local government efficiency review pat mcloughlin, ipso belfast 3 rd november 2010
TRANSCRIPT
Local Government Efficiency Review
Pat McLoughlin, IPSO
Belfast3rd November 2010
Terms of Reference
• To review the cost base, expenditure of and numbers employed in local authorities with a view to reporting on: – Specific recommendations to reduce costs;– The effectiveness of particular programmes;– Optimal efficiency in the way programmes
are delivered; and– Any other proposals to enhance value for
money in the delivery of services at local level.
2
Structures
• 114 units of local Government• Membership Ranges: 9 – 52• Population per elected member:
1,300 – 10,000
3
Sources of Local Authority Income
Government Grants/Subsidies
24%
Goods/Services28%
Commercial Rates29%
General Purpose Grant17%
Pension Related Deductions2%
Chart Title
4
Dependence on Government ResourcesCounty Councils
• Average 48%
• Range
5
21% Fingal75% Leitrim
Dependence on Government ResourcesCity Councils
6
Cork Dublin Galway Limerick Waterford Average 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Dependence on Government ResourcesCounty Councils Cont’d
7
Recommendations in Context
• €300m reduction over past 2 years
• €511m recommended over short to medium term
8
Staffing Levels
2000 29k2008 37k2010 32k
Pay / expenditure is 41% of expenditure
9
Impact of Moratorium
• Director 7%• Clerical / Admin 4%• Professional / Technical 3.7%• Outdoor 13%
10
Movement in PersonnelImpact of Moratorium
06/08 12/08 03/10Directors 228 234 207Admin 11,168 11,321 10,700Professional / Technical
4,316 4,370 4,155
Total 15,712 15,925 15,062
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Joint Administration UnitsPopulation Range Present Proposed
< 100k 17 1100k – 200k 13 18200k – 300k 2 3300k – 400k 1 1400k – 500k 0 0> 500k 1 1Totals: 4,239,848 34 24
12
Joint Administration Units
13
< 100k 100k – 200k
200k – 300k
300k – 400k
400k – 500k
> 500k 02468
101214161820
Present Proposed
Impact of Joint Administrative Units
Existing Number of Units 34Proposed Number of Units 24Existing Average Population
125k
Proposed Average Population
177k
14
Span of Control – Management
Director to Senior 1 – 6
Senior Management to Management
1 – 2.5
Management to Clerical Admin 1 – 2
15
Local Authority Staffing
16
Mayo 9.5
Kerry 8.7
Donegal 6.8
Cork 6.5
Galway 5.8
Staffing per 1,000 of
Population
Source: Survey of County and City Councils, 2010
17
Local Authority Staffing
Galway City 6.7
Limerick City 10
Waterford City 8.9
DLR Rathdown
6.1
South Dublin
5.6
Staffing per 1,000 of
Population
Source: Survey of County and City Councils, 2010
Local Authority Staffing Cont’d
Remaining 18 counties
Source: Survey of County and City Councils, 2010
Leitrim10.4 per 1,000
Laois6 per 1,000
Range
18
Staff Reductions / Management / Admin
• 10 County Managers• 50 Directors• 170 Corporate J.A.A.s• 50 Corporate other• 225 Middle / Senior Replacement • 62 H.R. Payroll• 15% Dublin / Cork Senior Managers
19
Staff Reductions (other)
• 180 Professional, Senior / Middle and Replacement• 250 Roads• 171 Planning
20
Shared Services Cont’d
• Very few national initiatives
• Need for a sector-wide approach
• Minister to direct if necessary
• Maximise the potential of scale
21
Shared Services Cont’d
• A uniform H.R. and payroll system
• Recruitment through P.A.S.
• Single, national ICT applications for all
• Extend model of Regional Design office
22
Shared Services Cont’d
23
Business Case
Fire Services
Homeless-ness
Building Inspection
Internal Audit
Motor Tax
eGovernment
Other
Motor Tax
• €670m collected at offices• €385m collected online• Cost of collection €38m• Off the road statements 396k p.a.• Incentivise / disincentivise and take
out costs
24
Motor Tax Cont’d
Counter
• Cork 36%
• Donegal 80%
Postal
• Donegal 4%
• Wexford 26%
Online
• Donegal 15%
• Dublin 44%
25
Motor Tax
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Volumes %
Counter 2.7 m 53%Postal 0.8 m 16%Online 1.6 m 31%
2,700,00053%
800,0
00 16%
1,600,000 31%CounterPostalOnline
Housing
Social Housing Rents • 60% - 75% on state benefits• Arrears €40m• Collect at source• Savings €25m
27
Planning
Efficiency & Cost Recovery
Full Cost recovery over 5 years
Accelerate e-planning
Business process re-engineering
Tackle variation in development contributions
28
Water
• Water conservation: 17% - 50% unaccounted
• Enhance regional office rate – River basin approach
• Emphasis on water conservation
• Economies of scale (maximise)
• Benchmark performance
29
Procurement
• Reduce reliance on consultants
• Encourage local suppliers
• Adopt a single procurement system
• More dedicated procurement specialists
• Sector approach to improve performance
30
Internal Audit
• 99 staff as at 01/09• Most have no formal
auditing qualifications• 3 councils had none• Don’t report to the
Managers
31
Internal Audit Cont’d
Time Allocation
Audit Assignment 71%Checking Receipts 13%Checking Motor Tax
7%
V. F. M. 6%Other 3%32
Audit / V.F.M.
V.F.M.
Performance Improvement
Information / Web
New Regulation / Public
Audit Plan Audit
Committee
33
Proper Skills
Shared L.A.
Director of Audit
Oireachtas Committee
Cost Recovery
• Full economic cost recovery – water, waste
• Handling fee for manual motor tax
• Increased cost of driving licenses
• Curtail exemptions of commercial rates
• Extend model of late payment penalties
34
Local Government / Wider Public Service
What we found?–Crowded pitch–Agencies not well integrated–Rate of consolidation slow–Difficulty in measuring
effectiveness
35
Local Government / Wider Public Service (Cont’d)
Recommendations– Intensify consolidation of
development bodies– Align programmes and plans– Plans to be approved by local
authority– New programmes under local
authorities– Integrate county / city enterprise
boards– Incentivise sharing of resources– Establish an innovation fund
36
Decision Making
Decision
V.F.M.
Financial Programme
Service Indicators
Benchmarking Reports
37