Natural England

Progress towards the delivery of corporate plan objectives for the current year - second quarter report (AP02/37)

FOR DECISION

Purpose of the Paper

1. This is the second quarterly report on progress towards the Corporate Plan for 2002/03. 

Overview of second quarter progress

2. The Agency is making good progress in the majority of work areas. Particular achievements this quarter include:

• Culture change programme now in full progress with vision, values and behaviours agreed.  

• draft Corporate Plan on schedule, including a new structure
• Think Rural Health report published in September.
• Implementation of the national training strategy for parish and town councils started. Early work on a succession strategy also commenced.
• Rural housing enabler programme continues to roll out on course. Effective collaborative and training network established.
• The wheels to work good practice guide was launched in London by Alun Michael and work is now under way to encourage its inclusion as mainstream provision.
• Vital Villages database went live via the web to the public.
• Walking the way to health initiative continues to be a success and is on course to meet its target of 200 grant-aided schemes 6 months early. 
• Agreed operational arrangements with Defra for the aggregates levy sustainability fund, a large volume of business has been identified (for 2002/03 and 2003/04) and grants totalling over £2.5m have been offered to date.
• The statutory consultation with local authorities on the proposed South Downs National Park was completed on the 16 August 2002. 105 responses were received from statutory consultees.
• Renegotiation of the SPIRIT contract continues. Our requirements have been clarified and we are in close discussion with IBM. Target deadline for material progress is end of October.
• Principal Manager training designed and in the process of being delivered, began late September running through to December.

  3. Programme specific areas of concern include:

• Wider Welcome; as reported at the first quarter, the contractor is still giving cause for concern on access mapping. The main area of concern is project management by the contractors. Their inability to scale up in size has caused the biggest problem. Arrangements for the future are to be assessed, along with CA project management, by Atkins who have been contracted to carry out a project audit. Timescales for the delivery of the restrictions system may not allow for development and testing if the decision to go for regional commencement is announced. DEFRA may ask the Agency to open the restrictions system for business one year in advance of commencement. Assuming regional commencement (starting summer 2004) is announced, the timescale for delivery of the systems to be developed under the new contract is very tight. We are discussing with DEFRA the scope to shorten their proposed one year lead-in period, to allow more time to develop and test our systems.
• IT & Knowledge Management; some problems with IT service delivery and delays in new IT services due to impact of contract renegotiation work and disputes with IBM. MS Office now due for December and Signpost delayed.

  4. Summary reports for each programme, detailing performance activities (highlighting progress and expressing concern), are attached in Annex 1.

  Financial Summary

  5. At the end of the second quarter , in cash accounting terms, the Agency's programme spend is tracking above the profiled budget, gross expenditure of £22.9m has been achieved which lies 11% above the budgeted profile. Managers have released some funds from programmes (Rural Proofing £40k and Enjoying the Countryside £325k). Further funds were requested by the managers for Countryside on your Doorstep (for WHI) of £300k and Local Governance and Housing for housing needs research projects of £60k. The Executive have taken the decision to divert the released funds to WHI which will allow the Agency to exploit the success of WHI by additional volunteer training, GP awareness raising and follow up the successful Step-o-meter campaign. The Executive also decided to fund the Local Governance and Housing housing needs research projects.

  6. Vital Villages is offering to release funds of £2m from the ring fenced Rural and Parish Transport funds. This is due to a very slow start last year (less than 50 schemes) and a forecast of over 200 projects this year alone. However, the rate of progress is far behind that suggested in the Rural White Paper. Many joint schemes and some very innovative and creative solutions are now being realised after big promotional pushes e.g. parish transport week, and extending the use of consultants to help communities with their appraisals. The community services grant continues to be the most popular and a request for further funds of £1m has been made. However, the funds for this could be found in the first instance from within the Vital Villages programme assuming the ring fence is removed on transport funds. The Executive took the decision to negotiate with Defra on the ring fenced transport budget and as the outcome of these negotiations should be apparent at the third quarter, a decision will be taken then as to how to fund additional community service grants.

  7. The global salary position is on budget at the half year point, but when the impact of the pay award is taken into account, an overspend for the second half is forecast of £250k. Much depends on the vacancy situation. However, the non-staff running costs are forecasting an underspend due to savings on travel and subsistence, accommodation and legal fees. This will compensate for any overspend on salaries resulting in the Agency's running costs outturning to budget.

  8. The Agency is currently in a transitional period towards resource accounting. Good progress has been made this quarter and the Agency will convert to resource accounting at the third quarter. The Board will receive more detail at the third quarter, particularly of the impact of the change.