebrae Community High School. Notes that the 2010-12 inspection process and reports gave cause for considerable concern. Notes that concerns about educational achievement and attainment at Castlebrae have existed for many years. Notes that the administration wishes to explore Co-operative and other ways of delivering education. Notes the existence of examples of successful education delivery elsewhere including: a. b. c. d. Co-operative sponsored schools including around 200 in England and Wales, and the Elmgreen Co-operative School in Lambeth. Co-operative schools in Sweden. Ark Schools and Harris Federation schools, both of which have a promising track record in turning round poorly performing schools. Teach First, a charity which recruits exceptional graduates into teaching and specialises in contributing to schools in challenging circumstances which experience high levels of poverty or under achievement. Future Leaders, a charity which focuses on developing the next generation of leaders for challenging schools.
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Resolves to set up a working party to investigate and report on these examples and other innovative types of education delivery which could have a role at Castlebrae Community High School, or in other parts of Edinburghs education system where there is limited attainment. Resolves that the working party report back to the Education, Children and Families Committee by the end of March 2013.
7.
The Lord Provost remitted the motion to the Education, Children and Families Committee in terms of Standing Order 28(3), subject to competency.
16 Workfare Motion by Councillor Chapman

Council: Notes the Workfare scheme introduced by the Westminster Government that forces people on welfare to work without payment under threat of loss of benefits; Believes that this undermines paid employment, genuine volunteering and the social welfare system, and does not benefit individuals or communities, but perpetuates poverty; Resolves not to take part in any Workfare or other forced labour scheme. Decision To continue consideration of the motion to the Council meeting on 25 October 2012.
17 Portobello High School Motion by Councillor Rose

The Lord Provost ruled that the following item, notice of which had been given at the start of the meeting, be considered as a matter of urgency in order that it be considered timeously. The following motion by Councillor Rose was submitted in terms of Standing Order 27: Council: 1. Notes the Inner House of the Court of Session ruled on 12 September against the Councils case for building a new school on Portobello Park. Notes the disappointment of parents and most residents within the local and school communities. Recognises the importance of taking a prompt decision on how to proceed to provide appropriate educational facilities in the current circumstances. Calls for a report within one cycle outlining the likelihood of success of an appeal to the Supreme Court. The report should also include information on costs and timings. Calls for a review within one cycle of all possible site configuration options, including any which may have become available since a last site such review.
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Calls for draft framework for community consultation and views based on, but not limited to, the options review (preceding paragraph) and to last no more than 2 months from the date of the October Council meeting. The framework should include public meetings, social media and other appropriate communication and take into account the need for urgent progress.
Decision 1) 2) To approve paragraphs 1 and 2 of the motion. To note: (a) the stated intention of the Administration to present a report to the Council on 25 October 2012. that a meeting of the Parent Council Chairs from the Portobello cluster had been arranged. that the proposed arrangements for community consultation on any site options which might be identified for consideration would be set out in the report to Council on 25 October 2012.
(b)
(c)
(Reference Act of Council No 1 of 26 April 2012.)
18 Refuse Collection Arrangements Motion by Councillor McInnes

The Lord Provost ruled that the following item, notice of which had been given at the start of the meeting, be considered as a matter of urgency in order that it be considered timeously. The following motion by Councillor McInnes was submitted in terms of Standing Order 27: Council: 1. Notes that major new refuse collection arrangements began on Monday 10 September 2012. Notes there have been widespread examples of bins not being collected and rubbish overflowing, causing possible public health issues. Notes public concern reflected in a large number of calls to the waste helpline and to Councillors.
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Calls for a report within one cycle detailing the problems experienced, measures already taken and action still to be taken, which will ensure delivery of efficient refuse collection for Edinburgh.
Councillor McInnes withdrew his motion.
19 Dog Fouling Initiative Motion by Councillor Day for remit to the Transport, Infrastructure and Environment Committee
The following motion by Councillor Day was submitted in terms of Standing Order 29: Committee notes the success of the Forth Neighbourhood Partnerships dog fouling initiative in 2011 which won a national award for innovation and creativity. Committee also notes the continued issues relating to dog fouling and the negative impact which this can have on local communities. While most dog owners dispose of dog fouling responsibly it only takes one or two irresponsible owners to leave the fouling behind to make a neighbourhood look unattractive and uncared for, as well as presenting a potentially serious health hazard to young children. To build on the successes of the Forth initiative, Committee calls for a report into how this initiative and its successes can be rolled out across the city, targeting irresponsible owners who persistently allow dog fouling, the report to also consider the possible introduction of a Green Dog Walkers scheme, initially on a pilot basis. Decision To remit the motion to the Transport, Infrastructure and Environment Committee, subject to competency.
20 Property Investigation Exclusion of Contractors

The Council, in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, excluded the public from the meeting during consideration of the following item of business for the reason that it involved the likely disclosure of exempt information as defined in Paragraphs 6 and 14 of Part 1 of Schedule 7(A) of the Act.
The Finance and Resources Committee had referred a recommendation, in terms of Standing Order 53, about the exclusion of contractors arising from the investigation into the Councils Property Service. Decision That once meetings had taken place as outlined in the report, to instruct the Director of Services for Communities to prepare a report for the Property SubCommittee to come to a decision on the matter. (References - Finance and Resources Committee 28 August 2012 (item 2); report no CEC/41/12-13/SfC by the Acting Head of Legal, Risk and Compliance, submitted.)
Appendix 1
(As referred to in Act of Council No 2 of 20 September 2012)
QUESTION NO 1
By Councillor Edie for answer by the Leader of the Council at a meeting of the Council on 20 September 2012
Question
Noting the announcement by the Leader of the Council on 7 September that "there will be a Social Care Co-operative, a Childcare Co-operative and a Housing Co-operative" established in Edinburgh, what consultation had there been before this announcement with service users, tenants groups, parents and NHS Lothian about the establishment of each of these bodies? During the recent Local Authority election campaign, there was extensive consultation and healthy debate, with a wide range of individuals and organisations, about the potential use of the Co-operative Model for the delivery of some of this Councils services. That election resulted in: Labour 20 Councillors SNP 18 Councillors Conservative 11 Councillors Greens 6 Councillors Lib-Dem 3 Councillors Following this result a new Capital Coalition was formed between Labour and the SNP, which promptly approved a Contract with the Capital including clear commitments to: Examine ways to bring the Council, care home staff and users together into co-operatives to provide the means to make life better for care home users and care providers. Establish city-wide childcare co-operatives for affordable childcare for working parents. Encourage the development of co-operative housing arrangements.
Answer
These commitments will be honoured within the next 12months, and ongoing consultation will form a core part of their delivery. Supplementary Question Noting that there has been no consultation with service users or tenants by the Leader before he made his statement and noting that there has been no scrutiny or debate at this Council, can I ask the Leader why he is proposing this talk down Andrew knows best approach and imposing these on service users whether they want it or not? Im afraid I just dont recognise the premise that Councillor Edie has outlined. There has been significant consultation throughout the election period just a few months ago and very significant debate around all five manifestos that were put forward from the main parties in this city. The Labour Group and the Edinburgh SNP Group won that election, we formed the coalition and we are going to have more consultation over the next 12 months as we develop these proposals.
Supplementary Answer
Appendix 2
(As referred to in Act of Council No 8 of 20 September 2012) Membership of Committees
Corporate Policy and Strategy Committee 15 members 5 Labour, 4 Scottish National Party, 3 Conservative, 2 Green, 1 Scottish Liberal Democrat Leader of the Council (Councillor Burns) (Convener) Deputy Leader of the Council (Councillor Cardownie) (Deputy Convener) Convener of the Communities and Neighbourhood Committee (Councillor Child) Convener of the Culture and Sport Committee (Councillor Lewis) Convener of the Economy Committee (Councillor Buchanan) Convener of the Education, Children and Families Committee (Councillor Godzik) Convener of the Finance and Budget Committee (Councillor Rankin) EXECUTIVE COMMITTEES Communities and Neighbourhoods Committee 13 members 5 Labour, 4 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Child (Convener) Councillor Gardner Councillor Keil Councillor Redpath Councillor Walker Councillor Tymkewycz Councillor Ross (Vice-Convener) Councillor Fullerton Councillor Cairns Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio) Convener of the Health, Wellbeing and Housing Committee (Councillor Ricky Henderson) Convener of the Transport and Environment Committee (Councillor Hinds) Councillor Councillor Councillor Councillor Councillor Councillor
Culture and Sport Committee 13 members 5 Labour, 4 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Austin Hart (Vice Convener) Councillor Doran Councillor Gardner Councillor Milligan Councillor Munro Councillor Lewis (Convener) Councillor Cairns Councillor Fullerton Councillor Orr Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
Economy Committee 13 members 5 Labour, 4 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Austin Hart Councillor Milligan Councillor Munro (Vice Convener) Councillor Cook Councillor Blacklock Councillor Buchanan (Convener) Councillor McVey Councillor Rankin Councillor Ross Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
Education, Children and Families Committee 20 members 7 Labour, 6 Scottish National Party, 4 Conservative, 2 Green, 1 Scottish Liberal Democrat Councillor Godzik (Convener) Councillor Keil Councillor Child Councillor Redpath Councillor Austin Hart Councillor Day Councillor Lunn Councillor Key (Vice-Convener) Councillor Dixon Councillor Fullerton Councillor Brock Councillor Lewis Councillor Howat Councillor Councillor Councillor Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
Finance and Budget Committee 13 members 5 Labour, 4 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Bill Cook (Vice Convener) Councillor Ricky Henderson Councillor Griffiths Councillor Walker Councillor Blacklock Councillor Rankin (Convener) Councillor McVey Councillor Dixon Councillor Ross Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
Health, Wellbeing and Housing Committee 15 members 5 Labour, 4 Scottish National Party, 3 Conservative, 2 Green, 1 Scottish Liberal Democrat Councillor Ricky Henderson (Convener) Councillor Day (Vice Convener) Councillor Bill Cook Councillor Doran Councillor Griffiths Councillor Bridgman Councillor McVey Councillor Bill Henderson Councillor Work Councillor Councillor Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
Transport and Environment Committee 15 members 5 Labour, 4 Scottish National Party, 3 Conservative, 2 Green, 1 Scottish Liberal Democrat Councillor Hinds (Convener) Councillor Lunn Councillor Doran Councillor Perry Councillor Gardner Councillor Orr (Vice-Convener) Councillor Barrie Councillor Bill Henderson Councillor Lewis Councillor Councillor Councillor Councillor Councillor Councillor Leader (ex officio) Deputy Leader (ex officio)
OTHER COMMITTEES Governance, Risk and Best Value Committee 13 members 5 Labour, 4 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Child Councillor Godzik Councillor Ricky Henderson Councillor Munro Councillor Lunn Councillor Howat Councillor Orr Councillor Ross Councillor Tymkewycz Councillor Councillor Councillor Councillor
Petitions Committee 10 members 3 Labour, 3 Scottish National Party, 2 Conservative, 1 Green, 1 Scottish Liberal Democrat Councillor Gardner Councillor Redpath Councillor Keil Councillor Key Councillor Orr Councillor Dixon Councillor Councillor Councillor Councillor
Pensions Committee 5 members 2 Labour, 2 Scottish National Party, 1 Conservative Councillor Child (Convener) Councillor Bill Cook Councillor Orr Councillor Rankin Councillor
Item no
5.4
Committee Minutes
Finance and Resources Committee

Present: Councillors Rankin (Convener), Bill Cook (Vice-Convener), Aldridge, Blacklock, Corbett, Dixon, Griffiths, Ricky Henderson, Jackson (substituting for Councillor Heslop), Lunn (substituting for Councillor Walker), McVey, Ross and Whyte.
Minutes
Decision 1) To approve the minute of the Finance and Resources Committee of 31 July 2012 as a correct record. To approve the minute of the Finance and Resources Committee of 28 August 2012 as a correct record.
2)
82 Canongate, Edinburgh Proposed Lease of Shop

(a) Deputation Remade in Edinburgh The deputation advised that Remade in Edinburgh had been established to create a re-use and repair centre in South/Central Edinburgh. They had visited three separate sites with shop frontages but had identified the premises at 82 Canongate as the most suitable for their requirements. The organisation had participated in discussions with the Councils Waste Services which had resulted in a revised business plan being prepared. Waste Services had also offered Remade a grant of 15,000 for one year to help meet start up costs. The organisation intended to use the grant towards rental for the first year of operation at the premises. The Convener thanked the deputation for their presentation and invited them to stay for the debate on the matter (see item 2(b)).
Finance and Resources Committee 25 September 2012 (b) Report by the Director of Services for Communities The Committee had previously continued consideration of a proposal to lease the property at 82 Canongate, Edinburgh to Huseiyn Kulhas for a period of 20 years at a rental of 18,200 to allow Remade in Edinburgh to explore funding issues and develop and business plan. The Director of Services for Communities reported that Remade in Edinburgh had revised their business plan and had been offered a grant of 15,000 by Waste Services which they intended to use towards rent for the first year of operation at the premises at 82 Canongate. Motion To lease the property to Remade in Edinburgh for a period of one year at a rental of 15,000 per annum with the lease to be reviewed after one year. moved by Councillor Rankin, seconded by Councillor Bill Cook
Amendment 1) To lease the property to Huseiyn Kulhas for a period of 20 years at a rental of 18,200 per annum. That the Head of Property Management and Development continue to work with Remade in Edinburgh to identify suitable alternative premises within the wider area that were fit for purpose. moved by Councillor Whyte, seconded by Councillor Jackson
2)
Voting For the motion For the amendment Decision To approve the motion by Councillor Rankin. (References Finance and Resources Committee 31 July 2012 (item 2); report by the Director of Services for Communities, submitted) 11 votes 2 votes
Finance and Resources Committee 25 September 2012
Appointments
(a) Appointment of Convener of Property Sub-Committee Decision To appoint Councillor Rankin as Convener of the Property SubCommittee. (Reference report by the Director of Corporate Governance, submitted) (b) Appointment of Convener of Corporate Health, Safety and Wellbeing Group Decision To appoint Councillor Bill Cook as Convener of the Corporate Health, Safety and Wellbeing Group. (Reference report by the Director of Corporate Governance, submitted)
Capital Monitoring 2012/13 Month Four Position

The overall position of the Councils capital budget at Month 4 and the projected outturn for the year were reported. The Council was projecting to borrow 89.800m and would be in receipt of grants and capital income amounting to 85.070m. Capital receipts were forecast to match the budget over the four year period of the capital programme. Decision 1) To note the projected capital outturn positions on the General Fund and Housing Revenue Account at Month 4. To note the prudential indicators at Month 4. To note that the Corporate Asset Management Group had been instructed to undertake a thorough review of the capital programme with a view to accelerating projects from 2013/14 into the current year and that the outcome of the review would be included in the next report to Committee. To note that the Director of Services for Communities was closely monitoring the capital receipts position. To note the changes being made to the financial monitoring process. 3
2) 3)
4)
5)
6) 7)
To refer the report to the Audit Committee as part of its workplan. That a report be submitted to the next meeting detailing the extent to which the 7m school summer works programme, as set out in a letter to all members on 3 July 2012, was completed by the end of the summer break and what was being done to progress work that was incomplete.
(Reference report by the Director of Corporate Governance, submitted)
Revenue Monitoring 2012/13 Month Four Position

The overall position of the Councils revenue budget at Month 4 and the projected outturn for the year were reported. The revenue budget was projecting a balanced position for all services. Budget pressures and key financial risks were being actively managed by all services. Decision 1) To note that the Council was projecting a balanced position on the revenue monitoring at Month 4. To note that budget pressures and key financial risks were being actively managed by all Services. To note that good progress was being made in implementing approved 2012/13 budget savings and that a more detailed report would be included in the next revenue monitoring report to Committee. To note that the Housing Revenue Account was on target to meet planned contributions for voluntary debt repayment and investment in 21st Century Homes for Edinburgh. To refer the report to the Audit Committee as part of its workplan.
2)
3)
4)
5)
Corporate Governance Revenue Budget Monitoring 2012/13 Month Four Position to 31 July 2012
An update was given on the revenue monitoring position at Month 4 for the Corporate Governance service together with the projected outturn for 20122013. Information was provided on key risks including demand led pressures relating to housing and council tax benefits processing and a potential shortfall in 4
income targets. The position would continue to be monitored and further reports submitted to Committee as required. Decision 1) To note that the Service was currently projecting a break even position for 2012/13. To note the risks in the Corporate Governance 2012/13 budget position.
2)
Professional Fees and Consultants Costs 2011/12

Details were given of professional fees and consultants costs for the year ended 31 March 2012 together with a detailed analysis of the associated revenue and capital expenditure. Revenue expenditure amounted to 6.521m and capital expenditure 2.865m. Decision 1) To note revenue and capital expenditure on professional fees and consultants costs in the financial year 2011/12. That a report be submitted to Committee at Month 6 of the 2012/2013 financial year outlining projected expenditure on professional fees and consultants costs for 2012/2013. That, in the full year report for 2012/2013 to be reported in a years time, an extra column be added entitled Impact detailing any differences or changes made as a result of the consultancy activity. That costs of professional fees and consultants costs be detailed separately in the reports called for in 2) and 3) above.
2)
3)
4)
(References Finance and Resources Committee 25 August 2009 (item 11); report by the Director of Corporate Governance, submitted)
Treasury Management Effectiveness and Annual Report 20112012

Information was provided on the functions included within Treasury Management and the critical success factors against which the effectiveness of these functions should be judged. The Annual Report on Treasury Management activity for 2011-2012 was also submitted. Decision 1) 2) To note the update on Treasury Management functions. To note the Annual Report for 2011-2012.
(References Act of Council No 10 of 23 August 2012; report by the Director of Corporate Governance and report by the Acting Head of Legal, Risk and Compliance, submitted)
Road Services Term Service Contracts Period: 11 August 2012 to 31 March 2013
Approval was sought for a procurement strategy to consolidate the Councils Road Services Term Service Contracts for the period to 31 March 2013. Decision To approve the procurement approach to the Councils Road Services and Transport contracts. (Reference report by the Director of Services for Communities, submitted)
10 Framework Agreement for the Emergency Transfer of Waste

Approval was sought for the establishment of a Framework Agreement for the emergency transfer of waste for the period 20 October 2012 to 19 October 2015 with an optional extension of up to a further 12 months.
Finance and Resources Committee 25 September 2012 Decision To appoint a Framework Agreement for the Emergency Transfer of Waste to Viridor Waste Management Ltd and Shanks Waste Management Ltd. (Reference report by the Director of Services for Communities, submitted.)
11 21st Century Homes for Edinburgh Appointment of Contractor for West Pilton Crescent
Authority was sought to award a contract to build 34 new affordable homes at West Pilton Crescent. Decision To delegate authority to the Director of Services for Communities, in consultation with the Convener and the Acting Head of Legal, Risk and Compliance, to approve the award of a contract to build 34 affordable homes on the West Pilton Crescent development as part of the 21st Century Homes for Edinburgh Programme. (References Health, Social Care and Housing Committee 24 May 2011 (item 5); report by the Director of Services for Communities, submitted)
12 Disposal of Land at MacKenzie Place, Stockbridge, Edinburgh

Authority was sought to sell an area of land at MacKenzie Place, Stockbridge, Edinburgh to the proprietors of 10/11 MacKenzie Place for use as garden ground. Decision 1) 2) To sell the site by private contract and at market value. To delegate authority to the Director of Services for Communities to agree detailed terms and conditions of the sale with the Acting Head of Legal, Risk and Compliance in line with the Councils existing Standing Orders.
(Reference report by the Director of Services for Communities, submitted)
13 Proposed Extension of Lease Shop at 36/38 High Street, Edinburgh

Approval was sought to extend the lease of the premises at 36/38 High Street, Edinburgh for a further 25 years. Decision To approve the 25 year lease extension of the premises at 36/38 High Street, Edinburgh to Huseiyn Kulhas on the terms and conditions detailed in the report and on other such terms and conditions to be agreed by the Director of Services for Communities and the Acting Head of Legal, Risk and Compliance. (Reference report by the Director of Services for Communities, submitted.)
14 Proposed New Lease Shop at 137 Lauriston Place

Approval was sought to grant a 20 year lease of shop premises at 137 Lauriston Place, Edinburgh. Decision To approve the grant of lease of the shop premises at 137 Lauriston Place to Mrs Huma Malik on the main terms and conditions outlined and on such other terms and conditions to be agreed by the Director of Services for Communities and the Head of Legal, Risk and Compliance. (Reference report by the Director of Services for Communities, submitted.)
15 Alterations and Extension to Lease, Sandport Industrial Estate, 10-20 Dock Street, Leith, Edinburgh
Approval was sought to amend and extend the current ground lease for premises at Sandport Industrial Estate, 10-20 Dock Street, Leith, Edinburgh. Decision 1) To amend the lease to Aldi Stores Limited on the terms set out in the report and on any other terms and conditions to be agreed by the Directors of Services for Communities and Corporate Governance.
2)
To include Class 9 (Residential Development) in the Use Clause.
(Reference report by the Director of Services for Communities, submitted)
16 Irrecoverable Miscellaneous Debts

The Committee resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the public be excluded from the meeting during consideration of the following item of business for the reason that it involved the disclosure of exempt information as defined in Paragraph 6 Part 1 of Schedule 7(A) of the Act. Details were given of miscellaneous debts outstanding and deemed uncollectible. All possible methods of recovery had been attempted and the debts remained outstanding. Decision 1) To write off the miscellaneous debt deemed uncollectible as detailed in the Appendix to the report by the Director of Corporate Governance. To note that, where debts were subject to an Inhibition or Charging Order, it was likely that the debt would be discharged from the free proceeds realised through the sale.
2)
Item no
5.5
Committee Minutes
Audit Committee
Present:- Councillors Child (Convener), Ross (Vice-Convener), Godzik, Ricky Henderson, Howat, Jackson, Lunn, Main, Munro, Orr, Shields and Whyte.
Minute
Decision To approve the minute of the Audit Committee of 26 June 2012 as a correct record.
External Audit International Standard on Auditing (ISA) 260

(a) Lothian Pension Funds The views of the Councils external auditor on matters arising from the audit of Lothian Pension Funds, in compliance with ISA 260, were presented. Jim Rundell (Audit Scotland) highlighted the principal areas covered in the report and responded to questions from members. John Burns (Pensions and Accounting Manager) responded to questions from members. Decision To note the contents of the ISA 260 report for the Lothian Pension Funds. (Reference report no AC/05/12-13/CG by the Director of Corporate Governance, submitted.)
2 Audit Committee 27 September 2012 (b) City of Edinburgh Council The views of the Councils external auditor on matters arising from the audit of the Councils accounts, in compliance with ISA 260, were presented. Fiona Kordiak (Director of Audit, Audit Scotland) drew the Committees attention to the principal areas covered in the report and responded to questions from members. Hugh Dunn (Acting Head of Finance) summarised adjustments to the Councils accounts and responded to questions from members. The following issues were raised by members: STOs (Significant Trading Organisations) statutory requirement in relation to break even position improvement plans Statutory Repairs service adequacy of debt provision Directors of Council companies remuneration categorisation of heritage assets.
Decision To note: 1) 2) the issues raised by the External Auditor. the issues raised by the Committee.
(References Audit Committee 26 June 2012 (item 6); report no AC/06/12-13/CG by the Director of Corporate Governance, submitted.)
Capital/Revenue Monitoring Proposed Work Programme and 2012/13 Month Four Position
The Finance and Resources Committee had referred, as part of the Committees work programme, details of: Capital Monitoring 2011/12 Outturn, Slippage and Receipts Revenue Monitoring 2011/12 Outturn Capital and Revenue Monitoring 2012/13 Months Three and Four Positions
3 Audit Committee 27 September 2012 Decision To note the reports from the Finance and Resources Committee. (References Finance and Resources Committee 31 July 2012 (items 5, 6 and 7) and 25 September 2012 (items 4 and 5); report no AC/07/12-13/CG by the Acting Head of Legal, Risk and Compliance and reports (2) by the Director of Corporate Governance, submitted.)
Internal Audit Annual Report for Year Ended 31 March 2012

The Acting Head of Internal Audits annual report, based on internal audit activity undertaken for the financial year ended 31 March 2012, was presented. Decision To note the annual internal audit opinion for the year ended 31 March 2012. (Reference report no AC/09/12-13/CG by the Director of Corporate Governance, submitted.)
Internal Audit Activity Report

An update was given on internal audit activity in respect of the 2011/12 internal audit plan, together with a summary of key findings for the period JuneSeptember 2012. Attention was drawn to significant findings and associated actions identified in Internal Audit reviews in the following service areas: Services for Communities Public Transport and Accessibility, Blue Badge scheme Services for Communities Housing Property Services Investigation into a contact award Health and Social Care unit visits Regent Road and Ravenglass Hostel.
The following issues were raised by members: blue badge scheme outcome of police investigation provision of detailed background information on reviews assurances on implementation of recommended procedures submission of follow-up reports where necessary.
4 Audit Committee 27 September 2012 Decision 1) To note the progress of Internal Audit in respect of the 2011/12 internal audit plan and the areas of higher priority findings. To note the issues raised by members.
2)
(References Audit Committee 19 April 2012 (item 2); report no AC/10/1213/CG by the Director of Corporate Governance, submitted.)
Internal Audit Internal Audit Plan 2012/13

Internal Audits annual planning process had been reviewed and approval was sought for the Internal Audit Plan for the period 1 October 2012 to 30 September 2013. The following issues/questions were raised by members: Internal Audit plan workload staff resources impact of UNISON dispute Edinburgh Tram project frequency of reporting to members opportunity for scrutiny by Audit Committee risk register tram project.
Decision 1) To approve the Internal Audit plan for the period 1 October 2012 to 30 September 2013. To note the issues raised by members.
2)
(References Audit Committee 26 January 2012 (item 5); report no AC/11/1213/CG by the Director of Corporate Governance, submitted.)
Corporate Anti-Fraud and Corruption Policy Annual Report

The annual corporate report on fraud activity for 2011/12 was presented together with targets and work planned for 2012/13. The following issues/questions were raised by members: work of the Benefits Investigation Team target areas/pro-active work
5 Audit Committee 27 September 2012
information on change under the new Welfare Reform Act allowing the application of a civil penalty for claimant error the data matching process.
Decision To note: 1) the Annual Report on Fraud Activity for 2011/12 and the plans/targets for 2012/13. the proposed changes through Welfare Reform outlined in paragraph 2.2(ii)(c) of the report by the Director of Corporate Governance. the issues raised by members.
2)
3)
(Reference report no AC/12/12-13/CG by the Director of Corporate Governance, submitted.)
Audit Scotland Progress Report

The external auditors progress report on the 2011/12 audit plan, which included a summary of recently published national reports by Audit Scotland, was presented. Jim Rundell (Audit Scotland) highlighted the key issues on the report and answered question from members. Decision To note the external auditors progress report. (References Audit Committee 26 June 2012 (item 3); report no AC/13/1213/CG by the Director of Corporate Governance, submitted.)
Audit Scotland Maintaining Scotlands Roads A Follow-up Report

The outcome of the external auditors targeted review assessing progress in implementing the recommendations in the Accounts Commissions national report Maintaining Scotlands Roads published in 2004, was presented. Jim Rundell (Audit Scotland) summarised the key findings arising from the review and answered questions from members.
6 Audit Committee 27 September 2012 Decision To note the report. (References Audit Committee 23 June 2011 (item 7); report no AC/14/1213/CG by the Director of Corporate Governance, submitted.)
Item No
5.6
Committee Minutes
Policy and Strategy Committee

Edinburgh, 2 October 2012
Present:- Councillors Burns (Convener), Cardownie (Vice-Convener), Balfour, Brock, Burgess, Chapman, Child, Nick Cook, Edie, Ricky Henderson, Lewis, Mowat and Munro.
Minute
Decision To approve the minute of the Policy and Strategy Committee of 4 September 2012 as a correct record.
Employee Survey 2012 Headline Results and Next Steps

Details were provided on the key findings of the fifth Employee Survey of the Council which prioritised the key areas for attention and identified the next steps. Decision 1) 2) To note the report by the Director of Corporate Governance. To ensure support was given at all levels within each service area to involve employees in improvement planning and ensure commitment to actively taking part in an annual employee engagement programme.
(Reference report no PS/24/12-13/CG by the Director of Corporate Governance, submitted.)
Revenue Budget ICT Savings

Details were provided on the progress against two of the ICT savings targets set out in the 2012/13 Revenue Budget, which had been approved by the Council in February 2012.
2 Policy and Strategy Committee 2 October 2012
Approval was sought to transfer savings relating to mobile telephony and rationalisation of broadband lines from directorates. Decision 1) To note the savings set out in the report by the Director of Corporate Governance. To agree that these savings be transferred from directorate budgets in line with current usage, to meet the agreed ICT savings target.
2)
(References - Act of Council No 2 of 9 February 2012; report no PS/25/1213/CG by the Director of Corporate Governance, submitted.)
Welfare Reform
An update was provided on the Welfare Reform Act 2012 together with a summary of progress so far of the Councils response to the UK Government proposed changes. Decision 1) To note the Welfare Reform Act changes and the likely impacts on claimants and the Council. To note the scale and scope of the ongoing work and the need for further details from the UK Government. To agree to establish a corporate programme to deliver the changes and to mitigate impacts to be funded from existing resources within Directorates. To request that a further report be brought to the Policy and Strategy Committee on options for joint and partnership working across Money Advice Services in the city to maximise the effectiveness of these services in meeting the challenges of Welfare Reform. To note that further reports would be made to the Policy and Strategy Committee.
2)
3)
4)
5)
6)
To request within one month of this meeting, a draft mitigation plan setting out how the Council will deal with specific impacts of welfare reform, such as: a) b) Details on priorities for use of Discretionary Housing Allowance Revised approaches to HMOs and shared accommodation generally in light of changes to Shared Room Rate Priorities for the Community Support Fund and how it will dovetail with other Council services for vulnerable people Implications for housing allocations and new development in light of penalties for under-occupation Advice and advocacy for people at greatest risk of loss of benefit Options for protecting the flow of rental income for social landlords Details of the Council Tax Reduction Scheme
c)
d)
e) f) g) 7)
To agree to receive regular updates on the implementation of the mitigation plan and other welfare reform related issues. To agree that the new Corporate Policy and Strategy Committee should retain oversight of this issue.
8)
(Reference report PS/26/12-13/CG by the Director of Corporate Governance, submitted.)
Revised Recruitment and Selection Policy

Details were provided on the changes which had been made to the Recruitment and Selection Policy and approval sought for the revised policy as a local collective agreement with the trades unions. Decision To approve the revised Recruitment and Selection Policy as a local collective agreement with the trades unions for immediate implementation across the Council. (Reference report no PS/27/12-13/CG by the Director of Corporate Governance, submitted.)
Urban Broadband Fund Bid Update

The Council had approved the use of 1.9m to support the Councils proposed programme in response to Edinburghs Connected Capital Programme bid to the Urban Broadband Fund as part of the UK Governments Super-Connected Cities Initiative. An update was provided on Edinburghs bid to the Urban Broadband Fund. The Department for Culture, Media and Support (DCMS) had confirmed that the City of Edinburgh Council had been awarded 10.7m of capital funding towards the citys Connected Capital Programme. Authority was sought to progress with the Programme subject to the terms set out in the report. Decision 1) To authorise the Chief Executive to enter into an agreement with the Department for Culture, Media and Sport to draw down the funds awarded to the city of Edinburgh. To note the strategic outcomes for Edinburghs residents, businesses and visitors which the Programme would enable as detailed in the report by the Director of Corporate Governance. To agree that a briefing note be provided to members on the approach taken by the Council to monitoring the potential health issues associated with wireless and Wi-Fi telephony.
2)
3)
(References Act of Council No 6 of 26 April 2012; report no PS/28/12-13/CG by the Director of Corporate Governance, submitted.)
Abu Dhabi Science Festival 2012

Details were provided on the action taken in terms of Standing Order 63 on the Council representation at the Abu Dhabi Science Festival from 9-13 October 2012. Decision To note the action taken in terms of Standing Order 63 in authorising the attendance by the Lord Provost, supported by the City Officer, at the Abu Dhabi Science Festival in October 2012. (Reference report no PS/29/12-13/CG by the Director of Corporate Governance, submitted.)
Transient Visitor Levy

An update was provided on the Capital Coalitions recent thinking in relation to a Transient Visitor Levy (TVL). Motion 1) 2) To note the report by the Head of Economic Development. To agree to further consultation with relevant sectors and stakeholders with a view to developing a preferred model by early 2013. To agree as a principle that no business in a current BID scheme would be asked to contribute to any other BID project. To agree to a further report on progress within two cycles.
3)
4)
- moved by Councillor Burns, seconded by Councillor Cardownie Amendment 1) 2) To note the report by the Head of Economic Development. To agree to further consultation with relevant sectors and stakeholders with a view to developing a preferred model by early 2013. To agree as a principle that no business in a current BID scheme would be asked to contribute to any other BID project. To agree to a further report on progress within two cycles. To agree to request a cross-party delegation to meet with Scottish Ministers to discuss the principle of Transient Visitor Levy and the potential for enabling legislation.
3)
4) 5)
- moved by Councillor Burgess, seconded by Councillor Chapman Voting The voting was as follows: For the motion For the amendment 11 votes 2 votes
6 Policy and Strategy Committee 2 October 2012 Decision To approve the motion by Councillor Burns. (Reference report no PS/30/12-13/CD by the Head of Economic Development, submitted.)
Edinburgh Waterfront Tax Incremental Finance (TIF) Pilot Project Progress Update
An update was provided on the planning context and implications for the Tax Incremental Finance (TIF) project for Edinburgh Waterfront. Decision 1) To note the recent developments in relation to the future development of the Port of Leith and potential changes to the portfolio of infrastructure projects currently included within the TIF Business Case. To note the importance of improved access to support new development including renewable energy investors and any related supply chain. To note the proposed financial arrangements to allow the appointment of the Project Manager to design the initial road infrastructure project. To agree that local Ward members be fully briefed on associated design features.
2)
3)
4)
(Reference report no PS/32/12-13/H&SC by the Director of Health and Social Care, submitted.)
10 Integration of Health and Social Care Proposals for Interim Governance Arrangements
Details were provided on a joint governance arrangement for the creation of a shadow Health and Social Care Partnership (HSCP) which was in response to the Scottish Governments proposals for the integration of health and social care services. Decision 1) To approve the proposed interim governance arrangements for the shadow HSCP.
2)
To note that regular update reports would be presented to the Corporate Policy and Strategy Committee as proposals developed. To note that the final arrangement for HSCP governance would require joint approval by the Edinburgh Community Health Partnership, NHS Lothian and City of Edinburgh Council.
3)
(Reference report no PS/32/12-13/H&SC by the Director of Health and Social Care, submitted.) Declarations of Interest Councillor Ricky Henderson declared a financial interest (with dispensation) in the above as a non-executive member on the Board of NHS Lothian.
11 Quality Assurance Motion by Councillor Ricky Henderson

The Convener ruled that the following item, notice of which had been given at the start of the meeting, be considered as a matter of urgency in order that it be considered timeously. The following motion by Councillor Ricky Henderson was submitted in terms of Standing Order 27: That Policy and Strategy Committee: (a) notes with deep regret the admission of Mr Gibson and Miss Gibson to hospital, and Mr Gibsons subsequent death. notes that an investigation is being undertaken into this case with findings to be reported at the earliest opportunity. calls for the Chief Social Work Officer to present a report to the next meeting of the Health, Wellbeing and Housing Committee (13 November 2012) on care at home / home care service standards and quality assurance mechanisms. This report to include information on monitoring requirements, risk assessment, review procedures and complaints processes.
(b
(c)
Decision To agree the terms of the motion on the basis that the report called for be submitted to the Corporate Policy and Strategy Committee and include information on all purchased adult social care services.
Item no
5.7
Committee Minutes
Pensions and Trusts Committee

Present:- Councillors Child (Convener), Bill Cook, Orr and Rose. Also Present: Members of the Consultative Panel Eric Adair, Archie Arnott, Allison Cosgrove, Eric MacLennan, Darren May and Norman Strachan. Audit Scotland Brendan Clark.
Minute
Decision To approve the minute of the Pensions and Trusts Committee of 27 June 2012 as a correct record.
Audited Pension Funds Annual Report 2011/12

The external auditors report on the audit of the Lothian Pension Funds Annual Report 2011/12 was presented in compliance with the requirements of the International Standard on Auditing (ISA) 260. The ISA 260 report had also been considered by the Councils Audit Committee. Brendan Clark (Audit Scotland) highlighted the principal areas covered in the report and responded to questions from members. Decision 1) To note the contents of the ISA 260 report.
2 Pensions and Trusts Committee 3 October 2012
2)
To note the Audited Pension Funds Annual Report for the year ended 31 March 2012.
(References Audit Committee 27 September 2012 (item 2(a)); report by the Director of Corporate Governance, submitted.)
Review of Pension Fund Governance

An update was given on the Lothian Pension Funds governance arrangements and constitutional changes to the Consultative Panel were proposed, following approval of the Councils new governance arrangements. External legal advice on the issue of liability in respect of elected members and external members of the Pensions Committee was detailed and a Code of Conduct for members of the Committee and the Consultative Panel was proposed. Decision 1) To note the changes to pension fund governance agreed by the Council in September 2012. To note the external legal advice regarding the position from a liability perspective with regard to members of the Pensions Committee, including the external members. To approve the updated constitution and the guidance on the operation of the Consultative Panel as detailed in appendix 2 to the report by the Director of Corporate Governance. To agree that a Governance Policy Statement was no longer required. To ask the Director of Corporate Governance to report further on the Code of Conduct for members of the Pensions Committee and the Lothian Pension Funds Consultative Panel. To note that the new arrangements would be put in place over the coming months and an update provided to the next Pensions Committee in December.
2)
3)
4) 5)
6)
(References Pensions and Trusts Committee 27 June 2012 (item 7); Act of Council No 8 of 20 September 2012; report by the Director of Corporate Governance, submitted.)
Investment Strategy Review Lothian Pension Fund

The conclusions of the review of investment strategy of the Lothian Pension Fund were detailed and approval was sought for amendments to the Funds investment strategy. Decision 1) To note the review of investment strategy, the inherent volatility in investment markets and the challenges faced by the Fund over the next 35 years due to weaknesses in global economies. To approve the revised investment strategy and asset allocation ranges for the Lothian Pension Fund as detailed in paragraph 3.3.2 of the report by the Director of Corporate Governance. To delegate investment activity outwith the agreed strategy and asset allocation ranges in the event of extreme investment market fluctuations to the Director of Corporate Governance, in consultation with the Convener of the Pensions Committee, with the activity reported to the Pensions Committee. To delegate the implementation of the revised investment strategy and the themes identified to the Director of Corporate Governance in consultation with the Investment Strategy Panel. To instruct the Director of Corporate Governance to review the budgetary and staffing implications of the revised investment strategy and report the conclusions of the review to the Committee. To agree that there should not be a specific outperformance target and note that the future focus on risk, income and capital protection was likely to mean that the Fund would perform better if markets fell significantly but would perform less well if equity markets rose significantly. To agree to consider requests for low-risk investment strategies for different employers, subject to practicalities of implementation.
2)
3)
4)
5)
6)
7)
(References Pensions and Trusts Committee 27 June 2012 (item 8); report by the Director of Corporate Governance, submitted.)
Investment Strategy Review Lothian Buses Pension Fund

The conclusions of the review of investment strategy of the Lothian Buses Pension Fund were detailed and approval was sought for amendments to the Funds investment strategy. Decision 1) To note the review of investment strategy, the inherent volatility in investment markets and the challenges faced by the Fund over the next 35 years due to weaknesses in global economies. To approve the revised investment strategy and asset allocation ranges for the Lothian Buses Pension Fund as detailed in paragraph 3.3.2 of the report by the Director of Corporate Governance. To delegate investment activity outwith the agreed strategy and asset allocation ranges in the event of extreme investment market fluctuations to the Director of Corporate Governance, in consultation with the Convener of the Pensions Committee, with the activity reported to the Pensions Committee. To delegate the implementation of the revised investment strategy to the Director of Corporate Governance in consultation with the Investment Strategy Panel. To agree that there should not be a specific outperformance target and note that the future focus on risk, income and capital protection was likely to mean that the Fund would perform better if markets fell significantly but would perform less well if equity markets rose significantly.
2)
3)
4)
5)
References Pensions and Trusts Committee 27 June 2012 report by the Director of Corporate Governance, submitted.)
Investment Strategy Review Scottish Homes Pension Fund

The conclusions of the review of investment strategy of the Scottish Homes Pension Fund were detailed and approval was sought for amendments to the Funds investment strategy.
5 Pensions and Trusts Committee 3 October 2012 Decision 1) To note the review of investment strategy, the inherent volatility in investment markets and the challenges faced by the Fund over the next 35 years due to weaknesses in global economies. To approve the revised investment strategy and asset allocation ranges for the Scottish Homes Pension Fund as detailed in paragraph 3.3.2 of the report by the Director of Corporate Governance. To delegate investment activity outwith the agreed strategy and asset allocation ranges in the event of the actual funding level exceeding the target funding level or in the event of extreme investment market fluctuations to the Director of Corporate Governance, with the activity reported to the Pensions Committee. To delegate the implementation of the revised investment strategy to the Director of Corporate Governance in consultation with the Investment Strategy Panel. To agree that there should not be a specific outperformance target and note that the future focus on risk, income and capital protection was likely to mean that the Fund would perform better if markets fell significantly but would perform less well if equity markets rose significantly. To note the further investigations into potential use of any surplus which might arise in the Fund and the use of other vehicles to reduce risk.
2)
3)
4)
5)
6)
(References Pensions and Trusts Committee 27 June 2012 (item 10); report by the Director of Corporate Governance, submitted.)
Statement of Investment Principles

A revised Statement of Investment Principles for the Pension Funds was proposed for adoption to replace the statement agreed by the Committee in June 2011. Decision To adopt the revised Statement of Investment Principles. (References Pensions and Trusts Committee 28 June 2011 (item 7); report by the Director of Corporate Governance, submitted.)
Update on Employers Participation in Lothian Pension Fund

Updates were provided on: employers who had recently joined the fund and employers currently looking to join; college mergers; and current matters relating to the Forth Estuary Transport Authority, Police and Fire Services reform and the Lothian Centre for Inclusive Living.
Decision To note the report. (References Pensions and Trusts Committee 28 March 2012 (item 10); report by the Director of Corporate Governance, submitted.)
Service Plan 2012-2015 Monitoring Update

An update was provided on the 2012-2015 Service Plan objectives for Lothian Pension Fund (including Lothian Buses and Scottish Homes Pension Funds) and the projected outturn for 2012/13 compared to the approved budget. Decision To note the report. (Reference report by the Director of Corporate Governance, submitted.)
10 Charitable Trusts Update on Consolidation

An update was provided on the plan to consolidate and simplify the administration of existing trusts. The consolidation aimed to make the management and administration of the trusts more effective in order to maximise the benefit of the funds. The main elements of the plan to reorganise the Councils trust funds were nearing completion. Details were given on the conditional award of funding from the Boyd Anderson Trust to Save Our Suntrap and a recommendation was made on the safekeeping of the Boyd Anderson artefacts. Following the Councils approval of its new governance arrangements, governance of the charitable trusts would be transferred from the Pensions and Trust Committee to the Finance and Budget Committee.
7 Pensions and Trusts Committee 3 October 2012 Decision 1) To keep the situation regarding the award of 57k from the Boyd Anderson Trust to Save Our Suntrap under review and report back to the Finance and Committee in due course. To agree that the Boyd Anderson artefacts should be subject to the Councils Museums and Galleries Acquisition and Disposal Policy. To note the proposed new arrangements for the governance of the remaining trust funds. To thank the Fund Accounting Manager for his work on the consolidation of the charitable trusts.
2)
3)
4)
(References Pensions and Trusts Committee 28 March 2012 (item 3); report by the Director of Corporate Governance, submitted.)
Item no
5.8
Committee Minutes
Education, Children and Families Committee

Present:- Councillors Godzik (Convener), Key (Vice-Convener), Brock, Child, N Cook, Corbett, Day, Dixon, Fullerton, Jackson, Lewis, Lunn (substituting for Councillor Keil), Main, Munro (substituting for Councillor Austin Hart), Redpath, Rose and Shields. Present for Education Items:- Ms M Allan, Mr A Crosbie, Mr A C Duncan and Mr R Simpson. Also in Attendance:- Councillors Bridgman and Walker.
Minute
Decision The minute of meeting of the Education, Children and Families Committee of 21 June 2012 was approved as a correct record.
Arboretum Road, Pavilion and Playing Field Response to Motion by Councillor Hinds
In response to a motion by Councillor Hinds, approval was sought to explore the scope to grant a long lease of the Council-owned playing field at Arboretum Road to the Merchant Company Education Board, linked to a Partnership Agreement with Stewarts Melville College. A Partnership arrangement with Stewarts Melville College would provide an opportunity to secure substantial investment in sports facilities that would benefit Children and Families, the College and the wider sports community. Linking the proposed lease to the Partnership Agreement would safeguard the Councils interests and provide continuity for the sports clubs currently based at Arboretum Road.
2 Education, Children and Families Committee 9 October 2012 Decision 1) To approve, in principle, that a Partnership Agreement with Stewarts Melville College be explored to deliver improved sports facilities at Arboretum Road for the Council and the College. That the lease contain provisions for review and, if necessary, termination should the Partnership Agreement be terminated or significantly altered. That local elected members be fully consulted and updated on continuing discussions with Stewarts Melville College. To note that provisional terms and conditions for the proposed lease would be reported to the Finance and Budget Committee for approval.
2)
3)
4)
(References minute of Education, Children and Families Committee of 21 June 2012 (item 3); report by the Director of Children and Families, submitted.)
Parental Engagement
Details were given of a proposed new Parental Engagement Strategy for more effective consultation between the Consultative Committee with Parents (CCWP), Parent Councils, Council officers and elected members Motion 1) 2) To note the content of the report. To agree the proposal for a new structure for more effective consultation between the Consultative Committee with Parents, Parent Councils, Council officers and elected members for a period of one year, with a review to assess its effectiveness and impact on parent engagement and the extent to which the neighbourhoods proposed were meaningful for the purposes of parental engagement. To request a further report on the Strategy and Strategy Action and Implementation Plan in January 2013 detailing: a) clear outcomes for the strategy to allow its effectiveness to be objectively assessed; specific commitments on how central support to Parent Councils would be developed and delivered; and
3)
b)
3 Education, Children and Families Committee 9 October 2012
c)
development of specific tools by which schools could improve continuous feedback to parents
4) -
To thank officers and parents for their input to the strategy document. moved by Councillor Godzik, seconded by Councilllor Key
Amendment To approve the recommendations detailed in the report by the Director of Children and Families, subject to keeping representatives of the existing cluster groups on the Consultative Committee with Parents rather than representatives of the proposed neighbourhood groups. moved by Councillor Jackson, seconded by Councillor Rose
Voting For the motion For the amendment Decision To approve the motion by Councillor Godzik. (Reference report by the Director of Children and Families, submitted.) 16 votes 3 votes
Positive Destinations
Details were given of progress towards improving school leaver destinations, based on the annual census carried out by Skills Development Scotland. Positive destinations for 2010/2011 showed a 3.4% improvement on the previous year and the gap between Edinburgh and the national average had been steadily narrowing and now stood at -0.7%. Decision 1) 2) To note the report and the progress made. To request a further report on progress in improving positive destinations from the Director of Children and Families at the next school leaver destination census in January 2013.
(Reference report by the Director of Children and Families, submitted.)
Declaration of Interest Councillor Redpath declared a non-financial interest in the foregoing item as a freelance adult education tutor.
Primary School Estate Rising Rolls: Implications for 2013/14 Session

Details were given of the context of rising school rolls in the primary sector, identifying the anticipated need for accommodation solutions for Balgreen, Granton, Trinity, Victoria and Wardie Primary Schools for the 2013/14 academic session. Decision 1) 2) To note the content of the report. To approve that new accommodation be provided at the following primary schools subject to a final decision being taken in January 2013, delegated to the Director of Children and Families, regarding the necessity for such provision following assessment of pupil registration figures: 3) Balgreen Granton Trinity Victoria Wardie
To approve that further long-term policy development regarding the estate be considered by the Sub-Committee of the Education, Children and Families Committee proposed under the new Committee structure. Further, to note that the Sub-Committee would look at future long-term requirements of schools, as outlined within the Capital Coalition partnership agreement, including reviewing the issues identified at paragraph 3.43 of the report by the Director of Children and Families. To note that the principles outlined in the Directors report would apply to future schools identified as requiring accommodation solutions in future years.
4)
Castlebrae Community High School: Consultation on Option for Closure

6.1 Deputations a) Craigmillar Community Council The Committee agreed to hear a deputation from Terry Tweed, Secretary of the Craigmillar Community Council and Peter McColl, member of Portobello/Craigmillar Neighbourhood Partnership. The deputation made the following points: Castlebrae Community High School had been allowed to deteriorate in the past few years and concern had been expressed locally that this school that served the wider community had been deliberately run down to the point where the only option was closure. The effect on the local community if the decision was made to close the School would be widespread and would be detrimental firstly to the students and to the wider community who used the School for a variety of purposes. Rather than closure, the school should receive further investment to keep it open until a new school could be built to serve the wider Craigmillar area.
The deputation then answered questions from Committee members. The Convener thanked the deputation for their presentation and invited them to remain for the Committees consideration of the report by the Director of Children and Families at item 6.3 below. b) Save the Brae The Committee agreed to hear a deputation from Honor Flynn, Nikki Barnes and Marylee Watters, all representing the Save the Brae campaign. The deputation made the following points: No mention had been made in the report of the proposals for addressing the requirements of children with special and learning needs. A pledge made by politicians that no further schools in the city would be closed had been broken.
The Family Centre based at the School was an important resource in allowing children aged 0-5 years to be cared for while parents attended medical and other appointments. The School provided an opportunity for all ethnic, religious and gender groups to meet in a safe environment and provided support for vulnerable families. There was concern that pupils felt intimidated about a move to other secondary schools in the area, on the basis of evidence of alleged bullying at Portobello High School. Students from schools across the city attended the School for vocational education, including hair and beauty, childcare, drama and construction and this valuable resource would be lost if the school were to close. The report did not acknowledge the contribution the School made to the community and contained a number of errors.
The deputation then answered questions from Committee members. The Convener thanked the deputation for their presentation and invited them to remain for the Committees consideration of the report by the Director of Children and Families at item 6.2 below. 6.2 Report by the Director of Children and Families Details were given of the proposal to carry out consultation on an option for closure of Castlebrae Community High School. Approval was sought to consult on the proposed closure of Castlebrae from the end of the 2012/13 school year, together with required changes to secondary school catchment areas. Councillor Walker was heard as a local ward member.
7 Education, Children and Families Committee 9 October 2012 Motion a) To approve that statutory consultation is carried out on the proposed closure of Castlebrae Community High School as detailed in the report by the Director of Children and Families with the exception that, rather than a dual-catchment arrangement being applied for pupils from the Castleview, Niddrie Mill and Newcraighall Primary School catchment areas together with the area of land shown in Appendices 4 and 5 for which there is currently no designated non-denominational secondary school catchment, that Portobello High School be allocated as the sole non-denominational secondary catchment school for these areas; To further approve that in the event that there should be insufficient capacity within Portobello High School, placing requests from pupils from the proposed new Portobello High School catchment area, including pupils from the Castleview, Niddrie Mill and Newcraighall Primary School catchment areas, would have priority access to any secondary school in the city; b) To approve that the statutory consultation includes any related secondary school catchment changes arising from the proposals; To delegate authority to the Director of Children and Families to develop a detailed consultation paper on the basis of the proposals outlined in the report; To approve that the statutory consultation be undertaken to commence on 25 October 2012, once schools resume from the mid-term break; To note that it is the intention to return to a future meeting of Full Council for a decision on the proposal; To note that the proposal would require Scottish Ministerial approval prior to implementation, should the Council decide to proceed; To note that, in the longer term, it remained the expectation and intention to build a new high school to serve the Craigmillar area; To note that the use to which any revenue cost savings that would arise as a result of any proposed closure would be considered as part of the Council budget setting process; To note that the wider Craigmillar community including local Community Councils and Neighbourhood Partnerships would be included in the consultation exercise;
c)
d)
e)
f)
g)
h)
i)
j)
That consideration be given to using any revenue cost savings that would arise as a result of the proposed closure for investment in Craigmillar and the pupils of Castlebrae Community High School; and To make explicit that that the Capital Coalition would not close any further primary or secondary school, for the remainder of the 2012-17 term. moved by Councillor Godzik, seconded by Councillor Key
k)
Amendment 1 (by Councillor Rose, originally remitted from Council of 20 September 2012) Committee:1. notes that the administration had indicated an intention to close Castlebrae Community High School; notes that the 2010-12 inspection process and reports gave cause for considerable concern; notes that concerns about educational achievement and attainment at Castlebrae have existed for many years; notes that the administration wishes to explore Co-operative and other ways of delivering education; notes the existence of examples of successful education delivery elsewhere including; a. Co-operative sponsored school including around 200 in England and Wales and the Elmgreen Co-operative School in Lambeth. Co-operative schools in Sweden. Ark Schools and Harris Federation schools, both of which have a promising track record in turning round poorly performing schools. Teach First, a charity which recruits exceptional graduates into teaching and specialises in contributing to schools in challenging circumstances which experience high levels of poverty or underachievement. Future Leaders, a charity which focuses on developing the next generation of leaders for challenging schools.
2.
3.
4.
5.
b. c.
d.
e.
6.
Resolves to set up a working party to investigate and report on these examples and other innovative types of education delivery which could have a role at Castlebrae Community High School, or in other parts of Edinburghs education system where there is limited attainment. Resolves that the working party report back to the Education, Children and Families Committee by the end of March 2013. moved by Councillor Rose, seconded by Councillor Nick Cook
Amendment 2 To note the report by the Director of Children and Families but delay further action until: a course of action and timeline for rebuilding Portobello High School is clear; there is greater clarity about funding for and timing of a new school in Craigmillar; and there is firm evidence from previous and other school closures that the individual young people will have better outcomes than if they had remained at the original school. moved by Councillor Main, seconded by Councillor Corbett
Voting For the motion For amendment 1 For amendment 2 Decision To approve the motion by Councillor Godzik. (References Act of Council No.15, 20 September 2012; report by the Director of Children and Families, submitted.) 13 votes 3 votes 3 votes
Chair
Councillor Key replaced Councillor Godzik in the Chair for the following item of business.
Vision for Schools in Edinburgh

Information was provided on the draft Children and Families vision for schools in Edinburgh and the Committees engagement in developing its content was requested.
10 Education, Children and Families Committee 9 October 2012 Decision 1) To note the report which was based on Head Teachers contribution to the vision for schools. To ask officers to develop appropriate consultation materials and consult widely on a vision for schools in Edinburgh. To note that Committee members would contribute to the development of the Councils vision for schools as part of the consultation process. That the consultation exercise be genuinely open-ended and to seek equal contribution from parents, young people, teachers and other staff, community partners, elected members and those with an interest in the future of the Councils schools. To refer the report to the Committees new Policy Development and Review Sub-Committee for further consideration.
2)
3)
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5)
Chair
Councillor Godzik resumed the chair for the remaining items of business.
10 Children and Families Department Revenue Budget Monitoring 2012/13 Month Four Position 31st July 2012
Details were presented of the month four revenue monitoring position for the Children and Families Department. Decision To note the report and the projected balanced budget position for the Children and Families Department at month four. (Reference joint report by the Directors of Corporate Governance and Children and Families, submitted.)
11 Community Access to Schools

Approval was sought for the initial work identified within the scope of the Review of Community Access to Schools.
11 Education, Children and Families Committee 9 October 2012 Decision 1) To note that the outcome of the review should be a system which maximises the appropriate use of schools outside of core school hours and in a way which embeds schools fully as community assets; and to do so in a way which is cost-effective and efficient. That a short-life project team be formed to take forward the review of Community Access to Schools without prejudice as to the system recommended. That the project team undertake the work agreed within the scope. That all stakeholders be engaged and consulted with at key stages of development. That the work of the short-life project team be completed in the New Year and reported to Committee in two cycles i.e. 5 March 2013. That an update be provided on the progress of the short life project team to Committee at its meeting on 11 December 2012. That all reports on Community Access to Schools be referred to the Culture and Leisure (Culture and Sport under the new Governance Review arrangements) Committee for noting. That Community Access to Schools be added to the agenda of the first Education, Children and Families Policy Review and Development SubCommittee meeting.
2)
3) 4)
5)
6)
7)
8)
(References minute of Education, Children and Families Committee 21 June 2011 (item 5); report by the Director of Children and Families, submitted.)
12 Co-operative Education and Childcare

Details were given of the progress to date of the Co-operative Education Working Group, which had been established to examine ways of taking forward childcare co-operatives and co-operative education in the city. Decision 1) 2) To note the work to date and request a further report in January 2013. To request the arrangement of a half-day event with senior officials and elected members to look at opportunities and options for co-operative approaches within schools.
3)
That a briefing note be issued to all members of the Committee on cooperative education and learning.
13 Special Schools: Proposals for the Future Development of Panmure St Anns

Approval was sought for a statutory consultation to be held on establishing Panmure St Anns as a school and for the provision of additional stages of learning. It was proposed to commence the consultation on 26 November 2012. Decision 1) To approve that statutory consultation be carried out proposing the confirmation of Panmure St Anns as a school and increased provision of additional stages in Panmure St Anns. To note that through the consultation process the status of Panmure St Anns would be established as a school. To delegate authority to the Director of Children and Families to develop detailed consultation on the option of confirming Panmure St Anns as a school and the provision of additional stages of learning. To note the intention to return to the May 2013 meeting of the Council for a decision on the proposals. To approve the steps in the consultation process as set out in Appendix 1 to the Directors report. That a briefing be provided to all members of the Committee on the work of Panmure St Anns.
2)
3)
4)
5)
6)
14 Naming of New Gaelic Medium Primary School

Details were given of the process used for choosing the name of the new Gaelic medium primary school sited in the former Bonnington Primary School building in Bonnington Road.
13 Education, Children and Families Committee 9 October 2012 Decision 1) To approve the name of the new school chosen by the pupils as Bun-sgoil Taobh na Pirce - Parkside Primary School. That paragraph 3.4 of the Directors report be amended to read The name chosen by the pupils is Bun-sgoil Taobh na Pirce which is Parkside Primary School translated into English.
2)
15 Appointment to Sub-Committee on Standards for Children and Families (South West)

Decision To appoint Councillor Key to the Sub-Committee on Standards for Children and Families (South West) in place of Councillor Dixon. (Reference report by the Director of Corporate Governance, submitted.)
16 Response to Scottish Government on the Children and Young People Bill Consultation
Details were given of the response to the consultation on the Children and Young People Bill, scheduled for introduction to Parliament in 2013. The views of elected members were sought and incorporated in the response before the submission deadline of 25 September. Decision To note the response on the consultation on the Children and Young People Bill. (Reference report by the Director of Children and Families, submitted.)
17 Social Work Services for Children with Disabilities

Details were given of progress made in the service area for children with disabilities.
14 Education, Children and Families Committee 9 October 2012 Decision To note the report. (Reference report by the Director of Children and Families, submitted.)
18 Family and Community Support Division Update

Details were given of the Family and Community Support Division, including its component services. Decision 1) 2) To note the report. To congratulate the staff and managers in the Family and Community Support Division on the achievement of the Customer Service Excellence Award.
19 Performance Report: Special Schools

Details of the performance of the City of Edinburghs special schools was provided, including information on the developments in evaluating performance in special schools and the provision of a baseline evaluation of performance within and across special schools, for future reporting to Council Decision To note the progress being made in improving performance in special schools and the intention to report on further progress in one year. (Reference report by the Director of Children and Families, submitted.)
20 Annual Review of Service Strategy for Children and Young People Looked After and Accommodated by the City of Edinburgh Council
Details were given of the review of service provision for children looked-after and accommodated by the City of Edinburgh Council and the introduction of a range of associated service area improvement plans. Decision To note the amended service strategy and improvement plan for looked after and accommodated young people. (Reference report by the Director of Children and Families, submitted.)
21 Children and Families Standards and Quality Report 2012

Details were given of the Children and Families Standards and Quality Report 2012 and a summary provided of progress towards the outcomes detailed in the Children and Families Service Plan 2011-2014. Decision 1) To note the improved and maintained performance during the reporting period. To note the areas identified for further improvement.
2)
22 Edinburgh Childrens Partnerships Integrated Plan for Children and Young People 2012-15
Decision To note the Edinburgh Childrens Partnerships Integrated Plan for Children and Young People 2012-15. (Reference report by the Director of Children and Families, submitted.)
23 Getting It Right for Every Child

An update was provided on the implementation of the Getting it Right for Every Child national programme within the City of Edinburgh. Decision To note the implementation to date and to request a further progress report in 12 months. (Reference report by the Director of Children and Families, submitted.)
24 Self-Evaluation Progress Report

Progress and developments in self-evaluation and team planning in the education and centrally-based services of Children and Families was detailed. Decision To note the report and to request an update in one year. (Reference report by the Director of Children and Families, submitted.)
25 Inspection of Childrens Services

Details were given of a forthcoming pilot inspection of services for children in Edinburgh which would examine how well public services worked together to improve outcomes for children, especially those in need. Decision To note the content of the report and that a report on the inspection findings would be provided in due course. (Reference report by the Director of Children and Families, submitted.)
26 Relocation of Pilrig Child and Family Centre to Craigentinny Primary School

Decision 1) To note the action taken by the Director of Children and Families, in consultation with the Convener, in terms of Standing Order 63, to start the consultation process for the relocation of Pilrig Child and Family Centre to Craigentinny Primary School to ensure sufficient time for implementation of the move by August 2013. To note the exceptional work of the staff and parents in turning around the fortunes of Craigentinny Primary School and to note that relocating the Child and Family Centre was a massive vote of confidence in the school.
2)
27 Raymond Simpson Valedictory

The Convener advised that Raymond Simpson was standing down from his role as teacher representative on the Committee with effect from 19 October 2012. The Convener, on behalf of the Committee, thanked Raymond for his many years service to this and associated Committees and wished him well for the future.
Item no
Report no
7.1
CEC/55/12-13/L
October 2012
Opening up democracy
Taking part in or creating a petition is a new way that individuals, community groups and organisations can get involved in what the Council does. It allows people to raise issues of public concern and gives councillors the opportunity to consider the need for change. The new Petitions Committee, chaired by Councillor Maggie Chapman one of our opposition colleagues in the Green Party, is set to consider petitions for the first time on Monday 3 December. If there is something you are keen to have considered you can get information from the Council's web pages, libraries and other Council buildings. The committee is part of a package of measures and a new committee structure aimed at creating a more accessible and transparent organisation by opening up decision-making and improving scrutiny of the Council's work. The meeting will also be webcast live as part of a year long pilot programme aimed at opening up democracy in the city.
______________________________________ Best large European City of the Future

Edinburgh was recently awarded Best Large European City of the Future by fDi magazine in recognition of Edinburgh being a great place for businesses. The magazine has followed this up with a short film that looks at why Edinburgh is a proving so popular for inward investment. You can view the film on fDis website.
______________________________________ Festivals contribution to Edinburgh

This summer while London hosted elite athletes and the next generation of sporting talent from around the world, Edinburgh celebrated the worldwide cultural phenomena that are Edinburghs Festivals. With audiences holding steady, and in some instances increasing, the impact of Edinburghs Festivals has been shown to generate 261 million for Scotlands economy and 5242 full-time jobs in Edinburgh. What the results of summer 2012 really tell us is that Edinburghs Festivals have this year seized the opportunities arising from the UK hosting of the Olympic and Paralympic Games. The breadth and depth of Edinburghs festival programmes with their vast array of premieres and commissions, provide the distinctive cultural offering that are the envy of cities around the world and each year attract artists, audiences and media from every continent and over 70 countries. We should be rightly proud.
______________________________________ Investing in our future

The Council invests around 11 million annually in tourism promotion and infrastructure and enjoys a strong position in the international tourism market. However, if we are to grow our success and improve on our position we need to find a way to continue to invest during a time of budget constraint. We had been considering the potential for a transient visitor levy (TVL) or tourist tax. You may have experienced this charge or heard about it when travelling to other European or American cities. However, having spoken to many in the industry, the clear view is that businesses would rather support a voluntary investment model and not be compelled to make a specific charge to customers. We agreed at the Policy and Strategy Committee on 2 October to look at options based on the principle of a voluntary funding mechanism and will be consulting further before deciding on the best arrangements to make.
______________________________________ Trams
The project is making good, steady progress and every effort is being made to complete work early in the revised schedule where possible. Passenger services from the airport to York Place are scheduled to run by summer 2014. Now 22 trams have been delivered to the tram depot, with the remainder to be delivered by the end of November 2012. The main utility diversions are on target to be cleared by November 2012, substantially reducing the risk of the project schedule slipping. The construction of the civil engineering and system elements of the project are also progressing well, with a significant amount of track construction underway. A number of areas are presently ahead of schedule. A more detailed report is being considered at Council on 25 October. This will go live on the Councils committee papers online system in the week beginning 22 October 2012.
______________________________________ Bin collection changes

On 10 September we introduced changes to bin collections which affected nearly 160,000 properties. The scale and complexity of these changes were bigger than any our waste services have seen in decades. Even so, there is no denying that the recent level of disruption to the bin collection service experienced by some residents has been unacceptable. Although progress has been made I recognise that for some, the service is unfortunately still not what it should be. I would like to reassure these residents that getting this right is our highest priority and we will continue to listen and resolve these matters as quickly as possible. However, by introducing this managed weekly recycling and waste collections, we will make significant improvements in recycling rates and this will reduce what the Council spends on landfill tax by up to 2.4 million per year. I will be pushing for the service to learn from its mistakes and to continue to make it easier for all residents to recycle more to help protect our environment for future generation. Further progress reports including improvements to customer complaint handling will be looked at the Transport and Environment Committee. This will go live on the Councils committee papers online system on Monday 19 November 2012.
______________________________________ Portobello High School

We desperately need a new school and in the shortest possible timeframe. Following recent legal challenges to building on our preferred site on Portobello Park, a huge amount of work has gone into looking at all the options available to us. These options are recorded in some detail in the report to Council on 25 October which highlights that we are pursuing several of them simultaneously. We are examining the potential to challenge the recent legal decision not to build on the preferred site while at the same time looking at potential alternative sites. We need to make a decision quickly and a further report will be considered at the next Council meeting on 22 November.
___________________________________________ Be in the picture

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Item no
Report no
8.1
CEC/52/12-13/CF
The New Portobello High School and New St Johns RC Primary School
25 October 2012
1 1.1
Purpose of Report The purpose of this report is to provide an update on the project to build the New Portobello High School and, more specifically, to: advise on the outcome of the recent appeal to the Inner House of the Court of Session; consider the legal options that might secure part of Portobello Park as the site for the new school; consider what alternative site options are available in the event that building the new school on part of Portobello Park does not, ultimately, prove to be possible; consider the delivery of a new St Johns RC Primary School; and seek approval for the proposed next steps.
2 2.1
Summary In December 2006 Council approved Portobello Park as the location for the new Portobello High School and in December 2008 approved the project to replace the school as the first priority in the Wave 3 programme. The funding for the project is in place, planning permission granted and a principal construction contractor approved. In April 2012 Council formally approved the appropriation of the land at Portobello Park as the site of the new school having previously intimated its intention to do so. Since the project was first approved by Council the threat of legal challenge has existed. A Petition for Judicial Review was lodged in the Court of Session in August 2011 on behalf of a local action group, Portobello Park Action Group (PPAG), challenging the Councils legal right to use part of Portobello Park as the site for the new school. This petition was successfully defended however an appeal was subsequently lodged by PPAG. The Opinion of the Court in respect of the appeal was issued on 12 September 2012. In summary, the Council lost on 1
2.2
2.3
all three points which had been considered during the appeal, an outcome that was both extremely disappointing and entirely unexpected. However, the Court was required to provide an opinion on matters that have not previously been litigated in Scotland. 2.4 On 26 September 2012, the Scottish Government announced funding support for the replacement of St Johns RC Primary School. Due to its location immediately adjacent to the existing Portobello High School, the future of St Johns RC Primary School is inextricably linked to how the project to deliver a new Portobello High School is progressed. This report provides an update on, and the proposed next steps for, the delivery of a new Portobello High School and a new St Johns RC Primary School. A detailed history of the project to deliver a new Portobello High School on part of Portobello Park is included in Appendix 1. The site on part of Portobello Park still remains the preferred location for a new Portobello High School. A number of options that may achieve this objective have been identified and will be progressed. However, as the ultimate outcome of any legal option cannot be presumed, it is considered prudent to consider what alternative site options could be available in the event that this does not, ultimately, prove to be possible. The former Scottish Power site at Baileyfield which is in private ownership has been identified as one of the few alternative options and this is now in the process of being marketed for sale by the owner. In view of the time constraint this places on the consideration of this option and the requirement to act quickly as it is a limited window of opportunity; it is proposed to consider this, and other options, in more detail and seek informal feedback from the school communities in advance of taking a further report to Council on 22 November. The next report to Council will recommend what steps, if any, should be taken regarding any proposed purchase of the former Scottish Power site at Baileyfield for either a new Portobello High School or a new St Johns RC Primary School. Main Report Legal Options The Inner House of the Court of Session has, in summary, concluded that although there are powers to dispose of such land, no Scottish local authority (including The City of Edinburgh Council) has the authority or power to appropriate inalienable common good land under the provisions of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003 or indeed any legislation, regardless of the merits of the purpose for which such action is intended.
2.5
2.6
2.7
2.8
2.9
3 3.1 3.1.1
3.1.2
The site on part of Portobello Park still remains the preferred location for a new Portobello High School therefore consideration has been given to the range of options that may achieve this objective. The following options have been identified as the most viable, others having already been discounted: 1. 2. An appeal to the Supreme Court against one, or more, of the legal questions decided by the Inner House of the Court of Session. A review of the status of the land at Portobello Park to establish whether it might be categorised as alienable common good or not part of the common good. Disposal of the intended site for the school at Portobello Park which would be permissible under section 75(2) of the Local Government (Scotland) Act 1973 provided it is sanctioned by the Sheriff Court or the Court of Session. An application to the Sheriff Court or the Court of Session seeking authority to appropriate the Portobello Park site under the above mentioned section 75(2). A petition to the Court of Session to invoke the nobile officium. A change to the existing legislation for which three sub-options have been identified: (i) (ii) (iii) A Private Act of the Scottish Parliament (promoted by the Council); An Executive Act of the Scottish Parliament; or An Order made by the Scottish Ministers authorised by statute.
3.1.3
3.
4.
5. 6.
3.1.4
Having considered in detail the relative strengths and weaknesses of each option together with the relevant timescales, costs and prospects of success, the following actions are either proposed, or have already been taken. (1) Appeal to the Supreme Court
3.1.5
The Rules of Court required that the Supreme Court be advised by 24 October 2012 as to whether or not the Council was intending to take such an appeal forward. In the circumstances the decision has been taken not to appeal. This approach has been taken because it is a requirement of any appeal to the Supreme Court that it be supported by two Counsel who consider the appeal to be reasonable. The alternative Senior Counsel appointed by the Council to assess the Inner Houses judgement did not feel he could support an appeal, in other words an appeal would, in his opinion, be unlikely to succeed. This does not mean the Councils proposal to build on part of the Park has been ill-founded, indeed far from it. Before the Council approved the new school as the first priority within the Wave 3 school replacement programme 3
3.1.6
in December 2008, the Council had obtained a strong legal opinion from two QCs which supported the course of action being taken. 3.1.7 However, the matters that were considered by the Court have little in the way of directly relevant precedent and the Inner House of the Court of Session has now provided clarification regarding the law on the question of appropriation and the lack of any applicable or available legislation. It has also provided a very clear opinion regarding the applicability of the power to advance well being on this matter. Alternative Senior Counsel was of the opinion that an appeal was unlikely to succeed and, as such, it was concluded that the limited prospects of success did not justify the time and expense such an action would involve. Efforts to resolve the matter are therefore considered to be better directed towards addressing what has been identified as being a significant gap in the legislation. As a decision on this matter was required before 24 October 2012 and, therefore, in advance of the Council meeting on 25 October 2012, in order to comply with the time limit set out in the Rules of Court on 17 October 2012 a decision was taken by The Director of Children and Families not to appeal to the Supreme Court. As this decision was required as a matter of urgency and could not await the next scheduled meeting, it was taken under delegated authority following consultation with the Convenor of Education, Children and Families under the provisions of Standing Order 63. (2) Classification of Portobello Park as Inalienable Common Good 3.1.10 Several years ago the Council first undertook a review of the status of Portobello Park and concluded that it was common good. In light of the recent speculation on this matter a further review of the classification of Portobello Park as part of the common good of the city is ongoing. This is an area of law in which there was, and continues to be, a lack of certainty and on conclusion of this review, in the absence of any new facts coming to light which clarify the matter beyond doubt, we would ask Court for its view on the matter. A decision of the Court on this point would resolve the matter and a petition would be made to the Court at the earliest opportunity. A decision that the Park is not common good would carry a number of advantages. If the site does not form part of the common good, or is alienable common good, then the Council would be able to appropriate it for the new school. It is estimated that a decision could be obtained in approximately six months, although that is dependent upon the Courts diary and availability of Counsel. Such a petition could cost in the region of 55,000 - 65,000 in respect of legal fees. This estimate is based on the cost of earlier proceedings in the Outer House in which the arguments were arguably more complex and it is hoped that the costs associated with the petition could, therefore, be less than the estimate.
3.1.8
3.1.9
3.1.11
(3) 3.1.12
Disposal of the intended site for the school at Portobello Park
In essence, this option is that the Council would transfer ownership of the site to a Council owned company, and the site is then developed for the new school as originally intended. Such a transfer would mean the site no longer formed part of the common good, and consequently the restrictions on appropriation would not apply. However, Senior Counsel was also asked to consider this option, and his view is that it would be unlikely to succeed, as it could be expected that the Court would see this purely as circumventing the apparent absence of any power enabling the Council to otherwise appropriate inalienable common good land. As such, the Council has concluded that the limited prospects of success do not justify the time and expense such an action would involve. (4) Appropriation of the intended site for the school at Portobello Park
3.1.13
Given the terms of the Inner Houses judgement it is still open to the Council to seek authority from the Courts to appropriate the site under section 75(2) of the Local Government (Scotland) Act 1973, something that had previously not been viewed as necessary. (5) Nobile Officium
3.1.14
The Court of Session has the power to invoke the nobile officium, which is in essence the power to provide a legal remedy where one is otherwise unavailable. It can be seen that, following the Inner Houses decision, there is arguably a gap in the law if local authorities do not otherwise have the power to appropriate inalienable common good land in terms of the Local Government (Scotland) 1973, no matter what the intended purpose is. An important feature of the applications for options (4) and (5), which would be progressed simultaneously, will be clear evidence that the proposal to build the new school on this part of the Park is the preferred option of the majority of the local community and, in this respect, they will not be pursued immediately, a matter considered in more detail below. The costs involved are estimated to be approximately the same as set out in 3.1.11 above and it is estimated that a decision could be obtained in approximately seven to ten months from any petition being raised with the Court, an action which would be taken as soon as possible following conclusion of the proposed Private Bill consultation process which is covered below. (6) Change in Legislation
3.1.15
3.1.16
On the basis that it is considered unlikely that it is the intention of either Ministers or the Scottish Parliament that Scottish Councils should have no means whatsoever to appropriate inalienable common good land the Council Leader and Chief Executive have jointly written to the relevant Scottish Ministers to enquire regarding the extent to which they might be minded to support, and progress, any potential legislative resolution to this matter.
3.1.17
It is currently anticipated that the option which is most likely to be taken forward is a Private Act of the Scottish Parliament, which the Council would itself promote. The other options identified at paragraph 3.1.3.6 above could only be taken forward by the Scottish Government/Scottish Parliament. The Standing Orders of the Scottish Parliament require a suitable consultation in respect of any Private Bill prior to its introduction to the Scottish Parliament. While further discussion is required with the Bills Unit of the Scottish Parliament, it is currently estimated that the consultation and other requirements of the Private Bills procedure mean it could be up to five months before the Council would be in a position to introduce a draft Bill to the Parliament. While a timetable for progress of such a Bill through Parliament cannot be guaranteed, and depending upon the Parliamentary diary, it is currently estimated that a Bill could potentially receive Royal Assent within six to twelve months of introduction, assuming it is passed. It is currently estimated that the legal costs associated with such a Bill would be in the region of 50,000. In connection with this, and as commented on above, a consultation on the matter is expected to provide strong evidence that the proposal to build the new school on this part of the Park is the preferred option of the majority of the local community. Given that such evidence would form a key element of any approach to the Court under options (4) and (5) above, and to avoid any unnecessary duplication of time and expense, it is proposed that options (4) and (5) are not formally progressed until such time as the consultation has been completed and assessed. This would also enable option (2) to be progressed, and possibly a decision issued by the Court, which could then make the other options unnecessary. Change to Proposals
3.1.18
3.1.19
3.1.20
In March 2010, in light of the audit of the usage of the park which was undertaken which showed very limited use of Portobello Park, and the open space strategy which recognised that the quality of open space is as important as the quantity, Council approved a range of compensatory measures be provided as part of the project to deliver the new school. The combination of measures would ensure that the existing uses of Portobello Park, mainly as a walking venue, would not only be preserved but improved where possible. This, in turn, would improve the quality of the existing provision in the area. Council further approved that any receipt from the disposal of the site of the existing Portobello High School be ring-fenced for future reinvestment into the Children and Families estate either for new investment or to assist in addressing the considerable backlog of asset management works which exist within the Children and Families estate. The final proposals for which planning permission was approved include a number of measures to achieve these objectives, including the improvement of the quality of Portobello Park set against the deficiencies identified in the Park Usage Audit. These measures can be summarised as follows: 6
3.1.21
3.1.22
Two 3G all-weather pitches will be provided. These will not only meet curricular requirements with surfaces allowing a range of sports including football but also provide pitches for the use of the wider community throughout the year outwith curriculum time including the option to extend hours by sensitive lighting proposals. There will also be a cat-flap access system to enable local children to use the pitches free when not otherwise in use. The new layout retains a broad publicly accessible perimeter along the south and east edges of the park without impacting on the existing mature tree belt woodland. It includes a number of opportunities for informal recreation and a significant open grass play area at the south east corner. The mature boundary trees to the west, south and east edges of the park are maintained except for the necessary provision of entrances. This is to largely retain the look and feel of the park to the adjacent residential areas. The main entrances to the park, from the east and west, will be opened up and improved in order to link into the new network of paths within the park boundary and extending along the west and east perimeter of the Golf Course. The improved path networks will provide greater access for those with pushchairs, disabilities and mobility issues as well as for the existing dog walkers and cyclists. The introduction of a cycle path along the eastern edge will also provide a previously missing link for the Sustrans Cycle network across Edinburgh. The school itself will bring further recreational opportunities in the form of gym halls, performance spaces, dance studios, fitness facilities and a 25m swimming pool, all of which will be available to the community outwith curriculum commitments. Finally, there was a commitment to an investment of 150,000 for measures to be decided by the local community to enable further enhancements outwith the boundary of the site, to where it was considered to be most beneficial. Determination of the most appropriate use of this funding was delegated to the local Neighbourhood Partnership. Services for Communities undertook extensive consultation with the local community on this matter and the Portobello and Craigmillar Neighbourhood Partnership approved that this funding be directed to improving outdoor play facilities in Magdalene Glen. The application of this investment towards the agreed purpose is, regrettably, currently on hold in light of the legal impediment to the project.
3.1.23
In progressing any option for a Private Bill, appropriation under section 75(2) or a petition to invoke the nobile officium it is considered that the prospects of success for these options would benefit from a further improvement to the already very comprehensive proposition for a new school on part of Portobello Park and the measures geared towards improving and enhancing the existing park. It is, therefore, proposed and recommended that the following additional compensatory measures be included within the proposal to build a new Portobello High School on part of Portobello Park but that 7
these measures would only be applied in the event that this was, ultimately, to proceed: (i) Once the existing Portobello High School is demolished, the remainder of existing Portobello High School site (after making provision for the necessary increase of the site allocated for St Johns RC Primary School from 0.67 hectares to 1.3 hectares) would be converted to open space and the forthcoming consultation exercise would seek views from the Portobello community regarding the most appropriate use of this space for the area; and Regarding access to the two 3G pitches, although any required use by the school for curricular or extra-curricular activities would take precedence; at times when they were available and not otherwise already booked, the use of these pitches would be free to, and could be pre-booked by, residents of the Portobello area rather than the casual access already provided for.
(ii)
3.1.24
The very significant enhancements to the proposal which these changes represent, and the associated direct compensatory provision would address the issue of a loss of the overall quantity of open space in the Portobello area which, it is understood, has been the main concern voiced by PPAG. This would entail the re-provision of a very significant area of open space (approximately 2.2 hectares) within a very short walking distance from Portobello Park and it is hoped that the members of PPAG, and others holding similar views to them, would accept that this enhanced approach would address their primary concerns and that they would not challenge the revised proposal. PPAG has, we believe, accepted that a new school is urgently required and, as is exemplified later in this report, the site on part of Portobello Park remains by far the most appropriate site for the new Portobello High School. As commented on above, while it is possible to progress the different legal options simultaneously, at least to an extent, care needs to be taken in doing so, in order to guard against potential conflicts. Equally, the Council needs to be mindful of the manner in which it uses public funds to progress these options, while at the same time maximising the potential for success, and that within as short a time frame as possible. As such, it is recommended that the Council takes the following actions:(i) (ii) Notes and affirms the decision not to appeal to the Supreme Court; In the absence of any new facts coming to light which clarify the matter beyond doubt, seeks a declarator from the Court of Session that the site of Portobello Park is not part of the common good, or is alienable common good. This will be taken forward as soon as possible; Makes an application to the Court of Session for authority to appropriate the proposed site of the school under section 75(2) of the Local Government (Scotland) Act 1973, but that this is not formally 8
3.1.25
3.1.26
(iii)
progressed until after the proposed Private Bill consultation has been completed and assessed; (iv) Petitions the Court of Session to invoke the nobile officium, to enable the Council to appropriate the part of Portobello Park required for the new school, but that again this is not formally progressed until after the proposed Private Bill consultation has been completed and assessed; Investigates further with the Scottish Government possible legislative changes which would enable the Council to build the school as currently proposed on part of Portobello Park but commences immediately the processes involved in promoting a Private Act of the Scottish Parliament to achieve this. The proposals for inclusion in a Private Bill, and the proposed public consultation arrangements which will require to be undertaken in this regard prior to its introduction to the Scottish Parliament, will be taken to Council on 22 November 2012 for approval; and Approves the proposed changes to the compensatory provisions associated with the proposal to build a new Portobello High School on part of Portobello Park.
(v)
(vi)
3.1.27 3.2 3.2.1
Regular reports regarding progress on the pursuit of these options will be provided to Elected Members. Title Restriction The Inner House has expressed the view that, even if the Council were in a position to appropriate the part of Portobello Park that is required for the school, the condition in the Councils title to Portobello Park that, in essence, requires it is used exclusively as a public park and recreation ground for the benefit of the community and which also precludes the construction of buildings other than housing for park officers and gate keepers, would present an unresolved difficulty. The Opinion from the Inner House acknowledges this matter was not fully argued before the Court. However, the Council had previously come to the view that the title conditions in question were no longer enforceable, and this has recently been re-affirmed. Balfour Beatty Arrangements are currently in place to award a very competitive contract to Balfour Beatty which would achieve the earliest date for the delivery of the new school on part of Portobello Park if the Council was in a position to enter into a contract to do so. Should the opportunity to enter into the contract with Balfour Beatty be lost an entirely new procurement exercise would be required. This would, in itself, be at further cost to the Council but also carries the real risk of an increased contract sum. 9
3.2.2
3.3 3.3.1
3.3.2
3.3.3
A new procurement process would take up to nine months, the starting point probably being when the Council has achieved certainty that it may lawfully use part of Portobello Park as the site of the new school as, in light of the potential reluctance from the market in such uncertain circumstances, the process would not be started until any legal option was successfully concluded. Balfour Beatty was approached to consider extending the tender acceptance period again with all other contract terms remaining unchanged. Balfour Beatty has accepted a further extension to 30 November 2012 allowing time for discussions to be progressed with them regarding longer term options; we are very grateful to them for their continued patience and understanding. Should there be an opportunity for longer term arrangements with Balfour Beatty the detail will be taken to Council for consideration. Planning Permission Planning consent for the project to build a new school on Portobello Park was granted on 24 February 2011 and included an applicant informative indicating that it was granted subject to the default period of three years. If development does not start on site by 23 February 2014 the consent will expire. As the informative is not a formal condition of planning it is not possible to apply for an extension to the default timescales. However, the Town and Country Planning (Development Management Procedure) (Scotland) Regulations 2008 provide for a simplified application procedure where the consent has yet to expire. Should it be considered that such a re-application becomes necessary, this will be progressed at the appropriate time to ensure that no delay to the project would be experienced. Alternative Sites for a New Portobello High School The site at Portobello Park remains by far the best site available for a new Portobello High School in, or around, the catchment area if the legal impediment can be overcome. However, as the ultimate outcome of any legal option cannot be presumed, it is considered prudent to consider what alternative site options could be available in the event that this does not, ultimately, prove to be possible. Consideration has therefore been given to what potential alternative site options might be available recognising that any alternative would represent a significant compromise in comparison to Portobello Park. This involved two strands of activity: (i) (ii) An updated appraisal of the potential sites identified initially during 2006 and, more recently, updated in June 2010. An investigation into what new potential sites might have arisen in the period since June 2010. 10
3.3.4
3.3.5 3.4 3.4.1
3.4.2
3.5 3.5.1
3.5.2
3.5.3
The details of this assessment are included at Appendix 2. Taking all relevant factors into consideration, the following sites have been identified as being possible options albeit each attracting varying degrees of compromise. Not all options would be of a sufficient size to incorporate a pitch, or multiple pitches, immediately adjacent to the school buildings. These options have been separated between those which would require a decant, and those which would not. Whilst any option involving the use of an off-site decant is, for a number of reasons, not considered to be either preferable or desirable, and the views of many parents in this regard have been very clearly articulated, these remain potentially feasible options and, as such, have been identified for completeness. Options which would require a full, or partial, decant
Site (i) Existing High School site with no change to the size of site assigned to St Johns Primary (ii) Existing High School site reduced with the size of site assigned to St Johns Primary increased to (at least) 1.2ha. Size 2.79ha Pitches 0 Constraints and Issues Requires expensive and potentially disruptive decant. No opportunity for full size on-site pitch. Does not resolve the issue for St Johns of the current constrained site. Requires expensive and potentially disruptive decant. Significant reduction in area assigned to the High School compared to existing. Considered to be no opportunity at all for an on-site pitch of any size. Requires Scottish Government approval of reduced site size for High School. Requires Scottish Government approval of site size for primary school (could be mitigated by increasing site size to 1.3ha however that would further reduce the amount available to the High School). Requires expensive and potentially disruptive decant (which it might be possible to mitigate to an extent subject to detailed feasibility). Requires an alternative location to be found for St Johns RC Primary School.
3.5.4
3.5.5
2.26ha
(iii) Existing High School site combined with the adjacent St Johns Primary site with St Johns relocated to a different site
3.46ha
3.5.6
For these options the availability of potential decant locations requires to be explored together with the associated travel implications and costs. Any site which is not in Council ownership may entail a further rental cost. Of the options above; the only one which would not result in the delivery of both new schools being excessively compromised by having a site which was too small for their requirements would be option (iii) being the use of the existing High School site combined with the adjacent St Johns RC Primary School site. This would produce an area of 3.46 hectares for the High School, larger than the existing site but still much smaller than the target site 11
3.5.7
size of 4.5 hectares and would require St Johns to be relocated to a different site, but of a suitable size. 3.5.8 It is very much recognised and understood that this option may also prove to be unpopular with the St Johns RC Primary School community as it would require the school to move to a different location. However as this remains a feasible option it has been identified for completeness. In the circumstances when options are so limited, everything must at least be considered. Whilst this option may require a decant, the possibility has been identified of a phased build on the existing site and/or the potential use of some of the existing buildings on the site as at least partial accommodation. This requires further detailed investigation to test the feasibility of such an option. Options which would not require a decant
Site (i) Baileyfield (Scottish Power) Site Size 3.0ha Pitches Constraints and Issues Site would have to be purchased so additional cost to the project, albeit would be offset by value released from the existing High School site. Shape of the site available requires further detailed investigation regarding possible configuration options. No opportunity for full-size on-site pitch however potential options in adjacent areas including Power-League or Baileyfield Depot require to be explored in detail. Would not require Scottish Government approval of site size as higher than regulations unless the areas in commercial occupation prove not to be feasible to include in the area available for a school. Site would have to be purchased so additional cost to the project, albeit would be offset by value released from the existing High School site. Poor location to the very south east of, and actually outwith, the catchment area.
3.5.9
3.5.10
(ii) Brunstane Estate
4.5ha
3.5.11
For any option involving a new site the following information has still to be clarified in detail: 1. The availability of the site for acquisition and, were it to be available, the potential acquisition cost; 2. Any other costs associated with the option such as demolition or abnormal costs relating to the site such as remediation works or the requirement to re-divert any services; 3. The acceptability of any proposed use of the site as a school with Planning in relation to the current development plan and the approved North West Portobello Development Brief. Key aspects arising from recent applications require to be included in any assessment; and 12
4. Any accessibility issues. 3.5.12 Of the two options above, we have been advised that DTZ has been appointed as agents by the site owners, BL Development, and that they have instigated the sale of the 7.74 acre site at Baileyfield constituting the former Scottish Power HQ. The total site extends in total to 3.3 hectares however this includes existing housing which reduces the space available for a new school. The remaining area available for a new school is approximately 3 hectares on which there are a number of properties leased by commercial occupiers, generally on short term rolling tenancies, which would require to be freed up. Marketing materials have been produced and are available via the following link http://www.baileyfield-portobello.co.uk/. The Councils potential interest in the site has been noted by the agents. No closing date has, as yet, been set. Whilst there are aspects of the site, and the potential configuration for a new school, which require detailed investigation to assess its feasibility for a new school, it is the only site available in the near vicinity of the current school. Potential for a combined New Portobello/Craigmillar High School On 9 October 2012 the Education Children and Families Committee approved a recommendation to consult on the proposed closure of Castlebrae Community High School with effect from July 2013. Whilst there is expected to be sufficient spare capacity in other secondary schools in the local area up to 2020 to accommodate expected demand for catchment places; it is anticipated that, through a combination of the expected increase in secondary school rolls and the projected significant new housing development in Craigmillar, ultimately a new school will be required for the Craigmillar area thereafter. In the circumstances, the potential exists to create a single new school to accommodate both Portobello and Castlebrae catchment populations. The initial assessment suggests the required capacity for this combined school would ultimately be 2,200. This would be one of, if not the, largest secondary school in Scotland and there are educational, logistical, accessibility and financial factors to consider which are assessed in detail in Appendix 5 together with what site options might be available in the area to accommodate a school of this size. Taking all relevant factors into consideration the following sites have been identified as being possible options for such a school.
Site (i) Craigmillar Town Centre Size 6.5ha Pitches 3 Constraints and Issues Position regarding availability and impact on town centre regeneration and associated business case will not be clarified until early 2013. Consider any accessibility issues in detail. Confirm position regarding planning. Consider any abnormal site condition issues and potential costs in detail.
3.5.13
3.6 3.6.1
3.6.2
3.6.3
13
Site (ii) Brunstane Estate
Size 6.5ha
Pitches 3
Constraints and Issues Site would have to be purchased so additional cost to the project, albeit would be offset by value released from the existing High School site. Poor location to the very east of what would be the combined catchment area. Confirm position regarding planning. Consider any accessibility issues in detail. Clarify site availability; ownership and acquisition cost through EDI as appropriate (who own, or have options over, the land). Consider any abnormal site condition issues and potential costs in more detail. What would the impact be on the PARC Craigmillar town centre regeneration proposals if the school was not located. there; also impact on funding for school.
3.6.4
The advantages and disadvantage of what would be a very large school have been assessed and are set out below. Advantages

Would provide a fully comprehensive school; Would deliver a new school for current Castlebrae Community High School catchment pupils quicker; If Castlebrae Community High School did close, avoids complexity of transition to new Craigmillar school in future; If a phased build was adopted this would ensure capacity would be right-sized to meet demand in the area; Accommodation provided could be more flexible if built to full capacity from the outset; and Potential financial savings if it was built to full capacity from the outset.
Disadvantages

Location is not in the heart of either the extended community or the separate communities; Considerable distance from main areas of pupil population; Considerable distance from community population which may prohibit community use; Likely to be strong opposition from both communities albeit this might depend on the option; Impact on Craigmillar town centre regeneration likely to be negative (but in different ways depending on the site involved); Large size results in difficulties in movement of pupils through the school and a loss of teaching time; 14
Pastoral care could suffer due to the sheer number of pupils and risk of anonymity; More challenging to form an identified school community for pupils, parents and staff with such a large projected roll; and Would require significant increase in the initial up-front financial investment required.
3.6.5
Setting aside the community issues, whilst it is not impossible to create a good large school it is considerably more difficult. Research suggests that the optimal school size is between 600 and 1,600 and that any higher would require school structures which are essentially schools within schools On balance, it is therefore the view of the Children and Families Department that the advantages are outweighed by the disadvantages and that this is not an approach which would be recommended. St Johns RC Primary School Background
3.6.6
3.7
3.7.1
St Johns RC Primary School has been operating as a two-stream, 14 class school for many years. The school is currently reliant on temporary unit accommodation for two of its 14 classes and its nursery, alongside a significantly under-sized main building. Accommodation is under considerable pressure and classrooms are significantly under-sized, being some of the smallest in the estate by a significant margin. These compound suitability issues lead to the schools suitability rating as category D - the worst in a scale of A to D. In addition, the schools condition is poor, rated C on the same scale and it is located on a constrained site of only 0.67 hectares. The necessity to replace the school was acknowledged through its inclusion in the Council Wave 3 school replacement programme and, based on the priority order approved by Council, is the next project to be progressed. Statutory consultation for the schools relocation to the neighbouring Portobello High School site was conducted and approved in 2006. It had been anticipated this site would have become available once the new Portobello High School was delivered and the current site cleared; relocating to this site would also have allowed the small site size issue to be addressed. However, in 2008 two further options were identified (i) refurbishment of, and extension to, the existing buildings or (ii) new build with both options being on the combined area comprising the schools existing site together with the pitch area currently used by Portobello High School. The necessity for a whole school decant was, and remains, a key challenge associated with any refurbishment option. In December 2008, as no decision was previously required regarding the option to be progressed, it was agreed to continue discussions with the school on the matter at an appropriate future time. 15
3.7.2
3.7.3
3.7.4
Scottish Government Funding 3.7.5 Earlier this year the Council was invited to submit an application for funding under the third phase of the Scotlands Schools for the Future Programme. The application was submitted in July and identified St Johns RC Primary School as the priority for funding. On 26 September 2012, it was announced that St Johns RC Primary School will be one of the next 30 schools to be built under Scotlands Schools for the Future Programme from which the Council has already derived significant benefit with the replacement of both James Gillespies High School and Boroughmuir High School already being supported. The funding from the Scottish Government is based on defined metrics which are applied to all schools within the Scotlands Schools for the Future Programme. Whilst the precise funding which will be receivable for St Johns RC Primary School is still to be discussed with the Scottish Government this is expected to be in the order of 4.424m which is calculated based on a capacity of 502 pupils (including nursery) x a space allocation of 7.5m2 per pupil x an estimated cost of 2,350/m2 x 50%. The base costs of delivering a new school on any site would be approximately 9m. Further costs may arise relating to site acquisition, decant or any abnormal costs associated with the particular site e.g. if there was a requirement for the demolition of any existing buildings on the site. No additional funding support would be provided by the Scottish Government for any such costs were these to be necessary. The Scottish Government has subsequently advised that capital funding for this review period has already been fully allocated and it is not anticipated that capital funding for the project will be available until the next spending review. They have, as a consequence, advised that the project will most likely not to be able to commence construction until 2015/16 unless the Council could fund its share up front in which case the project may be able to commence earlier. The Scottish Government has further advised that there will be some specific requirements regarding Up Front funding which we have been recommended to discuss with the Scottish Futures Trust. This will be progressed to establish what implications this would have on the timescales for the delivery of a new St Johns RC Primary School. Updated Feasibility Study 3.7.10 To inform the funding application to the Scottish Government, and ensure an accurate position was derived regarding the options for a new school and the associated costs, a feasibility study was recently undertaken, the results of which are summarised in Appendix 6. The study was based on options for refurbishment of, and partial extension to, the buildings on the existing primary school site (using the adjacent land on the existing Portobello High School site) or new build on the adjacent Portobello High School site once the existing buildings were demolished. 16
3.7.6
3.7.7
3.7.8
3.7.9
3.7.11
3.7.12
In tandem with considering options for the replacement of the school, an exercise was also undertaken to establish the potential revenue from the sale of the residual land on the existing Portobello High School site for housing development. This illustrated that a considerable receipt could be realised from the surplus land albeit that, due to a deficit in the realisation of capital receipts expected from other sites, the funding within the existing Children and Families Capital Investment Programme is currently under-pinned by an expectation of in excess of 1m of any such receipt from the disposal of the existing Portobello High School site being reserved to cover this deficit. The conclusion of the study was that the new build option on the High School site was the most economic and simplest process in respect of the clearance of the existing site and delivering the full new build with negligible disruption to the school. This would also release part of the development land earlier than the partial refurbishment option. Whilst the option to undertake a partial refurbishment and new build remains a feasible option and of a comparable cost to new build; the delayed delivery and receipt of land revenue make this less attractive. More significantly, the requirement to decant would also add significant (revenue) costs to this option which would make it considerably more expensive and much less attractive than the new build solution. The Children and Families Department supports these conclusions and, were the option to re-build on the existing High School site to be available, remains of the opinion that new build offers the best option; this being the one already approved by Council in December 2006. In addition to the reasons outlined above; the opportunity to develop a design which is not restricted in any way by the configuration of existing buildings should allow a final solution to be delivered which is a better match to the educational requirements. It is, however, acknowledged that were the option to undertake either new build or refurbishment and extension to be available, further consultation with the school community would be required to determine the final proposal prior to commencement of this project. The timescales for delivery of the project would also be a factor to be taken into consideration in view of the potential dependency on the project to deliver a new Portobello High School and when any sites for a new primary school could be released should that be necessary. In 2008, the representatives from the school advised that the preferred option of the school community was for refurbishment and extension. They advised that in their opinion the key advantages of this option, relative to others, were:

