Service Plan 2015/16
Strategic Finance
1. Service Scope
What does the service unit do?
Strategic Finance is responsible for delivering a wide ranging and diverse portfolio of
professional support services which it manages alongside its strategic responsibilities for
corporate management and control of the Council’s financial resources.
The unit plays an active role in supporting the Council’s other Service units, the Strategic
Directorate, partner organisations and Council’s Members to help ensure the effective and
efficient delivery of public services.
Strategic Finance supports the Executive Director, Finance (Section 151 Officer) in their
responsibilities set out in Statute, which includes responsibility for providing assurance to
those charged with the good governance, the lawfulness, probity and propriety of all Council
expenditure/income and for protecting the fiduciary interests of both current and future
taxpayers in the Borough.
Strategic Finance are also responsible for delivering three other key areas: firstly working in
partnership with services to deliver a balanced budget, secondly providing regular and timely
monitoring of the agreed budget and finally supporting the Council’s key projects in
delivering its strategic ambition.
Key Functions;
1 Audit & Management Assurance – The Audit & Management Service brings together
Internal Audit, Risk Management, Insurance services, Corporate Fraud, Emergency
Planning, Business Continuity, Health & Safety, Fire Safety and Revenues & Benefits
Client Monitoring team. This allows the organisation to achieve an efficient and
effective approach to Audit & Management Assurance services and makes best use of
scarce resources to support the common agenda.
The Service is pivotal to the good governance of the organisation, providing
independent assurance to management, Members, the public, external auditors and
other stakeholders as to the adequacy and operation of the organisation’s control
framework, systems and procedures, risk management arrangements, value for money
and efficiency, protecting staff and the public from harm and being able to help the
community in the event of emergencies.
The team also provides ad-hoc advice on systems design, implementation and
operation, and also leads investigations in the prevention and detection of fraud and
corruption.
2 Accountancy Services – Finance is at the heart of everything the Council does by
supporting the provision and performance of all its services. Accountancy Services
support the Executive Director, Finance (Section 151 Officer) to discharge statutory
responsibilities for the financial administration and good stewardship of the Authority
under Section 151 of the Local Government Act 1972. In simple terms it provides
support across the Council to all services, providing advice, information and assistance
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on all financial matters in order for services to carry out their functions as efficiently
and effectively as possible.
Accountancy Services are responsible for delivering the statutory financial accounts of
the Council in a successful and timely manner, producing the medium term financial
plan and supporting Service Managers across the Council to deliver quality services
within the constrained financial resources available.
Accountancy Services are also responsible for providing the financial management
functions for the ‘Bournemouth Group’ Companies in order to assist the Council in
delivering its commercial ambitions.
3 Strategic Procurement and Corporate Contracts– Strategic Procurement is the process
of procuring goods, works and services from both third parties and in-house providers.
The process spans the whole life cycle from identification of needs, through to the end
of a works or services contract or the end of the useful life of an asset. It involves
options appraisal and the critical ‘make or buy’ decision.
The Strategic Procurement Team plays a crucial role in helping the organisation to
optimise its strategic procurement potential, drive change and deliver substantial
savings across all parts of the organisation ensuring the Council seeks value for money.
The Strategic Procurement team supports Service Units, helping them with innovative
procurement solutions whilst ensuring compliance with Financial Regulations, UK
Legislation and EU Procurement Law.
Strategic Procurement also includes the contract management team for the Mouchel
Partnership. The team is responsible for ensuring that the services provided by Mouchel
meet the needs of the Council and are delivered in line with agreed performance levels.
How are we organised?
High level structure chart is below: Service Director,
Strategic Finance
FTE = 2
Audit & Management
Assurance
FTEs = 35.84
Accountancy Services
FTEs = 37.42
Strategic Procurement
& Corporate Contracts
Team
FTEs = 15.73
Community Finance and Inward Investment Teams moved
to Corporate & Commercial
2
What are our key risks and assumptions?
