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1
Improvement and Efficiency
Benefits Realisation
22nd March 2012
Theresa Grant
Acting Chief Executive
Trafford Council
2
Background
• New programme and gateway process approved April 2011
• Identified Target of £58-£116m efficiencies to be delivered across AGMA Authorities
• Comprehensive Spending Review-greater pressure on LA Budgets and Resources increased the need to deliver cashable savings.
• Local Authority budget reductions have impacted significantly some of the I&E projects which are now more focussed on providing a resilience resource to maintain current level of service rather than drive out further efficiencies as authorities have already withdrawn funding from their own budgets.
• Realignment of the I&E Programme to support Public Service Reform (Charlotte Clark, Business Analyst 2 days/week; Neil Shortland, Management Accountant 3 days/week; Vicky Sharrock, Programme Manager 4.5 days/week).
• Programme will help LA’s to deliver their savings targets for 2012/13
3
Progress
• AGMA playing a key role in developing mechanisms where the authorities’ savings can be delivered with less impact on services through:
– Joint procurement of goods and services– Sharing ideas and savings options that are transferable from one council to
another– Creating coalitions of the willing – either through two councils coming together
on many services or opportunistic collaboration on a service by service basis– Overseeing politically and managerially so savings are delivered in practice
• Projects at different developmental stages, working to final business case- Property and Asset management, Adult Residential Care Pricing Framework, Adults Equipment Procurement
• Move to a cluster delivery model- ICT, Corporate Support Services, Procurement and Customer projects
• Working to ensure that apportionment of savings is done in a proportionate and appropriate manner.
• Continuing to develop cluster arrangements with appropriate organizations
4
Progress
• Benefits Realisation Process established
• Each Local Authority completing Benefit Profiles for each Priority Theme
• Work ongoing with colleagues across each authority to track the benefits, identified and realised
for each workstream.
• Designed process for gathering and validating benefits data from each authority.
5
Update Of Projects- Tier 1
6
Update Of Projects- Tier 2
7
Savings Identified- Tier 1
Savings Target 2011/12
Savings Target 2012/13
Savings Target 2013/14 Total
£'000 £'000 £'000 £'000
Procurement and Commissioning projects 5,500 8,700 10,800 25,000
LESS Projects included in the services below 907 7,624 756 9,287
Cross cutting Procurement projects 4,593 1,076 10,044 15,713
Tier 1 £'000 £'000 £'000 £'000
Adults Residential Care 3,100 3,100
Community Equipment 300 300
Children's LAC Procurement 3,400 3,400
Placements and Admissions 548 548
School improvement 500 500
Other Collaborative Work 55 370 400 825
ICT ICT Strategy Options 3,400 3,400
Corporate Support Services Procurement 1,000 1,000
28,786
8
Savings Identified- Tier 2
Savings Target 2011/12
Savings Target 2012/13
Savings Target 2013/14 Total
Tier 2 £'000 £'000 £'000 £'000
Workforce Development AGMA Wide centre of excellence for Training 0 0 423 423
E-Learning 427 427
Training procurement Framework 0 190 190
Transport FMU- Mgmnt and Admin costs 456 456
VPMM Procurement 907 140 1,047
Home to School 125 375 500
Customer Contact Strategic Options-Shared knowledge 1,500 1,500
Strategic Options-Shared procurement 0
Property Property and Asset Management 1,800 1,810 3,610
Income Generation Income Generation 836 470 1,306
Other collaborative work 2,423 1,564 606 4,593
14,052
Summary
Cross cutting Procurement projects 4,593 1,076 10,044 15,713
Tier 1 55 12,618 400 13,073
Tier 2 4,291 6,922 2,839 14,052
Overall Total Identified 8,939 20,616 13,283 42,838
Target savings by Project
3,400
5,273
15,713
3,4001,0001,140
2,003
1,500
3,610
400
2,075
1,500
1,306
454
60
104
Adult Services
Children's
Cross Cutting Procurement
ICT
Corporate Support Services
Workforce Development
Transport
Customer Contact
Property
Income Generation
People Services
People Services
Environmental Services
Transactional Finance
Transactional Finance
Environmental Services
10
Savings Realised
• The I & E programme has delivered £12.2m in the years 2009/10 & 2010/11 from the Procurement Hub and earlier projects.
