BEST VALUE CHANGES LOCAL GOVERNMENT IN SCOTLAND ACT 2003 AUDIT

Comhairle Nan Eilean Siar - Ag obair comhla airson nan eilean Chief Executive

Local Government in Scotland Act - AUDIT

•BEST VALUE CHANGES•LOCAL GOVERNMENT IN SCOTLAND ACT 2003

•AUDIT



LGIS Act 2003 - the business framework

• Obligations to improve • new audit and intervention arrangements• new emphasis on accountability for

decisions and performance• new freedoms to trade and charge• new freedoms to spend • new freedoms to invest



Best Value: the same as before…

• duty of continuous improvement• balance quality and cost• promotion of equalities important • Decisions must be for benefit of

stakeholders - organisational advantage is not enough



But different...

• One cost to be balanced is the cost to the consumer, not just to the authority

• obligation for BV arrangements to have regard to equal opportunities legislation



Different….• BV arrangements and decisions

must contribute to the achievement of sustainable development

• measurement of improvement must have regard to outcomes, not just processes



Audit and other types of scrutiny

• Will continue to look for signs of Best Value • Will continue to look for many of the

characteristics described in PMP guidance - see BVTF statutory guidance

• Audit Scotland has changed audit approach



Accountability• Duty of reporting is for the local

authority, and decisions about what, where, how and when to publish are also for the authority

• Regulations - what must be put into the public domain, regardless of preference

• Guidance - things to take into account in making decisions



Enforcement and Intervention:

the same as before…• Local authority• Controller of Audit• Accounts Commission• Ministers



But different...• Grounds of enforcement by Accounts

Commission now expanded • Ministers can intervene if Accounts

Commission so recommends, but also have two direct intervention powers– Best Value failure put public interest at

risk of substantial harm– Power to Advance Well being is abused

(significant excess of power)



Best Value duties



1. Local authorities' duty to secure Best Value

1) It is the duty of a local authority to make arrangements which secure best value.

2) Best value is continuous improvement in the performance of the authority's functions.



3) In securing best value, the local authority shall maintain an appropriate balance among- a) the quality of its

performance of its functions;b) the cost to the authority of

that performance; andc) the cost to persons of any

service provided by it for them on a wholly or partly rechargeable basis.



(4) In maintaining that balance, the local authority shall have regard to-

(a) efficiency;

(b) effectiveness;

(c) economy; and

(d) the need to meet the equal opportunity requirements.



(5) The local authority shall discharge its duties under this section in a way which contributes to the achievement of sustainable development.

(6) In measuring the improvement of the performance of a local authority's functions for the purposes of this section, regard shall be had to the extent to which the outcomes of that performance have improved.



•How do we know we are doing the right things?

•How do we know we are doing things right?

•How do we plan to improve?•How do we account for our performance?



Local Government in Scotland Act 2003

AUDITof Best Value, but really of



Main Points-

• Full audit every 3 years - includes • an overview audit of the whole Comhairle • detailed audits

• Audit takes “local circumstances” into account

• No “single label” for Councils• Reports to Comhairle• Follow-up on progress every year



Key Points

• Involvement of Members is vital• The Audit will focus on where we are making progress

• Put in place an Action Plan – then take action

• Risk‑based, targeted and proportionate• Accounts Commission assume that we are already working to comply with the LGIS Act



•Specialist audit team•Links to work of inspectorates and other scrutiny bodies

•Report to Commission after every audit

Other Features


Local Government in Scotland Act - AUDITInitial meeting

Council prepares submission

Overview audit

Auditors prepare to challenge

Prepare findings and report

Council presentation

Week 1

Weeks 9 to 10

Weeks 11 to 15

Weeks 16 to 20

Weeks 2 to 7

Week 8

Selected areas for detailed

audit



•Flexible approach to format•Six weeks to prepare•Signed by Chief Executive and Convener•Not a public document, for audit only•Key element for council and audit itself

Council Submission



• Contextual Information• Performance Results• Key features of Best Value• Draft Improvement plan • Documentation• Presentation• Content of Submission

Basic Structure for Submission



• Digesting self‑assessment• High level assurance for:

•all services' performance •all BV criteria

• Risk assessment / targeted areas•Gaps & weaknesses•Areas of good practice•Areas of interest to Chief Executive•Areas of interest to Controller of Audit...

The overview audit stage



• Intensive three weeks• Selective, targeted approach• Review of documentation• Interviews ‑ including elected members, managers, and partner organisations

• Observation ‑ e.g. committee meetings

The detailed audit stage



•Draft report provided to Chief Executive•Balance ‑ strengths, weaknesses, reflect different expectation levels

•Tailored reports; no simplistic league tables• Improvement Plan•Report published•Hearings / meetings with Acc. Commission•Follow‑up audits to review progress

Report on Audit of Best Value



Andrew MackenzieHead of Strategy (Internal)

Questions?

Documents

BEST VALUE CHANGES LOCAL GOVERNMENT IN SCOTLAND ACT 2003 AUDIT