Principal Risks & Emerging Issues:
If assessed on a Gross Risk Level in order of priority;
a. Government Grants – Further reductions in Government grants compared to
assumptions in the Medium Term Financial Plan (MTFP) reducing Council income;
b. Business Continuity Management – FT was rewording this risk following SMT session on
Risk Register
c. Changes to legislation/policy – Not accounting for the financial implications of changes
in legislation, government policy, best practice such as the Welfare Reform and
introduction of the Local Council Tax Reduction Scheme and Universal Credit and any
reduction in income as a result of changes to fees and charges within the Council’s
overall financial strategy;
d. Savings & Efficiencies – Failure to identify where savings and efficiencies are not being
achieved and reviewing the impact on the MTFP.
e. Delivery Partners – Ability to adapt to meet changing demand and deliver service as
required.
If assessed on a Net Risk level in order of priority:
a. Savings & Efficiencies – Failure to identify where savings and efficiencies are not
being achieved and reviewing the impact on the MTFP
b. Business Continuity Management – FT was rewording this risk following SMT session
on Risk Register
c. Failure to protect staff and service users from injury & harm - Health & Safety
including Fire Safety
d. Changes to legislation/policy – Not accounting for the financial implications of changes
in legislation, government policy, best practice such as the Welfare Reform and
introduction of the Local Council Tax reduction Scheme and Universal Credit and any
reduction in income as a result of changes to fees and charges within the Council’s
overall financial strategy;
e. Government Grants – Further reductions in Government grants compared to
assumptions in the Medium Term Financial Plan (MTFP) reducing Council income;
Key Assumptions:
a. There are no unknown changes in legislation which would significantly affect the
business provided.
b. That service delivery has taken account of the requirements of known changes to
legislation e.g. changes to OJEU legislation comes into effect from June 2014, however
the impact is not anticipated to be until 2015/16.
c. That Strategic Finance in its current form will continue and there will be no significant
changes to the way services are delivered, albeit striving for continuous improvement.
What were our key achievements last year?
1 The successful completion and approval of the 2014/15 statutory accounts obtaining an
unqualified audit opinion and achievement of a balanced budget for 2015/16, subject
to Full Council approval in February 2015.
3
2 Successful implementation of the Financial Management System (FMS) Oracle including
the role out of the business partner model.
3 Full integration of the Health & Safety, Fire Safety and Partnership Contract
Management teams into Strategic Finance.
4 Successful continued delivery of a risk based Internal Audit Plan for 2014/15.
5 The on-going development of a comprehensive Transformation, Efficiency & Change
Programme (the TEC) led by the Executive Director (Finance) started during 2012/13
and continues in consultation with other Officers and directed by the Transformation
Board. The TEC creates a clear focus for management action to ensure the delivery of
targeted savings and service improvements through a series of cross-cutting reviews,
necessary infrastructure work and completion of all Core Service Transformation
projects. All works and savings targets currently scheduled within the new TEC at this
time have been approved for inclusion by the Transformation Board. Strategic Finance
provides support to the TEC programme in order to ensure that individual projects are
based on robust business cases, are implemented in a timely and efficient manner and
that the anticipated benefits are monitored with responsible officers held accountable
for results.
6 The Council has a medium term financial plan (MTFP); this is reviewed annually and
updated. This plan pulls together the whole of the Council’s revenue and capital aims
and ambitions and formulates a strategic capital programme balancing capital project
expenditure with available funds over the medium to long term as well as showing the
available funds to deliver front line services.
7 Risk and Audit Software, external Insurance web pages.
8 Mouchel Partnership – the service planning and performance management cycle has
been strengthened, contract documentation has been reviewed and updated to take
account of the Council’s evolving requirements and efficiencies/cost avoidance of circa
£100k identified.
