CLACKMANNANSHIRE COUNCIL Report to: Resources & Audit Committee Date of Meeting: 25 February 2016 Subject: Resources & Governance Finance & Performance Q3 1 October 2015 - 31 December 2015 Report by: Head of Resources & Governance 1.0 Purpose 1.1. This paper reports to Committee Resources & Governance performance for the 3rd quarter of 2015 /16. 1.2. The report highlights service activity, achievements and performance between 1 October 2015 and 31 December 2015. It also identifies future challenges, opportunities and risks. 1.3. The report includes financial performance with the aim of providing a complete overview of performance for quarter three. 2.0 Recommendations 2.1. The Committee is asked to note the report, comment on and challenge performance as appropriate. 3.0 Service Activity - key issues 3.1 Introduction 3.1.1 The Resources & Governance Services vision is to ensure that financial and human resources, IT systems, asset management and governance processes are aligned to the strategic aims of the organisation to facilitate the delivery of the Council's corporate priorities in a legally compliant, cost effective and efficient way. 3.1.2 The Resources & Governance Services mission as set out in the service business plan is "to provide high quality, professional, value added proactive advice and support to enable senior officers, managers, elected members and staff in the delivery of their strategic and operational objectives". This includes advice and support to manage resources whether they are human, technological, property based or financial. THIS PAPER RELATES TO ITEM 13 ON THE AGENDA 249
Transcript
CLACKMANNANSHIRE COUNCIL
Report to: Resources & Audit Committee
Date of Meeting: 25 February 2016
Subject: Resources & Governance Finance & Performance Q3 1 October 2015 - 31 December 2015
Report by: Head of Resources & Governance
1.0 Purpose
1.1. This paper reports to Committee Resources & Governance performance for the 3rd quarter of 2015 /16.
1.2. The report highlights service activity, achievements and performance between 1 October 2015 and 31 December 2015. It also identifies future challenges, opportunities and risks.
1.3. The report includes financial performance with the aim of providing a complete overview of performance for quarter three.
2.0 Recommendations
2.1. The Committee is asked to note the report, comment on and challenge performance as appropriate.
3.0 Service Activity - key issues
3.1 Introduction
3.1.1 The Resources & Governance Services vision is to ensure that financial and human resources, IT systems, asset management and governance processes are aligned to the strategic aims of the organisation to facilitate the delivery of the Council's corporate priorities in a legally compliant, cost effective and efficient way.
3.1.2 The Resources & Governance Services mission as set out in the service business plan is "to provide high quality, professional, value added proactive advice and support to enable senior officers, managers, elected members and staff in the delivery of their strategic and operational objectives". This includes advice and support to manage resources whether they are human, technological, property based or financial.
THIS PAPER RELATES TO ITEM 13
ON THE AGENDA
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3.2 Service Activity
3.2.1 Cross-Service
Work is progressing on the implementation of the new Financial System (Technology One) which involves staff from across R&G. Accountancy have identified key staff to work on the project full time who have been involved in the building and testing of the system and developing a new chart of accounts. HR staff have been aligning the costing structure within iTrent to the new finance system. A significant amount of IT resource has been devoted to project management and implementation which at the end of Q3 was progressing according to plan. There has also been a significant input from procurement in designing new systems for electronic purchasing and invoicing. All services have been heavily involved in MCB particularly Accountancy staff who have provided extensive support and analysis to support business modelling and business cases. Within R&G restructuring proposals are being developed.
R&G are engaged with partners in relation to Health and Social Care Integration. Meetings of the HR workgroup have been scheduled on a monthly basis for 2016. IT continues to attend Data Sharing meeting regularly with ICT technical leads and FV Data Sharing Group. Internal audit and Accountancy are also in discussion with partners in regard to their respective roles in support of the IJB.
3.2.2 Human Resources
A number of policies related to organisational change, severance and redeployment were presented to Council for approval. These policies are aimed at supporting the interim workforce strategy 2015/16. Approval was given for the organisational change procedure with amendments being proposed for severance and redeployment.
HR continue to work closely with our Trade Union colleagues on policy review and have agreed to prioritise Disciplinary, Capability, Grievance and Maximising Attendance.
Process changes continue to be implemented in relation to HR/Payroll to modernise working practices and further develop the iTrent system to enable transformational change. Work began work on developing the H&S module the Learning events and Performance Management modules and refining Management Reporting.
3.2.3 Information Technology
Major upgrades to a number of corporate and service systems have been carried out including upgrading the corporate Electronic Document Management system (IDOX). This in turn enabled the public to use the new Scottish Government E-Planning portal to submit and pay for Planning Applications electronically..
Work continues to implement the ICT Asset plan. A new virtual infrastructure was implemented which is already showing efficiencies in time taken to build
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new servers and in dynamic power management which reduces the amount of energy used by only providing server resources in response to demand.
A significant amount of work was undertaken preparing for a major upgrade of the Citrix desktop environment which will be rolled out to all Council users in Q4. This will introduce more up to date versions of Office software.
The annual IT Health Check took place. This is a large scale security check of the council’s ICT systems which is part of our annual PSN compliance regime. Overall the Health Check was favourable, showing improvement from previous years. An action plan has been developed to address risks identified in the Health Check. These risks will be resolved as part of the annual PSN submission is May.
3.2.4 Accountancy
Deloitte, the external auditors have been on site and the team are supporting them in conducting their initial planning work for the 2015/16 audit.
3.2.5 Internal Audit
Progress against plan is continuing with 74% of reviews either completed or in progress. The team is well on track to completing the plan within target.
Progress on completion of the Assurance element of the Annual Plan 2015/16, is summarised in the table below.
Status of Audits % To be Commenced 5 26%
Onsite/On going 5 26%
Draft Report Issued 3 16%
Final Report Issued 6 32%
Total 19 100%
Responsibility for investigating housing benefit fraud was transferred to the Department for Work and Pensions on 30 October 2015. One member of staff transferred at the same time. Up to this point the team had received 36 referrals for 2015/16 with over 23 investigations commenced up to the end of October. In that time investigations have identified over £31,394 of overpayments with 6 sanctions issued. 12 Live cases have been transferred to DWP.
3.2.6 Democracy Planning for the next Scottish Parliamentary Elections continued, with individual meetings with members of the Elections Operational Management Group taking place during December. The team have also been meeting or putting in plans to meet with other key partners. Preparations and plans for the 2017 Local Government Election have also started with identification of key staff to attend user testing of the system procured by the Scottish Government for electronic counting.
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The team provide advice and support to services in responding to FOIs, carry out reviews of FOIs, when requested, and respond to appeals made to the Scottish Information Commissioner. Table 1 : FOI Received in Q3 Service FOIs/EIRs
To promote the service the management and catering staff have attended several parents evenings in primary schools. Very positive feedback was received from parents and teaching staff. Lunch and breakfast numbers are showing an increase on the last quarter of 5% on lunches (589 meals per week ) and 1% on Breakfast (60 per week )
Capital Projects Housing
There were 4 Live Housing projects to report on in Q3. • Bowmar remedial works contract, a report to Council will be provided in
March. • Hallpark was completed in 2015 and the service is resolving the last of
the defects. • Fairfield School is due for completion by 15th April. • Tillicoultry Library conversion was complete in 2015 and the defects
period has now concluded
Corporate Building and Environmental Improvements.
There are five live corporate and environmental projects, • Sauchie was due for completion by December 2015 but delays in
completion of the heritage panels has meant this work will now conclude in March 2016.
• Tron Court is projected to continue through to June 2016. • Work on Marshill House commenced in December 2015 and is expected
to continue through to March 2016, at which point the Integrated Mental Health Team will vacate Carsebridge and occupy the property.
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• All survey work for the demolition of Alva pool, has been completed and tenders have been issued and returned, evaluations are underway with a site start expected in February 2016. Demolition is programmed for the end of Match 2016.
• Tenders have been issued and accepted for Class Cuisine freezer extension, with contract completion expected before the end of March 2016.
Education
There are currently four programmes in progress. • Alteration to nursery facilities to accommodate 600hrs provision;
alterations to five of the nine nurseries are now completed. The remaining 4 will be completed by April.
