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Scottish Criminal Record Office Primary Inspection 2004

4. Partnerships and Resources

Partnership Working

4.1 SCRO recognises the importance of partnership working and has included specific service objectives within its Corporate Plan which relate to 'Achievement Through Partnership'. In order to progress the effective liaison with stakeholders, clients and partnerships, SCRO appointed an Alliance Manager to drive partnership working within the organisation and deliver the following key aspects of the Alliance Management Strategy:

• build and maintain internal partnership alignment
• evaluate the relationship fit with existing and potential partners
• build strong working relationships
• develop collaboration skills in SCRO managers
• develop a collaborative organisational mindset
• manage multiple relationships within the same partnership
• audit partnerships
• manage changes that affect partnerships.

4.2 The diverse nature of SCRO necessitates the need for individual SLAs with key partners. The SFS has recently revisited partnership agreements with forces and will consult further with stakeholders once new technology to capture fingerprints is introduced during 2005 (paragraph 5.20). An SLA exists with the Defence Vetting Agency for work undertaken outwith the scope of Disclosure Scotland and between the State Hospital, Scottish Executive and SCRO. The ISCJIS programme (paragraph 5.104) will encourage further SLAs to be developed as other criminal justice organisations begin to access CHS, including interface arrangements with other agencies. Performance standards between BT and SCRO within Disclosure Scotland are encapsulated in contractual arrangements.

4.3 The appointment of an Alliance Manager should enable the development and strengthening of partnership arrangements throughout SCRO's business. While HMIC acknowledges the importance of the post holder in this regard, it is apparent that the post has extended to media enquiries, internal and external communications and marketing. HMIC accepts that the media and communications role may have developed through necessity, in the absence of a dedicated media resource, but a sharper focus on alliance management and business development is now appropriate.

4.4 SCRO has undertaken a partnership audit for its main services which sought to identify existing partners, method and frequency of communication, staff involved and any known issues. Identifying partners and other stakeholders is an important first step but this must be taken further into active engagement with them and fully taking their views into consideration in terms of service delivery. This is of particular relevance to the wider criminal justice community and customers of Disclosure Scotland. HMIC looks forward to further developments in this area and the successful delivery of SCRO's Alliance Management Strategy. HMIC will review implementation of the Alliance Management Strategy and the role of the Alliance Manager at the review inspection.

4.5 As part of the inspection process, HMIC took the opportunity to contact key SCRO stakeholders and partners. This consultation resulted in constructive comments in relation to specific aspects of service delivery and it is clear that SCRO enjoys positive relationships with many law enforcement and other organisations.

Financial Performance

4.6 The SCRO revenue budget for 2004-05 is £9.4 million, met fully by the Scottish Executive and attributable to the costs illustrated in Figure 4.

4.7 Prior to the current financial year, 50% of funding was on a pro rata basis from the eight Scottish police authorities. Separate funding arrangements exist in relation to the Disclosure Scotland public-private partnership and are contained within the terms of the contract. Agreement has recently been reached over the cost of administrative functions undertaken by Strathclyde Police on behalf of SCRO.

4.8 Operational and financial planning form the basis for the preparation of the annual capital and revenue budgets. The process involves consultation and discussion with heads of bureaux on the expenditure analysis for the current financial year, any planned areas for development in the forthcoming budget period, including staffing levels and any areas of efficiency that could be met out of current budget. Bureau heads are responsible for submitting a business case to the Business Support Manager for any significant items of expenditure required during the year that had not been foreseen at the time of budget preparation.

4.9 Within the financial structure operated by SCRO, each business area has a unique identity code to which all expenditure relating to that area of activity is assigned. This enables SCRO not only to report by expenditure heading, but to provide business area analysis to the appropriate head of bureau as required. Monthly management reports are prepared which provide details of the expenditure to date and year-end outturn forecasts.

