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Efficient Government Fund EGF)1)1)33 Shared payroll East and West Dunbartonshire

DescriptionTo establish a scalable common payroll service between East and West Dunbartonshire.
ISBN (Web Only)
Official Print Publication Date
Website Publication DateJanuary 23, 2006

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EFFICIENT GOVERNMENT FUND

Stage 1 application - expression of interest

Part 1: Summary Table

Bid number (for EG use)

Lead Bidder

East Dunbartonshire Council

Strategic Director Corporate Services - Valerie Watts

0141 578 8408

Valerie.watts@eastdunbarton.gov.uk

Head of Human Resources - Jim Gibson

(incorporating Payroll services) 0141 578 8070

jim.Gibson@eastdunbarton.gov.uk

West Dunbartonshire Council

Head of Finance - Lynn Bradley

incorporating Payroll services) 01389 737 191

Lynn.Bradley@west-dundarton.gov.uk

Brief description of the aims of the project

Further to conducting a high level benefits analysis in autumn 2004 (Appendix1) this project aims to establish a scalable common payroll service between East and West Dunbartonshire, subject to the recommendations emerging from an Outline Business Case (OBC) to be carried out by EDC & WDC and scheduled for completion by March 2005.

Clear description of what the EGF money would be used to buy

The EGF money would be used to support the project team; the backfilling seconded posts as required; procurement of specialised consultancy; providing necessary hardware, software provision & accommodation and the training of staff

Partners to the project likely to commit resources

East Dunbartonshire Council

West Dunbartonshire Council

Names of other organisations with whom the project has been discussed (to assist the introduction process)

  1. East Ayrshire Council

North Lanarkshire Council

Evidence that suggested approach has been deployed successfully elsewhere

The provision of Payroll Bureau services by third parties has already been successfully deployed by organisations of all types, sizes and sectors and for many years.

However, EDC and WDC are very aware that moving towards any shared service will require careful thought and planning to ensure minimum disruption and "business service" risk. To this end, it is important that perceived benefits identified within the OBC currently being conducted are monitored. As such an incremental pilot proof of concept approach may be the best course of action to be deployed in implementing any new service.

Are there any restrictions to potential for enlargement of the project (i.e. technology, number of partners etc)

The provision of a scalable common payroll service by EDC & WDC configured to allow for growth should provide an ideal platform for future development. It is anticipated that the Efficient Government Team's assistance in working with EDC and WDC in proactively seeking opportunities will help stimulate interest and discussion with other potential partners.

Benefits projected from the project

Whilst initial findings suggest indicative recurring revenue savings of £200,000 p.a. (Appendix 1), further projected benefits are;

  • An opportunity to transfer resources from back office to the front office customer facing duties
  • Opportunity to cut overlap and duplication through the establishment of shared staff and establishment costs
  • Community planning opportunity with respect to the potential for other public sector bodies to join the EDC and WDC partnership.
  • Pooling of skills and knowledge typically leads to improved service delivery performance
  • Opportunity to implement 'single pay frequency' regime in the creation of time and operating cost efficiencies

Estimated financial projections

Total

2005/06

2006/7

2007/08

2008/09

Overall project cost

(please see Appendix 2)

£320,000

£280,000

£40,000

0

0

Estimated projected benefits

£200,000 recurring cash efficiency saving per annum.

0

£160,000

£200,000

£200,000

Is a pilot required - see guidance notes

This will be subject to the outcome of continuing investigations and the OBC development. It is however envisaged that any EDC and WDC payroll partnership initiative would provide an invaluable platform for reference and learning for the Scottish Executive and other potential partners.

Additionally: why is EG funding required?

Without support from the EG Fund, it unlikely that EDC and WDC could afford to implement this project.

Is this project complementary in anyway to other EG work?

Opportunity to provide the Scottish Executive and the wider public sector with a proof of concept reference site able to demonstrate the benefits and synergies to be derived from the provision of a shared payroll service

Is "stage 2 development funding," requested?

Yes, subject to March 2005 Outline Business Case (OBC) confirming the findings of the high level benefits analysis conducted by EDC & WDC in autumn 2004 (Appendix1)

Page updated: Monday, January 23, 2006