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MINUTES OF THE SHARED SERVICES PARNTERSHIP COMMITTEE (SSPC)

TUESDAY 19th NOVEMBER 2015 10:00 – 12:30

NWSSP HQ, BOARDROOM

Present:

*VC – Denotes participation via video conference

Attendance Designation Location

Amanda Matthews (AM)

Secretariat NWSSP

Jacqui Maunder (JM) Head of Corporate

Services NWSSP

Attendance Designation Health Board/Trust

Margaret Foster (MF) Chair NWSSP

Neil Frow (NF) Managing Director NWSSP

Huw George (HG) Deputy CEO /Director of

Finance

Public Health Wales

(PHW)

Rob Williams (RW) Board Secretary

Representative Cwm Taf UHB

Nia Williams (NW) Executive Project Manager Hywel Dda LHB

Andy Butler (AB) Director of Finance NWSSP

Hazel Robinson (HR)

Director of Workforce and

OD NWSSP

Huw Thomas (HT) Finance Director,

Operational Finance

Betsi Cadwaladr

University Health Board

Alan Brace (ABR)

Deputy Chief

Executive/Director of Finance, Aneurin Bevan

UHB Member

Aneurin Bevan UHB

Steve Elliot (SE) Deputy Director of

Finance Welsh Government

Patsy Roseblade (PR) Director of Finance & ICT WAST **VC

Chris Lewis (CL) Acting Finance Director Cardiff & Vale UHB

Steve Ham Acting Chief Executive, Velindre NHS Trust

Anne Louise Ferguson Director of Legal and Risk

Services (Item 11) NWSSP

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No. Minute Action

PRELIMINARY MATTERS

WELCOME AND INTRODUCTIONS

1.

The Chair welcomed everyone to the November Shared Services Partnership Committee Meeting.

APOLOGIES FOR ABSENCE

2.

APOLOGIES & WELCOME Apologies of absence were RECEIVED from:

Eifion Williams (EW) Director of Finance, ABM UHB

Stephen Harrhy (SH)

Corporate Director / Chief Ambulance Commissioner Cwm Taf UHB/EASC

Jayne Jackson (JJ) Regional Manager UNISON

Rebecca Richards (RR)

Director of Finance, POWYS

DECLARATIONS OF INTEREST

3. No declarations of interest were received.

UNCONFIRMED MINUTES OF THE MEETING HELD ON 15th SEPTEMBER 2015

4. The minutes of the meeting held on the 15th September 2015 were AGREED as a true and accurate record of the meeting.

RW highlighted minor typo amendments on page 8 and 9 and advised that in item 19 - NPS – Legal Services Framework the

Committee ENDORSED to review the Legal Framework Contract at the next meeting rather than resolved.

AM

MATTERS ARISING

5. No matters were raised.

SERVICE REVIEWS

PLANNING AND ENGAGEMENT SESSION – HORIZON SCANNING

“INTEGRATED MEDIUM TERM PLAN (IMTP) 2016-19

6. The Planning and Engagement Session – Horizon Scanning

“Integrated Medium Term Plan (IMTP) 2016-19 RECEIVED.

Mr A Butler (AB) gave an informative presentation and workshop session on the Integrated Medium Term Plan 2016-19. The Presentation highlighted the main achievements and the good

progress made by NWSSP against the current year’s IMTP priorities. It was noted that key performance and financial targets

were being achieved; however there were a small number of areas where further progress was required. The Committee acknowledged the significant progress made to date

and recognised the ongoing challenges in managing change together with the level of collaboration needed by all partners to

ensure progress continues. The Committee provided further suggestions on how to improve engagement with the service areas and in particular end users through Partnership Forums. The

Committee were provided with detailed benchmarking in relation to

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payroll, recruitment, accounts payable and prescription pricing. This identified significant improvements in unit costs and improved efficiency since the formation of NWSSP. Whilst acknowledging this

improvement the Committee emphasised the importance of the 2016 IMTP highlighting the work being undertaken to improve

quality, assess user experience and the value being provided by NWSSP to the NHS and the wider economy.

