Appendix 9
Progress Against Efficiency Savings Targets
Introduction
This is the standard quarterly monitoring report on performance against the Council’s Annual Efficiency Statement targets. This half-year position will also be reported to the ODPM as part of the statutory mid-year update requirement.
The following statements show the achievements towards specific targets set out in the budget and the Annual Efficiency Statement. At this stage the Council appears to be making reasonable progress towards its efficiency targets.
A. Cashable Savings
Corporate Services
Incl. in Cash Limit / Required Saving / Forecast Saving / Saving Shortfall / AES Ref. / Actions Taken to Date(£k) / (£k) / (£k)
Corporate Services
Agency Staff / BS / 100 / 70 / 30 / CORP2 / Contractor selection is taking place. The new contract will start in November 2005.
Recruitment / BS / 50 / 20 / 30 / CORP3 / The review project will commence in early October 2005. Conclusions and recommendations from this are expected in early December 2005.
Printing / BS / 50 / 50 / 0 / CORP4 / A working group was established to look at the rationalisation of post and printers in January 2005. A set of printing principles was agreed by the group, including a freeze on the purchase of any additional printers. It is anticipated that the savings in 2005/06 will be in excess of £50k and that this figure will increase year-on-year as the number of printers declines and staff are encouraged to work to the printing principles.
Post Room / BS / 20 / 20 / 0 / CORP6 / A report containing recommendations for savings and improvements was presented to the SLT in July 2005. A working project group has been established to progress the recommendations made. A business paper for SLT is being prepared regarding how savings can be made.
220 / 160 / 60
Procurement
Single Supply Contracts / BS / 397 / 117 / 280 / P1 / The saving on library books is £25k as a result of a 3-year consortium purchasing arrangement. The £7k projected saving on DERV has been realised. The saving for paper has been exceeded and is now £35k p.a. It is anticipated that the £50k target for stationery savings will be achieved. The targets for Residential Care and Community Alarms have been duplicated in Social Services’ targets and so no savings are reported here.
397 / 117 / 280
Productive Time
Early Retirement / No / 150 / 92 / 58 / PT3 / An early retirement panel has been established which considers early retirements on the grounds of efficiency, resulting in savings to date of £92k.
150 / 92 / 58
Transactions
Single Contract / BS / 20 / 20 / 0 / T1 / Work is in progress and cash savings are being made.
20 / 20 / 0
Miscellaneous
Tripping Claims / Yes / 450 / 0 / 450 / M3 / No information available.
Sandcastle / Yes / 112 / 200 / -88 / M5 / The council took over the management of the Sandcastle centre in June 2003, saving £200k p.a. on management costs.
Extend Pay and Display / No / 87 / 0 / 87 / M6 / Awaiting a political decision.
Banners and Signs / 10 / 0 / 10 / M9 / Awaiting a legal response.
659 / 200 / 459
Total Corporate Services / 1,446 / 589 / 857
Business Services Department
Incl. in Cash Limit / Required Saving / Forecast Saving / Saving Shortfall / AES Ref. / Actions Taken to Date(£k) / (£k) / (£k)
Business Services
PC Farm / Yes / 25 / 25 / 0 / CORP5 / Completed.
Fraud Sanctions and Rewards / Yes / 20 / 20 / 0 / CORP7 / On target to achieve £20k saving.
Unified Benefits / Yes / 15 / 15 / 0 / CORP8 / Work is in progress towards this long-term project. A single assessment form is currently being piloted and will then go out for consultation. This form will gather the base information required to provide a unified service for all benefits available to residents and will help create efficiency savings.
Security / Yes / 15 / 15 / 0 / CORP9 / Work in progress.
Member Allowances / Yes / 10 / 10 / 0 / CORP10 / Completed.
External Contracts / 10 / 10 / 0 / T3 / An agreement is now in place with Fylde BC and the contract is being implemented.
VAT Expertise / Yes / 5 / 20 / -15 / T5 / The Technical Finance division has improved its expertise on VAT matters, allowing the Council to recover the VAT on incorrectly assessed transactions.
100 / 115 / -15
Procurement
Stores / Yes / 100 / 100 / 0 / P4 / Completed.
Building Cleaning / Yes / 20 / 20 / 0 / P6 / Work in progress.
Legal / Yes / 10 / 10 / 0 / P7 / Legal Services are on target to achieve the £10k savings forecast. This is being achieved by operating strict financial control over the purchase of external consultancy services.
130 / 130 / 0
Technical Services
Recycling / 126 / 126 / 0 / ES1 / The saving of £126k will be met if a dry recycling tonnage of 3,000 p.a. is achieved. The service has only just commenced, but the signs are positive with an increase in tonnage from August to September equating to a saving of £21,477. It is anticipated that this tonnage will increase to over 250 tonnes per month, so the £126k will be achieved annually.
