Venue: The Olympic Room, Aylesbury Vale District Council, The Gateway, Gatehouse Road, Aylesbury, HP19 8FF
Contact: Craig Saunders; Email: firstname.lastname@example.org;
To approve as a correct record the Minutes of the meeting held on 5 February, 2018, copy attached as an appendix.
That the minutes of the meeting held on 5 February, 2018, be approved as a correct record.
To consider the attached report.
Contact Officer: Rafael Lima (01296) 585248
The Committee received a report updating Members on the approach taken by the Business Support and Enablement sector to manage procurement activities and contract management across the organisation.
A business review had been undertaken during the Commercial AVDC Programme in 2016/17 to identify opportunities to deliver best practice in procurement and make recommendations for potential efficiencies across both the procurement and contract management functions for the council. The analysis had categorised all contracts by risk, value and opportunity, and identified strategic and tactical contracts that could deliver better quality services and/or cost efficiencies.
Additionally, the review had made recommendations to:
· recruit a procurement and contract management specialist team.
· develop a consistent approach to procurement.
· implement a framework for effective contract management.
· develop training and upskill contract owners to ensure contracts were being delivered effectively.
· identify opportunities to reduce/amalgamate spend across the organisation.
Typically with measures such as these in place around 2.5% - 5% of efficiencies and savings could be delivered over the life of all contracts (roughly 5 years).
In August 2017 a centrally led expert team had been created to govern the process. It had been recognised that low value / low risk contracts did not necessarily need to be led by this team. However the team would monitor and act as quality assurance to deliver the identified efficiencies.
The new Corporate Contracts and Procurement team had been created with four members. Aligned with the investments and evolution of Connected Knowledge, the team was managed by Rafael Lima as the IT Procurement Specialist who supported all IT functions. Members welcomed him to this, his first meeting. The roles of procurement specialist, contract management specialist and procurement apprentice had also been created to support all other categories.
The area’s objectives were to enhance benefit/value from external service providers, achieve the budget commitment for contract savings, manage risks and ensure compliance with legislation and internal policies. A recent example of this was the Guide to the General Data Protection Regulation (GDPR) requirements, where all, even low value contracts, were being amended to ensure they complied with GDPR.
The new Contract Management practice was to proactively review contracts that were up for renewal by reviewing the scope with internal stakeholders and re-negotiating terms, ensuring exit and termination of contracts were managed, and that any unnecessary expenditure and risks were mitigated.
Difficult supplier-contract relationships where best value was not being delivered were being closely monitored in a new Monthly Performance Review process. The collaborative approach invited both AVDC and the supplier to take actions on areas such as communication, fulfilment of contract and cost. This approach had led to improvements to internet connection (MLL) and the Finance System (Technology One). At this stage in the evolution of the team, the Monthly Contract Reviews were targeting contracts above £60K with participation of Contract Owners/Budget Holders to drive improvements in the service.
The Tender Exercise process was being standardised to improve the reporting and outline the team’s performance, a savings methodology that was also ... view the full minutes text for item 2.
To consider the attached report.
Contact Officer: Nuala Donnelly (01296) 585164
The Committee received the Financial Digest for the period up to the end of December, 2017. The financial information was based on the actual income and expenditure for the 9 months April to December, 2017. An overspend of £2.323m had been identified as at the end of December, 2017. The forecast for the end of the financial year was a predicted overspend of £487,400 against budget, after the application of reserves. The financial position was consistent with that used in budget planning for 2018/19 and future years.
Members had previously discussed the content and format of the Financial Digest and it was noted that work was continuing in this respect. The report now before the Committee was the first iteration of alternative reporting arrangements and Members indicated that this was an improvement over the previous reporting mechanism. The report contained a number of tables which it was agreed were more helpful to Members’ understanding of the financial performance of the Council. The report could be viewed in full on the Council’s web site at:
The year to date expenditure of £64.596m represented an overspend against the year to date budget of £3.217. Total income recovery was £48.333m which was £0.894m above budgeted levels. The year to date position by portfolio was submitted, with service detail being included within the Financial Digest itself.
The financial position was largely being driven by above budgeted levels of staff costs in relation to business transformation. Over the past 12 months, the Council had undergone a series of business reviews to better position itself as a commercial organisation. The reorganisation had realised significant savings in staff costs running into future years and had been a central plank in the Council being able to set a balanced budget for 2018/19.
Whilst in the 9 months to the end of December, £0.943m of salary savings had been achieved as a result of the business reviews, it had been necessary to engage temporary staff in some areas where there was a national shortage of suitably qualified personnel. For 9 months of the financial year, temporary staffing costs had been £2.309m above budgeted levels. However, as the year progressed, it was anticipated that these vacancies would be filled on a full time basis, thus reducing considerably the reliance on agency staff. Redundancy costs of £1.667m had been included to date.
For non pay budgets there was an adverse variance against the year to date budget of £0.18m which related spend on premises and properties, utility costs and also included transport costs and other non pay costs related to service delivery.
As at the end of December, 2017, income recovery was £0.894 above budgeted levels. The over recovery included additional income from rents and lettings, grants and income from planning and garden waste.
The outturn position at the end of the last financial year was forecast to be £2.169m adverse against budget. This included £1.739m of redundancy costs although these would be funded from reserves. The Council anticipated however ... view the full minutes text for item 3.
In line with the comments at the last meeting about better aligning Committee meeting dates for future financial / performance reporting, a proposed timetable of meetings will be reported to the 9 July 2018 meeting.
Meetings are currently scheduled as follows:-
· 9 July 2018 –Everyone Active has already agreed to attend the meeting to report on the Leisure Centres Management contract
· 15 October 2018 – Quarterly Finance and Performance
· 17 December 2018 – budget scrutiny, Quarterly Finance and Performance
· 14 January 2019 – budget scrutiny, Equality Duty report
· 8 April 2019
Members were advised that as requested previously, work was in progress to better align meetings to future financial reporting dates.
The Following items were scheduled to be considered at the meetings indicated:-
9 July, 2018 – Everyone Active had agreed to attend to report on the leisure centres management contract.
15 October, 2018 – Quarterly finance and Performance report.
17 December, 2018 – Budget scrutiny, quarterly finance and performance report.
14 January, 2019 – Budget scrutiny and Equality Duty report.
8 April, 2019 – Nothing programmed as yet.
That the work programme be noted.