The Committee were content that the NWSSP main vision and objectives (to become world class) within the IMTP were still

appropriate and relevant. The Committee also provided clear feedback on the proposed improvement areas to enable NWSSP to review, refresh and re-calibrate its IMTP for 2016-2018.

The presentation made reference to the recommendations of the

Commission on Public Service Governance and Delivery and the interest shown by a number of public sector bodies to access certain services provided by NWSSP. It was highlighted that

NWSSP’s main focus should continue to be to provide high quality services to the NHS. However it was noted that there were certain

services (mainly professional services) that could be provided to the wider public sector and which also, would have a beneficial

impact on NHS Wales. These opportunities were not material in the context of NWSSP’ operations. It was generally considered that such initiatives should be considered as long as there was no

negative impact on NHS Wales. It was also emphasised that the relative risks needed to be carefully considered before any such

work was undertaken.

The Committee recognised that a number of services being

undertaken within the NHS eg laundry and catering should be explored as possible future services to be provided through NWSSP.

The Director of Finance outlined the proposed timetable for agreeing the plan which also included taking part in the IMTP peer

review session with Health Boards in December 2015. It was noted that the draft IMTP would be submitted to Welsh Government by

the end of January 2016 but reviewed by the Committee at the January 2016 meeting

The Committee RESOLVED to:

NOTE the progress of the IMTP

FOR APPROVAL/ENDORSEMENT

REVIEW OF SERVICE LEVEL AGREEMENT (SLA) SCHEDULES

7. The Review of Service Level Agreement (SLA) Schedules was

RECEIVED. NF advised that a number of the schedules had been updated, and

discussed with the services. NF advised that further adjustments would be required on the Legal and Risk service schedule to take

into account any working arrangements following the introduction

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of the new National Procurement legal service framework contract which was due to commence in February 2016. RW commented that in the Overarching Service Level Agreement

section 5 – 5.1 Partnership Management and Monitoring Arrangements needed to be expanded to reflect the responsibility

of Shared Services. The Committee RESOLVED to:

NOTE the report

APPROVE the SLA Schedules

VELINDRE AUDIT COMMITTEE FOR NWSSP – ANNUAL REPORT

8. The report on the Velindre Audit Committee for NWSSP – Annual

Report was RECEIVED. AB highlighted to the Committee the roles and functions of the

Velindre Audit Committee for Shared Services and confirmed that continued progress had been made.

It was noted that the internal audit assurance ratings for over 90% of the audits undertaken were substantial or reasonable. It was also

noted that the results from the Audit Committee effectiveness survey had been very positive.

The Committee RESOLVED to:

NOTE the report.

NATIONAL HEALTH AUTHORITY INFORMATION SYSTEM (NHAIS) UPDATE

9. The report on the National Health Authority Information System

(NHAIS) Update was RECEIVED.

NF provided an updated to members on the ongoing changes taking place within NHS England in relation to Primary Care Services

previously provided by the Health and Social Care Information Centre (HSCIC). He provided a brief summary of the implications with regard to the outsourcing of the service to Capita, the reliance

NHS Wales places on the current National Health Authority Information System (NHAIS) also known as “the Exeter system”.

NF advised that the NHAIS system allows PCS to manage GP practice populations, the payments of circa £1.5B per annum to

primary care contractors and also the provision of cervical and breast screening interfaces to Public Health Wales (PHW) systems.

The Committee members discussed the risk on Health Boards and NF confirmed that regular meetings had been set up with Welsh

Government, NHS England and Shared Services where a risk log will be created and a number of key areas will be worked through

to meet the ambitious time scale of 1 April 2017. NF confirmed that the team are currently identifying what options are available for Shared Services and would report back to Committee.

