Mr. Michael McCarthy:

I want to express our appreciation to the Chairman, the membership and the secretariat for extending an invitation to NOAC to appear before this morning's proceedings. I am joined by my colleague, Ms Martina Maloney, who is the chair of our subgroup on performance indicators, and by Mr. Neill Dalton and Ms Claire Gavin in the Public Gallery, who are here on behalf of the NOAC secretariat.

I thank the committee for its invitation to meet today to discuss the work of the National Oversight and Audit Commission generally, but more specifically, its recent performance indicator report for 2017. The annual performance indicator report published by NOAC is one of its key reports every year. NOAC has the function of scrutinising local authority performance against relevant indicators. The performance indicator subgroup’s mandate is to recommend appropriate performance indicators in respect of local authority activity and to oversee the data collection, verification, compilation and publication of a report on those indicators annually. NOAC believes that monitoring performance over time and against comparable authorities has the potential to encourage continuous improvement in local authority service provision.

Specifically on the issue of performance indicator reports, four performance indicator reports have been published by NOAC since 2014. A number of organisations are involved in its production, including the Local Government Management Agency, LGMA, 31 local authorities and various Government Departments. The outcomes of the report should enable best practice to be highlighted so that local authorities can learn from each other for the betterment of the services that they provide for their communities. In respect of the 2018 performance indicator report, the data for which is currently being collected, we have added two new indicators, bringing the total number to 37. Indicators are kept under ongoing review with the purpose of developing more qualitative outcome focused indicators as NOAC acquires a greater understanding of local authority functions through its examination of different aspects of the work that they do. NOAC is also beginning to examine the scope for grouping local authorities for comparative reporting purposes.

Underpinning the day to day work of NOAC is the requirement to see NOAC recognised as an organisation that can deliver real reform. Central to this is making sure that local authorities are delivering real value for money while adhering to proper governance. NOAC also ensures that it supports the best practices that are central to the work of local authorities. Successful transformation requires robust planning, clear and coherent leadership and suitably skilled staff. The impact of increasing demands across local government and the changing landscape in which councils operate mean that planning and oversight have never been more important. Robust plans that project how local authorities’ outcomes and priorities will be delivered and funded are essential to ensuring the sustainability of services for the public. It is important that NOAC be there to ensure that these decisions are taken in a planned and co-ordinated way and that the impact of decisions on communities and outcomes is transparent and also understood. I look forward to the discussion to follow with committee members on the work of NOAC.