Customer and stakeholder analysis
Principal Customer and Stakeholder Groups:
•
Council Members
•
Service Users including other Service Units and Departments of the Council
•
The Council’s Corporate Management Team
•
Strategic Finance Team Members
•
Service Equality Champions
•
Charity Commission
•
Council Tax and Business Rate Payers
•
External Auditors
•
External Inspectors and the Local Government Ombudsman
•
External Partners
•
External Suppliers and Customers
•
Professional Bodies and Government Departments (Dept of Transport, Dept of
Education, Homes & Communities Agency, HMRC, DEFRA, Environment Agency)
4
•
Regulators, eg Financial Conduct Authority, PRA
Satisfaction Surveys and Engagement with Principal Customer and Stakeholder Groups
1 Engagement with Members and Service Units on the Audit Plan and other assurance
work which is approved at Audit & Governance Committee.
2 Engagement with appropriate Officers in the formulation of the Council’s Risk
Management Strategy.
3 Engagement with Service Units, Members and partner organisations such as the Local
Resilience Forum and the Flood Advisory Group to further develop the Business
Continuity and Emergency Planning arrangements of the Council.
4 Analysis of the outcome of the satisfaction surveys for the teams within Strategic
Finance.
5 Proactive meetings with Service Directors for their feedback on the support they
receive from Accountancy Services to include business partnering arrangements.
6 On-going consultation with Strategic Procurement customers resulting in continuing
improvement.
7 On-going consultation with both internal and external customers of services provided
by Mouchel.
Equality and Diversity
The Council is committed to equality and diversity. It is important that each service unit
produces an Equality Action Plan. Our action plan is available here:
Equality Action Plan
Strategic Finance directly supports the achievement of several of the Councils seven equality
objectives as set out in Equality for All. Within the Key Activities for the Service in 2015/16
links to the Council’s Equality objectives have been identified.
Examples include:
Objective 4 – Responsiveness/Customer Care
Action – Ensure that translator facilities are available during interviews with customers
Where services within Strategic Finance have a direct interface with customers it is essential
that all customers can be properly engaged in the process so that the customer fully
understands the purpose of the interaction.
Action – Emergency Plans are reviewed to ensure that they take into account E&D issues and
that plans are in place to access the required range of services should they have to be called
upon in an emergency. This is on-going work within the Service Unit and will be progressed
further during 2015/16.
Objective 5 – A Skilled and Committed Workforce
Action – Staff are enabled to take part in Staff Network Groups. As recently as March 2015
the Director of Strategic Finance re-iterated that all members of the Service Unit are able to
join any of the Staff Network Groups with his support.
Employee Engagement
In October 2013 Bournemouth Borough Council ran its third Employee Engagement Survey with
feedback being asked on items such as:5
•
•
•
•
What’s it like to work for Bournemouth Borough Council?
How satisfied are you with us as an employer?
How motivated do you feel; and
What are the things that you are unhappy about or would like to change?
The management team considered the results and a number of workshops took place to
address the key priorities indentified as requiring improvement. Taking into consideration the
outputs from these focus group meetings and in collaboration with our HR Business Partner a
clear action plan was developed to ensure issues raised are addressed. Our action plan is
available here:
Employee Engagement Action Plan
Appraisal Conversations
The Appraisal Conversation Policy sets out that Annual Appraisal Conversations will take place
within a three month window defined by Service Directors. Interim reviews take place six
months later. Strategic Finance will be undertaking annual Appraisal Conversations between
July and September.
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2. What are our key activities in 2015/16?
What are the core service activities we deliver?
Table A
Key activity/action
To ensure the partner delivers an effective
and efficient Revenue & Benefits service to
the prescribed standard
Council priority
outcome / objective
/ driver
EC3
Delivery of a risk based Audit plan for
2015/16 and future years
EC3
Timely and accurate service unit monthly
monitoring of the budget including forecast
outturn and subject to regular approval
EC3
To detect Corporate Fraud across the
organisation and to ensure that positive
action is taken to address it
EC3
Associated
performance measure
To achieve the
Council’s Revenue &
Benefits approved
performance targets
(Quality of service and
appropriate service
delivery)
Delivery of the agreed
audit plan to the
standard required
within budget and
timescale
Monthly budget
monitoring is accurate
and completed within
the Democratic
timetable
Top quartile
performance
(Benchmarked) against
our Peer group.