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The Committee agreed that this item should be discussed at the next National Informatics Management Board (NIMB) to inform them of the progress.

The Committee RESOLVED to:

NOTE the report. AGREED to raise for discussion at the next NIMB Board

meeting IDENTIFY what options are available for Shared Services.

NHS WALES SHARED SERVICES (NWSSP) UPDATE

10. The report on the NHS Wales Shared Services (NWSSP) update was RECIEVED.

The Chair provided the Committee details of a report that was recently presented to the NHS Executive Board by the Managing

Director. The Chair highlighted an overview on the progress being made by NWSSP and considers opportunities to improve future

delivery of services. The Committee RESOLVED to:

NOTE the report.

LEGAL FRAMEWORK CONTRACT

11. The report on the Legal Framework contract was RECIEVED.

Mrs AL Ferguson (ALF) provided an informative update to the Committee on the new NPS (National Procurement Service) Legal Services Framework Contract and the key role Legal and Risk

Services has in providing a comprehensive legal advice / support service to the whole of NHS Wales.

ALF presented a comparison of costs between private commercial legal service and NWSSPs internal legal service and based on the

current framework rates Health Boards and Trusts had made comparative savings of £563k between 2013-2015 by using the in

house team. The Committee recognised the savings made by using the internal Legal Team and commented on how teams had developed through

making better use of the service.

NF reaffirmed to the Committee organisations would not be able to access the new framework until existing contractual arrangements seized on 31st January 2015.

The Committee resolved to;

Agreed that the Board Secretary Peer group would be best placed to work with NWSSP Legal Services to develop best

practice guidance on how to access the new NPS framework.

PROJECT UPDATES

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PRUDENT PROCUREMENT UPDATE

12. The report on the Prudent Procurement update was RECIEVED.

NF confirmed that the first meeting of the All Wales Medical and Consumables strategy group had been held on 2nd November in

Welsh Government and was well attended by senior clinicians from across Wales and both the Deputy Minister for Health and Social

Services and the Director General of Health and Social Services/Chief Executive, NHS Wales had address the meeting outlining their expectations and support for the initiative.

NF noted that the meeting was a positive start for the group to progress.

The Committee RESOLVED to:

NOTE the report.

GENERAL BUSINESS/DISCUSSION

CHAIRMAN REPORT

13. The Chair provided a verbal update to Committee members on the

progress of NWSSP’s work, following a request to do so from the Director General Health & Social Services.

The Chair informed the Committee that a report was recently presented to the NHS Executive Board outlining the overall

progress being made by NWSSP, the areas where support was required to improve service delivery and potential future options for further development and expansion of services. It was noted that

the focus of the report was in alignment with the recent discussion at “Team Wales” which supported the exploration of potential areas

for development. The Chair also reported that the second round of Board visits had commenced.

The Chair advised that she had been approached by a Workforce

and OD director requesting representation on the group and informed the Committee that Alan Brace would be stepping down from the Committee and Geraint Evans, Deputy Director of

Workforce & OD would be representing Aneurin Bevan at future meeting. The Chair thanked Alan for his valuable contribution to

the Committee.

The Committee RESOLVED to:

NOTE the update.

MANAGING DIRECTOR REPORT

14. Mr N Frow provided a verbal update on key issues affecting the organisation.

The Managing Director reported on a number of key areas of the Committees work including;

The activity within Procurement, Workforce & OD and

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Specialist Estates to support organisations taking forward the learning and the applicable recommendations from the Lord Carter review.