• Fire risk assessment works; the alteration to doors, windows and electrics are due to be complete by March 2016.
• Tullibody South; work continues to co-ordinate the activities of a number of external consultants to provide Background Technical Option Appraisals to assist Education with the preparation of information for the consultation process.
• Schools development programme; of 21 projects 17 were completed over the summer with the remainder being progressed for completion by March. Three new projects were added in the quarter, taking the total projects for 2015-16 to twenty four with six remaining live.
PPP Schools The number of Performance Failures has shown a steady decline as the Contractor becomes more pro-active. Adjudication documents were prepared and a referral issued in relation to ongoing disputes on the Payment Mechanism definitions, interpretations and applications. Subsequently the adjudication was postponed and agreement reached by all parties to attend a series of discussion workshops in an effort to reach consensus. These will continue until March 2016 by which time clarity on remaining disputed matters and a way forward should be agreed. Data Control & Information A finalised design and building warrant approval was sought and granted in Dec 2015 for alterations in Kilncraigs Reception area. Speirs Centre investigation into improved heating and glare / ventilation control has been commissioned. A structural survey for the floor of the lesser hall was undertaken and work to resolve the issues identified will be progressed in Q4. To assist with the disposition of various properties, the removal of excess redundant furniture was commissioned and completed in Dec 2015 , from St. John's PS, Greenfield House, Limetree House and Unit No 5 Bruce Street. Repairs and Property Maintenance
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Site Visit by representative of the Scottish Flood Forum to Menstrie House in December to carry out an Audit of the Flood Risk to the Property. Recommendations will be attended to once the report is made available.
Installation of Fire Alarm Log System to Kilncraigs, currently in final stages of testing. The repair to the lift in the 1904 Kilncraigs building was unsuccessful and the only solution is to completely refit the existing lift, the supply of parts was delayed over the Christmas break.
3.2.8 Health & Safety A full noise measurement and subsequent risk assessment was carried out in the IT Server Room. Detailed advice was provided to IT and Assets. A 'Permit to Work' system was also compiled in order to provide greater control over entry to the room. A detailed inspection of the raised floor was also requested from the manufacturer, the report is currently awaited. Detailed risk assessment advice was provided on pregnant workers, Returning Officer duties and Alva and Tillicoultry Glens. The HSE report is awaited for the Auger Accident investigation from 2015. A HSE visit is scheduled in Roads Contracts on 14 January 2016 following a report of a case of occupational Carpal Tunnel Syndrome. Hand Arm Vibration Syndrome risk control measures and health surveillance will be the focus on the inspection. A H&S policy on the amended Construction Design & Management (CDM) Regulations 2015 will be sent out for consultation in January 2016. The new regulations will have a significant impact on those involved in construction. Significant accidents / Accident investigations During clearance of a historical development site, a CJS squad encountered a significant 'near miss' in the form of some exposed live electrical cabling. Advice was provided to secure the site and immediately report the discovery to Scottish Power. The site was made safe. A 6 yr old child suffered a broken leg during a tubing party at Firpark ski centre. A full H&S investigation was carried out by the H&S team with a detailed report and recommendations provided.
D&E 6 6 2 Number of PT1s in each Directorate Edu* &
Social Services
220 218 173
Total number of PT1s 226 225 175
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Oct-15
Nov-15
Dec-15
Number of PT1s for staff 44 34 7
Number of PT1s for non-staff 183 191 168
Number of F2508s for staff 1 1 1
Number of F2508s for non-staff 0 1 0
Total number of F2508s 1 2 1
Note - This quarter details an increase in reported accidents from schools following a programme of work to improve reporting. (The previous quarter also covers the summer holidays so a spike in reports is always evident in Q3).
Total number of F2508s 1 2 0
3.2.9 Procurement
Contract Awards
Oct - Dec April - Dec
Low Value Awards - Below OJEU 15 42
Value £ £7,307,297 £20,925,616
OJEU Awards 2 4
Value £ £841,530 £5,264,642
4.0 Financial Performance
4.1 The undernoted table outlines the financial position as at October, comparing the projected expenditure for this period with the profiled budgeted expenditure. An analysis of variances in respect of each service area is attached in the Appendix B to this report.
Since the August outturn this cost centre has been moved out of R&G into a new service: Executive Team.
Head of R&G 97 96 -1
Accountancy 1398 1286 -112
Governance (HR, Legal, Democracy)
1740 1658 -82
IT 2282 2255 -27
Assets 18015 17393 622
Total 23532 22688 -844
4.2 Resource & Governance outturn is projecting an underspend of c£844k, an increase of £341k over the £503k projected in the August Outturn. The two main contributors to this increase being Rates £125k and Catering (School meals) £150k.
4.3 Support Services are projecting an underspend of £222k (an increase of £26k from August with projected underspend of £344k in employee costs) with Assets underspend projected at £622k (an increase of £315k from August with employee cost underspends totalling £238k).
4.4 The projected underspend of £834k is made up of employee cost underspend of £583k, Premises Related costs underspend of £296k (Electric, Gas, Water, Rates), an overspend of £157k in Third Party Payments & Supplies & Services (£95k of this relating to Centralised IT costs) with an income surplus of £122k (£109k School meals)
5.0 Progress in Delivering Planned Budget Savings in 2015/16
5.1 A detailed breakdown of savings progress as at 25 November 2015 is at Appendix C. Of the £485k the service identified £416 is still on track for delivery
6.0 Achievements 6.1 The Asset Manager, in her role as Deputy Chair of the Hub East Central
Scotland Territory Partnering Board presented a territory wide Community Benefits analysis to Hub members including representatives from the Scottish Futures Trust. At the November meeting of the Scottish Heads of Properties Service she provided an overview of Clackmannanshire Councils Corporate Landlord Model , which is currently being considered for adoption by a number of other Scottish Authorities,.
6.2 Better Eating Better Learning ( BEBL) is still very high on the agenda with the catering service involved with the children in making Sushi , Russian biscuits and Astronaut Food . An annual events calendar has been introduced with a variety of different days for the schools including Burns Day , Chinese New Year , St Andrews Day etc.
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7.0 Opportunities, Challenges and Risks
7.1 Savings in Repairs and maintenance have been achieved this year however the impact of a Wind and watertight only response is proving challenging with the request from services not recognising the constraints a policy imposes.
7.2 Work is ongoing to address the large number of Internal Audit Actions. Those that are still at Red are presented in Appendix A. A large amount of work has gone into ensuring that actions are properly captured on the Covalent system and documenting how actions are progressing.
8.0 Sustainability Implications
8.1 None
9.0 Resource Implications
9.1 Financial Details
9.2 The full financial implications of the recommendations are set out in the report. This includes a reference to full life cycle costs where appropriate. Yes
9.3 Finance have been consulted and have agreed the financial implications as set out in the report. Yes
9.4 Staffing
10.0 Exempt Reports
10.1 Is this report exempt? Yes (please detail the reasons for exemption below) No
11.0 Declarations The recommendations contained within this report support or implement our Corporate Priorities and Council Policies.