3.7.13
3.7.14
3.7.15
3.7.16
3.7.17
A first class educational environment could be created within the refurbished and extended building; The history and sense of identity of the school would be retained; The buildings character, which is in keeping with its surroundings, would be retained and would maintain the schools civic prominence; 17
The existing building is of significantly better build quality than is likely to be created in a contemporary new build, due to the quality of the building materials and the traditional building methods used; The school community believe that it is wrong environmentally to demolish and dispose of a structurally sound building, with the associated carbon cost, when the building could be retained and refurbished; and Many families in the area have a strong attachment to the building.
3.7.18
The first point above referred to the fact that a first class educational environment could be created within the refurbished/extended building. It was clarified that this was not necessarily an advantage over the other options, unlike the other points which were all unique to the refurbishment option, but they felt it was important to state explicitly that they believed this would be achieved under the refurbishment option, and that it is not some sort of compromise where they were willing to sacrifice the learning environment, as this was not considered to be the case. The representatives from the school also advised that they believed very strongly that an off-site decant was essential for the St Johns redevelopment due to the current site restrictions. Site Options
3.7.19
3.7.20
Consideration of how this project will be delivered is inextricably linked to the approach taken to the delivery of the new Portobello High School and where this would be located. There are a number of options arising regarding where a new St Johns RC Primary School could be located as follows:
Site (i) Existing site with no change to the size of site assigned to St Johns RC Primary (ii) Existing site with the overall area assigned to St Johns RC Primary increased using the adjacent High School pitch Size 0.67ha Constraints and Issues Does not resolve the issue for St Johns of the current constrained site. Entire school decant required; expensive and potentially disruptive. Allows immediate project commencement following statutory consultation regarding decant site. This could be either a refurbishment and extension or a new build (with the existing buildings being demolished). Entire school decant required; expensive and potentially disruptive. Project could start immediately (following completion of the statutory consultation regarding decant site) if adjacent pitch area released by the High School otherwise would have to await delivery of alternative site option for High School before construction could commence. Available site area less than the minimum required under the regulations (1.3ha) unless await delivery of alternative site option for High School before construction could commence allowing an increased site size to be allocated.
1.08ha
18
Site (iii) Former Lismore Primary School Playing Fields (iv) Baileyfield (Scottish Power) Site
Size 1.8ha
Constraints and Issues Statutory consultation required. Confirm position regarding planning however this is considered to be high risk. Confirm any abnormal costs associated with the site. Confirm any accessibility issues. Statutory consultation required. Site would have to be purchased so additional cost to the project, albeit would be offset by value released from existing site (unless used for a new High School) Would require the remainder of the site to be sold or re-developed. Quantify potential acquisition cost and any demolition or abnormal site costs. Confirm position regarding planning. Statutory consultation required. Confirm any abnormal costs associated with the site. Confirm any accessibility issues. Confirm position regarding planning; potential risks.
1.3ha
(v) Cavalry Park
1.3ha
Statutory Consultation 3.7.21 In the event that it was proposed to build a new school on a different site, a new statutory consultation process under the Schools (Consultation) (Scotland) Act 2010 would require to be undertaken. This would also apply to the location for any intended off-site decant were the refurbishment and extension option or a new build on the existing site to be considered. There are prescribed timescales and processes which apply in these circumstances which would result in this taking a period of six months. Project Delivery Timescales - New Portobello High School The original project programme would have allowed the occupation of the new Portobello High School in August 2013 however this was predicated on a decision having been taken regarding the appointment of a contractor in September 2011 as had originally been intended. The start on site for the construction programme was already delayed as a result of the legal challenge. Prior to the recent appeal outcome, had it been possible for the contract to have been awarded fairly soon, the earliest date for an opening would have been the beginning of the 2014/15 school term. Obviously the timescales for the project have now changed significantly. New High School on Portobello Park 3.8.3 In the event that one of the legal options resulted in it still being possible to deliver a new school on Portobello Park the associated timescales would be dependent on a number of factors none of which can be predicted with any degree of certainty at this point in time: 1. The time taken to resolve the legal impediment. 19
3.8 3.8.1
3.8.2
2.
Whether, or not, we can retain the option to enter into a contract with Balfour Beatty or if a new procurement process would be required which could add up to nine months to the timescales. Whether, or not, it was necessary to progress a revised planning submission if the existing consent expires; this could add up to nine months or more to the timescales. However, steps would be taken to mitigate any such delay as far as possible. The construction period may end at a time when it would not be suitable for the school to migrate to the new building. However, the Council would continue to work towards achieving the earliest date possible for the project delivery whilst aligning this with school curriculum requirements and the necessity to minimise disruption to pupil learning.
3.
4.
New High School on a site other than Portobello Park 3.8.4 The timescales for the delivery of a new school on a site other than Portobello Park are dependent on the site in question which may have specific issues such as remediation or the relocation of services to be dealt with. The following represents an approximation of what these timescales might be; any proposal to build a combined school would inevitably take longer due to the increased design complexity and a longer construction period. The option to re-build on the existing site should have a delivery timescale comparable to that for new build elsewhere other than timing issues which may arise regarding the demolition of the existing buildings. The timescales include a shorter period than would ordinarily be expected for a project of this scale to take the design development to RIBA Stage C on the basis that considerable work has already been undertaken with the school to get a very clear understanding of requirements. It also reflects a construction period of less than two years which is considered realistic based on the timescales for the existing proposal to build on part of Portobello Park. If a new site was involved which carried any issues this would add to the timescales; the timescale below assumes a clean site with no such complications. Please note that this should be considered as being illustrative and very provisional and possibly overly optimistic and subject to further variation, particularly the period required for planning consideration.
Activity Initial Report to Council Initial consultation with Community on options Conclusion of statutory consultation and approval of site Conclude procurement process and appoint design team Design development RIBA Stage C Planning pre-consultation process (PAN) Design development to RIBA Stage D Timescale (by) 25 October 2012 31 December 2012 31 August 2013 31 August 2013 31 December 2013 31 March 2014 30 April 2014
3.8.5
3.8.6
20
Planning process complete RIBA Stage E OJEU contractor procurement process Construction contract tender process Council approval to start of construction contract On-site start of construction New school construction completion New school occupation
31 October 2014 31 August 2014 31 August 2014 30 November 2014 31 December 2014 28 February 2015 31 December 2016 January 2017
3.8.7
The timeline above assumes that the procurement process to appoint a design team is progressed in tandem with the statutory consultation process. The existing Council architectural framework agreement expires on 8 March 2013 and cannot be extended; it will be re-tendered. This renders the use of this framework, were we to wish to consider that approach, to be of potentially limited value as that might be at a stage which was too early in the process and, given the scale and significance of this project, a wider OJEU process is considered more appropriate. Whilst this does carry a risk that the market would not respond to such an invitation if there was any uncertainty regarding whether any of the option(s) would ultimately be progressed, it does allow a period of six months to be removed from the overall project completion period and, therefore, would be of considerable benefit. The timeline above assumes the appointment of a construction contractor through a full OJEU procurement process. There may, however, be opportunities for savings in time to be possible through using an alternative route such as Hub South East Scotland Limited. This would require detailed consideration at a future juncture and would obviously be dependent on the ability to achieve value for money being fully demonstrated. Project Delivery Timescales - New St Johns RC Primary School The timescales for delivery of a new St Johns RC Primary School are very dependent on the approach taken and whether there are any dependencies on the project to deliver a new Portobello High School. The timescales would also be dependent on the site involved which may have specific issues such as remediation or the relocation of services to be dealt with. The following represents an approximation of what the timescales might be for a new St Johns RC Primary School. It assumes a clean start to the project at the end of the statutory consultation period which would be required and that there are no external dependencies on the timing for the start of the project or site issues which could add to the timescales. It also makes no assumptions regarding where the school would be built however 21
3.8.8
3.8.9
3.8.10
3.9 3.9.1
3.9.2
does assume it would be a new build; the construction period for a refurbishment and partial new build would probably be slightly longer. 3.9.3 If a revised site was involved which carried any issues this would add to the timescales; the timescale below assumes a clean site with no such complications. Please note that this should be considered as being illustrative and very provisional and possibly overly optimistic and subject to further variation, particularly the period required for planning consideration.
Activity Initial Report to Council Initial consultation with Community on options Conclusion of statutory consultation and approval of site Conclude procurement process and appoint design team Design development RIBA Stage C Planning pre-consultation process (PAN) Design development to RIBA Stage D Planning process complete Design development RIBA Stage E OJEU contractor procurement process Construction contract tender process Council approval to start of construction contract On-site start of construction New school construction completion New school occupation Timescale (by) 25 October 2012 31 December 2012 31 August 2013 31 August 2013 31 December 2013 31 March 2014 30 April 2014 31 October 2014 31 August 2014 31 August 2014 30 November 2014 31 December 2014 28 February 2015 28 February 2016 March 2016
3.9.4
The timeline above assumes that the procurement process to appoint a design team is progressed in tandem with the statutory consultation process. The existing Council architectural framework agreement expires on 8 March 2013 and cannot be extended; it will be re-tendered. This renders the use of this framework, were we to wish to consider that approach, to be of potentially limited value as that might be at a stage which was too early in the process. Whilst this may carry a risk that the market would not respond to such an invitation if there was more than one option and there to be any uncertainty regarding what would ultimately be progressed, it would allow a period of six months to be removed from the overall project completion period and, therefore, would be of considerable benefit. The timeline above assumes the appointment of a construction contractor through a full OJEU procurement process. There may, however, be opportunities for savings in time to be possible through using an alternative 22
3.9.5
3.9.6
route such as Hub South East Scotland Limited. This would require detailed consideration at a future juncture and would obviously be dependent on the ability to achieve value for money being fully demonstrated. There may also be opportunities for collaboration with other local authorities who may be progressing similar school projects within similar timescales. 3.10 3.10.1 Proposed Next Steps Regarding Site Options Alternative site options in, or around, the catchment area for a new Portobello High School which would not result in the delivery of both the new Portobello High School and St Johns RC Primary School being, in some way, excessively compromised (but still representing a compromise) are very limited and can be summarised as follows (not in any order of priority): 1. 2. A new build on the former Scottish Power site at Baileyfield which is currently being marketed for sale. A new build (including, potentially, partial refurbishment) on the existing site but extended to include the site currently occupied by St Johns RC Primary School. This would require St Johns RC Primary School to be relocated to an alternative site. A new build on part of the Brunstane Estate.
3. 3.10.2
Obviously option 2 above would have a significant impact on the way forward for a new St Johns RC Primary School. The site options in, and around, the catchment area which would not result in the delivery of new St Johns RC Primary School being, in some way, excessively compromised are also very limited and can be summarised as follows (not in any order of priority): 1. Either a refurbishment of, and extension to, the existing buildings or a new build on the combined area comprising the schools existing site together with the pitch area currently used by Portobello High School. A new build on part of the existing Portobello High School site once it was vacated. A new build on the Scottish Power site at Baileyfield which is currently being marketed for sale. A new build on the former Lismore Primary School playing fields adjacent to Bingham Park. A new build on Cavalry Park, potentially adjacent to the existing Holy Rood RC High School.
2. 3. 4. 5.
3.10.3
Feasibility studies are being progressed regarding the above options to consider all relevant factors regarding the potential for these sites to accommodate a new Portobello High School or a new St Johns RC Primary School including the necessity for, and location of, any required decant arrangements and clarification regarding any planning risks. Once completed, the information from these studies will be used to get informal feedback from the two school communities to inform the extent to 23
3.10.4
which the Baileyfield site would be an appropriate fall-back should the intention to build the new Portobello High School on part of Portobello Park prove not to be possible. 3.10.5 Due to the very limited time available between the October and November Council meetings, and the necessity to reach a quick decision on this matter, the time available to get this feedback is only a matter of weeks. The immediate question which requires to be answered is if the potential acquisition of the former Scottish Power site at Baileyfield should be considered for either a new Portobello High School or a new St Johns RC Primary School and this will be the subject of a report to Council on 22 November. It should be noted that even if the acquisition of the former Scottish Power site at Baileyfield was to be progressed for either school, a full statutory consultation process would still have to be undertaken in advance of any project to deliver a new school on that site being progressed. This process would take approximately six months and involve extensive consultation with the school community and other key stakeholders. Thus, whilst the outcome of any statutory consultation obviously cannot be presumed, the opportunity for initial feedback from the school communities would be beneficial in informing a decision regarding the potential acquisition, or not, of the Baileyfield site. Financial Implications New Portobello High School The project to build a new Portobello High School is included in the Councils Capital Investment Programme, the existing project budget being 41.5m. Costs incurred to date to take the project to its current stage including provision for potential further legal costs are estimated to be approximately 2.5m leaving an estimated balance of 39m available. Due to the very competitive tender price which had been achieved from Balfour Beatty relating to the construction of the school on part of Portobello Park; after taking into consideration an appropriate provision for contingency and risk, significant savings of 8.6m were already expected within the existing budget. The total costs of delivering the school on part of Portobello Park were estimated to be 32.9m. The additional compensatory measures which it has been recommended now be included within the proposal to build a new Portobello High School on part of Portobello Park would have the following financial impact: (i) The cost to deliver the project would increase by the extent of any works required to convert the remaining site to open space. The costs can only be assessed with any certainty once the final proposals have been determined however, as an estimate, the cost of converting the site to 24
3.10.6
3.10.7
3.10.8
4 4.1 4.1.1
4.1.2
4.1.3
grass and including fencing, lighting and a small play park (essentially the same as at Portobello Park) would be up to an estimated 650,000. (ii) The loss of a potential capital receipt from the disposal of the existing site of approximately 3.5m would not have a direct impact on the project budget for the delivery of a new Portobello High School. However, this anticipated receipt had been identified for other purposes, mainly the part funding required for a new St Johns RC Primary School. The headroom within the existing Portobello budget could, however, be available for that purpose. 4.1.4 The cost of any alternative proposals to deliver the new Portobello High School will require detailed consideration and will be very much dependent on the approach adopted and, in particular, the site and any associated acquisition and/or abnormal costs which may arise as a consequence. The project budget which remains would have to absorb any design and other professional fees associated with any new proposal and the actual construction costs might be higher than the very competitive position which resulted from the last procurement process. Indeed, the design for the school on an alternative site would inevitably be different in any event which would have an impact on construction costs. Similarly, other sites may carry significant acquisition and/or abnormal costs. Whilst the acquisition cost of alternative sites cannot be established with any certainty, assuming a cost of 0.5m per acre, or 1.2m per hectare, the cost of a 4.5 hectare site would be in the order of 5.4m with the cost of a 2.8 hectare site being in the order of 3.4m. However, there is a fair degree of headroom within the budget to deal with any such new costs and potential variations. Taking the costs to deliver a school on Portobello Park of 32.9m as a proxy, this would leave a balance of 6.1m against the remaining project budget. What is, however, clear is that if any option were to be progressed which involved the necessity for an off-site decant, the additional project costs which would arise only through this option would be very significant (estimated to be 7.5m for temporary accommodation alone over the period of a few years excluding any provision for transport and other costs) and would have to be funded from revenue budgets within which there is currently no provision for any such costs. Combined Portobello and Castlebrae School A combined school is estimated to have a capacity of around 2,200. Initial analysis has suggested that a capacity of 1,670 could accommodate pupils to 2020. The capacity requirement would shift over time which would suggest a phased approach to construction with an initial core size and an associated expansion strategy might be an option to ensure that the capacity of the school is right-sized over time to meet catchment demand. However, 25
4.1.5
4.1.6
4.1.7
4.1.8
4.2 4.2.1 4.2.2
such an approach would constrain the design, be more expensive in the long term and result in disruption on the site over time when future building extensions and/or adaptations were required. 4.2.3 The alternative approach would be to build a larger school from the outset than is required to meet the expected catchment demand up to 2020 however that would require a considerably higher initial financial outlay. This would require further detailed consideration. The Council has no experience of building schools of this size therefore we have drawn from the programme metrics which the Scottish Government would apply for a school of this size which are 10m2/pupil and a base cost of 1,900/m2 as at Q2 2011. For recent secondary school projects we have found that the Scottish Government space metric is slightly insufficient to meet the accommodation requirements therefore a slightly higher metric of 10.4m2/pupil has been assumed. For a school with a capacity of 2,200 this would equate to a projected total cost of 43.472m (1,900/m2 x 10.4m2/pupil x 2,200) to which the estimated cost of a swimming pool of 2m would have to be added giving a total of 45.472m. Estimated construction inflation would also have to be added using a base date of Q2 2011 and an assumed construction start date of February 2015, which would result in a gross projected cost of approximately 46.3m. If a phased approach to construction was taken, the initial outlay would be lower however the overall cost, over time, would be higher due to the inefficiency of building in a phased way and the impact of inflation. The estimated initial cost for a school with a capacity of 1,670 would be 36.172m (1,900/m2 x 11.4m2/pupil x 1,670) to which the estimated cost of a swimming pool of 2m would have to be added giving a total of 38.172m. Estimated construction inflation would also have to be added using a base date of Q2 2011 and an assumed construction start date of February 2015, which would result in a gross projected cost of approximately 38.9m. These costs exclude any acquisition and/or abnormal costs which may be associated with any site. For a site other than in the Craigmillar area, whilst the acquisition cost cannot be established with any certainty, assuming a cost of 0.5m per acre, or 1.2m per hectare, the cost of a 6.5 hectare site would be in the order of 7.8m. The funding for a stand-alone new Castlebrae Community High School in Craigmillar is expected to come from a combination of Council funding and from PARC from the Craigmillar town centre regeneration initiative. The level of funding, and when it would be available, has yet to be determined and, were this option to be progressed, the level of funding would inevitably be significantly reduced if the site were to be in the Craigmillar Town Centre due to the larger land take required.
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
26
4.3
New St Johns RC Primary School Cost of New Build on Portobello High School Site
4.3.1
The costs of delivering a new build school on part of the existing Portobello High School site once it was vacated are estimated to be 8.923m (as shown in Appendix 6) of which an estimated 4.424m would be provided by the Scottish Government leaving a balance to be met by the Council of 4.499m. Refurbishment and Extension
4.3.2
The costs of delivering a refurbishment of, and extension to, the existing buildings on the combined area comprising the schools existing site together with the pitch area currently used by Portobello High School are estimated to be 8.935m (as shown in Appendix 6) of which an estimated 4.424m would be provided by the Scottish Government leaving a balance to be met by the Council of 4.511m. The option for a new build on this extended site would have broadly the same financial implications. However, either of these options would require an off-site decant. The additional project costs which would arise as a result would be very significant (estimated to be 1.4m for temporary accommodation alone over the period of construction excluding any provision for transport and other costs) and would have to be funded from revenue budgets within which there is currently no provision. No additional funding support would be provided by the Scottish Government for these costs. Other Site Options
4.3.3
4.3.4
Any alternative proposals to deliver the new St Johns RC Primary School on a different site would require detailed consideration. Whilst the actual construction cost of the school is likely to be around the 9m estimated in the recent feasibility study; any other costs would be very much dependent on the approach adopted and, in particular, the site chosen and any associated acquisition and/or abnormal costs which may arise as a consequence. Whilst the acquisition cost of alternative sites cannot be established with any certainty, assuming a cost of 0.5m per acre, or 1.2m per hectare, the cost of a 1.3 hectare site would be in the order of 1.6m. The funding expected to be receivable from the Scottish Government would still be 4.424m however no additional funding would be available for any other costs which may arise relating to site acquisition, decant or any abnormal costs associated with the particular site e.g. if there was a requirement for the demolition of any existing buildings on the site. Sources of Funding
4.3.5
4.3.6
4.3.7
There is currently no funding for a new St Johns RC Primary School included in the Children and Families Capital Investment Programme. 27
4.3.8
Taking into consideration the funding receivable from the Scottish Government, the funding which would require to be met by the Council is approximately 4.5m (excluding any decant or site acquisition and/or abnormal costs). There are a number of potential sources for this funding: (i) (ii) Any balance remaining from the Portobello High School budget. If neither the option to build the new Portobello High School on Portobello Park or via a rebuild on the existing (extended) site is progressed then the capital receipt expected from the disposal of the excess land on the existing combined site is estimated as being approximately either 2.39m or 2.57m depending on the option (in each case calculated as being the anticipated gross receipt less 1m required as under-pinning the Children and Families Capital Investment Programme). Future funding allocated to the Wave 3 Programme within the Children and Families Capital Investment Programme. The Acting Director of Finance has advised that the forecast 7m which is allocated in the 10 year capital investment programme in 2016/17 remains earmarked for Wave 3 but is obviously subject to the approval of Council during the budget process in February 2013.
(iii)
4.3.9
It is considered feasible that the funding required from the Council to deliver a new St Johns RC Primary School could be accommodated through a combination of the options identified above. The only potential issue which may arise was the extent to which a deficit may arise in the funding required for a new Portobello High School where the costs of delivering the project in a different way could not be accommodated from the headroom which exists in the existing budget for that project. Essential Improvement, Repair and Maintenance Works When Council considered the matter of the Wave 3 schools replacement programme in December 2008; in addition to agreeing that Portobello High School be progressed as the first project for replacement it was agreed that investment in essential improvement works were necessary at all five schools within the Wave 3 programme. The costs incurred to date on these essential improvement works at Portobello High School are 2.025m however, with the delay to the delivery of the new school, it is necessary to review the position again and establish what further works might be required. The continued poor condition of the school has been very recently exemplified by its closure for a day as a result of roof damage. It is not possible at this point to quantify what further costs would be required to maintain the school going forward; this is now being assessed in consultation with the school and an updated condition survey to facilitate this has been requested. Once the scale and costs of any works required has been assessed, consideration will be given to how these will be funded. 28
4.4 4.4.1
4.4.2
4.4.3
5 5.1 6 6.1 7 7.1
Equalities Impact The implications have been taken into consideration during the project development and procurement stages. Environmental Impact Environmental Impact Assessments were submitted as an integral part of the Planning Application and were considered and approved within this process. Conclusions The existing Portobello High School needs to be replaced as a matter of priority and every effort should be made to ensure this is achieved at the earliest opportunity. The approved location for the new Portobello High School on part of Portobello Park remains by far the best option in, or around, the catchment area for the new school. The funding for the project is in place, planning permission secured, the appropriation of the land at Portobello Park approved and a preferred contractor identified and approved at a very competitive tender price. The recent outcome from the appeal hearing has created a legal impediment to delivering a new school on Portobello Park. A range of legal options have been identified which may have the effect of removing this legal impediment and will be progressed. In order that the Council maintains an overview of all reasonable alternatives, consideration has been given to what alternative site options could be available in the event that the option of building the new Portobello High School on Portobello Park does not, ultimately, prove to be possible. The recent announcement of funding support from the Scottish Government for the delivery of a new St Johns RC Primary School provides the opportunity to progress this much needed project. The former Scottish Power site at Baileyfield has been identified as one of few alternative options and this is now in the process of being marketed for sale by the owner. In view of the time constraint this places on the consideration of this option and the requirement to act quickly as it is a limited window of opportunity; it is proposed to consider this, and other options, in more detail and seek informal feedback from the school communities in advance of taking a further report to Council on 22 November. The next report to Council will recommend what steps, if any, should be taken regarding any proposed purchase of the former Scottish Power site at Baileyfield for either a new Portobello High School or a new St Johns RC Primary School.
7.2
7.3
7.4
7.5
7.6
7.7
29
8 8.1
Recommendations It is recommended that the Council: a) b) notes the contents of this report and the latest position relating to the progress of the project and the associated legal challenge; reaffirms the view that the site on part of Portobello Park still remains the preferred location for a new Portobello High School and endorses the actions which are either intended, or have already been taken, that may achieve this objective as set out in this report; approves the actions and recommended next steps regarding the pursuit of legal options and the recommended changes to the compensatory provisions associated with the project to build a new Portobello High School on part of Portobello Park, as set out in paragraph 3.1.26 of this report; welcomes the funding support provided by the Scottish Government towards the delivery of a new St Johns RC Primary School; and notes the progress made regarding the consideration of alternative site options for both a new Portobello High School and a new St Johns RC Primary School and the intention to seek informal feedback from the respective school communities in advance of taking a further paper to Council on 22 November 2012 regarding what steps, if any, should be taken regarding any proposed purchase of the former Scottish Power site at Baileyfield for either a new Portobello High School or a new St Johns RC Primary School.
c)
d) e)
Gillian Tee Director, Children and Families
Appendices
1 2 3 4 5 6
Project History Alternative Site Options for a new Portobello High School Site Appraisal - Options for a new Portobello High school Rebuild of Portobello High School on Existing Site Potential Combined School for Portobello and Craigmillar New St Johns RC Primary School - Feasibility Study
Contact/tel/Em Billy MacIntyre Tel. No. 469-3366 ail e-mail: billy.macintyre@edinburgh.gov.uk Wards affected Single Outcome Agreement 14 Craigentinny/Duddingston; 17 Portobello/Craigmillar Supports National Outcome 4 Our young people are successful learners, confident individuals, effective contributors and responsible citizens. 30
Background Papers
Castlebrae Community High School: Consultation on Option for Closure - Education, Children and Families Committee Report, 9 October 2012 The New Portobello High School - Council Report, 26 April 2012 The New Portobello High School - Council Report, 22 September 2011 Update on Major Projects - Education, Children and Families Committee Report, 21 June 2011 Capital Investment Programme - Council Report, 10 February 2011 Portobello High School - Council Report, 11 March 2010 Wave 3 Schools - Council Report, 12 March 2009 Wave 3 Schools - Council Report, 18 December 2008 Wave 3 Business Case Report - Council Report, 26 June 2008 Consultations on Site Options for the Replacement of Portobello High School - Council Report, 21 December 2006
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Appendix 1 Project History 1 1.1 Introduction The project to deliver a new Portobello High School has already been a very long and complex process. Whilst the detail can be seen in the previous Council reports on the subject, the following represents a summary of the history of the project and the associated legal challenge. Delivery of a new school on Portobello Park During 2006 an extensive and comprehensive assessment was undertaken of any potential sites in, and around, the school catchment area for a new Portobello High School and St Johns RC Primary School considering factors such as site size, accessibility from the school catchments, site assembly and ownership constraints and any technical and design issues. As a result of this exercise three potential options for a new High School were short-listed and taken forward as the subject of a full education statutory consultation. These were as follows: 2.3 New High School on the existing site (incorporating St Johns RC Primary School); New High School on Portobello Golf Course; and New High School on Portobello Park.
2 2.1
2.2
In respect of the replacement of St Johns RC Primary School the same three sites were identified for consultation along with a fourth option; to build a new school on Bingham Park. During the subsequent consultation process this fourth option made no public impact and other, better located, options took precedence from a community perspective. On 21 December 2006 Council approved Portobello Park as the preferred location for the new Portobello High School and a rebuild within the existing Portobello High School site as the preferred location for a new St Johns RC Primary School. On 18 December 2008 Council approved the replacement of Portobello High School as the first project in the Wave 3 Schools Programme and the school in greatest need of replacement. In February 2009, funding was confirmed in the Councils Capital Investment Programme and the project was progressed. The educational vision was established with the school through the production of a Strategic Educational Design Brief which informed the physical aspects of the design which was then developed. In approving Portobello Park as the location for the new Portobello High School; Council did so subject to a number of conditions all of which were 32
2.4
2.5
2.6
covered in subsequent reports, concluding with the revised approach to open space compensation approved by Council on 11 March 2010. 2.7 As part of the planning application process, the original feasibility study regarding potential sites in, and around, the catchment area was updated and an investigation undertaken regarding any changes which had occurred in the intervening period. The report in June 2010, which formed part of the formal planning application submission for the new school, concluded that the overall position remained unchanged from that undertaken in 2006. The planning application was advanced through an extensive pre-planning consultation and engagement process with the local community and key stakeholders resulting in the granting of Planning Permission on 24 February 2011. The full OJEU procurement process for the construction contractor started in December 2010. Following a comprehensive procurement and selection process in full compliance with procurement legislation, the most economically advantageous tender was considered to be that from Balfour Beatty in the sum of 26,114,107. Balfour Beatty achieved the highest overall score and also the highest individual scores for both quality and price. The prevailing market conditions produced an extremely competitive tender value. Shortly after the completion of the tender evaluation process, a petition for Judicial Review was submitted to the Court of Session questioning the Councils legal ability to use the proposed site at Portobello Park. This required a review of project risks and consideration of the most appropriate next steps. In order to mitigate the risks going forward, Balfour Beatty was formally approached by the Procurement Team to consider extending the tender acceptance period to ensure the very favourable outcome from the procurement process could be preserved whilst allowing time during which it was hoped that the legal challenge could be dealt with before Council committed to the full construction contract. The resulting confirmation of this extension allowed the procurement process to complete. The contract price, quality and all other contract terms remained unchanged with only the tender acceptance period being extended. On 22 September 2011 Council approved the recommendation that Balfour Beatty be approved as the preferred contractor and be awarded the contract, with the actual timing of the award of the contract requiring the further approval of Council at an appropriate future date. The history of the legal challenge is described in more detail in section 3 below. Following the successful conclusion of the initial legal challenge; at its meeting on 26 April 2012 Council: (i) noted the outcome of, and approved the responses to, the consultation exercise under the Town and Country Planning (Scotland) Act 1959;
2.8
2.9
2.10
2.11
2.12
2.13
33
(ii)
approved the appropriation of the land at Portobello Park for use as the site of the new Portobello High School under the powers available within both the Local Government (Scotland) Act 1973 and section 20 of the Local Government in Scotland Act 2003; approved the acceptance of the tender from Balfour Beatty as the principal construction contractor for the new school, on the condition that the existing appeal be first successfully concluded in favour of the Council or withdrawn; in each case to the satisfaction of the Chief Executive in consultation with the Director of Children and Families and Director of Corporate Governance; and
(iii)
(iv) Delegated the authority to take the decision on this matter to the Chief Executive in consultation with the Director of Children and Families and Director of Corporate Governance. 3 3.1 Legal Challenge Since the project was first approved by Council the threat of legal challenge has existed from a local action group, Portobello Park Action Group Association (PPAG), challenging the Councils legal right to use part of Portobello Park as the site for the new school. At the Council meeting on 18 December 2008 when the project was approved PPAG intimated their intention to submit a legal challenge. No formal action was taken by PPAG until March 2011 when they wrote to the Council's Head of Legal Services suggesting a joint court action. It was the considerable period of time between the project being approved (and PPAG having first intimated their intention to proceed with a legal challenge) and there being any suggestion of legal action actually being initiated which precipitated the Councils later assertion to the Outer House of the Court of Session during the initial hearing that the subsequent petition be dismissed due to excessive delay. On 11 April 2011 the Council confirmed that they had counsel's opinion, and stated: "The Council is of opinion that there is no requirement for it to obtain the court's consent for its proposed use of the park, in terms of the Local Government (Scotland) Act 1973 and there is not any mechanism for obtaining such consent in the circumstances currently envisaged. As such, we would not be willing to enter into any kind of joint approach to the courts in this regard." A few months later, on 6 July 2011 PPAG sent the Council an e-mail advising that they were proceeding with a judicial review and, on 14 July 2011, PPAGs solicitors sent a copy petition to the Council, asking for their undertaking not to commence building works. The petition was lodged with the Court of Session on 9 August 2011. The petition was heard in the Outer House of the Court of Session over three days in January and February 2012. On 7 March 2012, the Court of Session published the Opinion of Lady Dorrian, finding in the Councils favour http://www.scotcourts.gov.uk/opinions/2012CSOH38.html. 34
3.2
3.3
3.4
3.5
3.6
3.7
Lady Dorrian found that there had been a considerable delay in bringing the petition and the Councils first plea-in-law that the petition from PPAG should be dismissed on grounds of mora, taciturnity and acquiescence (delay) was upheld. In addition to dismissing the petition on these grounds, Lady Dorrian also expressed her obiter views on the merits of the case, concluding that the Council did have the power to appropriate inalienable common good land under the Local Government (Scotland) Act 1973. This judgment therefore supported the position adopted by the Council since December 2008. The Rules of Court make provision for an appeal to be made to the Inner House against an opinion of the Outer House of the Court of Session. Any appeal had to be submitted by 28 March 2012; this being 21 days from the publication of the original judgment. The solicitors acting for the Council were advised on 27 March 2012 that a Reclaiming Motion was to be enroled in Court that afternoon i.e. lodging an appeal against the Outer House decision. PPAG were advised that the Council would use all measures at its disposal to rigorously defend against this appeal and a motion was submitted by the Council to the Court for urgent disposal of the appeal; this was heard in the Court of Session on 10 April 2012. The Court accepted the necessity for urgency in this matter and agreed that the appeal hearing would be held in late May being the earliest date that sufficient time was available in the Court diary. The appeal was heard in the Inner House of the Court of Session on 23 and 24 May 2012 during which the Court, in response to PPAGs request that the Court reviewed the decision taken by the Council in April 2012, also considered the right of the Council to appropriate the land at Portobello Park under the powers contained within the Local Government in Scotland Act 2003. On 12 September 2012, the Opinion of the Inner House relating to the appeal was published http://www.scotcourts.gov.uk/opinions/2012CSIH69.html. The Inner House of the Court of Session found in PPAGs favour on the delay point and concluded that the Council could not appropriate the land on part of Portobello Park under either the Local Government (Scotland) Act 1973 or the Local Government in Scotland Act 2003.
3.8
3.9
3.10
3.11
3.12
3.13
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Appendix 2 Alternative Site Options for a New Portobello High School 1 1.1 Existing School Site The existing site for Portobello High School extends to 2.79 hectares and is adjoined by St Johns RC Primary School which extends to a further 0.67 hectares. The combined site extends to approximately 3.46 hectares. The existing school, completed in 1964, is set out in eight separate buildings. The main teaching accommodation is a multi-storey tower block. The remainder is housed in a two to three storey annex along with more recent additions for games and dining facilities. Size of Site Required The size of site for any new (or replacement) school is prescribed in the School Premises (General Requirements and Standards) (Scotland) Regulations 1967. For a new Portobello High School with a roll of 1,400, the total site size should be 6.8 hectares comprising two elements for which the appropriate sizes are defined separately: 1. 2. 2.2 A main school site on which the actual school buildings are located of not less than 2.8 hectares; and An area for playing fields of not less than 4.0 hectares.
1.2
2 2.1
In certain circumstances, a smaller site area for either element can be provided with the consent of the Scottish Government subject to it being agreed that it would be impractical or unreasonable to apply the standards within the legislation. The regulations do not actually require that playing fields (or pitches) are adjacent to the actual school building but that they are available to the school i.e. could be elsewhere and off-site. It should also be noted that the playing fields areas stipulated in the 1967 regulations pre-dated the introduction of synthetic playing surfaces. By providing full-sized all weather pitches, significantly greater functionality and availability can now be offered than a grass area of greater size. This is an approach very much supported by sportscotland so there should be no perception of any reduction in area being a deficit in the amount of space which is necessary, usable and appropriate. In Edinburgh there are many schools where the maximum prescribed areas for playing fields are not met however the city complies with the regulations by virtue of the extensive alternative pitch provision which is available to schools throughout the city (such as Cavalry Park, Meggetland and Kirkbrae). Taking the area of such off-site facilities into consideration the area available more 36
2.3
2.4
2.5
than exceeds the minimum requirement. The position at Portobello is no different. 2.6 The following configuration options could deliver a dedicated high school building site of a minimum of 2.8 hectares (or lower subject to this being feasible and any proposal having the consent of the Scottish Government) with pitches being available to the school through either: (i) no pitches being adjacent to the school with provision being elsewhere in the area through off-site facilities (perhaps all or, in part, through new provision); a single pitch being adjacent to the school supplemented by off-site facilities (again, perhaps through new provision); or two pitches being adjacent to the school; considered to be very much the preferred and optimum scenario and that which is the design proposition for the new school on part of Portobello Park.
(ii) (iii)
3 3.1
Previous Consideration of Site Options In August 2006 Smith Scott Mullan Associates completed a feasibility study which considered potential site options in, and around, the Portobello catchment area and evaluated their suitability for a new Portobello High School together with a number of sites for the possible re-location of St Johns RC Primary School. The sites were subject to a detailed assessment based on a range of relevant criteria including educational, technical, ownership and planning considerations. In light of the difficulties of finding a site in the area which would extend to a full 6.8 hectares, a target site size of 4.5 hectares was set to allow for one allweather pitch on-site. This was, and remains, very much a target and the actual requirement for any site would need to be subject to a detailed specific assessment taking into consideration factors such as site topography and any building height restrictions due to adjacent properties or protected views; however it remains a reasonable baseline to use. The study investigated the suitability of 15 sites (including three for the potential re-location of St Johns RC Primary School) most of which were considered to be unsuitable for a variety of reasons including being too small, being poorly located, not being in Council ownership and subsequently being too expensive to deliver or would face planning difficulties. Three options were taken forward for statutory consultation being new build on the existing site (in combination with the St Johns site); a new build on Portobello Golf Course and new build on Portobello Park which was ultimately approved by Council in December 2006. The project to build a new school on Portobello Park was initiated in December 2008 when Council approved it as the first priority for replacement in the Wave 3 school replacement programme. 37
3.2
3.3
3.4
3.5
3.6
In June 2010, as part of the planning application process, Smith Scott Mullan Associates were commissioned to update the original feasibility study on potential sites in, and around, the catchment area and to investigate any changes which had occurred in the intervening period. Their report, which formed part of the formal planning application submission for the new school, concluded that Although we identified a number of changes which had occurred to the sites over an almost four year period, our conclusion from this process was that none of these had altered the fundamental position stated in our initial report. The June 2010 report includes a great deal of detail regarding the sites considered and the assessment of their suitability; the details are not replicated here however the full report can be accessed through the following link https://citydev-portal.edinburgh.gov.uk/portal/getEdmDoc?docid=532672371 Alternative Site Options Whilst the site at Portobello Park remains by far the best available for a new Portobello High School in, or around, the catchment area; in light of the outcome of the recent appeal to the Court of Session, consideration has been given to what other options may exist now recognising that any alternative would represent a significant compromise by comparison. In the limited time available, a review has been undertaken of the area using the June 2010 report as the baseline point of reference. The previously identified sites have been reviewed and any changes in the interim assessed. A mapping of these sites, together with an identification of any changes in circumstances in the intervening period, is shown in Appendix 3. This assessment has re-considered the issues with each site which prevailed in June 2010 and has also taken into consideration informal feedback from Planning. New Sites
3.7
4 4.1
4.2
4.3
4.4
The Council Estates team has also undertaken a search for any new potential sites in the area. Only one has been identified which is the Big W site located between the A1 Milton Link. The site is 2.76 hectares and, therefore, slightly smaller than the existing school site and well below the target site size. This site is sandwiched between the A1 and the East Coast main line railway and is a long, rectangular area running north-south with road access from a roundabout on the A1 at the southern end. Pedestrian routes and general accessibility is constrained as is only available through two underpasses beneath the A1 from the main catchment area to the west and north plus a route across the railway footbridge from the east. No bus routes directly serve the site and the location and access is considered to be poor. For these reasons, this site was discounted. Several other options which are not existing, or obvious, sites were highlighted in the press or local social media and were considered but discounted due 38
4.5
4.6
primarily to either the excessive complexity which would be involved and the time and cost which would be associated with site assembly for those which would involve the displacement of many existing, established businesses. 5 5.1 Re-build on Existing Site Included at Appendix 4 is a study which takes the footprint of the intended school design at Portobello Park and overlays this on the existing school site; the current secondary school and primary school sites are shown by dotted red-lines. Whilst the final design of a school on the existing site would inevitably be different, this clearly shows that the existing (even combined) site is far too small to incorporate the design and full range of facilities planned for Portobello Park. Whilst the sites are obviously different in nature and a different design would be required; the massing of the building form should be fairly comparable as the permissible maximum height for any new build on the existing site is expected to be three storeys which is similar to that for the existing design for a school on part of Portobello Park. Whilst a detailed feasibility study is required to consider the option of re-build on the existing site in more detail, the following general conclusions can be drawn: Whilst a new secondary school could probably be accommodated on the existing secondary school site, this would not permit the inclusion of even a single all-weather pitch or allow for the desired expansion of St Johns RC Primary School. A new secondary school and a single pitch could possibly be accommodated on the combined existing site however that would still be a tight site and would require St Johns RC Primary School to be relocated to another site.
5.2
5.3
5.4
The costs of delivering a new Portobello High School on the existing site would be very much dependent on the design. Options such as the potential refurbishment of the existing building, or retention of the more recently completed sports halls as part of a new school on the existing site, require detailed consideration and assessment. Decant Any option to re-build on the existing site would potentially require an off-site decant which would entail significant challenges and a potentially negative impact; would require the identification of an appropriate off-site location and would entail significant additional revenue costs. The costs associated with decant would require detailed assessment however, for illustrative purposes, the costs associated with the installation and rental of temporary accommodation alone for 16,000m2 over a period of 24 months are 39
6 6.1
6.2
estimated to be 7.5m. This excludes any provision for transport and other costs which may arise such as the rental of any site not in Council ownership. 6.3 The costs associated with any decant could be reduced considerably if there was any suitable alternative accommodation within a reasonable distance from the existing school site. One potential option could be the use of the existing Castlebrae Community High School building regarding which a statutory consultation is due to commence shortly regarding its potential closure at the end of the 2012/13 school year. The conclusion and final decision from this process will not, however, be known until the end of April 2013 therefore the availability of such an option could not be presumed. In addition, the capacity of Castlebrae Community High School of 700 (including 100 for vocational places), is considerably lower than the Portobello school roll. Were this option to be available and to be contemplated, consideration would have to be given to how, and where, any additional accommodation would be provided either adjacent to Castlebrae or elsewhere; perhaps adopting a split site arrangement between the upper and lower school as has been required for the decant of James Gillespies High School. A feasibility study was undertaken in 2003 by Atkins which looked at several new build options for a new school on the existing site and also ways in which a phased build programme could be undertaken to allow an on-site decant to be progressed. This involved a combination of some temporary accommodation being located on the site but the overall requirement being reduced by adopting a phased approach to the new build and gradually deploying staff and pupils into parts of the new building on completion. Whilst this feasibility study did conclude that such options were possible there are significant doubts regarding whether this would actually be achievable or deliverable. Such an approach would, if feasible, probably reduce the additional cost of temporary accommodation and the necessity for an off-site decant site. However, this would introduce significant risks to the project and would inevitably compromise the design as this would have to be capable of delivery in a specifically phased way. A phased approach would also prolong the construction period by potentially an additional year, further exacerbating the disruption to operating a school on-site for the duration of the project. There are also factors used in the original Atkins study which are inconsistent with the current approach to the school. The original study allowed no space for the necessary expansion of St Johns RC Primary School (from its current very constrained site) and was based on an area of either 14,600m2 or 15,200m2 (two options were identified) compared with the area identified for the current new school of around 17,000m2. If such an option were to be contemplated as being worthy of further consideration, an updated detailed feasibility assessment would require to be undertaken and this would be based on the entire existing site incorporating the area currently occupied by St Johns RC Primary School.
6.4
6.5
6.6
6.7
6.8
40
7 7.1
Statutory Consultation Requirements In the event that any change is proposed to the previously agreed and approved site for a new school on part of Portobello Park, a new statutory consultation process under the Schools (Consultation) (Scotland) Act 2010 would require to be undertaken. This would apply to any new site and also for any intended off-site decant site were a re-build on the existing school site to be proposed for consideration. There are prescribed timescales and processes which apply in these circumstances which would result in this taking a period of six months as was the case when this was undertaken recently for proposals in respect of a new Boroughmuir High School. On 9 October 2012 the Education, Children and Families Committee approved a recommendation to consult on the proposed closure of Castlebrae Community High School with effect from the end of the 2012/13 school year. This proposal is based on changing the non-denominational catchment area for the Castlebrae area (with the exception of Prestonfield which would be assigned solely to Liberton High School) to Portobello High School. If the recommendation to consult on potential closure is approved, and any proposal to close the school was ultimately agreed by Council, the final decision would not be realised until the end of April 2013. During this period, although the outcome of any consultation process regarding closure would not be concluded, it is likely that any consultation regarding potential new site (or decant) options for Portobello would require to be undertaken. The legislation requires us to consult with anyone affected within two years of any proposal being implemented which would suggest we would also have to consult with those within most of the Castlebrae catchment area which could be amended (to Portobello) were the school to close. This would not be to prejudge the outcome of the separate consultation process relating to the potential closure of Castlebrae Community High School however could obviously be perceived as doing so.
7.2
7.3
7.4
7.5
41
Appendix 3 Site Appraisal Options for a new Portobello High School 1. 1.1 Site Mapping The mapping of the various sites in the area which were identified originally in 2006 and, most recently updated in June 2010, is shown in the following map.
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2 2.1
Site Appraisal The text from the last feasibility report updated in June 2010 is shown below with any changes which have been identified in the intervening period being shown in italics.
Site Site 1 (a) (b) Portobello High School and St Johns Primary School. Site area: 3.5 HA Appraisal The high school site on its own was too small to deliver the specification for the new high school. A combination of the high school and primary school sites would still fall short of the anticipated site of 4.5 HA but could provide opportunities to deliver a school and an all weather pitch. This site was therefore taken forward for detailed analysis and subsequently it was agreed should be one of the original consultation proposals. Update : No change to appraisal Both sites were considered central to the catchment area. Pitch site more accessible due to location on main road. Both sites were taken forward for detailed Stage 2 analysis and subsequently it was agreed both should be considered individually as consultation proposals. Update: Regarding 2(a), The Golf Course, this is one of the Parks and Open Spaces which may potentially be dedicated as a Diamond Jubilee Field. Area 2(b) remains the Councils preferred site. The Bingham Park Area sites were poorly located in relation to the catchment area and access was difficult given the narrow streets leading there, creating potential traffic issues. For these reasons these sites were discounted. The closure of Lismore Primary School has made the available site around 1HA larger however the issues of location and accessibility remain. Update: For 3(a) and 3(b) there has been no change. For 3(c) the former Lismore Primary School has subsequently been demolished and the site selected as the location for the replacement Seaview Respite Centre which is currently under construction. Too small with difficult pedestrian and vehicular access. Also unlikely that planning permission would be granted for school use as it had been identified in the local plan as a business and industry area. Update : No change Discounted due to insurmountable planning issues. The greenbelt, nature conservation and designed landscape designations meant the only remaining developable area was utilised for the new Holy Rood High School. Site also poorly located on the periphery of the catchment area. Update: No change regarding the potential for a secondary school however, whilst there may be some associated planning risks, a potential option for St Johns RC Primary School requires further investigation and has not been discounted.
Site 2 (a) (b) Portobello Park Area 1 (golf course) and Area 2 (pitches) Site area: 19 HA
Site 3 (a) (b) (c) Bingham Park Area 1 (Lismore playing fields) and Area 2. A further assessment to consider the further extension of the site was made following the closure of Lismore Primary School. Site area: 6.8 HA Site 4 Freightliner Terminal Site area: 2.9 HA
Site 5 Cavalry Park Site area: 14.9 HA
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Site Site 6 (a) (b) Baileyfield (BLD Developments) formerly Scottish Power and Baileyfield (Standard Life) Site area: 7.6 HA
Appraisal The BLD development site on its own was too small but if the Standard Life site was included it would be big enough. However the cost of acquiring these sites, including the disturbance claims resulting from the relocation of businesses would have been extremely costly and alternative locations required for the businesses. These costs mean this site was not deemed feasible or deliverable and was therefore discounted. Update: Regarding 6(a) the site is now for sale and is being considered with an option appraisal and feasibility study underway. Regarding 6(b) no change other than the potential for Baileyfield depot site to be used being explored. Poorly related to the catchment area, located on the southernmost boundary. Its development would also lead to the loss of a significant proportion of existing open space in the area. The site itself has flooding issues and its development would require the relocation of sewers crossing the site. Update: The advice from the hydraulic modelling of the area confirms the risk of flooding and the recommendation not to consider this area as a development site. Discounted as too small for the high school. Update: No change overall, potential for link to Site 6(a) as a way of potentially meeting some of the sports requirements (albeit only through 5-a-side pitches) is being evaluated. The depot size on its own is too small for a school and to achieve this would require the purchase of the adjacent garage and workshop in ownership of the John Martin Group. The cost of purchase together with the disturbance allowances in relocating both businesses, assuming alternative sites could be found, would run into many millions. These sites were therefore discounted as being too costly and undeliverable. Update: No change. The site is outwith the catchment area and is unlikely to become available in the timeframe. Update: No change. Discounted as too small and outwith the catchment area. Update: No change. Discounted as unlikely to secure planning permission as release of further greenbelt land for development. Update: Planning Consent granted for housing to the south. The site is poorly located relative to the majority of the catchment population however due to the size of the site potentially available an option appraisal is underway to assess its potential and overall feasibility. The area potentially available is now larger as shown on the overall sites drawing in section 1. Discounted on the advice of planning given the international nature of conservation designations and the difficulties with construction. Update: No change.
Site 7 (a) (b) The Jewel Site area: 9.7 HA
Site 8 Powerleague Site area: 1.9 HA
Site 9 Marine Bus Garage Site area: 3.3 HA
Site 10 (a) Meadowbank Stadium Site area: 9.9 HA Site 10 (b) St Margarets House Site area: 0.8 HA Site 11 City Edge Greenbelt Site area: 5.8 HA
Site 15 Waterfront Site area: NA
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Appendix 4 Re-build of Portobello High School on Existing Site
45
Appendix 5 Potential Combined School for Portobello and Craigmillar 1 1.1 Introduction On 9 October 2012 the Education Children and Families Committee approved a recommendation to consult on the proposed closure of Castlebrae Community High School with effect from July 2013. Whilst there will be sufficient spare capacity in other secondary schools in the local area to 2020 to accommodate the expected demand for catchment places; it is anticipated that through a combination of the expected increase in secondary school rolls and the projected significant new housing development in Craigmillar, ultimately a new school will be required for the Craigmillar area. In the circumstances, the potential exists to create a single new school to accommodate both Portobello and Castlebrae catchment populations. This would be one of, if not the, largest secondary school in Scotland and there are educational, logistical, accessibility and financial factors to take into consideration which are assessed in detail below together with what site options might be available in the area to accommodate a school of this size. Projected Capacity The required capacity for a combined school will depend on a number of factors. The latest projected rolls for the two schools up to 2020 are shown below which have been based on a number of assumptions including the continuation of existing pupil patterns. The detailed assumptions are set out in the Report to the Education Children and Families Committee on 9 October 2012.
Year 2013 2014 2015 2016 2017 2018 2019 2020 Portobello Roll 1,251 1,218 1,189 1,165 1,164 1,176 1,191 1,211 CCHS Roll 174 164 158 161 183 209 237 273 Combined Total 1,426 1,382 1,349 1,328 1,348 1,385 1,428 1,484
1.2
1.3
2 2.1
2.2
2.3
Current stay-on rates at Portobello are around 90% at S5 and 75% at S6. Using these stay-on rates, the capacities of a new school and its corresponding intake limit would be as shown in the table below. Stay-on rates from the 46
Castlebrae population are lower however the majority of the cohort would be formed of Portobello pupils.
Intake 260 280 300 320 340 360 380 400 Capacity 1,450 1,560 1,670 1,785 1,900 2,010 2,120 2,230
2.4
A capacity of 1,560 could contain the rolls until 2020 with a corresponding intake limit of 280. However, the forecast rolls above are based on an assumption that a proportion of the existing catchment population in each area would attend schools other than their catchment school. This is particularly significant in Castlebrae which currently retains only 31% of its catchment population (albeit 15% already attend Portobello). The position is far less acute in Portobello. It is conceivable that the opening of a new combined school could change these existing patterns and result in a shift of the catchment population to the new combined school in the future. This has been considered, including the potential for the proportion of the catchment population attending local denominational secondary schools to come more into line with the city average; it is currently very high in the Castlebrae area by comparison. All things considered, a capacity of 1,670 (and an S1 intake of 300) would give greater certainty that pupils could be accommodated to 2020. The combined existing proposed capacity of the two school projects is 2,100 places (1,400 at Portobello and 700 at Castlebrae; the latter excluding the requirement which had been identified previously to also have the opportunity to expand capacity to 900 at a later date should that be required but including 100 vocational places). There is, however, a question regarding what effect the creation of a single school that no longer solely serves the individual areas would be. One would assume that a higher catchment population capture rate would be achieved from the Castlebrae area. New housing development in the Craigmillar area could eventually lead to the current Castlebrae catchment population rising to above 1,000 pupils. Assuming a 20% loss rate from that catchment population (to denominational and other schools) would equate to 800 pupils. Accordingly an ultimate combined pupil capacity of up to 2,200 may be required in the longer term and has been used as a working assumption.
2.5
2.6
2.7
47
2.8
Consideration of such factors is relevant in determining capacity and the size of site required. The shift in capacity requirement over time would suggest a phased approach to construction with an initial core size and an associated expansion strategy being sensible to ensure that the capacity of the school is right-sized over time to meet catchment demand. However, such an approach would constrain the design, be more expensive in the long term and result in disruption on the site over time when future building extensions were required. The alternative approach would be to build a larger school from the outset than is required to meet the expected catchment demand to around 2020 however that would require a considerably higher initial financial outlay. These issues would require further detailed consideration. Size of Site Required The size of site for any new (or replacement) school is prescribed in the School Premises (General Requirements and Standards) (Scotland) Regulations 1967. For a new combined Portobello and Craigmillar High School with a roll of an assumed 2,200, the total site size should be 9.2 hectares comprising two elements for which the appropriate sizes are defined separately: 1. A main school site on which the actual school buildings are located of not less than 3.6 hectares; and 2. An area for playing fields of not less than 5.6 hectares.
2.9
3 3.1
3.2
In certain circumstances, a smaller site area for either element can be provided with the consent of the Scottish Government subject to it being agreed that it would be impractical or unreasonable to apply the standards within the legislation. The regulations do not actually require that playing fields (or pitches) are adjacent to the actual school building but that they are available to the school i.e. could be elsewhere and off-site. It should also be noted that the playing fields areas stipulated in the 1967 regulations pre-dated the introduction of synthetic playing surfaces. By providing full-sized all weather pitches, significantly greater functionality and availability can now be offered than a grass area of greater size. This is an approach very much supported by sportscotland so there should be no perception of any reduction in area being a deficit in the amount of space which is necessary and appropriate. In Edinburgh there are many schools where the maximum areas for playing fields are not met however the city complies with the regulations by virtue of the extensive alternative pitch provision which is available to schools throughout the city. Taking the area of such off-site facilities into consideration the area available will more than exceed the minimum requirement. The position for a combined school would be no different.
3.3
3.4
3.5
48
3.6
The following configuration options could deliver a dedicated school building site of a minimum of 3.6 hectares (or lower subject to this being feasible and any proposal having the consent of the Scottish Government) with pitches being available to the school through either: (i) no pitches being adjacent to the school with provision being elsewhere in the area through off-site facilities (perhaps all or, in part, through new provision); or up to an estimated three pitches being adjacent to the school supplemented by off-site facilities (again, perhaps through new provision).
(ii)
3.7
As highlighted above, the minimum requirement is that set out for the school site (i.e. the building) and provision for pitches can be made off site. However, a hybrid size is recommended if we want to locate some pitches on site. Each full size pitch takes around 0.7 hectares therefore an additional 1.4 hectares (2 pitches) or 2.1 hectares (3 pitches) would be added to the immediate school site. For a combined school with three adjacent pitches this would result in a hybrid site size of 5.7 hectares. The actual requirement for any site would need to be subject to a detailed assessment of requirements taking into consideration factors such as site topography and any building height restrictions due to adjacent properties or protected views. However, for the purposes of considering options at this point a target site size of 6.5 hectares has been identified to allow a degree of headroom against the hybrid 5.7 hectares. Site Options Using a target site size of 6.5 hectares only two options have been identified in the general area which could accommodate a site of this size; these are both in the Castlebrae catchment area and are described in detail below. Brunstane Estate
3.8
4 4.1
4.2
Brunstane Estate, the location of which is broadly Site 11 in Appendix 3, is understood to have the potential to realise an area of sufficient size for a combined school. This requires further consideration and exemplification of any issues or site constraints and other factors such as accessibility all of which is currently being assessed in detail. Craigmillar Area
4.3
4.4
PARC has confirmed that there is the potential for a site of this size to be identified in the Craigmillar area as part of the town centre regeneration proposals. The existing master-plan for the regeneration of the area showed the school in a town centre location although planning permission for the school design was 49
4.5
never sought as the project was put on hold due to the economic down-turn. The existing site for the school and surrounding green area extended to 5.73 hectares. Adjacent housing plots within the existing master-plan could have further extended the area available. Whilst the area allocated to the school was only a fraction of this total, it was a much larger site due to a number of factors including:

The inclusion of other uses such as community library and a leisure/sports facility which were part of the brief at the time; Around half of the green area provided the grass pitch and green spaces that were to be "shared" by the community; and The school buildings had been designed generally as two-storey buildings but, in turn, the school was to share the car park at the proposed foodstore which, at the time, was intended more as general town centre parking than solely for food-store use.
4.6
PARC has advised they are currently considering the future direction for the regeneration of the Craigmillar town centre and that a new community high school remains a critical part of their master plan for the Craigmillar town centre. PARC is currently reviewing the bids of potential development partners who will be delivering the new town centre, and an announcement will be made on the preferred partner by early 2013. The intended location for a new school will form an integral part of any proposals. In the event that any change is proposed to the previously agreed and approved site for a new school, a new statutory consultation process under the Schools (Consultation) (Scotland) Act 2010 would be required. As part of the process of securing a joint venture partner to deliver the town centre vision; PARC have been doing so on the understanding that, whilst the various town centre uses are secured under the outline-planning of the existing master-plan, the locations of each of these uses are not and can be reviewed and revised as the master-plan and the business plan are developed. PARC has advised that, whilst an area of this size could be accommodated, no matter where the final site would be for such a combined school in the town centre area, it would be a significant development. In light of the potential physical size and intensity of use, consideration would have to be given to many factors including place-making, infrastructure, transportation and the impact on, as well as possible opportunity for, the local community. The implications of such a proposal would, however, require to be considered in far greater detail. One thing which is, however, clear at this point is that the additional land-take involved would inevitably have significant commercial implications in the business plan as this land would otherwise be earmarked for commercial and/or residential uses. More recently PARC has been working on the basis of an urban school in Craigmillar which would require a land-take more in the order of between 2.5 and 2.7 hectares. A combined school could have an additional requirement of up to a further 4 hectares. 50
4.7
4.8
4.9
5 5.1
Statutory Consultation Requirements In the event that such a proposal was to be considered, a statutory consultation process under the Schools (Consultation) (Scotland) Act 2010 would require to be undertaken with the Portobello and Castlebrae school communities and wider stakeholder interests in the respective areas. There are prescribed timescales and processes which apply in these circumstances which would result in this taking a period of approximately six months. Educational and Other Factors Consideration has been given to the educational and other factors associated with large schools however further more detailed assessment and research would be required to fully explore this as an option. The following represents an initial assessment. Context
5.2
6 6.1
6.2
The City of Edinburgh Council has not, historically, pursued a strategy which focuses on building large schools and has, instead, focused on building schools which are located within their communities. There are examples elsewhere in Scotland of large schools which are high performing and meet the needs of learners. Holyrood High School in Glasgow currently has 2,000 pupils (but has had up to 2,400 in the past) and there are two large schools in Fife - Bell Baxter High School (1,800 pupils) and Queen Anne High School (1,600 pupils). Curriculum
6.3
6.4
Larger schools are often perceived as being able to offer a greater range of curriculum options however all schools of between 1,000 and 1,200 pupils are able to offer the same choices. There is no obvious advantage in having a school of around 2,200 with regard to the curriculum. Within the City of Edinburgh, consortia arrangements exist for the delivery of senior school courses across neighbouring schools and curricular provision will be strengthened as we move to full implementation of the Senior Phase of Curriculum for Excellence. The provision offered by the new Edinburgh College will also contribute to the Senior Phase delivery. There is no obvious curriculum area which we are not currently able to offer in our schools or through consortia approaches already being operated. Learning and Teaching
6.5
6.6
There is educational research to suggest that the optimal size for a secondary school is between 600 and 1,600 pupils. It is not impossible to have a successful school which is larger than this however it is more difficult. 51
6.7
It can also be disruptive to learning and teaching if the school building is spread out over a large physical area where, for each period change in a secondary school, there is a loss of teaching time of more than 5 minutes. Pastoral Care
6.8
A large school would have appropriate pupil support staffing ratios. Pupil Support staff are likely to have a caseload of between 200 and 250 pupils as is the case across the city at present and so there are no obvious disadvantages in delivering an appropriate level of pastoral care within a large school. There are potential disadvantages in terms of perception that, in a very large school, pupils would not be seen as individuals nor known to staff. In the case of pastoral support this would not be the case given the Pupil Support staffing ratios however a very large school would have to ensure that there were a range of measures in place in order that young people felt safe and knew what staff they could approach. It is also likely that within a very large school, pupils would be organised into cohorts so that there are schools within the overall school e.g. a year group cohort of 400 pupils or a House group of between 500 and 600 pupils. In Holyrood High School in Glasgow, Pupil Support is delivered in a horizontal Pupil Support structure as opposed to a vertical structure. This means that there are two Pupil Support staff for a year group cohort of 400 and a Depute Head Teacher who fulfils the role of Year Head. In the City of Edinburgh it is considered best practice to have vertical structures as is the case in the majority of our schools where pupils across all year stages are organised into Houses with associated Pupil Support staff and a Depute Head Teacher as House Head. Young people stay within this House or family for their whole school experience from S1 onwards. This has the advantage of forming strong links with the family and is easier for parents to get to know key staff who will be involved with all of their children as they move through the school as opposed to the horizontal structure where pupils are passed on an annual basis to different Pupil Support staff and a different Year Head requiring considerable information transition towards the end of each session. Number of Teaching Staff
6.9
6.10
6.11
6.12
6.13
In very large schools, there are likely to be around 200 teaching staff. A disadvantage for pupils is that it is highly unlikely that all staff will know all children. The advantages of having a greater number of staff in terms of staff professional development are not strong within the context of the City of Edinburgh where we regularly collaborate with staff within our schools, within Clusters, within Neighbourhoods and at city wide level given the ease of travel within a city as opposed to a more geographical rural area.
52
Promoted Staff 6.14 With the exception of having only one Head Teacher, it is not obvious that there would be any less promoted staff when considering promoted posts within a very large school. In the case of Holyrood High School in Glasgow there are seven Depute Head Teachers and in most faculty/subject departments there are two Principal Teachers or Curriculum leaders. Ethos 6.15 There is the potential for there to be a greater range of extra-curricular opportunities in a very large school as there would be a greater number of staff who can offer different skills and interests. However, in most of our existing secondary schools the range of extra-curricular activities is wide and varied. Issues of behaviour management can be more challenging in a very large school. Transition 6.16 Transition practices in very large schools are very similar to those followed by the City of Edinburgh, simply on a larger scale. The combined school is likely to have nine associated primary schools. Transition is predominantly carried out by Pupil Support staff and the staffing ratios would be in place to allow this to take place effectively. There are, of course, issues in constructing new S1 classes. Our current practice is to ensure that there are a number of pupils from each primary school in each class. This becomes more difficult to achieve the greater number of associated primary schools you have. Proximity to Pupil Population 6.17 An exercise has been undertaken to assess the proximity of each of the two potential sites to what the pupil population would be for a combined school. This analysis is based on those pupils currently attending both Portobello and Castlebrae and will, therefore, include out of catchment pupils in each school but exclude any catchment pupils who do not attend their catchment school. This should, however, represent a reasonable proxy. The maps below show the location of each site and the areas where pupils currently attending both schools live; concentric circles at distances of 0.5 mile intervals from the site are also shown. In each case the location is an approximation as, in each case, the final site would require further consideration. For the site in Craigmillar town centre the area assigned in the existing master-plan has been used.
6.18
53
Map 1: Potential site location in Bruntstane Estate Map 2: Potential site location in Craigmillar Town Centre
Map 2: Potential site location in Craigmillar Town Centre
6.19
As can be seen from the maps, in both cases a significant proportion of the pupil population is located outwith 1 mile from the site; this being most acute for 54
the Brunstane option for which the majority of both current school populations fall outwith a 1 mile radius from the site. 6.20 Neither site allows the strategic objective of having schools at the heart of their communities to be achieved. To varying degrees depending on the site option, the distance from the majority of the pupil population which such a school would serve is high. This would also create an issue for the pursuit of extracurricular activities within the school by each of the two communities and also wider community access. Flexibility of Accommodation 6.21 In a very large school, as a result of the economies of scale which can be achieved, subject department and/or faculty accommodation could become more specialised and flexible. This is particularly relevant in practical subjects, sports facilities and performance spaces. For example, science accommodation could have specialised laboratory areas for each of the three sciences. Also, the opportunity to create a double-sized games hall would allow a very large eight court space to be provided and allow this to be used for activities which a standard sized hall would not be able to accommodate e.g. competitions and enhanced extra-curricular club activities. Financial Implications Revenue Costs 7.1 Whilst there will, perhaps, inevitably be savings in ongoing revenue costs as a result of the economies of scale resulting from running two schools rather than one this has not, as yet, been assessed in any detail. Capital 7.2 It is very difficult to predict the costs of delivering what would be very different schools in a way that would be directly comparable. Factors such as the timing of delivery and the associated effect of inflation would have a significant bearing on the costs however the main variable would be whether, or not, a phased approach was taken to its construction. The expected shift in capacity requirement over time would suggest a phased approach to construction with an initial core size of 1,670 (which initial analysis would suggest would accommodate pupils to 2020) and an associated expansion strategy thereafter up to the projected final requirement of 2,200. The alternative approach would be to build a larger school from the outset than is required to meet the expected short to medium-term demand however that would require a considerably higher initial financial outlay. To allow a comparison at the most simplistic level the following analysis sets out the comparative cost information based on the projected costs of building two separate schools compared to building a single large school from the outset. The cost of delivering a new Portobello High School on part of Portobello Park is estimated to be 32.9m with the cost of delivering a new 55
7.3
7.4
Castlebrae Community High School estimated to be 18m. The total combined cost of 50.9m excludes any provision for inflation or any site acquisition or other related costs. 7.5 Regarding a combined school the Council has no experience of building schools of this size therefore we have drawn from the programme metrics which the Scottish Government would apply for a school of this size. For a school with a capacity of 2,200 using this approach would equate to a projected total cost of 45.472m including the estimated cost of a swimming pool to ensure a like with like comparison. This total again excludes any provision for inflation or any site acquisition or other related costs. This analysis suggests that a saving in construction cost of 5.428m (50.9m 45.472m) could be possible as a result of the construction and space efficiencies achieved by having one building rather than two. Looking at site acquisition costs it would be reasonable to expect a reduction in the area required which, assuming this was around 1 hectare, would be in the order of 1.2m. This obviously assumes that for each option involved a site would require to be purchased. Thus, a combined school could result in a saving on overall capital costs of up to 7m however such an approach would require a significant increase in the level of capital investment funding required to progress such a school within the current timescales. The current approach would involve the delivery of a new Portobello High School at the earliest opportunity with a new school in the Craigmillar area not being required until much later; around 2020 on latest estimates. It is assumed that this will be at least partially funded by PARC from the proceeds from the town centre development however the amount, and timing for which, remains to be confirmed. The issue regarding the level of investment required earlier than expected could be largely mitigated by adopting a phased approach to the delivery of a new school by providing only a core capacity of an estimated 1,670 from the outset and having an expansion strategy thereafter as, and when, demand arose. This has considerable merits as it would entail a far lower initial outlay and ensure that the capacity of the school is right-sized over time to meet its catchment demand. However, such an approach would constrain the design, be more expensive in the long term and result in potential disruption on the site over time when future building extensions and/or adaptations were required. Conclusions Educationally it is not impossible to have a successful large school but it is more difficult. Research suggests that the optimal size for a secondary school is between 600 and 1,600 pupils. Schools that are larger than 2,000 tend to operate as schools within schools.
7.6
7.7
7.8
7.9
8 8.1
56
8.2
Any decision to progress with such a school is not one which can be determined on educational or financial grounds alone. Several other factors have to be considered: (i) The strategic objective of having schools at the heart of their communities. As illustrated in the maps above, this would not easily be possible in a very large school on either of the potential sites due to the comparatively high distance from the majority of the pupil population which such a school would serve. This could also have an impact on the level of extra-curricular and wider community use of the facilities. Parental choice would also be a key factor as parents may have a preference for their child to be educated in a school of a (smaller) size with which they are comfortable. The impact this might have on the plans for the regeneration of Craigmillar. The Brunstane Estate site is nearly two miles from the Craigmillar town centre. Building such a large school in the Craigmillar town centre would require a significant increase in the land take and would have an impact on the level of alternative development possible (such as housing) and the level of funding which could be achieved.
(ii)
(iii)
57
Appendix 6 New St Johns RC Primary School - Feasibility Study 1 1.1 Feasibility Study based on Options for Existing or Adjacent Site Whilst no detailed discussion has yet been undertaken with either the school management team or the wider school community regarding options for the new school; to inform the recent funding submission to the Scottish Government the previous feasibility study was updated to consider the options for replacement on the existing site or using the adjacent Portobello High School site (assuming this was vacated). The study pre-dated the recent appeal outcome and considered options which assumed the demolition of the existing Portobello High School towards the end of 2014 providing a vacant site adjacent to St Johns. An option appraisal was conducted based on the following four options: 1. 2. Complete new build primary school as a single entity; Complete new build primary school and retain the existing Portobello High School gym block and associated accommodation either as an independent but complimentary community facility; Complete new build primary school but integrate the existing Portobello High School gym block directly with the new primary school building; and Refurbish and extend the existing primary school building.
1.2
3. 4. 1.3
The feasibility report assumed the demolition of the existing Portobello High School is financed from the budget for that project. The costs associated with the demolition of the existing St Johns RC Primary School and nursery are included in the option costs as appropriate. In tandem with considering the options above, an exercise was also undertaken to establish the potential revenue from sale of the residual land on the existing Portobello High School site for housing development. To assist this process, indicative housing master-plans were prepared for the options and initial feedback obtained from the Council Planning Department. The proposals were then reviewed in light of the planning comments and potential variations to density and layout and valued accordingly. In all of the options the primary school and nursery has a small dedicated 3G sports pitch and the building footprint was based on an agreed space budget of 3,700m2. Size of Site Required The size of site for any new (or replacement) school is prescribed in the School Premises (General Requirements and Standards) (Scotland) Regulations 1967. For a new St Johns RC Primary School, with a primary school capacity of 462 58
1.4
1.5
2 2.1
and capacity for a further 40 pupils in the nursery, the total site size should be 1.9 hectares comprising two elements for which the appropriate sizes are defined separately: 1. 2. 2.2 A main school site on which the actual school buildings are located of not less than 1.3 hectares; and An area for playing fields of not less than 0.6 hectares.
In certain circumstances, a smaller site area for either element can be provided with the consent of the Scottish Government subject to it being agreed that it would be impractical or unreasonable to apply the standards within the legislation. The regulations do not actually require that playing fields (or pitches) are adjacent to the actual school building but that they are available to the school i.e. could be elsewhere and off-site. In Edinburgh there are many schools where the maximum areas for playing fields are not met however the city complies with the regulations by virtue of the extensive alternative pitch provision which is available to schools throughout the city. Taking the area of such off-site facilities into consideration the area available will more than exceed the minimum requirement. The position at St Johns RC Primary School is no different. Recent experience in considering design options for other primary schools in the city has suggested that a site size of 1.2 hectares could provide an appropriate environment for a primary school and nursery of this size and also incorporate provision for a small pitch adjacent to the school buildings. This was used as the target size for a site for the new school in the feasibility study albeit that this is only marginally lower than the minimum site size specified in the regulations of 1.3 hectares. Financial Implications The net financial position arising from each of the four options considered is set out below; in each case showing both the construction cost and also the anticipated value of the residual land on the combined site.
Option 1 - new build 2 - new build variant 3 - new build and integrate 4 - refurbish and extend Cost 000 8,923 12,060 10,563 8,935 Land Value 000 (3,390) (2,090) (3,070) (3,570) Net Cost 000 5,533 9,970 7,493 5,365
2.3
2.4
2.5
3 3.1
3.2
A significant capital receipt could be expected from the disposal of the surplus land on the existing site were the existing High School to be demolished and the replacement St Johns RC Primary School delivered. This receipt was 59
expected to have formed part of the overall funding for the project however the following points should be noted:
For some options. the excess land could only be sold once the works on the site were completed; this would present a timing issue and the potential necessity for interim prudential borrowing; The land value for Option 1 is slightly lower than for Option 4 as the site area allocated to the new primary school is slightly higher under the new build option hence leaving a lower amount of surplus land; and Due to a deficit in the realisation of capital receipts expected from other sites; the funding within the existing Children and Families Capital Investment Programme is currently under-pinned by an expectation of in excess of 1m of any such receipt being reserved to cover this deficit.
4 4.1
Decant It should be noted that the costs shown above for option 4 exclude any additional decant costs which would inevitably arise. This option would require an off-site decant to minimise disruption and additional restrictions arising from the need to avoid impact on classes from Health & Safety restrictions (primarily access and egress, noise and dust issues) and other logistical matters. The nature of the decant would require a further detailed study to establish the best option available which would, dependent on other factors, be either re-use of the existing Portobello High School, the use of alternative accommodation (should anything suitable be available) or the provision of a temporary accommodation solution on an appropriate site. Were it to be an option which was available, the extent of new and refurbishment works to Portobello High School to make it fit for purpose as a temporary primary school, including sectioning off areas and re-working of spaces, would require a detailed review and assessment before costs could be established. This option might add a delay to the start date of works on St Johns RC Primary School while the temporary works were completed. The timing of the demolition of the existing High School would also be delayed up to 16 months in comparison with all other options. In addition, a statutory consultation exercise would be required regarding any temporary change of site for the school. The location, and extent, of any temporary decant facility would need to be established and design completed to enable an appropriate level of cost surety to be obtained. Different site options would entail different transport requirements and associated costs and the level of any enabling works required could vary considerably depending on the nature of the site. This was not explored in detail as part of the updated feasibility exercise. The costs associated with decant would require detailed assessment however, for illustrative purposes, the costs associated with the installation and rental of temporary accommodation alone for 3,700m2 over a period of 16 months are 60
4.2
4.3
4.4
4.5
estimated to be 1.4m. This excludes any provision for transport and any other costs which may arise such as the rental of any site not in Council ownership. 5 5.1 Conclusions from Feasibility Study The feasibility update identified the various realistic options for the re-provision of St Johns Primary School within St Johns RC Primary School with the following conclusions:
The two options involving the retention of the existing High School sports halls both incur significant additional costs with little, or no, prospect of any offsetting benefits from external usage and revenue. The new build option is the most economic and simplest process in respect of the clearance of the existing site and delivering the full new build with negligible disruption to the school. This process also releases part of the development land earlier than the partial refurbishment option. The option to undertake a partial refurbishment and new build remains feasible and of a comparable gross and net cost to new build however the delayed delivery and receipt of land revenue make this less attractive. More significantly, the requirement to decant would also add significant (revenue) cost to this option which would make it considerably more expensive and much less attractive than the new build option. The feasibility report recommended that the new build option is developed along with the master plan in order to facilitate an application for planning consent in principle, and that the actual primary school design is further developed. Further more detailed investigations into services and the existing land would also be beneficial to de-risk the proposals.
5.2
The Children and Families Department supports these conclusions and recommendations and remains of the opinion that new build offers the best option in the circumstances were it to be available. In addition to the reasons outlined above; the opportunity to undertake a design which is not restricted in any way by the configuration of existing buildings should allow a final solution to be delivered which is a better match to the educational requirements. The new build option is articulated in more detail in Section 6. It is acknowledged that, were the option to undertake either new build or refurbishment and extension to be available, further consultation with the school community would be required prior to determining the final option for the new school. This option is also articulated in more detail in Section 7. New Build Option on Existing Portobello High School Site This option assumed the existing Portobello High School site was fully cleared and proposed locating the new build primary school at the western end of the existing Portobello High School site with a prominent frontage on Duddingston Road and the small pitch and other playground and ancillary areas to the north. The pitch would be bounded by existing housing to the west and north and by the proposed new housing development to the east. 61
5.3
6 6.1
6.2
The new primary school site would take up approximately 1.2 hectares leaving 2.254 hectares available for sale including the existing primary school buildings which would be demolished. This option would enable the existing primary school to continue operating as normal while the existing Portobello High School was demolished, the land cleared and the new primary school built ready for occupation. This option would also enable the land sale to be progressed pending the school move including the potential for housing to commence in tandem with the primary school build on the central area of the site. The Council Planning Department was generally supportive of this proposal. Construction costs for this option comprise the combined refurbished and new build primary and nursery and one small 3G pitch. The schedule of accommodation used to develop the design and costs for the building works identified a total gross floor area of 3,635m2 which was increased to 3,700m2 to include an additional 65m2 allocated to plant and circulation space. The estimated construction cost of 8.923m was based on a build programme commencing in Q3 2014 and comprises the following. Demolition 100,000 General Conditions 420,000 New Build 4,040,000 FFE General 400,000 FFE Kitchen 120,000 Externals 555,000 3G Pitch 400,000 Total Construction Cost 6,035,000 Inflation Q3 2014 465,000 Sub-Total 6,500,000 Construction Contingency (7.5%) 490,000 Net cost before Professional Fees and Risk 6,990,000 Design Team Fees (10%) 700,000 Development Costs (2%) 140,000 Contingency (10%) 700,000 Risk Evaluation 393,000 Total Project Cost 8,923,000 This option assumes a surplus land value of approx 3.39m for 2.254 hectares or thereby of surplus land assuming the Council pays for demolition works. This valuation does not include fees as these will vary depending upon the timing and nature of the market. Legal fees and stamp duty land tax are normally borne by the purchaser. 62
6.3
6.4 6.5
6.6
6.7
7 7.1
Refurbishment and Extension The design for the refurbishment and extension option comprised a number of adjacent interconnected buildings and a separate detached teaching block. The distribution and split of the space budget areas within the school varied compared to the new build option due to the size of the existing rooms however the full space allocation assumed for new build of 3,700 m2 was budgeted for within the costs as was the provision of a small 3G pitch. The design was indicative and primarily for the purpose of assessing the options and would require a full review if it was to be progressed further. The new primary school site would take up approximately 1.1 hectares leaving 2.42 hectares available for sale. This option would require a decant to minimise disruption and additional restrictions arising from the need to avoid impact on classes from Health & Safety restrictions (primarily access and egress, noise and dust issues) and other logistical matters. The nature of the decant would require a further detailed study to establish the best option between re-use of the existing Portobello High School or the provision of a temporary accommodation solution. The Council Planning Department was generally supportive of this proposal. The estimated construction cost of 8.935m was based on a build programme commencing in Q3 2014 and comprises the following. Demolition (nursery) 25,000 General Conditions 420,000 New Build 2,400,000 Refurbishment 1,300,000 Modifications 75,000 FFE General 400,000 FFE Kitchen 120,000 Externals 640,000 3G Pitch 400,000 Total Construction Cost 5,780,000 Inflation Q3 2014 446,000 Sub-Total 6,226,000 Construction Contingency (10%) 620,000 Net cost before Professional Fees and Risk 6,846,000 Design Team Fees (10%) 685,000 Development Costs (2%) 137,000 Contingency (10%) 685,000 Risk Evaluation 582,000 Total Project Cost 8,935,000 63
7.2
7.3
7.4 7.5
7.6
This option assumes a surplus land value of approx 3.57m for 2.42 hectares or thereby of surplus land assuming the Council pays for demolition works. This valuation does not include fees as these will vary depending upon the timing and nature of the market. Legal fees and stamp duty land tax are normally borne by the purchaser.
64
Item no
Report no
8.3
CEC/45/12-13/SfC
Management Rules for Public Parks and Greenspace 2013 - 2023

City of Edinburgh Council
25 October 2012
1 1.1
Purpose of report To present to Council the outcome of a public consultation, approved by the Transport, Infrastructure and Environment Committee on 27 September 2011, on the draft Management Rules for Public Parks and Greenspace. To seek approval for the next step of formal public notification so that the new management rules can take effect from February 2013, when the current rules expire. The report was continued from the Council meeting on 20 September 2012. Summary This report recommends that the Council proceeds to the next step of making new management rules for public parks and greenspaces. The public consultation has endorsed the new rules with some slight modifications. The next formal part of the process is to present the revised rules for public inspection and to invite any objections. Depending on the nature of the objections a further report seeking final approval will be presented to Committee. Main report
1.2
1.3 2 2.1
2.2
3.1
Edinburgh is richly endowed with parks, gardens, woodlands and walkways, which provide a variety of recreational opportunities for residents and visitors. The citys green spaces contribute to a diverse and vibrant cityscape and provide the landscape setting for both residential areas and businesses. In recent years the steady improvement in the quality of parks and green spaces has been recognised by the award of 24 Green Flags. Community involvement in the maintenance and development of parks is actively encouraged by the Council, and 38 parks have their own Friends groups. The Council seeks to encourage responsible enjoyment of parks, and information provided to visitors is mainly designed to enable them to achieve this. Occasionally however, enforcement action is required to protect parks and users from undesirable or illegal activity. Although not a mandatory requirement the Council has operated a series of Management Rules for Public Parks, made under Section 112 of the Civic Government (Scotland) Act 1982. These have provided the Council with a range of enforcement powers to deal with a number of undesirable activities or actions in the citys public parks, gardens and greenspaces. However, with the introduction of the Land Reform (Scotland) Act 2003, responsible use of open space and good behaviour in public parks will in future need to be principally encouraged through awareness and education measures. The enforcement of the revised Management Rules will only apply when deemed absolutely necessary. The public consultation took place between early October 2011 and the end of January 2012 by way of an online survey. The survey was promoted on the City of Edinburgh Councils web-site, on information boards in parks and by communications to all 36 of the Parks Friends groups, Local Neighbourhood Offices and Neighbourhood Partnerships. A good range of responses were received (see Appendix 3) from a variety of organisations and individuals including: 7 from Park Friends Groups; 3 from tenant/resident associations or similar; 1 from Community Councils; 1 from Neighbourhood Partnerships; 1 from charities; 36 from unspecified individuals or organisations.
3.2
3.3
3.4
The survey was designed to elicit response regarding the seven key themes within the consultation: The approach of educating and persuading Unacceptable behaviours Dogs and horses Barbecues, fires and camping Cycling Motor vehicles, events and activities and Bruntsfield Links golf course Any other comments 2
3.5 i
The Approach of Educating and Persuading Significant differences between the old and new rules; The old rules were presented in all parks as a formal list, on panels attached to posts. The new rules will be presented as a list on the Councils web-site and available from local neighbourhood offices. Panels in parks will give a welcoming, attractive and persuasive interpretation of the rules. The new rules will also be printed on cards and issued to all Council staff who might operate in parks. These staff will be given training on how to safely and effectively approach people and how to educate and persuade them to modify their behaviour.
ii
Consultation results; 76% agreed with the overall approach of educating and persuading whilst only enforcing rules against serious or repeated breaches. 22% disagreed.
iii
Key considerations arising from the consultation response; Whilst the majority of respondents support encouraging responsible behaviour there were quite a few strong comments on the need to patrol more and vigorously enforce the rules (Appendix 3, p2(1.4,1.5,1.9), p3(1.9, 1.11 1.20), p4(1.21)). The City of Edinburgh Council has limited resources for this and cannot attend every breach of the rules. Training more staff, such as gardeners, to help park users observe the new management rules is being considered, as is a voluntary park ranger service. In addition to the Park Management Rules, there are a range of other laws that could be used to deal with anti social behaviour should this be deemed necessary.
iv
Changes made to the Rules in response to the consultation; There were no changes made to the rules.
3.6 i
Unacceptable Behaviours Significant differences between the old and new rules; The new rules no longer prohibit rock climbing and swimming. The Land Reform (Scotland) Act 2003 provides access rights for these activities. The new rules no longer prohibit the flying of kites, gambling or betting. These activities are not seen as current issues in parks.
The new rules no longer prohibit the drinking of alcohol. The prohibition has been and would continue to be very difficult to enforce. However, the unacceptable behaviour which arises through the drinking of alcohol can be subject to a new rule, 4.1 which prohibits such behaviour. The City of Edinburgh Council also has a byelaw which prohibits the consumption of alcohol in designated public places (2006), and the designation could be extended over parks should there be an issue. The new rules require commercial activities to apply for permission from the Council. ii Consultation Results 70% considered that the new management rules covered the most unacceptable behaviour in parks. 26% did not agree with this. 80% agreed with the rule requiring permission to run commercial activities within a park. iii Key considerations arising from the consultation response Two respondents express concern that the rules require commercial activities to apply for permission from the Council and that this runs contrary to the Land Reform (Scotland) Act (appendix 3, p4(2.3), p5(2.14)). The Councils legal services, Scottish Natural Heritage (SNH) and The Edinburgh Access Forum (8th December 2011) have been consulted and are happy that the new rule can be justified for the better management of access and will not impinge on access rights as set in the Land Reform (Scotland) Act. iv Changes made to the Rules in response to the consultation Rule 4.5 now includes Lauriston Castles Italian and Japanese Gardens as places where ball games are prohibited. There were no specific comments regarding these areas however it was felt appropriate to include them given the current restoration work and that the original design for these gardens as places of quiet reflection. Following a response from the Scottish Detector Club (SDC) a new rule has been added prohibiting metal detecting unless written permission has been granted by the SDC. The Club has agreed to administer permissions on behalf of the Council subject to their code of conduct. This will protect parks and the laws relating to Treasure Trove. 3.7 i Dogs and Horses Significant differences between the old and new rules; Whereas the old rules prohibited the exercising of horses the new rules only prohibit this activity where it falls short of the responsibilities outlined in the Scottish Outdoor Access Code, i.e. taking into consideration the safety of other park users and the protection of the landscape. ii Consultation Results 4
86% agreed with the rules on dogs and horses. 14% did not. iii Key considerations arising from the consultation response; The large number of comments on dogs running out of control reflects a growing concern about this issue (appendix 3, p4(2.4), p6(2.17, 2.18) p8 and p9). The Scottish Outdoor Access Code suggests that the level of control is dependant on the area one is visiting. In recreation areas and public open spaces (parks) it advises keeping a dog under close control (the dog is able to respond to your commands and is kept close at heel) or on a short lead (2m). iv Changes made to the Rules in response to the consultation; No changes have been made.
3.8 i
Barbecues, fires and camping Significant differences between the old and new rules; The new rules no longer prohibit barbeques. The new rules continue the prohibition on camping but determine that this only exists for parks within one mile of a public road. This condition has been added to exclude Bonaly Country Park from the prohibition where it might be argued that rights under the Land Reform (Scotland) Act 2003 exist for wild camping.
ii
Consultation Results 79% agreed with the rules on barbecues, fires and camping. 14% did not.
iii
Key considerations arising from the consultation response; A number of comments referred to prohibition on camping and the conflict with the Access Code (appendix 3, p9(4.7), p10(4.10)), which permits wild camping in areas to which the public have access rights. Again there are very reasonable and justifiable reasons why we should not permit camping in Edinburghs parks and these are supported by The Edinburgh Access Forum.
iv
Changes made to the Rules in response to the consultation; Correspondence received during the consultation referred to the fact that the draft rule on barbecues did not refer to the designated sites recently installed in the Meadows. The rule has therefore been amended: To prohibit lighting barbecues out with designated barbecue sites, where these are provided, or in areas or in a manner likely to burn or scorch the ground or cause danger or nuisance to other users or neighbouring residents.
3.9 i
Cycling Significant differences between the old and new rules; The new rules no longer prohibit cycling. 5
ii
Consultation Results 88% agreed with the rules for cycling. 7% did not.
iii
Key considerations arising from the consultation response; There are no real issues arising from the consultation although the comments do reflect the polarity of feelings for and against cycling in parks (appendix 3, p11(5.4), p12(5.22)).
iv
Changes made to the Rules in response to the consultation; One respondent thought that the rule on cycling would be more effective if it referred to the responsibilities outlined in the Scottish Outdoor Access Code. The draft rules have therefore been amended to include this but the rule prohibiting cycling off-paths in woodland and areas sensitive to environmental damage has been retained. This rule is appropriate for a number of sites in Edinburgh and is in line with the advice on forests and woodland contained within the Scottish Outdoor Access Code.
3.10 i
Motor vehicles, events and activities and Short Hole Golf Courses Significant differences between the old and new rules; A new rule has been added to reflect concerns from the local community at Bruntsfield Links. This rule prohibits people not engaged in the game of golf from going onto the playing surfaces when in use or the greens at anytime. This rule is in-line with the Land Reform (Scotland) Act 2003.
ii
Consultation results 93% agreed with the rules for motor vehicles. 69% agreed with the rules on events and other activities. 17% did not. 81% agreed with the rules on Bruntsfield Links. 7% did not.
iii
Changes made to the Rules in response to the consultation The draft rules have been amended to include a suggestion that the rule on the use of motorised mechanical toys should include disturbance to wildlife. The specific mention of Bruntsfield Links has been removed so that the rules can apply to other short hole courses which might be established in the future.
3.11
Any Other Comments Numerous comments were made on the need for good, user friendly signage to create an awareness of the new rules (appendix 3. p9(4.2), p10(4.9), p11(5.2, 5.14), p12(5.20), p15(9.3,9.5), p16(9.16)). A suite of signs is being prepared to cover all parks and greenspace. These will focus on the local issues and aim to both inform and encourage good behaviour. 6
3.12
The Next Step Section 112 of the Civic Government (Scotland) Act 1982 details the process by which Local Authorities can make management rules. This involves advertising where the rules can be viewed and allowing people to write in with objections over a one month period. The Council will respond to objections through correspondence or face to face discussion, details of which will be reported back to Committee.
4 4.1 5 5.1
Financial Implications There are no financial implications as any costs will be accommodated within existing budgets. Equalities Impact The content of this report is not relevant to the Equality Act 2010 public sector general equality duty. It is considered that the management rules support and promote responsible use and enjoyment of the citys parks and greenspaces for all users. Environmental Impact The management rules will have a positive effect on the environment by helping to encourage responsible use of Edinburghs parks and greenspaces. Conclusions The management rules help to support the responsible enjoyment of the citys parks and greenspaces. The overwhelming majority of responses received through the consultation were supportive of the new management rules. Recommendations It is recommended that Council: a) Notes the consultations support for the new management rules and the modifications made to them and approves the formal process of public notification. b) Notes that the report detailing the outcome of this public notification will be presented to Committee later in 2012.
6 6.1 7 7.1
8 8.1
Mark Turley Director of Services for Communities
Appendices
1 Existing Rules for Public Parks (2003) 2 Amended proposed Management Rules (2013) 3 Results of Public Consultation October 2011 January 2012 David Jamieson, Parks and Greenspace Manager Telephone: 0131 529 7055; Email david.jamieson@edinburgh.gov.uk City Wide Single Outcome 4: Edinburghs communities are safer and have improved physical and social fabric Management Rules for Public Parks (2003) Management Rules for Public Parks (2013) *
Contact/tel/Email
Wards affected Single Outcome Agreement Background Papers
Appendix 1: Existing Park Rules
THE CITY OF EDINBURGH COUNCIL MANAGEMENT RULES FOR PUBLIC PARKS (2003)
The City of Edinburgh Council in exercise of the powers conferred on them by Section 112 of the Civic Government (Scotland) Act 1982 hereby make the following Management Rules for the Councils Parks and Gardens:-
1.
In these Management Rules the following words have the meanings given to them:Council means The City of Edinburgh Council; Park means any land provided, owned, leased, occupied or managed by the Council within the City of Edinburgh and used as a recreation ground, public playground, public open space, public golf course, public walk, walkway, woodland, ornamental or pleasure ground or gardens and all buildings and works connected therewith; Water course means any Loch, Pond, River, Burn or Stream; Notice means a notice or sign exhibited by order of the Council; Council Official means an employee of the Council or of Edinburgh Leisure or any other person authorised by the Council to enforce these Rules;
2.
The following acts are prohibited within any park:-
1.
Failing to follow any directions for the control of traffic or persons given by a Council Official or by a notice; Failing to remove a vehicle if asked to do so by a Council Official; Racing or training horses or other animals; Going on any enclosure, flower bed or shrubbed area Going on or throwing objects on any iced water course. Climbing any tree, railing, fence or structure of any kind except play equipment; Swimming, bathing or wading in or polluting any water course or fountain, except for children playing in Council paddling pools;
2. 3. 4. 5. 6.
7.
8.
Sailing any boat, yacht or other craft (including model boats and yachts) in any water course, except in those provided by the Council for that purpose; Playing or practising any games or engaging in any form of sport or exercise if asked by a Council Official not to or where prohibited by a notice; Operating any mechanically propelled toy or model machine including model aircraft (so as to give reasonable cause for annoyance to any other person or if asked by a Council Official not to); Attaching a rope or swing to any tree or structure or playing on such a rope or swing; Riding a bicycle, tricycle, scooter, skateboard or roller blades except where vehicles are allowed or where such cycling, riding on a scooter, skateboarding, roller skating or roller blading is permitted. This rule does not apply to children aged ten years or younger accompanied by an adult; Allowing a dog to foul in a public park unless the person in charge of the dog immediately removes the fouling; Allowing a dog to enter in or on a childrens play area or sports playing field situated within any public park; Failing to keep a dog under proper control. Depositing litter except in litter bins provided for the purpose. Gambling or betting; Drinking alcohol;
9.
10.
11.
12.
13.
14.
15. 16. 17. 18.
3.
The following acts are prohibited within any park or building within a park, unless the Councils written permission (which may be conditional or unconditional) has been obtained first, to avoid giving annoyance to other park users:-
1.
Driving or using or leaving any car or other vehicle except on roads and in car parks provided by the Council for cars and vehicles. This Rule does not apply to prams and wheelchairs used for carrying children or invalids; Going into or being in a park when it is closed; Making any public speech or holding any procession, parade, demonstration or other public meeting in any park except in the East Meadows, Calton Hill or Leith Links, as long as and providing that in
2
2. 3.
those parks any instructions given by the Council or a Council Official are complied with; 4. Displaying or handing out advertisements or giving any display or performances; Selling of items or goods. Playing at any organised game or sport on pitches provided by the Council; Erecting any post, rail, fence, tent, pole, booth, screen, stand, swing or similar structure; Discharging or using any firearm, firework or other weapon or missile; Climbing any steep rock or cliffs; Camping or parking a caravan or motor caravan; Lighting any fires or barbecues; Flying of kites where overhead power lines are present or there is a danger to other park users. The operation of fairgrounds, circuses or other events.
5. 6.
7.
8. 9. 10. 11. 12.
13.
4.
No person shall in any park wilfully obstruct, interrupt or annoy employees or agents of the Council in carrying out their duties. Any written permission required by these Rules must be shown on request to a Council Official. Any person challenged by a Council Official with a contravention of any of these Rules shall give his or her full name and address. The Council may decide to waive any particular Rule at any time. A person who appears to have broken any of these Rules may be required to leave the Park by a Council Official. A person may also be asked to leave a park for any other reasonable cause.
5.
6.
7. 8.
No person shall enter any park when requested not to do so by a Council Official or where prohibited by notice.
Appendix 2: Amended Proposed Management Rules (2013)
The City of Edinburgh Council Services for Communities
Management Rules for Public Parks and Greenspace (2013)

The City of Edinburgh Council in exercise of the powers conferred on them by Section 112 of the Civic Government (Scotland) Act 1982 hereby make the following Management Rules for the Councils Parks, Gardens and open spaces:Interpretation In these management Rules the following words have the meanings given to them: Council means The City of Edinburgh Council; Park means any land provided, owned, leased, occupied or managed by the Council within the City of Edinburgh and used as a recreation ground, public playground, public open space, public walk, walkway, woodland, ornamental or pleasure ground or gardens and all buildings and works connected therewith; Council Official means an employee of the Council or of Edinburgh Leisure, or any person authorised by the Council to enforce these rules; Code means the Scottish Outdoor Access Code, the guidance on the Land Reform (Scotland) Act 2003. Summary Any person, who appears to be breaking, has broken or is about to break any of the following rules may be asked by a Council Official to leave the Park. Any person refusing to leave will be guilty of an offence and liable on summary conviction, to a fine not exceeding level 1 on the standard scale. Rules 1. No person shall in any park wilfully obstruct, interrupt, verbally insult or annoy employees or agents of the Council in carrying out their duties. 2. Any written permission required by these rules must be shown on request to a Council Official. 3. The Council may decide to waive any particular Rule at any time. 4. General The following acts are prohibited 4.1 Behaviour which causes (or in the opinion of a Council Official is likely to cause) annoyance, offence, alarm or distress to any other park user. 4.2 Any wilful or careless act which damages or removes any plant, tree, shrub, building,
1
structure, equipment, furniture or fitting. 4.3 4.4 Depositing litter except in litter bins provided for the purpose. Pursuing any activity which endangers (or in the opinion of a Council Official is likely to endanger) any person or property. Ball games in Princes Street Gardens, Lauriston Japanese and Italian Gardens, or Saughton Gardens. Fishing in any water course without permit. Depositing or leaving any substance or article which is likely (in the opinion of a Council Official) to cause injury or damage to any person or property. Metal detecting in any park without the written permission of the Scottish Detector Club, subject to an agreement between the Council and the Scottish Detector Club being valid.
4.5
4.6 4.7
4.8
The following acts are prohibited unless the Councils written permission has been obtained first 4.9 Entering into or wilfully remaining in a park when it is closed to the public. 4.10 Selling, hiring or offering for sale or hire any items or goods or services. 4.11 Displaying or handing out advertisements, conducting surveys or giving any displays or performances. 4.12 Begging or busking. 4.13 Engaging in any commercial activity whatsoever (including, without limitation, dog walking services, photography, filming and fitness training services). 5. Dogs and Horses
The following acts are prohibited 5.1 Allowing a dog to enter in or on a childrens play area or area of the park that is designated as a dog free area. 5.2 Allowing dogs to foul in a public park unless the person in charge of the dog immediately removes the fouling (within the provisions of the Dog Fouling (Scotland) Act 2003). 5.3 Failing to keep a dog under close control in any park. 5.4 Failing to keep a dog under close control, at heal or on a short lead when near young farm animals and at nesting time (April July) in woodlands, grasslands, moorland and at the seashore.
2
5.5 5.6
Allowing a dog to run onto sports pitches when these are in use. Leading, riding, training or exercising a horse in a manner which falls short of the responsibilities in the Code
6. Barbecues, Fire and Camping
The following acts are prohibited 6.1 Lighting barbecues outwith designated barbecue areas where these are provided, or in areas or in a manner likely to burn or scorch the ground or cause danger or nuisance to other park users or neighbouring residents. 6.2 Failing to remove litter associated with barbecues and picnics. The following acts are prohibited unless the Councils written permission has been obtained first 6.3 Lighting an open fire in any park. 6.4 Camping within one mile of a public road.
7. Cycling The following acts are prohibited 7.1 Cycling in a manner that falls short of the responsibilities in the Code. 7.2 Cycling off the paths in woodland and other areas sensitive to environmental damage. 8. Motor Vehicles
The following acts are prohibited unless the Councils written permission has been obtained first 8.1 Driving or using or leaving any car, motorbike, quad bike, mini moto, or other motorised vehicle; or parking a caravan, except on roads and in car parks provided by the Council for cars and vehicles, unless the Councils permission has been obtained first. This rule does not apply to wheelchairs used for carrying children or people with a disability. The following acts are prohibited 8.2 Operating any motorised or mechanically propelled toy or model vehicle, aircraft or boat, unless on a site designated for this purpose, so as to disturb wildlife, endanger or give annoyance to other people or if asked by a Council Official not to do so.
9. Events and Other Activities
The following acts are prohibited unless the Councils written permission has been obtained first 9.1 Holding an event, performance, ceremony in any park, or a demonstration or public meeting in any park except East Meadows, Calton Hill or Leith Links. 9.2 Carrying, or discharging any firework or firearm. 9.3 Playing any organised game or sport on pitches provided by the Council.
10. Short Holes Golf Courses
The following acts are prohibited for those not engaged in the game of golf 10.1 Going onto playing surfaces when these are in use and onto greens at all times.
11. Expulsion and Exclusion from Parks 11.1 Where a Council Official has reasonable grounds for believing that a person has contravened, is contravening, or is about to contravene any of these Management Rules, they may expel that person from the Park. Where a Council Official has reasonable grounds for believing that a person is about to contravene any of these Management Rules staff may exclude that person from the Park. Where a person has persistently contravened or attempted to contravene these Management Rules and in the Councils opinion is likely to contravene them again, the Council may decide to make that person subject to an exclusion order for a specified period of up to one year. An exclusion order made under Rule 11.3 shall take effect on such date as the Council may decide, being not less than 14 days after the decision to make that person subject to an exclusion order. A person who has been made subject to an exclusion order: i) shall be entitled to written notice of the decision to make the exclusion order, containing a statement of the reasons for that decision; and ii) shall be entitled to make written or oral representations to the Council at any time up to the time that the order would have taken effect but for the representation being made.
11.2
11.3
11.4
Appendix 3 Results of Public Consultation October 2011 January 2012
Management Rules for Parks and Greenspace Results of Public Consultation October 2011 January 2012
Introduction The consultation on the new management rules took place between 10th October 2011 and 31st January 2012. The form of the consultation was an online survey. This survey was promoted on the City of Edinburgh Councils website, on information boards in parks, via letters to all the Friends Groups, Local neighbourhood offices, and neighbourhood partnerships. The on-line Survey The Survey comprised 20 questions, 2 of which were designed to detail the respondent. The other 18 questions were arranged around the types of rules: General Dogs and horses BBQs and camping Cycling Motor vehicles Events and other activities Bruntsfield Links Golf Course
The survey provided a simple explanation of the reason behind the rules and asked whether respondents agreed or disagreed with this. It then asked for comments. The on-line survey received 49 responses: 7 from Park Friends Groups 3 from tenant/resident associations or similar 1 from Community Councils 1 from Neighbourhood Partnerships 1 from charities 36 from unspecified or no organisation
Comments and Responses

1. Comments about the approach of educating and persuading.
76% agreed with the overall approach of educating and persuading whilst only enforcing rules against serious or repeated breaches. 22% disagreed.
Do you agree with the overall approach of educating and persuading while only enforcing the rules against serious or repeated breaches? I would comment that this approach does not take into consideration of person or persons home in which may be the most affected by ball games and noise and or anti-social behaviour. The rules focus on what cannot be done in parks; maybe a more positive approach is to set out more clearly what you believe parks ARE to be used for rather than what they are not to be used for. e.g. "7.1 Cycling at speeds or in a manner likely to endanger other park users" is prohibited. Of course this is reasonable but why not make it clear in parks that considerate cycling is permitted, even encouraged A joint approach to the policing of these rules, particularly the serious ones, should be adopted as council officers will benefit from the support and backing of service providers such as L&B Police. ENFORCEMENT OF THE RULES MUST TAKE PLACE TO SHOW THAT THE RULES ARE TO BE OBEYED. It will not work well enough. Most people can be educated easily (if they need it), but there is too much emphasis on self policing and there is too much inconsiderate behaviour in parks at present Response
1.1
1.2
Rules 4.4 and 4.7 refer to people and property and cover neighbouring residents as well as park users. This is exactly the approach we want to take. The rules will not be displayed, but signage giving the positive stance will be.
1.3
1.4
1.5
1.6 1.7
1.8 1.9
It seems unlikely that many of the rules will ever really be enforced, so this may as well be acknowledged up front. There is no signage in Inch Park about not parking on verges, the grass, adjacent to pitches whilst football/ruby matches are on or even driving across pitches, all of which has happened and I have witnessed. I have never, ever seen any Parks staff in Inch Park at any time in the 10 years I have lived in the area, so I am not sure how they will be having any sort of contact with members of the public. I am of the opinion that only park staff should be driving through any park, car drivers have enough parking facilities around parks, or there are an adequate public bus service and should be discouraged from bringing their vehicles into the park causing pedestrian/ambulant park users an inconvenience. In Inch park there is a road that goes through it with no kerb or facilities for pedestrians who are forced by car drivers using this road as a cut through to get off the path with prams or if they are in a wheelchair I am really not sure where they could go. It is important to be very clear about the rules, especially for things like fires, barbecues, motor vehicles etc. But it all depends upon the level patrol. As a Member of the Committee of Friends of Corstorphine Hill would like to see more regular patrolling as without a presence any rules cannot be enforced.
The intention is to prepare a briefing for the Police and Environmental Wardens on the new rules. All Park rangers and other appropriate officers will be trained to enforce the rules. The approach is within the framework of the Land Reform Act, i.e. promotion of responsible behaviour. If this fails the Council can resort to byelaws. Noted Passed on to the South Neighbourhood Team 27/11/11.
Noted We are looking at other ways to increase interface on the ground, perhaps using more volunteers. 2
Appendix 3 Results of Public Consultation October 2011 January 2012 1.10 Obligatory rules do work in certain aspects of management but , experience has shown that certain aspects of the management rules need reviewed and in certain areas a more clearer and responsive approach to breaches of the rules. Dog fouling, vandalism, control of dogs and litter are issues which require urgent review and focus on regular patrolling. In our park we find there is no proper method of contact or regular meetings with Park Management. We take pride in the park but the lack of support by Park management in maintenance and fouling issues creates frustration and doubt about the Council's ability to maintain greenspace It must be made clear to the public that they cannot "get away with" ignoring the rules on the first occasion. With the present rules it seems likely they would only be enforced with repeat on continued offence. This sends out completely the wrong message to certain irresponsible members of the public. In addition following an accident that I was involved in at the meadows in August 2010, I am led to believe that the council could be found negligent in a court for personal injury if in future it failed to enforce the rules as the parks belong to the council. This could lead it open to significant legal costs. The Council seems to be opting out of its responsibilities to try to get out of costs associated with controlling the use of parks. Whilst I agree that education should be the first approach there MUST be the option of legal action from the outset. Providing that sufficient signage and facilities are available ... i.e. Litter Bins Some people simply won't be educated or persuaded; talk of enforcing rules against repeated breaches sounds meaningless, an empty threat which lack of resources makes even emptier. Education backed up by the Big Stick is what is needed At our local park we see very little of staff engagement with locals. Environmental wardens only visit every 6 weeks, not even that.Our CC feel that care of the park and surrounding fauna is not a priority I would first require to accept that repeated breaches of the rules are enforced ... and I don't. I would have to believe that enforcing the rules against repeated breaches were being applied first ... and I don't believe they are enforced. A more rigorous approach is almost certainly necessary on dog fouling, since it is so difficult to witness the precise incident that issuing of a fine needs to be on each and every occasion when a witnessed act does occur. Human behaviour requires consequences to alter it. If there is not sufficient consequences, then people will think they can do what they want. Rules have to be clear and cover a range of behaviours. However, if they are not policed or compliance is not monitored and acted upon, then it becomes pointless. Most problems in parks will be "minor" on the scale of lawbreaking. They are accordingly most unlikely to be reported or recorded. Accordingly for most infractions there will be no previous history to suggest repeated breaches. A "serious" breach would be likely to be considered an offence whether or not it took place within a public park. So essentially "only enforcing the rules against serious or repeated breaches" essentially means no policing or control. This means survival of the fittest. Take for example the elderly lady who takes a stroll in a park. She is suddenly surprised by a cyclist passing her silently at speed. She stops herself from losing her balance- a See above. Passed on to the City Centre Neighbourhood Team 27/11/11.
1.11
All Park rangers and other appropriate officers will be trained to enforce the rules.
1.12 1.13
Noted Noted
1.14 1.15
Noted Noted
1.16 1.17
Noted Noted
1.18
1.19
The Green Dog Scheme is being introduced to Edinburgh and this can help with the issue. Noted
1.20
Appendix 3 Results of Public Consultation October 2011 January 2012 fall at her age could be very serious- but she decides there and then not to walk here again. Take the young mother out with her young children for a visit to the park. Her toddler comes back to her carrying a discarded syringe he has found on the ground. The mother decides there and then that she will not only not come back to the park, but that she will not allow her children to come unaccompanied to the park when they get older. Take the young student walking back on a winter's evening across the park. It is dusk, and in the distance he can see a few figures around a park bench. As he approaches they ask him for "small change". He says no, and carries on walking, deciding there and then not to come this way again at dusk. Zero tolerance is the only possible way. Park users must know that if they are caught action will be taken. If they realise the authorities will just look the other way they will continue and possibly exacerbate the behaviour No point in having rules if they are not going to be enforced equally for everybody
1.21
2. Comments on prohibited behaviours.

