Issue - meetings

To consider a joint report of the Borough Treasurer and Head of Assets (Cheshire East) and the Director of Resources (Cheshire West and Chester) on the outturn position for shared services which includes an overview of performance for the long term shared services and detailed financial performance for shared services including those in transition.

Members considered a summary report on the outturn position for shared services, including:

?       an overview of performance for the long term shared services; and 

?       detailed financial performance for shared services including those in transition.

The report included a forward looking summary of the challenges facing the long term shared services during the current year based on the three year Service Plans (2010 to 2013) approved by the Joint Committee in October 2010.

In terms of overall performance, the report indicated that the majority of the long term shared services appeared to be delivering to plan under the sharing arrangements. Only the ICT, Libraries and Youth Offending Shared Services had demonstrated a mixed performance.

In terms of financial performance, the report indicated that, while a number of services had reported an underspend, the overall position showed an overspend for shared services, which both Councils had accommodated in their overall position. 

In preparing budgets for the current year all long term shared services had been subjected to a budget challenge process aimed at generating significant efficiencies over the next three years.  As a result, shared service managers had revisited their Service Plans to review the impact on service delivery for 2011-12. 

During 2010-11, 3 Shared Services terminated and transition logs were produced for these. There was a significant reduction in the number of shared services going forward for 2011-12 with a further 7 services terminating in April 2011, and an additional service was planned to close in September 2011.

Within Cheshire East, the 2010-11 Shared Services outturn revealed an overspend of £2.6m which was concentrated in the two main areas of Integrated Transport and ICT. The overall Shared Service outturn for Cheshire West and Chester of £569k overspend, related primarily to the ICT position which was partially offset by a number of underspends within other Shared Services. Further details were given in the report.

Overall Shared Service efficiencies are set to deliver in excess of £1.5m in 2011-12 based on the budget challenge exercise undertaken late in 2010.  However many managers had included a risk that these efficiencies might not be achieved due to a number of factors.

All long terms shared services had confirmed that business continuity plans were in place or would be before the end of 2011.

The Officers indicated that future reports would include more specific measures of performance and would address risk. 

In considering the report, Members asked that where significant variations in performance were identified, these be brought to Members’ attention at an early stage with proposed corrective measures so that action could be taken in good time. In this respect, they asked that quarterly performance management reports be submitted to the Committee.

RESOLVED

That

(1)   the Shared Services outturn performance for 2010 -11 and the impact of planned efficiency savings on delivery for 2011-12 be noted; and

(2)   quarterly performance reports be submitted to future meetings.