(1) Our Priorities (Please double click on the check box )
The area has a positive image and attracts people and businesses Our communities are more cohesive and inclusive People are better skilled, trained and ready for learning and employment Our communities are safer Vulnerable people and families are supported Substance misuse and its effects are reduced Health is improving and health inequalities are reducing The environment is protected and enhanced for all
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The Council is effective, efficient and recognised for excellence
(2) Council Policies (Please detail)
12.0 Equalities Impact
12.1 Have you undertaken the required equalities impact assessment to ensure that no groups are adversely affected by the recommendations? Yes No
13.0 Legality
13.1 It has been confirmed that in adopting the recommendations contained in this report, the Council is acting within its legal powers. Yes
14.0 Appendices
14.1 Please list any appendices attached to this report. If there are no appendices, please state "none".
Appendix A - Covalent performance report (A1 and A2)
Appendix B - Financial Performance report
Appendix C - Savings report
15.0 Background Papers
15.1 Have you used other documents to compile your report? (All documents must be kept available by the author for public inspection for four years from the date of meeting at which the report is considered)
Yes (please list the documents below) No Author(s)
NAME DESIGNATION TEL NO / EXTENSION
Stephen Coulter Head of Resources & Governance
01259 452022
Approved by
NAME DESIGNATION SIGNATURE
Stephen Coulter Head of Resources & Governance
Nikki Bridle Depute Chief Executive
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Resources & Governance Business Plan 2015-16 APPENDIX A1 Quarter 3 Progress Report KEY TO SYMBOLS
PIs ACTIONS RISKS
Short Trend Compares this quarter's performance with last quarter Expected Outcome
Current RatingLikelihood x Impact
(1 - 5) Status
Performance has improved Already complete Rating 16 and above
Performance has remained the same Meet target/complete within target dates Rating 10 to 15
Performance has declined Will complete, but outwith target Rating 9 and below
Overdue
No comparison available - May be new indicator or data not yet available
Fail to complete or cancelled
The likelihood of a risk occurring, and the impact if it does occur are each scored on a scale of 1 to 5, with 1 being the least likely or the least significant impact. Detailed guidance on scoring is provided in the Risk Management Policy and guidance.
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Resources and Governance Service Performance Indicators 2015-16
ACC B01 RAG Performance against phased budgeted spend - Resources and Governance
92.8% 98.3% 100.0% 100.0% 96.4%
Currently forecasting a 2-3% underspend
Stephen Coulter
GOV AUD 001 Percentage of Internal Audit plan completed 100% 100% 100% 100% 74%
74% of annual plan work has been completed by the end of quarter three which is on track to deliver completion of the plan by the end of quarter 4. 6 final and 3 draft reports have been issued with fieldwork well advanced on a further 5 audits.
Iain Burns
GOV HAS RAG Proportion of Resources & Governance Health and Safety Risk Assessments reviewed and up to date
100.0% 87.5%
One R&G Team Leader confirmed they are currently in the process of reviewing the large number of H&S risk assessments within their service area.
Sarah Robertson
ITS CUS 001 Percentage of customers satisfied with ICT services
97.0% 98.2% 94.8% 98.0% 95.7%
Performance maintained at high level. Customer feedback being monitored proactively and issues being followed up individually
John Munro
ITS ITS 002 Percentage of available hours lost on ICT systems due to unplanned incidents
0.050% 0.035% 0.060% 0.050% 0.001%
During the quarter our Citrix environment suffered zero incidents. However, an issue with our storage server (HPSAN2) had 4 incidents. IT Management have reviewed the logs to identify the root causes. These have been designed out of the system to increase availability.
RAG PPL 003 Number of Resources and Governance staff recorded as having completed a PRD
67.0% 88.4% 80.0% 95.0% 41.0%
41% of PRDs have now been completed and recorded on iTrent. Particular issues with completion have been noted in some services due to managerial turnover and the practicality of doing PRDs with technical staff. The findings from measuring PRD completion through iTrent this year will support further developments and the council wide capture of leaning and performance information in 16-17
Stephen Coulter
RAG RAG 001 Proportion of R&G formal correspondence and enquiries responded to within timescale
100.00% 86.57%
Steady improvement is taking place in R&G's responsiveness to formal enquireis
Stephen Coulter
RAG RAG 005 Percentage of Resources and Governance projects at Green
90.00% Stephen Coulter
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Resources and Governance Corporate Performance Indicators 2015-16
GOV AB1 ED1 Average FTE Days Sickness Absence (Teachers)
15.72 5.66 10.14 8 2.33
The average number of days lost due to sickness has increased from Quarter 2 to Quarter 3. There would be an expectation of an increase in this quarter given this quarter covers the first term of the academic session and also the winter period where there would be an expectation of increased sickness absence as result of minor illness including colds/flus etc.
Chris Alliston; David Leng
GOV AB1 OTR Average FTE Days Sickness Absence (Other Local Government)
21.06 7.92 12.78 3.79
The average number of days lost due to sickness has increased from Quarter 2 to Quarter 3. There would be an expectation of an increase in this quarter given it covers the autumn/winter period where there would be an expectation of increased sickness absence as result of minor illness including colds/flus etc.
Chris Alliston
GOV FOI COU Percentage of Council Freedom of Information requests dealt with within timescale
98.3% 96.0% 92.9% 100.0% 92.1%
The number of enquiries responded to within timescale has increased and we continue to work with services on the importance of responding on time.
Andy Hunter
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Resources and Governance Actions 2015-16 Covalent Code ACTION Original Due
Date Lead Progress Bar Expected Outcome Latest Note
RAG 15 001 Develop a clear workforce strategy and revise supporting employment policies as appropriate.
31-Mar-2016 Stephen Coulter Further detailed work has been taken forward on severance and
redeployment. Policy options have been discussed with elected members and an outcome from them is awaited. CMT have been invited to comment on a workforce planning tool
RAG 15 002 Review of options of PPP financing model and options for maximising use of current annual investment of £7.7m
30-Sep-2015 Stephen Coulter; Eileen Turnbull
Adjudication discussions about disputed matters have taken place with PPP suppliers and a resolution is hoped for by the end of the FY
RAG 15 003 Options appraisal to review telephony and mobile devices with a view to increased cost efficiency.
31-Oct-2015 John Allan; Stephen Coulter; John Munro
Operational improvements continue to be made reducing number of devices in use.
RAG 15 004 Undertake full options appraisal of Resources and Governance service delivery models and structure.
31-Jan-2016 Stephen Coulter Work will be ongoing as part of MCB. overall approach to re-
structuring and financial parameters are being established and consultation is taking place with TUs and CMT. A phased approach is being taken reflecting changes in working practices and the current position of different services within R&G
RAG 15 005 Review options for increasing digital transactions.
31-Mar-2016 Stephen Coulter; John Munro
MCB Change proposals developed more fully. Supporting Capital Bid developed. Range of systems due for modernisation identified
RAG 15 007 Options to be developed through consultation with Trade Unions to review and redefine the working week.
31-Dec-2015 Stephen Coulter A proposal has been put to TUs. TUs not keen on reducing
income for lower paid staff. A briefing paper has been forwarded to administration outlining options and risks for taking the initiative forward
RAG 15 008 Develop a records management plan and implement a records management policy.
31-Mar-2016 Stephen Coulter
The RMP has been agreed and we will be reviewed by Keeper in the latter half of 2016. An implementation plan is under development for roll out in 16-17
RAG 15 009 Identify and procure a new finance system and re-engineer finance business processes to support its introduction in 2016-17.
31-Mar-2016 Stephen Coulter
Substantial progress has been made working with consultants from Tech one. Some project slippage is becoming a risk and re-phasing of the implementation may need to be developed as a contingency
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Covalent Code ACTION Original Due Date Lead Progress Bar Expected
Outcome Latest Note
RAG 15 011 Improve procurement practice by identifying further development for Procurement Matters Group particularly the identification and delivery of savings and increasing use of framework agreements.
31-Dec-2015 Stephen Coulter
No legal challenges to report We continue to deliver awareness and training sessions throughout the year to further embed a council- wide approach to governance and procurement based on the procurement journey The Regulations to implement the new EU public procurement directive in Scotland were laid in the Scottish Parliament on Friday 18 December. These will take effect from 18 April 2016. A Scottish Procurement Policy Note published on 18 December summarises the changes these regulations will introduce, and sets out plans for further changes. These will have a significant impact on how we do procurement from April and will require a number of changes to our current documentation and our Contract Standing Orders etc. http://www.gov.scot/Resource/0049/00491432.pdf The Public Contracts (Scotland) Regulations 2015, which are now available online. http://www.legislation.gov.uk/ssi/2015/446/contents/made Awaiting Statutory Guidance from Scottish Government before we can proceed with the revision of Contract Standing Orders. THIS WILL BE AN ON GOING REQUIREMENT
RAG 15 012 Re-institute a project management structure for the delivery of iTrent to exploit opportunities for automation of HR processes.