Generation of
additional income,
savings and/or over
7
2015/16
Performance
target
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Achieved
within agreed
timetable
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Performance
manager
Feriser
Tasdelen
Feriser
Tasdelen
Feriser
Tasdelen
Feriser
Tasdelen
Other key
service
dependencies
Key activity/action
Council priority
outcome / objective
/ driver
Associated
performance measure
recovery
Submitted and agreed
within timescale
without amendment or
penalty
To ensure all Grant claims are duly
authorised and submitted accurately and
within the deadline set by the relevant body
EC3
To ensure the Council has appropriate
arrangements in place to address Corporate
Business continuity Issues
EC3
Robust plans regularly
reviewed and positive
feedback in event of
Business Continuity
issue
To ensure the Council has appropriate
arrangements in place to address Emergency
Planning Issues
EC3
Robust plans regularly
reviewed and positive
feedback in event of
Emergency Planning
issue
To support Service Units, helping them with
innovative procurement solutions whilst
ensuring compliance with Financial
Regulations, UK Legislation and EU
Procurement Law.
EC3
Embedding of the new P2P system and
Electronic Tendering ensuring compliance
with the Council’s Financial regulations and
EC3
A tender process is
undertaken and
achieved within
approved budget
levels and agreed
Procurement
timetable
The aim is to achieve
100% of all
Procurement tenders
8
2015/16
Performance
target
Performance
manager
Other key
service
dependencies
Grants
submitted and
accepted
without
amendment by
deadline
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Achieve
project
timelines and
external
deadlines
Feriser
Tasdelen
Other service
units
responsible
for grant
receipts and
certification
Ongoing
Jeremy
Richardson
Feriser
Tasdelen
Feriser
Tasdelen
Jeremy
Richardson
Key activity/action
EU Legislation
Council priority
outcome / objective
/ driver
Associated
performance measure
and orders for goods &
services that are
within scope and meet
the Council’s financial
regulations within the
next 24 months.
Positive feedback
from customers using
the systems.
Accounts closed within
timescale and subject
to unqualified
external audit opinion
Approved medium
term financial plan
and balanced annual
budget
The annual accounts closure within
legislative timescales and in accordance
with proper accounting practices
EC3
To deliver a medium term financial plan and
balanced annual budget
EC3
On-going delivery of Council’s Risk
Management Plan
EC3
Manage risk
effectively
All risks are identified
and managed
effectively
Insurance risks are managed effectively an
in line with the performance standards set
for the insurance team.
EC3
Manage risk
effectively
No additional financial
resources required to
meet Insurance
liabilities
9
2015/16
Performance
target
Performance
manager
Unqualified
audit opinion
Robin
Ingleton
Meeting
deadlines
within the
Council’s
democratic
process.
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Suite of PI’s in
place and
being
monitored to
demonstrate
Robin
Ingleton
Feriser
Tasdelen
Feriser
Tasdelen
Other key
service
dependencies
Key activity/action
Council priority
outcome / objective
/ driver
Health & Safety risks are managed
effectively and in line with the performance
standards set for the team to ensure that
Council employees and those who could be
affected by its undertakings are protected
appropriately.
EC3
Manage risk
effectively
Fire Safety risks are managed effectively
and in line with the performance standards
set for the team to ensure that Council
employees and those who could be affected
by its undertakings are protected
appropriately.
EC3
Manage risk
effectively
To improve contract performance and value
for money through effective performance
management, ensuring that challenging
performance targets are agreed with and
delivered by Mouchel.
EC5
Associated
performance measure
Improved contract
performance and
value for money.
Evidence that
performance has
improved in line with
contractual
requirements and/or
steps taken to address
under performance.
10
2015/16
Performance
target
achievement
of target
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
Suite of PI’s in
place and
being
monitored to
demonstrate
achievement
of target
All activities
delivered
within
specified
timeframes.