Street Scene Inspection Regime / 50 / 50 / 0 / ES2 / Unification of the inspection regime is still ongoing and should be finalised once the Streetscene workforce is in place. The saving should be achieved through restructuring, including the re-designation of posts rather than the creation of new posts as originally intended and the move to automated inspections. The latter will realise savings in terms of the team's ability to undertake more and more varied inspections with no increase in staffing resource.
Household Waste Recycling Centre / 32 / 32 / 0 / ES3 / The saving of £32k has been met by the process of contract negotiation; a saving in the contract price was achieved at the start of the new financial year, which will meet this target by the end of the year.
Household Waste Refuse Collection Contract / 29 / 29 / 0 / ES4 / Overall, by increasing recycling there is an increased efficiency which will lead to a reduction in costs. This reduction in costs will be a direct result of the participation by residents in the service. If residents embrace the scheme and recycle, then all the recycling savings targets can be met collectively, but not necessarily as individual targets. There has been a reduction in waste produced for the initial 6 months. If this continues, then all Environmental Services targets will be achieved and exceeded. It must be noted that waste is unpredictable and if the tonnages increase, then increased costs will occur, but current performance is very satisfactory. As the new contract is still settling down, the service will be better placed to provide more accurate forecasts at the end of quarter 3.
Waste - % of Total Tonnage of Household Waste Composted / 24 / 24 / 0 / ES5 / A reduction of £4 per tonne on the contract price was achieved through tendering. If 6,000 tonnes are achieved, this saving will be met. After 6 months, 3,700 tonnes (£14,800 saving) have been achieved, so it is likely that this saving will be met.
% of Waste Recycled at Household Waste Disposal Centres / 24 / 24 / 0 / ES6 / The percentage of waste being recycled is slightly higher than it has been previously. However, due to the new kerbside recycling service, the potential to increase recycling at household waste disposal centres to the level required to meet this saving is not achievable. As the new contract is still settling down, the service will be better placed to provide more accurate forecasts at the end of quarter 3.
Increased Use of Community Transport / Yes / 26 / 0 / 26 / LT2 / Forecast saving now nil.
311 / 285 / 26
Total Business Services / 541 / 530 / 11
Children’s and Young People Department
Incl. in Cash Limit / Required Saving / Forecast Saving / Saving Shortfall / AES Ref. / Actions Taken to Date(£k) / (£k) / (£k)
Children’s Services
Out of Borough Placements (Appropriateness Review) / 50 / 50 / 0 / CS2 / On target to achieve savings.
50 / 50 / 0
Non-School Educational Services
Central Support Team Review / 50 / 50 / 0 / NSES4 / Additional savings have been identified, therefore the service is now on target to meet the £50k saving.
Transport for Children / 35 / 35 / 0 / NSES6 / On target to achieve savings.
Student Awards / 5 / 5 / 0 / NSES8 / Completed. A post has been held vacant to make this saving. Duties of this vacant post have been incorporated into those of staff in other areas of benefits and by streamlining the process for accepting claims and evidence requirements. Additionally, Customer First is now dealing with simple enquiries and form issues.
90 / 90 / 0
Total Children’s and Young People / 140 / 140 / 0
Housing and Social Services Department
Incl. in Cash Limit / Required Saving / Forecast Saving / Saving Shortfall / AES Ref. / Actions Taken to Date(£k) / (£k) / (£k)
Adult Social Services
Residential / Nursing Care / 100 / 100 / 0 / AS2 / A strict admissions policy is operated for 24-hour care and in comparison with the same period last year a reduction in client numbers can be seen. While the average cost per client is increasing as the clients with lower needs are the ones not being placed in 24-hour care, it is still anticipated that the current trend will continue and the £100k target will be achieved. These funds are contributing towards the costs of increasing the number of clients supported at home.
Training - Procurement Activity / 50 / 50 / 0 / AS3 / The Human Resources section including Training has recently undergone a restructure, following the separation of Adults' and Children's Social Services. All posts are now filled. The service is now undergoing a rigorous review of all training contracts and arrangements to maximise the current spend.
Agency Staff / Consultants / 50 / 50 / 0 / AS4 / Housing and Social Services have implemented a new procedure for the appointment of agency staff to ensure their use is minimised and the costs are met when they are used. All use of consultants has been reviewed; further work is being done to ensure more effective use of expertise within the department and the wider Council.
Electronic Opportunities / 25 / 25 / 0 / AS6 / Improvements in the processes around the use of PARIS have already identified savings that can be made. A significant amount of work is ongoing to review all systems to create further efficiencies.
225 / 225 / 0
LA Social Housing
Security Costs / 255 / 255 / 0 / LASH1 / The new security system has been installed at Queens Park and the level of security staffing has been reduced in accordance with consultation with local stakeholders.