30-Jun-2015 Chris Alliston; Stephen Coulter
Review of resources ongoing. Phase 1 and phase 2 of the project have been completed. Phase 1 sign off of payroll has been agreed and Phase 2 introduction of EES/MSS has been actioned. Travel and Expenses online has been developed and currently being piloted across Resources and Governance. This is set to roll out Council Wide from April 2016. E-Payslip continue to be rolled out across the Council. Development of Health and Safety is on target for 31/03/16. Development of learning events and performance management has begun with 2 days consultancy recently undertaken in relation to build requirements. Development of these modules will require liaising with OD/LD representatives. Management Information continues to be produced and additional consultancy has been on site to refine and further develop our MI output.
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Resources & Governance Risk Register 2015-16 ID & Title RAG CRR 009 Poor Information & Knowledge
Management Approach Treat Status Managed By Stephen Coulter Current Rating 20 Target Rating 12
Description Organisational information and knowledge are not effectively managed due to poor information sharing, records and absence management and succession planning, increased dependence on IT systems and unrecorded knowledge held by staff members.
Potential Effect
Increased difficulty and time to access information and loss of tacit information and knowledge when staff leave or are absent, resulting in duplication or non-completion of (possibly statutory) duties. Loss of productivity when systems do not operate effectively, causing frustration and impact on staff morale.
RAG 15 008 Develop a records management plan and implement a records management policy. People Strategy
RAG 15 009 Identify and procure a new finance system and re-engineer finance business processes to support its introduction in 2016-17.
Information & Communication Technology Strategy
Related Actions
RAG RAG 005 Deliver actions and projects required to support the outcomes of the Making Clackmannanshire Better Programme. Particular focus on Workstream 5, making the Organisation Stronger.
Internal Controls
Information Management Strategy
Latest Note Work ongoing in the areas of Freedom of Information and Data Protection, including targetted follow-up on internal audit of Information Governance, and Business Continuity Plans being revised in light of move to Kilncraigs. Likelihood of risk occurring has increased due to the contraction of the workforce and the associated loss of, sometimes extensive, service and organisational knowledge.
ID & Title RAG RAG 001 R&G has weak impact on Corporate
Governance Approach Treat Status Managed By Stephen Coulter; John Munro Current Rating 12 Target Rating 4
Description Lack of corporate compliance with policies, procedures and processes designed by R&G specialists which enable efficient business processes and good governance
Potential Effect
Council suffers reputational or financial loss and/or is unable to maximise best value or realise project benefits. Service has to change approach or objective to ensure corporate or legislative compliance. Dissatisfied customer.
RAG 15 004 Undertake full options appraisal of Resources and Governance service delivery models and structure. Governance Panel
Governance Improvement Plans Related Actions
Internal Controls
Governance & Audit Processes
Latest Note Discussion on AGS Future has taken place between governance managers and Head of R&G. WE have agreed a revised policy is required and a risk based approach to AGS developed. Given other work pressures it may not be possible to completely overhaul the system for 16-17. Increased use of technology in particular embedding iTrent and implementing TechOne for Finance should help manage may compliance issues currently being experienced across the council
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ID & Title RAG RAG 006 Staff resilience Approach Treat Status Managed By
Chris Alliston; Stephen Coulter; John Munro; Lindsay Sim; Eileen Turnbull
Current Rating 12 Target Rating 3
Description Changing job roles and uncertainty of Council's long term direction creates anxiety in staff
Potential Effect
Stress on staff members leading to absenteeism Loss of engagement of team members and reduced effort Poor quality outcomes for the Council because of weaker central support services
RAG 15 001 Develop a clear workforce strategy and revise supporting employment policies as appropriate. Staff Survey
RAG 15 007 Options to be developed through consultation with Trade Unions to review and redefine the working week.
Leadership Development Programme
Budget Strategy
Health & Safety Management System
Maximising Attendance & Employee Wellbeing Policy
Related Actions
Internal Controls
Making Clackmannanshire Better Programme
Latest Note R&G restructure has been started which will communicate future vision. R&G staff will be as unsettled as other staff in council by financial challenges and future speculation about job roles
ID & Title RAG RAG 009 R&G Service Reviews Approach Treat Status Managed By Stephen Coulter Current Rating 12 Target Rating 2
Description R&G service reviews don't deliver savings or improved quality of service
Potential Effect
R&G does not adapt to budget pressures Opportunities to capitalise on new technology are lost Job roles remain administrative/support rather than strategic and consultative
RAG 15 004 Undertake full options appraisal of Resources and Governance service delivery models and structure.
RAG 15 005 Review options for increasing digital transactions. Related Actions
RAG 15 009 Identify and procure a new finance system and re-engineer finance business processes to support its introduction in 2016-17.
Internal Controls
Latest Note Current consultation activity with CMT, TUs and elected member scrutiny should ensure that service reviews fulfil objectives
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ID & Title RAG RAG 005 Failure of IT systems Approach Treat Status Managed By Stephen Coulter; John Munro Current Rating 8 Target Rating 4
Description A significant failure of secure ICT systems that has a major detrimental impact on council operations
Potential Effect
Council cannot transact vital business. Financial transactions disrupted leading to a loss of council revenue or financial hardship to individuals Loss of confidence in the council Destruction of knowledge assets or costs to recover
RAG 15 005 Review options for increasing digital transactions. Information & Communication Technology Strategy
RAG 15 009 Identify and procure a new finance system and re-engineer finance business processes to support its introduction in 2016-17. Business Continuity Plans
Related Actions
RAG ITS 15 007 Business Continuity
Internal Controls
Operational Business Plan
Latest Note Operational improvements to Backup Systems and to server infrastructure decrease the likely impact of any outrage by improving our Business Continuity capability.
4 5 Progress of new Finance System Project July 2015
1
1 Savings and Efficiencies - Overtime
2 5 2 1
Travel and Subsistence
1 1 Treasury Management 1
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Consultancies and Agency Workers AUDIT FINDING IAF CAW 02b There is limited evidence that mini competitions are being undertaken using the various framework
suppliers available Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG CAW 02b Heads of Service to ensure compliance with the
requirements of HR Protocols, Financial Regulations and Standing Orders for the engagement of agency workers
30-Nov-2015
Progress to be discussed with HR/procurement Stephen Coulter
Income Collection & Cash Receipting
AUDIT FINDING IAF ICC 07 The following procedural Guidance to be reviewed and updated to ensure that it adequately reflects
current roles and responsibilities and is aligned to relevant Corporate Policies: - Section 11, of the Council’s 2008 Financial Regulations; - Rent arrears procedures; - Former tenant rent arrears procedures; - Recovery of Housing Benefit overpayments; - Rental Income procedural guidance.
Priority
3 Sign-off
No
Agreed Action By When Status Progress Latest Note Lead RAG ICC 07 Will be reviewed & updated 31-Oct-2015
Pending update. Lindsay Sim
269
Information Governance AUDIT FINDING IAF IGA 02 Not all Council Services have designated officers with responsibility for : - Data Protection, - FOI, -
Records Management, - Document Retention. Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG IGA 02 These roles within Council Services will be reviewed with
appropriate action taken to address gaps where identified. Resources within services will be evaluated as part of the project scope detailed in 6.1 above to progress the work required and to identify where designated posts could be created.
31-Dec-2015
Action almost complete. Stephen Coulter
AUDIT FINDING IAF IGA 03 There are still a significant number of physical files being stored in various Council buildings
including Lime Tree House and Alloa Town Hall. Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG IGA 03 Services will be reminded that the official record should now
be held on electronic medium. Consideration is being given to identifying an appropriate archive store.
31-Dec-2015
A working group has been established led by Head of R&G. Project is on tract to submit a Records management Plan. A MCB tranche 1 business case has been prepared to address the longer term issues of implementation that will arise from the completed RMP.
Stephen Coulter
AUDIT FINDING IAF IGA 04 No log or register is maintained of documents / files that are deposited or removed from storage
areas. Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG IGA 04 Logging and access arrangements will be considered as
part of the Records Management Project. 31-Dec-2015
Action almost complete. Stephen
Coulter AUDIT FINDING IAF IGA 05 Some Services have developed their own processes and guidance for the management of
documents and records within their own service. Priority 3 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG IGA 05 Locally developed processes and practices will be reviewed
as part of the Records Management Project, to assess where they could be developed and shared across the Council.