70% considered that the management rules covered most unacceptable behaviour in parks. 26% did not agree with this. 80% agreed with the rule requiring commercial operators to obtain permission.
2.1 Comments about prohibited behaviours There is no mention of drinking alcohol. This is a persistent problem in Hopetoun Crescent Garden. Could we not have some "exclusion zones i.e. alcohol is forbidden - especially in the smaller parks and gardens. Response There is a Byelaw which relates to behaviour arising from drinking alcohol in public places and can allow for exclusion zones to be set up. This would be a far more effective control over alcohol related behaviours then park management rules would be.
2.2
2.3
2.4
2.5
Volunteer groups who help with maintaining parks and woodlands should be allowed to remove or prune plants with permission from their Parks Officer. Businesses should be encouraged to tell the Council of any such activities to enable the Council to monitor the usage of its Parks but it goes against the Code to insist that they have permission for such activities. I think No 1 is much too woolly. Somewhere it should be a list of what sorts of behaviour are actually prohibited, spelling out what is considered likely to cause annoyance. In my case, I am annoyed by any device playing (so-called) music audibly, and I am annoyed by 'friendly' dogs bounding up to me or barking. No doubt other people will be able to say what behaviours they would find annoying. Prohibit Ball games in Princes Street Gardens - I disagree A blanket ban on "Ball games in Princes Street Gardens" seems overly prescriptive and heavy handed. There is plenty of space for small scale ball games in Princes St Gardens at certain times, i.e. when it is not busy. A common sense approach is needed to decide if ball games are appropriate in the Gardens on any given day and whether the individuals involved are being considerate to other park users. If the Gardens are busy and individuals playing are being inconsiderate of other park
Our legal team tell us that this does not breach the Code or Land Reform Act. These are management rules and not criminal law and a degree of reasonable interpretation is acceptable.
Will consider.
Appendix 3 Results of Public Consultation October 2011 January 2012 users then by all means council staff should request that individuals do not play at that time. 11) Begging or busking Firstly I object to these two activities being categorised together as they are COMPLETELY DIFFERENT types of activity. People should be free to sing and express themselves therefore I do not see why buskers should require council permission. Again use common sense though, if there are numerous complaints then by all means move them on. I agree with 11 in that begging should not be allowed. Busking I think needs to be considered differently. Also rule 12 I agree that seeking permission is desirable but I would also hope the process for doing so would be a quick one and that the council were not too strict that community events would suffer as a result of permission not being granted (e.g. a local shop who wanted to set up a stall at a community event would not be blocked from doing so) My understanding is that drinking alcohol is currently banned in parks. Whilst this might want to be relaxed for e.g. Princes St Gdns for other parks is important to have this rule to prevent anti-social behaviour taking place. Also, I understood that ball games are prevented in most parks at the moment. I would suggest that e.g. Star bank Park is included in the list where ball games are banned as the only sizeable flat area in this park is the garden area where ball games would damage the flowers etc. Drinkers congregating in parks and public spaces are one of the main things that affect the quality of other people's experience of those places (hence, things like dispersal orders being implemented in Nicolson Square Gardens and Hunters Square). Without trying to come across like some dour Presbyterians, would it be worthwhile referencing excessive alcohol consumption or is this covered in the first point 'behaviour that causes or is likely to cause annoyance etc'? I think it should depend upon the frequency for example a paid fitness instructor on a one to one basis is probably ok. A whole class being taken in a park maybe ok on a very occasional basis. ITEM 4.2 SHOULD INCLUDE THE REMOVAL OF DEAD WOOD OR TREES. Again there is not enough deterrent to certain behaviour i.e. the council will not apparently take any action for a first offence.
2.6
Will consider.
2.7
Rule 4.1 covers anti-social behaviour arising from alcohol. Will consider.
2.8
Rule 4.1 covers anti-social behaviour arising from alcohol.
2.9
Noted
2.10 2.11
2.12
Park rules are fine but they must be enforced
2.13
2.14
I do not think it is appropriate for the council to interfere with legislated access rights through the medium of local park rules. It's not obvious that a rule "requiring" people to obtain permission to do something which parliament has passed in an Act would ever stand up to scrutiny and so this will, at best, just lead to conflict between informed participants and zealous park wardens. For the record, I do not have any problem with busking/performing, surveying (!!) and so on. I note that the council is happy enough to fill our public parks with tents and HGV fairground rides at various times of year, which I do find disagreeable. Money talks? I believe that driving your car or parking it within a park is wholly and totally unacceptable and should be actively discouraged. I consider the former as antisocial as a pedestrian being forced to get out of their way. I also object strongly to having to wait
The wording of 4.2 covers dead wood and trees. Management rules give the Council the power to evict people, which will be used if and when necessary. All Park rangers and other appropriate officers will be trained to enforce the rules. The management rules only deviate from the Act where there is a genuine management issue, such as professional dog walking, and will not prevent or restrict access rights as determined by the Act.
Noted
Appendix 3 Results of Public Consultation October 2011 January 2012 for considerable periods of time whilst they get their cars out from wherever they have parked because the road is not wide enough for anything else and there is a rush hour at the end of a football/rugby match. Ridiculous! I think it should be very specific about driving - cars, motorbikes, mini motos etc The Golf Tavern Hires out golf clubs to be used on the Bruntsfield Links golf course. The use of BBQs should be banned and not allowed even on paving slabs in the Meadows and Bruntsfield Links.
2.15 2.16
Noted Previous bans have not worked. The new rules seek to find a compromise between those who wish BBQs and those who find them damaging to parks. The management rules need to comply with the Land Reform Act which doesnt refer to size of dog. Management rules give the Council the power to evict people, which will be used if and when necessary. If a dog causes injury then the owner is negligent and liable no matter what Management Rules prescribe. Separation of activities is not considered desirable in most situations. Responsible access is the current policy.
2.17
The control of dogs be reviewed to include large dogs be kept on a lead.
2.18
2.19
They do not go nearly far enough. At present as the rules stand they do not give recourse to take action immediately against transgressors. In addition there is clear potential conflict between certain parties. While in most cases most individuals behave responsibly there should be an assumption of strict liability within the parks. In other words, if a cyclist causes injury by cycling dangerously they may be assumed to be negligent. Similarly if a dog owner has a dog that causes injury they should be assumed to be negligent (This should be OF ANY BREED not just specifically dangerous breeds as many accidents are caused by Retrievers and Spaniels). If it is not legally possible to state strict liability, then certain groups must be separated. To clarify this point, my accident in 2010 was due to a dog running across the path / cycle path. Indeed it ran full speed in to me, causing me serious injury (requiring hospital treatment), and substantial damage to the bicycle. If the rules specified Dogs either in the path, or in the vicinity of the path, must be on the lead (e.g. 10m on either side), then the dog owner could be said to be negligent. It is worth noting that most sensible people already do this in recognition of potential collisions with walkers and cyclists. I am all in favour of places for dog owners to have place for dogs to run free (normally being a dog lover), but these should be separate from cycle paths or play areas. Just as dog owners should not allow their dogs to run in cycle areas, cyclists should not deviate from the paths or other permitted cycle area. Drinking alcohol should be included, camping & BBQ's only within specified areas.
2.20
Rule 12 concerns me. Where would the line fall for a charity using a park for a fundraising / awareness raising events or activities. We use The Dells all the time for educational group visits, school parties and events - should we get written permission for each activity or could we get an annual letter? Parks should be free for all to use and value and this prohibition could stifle economic development and creative use of our green spaces.
2.21
My visits to Edinburgh's parks are routinely spoiled by dogs, and their owners' assumption that everyone in the world loves
The Council considers that responsible drinking of alcohol in parks is acceptable. The rules do prescribe BBQs and camping in specific areas. Permission is likely to be granted to events and activities which have a sustainable impact on the park and its users. Permission enables the Council to monitor and manage the impact of events and commercial activities. The Council would be negligent if it didnt manage parks in a safe and appropriate manner. Noted 6
Appendix 3 Results of Public Consultation October 2011 January 2012 to see their animals running around without restriction. Every park should have a well-enforced dog-free area! Playing of loud music (boom box type radios can be so annoying to other users in an otherwise quiet tranquil spot) It depends on the activity. Take for example organisations which do fitness training on the Meadows. I do not think we should be requiring permission to be obtained. The principle is that we should only require permission be granted when absolutely essential.
2.22 2.23
Noted Permission is likely to be granted to events and activities which have a sustainable impact on the park and its users. Permission enables the Council to monitor and manage the impact of events and commercial activities. The Council would be negligent if it didnt manage parks in a safe and appropriate manner. The issues covered by the management rules reflect those most commonly impacting on public safety and enjoyment of Edinburghs parks. The issues covered by the management rules reflect those most commonly impacting on public safety and enjoyment of Edinburghs parks. Noted Management rules allow Council officials to evict people littering a park. Where there is evidence of accidents and injury the Council would take action.
2.24
2.25
2.26 2.27
2.28
2.29
I believe that any activity that causes or is likely to cause annoyance should be added to the list. I am also concerned that commercial activity is not sufficiently monitored or enforced and can be easily 'hidden' behind the activities applied by other legal park users who are carrying out similar activities to their own ... a form of subletting. I believe that any activity that causes or is likely to cause annoyance should be included in the list. I am also concerned that commercial activity is not currently enforced or monitored in an effective manner and that commercial activities can and are 'hidden' behind other guises of park users without the appropriate permissions. I would like to see fines issued to people using barbecues in a way in which a scorch mark will be caused to grass surfaces. Littering is already covered by legislation, so it seems pointless to include it in Parks Management Rules. Where do people get fishing permits? What about dog owners, walkers and commercial dog walking companies? Cycling by adults should be strictly prohibited in all parks. It is not possible to mix cyclists and pedestrians without conflicts occurring, as indeed they frequently do, both on paths where cycling is permitted by signposting and lanes, and on paths where it is not. Pedestrians are losing the only domain in which they felt safe. They are marginalised on the public highway, have even to dodge cyclists on the pavements, and now they are not even safe in parks. Where is the young parent to take their toddlers for a walk? Where is safe to go for a stroll with an elderly or infirm person? Even dogs have to be kept on the lead for fear of getting in the way of a cyclist. Commercial enterprises such as the Winter Festival should either be banned completely or pay the going market rate plus the cost of any re-instatement of damage caused.
This is not a matter for management rules. It is addressed by the Parks Events Manifesto approved by the Council on 31st August 2010.
3. Comments on dogs and horses

7
86% agreed with the rules on dogs and horses. 14% disagreed.
3.1 Comments about dogs and horses in parks 5.3 refers to "close control" but does not actually say "on a lead". In Hopetoun Crescent we have a large area planted with daffodils and crocus and in early spring we find many of these trampled on by dogs. We would like dogs to be kept on a lead at all times but especially during spring flowering Para 5.4 "heal" should read "heel" I don't think the rules on dogs are stringent enough. They should be kept ON THE LEAD near farm animals and nesting birds. 'Close control' is insufficient. Response Management rules are written to reflect the Scottish Outdoor Access Code. Byelaws can be used in the future if the rule is not effectively controlling inappropriate behaviours. Noted Management rules are written to reflect the Scottish Outdoor Access Code. Byelaws can be used in the future if the rule is not effectively controlling inappropriate behaviours. Noted Noted and passed on to the City Centre Neighbourhood Team. 27/11/11. Most people would argue that dogs provide a greater nuisance than cyclists and SNH research show evidence that dog walking is the greater of the two concerns.
3.2 3.3
3.4 3.5
3.6
3.7
3.8
3.9
catching and fining people for failing to clear up after their dogs should be a top priority I'm a dog owner, and I hope a responsible one. I do think it's a shame that Montgomery Street Park is a dog-free park, and I wonder if there's a solution. Some parks have specific dogfriendly zones - could a fence be erected in Montgomery Street Park to allow this? The rules seem like fair common sense if coming across slightly like there's an intolerant anti-dog agenda creeping in (indicated by the reference to 'dog free areas'). The vast majority of dog owners are totally responsible and do control their dogs and clean up after them and I would be concerned that these 'dog free' areas get bigger and bigger. By all means punish irresponsible dog owners but don't punish all for the behaviour of a few. I would argue that irresponsible cyclists in public parks are a much greater irritant and pose a greater threat to the health and safety of the park user/pedestrian than someone's dog. I think the biggest problem with dogs comes at night, that is when I think owners allow their dogs into the parks without clearing up, mainly because they cannot see what to pick up. I notice that it is worse each morning. ITEM 5.3 IT IS OUR VIEW THAT A DOG CANNOT BE DEEMED TO BE "UNDER CLOSE CONTROL IN ANY PARK" IF IT IS ALLOWED TO RUN FREELY - ESPECIALLY IF IT RUNS INTO TREES.WE WOULD THEREFORE LIKE TO AMEND SECTION 5.3 TO READ " UNDER CLOSE CONTROL ON A LEAD IN ANY PARK". THIS WOULD ALSO HELP SECTION 5.1 " DOGS IN CHILDREN'S PLAY AREA" AND IMPROVE SECTION 5.2 "FOULING" AS WHEN A DOG IS AMONGST TREES IT CANNOT BE SEEN WHETHER IT FOULS OR NOT. Insufficient to properly control dogs. Many of our members have regularly been harassed or even bitten by dogs while cycling in designated areas. When are you going to enforce proper control of dogs? At present I have been bitten once by a dog in an Edinburgh Park and attacked once (the dog damaged by cycling leggings) by biting at my leg. The owners got off on both occasions as neither of the dogs were considered dangerous (collie and spaniel). The owners maintained that they were NOT causing a nuisance!
Noted
Management rules are written to reflect the Scottish Outdoor Access Code. Byelaws can be used in the future if the rule is not effectively controlling inappropriate behaviours.
With sufficient evidence the dogs and their owner can be excluded from parks for up to a year under the proposed management rules.
Appendix 3 Results of Public Consultation October 2011 January 2012 3.10 3.11 3.12 Enforcement must be used to ensure these rules are adhered to Dogs running loose in parks can be a serious problem. However, while I agree with this section of the rules, I note that they will never be enforced, and so are of little practical use. "Under close control" should specify "on a short lead when on a shared-use footpath/cyclepath or other area where a dog could endanger others." For the safety of others, it would be better if dogs were required to be muzzled in public parks. Dogs should not be allowed in parks when not on a lead. I do not think there should be a presumption in favour of horses. They cannot be allowed in public parks, any more than cyclists can, and for the same broad reasons. There is, however, as with cyclists, and argument for segregated routes where horses may be taken. Neither horses nor bicycles can be mixed with pedestrians without conflicts and dangers. I am aware that there are separate management rules for burial grounds and am unsure as to whether they fall under the remit of these new management rules. I think you should ensure that the definition of park within the management rules is tightened to ensure that burial grounds are excluded from the definition. Personally I do not believe that dogs (with exception of working/guide/hearing dogs) should be permitted within a burial ground as is currently the case. The rules about dogs are actually unnecessary as they are covered by existing legislation Noted All Park Rangers and other appropriate officers will be trained to enforce the rules. Management rules are written to reflect the Scottish Outdoor Access Code which does not require the use of leads. Management rules are written to reflect the Scottish Outdoor Access Code which do not require the use of muzzles. As above. The Scottish Outdoor Access Code provides access rights to all forms of none motorised access. Noted
3.13
3.14 3.15
3.16
3.17
Most rules are covered by existing legislation. However these rules allow the Council to evict and exclude whereas other legislation doesnt.
4. Comments on BBQs and fires.

79% agreed with the rules on BBQs, fires and camping. 14% did not.
4.1 4.2 Comments about BBQs fires and camping .............as long as the rules are enforced Open fires and wild camping are bother permitted under the Code as long as these activities are undertaken responsibly and follow the 'leave no trace' ethos. With regard to BBQ's more education is required to ensure people understand the effects of their BBQ e.g. they scorch the earth and the reasons why this is an issue, also people tend to put hot BBQ's into bins without thinking about it - plastic or wood bins can be set alight by this but even putting them into a metal bin can cause injury to others using the bin or those emptying the bin. Barbecues: rules encourage a common sense approach which I agree with. There will be complaints from others I expect! On several occasions in the summer, the sheer quantity of barbecues in the Meadows and Bruntsfield Links, however well intentioned, causes so much so smoke as to noticeably diminish air quality throughout these parks thus causing respiratory problems even for the otherwise healthy. Barbecuing should therefore be restricted further if not banned entirely to combat this. This is often breached at present and ignored by police and Response Noted Signage will be provided where BBQs are an issue.
4.3 4.5
Noted If the rules are not working to sufficiently protect the safety of others and the environment then a case can be made to introduce byelaws. Noted 9
4.6
Appendix 3 Results of Public Consultation October 2011 January 2012 wardens more action has to be taken to comply with regulations People will use barbecues regardless of the rules (which are not to be policed), so we may as well let them officially, as that may encourage more to take simple precautions with the grass. Is the one mile distance contained within SOAC? Difficult to police/enforce.
4.7
4.8
4.9 4.10 4.11 4.12 4.13
4.14
It will be important to ensure clear signage is provided to instruct people to use bricks or barbecue stands. There is no safe way to dispose of the BBQs provided in any park. Health and Safety is important as is the destruction of grass etc. Nothing to add Once again in the course of managing the accumulations of wood along the Water of Leith we have controlled fires to clear this rubbish which could, if allowed to accumulate cause a flood risk. Obtaining written permission for each task, seems an unnecessary layer of administration. All fires are conducted under strict rules, fire departments and neighbours notified and have comprehensive risk assessments covering their use. I agree that wild fires are undesirable but a one rule fits all does not work A good case can be made for the provision of `hearths in park areas where barbecues are common Is 1 mile from a public road reasonable?
We hope that by allowing people to exercise responsibility with BBQs they will do so. It is not contained in the Scottish Outdoor Access Code. However the Council does not believe that any park within one mile of a public road in Edinburgh is suitable for wild camping without detrimental consequence for public safety and the integrity of the environment. Signage is planned. Better bins are planned. Noted Noted Management rules allow a degree of flexibility. They are to support responsible use of parks and their interpretation and enforcement will be based on that.
4.15
4.16 4.17
This may be controversial but there are going to be an increase in rough sleepers. In general I think the rule about not camping on the beaches (? is there a rule) usually means the person is encouraged to get into safer accommodation. But I am concerned for those who cannot access temporary accommodation through the Council, especially outwith the months when free shelters operate. I am generally in favour of people being able to camp or park up their caravanettes near the beach but not on a Park as they are usually shut. I don't think barbecues should be banned. More info on this would be beneficial ... who polices this?
One mile allows for camping in the upper area of Bonaly Country Park which the Council considers is the only place suitable for wild camping. Noted
4.18
4.19
Camping should always be by written prior permission of the council and should not be encouraged in parks. It should be absolutely prohibited in urban parks where grass is mown. However, according to the access code the council cannot prohibit camping anywhere where access is allowed. In other words, if access is allowed, so is camping. Even in Princes Street Gardens! You cannot have blanket rules for every park due to their location and nature. How about Bonaly Parkl for instance where wild camping is allowed.
There is no plan to ban BBQs. Signage is planned and Park Rangers and other Council officials will be trained to enforce the rules. Legal advice from Scottish Natural Heritage would support the ban on camping as this can be justified to protect public safety and the environmental integrity of parks. The one mile limit allows Bonaly (upper area) to be used for Wild Camping
5. Comments on cycling.
10
88% agreed with the rules on cycling. 7% did not agree.

5.1 5.2 5.3 5.4 Comments on cycling If the speed and off road rules apply to cyclists and if the council insists on continuing to allow cars access into parks these should all apply to car drivers, and should be enforced. Should specify that where walkers know that cyclists might be present, they should pay attention, not block the path purposefully and keep dogs on short leads. More emphasis on environmentally sensitive areas, perhaps mention protected species e.g. badgers! It is positive that the Council seeks to encourage cycling in parks. Of course this should be done responsibly, and the rules strike the right balance between promoting healthy activities and protecting public safety. Mountain bikers are a real problem as they cause erosion, churn up pathways causing areas to become a quagmire, not to mention damage to Badger sets. The hill does not lend itself to the creation of dedicated bike paths. Most Trail bikers are responsible and do not cause a problem and tend to slow down when seeing walkers or animals. Areas sensitive to environmental damage' should not be included in the areas open to cyclists. Yes, just as I expect dog owners to take care and act responsibly and keep their dogs under control, I also expect cyclists to take care of other park users. They should keep to designated paths or other permitted areas. In heavily trafficked areas they may need better segregation. E.g. In parts of the meadows it would be better to have better path marking (or even different coloured parts of the paths) to make it clear to cyclists AND walkers where they should be cycling / walking However, proper controls need to be in place. Cyclists simply can't help going at speeds that suit them, and can't be held responsible for endangering others in all circumstances, since people can suddenly appear in their path unexpectedly. The only way to keep cyclists and pedestrians safe is to segregate them. This isn't possible everywhere, but there should certainly be places where cycling is rigidly banned. Off road cycling gives great enjoyment to many but, so often, the cyclists assume they have a right of way and are inconsiderate of other users. Also, although bicycles are legally supposed to have a device for audible warning - a bell! - most do not have to the further annoyance of walkers I do not agree with cycling on the Promenade in Portobello unless there is a speed limit and more monitoring e.g. CCTV, and other safety measures e.g. asking cyclists to dismount at narrow areas. Also events like the Rat Run/Race should not be allowed on Portobello Promenade. There is a definite need for rapid clarification of where cyclists can cycle. In general I am in favour of more mixed use paths. Evidently some of the cyclists using the paths today have not been made aware of this rule. If people are permitted to cycle in park please make this clear through positive signage. I hope one more main cycling route can be introduced, with clear space for cyclists, particularly on the south side where we are supposed to cross Melville Drive twice. The suggested rules are reasonable. Response Cars are not allowed in Parks.
Signs are being designed to make cyclists and walkers aware of their responsibilities. Noted Noted
5.5
Mountain bike facilities are being designed and created in Edinburgh and should help with this problem. The new rules are clear on this. Noted
5.6 5.7
5.8 5.9
Noted Management rules are required to comply with the Land Reform Act. If these are insufficient byelaws can be made to restrict access rights. Noted
5.10
5.11
Noted
5.12 5.13 5.14
The Scottish Outdoor Access Code provides this clarification. Noted Signage is planned for. Noted
11
Appendix 3 Results of Public Consultation October 2011 January 2012 5.15 5.16 It should be added that cyclists should stick to designated paths, not just in woodland but in all parks. Many cyclists constantly breach basic park regulations by cycling on paths designated as 'no cycling' ones and cause a significant health and safety threat to pedestrians and animals. The Meadows is particularly bad in this sense and isn't helped by the frequently worn out footway markings that highlight the 'no cycling' routes. We encourage all our members to obey all rules and the law. Any member found to be negligent or flouting the law or rules (or otherwise brining the club into disrepute) is liable to be expelled. The rules do not reflect the Scottish Outdoor Access Code, which does not specify that cyclists must keep to paths (in fact, it offers specific advice for cyclists who are enjoying cycling offtrail). As a result, it seems unlikely that cyclists will obey the rules if they feel they have the Land Reform Act as a defence. Cycling "at speeds or in a manner likely to endanger other park users" is too weak. Who arbitrates what "speeds likely to endanger" or "a manner likely to endanger" are? Why do the park rules not simply state that "Cyclists must comply with the provisions of the Scottish Outdoor Access Code", rather than reinterpreting it badly? That would cover both interactions with the environment and other park users. It would acknowledge that access to parks is controlled by specific primary legislation, and changes to the Outdoor Access Code would automatically be reflected in the park rules? The type of cyclist that causes a problem by riding carelessly or recklessly will do so in complete disregard for any rules, so please accept the responsible cyclists and deal with the others as best you can. Cyclists should be advised that parks are full of pedestrians, especially where cycleways enter parks. Cyclists should be prepared to stop and have a bell on their cycle. Failure to do/use either should be an offence. The rule on cycling is fine for wild parks like the Pentland Hills. But cycling in urban parks by adults should be absolutely prohibited. It is not possible to mix pedestrians with cyclists without conflicts and danger. This would be contrary to Land Reform Act. All No cycling signs have now been removed.
5.17
Noted
5.18
Incorrect. The code advises keeping to suitable paths or tracks in woodland. The rule prohibiting cycling on areas sensitive to environmental damage is also very reasonable.
This will be included in the new management rules.
5.19
Noted
5.20
Education and signage on tolerant, respectful use by all is important and will be used. This would be contrary to the Land Reform Act. Cycling and walking paths work well in most urban environments. The Union Canal is a good example of a path which accommodates large numbers of walkers and cyclists with little problem. This would be contrary to the Land Reform Act. Cycling / walking paths work well in most urban environments. The Union Canal is a good example of a path where large numbers of walkers and cyclists coexist with little problem.
5.21
5.22
All cycling, apart from children under the age of 10 years, should be banned in all parks particularly the Meadows. If this is done on the grounds of road safety and health and safety then that would comply with the provisions of the Outdoor Code
12
6. Comments on Motor Vehicles

93% agree with the rules for motor vehicles 5% did not agree
6.1 Comments about motor vehicles As stated previously I am of the opinion that absolutely no vehicles other than park staff vans/trucks/maintenance vehicles should be allowed in parks. Planning permission for the as yet opened rugby club in Inch park should not have included any car parking whatsoever. When there was a cricket pavilion there was no car park and as far as I am aware this new facility is the replacement. Ridiculous. Cameron Toll has a vast car park right next to the park, which is more than adequate for shoppers and park users alike. Frankly motor vehicles should be banned from public parks unless they are there for a specific purpose such as setting up a festival performance or similar. Keep our parks clean and green! Some control should be applied to people flying kites and gliders in parks. Maybe make clear it includes powered mini-bikes. Nothing to add (The Council should remove any vehicle in Edinburgh which is parked on a pavement, as well!) Quad bikes should be banned except in designated areas I agree with the rules for motor vehicles but not for toys. As the survey conflates these issues I have had to reject both sections. "Annoy" is a weasel word which can be used in almost any circumstance where an individual wants to make a fuss. Prams and dogs on extending leads are both things that annoy me. Radio controlled cars annoy me even when they are not being used. That does not mean I think it should be possible to eject someone from a park or fine them (under the separate "nobody should do anything to annoy another park user" clause). More information is required as to when and why this permission would be granted and on what basis. Are we saying that Mechanically propelled toys, such as model airplanes or cars, can be used ... but should not be used to endanger or annoy other park users? Also consider permits for use of model boats on ponds and lakes to save issues with wildfowl etc. No vehicles allowed to be left overnight without Council permission. These rules should also apply to bicycles and horses. There should be an additional regarding overnight parking, especially of caravans and motorhomes. Response Noted
6.2 6.3 6.4 6.5 6.6 6.7 6.8
As per the management rules. Rule 4.4 would answer for any dangerous use of kites and gliders. Noted Noted Noted Noted Council officials judgement will be used to determine whether something constitutes unreasonable annoyance.
6.9
Yes. Motorised toys are permitted where they are not causing disturbance/inconvenience. Noted
6.10 6.11
Noted
13
7. Comments on events and activities

69% agree with the rules on events and other activities. 17% did not.
7.1 7.2 Comments about events and other activities Why would anyone be using firearms in a park? Should have the permission of the Chief Constable for that. In the rules, further clarification of what requires permission and what doesn't is required, be explicit therefore eliminating anything that people could be unsure about. I would like to see events and public meeting in parks controlled to times when the grass is growing. Using open green space during October and May kills the grass because it cannot recover until the growing season. Written permission to have a kickabout on a playing field seems OTT Do not know if public meetings need permission out with peak usage times do sport pitches need permissions/regulating? Fireworks & discharge of firearms is a strange one to be lumped in with social & sports gatherings - and yes, they need to be strictly controlled Can't see any harm in holding a public meeting in a park. Why is permission needed for that? Response Noted Difficult as every event is different and has a different impact. The default is if in doubt apply for permission. Noted
7.3
7.4
7.5
7.6
7.7
If over a certain number e.g. 10 or 20. I think small group meetings in Parks should be allowed. The first para is a hostage to fortune. Does it mean 'only' at these three locations? What about the West Meadows is the East Meadows is busy, for example? More information required on Public meetings in other parks and events, performances or ceremonies in any park which would require the Council's written permission. The discharge of fireworks in a nature reserve like the Hermitage of Braid is entirely contrary to the purpose and appropriate use of such places. Your continuing avoidance of Blackford Hill for such purposes is appreciated and we would ask for the continuation of this policy. Discharging is miss-spelled. Council pitches are used informally at any time of the year, so difficult to determine whether they are permitted or not. As far as can see these seem reasonable. Perhaps it would be beneficial to limit public meetings to people, prohibiting the erection of structures, tents etc Public meetings should be able to be held in any public place be they a park or not. Sports pitches should be able to be used at all times. After all we are told to exercise more. Impossible to tell if somebody is carrying a firework. The firearm situation is already covered by legislation and in case would it apply to the armed forces?
7.8 7.9 7.10
It does but sports pitches are maintained and hired out and therefore fall outside access rights. Edinburgh leisure manage and maintain sports pitches for hire. They therefore can not be used openly by the public. Some public meetings can have a detrimental effect on the park and its users. Permission is required so that CEC can manage this. All group meetings in parks will be allowed if there is no detrimental effect to the park or its users. Noted
Information is provided when enquiry is made. Noted
7.11 7.12 7.13
Discharging spelt correctly according to Collins Concise English Dictionary. Noted
Edinburgh leisure manage and maintain sports pitches for hire. They therefore can not be used openly by the public.
14
8. Comments on Bruntfield Links

81% agree with the rules on Bruntsfield links. 7% did not.
8.1 8.2 8.3 Comments about Bruntsfield Links What about other golf courses? Edinburgh Leisure managed sites, why are these not mentioned? More should be done by Park Rangers to enforce the Rules. Some warning signs should be available to warn walkers or others to look out for golf balls. Similarly golfers should (as they usually do) shout a warning if they think walkers or others are in a danger area. The shout "fore" is generally accepted. Additional signage bearing the legend "Bruntsfield Links Golf Course" would be beneficial. Perhaps also "Established 1456" Golfers should not have superior right to members of the public. Both should have equal entitlement to use the Links Response Edinburgh Leisure did not want management rules. More training will be given to park staff. Noted.
8.4 8.5
Noted The management rules reflect the Scottish Outdoor access code.
9. Any other Comments

Comments about any issues that relate to park management rules As a general comment, I would like to suggest that there might be slightly stricter rules for smaller parks and gardens and those regularly used by tourists especially with regard to drinking alcohol and requiring dogs to be on a lead. Dear sirs I am Secretary of the Scottish Detector Club, (summary ; They have permission to detect in some Edinburgh Parks, understand that detecting was banned without permission in 2007 by the Council, would like to see the ban kept in place , would also like to renew permission for his organisation. Simple language should be used in the parks management rules and they should be displayed within parks in a manner that makes them easily read and understood by members of the public. Please don't assume that everyone using a Park will be able to look the rules up on the website. Rules are all very well. It is, however, necessary to ENFORCE the rules, and it doesn't matter a jot how good and reasonable the rules are if they are not enforced. Does the Council have the manpower to do this? If not, there is little point creating rules. Response Noted
9.1
9.2
Noted
9.3
9.4
9.5
Please promote parks in a positive way outlining the kinds of uses that are encouraged in parks
9.6
Rules and regulations are fine but they have to be enforced to ensure that we have a safer and better environment within our
More user friendly interpretations of the rules will be displayed on signs in parks. The list of rules will remain in legal language and accessible through the website. The rules last for ten years and resources and solutions (some being considered at present) to the enforcement issue might become available within that ten year period. It is therefore wise to have the rules in place. Much more user friendly interpretations of the rules will be displayed on signs in parks. The list will remain in legal language and accessible through the Council web-site. The Council is exploring solutions to the issue of lack 15
Appendix 3 Results of Public Consultation October 2011 January 2012 parks etc this is not the case at present! Car use, driving or parking (other than park staff) - should be prohibited in all public parks I would like to see The Meadows and Bruntsfield Links divided into separate open green spaces. There history is completely different and use is hard to control as one large open green space. Friends Groups could be setup for the separate areas allowing for more money to be applied for. Separate Green Flags could also be applied for and I think there is a chance of the Bruntsfield Links getting a Green Flag on its own. The Meadows needs more funds to be spent on it as it is in a bad state of repair. At a time of cuts it is important that the work of the Ranger Service is recognised and their budget safeguarded. Local and regular meetings with park groups such as ours is paramount to making parks more accessible and safe places to visit If you need any more information regarding my accident or wish any point I have made clarified please contact me 0131-4471525 Please consider the uses of parks by charities, community groups and 'friends of..' organisation. They are a very effective tool in managing our greenspaces and Edinburghs 'wild or countryside' spaces are different to their parks (i.e. the Water of Leith). Use of areas for events, gatherings, educational tours etc whether commercial or fundraising for charities should be permitted. Fire is a big issue for us in managing the river and helps to save the council thousands each year. Please consider revising all Event sections. 9.1 and 9.3 are likely to cause resentment - could I not for instance hold a birthday party for my child in a park. 9.2 is also miss leading I would not put firearms and fireworks in the same sentence. Fire arms should be dealt with separately and strongly, but by all means suggest fireworks are not used where they could cause a nuisance or injury. But how could you possibly enforce this, in November and Hogmanay. Wildlife should be explicitly protected from any interference; and measures should be taken/enhanced in all city parks to enable wildlife to flourish. We need rules so that the rights of the majority are not spoiled by the few who consider themselves to be`free agents' However, such rules must be reasonable & not seen to be archaic & oppressive as they so often were in the past More regular ranger visits and some type of recording system of priorities for the park and progress on these. This information should be shared with CCouncils I think the person who wrote these rules ought to be shot. The language is dense, the style turgid, and it is impossible to understand quickly. Why don't you invest in some Plain English training? I could re-write this for you in an hour. It would be clear what you can/can't do, and what the penalties are. There is no excuse for this style of writing in the 21st Century. No wonder councils get a reputation for being rather officious. (Sorry.) Time all that changed. I am against building Portobello High School on Portobello Park! (or building on any Park) We need more not less green space in our increasingly densely built city. I would like the answers to the questions posed ... I would also assume that the feedback information will be open to public scrutiny via the friends groups and Community Councils. of enforcement. Man Rule 8.1. Noted
9.7 9.8
9.9 9.10 9.11 9.12
Noted Noted
Noted
Noted
There is the fireworks act which supports this rule.
9.13
9.14
The wildlife and countryside Act provides this legal protection. Also rule 4.2. Could be re-written to include wildlife. Noted
9.15 9.16
Noted
Management rules are required to be written in the legal manner. They will not be presented in parks for the public in this style. Another plain English interpretation sign will be used. This is a planning issue.
9.17 9.18
It is not the intention to publish the feedback although this report will be available on 16
Appendix 3 Results of Public Consultation October 2011 January 2012 the Councils Web site. Noted
9.19
9.20
9.21
We particularly appreciate the role of the Countryside Ranger Service in their work of management of their sites and the way in which they provide education to children, work with Friends groups, and introduce corporate groups to undertake practical tasks. Use of amplification equipment (radios, televisions, music players, electrical musical instruments) should be prohibited. Only equipment inaudible to others at a distance of two metres should be allowed. As the draft rules are constructed and drafted at the moment the police would not have authority to enforce them as they are not mentioned as being a category of person. The only persons specifically mentioned are council employees. These employees should be duly authorised and carry written authority with them when enforcing the rules.
This is covered by rule 4.1 behaviour which causes annoyance. Rules can only be enforced by the Council and not the Police. The Police would be involved if someone refused to leave a park when instructed to do so by a Council Official. The Police can use breach of the peace to arrest anyone in breach of a Management Rule.
17
Item no
Report no
8.4
CEC/47/12-13/CE
Governance Review and Transformation Programme

25 October 2012 1 1.1 Purpose of report The purpose of this report is to provide an overview of: 1.1.1 progress on all elements of the governance review and the establishment of the cooperative development unit; and 1.1.2 next steps to implement a transformation programme aligned to the councils Strategic Outcomes, Capital Coalition Pledges and the Single Outcome Agreement. 2 Main report
Governance Review
2.1
The governance review has been undertaken following resolution by Council on 30 June 2011 that a thorough review of governance arrangements is required. The review aims to deliver a comprehensive framework for all aspects of governance, strategy and transformation to ensure the following key objectives are embedded within the operation of the Council: a) b) c) d) e) Clear statement of vision, values and strategic objectives aligned with the Capital Coalition Pledges; Effective, efficient and collaborative decision-making and strategic planning; Enhanced, modern and flexible risk and financial management; Robust, clear and accountable organisational frameworks; and Focus on culture change and a shared commitment to high standards of governance.
2.2
Significant progress has been made across all areas of the governance review and a suite of reports with updates on a range of elements of the review, along with an overview of the Edinburgh transformation programme, are provided, for consideration of members, on the agenda for this council meeting as follows: a) b) Operational Governance: Contract Standing Orders, Financial Regulations and Guidance for appointment of consultants. Strategic Governance: i ii iii c) Council Performance Framework; Strategic Plan 2012-2017; and Cooperative development: a framework to advance a cooperative Council 2012-2017.
Programme Governance: Edinburgh transformation programme.
2.3 In addition, following approval of new political management arrangements by the Council on 20 September 2012, implementation of the revised committee model, new committee business processes and related arrangements are well underway.
Political Management Arrangements Implementation
2.4 New political management arrangements will be in place from 29 October 2012 to further develop effective, efficient and collaborative decision-making. 2.5 Consultation has been underway with elected members on implementation of the new committee model and a refreshed suite of committee documentation has been launched alongside streamlined committee business processes. In line with the new arrangements there will be enhanced engagement with and support to members of the public to further influence council decision-making and ensure all processes are open to greater scrutiny. 2.6 On 8 October 2012, an e-petitions web page was launched (www.edinburgh.gov.uk/petitions) and from that date members of the public have had the opportunity to submit petitions for consideration by the new Petitions Committee, subject to validity, on 3 December 2012. The first meeting of the Petitions Committee will also be web cast as an initial extension of the ongoing web-casting pilot. The first meeting of the new Governance, Risk and Best Value Committee will also take place on 6 November 2012. 2.7 A six-month review will be undertaken of all aspects of the refined political management arrangements with ongoing engagement with the public, elected members and officers throughout this period.
Operational Governance
2.8 A range of review work has been completed to re-draft and update the following elements of the Councils operational governance framework: a) b) c) d) Scheme of Delegation to Officers; Contract Standing Orders; Financial Regulations; and Guidance for the appointment of consultants.
2.9 Consultation with both elected members and council officers has been undertaken, with comments and feedback included in Contract Standing Orders, Financial Regulations and Guidance for Appointment of Consultants presented to Council for approval at this meeting. 2.10 Consultation on the revised Scheme of Delegation has been extended to Monday 5 November 2012. The outcome of the consultation process will be reported to the Council meeting in November 2012. 2.11 Existing governance arrangements for arms length organisations (ALEOs) have also been comprehensively reviewed. This has been a significant programme of work and consultation with elected members and officers will commence following this meeting on a revised governance framework. It is anticipated that final proposal for consideration will be presented to the Council meeting in November 2012.
Strategic Governance
Council Performance Framework
2.12 Consultation has been undertaken with the public, partners, staff and leadership to redefine the vision, values and desired culture for the Council. A clear statement of the Councils vision, aligned to the Capital Coalition Pledges, has been developed which is aligned to a new outcome focused Performance Framework for members consideration at this meeting. The outcome of the staff consultation on values will be available in November 2012.
Strategic Plan
2.13 The Strategic Plan is currently the Councils main corporate planning document, providing a framework for the delivery of services and a statement of the Councils vision, strategic direction and priorities. It is proposed that the Strategic Plan will complement the new budget process including five year business planning and will provide an overarching view of the Councils strategic direction.
Cooperative Capital
2.14 One of the Capital Coalitions key pledges is to develop a cooperative approach and a major conference was recently held by the Council Leader to develop this model, involving more than 100 representatives with a range of interests. The 3
Cooperative Development Unit was officially launched on 25 October 2012 and engagement with a number of service area staff and community planning partners is already underway. The unit will work with communities and partners to develop cooperative societies in the city to deliver energy, housing, social care and child care services.
Edinburgh Transformation Programme
2.15 A framework for transformation across the organisation and a range of council services, set out in appendix one, has been developed to support delivery of the councils strategic outcomes, Capital Coalition pledges and single outcome agreement. The framework is aligned to the priority based planning approach that will be a key focus of the upcoming budget process. 2.16 The transformation framework has identified six themed areas for development including customer access and strategy, early intervention, personalisation, health and social care integration, community capacity building and partnership models. The themed approach to develop a framework and delivery plan for transformation activities ensures the council can make significant progress in a strategic and cross cutting way to deliver the councils strategic outcomes and Capital Coalition pledges rather than focusing on discrete service based solutions. 2.17 In parallel with the development of the themes, an operational excellence delivery programme is now underway, to support the transformation of corporate support services, ensuring the required foundations and infrastructure are in place within the Council to secure successful delivery. The operational excellence programme, aligned closely with all aspects of a renewed approach to customer experience and access, will play a vital role in how the council delivers services to those who need them. The intention is to implement a flexible approach to enhance all contacts with the public and communities and ensure both efficient and effective use of resources. 2.18 The Corporate Programme Office will oversee the implementation of the operational excellence programme and support further scoping and preparation of detailed delivery plans across all other themes for members approval, aligned to the budget process. Conclusion 2.19 The governance review has renewed focus on critical aspects of the Councils governance arrangements. The review programme will continue as a key element of the operational excellence programme. In future, a new Governance Service, currently being set up in Legal, Risk and Compliance, will ensure all key areas of political and operational governance have effective levels of support and appropriate oversight. 3 3.1 Financial implications There are no financial implications as a result of this report.
4 4.1 5 5.1 6 6.1
Equalities impact There are no equalities implications as a result of this report. Environmental impact There are no environmental implications as a result of this report Recommendations To recommend that members: a) note progress in each element of the Governance Review; b) note the extension to the consultation period with members on the revised Scheme of Delegation; c) note consultation will commence on a new governance framework for Arms Length External Organisations (ALEOs); and d) note continued progress to develop and implement key elements of the Edinburgh transformation framework and delivery plan.
Sue Bruce Chief Executive

Appendices Contact/tel/Email
Appendix 1
Outline: Edinburgh Transformation Programme
Kirsty-Louise Campbell, Governance Review Programme Manager Tel: 0131 529 3654 Email: kirstylouise.campbell@edinburgh.gov.uk All National Outcome 15 - Our public services are high quality, continually improving, efficient and responsive to local peoples needs. Act of Council No. 8 of 23 August 2012
AppendixOne
Edinburgh transformation framework

Key Actions The Vision
Cooperativevalues: Open Accessible Transparent Participative Accountable
Edinburghisa thriving,successful andsustainable capitalcityinwhich allformsof deprivationandinequalityare reduced
Aim to deliver
Single Outcome Agreement Council Outcomes Capital Coalition Pledges Budget Consultation & Commitments Efficient and Effective Organisation Great Place to work and Develop
EnsureeveryChildinEdinburghhas thebeststartinlife ReducePoverty,inequalityanddeprivation ProvideforEdinburghsprosperity Strengthenandsupportourcommunities andkeepthemsafe EnsureEdinburghanditsresidentsarewellcaredfor MaintainandimprovethequalityoflifeinEdinburgh Edinburghisanefficientandeffective organisationandagreatplacetowork
1. Agree the vision and how to articulate It to staff, communities and partners 2. Align all outcomes to commitments and define and track success metrics in your Performance Dashboard 3. Prioritise the Delivery Plan against the Pledges and Council Outcomes, and gain buy-in from the Elected Members
How you are going to deliver

People- Leadership, Capability Building , Innovation & collaboration Process- Lean services Technology Multi-channel customer focussed services
Edinburgh Transformation Programme

Children Economy and Health & & Young Prosperity Wellbeing People Quality Community Reduce poverty inequality Efficient and Support of Life & Deprivation Effective Organisation
Operational Excellence
Early Best People Customer at their best Intervention Access
Community Partnership Personalisation Capacity Delivery
Why/How?
A great place to work Helping our people realise their potential
CultureandValues
4. Begin engagement through workshops and consultation to redefine values and desired culture with Staff, Partners and Leadership
Item no
Report no
8.4(a)
CEC/54/12-13/CG
Operational Governance: Contract Standing Orders, Guidance for Appointment of Consultants and Financial Regulations
25 October 2012 1 1.1 Purpose of report The purpose of this report is to update on progress to review the Councils operational governance framework and seek approval for revised Contract Standing Orders, Guidance for the Appointment of Consultants and Financial Regulations. Main report
Background
2.1
The Governance Review aims to deliver a comprehensive framework for all aspects of governance, strategy and transformation by the end of 2012. One of the key objectives is to ensure robust, clear and accountable organisational frameworks are in place. A range of review work and consultation has been undertaken on updated and revised versions of the following: a) b) c) d) Scheme of Delegation to Officers; Contract Standing Orders; Guidance on the Appointment of Consultants; and Financial Regulations.
Scheme of Delegation to Officers
2.2
The Council is required to have a scheme of delegation in terms of the Local Government (Scotland) Act 1973. The Scheme is the mechanism for the Council to delegate the authority to perform certain functions to officers and also fulfils the legislative requirement to set out a list of the functions of the Council that are carried out by officers, as required by the Act. The purpose of the Scheme is to allow efficient and effective service delivery by delegating appropriate operational and management functions to officers. In doing so it is important to ensure that officers to whom authority is delegated consult appropriately with elected members and retain full accountability for the 1
2.3
decisions they take. The current Scheme is considerably out of date, both in relation to the powers that are delegated and the legislation cited within it. 2.4 A revised Scheme of Delegation has been prepared to address this in consultation with officers across all service areas of the Council. Consultation on the revised Scheme commenced on 28 September 2012 and is ongoing. The consultation period has been extended to 5 November 2012.
Contract Standing Orders
2.5
The Councils Contract Standing Orders are made in terms of section 81 of the Local Government (Scotland) Act 1973 and set out the legal and operational framework within which procurement activity must be undertaken on behalf of the Council. The existing Contract Standing Orders have remained largely unchanged since around 2001. Developments in procurement practices, including the Public Contracts (Scotland) Regulations 2012 and European case law require the current Contract Standing Orders to be updated in line with these changes. In addition, good governance means that the Contract Standing Orders should be reviewed and revised. The proposed Contract Standing Orders introduce changes designed to improve the Councils purchasing practices and allow greater flexibility to keep up with changing legislation and procurement practices. They will assist in embedding improved purchasing practices across the Council and will be critical to ensuring the delivery of future procurement savings. In order to achieve performance gains and procurement savings, the procurement transformation project has also identified the need to improve certain areas such as commercial and contract management and the need for proper business cases. The governance procedures requiring adherence to improved systems and processes will be essential to this process. The proposed Contract Standing Orders, set out in appendix one, deal with the overarching principles reflecting procurement legislation, contract management, the procurement process and relevant authorisation requirements. The following options are contained within the revised Standing Orders: a) Option One: add the following as paragraph 2.5 The Council may reserve the right to participate in a tendering procedure to providers operating supported businesses, supported employment programmes or supported factories where more than 50% of the workers are disabled persons. Where this right is exercised by the Council the contract award procedures provided by the Regulations will be followed. b) Option Two: add the following as paragraph 9.2 Decisions in terms of 9.1.4 and/or 9.1.5 shall be taken in consultation with the relevant Convener where the estimated value of the contract exceeds 250,000.
2.6
2.7
2.8
2.9
2.10
Members are asked to consider the options outlined in paragraph 2.9 above for inclusion in the Contract Standing Orders. 2
2.11
During the consultation process, positive feedback was received on the proposal to include, if possible, the following or similar provision in Contract Standing Orders: Where permitted by its EU obligations and by Regulations the Council shall where possible seek to ensure that for low value purchases or contracts of an estimated value of less than 25,000 that at least one provider from the City of Edinburgh is included in the process. This proposal is being considered in further detail, with input from Legal Services, and the outcome will be reported to Council. In order that the Contract Standing Orders do not quickly become outdated, it is proposed that the detailed requirements for conducting procurement activity will be dealt with by the Procurement Handbook to be issued, and amended as necessary, by the Director of Corporate Governance. This handbook is being developed as part of the procurement transformation project and will sit underneath the Contract Standing Orders.
Guidance on the Appointment of Consultants
2.12
2.13
Revised Guidance on the Appointment of Consultants, set out in appendix two, has been prepared to supplement the Councils Contract Standing Orders and the Procurement Handbook to outline principles that relate directly to the appointment of consultants. The Guidance is designed to ensure that consultants are only used where necessary and in a way which achieves best value for the Council. The following options are contained within Guidance on the Appointment of Consultants: a) Option one (paragraph 2.1) include but excluding professional services provided by, for example, solicitors, actuaries and architects. b) Option two (paragraph 4.2) - replace approved by the Finance and Budget Committee with approved by the relevant executive committee and reported to the Finance and Budget Committee. c) Option three (paragraph 5.1.2) replace Finance and Budget Committee with relevant executive committee.
2.14
2.15
Members are asked to consider the options outlined in paragraph 2.14 above for inclusion in the Guidance on the Appointment of Consultants.
Financial Regulations
2.16
Section 95 of the Local Government (Scotland) Act 1973 states that every local authority shall make arrangements for the proper administration of its financial affairs and shall secure that the proper officer of the authority (termed the Section 95 Officer) has responsibility for the administration of those affairs. The City of Edinburgh Council has designated the Chief Financial Officer the Section 95 Officer for this purpose. The Local Authority Accounts (Scotland) Regulations 1985 further specify that the system of accounting and control and form of the accounts and supporting records are to be determined by the Section 95 Officer. In this regard, s/he 3
2.17
should ensure that accounting controls are observed and the accounts and supporting records are kept up-to-date. 2.18 The Financial Regulations, set out in appendix three, outline key aspects of the framework of responsibilities, controls and reporting in place to provide assurance of the propriety and consistency of actions undertaken on the Councils behalf. The Regulations also serve as a public demonstration of the Councils commitment to promoting openness, transparency and integrity in its financial affairs. The documents contents are supplemented by a more detailed set of operational Finance Rules, full updating of which is also currently in progress. An interim update of the Financial Regulations was completed in 2010 and the broad structure and content of the Financial Regulations has been retained. The opportunity has been taken, however, to reflect both the intervening structural changes and, specifically, their impact on the assignment of relevant responsibilities along with the results of a review of good practice within other comparable organisations. Financial implications There are no financial implications as a result of this report, the implementation of the review of operational governance will be contained within existing resources. Equalities impact An equality impact assessment identified the need to embed equality requirements into the revised Contract Standing Orders to assist the Council in its duty to advance equality of opportunity. Appropriate revisions have been incorporated into the final version, set out in appendix one. A short life working group has been set up to ensure equality requirements are included within the Procurement Handbook and other relevant documentation. A further report will be submitted to the Corporate Policy and Strategy Committee in spring 2013 for further consideration. Environmental impact There are no environmental implications as a result of this report. Recommendations
2.19
3 3.1
4 4.1
4.2
5 5.1 6
6.1 To recommend that the Council: 6.1.1 considers the inclusion of options 1 and 2, outlined in paragraph 2.9 of this report in the revised Contract Standing Orders; 6.1.2 repeals existing Contract Standing Orders and approves in their place Contract Standing Orders set out in appendix one, as adjusted, such repeal and approval to take effect from 29 October 2012;
6.1.3 considers the inclusion of options 1, 2 and 3, outlined in paragraph 2.14 of this report in the Guidance for Appointment of Consultants; 6.1.4 repeals existing Guidance for the Appointment of Consultants and approves in their place the Guidance for Appointment of Consultants set out in appendix two, as adjusted, such approval to take effect from 29 October 2012; 6.1.5 repeals existing Financial Regulations and approves in their place the revised Financial Regulations, set out in appendix three, such approval to take effect from 29 October 2012; and 6.1.6 delegates authority to the Director of Corporate Governance to take such actions and make such minor adjustments to the documents set out in appendices one, two and three of this report as may be necessary in order to implement the decisions of Council in relation to this report.
Alastair D Maclean Director of Corporate Governance
Appendices
Appendix One Contract Standing Orders Appendix Two Guidance on the Appointment of Consultants Appendix Three Financial Regulations
Carol Campbell. Acting Head of Legal, Risk and Compliance (carol.campbell@edinburgh.gov.uk) Hugh Dunn, Acting Head of Finance (Hugh.dunn@edinburgh.gov.uk) Kirsty-Louise Campbell, Corporate Governance (kirstylouise.campbell@edinburgh.gov.uk)
Contact/tel/Email
All National Outcome 15 - Our public services are high quality, continually improving, efficient and responsive to local peoples needs. Contract Standing Orders EQIA http://www.edinburgh.gov.uk/downloads/download/2344/contracts_standing_orders_ eqia
Appendix 1 CITY OF EDINBURGH COUNCIL
CONTRACT STANDING ORDERS
Contents
1. Preliminary, definitions and general principles 2. Procedures 3. Role and responsibilities of directors 4. Tender documents 5. Evaluation of tenders and quotes 6. Acceptance and award of contracts 7. Eligibility to tender and termination, variation or suspension of a contract 8. Electronic procurement 9. Waiver of contract standing orders 10. Contract extensions or variations 11. Review of contract standing orders 3 5 6 7 7 8 8
8 9 9 10
Schedule: Relevant values and associated tendering procedure. Contract Standing Orders flow chart
CONTRACT STANDING ORDERS These Contract Standing Orders of the City of Edinburgh Council (Council) apply from 29 October 2012 and apply (with certain exceptions) to all contracts made by or on behalf of the Council for the procurement of the execution of works, the supply of goods and materials to the Council, and/or for the provision of services. 1 1.1 Preliminary Extent and interpretation 1.1.1 The Council makes these Standing Orders in terms of section 81 of the Local Government (Scotland) Act 1973. These Standing Orders must be interpreted in accordance with the key principles of transparency, equal treatment, non-discrimination and proportionality. These Standing Orders apply from 29 October 2012 and apply, subject to the provisions of Standing Order 1.1.5, to all contracts made by or on behalf of the Council for the procurement of the execution of works, the supply of goods and materials to the Council, and/or for the provision of services (including consultancy services). The Standing Orders are subject to the over-riding provisions of European Union, United Kingdom, or Scottish legislation. They are also subject to any EU Commission, UK government or Scottish Executive guidance on public procurement that may be issued from time to time. The Standing Orders do not apply to any of the following: 1.1.5.1 1.1.5.2 contracts of employment; contracts solely relating to the lease or disposal of heritable property; and circumstances in which a waiver of the Standing Orders has been granted in accordance with Standing Order 9.
1.1.2
1.1.3
1.1.4
1.1.5
1.1.5.3
1.1.6
The Standing Orders must be read in conjunction with, and all Council staff must comply with, the Procurement Handbook and any Council guidance on the appointment of consultants. Where there is any discrepancy, the Standing Orders shall take precedence. Failure to comply with these Standing Orders when making purchases or seeking offers may result in disciplinary action.
1.1.7
1.1.8
Any query regarding the application or interpretation of these Standing Orders should be made in the first instance to the Director of Corporate Governance.
1.2
Definitions and interpretation 1.2.1 Contract Owner means the nominated contract owner for a specific contract; Convener means the Convener of the Council, a committee or sub-committee of the Council. Director means the relevant Director of the procuring service area or, in the case of cross-directorate purchasing, the Director nominated by the Chief Executive or by agreement among the Directors; EU Thresholds means the prescribed threshold values set by the EU Commission for supply, services or works contracts as they may be amended from time to time; Procurement Handbook means the procurement handbook issued by the Director of Corporate Governance, setting out the detailed requirements for the conduct of procurement activity within the Council (as amended from time to time); and Regulations means the Public Contracts (Scotland) Regulations 2012 or successor legislation (as amended from time to time); Schedule means the schedule to these Standing Orders; Standing Orders means these standing orders including the Schedule and Standing Order shall be interpreted accordingly.
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7 1.2.8
1.3
General Principles 1.3.1 The relevant officer with responsibility for commissioning and/or procuring shall, prior to commencing any procurement process, ensure that an appropriate business case or options appraisal that meets the strategic and service objectives of the Council is completed in order to ensure that best value is achieved and that complies with relevant sustainable development and equality requirements. Such business case or options appraisal shall include consulting with other Council service areas to ensure that where there is a need for the same or similar services that they are jointly procured where appropriate. Throughout the life of a contract the contract should be monitored by the Contract Owner in respect of performance; compliance with the specification and other terms of the contract; cost; best value
1.3.2
requirements; management. 1.3.3
equality
requirements,
delivery
and
risk
All procedures for initiating procurement, developing procurement plans, inviting and receiving tenders, approval of contracts, and all contractual arrangements entered into shall comply with the Councils equality and sustainability requirements and policies and, where appropriate, contractual or procurement arrangements shall include the use of community benefit clauses.
2 2.1
Procedures In addition to the obligations in Standing Order 1.3.3, before commencing a tendering procedure the relevant Director must consult with the Commercial and Procurement Manager to establish whether: 2.1.1 any existing contracts or framework contracts accessible to the Council may fulfil their requirements; or there is any existing internal provision (including the Councils significant trading operations) or other resources which could be used.
2.1.2
2.2
The procedure for the award of any contract shall depend upon the estimated aggregated value of that contract. The EU rules on aggregation of contracts shall apply. Subject to Standing Order 9, or where otherwise legally permitted in respect of proposed contracts which exceed the EU Thresholds, the minimum associated tendering procedures that must be applied are detailed in the Schedule. The general EU principles of equal treatment, non discrimination, transparency and proportionality requiring a degree of advertising to enable open competition apply to all public contracts. Certain specified contracts are, however, subject to a different procurement regime. These services are listed in the Procurement Handbook together with guidance on how to procure these services, which must be applied. [Option 1: The Council may reserve the right to participate in a tendering procedure to providers operating supported businesses, supported employment programmes or supported factories where more than 50% of the workers are disabled persons. Where this right is exercised by the Council the contract award procedures provided by the Regulations shall be followed.] The Commercial and Procurement Manager shall be consulted as appropriate in respect of tendering arrangements for any proposed contracts with an estimated value of less than 25,000.
2.3
2.4
2.5
2.6
2.7
The Commercial and Procurement Manager shall advise on and make all tendering arrangements for any proposed contracts with an estimated value in excess of 25,000. Direct purchasing above 1,000 without competitive tendering is permissible only in those circumstances that would be permitted by the Regulations or in accordance with Standing Order 9. If an unsuccessful tenderer brings a written or formal challenge against the Council in relation to a tender exercise or questions the integrity of the tender process, the recipient of the notice of challenge or query must inform the Commercial and Procurement Manager. The Commercial and Procurement Manager must inform the Head of Legal, Risk and Compliance as to potential legal challenges. The Role and Responsibilities of Directors Each Director retains responsibility for selecting and appointing contractors, providers or suppliers for their directorate, but shall seek guidance as appropriate from the Commercial and Procurement Manager. The Commercial and Procurement Manager shall be consulted at the earliest opportunity to ensure that all purchasing arrangements are made in compliance with these Standing Orders. Each Director has responsibility for all contracts tendered and let by their Directorate and is accountable to the Council for the performance of their duties in relation to contract letting and management, which are: 3.2.1 to ensure compliance with these Standing Orders and the Procurement Handbook; to ensure no contract is entered into by the Council without seeking advice where appropriate from the Commercial and Procurement Manager and Head of Legal, Risk and Compliance and having proper regard to such advice; to ensure that appropriate contract security (for example guarantees or performance bonds) is obtained where required or considered prudent; to prepare an appropriate business case/options appraisal for each proposed purchase or contract; to prepare, in consultation with the Commercial and Procurement Manager, appropriate contract and tender documents which clearly specify the scope, quality and quantity of the works, goods or services; to check whether there is any existing Council or other collaborative framework that can appropriately be used to achieve best value for the Council before undergoing a further
2.8
2.9
3 3.1
3.2
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
competitive tender process; 3.2.7 3.2.8 to keep all bids confidential subject to any legal requirements; where appropriate to enter all purchase order information onto the relevant Council financial system; to ensure all relevant staff are familiar with these Standing Orders and the Procurement Handbook or other guidance issued in respect of these Standing Orders; to ensure contracts and any appropriate contract security documents are signed before work, services or supply provision commences; to put in place arrangements for efficient contract management including the identification of a Contract Owner, for the entire duration, of the contract; to retain a copy of the contract and keep proper records of all contracts and tenders, including minutes of tender evaluation panels and other meetings; to take immediate action in the event of a breach of these Standing Orders or the Procurement Handbook within his/her directorate; and to make appropriate arrangements for the opening of tenders and their secure retention so as to protect the integrity of the procurement process.
3.2.9
3.2.10
3.2.11
3.2.12
3.2.13
3.2.14
4. 4.1
Tender Documents The tender documents shall clearly set out the proposed method of evaluation as well as the scope, timing, quality and quantity of the works, services and supplies required by the Council. The Head of Legal, Risk and Compliance will be consulted on conditions of contract for particularly significant or complex projects or contracts. Evaluation of Tenders and Quotes Tenders and quotes shall be evaluated on the basis of either of the following: a) b) lowest cost; or most economically advantageous.
4.2
5. 5.1
Lowest cost should generally only be the basis of evaluation for simple procurements of short-term, low-level services or goods of a standard specification.
5.2
Tenders and quotes received after the closing date and time stipulated for return of tenders, or tenders which are incomplete or in an incorrect format will not be opened or considered unless the Council, acting proportionately, decides that there are circumstances which allow it to exercise discretion in allowing consideration of the tender. The Commercial and Procurement Manager must be consulted if tenders are submitted late, incomplete or in an incorrect format. Tenders shall be evaluated by a tender evaluation panel which should comprise officers having sufficient knowledge and technical ability to enable them to evaluate detailed tenders appropriately. The evaluation process shall be fully and appropriately documented. Acceptance and Award of Contracts Following the conclusion of the procedure for awarding contracts set out in these Standing Orders and, where applicable, the expiry of the mandatory standstill period, the resulting contract between the Council and successful tenderer shall be entered into as detailed in the Schedule. Eligibility to tender and termination, variation or suspension of a contract The relevant Director, having due regard to legal advice from the Head of Legal, Risk and Compliance, may treat a potential tenderer as ineligible to tender where there are reasonable grounds to conclude that the contractor or potential tenderer: 7.1.1 has committed an act of grave misconduct in the course of their business or profession; or falls within one or more of the other grounds set out in Regulation 23 of the Regulations.
5.3
6. 6.1
7. 7.1
7.1.2
7.2
The relevant Director may terminate, suspend or vary a contract, in accordance with the express or implied terms of the contract and may also take such further action with regard to any contract as the Council is legally entitled to take. The relevant Director will where appropriate report any actions taken in accordance with Standing Order 7.1 or 7.2 to the next meeting of the Finance and Budget Committee. Electronic Procurement Requests for quotations and invitations to tender may be issued and/or received by electronic means.
7.3
8 8.1
9. 9.1
Waiver of Standing Orders These Standing Orders may be waived by the relevant Director in consultation with the Director of Corporate Governance, or, where the value does not exceed 25,000, by the relevant Head of Service in consultation with the Commercial and Procurement Manager, if they are satisfied, after considering a written report by the appropriate officer, that the waiver is justified because: 9.1.1 the nature of the market for the works to be carried out or the goods or services to be provided has been investigated and is demonstrated to be such that a departure from the requirement of Standing Orders is justifiable in accordance with EU law and principles (for example when for artistic or technical reasons, or for reasons connected with the protection of exclusive rights, the contract may only be awarded to a particular provider); the contract is for works, goods or services that are required in circumstances of extreme urgency that could not have been foreseen; or the circumstances of the proposed contract are covered by legislative exemptions; or it is in the Councils best interests; or there are other exceptional. circumstances which are genuinely
9.1.2
9.1.3
9.1.4 9.1.5
9.2
[Option 2 Decisions in terms of 9.1.4 and/or 9.1.5 shall be taken in consultation with the relevant Convener where the estimated value of the contract exceeds 250,000.] A record of the decision approving a waiver must be kept by the relevant Director and where appropriate an entry made in the appropriate register. Contract extensions or variations A Director may authorise an extension to a contract, or any other variation including a consequent change in price, provided such extension or variation is not contrary to the Regulations or the Council's EU obligations and that any consequent change in price does not exceed the approved budget for the contract. A Director shall not extend or vary a contract if such extension or variation is not expressly permitted by the contract without seeking advice from the Head of Legal, Risk and Compliance.
9.3
10 10.1
10.2
10.3 11
The EU rules on aggregation of contracts shall apply. Review of Standing Orders
11.1 These Standing Orders will be reviewed annually at the first ordinary Council meeting.
10
SCHEDULE RELEVANT VALUES AND ASSOCIATED TENDERING PROCEDURE

Total value for duration of contract or purchase (aggregation rules apply) Up to 1,000 Procedure Approvals Committee Approval Acceptance /Signing
Appropriate choice of provider documenting reasoning and quote or use existing local, national, Council framework or calloff contracts or Public Contracts Quick Quote facility.
Head of Service in consultation with Commercial and Procurement Manager as appropriate
Not required
Head of Service, or Director
1,000 to 25,000 *
3 written/formal quotations written description of requirements followed by written / electronic submission of quotes or use existing local, national, Council framework or calloff contracts or Public Contracts Quick Quote facility.
Head of Service in consultation with Commercial and Procurement Manager as appropriate, and Head of Legal, Risk and Compliance as appropriate
Not required
25,000 to EU Thresholds for services and supplies *
Invitation to tender following public advertisement - Public Contracts Scotland portal and/or equivalent should be used or use existing local, national, Council framework or calloff contracts or Public Contracts Quick Quote facility up to a value of 50,000.
Head of Service in consultation with Commercial and Procurement Manager (and Head of Legal, Risk and Compliance as appropriate)
Not required
11
Total value for duration of contract or purchase (aggregation rules apply) 25,000 to EU Thresholds for works
Procedure
Approvals
Committee Approval
Acceptance /Signing
Invitation to tender following public advertisement - Public Contracts Scotland portal and/or equivalent should be used or use existing local, national, Council framework or calloff contracts or Public Contracts Quick Quote facility up to a value of 50,000.
Head of Service in consultation with Commercial and Procurement Manager (and Head of Legal, Risk and Compliance as appropriate) up to 500,000 Director approval between 500,000 and 1.5million.
Approval to award sought from Finance and Budget Committee where value exceeds [1.5million] [Option : appropriate level to be considered]
Above EU Threshold for services and supplies *
Invitation to tender following advertisement in OJEU - Public Contracts Scotland portal and/or equivalent should be used or use existing local, national, Council framework or calloff contracts
Director approval in consultation with Commercial and Procurement Manager (and Head of Legal, Risk and Compliance as appropriate), up to 1million [Option : 500,000 in the case of consultancy services]
Approval to award sought from Finance and Budget Committee where value exceeds 1million. [Option : 500,000 in the case of consultancy services]
Director or Proper Officer in accordance with Scheme of Delegation
Above EU Threshold for works
Invitation to tender following advertisement in OJEU - Public Contracts Scotland portal and/or equivalent should be used or use existing local, national, Council framework or calloff contracts
Director approval in consultation with the Commercial and Procurement Manager, Head of Legal, Risk and Compliance to be consulted as appropriate
Approval to award sought from Finance and Budget Committee
Director or Proper Officer in accordance with Scheme of Delegation
*As per Standing Order 2.4 certain specified contracts are subject to a different procurement regime. These services are listed in the Procurement Handbook together with guidance on how to procure these services, which must be applied.
12
13
14
Appendix 2
Guidance on the Appointment of Consultants
City of Edinburgh Council Guidance on the Appointment of Consultants 29 October 2012
Introduction
1.1
This guidance has been produced to supplement the Councils Contract Standing Orders and Procurement Handbook with principles that relate specifically to the appointment of consultants.
1.2
When appointing a consultant, Directors shall comply with the terms of the Councils Contract Standing Orders and the Procurement Handbook.
1.3
This guidance is intended to ensure consultants are used only where necessary and in a way which achieves best value for the Council.
Definition of consultant
2.1
For the purposes of this guidance, a consultant is a specialist who charges a fee for providing advice or services in a particular area of expertise such as business management, human resources, environment, communication, information technology, property and estates and financial services [OPTION 1: but excluding professional services provided by, for example, solicitors, actuaries and architects].
Principles to be applied when appointing consultants
No alternative resource 3.1 Directors shall only appoint a consultant where the service in question cannot be provided internally due to a lack of capability or expertise or capacity.
Within approved budget 3.2 The cost of appointing a consultant shall be contained within the budget of the service or project for which the consultant is to be appointed.
Monitoring of outcomes 3.3 Directors shall prepare a clear task definition and identify the required outcomes of the service prior to appointing a consultant.
3.4
Directors shall ensure that appropriate monitoring arrangements, such as gateway reviews, are in place prior to a consultants appointment in order that payments to the consultant are only made in accordance with the satisfactory achievement of measurable outcomes.
Knowledge transfer 3.5 Where consultants are appointed, Directors shall ensure that where appropriate, Council staff fill key project roles and work closely with consultants to maximise the potential for transfer of skills and knowledge to Council staff.
Reporting and approval
Reporting to committee 4.1 Directors shall maintain up-to-date records on the consultancy spend within their service area and shall include consultancy spend as a line in the detailed monitoring reports for months three, six, nine and twelve of each financial year to the Finance and Budget Committee and the relevant executive committee(s).
Committee approval 4.2 The appointment of a consultant where the services or series of related services are anticipated to be provided at an aggregate cost of 25,000 or more shall be approved by the Finance and Budget Committee [OPTION 2: approved by the relevant executive committee and reported to the Finance and Budget Committee] subject to the following exceptions: 4.2.1 services that are essential to the completion of a pre-approved Council project but which are not available internally, including services provided by architects, engineers, solicitors professionals; and 4.2.2 services provided by counsel in Court of Session or Supreme Court cases or services provided by solicitors under the Councils legal framework agreement. or other
Re-engagement of former employees as consultants
5.1
A Director shall not appoint a former employee who has been granted early retirement or been given a redundancy or severance package (former employee) as a consultant unless: 5.1.1 a minimum of [3 years] has elapsed since the former employee ceased to be employed by the Council;; or 5.1.2 subject to consultation with the Convener/vice-Convener of the Finance and Budget Committee [OPTION 3: relevant executive committee], the Director is satisfied that there is a clear and robust justification for the appointment of the former employee as a consultant.
Appendix 3 CITY OF EDINBURGH COUNCIL FINANCIAL REGULATIONS
Contents
1. Status and statutory responsibility 2. Application 3. Responsibilities and observance 4. Principles and key areas of the control framework 3 4 4 6
1. 1.1
Status and Statutory Responsibility These regulations are made under section 95 of the Local Government (Scotland) Act 1973. Section 95 states that every local authority shall make arrangements for the proper administration of its financial affairs and shall secure that the proper officer of the authority (termed the Section 95 Officer) has responsibility for the administration of those affairs. The Local Authority Accounts (Scotland) Regulations 1985 further specify that the system of accounting and control and the form of the accounts and supporting records are to be determined by the Section 95 Officer and that s/he is to ensure that accounting controls are observed and the accounts and supporting records are kept up to date. S/he is also responsible for publishing the Annual Accounts of the Council and for making the arrangements for the statutory audit required by s96 of the 1973 Act. The City of Edinburgh Council has designated the Chief Financial Officer as the Section 95 Officer and therefore as the officer responsible for the administration of the Councils financial affairs in terms of section 95 of the 1973 Act. It should be noted that the Lothian Pension Fund has a separate designated Section 95 Officer for accounting arrangements. All subsequent references in this document, however, are to the duties pertaining to the Councils Chief Financial Officer. A more detailed set of Finance Rules, which prescribe the procedures to be followed, has also been prepared. While these rules and other relevant procedures and policies are not contained within these financial regulations, they are issued under their authority and have the same status as if they were included in the body of these regulations. The Chief Financial Officer will establish a programme of review for all relevant documents. Directors and officers may also seek the issue, amendment, clarification or supplementing of the regulations, finance rules or associated procedures and policies for any areas of responsibility not previously addressed. Any breach or non-compliance with these regulations or the associated finance rules, procedures or policies issued under their authority must be reported immediately to the Chief Financial Officer, who may consult others as s/he sees fit to determine the proper action.
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2. 2.1
Application The City of Edinburgh Council is responsible for ensuring that its business is conducted in accordance with the law and appropriate standards and that public money is safeguarded, properly accounted for and used economically, efficiently, effectively and ethically. The Councils activities are furthermore guided by a set of underlying principles and responsibilities fostering openness, integrity and accountability. In discharging these responsibilities, elected members and senior officers are responsible for implementing effective arrangements for governing the Councils affairs and facilitating the effective exercising of its functions including arrangements for managing risk. As a consequence of these responsibilities, the Council must regulate the actions taken on its behalf that carry financial implications to provide assurance of their propriety and consistency. It is furthermore a requirement of these regulations that all financial transactions are within the legal powers of the Council. These Financial Regulations thus form a key element of the maintenance of a robust, clear and accountable governance framework for the Council. Responsibilities and Observance Chief Executive The Chief Executive, as head of the paid service, has authority over all officers and responsibility for ensuring an efficient use of resources but does not have operational responsibility for service areas, which is delegated to Directors. Consequently, the Chief Executive relies on senior officers advice and information on operational matters. The Councils Scheme of Delegation to Officers sets out the powers delegated to officers pursuant to the Local Government (Scotland) Act 1973. As noted in paragraph 1.4, the Chief Financial Officer has been designated the Councils Section 95 Officer responsible for the administration of the Councils financial affairs. Role of the Chief Financial Officer The Chief Financial Officer is responsible for advising the Council on all financial matters and for monitoring and reporting on its financial performance and position.
2.2
2.3
3. 3.1 3.1.1
3.1.2
3.2 3.2.1
3.3 3.3.1
Directors Directors are responsible for establishing sound arrangements for planning, appraising, authorising and controlling their operations in order to achieve continuous improvement, economy, efficiency and effectiveness, and their financial targets, in so doing having due regard to sustainability and equalities considerations. Directors are fully accountable for the financial performance of their service area against the budget allocated. They may incur revenue expenditure in furtherance of agreed Council policies only to the extent that budgetary provision has been made. Directors are further charged with the implementation of the risk management strategy in their service areas and for ensuring its effectiveness and review. Paragraphs 3.2 and 3.4 of the Scheme of Delegation provide that: (a) In the event that the Director is unavailable, his/her Depute or the head of the relevant service will have delegated authority to take urgent decisions in the absence of the Director; (b) Directors may sub-delegate their delegated powers to their Depute(s) or head(s) of service or such other officer(s) in their directorate as they may consider appropriate.
3.3.2
3.3.3
3.3.4
3.3.5
With the exception of urgent decisions, which must be taken in accordance with the scheme of delegation to officers, authority to discharge financially-related responsibilities must be delegated formally in writing. This requirement applies to delegations of authority for financial matters by all levels of management. Directors will formally report major financial issues to the Chief Financial Officer and Chief Executive, who will instruct appropriate action. Internal Audit and Risk Management The Head of Legal, Risk and Compliance will arrange for the provision of a continuous internal audit function, overseen by a suitably-qualified and experienced individual, to review the accounting, financial and other operations of the Council. This individual (the Head of Internal Audit and Risk Management) will also oversee the development and implementation of an appropriate risk management strategy. It is the Head of Internal Audit and Risk Managements responsibility to provide the Chief Executive, Chief Financial Officer, Corporate Management Team and elected members with an annual assurance
3.3.6
3.4 3.4.1
3.4.2
statement on compliance with Financial Regulations and the Local Code of Corporate Governance. 3.5 3.5.1 Elected Members Elected members responsibilities with regard to financial matters reflect a number of facets, including: (a) Setting the authoritys financial strategy, including budget-setting; (b) Setting the authoritys strategic direction and arrangements for the securing (and demonstration) of best value; (c) Ensuring proper control is exercised over the authoritys expenditure through scrutiny of periodic financial reports comparing expenditure with the level of budgetary provision; (d) Holding senior officers to account with regard to discharging all relevant financial responsibilities within their control; (e) Encouraging the development of service targets/performance measurements of a financial/non-financial nature to monitor service achievements. 3.5.2 In this regard, the respective remits and key functions of Council, the Governance, Risk and Best Value Committee, the Finance and Budget Committee and other Executive Committees are set out in the Councils Committee Terms of Reference and Delegated Functions. External Audit The external audit of the Council seeks to assess the extent to which the stewardship of its financial affairs is subject to a regime of accountability where monies are properly accounted for, safeguarded and used economically, efficiently and effectively. The scope of this audit is wider than that of the private sector equivalent, encompassing coverage of the financial statements, regularity, propriety and best value, including the securing of value for money. At present, this role is undertaken on the Accounts Commissions behalf by Audit Scotland.
3.6 3.6.1
4. 4.1 4.1.1
Principles and Key Areas of the Control Framework Financial Management The Chief Financial Officer will, in conjunction with the relevant Director, provide to all Executive Committees (including the Finance and Budget Committee) and the Governance, Risk and Best Value Committee regular monitoring reports, including reports on the final outturn, together with any recommendations. Financial Control As noted at 1.3, The Local Authority Accounts (Scotland) Regulations 1985 require that the system of accounting and control, and the form of the accounts and supporting records, should be defined by the Chief Financial Officer, who will ensure that the system is adhered to and that the accounts and supporting records are kept up to date. The Regulations also require the Chief Financial Officer to submit the Abstract of Accounts to the Council and the Controller of Audit by the prescribed dates. The Chief Financial Officer is responsible for ensuring that the accounts are produced in compliance with existing legal and accounting requirements. Directors are required to provide all relevant information to the Chief Financial Officer in accordance with the instructions issued annually. As the officer who is statutorily responsible for all financial matters the Chief Financial Officer will implement procedural controls to ensure that: (a) All expenditure is a valid charge; (b) Income owed is collected; (c) Assets are protected; (d) Liabilities are accounted for; (e) Financial reports are prepared.
4.2 4.2.1
4.2.2
4.2.3
4.2.4
4.3 4.3.1
Risk Management and Internal Control In accordance with the Chief Financial Officers responsibility for financial control and the Local Code of Corporate Governances requirements for the effective management of risk, the Chief Financial Officer has approved financial rules to address these matters.
4.4 4.4.1 4.4.1.1
Systems and Procedures Accounting Arrangements The following will be carried out according to procedures and instructions issued by the Chief Financial Officer: (a) Preparation of the statutory Abstract of Accounts; (b) Production of financial information in Council strategic plans, including estimated revenue and capital expenditure.
4.4.1.2
All financial records, systems and any changes thereto are subject to the written approval of the Chief Financial Officer following consultation with Directors. The following principles must be observed in the allocation of accounting duties: (a) The duties of providing information regarding sums owed to or by the Council, and calculating, checking and recording these sums must be separated as completely as possible from the duty of collecting or disbursing them; (b) Officers responsible for examining and directing accounts of cash transactions cannot be engaged in any of these transactions; (c) All checking and authorisation undertaken by officers must be evidenced by initials or signature, whichever is appropriate; (d) All claims, returns or written submissions relating to grants and financial data must be submitted to the Chief Financial Officer for approval and signed by an authorised signatory of Corporate Governance - exceptions must be agreed by the Chief Financial Officer; (e) Financial records, including contract documents for work done, services and supplies, may only be disposed of in accordance with arrangements approved by the Chief Financial Officer.
4.4.1.3
4.4.2 4.4.2.1
Revenue Budgets Directors are required to prepare revenue estimates in accordance with guidance issued by the Chief Financial Officer. The Chief Financial Officer will assist Directors to prepare financial information for inclusion in the revenue estimates. When the revenue estimates have been approved by Council, they become the Revenue Budget.
4.4.2.2
The Chief Financial Officer will prepare a financial context report for the Finance and Budget Committee for the next and future years. The Finance and Budget Committee will then remit the report to Council and may make recommendations to Council on setting Council Tax and rent for Council houses for the next financial year and on indicative figures for future years. After considering the report and any recommendations, Council shall approve the allocation of resources, authorise the spending and set the Council Tax, rent for Council houses and relevant fees and charges for the following financial year at a meeting before 11th March each year. The Chief Financial Officer will determine what constitutes revenue expenditure and the relevant accounts in which transactions should be recorded. Capital Budgets Directors are required to prepare capital estimates in accordance with guidance issued by the Chief Financial Officer. When the capital estimates have been approved by Council, they become the Capital Investment Programme. The Chief Financial Officer will determine what constitutes capital expenditure and the relevant accounts in which transactions must be recorded. Capital estimates must be submitted for scrutiny by the Finance and Budget Committee, whose recommendations will be referred to the Council for approval. Reporting Requirements All Council and committee reports are required to include a statement of the financial consequences of the proposals for current and future years. In the event that reports do not meet the above requirement, or insufficient time is allowed for them to be properly considered, the Chief Financial Officer may request that the Director or other officer submitting the report withdraws it from the Council or committee agenda.
4.4.2.3
4.4.2.4
4.4.3 4.4.3.1
4.4.3.2
4.4.3.3
4.4.4 4.4.4.1
4.4.4.2
4.4.4.3
The Chief Financial Officer, in conjunction with Directors, is required to submit detailed monitoring reports for months three, six, nine and twelve of each financial year to the relevant executive committee(s) and the Governance, Risk and Best Value Committee. These reports will compare actual expenditure to date with the budget position, project the expenditure outturn for revenue and capital expenditure, and report key service issues. The Chief Financial Officer will specify the format of such monitoring reports. The Chief Financial Officer may give such direction to Directors as to measures to be taken in relation to the revenue budget or the capital investment programme during the remainder of the financial year as may be necessary or advisable in the circumstances prevailing. The Chief Financial Officer may make recommendations to Council as may be necessary or advisable in the circumstances prevailing. Spending, Supplementary Estimates and Transferring Funds No Director may allow spending, whether revenue or capital, to exceed budget. No Director or official may incur any expenditure unless: (a) It is a revenue expense which has been approved as part of the revenue budget under 4.4.2 of these Financial Regulations; or (b) It is a capital expense which has been approved as part of the Capital Investment Programme under 4.4.3 of these Financial Regulations, or any separate Act of Council and, where necessary, a tender or quotation has been received under Contracts Standing Orders; or (c) The expense has been authorised under the remaining subparagraphs of paragraph 4.4.5 of the Financial Regulations.
4.4.4.4
4.4.4.5
4.4.5 4.4.5.1
4.4.5.2
4.4.5.3
The Finance and Budget Committee may transfer money within the revenue budget to either existing or new projects, but: (a) If this will change approved Council policy, a report must be submitted to Council for approval before the transfer can be actioned; (b) If the transfer will affect future years revenue budgets, a report detailing the effect on future budgets must be submitted to Council for approval before the transfer can be actioned.
4.4.5.4
The Finance and Budget Committee may transfer money within the Capital Investment Programme to either new or existing projects as may be necessary or advisable in the circumstances prevailing, but:
(a) If this will change approved Council policy, a report must be submitted to Council for approval before the transfer can be actioned; (b) If the transfer will affect future years capital budgets, a report detailing the effect on future budgets must be submitted to Council for approval before the transfer can be actioned; (c) Where capital grant is provided for a specific project, no transfer to alternative projects is permitted without the consent of the Scottish Government or other external grant provider. 4.4.5.5 The Chief Financial Officer may, from time to time, issue detailed instructions on the transfer of monies within and / or between service area revenue budgets. If a Director: (a) Proposes to incur revenue or capital spending that is not included in the revenue budget or capital investment programme approved by Council or to reduce income provided in that way; and (b) Does not propose to pay for the spending by reallocating existing funding, the Director must seek a supplementary estimate. 4.4.5.7 S/he must report to the Finance and Budget Committee with an assessment of the financial spending consequences for the current and future years. In the case of revenue expenditure, this appraisal should include identification of the budget head(s) to be reduced in future years. If the Finance and Budget Committee agrees, it will submit a recommendation to Council. The Chief Financial Officer must agree before a proposal for transfer or supplementary estimate is reported to the Finance and Budget Committee. Directors, in consultation with the Convener of the appropriate executive committee for the service, may submit a request for expenditure of an emergency nature. In such circumstances, the expenditure concerned may be incurred on the authorisation of the Chief Financial Officer, in consultation with the Convener of the Finance and Budget Committee. The Director requesting the expenditure shall arrange for the matter to be reported to the Finance and Budget Committee.
4.4.5.6
4.4.5.8
4.4.5.9
4.4.5.10 Other than contractual liabilities, service directors are not permitted to incur revenue expenditure until the relevant financial year has commenced. 4.4.6 4.4.6.1 Final Accounts Directors are required to provide all relevant information to the Chief Financial Officer in accordance with the instructions issued annually by him/her. The Chief Financial Officer will report the Councils final expenditure outturn with recommendations for appropriations to the Governance, Risk and Best Value Committee and the Council. Internal Audit The Head of Internal Audit and Risk Management will make appropriate arrangements to review, appraise and report on: (a) The adequacy of internal control as an indication of probity and contribution to the economic, efficient and effective use of resources; (b) Compliance with approved policies, plans and procedures; (c) The extent to which assets are accounted for and safeguarded from losses arising from theft, fraud, waste, inefficient administration and poor value for money; (d) The suitability and reliability of management data; (e) Service managers effectiveness in achieving value for money. 4.4.7.2 The Head of Internal Audit and Risk Management has authority, subject to necessary, prior consultations, to: (a) Enter all Council premises or land at any reasonable time and have access to all records, documents and correspondence relating to financial or other matters. This access extends to Council Officers and elected members as necessary; (b) Require and receive such explanations as are necessary concerning any matter under examination; (c) Require employees to produce cash, stores or other Council property under their control.
4.4.6.2
4.4.7 4.4.7.1
10
4.4.7.3
If elected members or staff discover any fraud or irregularity that affects the Council, they must immediately inform the Head of Internal Audit and Risk Management who will arrange for an investigation to be conducted if appropriate. In so doing, attention is drawn to the provisions and arrangements included in the Councils Public Interest Disclosure (Whistleblowing) policy. Risk Management The Head of Legal, Risk and Compliance, in consultation with the Head of Internal Audit and Risk Management, is responsible for preparing the risk management strategy. Directors are responsible for establishing effective internal controls to mitigate risk and documenting these controls and their application formally. In accordance with the risk management strategy, all officers have a role in the identification of risks as they affect their service area. Internal Control Proposals of material change to internal control must be discussed with and formally authorised in writing by the Head of Internal Audit and Risk Management. lncome
4.4.8 4.4.8.1
4.4.8.2
4.4.9 4.4.9.1
4.4.10
4.4.10.1 The collection of all money owed to the Council is the responsibility of the Chief Financial Officer except: (a) The collection of monies at service locations (i.e. where payment or counter services are offered) and the accounting thereof to the Chief Financial Officer is the responsibility of the appropriate Director; (b) The Director of Services for Communities is responsible for the collection of rents for Council housing and the collection of parking fines and accounting for them to the Chief Financial Officer. 4.4.10.2 The Chief Financial Officer must be notified promptly of all money due and of contracts, leases, agreements or other arrangements, that involve payments to the Council. 4.4.10.3 Directors will ensure the prompt rendering of accounts in connection with work done, goods supplied or services rendered and will furnish the Chief Financial Officer with the information required to identify income due. The Chief Financial Officer will approve the manner in which accounts for income receivable must be prepared.
11
4.4.10.4 Arrangements for payment of accounts by instalment are at the discretion of the Chief Financial Officer, in consultation with the relevant Director where appropriate. 4.4.10.5 Arrangements for the billing and recovery of all sums due should be carried out in accordance with the provisions contained within the Councils Corporate Debt Policy. A summary of delegated powers and limits in respect of debt write-offs is included in the Finance Rules. 4.4.10.6 Invoices issued by the Council must not be amended to correct errors. Services must issue a replacement invoice if errors are identified, whereupon the erroneous invoice should be cancelled. 4.4.11 Receipt of Income
4.4.11.1 All money received by a Council officer must be paid without delay or in accordance with directions issued by the Chief Financial Officer. 4.4.11.2 Where invoices have not been issued for sums owed to the Council, alternative arrangements for collection are subject to the Chief Financial Officer's written approval. 4.4.11.3 The Chief Financial Officer will specify in writing procedures for recording income, lodging income with the bank, resolving banking discrepancies, security and insurance, cash transfers, personal cheques and the supply of receipts and tickets for use by service areas. 4.4.11.4 The Chief Financial Officer is authorised to sign certificates and petitions to the Sheriff Court for summary warrant applications. 4.4.12 Salaries and Wages
4.4.12.1 Employees may be appointed only in accordance with the procedures approved by the Council, the establishment, grades and rates of pay. 4.4.12.2 Salaries and wages must be processed in accordance with procedures and instructions issued by the Chief Financial Officer from time to time. 4.4.12.3 The payment of salaries, wages, compensations and other emoluments to employees or pension entitlements to former employees will be made by the Chief Financial Officer, who is also responsible for transmitting superannuation contributions to the Lothian Pension Fund and the Scottish Public Pensions Agency and tax and National Insurance contributions to HM Revenue and Customs. 4.4.12.4 Directors must provide the Chief Financial Officer with the information required to complete Council and statutory returns.
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4.4.13
Allowances and Loan Schemes
4.4.13.1 The Chief Financial Officer is responsible for paying allowances, reimbursing expenses and administering loan schemes. 4.4.13.2 Directors are required to ensure that: (a) Claims and applications are submitted in accordance with conditions of service, Council policies and statutory provisions, together with relevant supporting information such as receipts; (b) Claims and applications are submitted on the appropriate form and certified by an authorised officer; (c) Officers authorised to sign claims and application forms on their behalf are notified to the Chief Financial Officer; (d) Information required to complete Council and statutory returns is provided to the Chief Financial Officer. 4.4.13.3 The Chief Financial Officer is responsible for administering the Scheme of Members Allowances in accordance with relevant statutory provisions and the payment of expenses. A report on members allowances must be presented to the Governance, Risk and Best Value Committee annually. 4.4.14 Insurance
4.4.14.1 The Chief Financial Officer will: (a) Prepare and maintain an insurance strategy to provide costeffective cover; (b) Negotiate claims with insurers, in consultation with relevant officers; (c) Report annually to the Governance, Risk and Best Value Committee on the strategys operation and effectiveness. 4.4.14.2 Directors must notify the Chief Financial Officer promptly of all new risks, properties, vehicles, plant, equipment, etc. that require to be insured, in addition to any alterations and changes in activities and procedures that may affect existing insurance arrangements. 4.4.14.3 Directors must notify the Chief Financial Officer of all major capital and revenue projects at an early stage if insurance cover or specialised insurance advice is required.
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4.4.14.4 Directors must notify the Chief Financial Officer in writing of any loss, liability, damage or other event likely to lead to a claim immediately they become aware of it and should inform the police where appropriate. 4.4.14.5 Directors should not: (a) Make any admission of liability; (b) Take any action which may be construed as an admission of liability; (c) Waive any rights of recovery. 4.4.14.6 Directors must consult the Chief Financial Officer and Head of Legal, Risk and Compliance regarding the terms of any indemnity which the Council is requested to provide. 4.4.14.7 Directors must take due account of recommendations made by the Councils insurers. 4.4.15 lmprest Accounts
4.4.15.1 Where appropriate, the Chief Financial Officer will provide cash advances to officers to defray petty cash and other expenses. Such advances will be accounted for using the imprest system. 4.4.16 Custody and Security of Assets
4.4.16.1 Each Director is responsible for maintaining appropriate security at all times for buildings, stores, furniture, equipment, cash and other property, including that owned by third parties. 4.4.16.2 The Scheme of Delegation to Officers Appendix 1 - General Delegation to Directors provides delegated authority to write off or dispose of any stores, plant, furniture, equipment or any other nonproperty asset in accordance with these Financial Regulations provided that: (a) The stores, plant, furniture, equipment or other non-property asset have become unfit for use and unsaleable; and (b) The decision is made in consultation with the Director of Corporate Governance. 4.4.16.3 Council property may not be removed, other than for Council purposes, unless specific instructions have been issued by a Director.
14
4.4.16.4 Directors are responsible for the care, custody and stocktaking of all stocks under their control and must act in accordance with guidelines issued by the Chief Financial Officer. 4.4.16.5 Each Director must agree maximum limits for cash holdings with the Chief Financial Officer for insurance purposes. These may not be exceeded without the permission of the Chief Financial Officer. 4.4.16.6 All heritable securities which are the Councils property, are in its name or in the name of its nominee, and the title deeds of all Council property must be stored securely by the Director of Corporate Governance. 4.4.16.7 All heritable securities that comprise the Common Good Fund must be stored securely by the Director of Corporate Governance. 4.4.17 Gifts, Hospitality and Conduct
4.4.17.1 A register of items gifted or bequeathed to the Council will be maintained by the Chief Financial Officer. Items of considerable value when not otherwise taken on charge for Council or service-specific purposes should be lodged with the Chief Financial Officer for safe keeping and insurance. 4.4.17.2 Elected members and officials must comply with the Local Government (Scotland) Act 1973 Section 68 and all relevant codes of conduct for local government personnel. 4.4.17.3 The Director of Corporate Governance has delegated authority to approve City Receptions and Committee Receptions costing up to 1,500 and funded from the Civic Hospitality budget subject to consultation with the Convener of the Finance and Budget Committee. Heads of Service may similarly approve Committee Receptions where the estimated cost does not exceed this level. Applications for Committee Receptions costing more than 1,500 must be approved by the relevant executive committee. 4.4.18 Banking Arrangements
4.4.18.1 The Chief Financial Officer will make arrangements for opening and operating bank accounts, and using banking services. The Chief Financial Officer is responsible for negotiating banking terms. No new bank accounts should be opened without the authorisation of the Head of Internal Audit and Risk Management. Personal bank accounts must never be used in respect of Council transactions or funding. 4.4.18.2 All cheque forms, excluding those required for authorised imprest accounts may be printed only with the authority of the Chief Financial Officer, who will make arrangements for their safe custody.
15
4.4.18.3 Cheques drawn on the main bank accounts must bear the facsimile signature of the Chief Financial Officer (or other nominated officer) or be signed by the Chief Financial Officer or other officer who holds an authorised post designated by the Council. 4.4.19 Treasury Management
4.4.19.1 The Council has adopted CIPFAs Code for Treasury Management in Local Authorities and Prudential Code for Capital Finance in Local Authorities. The Chief Financial Officer is responsible for preparing and maintaining the Treasury Policy Statement and treasury management activities must be carried out in accordance with the Statement. Amendments must be considered by the Governance, Risk and Best Value Committee, whose recommendation will be passed to the Council for approval. 4.4.19.2 An annual Treasury Strategy must be prepared. The Governance, Risk and Best Value Committee is responsible for monitoring its implementation and effectiveness. To this end, the Chief Financial Officer will prepare separate annual reports to propose the following year's treasury strategy and report on the previous year's management performance. These must be submitted to the Governance, Risk and Best Value Committee for consideration and the Council for approval. The performance report will be submitted as soon as possible after the end of the financial year. 4.4.19.3 All treasury-related decisions are delegated to the Chief Financial Officer who must act in accordance with the Code and Policy Statement. 4.4.19.4 All money in the Council's custody will be aggregated for treasury management purposes and controlled by the Chief Financial Officer. 4.4.19.5 Where the acquisition or creation of an asset by leasing is proposed, the financial implications of the leasing agreement must be approved by the Chief Financial Officer. 4.4.20 Investments
4.4.20.1 The Chief Financial Officer may undertake any action that may reasonably be deemed permissible investment business but must seek appropriate advice where necessary in relation to educational endowments and any other Council or trust funds. 4.4.20.2 The Chief Financial Officer is responsible for the safe custody of share certificates or other documents relating to the investment of Council or trust funds.
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4.4.21
Payment of Accounts
4.4.21.1 Arrangements for processing payments must comply with procedures established by the Chief Financial Officer, a summary of which is included in the Finance Rules. 4.4.22 Grant Payments to Third Parties
4.4.22.1 Directors are responsible for ensuring that grant awards are consistent with the Council's priorities and are subject to its standard conditions of funding as determined by the Director of Corporate Governance. 4.4.22.2 Arrangements for processing grant payments must comply with procedures established by the Chief Financial Officer as set out in the Finance Rules. 4.4.23 Procurement/Purchasing
4.4.23.1 Arrangements for procurement/purchasing, including the use of purchasing cards, must comply with procedures established by the Chief Financial Officer as summarised in the Finance Rules. 4.4.23.2 Directors are responsible for ensuring that purchasing activity carried out on their behalf is undertaken in accordance with the Code of Best Purchasing Practice. 4.4.24 Value Added Tax
4.4.24.1 Directors are responsible for identifying and accounting for input and output tax as it relates to their service area. Queries and specific problems should be referred to the Chief Financial Officer, who is responsible for issuing guidance on the application of VAT rules. 4.4.25 Computer Security
4.4.25.1 The Director of Corporate Governance is responsible for preparing and maintaining the Councils policy on ICT security, as well as appropriate guidance on usage and security. 4.4.25.2 Directors are responsible for applying the security policy and guidance. 4.4.25.3 The Council is registered under the Data Protection Act. Directors are responsible for ensuring that the provisions regulating computer systems security are strictly observed. Directors must liaise with the Head of Corporate and Transactional Services to ensure adequate security on a continuing basis.
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4.4.26
Other Significant Documents
4.4.26.1 Financial Regulations should be read in conjunction with the constitutional documents of the Council and all Council Policies (as such term is defined in the Scheme of Delegation to Officers) including without limitation: Procedural Standing Orders for Council and Committee Meetings; Committee Terms of Reference and Delegated Functions; Scheme of Delegation to Officers; Finance Rules; Contracts Standing Orders; Procurement Handbook; Code of Conduct on the Use of Electronic Communications.
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Item no
Report no
8.4(b)(i)
CEC/48/12-13/CG
Strategic Governance: Council Performance Framework