Painting Contract / 80 / 80 / 0 / LASH2 / The new painting contract has started in 2005/06, which provides a higher quality product allowing for longer repainting cycles.
Repairs Administration / 75 / 75 / 0 / LASH3 / The developed role of the Repairs Call Unit, following work done with the Vanguard consultants, has allowed for a reduction of admin staff within the Repairs contractor, the OSD.
Legal Costs / 15 / 15 / 0 / LASH5 / In consultation with Legal Services, Landlord Services staff have this year started presenting court proceedings for possession with a resulting saving on Legal Services charges.
E-Opportunities / 10 / 10 / 0 / LASH6 / 2005/06 has seen further increases in the number of payments made through electronic methods; this is being promoted further by Landlord Services and corporate staff.
435 / 0 / 435
Supporting People
Supporting People / 410 / 410 / 0 / SP1 / Learning Disabilities Services Supporting People contracts have been reviewed and new terms agreed. The renewed temporary contracts should be in place shortly and the efficiencies achieved.
410 / 1,070 / 0
Total Housing and Social Services / 1,070 / 660 / 0
Leisure, Cultural and Community Learning Department
Incl. in Cash Limit / Required Saving / Forecast Saving / Saving Shortfall / AES Ref. / Actions Taken to Date(£k) / (£k) / (£k)
Culture and Sport
Vehicles / 10 / 0 / 10 / C&S7 / A review of efficiency will take place after the split between Streetscene and Parks due to take place in November 2005.
10 / 0 / 10
Total Leisure, Cultural and Community Learning / 10 / 0 / 10
Total Cashable Savings – All Services / 3,207 / 2,329 / 878
B. Non-Cashable Savings
Non-Cashable Savings / Action / AES Ref. / Progress Towards Savings(£k)
Corporate Services
Accommodation / 10 / More efficient use of accommodation - home-working; accommodation strategy; bodies per office - cost per person reduced - current cost to rent - £1,000 / person p.a. / CORP11 / Some Progress Made
Integration of Building Services OSD and Property Services / 40 / Integrate help desk, reduction of 2 staff. / PT4 / On Target
Transfer of Equipment and Adaptations Work / 32 / Integration of work from Social Services to Property Services - same work to be undertaken with 1 less post. / PT5 / On Target
Exchequer Services - Cedar v3.2 / 22 / Authoriser process improved by 2/3 - equivalent to 1 FTE. / PT6 / Some Progress Made
Review of Conference Room Booking Procedures / 2 / - / PT7 / Some Progress Made
Review Caretaker / Porters Service / 3 / - / PT8 / Little Progress to Date
109
Adult Social Services
Residential / Nursing Care / 50 / Reduction in permanent admission to 24 hour care; quality; cost shown against star rating re-investment in rehab and intermediate care, e.g. ARC continuing care clients. / AS2 / On Target
Training - Procurement Activity / 25 / Same spend - increased activity - development of an assessment centre - contract negotiation - equivalent 1 FTE / AS3 / Some Progress Made
Restructure / 50 / Senior Practitioner Posts - more activity, improved recruitment and retention, increased quality of provision and speed of dealing - linked to PI.
Social Care Purchasing Unit - free up social workers for other aspects of care management.
New Posts - Assistant Director LD/MH, Older Persons MH Development Manager - equivalent 2 FTE. / AS5 / Some Progress Made
Complaints / 10 / 0.5 FTE - speedier response, improved quality, reduced future investigation. / AS7 / On Target
Publications and Public Information / 10 / 0.5 FTE - increased output from existing resource. / AS8 / On Target
145
Business Services
Bring forward closure of accounts by 1 month each year / 4 / Increased productivity - reduced unit cost. / CORP12 / On Target
Cedar / 5 / Additional 6 schools signing up - avoidance of monthly reconciliation for Finance. / NSES9 / Some Progress Made
Partnering in Construction Excellence / 500 / Efficiencies generated through partnering for Central Area Coast Protection Scheme, LTP and various schools work. / P2 / On Target
Exchequer Services - % of invoices for commercial goods and services that are paid within 30 days of receipt / 8 / Efficiency gain of 3.26%. / T4 / Some Progress Made
517
Children’s Services
Family Centres / 20 / Increased court-directed supervised contact by reconfiguring current service. / CS3 / On Target
20
Non-School Educational Services
Behaviour Review / 60 / Restructure behaviour services to action at earlier stage of intervention. / NSES1 / Some Progress Made
Youth Service / 50 / Delivery of services to more young people by better use of front line staff through improved operational management and focused outcomes. / NSES2 / On Target
Centrally retained SEN resources / 50 / Central Support Team review - increased contact hours. / NSES3 / Some Progress Made
160
Total Non-Cashable Savings – All Services / 951 / 9 of 19
9 of 19
1 of 19 / On TargetSome Progress Made
Little Progress to Date