31-Dec-2015
Action almost complete. Stephen Coulter
270
PPC action plan AUDIT FINDING IAF PPC 05 Both Property Contracts and Catering are procuring stock from suppliers where there is no contract
in place. Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG PPC 05 Services will undertake procurement exercises to put
contracts in place. Where possible use of pre existing national contracts will be used.
31-Oct-2015
Pending update. Derek Barr; Diane
MacKenzie; Jeanette Pearcy
AUDIT FINDING IAF PPC 08 Purchase card documentation was not all properly scanned in to IDOX. Services do not scan in the
purchase card documents creating pressures within the Income Team. Catering, Cleaning and Property Contracts do not comply with corporate requirements in relation to storing documents.
Priority 2
Sign-offNo
Agreed Action By When Status Progress Latest Note Lead RAG PPC 08 Services need to take responsibility for ensuring that policy
and procedures are being consistently and properly applied. 31-Dec-2015
Pending update. Derek Barr
Savings and Efficiencies - Overtime AUDIT FINDING IAF SEO 04b Not all documentation used to record and approve overtime has appropriate evidence of
authorisation. Priority 3 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG SEO 04b iTrent is being developed so that authorisation will become
an electronic process so that authorisation will be built into the process and be fully auditable.
31-Oct-2015
Automation of overtime has not been reviewed at this stage. Travel and Expenses submission is being piloted in R&G with the next phase of iTrent focusing on H&S, learning events and performance management. Further developments will be planned in line with formation of HR structure and anticipated establishment of a systems team
Chris Alliston
271
Travel and Subsistence AUDIT FINDING IAF TSA 01a No Travel Policy has been developed Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG TSA 01a More detailed travel policy and procedures will be drawn up
with the aim of achieving greater value for money and more positive sustainability outcomes
31-Oct-2015
Draft has been completed. Stephen Coulter
AUDIT FINDING IAF TSA 01b Limited guidance is available on the Intranet and on claim forms however stronger guidance in
certain areas could require claimants to ensure that most efficient method of travel is utilised Priority 2 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG TSA 01b Current guidance to be reviewed to ensure it covers areas a
such as consideration of value for money 31-Oct-2015
Draft has been completed. Chris Alliston
AUDIT FINDING IAF TSA 04 Minor errors were identified in Payroll reports provided by Payroll. Standard payroll reports and
processes for their production have not been developed. Priority 3 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG TSA 04 Review of reporting requirements and current processes
with the aim of standardising payroll reporting. 31-Oct-2015
iTrent has been developed to allow submission of travel and expenses and is currently being tested. New claim sheets have been devised and rolled out by payroll to standardise submissions plus a draft policy on travel and expenses claims has been developed which will need to be consulted on
Chris Alliston
Treasury Management AUDIT FINDING IAF TMA 01 Current Treasury policies and procedures are not consolidated into a Treasury Management Manual. Priority 4 Sign-off No
Agreed Action By When Status Progress Latest Note Lead RAG TMA 01 Electronic Manual to be created and documents pulled
AUDIT FINDING IAF IGA 03 There are still a significant number of physical files being stored in various Council buildings including Lime Tree House and Alloa Town Hall. Priority 2 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG IGA 03 Services will be reminded that the official record should now be held on electronic medium. Consideration is being given to identifying an appropriate archive store.
30-Sep-2015 31-Dec-2015
A working group has been established led by Head of R&G. A Records Management Plan has been submitted to R&A for approval and initial feedback, generally positive, has been received from the Keeper's Office. R&G senior staff have met to map out next steps and engagement with wider organisation
Stephen Coulter
AUDIT FINDING IAF IGA 04 No log or register is maintained of documents / files that are deposited or removed from storage
areas. Priority 2 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG IGA 04 Logging and access arrangements will be considered as part of the Records Management Project.
31-Dec-2015 31-Dec-2015
Action is expected to complete during Q1 2016-17 Stephen Coulter
AUDIT FINDING IAF IGA 05 Some Services have developed their own processes and guidance for the management of documents
and records within their own service. Priority 3 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG IGA 05 Locally developed processes and practices will be reviewed as part of the Records Management Project, to assess where they could be developed and shared across the Council.
31-Dec-2015 31-Dec-2015
Action almost complete. Heads of Service will be asked to look at their own records and disposal and storage requirements. Work will be ongoing through Q1 16-17
Stephen Coulter
273
PPC action plan AUDIT FINDING IAF PPC 05 Both Property Contracts and Catering are procuring stock from suppliers where there is no contract in
place. Priority 2 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG PPC 05 Services will undertake procurement exercises to put contracts in place. Where possible use of pre existing national contracts will be used.
31-Oct-2015 31-Oct-2015
A number of contracts have now been put in place and the services are utilising Scotland Excel contracts to fulfil their requirements
Derek Barr; Diane
MacKenzie; Jeanette Pearcy
AUDIT FINDING IAF PPC 08 Purchase card documentation was not all properly scanned in to IDOX. Services do not scan in the
purchase card documents creating pressures within the Income Team. Catering, Cleaning and Property Contracts do not comply with corporate requirements in relation to storing documents.
Priority 2
Sign-offNo
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG PPC 08 Services need to take responsibility for ensuring that policy and procedures are being consistently and properly applied.
31-Dec-2015 31-Dec-2015
The storing of documents through IDOX has been problematic and requires a number of system set ups at various locations the introduction of the new finance system should alleviate some of these issues
Derek Barr
Savings and Efficiencies - Overtime AUDIT FINDING IAF SEO 04b Not all documentation used to record and approve overtime has appropriate evidence of authorisation. Priority 3 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG SEO 04b iTrent is being developed so that authorisation will become an electronic process so that authorisation will be built into the process and be fully auditable.
31-Jul-2015 31-Oct-2015
Automation of overtime has not been reviewed at this stage. Travel and Expenses submission is being piloted in R&G with the next phase of iTrent focusing on H&S, learning events and performance management. Further developments will be planned in line with formation of HR structure and anticipated establishment of a systems team
Chris Alliston
274
Travel and Subsistence AUDIT FINDING IAF TSA 01a No Travel Policy has been developed Priority 2 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG TSA 01a More detailed travel policy and procedures will be drawn up with the aim of achieving greater value for money and more positive sustainability outcomes
31-Oct-2015 31-Oct-2015
Draft has been completed. Working with D&E to support the increased use of pool cars. Paper has been reviewed by CMT and currently awaiting re-submission from D&E
Stephen Coulter
AUDIT FINDING IAF TSA 01b Limited guidance is available on the Intranet and on claim forms however stronger guidance in certain
areas could require claimants to ensure that most efficient method of travel is utilised Priority 2 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG TSA 01b Current guidance to be reviewed to ensure it covers areas a such as consideration of value for money
31-Oct-2015 31-Oct-2015
Draft has been completed. Chris Alliston
AUDIT FINDING IAF TSA 04 Minor errors were identified in Payroll reports provided by Payroll. Standard payroll reports and
processes for their production have not been developed. Priority 3 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG TSA 04 Review of reporting requirements and current processes with the aim of standardising payroll reporting.
31-Oct-2015 31-Oct-2015
iTrent has been developed to allow submission of travel and expenses and is currently being tested. New claim sheets have been devised and rolled out by payroll to standardise submissions plus a draft policy on travel and expenses claims has been developed which will need to be consulted on
Chris Alliston
275
Treasury Management AUDIT FINDING IAF TMA 01 Current Treasury policies and procedures are not consolidated into a Treasury Management Manual. Priority 4 Sign-off No
Agreed Action Original Due Date Due date Status Progress Latest Note Lead
RAG TMA 01 Electronic Manual to be created and documents pulled together in one place.