• The I & E programme is expecting to deliver a further £9.2m of savings in 2011/12.
• The following Chart and pie charts display the achieved savings by project for prior years and for the current year (see pages 12 to 13).
• The AGMA collaborative programme projects a further £20.6m of savings in 2012/13 and £12.6m of savings in 2013/14 and the chart on page 15 shows the projected distribution of these savings
• The AGMA collaborative programme has a potential optimum savings of £54.6m.
• The £54.6m needs to be shown as a %age of expenditure
11
Non Financial Benefits
• Add examples
• e.g. resilience, cost avoidance (e.g. adults)
12
AGMA Realised savings to date
Realised Savings 2010/11 Realised Savings 2011/12 Total
Tier 1 £'000 £'000 £'000
Procurement & Commissioning 5,764 5,321 11,085
LESS Projects included in the services below 2,699 2,886 5,585
Cross cutting Procurement projects 3,065 2,435 5,500
Tier 1 £'000 £'000 £'000
Adults 616 889 1,505
Children's 1,750 1,317 3,067
ICT 291 291
Tier 2 £'000 £'000 £'000
Workforce Development 0
Transport 42 1,058 1,100
Property 0 0
Income Generation 836 836
Other Collaborative Work 0 2,746 2620
Total savings realised 5,764 9,281 14,919
13
AGMA Savings Realised in 2009/10 & 2010/11 (in £’000s)
Savings Realised in 2009 & 2010 (figures in £'000s)
3,065
616
1,750
291
0
0
42
0
0
0
0
Cross cutting Procurementprojects
Adult Services
Children's
ICT
Corporate Support Services
Workforce Development
Transport
Customer Contact
Property
Income Generation
Other Collaborative Work
14
AGMA Savings realised in 2011/12 (in £’000s)
Savings realised in 2011/12 in £'000s
889
2,4352,746
836
1,058 1,317
0
00
00
Cross cutting Procurementprojects
Adult Services
Children's
ICT
Corporate Support Services
Workforce Development
Transport
Customer Contact
Property
Income Generation
Other Collaborative Work
15
Savings Target 2012/13
Savings Target
2013/14
Cross cutting Procurement 1,076 10,044
Adults 3,400 0
Children's 4,818 400
ICT 3,400 0
Corporate Support Services 1,000 0
Workforce Development 617 423
Transport 971 0
Customer Contact 1,500 0
Property 1,800 1,810
Income Generation 470 0
Other collaborative work 1,564 0
20,616 12,677
16
Procurement Hub Savings realised in 2011/12
Procurement Hub Savings Savings realised in 2011/12
Adults-Community Equipment 114
Adults Domiciliary/Residential Care 813
Children's Residential Care 1175
Children's Foster Care 100
Childrens-16+ Accommodation Framework 112
Workforce Dev-Training Courses 50
VPMM-Fuel 22
VPMM-Purchase of Refuse Collection Vehicles 709
VPMM-Driver Training 32
VPMM-Vehicle Contract Hire 50
VPMM-Fleet lease extension 250
VPMM-Fleet Management software 7
Taxi Procurement 350
Mobile phones 496
Greengrocery/Frozen Foods 544
Spendpro - AGMA Councils 19
Spendpro - Rollout to sub regions 71
Street Lighting Connections 274
Temp Agency staff - Commensura contract 126
Cleaning and Janitorial Supplies 7
5321
17
18
Next Steps
• Continue to identify and track benefits and refine process based on outcomes of the consultation with the Commission regarding the re-categorisation of the current work streams within the Programme