4.10 In addition to the annual budget, SCRO is also responsible for funds related to the management and oversight of the Scottish Intelligence Database. The costs for this, relating to staff and IT support, are recharged to forces, which originally held the budget for this work. Staff costs are based on forces' Grant Aided Expenditure (GAE) percentages, which is the recognised methodology for recharging sums involving all forces and has been agreed by ACPOS Finance and Best Value Business Area.

4.11 The budget for SFS staff costs is split between SCRO and forces which house the other bureaux, however, it has been agreed that the sums currently included in forces budgets should be transferred to SCRO.

4.12 SCRO introduced devolved overtime budgets to heads of bureaux within the current financial year. Forecast overtime hours were produced taking into account outturns for the previous financial year, current working practices and future projects. These forecasts formed the basis of budgets allocated in terms of overtime hours. At the end of each payroll period an overtime return is submitted to Strathclyde Police which handles the payment of salaries on behalf of SCRO. Overtime management information is included in the monthly 'Managing Our Resources' report. The relevant heads of bureaux are accountable for any significant variances and require to provide details of any likely expenditure above the level originally budgeted.

4.13 Having reviewed the 'Managing our Resources' report, HMIC noted the annual overtime budgets for the current financial year have been reduced by approximately 30% against the previous financial year and that most bureaux are failing to keep within budget. HMIC is aware of a number of operational reasons to explain this and notes the Director has a financial contingency to ensure that any overspend on the overtime budget will not impact adversely on the overall SCRO budget for 2004-05. While HMIC accepts this is the first year for devolved overtime budgets within SCRO, budgets set for heads of bureaux should be realistic and achievable. HMIC will be interested in reviewing the development and outcomes of devolved overtime budgets within SCRO at the next inspection.

Audit

4.14 SCRO is subject to audit by the Scottish Executive, Audit and Accountancy Services. The first audit took place in April and May 2003 with the objective of providing assurance to the Scottish Executive on the systems of internal financial controls operating within SCRO. Internal Audit has given substantial assurance that the financial controls of SCRO are sound. A follow-up review was carried out in June 2004 to establish progress made in implementing the agreed recommendations from the 2003 report.

4.15 Audit and Accountancy Services is currently preparing its schedule for the period October 2004 to March 2006 and as part of this process will consider the timing of future activity at SCRO. It is likely that future audits will separate SCRO and Disclosure Scotland and each will be undertaken as a discrete review. During the inspection, HMIC collaborated with Audit and Accountancy Services in reviewing the financial information provided by SCRO. This resulted in the following key observations:

• SCRO financial reporting for Disclosure Scotland - Neither the payments to BT nor the income received for disclosure certificates are budgeted for. This makes the monthly monitoring report easy to misinterpret. Ostensibly, it appears to show that Disclosure Scotland is coming in below their net budget, when further analysis shows that this is not the case. In addition to this, the monitoring report only shows annual budget, budget to date, actual spend to date and variance. An additional column should be included that shows the projected financial outturn for the end of the financial year. This would improve reporting arrangements and focus attention on managing and decreasing overspend for the remaining financial year.
• Disclosure Scotland debt - Debt levels within Disclosure Scotland are relatively high. While debt management responsibility lies with BT, it would appear that Disclosure Scotland customers are currently withholding or delaying payment due to the format of the invoice. This is presented in a way that makes it extremely difficult for the customer to verify charges and confirm that it is correct. Invoicing arrangements are discussed further at paragraph 5.72.
• Management information - Management information which monitors the performance of BT in meeting timescales should include details of staff numbers. This would assist in placing the performance of BT into context.

4.16 HMIC recommends that SCRO considers the observations made by the Scottish Executive, Audit and Accountancy Services and implements the changes as required.

Recommendation 3
HMIC recommends that SCRO considers the observations made by the Scottish Executive, Audit and Accountancy Services and implements the changes as required.

