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Customer and Support Services Scrutiny Committee 23 rd June, 2008. Finance Division. Performance Report 2007/08. Content. About the Division Key Performance Benchmarking Data Achievements External Recognition Opportunities and Threats. About the Finance Division (1). Nos of Gross - PowerPoint PPT Presentation
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Customer and Support Services Scrutiny Committee
23rd June, 2008
Finance Division
Performance Report 2007/08
Content• About the Division• Key Performance Benchmarking Data• Achievements• External Recognition• Opportunities and Threats
About the Finance Division (1)Nos of Gross Staff Budget(FTEs) (£000s)Management 5 424Accountancy 107 3,894Audit & Risk Management 43 1,949Creditors 9 341Debtors 11 353E-Trading 6 273Payroll 28 851SAP 13 1,370Total 222 9,455
About the Finance Division (2)Some Key Statistics
Accountancy £670m revenue & £115m capital exp managedInternal Audit 258 audits, 16 external computer audit clientsCreditors 129,000 invoices paid, value £510mDebtors44,000 invoices raised, value £125mE-Trading 31,000 orders processed, value £97mPayroll 135,000 payslips processed, total pay £207m
Key Performance Benchmarking Data (1)- BVPIs/LPIs
BVPIs8 – invoices paid within 30 days
target 98%actual 99.2%
LPIs25 – sundry debt outstanding over 60 days
target - 10% on previous yearactual – headline + 4.3% - without land charges - 11.3%
Key Performance Benchmarking Data (2)- Accountancy
• CIPFA Benchmarking 2007 (2006/07 performance) - Cost per £000 gross revenue exp £4.56 = 17% below average- Qualified staff = 17% vs 30% average- CCAB trainees = 2% vs 9% average- AAT trainees = 13% vs 6% average
- CPA use of resources score = 3 vs 2.9 average
Key Performance Benchmarking Data (2)- Accountancy
Analysis of days to complete final accounts
0
50
100
150
200
250
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Financial Year
Num
ber o
f day
s
Key Performance Benchmarking Data (3)- Creditors
• CIPFA Benchmarking 2007 (2006/07 performance) - Cost per invoice £1.69 = 21% below average- Invoices paid on time = 99% vs 91% average- Best practice score 94% vs 85% average
• BVPI 8 Benchmarking 2006/07- Best performing metropolitan district- 8th best performing in the country
• GM Benchmarking 2007/08- Best performing authority
Key Performance Benchmarking Data (3)- CreditorsSalford City Council
Prompt Payment performance 2002/3 - 2007/8
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2002/3 2003/4 2004/5 2005/6 2006/7 2007/8
Key Performance Benchmarking Data (4)- Debtors
• CIPFA Benchmarking 2008 (2007/08 performance) - Cost per invoice £5.67 = 28% below average- % debts paid = 99.7% vs 91% average- Average debtor days = 46 days vs 70 days average- Write-offs = 0.1% vs 0.4% average- Best practice score 90% vs 74% average
• GM Benchmarking 2007/08- Best performing authority
Key Performance Benchmarking Data (4)- Debtors
-
1
2
3
4
5
6
£m
2002 2003 2004 2005 2006 2007 2008
Debt outstanding over 60 days
Key Performance Benchmarking Data (5)- Audit and Risk Management
• CIPFA Benchmarking 2007 (2006/07 performance)- cost per £m gross turnover £695 = 41% below average- annual chargeable days per auditor 164 days = 6% below avge- audit days per £m gross turnover = 3.54 vs 4.32 average
Key Performance Benchmarking Data (6)- Payroll
• CIPFA Benchmarking 2007 (2006/07 performance) - net cost per payslip - £4.43 vs £4.04 average- cost per employee - £49.70 vs £54.52 average- pre-input verification = 15% vs 7% average- days from cut-off to pay day = 6 days vs 9 days average- payment errors = 0.08% vs 0.21% average- staff turnover = 10% vs 5.7% average- staff sickness = 14.5 days vs 8.8% average - best practice score = 94% vs 84% average
Achievements (1)- Service Improvements
• Cross-Divisional- Achieved IIP accreditation- Reduced sickness absence from 4.3% to 2.8% (target 3%)- delivered efficiency savings of £616k
• Accountancy- Completion of 2006/07 accounts by 30th June- Lowest negotiated tax settlement on equal pay claims in GM - “Finance for Members” intranet site launched
Achievements (2)- Service Improvements
• Audit & Risk Management- Property insurance premium savings of £350k- LPSA2 target for energy reduction achieved - £100k reward grant- £250k income from audits for other authorities
• Creditors- reduced paper based invoices by 20% in 12 months and 40% over 2 years
• Debtors- new processes for allotment rents, landlord licensing and direct debit payments by schools
Achievements (3)- Service Improvements
• E-Trading- 635 purchase cards in use, 260 implemented during 2007/08
• Payroll- implemented new pension scheme changes
• SAP- new financial systems for Salix, HCP, URC- implemented major software upgrade- implemented new modules – manager self-service, e-recruitment, better reporting facilities, information exchange, HR facilities (JE, multiple employment, work scheduling)
Achievements (4)- Getting the Fundamentals Right
• Accountancy- financial advice- high profile, eg BSF, mediacity, housing stock options, waste PFI, LIFT, equal pay- routine, eg outstationed day-to-day advice, 500+ school visits- final accounts – timely & accurate closure- budget monitoring & preparation – regular reporting- bank/cash reconciliations – monthly, 100% within 3 weeks- VAT claims – monthly, 100% within 2 weeks- grant claims/statistical returns – within due dates
Achievements (5)- Getting the Fundamentals Right
• Audit & Risk Management- delivering the audit plan – Salford, GMPA, NPHL, Salix- risk management- energy efficiencies- processing insurance claims and renewing policies
• Creditors- processing payments promptly & accurately- prompt online access to scanned invoices for directorates ref- maximising electronic payment methods (80%)
Achievements (6)- Getting the Fundamentals Right
• Debtors- issuing 100% of invoices within 2 days of request- pursuing late payers
• E-Trading- processing orders promptly- facilitating greater automation of financial processes
• Payroll- accurate pay to 12,000 staff every month- prompt/accurate accounting for deductions/statutory returns/docs- telephone help desk to troubleshoot employee problems/queries
• SAP- system support, maintenance and availability
External Recognition• District Audit
- CPA use of resources – strengthened 3 star rating- triennial review of Internal Audit – meets CIPFA standards ; effective contribution to control environment ; can rely on their managed audit work; no recommendations needed- annual audit memo – financial statements comply with good practice and good understanding of technical accounting issues
• HM Revenues & Customs- VAT low risk rating – no requirement for inspection 2008
• External awards – Inst of Credit Mgt – best debt performance improvement award- Credit Today – best payment culture
Opportunities and ThreatsOpportunities
• Further efficiencies utilising SAP
• Widen external client base• AGMA shared/collaborative
services agenda
Threats• Housing stock transfer• Loss of external clients• Retention of specialist staff,
eg SAP, computer auditors
Any Questions ?