31-Mar-2015 31-Mar-2015
Electronic Manual is in progress. Elizabeth Hutcheon
276
Resource & Governance Services Budget v Outturn APPENDIX B APPENDIX B
Since the August outturn this cost centre has been moved out of R&G into a new service: Executive Team. 0 0 0 0 (0)
AccountancyAudit fee assumes the same amount as 14/15 - underspend on budget (16) (16) 0Projected staffing underspend has increased by c£28k since the August outturn, the main contributors to this movement being: a later commencement date for the Management Accounting Team Leader, an anticipated delay in expected appointment dates for the vacant Corporate Accounting Team Leader & Corporate Accountant posts, the allocation to the Finance Ledger Capital Project from November for 2 x Accountancy Assistants. These are in addition to the previously reported underspends arising from OLP income for 8 months, Chief Accountant post vacant for 3 months, Accountancy Assistant left mid July and vacant until Sept & other vacancies covered by agency staff.
(90) (63) (27)
Underspends in supplies and services (subscriptions / stationery / photocopying) (6) (5) (1)A projected underspend of £112k, an increase of £28k from the August outturn. This is due to additional underspends in staffing with the projected underspend now totalling £90k. The other main contributor is audit fees with the projected cost assumed to b 1,398 1,286 (112) (84) (28)
Head of Resource & Governance
Head of Resource & Governance 97 96 (1) (1) (0)
IT
Projected underspend on staffing costs have increased by £16k from the August outturn to £149k. The main contributor being a System Co-Oridinator (G8) leaving 01.12.15 with no replacement expected in 15/16. This is in addition to the previously reported underspends arising from staffing with full time budgets only working part time, long term sick leave, vacant trainee post and employee left through VS. Employee taking a career break and employee leaving (posts not being replaced). 35hrs of Business Analyists time transferred to Capital as part of new Financial Ledger system implementation & holiday buy back for 2 employees.
(149) (133) (16)
Staff Travel expenses - reduced head count (2)Supplies & services - small overspends including equipment insurance 3Underspend on GIS contract. Agreed contract included reduced costs each year of the contract. Due to end this year, looking at other way of providing the service.
(18) (18) 0
Other Income: Costs incurred through the moves to Kilncraigs. 2014-15 year end income accrued for Scott Sheridan £64.7k, pursuing of debtor will continue but it is unlikely to recover this cost (ceased trading). 65 65 (0)Other Income: Spend for Briskona project was incurred 13/14 and funding was due to offset this income. The income was never received and never expected after this time so the cost was offset with underspends in 13/14. However, Briskona now realised they had the funds remaining to fund this project and therefore sent funding to us this year. (23) (23) 0Central IT - detailed work has been done on projections, now an overspend due to support and maintenance contracts. Full year list of all contract costs can be analysed for future reductions. Telephones, Mobiles and broadband contracts are continually being monitored and reduced as much as possible. 97 97 0Staffing underspends totalling £149k plus an £18k saving on GIS contract are reduced by overspends relating to Creditor (Scott Sheridan) being pursued for £65k relating to Kilncraigs move - equipment and Central IT overspend of £97K due to support and maintenance contracts. 2,282 2,255 (27) (10) (16)
GovernanceEmployee Related Costs:Governance: Manager post vacant (51) (51) 0Legal: Solicitor vacancies x 1 filled part year the other moved back to Nov as assisting Social Work with specific case (53) (53) (0)
HR: Staff on reduced hours; seconded to Corp Parenting and Itrent Project team; mat leave cover and VS (temp contracts now extended to 31.12.15), Superannuation budget not required for 1 staff member. These underspends partly offset overpsends in Payroll
(78) (43) (35) HR cost centre now shown on its own.Projected savings reduced - Payment in Lieu of Notice £7k. Staff Training £2k
Payroll: Unbudgeted Payroll supervisor post (temp to Dec-15) & agency costs the main contributors.63 0 63 Payroll & Itrent previously shown
together
Itrent: No budget, additional staff required to integrate new system 47 66 (19)Payroll & Itrent previously shown together
Health & Safety: Vacancy management when employee left (6) (6) (0)
Resource & Governanace outturn is projecting an underspend of c£844k, an increase of £341k over the £503k projected in the August Outturn. The two main contributors to this increase being Rates £125k and Catering (School meals) £150k.
Support Services are projecting an underspend of £222k (an increase of £26k from August with projected underspend of £344k in employee costs) with Assets underspend projected at £622k (an increase of £315k from August with employee cost underspends totalling £238k).
The projected underspend of £834k is made up of employee cost underspend of £583k, Premises Related costs underspend of £296k (Electric, Gas, Water, Rates), an overspend of £157k in Third Party Payments & Supplies & Services (£95k of this relating to Centralised IT costs) with an income surplus of £122k (£109k School meals)
Job evaluation: Temp staff now due to finish end of Dec-15 (extended from Sep) (25) (30) 5 Temp staff end date extendedAdmin General: (Democracy team) pension underspend as Dana is not in the pension scheme (4) (4) 0Audit & Fraud: staff on reduced hours (7) (7) 0Holiday Buy Back Scheme (4 employees HR / Legal / Audit & Fraud) (2) (2) (0)HR: Professional Fees - Legal fees for settlement agreements for staff who left through Voluntary Severance 7 5 2 More costs coming through ledger
HR: Payments to Contractors. Overspend due to contract with Working on Wellbeing (SERCO). New agreement from 1st April 2013 with increased costs for occupational health. Employee physiotherapy referrals increases cost . Costs for CBT (cognitive behavioural therapy) are as required. Demand for this is high and costs are higher than expected and services are being discotniued as part of 16-17 efficiencies. Also overspend on Disclosure costs, due to migration of all staff to the new PVG scheme.
36 34 2 No change to projection. Need to work through projection calculations.
Procurement Barclaycard Rebate (3) (2) (1) No change to projection. Audit & Fraud income for Admin Penalties (8) (7) (1) No change to projection. Supplies and Services 1 1 0
Projected underspend of £82k, a decrease of £16k from the August outturn of £99k with the main contributors to the movement being increased agency costs (Payroll), increased Employee & training costs (HR) and increased Employee costs (Itrent). Staffing u 1,740 1,658 (82) (99) 17
Property Costs:Gas - Projections prepared in conjunction with Energy Officer & reflect aniticipated full year cost. Includes £35k provision (August £40k) for Amey energy efficiencies (PPP) based on invoices received Nov-15.
(46) (53) 7 PPP Provision
Electricity - Projections prepared in conjunction with Energy Officer & reflect aniticipated full year cost. Includes £35k provision (August £40k) for Amey energy efficiencies (PPP) based on invoices received Nov-15.
(94) (79) (15) PPP Provision, error in ABC nursery projection in August outturn, £30k should have been £3k.
Water - Projections prepared in conjunction with Energy Officer & reflect aniticipated full year cost. Provision of £11 for possible loss of 13.5% discount from Jan-16 (new contract / supplier). £24k credit due for Lornshill Academy.
(43) (35) (8)
loss of 13.5% discount, previous outtutn assumed possible from Oct (6month), updated to Jan (3 months)
Rates- 2015-16. £124k swing from the August outturn of £25k overspend. The £99k underspend due to empty relief (back dated) received for St John's PS, Claremont PS & Limetree House offset partly with overspends for Redwell PS & Kilncraigs. A potential rebate/empty relief could be received for Greenfield if fully vacated / disposed but not yet built into outturn.
(99) 25 (124) St Johns / Claremont / Limetree House
Rents paid 1 0 1Insurance - current year premiums will be less than budget, projection based on prior year cost but anticipate actual being lower. (13) (16) 3Equipment - underspend anticipated in FM Education with spend of £3k against budget of £16k. (13) (13) (0)Professional Fees: FM Education - Feesiblity Studies. Main study being Tullibiody Strategic Review being carried out by Hub East Central Scotland. Historically insufficent budget to cover costs incurred.
57 63 (6)
FM Social Policy - £50k budget savings target (Rents SS015) arising from the exits from Central Store and Carsebridge. Advised Marshill won't be ready to move into.
50 50 0
Other Council Accounts: Sauchie Nursery - tree removal. Marshill - Asset mgmt fees - reconfiguration feesibility. 5 0 5Other Income surplus of £20k relates to unbudgeted Bio Mass boiler income at Redwell PS £18.6k, £8.9k one off income from Clacks Trust for boiler installed at Clacks Town Hall & £7.8k shortfall on FIT income .