25 October 2012
1 1.1
Purpose of report The purpose of this report is to agree a revised Performance Framework for the Council aligned to the Councils Strategic Outcomes, Capital Coalition Pledges and the Single Outcome Agreement. Performance Framework The Council adopted its first corporate Performance Framework in 2005, and this has been periodically reviewed to reflect organisational and governance changes. The framework was last updated through the Achieving Excellence Programme in 2009 to take account of the Councils values and the implementation of self-evaluation using the Public Service Improvement Framework. A new Performance Framework is now required to take account of political, partnership and operational outcomes identified by the Capital Coalition Pledges, the Edinburgh Partnerships Single Outcome Agreement and the Councils overall responsibility for delivering a wide range of services to Edinburgh. The framework been developed in line with the Councils Governance Review to ensure a clear statement of vision, values and strategic objectives aligned with the Capital Coalition Pledges are embedded within the operation of the Council. Reviewing the performance framework has also given the Council the opportunity to shift from activity-based measures to more robust outcomebased measures which join up priorities across service areas and partnerships. The Council has taken significant steps in reviewing its performance framework through strategy mapping to ensure that performance measures are delivering on objectives and longer-term outcomes. This approach has been supported and independently validated by Dr Pietro Micheli, Senior Lecturer in Organisational Performance with the Cranfield University School of Management.
2 2.1
2.2
2.3
2.4
2.5
Further to this, improvements have been aligned with the recommendations in the recent Audit Scotland report Managing performance: are you getting it right? which focuses on accountability, scrutiny and the importance of having a strong performance culture within Councils. Consultation has been undertaken with the public, partners, staff and leadership to redefine the vision, values and desired culture for the Council. A clear statement of the Councils vision, aligned to the Capital Coalition Pledges, has been developed which is aligned to a new outcome focused Performance Framework for members consideration at this meeting. The outcome of the staff consultation on values will be available in November. Through this review, the new outcome-based Pledge Areas below have been developed to take account of priorities with the overarching vision that Edinburgh is a successful and sustainable capital city. This provides the golden thread to which all performance outcomes and measures are now aligned.
2.6
2.7
CapitalCoalitionPledgeAreas
Ensureeverychildin Edinburghhasthebest startinlife
The Council is an efficient and effective organisation and a great place to work Edinburghs children and young people enjoy their childhood and fulfil their potential
ProvideforEdinburghs prosperity
Reducepoverty, inequalityand deprivation
Health and wellbeing are improved in Edinburgh and there is a high quality of care and protection in place for those who need it
'Edinburgh is a successful and sustainable capital city.
Edinburghs economy delivers increased investment jobs, and opportunities for all
Maintainand improvethe qualityoflife inEdinburgh
Edinburgh is an excellent place in which to live, study, work, visit and invest
EnsureEdinburghand itsresidentsarewell caredfor
Strengthenandsupport ourcommunitiesand keepthemsafe
2.8
Sitting underneath these Pledge Areas are 26 Strategic Outcomes which reflect the complexity and diversity of services the Council provides. The Strategy Maps in Appendix 1 outline these Strategic Outcomes along with measures and risks associated with each of the Pledge Areas. All of the Capital Coalition Pledges, measures within the Single Outcome Agreement and statutory indicators have been mapped to these Pledge Areas. It is important to note that the measures will be reviewed annually and some detail is still being refined within the maps. Some areas are new priorities and require significant development. Any changes to the measures will be done in consultation with stakeholders to ensure that the performance measures are aligned to priorities and drive continuous improvement.
2.9
2.10
Further to this, the Performance Framework will form part of the annual budget setting process to ensure the Council aligns its performance and planning with its budgets. This will also provide an annual opportunity to review and refine our approach to performance management.
Governance and scrutiny
2.11
The Council has a strong performance management culture, although there have been well documented issues that have affected some services. This new performance framework will increase transparency, scrutiny and risk management throughout the Council. In line with the Governance Review, quarterly holistic performance reports will be considered at the Governance, Risk and Best Value Committee for scrutiny (and referred to the Executive Committees as appropriate). This will ensure that meaningful performance information is presented to Elected Members for oversight and effective scrutiny. Performance management will continue to be led by the Corporate Management Team. All Directorates are required to demonstrate that they have effective and systematic performance management and review arrangements that track performance and improvement actions. Monthly performance reports have been introduced at CMT to replace two monthly performance reports from each Directorate. The Business Intelligence Service, currently in development through the Policy and Public Affairs Organisational Review, will lead performance management processes with colleagues across the Council. Responsibility for local performance management will continue to remain with each service area ensuring that support is tailored as appropriate. The officers Achieving Excellence Leadership Group, responsible for performance, planning and quality, has also been established and is led by Heads of Service who scrutinise performance and ensure that improvement actions are implemented across service areas.
Business intelligence system
2.12
2.13
2.14
2.15
2.16
The Council is introducing a strategic business intelligence analytics system to improve management information and support better decision making. A pilot to test proof of concept using the IBM Cognos system took place during 2012 focusing on absence information and analysis. A business case for further developing business analytics was agreed by CMT in August. Subject to negotiations four work streams will be progressed using this system: absence management; workflow and productivity tracking for revenue and benefits; development of the corporate performance dashboard; and integration of data currently held on SWIFT and SEEMIS systems as a first step to improving data sharing with partners and the identification of vulnerable children.
2.17
Accessibility and accountability
2.18
A significant amount of information is provided to stakeholders in Edinburgh and beyond about the city and the business/performance of the Council through a range of communication methods. The Council will ensure that information and public performance reporting is accessible, transparent and reported through a variety of channels through the balanced reporting of the Capital Coalition Pledges; the Single Outcome Agreement; and the overall responsibility for delivering a wide range of services to Edinburgh. Specifically, the Capital Coalition will report on progress against the Capital Coalition Pledges regularly. Along with scrutiny at committee, accessible web pages have been developed and will be updated regularly with performance against the pledges to ensure this is transparent and accountable to the citizens of Edinburgh. The Council will continue to develop its channel usage to ensure additional performance and service improvement information is made available to the public through various channels including websites such as Council Performance, the press and TV, newsletters, posters, Council publications, information screens in local reception areas, meetings and local forums. Financial implications Financial implications are noted within the performance framework. Environmental impact Edinburgh is an excellent place to live, study, work, visit and invest includes priority actions to keep the city clean, green, safe and well maintained. Equalities impact The equalities relevance score has been previously assessed in the report of 19 May 2011 as 3 (low) and therefore no subsequent Equalities Impact Assessment is recommended. Recommendations It is recommended that the Council agree the revised Performance Framework for the Council aligned to the Councils Strategic Outcomes, Capital Coalition Pledges and the Single Outcome Agreement. Alastair D Maclean Director of Corporate Governance
2.19
2.20
3 3.1 4 4.1 5 5.1
6 6.1
1 Performance Framework Strategy Maps Tom Little, Head of Policy and Public Affairs, 0131 469 3846 tom.little@edinburgh.gov.uk 4
All Supports all outcomes which are aligned to the Pledge Areas Audit Scotland report Managing performance: are you getting it right? (October 2012)
Council Performance Framework 25 October 2012 v0.1
Appendix 1
Performance Framework Strategy Maps

25 October 2012
Vision Statements and Strategic Outcomes

Edinburghs children and young people enjoy their childhood and fulfil their potential 1. Our children have the best start in life, are able to make and sustain relationships and are ready to succeed. 2. Our children and young people are successful learners, confident individuals and responsible citizens making a positive contribution to their communities. 3. Our children and young people at risk, or with a disability, have improved life chances 4. Our children and young people are physically and emotionally healthy. 5. Our children and young people are safe from harm or fear of harm, and do not harm others within their communities. 6. Our childrens and young peoples outcomes are not undermined by poverty and inequality. Edinburghs economy delivers increased investment, jobs and opportunities for all 7. Edinburgh draws new investment in development and regeneration. 8. Edinburghs economy creates and sustains jobs opportunities. 9. Edinburgh residents are able to access job opportunities. Health and Wellbeing are improved in Edinburgh and there is a high quality of care and protection for those who need it 10. 11. 12. 13. 14. Improved health and reduced health inequalities. Preventative and personalised support is in place. Edinburghs carers are supported. People are supported to live at home. Communities have the capacity to help support people.
Edinburgh is an excellent place to live, study, work, visit and invest 15. People live in a good quality home that is affordable and meets their needs in a well-managed Neighbourhood. 16. Edinburghs streets and open spaces are clean and free of litter and graffiti. 17. We reduce the local environmental impact of our consumption and production. 18. Edinburgh remains an attractive city through the development of high quality buildings and places and the delivery of high standards in the maintenance of infrastructure and public realm. 19. Edinburgh continues to be a leading cultural city where culture and sport play a central part in the lives and future of citizens. 20. Residents, visitors and businesses feel that Edinburgh is a safe city. 21. Edinburgh has a transport system that improves connectivity and is green, healthy and accessible. 22. Communities and individuals are empowered and supported to improve local outcomes and foster a sense of community. The City of Edinburgh Council is an efficient and effective organisation and a great place to work 23. The Council communicates effectively internally and externally and has an excellent reputation for customer care. 24. The Council has efficient and effective services that deliver on objectives. 25. The Council engages with stakeholders and works in partnership to improve services and deliver on agreed objectives. 26. The Council supports, invests in and develops our people.
WHO? STRATEGIC STAKE PLEDGE OUTCOMES HOLDERS AREA
Edinburghs children and young people enjoy their childhood and fulfil their potential
Customers / Service users Eg pupils, parents/carers, families, staff Partners Eg NHS, Police, voluntary sector Delivery partners Eg voluntary organisations, commissioned services, NHS, Police SO5 - Our children and young people are safe from harm or fear of harm, and do not harm others within their communities SO6 - Our childrens and young peoples outcomes are not undermined by poverty and inequality (=EQ)
SO1 - Our children have the best start in life, are able to make and sustain relationships and are ready to succeed
SO2 - Our children and young people are successful learners, confident individuals and responsible citizens making a positive contribution to their communities
SO3 - Our children and young people at risk, or with a disability, have improved life chances
SO4 - Our children and young people are physically and emotionally healthy
WHAT? PRIORITIES
Improve support in early years so that children reach appropriate developmental and social milestones (SO1)
Improve the educational attainment of the lowest achieving pupils (SO2)
Improve life chances for Looked After Children including increasing the focus on Corporate Parenting (SO3)
Improve early support for children with Additional Support Needs (ASN) (SO3)
Improve early support for families so that fewer children need to be looked after, with particular focus on addressing the impact of drug and alcohol misuse (SO3)
Improve health outcomes for children, including healthy weight, sexual health, emotional health and wellbeing and drug and alcohol misuse (SO4)
Increase the number of young people who enter and sustain positive destinations (SO6)
HOW? STRATEGIES
Key Strategies / Plans / Drivers

Children and Families Asset Management Plan Early Years Strategy Integrated Literacy Strategy The Edinburgh Guarantee Early Years Change Fund Corporate Parenting Action Plan Commissioning Strategies and Plans Children and Families Capital Investment Programme Single Outcome Agreement Integrated Plan for Children and Young People
Parental Engagement Strategy
Supporting Communities
Joint Health Improvement Plan
Getting It Right for Every Child
Curriculum for Excellence
SO1.1 Childrens early years development, learning and care are improved
* Pre-school setting inspection reports * P1 entry baseline literacy and numeracy scores * Access to qualified teacher in pre-school settings * Parent / carer participation in learning * Pre-school hours provided by Council * Reduce P1-P3 class sizes P2
SO2.1 Children and young people have high quality learning experiences and their learning needs are met P5
* School inspection reports * Exam results SOA * Average tariff scores * Parents and carers satisfaction * School condition P3 * School occupancy P4
SO3.1 Children who need support are identified earlier and receive the right level of service for the right amount of time
* Children who need to be looked after SOA * Children who are looked after at home
SOA
SO3.4 Looked after children have improved outcomes

* Looked after childrens school attendance * Looked after childrens exclusion rate SOA * Looked after childrens average tariff score SOA * Looked after children going to positive destinations after school
SOA
SO4.1 Children and young people are healthy

* Health promoting community centres / residential services * Quality PE curriculum delivery * Active schools participation * P7s achieving level C5 swimming * Eligible primary school breakfast club provision *P1-P3 receiving nutritious free meals * % satisfied with sport and leisure EPS activities for children and young people (tbc)
SO5.1 There is a reduction in the number of young people who offend

* Children referred to SCRA on offence grounds * Young people exiting Youth Offending system not re-entering this or Criminal Justice Service within two years * Number of young people (12+) receiving 5+ referrals on offence grounds to SCRA in previous 6 months
SO6.1 School leavers enter positive, sustainable destinations P7 & P29

* School leavers who go on to positive destinations
SOA
DO. PERFORMANCE INDICATORS
SO2.2 Young people are confident individuals, effective contributors & responsible citizens
* School attendance * School exclusions * School participation / awards for environment, respect and citizenship * Individual DoE awards * Free music tuition * Selections for regional or national sport squads * Open youth work * Youth Parliament elections turnout
* Children who are looked after and accommodated SOA * Children using familybased day care service
P6
* School leavers in positive follow-up destination SOA * Economically active looked after children receiving after care service
SO3.2 Children in need of protection receive the help they need straight away
* Initial visits within 15 days of supervision requirement * Reports submitted to SCRA within timescale * Initial child protection case conferences taking place within timescale * Child protection reregistrations
SO3.5 Children and young people with disabilities and their families are supported
* Assessed children receiving SCYP-funded service * Section 23s assessed * Overnight respite nights not in care home * Children in day care * Families accessing direct payment * Occupational therapist provision
SO4.2 Young people make health protective choices in relation to food, substance use and relationships
* Use of Alcohol Brief Interventions * 15 boys and girls regular smokers SOA * 13-15 year olds drinking 1+ times a week
SOA
SO5.2 Children are safe from harm and fear of harm

* S2 pupils feel school deals well with bullying * Pupils feel safe in school * Pupils who feel able to speak to an adult if there are worried or upset about something * Working With Men domestic abuse programme participation
SO6.2 Communities are strong and resilient, citizens are supported to make positive changes
* Young people in 16+ non-formal learning * Young people CLD supported to engage in Activity Agreements * Adults achieving their learning goals * Non-English speakers receiving tuition * Adult learning opportunities available
SO3.3 Looked after children cared for & supported P1

* Care commission inspection reports * Emergency foster placements available * Adoptions of looked after children * Reviews within time * Children placed in CEC foster care * Children with pathway co-ordinators / plans * Aftercare service given to those eligible
* 13-15 year olds who have used drugs in the previous month SOA
SO4.3 Children have increased resilience and wellbeing

* S5 confident about having healthy sex life at appropriate time * Primary children say they can usually deal with a problem * Primary children who ask for help when they need it * Primary children who feel they have lots to be proud of
RISKS
Failure to provide effective protection and care to vulnerable children and young people
Demographic pressures on school rolls, early years programmes and vulnerable groups of children and young people
Failure to provide quality learning and care environments
Failure to deliver best value and use of our resources as budgets reduce
Failure to retain right level of staff resource with the right skills
WHO? PLEDGE STAKEAREAS HOLDERS
Edinburghs economy delivers increased investment, jobs and opportunities for all
Internal: Managers, staff and Elected Members External: public, business community, partner agencies, government and outside bodies
STRATEGIC OUTCOMES
Edinburgh draws new investment in development and regeneration
Edinburghs economy creates and sustains jobs opportunities
Edinburgh residents are able to access job opportunities
HOW? STRATEGIES
WHAT? OBJECTIVES
Invest in the citys development and regeneration
Support inward investment
Support businesses
Help unemployed people into work or learning
City of Edinburgh Council Economic Strategy 2012-17
Economic Development Service Operational Plan 2012-15
Support new physical investment in Edinburgh Key performance indicators * Total value of physical investment supported by Economic Development Service (EDS) Target: support 200m of physical investment (net) over the period 2012-15 Comprised of: Invest in the citys development and regeneration Capital projects (1.1) * No. physical development projects supported by the EDS P15, P17 * Value of physical development projects supported by the EDS P15, P17
Support the creation and safeguarding of jobs in Edinburgh Key performance indicators * Total number of jobs created or safeguarded through EDS activities SOA Target: support the creation and safeguarding of 2,000 jobs (net) over the period 2012-15 Comprised of: Invest in the citys development and regeneration Capital projects (1.1) * No. construction jobs created through supported development and regeneration projects SOA Support Businesses Business support (3.2) * No. jobs created/safeguarded through supporting business activities SOA P16 Support new investment by Edinburgh businesses (3.6) * No. jobs created/safeguarded through East of Scotland Investment Fund loans approved SOA P16 Support Inward Investment Attract new investment (2.1) * No. jobs created/safeguarded through inward investment support activities SOA P15
Help unemployed people into work and learning Key performance indicators * No. employability service clients supported into work or learning SOA Target: support the movement into work or learning of 6,000 people over the period 2012-15 Comprised of: Help unemployed people into work or learning Early intervention on unemployment (4.3) & Providing employability support for regeneration areas and vulnerable individuals (4.5) * No. employability service clients supported into work or learning SOA Helping school leavers and young people (14-19yrs) make the transition into work (4.4) * No. young people supported into work or learning
SOA P7, P29
Support Businesses Business support (3.2) * No. unemployed clients supported into self employment SOA P16
Associated activities and outcomes Priority investment zones (1.2) City management & town centre development (1.3) Review delivery mechanisms (1.4) * Analysis of delivery against key outcomes outlined in EDS operational plan 2012-15
Associated activities and outcomes Support Businesses A single access point to the Council (3.1) Business Support (3.2) Encourage innovation (3.3) Support key sectors (3.4) Enhance and support local supply chains (3.5) Support new investment by Edinburgh businesses (3.6) & Support inward investment Attract new investment (2.1) Support new investors (2.2) Improve the citys competitiveness (2.3) * Analysis of delivery against key outcomes outlined in EDS operational plan 2012-15 Citizen Perceptions * % feel that personal financial situation has got better / worse over last 12 months EPS * % confident about current and future job / career prospects in Edinburgh EPS
Associated activities and outcomes Help unemployed people into work or learning Coordination of employability services (4.1) & Supporting those in low paid and insecure employment (4.4) * Analysis of delivery against key outcomes outlined in EDS operational plan 2012-15
Citizen Perceptions * % feel qualified for the work they currently do EPS
RISKS
Failure to deliver a whole council approach to economic development
Changing budget priorities and impact on ability to meet delivery expectation
Ineffective external partner relationship management impacts on services and financial returns
Failure to maintain strong reputation of the service
Growth and development of the city is affected by external economic circumstances
PLEDGE AREA
STAKE HOLDERS
Health and Wellbeing are improved in Edinburgh and there is a high quality of care and protection for those who need it
Internal: Elected members, managers, staff, trade unions External: service users, carers and citizens; NHS; third sector; private and voluntary sector care providers; community groups, neighbourhood partnerships; police, Scottish Prison Service and courts; Scottish Government, Cosla, ADSW, Inspectorates; DWP; other local authorities
WHO?
STRATEGIC OUTCOMES
1 Improved health and reduced health inequalities (=EQ)

A Improve Health and Wellbeing (1)
2 Preventative and personalised support is in place

C Develop preventative services (2)
3 Edinburghs carers are supported
4 People are supported to live at home

F Help people improve and maintain their independence (2, 3, 4 ,5) G Develop community capacity to provide support (5)
5 Communities have the capacity to help support people

H Support, develop and make the best use of our staff (1,2,3,4,5,6) I Improve the quality of services (2, 3,4,6)
6 The Public are protected
WHAT? OBJECTIVES
B Reduce Poverty and inequalities (1)
D Develop effective personalised services (2)
E Improve support for carers (2,3,4,5)
J Improve public protection (1, 2, 4, 5, 6)
HOW? STRATEGIES
Health (NHS) and Social Care (LA) Integration (A-J) Reshaping Care for Older People (A, C-I)
Personalisation Strategy (D)
Prevention Strategy (C)
Towards 2012 (Carers Strategy) (E)
Health Inequality Framework (D) Addictions Strategies (A, C-I)
Anti-Poverty Strategy (B)
Commissioning Strategies & Plans (A-J) Homelessness Strategy (B,F)
Workforce Development Strategy (H,I) Human Rights and Equalities Strategy (B,G,I)
Adult, Child & Public Protection Strategies (J) Reducing reoffending strategy (C,J)
Disability Strategies (A, C-I)
A Sense of Belonging (Mental Health) (A, C-I)
Choose Life (suicide prevention) (A, C-I)
Live well in Later Life (A, C-G)
Improve health for all (A) * Life expectancy at birth SOA * Gap in life expectancy SOA * Premature mortality rates SOA * Uptake rates of health eating* * Uptake of leisure & fitness* P42 & P43
DO. PERFORMANCEINDICATORS(*measuresunderdevelopment)
Improved health for young people (A, B) * % of school children who are obese * % of school children who smoke, drink & take drugs * Uptake of healthy school meals * P1-P3 receiving nutritious free meals Improved mental health and wellbeing (A, E, F) *Suicide rates *Mental wellbeing scores* Improved health for people with learning disabilities (A, E, F) * People supported with health & wellbeing* * People supported with sexual health & awareness* Improved health for people with physical disabilities (A,E,F) * People with strokes or MS provided with rehabilitation* * People helped to return to work* Improved health for people with addictions and blood borne viruses and improved outcomes for their children (A,E,F) * People supported to prevent or reduce dependency* SOA * Access times to addictions treatment * People supported to prevent transmission of infection* * People provided with detox and rehabilitation services* P12 * People supported beyond addiction*
Reducing inequalities Reducing health inequalities (B) * Gap in life expectancy between areas SOA Reducing poverty (B) * People given employability advice* * People given uptake & money advice* * People given fuel poverty action or advice* * People given emergency payments* Develop preventative services and personalised support (C,D) * Social Care Personalisation Programme project monitoring * People receiving reablement and rehabilitation * Levels of Self-Directed Support uptake SPI * Support to people with lower level needs* * People assessed by homelessness teams* * People provided with advice*
Edinburghs Carers are supported (E) * Volume of respite provided SPI SOA * People given outcome focused carers assessments * Carers provided with direct payments to meet their own needs* P38 *Uptake of online volunteering service* P39 * Carers with emergency alternative arrangements in place to cover their unavailability*
Improved Health (NHS) and Social Care (LA) Integration (All) * Delayed discharge counts F, H SOA * Balance of care for older people F, H * Emergency bed use SOA * Waiting list measures Supporting older people to live at home (F,H) SOA * Impact measures of reablement * Measures of domiciliary care flexibility SPI * Reduced isolation * Supporting people with disabilities to live at home (F,H) * No. people provided with rehabilitation * No. people supported to leave school* * No. people supported to improve independence* * No. people supported to take up with employment* Support for people with mental health problems (F,H) * People supported by Intensive Home Treatment Teams* * Access time to Child and Adolescent MH services* Supporting people with addictions and blood borne viruses to live at home (F,H) * People in supported tenancies*
Increased community capacity (D,G) * Change Fund initiatives to support older people project monitoring * Profiles of Neighbourhood Partnership activity* * Profiles of Community Council activity* * No. volunteers recruitment or supported* Improving Quality of Care (I) P37 * Service user feedback * Care provider performance statistics * Single and en-suite care home provision SPI * Care staff qualification levels SPI * Monitoring of improvement plans following Inspection * Overview of engagement with stakeholders in service planning and improvement Sound Resource Management (All) * Budget planning for demography * Monthly budget monitoring of spend and service volumes Addressing the impact of Welfare Reform * Staff recruitment, training and retention policy
Improve public protection arrangements (E,H,I) * Assessing and managing risks to adults and children * Staff training and qualification profiles * Protection related inspection results * Time taken to support and protect children in need * Time to adult and child protection case conferences * Reoffending rates * Managing high risk offenders (MAPPA) * Criminal justice orders successfully completed * No. high risk offenders supported in residential facilities * % agree the Council provides protection and support for vulnerable people EPS
Insufficient financial and human resources to meet health and social care needs to an acceptable standard (1-6)
Impact of Welfare Reform increases poverty and demand and reduces charging income (1-6)
Personalisation/ Self Directed Support reduces stability of internal and purchased care markets (1-6)
Budget reduction controls and efficiency programme fail to deliver balanced budget (1-6)
RISKS
Major incidents cause disruption to services (1-6)
Re-offending by dangerous offenders (1-6)
PLEDGE AREA
Edinburgh is an excellent place to live, study, work, visit and invest (Part A)
Internal: Elected Members, Neighbourhoods and Neighbourhood Partnerships External: Residents, Landlords, Visitors, Scottish Government, Customers, Funders, Suppliers, Partners, Developers, Investors, Agents, Community groups, Amenity organisations and government agencies
WHO: STAKE HOLDERS
Well-housed
People live in a good quality home that is affordable and meets their needs in a wellmanaged Neighbourhood
Clean
Edinburghs streets and open spaces are clean and free of litter and graffiti
Green
Attractive Places and Well maintained
STRATEGIC OUTCOME
We reduce Transport 2030 Vision the local Edinburgh remains an attractive city through the environmental impact of development of high quality buildings and places our consumption and and the delivery of high standards in the production. maintenance of infrastructure and public realm
Culture, sport and major events

Edinburgh continues to be a leading cultural city where culture and sport play a central part in the lives and future of citizens
People live in a home that they can afford
WHAT: OBJECTIVES
People live in a warm, safe home in a well-managed Neighbourhood People can move home if they need to
We will engage, educate and encourage people to take responsibility for helping keep Edinburgh a clean and green city. We will achieve high standards of maintenance and cleanliness in our open spaces
We will only send waste to landfill that cannot be prevented, reused, recycled or recovered for energy Contribute fully to CO2 greenhouse gas, air quality and safety targets We will meet the demand for allotments and community food growing
Protect and enhance the Built and Natural Environment We will manage our green spaces in a way that creates diverse and attractive landscapes that people will visit, use and enjoy
Manage a major investment programme to deliver good quality, well maintained roads and pavements Promote high quality and sustainable design and healthy living and working environments
Effectively support and manage festivals and major events Maintain and increase participation in sport and physical activity Deliver cultural development and grant funding Protect and develop collections, historic buildings and monuments of cultural and heritage value
Deliver a proactive planning and place making service
HOW: STRATEGIES
City Housing Strategy Tenant Participation Strategy
Edinburgh Waste and Recycling Strategy imProve it Air Quality Action Plans
Parks and Gardens Strategy
Strategic and Local Development Plans Built & Natural Heritage Strategy
Lighting Strategy
Open Space Strategy Road Asset Management Plan
Thundering Hooves Action Plan Events Strategy A range of cultural and sport strategies
Sustainable Edinburgh Strategy 2020
DO: PERFORMANCE INDICATORS
People live in a home they can afford: Increase in Income collection as a % of the gross rent due Increase in number of affordable homes approved & homes completed P8 SOA Reduction in % of households in Edinburgh who are fuel poor Letting times SPI Rent lost on empty homes SPI Current rent arrears as a % of the net amount due SPI People live in a warm safe home in a well managed neighbourhood: % of homes meeting the SHQS SPI Reduction in % of disrepair/serious disrepair in private homes % of tenants satisfied with repairs to their home SPI % housing repairs completed on target SPI People can move home if they need to: Increase in % of all homeless assessment cases housed by Private Rented Sector % of advice cases that do not go to present as homeless SPI Reduction in average amount of time in temporary accommodation Increase in % of households who are assessed as homeless who are in priority need % cases reassessed within 12 months of completion of duty in permanent accommodation SPI % of homeless people provided with permanent accommodation SPI
SOA
Clean: Tonnes to landfill P49 household waste recycled and composted P52 SPI EPS Customer satisfaction Delivery of Waste strategy milestones Delivery of imProve it and programme milestones net cost of refuse collection per premise net cost of refuse disposal per premise CIMS/LEAMS P44 SPI Street cleansing complaints dog fouling, graffiti, fly tipping and weed growth EPS Customer satisfaction Community clean-ups Green: Meeting environment and safety targets: Greenhouse gas emissions from transport Nitrogen dioxide concentrations % agree the Council cares about the environment. EPS Reduction Co2 emissions in council properties P51 Green Flag Award P48 Park Quality Assessments Landscape Quality Standards Number of Friends of Parks Groups, Number of events held in Greenspaces Number of community garden schemes Allotment Plot Total & waiting list Customer satisfaction EPS Delivery of ImProve it programme milestones
SPI SPI
Attractive Places: Planning performance framework Planning applications processing Environmental Quality Assessments Development plan milestones Successful appeals as a % of planning applications SPI Building Standards balanced scorecard Value of development Number of listed building requiring investment % of development on brownfield sites Improved customer satisfaction Green Flag Award P48 Park Quality Assessments Landscape Quality Standards Number of Friends of Parks Groups Number of events held in Greenspaces
SPI
Well-maintained % road network in need of maintenance (RCI) SPI % of street light repairs within 7 days Average time to repair traffic signal fault % of bridges in need of maintenance % of road defects repaired within 3 working days
Achieve 80% of targets within Culture and Sport business plans Attract one major new event to the city per year Maintain or increase the numbers of those attending existing core events Number of attendances and attendances per 1000 population for all pools and indoor facilities operated by Edinburgh Leisure SPI Visits to museums and galleries (per 1000 population) SPI Attendance at council-funded festivals (ticketed and unticketed) and theatres (Festival City Theatres Trust, Traverse, Lyceum) Attendances to Usher Hall ,Church Hill Theatre and Assembly Rooms Council-funded theatres and Usher Hall online ticket sales as a percentage of total sales Increase page views for Assembly Rooms, Usher Hall and Museums and Galleries websites Maintain or increase the level of National standard or VisitScotland grading or external accreditation for key cultural venues. P31 % satisfied with access to sport and leisure facilities in Edinburgh
(tbc) EPS
% believe that Festivals make Edinburgh better EPS % who personally benefit from Edinburghs festivals EPS
Recession and welfare reform increases homelessness
Falls in property values impact on money available for Regeneration Investment Programme Severe winter weather results in services being compromised
RISKS
Failure to meet recycling and landfill targets
Loss of Campus Building premises may result in loss of staff time/services
Project governance (poor cost control, contract management etc) may impact on the capital and change programmes of the Council. Recession holds back investment in the City and its built heritage
Lack of investment in infrastructure hinders development
Failure to achieve behavioural change impacting on the ability to keep the City clean and green
Changes in waste volumes and composition
PLEDGE AREA
Edinburgh is an excellent place to live, study, work, visit and invest (Part B)
Internal: Elected Members, Neighbourhoods and Neighbourhood Partnerships External: Residents, Landlords, Visitors, Scottish Government, Customers, Funders, Suppliers, Partners
WHO? STAKE HOLDERS
Safe Residents, visitors and businesses feel that Edinburgh is a safe city
Moving efficiently Edinburgh Vision Transport 2030has a transport system that improves connectivity and is green, healthy and accessible
Well engaged and well informed Communities and individuals are empowered and supported to improve local outcomes and foster a sense of community
STRATEGIC OUTCOME
WHAT? OBJECTIVES
Create safer city and communities by appropriate regulation and education and by promoting and encouraging acceptable behaviours Reduce crime and antisocial behaviour Improve public protection
Manage city travel to increase travel by bike, foot and public transport and reduce car use Ensure reliable inclusive access, especially to the City Centre, and improve public realm
Develop integrated services as one stop neighbourhood places for engagement, employability, leisure and learning.
Continue to develop the Neighbourhood Partnership approach to improve local services, performance and outcomes.
Improve community perceptions of safety and security Community Policing Model Policy HOW? STRATEGIES Anti Social Behaviour Strategy Violence Reduction Programme Food Health & Safety Plan Hate Crime Strategy Joint Health Protection Plan Road Safety Action Plan Active Travel Action Plan Local Transport Strategy Transport 2030 Vision Public Realm Strategy
Provide a dynamic 21st Century Library Service that is high quality, continually improving, efficient and responsive to local peoples needs and aspirations.
Local Community Plans
Next Generation Library and Information Services Strategy
Safe: Number of ASB complaints per 10k population SOA % of ASB complaints resolved Number of repeat ASB complaints Satisfaction with how ASB complaints dealt with Number of Group 1-5 crimes % of residents perception of feeling safe after dark EPS SOA Domestic Noise complaints: average time (hours) between the time of the complaint and attendance on site SPI Trading Standards: % of consumer complaints completed within 14 days SPI Trading Standards: % of business advice requests completed within 14 days SPI Number of food safety hygiene inspections completed on time Preparation of food premises in A, B and C inspection categories Number of public health complaints by priority Number of pest control complaints by priority Water testing programme completed on time Health & Safety inspections of commercial properties completed on time
Manage City Travel: Proportion of all journeys and of journey to work / education made on foot / by bus / car / cycle etc. Overall motor traffic levels million vehicle kilometres Ensuring access and improving public realm: Journey time variability - car and public transport Working age population within 30mins of city centre by public transport City centre pedestrian activity Satisfaction with public transport EPS Access to services without a car Disabled people - unmet travel demand Access for disabled passengers (David Lyon to confirm Fleet)
Libraries: Number of library transactions P35 Number of visits (per 1000 population) Number of e-resource use and transactions SPI Under 16s attending library events PC usage Membership figures Satisfaction with libraries EPS Neighbourhood Partnerships: Impact and delivery of outcomes in Local Community Plans (x12) Community Engagement: Community engagement as measured by the VOICE tool (tbc) Measurement of progress against the National Standards for Community Engagement (tbc) Impact of targeted engagement; consultation, events, focus groups (tbc) Community Councils: Engagement measures (tbc) Funding (tbc) Neighbourhoods: satisfaction with neighbourhoods (x12) as a place to live EPS SOA satisfaction with management of neighbourhoods (x12) EPS satisfaction with being able to have a say on local services (x12) EPS SOA satisfaction that different backgrounds can get on well together (x12) EPS SOA
Note Outcome indicators for Licensing, Food, Health and Safety, public health, pest control & H&S tbc. Green flag indicators for cemeteries tbc. Road Safety: Road traffic casualties P46 Pedestrian and cyclist casualty rates Killed and seriously injured SOA % of cyclists who feel safe using roads EPS
National reform of Police and Fire Service may distract from local priorities.
Welfare Reform & ongoing economic slowdown impacts on ASB & Crime levels
Economic slowdown impacts on H&S in businesses increasing higher risk establishments
Unfavourable investment decisions by third parties, increases in need for bus service or other support
Lack of infrastructure investment leads to deterioration of roads, bridges etc
RISKS
Reputational damage and financial loss.
Welfare reform has a major impact on citizens and services
WHO? STRATEGIC STAKE- PLEDGE OUTCOMES HOLD- AREA
The City of Edinburgh Council is an efficient and effective organisation and a great place to work
Internal: Managers, staff and Elected Members The Council communicates effectively internally and externally and has an excellent reputation for customer care. The Council has efficient and effective services that deliver on objectives. External: public, partners, government and outside bodies The Council engages with stakeholders and works in partnership to improve services and deliver on agreed objectives. Lead and support the internal governance of the council to achieve best practice. The Council supports, invests in and develops our people.
ERS
WHAT? OBJECTIVES
Achieve transformational change and improve the Councils reputation
Provide excellent, efficient and accessible customer services that deliver on continuous improvement and our statutory duties Engages well with partners and stakeholders to deliver on shared outcomes for communities
Support our people to do their jobs well
Support political management to deliver effective decision making that is transparent, accountable and based on consensus
HOW? STRATEGIES
Overarching business plan in development

Reputation / Comms. Strategy Achieving Excellence 2012 -17 Customer Access Strategy Governance Review ICT Strategy Long term financial plan Corporate Projects / Change Programme Single Outcome Agreement OD Strategy People Plan Corporate Asset Management Plan IPFM Change Programme Tenant Participation Strategy Framework to Advance & Rights 12/17
Achieve transformational change and improve the Councils reputation

Change Programme and Key Projects * Projects completed within time, budget * ROI of Transformational Projects per relevant FTE * PROSCI staff trained Self-Evaluation * Impact analysis of improvements from self evaluation (statutory and non-statutory) EFQM Business Excellence * Track progress to Gold 5* Stars
Provide excellent, efficient and accessible customer services that deliver on continuous improvement and our statutory duties
Customer Experience * Analysis, trends of complaints / compliments * Complaints to Ombudsman / upheld * Satisfaction with complaint handling * Customer Care Standards * Satisfaction with key services (all maps) * Achievement of Customer Excellence accreditation / # of partials and best practise Contact Centre * Calls answered in 30 seconds / drop rate * First time resolution * Ratio of complaints vs tasks * Cost per transaction Information Compliance * Responded to within statutory timescales * Internal review appeals (upheld / partial release / full release) * Appeals to the Scottish Information Commissioner (upheld / partial release / full release) Records & Archives * Records Centre performance Records Management * Audit of services evaluating statutory elements of RMP Legal Services * Critical deadlines are met * Fee earner utilisation (80% target) Customer Research * Impact analysis of consultation / research Risk & Audit * Service risk self-assessments completed Well Maintained Properties * Total running costs of Council buildings * % of accommodation that is in a satisfactory condition SPI Property Rationalisation * Reduction in floor area * Generate Capital receipts * Increased rental income * Decrease level of backlog maintenance
Lead and support the internal governance of the council to achieve best practice
Performance & Planning * Outcomes on track / achieved * % of reports on time (include error rate) ICT * Availability of critical systems * ICT projects within time, budget * ICT procurements compliant with strategy Finance P30 * Actual revenue spend as a % of budget * Comparison of actual Outturn against Forecast for Revenue and Capital * Insurance: Net Cost / Cost per k value insured for property and motor insurance * Treasury maximise funding a) Cash fund performance compared to benchmark and b) the reduction of the Loans Fund Pool Rate compared to other LAs. * Final Accounts which are submitted on time, compliant with ACOP, unqualified and with high standard of feedback received from external audit on working papers * Support service costs as a % of spending * % spend with contracted suppliers * % of procurement spend in local EH * Procurement savings achieved * Benchmark cost per M for the accounting function Corporate and Transactional Services * Debt recovery % / time * New benefits claims processed within 29 days * % of business rates collection * % Council Tax collection rate SPI * cost of collecting Council Tax per dwelling
SPI
Support our people to do their jobs well

Staff Engagement * % Staff survey response rate * % skills needed to do job effectively * % have clear work objectives * % L&D activities help to develop career * % feel treated fairly at work * Programme of Talkabouts, Away Days, etc * Staff recognition / award scheme Managing Attendance * Sickness absence rate SPI * Sickness absence triggers People Planning & Development * People Plan tracked corporately * PRD completion * Average PRD score * Impact of training spend on performance * Recruitment timescales * Satisfaction with learning and development * No. staff registered with the Scottish Social Services Council * No. staff meet qualification requirements of registration per year Investors in People * IiP actions delivered / Impact Analysis Human Resources * FTE / staff numbers * Staff turnover rate * VERA / redundancy P26 * Disciplinary actions taken * Grievances lodged / dealt with effectively * Recruitment numbers / costs P25 * recruitment within timescales * Accidents reported to Health and Safety Executive Equalities * % of the highest paid 2% and 5% of earners that are women SPI * % key services with ERIA * Equality outcomes on track / achieved * & of employment diversity targets met * equal pay monitoring
DO. PERFORMANCE INDICATORS (tbc measures under development)
Staff Perceptions * % feel reasons for change are well communicated * % feel involved in decision making * % understand the need for change * % support the need for change * % change is well managed Citizen Perceptions * % satisfaction with value for money EPS * % satisfaction with city management EPS * % feel the Council is easy to contact EPS Reputation Tracker * Reputation tracker survey (tbc) * Social media analytics (tbc) Journalist Perceptions Survey (tbc) * Responses meet journalist needs * Media tracking and analysis Local, National & International Awards * Applications submitted * Awards long / short-listed / won Communications * Analysis of campaign / project impact * Spokesperson interviews Ability to deliver and innovate * Impact made through access to EU funding
* gross admin per benefit case SPI

* Invoices paid within 30 days SPI Business Continuity * Maintain accreditation to British Standard for business continuity (BS25999) * Maintain ISO9001 accreditation for emergency planning function * Chief Officer Training (100% target) Audit * Achievement of Audit Plan ISO 9000/2008 standards met (100% target)
Work well with partners to deliver on shared outcomes

Community Planning * SOA indicators on track / achieved * Partner satisfaction with CPP arrangements Third Sector * % overall levels of active citizenship (tbc) * Number of Investors in Volunteering accreditations (tbc) Sustainability * Sustainability targets P50 * Low carbon / energy project impact P53 Engagement Activities * Engagement activities using VOiCE tool *Jointly-delivered training events Citizen Perception * Feel able to have a say EPS SOA
Support political management to deliver effective decision making that is transparent, accountable and based on consensus
Governance * Deliver web-casting e-petitions and e-voting * Progress review of governance arrangements (six-monthly) * % of agendas issued within 3 working days * % of action sheets issued within 1 working * Impact analysis of actions Support to Elected Members * Satisfaction with Elected Member support Coalition Pledges * Performance reported on time with 6 monthly and annual reporting * Capital Coalition Pledges on track / achieved
Risk management and business continuity * Compliance with legislation * Protecting public interest * Risk analysis of business * Avoidance of liability
RISK
Reputational and financial impact of post-ABM, property conservation, trams
Lack of progress on workforce planning and management
ICT problems impact customer service / delivery of essential services
Welfare reform has a major impact on citizens and services
Information security breaches lead to loss of confidential data
Industrial relations negatively impacted, hard to retain key staff
Version 0.26 for workshops
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CEC/49/12-13/CG
Strategic Governance: Strategic Plan

25 October 2012 1 1.1 2 2.1 Purpose of report The purpose of this report is the present the Councils Strategic Plan for consideration and approval. Strategic Plan The Council has developed a wide range of integrated plans to deliver organisational objectives and positive outcomes for Edinburghs citizens. To bring this together into one clear document, the Council has developed a Strategic Plan 2012-17 which provides a corporate framework for the delivery of services. The Strategic Plan is the Councils main corporate planning document and is set out in Appendix 1. The Strategic Plan is based on the new outcome-based Pledge Areas below that have been developed to take account of priorities with the overarching vision that Edinburgh is a successful and sustainable capital city. This provides the golden thread to which all planning, outcomes and measures are now aligned.
2.2
CapitalCoalitionPledgeAreas
Ensureeverychildin Edinburghhasthebest startinlife
The Council is an efficient and effective organisation and a great place to work Edinburghs children and young people enjoy their childhood and fulfil their potential
ProvideforEdinburghs prosperity
Reducepoverty, inequalityand deprivation
Health and wellbeing are improved in Edinburgh and there is a high quality of care and protection in place for those who need it
'Edinburgh is a successful and sustainable capital city.
Edinburghs economy delivers increased investment jobs, and opportunities for all
Maintainand improvethe qualityoflife inEdinburgh
Edinburgh is an excellent place in which to live, study, work, visit and invest
EnsureEdinburghand itsresidentsarewell caredfor
Strengthenandsupport ourcommunitiesand keepthemsafe
2.3 2.4
The Strategic Plan is fully aligned to the Capital Coalition Pledges, the Single Outcome Agreement and delivers on Council priorities. It is intended that the Strategic Plan replaces the service area Service Plans. However, some services will continue with these for more detailed planning purposes. The Strategic Plan is supported by a range of detailed outcome and thematic plans such as the Integrated Plan for Children and Young People, the Economic Strategy and the City Housing Strategy. The Strategic Plan will complement the outcome of the budget consultation and engagement process to be undertaken and provide an overarching view of the Councils strategic direction. The Strategic Plan will be reviewed annually in consultation with Elected Members and in line with the annual budget process. Financial implications Financial implications are noted within the strategic plan. Environmental impact Edinburgh is an excellent place to live, study, work, visit and invest includes priority actions to keep the city clean, green, safe and well maintained. Equalities impact The equalities relevance score has been previously assessed in the report of 19 May 2011 as 3 (low) and therefore no subsequent Equalities Impact Assessment is recommended. Recommendations It is recommended that the Council approve the Achieving Excellence Strategic Plan 2012-17. Alastair D Maclean Director of Corporate Governance
2.5
3 3.1 4 4.1 5 5.1
6 6.1
1 Strategic Plan Tom Little, Head of Policy and Public Affairs, 469 3846, tom.little@edinburgh.gov.uk All Supports all outcomes which are aligned to the Pledge Areas Audit Scotland report Managing performance: are you getting it right? (October 2012)
THE CITY OF EDINBURGH COUNCIL
STRATEGIC PLAN
2012-17
FOREWORD
We are pleased to present the five year strategic plan for the City of Edinburgh Council. Our city is widely known as a great place to live and the Council plays a major part in Edinburghs success. We are responsible for a very broad range of services that affect the quality of life of Edinburghs citizens. Our challenges include more demand for those services, a changing population and budget cuts. But we have listened to peoples priorities and will focus our efforts and budget where they are needed most. This plan sets out five areas as the focus for 2012-17 with ambitious targets that complement the coalition Administrations key commitments. Achieving these will help to keep Edinburgh a thriving, fair and sustainable city.
Councillor Andrew Burns Council Leader

INTRODUCTION
Edinburgh is a successful city and makes a major contribution to the social, cultural and economic success of Scotland and the UK. Renowned for its festivals, for its thriving financial and education sectors, and for its cultural heritage, beauty and great quality of life, Edinburgh continues to attract people, business and investors, bucking the wider trend across Scotland of a decline in population. However, despite these strengths, Edinburgh still faces challenges: Demographic changes continue to impact on public services such as the number of older people needing care and support. Despite being a mainly wealthy city, Edinburgh has persistent inequalities affecting a significant minority of its people. One in five of children in the city live in households which depend on benefits. An increasing proportion of our young people enter positive destinations after leaving school but this is below the national average. Unemployment is an issue in a period of economic uncertainty. In 2011, the city had 5,000 more claimants of job seekers allowance than in 2008. There is a shortage of affordable housing in the city. Weve taken all of the above into account when selecting the priorities in this plan which provides a framework for the delivery of services and priorities. These priorities, together with strong leadership and a stable political environment, will ensure the Council continues to improve its services and reputation over the next five years.
The Council headquarters, 4 East Market Street
More detailed analysis of our performance, challenges and priorities is available at: www.edinburgh.gov.uk/understandingedinburgh
THECITYOFEDINBURGHCOUNCIL
The City of Edinburgh Council is the second largest council in Scotland and the eighth largest unitary council in the United Kingdom. The Council manages an annual budget of over 1bn and employs over 15,000 full time equivalent staff.
Executive Committees and the Audit Committee
Political make-up of the Council

There are 58 councillors in 17 multi-member wards.
Political Party Scottish Labour Party Scottish National Party (SNP) Scottish Conservative and Unionist Party Scottish Green Party Scottish Liberal Democrats Number of Councillors 20 18 11 6 3
Paul Godzik Convener of Education, Children & Families
Richard Lewis Convener of Culture & Leisure
Ricky Henderson Convener of Health, Social Care & Housing
Tom Buchanan Convener of Economic Development
The City of Edinburgh Council is run by a coalition between the Edinburgh Labour Party and the Scottish National Party. The parties signed a coalition agreement and their main commitments are reflected in this Strategic Plan.
Lesley Hinds Convener of Transport, Infrastructure & Environment
Alasdair Rankin Convener of Finance & Resources
Maureen Child Convener of Audit
Jeremy Balfour Convener of Governance, Risk and Best Value
Maggie Chapman Convener of Petitions
Planning and Regulatory Committees

Further information on all Committees, Joint Committees and Joint Boards is available at www.edinburgh.gov.uk A profile of the Corporate Management Team is on the next page and a financial overview is in Appendix 1
Council Leader and Lord Provost
Ian Perry Convener of Planning Andrew Burns Council Leader Steve Cardownie Deputy Leader Donald Wilson Lord Provost Deidre Brock Depute Lord Provost
Gavin Barrie Convener of Regulatory
THECORPORATEMANAGEMENTTEAM
Sue Bruce
Chief Executive
Dave Anderson Director of City Development
Gillian Tee Director of Children and Families
Peter Gabbitas Director of Health and Social Care
Alastair Maclean Director of Corporate Governance
Responsible for economic development in the city by enabling business investment, co-ordinating development in the major development zones, championing enterprise and innovation in Edinburghs business community, and supporting people into work and education.
Responsible for providing a wide range of local services keeping the city clean, green, and safe. Also helps to keep the city beautiful, wellmaintained and moving, its people well-housed and its communities well-informed and engaged.
Responsible for ensuring that children and young people enjoy their childhood and fulfil their potential. Children and Families provides a wide range of services for children, young people and families. They include schools and community education, youth justice and social work services for children and their families.
Responsible for the health, care, protection, wellbeing and independence of adults. Services include support at home or in residential care for older people, people with mental health problems and people with physical and learning disabilities as well as services to the courts and supervision for some offenders living in the community.
Responsible for business services including finance, legal, people and organisational development, policy and public affairs, corporate and transactional services, ICT, change, risk and emergency planning. It is also responsible for culture and sport services, city-wide community planning and administering the Lothian Pension Fund.
OURVISIONANDOUTCOMES
Our vision
We share a vision with our partners that Edinburgh is a thriving, successful and sustainable capital city in which all forms of deprivation and inequality are reduced. To achieve this we aim to build a more co-operative and prosperous Edinburgh that benefits every individual and community.
Our outcomes
We have identified five strategic outcomes outlined in the diagram opposite. These outcomes reflect priorities across all our services and will deliver on the coalitions priorities to: Ensure every child in Edinburgh has the best start in life Reduce poverty, inequality and deprivation Provide for Edinburghs prosperity Strengthen and support our communities, and keep them safe Ensure Edinburgh, and its residents, are well cared-for Maintain and improve the quality of life in Edinburgh.
For more information on the coalition agreement visit www.edinburgh.gov.uk 5
DELIVERINGONOUROUTCOMES
Identifying priorities
Continued pressure on public sector spending means we need to prioritise our services. Weve used our experience of providing services, the views of stakeholders and evidence from performance and research to help identify our outcomes and priorities. This has helped us to focus on the big issues that really matter to communities. children need to be looked after by the Council. We need to work in different ways and in partnership with others to deliver this plan and provide more cost effective services that deliver better outcomes. We are committed to further developing community capacity. That means giving local people, voluntary organisations and businesses greater scope to work together to find local solutions to local problems. We aim to provide support to strengthen the skills and abilities of people and community groups to take effective action and play leading roles in the development of their communities. We aim to develop a customer access strategy to offer customers choices in how and when they can contact the Council, while maintaining consistent and high quality customer service. We aim to be innovative in our approach by improving processes, making better use of technology, making the best use of Council property, improving how we buy goods and services and providing the right support to managers and front line services. Our prioritised approach, focused on innovative support tailored to the circumstances of individuals and communities will ensure delivery of these positive outcomes for Edinburgh. The following pages: provide details of the priorities within each of our five outcomes highlight what we aim to do to achieve the outcomes give details where further information for each outcome can be found provide targets that we aim to use to track our progress.
Delivering outcomes
To deliver our outcomes: We aim to strengthen our approach to early intervention and prevention by providing services that prevent problems developing and by targeting help for people at risk, or with vulnerabilities or additional needs. For example, we aim to take action to improve early support for families so that fewer
1.EDINBURGHSCHILDRENANDYOUNGPEOPLEENJOYTHEIRCHILDHOODANDFULFILTHEIRPOTENTIAL
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1.Edinburghschildrenandyoungpeopleenjoytheirchildhoodandfulfiltheirpotential
We want all children and young people in Edinburgh to enjoy their childhood and fulfil their potential whatever their life circumstances. We aim to place children, young people and families at the heart of all our services and provide support when it is needed throughout childhood and the transition to adulthood. The Integrated Plan for Children and Young People and the Children and Families Service Plan were developed in consultation with stakeholders including young people. Through this consultation six supporting outcomes were identified: Our children have the best start in life, are able to make and sustain relationships and are ready to succeed Our children and young people are successful learners, confident individuals and responsible citizens making a positive contribution to their communities Our children and young people at risk, or with a disability, have improved life chances Our children and young people are physically and emotionally healthy Our children and young people are safe from harm and fear of 8 harm, and do not harm others within their communities Our childrens and young peoples outcomes are not undermined by poverty and inequality We have identified the following key priorities. Support in Early Years We aim to take action to improve support in early years so that all children reach developmental and social milestones. We know that there is a direct link between the experiences of early childhood and what happens in adult life. Parents' interaction with children during early childhood is critical in developing relationships and laying the foundations for positive physical and mental health development. We aim to strengthen early years services and help families build effectiveness and confidence. We want to deliver integrated early years education and childcare with additional support targeted at children and families who need it most. Effective learning and support programmes, outreach services and good quality local information are some of the targets for action. We aim to seek to reduce P1 class sizes and draw up a long-term plan to address over-crowding and under-use in schools. Early Support for Families We aim to take action to improve early support for families so that fewer children need to be looked after, with a focus on addressing the impact of drug and alcohol misuse by parents. We know that the needs of children are best met in stable families. Our aim is to address this through a range of measures which support families. Working in partnership we want to encourage and support communities that provide a caring environment for children and families and deliver services that meet their needs. Specifically, we aim to reduce the numbers of children and young people who need to become looked after by engaging and supporting families earlier and more effectively when concerns are identified. We aim to help Looked-After Children to remain within their own family networks by supporting kinship care placements where these are able to meet the childs needs. Attainment of Lowest Achieving Pupils We aim to take action to improve the educational attainment of the lowest achieving pupils. Key to children and young people becoming successful learners, confident individuals and responsible citizens is ensuring that they have the knowledge, skills and attributes they will need to flourish in life. School attainment is an important outcome and we are committed to high-quality inclusive schools which work with families to meet the needs of all their children. We aim to strengthen support for children to reduce truancy and the need for exclusion. By identifying early those at greatest risk of being educationally disadvantaged we can target support to ensure that all achieve their full potential. We aim to continue to ensure the smooth introduction of the Curriculum for Excellence. We aim to rebuild Portobello High School and continue to progress other planned developments, while providing adequate investment in the fabric of all schools.
Health We aim to take action to improve the health of children. All children and young people are entitled to high-quality services that will help them live longer, and maintain positive physical, emotional and mental health, regardless of where they live. We aim to move away from crisis management and towards prevention. We aim to increase health equality between children and young people across the whole of Edinburgh and deliver health services that have been designed around needs. We support healthy lifestyle choices, particularly around minimising exposure to risky behaviours such as unsafe sex, smoking and substance misuse. We aim to strengthen services and address health needs early. Life Chances for Children Looked After We aim to take action to improve life chances for Looked-After Children including increasing the focus on corporate parenting. This means working more effectively across service areas and ensuring we have the same interest in the achievements of Looked-After Children as a reasonable parent would have for their own children. Looked-After Children are likely to 9
experience poorer outcomes than their peers. They are likely to have poorer physical and mental health, are particularly vulnerable to substance misuse and self harm. They are also more likely to have poorer educational results. We aim to improve this by ensuring that there are ongoing assessments of health needs, and that these needs are met through partnership working. We aim to also ensure that all Looked-After Children are supported to get the best possible education. We want to identify and respond to childrens difficulties as soon as possible. By improving support for children who are looked after at home we aim to reduce the need for children to be accommodated. We aim to then be in a stronger position to invest more in early and effective identification and prevention work. We also aim to increase the number of Council foster placements to achieve better outcomes for children and young people who need to be placed away from home. Positive Destinations As young people prepare to enter adult life, the skills and personal qualities they have been provided with will enable them to lead productive lives. There is a strong link between under-achievement at school and unemployment.
Through working collectively we can ensure that children and young people get the opportunities to gain these key skills and to ensure that opportunities are available within the local area. In this way we can ensure that children and young people enter adult life with positive options, making positive choices. We aim to take action to increase the number of young people getting jobs or entering training or education. We aim to further develop the Edinburgh Guarantee to improve work prospects for school leavers by offering apprenticeships and support. Support for Children with Additional Support Needs We aim to take action to improve early support for children with Additional Support Needs. There are approximately 4000 children in Edinburgh with Additional Support Needs including disability and behavioural problems. They are more likely to come from families in poverty, living in our most deprived communities, and their life outcomes are likely to be significantly poorer. Through partnership working we aim to improve access to services, ensuring that children with Additional Support Needs are not marginalised, have good opportunities to socialise, receive
education in an appropriate setting, access further and higher education opportunities and make positive life choices. We aim to:
Increase the % of children entering Primary 1 with literacy and numeracy scores of 85 or more % of Looked After Children who are looked after at home to 37% by 2014/15 scores of the lowest attaining 20% of fourth year secondary school pupils to 69 by 2014/15 % of Looked After Children school leavers who are in an initial positive destination % of school leavers who are in positive destinations after leaving school to exceed the national average Reduce the number of children who need to be Looked After to below the national average % of Primary 1 pupils who are obese to 8.1% by 2014/15 % of 15 year olds who are regular smokers to 10% by 2014/15 % of 15 year olds drinking once a week or more to 15% by 2014/15 % of 15 year olds who have taken drugs in the previous month to 10% by 2014/15 number of children referred to the Childrens Reporter on the grounds of lack of parental Care the rate of exclusion for Looked After Children P1 class size to a maximum of 25 pupils
2.EDINBURGHSECONOMYDELIVERSINCREASEDINVESTMENT,JOBSANDOPPORTUNITIESFORALL
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2.Edinburghseconomydeliversincreasedinvestment,jobsandopportunitiesforall
We want our residents to be proud of Edinburgh a confident, creative and inspiring capital city, powering growth and jobs for the city region and Scotland; a city that draws talent and investment from around the world; a city where the public, private and third sectors collaborate with common purpose; and ultimately a city which puts the people of Edinburgh at the heart of its economic success. Our approach to supporting the economy is set out in A Strategy for Jobs - the Councils economic strategy for 2012-17. Our key priorities for the period 2012-17 are: invest in the citys development and regeneration support inward investment support businesses help unemployed people into work or learning. Invest in the citys development and regeneration Investment in development and regeneration is central to sustainable growth in the city. Such investment helps improve the attractiveness of Edinburgh by providing excellent transport links, better public spaces, affordable housing and encouraging the development of new industries. In our approach, we aim to look for innovative ways of using the Councils resources to bring new investment into the city. In particular, we aim to prioritise our efforts on capital projects with the potential to make the biggest impact on job creation in the city. This includes completing the tram link to Edinburgh airport and the development of business cases for further routes. Other projects include improving public spaces in the city centre to help shops and projects to make Edinburgh a super-connected city, by improving access to high speed broadband and introducing wireless zones in key areas. We aim to deliver Council-wide development plans for four priority investment zones - the City Centre, South and East Edinburgh, the Waterfront, and West Edinburgh. These plans will reflect the different regeneration and investment priorities and involve local people. We aim to support and enhance the vibrancy of Edinburghs town and local centres and seek new ways to fund capital projects across the city. Throughout these projects, our development activity will align with our employability programme. This will ensure that out-of-work residents have the chance to access the job opportunities provided by new investment. Support inward investment Edinburgh has had considerable success in attracting inward investment from major global companies in recent years. Such investment brings substantial benefits to the city: improved productivity, job creation, improved skills and innovation, and new facilities and housing. Attracting international investors is also important to ensuring the city takes full advantage of its assets in new growth sectors, such as the low-carbon economy. While the competition for international investment is intense, we believe we can sustain and improve the citys success rate. We aim to do this by complementing and adding to Scottish Development Internationals (SDI) lead role in this area. We aim to promote Edinburgh as a destination for new investors. Such activity will emphasise the citys offer to investors as part of national investment campaigns. In doing so, we aim to work with agencies to develop a single set of complementary messages for investors and business visitors. This will help local firms and residents gain maximum benefit from investments attracted to the city. We aim to provide a seamless service to new investors in the city, joining up the services offered by the Council and its partners. The package will include support for planning, advice on housing and schools, sourcing office space, and support for staff recruitment and training. Such activities will help new companies embed themselves in the community and maximise their potential for growth and jobs creation. All of these programmes will be supported by research that enhances our understanding of markets and supply chains, and the rationale for location decisions made by business investors. Support businesses We aim to step up our efforts on business support, continuing to support start-up businesses but improving our focus on companies with growth potential. We have been successful to date in supporting almost 5,000 start-ups and existing businesses per year. Our programme will build on this to help firms develop their business
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skills, access new markets, introduce new products and promote an entrepreneurial culture in Edinburgh. The focus of support will be to help businesses create and retain jobs and help them overcome barriers to growth. We aim to establish a single, accessible service for business customers to ensure a joined up approach to helping businesses prosper. We aim to continue to improve our business support services to enhance the entrepreneurial skills of new and existing firms in the city. This will include a Business Gateway service which supports new and growing businesses through workshops, web tools and one-to-one advice. We aim to promote innovation and collaboration among Edinburghs businesses, supporting research and development activity and encouraging knowledge transfer. We aim to encourage growth in key sectors of Edinburghs economy. These include sectors in which the city has significant existing strengths as well as emerging sectors with the potential to grow quickly. Examples will include encouraging growth and collaboration in Edinburghs creative sector, providing support to the social enterprise sector and promoting the move to a lowcarbon economy. 12
We aim to work to improve the ability of local firms to benefit from buying and selling opportunities in the private and public sector particularly those created by new investors. We aim to work with local firms to encourage and assist their plans for expansion and investment. Help unemployed people into work or learning We have helped nearly 5,000 people into work, education or training since 2009. Our efforts to date have focused on supporting people with significant barriers to work and whose needs are not fully met by nationally funded services. In future, we aim to build on this progress and adopt a bolder, more joined-up approach to service delivery. This approach will provide a greater focus on young people. We aim to build a co-ordinated approach across the Council to developing employment and skills. This will improve the clarity and quality of service offered to our customers; make services easier to understand and access; and deliver better results and value for money. To ensure greater engagement with the private sector, we aim to set up new local employment hubs, closely linked to the four investment zones and centres of employment or opportunity. We aim to increase the number of
school leavers and young people going on to a positive destination. To do this, we aim to provide the Edinburgh Guarantee offering apprenticeships and support initially for school leavers to move into a job, education, volunteering, training or self-employment. Assistance will also be available to the older long-term unemployed. We aim to provide support to help newly unemployed residents reenter the workforce. We aim to provide support to help individuals progress in work and raise their earnings. Throughout all our programmes, we aim to complement national services to support vulnerable individuals in priority groups and regeneration areas.
We aim to
Increase the citys new business start up rate in the longer term Increase the citys business stock in the long term Increase the proportion of new businesses that survive for at least three years to 65% by 2014/15 Increase business expenditure on Research & Development from 355 to 418 by 2013 Increase Gross Value Added per capita from 34,950 to 35,000 Reduce the number of claimants in receipt of out of work benefits to 12% Decrease the number of claimants under 25 in receipt of out of work benefits Increase the median earnings of full time employees resident in Edinburgh to 545 per week by 2014/15 Reduce the proportion of children living in households that are dependent on out of work benefits to 19% by 2014/15 Increase the proportion of the working age population who are in employment Increase the proportion of the working age population who are economically active Maintain the proportion of residents in receipt of on the job training Maintain the citys low proportion of the working age population with no qualifications
3.EDINBURGHISANEXCELLENTPLACEINWHICHTOLIVE,STUDY,WORK,VISITANDINVEST
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3.Edinburghisanexcellentplaceinwhichtolive,study,work,visitandinvest
Edinburgh is a wonderful city with an outstanding environment and exceptional quality of life. We want it to remain one of Europes top cities in which to live, study, work, visit and invest. Many of the services that will make this happen are delivered through neighbourhood teams in response to the needs of their local residents. Other services which make Edinburgh vibrant such as culture, sport and major events - are delivered for the city as a whole, often with national and international partners. We have identified the following key priorities: housing keeping the city clean, green, safe and well maintained transport links culture, sport and major events keeping people well informed and engaged Housing For Edinburgh to continue to thrive the city needs a healthy housing market that responds to the changing environment and needs of its residents. This is particularly challenging in this difficult economic time where investment is limited. We are tackling major challenges in meeting demand for affordable housing by maximising the use of available land, making best use of government funding and considering the options to bring any empty homes back into use. We aim to continue to work with partners to achieve our vision that people live in good quality homes that are affordable and meet their needs in a well-managed neighbourhood. It will also mean developing ways to ensure tenants and landlords fulfil their responsibilities, and strengthening Council housing allocation policy to recognise good tenants. The City Housing Strategy 2012-17 sets out how we aim to achieve this by delivering three outcomes that people can: Live in a home they can afford. Live in a warm, safe home in a well-managed neighbourhood. Move home if they need to. Keeping the city clean, green, safe and well maintained The life of our city plays out in its public realm. Its streets, squares, gardens and open spaces are the glue that binds the physical city together. And few cities are as defined by their public realm as Edinburgh, with its breathtaking views, central World Heritage Site and outstanding conservation areas. As the custodians of this priceless heritage, we aim to continue to work with partners to protect and enhance the citys assets for future generations. We aim to provide direction for future development, championing the city and ensuring that developments are well-planned and sustainable. The cleanliness of streets and public spaces is a matter which deeply affects civic pride and community spirit. The overall trend of cleanliness is improving and we aim to continue to improve street cleaning and grounds maintenance services to ensure we respond effectively to local priorities. Edinburghs parks and greenspaces are now among the best in the UK, but our ultimate ambition is a parks system that is internationally renowned. We aim to continue to use the Green Flag, Parks Quality and Landscape Quality standards to help us achieve these goals. We aim to also work with our partners to promote access to the citys open spaces and promote health improvements as a key component of urban planning. Edinburgh is a safe place to live and getting safer. Our approach to working with Lothian and Borders Police has been particularly effective in reducing crime in recent years. However, perceptions of personal safety are strongly influenced by individuals fear of crime and we aim to continue to work with the Police, local people and organisations to identify and tackle factors that influence perceptions, such as alcohol and drug-related anti-social behaviour. The citys growth and economic success mean that an increasing quantity of waste is produced through everyday living. We aim to continue to develop a range of waste services that reduce the citys dependency on landfill and to meet increasingly stretching environmental targets. We aim to work with partners to minimise the amount of waste generated and will further develop initiatives to reuse and recycle. We aim to continue our journey towards Zero Waste by working with Midlothian Council to deliver a modern waste treatment facility that will recover value from residual waste by separating out recyclable materials and producing energy from the remainder. We aim to also encourage the development of local sustainable energy companies.
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Transport links An effective public transport system is essential for any modern city, moving large numbers of people around quickly, safely and efficiently. Accessible transport is crucial for promoting social inclusion and helping people to maintain independent living. Active travel, such as walking and cycling, also contribute to Edinburghs wellbeing, supporting the local economy, improving health and contributing to a better environment. We aim to deliver the Edinburgh tram network to provide essential connectivity. The new Local Transport Strategy 2013 2018 will deliver an attractive and accessible public transport network and encourage walking and cycling. Good quality, well-maintained roads, pavements, cycleways and street lighting are fundamental to these goals and we aim to continue to manage a major investment programme to deliver the improvements to sustain a world class public transport system. We aim to set up a city-wide Transport Forum of experts and citizen representatives to consider our modern transport needs. We aim to also consult on extending the current 20mph traffic zones and investigate the possible introduction of low emission zones. Culture, sport and major events Culture and physical activity play a 15
vital role in the love of our city. This strength plays a central part in Scotlands international profile and our vision is to optimise Edinburghs cultural and sporting future. We aim to ensure that Edinburgh continues to be a leading city one that attracts and retains talent, where cultural and sporting activity is supported and celebrated; and a city where these play a central part in the lives of our people. We aim to optimise: Edinburghs and Scotlands cultural significance Edinburghs consistently high position in quality of place and quality of life rankings Edinburghs attractiveness to residents, visitors and investors learning for people of all ages, with a particular focus on children and young people health and well-being of residents through active participation and enjoyment of the cultural and sporting offer quality cultural and sporting experiences. With our partners, we have set the goal of making Edinburgh the most physically active city in Europe by 2020. Awareness-raising, and other initiatives including attainment of Healthy Working Lives accreditation are key aspects of this work. We aim to promote and enable participation for all in sport and
physical activity to improve health and wellbeing, reduce inequalities in health and help people live longer and healthier lives. Similarly, we aim to take maximum advantage for Edinburgh of major events in Scotlands calendar over the next five years, such as the Commonwealth Games and the Ryder Cup in 2014, and work with partners to attract other major events to the city. We aim to continue to develop Edinburghs unique cultural assets, from nationally recognised collections to our world famous major festivals, to protect and enhance the citys positive reputation. Keeping people well informed and engaged Local people expect to be wellinformed and to have a say in identifying priorities and initiatives that will make their areas better places to live, to work and to visit. Local Community Planning is delivered through Neighbourhood Partnerships. We aim to further develop the neighbourhood approach to operate and communicate more effectively, and to ensure that local engagement, involvement and outcomes are a central focus of our practices and those of our partners. Our approach will take account of local priorities as expressed in the Local Community Plans.
Our Next Generation Library Strategy brings together plans for future library services and refocusing them as community spaces. We aim to
Achieve a street cleanliness score of 74 by 2014 Achieve 23 Green Flag Awards for our parks in 2014 Increase household waste recycled Reduce the cost of domestic refuse collection Reduce carbon emissions by more than 40% by 2020 Increase the percentage of adults that feel safe in their neighbourhood after dark to 85% by 2015 Deliver affordable new homes Bring Council homes up to Scottish Housing Quality Standard by 2015 Achieve a year-on-year increase in the % of people travelling to work and education, on foot, by bus and rail and by cycle Spend 5% of the transport budget on provision for cyclists Reduce the % of roads that should be considered for maintenance Increase cultural participation Increase participation in sport and physical activity
4.HEALTHANDWELLBEINGISIMPROVEDINEDINBURGHANDTHEREISAHIGHQUALITYOFCAREAND PROTECTIONFORTHOSEWHONEEDIT 16
4.HealthandwellbeingisimprovedinEdinburghandthereisahighqualityofcareand protectionforthosewhoneedit
We are working together for a caring, healthier, safer Edinburgh, where everyone is able to live as independently and safely as possible. We have identified the following key priorities: improving health and tackling health inequalities developing preventative and personalised support supporting people to live at home supporting carers public protection developing community capacity Improving health and tackling health inequalities Whilst Edinburgh overall is an affluent city with associated high life-expectancy, there are significant variations in health between areas of the city. Our Strategic Framework on tackling health inequality aims to improve outcomes for the communities and individuals suffering the worst inequality, and also reduce the inequality gap across the city. As well as creating and developing healthy and sustainable places and 17 communities, and strengthening the role and impact of ill-health prevention, the framework also prioritises early intervention, addressing all childrens needs, fair employment and safe, healthy places. Actions are in place to address issues such as drugs, alcohol and mental health which also contribute to health inequality. We aim to work to reduce the inequality gap across the city. To do this we aim to work to strengthen individuals and groups to help them participate in health improving activities such as healthy eating, exercise and accessing green and open spaces. Developing preventative and personalised support We aim to support people to improve their health and wellbeing, avoiding or delaying the need for long-term care and support. Those who do need assistance with daily living activities will be supported to have as much choice as they wish over how this support is provided, to allow them to live their lives in ways that suit them. We aim to achieve this by modernising the way care and support services are delivered, tailoring them to meet the needs of individuals and their carers, rather than expecting the individual to fit into existing services. We know that many of our services are focused on providing support to people once problems arise, but we also recognise the importance of providing lower-level support to help people delay or avoid the need to access more intensive support from us or the NHS. Some people may only require a short period of intensive support to help them get back on their feet after an illness or period in hospital. We aim to help them to regain their confidence and independence through a period of rehabilitation or reablement where they can regain old skills and/or learn new ones. Where people do need more intensive support we aim to work with them to identify the way in which they want that support to be provided to allow them to achieve the goals that are important to them. They may opt to receive a direct payment and take responsibility for managing their care themselves or ask us to arrange services for them that take account of their specific needs. Supporting people to live at home We aim to enable people to continue to live at home and as part of their community with as much independence as possible, whether they are an older person, have disabilities or are recovering from mental health problems or substance misuse. We need to address the demographic change around the health and care needs of older people. We aim to use the Scottish Governments Change Fund to implement plans for making best use of the combined health and social care resources for older people. We aim to increase self help and the promotion of independence in the community; reduce social isolation; support people to live at home and where this is not possible, provide high quality care in a care home or hospital setting; make effective use of hospital beds by reducing emergency hospital bed days for people over 75 and delayed discharges. We also need to address the challenge of the increasing numbers of people with complex disabilities and long term conditions
who are being supported in the community. We aim to: support people who have long term conditions, or who have had a recent stroke, to regain or maintain physical skills, and where possible, help them return to work work with people with learning disabilities and autistic spectrum disorder to improve their independence; manage their lifestyles through activity and healthy eating; prepare for employment and to develop a network of friends and contacts. Supporting carers One of the citys most important assets is care provided by unpaid carers, usually family or friends. We aim to support unpaid carers, who provide care for a partner, family member or friend, to enable them to continue to do so and to stay healthy. We aim to establish a Care Champion to represent carers. We aim to review the impact of 'Towards 2012', the joint carers action plan for Edinburgh. We aim to continue to develop new ways to support carers, including: providing carers with a direct payment, to meet their own needs, rather than those of the person they care for
supporting the development of an online volunteering service, where people and their carers can see the times that volunteers have available emergency schemes to agree a plan in the event of an emergency which prevents the carer from continuing to support the person. Public protection Public protection aims to keep individuals, families and communities safe. This involves assessing and managing the risk posed to children and adults who are unable to protect themselves. This is a priority for us and our partners in police and health. We aim to work together to ensure that children and adults who are unable to protect themselves get the help and support they need to stay safe. This includes sharing information, assessing needs and risks, and planning and delivering support in a co-coordinated way. All of our intervention will be consistent with legislation and national standards. Intervention in an individual or familys affairs should evidence a benefit in terms of protecting the person. We aim to make sure that people at risk get effective help when they need it, that people are listened to and respected, and that our staff are
competent and confident in their role. Public protection also requires the effective management and monitoring of those who present risks to themselves or others. A range of systems are in place to do this. These arrangements make sure that we identify those offenders who pose a risk to the public, that we share information about them, and assess and manage the risk they pose. Developing community capacity We want to support people not only to remain in their own homes but also to retain their quality of life by contributing to and being supported by their local community. To achieve this we aim to work with local communities to identify opportunities for us to work with them on initiatives to support and engage their more vulnerable members. We hope that in addition to improving the lives of vulnerable members of the community, such initiatives may also provide opportunities for the wider community in terms of volunteering, training, employment or investment.
We aim to
Increase life expectancy at birth Reduce the gap in life expectancy at birth between the most deprived areas and the remainder of the city Reduce the gap in the premature mortality rate in the 15% most deprived areas and the remainder of the city Reduce emergency inpatient bed day rates for people aged 75+ 4629 (per 1000 population) by 2014/15 Reduce the number of people waiting in hospital after they are ready to move on to 48 by 2014/15 Increase the proportion of older people with high levels of need who are cared for at home to 40% by 2018 Increase the total number of respite care weeks for adults 65+ Increase the number of people supported through local area coordination Increase the number of people receiving a direct payment
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5.THECOUNCILISAN EFFICIENTANDEFFECTIVEORGANISATION
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5.TheCouncilisanefficientandeffectiveorganisation
We are committed to providing excellent public services, ensuring services are high-quality, continually improving, efficient and effective, and responsive to local people's needs. We have identified the following key priorities: working in partnership continuing to improve operational excellence and financial management developing communications and customer care enhancing leadership and governance investing in and developing our staff making the best use of property, assets and procurement Working in partnership It is clear that in an era of reduced public spending, efficient and effective partnership working is required to deliver quality outcomes for Edinburghs residents. Community Planning Partnerships have a key role in this. We aim to continue to support and develop effective and integrated city-level and local community planning with partners. We aim to improve the coordination and impact of partnerships linked to the Single Outcome Agreement (SOA) and Local Community Plans across the 12 Neighbourhood Partnerships. This includes continuing to strengthen our joint working with a range of voluntary and community interests. Partners are committed to reducing all forms of deprivation and inequality in the city and to tackling key economic, health, educational and social priorities. We aim to track our progress and work to ensure that agreed local outcomes are met. Further information can be found in the SOA and on the Edinburgh Partnership webpages. We aim to deliver community planning partnership initiatives (including Total Craigroyston) to achieve better outcomes in disadvantaged areas of the city. These will be informed by existing good practice to make radical service delivery changes where required. We aim to also explore different ways of working in partnership with others to deliver this plan and provide more cost effective services that deliver better outcomes, for example, through joint ventures, strategic partnerships, local authority trading companies, integration, and personalisation. We aim to establish a co-operative development unit to promote and support a participatory, accessible and transparent approach, consulting widely on the future design of our services. Continuing to improve operational excellence and financial management Many of the Councils services already perform well, but for Edinburgh to be recognised as a top performing Council we need to continually improve results and build upon the improvements made in recent years. We aim to enhance our improvement planning and change management arrangements. We aim to continue to manage finances effectively ensuring that public funds are protected and that we demonstrate best value in everything we do. We aim to improve the Councils financial stability through continual review of the long term financial strategy and a strong approach to budget and balance sheet monitoring. We aim to direct Council funds towards delivering the priority outcomes of the Council and its partners. We aim to maximise the Councils income. This will be achieved through a robust approach to debt recovery and by using innovative funding mechanisms to attract investment for Council services by working in partnership with public, private and voluntary sectors. We aim to embed risk management at all levels within the organisation and focusing our efforts on high and medium risks. Developing communications and customer care Excellent communication and customer service lie at the heart of all Council business. We aim to improve peoples perceptions of the Council and build a reputation for strong leadership, good services and value for money. We aim to provide accessible information, encourage innovation in ways we communicate and promote community engagement. We aim to develop both an internal and external engagement and consultation strategy to connect with our staff, customers, partners and residents with the aim of:
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proving good services and good value informing and engaging building trust and confidence focusing on how we are changing lives for the better We aim to continue to support all service areas to achieve Customer Service Excellence (CSE) accreditation. We aim to roll-out mystery shopping and customer care research across all front-line services. We aim to improve the means by which people do business with us whether in person, on the phone, online or by post. We aim to develop a customer access strategy focussing on providing consistent high quality customer service. Key initiatives include reception rationalisation, development of our contact centre, and increased self service on the web. Enhancing leadership and governance The corporate leadership team is well established and they have agreed a strategic direction for the Council over the next five years. The delivery of the strategic outcomes set out in this plan are supported by clear priorities and resources will be aligned during the plan period to support these. 21
We aim to review and improve many of the Council's governance arrangements and ensure that Councillors are well supported. The Council's ability to improve will be enhanced by the development of our corporate support functions including business intelligence, organisational development, change management, communications and risk management. Investing in and developing our staff People are at the heart of our organisation and our most valuable resource. Our vision is to have a motivated, engaged and high performing workforce, capable of delivering quality services and effective change within budget and policy. The Council has recently been accredited with Investors in People Gold and is the only Scottish local authority to achieve this to date. We aim to develop current and future leaders throughout the Council to ensure they are confident, effective and inspirational. We aim to provide Councillors with a programme of continuous professional development. We aim to develop and implement an employee engagement strategy to raise motivation and commitment and so that staff understand the
Council's priorities and how they fit into delivering those priorities, as well as believing they have a say in how services are developed. We aim to develop a credible internal news and information service to keep our staff accurately informed about Council news. We aim to continue to embed our new remuneration and reward systems which recognise and promote high performance and promote the benefits of working for the Council in a coherent package to ensure the Council is seen as an attractive employer at a time of budget and wage constraints. We aim to establish a policy of no compulsory redundancies and continue to work in partnership with Council staff and their representatives. We aim to ensure that all managers have access to Quality externally accredited management development. We aim to implement a robust succession planning process for our most talented people. We aim to develop managers in change management skills so they can support their people. Making the best use of property, assets and procurement We aim to exploit opportunities for transforming services through IT,
change management and business process improvement. The potential for further improvement in the Council's procurement activities has also been recognised and improvements are planned during 2012-13. We aim to
Ensure that the Council's income & expenditure is in line with its budget Continue to make progress towards annual savings targets Increase Council Tax collected maximise the % of business (nondomestic) rates income billed that was paid Increase the % of SPIs in the upper quartile Increase % satisfied with contact centre Improve the Councils reputation for strong leadership, good services and value for money Increase the % of staff that have had a PRD in the last year Retain Investors in People Gold accreditation Reduce % days lost due to sickness absence Increase the proportion of projects delivered on time and on budget Increase the proportion of Council services Customer Service Excellence accredited Achieve EFQM Recognised for Excellence Silver by June 2012 Increase the % of Council buildings which are in satisfactory or good condition
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OURPLANNING FRAMEWORK
Planning
We are improving our planning arrangements to focus on the delivery of outcomes and key priorities. We have recently adopted Priority Based Planning as an approach to strategic business planning. This approach prioritises services and will help refine the future vision and direction for the Council and protect and invest in priority services. We have a good link between our hierarchy of plans and strategies. This ensures that there is a clear cascading of information and objectives from national and local priorities, through to thematic plans with partners, operational plans and individual performance objectives. The diagram opposite provides an overview of the Councils planning framework.
Outcomes and Coalition priorities
Councillors
Council Strategic Plan Coalition Agreement Financial Plan & PBP Business Plan
Edinburgh Partnership Single Outcome Agreement (SOA)
Corporate Management Team Outcome and thematic plans Service Management Teams Self assessment and service improvement plans Divisional/ Operational Managers/ Teams
Local Community Plans
Community Planning improvement plans
Public Performance Reporting Service users Edinburgh residents Investors and businesses Neighbourhood Partnerships Community planning partners Scottish Government Auditors and external assessors
City-wide, neighbourhood and operational performance Employee Performance Review and Development (PRD)
Performance
The Council has developed a rigorous framework for measuring performance and ensures transparent performance management of
outcomes. Emphasis has been placed on indicators that properly reflect progress towards outcomes. This capacity to monitor performance is reflected in the reporting to the Corporate Management Team and Councillors and in the publication of the Councils Annual Performance Reports. Visit the Councils information, performance and statistics web pages for more information.
Quality
In recent years, Council services have been systematically improved through the use of quality frameworks such as the Public Service Improvement Framework and through regulatory inspections, audits and external assessments. Our commitment to improvement is validated through external scrutiny and independent validation of
achievement such as Customer Service Excellence, Investors in People, external awards, Best Value and EFQM: Recognised for Excellence. Our planning, performance and improvement work brings together a range of programmes to promote a culture of excellence.
23
Key Edinburghs children and young people enjoy their childhood and fulfil their potential Edinburghs economy delivers increased investment, jobs and opportunities for all Edinburgh is an excellent place to live, study, work, visit and invest Health and wellbeing is improved in Edinburgh and there is a high quality of care and protection for those who need it The Council is an efficient and effective organisation
Appendix 1 Financial overview Revenue budget

The Councils main revenue budget for 2012-13 is 999.3m. Due to the local government elections in May 2012, a budget for one year only was set by the Council in February 2012. Council Tax makes up 23% of this with 46% coming from Government grants and 31% from Non-Domestic Rates (also known as business rates). The chart below shows how the revenue budget aligns to the Councils five key outcomes.
9%
Capital budget
The 2012-13 revenue budget is providing additional funding for a range of priorities, including: 1.63m in early years and early intervention services an additional 4.1m for redecoration and floor coverings in schools 1m under the Edinburgh Guarantee to provide positive destinations for school leavers 2.1m for older people to meet the increasing need for services due to the ageing population 2.8m to meet increasing need for services for adults with physical and learning disabilities an additional 3m to support permanent road repairs, reducing the number of potholes on Edinburghs roads The Council also has a capital budget of 221m. The chart below shows how the capital budget corresponds to each of the five key outcomes.
5% 2% 22%
14%
21% 44%
57%
A breakdown of the revenue budget according to expenditure type is shown below:

Transfer Payments, 12.7%
25% 1%
The capital budget is providing investment across the city, including: continued progress in the re-provisioning of primary and secondary schools, with (for example) 19m towards the completion of Portobello High School 5.5m to complete a new care home at Drumbrae 15m for carriageway and footway investment significant investment in building and maintaining Council housing 31.6m for the expansion of the Edinburgh International Conference Centre (EICC)
Employee Costs, 37.0%
This is an indicative representation only as there are areas of spend that will contribute to more than one of the five outcomes.
Third Party Payments, 33.0% Premises Costs, 5.7%
24
Supplies and Services, 9.4%
Transport Costs, 2.2%
You can get this document on tape, in Braille, large print and various computer formats if you ask us. Please contact Interpretation and Translation Service (ITS) on 0131 242 8181 and quote reference number xxxxxx. ITS can also give information on community language translations. You can get more copies of this document by calling 0131 469 6149.
Item no
Report no
8.4(b)(iii)
CEC/50/12-13/CG
A Framework to Advance a Cooperative Capital 2012/17

25 October 2012
1 1.1
Purpose of report This report seeks approval for a Framework to Advance a Cooperative Capital 2012/17 and provides an update on work to establish a Cooperative Development Unit. Main report One of the Capital Coalition's key pledges is to progress the development of a 'cooperative approach in the city and establish a Cooperative Development Unit (CDU). Specifically, there is an initial commitment to develop more cooperative societies in the city to deliver energy, housing, social care and child care services. These commitments comprise a key component of the Capital Coalitions vision to build a cooperative and more prosperous Edinburgh in which every resident and community benefits. They are also consistent with the Coalitions ambition to instil the values of cooperation, fairness, accountability and responsibility at the heart of everything the Council does and aspires to do. Given the potential scale of this work, it is important to note the cooperative approach will necessarily bring together a wide variety of current and planned council activities that have cooperation as a central feature. A key principle will be the need for this work to build on existing partnership and community planning arrangements in the city. Consequently, a draft Framework to Advance a Cooperative Capital 2012/17 has been developed to capture these different commitments under priority themes, promote a one council coordinated approach, enhance existing partnership activity and ensure robust governance and progress reporting arrangements. The contents of the draft framework have been shaped by the major conference held on 7 September 2012 organised by the Council Leader. This involved more than 100 representatives with a range of interests who debated a variety of approaches, risks, opportunities and benefits. 1
2 2.1
2.2
2.3
2.4
2.5
2.6
Following this seminar, the Councils Corporate Management Team agreed that the Policy and Public Affairs (PPA) division, within Corporate Governance, would set up the CDU, lead on developing and implementing a cross-council programme of work and ensure community planning partners were engaged in these developments. The CDU is being officially launched today, and comprises a number of staff drawn from within PPA, including recent graduate recruits. Engagement with a number of service area staff and community planning partners is also underway, with a view to identifying staff that can to assist in the delivery of key objectives described in the framework. The main functions of the CDU will be to (i) facilitate and enable the development and delivery of the framework, (ii) maintain corporate and citywide oversight and coordination of cooperative activity, (iii) provide quality advice and information on establishing cooperative societies and cooperative service delivery models, (iv) act as a central hub for information sharing, development of best practice, promotion and communication and (v) ensure progress and performance reporting on the framework. A summary of the draft framework is attached at Appendix 1 for approval. It identifies five key themes, which are described below, alongside a fuller description of key deliverables. These themes and priorities will form the basis of initial work over the next six to 12 months. Other themes, and key deliverables, will be included as implementation of the framework progresses. 1. Cooperative Societies Audit and support the expansion of existing cooperative societies delivering key services to citizens and communities. Enhance capacity building provision in the city to enable the development of new societies, specifically to deliver energy, housing, social care and child care services. Explore opportunities to establish service user cooperatives to maximise purchasing power derived from social care direct payments.
2.7
2.8
2.9
2. Cooperative Community Engagement Develop and implement new political management arrangements in the Council to improve stakeholder community engagement in policy and service development and review. This will include the appointment of new elected member champions to further community causes. For example, a Carers Champion and an Equality, COMPACT and Third Sector Champion. Improve cooperative engagement with public sector partners, citizens, business, third sector and wider communities of interest and place, building on existing citywide and neighbourhood community planning arrangements.
Develop a new ICT strategy that places more focus on cooperative community, citizen and service user engagement and consultation.
3. Cooperative Procurement Maximise social value and community benefit clauses across a wider range of procurement contracts and commissioning exercises. Encourage the development of cooperative and consortium-based bids by third sector providers to public contract opportunities. Seize opportunities to utilise public social partnerships as vehicles for service and contract design.
4. Cooperative Education Integrate a cooperative approach across primary and secondary school clusters to enable improved cooperative learning. Improve cooperation with parents to enhance curricular and extra curricular provision. Improve cooperation with communities to enhance community access to school resources and buildings. Promote the development of a cooperative approach to child care, afterschool and community learning and development services.
5. Cooperative Service Delivery Maximise opportunities for cooperative service delivery through the delivery of personalisation of adult and childrens services. Instigate a wider range of community budgeting and co-production service development and delivery initiatives through local neighbourhood management arrangements and Neighbourhood Partnerships. Build on the development of approaches to Total Place and improve local multi agency service management arrangements across the city.
2.10
Given the importance of this work within the Capital Coalitions Contract with the Capital, a number of key deliverables are already being progressed. A summary of these is attached at Appendix 2. In order to ensure effective accountability the following governance and progress reporting arrangements are proposed: A report will be submitted to the new Communities and Neighbourhoods Executive Committee in November 2012, which will describe detailed progress against key commitments. Thereafter, there will be a six monthly progress reporting cycle to this committee.
2.11
An assessment of the Edinburgh COMPACT Board indicates that it provides the best practical interface between strategic community planning arrangements and development and delivery of the framework. Consequently, it is proposed that the Edinburgh COMPACT Board receive six monthly progress reports. A annual progress report to the City of Edinburgh Council describing key outputs and outcomes delivered as a result of framework implementation.
3 3.1
Financial implications The CDU staff costs will be met from existing Corporate Governance budgets, as will any initial programme expenditure. Expert cooperative development resources are being identified from existing providers in the city and across Scotland. In the medium to longer term, a wider network of council and partner agency staff and resources will be identified to assist with the delivery of the framework. Equalities and Environmental Impact The development and implementation of the framework will assist the Council to deliver key equality and rights outcomes, and meet the public sector equality duties to advance equality of opportunity and foster good relations. In addition, delivery of the framework will advance sustainability objectives related to improved city and community governance, social equity and justice, community capacity building and sustainable business development. Recommendations It is recommended that Council: a) approve the Framework to Advance a Cooperative Capital 2012/17 at Appendix 1; b) note the establishment of the Cooperative Development Unit within the Policy and Public Affairs Division and the main areas of progress to date identified within Appendix 2; and c) approve the governance and progress reporting arrangements and timescales identified at paragraph 2.11.
4 4.1
4.2
5 5.1
Appendices
1 A Draft Framework to Advance a Cooperative Capital 12/17 2 A Summary of Progress to Advance a Cooperative Capital
Contact/tel/Email
Tom Little; tom.little@edinburgh.gov.uk; 469 3826 Nick Croft; nick.croft@edinburgh.gov.uk; 469 3726 Graeme McKechnie; Graeme.mckechnie@edinburgh.gov.uk; 469 3861 All All None
Appendix 1 - A Draft Framework to Advance a Cooperative Capital 12/17 Summary

DRIVERS VISION Cooperative Development Unit
Capital Coalition Contract with the Capital - Policy and Public Affairs - Core Team in PPA - Virtual Team from across Council - Secondments from across Council and external partners
DELIVERABLES Cooperative Societies

- Securing cooperative advice + support - Developing Energy / Housing / Childcare / Adult Social Care coops - Service User Cooperatives - 3rd Sector capacity building
REPORTING
Initial Report to Full Council seek approval for framework
Cooperative Community Engagement

- Political Management Review Phase 1 + 2 - Community Engagement Standards - Members visits - Neighbourhood Partnerships - ICT Customer Engagement Strategy - Appoint political champions to further community causes
Edinburgh Partnership
Further consultation and engagement on themes, deliverables and KPIs
Strategic Plan and Business Plan
To build a cooperative and more prosperous Edinburgh in which every resident and community benefits
Governance
- Leader and Depute Leaders Office - Communities and Neighbourhoods Committee - Edinburgh COMPACT / Edinburgh Partnership
Cooperative Procurement
- Procurement Transformation - Commissioning Plans / GT3P Opportunities - Public Social Partnerships - Community Benefit Clauses / Social Value
Six monthly reports to Communities and Neighbourhoods Committee
Stakeholder Involvement
Christie Commission Community Empowerment + Renewal Bill Procurement Reform Bill - Audit report of current cooperative activity - Consultation and engagement on framework - National Cooperative Council Network - Website and Communications Plan
Cooperative Education
Cooperative school clusters Cooperative curriculum learning Community and parental engagement Cooperative childcare, after-school + community learning and development
Six monthly reports to COMPACT Partnership
Cooperative Service Delivery

- Community Budgeting - Total Place - Personalisation and co-production
Annual Progress Report to Full Council
Appendix 2 Summary of Progress to Advance a Cooperative Capital Framework Priority Theme Cooperative Societies Progress
- Officers in the CDU are in the process of auditing existing cooperative societies in Edinburgh. These organisations will be brought together in December 2012 to discuss and address capacity building issues. - A Short Life Working Group will be established under Edinburgh COMPACT arrangements to gather local and national experts and build capacity within the third sector to deliver more energy, housing, social care and child care cooperatives. - Service for Communities is progressing work on the development of housing cooperatives. - The council has agreed new political management arrangements that will improve the quality and breadth of community engagement and cooperative policy development. This includes the establishment of a new Petitions Committee. - The Administration is in discussion about the appointment of elected members to the role of Equality, COMPACT and Third Sector Champion and Carers Champion. - In addition, a new more transparent and cooperative budget development process will be set up, commencing in December 2012, involving a wide array of external stakeholders. - Initial discussions with the police Divisional Commander in Edinburgh indicate a commitment to involve and engage a wide variety of community interests in the development of the new Edinburgh Local Policing Plan. - The Councils new ICT Strategy will place more focus on cooperative engagement with citizens, service users and customers. - Accommodation of Co-operative Capital themes into the development of the Compact Partnership's next Social Enterprise Strategy for Edinburgh. - Work is underway to integrate equality, rights and community benefit clauses into procurement arrangements. - The Edinburgh Partnership will host an in partnership event in November 2012 promoting social value in public policy and procurement. - Checkpoint Groups continue to enable a more cooperative approach to the development of Commissioning Plans in Health and Social Care and Children and Families. - A paper was submitted to the Education, Children and Families Committee describing progress with regard to cooperative education. - A new working group in Children and Families has been established to progress this theme. - A specific focus has been placed on the development of cooperative child care, after school and community learning and development services. - Total Neighbourhood and Total Craigroyston continue to progress towards meaningful outcomes, with a focus on establishing improved local multi agency service management arrangements. - The Councils personalisation work continues to progress, in light of the Self Directed Support legislation, that will place service users increasingly at the heart of assessments and decisions on service provision.
Cooperative Community Engagement
Cooperative Procurement
Cooperative Education
Cooperative Service Delivery
Item no
Report no
8.4(c)
CEC/51/12-13/CG
Edinburgh transformation programme

25 October 2012
1 1.1
Purpose of report The purpose of this report is to set out the main elements of the Edinburgh transformation programme, a proposed approach to delivery and governance arrangements. Main report
Background
2.1
The Council requires to achieve significant savings with reduced resources over the next 5 years, while demand for services and demographic pressures continue to increase. The challenges for service re-design and delivery, alongside significant financial constraints, have necessitated an enhanced and innovative approach to the delivery of critical transformation work across all Council service areas. A transformation programme is being developed to bring together all current council change initiatives. This has built a clear picture of the current change landscape and supported further scoping work to identify the priority areas across the Council for inclusion in a cross-council transformation programme. The programme is being developed via the Corporate Programme Office to ensure effective governance and oversight, appropriate engagement and consultation at all stages with elected members and key stakeholders and optimise use of resources.
Transformation Programme
2.2
2.3
It is recognised that the Council requires a large amount of change and this activity requires to be closely aligned to the Councils strategic direction, with a transparent approach to ownership and accountability. A defined road map is being developed, based on a step change approach over a five-year period, to build public confidence and to ensure there is capability in-house to enable and drive successful delivery. This will be combined with programme governance led by the Corporate Programme Office, across all aligned change initiatives, to ensure visible benefits tracking and successful delivery of outcomes.
2.4
A themed approach has been adopted to ensure a strategic, cross cutting focus on transformational change rather than individual service led initiatives. Each area will be consulted on and explored as part of the Councils new budget process. The following six cross-cutting themes have been identified and scoping work is underway to develop options:
Theme 1: Efficient and effective organisation
2.5
2.6
A portfolio of transformational change has been identified to ensure the Council has the infrastructure in place to be an efficient and effective organisation to meet the needs of customers and communities. This has been embedded within the Councils strategic outcomes to ensure that there is a focus on delivery of efficient and effective services with appropriate engagement with the public, key stakeholders and partners, developing an excellent reputation for customer care and communication. Scoping work has been completed and identified a range of areas for development. These activities may include the integration of services, implementation of innovative ICT solutions, improvements through lean reviews and consultation on service delivery models.
Theme 2: Customer experience and access
2.7
Customer service in its widest sense is the first contact the public, communities and key stakeholders have with the Council and plays a vital role in how we deliver front line services to those who need support. Scoping work is underway to develop a flexible improvement framework, based on customer feedback that will provide access to both information and services using the most accessible, efficient and effective means available. For example, selfservice via both the web and automated phone, and for those who are unable to access services in this way, a targeted face to face or telephone service option.
Theme 3: Early Intervention
2.8
Early intervention is effective in improving the outcomes for communities and reducing future demand for services. The aim is to support current and future generations of children and young people by helping them and their families before problems arise. Prevention and early intervention are also key elements in delaying the need for more intensive services for older people. Specific groups who are at most risk of becoming highly dependent on services such as people at risk of becoming homeless, children at risk of becoming looked after by the Council, families with drug and alcohol problems and frail older people.
Theme 4: Personalisation
2.9
Personalisation is about changing the way in which support is provided to vulnerable adults and children with social care needs. This area has synergies with a number of the cross-cutting themes. The objective is to avoid or delay the need for people to access long-term care and support services by investing in preventative approaches which support 2
2.10
people to remain as healthy and independent as possible for as long as possible. Where people do require care and support services they will be supported to exercise as much choice and control as they wish, and are appropriate, over the way their care needs are met. This will include the provision of good quality information and advice about the options available to and assistance to direct support if that is what they prefer. There will also be an emphasis on working with communities to support their more vulnerable members engage in the life of the community and access the support they need through local services and activities where possible
Theme 5: Community Capacity Building
2.11
Building the capacity of communities to participate in actions based on community interests, both as individuals and through groups, organisations and networks, is key to the future delivery of services in Edinburgh. In the long term, building this capacity will enable the Council to be able to sustain the provision of service to those most in need. There are a wide range of current examples across the Council of partnership approaches and more specific, dedicated initiatives. This experience is being used to develop a cohesive vision and approach to community capacity building that will also re-align existing resources to provide support and strengthen the skills and abilities of communities to take effective action.
Theme 6: Partnership Models
2.12
2.13
There are a range of options for service re-design which can be used to deliver more cost effective services with better outcomes. In line with the Capital Coalition pledges and led by the cooperative development unit, scoping work will be undertaken with the Councils partners and communities to explore, and implement where appropriate, models that have the potential to improve the quality of services and provide greater value for money. Detailed scoping work will be undertaken over the next six months to refine the options being considered across each themed area. Detailed business cases and delivery plans will be prepared for members approval.
Operational Excellence Programme
2.14
2.15
To progress and deliver the cross-council themes, in particular theme 1 outlined in paragraph 2.5 above, there is a requirement for the Council to make significant progress to become a more efficient and effective organisation. This will ensure the foundations and infrastructure to deliver the wider transformation programme are firmly in place including: People and leadership: capability building, innovation and collaboration; Consultation and engagement; working closely with the cooperative development unit; Business improvement; Technology; and 3
2.16
Multi channel customer focused services.
To achieve this, an Operational Excellence Programme is underway to support the Council to maximise value from its various assets, processes and systems to support the transformation of services. The Operational Excellence programme includes the following: a) Procurement: transformation of the procurement service to deliver significant and sustainable savings through the partnership arrangement with Mott McDonald; Property Rationalisation: to develop a smaller, higher quality estate in the right locations and supporting joined up service delivery for the public and communities; ICT Strategy: the development of a new ICT capability plan including the identification of future systems, infrastructure and providers which will deliver value for money and support the challenging transformational change which the Council is seeking to achieve; Corporate Programme Office: building change capability and delivery through the adoption of a programme management approach focused on driving the transformation programme to maximise benefits and return on investment; Governance Review: delivery of a comprehensive framework for all aspects of political, operational and strategic governance; Cooperative Development Unit: development of the Councils cooperative approach with particular emphasis on cooperative societies, community engagement, procurement, education and service delivery. Organisational Development: enhancing employee engagement, addressing skills and capability gaps to develop a workforce which is fit for the future shape of the Council and creates an organisation which is a magnet for talent and great place to work; Process Transformation: further progress in process transformation, building on existing pockets of capability and extending it to priority areas where larger scale benefits can be delivered; and Business Support Services: redesign of business support services which currently operate within each service area. This aims to improve efficiency and effectiveness, initially of administrative and management support services, and thereafter specialist and professional support.
2.17
b)
c)
d)
e) f)
g)
h)
i)
Governance and approach to delivery
2.18
A formal programme management approach will be in place for the Operational Excellence Programme, led by the Corporate Programme Office. The proposed approach includes elected member sponsorship of the programme by the Finance and Budget Committee Convener and Vice Convener, a cross party elected member sounding board and quarterly update reporting to the Finance and Budget Committee. Details are set out in appendices one and two to this report. 4
2.19
A similar core transformation programme structure will apply to all themed areas as business cases and delivery plans are developed and once implementation is agreed and underway. This will ensure all aspects of the transformation programme are aligned to corporate objectives, driven forward at a steady pace and that risks and dependencies are suitably managed. It will also manage the transition to business as usual securing lasting benefits for the Council. Financial implications The transformation plan is expected to deliver significant and sustainable savings for the Council but to manage this and ensure that benefits are delivered professional and dedicated programme and project support are required. Existing resources will be prioritised but as each delivery plan is approved and progresses the Corporate Programme Office will require additional resource to provide programme management support for each of the themed delivery plans. A budget allocation of 250,000 has been set aside in financial years 2013/14 and 2014/15 and all costs in addition to this will be funded by recharging each programme or project directly based on additional resources required. Equalities impact The transformation programme is wide-ranging and intended to improve equality in service provision. Impact assessments will be completed at programme and project level as appropriate. Environmental impact The transformation programme is wide-ranging and intended to improve sustainability. Impact assessments will be completed at programme and project level as appropriate. Recommendations To recommend that members agree the report and in particular: a) agree the cross cutting themes, outlined in paragraphs 2.6 to 2.15 of this report as the basis for the further development of the transformation plan and note that detailed delivery plans will be prepared for approval aligned to the Councils budget process; agree the scope and governance of the operational excellence programme; and agree the transformation programme governance structure set out in appendix one.
3 3.1
3.2
4 4.1
5 5.1
6 6.1
b) c)
Alastair D Maclean Director of Corporate Governance 5
Appendix One: Edinburgh Transformation Programme Governance Appendix Two: Operational Excellence programme structure
Karen Kelly, Head of Corporate Programme Office Tel: 0131 469 3974 Email: Karen.kelly@edinburgh.gov.uk Kirsty-Louise Campbell, Governance Review Programme Manager Tel: 0131 529 3654 Email: kirstylouise.campbell@edinburgh.gov.uk
All
National Outcome 15 - Our public services are high quality, continually improving, efficient and responsive to local peoples needs.
None
AppendixOne GovernanceStructure
Corporate Programme Office GovernanceSupport
Programme&Project GatewayReviews
Assurance/InformationRoute Decision/EscalationRoute
Sponsorship
TheCityofEdinburghCouncil ElectedMember SoundingBoard
FinanceandBudgetCommittee
Portfolio ProgrammeSupport
ICT, Engagementand Communications, FinanceSupport, HRsupport, BusinessIntelligence
SRO
Transformational PortfolioBoard(CMT)
TransformationalChangeManager
Centralisedchange resourcespool
ProgrammeManagers, ProjectManagers, E2EProcess Transformation, ChangeManagers
Programmes
Efficient& Effective Organisation
Customer Experience andAccess
Early Intervention
Personalisation
Community Capacity Building
Partnership Models
Projects (upto48)
Projects (upto8)
Projects (upto8)
Projects (upto8)
Projects (upto8)
Projects (upto8)
Projects (upto8)
Appendix two
Efficient and Effective Council Operational Excellence Programme

