AGENDA ITEM 4

BOROUGH OF POOLE

CABINET

26th JANUARY 2009

ADULT LEARNING IN POOLE AND BOURNEMOUTH:

JOINT MANAGEMENT TEAM

1.0 / PURPOSE OF THE REPORT
1.1 / To advise Cabinet of the outcome of the due diligence work on the proposed merger of Poole and Bournemouth Adult Learning Services and to propose the establishment of a Joint Management Team.
2.0 / DECISIONS REQUIRED
2.1 / That Cabinet approve the establishment of a Joint Management Team for Poole and Bournemouth Adult Learning Services.
3. / BACKGROUND /INFORMATION
3.1 / A Joint Bournemouth and Poole Member Working Party explored the possibility of a joint Adult Learning Service. The Working Party considered the benefits and risks of the proposal including a governance model, financial issues and the need for consultation. Cabinet supported the recommendation of the Member Working Group on 2 December 2008 for the merger of the two services. On 16 December Council approved the merger of Poole and Bournemouth Adult Learning Services subject to further financial analysis and due diligence.
3.2 / Throughout January to April 2009 Officers worked with colleagues from financial services, ICT, legal and democratic, customer services and personnel in both authorities to analyse and develop detailed plans and costs for the effective delivery of a new joint service. A joint officer group was established which included Service Unit Heads, the Service Managers and Deputy Officers to lead the development. External advice was also received in developing an Implementation Plan and joint staffing structure.
3.3 / The timeliness of the due diligence process was disrupted by two issues; the April 09 notification of a reduction in both Poole and Bournemouth’s Learning Skills Council grant funding and the complexities of the two authorities financial and support services’ arrangements.
3.4 / Poole’s external grant allocation was reduced by £129,000, a 7% reduction for 2009/10. This reduction required detailed financial modelling and reforecasting to reduce costs and achieve a balanced position in academic and financial years. There was a need to make allowances for a number of uncertainties and risks in a service area that is heavily target driven.
3.5 / One particular area of complexity in the due diligence assessment concerned the apportionment of support service costs in both authorities and the corresponding financial contributions made by each authority. The Borough of Poole currently apportions £132,000 to Poole Adult Learning for the costs of corporate support services such as payroll and HR.
3.6 / Following discussions with the relevant Service Unit Heads, Strategic Directors and Portfolio Holders, it is proposed that the best way to secure the efficiencies and benefits being sought from closer working is to develop a jointly managed model for the two services with an Executive Steering Group.
3.7 / The Communities Overview and Scrutiny Group were updated by the Service Unit Head on this revised proposal on 17 November 2009.
4 / A JOINT MANAGEMENT TEAM
Some of the benefits of a Joint Management Team include:
4.1 / Better access to information – a joint brochure promoting courses across Poole and Bournemouth has already been produced. This demonstrates benefits for users and produces efficiency savings. A Joint Management Team will enable effective joint promotion and information about a wider range of courses for residents.
4.2 / Improved Curriculum Offer –a Joint Management Team will ensure effective co-ordination and planning of courses across both Boroughs. This will help ensure that more courses achieve minimum numbers so that fewer courses are cancelled. A strong commitment to local learning in local centres will be maintained under the new arrangements.
4.3 / Improved efficiency – the creation of a Joint Management Team will immediately reduce management costs (see 4.5) and help preserve front line service delivery. A key objective going forward is for the management team to develop further efficiencies and incrementally reduce further duplications to help preserve front line services. Efficiencies will be sought in staff arrangements, marketing and publicity, licences and awarding body fees and ICT.
4.4 / Increased capacity – at the management team level and in some other staffing areas, the creation of joint posts will enable specialised skills to be retained within the service by sharing costs across both services. One immediate outcome will include the creation of a new joint Business Enterprise Team which will be better placed to raise the skills levels of the local workforce in both Boroughs at no extra cost.
4.5 / Cost of Joint Management Team
Poole Adult Learning current management costs£217,000
Future Joint Management Team Costs £233,000
Annual management saving to Poole Adult Learning£110,000
Sum earmarked for additional appointment in Poole £40,000
Net saving for Poole Adult Learning £70,000.
4.6 / The joint managers will work flexibly in both main sites and most staff will continue to work in their current bases. No redundancies are anticipated as a result of this change. Implementation costs are still being finalised but will be limited to some additional travel and ICT access costs expected to be in the region of £5,000.
5 /
TERMS OF THE JOINT MANAGEMENT TEAM AGREEMENT
5.1 / A formal Memorandum Agreement is being finalised by the Head of Legal and Democratic Services in Poole, in consultation with his equivalent in Bournemouth. The key terms of the agreement include:
5.2 / The Joint Management Team will be employed and line managed by Poole within the Culture and Community Learning Service Unit. All other staff will continue to be employed by their current employer.
5.3 / Authority is delegated to the Joint Management Team to manage both services.
5.4 / The relevant Portfolio Holder in each authority will retain accountability for the service in their Borough. Joint decisions will be made through an Executive Steering Group.
5.5 / If necessary, the Chief Executives of both local authorities will meet jointly to resolve any disputes.
5.6 / In Poole the service will still report to the Communities Overview and Scrutiny Group (COSG) as and when required. (On 17 November 2009 COSG asked that the service make an annual presentation to enable them to monitor ongoing performance of the service).
6 / FINANCIAL IMPLICATIONS
6.1 / The service is funded externally with a contribution from the Borough of Poole referred to in 3.5. The trend in recent years is declining funding and the expectation is that this trend will continue year on year. Grant allocations will continue to be allocated and managed separately for Poole and Bournemouth. The terms of the agreement ensure two separate financial systems are maintained and ensure that Poole does not assume risks or liabilities from our partners in Bournemouth. The arrangement enables reduced management and operational costs through efficiencies and reducing duplication.
7 / LEGAL IMPLICATIONS
7.1 / A formal agreement has been prepared by Legal Services to establish the terms of the partnership agreement. Accountability for the Poole operations will remain with the Poole Service Unit Head and Portfolio Holder.
8 / SUMMARY OF HR IMPLICATIONS
8.1 / Up to two staff are expected to TUPE to Poole from Bournemouth. Through the management of vacancies, there will be no redundancies as a result of this decision. The Joint Management Team will be employed by Poole and delegated authority will be given to the relevant officers to manage Bournemouth staff.
9 / EQUALITIES AND DIVERSITY
9.1 / Adult Learning services play a key role in promoting equality of opportunity and access across all six equality strands and in tackling economic deprivation. The service was rated Good for equalities outcomes by Ofsted in the most recent inspection in 2008. Maintaining good performance and positive outcomes will remain a priority for the new jointly managed service.
9.2 / An Equalities Impact Assessment has been completed. This decision will help to maintain front line services and minimise the impact of reduced funding on the delivery of learning opportunities for a range of local residents. No negative equalities impacts are anticipated as a result of this decision.

Councillor Peter Adams, Portfolio Holder, Strengthening our Communities

Lead Officer

Kevin McErlane

Head of Culture and Community Learning

Telephone: (01202) 262400

email:

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