March 2016
Performance
manager
Other key
service
dependencies
Feriser
Tasdelen
Feriser
Tasdelen
Sarah Good
To improve
contract
performance
and value for
money
through
effective
performance
management,
ensuring that
challenging
performance
targets are
agreed with
and delivered
Key activity/action
Council priority
outcome / objective
/ driver
Associated
performance measure
2015/16
Performance
target
Performance
manager
Other key
service
dependencies
by Mouchel.
What new projects, activities and service improvements will we undertake in 2015/16?
Table B
Council priority
outcome / objective
/ driver
EC3
Associated
performance
measure
Successful
implementation
against project plan
Train core groups/team in the use of the
Councils new Financial Management system
and electronic procurement systems.
EC3
Train and update core groups/team in
following changes to EU Procurement Law,
Financial Regulations and UK Legislation.
EC3
Successful
implementation
against project plan
and delivery of
contracts against
threshold value
To track and record
all changes to
Financial Regulations
in line with EU Rules
modernisation by the
required timelines
issued by central
government
FM delivery model
reviewed and
Key activity/action
Pro-active management of the Financial
Management system including procure to
pay for the Council
Develop FM operating model and client
EC5
management capacity to remove single point
11
2015/16
Performance
Performance
manager
target
Achieve project Robin
plan, meeting
Ingleton
individual
milestones
within the
plan.
On-going
Jeremy
Richardson
Changes have
Jeremy
been created in Richardson
line with
government
implementation
timetable
March 2016
Sarah Good
Other key
service
dependencies
Key activity/action
of failure to:Build in sustainability and resilience –
succession planning;
Streamline processes and make partnership
working more efficient.
Review value for money and value add
aspects of the Mouchel Partnership
Agreement to ensure that the contract is
delivering value for money and that
potential benefits are maximised.
Council priority
outcome / objective
/ driver
Associated
performance
measure
proposals made for
future operation.
2015/16
Performance
target
EC5
Value for money and
March 2016
added value delivered
Performance
manager
Other key
service
dependencies
Sarah Good
NB: Strategic Finance are obligated to provide statutory services but will remain responsive and reactive to the Corporate requirements
of the Council
New activities in 2016/17 and 2017/18
1. Commercialisation of Strategic Finance Services – e.g the provision of FMS hosting, Internal Audit, and Procurement Services to external
parties.
2. Electronic Payment Agenda - Small Business, Enterprise & Employment Bill & The Public Contracts Regulations 2015 (Date to be
confirmed) – Payment to be made no later than 30 days and evidence that all public contracts are verified and authorised in a timely
fashion and that undue delay in doing so is not to be regarded as sufficient for failing to treat an invoice as valid or undisputed. At
least once a year we the contracting authority shall publish on the internet statistics showing the preceding 12 months: template
guidance to be issued and will be including the number of invoices paid in 30 days, total amount of liability paid (i.e. interest).
12
What services/activities will we be stopping?
Activity that will be stopped during 2015/16
Reason for stopping activity
Revenue & Benefits fraud investigations to be undertaken by
Department of Work & Pensions
Activities likely to stop in 2016/17 and 2017/18
Looking ahead, briefly consider any activities that are likely to cease, or have to be undertaken in a different way, in 2016/2017 and
2017/2018.