(20) (20) 0
Projected underspend has increased by £142k from the August outturn, the main contributor to this movement being rates paid. Rebates have now been received for St Johns PS, Claremont PS & Limetree House with a previously projected overspenf of £25k now a £99k underspend. Additional underspends on Gas, Electricity, Water, Insurance and Equipment Purchase are reduced by overspends in Professional Fees (feesibility studies) & non achievement of budget saving target for exit of Social Care buildings. 5,884 5,669 (215) -215 (73) (142)
Schools PPP:Currently projecting out-turn online with budget. 0Savings against the monthly budgeted PPP payments being offset by anticipated Legal Fees re adjuducation.On line with budget 7,726 7,726 0 0 0 0
Asset Management:Salary savings arising from four vacant posts, three of which are projected to be filled from Jan-16. Two temporary staff currently in place projected until contracts end in Dec & Jan. Also one off severence cost of £6.5k. If recruitment is not approved
(10) (27) 17 Acting up costs coveringsecondment to Scottish Police £11k (Offset by income). £5.2k Holiday pay & NIC paid in Sept to a July leaver (not previously paid as had been LTSick).
Income from The Scottish Government to pay for seconded post to Police Scotland (June - December) (25) 0 (25)Staff Travel expenses underspend with projected cost in line with prior year. (3) (3) (0)Supplies & Services - overspends projected in Professional Fees (no budget) and Subscriptions. Professional fees includes £5.2k GVA Grimley cost re rates appeals and rateable value reductions.
16 14 2
Third Party Payments - Projected one off cost of £10k to clear St John's PS. 10 0 10 New projected costIncome - anticipated shortfall. £21k in rents receiveable (loss of income from Forth Valley Partnership at Kilncraigs re CCTV) partly offset by £8.5k Other Income from Glenatanna for Utilities.
13 14 (1)
Other Council accounts includes a budget of £28k which was removed in 2014-15 but incorrectly reinstated in 2015-16, this relates to staff cost recharges previously charged to HRA.
28 28 0
Design Fee income shortfall currently projected at £12k, income shows year on year growth to £340k but insufficient to achieve budget (This includes £22k income for 50%/25% Recharge of emplyee to HRA).
12 29 (17) Improved design fee income projection
Underspend in payroll costs arising from staff vacancies being offset by projected shortfall in Rent and Design Fee income, projected Design Fee income has improved by £17k since the August outturn. Projected overspend would have been reduced by more than £16k but an additional £10k cost is now included to cover the anticipated cost of clearing St Johns PS.
93 134 40
40 56 (16)
Property Maintenance Management:Employee Cost & Staff Travel Costs overspend (£7.2k overspend at Kelliebank partially offset by £1.6k underspend in Property Maintenance)
6 5 1
Supplies & Services: Overspend includes a budget saving target of £18k re DE082 (review of Janitor duties to include handyperson therefore reducing PCU visits) . This appears to have been double counted with DE089 (£100k - wind & water tight repairs only)
20 21 (1)
£25k overspend arising from overspends in Overtime, staff travel and supplies and services which includes a budget saving target of £18k which will not be achieved. 365 390 25 25 26 (1)
Management Unit:A number of small underspends against budget in Supplies & Services. (4)Since the August outturn the Director cost centre has been moved out of R&G into a new service: Executive Team.A number of small underspends in Supplies & Services make up the £4k underspend. 251 247 (4) -4
(5) 1
Catering Contract:Vacancy Savings due to efficiencies (including £7k overtime & £3.5k SuperAnn). (55) (55) (0)Purchase of Equipment: underspend of £12k with spend projected at £50k in line with prior year. (12) (11) (1)Anticipated underspend on purchase of disposable containers. (8) (3) (5)Vend Fresh vending contract not renewed, no cost projected (no cost in prior year). (6) (6) 1Anticipated savings in cost of food purchases through price negotiation and flexibility to take advantage of market offers. (58) (50) (8)Previously budgeted saving in Meals on Wheels for change of weekend service not achieved (unallocated budget saving target). Had previously been raised as a budget pressure (included in 2016-17 budget pressures).
24 24 0
Subscriptions projected at £3.4k in line with prior year, insufficient budget 2 2 (0)
Third Party Payments: Payments to Contractors projected at £5k, budget only £0.5k. Costs incurred for Loomis cash uplift/delivery service for Secondary schools and Pest Controil costs at CPU. Other council Accounts projected in line with prior year, insuf
7 5 2
Small Variance in supplies & Services - improved outturn from June. (4) (11) 7Projected surplus in income. School meal income performing better than budget, outturn pojects an £80k decrease year on year but at £687k is £109k ahead of budget (Primary School Meals +£177k, but secondary meals £68k shortfall due to decreased numbers)
(150) (7) (143)
P1-P3 Free Meals Projected underspend. This will continue to be reviewed with meal volumes analysed. Per 2014-15, anticipate this saving will be taken centrally to Corporate pot. Grant Funding £535k (demand pressure).
(61) (50) (11)
The projected underspend has increased by £159k from the August outturn to £320k, the main contributor to this movement being an increase in projected school meal income. Projected underspends in employee & non employee costs remain broadly in line with those reported in the August outturn. 1,289 969 (320) -320 (161) (159)
(320)Janitors:At present an overall underspend of £22k projected in payroll costs (a reduction of £18k from August). - One vacancy, one Long Term Sick, relief budget, costs for apprentice Janitor (no budget) (21) (29) 8 Apprentice Janitor - Overtime savings (including Letting £24k) (29) (5) (24) - Absence cover costs relating to long term sickness (will continue to review on monthly basis) 26 16 10 cover - Serverance cost & Staff Travel 2Planned purchase of Equipment, no budget (partly offset by saving in corresponding line in Property Costs). 18 18 0279
Letting scheme projected surplus income (3) (25) 22
Projection broadly in line with budget with savings in staffing costs and income surplus being offset by planned equipment purchase. 400 393 (7) -7 (25) 18
Cleaning Contracts & Public ConveniencesCleaning staff payroll savings due to vacancies/ efficiences, new structure being prepared with intention to implement Nov/Dec-15. Currently projecting £48k payroll saving of which £20.5k is Superannuation budget over estimated. (46)Public Conveniences payroll underspend due to efficiences and overtime reduction. (8)Small underspends in Staff Travel expenses / supplies & services. (2)Income shortfall projected relating to Dollar Public Toilets £1.1k, Citizens Advice Bureau £0.6k, Alloa Fire Station £1.9k 4
£52k underspend maily through savings in employee related costs. Some additional underspends in supplies & services are offset with a projected shortfall in income. 1,094 1,042 (52) -52 (49) (3)
Leisure Services:Currently projecting £30k underspend at Firpark Ski Centre mainly due to 0.5fte vacancy plus surplus relief budget. This is offset with a projected overspend of £31.5k in Sports Development (Educ).
(30) (18) (12)
Gartmorn underspend due to closure. (40) (40) 0Contractual annual indexation on the operating agreement with WASP Leisure for managing the Leisure Bowl is underbudget due to budget build up on projected RPI but is actually lower.
(6) 0 (6)
Projected underspend in Christmas Lights (3) (3) 0Projected underspend in Activities & Events - delivery now passed to BID (10) (10) 0
Projected underspend due to closure of Gartmorn, underspend in Firpark staffing & handing over of activities to BID. Projected underspend has increased by £19k from August due to additional savings in employee costs and annual RPI indexation cost for WASP 795 706 (89) -89 (71) (19)
Pavillions:Projected underspend in staffing (3)Projected underpend in overtime (3)Income surplus (1)Small underspend projected relating to saving in staffing costs and a small income surplus. 28 20 (7) -7 (7) (0)
Security/Mail Room/Chauffeur:Overspend in staffing (budget shortfall & relief staff). Will be rectified in 2016-17 3Underspend in overtime (4)Budget saving target of £8k in Mailroom/Chauffeur won't be achieved 15-16. 8Overspend against budget due to £8k budget saving target (DE084) not being achieved in 2015-16. 89 96 7 7 (0) 7
Description of Saving Key Milestones /Commentary Year 1 2015-16 £
Total Saving Budget Holder/ Operational Lead Officer
Saving Achieved to Date
Projected Savings2015-16
Plan to Achieve Savings (update monthly)
Colour coded Red/Green/ Amber E Description of saving to be detailed Key dates for actions to achieve savings Budget Holder etc
3-BUAR Green Energy Efficiency Plan of action for schools will be developed with Education and wider energy efficiency programme with Comms Team.
