Audit Commission Presentation

CAA and Procurement

IHT Procurement Board 30th April 2008 Andy Walford, Service Head Environment

Audit Commission Presentation

My brief for today…

• Talk about Comprehensive Area Assessment and how work on Environmental Services procurement fits in • Talk about any studies we have done on Local Authority procurement and what they do to achieve efficiencies • 20 mins to do this….

Audit Commission Presentation

Comprehensive Area Assessment

• Replaces CPA • A very different framework

Audit Commission Presentation

Comprehensive Area Assessment

The new joint inspectorate assessment framework for local services from 2009 CAA CAA CAA CAA CAA is about places and people will give people a snapshot of life in their local area each year will be a catalyst for further improvement in quality of life and local services will provide an independent view of whether people are getting value for money from their local services will be a mechanism for coordinating and rationalising inspection

Audit Commission Presentation

What is CAA? – key components

• • • •

National indicator set areas and public bodies Joint risk assessment areas Use of resources – councils, fire & rescue authorities, police authorities, primary care trusts Direction of travel – councils (a joint inspectorate judgement), fire & rescue authorities

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For areas

1. Annual area risk assessment (“prospects for the area and the quality of life for local people”) and 2. Analysis of performance against the 198 national indicators undertaken by inspectorates jointly.

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Timetable

Feb 2008 Feb 2008 Apr 2008 Jun 2008 Summer 2008 Summer 2008 Late 2008 / early 2009 Jan/Feb 2009 Oct/Nov 2009 CPA results for 2007 published First joint CAA consultation closes AC CAA Leads appointed New-style LAAs agreed Further joint consultation on CAA published Second round of action learning CAA framework published Final set of CPA results First round of CAA reporting

Audit Commission Presentation

Use of Resources Judgement

• The Auditors conclusion on the delivery of Value of Money by the authority as a whole • Consistent methodology across local government, health, fire and police sectors – (but the emphasis and scale of the factors naturally varies between sectors) • Often the province of the Director of Finance……..

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Use of Resources

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Main themes

(from consultation autumn 2007)

• • • • • •

Managing money

1.1 Financial health. 1.2 Planning for finances to deliver strategic priorities 1.3 Value for money in the delivery of services. 1.4 Financial monitoring and forecasting 1.5 Financial reporting • • • • • •

Managing the business

2.1 Leadership and partnerships 2.2 Performance management 2.3 Commissioning & procurement 2.4 Risk management & internal control 2.5 Ethical behaviour & counter-fraud • • • •

Managing other resources

3.1 Natural resources 3.2 Strategic asset management 3.3 Workforce

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The new use of resources will assess intelligent commissioning (in draft)

2.3

…commissions and procures quality services, tailored to local needs, to deliver sustainable outcomes and VFM • shaped by priorities and local need; • includes local people, partners, staff and suppliers in design and appraisal; • understands and seeks to influence and develop market; • aims to reduce need through preventative measures; and • evaluates external & internal options for provision and chooses best for meeting needs, wider social, economic and environmental objectives, and VFM NB shortened version – not actual wording

Audit Commission Presentation

The Government wants commissioning to transform people’s lives

“

Authorities should seek to secure the best outcomes for their local communities… without regard for whether services are provided in-house, externally or through various forms of partnership

.” CLG statutory guidance, (2007)

Creating Strong, Safe and Prosperous Communities

, para 6.6

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So there are high expectations ……

Satisfy user needs Secure efficiency gains!

Support the local economy & SMEs Provide choice Procure in partnerships Improve service quality Develop a diverse supply base Foster innovation Encourage BME Incorporate sustainability Build third sector capacity

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The Commission is publishing a series of studies on commissioning and procurement

Back office efficiency

due May 2008

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Some key messages from these…

• Significant financial efficiencies can come from good procurement • Objectives have to be clear – what are we buying and what does it give us?

• Not all the good ideas and attempts have worked – (and sometimes this colours views of the value of good procurement) • There is a shortage of procurement knowledge and skills • The organisational mindsets have to be right – dogma doesn’t work… • The costs of actually doing the procurement are often ignored in the evaluation

Audit Commission Presentation

Some thoughts for you

• Although you may be doing some very smart things – – Are they visible to the rest of the organisation?

– Is the evidence being used or shared?

• Internally and externally – To what extent do you think your procurement practices address sustainability issues (social, environmental, economic) ?