ProgrammeLeadership
ElectedMemberSponsor: Finance&BudgetConvener &ViceConvener Sponsor: Alastair Maclean ProgrammeLead: SteveLangmead
Strategic Priorities
A coordinated programme that delivers superior business and customer satisfaction performance that is benchmarked against leading-edge organisations in the sector globally. Strategic Outcome - Efficient and Effective Organisation Reduced Cost to Serve operating ratios Best in class Customer Experience and Satisfaction Exemplary External Stakeholder satisfaction Culture of continuous improvement and challenge for value embedded across the organisation Best practice in Governance and risk management
ProjectManagement: CorporateProgramme Office
ICTCapability
GapAnalysis ReviewExistingprovision Leveragecontracts
CultureandSport
Assess opportunities for improved service delivery. Deliver increase in income.
Process Transformation
GapAnalysis CreateCapabilityPlan IdentifyTop10E2E Transformationopportunities inlinewithCustomerAccess strategy
BusinessSupport (OperatingModel)
Deliverbenefitsfrom BusinessSupport DevelopScopeforwider TargetOperatingModel
ChangeCapability& Delivery
CPO&Programme Governance ChangeCapabilityreview& development
Governance
Political&Operational Strategy&Performance FinancialPlanning Audit,Risk&InternalControls ALEOs
PropertyStrategy &Utilisation
ReviewcurrentFootprint andstrategy Developdeliveryplan SmarterWorking Workstyle
Procurement Transformation
ImplementStrategy Developdeliveryplan Deliverbenefits
Item no
Report no
8.5
CEC/46/12-13/CE
Best Value Audit Submission

25 October 2012
1 1.1 2 2.1
Purpose of report To note the submission to Audit Scotland as part of the Councils upcoming Audit of Best Value and Community Planning. Main report Councils have a statutory duty to provide Best Value as set out in the Local Government in Scotland Act 2003. The first Best Value audit in 2006/07 reported that the Council displayed many elements of a best value council. It also acknowledged that, with sound corporate arrangements in place, the Council should be in a position to secure continuous improvement in the delivery of its services. Following a national review of Best Value, Audit Scotland now work closely with the main inspection agencies as part of the Local Area Network to undertake risk-based and proportional assessments to reduce the burden of inspections on public services. The Local Area Network undertakes an annual Shared Risk Assessment with Councils and produces the findings in May each year in the Assurance and Improvement Plan (AIP). The City of Edinburgh Councils AIP for 2012-15 was considered by the Audit Committee in September and is available publicly. Within the AIP, Audit Scotland indicated that the Council would likely undergo the second audit, Best Value 2, in October; however they have since advised that the audit will likely take place in December and January. In preparation, the Council is providing a submission of key evidence to Audit Scotland (Appendix 1). This submission is not mandatory but is encouraged by Audit Scotland and will help to scope the audit and site visit. The submission demonstrates a high level of self-awareness; provides a balanced view of the Councils strengths and areas for improvement; and provides Audit Scotland with key evidence to facilitate their upcoming scrutiny. The audit in December and January will likely take the form of interviews and focus groups along with the analysis of additional evidence. Once the final scope and timing of the audit is agreed with Audit Scotland (towards the end of 1
2.2
2.3
2.4
2.5
2.6
October) then Elected Members, partners and staff will be fully briefed to support preparations. 3 3.1 4 4.1 5 5.1 6 6.1 Financial implications Financial implications and the duty to provide best value are noted within the submission. Equalities impact Equalities implications are noted within the submission. Environmental impact Environmental implications are noted within the submission. Recommendations The Council is asked to note the Councils submission to Audit Scotland as part of the upcoming Audit of Best Value and Community Planning.
Appendices Contact/tel/Email Wards affected Single Outcome Agreement Background Papers
1 Best Value Submission Sarah MacKenzie, 529 7025, sarah.mackenzie@edinburgh.gov.uk All Aligned to all outcomes Assurance and Improvement Plan for the City of Edinburgh Council 2012-15
THE CITY OF EDINBURGH COUNCIL
BEST VALUE SUBMISSION

October 2012
FOREWORD
Edinburgh is widely recognised as a great place to live, work, invest, study, and spend leisure time. Edinburgh is a successful city and makes a major contribution to the social, cultural and economic success of Scotland and the UK. Renowned for its festivals, for its financial, life sciences, technology and education sectors, and for its cultural heritage, beauty and great quality of life, Edinburgh continues to attract people, business and investors. The Council and its partners are responsible for a very broad range of services that affect the quality of life of Edinburghs citizens and we play a major part in Edinburghs success. We have provided an honest and balanced assessment of our progress which is central to our commitment to performance improvement, customer service and a focus on the delivery of outcomes. We welcome the audit of Best Value and Community Planning. It will give an independent assessment of our progress and support our work in areas where we need to focus, prioritise and accelerate our improvement plans.
Councillor Andrew Burns Council Leader
INTRODUCTION
This submission is made to Audit Scotland as part of the second Best Value audit of the City of Edinburgh Council. The submission includes our evaluation of the Councils performance and highlights key evidence to support this justification. The submission is based on the findings of the Councils own self assessment and improvement planning arrangements and is structured around key areas of the Public Service Improvement Framework (PSIF): 1. Leadership 2. Service Planning 3. People 4. Partnerships & Resources 5. Services 6. Results & Outcomes Hyperlinks provide references to key evidence throughout which can be found on the internal/external website. Evidence not hyperlinked will be provided on disc to Audit Scotland. Appendix 1 describes current key improvement activities that address risks highlighted in the Shared Risk Assessment and in this submission. A full index of evidence is in Appendix 2. A number of more detailed Position Statements will be provided to Audit Scotland once the scope of the audit has been agreed. This submission has been approved by the Councils Corporate Management Team and the Councils political leadership the Capital Coalition. These include: Edinburgh continues to be highly regarded as a place to live with 91% satisfaction. Crime rates reduced by 5% in 2012 compared to 2011. Significant improvement in educational attainment with all national priority secondary school attainment measures showing year on year improvement. More than 80% of those who received help from social work services or had claimed housing or council tax benefit were satisfied with the service received. A strong community planning framework with active Neighbourhood Partnerships which focus on delivering local outcomes. Progress is being made in implementing substantial internal improvement plans in Corporate Property, Facilities Management and Environmental services. These will deliver significant savings and very necessary service improvements in performance. The Scottish Housing Regulator inspection results place Edinburgh as the top performing local authority landlord in Scotland rated A for Housing Management, B for Asset Management and A for its Homelessness service. Our ambitious new economic strategy Investing in Jobs: Edinburghs Call to Action focuses on creating the conditions for sustainable jobs, increasing economic participation and helping people into work or learning. New investors and jobs attracted to the city, include Virgin Money, Avaloq, Primark, Amazon and the UK head office of the Green Investment Bank.
Our improvement journey

The first Best Value audit in 2006/07 reported that the Council displayed many elements of a best value council. It also acknowledged that, with sound corporate arrangements in place, the Council should be in a position to secure continuous improvement in the delivery of its services. We place great importance on being a self aware Council and in demonstrating that self awareness to stakeholders, service users and partners. Many areas for improvement identified by external audit and assessment have already been identified by the Council and form part of our improvement plans. Despite the financial challenges facing Scottish local authorities, the City of Edinburgh Council remains committed to driving forward change and has delivered considerable achievements for the residents of Edinburgh. 2
Edinburgh is working hard to become a top performing Council and is demonstrating progress. In order to achieve excellence we must continue to improve and adapt to the changing needs of the city. We demonstrate that we are self aware and that our capacity to improve is convincing and sustainable. This is a key step following the issues associated with the Edinburgh Tram project and Statutory Property Repairs. Audit Scotlands Assurance and Improvement Plan (AIP) confirms that there is evidence that the Council has arrangements in place which contribute to Best Value.
Specific examples of achievement include the improved progress of the Tram project, further details of which are provided within the Transport section; and also the Councils effective and well-established community planning framework, with further details provided within the Community Planning section. Edinburgh demonstrates many strengths however, like every major city, Edinburgh still faces many challenges. The Council fully acknowledges the significant risks highlighted in Audit Scotlands 2012 AIP, notably the completion of the Tram project, the significant funding gap facing all Councils over the coming years, and the necessary improvements to the Property Conservation service. In addition, a number of areas of uncertainty have been identified by Audit Scotland. As outlined in this submission and in Appendix 1, the Council has arrangements in place to address these areas of concern or uncertainty which demonstrate our fitness for purpose and capacity to improve.
THECITYOFEDINBURGHCOUNCIL
The City of Edinburgh Council is the second largest council in Scotland serving a population of 495,000 and the eighth largest unitary council in the United Kingdom. The Council manages an annual budget of more than 1bn and employs more than 15,000 full time equivalent staff.
Executive Committees and the Audit Committee
Paul Godzik Convener of Education, Children & Families
Richard Lewis Convener of Culture & Sport
Tom Buchanan Convener of Economy
Ricky Henderson Convener of Health, Wellbeing & Housing
Political make-up of the Council

There are 58 councillors in 17 multi-member wards.
Political Party Scottish Labour Party Scottish National Party (SNP) Scottish Conservative and Unionist Party Scottish Green Party Scottish Liberal Democrats Number of Councillors 20 18 11 6 3
The City of Edinburgh Council is run by a coalition between the Edinburgh Labour Party and the Scottish National Party.
Lesley Hinds Convener of Transport & Environment
Alasdair Rankin Convener of Finance & Budget
Maureen Child Convener of Communities and Neighbourhoods
Jeremy Balfour Convener of Governance, Risk and Best Value
Maggie Chapman Convener of Petitions
Council Leader and Lord Provost
Planning and Regulatory Committees

Further information on all Committees, Joint Committees and Joint Boards is available at www.edinburgh.gov.uk
Andrew Burns Council Leader
Steve Cardownie Deputy Leader
Donald Wilson Lord Provost
Deidre Brock Depute Lord Provost
Ian Perry Convener of Planning
Gavin Barrie Convener of Regulatory
THECORPORATEMANAGEMENTTEAM
Sue Bruce
Chief Executive
Dave Anderson Director of City Development
Gillian Tee Director of Children and Families
Peter Gabbitas Director of Health and Social Care
Alastair Maclean Director of Corporate Governance
Responsible for economic development in the city by enabling business investment, co-ordinating development in the major development zones, championing enterprise and innovation in Edinburghs business community, and supporting people into work and education.
Responsible for providing a wide range of front-line local services keeping the city clean, green, and safe. Also helps to keep the city beautiful, well-maintained and moving, its people wellhoused and its communities well-informed and engaged.
Responsible for ensuring that children and young people enjoy their childhood and fulfil their potential. Education and social work services include schools, additional support, sports, global citizenship, arts, music, health and wellbeing, child protection, looked after children, family support and residential services.
Responsible for the health, care, protection, wellbeing and independence of adults. Services include support at home or in residential care for older people, people with mental health problems and people with physical and learning disabilities as well as services to the courts and supervision for some offenders living in the community.
Responsible for business services including finance, legal, people and organisational development, policy and public affairs, corporate and transactional services, ICT, change, risk and emergency planning. It is also responsible for culture and sport services, city-wide community planning and administering the Lothian Pension Fund.
1.LEADERSHIP
The Council and its partners have a well developed understanding of the needs of the local area. The Council has a statement of its vision, values, strategic outcomes and priorities. The Councils governance and scrutiny arrangements have been reviewed to ensure they are increasingly effective. A new political management model has been approved that will strengthen existing arrangements. The Chief Executive and Corporate Management Team provide strong managerial leadership of the Councils services, improvement and change programmes to deliver the clear political vision.
The Councils Corporate Management Team (CMT) and Extended Corporate Management Team (ECMT): provide strong and visible leadership and direction, encouraging people to motivate and inspire their teams; ensure all people understand and adhere to the Councils outcomes and values; work closely with Elected Members to lead the development of workable strategies which will deliver on objectives; lead and develop strong partnerships across Edinburgh and local communities to achieve improved outcomes and better public services; champion financial and performance management, people management and change management within the Council.
1.1 Vision and strategic direction

The Council has a good understanding of the key geographic, demographic, economic, environmental and social changes that occur in the city. It uses research, consultation and analysis to inform its policies and to prioritise resources to meet demands. Elected Members regularly receive information to enable them to make decisions on the strategic direction. The new 2012-15 Edinburgh Partnership Single Outcome Agreement (SOA) 1.1.1 provides clear strategic direction and informed analysis of partnership priorities. The Council has a new framework for the delivery of services and a clear statement of its vision, values, strategic outcomes and priorities for the next 5 years, aligned with the Capital Coalition Agreement 1.1.2. Further information is provided in the Service Planning section.
CMT regularly reviews organisational arrangements to monitor performance and ensure effective delivery of strategic priorities. Improvements have been delivered through developing, maintaining and improving processes, and also through major change programmes.
1.2 Managing change and corporate improvement planning

The Council has changed significantly since 1996. Organisational arrangements have been substantially renewed over the last two years to ensure they support the Councils objectives and are fit for purpose. A new Chief Executive was appointed in January 2011. There have been further senior management changes following the retiral of the Directors of Finance and Corporate Services in 2011. On 30 June 2011 1.2.1, the Council approved a new corporate management structure, including the merger of the departments of Finance and Corporate Services under the Director of Corporate Governance who was subsequently appointed in September 2011. These changes have facilitated significant modernisation of the Councils organisational arrangements. Following a review of performance and the management of risk, the Chief Executive undertook a realignment of services across directorates following approval by Council on 22 December 2011 1.2.2. Changes included Transport and Planning transferring from City Development and STO services from Corporate Governance to Services for Communities. The Policy and Strategy Committee approved the new management structure for the Corporate Governance Directorate on 28 February 2012
1.2.3
, which included the creation of a Policy & Public Affairs Division.
As reported to Council on 23 August 2012, the Director of Corporate Governance is leading a Governance Review 1.2.4 to modernise the Councils strategic, political and operational governance arrangements and make them clear, accountable and efficient. The CMT provides effective leadership and is involving and empowering senior managers to lead change throughout the organisation through a distributed leadership approach. The Chief Executive promotes clarity around roles, responsibilities and accountability and is developing distributed leadership within and beyond the CMT. Audit Scotland has acknowledged that the Chief Executive and CMT have been notably proactive over the last year and the Council is taking forward a number of key initiatives which will deliver significant benefits. The Council is implementing improvements based on a single approach bringing together a wide range of reviews, change programmes and strategic projects. The Council acknowledges the need to prioritise, manage and communicate change programmes more effectively. The latest 2012 staff survey results indicate that although there has been significant change within the Council, there is general support from staff. However, fewer than half feel they have been kept informed about changes that affect them or that the reasons for change have been well communicated or that they have any say in the changes that affect them. As reported to Policy and Strategy Committee on 7 August 2012, the Council has established a 1.2.5 to: Corporate Programme Office create more structure and opportunities for staff to engage with senior managers in continuous improvement activity; ensure staff understand the reasons for change and how their contribution to improvement is valued.
The CPO provides an overview of all major Council projects and has adopted the Managing Successful Programmes (MSP) model harnessing best practice from experience in both the private and public sectors. The Council uses a Project Management Framework based on the PRINCE 2 approach for managing all major projects and processes that underpin process improvement. The PROSCI change management approach is being adopted to address the cultural issues of embedding and promoting change. All Chief Officials in their executive sponsorship role and 121 team members responsible for managing key projects have received PROSCI training. Senior managers champion continuous improvement and self assessment in conjunction with the Councils commitment to ongoing improvement. The recent Silver award at the Scottish Awards for Business Excellence builds on the Bronze award achieved in 2011 as evidence of this. See Service Planning section for more information on self-assessment. The Councils improvement programme, Achieving Excellence, is led by the Corporate Management Team. The latest Achieving Excellence performance report 1.2.6, considered by the Policy and Strategy Committee on 4 September 2012, highlights good progress, including: improvements in satisfaction with customer services in the city and local and neighbourhood services. Notwithstanding, there is a continued strong focus on improvement and performance. Phase III of Achieving Excellence was approved by the CMT in August 2012 and progress will continue to be reported to Committee to note achievements, impact and outcomes of the programme. Achieving Excellence is led corporately through the Business Intelligence Service in the Policy and Public Affairs Division. This will provide expert performance, information, quality, research and analytical services to deliver continuous improvement across the Council and to support the wider business community of Edinburgh.
The Corporate Programme Office (CPO) will lead, promote and support corporate working on project and programme management, ensuring effective utilisation of key enablers including a new ICT strategy. The CPO will deliver focus on, and alignment of, programmes and projects that are in line with: the Capital Coalition pledges; council vision and priority outcomes; the Single Outcome Agreement; current and future budget and financial requirements.
1.3 Governance and accountability

The Councils refined political governance arrangements were agreed on 20 September 2012 and will be in place from 29 October 2012. Council and committee meetings are open to the public and committee agendas (and supporting papers) are accessible on the Councils website. The Council is now piloting webcasting Council meetings
to promote greater transparency and accountability. First indications suggest this has been positively received. The Capital Coalition is committed to moving Edinburgh forward for the benefit of the city and its people, based on stability and confidence and with greater consensus-based decision-making. On 24 May 2012, the Council agreed that a review of political governance arrangements should be reported to the August Council meeting for Elected Members consideration and determination. A suite of reports with detailed proposals in relation to political management arrangements 1.3.2, were considered by Council on 23 August 2012. The new Political Governance arrangements 1.3.3, were agreed by the Council at the meeting held on 20 September 2012 following a full consultation 1.3.4 to the Elected Members on 19 July 2012. Arrangements for decision-making were considered to find a model to better reflect public opinion together with strengthened scrutiny arrangements. A wide review of best practice and arrangements in other local authorities has helped formulate proposals for Edinburgh. The model will deliver streamlined and informed decisions with effective accountability and overview. A key feature is Elected Members increased involvement in policy development and involvement in engagement and consultation with key stakeholders from the outset. The agreed committee model is a refined executive committee system as follows: a Corporate Policy and Strategy Committee; Seven executive decision making committees each with a sub committee focused on policy development and overview along with the delivery of outcomes as follows: Communities and Neighbourhoods; Culture and Sport; Economy; Education, Children and Families; Finance and Budget; Health, Wellbeing and Housing; Transport and Environment. Governance, Risk and Best Value Committee; Petitions Committee; Pensions Committee and Audit Sub Committee; Neighbourhood Partnerships (Advisory Committees); and retain existing arrangements for Planning and Regulatory responsibilities, appeals and joint boards.
1.3.1
The model has a range of benefits and improves upon some key areas that have caused concerns within the previous committee approach. The established oversight arrangements, provided by the Audit Committee have been previously assessed by Audit Scotland and were considered the current CMT as weak and not always effective. This is largely due to the narrow remit of the Audit Committee which is not currently focused on service and quality improvement and notwithstanding the commitment and effort of successive convenors is limited in adding assurance and value. The Audit Committee is being replaced with a Governance, Risk and Best Value Committee. This has a more specific remit covering performance and risk. It is anticipated that this will significantly strengthen oversight, accountability and scrutiny throughout the organisation. Engagement with citizens, key stakeholders, the third sector and communities will now be required at the outset of policy development. Opposition and back bench members have previously, at times, had a limited awareness and involvement in key policy developments until a report is presented for approval at committee. The new Policy Development and Review sub-committees will ensure that stakeholder and citizen consultation and engagement are significantly enhanced and considered from the early stages of policy development from both Elected Members and citizens. It is anticipated this will support and build successful working relationships across the city. The Council operates a Local Code of Corporate Governance consistent with CIPFA / SOLACE Guidance. The Director of Corporate Governance is responsible for maintaining an overview of evidence which supports the 1.3.5 . The record Council's Code of Governance of evidence is updated on an annual basis and reviewed/sample checked by Internal Audit. The Code is usually reported to the Audit Committee in March of each year. The Local Code lists all the key documents and policies forming part of the governance arrangements including: Standing Orders 1.3.6, Scheme of Delegation 1.3.7, Financial Regulations 1.3.8 , Risk Management Strategy 1.3.9, Codes of Conduct 1.3.10, Governance arrangements for the Chief Social Work Officer functions 1.3.11 and Compliance with the Scottish Social Services Council professional registration requirements 1.3.12 . The Governance Review supports a renewed focus on key areas of the Councils operational governance framework largely within the new Legal, Risk and Compliance and Finance Divisions where a range of development and review work is currently being undertaken.
The extant Scheme of Delegation is being extensively updated to reflect the current organisational structure and areas of responsibility assigned to chief officers. The Councils Financial Regulations, Contracts Standing Orders and Procurement Policies and arrangements are also currently being reviewed and updated. A report is being prepared for consideration by the Council in October 2012. This will outline the outcome of the consultation and will propose new Procedural Standing Orders for Council and Committee Meetings, Financial Regulations, Contracts Standing Orders and a revised Scheme of Delegation. A review is also underway to strengthen existing governance arrangements, recognising the requirement to set out an enhanced framework for the Councils relationship with all Arms Length External Organisations. The proposals will be based on core principles of transparency, accountability and integrity taking account of the Audit Scotland Toolkit and other appropriate guidance. As part of the review of Corporate Governance, the Council will consider options, including working with an external provider, to improve the management of its internal audit function. This aims to increase capacity and demonstrate the Councils ability to deliver a robust service. It is hoped that strengthening the service will help to increase public confidence and trust in the Council and demonstrate openness and accountability. A report detailing proposals, with the financial and staff implications, is expected to be considered by Council in November.
Councils plans for engagement will be even more wide ranging in future. A conference on a Co-operative Council approach was led by the Leader of the Council on 7 September 2012, setting out and consulting on aspirations to deliver the Councils vision and to empower decision making at local level, building upon local community leadership. A report on the Cooperative Council approach is going to Council at the end of October 2012. The Councils development of its Commissioning Strategy for Care and Support Services is a good example of extensive engagement and consultation with service users and carers, the voluntary and private sectors, staff and partner agencies. The final Strategy was strongly influenced by the responses to this consultation. It is now routine practice for service design or change activity to be supported by the establishment of stakeholder Checkpoint Groups to ensure effective engagement and contribution from service user and provider representatives. As part of the Winter Weather Working Together review in 2011, the Council carried out extensive consultation to inform the Councils response to incidents of severe winter weather. This was cited as an example of Best Practice by Customer Service Excellence. Further examples include the effective public consultation in relation to the new Gaelic school, the new school building programme and school closure programme. Children and young people are engaged on a citywide level through the Edinburgh Youth Issues Forum, which involves young people working in partnership with Elected Members and partner organisations to discuss and influence youth issues and services. Young people are involved at a community level through local youth forums, student councils and the Scottish Youth Parliament (SYP). More than 10,000 young people in Edinburgh voted in the last SYP elections in 2011. The Council enjoys a strong and constructive engagement with partners through the community planning arrangement - The Edinburgh Partnership. A wide range of joint consultation and engagement work is carried out by partners. At a local level, leaders, Elected Members and service managers engage with external stakeholders through a variety of partnerships, including the 12 Council led Neighbourhood Partnerships Further details are provided in the Community engagement section. Arrangements to engage with staff are outlined in the Internal Communication and Involvement and empowerment sections of this document.
1.4 Engaging stakeholders

The Council is committed to distributed leadership and engages with stakeholders on a wide variety of levels: from Councillors to frontline staff; customers and clients across all sectors, including public, private and voluntary; and across every part of Edinburgh and beyond. The Council uses comprehensive research such as the annual Edinburgh Peoples Survey which provides robust data covering more than 5,000 residents each year. It is the largest survey of its kind in Britain and provides reliable data down to geographical ward level. This survey is a catalyst to understanding how shifts in residents priorities inform decisions for the future. The Council has consulted extensively with stakeholders on its budget and has held a series of community meetings to identify and consider budget challenges. The number of people participating in the Councils budget consultation programme has increased from 837 in 2009/10 to more than 2000 in 2010/11. In 2011/12, around 1000 suggested actions were received. The 9
Goodpractice Outcomes; proactive leadership; modernisation of the Councils governance arrangements; Recognised for Excellence Silver business award; consultation through the Edinburgh Peoples Survey; collaborative problem-solving approach increasingly used to secure public engagement in the Council budget-setting process; extensive service user engagement.
ActionsandAreasforImprovement Effective arrangements to support Elected Members in scrutinising key decisions; reviewing internal audit; staff engagement and involvement in improvement; prioritisation, integration and communication of strategic projects and change programmes.
Contacts for further information Sue Bruce (Chief Executive), 469 3002, Alastair Maclean (Director of Corporate Governance), 529 4136, Gillian Tee (Director of Children and Families), 469 3322, Mark Turley (Director of Services for Communities), 529 7325, Peter Gabbitas (Director of Health and Social Care), 553 8201, Greg Ward (Head of Economic Development), 529 4298 Carol Campbell (Acting Head of Legal, Risk and Compliance, Corporate Governance), 529 4822 Kirsty-Louise Campbell, (Governance Review Project Manager), 529 3654 Karen Kelly (Head of Corporate Programmes, Corporate Governance) 469 3184 Tom Little (Head of Policy and Public Affairs, Corporate Governance), 469 3846 Andy Nichol (Interim Strategic Business Manager: CEOs Office, Civic and Members Services), 529 3123
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2.SERVICEPLANNING
The Council has an increasingly robust approach to performance management and planning. Arrangements are reviewed regularly to deliver continuous improvement. The leadership, support and development of self evaluation activity are being enhanced through new corporate working arrangements. The Council has a sound framework in place to promote and encourage equal opportunities and diversity. explains the Councils vision, strategic objectives, outcomes, and priorities for the next five years. The framework will ensure effective strategic direction and planning across all Council services to ensure there is wider public engagement, dialogue with citizens and oversight of competing service pressures. Priorities set out in plans and strategies are informed by customers, partners and other stakeholders. A robust, frequent and wide ranging, review of approaches to strategic and service planning is in place. All plans are agreed by the relevant people, they are SMART, routinely monitored, reviewed and refreshed. Staff are engaged in the planning process and have a clear understanding of service aims and objectives within a developing distributed, supported and challenged leadership environment.
2.1 Strategy and planning

The Council has developed a wide range of integrated plans to deliver organisational objectives and positive outcomes for Edinburghs citizens. The Services section of this submission and the plans and strategies pages on the Councils website provide further information. The SOA and Capital Coalition pledges provide clear strategic direction. As mentioned in the previous section, the Council has developed an Achieving Excellence Strategic Plan 2012-17 2.1.1 which provides a corporate framework for the delivery of services. This
Outcomes and priorities for Edinburgh
Elected Members
Coalition Agreement Council Strategic Plan Financial Plan & PBP Business Plan
Edinburgh Partnership Single Outcome Agreement Public Performance Reporting Neighbourhood Partnerships Local Community Plans Capital Coalition Pledges Single Outcome Agreement Council Outcomes and performance (statutory and non-statutory)
Corporate Management Team Outcome and thematic plans Senior Management Teams Self assessment and service improvement plans Divisional/ Operational Managers/ Teams
Community planning improvement plans
City-wide, neighbourhood and operational performance Employee Performance Review and Development (PRD)
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2.2 Performance management and reporting

The Council has a systematic approach to performance management aided by a well communicated, integrated framework through a corporate performance management system (Covalent). The Councils framework has provided a basis on which to develop and establish outcome-focussed performance improvement across the Council. The overall performance improvement framework is regularly reviewed and refreshed as required. As outlined in the Capital Coalition Pledges Delivery and Performance report 2.2.1 to Council on 23 August 2012, a new Performance Framework is being developed to take account of political, partnership and operational outcomes identified by the Capital Coalition Pledges, the Edinburgh Partnerships Single Outcome Agreement 2012-15, and the Councils overall responsibility for delivering a wide range of services to Edinburgh. Performance measurement is outcome-based and provides holistic information to support effective decision making and to evidence progress. This new framework will deliver transparent and accountable performance information to Elected Members and the wider public. The framework will be considered by the Council on 25 October for approval. During 2012, the Council has employed external consultancy support, provided staff training, held Extended CMT (ECMT) and CMT sessions to develop the Councils vision and supporting performance management arrangements. The Council has a strong performance management culture, although there have been well documented issues such as Tram and the former Property Statutory Repairs service. The new performance framework will increase scrutiny and risk management throughout the Council. The Achieving Excellence Leadership Group, responsible for performance, planning and quality, has also been established and is led by Heads of Service. Performance is monitored and reported to the relevant people, partners, stakeholders and customers. Performance results and improvement actions are scrutinised by Elected Members, the CMT, Directorate and Divisional Management Teams and by relevant project teams, working groups, committees and boards. All Directorates are required to demonstrate that they have effective and systematic performance management and review arrangements that track performance and improvement actions. Many services and teams are able to demonstrate this effectively. For instance, a Children's Social Work Performance Management 12
Group, established following the HMIE report on the inspection of Edinburgh's multi-agency child protection services in September 2007, has been monitoring and managing performance through monthly meetings. Several notable improvements in performance have been apparent since then: sustained 100% allocation of children on the child protection register and children looked after; an increase from 59.7% in 2007/08 to 98% in 2011/12 in the percentage of children seen by a supervising officer within 15 days; an increase in child protection case conferences held within the new standard of 21 days from 10.5% in 2007/08 to 81% in 2011/12. Monthly performance reports have been introduced at CMT level to replace two monthly performance reports for each Directorate. The new report draws on a range of indicators which indicate progress towards delivery of the Councils outcomes. The Council is introducing a strategic business intelligence analytics system to improve management information and support better decision making. A pilot to test proof of concept using the IBM Cognos system took place during 2012 focusing on absence information and analysis. Trials with a small number of managers demonstrated a successful integration between Cognos and Midland Trent with significantly improved access to absence information and analysis. A business case for further developing business analytics was agreed by CMT in August. Subject to contractual negotiations four work streams will be progressed: absence management; workflow and productivity tracking for revenue and benefits; development of the corporate performance dashboard; and integration of data currently held on SWIFT and SEEMIS systems as a first step to improving data sharing with partners and the identification of vulnerable children. A significant amount of information is provided to stakeholders in Edinburgh and beyond about the city and the business/performance of the Council through a range of communication methods. The Council publishes a balanced Annual Performance Report 2.2.2 to communicate the authoritys activities and achievements, its financial position and performance. Furthermore, SOA progress reports 2.2.3 are also published by the Edinburgh Partnership. Collectively, these reports provide comparative performance information, findings from major audits and inspections and details of service improvement actions where required. Additional performance and service improvement information is made available to the public and other stakeholders as appropriate through various media channels including websites, the
press and TV, newsletters, posters, Council publications, information screens in local reception areas, meetings and local forums. The Council can demonstrate that its public performance reporting arrangements have a stakeholder focus. The Council regularly consults stakeholders on the type and range of information which they would like to receive and has a good understanding of stakeholders interests and preferences. The Council has developed its own Council Performance webbased portal, providing access to a wide range of performance related information.
business intelligence and to integrate it with other performance reporting arrangements.
2.4 Equalities
The Council, beyond its legal duties on equality issues including human and childrens rights, its partners are also committed to tackling poverty and inequality in the city; this is a central aspiration of the Edinburgh Partnership Single Outcome Agreement. Arrangements to progress this area of work have been established with senior leadership by city partners. Leaders promote and encourage equal opportunities, rights and diversity through the Councils Framework to Advance Equality and Rights 2012/17 2.4.1. This sets out how the Council intends, over the next five years, to meet its duties under the Equality Act 2010 and the Public Sector Equality Duty, delivering both the letter and the spirit of the relevant equality laws. The Council is committed to developing a set of equality and rights outcomes aligned to the Councils Strategic Plan. These will be published in April 2013 and will include outcomes to tackle poverty and inequality. The Council is committed to ensuring that all staff are aware of and engaged with equality and rights issues through an extensive range of training activities. These include: corporate impact assessment training modules and guidance; core leadership and development modules that include sections on equality and diversity within employment; hate crime awareness raising sessions; and equality and rights legal duties. The Council is committed to an ambitious programme of equality and rights impact assessment to ensure services are more accessible to equality groups and are delivering equality and rights outcomes. An interim progress report will be published in April 2013 and thereafter every two years. The annual reports on the Council's single equality scheme for 2008 - 2012 2.4.2 are available on the Councils website alongside the Council's annual reports on diversity within the workforce 2.4.3 . An Edinburgh Equalities Network was established in 2009. This brings together the public sector partners with individuals, community groups and organisations that have a shared interest in equality and diversity issues. Beyond the collective commitment and accountability of the Edinburgh Partnership Board, there is the role of a member to focus specifically on Equality and Rights. The key tasks
2.3 Self evaluation

CMT agreed to implement both the Public Service Improvement Framework (in 2008) and a Corporate SelfEvaluation (in 2010) as complementary approaches to self evaluation. Both have helped the Council to become more self-aware and have supported the Councils delivery of its statutory requirements for Best Value and the continuous improvement of services. The second round of Corporate Self Evaluation and the outcomes of the initial programme of PSIF/Edinburgh Improvement Model assessments were jointly reported to CMT on 19 2.3.1 . May 2011 In April 2012, CMT agreed proposals 2.3.2 to streamline self-assessment across services and strengthen the corporate approach to selfassessment and improvement planning. All Council services continue to use EFQM-based frameworks for self-assessment. However, these have been tailored to deliver self- assessment that is more flexible and tailored to operational needs. For example, Children and Families services use the Quality Management in Education (QMIE2) framework in preparation for inspections by Education Scotland. The corporate self assessment approach has been strengthened through more structured engagement with the Extended CMT. This provides an annual review around corporate selfassessment and supports Extended CMT to reach consensus on the Councils corporate strengths and areas for improvement, before planning and prioritising services. This corporate self-assessment will continue to be supported by the latest business intelligence such as year-end performance, results of the Shared Risk Assessment, annual EFQM Recognised for Excellence feedback and customer research findings. As outlined in the previous section, the Council is refreshing its Achieving Excellence Improvement Programme to take into account updated 13
are to ensure that the Partnership Board is provided with an equality and rights perspective on agenda items and oversight and scrutiny of decisions and policies made by the Board. To fulfil this Equality and Rights role the Edinburgh Partnership Board has recently appointed David Griffiths, Chief Executive of ECAS, an Edinburgh voluntary organisation that supports physically disabled people.
Team and the Finance & Budget Committee that outlines the risk profile for each project. Partnership agreements have been established which define each partners responsibility and accountability for risk management. Arrangements have also been established which allow for cross partnership risk management in some areas, for example, between the Health and Social Care service of the Council and NHS Lothian, between Health and Social Care and Children and Families services, and on some joint ventures. The Council has well managed and structured processes for the assessment and management of the threat posed by known individuals, the risks to children and vulnerable adults. The effectiveness of these processes relies on robust management and leadership, on positive partnerships with key statutory agencies of police and health, as well as with the Mental Welfare Commission, the justice system and the Scottish Government. The key areas for improvement identified by CMT will align with leading practice and the CMTs desired future state for risk management in the Council are: strengthen risk governance and oversight; refresh the risk strategy, risk appetite and risk framework; coordinate and align risk management functions; and fully embed the risk culture across the whole organisation. Delivery of these improvements forms a key objective of the review of the Internal Audit and Risk Management Service and will supplement existing capacity with external expertise.
2.5 Risk Management

The Council has a risk management framework which continues to be strengthened while recognising key areas for improvement such as risk governance and further embedding the risk culture. The Councils Risk Management Strategy 2.5.1 provides guidance on a range of risk related issues. The strategy is due to be refreshed. The strategy has been endorsed by senior managers and members. Risk management forms part of the remit of the Governance, Risk and Best Value Committee. The Council maintains a corporate risk register 2.5.2 and registers are in place for directorates. Risk management principles are applied to all significant projects. The responsibility and accountability for effective risk management is increasingly effectively mainstreamed. Training is widely available and risk awareness is high across the Council. Staff are actively encouraged and supported to take responsibility and be accountable for risk management within their own service area. The Council employs a consistent set of criteria to evaluate risks and risk registers are updated throughout the year. Reliable business continuity arrangements are in place to ensure that key services are maintained and adverse impacts minimised. Risk management reporting is in the main well developed with regular reporting to relevant stakeholders. Monitoring reports, providing updates on identified risks, and mitigating actions, are required to be considered regularly by management teams. There are the well understood exceptions in respect of Tram and Statutory Property repairs and these cases have led to an increased understanding of risk, responsibility and accountability with appropriate transferability to other areas. Further action is identified and taken where existing controls are not effective or in response to emerging or escalating risks. An annual statement on internal risk controls is considered by Elected Members and is subject to external audit. A new regular Governance of Major Projects progress report 2.5.3 is considered by Corporate Management
Goodpractice Range of integrated, outcome-focussed plans; Equalities and Rights Impact Assessments; selfawareness of corporate and local areas for improvement. ActionsandAreasforImprovement Ongoing development of outcome focussed performance information; and risk identification and management.
Contacts for further information
Tom Little (Head of Policy and Public Affairs, Corporate Governance), 469 3846 Nick Croft (Equalities Manager, Policy and Public Affairs, Corporate Governance), 469 3726 Rebecca Tatar (Principal Risk Manager, Corporate Governance), 469 3427. Michelle Miller (Chief Social Work Officer), 553 8520
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3.PEOPLE
The Council is an accredited Investor in People Gold employer. The Council has an established approach to employee engagement through managing and developing people, recognising the contribution and well-being of staff; the importance of communicating more effectively with staff; and effectively engaging and involving staff in issues that affect them. The Council, as an employer, has an open relationship with relevant Trade Unions. However, in some areas of the Council, staff surveys have highlighted gaps between the Councils intentions and employees experience. Implementation of a range of initiatives highlighted in the Councils People Plans 3.0.1 will support continuous improvements in this area. Over the past few years there has been a trend of improving operational performance and customer satisfaction. The Council recognises that this would not have been achieved without the talent and hard work of its people and continued investment in their development. The key challenge is to sustain and improve these performance and satisfaction levels during a period marked by significant financial pressures and major organisational change. To meet this challenge the Council continues to invest in people through the delivery of People Plans and learning & development activities. Staffing levels have steadily reduced without any major adverse impact on employee relations. At 31 March 2012: Headcount was 18,902, a reduction of 1,158 since April 2010. (FTE numbers reduced by 797 to 15,042 in the same period). 302 staff left the Councils employment under the terms of the Voluntary Early Release Arrangements (VERA). Cumulative recurring savings are 9.6m per annum and total costs are 9.3m. 102 staff left the Council under the terms of the Redundancy policy (54 voluntary redundancies; 48 compulsory redundancies, 34 of which were in Blindcraft). Cumulative recurring savings are 3.3m per annum and total costs are 3.9m. Remaining staff reductions have been achieved through deletion of vacancies, natural wastage, redeployment and reducing temporary staff. The turnover rate for permanent staff is 3.0%, a reduction from 4.3% in December 2010. has A new Managing Attendance Procedure been negotiated and agreed with the Trade Unions. This will assist managers to monitor, control and improve attendance levels and to promote good practice when dealing with sickness absence. This procedure covers all employees and links in with the Councils wellbeing strategy. It also provides support to disabled employees through the provision of reasonable adjustments. The Council is currently piloting a new approach to absence reporting using an external provider. This one-year pilot involves 1,400 staff across 3 services, in areas where short-term absence is significant. Employees are provided with access to immediate clinical advice from trained nurses and managers receive real-time data to manage absence more effectively. The aim is to reduce the level of short-term absence in the pilot areas. The pilot will be fully evaluated in late 2012, but early indications are that attendance is improving in all areas covered by the pilot. The HR Business Partner team identify and monitor absence hotspots across the Council on a monthly basis. They provide strategic guidance on interventions to maximise attendance and case management support for managers dealing with complex absence issues.
3.1.1
3.1 Workforce planning and management

Effective workforce planning is essential to the successful delivery of the Council's strategic objectives. The Council has established a Workforce Planning Task group that reports to CMT. Reporting lines cover workforce monitoring, recruitment controls, overview of temporary contracts, employment policies, management delayering and strategies for voluntary reductions in staff costs. Further work is carried out on profiling the workforce, proactive identification of skill gaps and addressing these, and improvements in the quality, reliability and breadth of data available through HR systems. However, the Council has identified scope for further improvement in relation to developing a more robust workforce planning strategy which will be addressed by the new Organisational Development Division.
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Absence levels have been reducing over the last three years and the number of employees off sick for more than 10 months has reduced from 96 in April 2008 to 21 in April 2012. The Council has a corporate and consistent approach to recruitment and selection through the Recruitment and Selection Policy Framework 3.1.2 . The framework supports the Councils Equal Employment Opportunities Policy 3.1.3 which describes the Councils commitment to ensuring fair selection procedures and practices are in operation, and that unlawful and inappropriate discriminatory practices are unacceptable and eliminated. All recruitment and selection is based on the Councils Competency Framework 3.1.4. Health, safety and wellbeing of staff is taken seriously and the council has a wide range of support and advice to staff as outlined on the intranet site Orb. The Council was awarded Silver Healthy Working Lives status in March 2010 and will be assessed for Gold status accreditation in 2013.
engineer pay structures and re-evaluate jobs in the context of Modernising Pay. The Modernising Pay project was the vehicle used by the Council to implement the Scottish Single Status agreement. The implementation of Modernising Pay brought to an end identified pay inequalities, and provided a modernised set of pay arrangements. This included Contribution Based Pay to Council employees. In parallel with the development of the Modernising Pay arrangements, the Council addressed many thousands of equal pay claims. Modernising Pay is managed through the Equal Pay Project, settling claims where there is a strong and evidenced case to do so and defending claims where legal advice indicated it is appropriate. The Council is now entering into the last phase of settlement discussions with the Trade Unions, and it is anticipated that the Equal Pay Project will conclude by the end of the financial year 2012/13. All new jobs and roles are appropriately evaluated in terms of pay equality to ensure the integrity of the Councils employment arrangements.
3.2 Employee Relations and Equal Pay

The Organisational Development Division employs a team of employee relations professionals who are responsible for the development of employment policies and procedures and providing advice and guidance on employee and industrial relations. In conjunction with the Councils Employment Law Team, the Employee Relations Team provides advice and guidance on all aspects of the practical implementation of employment law. The Council enjoys good working relationships with Trade Unions. Recognised Trade Unions cover all occupational groups including teachers. A Partnership at Work arrangement is in development and is regarded as a positive step forward. This approach to employee relations is based upon mutual respect and a focus on outcomes and solutions. There is still much work to do to build upon the early months of this arrangement to ensure that it is embedded and consistently applied. The new Managing Attendance Procedure was agreed and implemented with the involvement and co-operation of the Trade Union side through the Partnership at Work model. Further agreements have been negotiated covering the 3.2.1 and a Code of Conduct areas of Anti-Bribery 3.2.2 for employees . The Council has made significant strides to deal with the equal pay problem, which emerged from the Equal Pay Audit which identified that many male dominated occupational groups were paid additional bonuses without any form of work or productivity measurement. In common with most other local authorities, the solution was to re-
3.3 Reward and recognition

The Council aligns remuneration, benefits, redeployment, redundancy and other terms of employment with other strategies and policies to promote and sustain employee engagement. The Council has implemented a Performance Review and Development (PRD) framework 3.3.1. The framework enables managers to support improvements in employee performance (which includes addressing under-performance), grade the achievement of SMART objectives and reinforce standards of expected behaviour. PRD meetings are held annually with an interim review meeting after six months. The Council also started to link contribution based pay (CBP) to the framework as of January 2011. A revised model of externally supported 360 degree review has been introduced by the Chief Executive as part of her own appraisal and this has been adopted by all Directors. It is proposed that this will be consulted upon with all Chief Officers with a view to extending the model. The Council has a range of progressive employment policies and practices 3.3.2 that promote a work / life balance culture. These policies are available to all staff via the Orb, and in many cases extend provisions beyond statutory requirements. The Council operates a competitive pension scheme (Lothian Pension Fund). The scheme is a valuable part of the pay and reward package for employees. People recognition is very important to the Council. In this regard, a number of awards schemes have been developed to recognise and
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value staff. The annual Council-wide Staff Awards for Excellence take place with winners being recognised by the Leader, Councillors, Chief Executive, and Directors. Many service areas also have additional awards and recognition celebrations. The Council and individual members of staff have also received many external awards over the last year. Prominent examples include a number of national and local awards including the Convention of Scottish Local Authorities (COSLA) awards, Green Flag awards for parks, and Libraries Change Lives awards.
Learning interventions are linked to key drivers and organisational needs. The learning strategy ensures consistency in access, standards, behaviours, key messages and the promotion of a one council ethos. Key components of the strategy include: Leadership and Development Programmes; CECil, the e-learning platform; Coaching services; Performance, Review & Development; Talent Management programmes; Employee Health & Wellbeing. The Council offers flexible accredited leadership development programmes for staff at varying levels that are delivered in partnership with the Institute of Leadership & Management, Edinburgh Napier University's Leadership Institute and the Improvement Service. Modules in key skills (e.g. Coaching, Influencing, Leading Change) are coupled with public sector commercial modules in, for example, Workforce Planning and Partnership Working. Flexibility is promoted and staff can choose to access on a module-only basis or study for qualification routes to MSc level. CECil offers development access 24/7 with partners and suppliers including Ashridge Business School, the Open University and the BBC. CECil has an internal authoring capability, decreased dependency on traditional delivery methods and increased access opportunities. It has also facilitated the sharing of materials across other councils. Coaching Services are designed, developed and delivered internally in partnership with the Association for Coaching UK (ACUK). This development product has increased the internal organisational capability in this area. Satisfaction ratings for this service are running at 94%. The Councils talent management programme uses partners such as Saville and the Institute of Management Studies. The programme aims to assess and develop people with potential for promotion to business critical posts. Over the past six years, in consultation with service area Senior Management Teams, there has been an annual cycle of selecting people with potential, assessing their development needs and providing them with a range of development opportunities. Around 100 staff to date who have gone through this process form a talent pool and are encouraged to apply for promotion, secondments and project work. Their performance within the programme is reviewed by CMT and Senior Management Teams.
3.5.2 outlines a The Councils Wellbeing Strategy strategic approach to workplace wellbeing, in order that there is a positive impact on employee engagement. The 'Wellbeing Cafe' is the
3.4 Internal communication

The Council understands that meeting the communication needs and expectations of its workforce plays a critical part in employee engagement. The Council has developed relevant communication plans and channels to ensure staff are kept informed about key developments and understand the organisations values and objectives. Prominent channels include Team Talk which is a two-way communication channel agreed by the Corporate Management Team and cascaded through the Council; manager updates; the Council Leader Report; the Chief Executive messages ; the Orb; e-mail bulletins; briefings and Magnet the Councils staff magazine. The Orb serves as a key internal communications tool for the Council. Representatives are identified in each service to act as web editors and they have a clear role in advising on appropriate content for the Orb. Internal communications are currently being reviewed as part of wider changes within the Policy and Public Affairs service, with a particular focus on listening as well as informing and consulting. The Organisational Development service has a comprehensive web presence in the HR Information section of the Orb. These web pages provide staff and manager support and guidance on a wide range of HR policies, plans and procedures.
3.5 Staff development

The Council recognises the importance of learning and leadership development as a key element of employee development. It received a highly commended award for Best Learning and Development Strategy in the HR Excellence Awards which took place in June 2012. The leadershipmatters framework 3.5.1 illustrates the strategic intent of council-wide learning and development. The framework presents a shop window for development across the organisation.
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Councils one-stop shop to access information on the Orb and at on-site events to support for healthier lifestyles and healthier working environments.
3.6 Staff consultation and involvement

The Council uses people surveys and a variety of other employee consultation methods to review and improve People Plans. The Council commissions a Council-wide Staff Survey of all staff every three years. The survey is key to the Councils monitoring of staff attitudes and issues but it is recognised that it could be undertaken more frequently and this is being reviewed. The results of the council-wide staff surveys 3.6.1 highlight a range of issues. Further detail is provided in the People Results section. The survey also benchmarks the Council's position in relation to similar sized organisations within the public and private sectors. The survey examines issues such as staff development, equality and fairness, internal communication, management and job satisfaction. An Action Plan is being developed as a result of the most recent survey, recognising that substantially more value is added through acting upon the feedback and evidencing this with the workforce. As indicated above, the results of this survey feed directly into the People Plans. Staff are further consulted through annual IiP Internal Reviews and consultation events such as Staff Talkabouts, Team Talk, team away days, team meetings, learning & development evaluation processes and health check staff perception surveys. Goodpractice Investors in People Gold, People Plans; leadership and development; external award schemes; and staff consultation. ActionsandAreasforImprovement Strategic workforce planning; addressing issues arising from the latest staff survey; reducing sickness absence; completing Modernising Pay; implementing a Partnership at Work arrangement with Trade Unions; and improving internal communication with staff.
Alastair Maclean (Director of Corporate Governance), 529 413 Philip Barr (Head of Organisational Development, Corporate Governance), 469 3963 Tom Little (Head of Policy and Public Affairs, Corporate Governance), 469 3846
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4.PARTNERSHIPS&RESOURCES
There is a robust structure in place for community planning. There is good evidence of effective partnership working at city-wide, strategic partnership and local neighbourhood levels. The Council has reviewed its financial planning and resource arrangements to ensure close and effective management is in place and is implementing a new model of priority based planning to support its focus on the delivery of efficient outcomes. The Edinburgh Partnership produces a publicAnnual Report 4.1.2 summarising progress on a wide range of joint work. It also considers detailed six-monthly SOA progress reports. Six themed strategic partnerships have a key role in the community planning framework. Each is responsible for coordinating a joint agency response to our priorities and for delivering the outcomes in the Edinburgh Partnership Single Outcome Agreement. Together, the twelve Neighbourhood Partnerships form the local element of the community planning governance framework. They are advisory committees to the Council. Each has responsibility for delivering local outcomes and locally-based activity through Local Community Plans 4.1.3, based on extensive work with local residents. A report to the Policy and Strategy Committee on 28 February 2012 provides a comprehensive review of the achievements of the neighbourhood partnerships 4.1.4 across the city. The SOA outcomes all have an impact on addressing different aspects of health and social inequality, with a focus on tackling poverty and deprivation. Further development of the draft city Framework to Tackle Poverty and Inequality 4.1.5 is underway to allow an additional level of detail and focus on the poverty and inequality agenda, underpinning the SOA. This is being taken forward by the Poverty and Inequality Theme Group, chaired by senior partnership representatives. Reports were considered by the Edinburgh Partnership in June 2012 in relation to two innovative neighbourhood projects Total Craigroyston 4.1.6 and Total Neighbourhood 4.1.7. Both initiatives are championed by the Neighbourhood Partnerships and can be seen firmly within the context of the Christie Commission findings and are loosely modelled on the Total Place pilots in England, although each is developing flexibly to meet local context and aspirations. Highlighting a commitment to continuous improvement, the Partnership undertook a selfevaluation at the strategic level of community planning in 2010. The resultant Partnership Development and Improvement Plan (PDIP) has been the focus of improvement actions, many of which have made substantial progress or are complete. A PDIP progress report 4.1.8 was considered by the Edinburgh Partnership Executive in June 2012.
4.1 Community Planning

We take pride in our long history of effective partnership working. Working with partners, the Council has performed well in developing a shared vision for the city. The Edinburgh Partnership provides an overarching community planning framework strengthening, co-ordinating and simplifying partnership working in the city. The Council facilitates rather than dominates community planning and has enabled active participation from other partners through Edinburgh Partnership Board and Executive meetings, In Conference events, and Strategic Partnership structures. The Council carries out a positive leadership role for community planning, with the Leader of the Council chairing the Edinburgh Partnership Board. The Councils Chief Executive also chairs the Partnership Executive. The 2012-15 Edinburgh Partnership Single Outcome Agreement (SOA) 4.1.1 sets out the vision and challenges for Edinburgh, agreed by partner agencies. The SOA provides a robust framework for the members of the Edinburgh Partnership to take action to tackle these challenges and improve the quality of life and public services for people in Edinburgh. The SOA sits firmly within the Edinburgh context and sets an overall partnership vision for the city. In developing the current SOA, the major issues for the city were reviewed. This context and evidence is set out in the SOA, in associated strategies and plans, and on the Edinburgh Partnerships Understanding Edinburgh web pages.
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Moving forward, self-evaluation approaches will be kept under review in the context of any future wider discussions on the community planning framework in the city and at the Neighbourhood Partnership level. The Edinburgh Partnership Summit in October 2012 aims to ensure that community planning drives genuine reform and delivers on agreed priorities. The event involving the EP Board and Executive, Strategic Partnerships and Neighbourhood Partnerships provides an opportunity to take stock of the impact of community planning, refine the purpose and function of the Edinburgh Partnership going forward taking account of the Scottish Governments review of community planning, and to map out the structures and relationships needed to deliver the partnership agenda for the city.
Neighbourhood Partnerships and the neighbourhood management model provide extensive opportunities for engagement with citizens, for example through the work of their sub-groups. The Council also encourages community engagement through its support for Community Councils, Council tenants and through the Edinburgh Equalities Network. The Council published Consultation Matters some years ago as a staff guide to undertaking consultation. This is now dated. A review is underway to develop appropriate measures to improve understanding and embed best practice. The Council is working with The Consultation Institute to develop further capacity and understanding in terms of consultation and engagement The new Council website provides an opportunity for clearer and simpler access to current and recent Council consultations, in one location. A consultations page has been created on the website. Services are expected to ensure that consultations are posted online and that the outcome of consultation exercises is also made available. A key feature of the new political management arrangements is the involvement of, and engagement and consultation with, key stakeholders from the outset of policy development. Additional information in relation to the Edinburgh Peoples Survey and budget consultation arrangements is provided in the Engaging Stakeholders section of this submission. Furthermore, significant consultation and engagement is carried out with customers through our Customer Service Excellence programmes as outlined in the Customer Focus section.
4.2 Community engagement

The Council aspires to be a listening, responsive, authority with a strong commitment to community engagement. The Council recognises the need to demonstrate this consistently. Community engagement is undertaken by all Council services. The CMT has discussed developing a more integrated approach to this work. This remains an outstanding area for further consideration and development. The Councils Community Learning and Development Service (CLD) is core to the Councils approach to engaging with communities, through its capacity building role. Capacity building and enabling is recognised as essential for promoting community engagement, developing social capital and supporting active citizenship. Community capacity building, along with personalisation, has been adopted by the Council as a key cross-cutting theme of our priority-based planning process. The Council supports the use of the National Standards for Community Engagement and helped to pilot the linked VOiCE tool (Visioning Outcomes in Community Engagement) which has been published by the Scottish Government as part of its support for the implementation of the Standards. Further work is required to develop a systematic approach to monitor the use of the Standards across the Council and to capitalise on the potential the VOiCE tool offers in this regard. Officer groups are in place to support and develop community engagement activity in partnership with city community planning partners. At the city level, the Edinburgh Partnership Community Engagement Working Group oversees the partnerships Community Engagement Strategy and Action Plan 4.2.1 which has recently been updated.
4.3 Finances
The Council has had a long established and systematic approach to allocating, monitoring and controlling financial resources. The current review of resource planning and management places an emphasis on management accounting, intelligence led decision making and a focus on the delivery of outcomes with clarity around roles, responsibilities and accountabilities. Financial performance is steady. There are effective financial management procedures within the Council, although there have been areas of significant concern as evidenced in the former Statutory Property Repairs service. Financial management and control is given high priority by CMT, directorate management teams and Elected Members. Financial and budgetary matters feature regularly on the agenda of the Council and committees.
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In a context of increasing demographic and other service-led demands on the Council, and decreasing real-terms levels of resourcing, all services contained expenditure within budget in 2011/12 for the third successive year. Through prudent financial management, the Council was also able to reach its targeted level of unallocated reserves a year ahead of schedule in March 2011. However, given that these compounding factors of increasing demand and reducing funding will continue at least into the mediumterm the need to secure further savings and efficiencies is clear. It is within this context that the themes of service prioritisation, early intervention and prevention are being given particular emphasis by Elected Members and the Corporate Management Team. The Council was one of the first in Scotland to 4.3.1 to adopt a Long Term Financial Plan (LTFP) inform management of its finances. The LTFP provides a strong foundation for the annual budget process. The annual budget process is supported by a full review of budget options and financial, economic, service and demographic conditions which may have an impact on the Councils financial position and costs. Review of the LTFP, assumptions, budget risks, cost pressures and service developments also helps to shape the budget strategy. Budget planning assumptions are reviewed on an on-going basis, with recommended changes reported to both CMT and Elected Members. The Council has a good understanding of the service costs it incurs and the key drivers for those costs. The LTFP uses a 10 year timeframe to map out these cost assumptions and also draws on available financial benchmarking information. The Council is facing a range of challenges in relation to transformation, service re-design and service delivery alongside significant financial constraints. These very important considerations have led to wide review and introduction of more innovative approaches including the completion of a Priority Based Planning (PBP) approach Council-wide. This approach focuses on aligning the Councils resources to the agreed priority services, outcomes, Capital Coalition pledges and the SOA. This is supported by consultation with citizens to inform members decision making during the budget process. PBP involves engagement with key stakeholders at all levels of the organisation through a twintrack approach, working with Directors and their service areas. This encouraged the generation of innovative ideas and ensures that the options identified are aligned to the Councils strategic direction. In total, more than 500 options have been identified in collaboration with Directors, Heads of Service and Service Delivery Managers. 21
The PBP approach will frame a 5 year business plan, for consideration by members, that includes a 5 Year Financial Framework to translate options into subjective budget lines taking into account implications on workforce planning, capital programmes, commissioning strategies, procurement, risks, opportunities and issues. Based on the agreed portfolio of options aligned to the budget process, a balanced programme of change, both operational and strategic, will be developed. The Audit Committee has provided independent scrutiny of financial performance. It has reviewed internal audit work, national reports by external auditors and selected its own work priorities. The new Governance, Risk and Best Value Committee will further strengthen scrutiny and accountability. Elected Members receive regular financial monitoring reports 4.3.2, 4.3.3 at key points in the year and are actively involved in shaping the Councils budget strategy. The significant recurring level of capital slippage in recent years is a significant concern and consequently the Capital Asset Management Group (CAMG) has been tasked with maintaining a closer overview of overall programme progress to identify opportunities for expenditure to be accelerated. This role will be strengthened by bringing together financial support for the capital programme as a whole within a specialist team in the Finance Service. Financial information is routinely provided to managers to help them monitor budgets. Reports include summaries and details of committed expenditure and projected out-turns by cost centre, service and at a corporate level. Managers are alerted to significant issues and variances which supports or challenges their own management information and accountability for expenditure. Training and financial management skills are given a high priority. Financial management skills are particularly critical with regard to the Councils high risk items. Since the signing of the Settlement Agreement for the Edinburgh Tram project, there has been strict financial control of the budget and project contingencies. There is a weekly change panel held as part of the project governance arrangement. No instructions to vary the scope of the project can be made without the approval of the project Financial Controller and Client Project Director. The risks that were identified when the revised budget was approved are being well managed. The risk profile of the project, now at a mature stage, is bringing greater confidence in the delivery of the project within the revised parameters.
The financial risks associated with the former Statutory Property Repairs service and the number of projects have been significantly reduced. The value of payments to contractors has reduced from a peak of around 19 million in 2009 to 8 million in 2011. Of 83 million paid to contractors from 2005 to 2012 only 57 million has been billed to owners and 26m is currently unbilled. The associated unbilled administration fee is 3.9m. In addition, a further 8.8 million unpaid debt remains outstanding of which 5.67 million is currently suspended, most of which is pending resolution of complaint. Where complaints may result in some form of financial compensation, these are being considered by the Councils insurers and legal advisors. The volume of complaints is significant, at over 800, but the aim is to have these all reviewed by September 2013. The bad debt provision in relation to this service has been increased to 7.2 million. In addition there is a risk that the Council may be subject to claims from contractors. A financial model is being developed which will allow monitoring as more information on claims and disputes becomes available. A special Finance and Resources Committee on 28th August agreed that a Property Sub Committee be established to receive regular update reports and oversee the process of recovery.
The recent economic downturn and associated decline in property values has adversely affected the councils projections for receipts from property sales. As a result limited capital receipts have been built into our funding projections. Despite these budget challenges the Council has taken a proactive approach to management of the school estate to ensure high quality schools operating effectively. Since 2000 16 schools have closed and 120m invested in new schools. In order to address the challenges associated with economic downturn and decline in property values, the Council is focusing on some key areas in the review, including: reviewing the property rationalisation strategy, including capital receipt assumptions of the market; making the best use of assets through letting vacant space by providing short term leases at market rates or trading space with other public service partners; investing in capital improvement to properties aimed at improving marketability and development; taking a corporate and cross agency neighbourhood approach to portfolio rationalisation and reconfiguration; developing our focus on the work of the South East HubCo with a stronger focus on Edinburgh specific initiatives and involving the Edinburgh Partnership.
4.4 Asset management

The Council manages its assets to provide safe and sustainable environments for stakeholders. The Council has developed a Corporate Asset Management Plan 4.4.1 for managing buildings, major maintenance work, equipment and materials that supports the Councils overall strategies and service delivery. The Council has improved its management and use of its assets through the Asset Management Strategy 4.4.2 and this has included the development of Community Hubs, linking key services such as libraries, social work, community safety and housing services together to provide a one-stop shop for services. Several older council properties were sold to consolidate into the Councils Waverley Court headquarters which is one of Scotlands most environmentally friendly buildings. It won the Property Executive Award in 2007 for its design and sustainability. A further review is underway to ensure that our physical assets work for the Council and opportunities for consolidation and efficient use are made and taken. The Councils Workstyle programme is helping to deliver property rationalisation targets by making the best use of workspace and changing attitudes to traditional ways of working by introducing greater flexibility about where and how people work. 22
4.5 Procurement
The annual Procurement Capability Assessment (PCA) was last carried out in November 2011. Performance was assessed as 'improving' with a PCA score of 51%. This is in line with other local authorities but in comparison with other public sector bodies there is still significant scope for further improvement. The future model for the provision of procurement services was considered as part of the Alternative Business Models programme. The Council at its meeting on 19 January 2012 4.5.1, 4.5.2, 4.5.3 approved the officers recommendation to retain the procurement strategy and delivery functions inhouse along with the other corporate and transactional services. The need to further develop the capacity and effectiveness of the procurement service was acknowledged. Following the January Council meeting, the market for potential procurement collaboration opportunities was investigated and an opportunity was identified to bring in external expertise on a gain share basis where, in broad terms, no fees would be payable unless gains are achieved. On that basis an appropriate specification was developed which includes the aim of achieving cashable savings opportunities of approximately 10m during the financial year 2012/13.
On 20 March 2012 4.5.4, the Finance and Resources committee appointed Mott MacDonald as the preferred bidder. Mott MacDonald is currently working with the directorates and the Council's Procurement team developing options to achieve these savings and enhance capacity and capability of the Council's present function. The Council is committed to continuously improving its sustainable procurement and has developed a high level Sustainable Procurement Action Plan 4.5.5 (SPAP) to implement the new Sustainable Procurement Policy 4.5.6. The implementation of the SPAP will form part of wider procurement transformation to ensure that sustainable procurement activities are embedded throughout the procurement life cycle and effectively communicated to all staff involved.
Edinburgh. The Council is exploring project ideas to bid for Green Investment Bank funding to take forward sustainability project(s) in the city.
4.7 Information and technology

e-Government and ICT are managed through the Councils Corporate and Transactional Services division which is responsible for co-ordinating the delivery of the Smart City Vision 4.7.1 and managing the strategic ICT Partnership with BT plc. ICT procurement, maintenance and development are co-ordinated at a corporate level and subject to standard business appraisal and project management processes. The Council is developing an ICT Strategy and five year plan to ensure that its use of ICT supports the drive to optimise operational efficiency and improve customer service. This will also address the Councils plan to implement the McClelland Report recommendations. Audit Scotland carried out an ICT Services Review of the Council in 2012. The audit report 4.7.2 and action plan was considered by the Councils Audit Committee on 26 June 2012 and concluded that the controls surrounding the management of the BT contract are sound, but the outsourcing relationship with BT may at times limit the flexibility to adopt changes in the ICT operating environment because of the costs involved. Regular reports to Committee 4.7.3 and the Smart City Steering Group highlight improvements in ICT performance. The Councils e-Government programme 4.7.4 is well established and is one of the key drivers of service improvement and change in the way services are delivered. A number of projects have delivered significant benefits to customers including making services more accessible. The Councils capacity to improve has also been enhanced by investment in improved ICT infrastructure. There has been significant investment in the ICT refresh of schools. The Council launched its new website in September 2010 on a more reliable platform and with a more usable and accessible interface. The site is delivering more customer-focussed content and a considerably improved customer experience. The new website helps customers to find information and do business with the Council online more easily through the use of online forms, a new payments interface and locationbased content such as the In Your Area search for services by postcode. Further improvements are planned to increase the transactional capabilities of the website and encourage channel shift to the web where appropriate. The site also retained the top ranking of four stars in
4.6 Sustainability
Sustainable Edinburgh 2020 4.6.1 forms the Councils framework through to 2020 to support our development as a sustainable city. This provides the basis for action by the Council to ensure that all opportunities are taken to deliver services and enhance the city in keeping with the existing legislative and policy structures. The Council is a signatory to the Aalborg Charter. The Council has based its framework for sustainable development on this Charter, setting out commitments for the years up to 2020 in line with the Scottish Governments emissions reduction targets. The Councils Scottish Climate Change Declaration Report for 2011 4.6.2 shows slowly falling carbon emissions with a reduction of 13% in total emissions between 2005 and 2009. The report also outlines steps being taken by the Council to reduce emissions from energy and transport. The Council has been awarded funding from the Scottish Government for fitting emissionsreducing equipment to buses which will reduce bus emissions by 85%. The Council is also installing up to 50 charging posts for electric vehicles. The Council achieved Carbon Trust Standard Accreditation in July 2012 as part of its on-going energy efficiency improvement. The Edinburgh Partnership has also recently established a cross cutting theme group dealing with Climate Change. The Scottish Cities Alliance Sustainability Action Team is chaired by the Council. Key priorities identified by this group for action include Green Deal, Street Lighting and District Heating. The Council is taking the lead on the Green Deal initiative, developing a business case to take Green Deal forward on behalf of Edinburgh and the Scottish Cities Alliance. Edinburgh was successful in its bid for the UK Green Investment Bank to be located in 23
the 2012 Socitm UK review of Council websites. It was one of two sites to achieve this. Good Information Management practices are essential to ensure that we are handling information appropriately across the Council. An Information Management Strategy is being developed, with new work streams focused on security, data protection, Freedom of Information (FOI) and records management. There is awareness at CMT level, through the corporate risk process, of wider information management issues. These include, for example, risks associated with the loss of confidential data, IT system failure, and maintaining compliance with legislation. Work is already underway to audit and improve the security of our IT systems. There is good awareness of where further improvements must be made, for example, to IT inventory management, service-level business continuity planning, strengthening of controls to prevent unauthorised access. Implementation of recent public records legislation, and new monetary penalties imposed by the Information Commissioner for breaches of Data Protection, place new pressures on the Council with regard to managing its information. A co-ordinated approach is required to comply with requests for information, requirements under the S61 Code of Practice on Records Management, existing Data Protection legislation, and with new public records legislation. Assessment and review of the Councils position in relation to records management and information compliance is being undertaken. Proposals to develop, strengthen and improve current arrangements will be accommodated within the review of Legal, Risk and Compliance.
Hugh Dunn (Head of Finance, Corporate Governance), 469 3150 Tom Little (Head of Policy and Public Affairs, Corporate Governance), 469 3846 Norma Cuthbertson (Community Planning Manager, Edinburgh Partnership), 469 3816 Natalie Hoy (West Neighbourhood Manager / Local Community Planning Manager, Services for Communities), 469 5198 Christine Mackay (Total Craigroyston Manager), 529 7054 Adam Kassyk (Total Neighbourhood Project, Corporate Governance), 469 3553 David Bruce (Senior Education Manager, Children and Families), 469 3795 Nick Smith (Commercial and Procurement Manager, Corporate Governance), 529 4377 Anne Crawford (Property Manager - Asset Management, Services for Communities), 529 5877 Janice Pauwels (Sustainable Development Manager, Policy and Public Affairs, Corporate Governance), 469 3804 Kevin Wilbraham (Records Manager), Corporate Governance, 469 6174 Donald Crombie (Information Security Manager), Corporate Governance, 529 7987
Goodpractice Community Planning governance; prioritised and outcome focussed SOA with strong partnership arrangements across the city and locally; prudent financial management; four star Council website; efficient estate with resources prioritised for new school buildings.
ActionsandAreasforImprovement Tackling poverty and inequality; continually improving and reviewing partnership arrangements; developing a corporate approach to consultation and engagement; delivering and managing sustainable budgets and assets; capacity and effectiveness of the procurement service; ICT Strategy; records and information management and compliance.
Danny Gallacher (Head of Corporate and Transactional Services, Corporate Governance), 469 5006
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5.SERVICES
Services generally perform well and our research shows that Edinburghs residents value the council services they receive, particularly at a local level. However, like many local authorities, the City of Edinburgh Council faces significant challenges to its reputation and public perception. We are aware of this and continue to take action to address service improvements and ensure accountability across services. indicators, as documented in the Single Outcome Agreement; increases in care staff qualification levels in home care and care homes; improved quality of care home facilities (en-suite rooms); good performance in providing courts with Social Enquiry Reports on time, and in other criminal justice service indicators.
5.1 Service areas

Health and Social Care The Health and Social Care Service Plan 2011-2014 5.1.1 sets out the strategic direction. The vision Working together for a caring, healthier, safer Edinburgh is reflected in Health and Social Care's high level commitments. The context for the delivery of health and social care services is characterised by a sharp increase in projected demand; rising expectations of choice and self-determination for people who use services; the need to maintain and improve quality; the challenge of a diminishing workforce market; and limited resources to meet this complex and rising need. Transformation of the service delivery model from traditional and responsive to anticipatory, preventative and personalised - and the integration of Council and NHS Lothian adult care services - are the platform on which the Council is continuing to plan and build change. In partnership with all stakeholders, the Health and Social Care service is leading on the 5.1.2 . Councils Personalisation Programme Performance management is supported by a wide range of regular reports at team, service and overview level, provided on a monthly or quarterly basis. Performance is considered by the Senior Management Team, the Performance Improvement Meeting and all service-specific management teams. Key achievements include: increasing the amount of evening and weekend support provided to people at home, and more support with personal care; progress in tackling drug and alcohol misuse, with improvements in key 25
Areas where we have identified the need for improvement or increases include: conducting reviews of the changing needs of service users and their current levels of support reducing waiting times for assessment Continue to shift the balance of care for older people towards community setting developing care at home market capacity, stability and continuity of care provision of increased respite to support carers supporting hospital discharge and preventing admission, e.g. through improved access to packages of support at home. The Scottish Government is currently consulting on proposals to integrate adult health and social care services in Scotland with the aim of improving the quality and consistency of outcomes for people. The exact form which integration will take is yet to be decided and the final legislative framework will be informed by comments received as part of the consultation. However, integration is very likely to have a significant impact on how Local Authorities hold these integrated services accountable. The governance arrangements for adult health and social care will require to be reviewed and if necessary revised once the details of integration have been finalised. The Council's response to the consultation has been drafted jointly with NHS Lothian and was reported by the Director of Health and Social Care to Policy and Strategy Committee on 4 September 2012. Children and Families The Children and Families Service Plan 2012-15 5.1.3 sets out our strategic outcomes and key priorities over the threeyear period 2012-15 for achieving the vision that Edinburghs children and young people enjoy their childhood and achieve their potential. The plan is set in the context of
rising demand particularly for social work services to children who need to be looked after, child protection and children with additional support needs. As well as regular, detailed performance monitoring of priorities and outcomes, each year the service produces a Standards and Quality Report 5.1.4 which sets out progress and areas for further improvement. Some key achievements include: Education Scotland assessment of the overall risk relating to education is low; improvement in educational attainment with all National Priority secondary school attainment measures showing year-on-year improvement; significant improvement in the percentage of young people entering positive destinations on leaving school, reaching the highest levels for ten years; significant performance improvements relating to child protection and childrens social work services; high levels of satisfaction with schools reported through the Parents and Carers survey; further reductions in the numbers of children referred to the Scottish Childrens Reporter Administration on offence grounds. The service understands its challenges and its focus on delivering improvements in: support in early years so that children reach appropriate developmental and social milestones; early support for families so that fewer children need to be looked after; the educational attainment of the lowest achieving pupils; health outcomes, including healthy weight, sexual health, emotional health and wellbeing and drug and alcohol misuse; life chances for Looked After Children including increasing the focus on Corporate Parenting; the number and percentage of young people entering positive destinations; early support for children with Additional Support Needs. The Integrated Plan for Children and Young People 5.1.5 details how Children and Families is working with strategic partners, through the Edinburgh Childrens Partnership, to achieve our joint vision. Economic Development The Economic Strategy 2012-17 5.1.6 is the Councils key strategic document for the economy. This sets out the Councils approach to developing the economy and identifies a range of 26
priority outcomes. The strategy emerged from long-term engagement with stakeholders, a community consultation and the 2011 Economic Review, which provides an evidence base for the strategy. The Strategy has been developed in partnership with the Edinburgh Business Forum and The Edinburgh Chamber of Commerce. The Economic Strategy sets four headline priority areas for the Councils Economic Development Service: Support the creation and safeguarding of 20,000 jobs in Edinburgh. Support 1.3 billion of development in Edinburgh. Support the movement into work or learning of 10,000 people. Support business through The Business Gateway and the better alignment of associated services through a one door approach.
The Economic Development Service regularly reports to Elected Members and other stakeholders on its performance against these targets. The four headline priority areas align with the Councils wider internal performance monitoring framework. The Economic Development operational plan for 2012/13 to 2014/15 5.1.7 set six headline targets for the Economic Development Service. As of April 2012, five of the six targets had been met. The performance of the Economic Development Service against meeting these six targets has been independently verified. Edinburgh has been identified as a leading centre for attracting foreign direct investment and is top in Europe and in the top ten globally. This position is evidenced by the Citys success in gaining recognition as Large European City winner; top ten in the Large European City: Economic Potential and Quality of Life. Revenues and benefits Audit Scotland recently completed an audit of the service which highlighted significant improvement since the previous audit. Notwithstanding, this remains an area for improvement to ensure that stronger performance is sustained and that the challenges associated with welfare reform are effectively managed , customer focus remains high and financial management is effective. Services for Communities Corporate Property The Councils internal improvement programme for Corporate Property is entitled iPFM. There are 4 workstreams under this programme including:
Integrated Property and Facilities Management (FM); Sustainability and Carbon Reduction; Maximising Returns from Council Assets; Estates Rationalisation and Remodelling. cash releasing savings of 50 million net over seven years; smaller operational property estate releasing significant capital receipts; significantly reduced property liability ; public services delivered from better maintained, quality buildings in the right locations ; co-location of services from the Council and other public sector organisations to better meet needs of citizens; Capital projects consistently delivered on time and to budget; improved sustainability through a reduction in energy and carbon emissions; consistently delivering high levels of customer satisfaction through Property and FM services; improved career development; opportunities and work satisfaction levels; creation of an organisation capable of providing FM services to other public sector organisations.
The Programme Objectives are:
the percentage of residents journeys to work made by bike has doubled to around 7% in 2009/10; the percentage walking to work has increased from around 17% to 19% over the same period; by 2010 traffic across all roads in the city was only 4% higher than in 2000, well within target; on the road network excluding trunk road and motorway routes, traffic reduced over the period.
Areas of concern highlighted in indicators include: the condition of the road network accessibility of shops and service for those without a car; the length of time to carry out lighting repairs. There has been significant success in recent years in reduction of road casualties and in sustaining and increasing the share of trips in the city on foot, by bus and especially by bike. The number of casualties is on a long term downward trend, having fallen from an average of 1661 during the period of 2004-2008, to 1371 in 2011. The Council is committed to implementing the airport to City Centre tram system to provide the city with a public transport system fit for the 21st century. Trams will form a high capacity, high quality component to the public transport system, serving citizens and visitors. In other cities trams have contributed significantly to modal shift from private car user to public transport in a way that other investment does not. The reliability and journey times provided by trams provide appeal for people travelling in the city and will give visitors travelling to and from the Airport surety of destination and journey time. For the Edinburgh tram to be successful, it will require careful integration with other transport services, strategic partners and with the fabric of the city. Since the signing of the Settlement Agreement in September 2011, the project has made significant progress. The completion of the tram depot at Gogar and the Test Track in December 2011 which was identified as one of the priority works packages following mediation, demonstrated immediate progress. In addition, work on all the key sites along the route is well underway and all the contracts for the project have now been let. The majority of utility diversions which presented the most significant risk to the project at the time of signing the settlement agreement have now been cleared, reducing the risk profile of the project significantly, though other risks remain, including adverse weather.
Transport The Transport 2030 Vision 5.1.8 sets out a long term vision of a transport system that is one of the greenest, healthiest and most accessible in northern Europe. This is supported by the Local Transport Strategy 2007 to 2012 5.1.9 (LTS) which is currently under review. As with Economic Development of these strategies are founded in community and stakeholder consultation. A series of more detailed Action Plans is under development, with Road Safety and Active Travel already published. The 2030 Vision is based around 9 outcomes which are linked to the SOA. Each outcome has corresponding indicators; these and LTS indicators are monitored and reported annually to the Transport, Infrastructure and Environment Committee. Significant progress has been made towards delivering the vision. In 2001 the Council set a range of targets seeking to increase the role of public transport, walking and cycling in the city and to contain the increase in motor traffic to less than 100%. Achievements include: annual bus passenger numbers have risen from 89 million in 2000 to 111 million in 2001;
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The construction of the civil engineering and system elements of the project are also progressing well as can be demonstrated all the way along the route. There have now been twenty two trams delivered to the tram depot, with the remaining five to be delivered by December 2012. The revised governance and management arrangements for the project are working effectively. The engagement of Turner and Townsend as project managers and the working arrangements between the City of Edinburgh Council and Transport Scotland have proved extremely successful. Relationships with the main contractor are also sound with no items of dispute being raised at the Joint Project Forums where the principals of each of the organisation are represented. The project remains on the revised programme and budget. Beyond the physical construction of the project, work has been substantially increased to manage communications, enquiries and stakeholder relationships. The project has caused substantial risk to the Council and damage to the reputation of the Council and that has been recognised in the governance and culture of the revised delivery arrangements. A major focus is currently being placed upon the operational agreement for the revenue service. It is recognised by the Council that this must achieve financial sustainability over time and demonstrate a Best Value model. Environment ImProve it is the title given to the Environment Services improvement plan detailed as part of the Alternative Business Models (ABM) programme (see Efficiency and Effectiveness). The ImProve it Programme encompasses Waste and Fleet Services, Street Cleansing, Grounds Maintenance and Public Conveniences designed to realise significant service improvements and an estimated 45 million in savings by 2019. As noted in the most recent City of Edinburgh Council Assurance and Improvement Plan, realising these significant savings and transformation proposals remains a considerable challenge. However, the Programmes governance structure is now well established to assist in monitoring the progress of associated projects and evaluate risks to delivery. The ImProve it Programme Board has been in operation since December 2011 and meets fortnightly. The role of the Board includes monitoring progress on programme delivery and managing programme risks and issues. The 28
Board escalates issues to Senior Management Team, CMT or Council as required. The Board also holds six-weekly partnership meetings with Trade Union representatives and shop stewards. The Board is supported by a programme structure which includes a dedicated Programme Office and project teams. Since this structure has been in place significant progress has been made on programme deliverables, including the introduction of Managed Weekly Collections and considerable changes to shift patterns within Waste Services. Ongoing review of the financial assumptions and savings of the originally proposed improvement plan is being undertaken and as a consequence savings are being re-profiled. A revised business case for the programme will be presented to the Council in November 2012. Further programme updates, including business cases for additional service improvements and efficiencies will be reported to Council on a regular basis. Key changes outlined in the original improvement plan which have been implemented to date include: introducing Food Waste collections five day working week for refuse collection staff and more recently new extended shift arrangements; alternate weekly collections; new better balanced and more efficient collection routes; ongoing Council fleet rationalisation; delivery of significant savings in streetcleaning and grounds maintenance; a comprehensive review of resources and current working practices in street cleaning and grounds maintenance to improve levels of performance and productivity; significant improvement works ongoing at depots across the city; commencing procurement of an Asset and Works Order Management system and associated mobile technology The realisation of the programmes objectives is heavily dependent on transformational changes to Waste Services. A new Waste and Recycling Strategy 5.1.10 which set ambitious targets for increasing recycling and reducing use of landfill was approved in November 2010. A progress update 5.1.11 was reported to Transport, Infrastructure and Environment Committee in September 2012. As noted in the City of Edinburgh Council Assurance and Improvement Plan, at the end of 2011 refuse staff ended their two year industrial action on a work to rule basis. It is recognised that continued positive engagement with staff, Trade Unions and customers will be key to successful implementation. A partnership
approach to engagement has been developed with the unions as a core part of the programme, including union representatives on the Board, staff focus groups and regular meetings with union representatives from all service areas within the programme scope. Levels of recycling continue to improve with a rate of 33.5% reported for 2011/12. This demonstrates considerable progress in reducing waste to landfill but it is below the 42% for 2011/12. There were two main reasons for the target not being met: delays in introduction of managed weekly collections (including reduced collection frequencies for landfill waste); changes to waste composition the amount of commonly recycled materials, such as newspapers, is declining. This has a negative impact on the percentage of total waste that is recycled. Audit Scotlands Assurance and Improvement Plan comments that Edinburghs recycling performance compares poorly to other Scottish local authorities. However in published data from SEPA on recycling for 2011/12 Edinburghs performance compares well when measured against the performance of other Scottish urban authorities and in particular with other cities. Furthermore it is anticipated the changes outlined below will increase recycling to meet targets of 50% by 2013/14. September 2012 saw the introduction of alternate weekly collection of household green refuse bins, new, more efficient routing and new shift patterns which are intended to release an estimated 1.3M savings in 2012/13. These service changes, coupled with the recent introduction of food waste collections, will enable residents to recycle up to 70% of their household waste and are supported by communications and engagement campaigns to encourage behaviour change. A longer term review of recycling services is also taking place to enhance ease of use and increase the range of materials collected. Overall the strategy remains on track to deliver 50% recycling by 2015 and 60% by 2017. Performance in street cleaning has been on an upward trend since 2006/07. In the March 2012 CIMS assessment, 96% of streets surveyed met the nationally recognised standard for an acceptable level of cleanliness the highest level achieved to date and in June the City wide CIMS target of 72 was achieved. Similarly in the management and maintenance of parks and greenspaces performance continues to improve with 24 parks attaining Green Flag status in 2012 the highest number of Green Flags in Scotland and second highest in the UK. Further improvements in both efficiency and performance 29
are planned following a review of performance and productivity in street-cleaning and ground maintenance. A zero based resourcing exercise is in its final stages which will lead to significant changes in the way the work is organised, delivered and managed. Housing The City Housing Strategy 2012-17 5.1.12 is the Councils key strategic document for housing and sets out the housing outcomes which the Council will work towards over the next five years. Edinburghs housing service is the best performing housing service in Scotland, after being graded AAB for Housing Management, Homelessness and Asset Management respectively, by the Scottish Housing Regulator following inspections in 2006 and 2010. The service manages over 19,000 homes, investing 40 million in improvements and 19 million on responsive repairs. These services achieve high levels of customer satisfaction. Performance is sound with rent collection and the turnaround of empty homes being in the upper quartile. improvement in gross rent collection to 98% in 2011/12; improvement in empty homes performance to an average of 22 days in 2011/12; The supply of affordable housing places limits on economic resilience. 65.2 million of affordable housing Investment Funding was invested in 2011/12 achieving approval for 1500 homes against a Housing Need and Demand Assessment (HNDA) of 1600 affordable homes per year. An innovative programme of mixed tenure council house building is driving area regeneration and seeks to ensure investment continues to provide additional homes and maintains investment in existing homes. The Scottish Government's commitment to provide homes for all homeless people from December 2012 will be a significant challenge. However, a recent inquiry for further assurance by the Scottish Housing Regulator (SHR) has acknowledged that the Council has plans in place to respond to this. The SHR report has not yet been finalised, but further feedback is available through the SHR. Further housing performance information is provided in the Community Results section. The Property Conservation service has been the subject of a major investigation including external consultants and a police investigation. No criminal activities have been discovered as part of this though there are significant concerns primarily about customer care, project management and procurement practices within the service. The external scrutiny showed that
the quality of physical work delivered was generally not an issue. Political governance in this area has been strengthened. A Property Sub Committee is being established to scrutinise the resolution of outstanding customer complaints and service redesign for the continuing service to owners in the city. Financial management, including recoveries of monies from owners, performance management and reporting will be strengthened as part of this. Planning and Development The key strategic documents that inform service are the South East Scotland Proposed Plan (SESPlan) 5.1.13 and the Edinburgh Local Development Plan (LDP) 5.1.14. These plans are currently being updated. SESPlan has been submitted to Scottish Ministers for examination and approval. The Edinburgh Local Development Plan has been through its main issues report stage and the proposed plan will follow approval of SESPlan. Both plans have been the subject of extensive consultation and discussion with communities, stakeholders and partners. In addition to development plan preparation, innovative strategies such as the Area Development 5.1.15 Frameworks for the Waterfront and Leith 5.1.16 have been and the City Centre Southern Arc prepared. Furthermore the Councils planning guidance is being reviewed to provide briefer and more customer friendly advice. Edinburghs approach to Planning and Development has been recognised as innovative and of high quality. Edinburghs Delivery of Affordable Housing received a commendation at the Annual Scottish Awards for Quality in Planning in September 2012. This award was in recognition of the way planning policies and processes, housing investment and partnership working have come together to deliver a record number of affordable homes, across every neighbourhood on the city. The Councils management of planning applications and building standards service both perform at a high level. Benchmarking shows that Edinburgh is generally the best performing of the Scottish cities. Edinburgh also processes the highest volume of applications per case officer. Recently agreed delegation from Historic Scotland in relation to some listed building applications should help to maintain performance. Development activity has increased over the past three years and in 2011 developments with a value of 10.6bn were either completed, on site or waiting to start. This represents an increase from 10bn in 2010.
Community Safety Edinburgh is a safe place to live and getting safer. Crime rates have reduced by 5% in 2011/12 compared to 2010/11. Community Safety is an integral part of the neighbourhood delivery of services and involves strong partnership working with the police through Safer Neighbourhood Teams. This model of joint response to neighbourhood set priorities, in line with the 5.1.17 , further Community Policing Model Strategy enhances our approach to Community Policing and antisocial behaviour, bringing together community police resources and Local Authority community safety officers. Further development of the model is being explored through the Total Neighbourhood pilot currently being established in the East Neighbourhood. The Antisocial Behaviour Strategy 5.1.18 for Edinburgh was launched in November 2010. The 3 year Strategy (2010 - 2013) was developed jointly by the Council and Lothian and Borders Police and outlines a joint approach to reducing antisocial behaviour in the city. The effectiveness of the strategy is reflected in reduced reporting of antisocial behaviour. 2011/12 Antisocial Behaviour figures have reduced by 30% compared to 2008/09. The Edinburgh Community Safety Partnership (ECSP) is led by the Council and reflects the need for a joint approach to community safety issues. The ECSP oversees the Violence 5.1.19 , the Hate Crime Reduction Programme 5.1.20 , the Serious Organised Crime Strategy Action Plan and Delphinus (partnership approach to national security). These priorities are based on a Joint Strategic Assessment which reviews and informs citywide priorities. Achievements include: crime rates have reduced by 5% in 2011/12 compared to 2010/11; customer satisfaction with how the Council and its partners deal with antisocial behaviour has increased from 53% in 2007/08 to 67% in 2011/12; residents feeling safe in the neighbourhood after dark have increased from 70% in 2007/8 to 77% in 2011/12.
Remaining challenges include: maintaining a community policing focus in relation to the new National Police Service; the impact of the economic climate and welfare reform on communities; continuing to develop early intervention approached while responding to existing antisocial behaviour.
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The Trading Standards service focuses on consumer protection issues across the city, including licensing enforcement functions. Current key priorities for the service are the development of No Cold Calling Zones, with around 41 zones now in place, and joint working with the Police to reduce door step crime. Performance in dealing with consumer complaints has increased steadily over the past few years rising from 76% dealt with within 14 days in 2008/9 to 92.5% in 2011/12. Key challenges facing the service moving forward are to further develop joint working with the Police and other agencies to tackle serious and organised crime and to contribute to ongoing national work on cross border issues such as illegal money lending. Environmental Health and Scientific Services are also key to community safety. Over the past 18 months the Public Health and Pest Control Service carried out a successful programme monitoring odour emissions from Seafield Waste Water Treatment Works, the first such programme in Scotland. In conjunction with Scientific Services, the team has also introduced a proactive swimming pool water quality monitoring programme. The Pest Control Team was successful recently in retaining a major contract to deliver services to an external organisation. The Councils Scientific and Environment Services is highly regarded, having recently won tenders to provide scientific services to two other local authorities. It is also the only Scottish Scientific Services to submit successful bids to the Food Standards Agency for surveillance testing. The service also played a major role in tackling the recent Legionella outbreak in the City. Libraries The Next Generation Library and Information Strategy 5.1.21 sets out Edinburgh's approach to developing library services from 2012-15 with a focus on improving access to library services and meeting changing customer expectations. The service won the Booksellers Award Best Library 2012 this year for achievements in reaching hard to reach groups, providing excellent community information, and leading edge digital library services. Satisfaction with Library Services increased from 85% in 2010 to 90% in 2011 in the Edinburgh People's Survey (over 5,000 respondents surveyed). The service is becoming more efficient. Between 2009 and 2012 the cost per library transaction fell from 3.23 to 1.89. A key focus of the Strategy is the development of Library Services within a wider community hub 31
environment. Two new libraries have been opened since 2011 in the South Neighbourhood Office and the Drumbrae Library Hub, which combines neighbourhood and adult care services alongside the library. The Craigmillar Community Hub with new library service is due to open by the end of 2012. Challenges continue to face the library service including the move to electronic books and increasing customer expectations. The service is evolving to meet these changing demands by investing in buildings to ensure modern, fit for purpose facilities.
5.2 Efficiency and effectiveness

The Council is challenging the way that services are delivered with the aim of delivering significant improvements in service quality, cost reductions and improved outcomes. Across the Council as a whole, some 29 million of efficiencies were delivered in 2011/12, exceeding the 3% target set by the Scottish Government. In cumulative terms, since 2006/07 almost 150 million of efficiencies have been realised, a sum equal to 16% of the Council's net budget. These savings have been made at the same time as steady improvements across a range of key performance indicators, external inspections and assessments are being delivered. Despite this progress, the Council recognises that it faces a significant funding gap over the coming years. In recognition of the scale of change required to meet its shortfall, the council developed an Alternative Business Models (ABM) programme which involved delivering some services in partnership with the private sector. Three services [Integrated Facilities Management (IFM), Environmental Services and Corporate & Transactional Services (CTS)] were initially identified for inclusion in the ABM programme. The process was developed throughout 2009 2010 and 2011 and recommendations were brought to the Council by officers recommending the adoption of the ABM model for IFM and Environmental Services in partnership with identified preferred bidders. However, at Council 5.2.1, 5.2.2 and 19 meetings on 24 November 2011 5.2.3, 5.2.4, 5.2.5 January 2012 the Council voted to end the procurement process for Environment Services, Integrated Facilities Management services and Corporate & Transactional Services without any award of contract. The financial implications of these decisions are potentially significant. The total value of the original ABM proposals is not lost, as the inhouse options are also anticipated to produce savings. But the savings foregone remain substantial.
The Council is addressing this through developing internal improvement plans and wider initiatives such as Priority Based Planning and the Procurement Transformation Project referred to in the previous section. Five Significant Trading Organisations (STOs) have been highlighted in the independent auditor reports for the last 5 years as having failed to comply with the statutory requirement to break even. The council is implementing internal improvement plans to address inefficiencies. These are detailed below: Issues relating to the Refuse Collection STO are being addressed through imProve It. The deficit relating to the Direct Cleaning STO relates to equal pay claims, and this is being addressed through iPFM. Edinburgh Catering Services STOs (School and Welfare Catering and Other Catering) deficits principally relate to equal pay claims. These will also be addressed through iPFM. Blindcraft closed in 2011.
and improve perceptions of the Council generally. An example of this is the recent communication on the property conservation service 5.3.1.
5.4 Customer Focus

Customer focus (covering customer care/service, complaints, responsiveness and communications) is of vital importance to the Council. Customer focus is increasingly firmly embedded as part of the organisations culture. Targets have been set through Achieving Excellence for improving customer satisfaction with the city, neighbourhoods and services. Citizens experience of contacting the Council is positive as shown in the Customer Results section. Recent exit survey results of customers who had just received a service from the Council showed 96% satisfaction with the service overall. The effective management of customer contact with the Council is important to us. This begins with good information about Council services and managing customer expectations, through to customer care standards, staff training, an effective complaints system and an effective performance management system. The Council has made good progress with: the development and ongoing rollout of an in-house solution to manage customer contact (Capture); the deployment of the Solidus telephony system providing customers better access to information and services; the extension and development of services provided by the Contact Centre the development of the Contact Centres knowledge base.
5.3 Promotion and marketing

The Council has developed marketing strategies to more effectively promote its products and services to target customers and users groups. These cover local services and community events through to international campaigns aimed at attracting millions of visitors to Edinburgh. For instance, the Edinburgh Sparkles campaign which covers the festive period, attracted 35,000 unique visitors to their website; 192 media stories promoting Edinburgh were placed and 3.7m generated in advertising value equivalent for the city through television, press and outdoor advertising. Edinburghs Hogmanay site generated over 430,000 unique visitors to the event website, reaching 3.4m people in the UK through the printed press and generating 2.7m in advertising value equivalent in the UK for Edinburgh. Ninetyseven international journalists were accredited to the event with the festival broadcast live online and around the world on television. Further large Council campaigns most recently include Caring for our Children to promote fostering opportunities and The Edinburgh Guarantee to promote positive employment, education or training opportunities for young people through working in partnership with the public, private and voluntary sectors. As with any large local authority, the Council faces a number of significant challenges to its reputation and public perception. Work is ongoing to address public concerns about specific issues 32
Further improvements will be delivered as part of the draft Corporate Customer Access Strategy 5.4.1 (still to be consulted on and approved). The Council is in the process of adopting the Scottish Public Services Ombudsmans unified complaints handling procedure. This will consolidate and update all the Councils previous complaints systems and will be compliant with the Ombudsmans expectations. The Council has also pioneered new Customer Service Professional SQA certified qualifications in the Contact Centre and Revenues and Benefits. The Council is committed to achieving Customer Service Excellence (CSE) accreditation. A Council-wide parent application was successfully assessed in July 2011 and supports all service areas to achieve CSE accreditation. Approximately 45% of services are currently accredited and the Council is on track to achieve 60% by December 2012. Services are reassessed annually to ensure standards are
maintained and customer services are continually improving. The Council carries out a wide range of customer focussed consultation work through CSE programmes including Customer Journey Mapping, Mystery Shopping and customer satisfaction surveys.
Goodpractice Increasing evening and weekend support; tackling drug and alcohol misuse; care staff qualification levels; quality of care home facilities; criminal justice service indicators. Improvement in educational attainment; satisfaction with schools; child protection and social work services; Early Years Change Fund; reduction in child offence referrals; Edinburgh Guarantee; Economic Strategy; Customer Service Excellence accreditations.
ActionsandAreasforImprovement Reviews of the changing needs of service users; reducing waiting times for assessment; shifting the balance of care for older people; developing care at home; increase respite to support carers; supporting hospital discharge and preventing admission. Early support for families so fewer children need to be looked after; improve outcomes for Looked After Children; further improve numbers of young people entering positive destinations. Property Conservation redesign, ensuring robust financial management of the future service. Complete the Tram project. Increase levels of recycling. Improve peoples perceptions of the Council and build reputation and trust.
Corporate Management Team: Sue Bruce (Chief Executive), 469 3002 Alastair Maclean (Director of Corporate Governance), 529 4136 Mark Turley (Director of Services for Communities), 529 7325 Gillian Tee (Director of Children and Families), 469 3322 Peter Gabbitas (Director of Health and Social Care), 553 8201 Dave Anderson (Director of City Development), 529 3524
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6.RESULTS&OUTCOMES
The Council is an improving organisation and compares favourably with other peer group councils. There is robust evidence that the Council is delivering positive outcomes for Edinburgh. Customers express high levels of satisfaction with individual Council services but the Council achieves low levels of satisfaction with the way it manages the city. The Council is the only local authority in Scotland to be an Investors in People Gold employer and has received numerous external awards for people engagement. However, recent staff survey results have highlighted perceived areas for improvement, which the Council is addressing. with local councils and a decrease in perception of general value for money. That perception appeared to be influenced by three factors: knowledge of the public spending cuts; apprehension in relation to future service delivery; and concerns in relation to the extent of ongoing change within local government. The Councils research last year identified that these three factors were also affecting the perceptions of Edinburgh residents along with a desire to be more engaged. When asked about their most recent contact with the Council, a majority of residents had a positive experience. In 2011: 60% said they were well treated and 52% had their query resolved (24% could not recall). This figure has stayed about the same over the past four years. Over 80% of those who had received help from social work services or had claimed housing or council tax benefits were satisfied with the service received.
6.1 Customer results

A wide range of customer satisfaction results, including a selection drawn from the 2011 Edinburgh Peoples Survey, are provided below. The results highlight that: Edinburgh continues to be highly regarded as a place to live with 91% satisfied and only 5% expressing dissatisfaction with the city. 74% were satisfied with the way the Council is managing neighbourhoods, an 11% rise since 2007. Satisfaction (of people expressing an opinion) with nursery, primary and secondary schools has improved over the five years from 2007 to 2011. Results from the 2011 Parent/Carers survey show very high levels of satisfaction with schools with 91% agreeing that they are happy. Over the past five years there is an overall positive upward trend in satisfaction with the quality of local environmental services, community safety, landlord services and community facilities. Satisfaction with the delivery of these services has increased significantly since the introduction of the neighbourhood model. Satisfaction with Care at Home and Home Care services remains high.
Most recent exit survey results of customers who had just received a service from the Council showed 96% satisfaction with the service overall and 97% satisfied with the timeliness of service. Satisfaction with all elements of service was better than 90% amongst customers of offices and libraries for the whole of 2011. Approximately 45% of services are currently Customer Service Excellence (CSE) accredited and the Council is on track to achieve 60% by December 2012.
6.2 People results

