The Scottish Government

1. Portfolio/Number/Name:ERD/C2 - Savings in SEPA

2. Programme/Activity: Please include a short description

A number of different efficiency savings have been identified by a undertaking a review of directorate business plans, a zero based activity planning and budget review, and from a review of overhead costs.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

0.665

1.33

2.0

Time Releasing (m)

0

0

0

4. Accountable Officer for delivery

Richard Wakeford

5. Project Manager

John Ford

6. EGDG account manager

Iain Dewar

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

The impact of these efficiency savings on the quality of services provided by SEPA is expected to be neutral.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes.

Part of savings are dependant on SEPA's restructuring. The restructuring will take place from 1 ^st April 2005, with the establishment of the functions of Science, Environment Protection & Improvement (EPI), Environmental & Organisational Strategy (EOS), Finance & Corporate Services (FCS), Communication, and Human Resources & Organisational Development (HR&OD). This has meant a significant change in the way SEPA delivers its business. This has resulted in a clearer focus on the functions' respective deliverables which has in turn allowed savings to be identified.

9. Description of efficiency and actions to be taken

9.1 How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

The cash efficiency savings will occur through:

• A reduction of staff over a number of business areas.
• Benefits realisation from introduction of a national laboratory IT system.
• Reductions in expenditure over a wide range of supply costs e.g. utilities, travel and subsistence, catering etc.

9.2 What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

The following action is needed to secure delivery of these savings:

• The national laboratory IT system needs to be in place by 1 ^st April 2005. It has already been implemented in February 2005 and will be fully bedded in by March 2005, ensuring savings can be achieved from 1 ^st April 2005.
• The mapping of staff identified from savings into new duty work and/or to turnover savings

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

+

0

0

0

-

0

-11

-24.5

Net

0

-11

-24.5

Explanation

All staff will be redeployed to other business areas.

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

The gross recurring saving from 2007-08 is 2,060,000.

12.2 Against what budget does this expenditure and saving fall?

Affects a wide range of budgets across SEPA

12.3 Has this saving been built into your budget?

No.

12.4 If so, what is the maximum allowable expenditure against the budget data, in each year, for that saving to be delivered?

N/A

12.5 If not, how do you propose to invest the additional cash back into public services?

The efficiency savings will largely be dictated towards SEPA frontline operational services.

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

SEPA has an ongoing efficiency review of its operations and any savings arising from this are logged for input to the following years budget set.

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3.

N/A

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

SEPA have reduced certain internal budget headings by the savings identified. The key control will be achievement of budget with no reduction in terms of volume or quality. Performance against activity targets and quality audits will be used to measure volume and quality.

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

Each budget where an efficiency saving has been built in will be reviewed monthly for progress against target. and progress reported to the management team. and on an exception basis to the SEPA Board.

14.3 Monitoring Data: Sources, validation and risks

• What data will be used to measure progress? Is all the required information quantifiable and readily available? If not what action will be taken to rectify this?
  
  Budget data, staff post numbers, activity targets and quality audits will be used to monitor progress. This data is readily available and easily quantifiable.

• What measures will be in place to validate the accuracy of the data? Who will take responsibility for this?
  
  Data will be subject to validity by the SEPA planning and finance committee as part of budget approval. It will be subject to reports at their meetings during the year. Internal audit will also review for Audit Committee.

• Are there any issues or risks relating to how you plan to use the data? (e.g. accuracy, difficulties in collection)
  
  There are no risks associated with the use of this data.