1

Improvement and Efficiency

Benefits Realisation

22nd March 2012

Theresa Grant

Acting Chief Executive

Trafford Council

2

Background

• New programme and gateway process approved April 2011

• Identified Target of £58-£116m efficiencies to be delivered across AGMA Authorities

• Comprehensive Spending Review-greater pressure on LA Budgets and Resources increased the need to deliver cashable savings.

• Local Authority budget reductions have impacted significantly some of the I&E projects which are now more focussed on providing a resilience resource to maintain current level of service rather than drive out further efficiencies as authorities have already withdrawn funding from their own budgets.

• Realignment of the I&E Programme to support Public Service Reform (Charlotte Clark, Business Analyst 2 days/week; Neil Shortland, Management Accountant 3 days/week; Vicky Sharrock, Programme Manager 4.5 days/week).

• Programme will help LA’s to deliver their savings targets for 2012/13

3

Progress

• AGMA playing a key role in developing mechanisms where the authorities’ savings can be delivered with less impact on services through:

– Joint procurement of goods and services– Sharing ideas and savings options that are transferable from one council to

another– Creating coalitions of the willing – either through two councils coming together

on many services or opportunistic collaboration on a service by service basis– Overseeing politically and managerially so savings are delivered in practice

• Projects at different developmental stages, working to final business case- Property and Asset management, Adult Residential Care Pricing Framework, Adults Equipment Procurement

• Move to a cluster delivery model- ICT, Corporate Support Services, Procurement and Customer projects

• Working to ensure that apportionment of savings is done in a proportionate and appropriate manner.

• Continuing to develop cluster arrangements with appropriate organizations

4

Progress

• Benefits Realisation Process established

• Each Local Authority completing Benefit Profiles for each Priority Theme

• Work ongoing with colleagues across each authority to track the benefits, identified and realised

for each workstream.

• Designed process for gathering and validating benefits data from each authority.

5

Update Of Projects- Tier 1

6

Update Of Projects- Tier 2

7

Savings Identified- Tier 1

Savings Target 2011/12

Savings Target 2012/13

Savings Target 2013/14 Total

  £'000 £'000 £'000 £'000

Procurement and Commissioning projects 5,500 8,700 10,800 25,000

LESS Projects included in the services below 907 7,624 756 9,287

Cross cutting Procurement projects 4,593 1,076 10,044 15,713

           

Tier 1  £'000 £'000 £'000 £'000

Adults Residential Care   3,100   3,100

  Community Equipment   300   300

Children's LAC Procurement   3,400   3,400

  Placements and Admissions   548   548

  School improvement   500   500

  Other Collaborative Work 55 370 400 825

ICT ICT Strategy Options   3,400   3,400

Corporate Support Services Procurement   1,000   1,000

28,786

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Savings Identified- Tier 2

Savings Target 2011/12

Savings Target 2012/13

Savings Target 2013/14 Total

Tier 2   £'000 £'000 £'000 £'000

Workforce Development AGMA Wide centre of excellence for Training 0 0 423 423

  E-Learning   427   427

  Training procurement Framework 0 190   190

Transport FMU- Mgmnt and Admin costs   456 456

  VPMM Procurement 907 140   1,047

  Home to School 125 375   500

Customer Contact Strategic Options-Shared knowledge   1,500   1,500

  Strategic Options-Shared procurement       0

Property Property and Asset Management   1,800 1,810 3,610

Income Generation Income Generation 836 470   1,306

Other collaborative work   2,423 1,564 606 4,593

14,052

Summary

Cross cutting Procurement projects 4,593 1,076 10,044 15,713

Tier 1   55 12,618 400 13,073

Tier 2   4,291 6,922 2,839 14,052

Overall Total Identified 8,939 20,616 13,283 42,838

Target savings by Project

3,400

5,273

15,713

3,4001,0001,140

2,003

1,500

3,610

400

2,075

1,500

1,306

454

60

104

Adult Services

Children's

Cross Cutting Procurement

ICT

Corporate Support Services

Workforce Development

Transport

Customer Contact

Property

Income Generation

People Services

People Services

Environmental Services

Transactional Finance

Transactional Finance

Environmental Services

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Savings Realised

• The I & E programme has delivered £12.2m in the years 2009/10 & 2010/11 from the Procurement Hub and earlier projects.