The Council has been accredited with Investors in People Gold and is the only Scottish local authority to achieve this to date. Absence levels have been reducing over the last three years and the number of employees off sick for more than 10 months has reduced from 96 in April 2008 to 21 in April 2012. Employees met or exceeded the requirements set in over 90 percent of objectives and competencies during the Performance Review and Development (PRD) process for 2011/12. This significant achievement builds on the high level of participation in the PRD process with over 90 percent of PRDs for staff in grades 5-12 completed.
Satisfaction with the way the Council manages the city has varied over the past 5 years from 35% to 57%. In 2011, the percentage satisfied fell midway at 46%. Reasons for dissatisfaction included trams (37%) and perceptions of mismanagement, poor use of funds, high council tax (17%). Other research suggests this perception may be picking up on a national trend affecting all of local government. A national survey by LGInsight shows a drop in satisfaction 34
The results of the 2012 staff survey were considered and analysed by the Corporate Management Team and Extended Corporate Management Team in August and September. Full results 6.2.1 were submitted to Policy and Strategy on 2 October 2012 and an action plan is currently being developed and monitored through the People Plans (updated plans will be available during the site visit). The following high level summary of the results highlight that: Pride in working for the Council has improved (from 44% to 55%), and is similar to levels of pride expressed by all local authority employees across the UK. Over half (58%) say they are satisfied in their present job slightly lower than in 2009 (62%) and levels of satisfaction expressed by local authority employees across the UK (65%). The majority of employees agree they find the work that they do interesting (84%) and are very likely to agree they feel supported by the people in their team (75%). Most employees agree their line manager is approachable and available (70%), open and honest (67%), listens to ideas and suggestions (63%) and recognises when employees do their job well (61%). Pride, job satisfaction and recommendation of the Council as a place to work are strongly linked to confidence in the decisions make by Service Area senior management. However, just over a third (38%) agree they have confidence in the decisions made by their Service Area senior manager. Employees are more likely to agree they have a clear understanding of their services aims and objectives than in 2009 (80% in 2012; 71% in 2009). The vast majority are committed to helping their service achieve its objectives (87%). Fewer than half would recommend the Council as a great place to work (44%). Employees are three times more likely to disagree than agree that the Council is a better place to work than a year ago (15% agree; 44% disagree). Half agree their personal morale is good (48%). A third (34%) disagrees.
COSLA Silver Award for CECil e-learning, 2011 National Digital Awards 2011, Silver Award - Best Use of Technology, CECil e-learning MJ Awards 2012, Finalists - Workforce Transformation for leadershipmatters framework CIPD Awards 2012, Finalists - Health & Wellbeing Strategy (result due by 17 October) Personnel Today Awards 2012, Finalists Health at Work category for Wellbeing Cafe COSLA Awards 2012, Bronze - Coaching Bank Personnel Today Awards, Finalists - Best Public Sector HR category for leadershipmatters framework.
6.3 Community results

The latest 2011/12 SOA progress report 6.3.1 provides details of how we have delivered against the outcomes in the SOA. At a high level, the majority of SOA outcomes are assessed to be on schedule or to have made some progress. Highlights from the report show: The work the Council is undertaking with its community planning and business community partners across the city and its wider region, is ensuring that Edinburgh retains its reputation as an attractive and supportive environment for business. Despite the economic downturn, the city continues to make an important contribution to the economic recovery. The population of the city continues to grow at a rate significantly above the average for Scotland as a whole (1.9% growth in Edinburgh compared to the Scottish average of 0.6% for the year to June 2011). Employment rates in Edinburgh have fallen in recent years from a high of almost 76% in 2008/09 to 71.5% in the year to March 2011. This represents a rate of decline faster than that seen across Scotland as a whole, with employment rates in Edinburgh falling below the Scottish average during 2010 for the first time in several years. In spite of such losses, claimant count rates in the city have stabilised at below 3.5% in the last 6 months and remain well below the Scottish average. The Council created 50 apprenticeship places in 2011/12 as part of the Edinburgh Guarantee initiative and is recruiting to a further 50 places for 2012/13. Furthermore, a total of 1,494 clients were supported into employment in 2011/12, with at least 63% of these clients sustaining their employment for a minimum of 13 weeks. In addition, a further 3,641 clients
The Council received the following People related awards in the last year: HR Excellence Awards 2012, Runner Up, Highly Commended - Best L&D Strategy Edinburgh Chamber of Commerce, Employer of the Year, Highly Commended, 2012 MJ Awards 2012, Finalists - Best Use of Technology for CECil e-learning
35
were supported into education or employment training during the year. Edinburgh has the highest productivity of any major UK city other than London. The net rate of new business formation has dropped significantly in recent years, with business births outnumbered by business closures during 2008/09, 2009/10, 2010/11 and 2012/12. However, there were 1,469 new business start-ups in Edinburgh during 2011/12 assisted by Business Gateway. This performance comes against a continuing backdrop of difficult trading conditions for new firms. Over the three year period to March 2012, the Council supported a total of 553 million of physical regeneration and commercial investment into the city. The Festivals generated 261 million worth of additional tourism revenue for Scotland. The economic impact figure for Edinburgh is 245 million. Tourism in Edinburgh also continues to do well with total visitors figure of 3.26 million despite the downturn and disruptions resulting from adverse weather conditions. Whilst Edinburgh continues to face an acute shortage of housing, the Council is making progress in ensuring that people have access to a range of affordable housing options. 1,558 homes were approved to begin construction by May 2012. Total public and private investment of 174 million will support approximately 2000 jobs in construction and related industries and will lead to a further 122 million being generated for the wider economy. The Council is making excellent progress with its 21st Century Homes for Edinburgh house building programme which will see up to 1,400 new homes delivered for sale and rent over the next few years in Pennywell and Muirhouse, North Sighthill, Gracemount, Leith and Craigmillar. The regenerated areas will contain a mix of affordable homes and homes for sale. The first tenants moved into new homes in Gracemount in February. The new Housing Strategy is focussed on early intervention and the provision of good quality housing advice in helping people find and maintain a home. Its success is evidenced by the fact that homeless presentations have fallen over the last five years, while the percentage of housing advice cases resulting in the prevention of homelessness has steadily increased over the same period. There has been an improvement in educational attainment at Standard Grade
and Intermediate levels with all indicators in line with comparator authorities and the national average. Performance in Higher and Advanced Higher remains above comparator and national averages. The percentage of young people in positive destinations directly after leaving school has improved significantly from 82.1% in 2007/08 to 87.4% in 2010/11, the highest figure for a decade. However, this is still below the national average of 88.9%. Child health indicators are generally improving. More children are walking or cycling to school, a greater proportion of children start school with no dental caries, and the % of newborn children exclusively breastfed at 6-8 weeks consistently exceeds the national average. Teenage pregnancy rates are high but are reducing. The five-year suicide rate within Edinburgh remains lower than the Scottish average. Steady progress is being made to shift the balance of care for older people from care home and long stay hospitals to care at home in the community. The number of older people receiving support in their homes in the evening and at weekends continues to increase. The rate of occupied emergency acute beddays for patients aged 65+ continues to reduce, showing that people are being supported more in the community. Reconviction rates for offenders who have completed community service orders or probation orders are consistently lower than the Scottish average. The Council has reduced its carbon emissions from 188,338 tonnes of CO2 in 2007/08 to 171,602 tonnes in 2011/12. The amount of waste sent to landfill is down to 147,655 tonnes in 2011/12, compared to 182,239 in 2007/08.
6.4 Key performance results

As reported to the Policy and Strategy Committee in December 2011 6.4.1, Statutory Performance Indicator (SPI) performance continues to compare favourably with other peer group councils. When ranked against the peer councils over the last year, performance was shown to be: among the best for 15 (36%) of the measures in line with similar councils in 19 (45%) amongst the lowest for 8 (19%) Where comparisons are possible, the longer term performance trend (since 2008/9) shows that Council performance has improved by: at least 5% in 18 indicators at least 10% in 14 indicators
36
more than 15% in 10 indicators
Four indicators: costs of refuse collection, refuse disposal, visits to libraries and attendance at swimming pools show declining comparative performance, though all are ranked around the middle of the benchmarking group. A further twelve indicators show no substantial change in performance since 2008/9. Further improvement is still required across a range of indicators for Edinburgh to become a top performing council. Other key results covering the Councils efficient and effective theme are being developed and will be presented to Council later in the year.
Goodpractice IIP Gold; improving performance; good comparative performance; increasingly self aware Council with strong commitment to improvement.
ActionsandAreasforImprovement A range of operational improvements being addressed through service-level improvement actions; improving satisfaction with the way the Council manages the city, building trust and confidence in the City and the Council. Contacts for further information Corporate Management Team Sue Bruce (Chief Executive), 469 3002 Alastair Maclean (Director of Corporate Governance), 529 4136 Mark Turley (Director of Services for Communities), 529 7325 Gillian Tee (Director of Children and Families), 469 3322 Peter Gabbitas (Director of Health and Social Care), 553 8201 Dave Anderson (Director of City Development), 529 3524 Tom Little (Head of Policy and Public Affairs, Corporate Governance), 469 3846
37
Appendix1SUMMARYOFCHANGES&IMPROVEMENTACTIONS
Improvement activity 1. Leadership Develop a new statement of vision, values, outcomes and priorities for the next 5 years, aligned with the Capital Coalition Agreement Deliver the Governance Review for both political and operational governance Establish a Corporate Programme Office to lead, promote and support corporate working and change management on major projects and programmes. Develop Phase III of Achieving Excellence continuous improvement programme Review of Internal Audit function 2. Service Planning Review and establish new Council Performance framework based on outcomes, partnership working and the Capital Coalition pledges Develop the Co-operative Council integrated approach to community engagement and partnership working Refresh and strengthen risk governance and oversight 3. People Develop a more robust Workforce Planning Strategy Address Staff Survey results through People Plans and local improvement plans Implement new Attendance Management Procedures and continue to reduce sickness absence levels Further develop the Partnership at Work arrangements with recognised Trade Unions Develop internal staff communications strategies, plans and activities 38 Key Milestones Review Implementation Champion Lead Officer(s)
May 2012 May 2012 March 2012 July 2012 August 2012
November 2012 October 2012 November 2012 November 2012 December 2012
Sue Bruce Alastair Maclean Alastair Maclean Tom Little Alastair Maclean
Alastair Maclean Carol Campbell / Kirsty-Louise Campbell Karen Kelly Sarah MacKenzie Hugh Dunn / Carol Campbell Tom Little / Sarah MacKenzie Alastair Maclean / Tom Little Hugh Dunn / Rebecca Tatar Philip Barr Directors / Philip Barr Philip Barr Philip Barr Susan Hutchinson
May 2012 May 2012 August 2012
October 2012 March 2013 December 2012
Alastair Maclean Sue Bruce Alastair Maclean
October 2012 August 2012 Throughout 2012 April 2012 Summer 2012
April 2013 November 2012 December 2012 December 2012 March 2013
Alastair Maclean Sue Bruce Alastair Maclean Alastair Maclean Tom Little
Improvement activity Conclude the Equal Pay Project and continue to monitor equal pay and other equality, wellbeing and diversity issues within the workforce. 4. Partnerships and Resources Further develop the Framework to Tackle Poverty and Inequality with partners across the city Continue to deliver the Edinburgh Partnership Development and Improvement Plan (PDIP) Establish the shadow Health and Social Care Partnership Develop an integrated corporate approach to community engagement and consultation and addressing Council perceptions. Continue to progress towards achieving sustainable budget reductions including addressing the funding gap and ensuring that STOs break even. Continue to address levels of capital slippage Further asset rationalisation, with implementation of the new Asset Management Plan, supported by flexible working and employee work style changes. Implementation of the Procurement Transformation Project (PTP) to review procurement governance, compliance and supplier management. Develop ICT Strategy and five year plan to ensure that ICT supports the drive to optimise operational efficiency and improve customer service Complete review of the Councils position in relation to records management and information compliance Deliver the Information Management Strategy focused on security, data protection, Freedom of Information and records management. 5. Services Transformation of health and social care delivery model including integration of Council and NHS Lothian adult care services. Address the challenges associated with welfare reform. Establish a Welfare Reform Strategic Planning Group to lead and co-ordinate the necessary preparation activities required in the Council.
Key Milestones Review Ongoing Implementation March 2013
Champion Alastair Maclean
Lead Officer(s) Philip Barr
November 2012 November 2012 September 2012 November 2012 September 2012
From April 2013 From December 2012 November 2012 April 2013 February 2013
Sue Bruce Sue Bruce / Alastair Maclean Sue Bruce / Jim Davidson (NHS) Alastair Maclean Sue Bruce
Tom Little / Louise Wright Tom Little / Louise Wright Peter Gabbitas Tom Little Alastair Maclean
September 2012 October 2012 and monthly thereafter September 2012 February 2013 October 2012 December 2012
February 2013 March 2016
Alastair Maclean Mark Turley
Hugh Dunn Mark Steed
2017 (five year plan) April 2013 July 2013 March 2013
Alastair Maclean Alastair Maclean Alastair Maclean Alastair Maclean
Nick Smith Claudette Jones / Steve Langmead Nick Smith Donald Crombie
June 2012 October 2012
April 2013 Throughout 2012 2014
Peter Gabbitas Alastair Maclean
Susanne Harrison Danny Gallacher
39
Improvement activity Deliver Environmental Services improvement plan (ImProve It Programme) Deliver Councils internal improvement programme for Corporate Property (iPFM) Increase supply of affordable housing
Key Milestones Review November 2012 November 2012 March 2013 and annually thereafter Ongoing through Project Board and Property Sub Committee Ongoing Implementation Ongoing until 2018/19 March 2019 Ongoing until affordable housing need met Service redesign April 2013
Champion Mark Turley Mark Turley Mark Turley
Lead Officer(s) David Lyon Mark Steed Cathy King
Conclude outstanding works with the former Statutory Property Repairs service including cost recovery, resolving existing complaints, and designing new service. Complete the delivery of the Tram system from the airport to City Centre within revised scope while securing a sustainable operating agreement. Develop Corporate Customer Access Strategy
Mark Turley
Cathy King
Summer 2014
Sue Bruce
October 2012
From Summer 2013
Mark Turley
Sue Bruce, Colin Smith, Alastair Maclean, Mark Turley Bill OFee
Note that further information on operational improvements highlighted in the submission is contained within the evidence provided.
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Appendix2EVIDENCEINDEX
Leadership
1.1.1 1.1.2
Edinburgh Partnership Single Outcome Agreement 2012-15 Capital Coalition Agreement 1.2.1 Review of the Councils Management Structure, report to Council, 20 June 2011 1.2.2 Management Reporting Arrangements, report to Council, 22 December 2011 1.2.3 Review of Corporate Governance Senior Management structure, report to Policy and Strategy Committee, 28 February 2012 1.2.4 Governance Review, report to Council, 23 August 2012 1.2.5 Corporate Programme Office, report to the Policy and Strategy Committee, 7 August 2012 1.2.6 Achieving Excellence Performance Report, report to Policy and Strategy Committee, 4 September 2012 1.3.1 Council Meetings Webcasting and ICT Developments, report to Council, 23 August 2012 1.3.2 Political Management Arrangements, report to Council, 23 August 2012 1.3.3 Governance Review: Political Management Arrangements and Operational Governance , report to Council, 20 September 2012 1.3.4 Edinburgh Governance, Political Management Arrangements, Consultation, issued to Elected Members, July 2012 (hard copy) 1.3.5 Local Code of Governance, report to Audit Committee, 31 March 2011 1.3.6 Standing Orders 1.3.7 Scheme of Delegation 1.3.8 Financial Regulations 1.3.9 Risk Management Strategy 1.3.10 Codes of Conduct 1.3.11 Chief Social Work Officer functions (hard copy) 1.3.12 Compliance with the Scottish Social Services Council professional registration requirements (hard copy)
Service Planning
2.1.1 2.2.1
Achieving Excellence Strategic Plan 2012-17 (currently being finalised) Capital Coalition Pledges Delivery and Performance report, report to the Council, 23 August 2012 2.2.2 Annual Performance Report 2.2.3 SOA progress reports, Edinburgh Partnership website 2.3.1 Self-evaluation and PSIF/EIM outcomes report to CMT 19 May 2011 (hard copy) 2.3.2 CMT PSIF proposals report April 2012-08-14 (hard copy) 2.4.1 Framework to Advance Equality and Rights 2012/17 2.4.2 Annual reports to the Councils single equality scheme for 2008-2012 2.4.3 Annual reports on diversity within the workforce 2.5.1 Risk Management Strategy 2.5.2 Corporate Risk Register (hard copy) 2.5.3 Governance of Major Projects Progress report, report to Policy and Strategy Committee, 4 September 2012
People
3.0.1
People Plans: Children and Families People Plan 2011-14 3.0.1b Health and Social Care People Plan 2011-13 3.0.1c Services for Communities People Plan 2010-12 3.0.1d City Development People Plan 2010 3.0.1e Corporate Governance People Plan 2011 3.0.1f Finance People Plan 2011
3.0.1a
41
3.0.1g 3.1.1
Council Wide People Plan 2011 Managing Attendance Procedure 3.1.2 Recruitment and Selection Policy framework 3.1.3 Equal Employment Opportunities Policy 3.1.4 Competency Framework 3.2.1 Anti-Bribery Policy 3.2.2 Code of Conduct for employees 3.3.1 Performance Review and Development (PRD) framework 3.3.2 Employment policies and practises 3.5.1 Leadership framework (hard copy) 3.5.2 Wellbeing Strategy (hard copy) 3.6.1 Results of the Council wide staff surveys
Partnerships & Resources

4.1.1 4.1.2
Single Outcome Agreement (SOA) 2012-15 Edinburgh Partnership annual report 4.1.3 Local Community Plans 4.1.4 Achievement of the Neighbourhood Partnerships, report to the Policy and Strategy Committee, 28 February 2012 4.1.5 Framework to Tackle Poverty and Inequality (hard copy) 4.1.6 Total Craigroyston, report to the Edinburgh Partnership Executive, 11 June 2012 (hard copy) 4.1.7 Total Neighbourhood Project, report to the Edinburgh Partnership Executive, 11 June 2012 (hard copy) 4.1.8 PDIP progress report, report to Edinburgh Partnership Executive, 11 June 2012 (hard copy) 4.2.1 Community Engagement Strategy and Action Plan 4.3.1 Long Term Financial Plan (LTFP), report to the Finance and Resource Committee, 27 October 2009 4.3.2 Revenue Monitoring 2012-13 Month Three Position, report to the Finance and Resources Committee, 31 July 2012 4.3.3 Revenue Monitoring 2011-12 Nine Month Position, report to Finance and Resources Committee, 17 January 2012 4.4.1 Corporate Asset Management Plan 4.4.2 Asset Management Strategy 4.5.1 ABM Review Programme Corporate and Transactional Services, report to the Council 19 January 2012 4.5.2 ABM Review Programme Integrated Facilities Management, report to the Council, 19 January 2012 4.5.3 Minutes from the Council meeting, 19 January 2012 4.5.4 Corporate Procurement Transformation Project, report to Finance and Resources Committee, 20 March 2012 4.5.5 Sustainable Procurement Action Plan, report to Policy and Strategy Committee, 27 March 2012 4.5.6 Sustainable Procurement Policy 4.6.1 Sustainable Edinburgh 2020 4.6.2 Scottish Climate Change Declaration: Annual Report , report to Policy and Strategy Committee, 27 March 2012 4.7.1 Smart City Vision 4.7.2 ICT Service Review, report to Audit Committee, 26 Jun 2012 4.7.3 Smart City Performance report, report to Finance and Resources Committee, 17 January 2012 4.7.4 e-Government programme (hard copy)
Services
5.1.1 5.1.2
Health and Social Care Service Plan 2011-14 Whole System Approach to the Personalisation of Health and Social Care, report to the Health, Social Care and Housing Committee, 19 June 2012 5.1.3 Children and Families Service Plan 2012-15 5.1.4 Standards and quality report 5.1.5 Integrated plan for Children and Young People 5.1.6 Economic Strategy 2012-17 42
5.1.7 5.1.8
Economic Development Operational Plan for 2012/13 to 2014/15 Transport 2030 5.1.9 Local Transport Strategy 2007-2012 5.1.10 Waste and Recycling Strategy 5.1.11 Waste and recycling Strategy progress update, report to Transport, Infrastructure and Environment Committee, 13 September 2012 5.1.12 City Housing Strategy 2012-17 5.1.13 South East Scotland Proposed Plan (SESPlan) 5.1.14 Edinburgh Local Development Plan (LDP) 5.1.15 Waterfront and Leith 5.1.16 City Centre Southern Arc 5.1.17 Community Policing Model Strategy (hard copy) 5.1.18 Anti-social Behaviour Strategy 5.1.19 Violence Reduction Programme (hard copy) 5.1.20 Hate Crime Strategy (hard copy) 5.1.121 The Next Generation Library and Information Services Strategy 5.2.1 ABM Review Programme Environment Workstream, report to the Council, 24 November 2011 5.2.2 Minutes from the Council meeting, 24 November 2011 5.2.3 ABM Review Programme Corporate and Transactional Services, report to the Council, 19 January 2012 5.2.4 ABM Review Programme Integrated Facilities Management, report to the Council, 19 January 2012 5.2.5 Minutes from the Council meeting, 19 January 2012 5.3.1 Communication on the Property Conservation Service 5.4.1 Corporate Customer Access Strategy (hard copy)
Results
6.2.1
Employee Survey 2012 Headline Results and Next Steps, report to Policy and Strategy Committee, 2 October 2012 6.3.1 2011/12 SOA progress reports 6.4.1 Statutory Performance Indicators: Benchmark Data for 2010/11, report to Policy and Strategy Committee, 6 December 2011
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Item no
Report no
8.6
CEC/53/12-13/CG
Audited 2011/12 Financial Statements

25 October 2012
1 1.1 2 2.1 2.2
Purpose of report To present the audited 2011/12 financial statements for Councils consideration. Main report Audit Scotland, the Councils External Auditors, concluded the audit and issued an unqualified audit certificate on 28 September 2012. The Auditors annual report to the Council is being prepared and will be submitted to a future meeting of the Governance, Risk and Best Value Committee. In accordance with the Local Authority Accounts (Scotland) Regulations 1985, these audited financial statements are now submitted for noting. The Audit Committee considered the External Auditors view on matters arising from the audit at the meeting on 27 September 2012. Audit Opinion The Auditors opinion can be seen on pages 150 and 151 of the financial statements (Appendix 1 to this report). There are no qualifications to the audit certificate. The audit opinion includes an explanatory paragraph regarding the Councils duties under section 10 of the Local Government in Scotland Act 2003 to conduct each of the significant trading operations so that income is not less than expenditure over each rolling three-year period. The under-noted significant trading operations failed to comply with this statutory requirement. Direct Cleaning Edinburgh Catering Services Other Catering Refuse Collection (including Trade Waste)
2.3 3 3.1
3.2
Note: Direct Cleaning failed to comply with the statutory requirement as a direct consequence of costs arising from equal pay settlements in previous years. Members are asked to note that each of these operations returned a surplus in 2011/12. 3.3 4 4.1 It should be noted that this explanatory paragraph does not represent a qualification to the Councils financial statements. Changes to financial statements Members are advised that there were a small number of changes to the financial statements arising from the audit, the most significant being an increase of 1.948m in the provision for statutory repairs. These are summarised in Appendix 2, whilst the table below shows the impact on the surplus reported to the Finance and Resources Committee in July 2012. 000 Unaudited in-year revenue surplus report to Finance and Resources Committee (July 2012) Adjustments included in audited financial statements - Review of bad debt and other provisions - Less funding from contingency fund - Review of creditor payments Total Adjustments Audited in-year revenue surplus Net monies transferred from Council priorities fund reported to Finance and Resources Committee Adjustment included in audited financial statements - Review of bad debt and other provisions (statutory repairs) Adjusted balance transferred to Council priorities fund 4.2 419 (119) 13 313 47 (7,342) 000 (360)
1,948 5,394
Members are asked to approve that these adjustments be funded from the monies previously set aside in the Council priority fund and funding for contingent risks. Group accounts The group accounts included in the audited financial statements have been restated to reflect adjustments to the Councils and other group members audited accounts. Financial Implications The changes to the outturn position are shown in Appendix 2, together with the impact on the General Fund. Equalities impact There is no relationship between the matters described in this report and the public sector general equality duty. 2
5 5.1
6 6.1 7 7.1
7.2 8 8.1 9 9.1
There are no equalities implications arising from this report. Environmental impact There are no adverse environmental impacts arising from this report. Conclusions As a result of changes identified during the audit, there has been a reduction of 2.261m in the amount available for set aside in the Council priorities fund. Members are asked to approve that this reduction be offset against the Council priorities fund. Recommendations Council is requested to: a) b) c) d) Note the unaudited 2011/12 financial statements; Note that there are no qualifications to the 2011/12 financial statements; Note that the Auditors report for 2011/12 will be submitted to a future meeting of the Governance, Risk and Best Value Committee; Approve a reduction of 2.261m in the amount set aside in the Council priorities fund and the drawdown of 0.119m of funding from the earmarked balance for contingent risks; Refer the audited financial statements to a future meeting of the Governance, Risk and Best Value Committee to consider in conjunction with the Auditors report.
10 10.1
e)
Appendices
1 Audited 2011/12 financial statements 2 Outturn reconciliation Alison Henry: All All Financial Statements and departmental working papers 0131 469 3172: alison.henry@edinburgh.gov.uk
Contact/tel/Email Wards affected Single Outcome Agreement Background Papers
2011/2012 AUDITED STATEMENT OF ACCOUNTS
The City of Edinburgh Council Statement of Accounts

Year to 31 March 2012
CONTENTS
Page
Explanatory Foreword Statement of Responsibilities for the Statement of Accounts Movement in Reserves Statement Comprehensive Income and Expenditure Statement - Group Comprehensive Income and Expenditure Statement - Council Balance Sheet - Group Balance Sheet - Council Cash Flow Statement - Group Cash Flow Statement - Council Notes to the Financial Statements Housing Revenue Account Council Tax Income Account Non-Domestic Rates Income Account Common Good Fund - Movement in Reserves Statement - Comprehensive Income and Expenditure Statement - Balance Sheet - Notes to the Common Good Fund Financial Statements Annual Governance Statement Remuneration Report Independent Auditor's Report
3 14 15 18 19 20 22 24 25 26 123 126 127 128 128 129 130 131 135 139 150
EXPLANATORY FOREWORD
Introduction The Audited Statement of Accounts presents the financial position and performance of the Council, together with the financial position of the wider Council Group for the year to 31 March 2012. The Statement of Accounts has been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2011/12 and the Service Reporting Code of Practice. Financial Statements and their purpose The Council has an interest in a number of companies and joint ventures. Where material, the financial results of the Councils subsidiaries, associates and joint ventures are consolidated into Group Accounts. The aim of these accounts is to show the full picture of the Council's sphere of control and influence over service provision, resources and exposure to risk that the Council has taken on through its involvement in various entities. The following statements show the position for the Group and the Council separately: - Movement in Reserves Statement - Comprehensive Income and Expenditure Statement - Balance Sheet - Cash Flow Statement. The Statement of Accounts comprise the following financial statements and accompanying explanatory notes: Statement of Responsibilities for the Statement of Accounts This statement sets out the respective responsibilities of the Authority and the Chief Financial Officer for the accounts. Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the Group and the Council. Reserves are analysed into 'usable reserves' (i.e. those that can be applied to fund expenditure or reduce local taxation) and other reserves. The surplus on the provision of services line shows the true economic cost of providing the authority's services, more details of which are shown in the Comprehensive Income and Expenditure Statement. These are different from the statutory amounts required to be charged to the General Fund balance and the Housing Revenue Account for Council Tax setting and dwelling rent setting purposes respectively. The net increase / decrease before transfers to earmarked reserves line shows the statutory General Fund and Housing Revenue Account balances before any discretionary transfers to or from earmarked reserves undertaken by the Council. Comprehensive Income and Expenditure Statement This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. The Council raises taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement. Balance Sheet The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Group and the Council. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Group and the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example, the capital receipts reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves are those that the Group and the Council is not able to use to provide services. This category of reserves include reserves that hold unrealised gains and losses (for example, the revaluation reserve) where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the Movement in Reserves Statement line 'adjustments between accounting basis and funding basis under regulations'.
Introduction - continued Financial Statements and Their Purpose - continued Cash Flow Statement This statement shows the changes in cash and cash equivalents of the Group and the Council during the reporting period. The statement shows how the Group and the Council generate and use cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations are funded by way of taxation and grant income or from the recipients of services provided by the Group and the Council. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Group and the Council's future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Group and the Council. Housing Revenue Account Movement in Reserves Statement and Comprehensive Income and Expenditure Statement These statements present the position, as previously described, for the Housing Revenue Account. Council Tax Income Account The Council Tax Income Account shows the gross income raised from Council Taxes levied and deductions made under statute. The resultant net income is transferred to the Comprehensive Income and Expenditure Statement of the Council. Non-Domestic Rate Account The Non-Domestic Rate Account is an agent's statement that reflects the statutory obligation for billing authorities to maintain a separate Non-Domestic Rate Account. The statement shows the gross income from the rates and deductions made under statute. The net income is paid to the Scottish Government as a contribution to the national Non-Domestic Rate pool. Common Good Fund This presents the Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement and the Balance Sheet for the Common Good Fund. Annual Governance Statement This explains how the Council conducts its business, both internally and in its dealings with others. The statement details the review of effectiveness of the code of governance and outlines any enhancements underway. Remuneration Report This presents information on the remuneration of senior elected members, senior officers within the Council and the most senior employee within each of its subsidiary companies. Newly Adopted Accounting Standards Heritage assets have been recognised in the Financial Statements, for the first time, under the requirements of FRS30 Heritage Assets. Heritage assets are those assets that are intended to be preserved in trust for future generations because of their cultural, environmental or historical associations. Examples include historical buildings and museum and gallery collections. Recognition of heritage assets has been accounted for as a prior year adjustment. These Financial Statements therefore include a re-stated Balance Sheet as at 1 April 2010 and as at 31 March 2011. Further details on heritage assets can be seen in note 17, and the impact of the prior year adjustment on the previously published Balance Sheets in note 48.
Financial Performance Revenue The Council's financial performance is presented in the Comprehensive Income and Expenditure Statement, which can be seen on page 19. This statement has been prepared using International Financial Reporting Standards. To show the net position of the Council, it is necessary to adjust the Comprehensive Income and Expenditure Statement for statutory items that require to be taken into account in determining the position on the General Fund and Housing Revenue Account for the year. These are shown in the Movement in Reserves Statement (pages 15 to 17). The outturn position for the General Fund, excluding accounting practice adjustments, compared to budget is summarised below. Further details will be provided in the report to the Finance and Resources Committee in August 2012, which will be available on the Council's website. Budget Actual (Under) 2011/12 2011/12 Spend 000 000 000 882,455 885,473 3,018 General Fund services -3,000 -3,000 0 Dividend income (net) -8,046 -6,403 1,643 Significant trading operations 106,193 102,774 -3,419 Loans charges / interest on revenue balances 4,646 4,646 0 Contribution to earmarked balances 0 0 0 Budgeted contribution to unallocated general reserve Total expenditure to be funded Council tax Net cost of council tax benefit Total - council tax income account Community charge income General revenue funding Distribution from non-domestic rate pool Funding General Fund surplus for the year Net sum released from provisions (relating to previous years) Transfer to Council Priorities Fund 982,248 -226,125 -561 -226,686 0 -458,120 -297,442 -982,248 0 0 0 983,490 -227,639 -275 -227,914 -61 -458,120 -297,442 -983,537 -47 -5,394 -5,441 1,242 -1,514 286 -1,228 -61 0 0 -1,289 -47 -5,394 -5,441
Fees and charges levied by the Council have been offset against the cost of providing services and are included within the actual cost of General Fund Services shown above. Budget performance - General Fund The main variances in the Council's outturn position arose in the following areas: An overspend on General Fund services of 3.018m, including unbudgeted expenditure relating to trams and statutory repairs, together with a reduced contribution of 1.643m from the Council's significant trading operations, partially offset by service underspends. General Fund services includes costs that are not directly chargeable to specific services, with budgets being held centrally. For the third year in succession, all services returned underspends against their approved budgets. A reduction of 3.419m on loan charges / interest on revenue balances, primarily resulting from effective treasury management on the investment of surplus funds and slippage in the capital programme. Council tax income exceeded budget by 1.514m, as a result of reduced levels of exemptions and discounts in prior years' tax. This was partly offset by a shortfall of 0.286m in the net cost of council tax A sum of 11.042m was returned from the provisions previously set aside for equal pay and modernising pay. This funding was partly used to meet the costs arising from the review of bad debt and other provisions, with the residual sum of 5.441m being set aside in the Council Priorities Fund held within earmarked balances. The in-year surplus of 0.047m was also transferred to the Council Priorities Fund.
5
Financial Performance - continued Principal Sources of Funding The principal sources of funding used by the Council during the year were: Council tax / community charge income (net of cost of benefits) General revenue funding Distribution from non-domestic rates pool Total 000 227,975 458,120 297,442 983,537
Reconciliation to Amounts Reported for Resource Allocation Decisions Note 32 to the Financial Statements shows the amounts reported for resource allocation decisions. The service income and expenditure shown in note 32 can be reconciled back to the total shown for General Fund services as follows: Net Expenditure Income Expenditure 000 000 000 Children and Families 401,640 -14,875 386,765 City Development 15,121 -3,766 11,355 Corporate Governance 112,705 -43,310 69,395 Health and Social Care 244,886 -62,692 182,194 Joint Boards 70,452 -1,906 68,546 Services for Communities 387,533 -255,229 132,304 Net cost of benefits 221,912 -220,661 1,251 Other non-departmental specific income and expenditure 36,828 -9,844 26,984 1,491,077 General Fund services (as shown on page 5) Significant trading operations (as shown on page 5) Net cost of council tax benefit (as shown on page 5) Reserves The Council's General Fund comprises two elements: The unallocated General Fund; and Balances earmarked for specific purposes. The unallocated General Fund is held against the risk of unanticipated expenditure or reduced income arising in any particular year. The level on this reserve is reviewed annually by the Council as part of the revenue budget process. This review considers the level of balances held, the financial risks which could be realised and the arrangements in place to manage these. The latest review was in February 2012, as part of the 2012-2015 budget setting process. The unallocated General Fund balance remains at 13.025m. There were no planned contributions to the unallocated General Fund for 2011/12. In addition, the Council has a further 88.413m of balances earmarked for specific purposes. These are held for a number of reasons: Balances set aside for specific financial risks which are likely to arise in the medium term future. Examples include monies earmarked for equal pay and the insurance fund. The Council holds 43.496m against these future risks. It should be noted, however, that the approved budget for 2012/13 includes use of 5.945m of funding, primarily from these earmarked balances. Balances set aside, primarily from grant income, due to timing differences between the receipt of the grant income and the planned expenditure thereof. The Council holds 38.551m of income which has been received in advance of planned expenditure.
6
-612,283
878,794 885,473 -6,403 -275 878,795
Reserves - continued Balances set aside to enable the Council to undertake investment in specific projects which will deliver savings in future years. These savings are used, initially, to reimburse the earmarked balances. The Council holds 3.447m of balances for such projects. Balances held under the School Board Delegation Scheme (DSM), which permits balances on individual school budgets to be carried forward to the following financial year. The current balance is 2.919m. In summary, the level of reserves at 31 March 2012, together with the forward strategy, are considered appropriate in view of the financial liabilities and risks likely to face the Council in the short to medium term. Impact of Current Economic Climate and Financial Stability For the third consecutive year, all service areas maintained expenditure within budgeted levels in 2011/12. In addition, the Scottish Local Government Finance Settlement for 2012/13 to 2014/15 made provision for each local authority to receive no less than 85% of the per capita average grant for Scotland as a whole, equating to additional funding for Edinburgh of around 23 million in each of the years concerned. Given these factors and having previously re-established unallocated reserves to a level consistent with the risk the Council faces, a number of non-recurring service investments were therefore able to be included in the Councils 2012/13 Budget. Looking forward, however, in the face both of an overall level of grant funding that is decreasing in real terms and on-going increases in demographic-related demand, further service efficiencies and a greater emphasis upon service prioritisation will be required to address a projected savings requirement of around 60 million over the period from 2013/14 to 2015/16. It is within this context that the Councils Priority-Based Planning project is proceeding. This initiative seeks to link the Councils spending more closely to its priority outcomes through scrutiny of individual services to assess the extent to which they contribute to key outcomes and/or could be delivered in different ways. A further focus of the project is on addressing a number of themes common to a range of Council services, including examining opportunities around investment in early intervention and prevention, community capacity-building and review of business processes. This work complements separate on-going projects to deliver savings through better procurement and making better use of the Council's property estate. Modernising Pay The Council implemented its modernising pay scheme on 4 October 2010. However, there remain a number of significant financial issues as a result of historical pay inequalities which have continuing implications for the Council's financial strategy. As at 31 March 2012, 79.549m has either been paid or provided for to meet actual and potential future settlement of equal pay claims. From the date of implementation, employees whose new salaries and wages are lower than their previous earnings are contractually entitled to a three-year pay protection period. This has already resulted in additional liabilities as settlement discussions roll out to deal with eligible claims from both solicitors' clients and other unrepresented claimants. The costs associated with equal pay settlement negotiations will have implications for future years and this will be taken into account in the Council's financial strategy. Housing Revenue Account The Council has a statutory obligation to maintain a revenue account for its housing provision in accordance with the Housing (Scotland) Act 1987. The Housing Revenue Account records all expenditure and income relating to the Council's own housing stock. Revenue expenditure on housing management, repairs and maintenance is funded from rent paid by tenants. The Council is also pursuing a major capital investment programme to improve its housing stock to meet the Scottish Housing Quality Standard by 2015. This programme is funded largely through prudential borrowing with the costs of borrowing met from rental income.
Housing Revenue Account - continued The Housing Revenue Account broke even at the end of the financial year, after making a contribution, via the General Fund, of 3.514m to the renewal and repairs fund. In addition, 4m of Housing Revenue Account debt was repaid during the year in accordance with the approved budget and the thirty year business plan.
Good progress was maintained towards meeting the Scottish Housing Quality Standard with 75% of dwellings compliant as at 31 March 2012, compared to 70% as at 31 March 2011. In March 2009, the Council approved a programme to build up to 1,300 new homes for sale and rent under the 21st Century Homes programme. Construction work on the council phase in Gracemount is complete, with the first Council homes handed over in February 2012. This site will provide 215 new homes of which half will be affordable, including social rent, mid rent and low cost home ownership with the first phase of affordable housing being released in July 2012. Planning permission in principle has been granted for the site in North Sighthill, and construction of the remaining phases at Pennywell and Craigmillar is due to start in 2012/13. Significant Trading Operations The provisions contained in the Local Government in Scotland Act 2003 require the Council to consider all services provided and determine which are Significant Trading Operations. The Act requires statutory trading accounts to be maintained for Significant Trading Operations and that they should break even over a threeyear rolling period. 2011/12 is the tenth year of trading for the areas identified as Significant Trading Operations. Direct Cleaning, Edinburgh Catering Services - Other Catering and Refuse Collection (including Trade Waste) failed to achieve their statutory obligation to break even over the three-year period 2009-10 to 2011-12. Excluding costs relating to equal pay, Direct Cleaning would have met their statutory targets to break even over a three-year period. Refuse Collection did not have any equal pay costs. Further details can be seen in note 33 to the Financial Statements.
The surplus of 6.403m in the table on page 5 represents the overall outturn from all the Significant Trading Operations, excluding IAS 19 and other adjustments. In the Comprehensive Income and Expenditure Statements (pages 18 and 19), the results are included in 'Net Surplus from Trading Undertakings', Exceptional Expenditure or within the relevant service as stated in note 33 to the Financial Statements. 000 -6,403 Surplus IAS 19 Charges -1,058 -638 Other adjustments, including non distributed costs and holiday accrual Net income included in Comprehensive Income and Expenditure Statement Included in individual services in Comprehensive Income and Expenditure Statement Included in net surplus from trading accounts (see notes 12 and 33) Net income included in Comprehensive Income and Expenditure Statement -8,099 -2,598 -5,501 -8,099
The 2009/10 surpluses and deficits included in the statutory requirement to breakeven have not been restated to include the impact of the costs for accrued holiday leave entitlement, although the figures included in the Comprehensive Income and Expenditure Statement have been re-stated. The figures for 2010/11 and 2011/12 include these costs. Following a formal period of consultation to identify savings, BlindCraft closed on 29 July 2011. Further details can be seen in note 33 to the Financial Statements
Capital Expenditure The outturn position for capital expenditure is summarised below: Revised Budget 2011/12 000 Capital expenditure General Fund services Housing Revenue Account Total capital expenditure Capital receipts and other contributions - General Fund services - Housing Revenue Account Government and other grants - General Fund services - Housing Revenue Account Total capital income Balance to be funded through borrowing - General Fund services - Housing Revenue Account Total advances from loans fund 352,561 48,250 400,811 Actual 2011/12 000 289,621 49,303 338,924 (Slippage) / Acceleration 000 -62,940 1,053 -61,887
-33,698 -4,300 -79,044 -550 -117,592
-22,477 -3,033 -79,339 -3,892 -108,741
11,221 1,267 -295 -3,342 8,851
239,819 43,400 283,219
187,805 42,378 230,183
-52,014 -1,022 -53,036
Expenditure on General Fund services slipped by 62.940m. Of this, 11.318m related to the tram project. Further detail on the tram project can be seen on page 10. The remainder of the slippage related to a number of projects across the programme, the most significant of which include flood prevention, asset management works, environmental projects funded through the zero waste fund, private sector housing grant, Niddrie Burn / Edinburgh Royal Infirmary link road, public realm works, grants to registered social landlords projects and the Edinburgh International Conference Centre - additional function space. Expenditure on the Housing Revenue Account was accelerated by 1.053m. The Council received 48.655m of general capital grant. This includes 1.906m which was passed to Lothian and Borders Police Board. The support provided through general capital grant enables the Council to direct resources to its own priorities. Capital expenditure for the year totalled 338.924m. Of this amount, 49.303m was spent on Council housing through the Housing Revenue Account programme with a further 29.610m on social housing through the housing development fund. 130.049m was spent on tram works, roads and other infrastructure, 21.832m on recreational venues and 29.727m on educational properties, including the purchase of land at Fountainbridge for the potential future location of Boroughmuir High School. In addition, 23.025m was spent through General Fund services on construction of additional function space and offices at Edinburgh International Conference Centre (EICC). Funding of capital expenditure included 83.231m from government and other grants. The Council received 29.998m of Government grants relating to housing development funding and the trams project. A further 8.421m was generated from the sale of assets and other receipts. Additionally, 17.089m of funding was received from developers and other bodies. The remaining 230.183m was funded through borrowing. The current economic climate continues to have a serious impact on the property market and this in turn has impacted on the Council's ability to raise income to fund capital projects through the sale of assets. The residential market has been particularly affected and this is where the Council's largest capital receipts were anticipated. As this is not expected to improve in the immediate future, the Council has had to re-align its capital programme to ensure that it remains affordable.
Capital Expenditure - continued Major capital projects undertaken during the year included: Continuing investment in roads and other infrastructure Construction and refurbishment of schools Continuation of the tram project Refurbishment of the Assembly Rooms and Royal Commonwealth Pool Construction of additional function space and office at the EICC Purchase of a 4.7 hectare site at Fountainbridge for the potential future location of Boroughmuir High School and other uses.
Tram Project During 2011/12 revised governance and project management arrangements were put in place. The Council has taken executive control of the project and appointed Turner and Townsend to provide project management support to the Infraco contract and utility related issues. In addition, Transport Scotland has taken a more active role in the project going forward. Following mediation, a thorough review of the project governance arrangements was undertaken. As a result, tie Ltd no longer has any involvement in the tram project. Turner and Townsend were appointed to assist the Council on project management and commercial matters. As a result of mediation, the contractor and the Council reached agreement on a settlement to build the project from the airport to St Andrew Square / York Place. The additional requirement for funding was reported to and approved by Council on 2 September 2011. The total revised project cost is now forecast at 776m with the additional 231m being funded by the Council. The project remains on the revised budget and on target for completion by summer 2014. As of 28 April 2012, 605m had been incurred on the project. Works undertaken include: The first major milestone was reached with the handover of the Gogar depot in December 2011, the same month that dynamic testing began; 27 tram vehicles are complete and factory tested, 12 have been delivered to the depot; The crossover section of track at Haymarket Yards was completed in February 2012; Remaining utility works were completed in Shandwick Place in February 2012 and in St Andrew Square in March 2012, allowing main infrastructure works to commence; The underpass at the A8 / Gogar roundabout was completed in April 2012.
Long-term Borrowing The Council is required, by regulation, to have regard to the Prudential Code, which was established by CIPFA to support local authorities in taking their capital investment decisions, in undertaking its duties. The key objectives of the Prudential Code are to ensure, within a clear framework, that the capital plans of local authorities are affordable, prudent and sustainable. Revenue costs arising from long-term borrowing are provided for within the framework of the Long-Term Financial Plan. A further key objective is to ensure that treasury management decisions are taken in accordance with professional guidance and best practice. The Prudential Code also has the objectives of being consistent with and supporting local strategic planning, local asset management planning and proper option appraisal. The Council borrowed money throughout the year to meet anticipated capital expenditure requirements and to refinance maturing loans after allowing for debt repayments. The borrowing strategy is prepared in accordance with the Code of Practice on Treasury Management in Local Authorities. The majority of the Council's borrowing comes from the Public Works Loan Board with the remainder from the European Investment Bank and market and other loans. Further details are provided at note 31 to the Financial Statements.
10
Investments The Council's approach to the investment of its surplus funds has always been to prioritise the security of its investments rather than to seek the greatest return possible on them. Throughout the 'credit crunch' the Council has continued to manage its counterparty exposure accordingly to protect its funds. More details can be found under credit risk on pages 112 and 113. Public Private Partnership - Provision of School Buildings In November 2001, the Council entered into a public private partnership with Edinburgh Schools Partnership, for the provision of school buildings, property maintenance and other facility management services. This was supplemented by a further agreement in April 2004. The project provides for a total of eighteen new or refurbished schools and other facilities throughout the city. In April 2007, the Council entered into a second public private partnership with Axiom Education Limited for the provision of school buildings, property maintenance and other facilities. This project provides for replacement of six secondary schools and two primary schools. Further details are provided at note 41 to the Financial Statements. Property used in providing services under PPP contracts is now recognised as an asset on an authority's balance sheet. International Accounts Standard 19 - Employee Benefits IAS 19 - Employee Benefits covers all types of employee benefits. It covers benefits payable during employment, termination benefits and post-employment benefits. The adoption of IAS 19 requires the Council to include the cost of paid annual leave in the Financial Statements. The cost of annual leave that employees have earned the right to that remains unused as at 31 March is included in the net cost of services in the Comprehensive Income and Expenditure Statement (CIES), with a corresponding adjustment made in the Movement in Reserves Statement, thus avoiding any impact on the Council's funding position. The requirement to account for retirement benefits, is based on the principle that an organisation should account for retirement benefits at the point at which it commits to paying them, rather than when payment actually falls due. The net cost of services in the Comprehensive Income and Expenditure Statement therefore includes an appropriate amount for the retirement benefits the Council has committed to pay, while the effect on the amount to be met from government grant and local tax payers has been balanced through inclusion of pensions interest costs and a transfer from the pensions reserve. This is because the Council bases its budget on the agreed employer's pension contributions payable and payments to pensioners in the year rather than benefit entitlements earned by employees. Terms and conditions for Scottish teachers have changed during 2011/12, with the introduction of school closure days. Some days within school holiday periods are now 'school closure days' and are nonaccumulating absence days within the annual leave calculations. Costs relating to teachers within the annual leave calculation have decreased from 13.151m in 2010/11 to 7.073m in 2011/12. This is mainly attributable to the introduction of 'school closure days'. The total amount paid during the year for termination benefits can be seen in the Remuneration Report on page 145. Net Pension Liability The net pension liability, shown in note 43 to the Financial Statements, in accordance with the requirements of IAS19 Employee Benefits, amounts to 381.215m. This exceeds current General Fund reserves of 101.438m. It should be noted that this is a snapshot of the position at 31 March 2012. The actuarial valuation, which takes a longer term view, will consider the appropriate employer's contribution rates and this, together with employee contributions and revenues generated from fund investments, will be utilised to meet the fund's commitments.
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Provisions The Council has made provision within its Financial Statements against both non-collection of income and obligations arising from past events. As can be seen from note 20.4 to the Financial Statements, the Council has made provision for 240.781m against non-collection of outstanding income, mainly comprising council tax and community charge. During the year, a net additional amount of 13.679m was set aside in these provisions for impairment of debtors, including statutory repair notices. Note 24 to the Financial Statements shows that the Council has provided for 35.409m for potential costs arising from past events, a net decrease of 92.288m from the previous year, mainly relating to settlement of costs relating to the tram project and equal pay and the reversal of provisions relating to equal pay and modernising pay. Within the total amount, 6.964m relates to the tram scheme and 23.968m for equal pay claims.
Financial Ratios This is the first year that financial ratios have been included in the Financial Statements. Ratios have been provided across three headings - reserves, Council Tax and debt and borrowing. 2011/12 Reserves Unallocated General Fund balance as a percentage of annual budgeted net expenditure Movement in the unallocated General Fund balance 1.33% 2010/11 1.30% The unallocated General Fund balance has remained constant at 13.025m. The increase in the ratio is due to a reduction in annual budgeted net expenditure. 4m As shown on page 5, there was no planned contribution to the unallocated General Fund 44.30% balance in 2011/12. The contribution of 4m in 2010/11 enabled the Council to meet its medium term reserves strategy one year ahead of schedule. 94.30% This shows the % of Council Tax collected during the financial year that relates to bills issued for that year. It does not include collection of funding relating to previous financial years. 22.60% This shows the proportion of total funding that is derived from Council Tax.
0 0.00%
Council Tax In-year collection rate
94.60%
Council Tax income as a percentage of overall funding
23.20%
Debt and Borrowing - Prudence Capital Financing 1,563.6m Requirement
1,412.1m The capital financing requirement represents the underlying need to borrow to fund expenditure on assets. Further details can be seen in note 39 to the Financial Statements 1,555.5m External debt levels include long-term commitments in respect of finance leases (mainly schools provided through PPP schemes). External debt levels exceed the capital financing requirement as borrowing is based on market conditions and therefore may be undertaken in advance of need.
External debt levels
1,660.7m
12
Financial Ratios - continued 2011/12 Debt and Borrowing - Affordability Financing costs to net 10.45% revenue stream - General Fund 35.97% Financing costs to net revenue stream - Housing Revenue Account Impact of capital investment on Council Tax Impact of capital investment on house rents 2.30% 2010/11 9.74% These ratios show the proportion of total revenue funding that is used to meet financing costs. The ratios exclude any voluntary repayments of debt 35.85% made during the year
2.19%
4.05% These ratios show incremental impact of financing costs (the increase in financing costs from the previous financial year) as a percentage 2.70% of Council Tax, in respect of costs payable through the General Fund and house rents, in respect of costs payable through the Housing Revenue Account.
Group Accounts The Council's arms-length companies have also been affected by the economic climate. A number of the companies are involved in the property market and have seen the values of their property portfolios decrease as a direct result of the current economic conditions. The Group Balance Sheet, shown on pages 20 and 21 shows net assets for 2011/12 of 842.076m. Within this total, the Group has a combined pension liability of 1,621.873m. This reflects the inclusion of pension liabilities relating to Council, police and fire officers, other employees, including subsidiary companies and the incorporation of joint boards as associates within the group. This exceeds the value of distributable reserves held by the Group. It should be noted that this is a snapshot of the position at 31 March 2012. The actuarial valuation, which takes a longer term view, will consider the appropriate employers' contribution rates and these, together with employee contributions and revenues generated from fund investments, will be utilised to meet the financing of these liabilities. It is therefore appropriate to adopt a going concern basis for the preparation of the group financial statements. Group Accounts - Prior Year Adjustments Lothian and Borders Fire and Rescue Board The Financial Statements reflect a prior year adjustment relating to the treatment of IAS19 transactions. The adjustment affects both expenditure and income within the Comprehensive Income and Expenditure Statement (CIES), however, as this is shown on a net expenditure basis, there is no impact on the CIES.
The depreciation policy for vehicles has been reviewed to better reflect the use of economic value of those assets. Depending on the vehicle type, these assets are now depreciated over a period of five to fifteen years, reflecting the estimated useful life of the assets. The change has been applied retrospectively by adjusting the opening balances and comparative amounts. Details of the change can be seen in note 48 to the Financial Statements.
HUGH DUNN Acting Chief Financial Officer 28 September 2012
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STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Authority's Responsibilities The Authority is required: to make arrangements for the proper administration of its financial affairs, including group interests, and to secure that one of its officers has the responsibility for the administration of those affairs. In this Authority, that officer is the Chief Financial Officer. to manage its affairs to secure economic, efficient and effective use of its resources and safeguard its assets. The Chief Financial Officer's Responsibilities The Chief Financial Officer is responsible for the preparation of the Authority's Statement of Accounts which, in terms of the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom ('the Code of Practice'), is required to present a true and fair view of the financial position of the Authority at the accounting date and its income and expenditure for the year (ended 31 March 2012). In preparing this statement of accounts, the Chief Financial Officer has: selected suitable accounting policies and then applied them consistently; made judgements and estimates that were reasonable and prudent; complied with the Code of Practice, except where stated in the Policies and Notes to the Accounts. The Chief Financial Officer has also: kept proper accounting records which were up to date; taken reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Accounts The Statement of Accounts presents a true and fair view of the financial position of the Council as at 31 March 2012, and its income and expenditure for the year ended 31 March 2012.
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MOVEMENT IN RESERVES STATEMENT

This statement shows the movement in the year on the different reserves held by the Council and its Group members. Reserves are analysed into 'usable reserves' (i.e. those that can be applied to fund expenditure or reduce local taxation), most of which is already earmarked and other, unusable reserves. The surplus or deficit on the provision of services line shows the true economic cost of providing the Group's services, more details of which are shown in the Group Comprehensive Income and Expenditure Statement. These are different from the statutory amounts required to be charged to the General Fund balance and the Housing Revenue Account for Council Tax setting and dwelling rent setting purposes. The net increase / decrease before transfers to earmarked reserves line shows the statutory General Fund and Housing Revenue Account balances before any discretionary transfers to or from earmarked reserves undertaken by the Council. Group reserves are shown as either usable or unusable reserves. Housing Renewal General Revenue and Capital Account Repairs Receipts Fund Balance Balance Fund Reserve 2011/12 000 000 000 000 Balance at 31 March 2011 Movement in reserves during 2011/12 (Surplus) or deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations (Note 9) Net (increase) / decrease before transfers to statutory reserves Transfer (to) / from other statutory reserves (Note 10.3) Minority interest and other consolidation adjustments (Increase) / decrease in year Balance at 31 March 2012 -18,591 0 -18,591 6,634 2,093 0 2,093 -5,607 0 0 0 0 0 -8,421 -8,421 8,421 -89,634 0 -15,404 0
-11,957 153 0 -11,804 -101,438 Capital Grants Unapplied Account 000 -1,541 0 0 0 -5,992
-3,514 3,514 0 0 0
0 -3,589 0 -3,589 -18,993 Council's Total Usable Reserves 000 -122,969
0 0 0 0 0 Group Usable Reserves 000 -17,857
2011/12 Balance at 31 March 2011 Movement in reserves during 2011/12 (Surplus) or deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations (Note 9) Net (increase) / decrease before transfers to statutory reserves Transfer (to) / from other statutory reserves (Note 10.3) Minority interest and other consolidation adjustments (Increase) / decrease in year Balance at 31 March 2012
Capital Fund 000 -16,390
0 0 0 99
-16,498 -8,421 -24,919 3,555
57,975 -16,362 41,613 -55,406
-5,992 0 0 -5,992 -7,533
99 -78 0 21 -16,369
-21,364 0 0 -21,364 -144,333
-13,793 2,544 0 -11,249 -29,106
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Total Usable Reserves 000 -140,826 Council's Unusable Reserves 000 -1,716,665 Group Unusable Reserves 000 918,730
2011/12 Balance at 31 March 2011 Movement in reserves during 2011/12 (Surplus) or deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations (Note 9) Net (increase) / decrease before transfers to statutory reserves Transfer (to) / from other statutory reserves (Note 10.3) Minority interest and other consolidation adjustments (Increase) / decrease in year Balance at 31 March 2012
Total Reserves 000 -938,761
41,477 -24,783 16,694 -51,851 -35,157 2,544 0 -32,613 -173,439
0 -35,017 -35,017 -3,555 -38,572 0 0 -38,572 -1,755,237
0 121,285 121,285 55,406 176,691 -2,544 71 174,218 1,092,948
41,477 61,485 102,962 0 102,962 0 71 103,033 -835,728
2010/11 Comparative Data Balance at 31 March 2010 Movement in reserves during 2010/11 (Surplus) or deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations (Note 9) Net (increase) / decrease before transfers to statutory reserves Transfer (to) / from other statutory reserves (Note 10.3) Minority interest and other consolidation adjustments (Increase) / decrease in year Balance at 31 March 2011
General Fund Balance 000 -73,113
Housing Revenue Account Balance 000 0
Renewal and Repairs Fund 000 -13,779
Capital Receipts Reserve 000 0
-251,018 0 -251,018 240,399 -10,619 -5,902 0 -16,521 -89,634
12,832 0 12,832 -14,446 -1,614 1,614 0 0 0
0 0 0 0 0 -1,625 0 -1,625 -15,404
0 -8,435 -8,435 8,435 0 0 0 0 0
16

Capital Grants Unapplied Account 000 -27,207 Council's Total Usable Reserves 000 -136,566
Capital Fund 000 -22,467
Group Usable Reserves 000 12,942
0 0 0 25,666
0 0 0 164
-238,186 -8,435 -246,621 260,218
-87,509 -20,022 -107,531 73,850
25,666 0 0 25,666 -1,541 Total Usable Reserves 000 -123,624
164 5,913 0 6,077 -16,390 Council's Unusable Reserves 000 -1,254,564
13,597 0 0 13,597 -122,969 Group Unusable Reserves 000 1,058,162
-33,681 -405 3,287 -30,799 -17,857
-325,695 -28,457 -354,152 334,068 -20,084 -405 3,287 -17,202 -140,826
0 -201,883 -201,883 -260,218 -462,101 0 0 -462,101 -1,716,665
0 -57,881 -57,881 -73,850 -131,731 405 -8,105 -139,431 918,731
-325,695 -288,221 -613,916 0 -613,916 0 -4,818 -618,734 -938,760
17
GROUP COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT

This statement shows the accounting cost in the year of providing services for the Group in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. The Council raises taxation to cover its expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement. for the year ended 31 March 2012 (Re-stated) 2010/11 000 344,011 275,313 -1,757 42,072 47,759 71,662 35,989 33,914 46,846 22,753 13,302 20,162 5,479 8,761 -162,301 -63,990 739,975 -2,168 64,147 -1,127,649 -325,695 -50,023 -161,242 -76,956 -288,221 -613,916 SERVICES Education Services Social Work Housing Revenue Account Other Housing Services Cultural and Related Services Environmental Services Roads and Transport Planning and Development Police Joint Board Requisition Fire Joint Board Requisition Corporate and Democratic Core Non-Distributed Costs Services to the Public Other Operating Expenditure Exceptional Items Associates and Joint Ventures Accounted for on an Equity Basis COST OF SERVICES Other Operating Expenditure Financing and Investment Income and Exp. Taxation and Non-Specific Grant Income 11. 12. 13. Notes Gross Expend. 000 353,280 347,227 76,676 294,634 85,572 92,371 322,821 62,976 45,628 21,051 12,414 19,352 21,470 43,431 -9,952 233,169 2,022,120 Net Expend. 000 340,464 283,916 -14,800 31,268 68,811 71,947 51,717 41,091 43,722 21,051 11,284 19,352 6,056 5,938 -9,952 64,017 1,035,882 -1,812 56,462 -1,049,054 41,478 -110,880 66,159 106,206 61,485 102,963
Income 000 -12,816 -63,311 -91,476 -263,366 -16,761 -20,424 -271,104 -21,885 -1,906 0 -1,130 0 -15,414 -37,493 0 -169,152 -986,238
49.
DEFICIT / (SURPLUS) ON PROVISION OF SERVICES Surplus on Revaluation of Non-Current Assets Actuarial (Gains) / Losses on Pension Liabilities Other Unrealised (Gains) / Losses Other Comprehensive Income and Expend. TOTAL COMPREHENSIVE (INCOME) AND EXPENDITURE
An analysis of minority interest shares in the Group Comprehensive Income and Expenditure Statement can be seen in note 7.1.
18
COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT

This statement shows the accounting cost in the year of providing Council services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. The Council raises taxation to cover its expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement. for the year ended 31 March 2012 Gross Expend. Notes SERVICES Education Services Social Work Housing Revenue Account Other Housing Services Cultural and Related Services Environmental Services Roads and Transport Planning and Development Police Joint Board Requisition Fire Joint Board Requisition Corporate and Democratic Core Non-Distributed Costs Services to the Public Other Operating Expenditure / (Income) Exceptional Items COST OF SERVICES Other Operating Expenditure Financing and Investment Income and Exp. Taxation and Non-Specific Grant Income SURPLUS ON PROVISION OF SERVICES Surplus on Revaluation of Non-Current Assets Actuarial (Gains) / Losses on Pension Liabilities Other Unrealised (Gains) / Losses Other Comprehensive Income and Expend. TOTAL COMPREHENSIVE (INCOME) AND EXPENDITURE -110,880 66,159 1,283 -43,438 -59,936 11. 12. 13. 000 353,280 347,227 76,676 294,634 82,157 92,371 99,612 58,591 45,628 21,051 12,414 19,352 21,470 38,175 -9,952 1,552,686 Net Expend. 000 340,464 283,916 -14,800 31,268 71,093 71,947 56,887 38,594 43,722 21,051 11,284 19,352 6,056 6,664 -9,952 977,546 -2,033 56,503 -1,048,514 -16,498
2010/11 000 344,011 275,313 -1,757 42,072 49,881 71,662 64,588 34,055 46,846 22,753 13,302 20,162 5,479 2,697 -162,301 828,763 -867 64,447 -1,130,529 -238,186 -50,023 -161,242 947 -210,318 -448,504
Income 000 -12,816 -63,311 -91,476 -263,366 -11,064 -20,424 -42,725 -19,997 -1,906 0 -1,130 0 -15,414 -31,511 0 -575,140
49.
RECONCILIATION OF THE COUNCIL'S POSITION TO THE GROUP POSITION 000 -448,504 -1,231 -40,498 -123,683 -613,916 Total Comprehensive (Income) and Expenditure on the Council's Comprehensive Income and Expenditure Statement (CIES) Subsidiary and associate transactions included in the Council's CIES (Surplus) / deficit arising from other entities included in the Group Accounts Subsidiaries Associates Group total Comprehensive (Income) and Expenditure for the year
19
000 -59,936 1,840 -2,141 163,200 102,963
GROUP BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Group. The net liability of the Group (assets less liabilities) represents the total net loss of the Group. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Group may use to provide services. The second category of reserves are those that the Group is not able to use to provide services. This category of reserves include reserves that hold unrealised gains and losses (for example, the revaluation reserve) where amounts would only become available to provide services if the assets are sold. (re-stated) 1 April 2010 000 2,320 1,005,705 1,653,166 111,193 629,419 12,016 19,706 40,350 3,471,555 8,477 37,478 2,812 0 327 0 6,004 48,242 55,668 3,632,883 12,193 3,200 25,081 202,005 135,808 378,287 -28,029 -253,411 -52,851 -334,291 (re-stated) 31 March 2011 000 2,476 Intangible Assets 1,009,675 1,635,321 99,206 728,855 12,756 40,175 62,737 Council Dwellings Other Land and Buildings Vehicles, Plant, Furniture and Equipment Infrastructure Assets Community Assets Surplus Assets Assets under Construction 14. 15. 17. 22.
Notes 16.
31 March 2012 000 000 979 1,028,599 1,708,176 101,158 809,389 11,618 39,115 100,147 3,798,202 7,200 37,232 11,077 643 173 7,073 10,175 37,180
3,588,725 Property, Plant and Equipment 7,258 Investment Properties 37,605 Heritage Assets 7,975 Assets Held for Sale 0 Available for Sale Financial Assets 307 Deferred Tax 0 Other Long-Term Assets (Pension) 7,739 Long-Term Investments 42,376 Investments in Associates and Joint Ventures 59,248 Long-Term Debtors 3,753,709 Long-Term Assets 33,118 Short-Term Investments 5,357 Assets Held for Sale 21,954 Inventories 191,704 Short-Term Debtors 224,360 Cash and Cash Equivalents 476,493 Current Assets -48,909 Short-Term Borrowing -220,189 Short-Term Creditors -129,704 Provisions -398,802 Current Liabilities
20.
75,186 3,985,120 22,304
22. 19. 20. 21.
3,185 14,788 86,617 210,031 336,925 -35,610
23. 24.
-213,618 -38,936 -288,164
20
GROUP BALANCE SHEET

(re-stated) 1 April 2010 000 -1,216,180 -247,050 -16,831 -1,151,901 -722,288 -3,354,250 322,629 -769,093 -1,251,384 56,848 679,608 29,457 1,058,162 -196,402 -27,207 -22,467 -13,779 -73,113 12,942 -123,624 -320,026 -2,603 -322,629 (re-stated) 31 March 2011 000 -1,274,809 Long-Term Borrowing -225,494 Other Long-Term Liabilities -17,570 Deferred Tax -1,022,353 Liabilities in Associates and Joint Ventures -346,559 Other Long-Term Liabilities (Pensions) -2,886,785 Long-Term Liabilities 944,615 Net Assets -808,914 Revaluation Reserve -1,329,289 Capital Adjustment Account 55,768 Financial Instruments Adjustment Account 335,902 Pensions Reserve 29,868 Employee Statutory Adjustment Account 918,730 Group Unusable Reserves -797,935 Unusable Reserves -1,541 Capital Grants Unapplied Account -16,390 Capital Fund -15,404 Renewal and Repairs Fund -89,634 General Fund -17,857 Group Usable Reserves -140,826 Usable Reserves -938,761 Total Group Reserves -5,854 Minority Interest -944,615 Total Reserves 10. 26. -7,533 -16,369 -18,993 -101,438 -29,106 -173,439 -835,845 -6,231 -842,076 -906,510 -1,306,950 54,276 381,215 22,732 1,092,831 -662,406 Notes
31 March 2012 000 -1,401,717 -219,606 -8,643 -1,179,933 -381,906 -3,191,805 842,076 000
The unaudited accounts were issued on 14 June 2012 and signed by K.Kelly, former Chief Financial Officer. The audited accounts were issued on 28 September 2012.
21
BALANCE SHEET
The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council. The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example, the capital receipts reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves are those that the Council is not able to use to provide services. This category of reserves include reserves that hold unrealised gains and losses (for example, the revaluation reserve) where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the Movement in Reserves Statement line 'adjustments between accounting basis and funding basis under regulations'. (re-stated) 1 April 2010 000 2,320 1,005,705 1,604,706 39,483 626,639 12,016 19,706 39,911 3,348,166 2,227 37,478 2,812 23,335 59,668 3,476,006 12,193 3,200 1,870 158,175 117,384 292,822 -28,029 -178,102 -50,668 -256,799 (re-stated) 31 March 2011 000 2,476 Intangible Assets 1,009,675 1,588,189 31,170 726,364 12,756 40,175 61,342 Council Dwellings Other Land and Buildings Vehicles, Plant, Furniture and Equipment Infrastructure Assets Community Assets Surplus Assets Assets under Construction 14. 15. 17. 22.
Notes 16.
31 March 2012 000 000 979 1,028,599 1,685,840 25,039 807,186 11,618 39,115 100,148 3,697,545 2,120 37,232 11,077 26,813
3,469,671 Property, Plant and Equipment 2,288 Investment Properties 37,605 Heritage Assets 7,975 Assets Held for Sale 23,335 Long-Term Investments 62,748 Long-Term Debtors 3,606,098 Long-Term Assets 33,118 Short-Term Investments 5,357 Assets Held for Sale 2,028 Inventories 168,924 Short-Term Debtors 207,464 Cash and Cash Equivalents 416,891 Current Assets -46,863 Short-Term Borrowing -173,300 Short-Term Creditors -127,697 Provisions -347,860 Current Liabilities
22
20.
78,686 3,854,452 22,304
22. 19. 20. 21.
3,185 2,800 73,754 195,831 297,874 -33,564
23. 24.
-183,725 -35,409 -252,698
BALANCE SHEET
(re-stated) 1 April 2010 000 -1,213,186 -228,105 -679,608 -2,120,899 1,391,130 -769,093 -1,251,384 56,848 679,608 29,457 -1,254,564 (re-stated) 31 March 2011 000 -1,281,119 Long-Term Borrowing -218,474 Other Long-Term Liabilities -335,902 Other Long-Term Liabilities (Pensions) -1,835,495 Long-Term Liabilities 1,839,634 Net Assets -808,914 Revaluation Reserve -1,329,289 Capital Adjustment Account 55,768 Financial Instruments Adjustment Account 335,902 Pensions Reserve 29,868 Employee Statutory Adjustment Account -1,716,665 Unusable Reserves 26. -906,510 -1,306,950 54,276 381,215 22,732 -1,755,237 Notes 18. 18. 43.7
31 March 2012 000 -1,408,752 -210,091 -381,215 -2,000,058 1,899,570 000
-27,207 -22,467 -13,779 -73,113 -136,566 -1,391,130
-1,541 Capital Grants Unapplied Account -16,390 Capital Fund -15,404 Renewal and Repairs Fund -89,634 General Fund -122,969 Usable Reserves -1,839,634 Total Reserves 10.
-7,533 -16,369 -18,993 -101,438 -144,333 -1,899,570
23
GROUP CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Group during the reporting period. The statement shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Group are funded by way of taxation and grant income or from the recipients of services provided by the Group. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Group's future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Group. Year ended 31 March 2012 (Re-stated) 2010/11 000 -230,245 -1,160,557 -73,002 -448,301 -4,528 -1,916,633 571,762 184,953 813,223 2,479 94,854 1,667,271 -249,362 236,960 -76,150 -88,552
OPERATING ACTIVITIES Taxation Grants Housing rents Sales of goods and rendering of services Interest and investment income received Cash inflows from operating activities Cash paid to and on behalf of employees Housing benefits paid out Cash paid to suppliers of goods and services Taxation paid Interest paid Cash outflows from operating activities Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net decrease / (increase) in cash and cash equivalents
Notes
000 -227,399 -1,238,429 -75,710 -524,244 -6,805
000
-2,072,587 562,078 192,749 987,583 2,175 100,348 1,844,933 27. 28. 29. -227,654 338,634 -96,651 14,329
-135,808 -224,360
Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March 21.
-224,360 -210,031
24
CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period. Year ended 31 March 2012 (re-stated) 2010/11 000 -229,895 -1,160,557 -73,002 -305,705 -4,409 -1,773,568 553,430 184,953 702,532 93,816 1,534,731 -238,837 231,443 -82,686 -90,080
OPERATING ACTIVITIES Taxation Grants Housing rents Sales of goods and rendering of services Interest and investment income received Cash inflows from operating activities Cash paid to and on behalf of employees Housing benefits paid out Cash paid to suppliers of goods and services Interest paid Cash outflows from operating activities Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net decrease / (increase) in cash and cash equivalents
Notes
000 -226,015 -1,137,607 -75,710 -358,453 -6,779
000
-1,804,564 561,126 192,749 734,830 99,585 1,588,290 27. 28. 29. -216,274 330,045 -102,138 11,633
-117,384 -207,464
Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March 21.
-207,464 -195,831
25
NOTES TO THE FINANCIAL STATEMENTS

1. Accounting Policies The Annual Accounts for the year ended 31 March 2012 have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2011/12: A Statement of Recommended Practice, (the Code) and the Service Reporting Code of Practice. This is to ensure that the Annual Accounts 'present a true and fair view' of the financial position and transactions of the Council.
1.1 Accruals of Income and Expenditure The revenue and capital accounts have been prepared on an accruals basis in accordance with the Code of Practice. Provision has been made in the relevant accounts for bad and doubtful debts. 1.2 Debt Redemption The Council operates a consolidated loans fund under the terms of the Local Government (Scotland) Act 1975. Capital payments made by services are financed from the loans fund and repaid on an annuity basis. Gains or losses arising on the repurchase or early settlement of borrowing are recognised in the Comprehensive Income and Expenditure Statement in the period during which the repurchase or early settlement is made. Where the repurchase of borrowing is taken with a refinancing or restructuring option, gains or losses are recognised over the life of the replacement borrowing. 1.3 Cash and Cash Equivalents Cash and cash equivalents includes: credit and debit funds held in banks; and investments maturing within three months of the Balance Sheet date. 1.4 Contingent Liabilities Contingent liabilities are not recognised in the accounting statements. Where there is a possible obligation that may require a payment or transfer of economic benefit, this is disclosed in the notes to the financial statements. 1.5 Employee Benefits Accruals of Holiday Leave Cost of services' within the Comprehensive Income and Expenditure Statement includes a charge for annual leave to which employees are entitled, but have not taken, as at the Balance Sheet date. The Council is not required to raise Council Tax to cover the cost of accrued annual leave. These costs are a reconciling item in the Movement in Reserves Statement for the General Fund and Housing Revenue Account balances by way of an adjusting transaction with the employee statutory adjustment account. Pensions The Council participates in two different pension schemes which meet the needs of employees in particular services. Both the schemes provide members with defined benefits related to pay and service. The schemes are as follows: Teachers This is an unfunded scheme administered by the Scottish Public Pensions Agency. The pension cost charged in the accounts is the contribution rate set on the basis of a notional fund. Other Employees Other employees, subject to certain qualifying criteria, are eligible to join the Local Government Pension Scheme (LGPS). The LGPS is a defined benefit statutory scheme, administered in accordance with the Local Government Pension Scheme (Scotland) Regulations 1998, as amended.
26

1. Accounting Policies - continued 1.5 Employee Benefits - continued Pensions - continued Other Employees - continued The Financial Statements have been prepared including pension costs as determined under International Accounting Standard 19 - Employee Benefits (IAS19). The cost of services includes expenditure equivalent to the amount of retirement benefits the Council has committed to during the year. Pensions interest costs and the expected return on pension assets have been charged to 'financing and investment income' in the Comprehensive Income and Expenditure Statement. The pension costs charged to the Comprehensive Income and Expenditure Statement in respect of employees are not equal to contributions paid to the funded scheme for employees. The amount by which pension costs under IAS19 are different from the contributions due under the pension scheme regulations are disclosed in the Movement in Reserves Statement for the General Fund and Housing Revenue Account. Pension assets have been valued at bid value (purchase price), as required under IAS19. Under pension regulations, contribution rates are set to meet 100% of the overall liabilities of the Fund. 1.6 Financial Instruments Financial Liabilities Financial liabilities are initially measured at fair value and carried at their amortised cost. Annual charges to the Comprehensive Income and Expenditure Statement for interest payable are based on the carrying amount of the liability, multiplied by the effective rate of interest for the instrument. For the borrowings that the Council has, this means that the amount presented in the Balance Sheet is the outstanding principal repayable (plus accrued interest) and interest charged to the Comprehensive Income and Expenditure Statement is the amount payable for the year in the loan agreement. Gains and losses on the repurchase or early settlement of borrowing are credited and debited to surplus or deficit on provision of services in the Comprehensive Income and Expenditure Statement in the year of repurchase / settlement. However, where repurchase has taken place as part of a restructuring of the loan portfolio that involves the modification or exchange of existing instruments, the premium or discounts is respectively deducted from or added to the amortised cost of the new loan and the write-down to the Comprehensive Income and Expenditure Statement is spread over the life of the loan by an adjustment to the effective interest rate. Where premiums and discounts have been charged to the Comprehensive Income and Expenditure Statement, regulations allow the impact on the General Fund Balance to be spread over future years. The Council has a policy of spreading the gain / loss over the term that was remaining on the loan against which the premium was payable or discount receivable when it was repaid. The reconciliation of amounts charged to the Comprehensive Income and Expenditure Statement to the net charge against the General Fund Balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in Reserves Statement for the General Fund Balance. Financial Assets Loans and receivables are initially measured at fair value and carried at their amortised cost. Annual credits to the Comprehensive Income and Expenditure Statement for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. For most of the loans that the Council has, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the Comprehensive Income and Expenditure Statement is the amount receivable for the year in the loan agreement. However, the Council has made three loans to a related party at less than market rates (soft loans). When soft loans are made, a loss is recorded in the Comprehensive Income and Expenditure Statement for the present value of the interest that will be foregone over the life of the instrument, resulting in a lower amortised cost than the outstanding principal. Interest is credited at a marginally higher effective rate of interest than the rate receivable from the related party, with the difference serving to increase the amortised cost of the loan in the Balance Sheet.
27

1. Accounting Policies - continued 1.6 Financial Instruments - continued Financial Assets - continued Where assets are identified as impaired because of a likelihood arising from a past event that payments due under the contract will not be made, the asset is written down and a charge made to the Comprehensive Income and Expenditure Statement. Any gains and losses that arise on the de-recognition of the asset are credited / debited to the Comprehensive Income and Expenditure Statement. Surplus funds on behalf of the Council and associated bodies and cash monies of Lothian Pension Funds are now managed by the Council under a formal management agreement in a pooled investment arrangement. While the monies continue to be shown as investments in Lothian Pension Funds' accounts, they are no longer shown as both liabilities and investments in the Council's accounts. Available-for-Sale-Financial Instruments The Council has a significant financial interest in several companies and trusts which have been set up for specific purposes. Details of these appear in note 7 to the Financial Statements. These financial interests have been assessed under the requirements of FRS26 Financial Instruments: Measurement. The Council's investments in Lothian Buses plc, CEC Holdings Limited and tie Limited have been assessed as outwith the scope of FRS26. Unless otherwise stated, the accounts of these companies may be obtained on application to the Chief Financial Officer, Waverley Court, 4 East Market Street, Edinburgh EH8 8BG. 1.7 Government and non-Government Grants and Contributions Revenue Revenue grants and contributions have been included in the financial statements on an accruals basis. Where such funds remain unapplied at the Balance Sheet date, but approval has been given to carry these funds forward to the next financial year, these amounts have been set aside in the General Fund. Capital Capital grants and contributions are recognised in the Comprehensive Income and Expenditure Statement except to the extent there are conditions attached to them that have not been met. Where there are no conditions attached to capital grants and contributions, these funds are a reconciling item in the Movement in Reserves Statement for the General Fund and Housing Revenue Account by way of an adjusting transaction with the capital adjustment account, where expenditure has been incurred and the unapplied capital grants account where expenditure has not been incurred. Where there are outstanding conditions attached to capital grants and contributions that have not been met at the Balance Sheet date, the grant or contribution will be recognised as part of capital grants receipts in advance. Once the condition has been met, the grant or contribution will be transferred from capital grants receipts in advance and recognised as income in the Comprehensive Income and Expenditure Statement, as above. 1.8 Intangible Assets Intangible Assets Intangible fixed assets represent software licences purchased by the Council. Recognition Expenditure on the acquisition, creation or enhancement of intangible fixed assets has been capitalised on an accruals basis. Measurement Intangible fixed assets are initially measured at cost.
28

1. 1.8 Accounting Policies - continued Intangible Assets - continued Depreciation Software licences are depreciated over the period of the licence, commencing in the year after acquisition. Inventories Inventories are measured at the lower of cost and net realisable value. Inventories acquired through a non-exchange transaction are measured at their fair value as at the date of acquisition. Inventories held for distribution at no charge or a nominal charge are measured at the lower of cost and current replacement cost. 1.10 Investment Properties Measurement Investment properties are initially measured at cost. After initial recognition, investment properties are measured at fair value. Any gains or losses arising from a change in the fair value of investment properties are recognised in the Comprehensive Income and Expenditure Statement for the period in which they arise. Revaluation Investment properties are revalued annually. Depreciation Investment properties held at fair value are not depreciated. De-recognition Investment properties are de-recognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits or service potential is expected from its disposal. The gain or loss arising from the retirement or disposal of an investment property is recognised in the 'surplus or deficit on provision of services' within the Comprehensive Income and Expenditure Statement in the period of the retirement or disposal. 1.11 Leases Operating Leases Leased-in Assets Rental payments, net of benefits received, under operating leases are charged to the relevant service on a straight line basis over the life of the lease. Leased-out Assets Rental income received under operating leases is credited to the relevant service in accordance with the terms specified in the lease agreement. Finance Leases Leased-in Assets Finance leases, which have substantially transferred to the authority the benefits and risks of ownership of a non-current asset, are treated as if the asset had been purchased outright. Assets acquired under finance leases are included in non-current assets at the lower of the fair value or the present value of the minimum lease payments. The capital element of the lease is included as obligations under finance leases / creditors.
1.9
29

1. Accounting Policies - continued 1.11 Leases - continued Finance Leases - continued Leased-in Assets - continued The lease rentals comprise capital and interest elements. The capital element is applied to reduce the outstanding obligation and the interest element is charged to revenue on a straight line basis over the terms of the lease. 1.12 Current and Non-Current Assets Held for Sale Current assets held for sale are assets that the Council has identified as surplus to requirement, are being actively marketed and it is expected that the sale will be realised within twelve months of the Balance Sheet date. Non-current assets held for sale are assets that the Council has identified as surplus to requirement, are being actively marketed, but it is not expected that the sale will be realised within twelve months of the Balance Sheet date. Measurement Assets held for sale are measured at the lower of carrying value and fair value less costs to sell at the Balance Sheet date. Where the sale is expected to occur in more than twelve months, the cost is measured at present value. Depreciation Current and non-current assets held for sale are not depreciated. 1.13 Overheads The costs of support services are allocated to direct services. The allocations are made on a basis appropriate to the service provided, in order to match costs to service usage. Certain support service costs are recovered through direct charges during the year. 1.14 Public Private Partnership - School Buildings, Maintenance and Other Facilities Public Private Partnership (PPP) contracts are agreements to receive services, where the responsibility for making available the non-current assets required to provide the services passes to the PPP contractor. As the Council is deemed to control the services that are provided under this scheme and as ownership of the schools and other facilities will pass to the Council at the end of the contracts for no additional charge, the Council carries the non-current assets used under the contracts on its Balance Sheet. Non-current assets recognised on the Balance Sheet are revalued and depreciated in the same way as other assets owned by the Council. The amounts payable to the PPP operators each year are analysed into five elements: fair value of the services received during the year - debited to education services in the Comprehensive Income and Expenditure Statement. finance cost - an interest charge of 7.35% (PPP1 scheme) and 5.004% (PPP2 scheme) on the outstanding balance sheet liability - debited to 'financing and investment income' in the Comprehensive Income and Expenditure Statement. contingent rent - increases in the amount to be paid for the property arising during the contract debited to 'financing and investment income' in the Comprehensive Income and Expenditure Statement. payment towards liability - applied to write down the value of the finance lease on the Balance Sheet. lifecycle replacement costs - recognised as non-current assets on the Balance Sheet.
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1. Accounting Policies - continued 1.15 Property, Plant and Equipment Categories of Assets Property, plant and equipment is categorised into the following classes: Council dwellings Vehicles, plant, furniture and equipment Community assets, e.g. parks Surplus assets (assets that are surplus to requirements, but there are no clear plans to sell these at the current time.) Recognition Expenditure on the acquisition, creation or enhancement of non-current assets has been capitalised on an accruals basis. Measurement Infrastructure, community assets and assets under construction are measured at historical cost. All other classes of property, plant and equipment are measured at fair value. Other land and buildings - fair value is the amount that would be paid for the assets in its existing use. Council dwellings - fair value is measured at existing use value - social housing. Vehicles, plant, furniture and equipment - fair value is the amount equivalent to depreciated historical cost. Depreciation Depreciation is provided on all property, plant and equipment, other than community assets and assets under construction. The Council does not depreciate its non-current assets in the year of acquisition. The Council operates a five-year rolling revaluation programme for assets and provides for depreciation on a straight line basis on the opening book value over the remaining useful life of the asset. Thus the charge to the Comprehensive Income and Expenditure Statement for the year is not impacted by changes in asset value during the year arising from either revaluation or enhancements. Component accounting is applied as part of the revaluation process. As a result, where a building asset is split down into further components for the first time in year, the depreciation charge is based on the opening book value over the opening remaining useful life of the asset rather than subsequent component values and associated lives. The difference is not considered material. Charges to Revenue for use of Non-Current Assets Service revenue accounts, support services and trading accounts are debited with the following amounts to record the real cost of holding non-current assets during the year: depreciation attributable to the assets used by the relevant service. impairment losses attributable to the clear consumption of economic benefits on property, plant and equipment used by the service and other losses where there are no accumulated gains in the Revaluation Reserve against which they can be written off. The Council is not required to raise council tax to cover depreciation or impairment losses. Depreciation and impairment losses are therefore a reconciling item in the Movement in Reserves Statement for the General Fund and Housing Revenue Account by way of an adjusting transaction with the capital adjustment account. Other land and buildings Infrastructure assets, e.g. roads and footways Assets under construction
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1. Accounting Policies - continued 1.15 Property, Plant and Equipment - continued Revaluations Where assets are included in the Balance Sheet at fair value, revaluations are carried out at intervals of no more than five years. The Council operates a rolling programme for revaluations. The determination of fair value of land and buildings is undertaken by the Council's Property Manager (Property Management and Development). De-recognition An asset is de-recognised either on its disposal, or where no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from de-recognition of an asset is included in 'surplus or deficit on the provision of services' within the Comprehensive Income and Expenditure Statement when the asset is de-recognised. The gain or loss on de-recognition of property, plant and equipment assets is a reconciling item in the Movement in Reserves Statement for the General Fund and Housing Revenue Account. Components Component accounting is applied to all assets that comprise land and buildings. Land and buildings are treated as separate components of an asset and accounted for separately. The building component of an asset is separated into further components primarily to those with a carrying value of over 5 million approximately. This policy is also applied to buildings with a carrying value of less than 5 million where enhancement expenditure is considered significant in relation to the overall carrying value of the building component. Where it is necessary to break a building down into further components, the following categories are applied: Structural - includes external and internal walls, traditional roofing, doors, etc. Non traditional roofing - includes flat roof, non-traditional roof coverings and industrial type roofs. Finishes - includes doors, windows and room finishes. Mechanical and electrical services - includes water, heat, ventilation, electrical, lifts, fire and communications. Fittings and furnishings - includes fittings, furnishings and sanitary appliances. 1.16 Heritage Assets Categories of Assets Heritage assets comprise the following: Monuments and statues Archival collections Museum and gallery collections Intangible heritage assets represent three private vehicle registration plates. It has not been practical or possible to split out all heritage assets belonging to the common good fund, charities or trusts. Therefore, the Council's Balance Sheet may hold elements of heritage assets that belong to other entities. Recognition Expenditure on the acquisition, creation or enhancement of heritage assets has been capitalised on an accruals basis. Civic regalia and artefacts Libraries special collections
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1. Accounting Policies - continued 1.16 Heritage assets - continued Measurement Heritage asset valuations may be made by any method that is appropriate and relevant. Furthermore valuations need not be carried out by external valuers and there is no prescribed minimum period between valuations. The following measurement bases have been applied to heritage assets based on the most relevant and appropriate information available. This is set in the context where it is not practicable to obtain up to date valuations for all heritage assets at a cost which is commensurate with the benefits to users of the Council's financial statements. Monuments and statues Civic regalia and artefacts Archival collections Libraries special collections Museum and gallery collections Private vehicle registration plates Historic value Insurance purposes valuation Insurance purposes valuation, based on restoration costs only Insurance purposes valuation Insurance purposes valuation Cost or current value information is not readily available, therefore these assets have not been recognised on the Council's Balance Sheet
Depreciation Heritage assets are deemed to have indeterminate lives and a high residual value; hence it is not considered appropriate to charge depreciation. 1.17 Provisions The value of provisions is based upon the Council's obligations arising from past events, the probability that a transfer of economic benefit will take place and a reasonable estimate of the obligation. 1.18 Reserves Reserves held on the Balance Sheet are classified as either usable or unusable reserves. Usable reserves hold monies that can be applied to fund expenditure or reduce Council Tax. Unusable reserves cannot be applied to fund expenditure. Usable Reserves The Council operates the following usable reserves: Capital receipts reserve - this represents capital receipts available to finance capital expenditure in future years. Capital grants unapplied account - holds capital grants and contributions that have been received towards specific works that have yet to be completed. Capital fund - under Schedule 3 of the Local Government (Scotland) Act 1975, certain receipts derived from the sale of property may also be used to create a capital fund "to be used for defraying any expenditure of the authority to which capital is properly applicable, or in providing money for repayment of the principal of loans". Renewal and repairs fund - holds monies set aside for the renewal and repair of Council property. This fund is operated under the terms of Schedule 3 to the Local Government (Scotland) Act 1975. General Fund - held to mitigate financial consequences of risks and other events impacting on the Council's resources. Monies within the General Fund can be earmarked for specific purposes.
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1. Accounting Policies - continued 1.18 Reserves - continued Unusable Reserves The Council operates the following unusable reserves: Revaluation reserve - holds unrealised gains arising since 1 April 2007 from holding non-current assets. Capital adjustment account - provides a mechanism between the different rates at which assets are depreciated and are financed through the capital controls system. Financial instruments adjustment account - provides a mechanism between the different rates at which gains and losses (such as premiums on the early repayment of debt) are recognised under the Code and are required by statute to be met from the General Fund. Pension reserve - represents the net monies which the Council requires to meet its pension liability, as calculated under IAS19, Employee Benefits. The Council operates a pensions reserve fund under the terms of the Local Government Pension Reserve Fund (Scotland) Regulations 2003. Employee statutory adjustment account - represents the net monies which the Council requires to meet its short-term compensated absences for employees under IAS19. 1.19 Revenue Expenditure Funded from Capital Under Statute Expenditure that may be capitalised under statutory provisions that does not result in the creation of assets for the Council has been charged to the 'net cost of services' in the Comprehensive Income and Expenditure Statement. These costs are a reconciling item in the Movement in Reserves Statement for the General Fund by way of an adjusting transaction with the capital adjustment account. 1.20 Value Added Tax Value added tax (VAT) is excluded from the financial statements unless it is not recoverable from HM Revenues and Customs. 1.21 Group Account Consolidation Group accounts have been prepared on the following basis: Accounting policies for group members have been aligned where possible. The following methods of consolidation have been used: Subsidiaries - line-by-line basis; Associates - equity method. Lothian Buses' and CEC Holdings Limited's reporting periods are to 31 December. As this is within three months of the Council's reporting period (to 31 March), no consolidation adjustments have been made. Inter-company transactions have been eliminated on consolidation. Minority interests have been disclosed separately within the Group Balance Sheet and in Note 7.1 to the Financial Statements. Group members' financial statements have been prepared on an accruals basis, with the exception of the International Conference Centre Income Trust and International Conference Centre Expenditure Trust, which have been prepared on a cash basis.
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2. Accounting Standards that have been Issued but not yet Adopted Amendments have been made to IFRS7 - Financial Instruments: Disclosures (transfers of financial assets). These were issued in October 2010 and are intended to assist users of financial statements evaluate the risk exposures that relate to transfers of financial assets and the effect of those risks on the Council's financial position. The Council is not aware of any transfers that are covered by the change to IFRS7. 3. Judgements Made in Applying Accounting Policies In applying the accounting policies set out in Note 1 to the Financial Statements, the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events. The most significant judgements made in these Financial Statements are detailed below:
3.1 Tram Project Mediation has been undertaken in relation to the Edinburgh Tram project. The Council has now signed a settlement agreement with the contractor for a reduced project scope, from the airport to St Andrew Square / York Place, with an overall budget of 776m. 3.2 Provision of School Buildings The Council is deemed to control the services provided under the Public Private Partnership agreements (PPP1 and PPP2) for the provision of school buildings, maintenance and other facilities with Edinburgh Schools Partnership (PPP1) and Axiom Education Limited (PPP2). The accounting policies for public private partnerships have been applied to these arrangements and the schools (valued at net book value of 519.396m at 31 March 2012) are recognised as Property, Plant and Equipment on the Council's Balance Sheet. 3.3 Group Membership The Council has an interest in a number of subsidiary and associate companies, joint ventures and trusts. Full details of these interests are shown in note 7 to the Financial Statements. The most significant of these companies in terms of the size of trading operations and other factors are included in the Group Accounts. The following companies have been assessed as subsidiaries of the Council: Shareholding CEC Holdings Limited Lothian Buses plc tie Limited Edinburgh Convention Bureau Edinburgh, Lothian and Scottish Borders Screen Industries Office Limited Marketing Edinburgh Limited Pacific Shelf 825 Limited 100.00% 91.01% 100.00% 100.00% 100.00% 100.00% 100.00%
The following companies, trusts and joint boards have been assessed as associates of the Council: Edinburgh Leisure Festival City Theatres Trust International Conference Centre Income Trust International Conference Centre Exp. Trust Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Lothian Valuation Joint Board 33.33% 36.36% 100.00% 100.00% 53.17% 54.67% 61.22% Board representation Board representation
Funding percentage Funding percentage Funding percentage
In addition 100% of the Common Good accounts have been consolidated.