None
Fees and Charges Proposals 2015/16
What changes will the Service be making to its fees and charges structure for 2015/16. Explain why fees are changing if the change is
different to an inflationary increase (this includes explaining why no fee increase will be applied in 2015/16
Description of Fees/Charges
Proposed change from 2014/15 to
2015/16 either a % or £ variation
No fees and charges identified for 15/16
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Reasons for applying non-inflationary
changes – including freezing charges
3. Resourcing Statement
Hard Assets Usage (Indicative) – Strategic Finance
Planned disposals:
ICT Server equipment/FMS discussion with ICT re changes to Mouchel
Contract
New acquisitions:
Oracle Fusion upgrade (Cloud)
£’000
TBC
£’000
750
NB – need to be consistent with capital/revenue treatment –
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Financial Resources – Strategic Finance
Revised
2015/16
Expenditure description
2014/15
£’000
£’000
Direct salary costs
3,673
3,668
Other employee costs
1,068
1,038
Premises costs
1,770
1,271
14
11
14,792
14,411
9,767
9,767
84,159
84,159
115,243
114,325
Fees, charges and rents
(2,351)
(2,593)
Grants and contributions
(85,746)
(85,626)
Internal recharges – income
(19,649)
(19,649)
(48)
(48)
(107,794)
(107,916)
7,449
6,409
Transportation costs
Supplies and services
Internal recharges – expenditure
Other direct costs
Service expenditure
Other income
Service income
Total net budget
2016/17
£’000
2017/18
£’000
Explanation of year on year variances
2014/15 figures have been provided for your service unit by Strategic Finance. Final figures
will be updated after the 2015/16 budget and MTFP is agreed in February 2015.
Explanations of variations
Health & Safety, Contract Management and the budget for maintaining the Council’s property
have moved from Corporate & Commercial into Strategic Finance. The 2014/15 budgets have
been revised to allow comparison.
Premises costs – this budget is used to maintain Council property and has been reduced by
£500k.
Supplies and services – the decrease mainly relates reductions in the risk budget of £200k,
£35k saving on District Audit Fees and £100k savings across the Service Unit.
Fees, charges & rents – based on improvements to reclaiming overpaid benefit the income
target for overpayments has been increased.
Grants & Contributions – The reduction in budget reflects similar reduction levels in
Government Grant.
15
16
Grade description
Staffing Resources – Strategic Finance
2014/15
No. of
FTEs
employees
2015/16
No. of
FTEs
employees
Service Directors
1
1
1
1
Heads of Service / Service Managers
3
3
2
2
29
29
25
26
Managers (grades 11 – 13)
Operational (grades 8 – 10)
20.22
21 27.52
25
Admin/Service (grades 5 – 7)
31.18
34 29.93
36
5.54
Admin/Service (below grade 5)
Total
89.94
Recorded sickness rate
(latest rolling 12 months as at 30th September 2014)
4.13
6
5.54
6
94 90.99
96
Includes
CFI
95.41
% of available staffing resource
Explanation of year on year variances
Please transpose 2014/15 figures from your Final 2014/15 Service Plan. Final figures for
2015/16 will be updated after the 2015/16 budget and MTFP is agreed in February 2015.
Following the restructure of Strategic Services additional staff has transferred into Strategic
Finance including Health & Safety, Fire Safety and Partnership Contract management.
Some posts are charged to projects.
Staff sickness in Strategic Finance remains very low, Heads of Service continually monitor
sickness levels and the reasons for officers being sick to see if the Council can offer any
assistance, changes or other help.
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Savings and Efficiencies – Strategic Finance
Already
2015/16
achieved
£’000
£’000
District Auditor Fees
2016/17
2017/18
£’000
£’000
35
Director Strategic Finance
275
0
Reduction in specific government grant
45
Audit & Management Assurance
66
Improved performance on reclaiming
tenant overpayments
350
Risk management funding
212
Hard FM budget
500
Partnership contract
650
Reduce prudential borrowing repayment
provision
34
200
300
In Year Total
925
1,708
34
Cumulative Total
925
2,633
2,667
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Reserve description
Service Unit Reserves – Strategic Finance
Opening
Proposed
balance
transfer
Purpose
in/transfer
out
£’000
£’000
To be finalised after the
2015/16 budget and MTFP
is agreed in February
2015.
Estimated
closing
balance
£’000
Total value of reserves
Service plan sign off
This service plan has been agreed for operation from 1 April 2015 by:
Portfolio Holder: Councillor John Beesley
Date: 10.04.15
Acting Executive Director (Finance): Ian Milner
Date: 09.04.15
Service Director:
Date: 09.04.15
Robin Ingleton
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