The new IBM managed Employee Single Record (ESR) Enhance Project and the discussions that had been held with

the NHS Department of Health ESR Central Team. The Committee discussed the timelines for full implementation as well as the opportunities for improvement, challenges, risks

and the Welsh priorities for various work packages. Further discussions would be needed with the Central Team

regarding the need for a bi-lingual element for Wales. The potential to link with NHS Employers to develop an All

Wales approach / programme which would help organisations

and staff better understand the recent pension changes and the significant implications of the changes which could see an

increase in the number of senior staff and clinicians’ retiring earlier due to tax implications. Committee members were supportive of an all Wales approach and a number advised

that the current briefing sessions being delivered by NWWSP’s Pensions team across Health Boards/Trust were

extremely informative and helpful for staff. The ongoing work looking at improving the creditor payment

performance. A number of local working groups had now been set up to review processes and additional resource had been taken on in the central hub in Companies House. The

approach taken with Aneurin Bevan UHB was highlighted as an example where this had worked particularly well.

Following the Committee support and endorsement for the transfer of the Surgical Material Testing Laboratory (SMTL) from ABMU who currently host the service a formal approach

had been made to ABMU to begin discussions on the transfer.

Over the past two years the Specialist Estates Services (SES) had provided a number of Health Boards with short term support when key estates personnel had left their

organisations. Given the age profile of many of the estates professionals the Specialist Estates Services had been asked

from a business continuity perspective to undertake a review to see where there may be skills gaps over the next few years so that a plan could be produced to meet any

shortfalls. The uncertainty around the Comprehensive Spending Review

(CSR) outcome and the potential impact on the non-medical Commissioning process.

The fresh produce contract from 2010 where some issues

had been identified by a recently commissioned internal audit report. Legal advice has been sought and discussions

were ongoing with the previous contract suppliers to recover any potential overspend. A number of Committee members agreed to review the outcome of the discussions with

suppliers.

The Committee RESOLVED to:

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NOTE the update

FINANCE AND PERFORMANCE REPORT

15. The report on the Finance and Performance Report was RECEIVED.

Mr A Butler (AB) presented the Finance and Performance report and updated the Committee on the current financial position together

with a summary of the latest performance indicators (KPIs).

AB informed members that the (best case) out-turn estimate for the Departmental Expenditure Limit (DEL) is expected to be within the agreed £75m for 2015/16 and therefore NWSSP would not be

expecting to invoke the risk sharing agreement.

The Committee members noted the positive news. The Committee RESOLVED to:

NOTE the report.

WELSH RISK POOL FINANCIAL POSITION

16. The report on the Welsh Risk Pool – Financial Position was RECEIVED.

Mr A Butler (AB) presented the report on the financial position and provided an update on the financial performance of the Welsh Risk

Pool and the improvement actions being proposed to strengthen related processes. The Committee were informed that three large

value claims which were expected to be settled over the next few months were now unlikely to be resolved this financial year. It was noted that the forecast outturn had been revised to £75m (best

case) and £81m worst case. A month 8 forecast outturn position of £78m had been reported to Welsh Government. It was noted that

Legal and Risk were undertaking work to identify opportunities to achieve an outturn position of £75m.

The Committee RESOLVED to:

NOTE the report.

CORPORATE RISK REGISTER

17. The report on the Corporate Risk Register was RECEIVED.

Mr A Butler (AB) provided an update to the Committee and highlighted the current two red risks on the register.

1. the ongoing issues within the Accounts Payable team and the

required improvements that needed to be made within some NHS bodies.

2. a risk associated with the outsourcing of the Exeter software

system in NHS England and the impact on the demographics and payments element of the system

It was also noted that the register had been updated to reflect a

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risk arising from a review of a national fresh produce contract that was inherited by NWSSP and operated during the period 2010-2014.

The Committee RESOLVED to:

NOTE the update.

ITEMS FOR INFORMATION

NATIONAL PROCUREMENT SERVICE UPDATE (NPS)

18. Members of the Committee RECEIVED the report. The Committee RESOLVED to:

NOTE the update report on the progress being made by the

NPS.

NWSSP ISSUES AND COMPLAINTS PROTOCOL

19. Members of the Committee RECEIVED the report.

The Committee RESOLVED to:

NOTE the content of the report.

