The Scottish Government

1. Portfolio/Number/Name:ELL/C4 Scottish Enterprise efficiencies from Line-by-Line Review of Overhead costs - NEW

2. Programme/Activity:

The line by line review is part of the SE Chief Executive's Change Programme which commenced in 2004. A technical note was submitted in 2005, however an earlier baseline year was applied in calculating the figures and this explains the significant decrease in the actual efficiency delivered for 2005/06 and subsequent targets for 06/07 and 07/08.

3. Efficiency

3.1 Current target; £m

2005-06

2006-07

2007-08

Cash

0

1.5

2.6

Time

-

-

-

3.2 Efficiencies delivered; £m

2005-06

2006-07

2007-08

Cash

0.958

-

-

Time

-

-

-

4. Accountable Officer for delivery

Philip Rycroft

5. Project Manager

Rebecca Robinson

6. EGDD Portfolio Manager

Hilary Pearce

7. Description of efficiency and actions to be taken

7.1 What is the efficiency improvement? How will the saving be made?

Savings are estimated to be realised in the following SE areas:

UK T&S £135K; Hospitality/Entertainment/Gifts £44K; Contract Car & Car Mileage £260K; Car Parking £15K; Telecoms (excluding Mobiles) £622K; Mobile Phones £40K; Postages £1K; Couriers £11K; Stationery £26K; Conferences, Seminars & Courses £500K; Catering including Water £534K; Storage £84K; Software including licences & software maintenance £294K; Subscriptions £65K.

The above represents a total saving of £2.6M against an Efficient Government baseline of 04/05. To achieve this level of savings budgets will be capped accordingly.

Point of note - against SE's original Line by Line review baseline of 03/04, total savings of £3M are targeted by 07/08.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

Budget capping as noted in 7.1 above.

Change in policy and procedures.

Economies of scale arising from negotiating Network wide contracts.

8. Associated costs

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

No.

9. Measurement

9.1 What are the inputs that will be measured?

A targeted reduction in actual spend in the above mentioned areas.

9.2 What are the outputs that will be measured?

As noted in 9.1 above

9.3 What is the baseline for inputs and outputs?

The baseline established and against which savings will be measured is 2004/05 actual spend in the areas mentioned in 7.1 above.

10. Quality cross-check

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

The scope of this project should have zero impact on the quality of service delivered by the organisation.

11. Monitoring

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Actual spend will be monitored by a Network Team consisting of 2 Finance Directors and Director Network Support Services.

12. Reporting

12.1 What are the arrangements for reporting the delivery of efficiencies?

6 monthly reports will be presented to SE Executive Board by Team noted in 11 above.

13. Dependencies

13.1 Explain if your efficiencies are dependant on legislation or other structural changes being achieved.

None.

14. Use of savings

14.1 How are the efficiencies released from improvement activity being used to improve front-line services?

Efficiencies are released into SE's annual budget and included in the prioritisation of annual budget allocations to operational activities.