Estate Management

4.17 SCRO relocated to Pacific Quay, Glasgow in October 2000 in preparation for the establishment of Disclosure Scotland in May 2002. Prior to this, SCRO occupied offices within Strathclyde Police's headquarters at Pitt Street in Glasgow city centre. Pacific Quay was one of three sites which were considered but it represented best value in terms of cost and facilities. At the time of relocation to Pacific Quay, staff were consulted on the proposed premises. Those who transferred receive excess travel costs for a period of 4 years from the date of transfer. This benefit ceases if a member of staff moves to a promoted post. Staff who did not wish to transfer were given the option to be redeployed elsewhere in Strathclyde Police.

4.18 The property at Pacific Quay is subject to a leasing agreement for a period of 25 years with effect from 1 May 2000 and current annual costs include rent of £445,000 with property rates of £165,000, estimated water rates of £12,000 and landlord's service charges of £32,600.

4.19 SCRO participates in the OGC property management scheme, which incorporates both bulk and planned preventative maintenance using a lead contractor. Agreements are in place with direct contractors in respect of dedicated services not covered by the OGC contract, including minor building and maintenance works.

4.20 HMIC was impressed by the facilities at Pacific Quay and the quality working environment it provides for staff, although it would appear that space is at a premium in areas occupied by Disclosure Scotland. While there is little capacity for expansion within the building, HMIC acknowledges that SCRO has considered a number of potential options for business growth.

4.21 SCRO retained some accommodation within Strathclyde Police's headquarters. This consists of a self-contained area with four offices, providing business continuity facilities for SCRO and back-up technology for CHS. The accommodation is subject to a leasing agreement with Strathclyde Joint Police Board at a current annual cost of £25,000. Service charges of £14,620 are also paid. The rent for this accommodation has recently been reviewed at £36,500, which is based on the open-market value of renting similar-sized facilities in the city centre.

Best Value

4.22 The creation of Best Value under the Local Government in Scotland Act 2003, forms part of a process for public services which focuses on commitment and leadership, responsiveness and consultation, sound governance and excellent management of people. Whilst the legislation does not apply to SCRO, HMIC supports the adoption of its principles as a means of driving continuous improvement.

4.23 SCRO has made a commitment to Best Value as part of its Corporate Plan and established a process of continuous improvement through the publication of the 'Service Review Guide'. The following reviews were programmed for 2002-04 and their status is shown in the Table C.

Table C: Service Reviews 2002-04

4.24 The Deputy Director has retained the role of project sponsor for each of these reviews to reinforce management commitment and provide strategic direction. Progress is monitored and reported through the monthly 'Managing our Resources' reports.

4.25 HMIC notes that the security guard contract review was completed in June 2004. This increased the scope of previous arrangements to include reception cover within Pacific Quay and the supplier was appointed after a competitive tendering exercise. HMIC acknowledges that the process was overseen by the Scottish Executive Procurement Division and represented a financial saving over the previous contract.

4.26 The Corporate Plan indicates that a further eleven service reviews have been identified for 2004-06, including reviews of CHS audit and compliance, Crimestoppers and recruitment. A further seven reviews have been identified for 2006-08, including SID user support and audit and compliance. HMIC notes that although some preparatory work has been undertaken in these specific areas, they have not been formally initiated as service reviews.

4.27 Two 'Improvement Teams' are being established within SCRO which will be facilitated by the police Liaison Officer. Primarily, these teams will examine people development and business processes within a Best Value context. It is anticipated that further reviews will emerge from these groups which represent all business areas within SCRO. A suggestion scheme is being devised to further enhance the opportunity for staff to contribute to the future development of the organisation.

4.28 The published review programme has been subject to change, with activities in some areas being brought forward for operational requirements. Whilst HMIC recognises that the reviews undertaken to date have added value, they have been narrowly focused rather than examining issues at a more strategic level. HMIC would encourage SCRO to develop its processes for future reviews to take cognisance of this and progress made in this area will be revisited at the review inspection.

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