COMMITTEE EFFECTIVENESS SURVEY

20. Members of the Committee RECEIVED the report.

The Committee RESOLVED to:

NOTE the content of the report.

OTHER MATTERS

ANY OTHER URGENT MATTERS ARISING

26. COMMITTEE EFFECTIVENESS SURVEY

JM advised members that a Committee Effectiveness Survey is going to be circulated and asked all members to complete.

FUTURE MEETINGS

Date of future meetings, 10.00-12.00, NWSSP Boardroom, Nantgarw

Tuesday 19th January 2016 Thursday 17th March 2016 Tuesday 17th May 2016

Thursday 21st July 2016 Tuesday 20th September 2016

Thursday 17th November 2016

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ASSURANCE REPORT

NHS WALES SHARED SERVICES PARTNERSHIP COMMITTEE

Reporting Committee Shared Service Partnership Committee

Chaired by Mrs Margaret Foster, Chair

Lead Executive Mr Neil Frow, Managing Director, NWSSP

Author and contact details. Jacqui Maunder, Head of Corporate Services,

Jacqueline.Maunder@wales.nhs.uk

Date of last meeting 19th January 2016

Summary of key matters including achievements and progress considered by the Committee and any related decisions made.

Development “Deep Dive” Session The “deep dive” session involved an informative presentation by the NWSSP

Director of Workforce, Education and Development Services (WEDS) which included an update on the WEDS work programme as well as outlining the key

achievements, opportunities and progress being made.

Members welcomed the opportunity to discuss in greater detail the non medical education commissioning process and the Committee noted the significant

investment being made to increase the commissioned numbers.

Integrated Medium Term Plan (IMTP) 2016-19

Members received the draft Integrated Medium Term Plan (IMTP) 2016-19, following review the Committee APPROVED the plan for the initial submission to

Welsh Government at the end of January 2016. In approving the plan members emphasised the importance of further work being undertaken over the next few

months to review additional opportunities to support Health Boards & Trusts and deliver efficiencies through increased collaborative working across Wales. The

Committee also AGREED to consider re-investing the proposed £750k NWSSP dividend as part of this process.

National Health Authority Information System (NHAIS) – “Exeter”

Primary Care System The Committee received an update report on the NHAIS transition project and

Members noted the ongoing changes taking place within NHS England with regards to the NHAIS primary care system and the associated processes for GP

medical record movements, GP patient registration, screening services data feeds

and GP/Ophthalmic payments systems. The Managing Director outlined the potential implications of this change on NHS Wales as well as the work undertaken

to date by the NHS Wales team who were developing an option appraisal to be

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considered at the March NWSSP Committee meeting. The Committee acknowledged that there were still many questions that needed to be answered,

including those surrounding the financial implications and timescales for transition to a new model, it was AGREED to review an options appraisal at the next NWSSP

Committee meeting in March 2016.

New Recruitment System Update The Committee received a report on the TRAC application management software

which was being introduced to support the NHS Jobs recruitment process and to

replace the existing Database of Recruitment Activity (DORA) system which was becoming outdated due to its limited functionality. Members noted that TRAC is

already used by NHS London organisations as a core element of the recruitment streamlining project.

The Managing Director advised that NWSSP had obtained useful feedback from a

number of customer engagement sessions. The new system would help address a number of the concerns raised by providing improved functionality, efficiency as it

linked directly into NHS Jobs, Electronic Staff Record (ESR) and the Disclosure and Barring Service (DBS), as well as increased visibility for management across the

whole recruitment process including medical, non-medical and bank recruitment.

Members noted that NWSSP had negotiated a specific deal for TRAC implementation across NHS Wales and the costs were being managed through

internal NWSSP cost savings. A number of stakeholder engagement events were

also being held across NHS Wales to raise awareness of the new system and to address any concerns that users may have. Feedback to date from system users

had been extremely positive. Contract negotiations are at an advanced stage with implementation due to begin from March 2016 with a phased roll out

commencing with Cardiff & Vale UHB.