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4. Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Financial Statements contain estimated figures that are based on assumptions made by the Council about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The following table details uncertainties on assumptions and estimates, and outlines the potential effect if actual results differ from the assumptions made. Item Property, Plant and Equipment Uncertainty Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets. A reduction in spending on repairs and maintenance would bring into doubt the useful lives assigned to the assets. Effect if Actual Results Differ from Assumptions If the useful life of assets is reduced, depreciation increases and the carrying value of the assets falls. It is estimated that the annual depreciation charge would increase and the carrying value would fall by 10.307m for each year that useful lives were reduced.
Provisions
The Council has made a provision of Should the settlement values increase by 23.968m in respect of the remainder of 10% this would have the effect of adding anticipated equal pay settlements. This is 2.397m to the provision required. based on the number of potential claimants and assumes similar settlement terms to that achieved previously. There is uncertainty surrounding both of these assumptions.
Pensions Liability
Estimation of the net liability to pay pensions The effects on the net pensions liability of changes in individual assumptions can be depends on a number of complex measured. judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. A firm of consulting actuaries is engaged to provide the Council with expert advice about the assumptions to be applied. At 31 March, the Council had a balance of sundry debtors of 27.210m. A review of significant balances suggested that an impairment of doubtful debts of 3.763m (14%) was appropriate. In the current economic climate it is not certain that this will be sufficient. The Council's accounts are prepared on the assumption that VAT charged on its purchases is fully recoverable and that it will not become partially exempt. If collection rates were to deteriorate, a doubling of the amount of the impairment of doubtful debts would require an additional 3.763m to be set aside as an allowance.
Arrears
VAT Recovery Status
If the Council were to exceed its 5% de minimis level, a minimum repayment of 5.811m would be due to HM Revenues and Customs.
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4. Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty continued Effect if Actual Results Differ Item Uncertainty from Assumptions Council Tax Arrears The Council makes an assumption on If collection rates were to deteriorate, the level of Council Tax that will be an increase of 1% in the amount to be collected over a number of years. impaired would require an additional The Council currently assumes that 2.403m to be set aside as an 96.3% of Council Tax will be allowance. collected. An impairment for doubtful debts of 8.917m has been provided for. In the current economic climate it is not certain that this would be sufficient. House Rent Arrears At 31 March, the Council had a balance of housing rent arrears of 2.091m. A review of significant balances suggested that an impairment of doubtful debts of 1.340m (64%) was appropriate. In the current economic climate it is not certain that this will be sufficient. If collection rates were to deteriorate, an increase of 10% in the amount to be impaired would require an additional 0.209m to be set aside as an allowance.
Edinburgh Trams Project Following mediation, the Council signed a settlement agreement with the contractor in September 2011 for a reduced project scope, with an overall budget of 776m.
The revenue impact on the Council of borrowing the additional 231m to complete the project will be 15m per annum. Each additional 10m of borrowing over and above this sum would cost the Council an additional 0.664m per annum, based on a thirty year repayment period.
Long-Term Contracts
If inflation were to increase by 1%, this The Council's approved budget provides for inflationary uplifts on long-would result in an additional cost of term contracts. 0.62m per annum.
This list does not include assets and liabilities that are carried at fair value based on recently observed market prices. 5. Material Items of Income and Expense Provisions - the Council used 12.924m of the provision previously set aside for equal pay to offset costs arising during the year. The provision set aside for equal pay was reduced by 11.042m, based on the current level of settlements. The effect of this reduction is included within exceptional items in the Comprehensive Income and Expenditure Statement. Events After the Balance Sheet Date New Edinburgh Limited, a 50% owned subsidiary of CEC Holdings Limited, was placed into administration on 9 July 2012. There was no financial impact on the value of the Council's investment in CEC Holdings Limited. The Police and Fire Reform (Scotland) Act 2012 received royal assent on 7 August 2012. Responsibility for Police and Fire and Rescue Services will transfer from local government to new central government bodies on 1 April 2013. The full impact of the reform process is currently being assessed.
6.
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7. Subsidiaries and Associates The Council holds shares in various trading companies, either as a controlling or minority shareholder. The Council is also represented on the Boards of various companies that are limited by guarantee and have no share capital. It participates in these companies by means of Board membership and the provision of funding and management support. Unless otherwise stated, the accounts of the companies may be obtained on application to the Chief Financial Officer, Waverley Court, 4 East Market Street, Edinburgh EH8 8BG. The following entities have a significant impact on the Council's operations and have been consolidated into the Group Accounts: Subsidiaries: CEC Holdings Limited Lothian Buses plc tie Limited Associates: Edinburgh Leisure Festival City Theatres Trust Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Lothian Valuation Joint Board Common Good Trusts: International Conference Centre Income Trust International Conference Centre Expenditure Trust The following companies are not consolidated into the Group Accounts. An assessment has been carried out on these companies and their activities and the level of Council control. These companies are not considered to be a material part of the Group and have therefore been excluded from the Group Accounts: Capital City Partnership Limited (Council became the sole member January 2012) Common Repairs Grant Trust Edinburgh Convention Bureau (voluntary strike-off initiated January 2012) Edinburgh, Lothian and Scottish Borders Screen Industries Office Limited (wound up May 2012) Pacific Shelf 825 Limited Marketing Edinburgh Limited (new company) 7.1 Analysis of Minority Interest Shares in the Group Comprehensive Income and Expenditure Statement Attributable shares of income and expenditure 2011/12 (Surplus) or Deficit on the Provision of Services Other Comprehensive Income and Expenditure Authority 000 41,968 60,758 102,726 2010/11 Comparative Data (Surplus) or Deficit on the Provision of Services Other Comprehensive Income and Expenditure 000 -323,357 -287,308 -610,665 7.2 Minority Interests 000 -490 727 237 000 -2,338 -913 -3,251 Total 000 41,478 61,485 102,963 000 -325,695 -288,221 -613,916
Subsidiary Companies Capital City Partnership The company is a private company limited by guarantee. It is a charitable organisation. From January 2012 the Council became the sole member of the company. The principal activities of the company are to promote community regeneration, by bringing together key statutory, voluntary, community and private sector bodies.
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7. Subsidiaries and Associates - continued 7.2 Subsidiary Companies Capital City Partnership - continued The most recent audited results of the company are as follows: Net assets Net (loss) / profit before taxation Retained profit carried forward
31.03.2012 000 961 -871 971
31.03.2011 000 1,825 328 1,564
CEC Holdings Limited The principal activities of the company are property development and the operation of an international conference centre. The company is wholly owned by the City of Edinburgh Council. The most recent audited results of the company are as follows: Net assets Net loss before taxation Retained loss carried forward 31.12.2011 000 17,290 -4,487 -52,903 31.12.2010 000 17,869 -6,791 -50,090
The Council inherited its interest in CEC Holdings Limited following the reorganisation of local government in 1996. It is considered that this was on an acquisition basis, however, as no consideration was given for these interests, there was no goodwill involved in these transactions. Edinburgh Convention Bureau The company's assets have been transferred to Marketing Edinburgh Limited and the company was wound up in June 2012. Edinburgh, Lothian and Scottish Borders Screen Industries Office Limited The company's assets have been transferred to Marketing Edinburgh Limited and the company was wound up in May 2012. Lothian Buses plc The City of Edinburgh Council is the major shareholder in Lothian Buses plc, a company incorporated to operate buses in the City of Edinburgh and its surrounding area. The Council's shareholding comprises 5,824,139 (91.01%) 1 ordinary shares (fully paid). (re-stated) The most recent audited results of the company are as follows: 31.12.2011 31.12.2010 000 000 69,346 51,577 Net assets Net profit before taxation Profit and loss account reserve Dividend -9,792 56,190 3,296 -30,283 38,281 2,198
The Council inherited its interest in Lothian Buses plc, following the reorganisation of local government in 1996. It is considered that this was on an acquisition basis, however, as no consideration was given for these interests, there was no goodwill involved in these transactions. A copy of the latest accounts can be obtained by writing to the Finance Director, Lothian Buses plc, Annandale Street, Edinburgh, EH7 4AZ. Marketing Edinburgh Limited The company is a private company limited by guarantee. The Council is the sole member. The principal activities of the company are to increase economic activity within the Edinburgh areas by promoting it as a destination to live, work, study etc. The assets of Edinburgh Convention Bureau and Edinburgh, Lothian and Scottish Borders Screen Industries Office Limited were transferred to Capital City Partnership in 2011/12. The company's accounts were not available at the time these Financial Statements were issued.
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7. Subsidiaries and Associates - continued 7.2 Subsidiary Companies - continued Pacific Shelf 825 Limited The City of Edinburgh Council wholly owns 100% of the company. The principal activity of the company during the period was leasing land and property. The company's assets have been transferred to Shawfair Land Limited, a subsidiary of CEC Holdings Limited. The company will be wound up in 2012/13 tie Limited The principal activity of the company is to promote, support and / or effect the development, procurement and implementation of projects defined in, or referred to in the Local Transport Strategy of the City of Edinburgh Council. The Council owns 100% (1,000 shares) of the issued share capital through Transport Edinburgh Limited, a dormant company. The most recent unaudited results of the company are as follows: Turnover Net assets / ( liabilities) Net profit before taxation Retained profit / (loss) carried forward 31.03.2012 000 (117,492) 1 (196) 0 31.03.2011 000 (63,951) (521) (951) (522)
The company is in the process of being wound up, with most of the activities transferring to the Council and Lothian Buses. 7.3 Associates Edinburgh Leisure This is a non-profit-distributing company limited by guarantee and registered as a Charity. Each member has undertaken to contribute an amount not exceeding 1 towards any deficit arising in the event of the company being wound up. The principal activity of the company is the provision of recreation and leisure facilities. The City of Edinburgh Council is represented on the company's Board of Directors and contributes a substantial sum to the company towards the cost of operating sport and leisure facilities. The City of Edinburgh Council leases its sport and leisure centres to the company. The most recent unaudited results of the company are as follows: Net (liabilities) / assets Net operating (income) Fund balances carried forward 31.03.2012 000 724 (890) (724) 31.03.2011 000 7,194 (5,153) (7,194)
Although Edinburgh Leisure is included in the Group Accounts, due to the nature of its activities being a core part of the Council's policy, the Council has no legal interest in the assets or liabilities of the company. The group share of the results of Edinburgh Leisure, based on 33.33% (2010/11 33.33% ) Board Representation, is as follows: 31.03.2012 31.03.2011 000 000 Incoming resources -8,918 -8,565 Net loss / (surplus) Net assets / (liabilities) Total usable reserves -2,156 241 -241 -1,718 2,398 -2,398
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7. Subsidiaries and Associates - continued 7.3 Associates - continued Festival City Theatres Trust This is a non-profit-distributing company limited by guarantee and registered as a Charity. The City of Edinburgh Council is represented on the trust's board of directors and gives substantial financial assistance. The City of Edinburgh Council leases the King's Theatre and the Festival Theatre to the trust. The most recent unaudited results of the company are as follows: Net assets Net outgoing resources Fund balances carried forward 31.03.2012 000 4,576 382 (4,576) 31.03.2011 000 5,054 1,400 (5,054)
Although Festival City Theatres Trust is included in the Group Accounts, due to the nature of its activities being a core part of the Council's policy, the Council has no legal interest in the assets or liabilities of the company. The group share of the results of the Festival City Theatres Trust, based on 36.36% (2010/11 33.33%) Board representation, is as follows: 31.03.2012 31.03.2011 000 000 Incoming resources Net outgoing resources Net assets Total usable reserves -2,464 139 1,664 -1,664 -2,196 467 1,685 -1,685
Lothian and Borders Fire and Rescue Board The South Eastern Combined Fire Services Area Administration Scheme 1995 requires the Joint Board to comprise 18 members appointed from the constituent authorities as follows: two members from East Lothian, Midlothian and Scottish Borders Councils; three from West Lothian Council; and nine from the City of Edinburgh Council. Costs are apportioned according to the estimated cost of service provision within the area of each constituent authority. The group share of the results of the Lothian and Borders Fire and Rescue Board, based on 53.17% (2010/11 53.24%) funding percentage is as follows: Restated 2011/12 2010/11 000 000 Funding - requisitions -21,051 -22,753 Other income -7,022 -4,722 Total income Deficit / (surplus) for the year Net liabilities Usable reserves Unusable reserves Total reserves -28,073 11,913 -177,178 -1,251 178,429 177,178 -27,475 -10,816 -158,685 -1,877 160,562 158,685
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7. Subsidiaries and Associates - continued 7.3 Associates - continued Lothian and Borders Police Board The Lothian and Borders Combined Police Area Amalgamation Scheme 1995 requires the Joint Board to comprise 18 members appointed from the constituency authorities as follows: two members from East Lothian, Midlothian and Scottish Borders Councils; three from West Lothian Council; and nine from the City of Edinburgh Council. The Amalgamation Scheme 1995 provides that the estimated expenditure of the Board in each financial year shall be apportioned among constituent authorities according to the cost of the provision of services by Lothian and Borders Police within the area of each constituent authority. The group share of the results of the Lothian and Borders Police Board, based on 54.67% (2010/11 55.80%) funding percentage is as follows: Restated 2011/12 2010/11 000 000 Funding - requisitions -43,722 -46,846 Other income -81,804 -109,800 Total income (Surplus) / deficit for the year Net liabilities Usable reserves Unusable reserves Total reserves -125,526 44,909 -1,000,232 -4,131 1,004,363 1,000,232 -156,646 -61,113 -860,881 -6,136 867,017 860,881
Lothian Valuation Joint Board The Lothian Valuation Joint Board provides Valuation Appeals, Lands Valuation, Electoral Registration and Council Tax Valuation Services. The Board comprises 16 members of whom nine are elected by the City of Edinburgh, three by West Lothian and two each by East and Midlothian Councils. Costs incurred by the Lothian Valuation Joint Board are apportioned in accordance with the nondomestic rateable subjects and dwellings valued for council tax within the areas of each constituent authority. The group share of the results of the Lothian Valuation Joint Board, based on 61.22% (2010/11 61.57%) funding percentage is as follows: 2011/12 2010/11 000 000 Funding - requisitions -3,744 -3,780 Other income -199 -44 Total income Surplus for the year Net liabilities Usable reserves Unusable reserves Total reserves -3,943 -140 -2,523 0 2,523 2,523 -3,824 -2,098 -2,787 0 2,787 2,787
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7. Subsidiaries and Associates - continued 7.4 Audit Opinions noted on the Accounts of the Companies Unless otherwise indicated, all the companies noted have an unqualified audit opinion. 7.5 Shareholder Support to Council Companies A number of companies within the group are currently dependent on the continued financial support of the Council. The companies are EICC Limited, a subsidiary of CEC Holdings Limited - the Council owns 100% of the shares in CEC Holdings Limited, Festival City Theatres Trust and Edinburgh Leisure. 7.6 Financial Impact of Consolidation The effect of inclusion of subsidiaries and associates on the Group Balance Sheet is to decrease both reserves and net assets by 1,057.494m (2010/11 895.019m) representing the Council's share of the realisable surpluses or deficits in these companies. As noted in the foreword to the accounts, the financial impact on consolidation of the group mainly arises from the inclusion of pension liabilities. This is a snapshot of the position at 31 March 2012. The actuarial valuation, which takes account of the longer term view, will consider the appropriate employers' contribution rates and these together with employee contributions and revenues generated from fund investments will be utilised to meet the financing of these liabilities. 8. Trusts Common Repairs Grants Trust This Trust was set up to hold funds provided by the City of Edinburgh Council and by private owners for the grant-aided repair of multiple-ownership housing in the city. The balance of unexpended funds held at 31 March 2012 was 0.536m (2011 0.543m). International Conference Centre Expenditure Trust This Trust was set up to hold funds provided by the Council for its development of the Edinburgh International Conference Centre. The balance of unexpended funds held at 31 March 2012 was 5.252m (2011 4.006m). The increase in the balance of 1.246m from last year is due to an approved transfer of 1.202m from the International Conference Centre Income Trust to provide a sinking fund to meet capital expenditure on the Edinburgh International Conference Centre (EICC) and interest accrued on the fund during the year of 0.044m. International Conference Centre Income Trust This Trust was set up to hold funds received from the sale of land at the Edinburgh International Conference Centre site, pending their use for development and other costs of the centre. The balance of unexpended funds held at 31 March 2012 was 9.432m (2011 14.520m). The decrease of 5.088m in the balance from last year comprises 3.559m for payment for construction and development costs of the EICC extension and office development in Morrison Street; 1.202m transferred to the International Conference Centre Expenditure Trust; a further investment of 0.452m in EICC operations less interest received during the year of 0.125m. 9. Adjustments Between Accounting Basis and Funding Basis Under Regulations This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure.
43

9. Adjustments Between Accounting Basis and Funding Basis Under Regulations - continued Usable Reserves General Fund Balance 000 Housing Revenue Account Balance 000 Capital Receipts Reserve 000
2011/12 Adjustments primarily involving the Capital Adjustment Account Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES) Charges for depreciation and impairment of non-current assets Movements in the market value of investment properties Amortisation of intangible assets Capital grants and contributions applied Revenue expenditure funded from capital under statute Insertion of items not debited or credited to the CIES Statutory provision for the financing of capital investment Capital expenditure charged against General Fund and HRA balances Adjustments primarily involving the Capital Grant Unapplied Account Application of grants to capital financing transferred to the Capital Adjustment Account Adjustments primarily involving the Capital Receipts Reserve Transfer of cash sale proceeds credited as part of the gain / loss on disposal of assets Use of the Capital Receipts Reserve to finance new capital expenditure Adjustments primarily involving the Financial Instruments Adjustment Account Amount by which finance costs charged are different from finance costs chargeable in the year in accordance with statutory requirements Adjustments primarily involving the Pensions Reserve Reversal of items relating to retirement benefits debited or credited to the CIES Employer's pension contributions and direct payments to pensioners payable in the year Adjustments primarily involving the Employee Statutory Adjustment Account Amount by which officer remuneration charges to the CIES are different from remuneration chargeable in the year in accordance with statutory requirements Total Adjustments
-146,795 -168 -1,621 61,084 -33,811 62,542 33,811
-27,163 0 0 3,893 0 17,787 0
0 0 0 0 0 0 0
2,759 0
-726 0
0 8,421
1,054
399
-40,456 61,055
-318 565
0 0
7,180
-44
6,634
-5,607
8,421
44

9. Adjustments Between Accounting Basis and Funding Basis Under Regulations Usable Reserves Capital Grants Unapplied Account 000 Movement in Unusable Reserves 000
2011/12 Adjustments primarily involving the Capital Adjustment Account Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES) Charges for depreciation and impairment of non-current assets Movements in the market value of investment properties Amortisation of intangible assets Capital grants and contributions applied Revenue expenditure funded from capital under statute Insertion of items not debited or credited to the CIES Statutory provision for the financing of capital investment Capital expenditure charged against General Fund and HRA balances Adjustments primarily involving the Capital Grant Unapplied Account Application of grants to capital financing transferred to the Capital Adjustment Account Adjustments primarily involving the Capital Receipts Reserve Transfer of cash sale proceeds credited as part of the gain / loss on disposal of assets Use of the Capital Receipts Reserve to finance new capital expenditure Adjustments primarily involving the Financial Instruments Adjustment Account Amount by which finance costs charged are different from finance costs chargeable in the year in accordance with statutory requirements Adjustments primarily involving the Pensions Reserve Reversal of items relating to retirement benefits debited or credited to the CIES Employer's pension contributions and direct payments to pensioners payable in the year Adjustments primarily involving the Employee Statutory Adjustment Account Amount by which officer remuneration charges to the CIES are different from remuneration chargeable in the year in accordance with statutory requirements Total Adjustments
Capital Fund 000
0 0 0 -6,274 0 0 0
0 0 0 0 0 0 0
173,958 168 1,621 -58,703 33,811 -80,329 -33,811
282
99
-381
0 0
0 0
-2,033 -8,421
-1,453
0 0
0 0
40,774 -61,620
-7,136
-5,992
99
-3,555
45

9. Adjustments Between Accounting Basis and Funding Basis Under Regulations - continued Usable Reserves General Fund Balance 000 Housing Revenue Account Balance 000 Capital Receipts Reserve 000
2010/11 Comparative Data Adjustments primarily involving the Capital Adjustment Account Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES) Charges for depreciation and impairment of non-current assets Movements in the market value of investment properties Amortisation of intangible assets Capital grants and contributions applied Revenue expenditure funded from capital under statute Movements in donated assets Insertion of items not debited or credited to the CIES Statutory provision for the financing of capital investment Capital expenditure charged against General Fund and HRA balances Adjustments primarily involving the Capital Grant Unapplied Account Application of grants to capital financing transferred to the Capital Adjustment Account Adjustments primarily involving the Capital Receipts Reserve Transfer of cash sale proceeds credited as part of the gain / loss on disposal of assets Use of the Capital Receipts Reserve to finance new capital expenditure Adjustments primarily involving the Financial Instruments Adjustment Account Amount by which finance costs charged are different from finance costs chargeable in the year in accordance with statutory requirements Adjustments primarily involving the Pensions Reserve Reversal of items relating to retirement benefits debited or credited to the CIES Employer's pension contributions and direct payments to pensioners payable in the year Adjustments primarily involving the Employee Statutory Adjustment Account Amount by which officer remuneration charges to the CIES are different from remuneration chargeable in the year in accordance with statutory requirements Total Adjustments
-134,267 61 -262 134,318 -44,820 171 59,443 44,820
-36,147 0 0 1,158 0 0 17,483 0
0 0 0 0 0 0 0 0
1,730 0
-863 0
0 8,435
785
289
120,853 58,018
3,113 480
0 0
-451
41
240,399
-14,446
8,435
46

9. Adjustments Between Accounting Basis and Funding Basis Under Regulations Usable Reserves Capital Grants Unapplied Account 000 Movement in Unusable Reserves 000
2010/11 Comparative Data Adjustments primarily involving the Capital Adjustment Account Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES) Charges for depreciation and impairment of non-current assets Movements in the market value of investment properties Amortisation of intangible assets Capital grants and contributions applied Revenue expenditure funded from capital under statute Movements in donated assets Insertion of items not debited or credited to the CIES Statutory provision for the financing of capital investment Capital expenditure charged against General Fund and HRA balances Adjustments primarily involving the Capital Grant Unapplied Account Application of grants to capital financing transferred to the Capital Adjustment Account Adjustments primarily involving the Capital Receipts Reserve Transfer of cash sale proceeds credited as part of the gain / loss on disposal of assets Use of the Capital Receipts Reserve to finance new capital expenditure Adjustments primarily involving the Financial Instruments Adjustment Account Amount by which finance costs charged are different from finance costs chargeable in the year in accordance with statutory requirements Adjustments primarily involving the Pensions Reserve Reversal of items relating to retirement benefits debited or credited to the CIES Employer's pension contributions and direct payments to pensioners payable in the year Adjustments primarily involving the Employee Statutory Adjustment Account Amount by which officer remuneration charges to the CIES are different from remuneration chargeable in the year in accordance with statutory requirements Total Adjustments
Capital Fund 000
0 0 0 -478 0 0 0 0
0 0 0 0 0 0 0 0
170,414 -61 262 -134,998 44,820 -171 -76,926 -44,820
26,144
164
-26,308
0 0
0 0
-867 -8,435
-1,074
0 0
0 0
-123,966 -58,498
410
25,666
164
-260,218
47

10. Usable Reserves 10.1 Transfers to and from Usable Reserves This note sets out the amounts set aside in the Group's and the Council's usable reserves and the amounts posted back from these reserves to meet expenditure during the year. Comparative data is included for 2010/11. Net Net Balance Transfers Transfers Balance at Out In at 01.04.10 2010/11 2010/11 31.03.11 000 000 000 000 Group Reserves Subsidiaries CEC Holdings Limited 45,340 4,750 0 50,090 Revenue reserves Capital grants unapplied account Lothian Buses Revenue reserves Tie Limited Revenue reserves Capital grants unapplied account Total Usable Reserves - Subsidiaries Associates and Joint Ventures Common Good Fund Earmarked revenue reserve Edinburgh Leisure Capital contribution Earmarked revenue reserve Revenue reserves International Conference Centre Trusts Income Trust Expenditure Trust Festival City Theatres Trust Earmarked capital reserve Revenue reserves Lothian and Borders Fire and Rescue Board Earmarked capital reserve Capital Grants Unapplied Account Revenue reserves Lothian and Borders Police Board Earmarked capital reserve Capital Grants Unapplied Account Revenue reserves Total Usable Reserves - Associates and Joint Ventures Total Usable Reserves - Subsidiaries, Associates and Joint Ventures
48
0 4,986 2,206 -1,341 51,191
0 0 0 552 5,302
-7,122 -33,291 -1,684 0 -42,097
-7,122 -28,305 522 -789 14,396
-1,637 -144 -180 1,037 -26,231 -601 -2,453 147 -44 0 -2,118 0 0 -6,025
6 144 0 0 11,711 0 416 204 0 0 444 0 0 119
0 0 -189 -3,066 0 -3,405 0 0 -7 -152 0 -120 -109 0
-1,631 0 -369 -2,029 -14,520 -4,006 -2,037 351 -51 -152 -1,674 -120 -109 -5,906
-38,249
13,044
-7,048
-32,253
12,942
18,346
-49,145
-17,857

10. Usable Reserves - continued 10.1 Transfers to and from Usable Reserves - continued Net Balance Transfers at Out 01.04.11 2011/12 000 000 Group Reserves Subsidiaries CEC Holdings Limited Revenue reserves Capital grants unapplied account Lothian Buses Revenue reserves Tie Limited Revenue reserves Capital grants unapplied account Total Usable Reserves - Subsidiaries Associates and Joint Ventures Common Good Fund Earmarked revenue reserve Edinburgh Leisure Capital contribution Earmarked revenue reserve Revenue reserves International Conference Centre Trusts Income Trust Expenditure Trust Festival City Theatres Trust Earmarked capital reserve Revenue reserves Lothian and Borders Fire and Rescue Board Earmarked capital reserve Capital Grants Unapplied Account Capital Fund Revenue reserves Lothian and Borders Police Board Earmarked capital reserve Capital Grants Unapplied Account Revenue reserves Total Usable Reserves - Associates and Joint Ventures Total Usable Reserves - Subsidiaries, Associates and Joint Ventures
49
Net Transfers In 2011/12 000
Balance at 31.03.12 000
50,090 -7,122 -28,305 522 -789 14,396
2,763 536 0 0 0 3,299
0 0 -22,836 -522 152 -23,206
52,853 -6,586 -51,141 0 -637 -5,511
-1,631 0 -369 -2,029 -14,520 -4,006 -2,037 351 -51 -152 0 -1,674 -120 -109 -5,906 -32,253
7 0 3 2,153 5,088 0 47 0 51 17 0 627 120 3 1,881 9,997
0 0 0 0 0 -1,245 0 -25 0 0 -69 0 0 0 0 -1,339
-1,624 0 -366 124 -9,432 -5,251 -1,990 326 0 -135 -69 -1,047 0 -106 -4,025 -23,595
-17,857
13,296
-24,545
-29,106

10. Usable Reserves - continued 10.1 Transfers to and from Usable Reserves - continued Balance at 01.04.10 000 Council's Usable Reserves General Fund Unallocated General Fund Balances held by schools under Devolved School Management (DSM) Balances set aside under budget flexibility scheme Contingency funding - priority outcomes Dilapidations fund Energy efficiency fund Funding set aside for equal pay liabilities Insurance Fund Licensing Income Recycling balances Revenue grants and contributions received in advance of planned expenditure Savings in the BT contract set aside for IT projects Second home discounts on Council Tax set aside for payments to registered social landlords Spend to Save Fund Other earmarked balances Surplus on Housing Revenue Account transferred to Renewal and Repairs Fund Total General Fund Housing Revenue Account Balance Renewal and Repairs Fund Capital Fund Capital Receipts Reserve Capital Grants Unapplied Account Total Usable Reserves - Council Transfers Out 2010/11 000 Transfers In 2010/11 000 Balance at 31.03.11 000
-9,025 -1,000 -5,597 0 -734 -679 -13,800 -8,462 -908 -4,847 -18,380 -1,051 -5,177 -2,837 -616 0 -73,113 0 -13,779 -22,467 0 -27,207 -136,566
1,614 0 3,416 0 47 166 5,158 0 99 600 8,275 3,463 0 1,833 0 1,614 26,285 1,614 48 6,174 8,435 26,144 68,700
-5,614 -900 -1,014 -6,643 -3,780 -179 -59 -1,688 -177 -5,601 -8,367 -3,717 -2,944 -479 -30 -1,614 -42,806 -1,614 -1,673 -97 -8,435 -478 -55,103
-13,025 -1,900 -3,195 -6,643 -4,467 -692 -8,701 -10,150 -986 -9,848 -18,472 -1,305 -8,121 -1,483 -646 0 -89,634 0 -15,404 -16,390 0 -1,541 -122,969
Total Usable Reserves - Group
-123,624
87,046
-104,248
-140,826
50

10. Usable Reserves - continued 10.1 Transfers to and from Usable Reserves - continued Balance Inter-Fund Transfers at Transfer Out 01.04.11 01.04.11 2011/12 000 000 000 General Fund Unallocated General Fund Balances held by schools under DSM Balances set aside under budget flexibility Contingency funding - priority outcomes Dilapidations fund Energy efficiency fund Funding set aside for equal pay liabilities Insurance Fund Licensing Income Recycling balances Revenue grants and contributions received in advance of planned expend. Savings in the BT contract set aside for IT projects Second home discounts on Council Tax set aside for payments to registered social Spend to Save Fund Other earmarked balances Surplus on Housing Revenue Account transferred to Renewal and Repairs Fund Total General Fund Housing Revenue Account Balance Renewal and Repairs Fund Capital Fund Capital Receipts Reserve Capital Grants Unapplied Account Total Usable Reserves - Council -13,025 -1,900 -3,195 -6,643 -4,467 -692 -8,701 -10,150 -986 -9,848 -18,472 -1,305 -8,121 -1,483 -646 0 0 0 2,332 -2,332 0 0 0 0 0 0 0 0 0 0 0 0 3,514 0 0 2,140 0 27 0 800 0 4,700 4,777 3,781 0 1,511 409 3,514 Transfers In 2011/12 000 -3,514 -1,019 0 -9,441 -712 -195 -2,050 -1,077 -404 0 -6,989 -5,062 -2,939 -28 -33 -3,514 Balance at 31.03.12 000 -13,025 -2,919 -863 -16,276 -5,179 -860 -10,751 -10,427 -1,390 -5,148 -20,684 -2,586 -11,060 0 -270 0
-89,634 0 -15,404 -16,390 0 -1,541 -122,969
0 0 0 0 0 0 0
25,173 3,514 0 100 8,421 282 37,490
-36,977 -3,514 -3,589 -79 -8,421 -6,274 -58,854
-101,438 0 -18,993 -16,369 0 -7,533 -144,333
Total Usable Reserves - Group
-140,826
50,786
-83,399
-173,439
10.2 Devolved School Management A net credit balance of 2.919m (2010/11 1.900m) is held within the General Fund in accordance with the Devolved School Management scheme.
51

10. Usable Reserves - continued 10.3 Reconciliation of transfers to and from earmarked reserves in Movement of Reserves Statement to Transfers to and from Usable Reserves 2011/12 General Fund 000 Transfers out Transfers in Total movements in fund Recognised in Comprehensive Income and Expenditure Statement Minority interest and other consol. adjusts. Transfers to other earmarked reserves Total movements in fund 25,173 -36,977 -11,804 HRA Balance 000 3,514 -3,514 0 Renewal / Repairs Fund 000 0 -3,589 -3,589 Capital Receipts Reserve 000 8,421 -8,421 0
-11,957 0 153 -11,804 Capital Grants Unapplied 000
-3,514 0 3,514 0
0 0 -3,589 -3,589 Group Usable Reserves 000 13,296 -24,545 -11,249
0 0 0 0
Capital Fund 000 100 -79 21
Total 000 50,786 -83,399 -32,613
Transfers out Transfers in Total movements in fund Recognised in Comprehensive Income and Expenditure Statement Minority interest and other consol. adjusts. Transfers to other earmarked reserves Total movements in fund
282 -6,274 -5,992
-5,992 0 0 -5,992
99 0 -78 21
-13,793 0 2,544 -11,249
-35,157 0 2,544 -32,613
2010/11 Comparative Data General Fund 000 Transfers out Transfers in Total movements in fund Recognised in Comprehensive Income and Expenditure Statement Minority interest and other consol. adjusts. Transfers to other earmarked reserves Total movements in fund 26,285 -42,806 -16,521 HRA Balance 000 1,614 -1,614 0
Renewal / Repairs Fund 000 48 -1,673 -1,625
Capital Receipts Reserve 000 8,435 -8,435 0
-10,619 0 -5,902 -16,521
-1,614 0 1,614 0
0 0 -1,625 -1,625
0 0 0 0
52

10. Usable Reserves - continued 10.3 Reconciliation of transfers to and from earmarked reserves in Movement of Reserves Statement to Transfers to and from Usable Reserves - continued 2010/11 Comparative Data Capital Grants Unapplied 000 26,144 -478 25,666 Capital Fund 000 6,174 -97 6,077 Group Usable Reserves 000 18,346 -49,145 -30,799
Total 000 87,046 -104,248 -17,202
Transfers out Transfers in Total movements in fund Recognised in Comprehensive Income and Expenditure Statement Minority interest and other consol. adjusts. Transfers to other earmarked reserves Total movements in fund 11. Other Operating Expenditure
25,666 0 0 25,666
164 0 5,913 6,077
-33,681 3,287 -405 -30,799
-20,084 3,287 -405 -17,202
(Gains) / losses on the disposal of non-current assets
2011/12 Group Council 000 000 -1,812 -2,033 -1,812 -2,033
2010/11 Group Council 000 000 -2,168 -867 -2,168 -867
12. Financing and Investment Income and Expenditure 2011/12 Group Council 000 000 72,223 71,460 -7,757 -4,995 1,494 -4,623 -4,814 -19 2010/11 Group Council 000 000 68,714 67,366 3,869 -4,185 -257 4,444 -3,112 -257
Interest payable and similar charges Pensions interest cost and expected return on pension assets Interest receivable and similar income Income and expenditure in relation to investment properties and changes in their fair value Other investment costs Net surplus from trading activities
199 -4,702 56,462
0 -5,501 56,503
0 -3,994 64,147
0 -3,994 64,447
13. Taxation and Non-Specific Grant Income
Council Tax income Non-domestic rates Non-ring fenced government grants Capital grants and contributions Taxation expenses
2011/12 Group Council 000 000 -227,975 -227,975 -297,442 -458,120 -64,977 -540 -1,049,054 -297,442 -458,120 -64,977 0 -1,048,514
2010/11 Group Council 000 000 -226,583 -226,583 -188,733 -579,737 -135,476 2,880 -1,127,649 -188,733 -579,737 -135,476 0 -1,130,529
53

14. Property, Plant and Equipment 14.1 Depreciation No depreciation is provided in the year of the asset's purchase. Assets in the course of construction are not depreciated until they are brought into use. Where depreciation is provided for, assets are depreciated using the straight line method over the following periods: Council dwellings Buildings Buildings - structural Buildings - non-traditional roofing Buildings - finishes Buildings - mechanical and electrical Buildings - fittings and furnishings PPP Schools Infrastructure assets Vehicles, plant, furniture and equipment 50 years 50 years (assets not subject to component accounting) 50 years 35 years 25 years 20 years 15 years 40 years (PPP1 schools) and 35 years (PPP2 schools) 20 years 5 years to 7 years, to reflect estimated useful life 3 years to 15 years, Group Companies
14.2 Capital Commitments At 31 March 2012, the Council had entered into a number of contracts for the construction or enhancement of property, plant and equipment in 2011/12 and future years. These are budgeted to cost 242.897m. Similar commitments at 31 March 2011 were 205.018m. Expected 000 Completion Date Tram infrastructure contracts (including project management) 145,366 2014 Edinburgh Int. Conference Centre - additional function space 32,403 2013 HRA - kitchens and bathroom programme 10,050 2013-2014 Wester Hailes healthy living centre 8,482 2013 Water of Leith flood prevention works 5,500 2012-2013 Drumbrae care home 5,365 2013 HRA - external fabric works 4,700 2013-2014 Edinburgh North neighbourhood office 4,336 2012 HRA - Greendykes / Wauchope House - over cladding / heating 3,900 2013-2014 HRA - gas heating programme 3,700 2013-2014 Assembly Rooms 3,092 2012 HRA - neighbour environmental partnerships programme 2,150 2012-2013 Niddrie Burn Restoration and ERI Link Road phase one 1,900 2012 Edinburgh Military Tattoo - new grandstands 1,435 2012 James Gillespies High School Wave 3 essential works 1,300 2013 Road construction 1,200 2012-2013 Boroughmuir High School Wave 3 essential works 1,200 2014 HRA - external door programme 1,100 2013-2014 Kings Theatre 1,040 2012-2013 Mercury abatement plant - Mortonhall Crematorium 1,015 2012 Other capital commitments 3,663 various 242,897
54

14. Property, Plant and Equipment - continued 14.3 Movements on Balances - Group Accounts Movements in 2011/12 Vehicles, Plant, Furniture and Equipment 000 192,776 23,684 0
Council Dwellings 000 Cost or Valuation At 1 April 2011 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2012 Accumulated Depreciation and Impairment At 1 April 2011 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011 1,039,517 47,555 -412
Other Land and Buildings 000 1,722,277 50,436 83,071
Infrastructure Assets 000 950,214 126,708 0
-7,915
-65,719
-3,543 -473 0 1,074,729
-242 -1,990 211 1,788,044
-2,942 0 -4,424 209,094
0 0 0 1,076,922
-29,842 -16,595 15 119
-86,956 -40,018 24,775 17,198
-93,570 -20,414 0 0
-221,359 -45,875 0 0
149 0
164 0
2,196 -573
0 -299
24 -46,130
4,969 -79,868
4,425 -107,936
0 -267,533
1,028,599 1,009,675
1,708,176 1,635,321
101,158 99,206
809,389 728,855
55

14. Property, Plant and Equipment - continued 14.3 Movements on Balances - Group Accounts Movements in 2011/12 Assets Under Construction 000 62,737 66,551 0 Total Property Plant and Equipment 000 4,020,622 315,660 87,495
Community Assets 000 Cost or Valuation At 1 April 2011 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2012 Accumulated Depreciation and Impairment At 1 April 2011 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011 12,756 493 147
Surplus Assets 000 40,345 233 4,689
-1,878
-992
-76,504
0 0 100 11,618
-80 -1,109 -3,607 39,479
0 0 -29,141 100,147
-6,807 -3,572 -36,861 4,300,033
0 0 0 0
-170 -241 0 34
0 0 0 0
-431,897 -123,143 24,790 17,351
0 0
0 0
0 0
2,509 -872
0 0
13 -364
0 0
9,431 -501,831
11,618 12,756
39,115 40,175
100,147 62,737
3,798,202 3,588,725
56

14. Property, Plant and Equipment - continued 14.4 Movements on Balances - Group Accounts 2010/11 Comparative Data Vehicles, Plant, Furniture and Equipment 000 196,389 9,509 0
Council Dwellings 000 Cost or Valuation At 1 April 2010 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2011 Accumulated Depreciation and Impairment At 1 April 2010 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010 1,020,315 37,358 5,350
-18,472
-42,215
-4,418 -616 0 1,039,517
-446 -9,643 -7,411 1,722,277
-13,120 0 -2 192,776
0 0 0 950,214
-14,610 -16,110 320 412
-59,262 -35,154 2,686 4,710
-85,196 -21,398 0 0
-172,052 -40,639 0 0
127 0
31 0
13,022 0
0 -8,668
19 -29,842
33 -86,956
2 -93,570
0 -221,359
1,009,675 1,005,705
1,635,321 1,653,166
99,206 111,193
728,855 629,419
57

14. Property, Plant and Equipment - continued 14.4 Movements on Balances - Group Accounts 2010/11 Comparative Data Assets Under Construction 000 40,350 0 40,350 30,277 0 Total Property Plant and Equipment 000 3,805,378 -2,649 3,802,729 262,528 46,923
Community Assets 000 Cost or Valuation At 1 April 2010 Transfer to heritage assets Re-stated at 1 April 2010 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2011 Accumulated Depreciation and Impairment At 1 April 2010 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010 14,665 -2,649 12,016 986 0
Surplus Assets 000 19,760 0 19,760 4 7,660
-127
-1,917
-62,731
0 -56 -63 12,756
0 -218 15,056 40,345
0 0 -7,890 62,737
-17,984 -10,533 -310 4,020,622
0 0 0 0
-54 -206 0 90
0 0 0 0
-331,174 -113,507 3,006 5,212
0 0
0 0
0 0
13,180 -8,668
0 0
0 -170
0 0
54 -431,897
12,756 12,016
40,175 19,706
62,737 40,350
3,588,725 3,471,555
58

14. Property, Plant and Equipment - continued 14.5 Movements on Balances - City of Edinburgh Council Movements in 2011/12 Vehicles, Plant, Furniture and Equipment 000 81,650 7,038 0
Council Dwellings 000 Cost or Valuation At 1 April 2011 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2012 Accumulated Depreciation and Impairment At 1 April 2011 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011 1,039,517 47,555 -412
-7,915
-65,719
-3,543 -473 0 1,074,729
-15 -1,990 30,855 1,736,511
-248 0 0 88,440
0 0 0 1,070,252
-29,842 -16,595 15 119
-52,947 -39,707 24,775 17,198
-50,480 -12,413 0 0
-217,180 -45,587 0 0
149 0
0 0
65 -573
0 -299
24 -46,130
10 -50,671
0 -63,401
0 -263,066
1,028,599 1,009,675
1,685,840 1,588,189
25,039 31,170
807,186 726,364
59

14. Property, Plant and Equipment - continued 14.5 Movements on Balances - City of Edinburgh Council Movements in 2011/12 Assets Under Construction 000 61,342 66,154 0 Total Property Plant and Equipment 000 3,820,290 297,354 87,495
Community Assets 000 Cost or Valuation At 1 April 2011 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2012 Accumulated Depreciation and Impairment At 1 April 2011 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011 12,756 493 147
Surplus Assets 000 40,345 233 4,689
PPP Assets 000 551,571 53 -465
-1,878
-992
-76,504
0 0 100 11,618
-80 -1,109 -3,607 39,479
0 0 -27,348 100,148
-3,886 -3,572 0 4,121,177
0 0 0 551,159
0 0 0 0
-170 -241 0 34
0 0 0 0
-350,619 -114,543 24,790 17,351
-20,973 -11,419 629 0
0 0
0 0
0 0
214 -872
0 0
0 0
13 -364
0 0
47 -423,632
0 -31,763
11,618 12,756
39,115 40,175
100,148 61,342
3,697,545 3,469,671
519,396 530,598
The disclosure for PPP assets is for information only the costs and depreciation are included in 'Other Land and Buildings'.
60

14. Property, Plant and Equipment - continued 14.6 Movements on Balances - City of Edinburgh Council 2010/11 Comparative Data Vehicles, Plant, Furniture and Equipment 000 76,706 4,944 0
Council Dwellings 000 Cost or Valuation At 1 April 2010 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2011 Accumulated Depreciation and Impairment At 1 April 2010 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010 1,020,315 37,358 5,350
-18,472
-42,215
-4,418 -616 0 1,039,517
-57 -9,643 -7,166 1,641,136
0 0 0 81,650
0 0 0 943,544
-14,610 -16,110 320 412
-26,115 -34,229 2,686 4,710
-37,223 -13,257 0 0
-168,162 -40,350 0 0
127 0
1 0
0 0
0 -8,668
19 -29,842
0 -52,947
0 -50,480
0 -217,180
1,009,675 1,005,705
1,588,189 1,604,706
31,170 39,483
726,364 626,639
61

14. Property, Plant and Equipment - continued 14.6 Movements on Balances - City of Edinburgh Council 2010/11 Comparative Data Community Assets 000 Cost or Valuation At 1 April 2010 Transfer to heritage assets Re-stated at 1 April 2010 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Derecognition - disposals Assets reclassified (to) / from held for sale Other movements in cost or valuation At 31 March 2011 Accumulated Depreciation and Impairment At 1 April 2010 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services Derecognition - disposals Impairment losses recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010 14,665 -2,649 12,016 986 0 Surplus Assets 000 19,760 0 19,760 4 7,660 Assets Under Construction 000 39,911 0 39,911 29,321 0
Total Property Plant and Equipment 000 3,596,979 -2,649 3,594,330 256,839 46,923
PPP Assets 000 552,861 0 552,861 1,150 2,874
-127
-1,917
-62,731
-3,314
0 -56 -63 12,756
0 -218 15,056 40,345
0 0 -7,890 61,342
-4,475 -10,533 -63 3,820,290
0 0 -2,000 551,571
0 0 0 0
-54 -206 0 90
0 0 0 0
-246,164 -104,152 3,006 5,212
-11,942 -11,291 1,592 668
0 0
0 0
0 0
128 -8,668
0 0
0 0
0 -170
0 0
19 -350,619
0 -20,973
12,756 12,016
40,175 19,706
61,342 39,911
3,469,671 3,348,166
530,598 540,919
The disclosure for PPP assets is for information only the costs and depreciation are included in 'Other Land and Buildings'.
62

14. Property, Plant and Equipment - continued 14.7 Council Dwellings, Other Land and Buildings and Investment Properties The Council carries out a rolling programme of revaluations that ensures that all property, plant and equipment required to be measured at fair value is revalued at least every five years. All valuations were carried out internally. Valuations of land and buildings were carried out under the direction of the Council's Property Manager (Property Management and Development), W. Miller FRICS, in accordance with the Statements of Asset Valuation Practice and Guidance Notes of The Royal Institution of Chartered Surveyors. Fixtures and fittings are included in the valuation of the buildings where appropriate. The significant assumptions applied in estimating fair value are: Unless otherwise stated, all properties with a greater than de minimis value were assumed to be in a reasonable state of repair and have a life expectancy of more than fifty years. The valuations were prepared using information from the Council's internal records, together with the valuation roll produced by Lothian Valuation Joint Board. Not all properties were inspected. The following statement shows the progress of the Council's five-year rolling programme for the revaluation of property, plant and equipment. Vehicles, Plant, Other Furniture Council Land and and Infrastructure Assets Council assets Dwellings Buildings Equipment 000 000 000 000 Carried at historical cost 94,583 13,646 88,440 1,070,252 Valued at fair value as at: 31 March 2012 31 March 2011 31 March 2010 31 March 2009 31 March 2008 Total cost or valuation 79 2,333 1,200 976,067 467 1,074,729 794,362 82,814 404,319 376,601 64,769 1,736,511 0 0 0 0 0 88,440 0 0 0 0 0 1,070,252
Council assets Carried at historical cost Valued at fair value as at: 31 March 2012 31 March 2011 31 March 2010 31 March 2009 31 March 2008 Total cost or valuation
Community Assets 000 11,618 0 0 0 0 0 11,618
Assets Surplus Under Assets Construction 000 000 129 100,148 5,479 21,035 12,757 0 79 39,479 0 0 0 0 0 100,148
Total 000 1,378,816 799,920 106,182 418,276 1,352,668 65,315 4,121,177
63

15. Investment Properties 15.1 Income and Expenses on Investment Properties The following items of income and expense have been accounted for in the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. 2011/12 Group Council 000 000 -187 -187 0 -187 0 -187 2010/11 Group Council 000 000 -196 -196 0 -196 0 -196
Rental income from investment properties Direct operating expenses arising from investment property
There are no restrictions on the Council's ability to realise the value inherent in its investment properties or on the Council's right to the remittance of income and the proceeds of disposal. Within the Group, 4.5m of investment properties represents the Council's share of land at Shawfair, which is held jointly with Midlothian Council. The disposal of this would therefore require the consent of Midlothian Council. 15.2 Movement in Fair Value The following table summarises the movement in the fair value of investment properties over the year. 2011/12 Group Council 000 000 7,258 2,288 2010/11 Group Council 000 000 8,477 2,227
Value at 1 April Additions: - Purchases Disposals Net (loss) / gain from fair value adjustments Transfers - (to) / from Inventories - (to) / from Property, Plant and Equipment Value at 31 March 16.
0 -170 -1,681 0 0 1,793 7,200
0 0 -168 0 0 0 2,120
225 -225 -1,731 0 300 212 7,258
0 0 61 0 0 0 2,288
Intangible Assets Intangible assets represent purchased software licences. Software is given a finite useful life, as set out below, based on the period of the licence purchased. 2 Years GLOW Software, Mosaic Household directory, Digilog VRA solution Jadu software Weighbridge, Arcview, Adobe Acrobat, GIS, Anite Swift, Online Ticketing software Data encryption software
3 Years 5 Years
6 Years
64

16. Intangible Assets - continued The carrying amount of intangible assets is amortised on a straight-line basis. The amortisation of 1.621m in 2011/12 (2010/11 0.262m) was charged to the following services. 2011/12 000 1,149 421 33 1 17 1,621 2010/11 000 0 225 33 1 3 262
Housing Services Education services Cultural and related services Environmental services Allocable overheads Value at 31 March The movement on intangible asset balances during the year is as follows: 2011/12 Group Council 000 000 Balance at 1 April Gross carrying amount Less: Accumulated amortisation Net carrying amount at 1 April Additions during the year - Purchased intangible assets Amortisation for the period Net carrying amount at 31 March Comprising: Gross carrying amounts Accumulated amortisation Net carrying amount at 31 March 2,898 -422 2,476 124 -1,621 979 2,898 -422 2,476 124 -1,621 979
2010/11 Group Council 000 000 2,480 -160 2,320 418 -262 2,476 2,480 -160 2,320 418 -262 2,476
3,022 -2,043 979
3,022 -2,043 979
2,898 -422 2,476
2,898 -422 2,476
The Council held an intangible asset in the form of nomination rights representing support for the construction of houses for rent by Housing Associations (carrying value of 1.149m at 1st April 2011). In 2011/12 the Council determined it no longer holds these nomination rights due to Housing Associations agreeing to shortlist their properties under the Council's social housing allocation policy. This intangible asset has therefore been fully amortised in year (1.149m). The following items of capitalised software are individually material to the financial statements. Remaining Carrying Amount Amortisation 2011/12 2010/11 Period 000 000 at 31.03.12 311 467 2 years 223 320 279 391 4 years 1 year
Anite Swift Data encryption software GLOW Software
65

17. Heritage Assets 17.1 Reconciliation of the Carrying Value of Heritage Assets Movements in 2011/12 Monuments and Statues Cost or Valuation 000 At 1 April 2011 2,790 Additions Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services At 31 March 2012 Accumulated Impairment At 1 April 2011 At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011 8 -381 2,417
Civic Regalia and Artefacts 000 2,047 0 0 2,047
Archival Collections 000 6,797 0 0 6,797
0 0
0 0
0 0
2,417 2,790
2,047 2,047
6,797 6,797
Cost or Valuation At 1 April 2011 Additions Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services At 31 March 2012 Accumulated Impairment At 1 April 2011 At 31 March 2012 Net book value At 31 March 2012 At 31 March 2011
Libraries' Special Collections 000 1,675 0 0 1,675
Museum and Gallery Collections 000 24,296 0 0 24,296
Total Heritage Assets 000 37,605 8 -381 37,232
0 0
0 0
0 0
1,675 1,675
24,296 24,296
37,232 37,605
66

17. Heritage Assets - continued 17.1 Reconciliation of the Carrying Value of Heritage Assets - continued Comparative Movements in 2010/11 Monuments and Statues Cost or Valuation 000 At 1 April 2010 2,663 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services At 31 March 2011 Accumulated Impairment At 1 April 2010 At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010 88 55
Civic Regalia and Artefacts 000 2,047 0 0
Archival Collections 000 6,797 0 0
-16 2,790
0 2,047
0 6,797
0 0
0 0
0 0
2,790 2,663
2,047 2,047
6,797 6,797
Cost or Valuation At 1 April 2010 Additions Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services At 31 March 2011 Accumulated Impairment At 1 April 2010 At 31 March 2011 Net book value At 31 March 2011 At 31 March 2010
Libraries' Special Collections 000 1,675 0 0
Museum and Gallery Collections 000 24,296 0 0
Total Heritage Assets 000 37,478 88 55
0 1,675
0 24,296
-16 37,605
0 0
0 0
0 0
1,675 1,675
24,296 24,296
37,605 37,478
67

17. Heritage Assets - continued 17.2 Details of Heritage Assets Monuments and Statues are valued on an historic basis and valuations are carried out under the direction of the Council's Property Manager (Property Management and Development). Civic Regalia and artefacts include items such as the Lord Provosts Badge and Chain of Office and the Roseberry Jewel. The value of these assets is based on an insurance purposes valuation carried out in 1998. Archival collections include historical records which relate to the history of Edinburgh and its surrounding areas. The value of these assets is based on a current insurance purposes valuation based on restoration costs only. This valuation has not changed since 2008/09. Libraries special collections include items such as rare book collections and pictures in Calotype. The value of these assets is based on an insurance purposes valuation carried out in 2007. Museums and Gallery collections include various collections held at a number of museums across Edinburgh. They include items held within the Social History, Applied Art, Writers Museum, Lauriston Castle, Childhood, City Art Centre and Picture Loan Scheme. The value of these assets is based on insurance purposes valuations carried out in 2003 with a small minority of the assets being based on insurance purposes valuations carried out in 1996. The valuations for heritage assets have all been carried out internally and although they are from earlier periods, they are considered the most appropriate and relevant. Carrying out valuations for the majority of collections held is very costly and time consuming so it is not practicable to obtain recent valuations at a cost which is commensurate with the benefits to users of the financial statements. The carrying amounts of these heritage assets will be reviewed with sufficient regularity in the future to ensure they are brought up to date and remain appropriate. It has not been practical or possible to split out all heritage assets belonging to common good, charities or trusts. Therefore, the Council's balance sheet may hold this element of heritage assets that belong to other entities. The Council has three private vehicle registration plates which meet the definition of intangible heritage assets. These have not been recognised on the balance sheet due to lack of information on cost or current value. They are limited registration numbers that rarely become available for sale and therefore no relevant or appropriate current value can be placed on these. 18. Financial Instruments 18.1 Categories of Financial Instruments The following categories of financial instrument are carried on the Council's Balance Sheet Long-Term 31.03.12 31.03.11 000 000 3,478 0 23,335 26,813 23,335 23,335 Current 31.03.12 000 235,262 0 235,262 31.03.11 000 268,628 0 268,628
Investments Loans and receivables Unquoted equity investment at cost Total investments Debtors Loans and receivables Total debtors Borrowings Financial liabilities (principal amount) Accrued interest Amortised cost Total borrowings
3,500 3,500
3,500 3,500
25,213 25,213
33,306 33,306
-1,400,073 0 -8,679 -1,408,752
-1,272,805 0 -8,314 -1,281,119
-34,912 -18,206 0 -53,118
-54,969 -16,652 0 -71,621
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18. Financial Instruments - continued 18.1 Categories of Financial Instruments - continued Long-Term 31.03.12 31.03.11 000 000 Other Long-Term Liabilities PPP and finance lease liabilities Deferred liability Total other long-term liabilities -209,741 -350 -210,091 -218,124 -350 -218,474
Further detail on the finance lease and PPP liabilities can be seen in notes 40 and 41. Current 31.03.12 31.03.11 000 000 -13,741 -19,735 -8,666 -22,407 -9,432 -29,167
Creditors Financial liabilities at amortised cost PPP and finance leases due within 1 year Total creditors
Lothian Regional Council entered into an agreement for the disposal of Norton Park Annex to the Tudor Trust. The terms of the disposal included the creation of a Title Company with share capital of 100 ordinary shares, held by the Tudor Trust, and 350,000 1 preference shares held by City of Edinburgh Council. The preference shares carry rights that, in the event of the company being wound up or the property sold, the Council will receive the first 0.35m of the sale proceeds. This is reflected in the Balance Sheet as 'Other Long-term Liabilities' of 0.35m, as shown above and as a long-term investment. 18.2 Income, Expenses, Gains and Losses Financial Financial Liabilities: Assets: Measured at Loans Amortised and Cost Receivables 000 000 -71,021 16 0 -71,021 0 -71,021 -13 3 2,446 2,449
Interest expense Impairment losses Total expense in Surplus on the Provision of Services Interest income Net gain / (loss) for the year
Total 000 -71,005 -13 -71,018 2,446 -68,572
In addition to the above interest expense, 1.858m (2010/11 1.858m) (of which 1.810m [2010/11 1.804m] related to the Council) was charged to the loans pool from the financial instruments adjustment account during the year, but not reflected in the Comprehensive Income and Expenditure Statement. It also excludes 0.439m (2010/11 0.363m) of loans fund expenses charged to the Council. 18.3 Fair Value of Assets and Liabilities Financial liabilities and financial assets represented by loans and receivables are carried in the Balance Sheet at amortised cost. Their fair value can be assessed by calculating the present value of the cash flows that will take place over the remaining term of the instruments, using the following assumptions: the fair values for financial liabilities have been determined by reference to the Public Works Loans Board (PWLB) redemption rules and prevailing PWLB redemption rates as at each Balance Sheet date.
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18. Financial Instruments - continued 18.3 Fair Value of Assets and Liabilities - continued for loans and receivables, the prevailing benchmark market rates have been used to provide the fair value. no early repayment of impairment is recognised. where no instrument will mature in the next twelve months, carrying amount is assumed to approximate to fair value. the fair value of trade and other receivables is taken to be the invoiced or billed amount. The fair values are calculated as follows: 31.03.12 Carrying Fair Amount Value 000 000 -1,141,294 -1,485,312 -286 -306 -293,111 -320,584 -7,625 -7,625 -19,554 -19,554 -350 -350 -5,076 -5,076 -218,406 -218,406 -1,685,702 -2,057,213 31.03.11 Carrying Fair Amount Value 000 000 -1,027,666 -1,202,579 -457 -526 -292,300 -343,962 -7,558 -7,558 -24,758 -24,758 -350 -350 -10,302 -10,302 -227,556 -227,556 -1,590,947 -1,817,591
Public Works Loans Board European Investment Bank Market debt Temporary borrowing Other bodies Other long-term liabilities Trade creditors Finance Leases Financial liabilities
The fair value is higher than the carrying amount because the authoritys portfolio of loans includes a number of fixed rate loans where the interest rate payable is higher than the rates available for similar loans at the Balance Sheet date. This commitment to pay interest above current market rates increases the amount that the authority would have to pay if the lender requested or agreed to early repayment of the loans. 31.03.12 31.03.11 Carrying Fair Carrying Fair Amount Value Amount Value Investments 000 000 000 000 Loans and receivables 238,740 238,718 268,628 268,630 Unquoted equity investment at cost 23,335 23,335 23,335 23,335 Debtors Loans and receivables 3,500 3,500 3,500 3,500 Other trade debtors 25,213 25,213 33,306 33,306 Total Investments 19. Inventories 19.1 Group - Movements in 2011/12 Fuel Stocks 000 627 26,669 0 -26,681 0 615 290,788 290,766 328,769 328,771
Balance at 1 April Purchases Held by a third party Recognised as an expense in the year Stock written off Balance at 31 March
Items Provided Construction at Nil or and Other Nominal Raw Charge Materials 000 000 609 1,143 1,529 27 -1,331 0 834 16,790 0 -16,142 -14 1,777
Items Held for Sale 000 146 212 0 -300 0 58
70

19. Inventories - continued 19.1 Group - Movements in 2011/12 - continued Clothing Work in and Progress Equipment 000 000 19,243 76 1,434 0 -109 -9,252 11,316 281 0 -278 -2 77 Catering Stocks 000 110 1,973 0 -1,972 0 111
Total 000 21,954 48,888 27 -46,813 -9,268 14,788
19.2 Group - Comparative Movements in 2010/11
Balance at 1 April Purchases Donations Held by a third party Recognised as an expense in the year Stock written off Balance at 31 March
Fuel Stocks 000 563 23,382 0 0 -23,318 0 627
Items Provided Construction at Nil or and Other Nominal Raw Charge Materials 000 000 191 1,171 1,270 170 45 -1,067 0 609 24,149 0 0 -24,042 -135 1,143
Items Held for Sale 000 329 811 0 0 -971 -23 146
Clothing Work in and Progress Equipment 000 000 22,572 143 602 0 0 -3,870 -61 19,243 294 0 0 -359 -2 76
Catering Stocks 000 112 1,993 0 0 -1,995 0 110
Total 000 25,081 52,501 170 45 -55,622 -221 21,954
71

19. Inventories - continued 19.3 Council - Movements in 2011/12
Fuel Stocks 000 184 3,106 0 -3,107 0 183
Items Provided Construction at Nil or and Other Nominal Raw Charge Materials 000 000 609 901 1,529 27 -1,331 0 834 8,408 0 -7,759 -14 1,536
Items Held for Sale 000 146 212 0 -300 0 58
Clothing Work in and Progress Equipment 000 000 2 76 108 0 -109 0 1 281 0 -278 -2 77
Catering Stocks 000 110 1,973 0 -1,972 0 111
Total 000 2,028 15,617 27 -14,856 -16 2,800
19.4 Council - Comparative Movements in 2010/11
Fuel Stocks 000 150 2,977 0 0 -2,943 0 184
Items Provided Construction at Nil or and Other Nominal Raw Charge Materials 000 000 191 909 1,270 170 45 -1,067 0 609 9,469 0 0 -9,342 -135 901
Items Held for Sale 000 329 811 0 0 -971 -23 146
72

19. Inventories - continued 19.4 Council - Comparative Movements in 2010/11 - continued Work in Progress 000 36 602 0 0 -621 -15 2 Clothing and Equipment 000 143 294 0 0 -359 -2 76 Catering Stocks 000 112 1,993 0 0 -1,995 0 110
Balance at 1 April Purchases Donations Held by Third Party Recognised as an expense in the year Stock written off Balance at 31 March 20. Debtors 20.1 Long-term Debtors
Total 000 1,870 17,416 170 45 -17,298 -175 2,028
Central government bodies Other local authorities Other entities and individuals Total long-term debtors before provision for impairment Less: Provision for impairment Total net long-term debtors
2011/12 Group Council 000 000 7,949 7,949 31,745 31,745 208,848 212,348 248,542 -173,356 75,186 252,042 -173,356 78,686
2010/11 Group Council 000 000 4,709 4,709 35,201 35,201 183,091 186,591 223,001 -163,753 59,248 226,501 -163,753 62,748
20.2 Analysis of Long-term Debtors Long-term debtors comprise the following elements: 2011/12 Group Council 000 000 Capital advances Lothian / Borders Police Board Lothian / Borders Fire / Rescue Board Further Educ. Colleges (pre 1996 debt) Council Tax Community Charge Non-Domestic Rates CEC Holdings Edinburgh Marketing loan Edinburgh Leisure loan House rents Car loan scheme Other debtors 24,347 7,250 148 95,606 72,516 1,037 0 60 0 1,882 140 45,556 248,542 24,347 7,250 148 95,606 72,516 1,037 3,500 60 0 1,882 140 45,556 252,042 2010/11 Group Council 000 000 26,711 8,490 165 91,395 72,571 5,656 0 81 216 1,794 185 15,737 223,001 26,711 8,490 165 91,395 72,571 5,656 3,500 81 216 1,794 185 15,737 226,501
Long-term debtors include 24.347m (2010/11 26.711m) and 7.250m (2010/11 8.490m) for sums recoverable from Lothian and Borders Police and Fire and Rescue Boards respectively. These sums relate to monies advanced to the joint boards for capital expenditure. The Edinburgh Leisure Loan is repayable in July 2012 and has been transferred to current debtors.
73

20. Debtors - continued 20.3 Current Debtors 2011/12 Group Council 000 000 23,920 22,913 7,893 7,574 1,083 1,082 1,167 1,167 119,979 108,443 154,042 -67,425 86,617 141,179 -67,425 73,754 2010/11 Group Council 000 000 61,921 60,376 4,827 6,488 7,348 7,346 1,953 1,953 179,004 156,110 255,053 -63,349 191,704 232,273 -63,349 168,924
Central government bodies Other local authorities NHS bodies Public corporations and trading funds Other entities and individuals Total current debtors before provision for impairment Less: Provision for impairment Total net current debtors 20.4 Provision for Impairment
Long-term provision for impairment Community charge Council tax Non-Domestic rates Sundry debtors Total long-term provision for impairment Current provision for impairment Community charge Council tax Non-Domestic rates Sundry debtors Total current provision for impairment 21.
2011/12 Group Council 000 000 -72,516 -72,516 -88,046 -88,046 -737 -737 -12,057 -12,057 -173,356 000 -50 -59,529 -94 -7,752 -67,425 -173,356 000 -50 -59,529 -94 -7,752 -67,425
2010/11 Group Council 000 000 -72,571 -72,571 -83,711 -83,711 -947 -947 -6,524 -6,524 -163,753 000 -60 -56,951 -626 -5,712 -63,349 -163,753 000 -60 -56,951 -626 -5,712 -63,349
Cash and Cash Equivalents The balance of cash and cash equivalents comprises the following elements. Investments maturing within three months of the balance sheet are deemed to be cash and cash equivalents. 2011/12 Group Council 000 000 510 486 -4,436 117,574 38,004 31,567 26,812 210,031 -17,612 116,574 38,004 31,567 26,812 195,831 2010/11 Group Council 000 000 554 528 -13,803 124,314 94,376 18,919 0 224,360 -28,573 122,214 94,376 18,919 0 207,464
Cash held Bank current accounts Short-term deposits: With banks or building societies With other local authorities With money market fund With H.M. Treasury
74

22. Assets Held for Sale 2011/12 Group Council 000 000 7,975 7,975 5,655 92 -1,736 -21 -254 -134 -500 11,077 5,655 92 -1,736 -21 -254 -134 -500 11,077 2010/11 Group Council 000 000 2,812 2,812 5,822 23 124 -5 0 -1 -800 7,975 5,822 23 124 -5 0 -1 -800 7,975
22.1 Non-Current Assets Balance at 1 April Assets newly classified as held for sale: Property, Plant and Equipment Additions Revaluation gains/(losses) recognised in the revaluation reserve Revaluation gains/(losses) recognised in Surplus on the Provision of Services Assets declassified as held for sale: Property, Plant and Equipment Assets sold Transfers from non-current to current Balance at 31 March
22.2 Current Assets Balance at 1 April Assets newly classified as held for sale: Property, Plant and Equipment Additions Revaluation gains/(losses) recognised in the revaluation reserve Revaluation gains/(losses) recognised in Surplus on the Provision of Services Assets declassified as held for sale: Property, Plant and Equipment Assets sold Transfers from non-current to current Balance at 31 March 23. Creditors
2011/12 Group Council 000 000 5,357 5,357 449 229 542 1,014 -2,325 -2,581 500 3,185 449 229 542 1,014 -2,325 -2,581 500 3,185
2010/11 Group Council 000 000 3,200 3,200 4,692 21 -83 -52 0 -3,221 800 5,357 4,692 21 -83 -52 0 -3,221 800 5,357
Central government bodies Other local authorities NHS bodies Public corporations and trading funds Other entities and individuals
2011/12 Group Council 000 000 -22,372 -19,218 -13,921 -274 -625 -176,426 -213,618 -9,246 -267 -625 -154,369 -183,725
2010/11 Group Council 000 000 -8,058 -2,144 -10,948 -431 -1,543 -199,209 -220,189 -9,167 -424 -1,543 -160,022 -173,300
75

24. Provisions Provision has been made within the Group Financial Statements for outstanding payments of 38.936m (2010/11 129.704m). Of this amount, 35.409m (2010/11 127.697m) relates to the Council. These include estimates of settlements on outstanding equal pay, compensation and insurance claims, land acquisition costs and costs arising from the mediation process for the tram project and Council Tax discounts payable to Registered Social Landlords. The precise amount of these payments is unknown, however, provision has been made in the accounts, as summarised below, based on a Council assessment of the costs. Equal Pay Council Tax Claims Discounts 000 000 -47,934 -1,252 0 12,924 0 11,042 -23,968 -215 0 0 0 -1,467
Balance at 1 April 2011 Additional provisions made during the year Amounts used during the year Transferred to debtor impairments Unused amounts reversed during the year Balance at 31 March 2012
Trams 000 -75,435 -2,082 70,553 0 0 -6,964 Housing Benefit Subsidy 000 -642 -150 336 0 306 -150 Total Council Provisions 000 -127,697 -4,869 84,823 0 12,334 -35,409
Balance at 1 April 2011 Additional provisions made during the year Amounts used during the year Transferred to debtor impairments Unused amounts reversed during the year Balance at 31 March 2012
Insurance Claims 000 -611 -231 516 0 0 -326
Other Provisions 000 -1,823 -2,191 494 0 986 -2,534
Balance at 1 April 2011 Additional provisions made during the year Amounts used during the year Transferred from other long-term liabilities Unused amounts reversed during the year Balance at 31 March 2012
Group Provisions 000 -2,007 -1,727 1,732 -1,525 0 -3,527
Total Provisions 000 -129,704 -6,596 86,555 -1,525 12,334 -38,936
76

25. Usable Reserves Movements in the Group and the Council's usable reserves are detailed in the Movement in Reserves Statement (on pages 15 to 17) and Note 10. Balance as at: 31 March 2011 000 -808,914 -1,329,289 55,768 335,902 29,868 -1,716,665 918,730 -797,935
26. Unusable Reserves 26.1 Summary of Unusable Reserves 31 March 2012 000 -906,510 -1,306,950 54,276 381,215 22,732 -1,755,237 1,092,831 -662,406
Revaluation Reserve Capital Adjustment Account Financial Instruments Adjustment Account Pensions Reserve Employee Statutory Adjustment Account Total Council Unusable Reserves Subsidiaries, Associates and Joint Ventures Total Group Unusable Reserves
1 April 2010 000 -769,093 -1,251,384 56,848 679,608 29,457 -1,254,564 1,058,162 -196,402
26.2 Revaluation Reserve The revaluation reserve contains the gains made by the Council arising from increases in the value of its property, plant and equipment. The balance is reduced when assets with accumulated gains are: revalued downwards or impaired and the gains are lost; used in the provision of services and the gains are consumed through depreciation; or disposed of and the gains are realised. The reserve contains unrealised gains accumulated since 1 April 2007, the date the reserve was created. Accumulated gains arising before 1 April 2007 were consolidated into the capital adjustment account. 2011/12 2010/11 000 000 Balance at 1 April 2010 n/a -734,264 Recognition of heritage assets Re-stated at 1 April 2010 Balance at 1 April Upward revaluation of assets Downward revaluation of assets and impairment losses not charged to the Surplus on the Provision of Services Surplus on revaluation of non-current assets not posted to the Surplus on the Provision of Service Difference between fair value depreciation and historical cost depreciation Accumulated gains on assets sold Amount written off to the capital adjustment account Balance at 31 March
77
n/a n/a -808,914 -150,195 39,315 -91,952 41,929
-34,829 -769,093 -769,093
-110,880
-50,023
11,021 2,263 13,284 -906,510
8,473 1,729 10,202 -808,914

26. Unusable Reserves - continued 26.3 Capital Adjustment Account The capital adjustment account provides a balancing mechanism for timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the Comprehensive Income and Expenditure Statement (CIES) (with reconciling postings from the revaluation reserve to convert fair value figures to a historical cost basis). The account is credited with the amounts set aside by the Council to finance the costs for acquisition, construction and enhancement of non-current assets. The account holds accumulated gains and losses on investment properties. The account also holds revaluation gains accumulated on property, plant and equipment prior to 1 April 2007, the date the revaluation reserve was created to hold such gains. Note 9 provides details of the source of the transactions posted to this account, except those involving the revaluation reserve. 2011/12 2010/11 000 000 Balance at 1 April -1,329,289 -1,251,384 Reversal of items relating to capital expenditure debited or credited to the CIES Charges for depreciation and impairment of 112,503 109,788 non-current assets Revaluation losses on property, plant and 58,542 57,592 equipment, heritage assets and assets held for sale Amortisation of intangible assets 1,621 262 Revenue exp. funded from capital under statute 33,811 44,820 Amounts of non-current assets written off on -2,033 -867 disposal or sale as part of the gain / loss on disposal to the CIES 204,444 -13,284 191,160 211,595 -10,202 201,393
Adjusting amounts written out of the revaluation reserve Net written out amount of the costs of noncurrent assets consumed in the year Capital financing applied in the year: Use of the capital receipts reserve to finance new capital expenditure Capital grants and contributions credited to the CIES that have been applied to capital financing Application of grants from the capital grants unapplied account / capital fund Statutory provision for the financing of capital investment charged against the General Fund and HRA balances Capital expenditure charged against the General Fund and HRA balances
-8,421 -58,702 -380 -77,417
-8,435 -134,998 -26,308 -73,893
-33,811 -178,731 0 168 9,742 -1,306,950
-44,820 -288,454 -171 -61 9,388 -1,329,289
Movement in donated assets Movements in the market value of investment properties credited to the CIES Other unrealised losses debited to the CIES Balance at 31 March
78

26. Unusable Reserves - continued 26.4 Financial Instruments Adjustment Account The financial instruments adjustment account provides a balancing mechanism between the different rates at which gains and losses (such as premiums on the early repayment of debt) are recognised under the Code and are required by statute to be met from the General Fund and Housing Revenue Account. This account also holds the equivalent interest rate adjustment on lender option / borrower option loans. 2011/12 2010/11 000 000 Balance at 1 April 55,768 56,848 Proportion of premiums incurred in previous financial years to be charged against the General Fund and HRA balances in accordance with statutory requirements Proportion of equivalent interest rate calculation on lender option / borrower option loans (LOBOs) Amount by which finance costs charged to the Comprehensive Income and Expenditure Statement are different from finance costs chargeable in accordance with statutory requirements Proportion of premiums incurred in previous financial years relating to Joint Boards Proportion of equivalent interest rate calculation on LOBOs relating to Joint Boards Net amount relating to Joint Boards Difference between actual interest paid and interest rate assumed in equivalent interest rate calculation on transition Balance at 31 March -47 -1,810 -1,804
357 -1,453
730 -1,074
-53
9 -38 -1
22 -31 25
54,276
55,768
The Council operates a loans pool on behalf of Lothian and Borders Fire and Rescue and Police Boards as well as the General Fund and Housing Revenue Account. A proportion of the premiums and discounts therefore relate to debt incurred by the joint boards. Although these amounts are held on the Council's Balance Sheet, the corresponding charges are not reflected in the Comprehensive Income and Expenditure Statement. 26.5 Pensions Reserve The pensions reserve provides a balancing mechanism arising from the different arrangements for accounting for post employment benefits (pension costs) and for funding pensions in accordance with statutory provisions. The Council accounts for pensions in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. Statutory arrangements, however, require benefits to be financed as the Council makes its contributions to Lothian Pension Fund or pays any pensions for which it is directly responsible. The debit balance on the pension reserve therefore shows a substantial shortfall in the benefits earned by past and current employees and the resources that the Council has set aside to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits require to be paid.
79

26. Unusable Reserves - continued 26.5 Pensions Reserve - continued 2011/12 000 335,902 66,159 40,774 2010/11 000 679,608 -161,242 -123,966
Balance at 1 April Actuarial gains or losses on pension assets and liabilities Reversal of items relating to retirement benefits debited or credited to the Surplus on the Provision of Services in the Comprehensive Income and Expenditure Statement Employer's pension contributions and direct payments to pensioners payable in the year Balance at 31 March
-61,620 381,215
-58,498 335,902
26.6 Employee Statutory Adjustment Account The employee statutory adjustment account provides a balancing mechanism arising from the different arrangements that would otherwise impact on the General Fund and HRA balances from accruing for compensated absences earned but not taken in the year (annual leave entitlement carried forward at 31 March). Statutory arrangements require that the impact on the General Fund and HRA balances is mitigated by transfers to or from this account. 2011/12 2010/11 000 000 Balance at 1 April 29,868 29,457 Settlement or cancellation of accrual made at the end of the preceding year Amount accrued at the end of the current year Amount by which officer remuneration charged to the Comprehensive Income and Expenditure Statement on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements Balance at 31 March -29,868 22,732 -7,136 -29,457 29,868 411
22,732
29,868
Terms and conditions for Scottish teachers have changed during 2011/12, with the introduction of school closure days. Some days within school holiday periods are now 'school closure days' and are non-accumulating absence days within the annual leave calculations. Costs relating to teachers within the annual leave calculation have decreased from 13.151m in 2010/11 to 7.073m in 2011/12. This is mainly attributable to the introduction of 'school closure days'. The impact of this can be seen in the employee statutory adjustment account. 26.7 Unusable Reserves - Group Members 31 March 2012 000 -60,383 -6,985 Balance as at: 31 March 2011 000 -58,456 -6,770 1 April 2010 000 -50,386 -4,720
Subsidiaries CEC Holdings Limited Capital adjustment account Capital contribution Lothian Buses Revaluation reserve Total Unusable Reserves - Subsidiaries
-6,150 -73,518
-28,274 -93,500
-28,641 -83,747
80

26. Unusable Reserves - continued 26.7 Unusable Reserves - Group Members - continued 31 March 2012 000 Associates and Joint Ventures Common Good Capital adjustment account Revaluation reserve Lothian and Borders Fire and Rescue Board Capital adjustment account Employee statutory adjustment account - pensions Employee statutory adjustment account - other Financial instrument adjustment account Pension reserve Revaluation reserve Lothian and Borders Police Board Capital adjustment account Employee statutory adjustment account - pensions Employee statutory adjustment account - other Financial instrument adjustment account Pension reserve Revaluation reserve Lothian Valuation Joint Board Capital adjustment account Employee statutory adjustment account Pension reserve Total Unusable Reserves - Associates and Joint Ventures Total Usable Reserves - Subsidiaries, Associates and Joint Ventures 27. Cash Flow Statement - Operating Activities The cash flows for operating activities include the following items: 2011/12 Group Council 000 000 -3,805 -3,779 100,348 -3,000 99,585 -3,000 2010/11 Group Council 000 000 -2,528 -2,409 94,854 -2,000 93,816 -2,000 -285 50 2,757 1,166,349 -322 53 3,056 1,012,230 -326 46 7,228 1,141,909 -30,294 53,905 1,591 84 990,122 -11,043 -28,827 44,026 1,495 102 861,089 -10,869 -35,878 48,649 1,167 136 942,937 -7,664 -18,136 10,475 318 24 189,650 -3,902 -16,856 9,583 223 31 172,489 -4,907 -16,752 12,187 255 45 212,478 -5,132 -12,668 -6,299 -13,849 -4,287 -14,146 -3,321 Balance as at: 31 March 2011 000 1 April 2010 000
1,092,831
918,730
1,058,162
Interest received Interest paid Dividends received
81

28. Cash Flow Statement - Investing Activities 2011/12 Group Council 000 000 315,680 308,576 25,782 43,694 -8,424 -33,289 -4,809 338,634 25,782 41,217 -8,157 -33,119 -4,254 330,045 2010/11 Group Council 000 000 189,302 183,825 33,856 63,724 -10,314 -12,193 -27,415 236,960 33,119 61,118 -8,436 -12,193 -25,990 231,443
Purchase of property, plant and equipment, investment property and intangible assets Purchase of short- and long-term investments Other payments for investing activities Proceeds from the sale of property, plant and equip., inv. property and intangible assets Proceeds from short- and long-term investments Other receipts from investing activities Net cash flows from investing activities 29. Cash Flow Statement - Financing Activities
Cash receipts of short- and long-term borrowing Other receipts from financing activities Cash payments for the reduction of the outstanding liabilities relating to finance leases Repayments of short- and long-term borrowing Net cash flows from investing activities 30. Analysis of Change in Financing Activities
2011/12 Group Council 000 000 -138,852 -136,925 -1,573 19,361 24,413 -96,651 -1,573 11,946 24,414 -102,138
2010/11 Group Council 000 000 -90,752 -90,723 -10,057 19,226 5,433 -76,150 -10,057 12,660 5,434 -82,686
Group Debt due within 1 Year Debt due after 1 Year Total debt due Other liquid resources Finance leases Total Council Debt due within 1 Year Debt due after 1 Year Total debt due Other liquid resources Finance leases Total
Balance 01.04.2011 000 -48,909 -1,274,809 -1,323,718 54,056 -237,847 -1,507,509 000 -46,863 -1,281,119 -1,327,982 54,044 -227,556 -1,501,494
Cash Trans. 000 14,853 -126,542 -111,689 -3,157 2,913 -111,933 000 14,853 -127,267 -112,414 -1,787 12,063 -102,138
Non Cash Trans. 000 -1,554 -366 -1,920 1,573 -2,913 -3,260 000 -1,554 -366 -1,920 215 -2,913 -4,618
Balance 31.03.2012 000 -35,610 -1,401,717 -1,437,327 52,472 -237,847 -1,622,702 000 -33,564 -1,408,752 -1,442,316 52,472 -218,406 -1,608,250
82

31. Reconciliation of Movements in Cash Receipts and Repayments of Short- and Long-Term Borrowing Balance Cash Non Cash Balance 01.04.2011 Trans. Trans. 31.03.2012 Group 000 000 000 000 Financing Temporary loans -7,559 -66 0 -7,625 PWLB -1,027,666 -112,512 -1,116 -1,141,294 Market loans -292,300 0 -811 -293,111 European Investment Bank -457 164 7 -286 Other Borrowing 4,264 725 0 4,989 Net financing -1,323,718 -111,689 -1,920 -1,437,327
Council Financing Temporary loans PWLB Market loans European Investment Bank Net financing
000 -7,559 -1,027,666 -292,300 -457 -1,327,982
000 -66 -112,512 0 164 -112,414
000 0 -1,116 -811 7 -1,920
000 -7,625 -1,141,294 -293,111 -286 -1,442,316
Accrued interest is included in the carrying value of investments and loans. 32. Amounts Reported for Resource Allocation Decisions The analysis of income and expenditure by service shown in the Comprehensive Income and Expenditure Statement is that specified by the Service Reporting Code of Practice. However, decisions about resource allocations are taken by the Council on the basis of budget reports analysed across departments. These reports are prepared on a different basis from the accounting policies used in the financial statements. In particular: no charges are made to departments in relation to capital expenditure, whereas depreciation, revaluation and impairment losses in excess of balances on the revaluation reserves are charged to services in the Comprehensive Income and Expenditure Statement. the cost of retirement benefits is based on the payment of employer's contributions to Lothian Pension Fund rather than the current service cost of benefits earned during the year. expenditure on support services is budgeted for within the relevant departments that provide the support services and not charged directly to services receiving the support services. The income and expenditure for the Council's main service areas is shown separately on the following pages. Income and expenditure for the subsidiary, associate and joint venture companies is shown in total.
83

32. Amounts Reported for Resource Allocation Decisions - continued 32.1 Departmental Income and Expenditure Children and 2011/12 Families 000 Fees, charges and other service income -7,585 Government grants and other contributions -7,290 Total Income Employee expenses Other service expenses Total Expenditure Net Expenditure / (Income) -14,875 254,752 146,888 401,640 386,765
City Devt. 000 -992 -2,774 -3,766 4,912 10,209 15,121 11,355
Corporate Governance 000 -27,897 -15,413 -43,310 44,071 68,634 112,705 69,395
Fees, charges and other service income Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Total Expenditure Net Expenditure / (Income)
Health and Social Care 000 -17,273 -45,419 -62,692 89,565 155,321 0 244,886 182,194 Net Cost of Benefits 000 0 0 -220,661 -220,661 0 221,912 0 0 0 221,912 1,251
Housing Revenue Account 000 -90,328 -1,612 -91,940 9,690 72,456 6,280 88,426 -3,514
Services Joint for Boards Communities 000 000 0 -214,240 -1,906 -40,989 -1,906 0 70,452 0 70,452 68,546 Other Group Members 000 -220,334 -173,913 -23,652 -417,899 80,419 147,784 237,932 0 10,100 476,235 58,336 -255,229 127,076 259,138 1,319 387,533 132,304
Fees, charges and other service income Income from associates Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Equal Pay 000 0 0 0 0 -11,042 0 0 0 0 -11,042 -11,042
Total 000 -578,649 -173,913 -359,716 -1,112,278 599,443 1,152,794 237,932 7,599 10,100 2,007,868 895,590
84

32. Amounts Reported for Resource Allocation Decisions - continued 32.1 Departmental Income and Expenditure - continued Children and Families 000 -6,941 -9,957 -16,898 256,266 143,651 0 399,917 383,019 Health and Social Care 000 -11,071 -39,989 -51,060 90,672 132,887 0 223,559 172,499 Net Cost of Benefits 000 -1 0 -214,907 -214,908 0 215,198 0 0 0 215,198 290
2010/11 Comparative Data Fees, charges and other service income Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Total Expenditure Net Expenditure / (Income)
City Devt. 000 -56,550 -6,674 -63,224 31,225 49,785 0 81,010 17,786 Housing Revenue Account 000 -86,376 -1,282 -87,658 9,768 70,267 6,009 86,044 -1,614
Corporate Services 000 -50,371 -7,223 -57,594 39,579 77,080 513 117,172 59,578
Finance 000 -6,447 -6,726 -13,173 19,962 7,709 0 27,671 14,498
Fees, charges and other service income Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Total Expenditure Net Expenditure / (Income)
Services Joint for Boards Communities 000 000 0 -132,029 -2,126 -51,199 -2,126 0 75,649 0 75,649 73,523 Other Group Members 000 -100,418 -211,222 -86,982 -398,622 71,976 79,743 147,231 0 10,500 309,450 -89,172 -183,228 94,293 233,895 1,755 329,943 146,715
Fees, charges and other service income Income from associates Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Equal Pay 000 0 0 0 0 18,416 0 0 0 0 18,416 18,416
Total 000 -450,204 -211,222 -427,065 -1,088,491 632,157 1,085,864 147,231 8,277 10,500 1,884,029 795,538
85

32. Amounts Reported for Resource Allocation Decisions - continued 32.2 Reconciliation of Departmental Income and Expenditure to Cost of Services in the Comprehensive Income and Expenditure Statements for the Group and the Council 2011/12 Group Council 000 000 895,590 837,254 -59,121 -59,121 2010/11 Group Council 000 000 795,538 884,710 -409,048 -409,048
Net expenditure in departmental analysis Net expenditure of services and support services not included in the dept. analysis Amounts in the Comprehensive Income and Expenditure Statement (CIES) not reported to management in departmental analysis Amounts included in departmental analysis not included in CIES Amounts included in the departmental analysis included below Cost of Services in the CIES Cost of Services in CIES
255,532
255,532
407,989
407,605
-61,620
-61,620
-58,498
-58,498
5,501
5,501
3,994
3,994
1,035,882
977,546
739,975
828,763
32.3 Reconciliation to Subjective Analysis Group 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income) Dept. Analysis 000 -578,649 -173,913 0 0 -359,716 -1,112,278 599,443 1,152,794 237,932 7,599 10,100 2,007,868 895,590 Services not in Analysis 000 41,842 0 0 0 7,562 49,404 -41,563 -66,962 0 0 0 -108,525 -59,121 Not Reported to Mgmt. 000 6,801 0 0 0 0 6,801 79,953 -6,801 0 0 175,579 248,731 255,532
86

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Not Included in CIES 000 0 0 0 0 0 0 -61,620 0 0 0 0 -61,620 -61,620 Reported Below Cost of Services 000 40,916 0 0 0 28,919 69,835 -17,274 -47,060 0 0 0 -64,334 5,501 Allocation of Recharges 000 0 0 0 0 0 0 3,105 4,494 0 -7,599 0 0 0
Group 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Group 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Interest payments Gain on disposal of assets Total Expenditure Net Expenditure / (Income)
Cost of Services 000 -489,090 -173,913 0 0 -323,235 -986,238 562,044 1,036,465 237,932 0 185,679 0 0 2,022,120 1,035,882
Corporate Amounts 000 -39,422 0 -4,995 -227,975 -849,458 -1,121,850 17,274 47,518 0 0 0 64,466 -1,812 127,446 -994,404
Total 000 -528,512 -173,913 -4,995 -227,975 -1,172,693 -2,108,088 579,318 1,083,983 237,932 0 185,679 64,466 -1,812 2,149,566 41,478
87

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Council 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income) Dept. Analysis 000 -358,315 0 0 0 -336,064 -694,379 519,024 1,005,010 7,599 0 1,531,633 837,254 Services not in Analysis 000 41,842 0 0 0 7,562 49,404 -41,563 -66,962 0 0 -108,525 -59,121 Not Reported to Mgmt. 000 0 0 0 0 0 0 79,953 0 0 175,579 255,532 255,532
Council 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Not Included in CIES 000 0 0 0 0 0 0 -61,620 0 0 0 -61,620 -61,620
Reported Below Cost of Services 000 40,916 0 0 0 28,919 69,835 -17,274 -47,060 0 0 -64,334 5,501
Allocation of Recharges 000 0 0 0 0 0 0 3,105 4,494 -7,599 0 0 0
88

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Council 2011/12 Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Interest payments Gain on disposal of assets Total Expenditure Net Expenditure / (Income) Cost of Services 000 -275,557 0 0 0 -299,583 -575,140 481,625 895,482 0 175,579 0 0 1,552,686 977,546 Corporate Amounts 000 -40,935 0 -4,814 -227,975 -849,458 -1,123,182 17,274 47,060 0 0 66,837 -2,033 129,138 -994,044
Total 000 -316,492 0 -4,814 -227,975 -1,149,041 -1,698,322 498,899 942,542 0 175,579 66,837 -2,033 1,681,824 -16,498
Group 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Dept. Analysis 000 -450,204 -211,222 0 0 -427,065 -1,088,491 632,157 1,085,864 147,231 8,277 10,500 1,884,029 795,538
Services not in Analysis 000 36,982 0 0 0 4,015 40,997 -369,498 -80,547 0 0 0 -450,045 -409,048
Not Reported to Mgmt. 000 1,590 11,101 0 0 0 12,691 236,929 -1,589 -11,101 0 171,059 395,298 407,989
89

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Not Included in CIES 000 0 0 0 0 0 0 -58,498 0 0 0 0 -58,498 -58,498 Reported Below Cost of Services 000 42,660 0 0 0 29,805 72,465 -20,531 -47,924 0 0 -16 -68,471 3,994 Allocation of Recharges 000 0 0 0 0 0 0 3,382 4,895 0 -8,277 0 0 0
Group 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Group 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Expenditure on associates and joint ventures Support service recharges Depreciation, amortisation and impairment Interest payments Gain on disposal of assets Total Expenditure Net Expenditure / (Income)
Cost of Services 000 -368,972 -200,121 0 0 -393,245 -962,338 423,941 960,699 136,130 0 181,543 0 0 1,702,313 739,975
Corporate Amounts 000 -42,917 0 -4,185 -226,583 -933,751 -1,207,436 20,531 50,804 0 0 16 72,583 -2,168 141,766 -1,065,670
Total 000 -411,889 -200,121 -4,185 -226,583 -1,326,996 -2,169,774 444,472 1,011,503 136,130 0 181,559 72,583 -2,168 1,844,079 -325,695
90

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Services not in Analysis 000 36,982 0 0 0 4,015 40,997 -369,498 -80,547 0 0 -450,045 -409,048 Reported Below Cost of Services 000 42,660 0 0 0 29,805 72,465 -20,531 -47,924 0 -16 -68,471 3,994 Not Reported to Mgmt. 000 0 0 0 0 0 0 236,929 0 0 170,676 407,605 407,605
Council 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Dept. Analysis 000 -349,786 0 0 0 -340,083 -689,869 560,181 1,006,121 8,277 0 1,574,579 884,710
Council 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Total Expenditure Net Expenditure / (Income)
Not Included in CIES 000 0 0 0 0 0 0 -58,498 0 0 0 -58,498 -58,498
Allocation of Recharges 000 0 0 0 0 0 0 3,382 4,895 -8,277 0 0 0
91

32. Amounts Reported for Resource Allocation Decisions - continued 32.3 Reconciliation to Subjective Analysis - continued Council 2010/11 Comparative Data Fees, charges and other service income Income from associates and joint ventures Interest and investment income Income from Council Tax Government grants and other contributions Total Income Employee expenses Other service expenses Support service recharges Depreciation, amortisation and impairment Interest payments Gain on disposal of assets Total Expenditure Net Expenditure / (Income) 33. Cost of Services 000 -270,144 0 0 0 -306,263 -576,407 351,965 882,545 0 170,660 0 0 1,405,170 828,763 Corporate Amounts 000 -42,917 0 -3,112 -226,583 -933,751 -1,206,363 20,531 47,924 0 16 71,810 -867 139,414 -1,066,949 Total 000 -313,061 0 -3,112 -226,583 -1,240,014 -1,782,770 372,496 930,469 0 170,676 71,810 -867 1,544,584 -238,186
Trading Operations The Council operates the following significant trading operations under the terms of the Local Government in Scotland Act 2003. The results are included within the Comprehensive Income and Expenditure Statement as shown below: 2011/12 2010/11 000 000 000 000 Included in Educational Services 194 -195 Edinburgh Catering Services - School and Welfare Catering Equal Pay included in Exceptional Expend. Included in Roads and Transport Edinburgh Road Services Included in Environmental Services Open Space Maintenance Refuse Collection (including Trade Waste) Total Surplus / (Deficit) Included in Cost of Services Included in Financing and Investment Income BlindCraft City Fleet Maintenance Services Direct Cleaning Edinburgh Building Services Edin. Catering Services - Other Catering Equal Pay included in Exceptional Expend. Total Surplus Included in Financing and Investment Income Total Surplus on Trading Operations n/a 327 607 4,553 14 0 5,501 8,099 0 1,231 490 683 2,598 426 946 30 -42 1,165
-523 345 -435 3,945 -144 806 3,994 5,159
92

33. Trading Operations - continued 33.1 Edinburgh Catering Services - School and Welfare Catering Edinburgh Catering Services - School and Welfare Catering provides catering services to primary, secondary and special schools as well as welfare catering (lunch clubs) for Social Work. 2011/12 000 5,166 194 2010/11 000 4,759 -195 2009/10 000 5,262 41 Cumulative 000 40
Turnover Surplus / (deficit)
Edinburgh Catering Services - School and Welfare Catering achieved its statutory obligation to break even over the three-year period. The cumulative surplus achieved was after meeting costs of 0.426m in 2010/11 and 0.362m in 2009/10 relating to equal pay claims. 33.2 Edinburgh Road Services Edinburgh Road Services provides repair and maintenance of carriageways, footways and street lighting. 2011/12 2010/11 2009/10 Cumulative 000 000 000 000 Turnover 23,307 23,177 23,813 Surplus 1,231 946 1,367 3,544
The surplus of 1.367m in 2009/10 was after meeting impairment costs for its Sighthill depot of 0.247m. There were no impairment costs in 2010/11 or 2011/12. Edinburgh Road Services achieved its statutory obligation to break even over the three-year period. 33.3 Open Space Maintenance Open Space Maintenance is responsible for keeping roads, pavements and grassed areas free from litter and dumping. The grounds maintenance section maintains most of the civic amenity green spaces, including public parks and school playing fields. It also provides forestry services for the city's tree stock. 2011/12 2010/11 2009/10 Cumulative 000 000 000 000 Turnover 18,404 18,454 18,941 Surplus 490 30 185 705
Open Space Maintenance achieved its statutory obligation to break even over the three-year period. 33.4 Refuse Collection (including Trade Waste) This STO provides a weekly refuse collection for over 227,000 households, with the majority of these properties being served by a containerised waste collection system. Trade waste provides a collection and disposal service to producers of commercial waste throughout the city. In addition the service provides uplifts of bulky household refuse. 2011/12 2010/11 2009/10 Cumulative 000 000 000 000 Turnover 15,872 16,213 14,849 Surplus / (deficit) 683 -42 -1,760 -1,119
Refuse Collection failed to achieve its statutory obligation to break even over the three-year period. Service improvements are being implemented which have resulted in a surplus being achieved in 2011/12. These improvements, which include new shift patterns and changes to routing are on-going and once fully implemented in 2012/13 will bring additional savings.
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33. Trading Operations - continued 33.5 BlindCraft BlindCraft provided supported employment for blind, visually impaired and other people with disabilities, and produced a range of goods which were sold through various outlets. In recent years, BlindCraft has made significant deficits which have been funded by the Council, although the deficit stabilised at 1m per annum, before the contribution from the Health and Social Care department, this level of funding was not sustainable. Following a formal period of consultation no agreement was reached on how to reduce the funding levels. At a meeting on 10 February 2011 Council members voted to close BlindCraft. A further period of statutory consultation was undertaken to mitigate the number and effects of redundancy on the staff affected. BlindCraft closed on 29 July 2011. Redundancy costs were provided for in the 2010/11 accounts. The Council has provided on-going employment support for disabled people through the approval of a budget of 0.415m. In the year to 31 March 2012, BlindCraft returned a surplus of 0.041m, after a subsidy of 0.415m from the Health and Social Care department. This figure is included within the Social Work heading in the Comprehensive Income and Expenditure Statement. As a result of the closure, BlindCraft has not been included within trading operations for 2011/12. Trading results for 2010/11 and 2009/10 were as follows: 2010/11 000 1,199 -523 2009/10 000 1,522 10 Cumulative 000 -513
Turnover (Deficit) / Surplus
33.6 City Fleet Maintenance Services City Fleet Maintenance Services provides a full range of vehicle and plant maintenance services. 2011/12 000 4,146 327 2010/11 000 4,388 345 2009/10 000 4,262 420 Cumulative 000 1,092
Turnover Surplus
City Fleet Maintenance Services achieved its statutory obligation to break even over the three-year period. 33.7 Direct Cleaning Direct Cleaning provides a daily internal building cleaning service to all departments of the Council. It also undertakes specialist cleaning when required. 2011/12 000 6,847 607 2010/11 000 6,506 -435 2009/10 000 6,928 -347 Cumulative 000 -175
Turnover Surplus / (Deficit)
Direct Cleaning failed to achieve its statutory obligation to break even over the three-year period. The cumulative deficit shown is after meeting costs of 0.724m in 2010/11 and 0.966m in 2009/10 relating to equal pay claims. Excluding these exceptional items, Direct Cleaning would have broken even over the three-year period.
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33. Trading Operations - continued 33.8 Edinburgh Building Services Edinburgh Building Services is a multi-trade property maintenance trading operation providing a full repairs service to its clients. 2011/12 000 28,514 4,553 2010/11 000 27,849 3,945 2009/10 000 27,315 4,750 Cumulative 000 13,248
Turnover Surplus
Edinburgh Building Services achieved its statutory obligation to break even over the three-year period. 33.9 Edinburgh Catering Services - Other Catering Edinburgh Catering Services - Other Catering provides staff catering and hospitality in five Council buildings. 2011/12 000 1,206 14 2010/11 000 1,296 -144 2009/10 000 1,358 -22 Cumulative 000 -152
Turnover (Deficit) / Surplus
Edinburgh Catering Services - Other Catering failed to achieved its statutory obligation to break even over the three-year period. The cumulative deficit shown was after meeting costs of 0.084m in 2010/11 and 0.055m in 2009/10 relating to equal pay claims. Excluding costs relating to equal pay, Edinburgh Catering Services - Other Catering returned a deficit of 0.06m in 2010/11 and a surplus of 0.033m in 2009/10, with a cumulative deficit of 0.013m over the three-year period, excluding costs relating to equal pay claims. Edinburgh Catering Services - Other Catering has produced a surplus for the first time in recent years. This improvement is due to careful cost management within the service, which now operates from a reduced cost base. It is hoped that further surpluses will be achieved in the coming years and in the process will turn the rolling three-year period into a surplus position. 34. Financial Support and Guarantees 34.1 Loans and guarantees The Council has made loans to the following organisations. Edinburgh Leisure Forth Sector
2011/12 000 230 110
2010/11 000 230 135
The Edinburgh Leisure loan is due to be repaid in July 2012. The Forth Sector loan is being repaid over two years, with two instalments having been paid in 2011/12 and an account invoiced for a third, although this was outstanding at 31 March. Both of these loans have been made on an interest-free basis. Adjustments have been made under the requirements of IAS 39 as required by the Code. 34.2 Shared Equity Scheme In 2010/11, the Council approved a pilot scheme for a Council-backed shared equity scheme to help buyers purchase homes from PARC (a subsidiary of CEC Holdings Limited) and support the regeneration of Craigmillar. The Council provided assistance to sixteen purchasers, at a cost of 0.484m. There was no further assistance provided in 2011/12. The monies are required to be repaid to the Council either on sale of the property or after twenty years, whichever occurs earlier. Interest for the period up to the first five years is charged to PARC and thereafter to the purchasers.
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35. Agency Income and Expenditure The Council has entered into agency agreements with other local public bodies to provide and receive services, the income and expenditure for which is included in the Comprehensive Income and Expenditure Statement. The main activities were: 2011/12 2010/11 Expenditure 000 000 Payments to other local authorities in respect of: Area waste project 460 417 Educational services for children 1,796 1,731 Care services for children 246 148 Others Police officers 2,641 2,641 Lothian and Borders Police - cab inspection 384 407 Total Expenditure Income Receipts in respect of library services: Health Boards Scottish Prison Service Receipts in respect of translation and Interpretation services: Lothian Health Board Receipts in respect of rates collection services: Scottish Water Midlothian Council Receipts from other local authorities in respect of: Child protection officer Criminal justice services Educating pupils Pentland Hills Regional Park management Care services for children Risk Factory Social work undertakings Total Income 5,527 5,344
-26 -13 -803 -1,410 -52 0 -880 -557 -66 -523 -48 -2,739 -7,117
-29 -5 -689 -1,343 -40 -34 -899 -680 -78 -374 -53 -2,754 -6,978
36. Audit Costs The fees payable to Audit Scotland in respect of external audit services undertaken in accordance with the Code of Audit Practice are 0.711m (2010/11 0.761m). The Council also received a rebate of 0.06m in respect of the 2010/11 audit. The Council has re-charged 0.049m of the 2011/12 audit fee to Lothian Pension Funds in respect of its audit (2010/11 0.054m). In addition, the Council is responsible for paying fees to Geoghegans for the audit of tie's 2011/12 accounts. The fee payable to them is 0.023m and this is included in the Council's Comprehensive Income and Expenditure Statement. 37. Grant Income Grants and contributions credited to the Comprehensive Income and Expenditure Statement include the following: 2011/12 2010/11 000 000 000 000 Revenue Funding Credited to taxation and non-specific grant income General revenue funding -458,120 -579,737 Non-domestic rates -297,442 -755,562 -188,733 -768,470
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37. Grant Income - continued Credited to services Government grants Department of Works and Pensions - Housing Benefits N.H.S. Lothian Other Local Authorities Capital City Partnership Edinburgh International Conference Centre Edinburgh Leisure EventScotland Lothian and Borders Community Justice Lothian and Borders Fire and Rescue Board Lothian and Borders Police Lottery funding Scottish Enterprise SportScotland Winter Festivals (including rental income) Credited to Council Tax Income Department of Works and Pensions - Council Tax Benefits Total Capital Funding Transport Scotland Less: Accrued into 2010-11 Scottish Government International Conference Centre Income Trust Scottish Enterprise Scottish Sports Council Other grants and contributions, including contributions from developers and individuals Usher Hall Trust Stevenson College Lothian Health Board Forth Estuary Transport Authority Royal Institute for the Blind Scottish Futures Trust Edinburgh World Heritage Trust Lothian and Borders Safety Camera P/ship Edinburgh Leisure Scottish and Southern Energy Waste Recycling Environmental Grant Parc Craigmillar Cruden Homes Lottery funding SportScotland Total 2011/12 000 -21,760 -191,313 -23,859 -4,568 -25 -54 -195 0 0 0 0 -132 -10 -789 -945 -243,650 2010/11 000 -30,744 -178,990 -21,366 -4,597 -2,353 -128 -95 -138 -45 -10 -179 -673 -116 -829 -826 -241,089
000
000
-29,194 -1,028,406 -48,071 47,704 -51,593 0 -6,624 -224 -1,397 0 0 -680 -118 0 -1,187 -271 0 0 -1,000 -183 -178 -800 -25 -330 -64,977
-29,473 -1,039,032 -90,465 n/a -31,561 -6,493 -1,852 -1,417 -1,519 -600 -267 -250 -247 -193 -176 -176 -146 -105 0 0 0 -9 0 0 -135,476
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38. Related Parties During the year, the Council entered into a number of transactions with related parties. The most material of these transactions, not disclosed elsewhere, are shown below.
38.1 Subsidiaries and Other Organisations - Revenue Income and Expenditure 2011/12 000 Revenue Expenditure CEC Holdings (including EDI Group, EICC, Waterfront Edinburgh, and PARC) Edinburgh Festival Theatres Edinburgh Leisure Limited Revenue funding Other expenditure Edinburgh World Heritage Trust Lothian and Borders Police Board Capital grant Lothian Buses Limited Supported bus services Other expenditure NHS Bodies Other Local Authorities Scottish Government Subsidiaries / Voluntary Organisations Criminal Justice Bodies Edinburgh International Festival Society Festivals Edinburgh Ltd Handicab Health Projects Lifecare Edinburgh Marketing Edinburgh Royal Lyceum Theatre Co Ltd tie Limited Total Revenue Expenditure Revenue Income CEC Holdings Limited (EDI Group Limited) Loan interest Rent - car parks Edinburgh Festival Theatres Edinburgh Leisure - prudential investment costs Professional services, other grants and funding CEC Holdings Limited (including EICC Limited) Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Other Local Authorities Scottish Government tie Limited 2010/11 000
482 968 8,733 364 260 1,906 495 495 1,775 1,054 405 859 2,389 326 448 842 494 885 640 2,561 26,381
213 1,193 9,080 94 300 2,126 579 11 0 0 0 16,837 0 0 0 0 0 0 0 0 0 30,433
-221 -739 -256 0 -235 0 -220 -822 -727 0
-224 -795 -277 -108 -170 -106 -77 -891 -446 -57
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38. Related Parties - continued 38.1 Subsidiaries and Other Organisations - Revenue Income and Expenditure - continued 2011/12 000 Revenue Income - continued Lothian Health Board Change Fund Resource transfers Other Grants and Fees SESTRAN - various grants and fees tie Limited Total Revenue Income Joint Board Requisitions Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Lothian Valuation Joint Board SESTRAN Total Interest on Revenue Balances Central Support Income Forth Estuary Transport Authority Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Lothian Valuation Joint Board Pension Funds Total Central Support Income Interest on Revenue Balances Forth Estuary Transport Authority Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Lothian Valuation Joint Board Pension Funds SESTRAN Total Interest on Revenue Balances Loans Charges Recovered Further Education Colleges (pre 1996 expenditure) Lothian and Borders Fire and Rescue Board Lothian and Borders Police Board Total Loans Charges Lothian Pension Fund Cessation payments on behalf of other organisations Transfer of Contributions to Lothian Pension Fund (incl. deficit funding) Pension Strain Costs Total Lothian Pension Fund
99
2010/11 000
-4,917 -20,329 -111 0 -578 -29,155
0 -20,271 -222 -50 -801 -24,495
21,051 45,628 3,773 71 70,523
22,753 46,848 3,924 3 73,528
-98 -302 -129 -64 -594 -1,187
-69 -269 -136 -54 -684 -1,212
-12 10 -4 3 23 2 22
-11 10 32 3 25 3 62
-27 -1,655 -3,465 -5,147
-26 -1,572 -3,403 -5,001
4,891 62,577 2,497 69,965
0 59,690 4,135 63,825

38. Related Parties - continued 38.2 Subsidiaries and Other Organisations - Capital Expenditure Capital Expenditure Edinburgh Leisure Edinburgh Military Tattoo tie Limited Total Capital Expenditure
2011/12 000 165 6,170 42,819 49,154
2010/11 000 541 2,645 79,108 82,294
38.3 Related Parties - indebtedness The following represent material amounts due to / (by) the Council, at 31 March 2012. Capital CEC Holdings Limited (EDI Group Ltd) SUSTRANS International Conference Centre Trust tie Limited Transport Scotland NHS Lothian Revenue CEC Holdings Limited (including all subsidiaries) NHS Bodies Department for Work and Pensions Edinburgh Leisure Limited Edinburgh Military Tattoo Festival City Theatres Trust Forth Estuary Transport Authority Lothian and Borders Criminal Justice Authority Lothian and Borders Fire Board Lothian and Borders Police Board Lothian Valuation Joint Board Pension Funds Scottish Government SESTRAN Transport Scotland Other Indebtedness HM Revenues and Customs - VAT HM Revenues and Customs - PAYE and NI Investments held on behalf of, and repayable to: CEC Holdings Common Good Lothian and Borders Fire Board Lothian and Borders Police Board tie Limited 0 430 0 0 686 355 1,471 2,781 771 -1,345 213 203 0 620 -912 -768 3,550 -750 -12,089 975 1,643 0 -5,108 10,182 -12,458 -2,276 -47 -1,578 -3,034 -14,895 0 -19,554
100
3,500 0 1,213 13,607 0 0 18,320 254 0 -1,371 0 0 400 2,753 0 -3,172 3,956 -608 -4,994 0 352 50,834 48,404 4,544 -12,128 -7,584 -73 -1,566 -3,011 -20,108 -25,305 -50,063