36,000 36,000 Eileen Turnbull 36,000 36,000 Target for june to ensure all equipment is switched off for the Summer. Launch of an awareness campaign across all public buildings to be launched in August. Training for janitors and cleaners to ensure they can support staff who use each building. Raised with Alan Milliken, Education, to raise with HT at their next meeting.
25.09.15 On target to achieve savings target
26.10.15 On target t oachieve savings. Agreed with Education to launch sustainable ways of working to work with schools regarding Eco status and to launch a competition to reduce energy usage.
3-BUAR Green Insurance Fund Saving 250,000 250,000 Lindsay sim 250,000 250,000 Delivered. Fully allocated to service budgets.
25.09.15 Update: Insurance charges posted in P6.
4-MOS Green Stop Paper Transactions Based on previous calculations cost was circa £7000 a year, given P60 do still require to be provided in paperformat and that there may be an element of the workforce that require paper format as they have no access then £5000 is a reasonable saving. Pilot project for online payslip continues and survey has gone out to staff involved for feedback. Work is ongoing to scope this as part of the wider digital stratgy. The stopping of paper transactions is one of the low hanging fruit. The risk with this saving is that a system needs to be developed to capture the savings, especialy where they sit in different budgets. Finance project will contribute to this as well.
5,000 25,000 John Munro/Chris Alliston
0 5,000 Moving from paper to electronic payslips (with P60 still issued in paper format). Pilot project currently in place with a survey issued for staff involved for feedback. Work is ongoing on wider digital strategy, new finance system will contribute to this as well.PRD objective setting docuemnts are now available on iTrent. The availability of forms on iTrent will also make a contribution. Payslips are sent to individuals selected email accounts and are password protected, Payroll have issued communication to staff that with effect from 31/12/15 no further paper payslips will be issued.
J:\Monitoring Decisions\Council and Committees from May 2012\Resouces and Audit Committee\2016\1. 25 February 2016\13. Resources and Governance Finance and Performance\R&G Q3 Savings Progress Appendix C 17/02/2016281
Resource & Governance Saving Template APPENDIX C
MCB Progress Type of Saving Policy / Efficiency
Description of Saving Key Milestones /Commentary Year 1 2015-16 £
Total Saving Budget Holder/ Operational Lead Officer
Saving Achieved to Date
Projected Savings2015-16
Plan to Achieve Savings (update monthly)
4-MOS Green Reconfigure Payroll Service in line with new system
Business Analysts are undertaking review of payroll processes so we should be able to attach a cost to current process if we can quantify time and look at how we can streamline and what savings are achieved.
35,000 Chris Alliston 2016-17 target
4-MOS Green Review of Structure IT (R&G) A number of savings proposals were put forward from R&G teams assuming a de minimis position in regard to the service that could be offered. With the exception of Accountancy these savings are taken into year 2. Adminstration has asked fora more systematic review of support services through 15-16 to ensure the model fits the business need and is affordable. A new finance system and further refinements to iTrent will stremline adminstrative processes freeing up staff time and wider policy decisions needs to be considered in regard to soft FM including service standards and hours of attendance. In 15-16 it will be possible to release some staff via VS to reduce overall staff costs. A review of procurement in particular the impact on value for money achieved through its activities will be takenforward as a matter of urgency
97,000 John Munro 2016-17 target
3-BUAR Green E Building Cleaning. Increase charges to external organisations, as charge does not reflect cost to deliver
1,500 1,500 Eileen Turnbull 0 0 Limited opportunity to receive full savings.Withdraw services from external organsiations. Full cost recovery not achievable.
25.09.15 Update: Latest projections anticipate an income shortfall against budget.
4-MOS Green P Janitors increasing service functions delivered by service. Review model of delivery to include cleaning, supervision of cleaners and handyperson duties.
18,000 18,000 Eileen Turnbull 0 0 This is not CPU cost. Review of contracts to be undertaken at the same time. Saving is a reduction in call out charges linked to maintenance budget.These savings are likley to have been double counted.
25.09.15 Update: These savings are included in the £100k DE089.
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Resource & Governance Saving Template APPENDIX C
MCB Progress Type of Saving Policy / Efficiency
Description of Saving Key Milestones /Commentary Year 1 2015-16 £
Total Saving Budget Holder/ Operational Lead Officer
Saving Achieved to Date
Projected Savings2015-16
Plan to Achieve Savings (update monthly)
2-ISS Green E School Catering (Central Production Unit). Efficiency of current practice
20,000 20,000 Eileen Turnbull 20,000 20,000 Good progress so far and likley to achieve full year saving.
25.09.15 Update. On target to achieve savings
Green Mailroom and Drivers. Review current practice 8,000 8,000 Eileen Turnbull 0 0 Limited success in implementation, full saving unlikely to be achieved in 1516. Measurable cost saving would be postage if more information sent electronically and potential to have multi mail enclosures.
25.09.15 Update: This saving will not be made in 2015-16 but anticipate saving being achieved in 2016-17. In current year actual £8k budget saving is being achieved through other cost lines.
3-BUAR Green Wind & Water tight repairs only. Revenue budgets only spent of statutory and wind and water tight repairs for the next 2 years
100,000 200,000 Eileen Turnbull 58,333 100,000 Good progress in the first six months of 2015-16 and on target to deliver saving. This two year saving cannot be sustained without compromising the condition of the buildings long term.
25.09.15 Update: On target to achieve savings.
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Resource & Governance Saving Template APPENDIX C
MCB Progress Type of Saving Policy / Efficiency
Description of Saving Key Milestones /Commentary Year 1 2015-16 £
Total Saving Budget Holder/ Operational Lead Officer
Saving Achieved to Date
Projected Savings2015-16
Plan to Achieve Savings (update monthly)
2-ISS Green P Building Cleaning. Review operating model from morning to evening clean only and looking at productivity of service in each location
- The operational delivery is currently under review, the appointment of an area cleaning supervisor will enable the review of anti-social hours. Productibvity levels will then be further assessed. Area Supervisor appointed 17th August 2015, Service Review in progress.
3-BUAR Green The Council current spends around £365,000 in payment to external orgnaisations to lease their property. The council would aim to exit from these leases over the next few years to achieve revenue efficiencies
10,000 40,000 Eileen Turnbull 2,917 5,000 £365k figure includes £184k re Clackmannanshire LLP Regeneration (Kilncraigs) payable for the next 5 years.There is a programme to review all externally leased buildings used for operational purposes.
Currently reviewing Carsbridge move from October this year. Saving counted within Social Services budget as well? Works to enable this move are at the intial tender stages, potential delay until january pending outcome of the procurement process. Lease at Unit 5 Bruce Street to be terminated in April 2016
25.09.15 £10k budget reduction made, latest projections indicate a £5k overspend against revised budget.
26.10.15 Review of Meals on Wheels service impacts on Unit 7 Bruce street. Ward Street Lease extended for one year to enable Social Services review to be undertaken. Storage review outcome awaited to enable services to move storage items out of units.
50,000 50,000 Eileen Turnbull 0 0 04.08.15: FM Social Policy.£10k target Ward Street - won't exit Ward street until April-16, therefore saving will not be achived in 2015-16.£40k target Carsebridge. Notice to exit served for end Oct-15. Will start to realise savings from that point, estimate c£15k at this time. Linked to DE094
25.09.15 Update. Now anticipate zero saving in 2015-16 with savings in 2016-17. Marshill requires work completed to facilitate move out of Carsebridge. Have had to extend Carsebridge lease for six months until April 16.
Total Policy Savings - Total Efficiency Savings - Total 498,500 780,500 367,250 416,000
Year 1 Variance -82,500
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