• The I & E programme is expecting to deliver a further £9.2m of savings in 2011/12.

• The following Chart and pie charts display the achieved savings by project for prior years and for the current year (see pages 12 to 13).

• The AGMA collaborative programme projects a further £20.6m of savings in 2012/13 and £12.6m of savings in 2013/14 and the chart on page 15 shows the projected distribution of these savings

• The AGMA collaborative programme has a potential optimum savings of £54.6m.

• The £54.6m needs to be shown as a %age of expenditure

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Non Financial Benefits

• Add examples

• e.g. resilience, cost avoidance (e.g. adults)

12

AGMA Realised savings to date

Realised Savings 2010/11 Realised Savings 2011/12 Total

Tier 1 £'000 £'000 £'000

Procurement & Commissioning 5,764 5,321 11,085

LESS Projects included in the services below 2,699 2,886 5,585

Cross cutting Procurement projects 3,065 2,435 5,500

       

Tier 1 £'000 £'000 £'000

Adults 616 889 1,505

Children's 1,750 1,317 3,067

ICT 291   291

Tier 2 £'000 £'000 £'000

Workforce Development     0

Transport 42 1,058 1,100

Property   0 0

Income Generation   836 836

Other Collaborative Work 0 2,746 2620

Total savings realised 5,764 9,281 14,919

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AGMA Savings Realised in 2009/10 & 2010/11 (in £’000s)

Savings Realised in 2009 & 2010 (figures in £'000s)

3,065

616

1,750

291

0

0

42

0

0

0

0

Cross cutting Procurementprojects

Adult Services

Children's

ICT

Corporate Support Services

Workforce Development

Transport

Customer Contact

Property

Income Generation

Other Collaborative Work

14

AGMA Savings realised in 2011/12 (in £’000s)

Savings realised in 2011/12 in £'000s

889

2,4352,746

836

1,058 1,317

0

00

00

Cross cutting Procurementprojects

Adult Services

Children's

ICT

Corporate Support Services

Workforce Development

Transport

Customer Contact

Property

Income Generation

Other Collaborative Work

15

Savings Target 2012/13

Savings Target

2013/14

Cross cutting Procurement 1,076 10,044

Adults 3,400 0

Children's 4,818 400

ICT 3,400 0

Corporate Support Services 1,000 0

Workforce Development 617 423

Transport 971 0

Customer Contact 1,500 0

Property 1,800 1,810

Income Generation 470 0

Other collaborative work 1,564 0

20,616 12,677

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Procurement Hub Savings realised in 2011/12

Procurement Hub Savings Savings realised in 2011/12

Adults-Community Equipment 114

Adults Domiciliary/Residential Care 813

Children's Residential Care 1175

Children's Foster Care 100

Childrens-16+ Accommodation Framework 112

Workforce Dev-Training Courses 50

VPMM-Fuel 22

VPMM-Purchase of Refuse Collection Vehicles 709

VPMM-Driver Training 32

VPMM-Vehicle Contract Hire 50

VPMM-Fleet lease extension 250

VPMM-Fleet Management software 7

Taxi Procurement 350

Mobile phones 496

Greengrocery/Frozen Foods 544

Spendpro - AGMA Councils 19

Spendpro - Rollout to sub regions 71

Street Lighting Connections 274

Temp Agency staff - Commensura contract 126

Cleaning and Janitorial Supplies 7

5321

17

18

Next Steps

• Continue to identify and track benefits and refine process based on outcomes of the consultation with the Commission regarding the re-categorisation of the current work streams within the Programme