New Legal Services Framework The Committee ENDORSED a report which set out guidance on how organisations

should access the new National Procurement Service (NPS) Legal Services Framework contract and the link with the internal NHS Wales NWSSP Legal &

Risk Services who should normally be the “first port of call” in relation to legal services. The NPS Framework came into effect at the end of 2015 but can’t be

accessed by NHS Wales bodies until February 2016 when the current NHS framework contract expires.

Chairman’s Report The Chair advised that she and the Managing Director had attended a Hywel Dda

UHB development meeting to update Board members on the IMTP progress and activities undertaken through NWSSP. Members noted that as part of the

assurance process the Chair had also been invited to attend the January All Wales Chair Group to provide an update on the work of NWSSP.

The Chair highlighted the importance of maintaining a regular dialogue with

individual Health Boards and Trusts at different levels and asked all Committee Members if NWSSP Officers could be given a slot on an upcoming Local Partnership

Meeting to obtain feedback on service provision and provide an update on NWSSP

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activity.

Managing Director’s Report Members received an update on progress in relation to the following areas;

E-learning platform – Working collaboratively with Local Authorities and

the wider public sector to provide access to the NHS Wales e learning platform and e learning content.

ESR Enhance – the development of the first phase of ESR functionality

which will be available in the summer of 2016. Accounts Payable – the development of an Accounts Payable helpdesk

and User Improvement Groups at Health Board / Trust level. GP Return to Practice Scheme – review options in partnership with the

Wales Deanery and the BMA to extend the single lead employer status to cover GP Return to Practice scheme.

Salary Sacrifice Schemes – over 750 vehicles have been allocated which equates to an annual £450k saving. Further areas were to be reviewed

for potential salary schemes. Lord Carter of Coles – update on work supporting the initial

recommendations applicable in the Welsh context.

Finance and Performance The Committee received a report from the Director of Finance & Corporate

Services summarising the latest financial position and performance indicators

(KPIs). Members noted and welcomed the planned £2m distribution to stakeholders, which was £1m above the IMTP planned distribution level. Members,

sought greater clarity on whether going forward it would deliver greater value to re-invest part of the distribution in areas such as the Project Management,

supporting the delivery of various initiatives such as the Prudent Procurement initiative. The Committee agreed to receive a further update in March as part of

the final IMTP sign off.

Welsh Risk Pool The Director of Finance & Corporate Services updated the Committee on the

current financial position with regard to the Welsh Risk Pool and the proposed actions being proposed to strengthen the related processes including learning

lessons from claims. Members noted the forecast outturn was £75m, which was now likely to be the worst case position and that there would be no requirement

for additional contribution from Health Boards under the risk sharing agreement.

Further work was ongoing to understand the final outturn position and would be reported to the Directors of Finance meeting and Welsh Government.

The Committee received and noted a number of reports for information, these

included;

o Committee’s Forward Plan of Business 2016-2017 o Accounts Payable Update

o Audit Committee Highlight Report o WfIS Programme Board Minutes

o NWSSP Response to the Green Paper “Our Health, Our Health Service”

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Key risks and issues/matters of concern and any mitigating actions

The Committee received an update on key risks and reviewed an updated Corporate Risk Register. The risks contained within the risk register included

matters discussed within the business of the meeting. In particular the risks around the ongoing issues with the outsourcing of the NHAIS Exeter system in

NHS England together with the challenges of meeting the Public Sector Payment Policy (PSPP) targets and the associated delays to invoice payments in

some areas were discussed in detail.

Matters requiring Board level consideration and/or approval

The Board is asked to NOTE the work of the SSPC and ensure where

appropriate that Officers support the related work streams.

The APPROVED minutes of the Committee meeting held on 29th November 2015 are attached for consideration of the Board

Matters referred to other Committees

N/A

Date of next meeting 17th March 2016