39. Capital Expenditure and Capital Financing The total amount of capital expenditure incurred during the year is shown below (including the value of assets acquired under finance leases and PPP contracts), together with the resources that have been used to finance it. Where capital expenditure is to be financed in future years through charges to revenue (loan charges), capital expenditure results in an increase in the capital financing requirement. This shows the amount of capital expenditure that has yet to be financed. The capital financing requirement is analysed below. 2011/12 2010/11 000 000 000 000 Opening capital financing requirement 1,412,064 1,400,470 Capital Investment Property, plant and equipment Heritage Assets Assets held for sale Intangible assets Revenue expenditure funded from capital under statute Minor adjustments to PPP schools during the year (reflected in finance leases) Sources of Finance Capital receipts Government grants and other contributions Loans fund / finance lease repayments -8,421 -92,918 -79,007 -180,346 Closing capital financing requirement Explanation of movements in year Increase in underlying need to borrow (supported by government financial assistance) (Decrease) / increase in underlying need to borrow (not supported by government financial assistance) Voluntary debt repayment - HRA Assets acquired under finance leases Assets acquired under PPP contracts Increase in capital financing requirement 0 21,274 1,563,551 -8,558 -206,252 -75,805 -290,615 1,412,064 297,354 8 321 124 33,811 215 331,833 256,839 88 44 418 44,820 0 302,209
155,390
-5,699
-4,000 97 0 151,487
-4,000 19 0 11,594
From 2011/12 onwards, the Scottish Government has withdrawn notional capital consent. This means that previously, where the Finance Settlement included loan charge support towards 21.274m of borrowing, from 2011/12 onwards, capital support is provided solely in the form of capital grant. The increase in the underlying need to borrow (unsupported by government financial assistance) is mainly attributable to expenditure on the tram project. This expenditure and subsequent additional borrowing is based on the revised project cost of 776m, resulting in an additional 231m being funded by the Council over the life of the project.
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40. Leases 40.1 Assets Leased in - Finance Leases The Council has acquired two buildings, and its IT and copying equipment under finance leases. The assets acquired under these leases are included in property, plant and equipment in the Balance Sheet at the following net amounts: 2011/12 2010/11 Group Council Group Council 000 000 000 000 Value at 1 April 17,529 7,238 26,399 10,354 Additions during the year Repayments during the year Value at 31 March Other land and buildings Vehicles, plant, equipment and furniture Value at 31 March 11,299 -10,122 18,706 508 18,198 18,706 97 -3,014 4,321 508 3,813 4,321 19 -8,889 17,529 610 16,919 17,529 19 -3,135 7,238 610 6,628 7,238
The Council is committed to making minimum lease payments under these leases, comprising settlement of the long-term liability for the interest in the assets acquired and finance costs that will be payable by the Council in future years while the liability remains outstanding. The minimum lease payments are shown below: 2011/12 2010/11 Group Council Group Council 000 000 000 000 Finance lease liabilities: Current 7,435 2,206 8,168 2,995 Non-current Finance costs payable Minimum lease payments 11,271 392 19,098 2,115 392 4,713 9,361 640 18,169 4,243 640 7,878
The minimum lease payments will be payable over the following periods: Minimum Finance Lease Repayments at 31.03.12 Group Council 000 000 7,632 2,403 6,279 5,187 19,098 Finance Lease Liabilities Not later than one year Later than one year and not later than five years Later than five years 000 7,435 6,084 5,187 18,706 2,310 0 4,713 000 2,206 2,115 0 4,321 at 31.03.11 Group Council 000 000 8,425 3,252 9,642 102 18,169 000 8,168 9,259 102 17,529 4,524 102 7,878 000 2,995 4,141 102 7,238
Not later than one year Later than one year and not later than five years Later than five years
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40. Leases - continued 40.2 Assets Leased in - Operating Leases The Group leases in property and vehicles financed under the terms of operating leases. The amount charged to the Comprehensive Income and Expenditure Statement under these arrangements and the value of future payments under operating leases is shown below. The amounts recognised as an expense during the year include 0.400m of contributions paid by employees towards cost of car leasing (2010/11 0.421m). Under these operating leases, the Group is committed to paying the following sums, of which 0.588m is recoverable from employees (2010/11 0.621m): 2011/12 Council Group 000 000 6,310 5,975 11,916 6,830 25,056 Value at 31 March Other land and buildings Vehicles, plant, equipment and furniture 10,939 6,103 23,017 2010/11 Group Council 000 000 6,351 6,066 13,689 7,415 27,455 13,655 7,192 26,913
Future Repayment Period Not later than one year Later than one year and not later than five years Later than five years
23,489 1,567 25,056
21,450 1,567 23,017
25,119 2,336 27,455
24,577 2,336 26,913
Recognised as an expense during the year
6,928
6,634
6,851
6,317
40.3 Assets Leased Out by the Council - Operating Leases The Council leases out property and equipment under operating leases for a number of purposes, including: for economic development purposes, including regeneration and to provide suitable affordable accommodation for local businesses. to arms' length companies for the provision of services such as sport and leisure and theatres. The future minimum lease payments receivable under non-cancellable leases in future years are: 2011/12 000 11,567 29,376 149,355 190,298 2010/11 000 10,812 29,496 150,384 190,692
Not later than one year Later than one year and not later than five years Later than five years
The Council has a number of leases that are agreed for a period of over 100 years, the majority of which relate to land.
103

41. Public Private Partnerships and Similar Contracts 41.1 PPP - Education Projects In 2001, the Council entered into a Public Private Partnership (PPP1) for the provision of school buildings, maintenance and other facilities with Edinburgh Schools Partnership. This agreement was supplemented by a further agreement in April 2004, which now requires Edinburgh Schools Partnership to either replace or substantially renovate ten primary, five secondary and two special schools, together with one close support unit and a community wing, and to maintain these schools to a high standard. When the agreement ends in July 2033 the schools will be handed to the Council with a guaranteed maintenance-free life of five years. In April 2007, the Council entered into a second Public Private Partnership (PPP2) for the provision of school buildings, maintenance and other facilities with Axiom Education Limited. This required Axiom Education Limited to replace six secondary schools and two primary schools and to maintain these schools to a high standard. When the agreement ends in July 2038 the schools will be handed to the Council with a guaranteed maintenance-free life of five years. Under the agreements the Council is committed to paying the following sums as detailed in the contractor's final bid model: Payment for Services 000 14,499 79,758 98,415 120,488 135,836 82,662 6,375 538,033 Reimburse. of Capital Expenditure 000 6,459 35,485 37,384 39,009 50,253 43,046 2,449 214,085
Payable in 2012/13 Payable within two to five years Payable within six to ten years Payable within eleven to fifteen years Payable within sixteen to twenty years Payable within twenty one to twenty five years Payable within twenty six to thirty years
Interest 000 16,584 80,617 74,390 66,113 56,118 36,815 1,790 332,427
Total 000 37,542 195,860 210,189 225,610 242,207 162,523 10,614 1,084,545
Payments due under the PPP1 scheme have been inflated by 1.11% per annum and those due under the PPP2 scheme have been inflated by 1.67% per annum, reflecting the terms of the separate contracts. The amounts disclosed as reimbursement of capital expenditure are included in other long-term liabilities on the Balance Sheet. The unitary charges paid to the service providers include amounts to compensate the providers for the capital expenditure incurred and interest payable whilst the capital expenditure remains to be reimbursed. The liability outstanding to pay the service providers for capital expenditure incurred is as follows: 2011/12 2010/11 000 000 Balance at 1 April 220,318 226,848 PPP unitary charge restatement adjustment Repayments during the year Balance at 31 March 215 -6,448 214,085 0 -6,530 220,318
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41. Public Private Partnerships and Similar Contracts - continued 41.2 Provision of Information Technology services In 2001 the Council entered into a ten year Public Private Partnership for the provision of information technology services. This contract has now been extended for another five years. Under the agreement the Council is committed to paying the following sums in cash terms (assuming an inflationary uplift at the level shown):Future Repayment Period 2012-13 2013-14 2014-15 2015-16 Inflationary Uplift 3.6% 4.0% 2.9% 3.0%
000 26,422 27,479 28,276 29,125 111,302
The equipment assessed as a finance lease within this contract is included in note 40.1. The above payments include the elements relating to the finance lease for the equipment. The cost of information technology is included in overheads and is thus allocated to direct services. 41.3 Provision of Parking Enforcement The Council has entered into a five year contract with National Car Parks for the provision of parking enforcement. A two-year extension to the contract has now been granted for the period to November 2013. Under the agreement the Council is committed to paying the following sums in cash terms (assuming an inflationary uplift at the level shown):Future Repayment Period 2012-13 2013-14 Inflationary Uplift 5.0% 5.0%
000 6,160 4,310 10,470
41.4 Waste Disposal The Council entered into a twenty year contract with Viridor in 2000 to supply waste to their landfill site in Dunbar. The contract requires the Council to supply an agreed tonnage to the landfill site each calendar year. Fees are subject to review twice a year, based on civil engineering indices. Under the agreement the Council is committed to paying the following sums in cash terms (assuming an increase of 5% per annum):Future Repayment Period 2012 - 2013 2013 - 2018 2018 - 2020
000 3,181 22,769 6,434 32,384
41.5 Other Rolling Contracts The Council has entered into a number of rolling contracts to provide services, which are mainly care orientated through 'Supporting People'. The annual value of these contracts is 19.761m. There are a further 34.180m per annum of rolling contracts for services provided to adults by Health and Social Care.
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42. Pension schemes accounted for as defined contribution schemes The Scottish Teachers' Superannuation Scheme is an unfunded scheme administered by the Scottish Public Pensions Agency. The scheme is excluded from the accounting requirements of IAS 19 as it is a national scheme which does not allow for the identification of pension liabilities consistently and reliably between participating authorities. The accounts, therefore, only include the payments made by the Council to the scheme in year and do not reflect the estimated pension assets or liabilities of the scheme. The exception to this are payments in relation to unfunded pension enhancements for members of the scheme as they are administered through the Local Government Pension Scheme and are taken into consideration in accounting for pension costs under IAS 19. 2011/12 2010/11 000 % 000 % Amount paid to Scottish Government in respect 18,223 18,640 of teachers' pension costs As a percentage of teachers' pensionable pay Amount paid in respect of added years As a percentage of teachers' pensionable pay Capitalised value of discretionary awards entered into prior to 2011/12 21,054 0 0.00 20,338 14.90 0 0.00 14.90
At 31 March 2012, creditors include 2.183m (2010/11 2.229m) in respect of teachers' superannuation. 43. Defined Pension Schemes 43.1 Participation in Pension Scheme Employees other than teachers are eligible to join the Local Government Pension Scheme. The pension costs charged to Services in respect of these employees have been calculated under IAS 19 Employee Benefits. In terms of this scheme in 2011/12, the Council paid an employer's contribution of 52.052m (2010/11 51.310m) into the Lothian Pension Fund, representing 21.3% (2010/11 20.6%) of pensionable pay. The contribution rate was determined by the Fund's Actuary based on triennial actuarial valuations as at 31 March 2008. Contributions for 2012/13 will be based on the results of the March 2011 actuarial review. In accordance with the Code of Practice guidance on the application of IAS19, Employee Benefits, the Comprehensive Income and Expenditure Statement recognises the true economic cost of retirement benefits earned by employees in 2011/12, irrespective of when benefits are due to be paid. These costs are based upon an assessment by the Fund's Actuary of the share of fund assets and liabilities attributable to the City of Edinburgh Council at 31 March 2008. The Fund's Actuary is unable to provide an analysis of IAS19 pension costs by individual service. The charge in the Comprehensive Income and Expenditure Statement applied against each service included in 'Cost of Services' reflects an apportionment of costs in line with the actual cash payments made by the Council to Lothian Pension Fund. 43.2 Transactions Relating to Post-Employment Benefits The cost of pension benefits, as assessed by the Fund's Actuary and reflected within 'Cost of Services', differed from the cash payment to the Fund charged against Council Tax. The following summarises the entries reflected within the Comprehensive Income and Expenditure Statement in respect of accounting for pensions under IAS19. The amount by which pension costs calculated in accordance with IAS19 are different from the contributions due under the pension scheme regulations is included in the Movement in Reserves Statement.
106

43. Defined Pension Schemes - continued 43.2 Transactions Relating to Post-Employment Benefits - continued 2011/12 Comprehensive Income and Expenditure Statement (CIES) Cost of services: Current service costs Past service costs / (gains) Settlements and curtailments Financing and investment income: Interest cost Expected return on scheme assets 000 000 % of pay 2010/11 000 000 % of pay
42,786 1,207 1,404 45,397 101,164 -105,787 -4,623
18.0% 0.5% 0.6%
53,243 -182,340 687 -128,410
20.7% (70.9%) 0.3%
42.6% (44.5%)
108,317 -103,873 4,444 -123,966
42.1% (40.4%)
Total post employee benefit charged to the surplus on provision of services benefits in accordance with the Code Other post employment benefit charged to the CIES Actuarial (losses) / gains on plan assets Actuarial gains / (losses) on obligation Total actuarial gains and losses charged to the CIES Movement in Reserves Statement Reversal of net charges made to the surplus on provision of services for post employment benefits in accordance with the Code Actual amount charged against the General Fund Balance for pensions in the year: Employer's contributions payable to the scheme Contributions in respect of unfunded costs
40,774
-102,303 36,144 -66,159
-25,531 186,773 161,242
20,846
182,464
55,193 6,427 61,620
52,430 6,068 58,498
The cumulative amount of actuarial gains and losses recognised in the Comprehensive Income and Expenditure Statement to 31 March 2012 is a loss of 517.425m (2010/11 451.266m loss).
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43. Defined Pension Schemes - continued 43.2 Transactions Relating to Post-Employment Benefits - continued The amounts charged to the Comprehensive Income and Expenditure Statement are based on employer and employee contributions up to 31 March 2012 and the number of employees, deferred pensioners and pensioners as at 31 December 2011 in order to estimate the position for the year to 31 March 2012. From October 2006, members retiring are able to elect an additional tax-free lump sum in lieu of part of their pension ("commutation"). Allowance has been made for future retirees to elect to take 50% of the maximum additional tax-free cash up to HM Revenues and Customs limits for pre-April 2009 service and 75% of the maximum tax-free cash for post-April 2009 service. 43.3 Asset and Liabilities in Relation to Post Employment Benefits Reconciliation of the present value of the scheme liabilities (defined benefit obligation): 2011/12 000 1,843,330 42,786 101,164 15,477 -36,144 1,207 1,404 -6,427 -62,536 1,900,261 2010/11 000 2,096,893 53,243 108,317 16,072 -186,773 -182,340 687 -6,068 -56,701 1,843,330
Defined benefit obligation at 1 April Current service cost Interest cost Contributions by members Actuarial (gains) / losses Past service costs Losses on curtailments and settlements Estimated unfunded benefits paid Estimated benefits paid Defined benefit obligation at 31 March
Reconciliation of the fair value of the scheme assets: Defined benefit obligation at 1 April Expected return on assets Contributions by members Contributions by the Council Contributions in respect of unfunded benefits Actuarial losses Unfunded benefits paid Benefits paid Defined benefit obligation at 31 March
2011/12 000 1,507,428 105,787 15,477 55,193 6,427 -102,303 -6,427 -62,536 1,519,046
2010/11 000 1,417,285 103,873 16,072 52,430 6,068 -25,531 -6,068 -56,701 1,507,428
The expected return on assets is based on the long-term future expected investment return for each asset class as at the beginning of the period (i.e. as at 31 March 2011 for the year to 31 March 2012, or date of joining the fund if later). Assets have been valued at bid value, as required under IAS19. The actual return on scheme assets in the year was 31.969m (2010/11 78.687m)
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43. Defined Pension Schemes - continued 43.4 Scheme History 2011/12 000 1,519,046 Fair value of employer assets Present value of defined benefit obligation Deficit Experience gains / (losses) on assets Experience gains / (losses) on liabilities Actuarial gains / (losses) on employer assets Actuarial gains / (losses) on obligation Actuarial gains / (losses) recognised in Movement in Reserves Statement -1,900,261 -381,215 -102,303 72,144 -102,303 36,144 -66,159
2010/11 000 1,507,428 -1,843,330 -335,902 -25,531 13,778 -25,531 186,773 161,242
2009/10 000 1,417,285 -2,096,893 -679,608 293,067 -6,282 293,067 -697,195 -404,128
2008/09 000 1,038,933 -1,315,114 -276,181 -355,405 45,059 -355,405 161,963 -193,442
2007/08 000 1,296,168 -1,394,315 -98,147 -135,790 5,968 -135,790 284,268 148,478
The net pension liability of 381.215m exceeds current general fund reserves of 101.438m by 279.777m. The actuarial valuation will consider the appropriate employer's rates and this, together with revenues generated from the investments, will be utilised to meet the fund's commitments. The total contributions expected to be made to Lothian Pension Fund by the Council in the year to 31 March 2013 are 50.628m. 43.5 Basis for Estimating Assets and Liabilities Hymans Robertson, the independent actuaries to Lothian Pension Fund, have advised that the financial assumptions used to calculate the components of the pension expense for the year ended 31 March 2012 were those from the beginning of the year (i.e. 31 March 2011) and have not been changed during the year. The main assumptions in the calculations are: Expected return on assets 2011/12 2010/11 Equity investments Bonds Property Cash Average future life expectancies at age 65: Current pensioners Current pensioners Future pensioners Future pensioners Inflation / pension increase rate Salary increase rate (see below) Expected return on assets Discount rate 6.2% 4.0% 4.4% 3.5% 7.5% 4.9% 5.5% 4.6% male female male female As % of plan assets 2011/12 2010/11 79% 8% 11% 2% 20.4 years 22.8 years 22.6 years 25.4 years 2.5% 4.8% 5.8% 4.8% 79% 8% 10% 3% 20.8 years 24.1 years 22.3 years 25.7 years 2.8% 5.1% 7.0% 5.5%
Note: The salary increase assumption used for 2011/12 is 1.0% p.a. for the first three years, moving to 4.8% p.a. from year three. For 2010/11, it was 1% until 31 March 2013 thereafter rising to 5.1%.
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43. 43.6 Defined Pension Schemes - continued History of Experience Gains and Losses The actuarial gains and losses identified as movements on the pensions reserve can be analysed into the following categories, measured as a percentage of assets or liabilities at 31 March. 2011/12 % (6.7%) (1.9%) 2010/11 % (1.7%) (10.1%) 2009/10 % 20.7% 33.2% 2008/09 % (34.2%) (12.3%) 2007/08 % (10.5%) (20.4%)
Experience gains and (losses) on assets Experience gains and (losses) on liabilities 43.7
Pension Reserves - Group Position The pension reserves shown in the Group Balance Sheet relate to the Council. Pension reserves for the Police, Fire and Valuation joint boards are included in unusable reserves, as these are statutory accounts under the Code. Local government legislation provides that local authorities have an obligation to meet the expenditure of the joint boards of which they are constituent members. As a consequence, the City of Edinburgh Council has obligations to meet the liabilities arising from the joint board pension deficits as they fall due. Pension reserves for other companies in the group are included in usable reserves. The value of the pension reserves is shown separately below. 2011/12 Pension Pension Reserve Reserve (Injuries) 000 000 381,215 0 990,122 189,651 2,757 1,563,745 Usable Reserves CEC Holdings Festival City Theatres Trust Edinburgh Leisure Lothian Buses tie limited 53,905 10,474 0 64,379 2011/12 000 691 77 -582 -6,437 0 -6,251 2010/11 Pension Pension Reserve Reserve (Injuries) 000 000 335,902 0 860,164 172,489 3,056 1,371,611 43,979 9,583 0 53,562 2010/11 000 1,136 44 1,429 8,190 522 11,321
Unusable Reserves Council Lothian and Borders Police Board Lothian and Borders Fire and Rescue Board Lothian Valuation Joint Board
43.8
Strain on the Pension Fund Lothian Pension Fund has the right to require the Council to make additional payments to the pension fund to reflect the extra cost to the pension fund of immediate payment of benefits to employees who retire early on efficiency, redundancy or voluntary grounds. This amounted to 2.497m, excluding accrued payments, in 2011/12 (2010/11 4.135m). The future value of payments, based on employees who have retired on the above grounds amounts to 0.209m (2010/11 0.764m). Payments on behalf of employees who have left the Council since 1 April 2009 require to be paid in full to Lothian Pension Fund at the time of leaving. Cessation Value Payments If an employer becomes insolvent and it, or its guarantor, is unable to meet any deficit, additional contributions will be required from each remaining employer in the Fund, in proportion to their liabilities. This means that the majority of any deficit will fall on the large employers. However, where it has been established that there is a link between the employer and the Council then the Council requires to meet the total of any deficit. During the year, the Council paid 4.891m to Lothian Pension Fund in respect of cessation values for two organisations.
110
43.9

43. Defined Pension Schemes - continued 43.10 Further Information Further information on Lothian Pension Fund can be found in the Council's Pension Fund's Annual Report which is available upon application to the Investments and Pensions Service Manager, Waverley Court, 4 East Market Street, Edinburgh, EH8 8BG. 44. 44.1 Contingent Assets and Liabilities Contingent Assets There are no contingent assets at 31 March 2012. Contingent Liabilities The recent Supreme Court judgement in relation to mesothelioma (asbestos) claims ruled that the insurer who was on risk at the time of an employee's exposure to asbestos was liable to pay compensation. As a result, the Council's insurers may charge an additional levy on to the Council in order to meet compensation claims. The actual cost and timing of any levy cannot be estimated with reasonable accuracy and consequently no provision has been made in the financial statements in respect of this levy. Whilst the Council has made an impairment provision for statutory repairs debtors, there may also be further liability claims against the Council in relation to works carried out under statutory repair notices served by the Council. The actual cost of these claims cannot be estimated with reasonable accuracy. It is also not possible to estimate precisely when these claims could become due. 45. 45.1 Nature and Extent of Risks Arising from Financial Instruments Overall Procedures for Managing Risk The Councils overall risk management procedures focus on the unpredictability of financial markets, and implementing restrictions to minimise these risks. The Council complies with the CIPFA Prudential Code and has adopted the CIPFA Treasury Management in the Public Services Code of Practice. Overall these procedures require the Council to manage risk in the following ways: by formally adopting the requirements of the Code of Practice; by approving annually in advance prudential indicators for the following three years limiting: the Councils overall borrowing; its maximum and minimum exposures to fixed and variable rates; its maximum and minimum exposures in the maturity structure of its debt; by selecting investment counterparties in compliance with the Councils Treasury Policy Statement. The annual treasury management strategy which incorporates the prudential indicators was approved by the Council on 15 March 2012 and is available on the Council's website. The key issues within the strategy are: The authorised limit for 2012/13 has been set at 1.873bn. This is the maximum limit for external borrowings or other long term liabilities. The operational boundary for 2012/13 has been set at 1.826bn. This is the expected level of debt and other long term liabilities during the year. The maximum amounts of fixed and variable interest rate exposure were set at 100% and 75% of the Council's net debt respectively. The prudential indicators are reported and approved as part of the Council's annual budget setting process. Actual performance is also reported annually to members of the Council.
44.2
111

45. Nature and Extent of Risks Arising from Financial Instruments - continued 45.2 Key Risks The Councils activities expose it to a variety of financial risks, the key risks are: Credit risk the possibility that other parties might fail to pay amounts due to the Council; Liquidity risk the possibility that the Council might not have funds available to meet its commitments to make payments; Re-financing risk the possibility that the Council might be requiring to renew a financial instrument on maturity at disadvantageous interest rates or terms; Market risk - the possibility that financial loss might arise for the Council as a result of changes in such measures as interest rates movements. 45.3 Credit Risk Credit risk arises from deposits with banks and financial institutions, as well as credit exposures to the Councils customers. Deposits are with banks, building societies, and other institutions in line with the Councils prevailing counterparty limits as set out in the Councils treasury policy statement. Investment decisions are considered daily as part of the daily cash flow management by the Councils Treasury Team who can, and do, restrict the list further in light of market conditions. The Council's funds are managed along with those of Lothian Pension Fund, the Forth Estuary Transport Authority and some other related organisations which are pooled for investment purposes as a treasury cash fund. Management of the cash fund is on a low risk, low return basis, with security of the investments the key consideration while at the same time seeking innovative and secure cash investment opportunities. This arrangement has allowed a better management of the Council's risk in the exceptional financial and market circumstances in recent years. As well as lending monies to other local authorities, the Council has purchased UK Government Treasury Bills as well as Bonds and Floating Rate Notes with an explicit UK Government Guarantee. At 31 March 2012, all of the Council's short term investments were represented by loans to other local authorities. Of the net Cash and Cash Equivalents, 33% are either loans to local authorities or invested in instruments with an explicit UK Government Guarantee on the capital and interest. A further 16% was held in a AAA rated Money Market Fund. All of the monies held on deposit at 31 March 2012 were in call or near call accounts with banks, with the exception of 6.387m held in a fixed term deposit maturing 20 April 2012 with a UK building society. The Council's cash holding under its treasury management arrangements at 31 March 2012 was 219.1 million (31 March 2011: 243.8m). This was held with the following institutions: Principal Outstanding 31.03.12 000 28,971 0 18,599 20,175 17,238 17,087 27,498 4 0 Carry Value 31.03.12 000 28,981 0 18,608 20,183 17,252 17,095 27,498 4 0 Fair Value 31.03.12 000 28,981 0 18,608 20,183 17,252 17,095 27,498 4 0 Carry Value 31.03.11 000 0 17,176 20,367 20,410 27,142 25,658 0 17,026 347
Summary Money Markey Funds Deutsche Bank AG, London Standard Life Bank Call Accounts Bank of Scotland Royal Bank of Scotland Santander UK Barclays Bank Svenska Handelsbanken Bank Near-Call Accounts Clydesdale Bank (15 Day Notice) Bank Certificates of Deposit Rabobank
Rating AAA AAA A A A+ A+ AABBB+ AA
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45. Nature and Extent of Risks Arising from Financial Instruments - continued 45.3 Credit Risk - continued Principal Carry Fair Value Value Outstanding 31.03.12 31.03.12 31.03.12 Summary - continued Rating 000 000 000 Building Society Fixed Term Deposits A+ 6,387 6,388 6,388 Nationwide Building Society UK Pseudo-Sovereign Risk Instruments Local Authorities (see Note 1) UK Govt Guaranteed FRNs UK Govt Guaranteed Bonds n/a n/a n/a 58,439 24,525 0 58,562 24,616 0 58,537 24,621 0
Carry Value 31.03.11 000 0 108,347 0 7,397
218,923 219,187 219,167 243,870 Note 1 Local Authorities are generally assumed to have a pseudo-sovereign credit rating (which in the UK at 31 March 2012 would have been 'AAA') due to their tax raising powers and the perceived government support. Very few have their own credit rating, but of the 58.5m above, 21.7m is with a local authority which has a 'Aa1' credit rating from Moodys, one notch down from 'AAA'. In addition to the deposits outstanding on 31 March 2012, the Council had also committed to placing a one year deposit, with a value of 1.277m, with another local authority with a start date in April 2012. The Council's maximum exposure to credit risk in relation to its direct investments in banks and building societies of 107.0m cannot be assessed generally as the risk of any institution failing to make interest payments or repay the principal sum will be specific to each individual institution. Recent experience has shown that it is rare for such entities to be unable to meet their commitments. A risk of irrecoverability applies to all of the Council's deposits, but the Council takes a low risk approach to investment. Despite continuing concerns over the European Sovereign Debt crisis and the effects that this might have on the banking system, there was no evidence at 31 March 2012 that this risk was likely to crystallise. No breaches of the Council's counterparty criteria occurred during the reporting period and the Fund does not expect any losses from non-performance by any of its counterparties in relation to deposits. In October 2008 the Icelandic banking sector defaulted on its obligations. The Fund has never had any exposure to Icelandic banks and had no investment in the sector at that time. In line with the Investment Regulations governing local authorities introduced in 2010, the Council approved an annual investment strategy and treasury policy statement for both the Council and the Cash Fund at its March 2012 meeting. The papers are available on the Council's website. A full list of the deposits outstanding at 31 March 2012 is contained in the Treasury Cash Fund Investment Report for Quarter 1 2012. This is available on request from the Council's Treasury Section - Waverley Court, 4 East Market Street, Edinburgh, EH8 8BG. All Council invoices become due for payment on issue. Excluding pre-payments of 2.733m (2010/11 2.585m), trade debtors past due date can be analysed by age as follows: 2011/12 000 9,390 2,208 956 2,612 10,047 25,213 2010/11 000 13,325 6,297 1,608 2,683 9,393 33,306
Less than two months Two to four months Four to six months Six months to one year More than one year Total
Collateral During the reporting period the Council held no collateral as security.
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45. Nature and Extent of Risks Arising from Financial Instruments - continued 45.4 Liquidity risk The Council carries out short and medium term cash flow management to ensure that it will have sufficient liquidity to cover all of its payment obligations. This includes monitoring the maturity profile of investments to ensure sufficient liquidity is available for the Councils day to day cash flow needs. The Council also has ready access to borrowings from the money markets to cover any day to day cash flow needs. While this has not been needed for normal cash flow requirements, it was used for tactical temporary borrowing during 2008/09 when the Council considered that interest rates were going to fall and that medium to long-term borrowing would be disadvantageous at that time. Whilst the PWLB provides access to longer term funds, it also acts as a lender of last resort to the Council. The Council is also required by statute to provide a balanced budget, which ensures sufficient monies are raised to cover annual expenditure. There is therefore no significant risk that it will be unable to raise finance to meet its commitments under financial instruments. The Council manages its liquidity position through the risk management procedures above (the setting and approval of prudential indicators and the approval of the treasury and investment strategy reports), as well as through cash flow management procedures required by the Code of Practice. 45.5 Re-financing and Maturity Risk The Council maintains significant debt and investment portfolios. The re-financing risk to the Council relates to managing the exposure to replacing financial instruments as they mature. As shown in the chart in 45.6, the majority of the Council's debt portfolio consists of fixed rate longer term loans, and as such, the Council has a relatively low re-financing risk on its liabilities. However, the Council has market debt which allows the lender the option to ask for a rate increase at set dates and at that point the Council may choose to repay the loan at no additional cost. This gives a potential re-financing risk which the Council monitors and manages. The Council's approved treasury strategy addresses the main risks and the treasury team address the operational risks within the approved parameters. This includes monitoring the maturity profile of financial liabilities and amending the profile through either new borrowing or the rescheduling of the existing debt. However, with the increase in new borrowing rates announced in the Government's Comprehensive Spending Review in October 2010, it is now unlikely that there will be much scope for any substantial debt rescheduling. The maturity analysis of the principal outstanding on the Councils financial liabilities is as follows: 2011/12 000 -43,577 -36,301 -146,140 -301,837 -1,125,536 -1,653,391 2010/11 000 -64,401 -16,369 -123,323 -286,097 -1,065,140 -1,555,330
Less than one year Between one and two years Between two and five years Between five and ten years More than ten years Financial Liabilities
All trade and other payables are due to be paid in less than one year and trade creditors of 5.076m (2010/11 10.302m) are not shown in the table above. The above figures show the principal outstanding, therefore, neither accrued interest of 18.206m (2010/11 16.652m) nor net equivalent interest rate (EIR) adjustments of 8.679m (2010/11 8.314m) to the carrying amounts of market debt shown in the financial liabilities are included. The only investment which the Council has, other than 3.5m in EDI loan stock, with a maturity greater than one year is a loan of 3.193m to Fife Council maturing in August 2013. The Council had also committed to placing a deposit of 1.277m with another local authority which had a start date of 30 April 2012 and a maturity date of 29 April 2013.
114

45. Nature and Extent of Risks Arising from Financial Instruments - continued 45.6 Market risk Interest rate risk The Council is exposed to interest rate movements on its borrowings and investments. Movements in interest rates have a complex impact on the Council, depending on how variable and fixed interest rates move across differing financial instrument periods. For instance, a rise in variable and fixed interest rates would have the following effects: borrowings at variable rates the interest expense charged to the Comprehensive Income and Expenditure Statement will rise; borrowings at fixed rates the fair value of the borrowing liability will fall; investments at variable rates the interest income credited to the Comprehensive Income and Expenditure Statement will rise; and investments at fixed rates the fair value of the assets will fall. Borrowings are not carried at fair value on the Balance Sheet, so nominal gains and losses on fixed rate borrowings would not impact on the Comprehensive Income and Expenditure Statement or Movement in Reserves Statement. However, changes in interest payable and receivable on variable rate borrowings and investments will be posted to the Comprehensive Income and Expenditure Statement and affect the General Fund Balance, subject to influences from Government grants. Movements in the fair value of fixed rate investments will be reflected in the Movement in Reserves Statement, unless the investments have been designated as fair value through the Comprehensive Income and Expenditure Statement. The Council has a number of strategies for managing interest rate risk. The annual treasury management strategy includes a forecast for short and longer term interest rates. The treasury team continue to monitor market and forecast interest rates during the year and adjust investment policies accordingly. For instance during periods of falling interest rates, and where economic circumstances make it favourable, fixed rate investments may be taken for longer periods to secure better long term returns. Any such strategy is run within the short and medium term liquidity requirements of the Council. The following chart shows the source of the Council's borrowing. Most of the Council's borrowings are from the Government by way of the Public Works Loans Board, and since we are at the bottom of the interest rate cycle, none of the PWLB borrowing was variable rate.
LOBO - Inverse 2.83% LOBO 17.01%
EIB 0.02%
Temporary Loans 0.54%
PWLB - Fixed 79.60%
Source of Borrowing 31-Mar-12
115

45. Nature and Extent of Risks Arising from Financial Instruments - continued 45.6 Market risk - continued Price Risk The Council does not generally invest in equity shares but does have shareholdings to the value of 23.335m (2010/11 23.335m) in a number of Council owned Companies and joint ventures. Whilst these holdings are generally illiquid, the Council is exposed to losses arising from movements in the prices of the shares. As the shareholdings have arisen in the acquisition of specific interests, the Council is not in a position to limit its exposure to price movements by diversifying its portfolio. Foreign exchange risk The Council has no financial assets or liabilities denominated in foreign currencies. It therefore has no exposure to loss arising from movements in exchange rates. 46. Business Improvement District Scheme The Council acts as the Billing Authority for Edinburghs Central Business Improvement District (BID). The Council collects a levy from the business rate payers on behalf of the BID body, Essential Edinburgh. 2011/12 2010/11 000 000 Monies to be recovered from ratepayers at 1 April 163 137 BID Levy Income Less: Payments made / due to Essential Edinburgh Monies still to be recovered from ratepayers at 31 March 893 -895 161 943 -917 163
The monies raised through the BID are used to fund activities around four key themes, including: area promotion - advertising, marketing and events clean and attractive area - cleaning teams, street dcor, cleanliness surveys safe and secure area - CCTV, improved lighting accessibility - pedestrian friendly environment. 47. The City of Edinburgh Council Charitable Funds The City of Edinburgh Council administers a number of charitable funds. At the start of the year this included 51 Scottish charities registered under the Charities and Trustee Investment (Scotland) Act 2005 and 50 other charitable funds, mainly educational endowments. During the year, the Council made progress with its plan to re-organise the funds. This resulted in the transfer of 39 funds to external charities and the consolidation of 23 funds into a new charity, the Edinburgh Education Trust.
47.1 Purpose, and financial position, of the largest of the charitable funds Jean F. Watson Bequest (Scottish Charity Reg. No. SC018971) The purpose of the fund is to purchase works of art by artists who have connections with the city. The financial results of the fund are as follows: Income (See Note 1, page 119) Expenditure Assets Liabilities 31.03.12 000 (12) 3 1,610 (13) 31.03.11 000 (23) 4 1,587 (6)
116

47. The City of Edinburgh Council Charitable Funds - continued 47.1 Purpose, and financial position, of the largest of the charitable funds - continued Surplus Fire Fund (Scottish Charity Reg. No. SC018967) The purposes of the fund are to offer relief to persons that have suffered as the result of a fire and to recognise meritorious service in connection with fires. In both cases the fire must have occurred in the Edinburgh area. In March 2012 the decision was made to transfer the future administration of the fund to the Edinburgh Voluntary Organisations Trust (SC031561). An application to approve the transfer has been made to the Office of the Scottish Charity Regulator (OSCR). The financial results of the fund are as follows: Income (See Note 1, page 119) Expenditure Assets Liabilities 47.2 The main funds are: Scottish Charity Registration Number SC018971 SC018967 SC025067 SC018946 SC042754 SC030180 SC018969 SC025067 SC018977 SC018949 SC018972 SC018973 SC025067 Various Market Value 31.03.12 31.03.11 000 000 1,597 1,582 1,142 1,113 513 506 188 188 122 n/a 70 70 0 7,773 0 1,476 0 1,145 0 864 0 488 0 391 0 362 196 636 3,828 16,594 31.03.12 000 (17) 5 1,142 0 31.03.11 000 (34) 35 1,118 (5)
Scottish Registered Charities Jean F. Watson Surplus Fire Fund City of Edinburgh Nelson Halls Edinburgh Education Trust Usher Hall Appeal Trinity College Hospital (Note 1) Sir James Steel (Note 1) John McGibbon (Note 1) Alexander Mortification (Note 1) John Watson (Note 1) Sir William Watson (Note 1) George Boyd Anderson (Note 2) Other Funds Total market value Other Funds Catherine Cowper Other Funds Total market value Notes: 1. Transferred to Elizabeth Finn Care (SC040987)
n/a n/a
47 5 52
45 118 163
2. Decision taken to expend the capital of the trust on the purposes stated in the benefactor's will. 3. The funds do not represent assets of the Council and are not included in the Balance Sheet.
117

47. The City of Edinburgh Council Charitable Funds - continued 47.3 Financial Position of the Scottish Registered Charity Funds (re-stated) 2010/11 Income and Expenditure Account 000 Income (430) Investment income (15) Other non-investment income (445) Expenditure 1,014 Prizes, awards and other expenses 93 Administrative expenses 1,107 662 Deficit for the year 2
Note 1
2011/12 000 (84) (15) (99) 351 42 393 294
(re-stated) 2010/11 Balance Sheet 000 Long-Term Assets 13,449 Investments 850 Artworks - Jean Watson Trust 586 Heritable property 14,885 Total Long-Term Assets Current Assets 41 Sundry debtors 1,768 Cash and bank 1,809 Current Liabilities (100) Creditors (100) 16,594 Total Assets less Liabilities
000
2011/12 000 2,128 854 19 3,001
13 1,061 1,074 (247) (247) 3,828
(16,634) 662 (611) (20) (1) 10 0
Capital at 1 April Deficit for the year Unrealised gains Capital introduced Transfer from Council unregistered funds Trusts transferred to external charities Transfer of fishing rights to Lagganlia Outdoor Centre
(16,594) 294 (258) 0 (88) 12,784 34 (3,828)
(16,594) Capital at 31 March
At the request of the Office of the Scottish Charity Regulator, a separate Trustee's Report and Accounts has been prepared which gives further information on the Scottish registered charities in the trusteeship of the Council. A copy of this document may be obtained from the Council's Investment and Pensions Division - Level 3.3, Waverley Court, 4 East Market Street, Edinburgh, EH8 8BG.
118

47. The City of Edinburgh Council Charitable Funds - continued 47.4 Financial Position of Other Funds (re-stated) 2010/11 Income and Expenditure Account 000 Income (4) Investment income (4) Expenditure 7 Prizes, awards and other expenses (1) Administrative expenses 6 2 (Surplus) / Deficit for the year (re-stated) 2010/11 Balance Sheet 000 Long-Term Assets 94 Investments 94 Total Long-Term Assets Current Assets 10 Sundry debtors 225 Cash and bank 235 Current Liabilities 0 Creditors -166 Balance with City of Edinburgh Council (166) 163 Total Assets less Liabilities (161) 2 (5) 1 0 0 Capital at 1 April Surplus for the year Realised and unrealised gains on investments Transfer to Council Registered Funds Trusts transferred to external charities Compensation fund paid -1 -118 (119) 52 (163) (1) (3) 88 25 2 (52) 1 170 171 2011/12 000 (1) (1) 0 0 0 (1)
2011/12 000
000 0 0
(163) Capital at 31 March
Notes 1. Income Investment arrangements for the funds of the remaining Trusts have been revised. The Trusts due to be transferred in 2012/13 now have their funds held in cash, while the remaining Trusts have new investments in unit trusts. These unit trusts have different distribution dates to the previous investments and this is reflected in a lower income figure being shown in the 2011/12 accounts compared to previous years. 2. Expenditure Expenditure has reduced due to the transfer of several large poverty Trusts, which paid out pensions, to Elizabeth Finn Care. The Usher Hall appeal made a one-off disbursement of 0.6m in 2010/11. 3. Heritable Property The reduction in heritable property relates mainly to the transfer of Trinity College Hospital to Elizabeth Finn Care (0.532m) and fishing rights (George Boyd Anderson) to Lagganlia Outdoor Centre.
119

47. The City of Edinburgh Council Charitable Funds - continued 47.5 Transferred Trusts As part of its ongoing charity re-organisation project, the Council has transferred a number of trusts to external parties during the year: Value 000 000 To Elizabeth Finn Care (SC040987) Scottish Registered Charity Funds 7,941 Trinity College Hospital 1,499 Sir James Steel 1,164 John McGibbon 878 Alexander Mortification 491 John Watson 394 Sir William Watson 413 Other smaller trusts 12,780 Other Funds Ada Noble Schools Benevolent Fund Irvine Trust 8 13 4 25 Total value transferred to Elizabeth Finn Care To Edinburgh Voluntary Organisations Trust (SC031561) Scottish Registered Charity Funds Sir William Y Darling Total value of transferred trusts 12,805
4 12,809
48. Prior Period Adjustments 48.1 Heritage Assets For 2011/12 the Council has recognised heritage assets under the requirements of FRS 30. Previously, heritage assets were either recognised as community assets in the property, plant and equipment classification or were not recognised in the Balance Sheet. The 1 April 2010 and 31 March 2011 Balance Sheets and 2010/11 comparative figures have thus been restated in the 2011/12 statement of accounts to apply the new policy. The following notes explain the material differences between the amounts presented in the 2010/11 financial statements and the equivalent amounts presented in the 2011/12 financial statements for the Council and show how these affect community assets, heritage assets and the revaluation reserve within the Balance Sheet. 2010/11 Newly 01.04.10 Opening 1 April 2010 Balance Sheet Statements Reclassified recognised Re-stated 000 000 000 000 GROUP Property, Plant and Equipment Community Assets 14,665 (2,649) 0 12,016 Long-Term Assets Heritage Assets Long-Term Liabilities Liabilities in Associates and Joint Ventures Unusable Reserves Group Unusable Reserves Revaluation Reserve 0 -1,153,608 2,649 0 34,829 209 37,478 -1,153,399
1,059,868 -734,264
120
0 0
(209) (34,829)
1,059,659 -769,093

48. Prior Period Adjustments - continued 48.1 Heritage Assets - continued Opening 1 April 2010 Balance Sheet COUNCIL Property, Plant and Equipment Community Assets Long-Term Assets Heritage Assets Unusable Reserves Revaluation Reserve 2010/11 Statements 000 Reclassified 000 Newly recognised 000 01.04.10 Re-stated 000
14,665 0 -734,264 2010/11 Statements 000
(2,649) 2,649 0
0 34,829 (34,829) Newly recognised 000
12,016 37,478 -769,093 31.03.11 Re-stated 000
31 March 2011 Balance Sheet GROUP Property, Plant and Equipment Community Assets Long-Term Assets Heritage Assets Long-Term Liabilities Liabilities in Associates and Joint Ventures Unusable Reserves Group Unusable Reserves Revaluation Reserve COUNCIL Property, Plant and Equipment Community Assets Long-Term Assets Heritage Assets Unusable Reserves Revaluation Reserve
Reclassified 000
15,532 0 -1,023,262
(2,776) 2,776 0
0 34,829 209
12,756 37,605 -1,023,053
919,633 -774,085
0 0
(209) (34,829)
919,424 -808,914
15,532
(2,776)
12,756
2,776
34,829
37,605
-774,085
(34,829)
-808,914
48.2 Lothian and Borders Fire and Rescue Board - Property, Plant and Equipment The depreciation policy for vehicles has been reviewed to better reflect the use of economic value of those assets. Dependent on the vehicle type, these assets are now depreciated over a period of five to fifteen years, reflecting the estimated useful life of the assets. The change has been applied retrospectively by adjusting the opening balances and comparative amounts. Comprehensive Income and Expenditure Statement GROUP Associates and Joint Ventures Accounted for on an Equity Basis Other Unrealised Gains 2010/11 Statements Adjustment 000 000 -63,808 -116 31.03.11 Re-stated 000 -63,924
-77,933
-56
-77,989
121

48. Prior Period Adjustments - continued 48.2 Lothian and Borders Fire and Rescue Board - Property, Plant and Equipment - continued 2010/11 Statements 000 01.04.10 Re-stated 000
Opening 1 April 2010 Balance Sheet GROUP Long-Term Liabilities Liabilities in Associates and Joint Ventures Unusable Reserves Group Unusable Reserves
Adjustment 000
-1,153,608
1,453
-1,152,155
1,059,868 2010/11 Statements 000
(1,453)
1,058,415 31.03.11 Re-stated 000
31 March 2011 Balance Sheet GROUP Long-Term Liabilities Liabilities in Associates and Joint Ventures Unusable Reserves Group Unusable Reserves 49.
Adjustment 000
-1,023,262
1,625
-1,021,637
919,633
(1,625)
918,008
Exceptional Expenditure Exceptional expenditure comprises the following amounts: 2011/12 Council Group 000 000 0 0 -9,952 -9,952 -9,952 -9,952 2010/11 Group Council 000 000 -183,226 -183,226 20,925 -162,301 20,925 -162,301
IAS 19 - Retirement Benefits - Past Service Costs Equal pay settlements and implementation of single status
IAS 19 - Retirement Benefits The Chancellor of the Exchequer announced in his emergency budget on 22 June 2010 that the consumer price index rather than the retail price index would be the basis for future public sector pension increases. The impact of this change on the past services costs shown under IAS19 was a credit of 183.226m in 2010/11, of which 3.612m related to the Housing Revenue Account. Due to the materiality of the impact of this one-off change, this has been included as 'negative expenditure' within exceptional expenditure in the Comprehensive Income and Expenditure Statement. Modernising Pay Exceptional expenditure includes payments and movements on provisions relating to equal pay settlements and costs associated with implementing single status.
122
HOUSING REVENUE ACCOUNT

INCOME AND EXPENDITURE STATEMENT
for the year ended 31 March 2012 The Housing Revenue Account (HRA) Income and Expenditure Statement shows in more detail the income and expenditure on HRA services included in the Council's Comprehensive Income and Expenditure Statement. 2010/11 000 EXPENDITURE 27,248 Repairs and maintenance 17,652 Supervision and management 36,147 Depreciation and impairment of non-current assets 4,309 Other expenditure 85,356 INCOME -71,543 Dwelling rents -639 Non-Dwelling rents (gross) -14,931 Other income -87,113 -3,612 Exceptional Items - Past Service Costs under IAS19 -5,369 Net cost of HRA Services (as included in the Council's Comprehensive Income and Expenditure Statement) 136 HRA share of corporate and democratic core 235 HRA share of other amounts included in the Council's Net Cost of Services but not allocated to specific services -4,998 Net expenditure for HRA Services HRA share of other operating expenditure included in the Council's Comprehensive Income and Expenditure Statement 863 Loss on sale of HRA fixed assets 18,139 Interest payable and similar charges -102 Interest and investment income 88 Pensions interest cost and expected return on pension assets 18,988 -1,158 Capital grants and contributions 12,832 Deficit for the year on HRA services 726 19,614 -102 -99 20,139 -3,893 2,093 -76,203 -466 -14,807 -91,476 0 -14,800 394 253 -14,153
000 26,056 19,435 27,163 4,022
000
76,676
123

MOVEMENT ON THE HRA STATEMENT
2010/11 000 0 Balance on the HRA at the end of the previous year 12,832 Deficit for the year on the HRA Income and Exp Account -14,446 Adjustments between accounting basis and funding basis under statute -1,614 Net increase before transfers to reserves 1,614 Contribution to renewal and repairs fund, via the General Fund 0 Balance on the HRA at the end of the current year 2011/12 000 0 2,093 -5,607 -3,514 3,514 0
Adjustments Between Accounting Basis and Funding Basis Under Regulations

000 Adjustments primarily involving the Capital Adjustment Account Reversal of items debited or credited to the Income and Expenditure Statement -36,147 Charges for depreciation and impairment of non-current assets 1,158 Capital grants and contributions applied Insertion of items not debited or credited to the Income and Expenditure Statement 17,483 Statutory provision for the financing of capital investment Adjustments primarily involving the Capital Receipts Reserve -863 Transfer of cash sale proceeds credited as part of the gain / loss on disposal of assets Adjustments primarily involving the Financial Instruments Adjustment Account 289 Amount by which finance costs charged are different from finance costs chargeable in the year in accordance with statutory requirements Adjustments primarily involving the Pensions Reserve 3,113 Reversal of items relating to retirement benefits debited or credited to the Income and Expenditure Statement 480 Employer's pension contributions and direct payments to pensioners payable in the year Adjustments primarily involving the Employee Statutory Adjustment Account 41 Amount by which officer remuneration charged to the Income and Expenditure Statement on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements -14,446 -44 -318 565 399 -726 17,787 -27,163 3,893 000
-5,607
124

Notes to the Housing Revenue Account
1. The number and types of dwellings in the authority's housing stock at 31 March 2012 are as follows: (re-stated) 2011 Annual Average Number Rent () 310 5,698 10,735 3,579 550 10 3 2 2,802.00 3,146.00 3,646.00 4,198.00 4,515.00 4,548.00 4,403.00 4,403.00
2012 Annual Average Rent () 3,041.91 3,384.53 3,923.16 4,516.85 4,857.25 4,893.11 4,738.16 4,738.16
Types of Houses Main provision Council dwellings 1 Apartment 2 Apartment 3 Apartment 4 Apartment 5 Apartment 6 Apartment 7 Apartment 8 Apartment Mid-market rent dwellings 3 Apartment 4 Apartment
Number 309 5,508 10,456 3,550 546 10 3 2
12 7 20,403
6,614.35 7,317.42
12 7 20,906
6,115.87 6,783.66
The stock figure represents all types of residential properties, including furnished tenancies, sheltered housing and homelessness units. 2. The amount of rent arrears included as debtors in the Council's Balance Sheet was 2.091m (2010/11 1.880m) against which a provision amounting to 1.340m (2010/11 1.192m), has been created in respect of non collectable debts. 3. Significant non-residential income includes ground rent at Broomhouse Drive of 0.160m per annum. 4. The total value of uncollectable void rents for main provision properties was 0.362m (2010/11 0.444m). This has been netted against rental income. 5. The Chancellor of the Exchequer announced in his emergency budget on 22 June 2010 that the consumer price index rather than the retail price index would be the basis for future public sector pension increases. The impact of this change on the past services costs shown under IAS19 was a credit of 3.612m in 2010/11. Due to the materiality of the impact of this one-off change, this has been included within exceptional expenditure in the Housing Revenue Account Income and Expenditure Statement.
125
COUNCIL TAX INCOME ACCOUNT

for the year ended 31 March 2012 2010/11 000 -288,786 49,423 8,825 -351 3,198 61,095 -227,691 1,207 -226,484 Previous years' adjustments Total transferred to General Fund Gross council tax levied and contributions in lieu Less: - Exemptions and other discounts - Provision for bad debts - Net cost of benefits - Other reductions 49,582 8,889 -275 3,283 61,479 -229,182 1,268 -227,914
000
000 -290,661
Notes to the Council Tax Income Account The in-year collection rate for Council Tax was 94.6% (2010/11 94.3%). Each household or occupied dwelling is allocated to a council tax band by the Assessor. The charge per council tax band is calculated as a proportion of band D - these proportions are determined by legislation. A council tax bill is reduced by 25% where a dwelling has only one occupant or, with certain exceptions, 10% where the property is empty or a second home. For council tax purposes, students and certain other categories of people are not regarded as occupants. Reductions in council tax payable are also granted for physically disabled people. Charges in respect of water and sewerage are the responsibility of Scottish Water. The Council collects both water and sewerage charges and makes payment to the Water Authority. Calculation of the Council Tax Base 2011/12
Number of Band A Up to 27,000 B 27,001 - 35,000 C 35,001 - 45,000 D 45,001 - 58,000 E 58,001 - 80,000 F 80,001 - 106,000 G 106,001 - 212,000 H Over 212,000 Properties 23,188 46,540 42,872 36,269 38,566 23,289 20,032 3,701 Disabled Relief 88 66 -31 47 -11 -17 -113 -29 Exemptions -2,903 -3,514 -3,273 -3,078 -3,503 -1,194 -517 -135 Total Add: Less: Contributions in Lieu Provision for Non-Payment Council Tax Base Discounts -3,384 -6,923 -5,378 -4,105 -3,607 -1,947 -1,256 -188 Effective Properties 16,989 36,169 34,190 29,133 31,445 20,131 18,146 3,349 Ratio to Band D 6/9 7/9 8/9 9/9 11/9 13/9 15/9 18/9 Band D Equivalents 11,326 28,131 30,391 29,133 38,433 29,078 30,243 6,698 203,433 549 7,547 196,435 Charges per Band 779.33 909.22 1,039.11 1,169.00 1,428.78 1,688.56 1,948.33 2,338.00
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NON-DOMESTIC RATES INCOME ACCOUNT

for the year ended 31 March 2012 2010/11 000 -374,401 Gross rates levied and contributions in lieu 75,555 50 3,509 79,114 -295,287 7,867 Previous years' adjustments -287,420 Net Non-Domestic Rates Income Allocated to: -287,759 Contribution to National Non-Domestic Rates Pool 339 Adjustments for years prior to introduction of National NonDomestic Rates Pool -287,420 Notes to the Non-Domestic Rates Income Account Rateable Values as at 1 April 2011 Shops, offices and other commercial subjects Industrial and freight transport Telecommunications Public service subjects Miscellaneous Number 13,189 2,741 8 342 2,765 19,045 Less: - Reliefs and other deductions - Payment of interest - Uncollectable debt written off and provision for impairment 000 79,694 3 3,825 83,522 -308,765 6,941 -301,824 000 -392,287
-302,108 284 -301,824 Rateable Value 000 646,062 78,894 15 47,360 145,437 917,768
Contribution to / from National Non-Domestic Rates Pool The contribution to the National Non-Domestic Rates Pool of 302.108m (2010/11 287.759m) is the nondomestic rates contributed by the Council through the pooling arrangements for government grant purposes. The amount distributed to the Council under these pooling arrangements was 297.442m (2010/11 188.733m). In contrast to previous years where all non-domestic rates income raised in a council area was remitted to a national pool to be redistributed on the basis of authorities' respective populations, with effect from 2011/12, authorities retain in full the income raised locally up to the baseline level assumed in the Local Government Financial Settlement. Any variation from this assumed level is then met by means of a corresponding transfer of funds to or from the Scottish Government. Poundage Occupiers of non-domestic property pay rates based on the valuation of the property within the valuation roll for Edinburgh. The non-domestic rate poundage is determined by the Scottish Ministers, and was 42.6p per in 2011/12 (2010/11 40.7p per ). Properties with a rateable value greater than 35,000 (2010/11 35,000) had their rate charges calculated using the poundage of 43.3p per (2010/11 41.4p per ). From 1 April 2008, the Scottish Government introduced the Small Business Bonus Scheme. Business properties with a rateable value of 18,000 or less may have received relief as set out below: 100% Relief 50% Relief 25% Relief Upper limit for combined rateable value 10,000 12,000 18,000 25,000
127
COMMON GOOD FUND

The Common Good Fund stands separate from the Council's accounts and has been described as "the ancient patrimony of the community". It was originally derived from the grants by the Sovereigns of Scotland at various times. The present fund is an amalgam of the funds of the City and Royal Burgh of Edinburgh and the Royal Burgh of South Queensferry. A report on the (Edinburgh) Common Good prepared by the Town Clerk and City Chamberlain in 1905 set out the historical background of the fund and listed its then assets in some detail. The report also stated a "General Principle" that the Fund should be administered "for the purpose of upholding the dignity and suitable hospitality of the City; performing the duties incumbent upon a Royal Burgh ..... maintaining the municipal establishment and managing the municipal affairs; vindicating or extending the corporate rights of the community and defending its interests; acquiring additional land or property for the corporate benefit, or improving existing corporation property, and generally for any purpose which in the bona fide judgement of the Town Council is for the good of the community as a whole, or in which the inhabitants at large may share, as distinct from the separate interests or benefit of any particular individual or class, however deserving or needy. The purpose must be limited to those which concern the City and its interests". The Local Government etc. (Scotland) Act 1994 confirms this interpretation that use of the Fund shall " have regard to the interests of all the inhabitants" of the area. The Fit For Future reserve represents funds set aside from certain Common Good properties to assist in the funding of the Fit For Future office accommodation project. The market value of investments at 31 March 2012 was 1.580m (2011 1.566m).
COMMON GOOD FUND - MOVEMENT IN RESERVES STATEMENT

Common Good Fund 000 -1,630 Capital Adjust. Account 000 -13,850
2011/12 Movements Balance at 31 March 2011 Movement in reserves during 2011/12 Deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations: Depreciation and impairment of non-current assets Net increase / decrease before transfers to earmarked reserves Transfer to / from earmarked reserves Increase / decrease in year Balance at 31 March 2012
Reval. Reserve 000 -4,287
1,278 0 1,278
0 0 0
0 -2,104 -2,104
1,278 -2,104 -826
-1,272 6 0 6 -1,624
1,181 1,181 0 1,181 -12,669
91 -2,013 0 -2,013 -6,300
0 -826 0 -826 -20,593
128
COMMON GOOD FUND - MOVEMENT IN RESERVES STATEMENT

Common Good Fund 000 -1,637 Capital Adjust. Account 000 -14,146
2010/11 Comparative Data Balance at 31 March 2010 Movement in reserves during 2010/11 Deficit on the provision of services Other Comprehensive Income and Expenditure Total Comprehensive Income and Expenditure Adjustments between accounting basis and funding basis under regulations: Depreciation and impairment of non-current assets Net increase / decrease before transfers to earmarked reserves Transfer to / from earmarked reserves Increase / decrease in year Balance at 31 March 2011
Reval. Reserve 000 -3,321
411 0 411
0 -64 -64
0 -1,010 -1,010
411 -1,074 -663
-404 7 0 7 -1,630
360 296 0 296 -13,850
44 -966 0 -966 -4,287
0 -663 0 -663 -19,767
COMMON GOOD FUND - COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT

2010/11 000 421 Common Good Fund 421 COST OF SERVICES Financing and Investment Income -10 Interest and investment income 411 DEFICIT ON PROVISION OF SERVICES -1,010 Surplus on revaluation of non-current assets -64 Other unrealised gains -1,074 Other Comprehensive Income and Expenditure -663 TOTAL COMPREHENSIVE (INCOME) AND EXPENDITURE -2,104 0 -2,104 -826 2011/12 000 1,290 1,290 000
-12 1,278
129
COMMON GOOD FUND - BALANCE SHEET
(re-stated) 1 April 2010 000 16,319 863 211 17,393 95 1 96 407 1,208 1,615 19,104
(re-stated) 31 March 2011 000 16,923 926 208 18,057 100 1 101 193 1,416 1,609 19,767 Other Land and Buildings Community Assets Surplus Assets Property, Plant and Equipment Heritage Assets Long-term Investments Long-term Assets Short-Term Investments Cash and Cash Equivalents Current Assets Net Assets
31 March 2012 000 000 17,758 926 205 18,889 100 2 102 170 1,432 1,602 20,593
-3,321 -14,146 -17,467 -1,637 -1,637 -19,104
-4,287 -13,850 -18,137 -1,630 -1,630 -19,767
Revaluation Reserve Capital Adjustment Account Unusable Reserves Common Good Fund Usable Reserves Total Reserves
-6,300 -12,669 -18,969 -1,624 -1,624 -20,593
130
COMMON GOOD FUND - NOTES TO FINANCIAL STATEMENTS

1. Property, Plant and Equipment and Heritage Assets 1.1 Movements on Balances Other Land and Community Assets Buildings 000 000 Cost or Valuation At 1 April 2011 Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services At 31 March 2012 Accumulated Depreciation At 1 April 2011 Depreciation charge Depreciation written out to the Surplus on the Provision of Services At 31 March 2012 Net Book Value At 31 March 2012 At 31 March 2011 17,238 2,104 926 0 Total Property, Plant and Equipment 000 18,378 2,104
Surplus Assets 000 214 0
Heritage Assets 000 100 0
-1,394
-1,394
17,948
926
214
19,088
100
-315 -413 538
0 0 0
-6 -3 0
-321 -416 538
0 0 0
-190
-9
-199
17,758 16,923
926 926
205 208
18,889 18,057
100 100
131

1. Property, Plant and Equipment and Heritage Assets - continued 1.1 Movements on Balances - continued Other Land and Community Assets Buildings 000 000 Cost or Valuation At 1 April 2010 Transfer to heritage assets Re-stated at 1 April 2010 Revaluation increases / (decreases) recognised in the Revaluation Reserve Revaluation increases / (decreases) recognised in the Surplus on the Provision of Services Other movements in cost or valuation At 31 March 2011 Accumulated Depreciation At 1 April 2010 Depreciation charge Depreciation charge written out to Revaluation Reserve Depreciation written out to the Surplus on the Provision of Services At 31 March 2011 Net Book Value At 31 March 2011 At 31 March 2010 16,394 0 16,394 989 958 -95 863 0 Total Property, Plant and Equipment 000 17,566 -95 17,471 989
Surplus Assets 000 214 0 214 0
Heritage Assets 000 0 95 95 5
-145
-145
0 17,238
63 926
0 214
63 18,378
0 100
-75 -259 16 3
0 0 0 0
-3 -3 0 0
-78 -262 16 3
0 0 0 0
-315
-6
-321
16,923 16,319
926 863
208 211
18,057 17,393
100 95
1.2 Information on Assets Held Assets owned by the Common Good Fund at 31 March 2012 include: Monuments and statues Parks and open spaces and other properties Shops, industrial units and other commercial lettings 20 31 17
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2. Usable Reserves Movements in the Common Good's usable reserves are detailed in the Movement in Reserves Statement (on page 128).
3. Unusable Reserves 3.1 Revaluation Reserve The revaluation reserve contains the gains made by the Common Good Fund arising from increases in the value of its property, plant and equipment. The balance is reduced when assets with accumulated gains are: revalued downwards or impaired and the gains are lost; used in the provision of services and the gains are consumed through depreciation; or disposed of and the gains are realised. The reserve contains unrealised gains accumulated since 1 April 2007, the date the reserve was created. Accumulated gains arising before 1 April 2007 were consolidated into the capital adjustment account. 2011/12 2010/11 000 000 000 000 Balance at 1 April -4,287 -3,321 Upward revaluation of assets Downward revaluation of assets and impairment losses not charged to the Surplus on the Provision of Services Surplus on revaluation of non-current assets not posted to the Surplus on the Provision of Service Difference between fair value depreciation and historical cost depreciation Amount written off to the capital adjustment account Balance at 31 March 91 -2,869 765 -1,031 21
-2,104
-1,010
44
91 -6,300
44 -4,287
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3. Unusable Reserves - continued 3.2 Capital Adjustment Account The capital adjustment account provides a balancing mechanism for timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the Comprehensive Income and Expenditure Statement (CIES) (with reconciling postings from the revaluation reserve to convert fair value figures to a historical cost basis). The account also holds revaluation gains accumulated on property, plant and equipment prior to 1 April 2007, the date the revaluation reserve was created to hold such gains. 2011/12 000 Balance at 1 April Reversal of items relating to capital expenditure debited or credited to the CIES Charges for depreciation of non-current assets Revaluation losses on property, plant and equipment 000 -13,850 2010/11 000 000 -14,146
416 856 1,272
262 142 404 -44 1,181 360
Adjusting amounts written out of the revaluation reserve Net written out amount of the costs of noncurrent assets consumed in the year Capital financing applied in the year: Movements in the market value of Long Term Investments debited to the CIES Other unrealised losses debited to the CIES Balance at 31 March
-91
0 0 -12,669
-1 -63 -13,850
134
ANNUAL GOVERNANCE STATEMENT

Scope of Responsibility The City of Edinburgh Council is responsible for ensuring that its business is conducted in accordance with the law and appropriate standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently, effectively and ethically. The Council also has a duty to make arrangements to secure continuous improvement in the way its functions are carried out. In discharging these responsibilities, elected members and senior officers are responsible for implementing effective arrangements for governing the Councils affairs, and facilitating the effective exercise of its functions, including arrangements for the management of risk. To this end, the Council has approved and adopted a Local Code of Corporate Governance that is consistent with the principles of the CIPFA / SOLACE framework Delivering Good Governance in Local Government. This statement explains how the City of Edinburgh Council delivers good governance and reviews the effectiveness of those arrangements. It also includes a statement on internal financial control. This statement also covers the organisations included in the Councils Group Accounts, a list of which is included at page 35 of the Accounts. The Group's Governance Framework The governance framework comprises the systems, processes, cultures and values by which the Group is directed and controlled. It also describes the way it engages with, accounts to and leads the community. It enables the Group to monitor the achievement of its objectives and consider whether those objectives have led to the delivery of appropriate, cost-effective services. The Council's Local Code of Corporate Governance is supported by evidence of compliance which is regularly reviewed and available for inspection. The rest of the Group observes the principles of the Code. The Council has implemented arrangements for monitoring each element of the framework and providing evidence of compliance. The Chief Internal Auditor reviewed the arrangements and is satisfied that the Code continues to be adequate and effective. The framework meets the principles of effective governance. Within the overall control arrangements the system of internal financial control is intended to ensure that assets are safeguarded, transactions are authorised and properly recorded, and material errors or irregularities are either prevented or would be detected within a timely period. The key elements of the Council's governance framework include financial regulations, financial monitoring, financial and administrative procedures (including segregation of duties, management supervision, and a system of delegation and accountability). The system includes: budgeting systems; reviews of financial and performance reports against forecasts; the preparation of regular financial reports which indicate actual expenditure against the forecasts; consideration of external and internal audit reports by the audit committee. These arrangements also include: identifying the Councils objectives in the Single Outcome Agreement; monitoring of the achievement of objectives by the Council and senior officers; a systematic approach to monitoring service performance at elected member, senior officer and board and project level; reporting performance regularly to Council committees and/or boards of directors; describing the role of the Council and committees in Standing Orders, which also set out the decisionmaking powers delegated to officers;
135

These arrangements also include - continued Financial Regulations (or equivalent) that specify the controls over budgeting, income, expenditure and financial performance; the Council's Monitoring Officer who ensures compliance with laws and regulations; an Audit Committee whose core functions comply with CIPFA standards; comprehensive budget and expenditure monitoring systems; targets against which financial and operational performance can be assessed; clearly defined capital expenditure guidelines; formal project management disciplines; a Code of Guidance for the governance of Council-owned companies; and Codes of conduct for both elected members and officers. A significant part of the governance framework is the system of internal control, which is based on an ongoing process to identify and prioritise risks to the achievement of the Group's objectives. While the system is designed to enable the Council as the lead organisation in the Group to manage risk effectively, it cannot eliminate all risk of failure to implement policies and achieve objectives. Therefore, it provides a reasonable, but not absolute, assurance of effectiveness. Determining the Authoritys purpose, its vision for the local area and intended outcomes for the Community The Edinburgh Single Outcome Agreement (SOA) 2009-12, which was submitted to the Scottish Government in May 2009, provides a statement of the context in which the Council and its partners are working. It sets out the strategic priorities for 2009-12 as: developing the city and regional economy, including transport and housing, and mitigating the impact of the economic downturn; environmental sustainability, including action on climate change, waste, and the citys cleanliness; health, wellbeing and social inclusion, including care and support services, improving health, and tackling deprivation and inequality; services for children, including supporting early years development and educational excellence, and protecting vulnerable children; working in partnership to improve community safety and the quality of life in our communities. Appropriate outcomes have been identified and are monitored using indicators and targets that have been developed by the Council and its partners. Regular reports are made to the Council, its partners, the public and the Scottish Government. Accountability for the outcomes has been clearly specified and the Council follows the Scottish Governments advice on SOA governance matters. Changes in Governance Arrangements The Council appointed a Director of Corporate Governance in September 2011. This post replaced the former posts of Director of Corporate Services and Director of Finance. Responsibilities for these two service areas were merged into Corporate Governance. In addition, the Chief Financial Officer and the Pensions and Accounting Manager were appointed as Section 95 Officers for the Council and Lothian Pension Funds respectively. These financial management arrangements conform to the governance requirements of the CIPFA statement on the Role of the Chief Financial Officer in Local Government (2010). In December 2011 management arrangements across the Council were reviewed to ensure that there are clear and defined linkages between service outcomes, service delivery and performance. These arrangements are outlined as follows: Planning and building standards; transport, fleet / corporate transport unit; corporate property; cleaning and catering STOs; registration and non-legal licensing functions were realigned to Services for Communities.
136

Changes in Governance Arrangements - continued Business continuity and public safety; performance and quality; sustainability; research and information functions were realigned to Corporate Governance Health and social strategy was realigned to Health and Social Care; and Economic Development was strengthened with a renewed focus on external business support; inward investment and trade development; employability and job creation; business development; links with external economic development agencies and marketing. Revised governance arrangements were also put in place for the tram project. The planned reduction in tie Limited staff has taken place. Council appointed Turner and Townsend as project managers, to ensure effective oversight and delivery of the project going forward. The future provision of the statutory repairs service is being reviewed by the Council. Review of Effectiveness The Local Code of Governance details the Councils arrangements for monitoring each element of the framework and providing evidence of compliance. The Chief Internal Auditor has reviewed the effectiveness of the Code and will report the results to the Audit Committee. The Internal Audit Section operates in accordance with CIPFAs Code of Practice for Internal Audit and complies with the ISO 9001/2008 quality standard. The Section undertakes an annual work programme based on an agreed audit strategy and formal assessments of risk that are reviewed regularly. During the year, the Chief Internal Auditor reported directly to the Chief Financial Officer but had free access to the Chief Executive, all directors and elected members, and reported to the Audit Committee in his own name.
The Chief Internal Auditor has provided an assurance statement on the effectiveness of the system of internal control, which was informed by: departmental directors certified assurances; Council officers management activities; Internal Audits review work; Audit Scotlands review work leading to its Annual Audit Report; risk management procedures; reports by external, statutory inspection agencies; assurances provided by the Chief Executives / Directors of Finance of group companies. In compliance with standard accounting practice, the Chief Financial Officer has provided the Chief Executive with a statement of the effectiveness of the Groups internal financial control system for the year ended 31st March 2012. It is the Chief Financial Officer's opinion that reasonable assurance can be placed upon its effectiveness. Each service director has reviewed the arrangements in his / her department and reported on their assessment of the effectiveness of control arrangements, together with any potential areas requiring improvement, to the Chief Executive. Where improvement actions are identified, an action plan will be developed and subject to regular monitoring. In reviewing the overall governance framework, the Council has also considered any relevant third party reviews and recommendations. Reliance has also been placed on each organisations most recent audited accounts together with Council officers detailed knowledge of these organisations as a consequence of their continued involvement with these companies.
137

These reviews have identified actions that will be taken to continue improvement in the following activities: By the Council: the scrutiny and governance arrangements of the Council Committees; the control environment covering the authorisation and approval of expenditure; the control framework within a customer centred statutory repairs service; the delegation of authority to officers below Directors; the processes to ensure compliance with policies and procedures; the mitigation of risks during a time of change of structures and service delivery; the procurement activities of the Council; the awareness and understanding of the employee code of conduct; the processes to ensure income is timeously received by the Council; the implementation of action plans agreed with external inspection agencies; the implementation of actions identified by service directors; the management of major projects through a dedicated programme office; and the delivery of the internal improvement plans. By the Group: the long term financial planning and the links to outcomes; the mitigation of the effects of the economic downturn; and the completion of group restructuring including governance arrangements. Certification It is our opinion that in light of the foregoing, reasonable assurance can be placed upon the adequacy and effectiveness of City of Edinburgh Council and its Group systems of governance. The annual review demonstrates sufficient evidence that the Code is operated effectively and the Council and its Group comply with the Local Code of Corporate Governance in all significant respects.
SUE BRUCE Chief Executive 28 September 2012
ANDREW BURNS Council Leader 28 September 2012
ALASTAIR MACLEAN Director of Corporate Governance 28 September 2012
138
REMUNERATION REPORT
The Council is required, under statute to provide information on the remuneration of each senior officer and each senior elected member, together with any other officer not otherwise included whose remuneration is over 150,000 per annum. In addition, the Council is required to provide information for the most senior employee within each of its subsidiary companies, together with all other employees whose remuneration exceeds 150,000 per annum. All information disclosed in the tables on pages 140 to 149 in this remuneration report has been audited by Audit Scotland. The other sections of the remuneration report will be reviewed by Audit Scotland to ensure that they are consistent with the Financial Statements. Remuneration Arrangements Councillors The remuneration of councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007 (SSI No. 2007/183) as amended by the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2008 (SSI 2008/415). The Regulations provide for the grading of councillors for the purposes of remuneration arrangements, as either the Leader of the Council, the Civic Head (the Lord Provost), senior councillors or councillors. The Leader of the Council and the Civic Head cannot be the same person for the purposes of payment of remuneration. A senior councillor is a councillor who holds a significant position of responsibility in the Council's political management structure. When determining the level of remuneration for councillors, the Scottish Ministers consider the recommendations of the Scottish Local Authority Remuneration Committee (SLARC). SLARC is an advisory non-departmental public body set up in 2005 to advise Scottish Ministers on the remuneration, allowances and expenses incurred by local authority councillors. The salary that is to be paid to the Leader of the Council is set out in the Regulations. For 2011/12, the salary for the Leader of the City of Edinburgh Council was 48,704. The Regulations permit the Council to remunerate one Civic Head. The Regulations set out the maximum salary that may be paid to the Civic Head (the Lord Provost). For 2011/12 this was 36,528. The Council's policy is to pay the Lord Provost at the national maximum. The Regulations also set out the remuneration that may be paid to senior councillors and the total number of senior councillors the Council may have (24 for the City of Edinburgh Council). The maximum yearly amount that may be paid to a senior councillor is 75% of the total yearly amount payable to the Leader of the Council. The total yearly amount payable by the Council for remuneration of all of senior councillors shall not exceed 633,144. The Council is able to exercise local flexibility in the determination of the precise number of senior councillors and their salary within these maximum limits. The Council's policy is summarised below: % of amount payable to Number of Leader of Posts the Council Depute Leader of the Council Depute Convener Conveners of Culture and Leisure, Economic Development, Education, Children and Families, Finance and Resources, Health, Social Care and Housing, Planning, Regulatory and Transport, Infrastructure and Environment Committees Convener of Licensing Board Convener of Audit Committee Vice-Conveners of Culture and Leisure, Economic Development, Education, Children and Families, Finance and Resources, Health, Social Care and Housing and Transport, Infrastructure and Environment Committees Vice-Conveners of Planning and Regulatory Opposition Group Leaders - Labour and Conservative Opposition Group Leaders - Green
139
1 1 8
75% 50% 65%
1 1 6
60% 50% 45%
2 2 1
40% 50% 40%
REMUNERATION REPORT
Councillors - continued In addition, the Council remunerates the Conveners and Vice Conveners of the Joint Boards. The Council has an arrangement with the Joint Boards to reimburse the Council for the additional costs for councillors that arise from them being a Convener or Vice Convener of the Joint Boards. Senior Employees The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for Chief Executives of Scottish local authorities. Circular CO/144 set the amount of salary for the Chief Executive of the City of Edinburgh Council for the period 2008 to 2011. The annual review of the national salary points is pending. It will be considered as part of a wider review of Chief Officer terms and conditions by the SJNC. There is no formal percentage relationship for salaries between the Chief Executive and other chief officers. The national salary points to be applied to Corporate Directors and Head of Service posts are determined using the Hay job evaluation method. The decision on whether there is to be an annual pay increase applied to the national salary points, and at what level, for Chief Executive and Chief Officer posts is made by the SJNC for local authority services and thereafter applied locally by the Council. The Director of Health and Social Care is a joint appointment and the terms and conditions, including pay for the post, are those set by NHS Lothian, who employ the post holder directly. The Council's role in determining the remuneration policies for its companies is currently under review. Remuneration Paid The following tables provide details of the remuneration paid to the Council's Senior Councillors, Senior Employees and the remuneration paid to the Chief Executive (or the most senior manager of that body) of each of the Council's subsidiary bodies. Non-Cash Salary, Expenses Total Total Fees and Taxable / BenefitsRemun. Remun. Allowances Expenses -in-kind 2011/12 2010/11 Council's Leader, Civic Head and Senior Councillors J. Dawe, Leader of the Council G. Grubb, Lord Provost S. Cardownie, Depute Leader of the Council R. Munn, Depute Convener and Convener of Regulatory from 17.06.11 T. Buchanan, Convener Economic Development D. Brock, Convener Culture and Leisure M. MacLaren, Convener Education, Children and Families G. Mackenzie, Convener Transport, Infrastructure and Environment P. Edie, Convener Health, Social Care and Housing J. Lowrie, Convener Planning C. Keir, Convener Regulatory until 17.06.11 48,704 36,528 36,528 30,112 35 0 30 0 1,407 533 536 753 50,146 37,061 37,094 30,865 50,271 37,567 37,243 25,186
31,658 31,658 31,658 31,658
102 40 0 0
2,049 958 787 629
33,809 32,656 32,445 32,287
33,376 32,563 32,108 32,247
31,658 31,658 5,276
0 0 0
205 162 33
31,863 31,820 5,309
32,529 31,715 31,997
140
REMUNERATION REPORT
Remuneration Paid - continued Salary, Fees and Allowances 31,658 Taxable Expenses 190 Non-Cash Expenses / Benefits-in-kind 1,778
Council's Leader, Civic Head and Senior Councillors (cont'd) P. Wheeler, Convener Finance and Resources and Convener of FETA Board A. Jackson, Convener Audit M. Thomas, Convener Licensing Board N. Elliott-Cannon, Vice Convener Finance and Resources T. McKay, Vice Convener Economic Development D. Beckett, Vice Convener Education, Children and Families until 30.06.11 N. Work, Vice Convener Health, Social Care and Housing R. Cairns, Vice Convener Culture and Leisure R. Aldridge, Vice Convener Transport, Infrastructure and Environment S. McIvor, Vice Convener Planning, Vice Convener Education, Children and Families from 13.09.11 and Convener of Lothian Valuation Joint Board until 24.8.11 (Note 3.) L. Lang, Vice Convener Regulatory J. Balfour, Opposition Group Leader (Conservative) A. Burns, Opposition Group Leader (Labour) S. Burgess, Opposition Group Leader (Green) Councillors I. Whyte, Convener Lothian and Borders Police Board (Note 1.) M Bridgman, Convener Lothian and Borders Fire and Rescue Board (Note 2.)
Total Remun. 2011/12 33,626
Total Remun. 2010/11 32,061
24,352 29,222 21,917 21,917 5,479
0 20 0 33 15
0 378 837 1,092 687
24,352 29,620 22,754 23,042 6,181
24,352 29,927 22,457 22,839 22,280
21,917 21,917 21,917
33 0 0
851 100 779
22,801 22,017 22,696
23,709 22,172 22,690
21,141
174
46
21,361
20,471
19,482 24,352 24,352 19,482
0 97 0 0
0 336 0 666
19,482 24,785 24,352 20,148
19,718 24,273 24,352 20,022
36,528 36,528
904 0
531 599
37,963 37,127
37,965 38,373
729,257 1,673 16,732 747,662 784,463 Notes: 1. The amount recharged to Lothian and Borders Police Board in 2011/12 was 16,220 (2010/11 17,136). 2. The amount recharged to Lothian and Borders Fire and Rescue Board in 2011/12 was 27,033 (2010/11 28,561). 3. The amount recharged to Lothian Valuation Joint Board in 2011/12 was 5,408 (2010/11 5,714).
141
REMUNERATION REPORT
Remuneration Paid - continued Remuneration paid to Councillors - continued Members' Salaries and Expenses The Council paid the following amounts to members of the Council during the year (these sums include the totals shown on the previous page): 2011/12 2010/11 Salaries 1,226,356 1,263,315 Expenses Claimed by councillors Paid directly by the Council Total Remuneration paid to Senior Officers Salary, Fees and Allowances Council's Senior Officers S. Bruce, Chief Executive (from 1 January 2011) (full year equivalent) T. Aitchison, Chief Executive (until 31 December 2010) G. Tee, Director Children and Families D. Anderson, Director City Development A. Maclean, Director Corporate Governance (from 26 September 2011) (full year equivalent) J. Inch, Director Corporate Services (until 30 April 2011) (full year equivalent) D. McGougan, Director Finance (until 30 June 2011) (full year equivalent) P. Gabbitas, Director Health and Social Care M. Turley, Director Services for Communities M. Miller, Chief Social Work Officer 158,553 Non-Cash Expenses / Benefits-in-kind 0 Total Remun. 2011/12 158,553 Total Remun. 2010/11 39,638 158,553 n/a 140,676 123,525 67,887 n/a 0 576 0 n/a 0 0 0 n/a 140,676 124,101 67,887 127,888 140,676 123,525 n/a 2,773 28,706 1,257,835 3,787 29,519 1,296,621
Taxable Expenses 0
132,105 17,500 0 0 17,500 123,525
123,525 35,685 123,525 61,036 123,525 97,782 0 0 0 1,308 0 0 62,344 123,525 97,782 62,278 123,525 97,133 0 0 35,685 123,525
142
REMUNERATION REPORT
Remuneration Paid - continued Remuneration paid to Senior Officers - continued Salary, Fees and Allowances K. Kelly, Acting Director Finance (from 1 July to 31 October 2011) (full year equivalent) K. Kelly, Chief Financial Officer (from 1 November 2011) (full year equivalent) Total 37,172 111,516 41,461 99,507 904,802 576 1,308 906,686 961,713 0 0 41,461 n/a Non-Cash Expenses / Benefits-in-kind 0 Total Remun. 2011/12 37,172 Total Remun. 2010/11 n/a
Taxable Expenses 0
S. Bruce joined the Council as Chief Executive in January 2011. T. Aitchison retired from the Council in December 2010. Remuneration shown above excludes any fees payable in respect of returning officer or other election duties. S. Bruce received an additional sum of 17,288 in 2011/12 for returning officer duties this was lower than the authorised amount of 35,288. T. Aitchison received an additional sum of 15,300 in 2010/11 for returning officer duties. J. Inch and D. McGougan retired from the Council in April and June 2011 respectively. A. Maclean was appointed Director of Corporate Governance in September 2011, replacing the former posts of Director of Corporate Services and Director of Finance. K. Kelly was appointed Acting Director of Finance in July 2011 and subsequently Chief Financial Officer in November 2011. Salaries shown for A. Maclean and K. Kelly relate to the responsibilities as shown. P. Gabbitas is employed by NHS Lothian and 50% of his salary costs are recharged to the Council. The above figures therefore show the Council's share. Council Subsidiary Companies EDI Group and EICC are subsidiary companies of CEC Holdings Limited. Figures shown for these companies and Lothian Buses are for the year ended 31 December 2011 and 2010 respectively. Salary, Fees and Allowances 101,577 Compensation Other for Loss of Benefits Office 1,324 0 Total Remun. 2011/12 102,901 Total Remun. 2010/11 103,260
Council's Subsidiary Companies E. Adair, Operations and Finance Director, EDI Group H. Rissmann, Chief Executive, EICC Lothian Buses I Craig, Managing Director W. Campbell, Operations Director W. Devlin, Engineering Director N. Strachan, Finance Director I Coupar, Marketing Director, (until 31 December 2010)
Bonus 0
148,234
12,910
161,144
166,058
159,675 145,159 145,043 144,464 n/a
47,200 42,900 42,900 42,900 n/a
1,262 1,166 2,431 1,246 n/a
0 0 0 0 n/a
208,137 189,225 190,374 188,610 n/a
203,203 Exempt Exempt Exempt 233,015
143
REMUNERATION REPORT
Council Subsidiary Companies - continued Council's Subsidiary Companies tie Limited S. Bell, Tram Project Director R. Jeffrey, Chief Executive A Richards, Managing Director (ETL) F McFadden, Infraco Director S Clark, Programme Director D Murray, Commercial Director G Roberts, Finance Director Total Salary, Fees and Allowances 180,567 105,577 186,706 147,320 79,638 107,625 81,846 1,733,431 Compensation Other for Loss of Benefits Office 1,000 5,000 0 1,000 1,000 1,000 1,000 17,429 87,211 82,825 49,130 49,857 66,864 39,893 30,855 406,635 Total Remun. 2011/12 283,891 193,402 235,836 203,301 156,684 154,118 113,701 2,381,324 Total Remun. 2010/11 158,875 150,000 n/a n/a n/a n/a n/a 1,014,411
Bonus 15,113 0 0 5,124 9,182 5,600 0 223,829
Other benefits paid mainly relate to healthcare and telephone provision. Number of Employees by Pay Band The total number of Council employees receiving more than 50,000 remuneration for the year (including retirement costs) are shown below. 2011/12 2010/11 50,000 - 54,999 185 156 55,000 - 59,999 79 105 60,000 - 64,999 37 37 65,000 - 69,999 27 35 70,000 - 74,999 27 26 75,000 - 79,999 9 13 80,000 - 84,999 2 7 85,000 - 89,999 2 3 90,000 - 94,999 7 5 95,000 - 99,999 9 15 100,000 - 104,999 1 2 105,000 - 109,999 0 1 110,000 - 114,999 0 2 115,000 - 119,999 1 0 120,000 - 124,999 2 4 125,000 - 129,999 0 1 130,000 - 134,999 0 0 135,000 - 139,999 0 1 140,000 - 144,999 1 1 145,000 - 149,999 0 0 150,000 - 154,999 0 0 155,000 - 159,999 1 0 Total Number of Employees
144
390
414
REMUNERATION REPORT
Exit Packages The number of exit packages provided for by the Council during the year, together with the total cost of those packages is shown in the table below. The total cost shown includes pension strain costs and the capitalised value of compensatory added years payments. Exit package cost band Number of Compulsory Redundancies 2011/12 2010/11 2 4 1 0 1 1 0 0 9 9 4 6 0 0 1 0 0 20 Number of Other Departures Agreed 2011/12 2010/11 49 82 14 8 6 4 2 0 165 77 75 32 13 9 3 0 1 210 Total Number of Exit Packages by Cost Band 2011/12 2010/11 51 86 15 8 7 5 2 0 174 86 79 38 13 9 4 0 1 230 Total Cost of Exit Packages in Each Band 2011/12 2010/11 000 000 600 894 2,479 707 592 611 620 328 0 5,937 2,271 1,778 918 807 469 0 234 7,371
0 - 20,000 20,001 - 40,000 40,001 - 60,000 60,001 - 80,000 80,001 - 100,000 100,001 - 150,000 150,001 - 200,000 200,001 - 250,000
Pension Rights Pension benefits for councillors and local government employees are provided through the Local Government Pension Scheme (LGPS). Councillors pension benefits are based on career average pay. The councillors pay for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the increase in the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day of the month in which their membership of the scheme ends. The total revalued pay is then divided by the period of membership to calculate the career average pay. This is the value used to calculate the pension benefits. For local government employees a final salary pension scheme is operated. This means that pension benefits are based on the final years pay and the number of years that person has been a member of the scheme. The schemes normal retirement age for both councillors and employees is 65. From 1 April 2009 a five tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Prior to 2009 contributions rates were set at 6% for all non-manual employees. The tiers and members contribution rates for 2011-12 were as follows: Whole Time Pay On earnings up to and including 18,500 (2011 18,000) On earnings above 18,500 and up to 22,600 (2011 18,000 to 22,000) On earnings above 22,600 and up to 30,900 (2011 22,000 to 30,000) On earnings above 30,900 and up to 41,200 (2011 30,000 to 40,000) On earnings above 41,200 (2011 40,000) Contribution rate 5.50% 7.25% 8.50% 9.50% 12.00%
If a person works part-time their contribution rate is worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned.
145
REMUNERATION REPORT
Pension Benefits - continued Pension Rights - continued There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on 1/60th of final pensionable salary and years of pensionable service. (Prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of final pensionable salary and years of pensionable service). The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as consequence of their total local government service, and not just their current appointment. Council's Leader, Civic Head and Senior Councillors The pension entitlements of senior councillors for the year to 31 March 2012 are shown in the table below, together with the contribution made by the Council to each senior councillors' pension during the year. In-year pension contribs. For year to 31.03.12 10,374 6,414 For year to 31.03.11 10,033 5,016 Accrued Pension Benefits As at 31.03.12 000 4 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 Difference from 31.03.11 000 1 0 1 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0
J. Dawe, Leader of the Council R. Munn, Depute Convener and Convenor of Regulatory Committee from 17.06.11 T. Buchanan, Convener Economic Development M. MacLaren, Convener Education, Children and Families G. Mackenzie, Convener Transport, Infrastructure and Environment P. Edie, Convener Health, Social Care and Housing J. Lowrie, Convener Planning C. Keir, Convener Regulatory until 17.06.11 (withdrew from pension scheme 31 May 2011) P. Wheeler, Convener Finance and Resources and Convener of FETA Board N. Elliott-Cannon, Vice Convener Finance and Resources T. McKay, Vice Convener Economic Development D. Beckett, Vice Convener Education, Children and Families until 30.06.11 (withdrew from pension scheme 30 June 2011)
Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum
6,743 6,743 6,743 6,743 6,743 1,124
6,522 6,522 6,522 6,522 6,522 6,522
6,743
6,522
4,668 4,668 1,167
4,515 4,515 4,515
146
REMUNERATION REPORT
Pension Benefits - continued Council's Leader, Civic Head and Senior Councillors - continued In-year pension contribs. For year to 31.03.12 4,668 4,668 4,668 4,503 For year to 31.03.11 4,515 4,367 4,367 4,181 Accrued Pension Benefits As at 31.03.12 000 2 2 2 2 2 2 2 2 Difference from 31.03.11 000 0 0 0 0 0 0 0 0
N. Work, Vice Convener Health, Social Care and Housing R. Cairns, Vice Convener Culture and Leisure R. Aldridge, Vice Convener Transport, Infrastructure and Env. S. McIvor, Vice Convener Planning, Vice Convenor Education, Children and Families from 13.09.11 and Convener of Lothian Valuation Joint Board until 24.8.11 L. Lang, Vice Convener Regulatory A. Burns, Opposition Group Leader (Labour) I. Whyte, Convener Lothian and Borders Police Board M. Bridgman, Convener Lothian and Borders Fire and Rescue Board Total
Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum
4,149 5,187 7,780 7,780 112,276
4,013 5,016 7,525 7,525 115,757
1 1 2 2 3 3 3 2
0 0 0 0 1 0 1 0
All senior councillors shown in the above table are members of the Local Government Pension Scheme. Not all senior councillors are members of the Local Government Pension Scheme. The pension figures shown relate to the benefits that the person has accrued as consequence of their total local government service, including any service with a Council subsidiary body, and not just their current position. Senior Employees The pension entitlements of senior employees for the year to 31 March 2012 are shown in the table below, together with the contribution made by the Council to each senior employees' pension during the year. In-year pension contribs. For year to 31.03.12 37,454 For year to 31.03.11 8,045 Accrued Pension Benefits As at 31.03.12 000 71 188 n/a n/a 66 178 Difference from 31.03.11 000 4 1 n/a n/a 2 0
S. Bruce, Chief Executive (including returning officer role) (from 1 January 2011) T. Aitchison, Chief Executive (including returning officer role) (until 31 December 2010) G. Tee, Director Children and Families
Pension Lump Sum Pension Lump Sum Pension Lump Sum
n/a
36,829
29,964
28,979
147
REMUNERATION REPORT
Pension Benefits - continued Senior Employees - continued In-year pension contribs. For year to 31.03.12 26,311 24,585 2,193 6,578 8,240 26,311 20,814 22,048 204,498 For year to 31.03.11 25,446 n/a 25,446 25,446 8,240 25,446 20,009 n/a 203,886 Accrued Pension Benefits Difference As at from 31.03.12 31.03.11 000 000 8 2 5 0 4 0 59 164 63 175 21 63 49 128 31 79 41 108 2 0 0 0 1 0 1 3 2 0 2 0 3 4
D. Anderson, Director City Development A. Maclean, Director Corporate Governance J. Inch, Director Corporate Services (until 30 April 2011) D. McGougan, Director Finance (until 30 June 2011) P. Gabbitas, Director Health and Social Care (Council proportion) M. Turley, Director Services for Communities M. Miller, Chief Social Work Officer K. Kelly, Acting Director Finance / Chief Financial Officer Total
Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum
All senior employees shown in the previous table, with the exception of P. Gabbitas are members of the Local Government Pension Scheme. P. Gabbitas is a member of the National Health Service Superannuation Scheme (Scotland). Pension figures for A. Maclean and K. Kelly are for the full year. The pension figures shown relate to the benefits that the person has accrued as consequence of their total local government / public service and not just their current appointment. Accrued pension benefits relate to the position as at 31 March 2012, or the date of leaving, if that is earlier. Employees contribute towards their pensions in accordance with the rates set out on page 145. The contribution rate for P. Gabbitas is 8.5%. Council's Subsidiary Companies The pension entitlements of senior employees within the Council's subsidiary bodies for the year to 31 March 2012 are shown below, together with the contribution made to each senior employees' pension during the year. In-year pension contribs. Accrued Pension Benefits For year to 31.03.12 19,558 17,047 For year to 31.03.11 18,903 16,199 As at 31.03.12 000 18 40 n/a n/a 13 16 24 52 Difference from 31.03.11 000 2 0 n/a n/a 3 0 Exempt Exempt
E. Adair, Operations and Finance Director, EDI Group H. Rissmann, Chief Executive, EICC Lothian Buses I. Craig, Managing Director W. Campbell, Operations Director
30,817 28,015
29,634 Exempt
148
REMUNERATION REPORT
Pension Benefits - continued Council's Subsidiary Companies - continued In-year pension contribs. For year to 31.03.12 Lothian Buses - continued W. Devlin, Engineering Director N. Strachan, Finance Director I Coupar, Marketing Director, until 31 December 2010 tie Limited S. Bell, Tram Project Director, until October 2011 R. Jeffrey, Chief Executive, until June 2011 F McFadden, Infraco Director, until October 2011 S Clark, Programme Director, until October 2011 D Murray, Commercial Director, until December 2011 G Roberts, Finance Director, until September 2011 Total 27,993 27,881 n/a For year to 31.03.11 Exempt Exempt 18,270 Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Pension Lump Sum Accrued Pension Benefits As at 31.03.12 000 29 73 28 66 n/a n/a 12 15 7 0 6 3 21 51 6 5 7 11 Difference from 31.03.11 000 Exempt Exempt Exempt Exempt n/a n/a 2 0 0 0 1 0 1 0 1 0 1 0
22,869 7,061 18,000 13,548 54,791 9,987 277,567
29,869 28,200 n/a n/a n/a n/a 141,075
EDI Group and EICC are subsidiary companies of CEC Holdings Limited. Figures shown for these companies and Lothian Buses are for the year ended 31 December 2011 and 31 December 2010 respectively. The individuals shown in the above table, except H. Rissmann, are members of the Local Government Pension Scheme. The pension figures shown relate to the benefits that the person has accrued as consequence of their total relevant service and not just their current appointment.
SUE BRUCE Chief Executive 28 September 2012
ALASTAIR MACLEAN Director of Corporate Governance 28 September 2012
149
INDEPENDENT AUDITOR'S REPORT

Independent auditors report to the members of City of Edinburgh Council and the Accounts Commission for Scotland I certify that I have audited the financial statements of City of Edinburgh Council and its group for the year ended 31 March 2012 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the group and authority-only Movement in Reserves Statement, Comprehensive Income and Expenditure Statements, Balance Sheets, and Cash-Flow Statements, the authority-only Housing Revenue Account, Council Tax Income Account, the Non-Domestic Rates Income Account, Common Good Fund and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2011/12 (the 2011/12 Code). This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the Chief Financial Officer and auditor As explained more fully in the Statement of Responsibilities, the Chief Financial Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require me to comply with the Auditing Practices Boards Ethical Standards for Auditors.
Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the groups and the bodys circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Chief Financial Officer; and the overall presentation of the financial statements. In addition, I read all the financial and non-financial information in the financial statements to identify material inconsistencies with the audited financial statements. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my report.
Opinion on financial statements In my opinion the financial statements: give a true and fair view in accordance with applicable law and the 2011/12 Code of the state of the affairs of the group and of the body as at 31 March 2012 and of the income and expenditure of the group and the body for the year then ended; have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2011/12 Code; and have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003.
150
INDEPENDENT AUDITOR'S REPORT

Opinion on other prescribed matters In my opinion: the part of the Remuneration Report to be audited has been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 1985; and the information given in the Foreword for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which I am required to report by exception I am required to report to you if, in my opinion: adequate accounting records have not been kept; or the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or I have not received all the information and explanations I require for my audit; or the Annual Governance Statement does not comply with Delivering Good Governance in Local Government; or there has been a failure to achieve a prescribed financial objective.
I have the following to report in respect of these matters. Failure to achieve a prescribed financial objective Whilst it has not been necessary to qualify my opinion in respect of the following matter I am required to report it to you. Local authorities have a duty under section 10 of the Local Government in Scotland Act 2003 to conduct their significant trading operations so that income is not less than expenditure over each three year period. The authority failed to comply with this statutory requirement for the three year period ending 31 March 2012 in respect of their Refuse Collection (including Trade Waste), Direct Cleaning and Edinburgh Catering Services - Other Catering significant trading operations.
David McConnell Assistant Director of Audit Audit Scotland 7th Floor, Plaza Tower East Kilbride G74 ILW 28 September 2012
151
Appendix 2 CITY OF EDINBURGH COUNCIL - 25 OCTOBER 2012
Reconciliation of Unaudited and Audited Comprehensive Income and Expenditure Statement and General Fund Revised Outturn Position:
Surplus on Provision of Services per Unaudited Financial Statements Surplus on Provision of Services per Audited Financial Statements Difference Items that impact on the General Fund Surplus Review of bad debt and other provisions: Statutory notices Housing benefit recoveries Other miscellaneous provisions Review of creditors Net increase
-18,878 -16,498 2,380
1,948 300 119 2,367 13 2,380
Reconciliation of Movement in General Fund Balance
Unallocated Balance 000 -13,025 0 -13,025
Earmarked Balances 000 -90,793 2,380 -88,413
Total 000 -103,818 2,380 -101,438
Balance as at 31 March 2012 (per unaudited accounts) Adjusting items, per above Revised balance as at 31 March 2012
Reduction in funds relates to:
Per Unaudited Accounts -18,537 -10,870
Per Audit Audited Adjusts. Accounts 2,261 119 -16,276 -10,751
Contingency Funding - priority outcomes Contingent risks, including equal pay, etc.

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Notice of Meeting and Agenda

The City of Edinburgh Council

5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10

Reports from Committees

Reports from Neighbourhood Partnerships

Notices of Motion for Debate at Council

Please recycle this paper

Health, Social Care and Housing Committee

Short-Term Private Lets Review Findings

2 Health, Social Care and Housing Committee 11 September 2012

3 Health, Social Care and Housing Committee 11 September 2012

Decision To approve the motion.

4 Health, Social Care and Housing Committee 11 September 2012

(Reference report by the Director of Health and Social Care, submitted.)

5 Health, Social Care and Housing Committee 11 September 2012

Social Work Complaints Review Committee

6 Health, Social Care and Housing Committee 11 September 2012

Rechargeable Repairs Policy

7 Health, Social Care and Housing Committee 11 September 2012

10 CCTV Telfer Underpass

(Reference report by the director of Services for Communities, submitted.)

11 Approaches to Developing Affordable Homes on Council Land

12 Adaptations Service: Flexible Options and Solutions

8 Health, Social Care and Housing Committee 11 September 2012

13 The Future of Right to Buy Scottish Government Consultation Paper

9 Health, Social Care and Housing Committee 11 September 2012

14 Housing Performance Report April/May 2012

16 Empty Homes Task Force

10 Health, Social Care and Housing Committee 11 September 2012

11 Health, Social Care and Housing Committee 11 September 2012

18 Scottish Social Housing Charter Indicators Scottish Housing Regulator Consultation

19 National Tenancy Deposit Scheme Publicity Plan

20 Rent Collection Performance

12 Health, Social Care and Housing Committee 11 September 2012

Economic Development Committee

Presentation - Changes to Employability Provision

2 Economic Development Committee 18 September 2012

(Reference report by the Head of Economic Development, submitted.)

Economic Development Service: Audit of Performance for 2009/10 to 2011/12

(Reference report by the Head of Economic Development, submitted.)

Development Activity Bulletin 2011

The City of Edinburgh Council

Edinburgh, 20 September 2012. At a meeting of The City of Edinburgh Council.

2 The City of Edinburgh Council 20 September 2012

Donald Gorrie and Jimmy Cook Tributes

Disposal of Leith Waterworld

5 The City of Edinburgh Council 20 September 2012

6 The City of Edinburgh Council 20 September 2012

Appointments to Council Companies

7 The City of Edinburgh Council 20 September 2012

Councillor Austin Hart

Councillor Rankin Councillor Rose Councillor Aldridge

Councillor Day Councillor Edie

8 The City of Edinburgh Council 20 September 2012

(Reference report no CEC/42/12-13/L by the Leader, submitted.)

Community Empowerment and Renewal Bill Scottish Government Consultation

9 The City of Edinburgh Council 20 September 2012

10 The City of Edinburgh Council 20 September 2012

11 The City of Edinburgh Council 20 September 2012

12 The City of Edinburgh Council 20 September 2012

CCTV Telfer Underpass

Governance Review: Political Management Arrangements and Operational Governance

14 The City of Edinburgh Council 20 September 2012