The Scottish Government

1. Portfolio/Number/Name:DG Education / 1 / Balancing Note

2. Programme/Activity:

The portfolio is in the process of identifying activity across each Directorate - Children, Young People & Social Care; Schools; Lifelong Learning and the Office of the Chief Scientific Adviser - to deliver the rest of the required savings which are not already accounted for through published plans.

Many of these savings will only be capable of being quantified later in the year as they are dependent on corporate planning processes in Government agencies and/or NDPBs being finalised and the efficiency implications of some policy developments being fully worked through (HMIE, SQA and SAAS). In particular, the creation at the beginning of April of Skills Development Scotland provides us with a significant opportunity to look at delivering cash releasing efficiencies. Specific efficiency improvements will be identified in the course of 2008/09 as the new business delivery model for SDS emerges and reflected in a specific Efficient Government Delivery Plan to be taken forward once the Chief Executive is appointed later this year.

This plan will be replaced by additional specific plans in September but is published today as confirmation of Education and Lifelong Learning's commitment to meet its efficiency target in full.

3. Efficiency

3.1 Current target (balance); £m

2008-09

2009-10

2010-11

Cash

7.533

16.64

0

3.2 Efficiencies delivered (projected); £m

2008-09

2009-10

2010-11

Cash

157.382

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

We plan to deliver cash releasing efficiencies by delivering an actual resource efficiency through organisations and/or functions providing the same service at a reduced cost i.e. same output(s) for a reduced input set of inputs (e.g. costs, people, procurement, assets etc). Co-ordinating the activities undertaken by SDS in a more efficient manner (including information, advice and guidance services that were previously delivered by two of the legacy organisations) and undertaking of a best value assessment of shared transactional services provided by Scottish Enterprise and Highlands & Island Enterprise to SDS are just some of the areas which are expected to deliver cash releasing savings.

Specific efficiency improvements will be listed in the September revisions once the additional plans referred to above are developed.

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

See above. The Skills Strategy looks for the creation of coherent and cohesive structures for skills development and delivery which strengthen links with local government. SDS is therefore currently engaged in the review of its business processes in order to create a new model for the services it delivers. The new business model will bring associated cash releasing efficiency savings gains.

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

None planned.

9.1 What are the inputs that will be measured?

TBC - this will be known once disaggregated plans are available at the first set of revisions.

9.2 What are the outputs that will be measured?

TBC - this will be known once disaggregated plans are available at the first set of revisions.

9.3 What is the baseline for inputs and outputs?

TBC - this will be known once disaggregated plans are available at the first set of revisions.

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

TBC - this will be known once disaggregated plans are available at the first set of revisions.

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

A Deputy Director (Stephen Kerr) will be responsible for co-ordinating the monitoring of activity across DG Education and in agreeing plans with the Efficient Government leads in each Portfolio to deliver the remaining savings. Regular reports will be provided to DG Education Senior Management Team and the Cabinet Secretary for ELL.

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

See above.

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

None at this time.

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

At a strategic level, we will be working to achieve improved quality public services through matching investment with reform, increasing public sector productivity and designing services around the needs of individuals. It will be an overall requirement that service levels must be maintained or improved.

1. Portfolio/Number/Name:DG Education / 2 / GLOW

2. Programme/Activity:

The creation of a national schools intranet, Glow, which will allow pupils and teachers to access a wide range of communication and collaboration tools in order to support the development of the Curriculum for Excellence.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

2.95

2.95

6.5

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Travel Costs

Argyll and Bute estimate that video conferencing saves the council around 2000 person miles per week. At around 40p per mile this yields savings of approximately £30,400 per annum, which will increase as Glow to the desktop is rolled out. A direct extrapolation from the Argyll and Bute experience would suggest savings of up to £843,000 annually across all Scotland. However, it is unwise to assume that savings of this level would be achievable in more densely populated areas. We have therefore assumed that total savings would be 75% of this across the country by 2010-11 (rising from 25% & 50% in 2008-09 & 2009-10).

Photocopying costs

Islay High School have shown savings of £15k per annum by moving to a paperless school. This is an ambitious target for all schools to achieve, but using Glow to communicate with teachers to the extent of producing an average of two fewer photocopied sheets per teacher per school day (at £0.03 per sheet over 190 days) will save £604,000 annually.

Additionally, it is not unreasonable to expect that there will be paper savings amongst pupils. If we assume that 25% of the pupil population of approximately 700,000 saves one photocopied sheet per pupil per day in 2008-09, rising to 50% in 2009-10, and to one per pupil per day 2010-11, savings are as follows:

Procured content

Learning and Teaching Scotland have procured several banks of online resources for use through Glow. Comparing the cost of a central procurement for 100% of schools with the cost for 30% of schools taking individual licenses (a conservative assumption about the likely rate of adoption in the absence of a central programme) gives a saving of £1m annually.

E-Mail

Many local authorities will be giving up other e-mail services and using Glow Mail when they take on the Glow services. Existing e-mail can cost from 85p to £1 per person per year. Assuming that by 2010-11 50% of GlowMail accounts result in a direct financial saving to the local authority of 85p gives the following savings:

Total

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

These efficiencies are predicated on widespread uptake and use of the Glow services across Scottish local authorities.

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

The Glow programme is justified on the basis that it will enable new ways of teaching and learning and lead to improved educational outcomes for young people. It is not being pursued on efficiency grounds and the costs of development have therefore not been netted off.

9.1 What are the inputs that will be measured?

LA and school expenditure on photocopying and email services, and on staff travel costs for meetings etc.

9.2 What are the outputs that will be measured?

Not readily identifiable at this stage; Glow offers new facilities to schools that may result in different learning experiences.

9.3 What is the baseline for inputs and outputs?

Evidence from schools and local authorities.

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

General quality indicators for Scottish education - results of inspection and examination

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

Work ongoing with LTS to identify full range of potential efficiencies as the practicalities of Glow roll-out continue. LTS will factor in monitoring to their discussions with local authorities and schools.

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

LTS will report to the Scottish Government as roll-out continues.

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

Efficiencies are dependent on full implementation of Glow

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

The resources released by any efficiencies achieved under this programme will remain at the disposal of local authorities.

1. Portfolio/Number/Name:DG Education / 3 / Learning & Teaching Scotland

2. Programme/Activity:

Learning and Teaching Scotland support the implementation of national developments in education, including reviewing and refreshing the curriculum, to ensure Scotland is at the cutting edge in delivering high quality support for teaching and learning; provide guidance, leadership and support to education authorities and schools to help implement educational policy and promote innovation; drawing on evidence from research and external evaluation, provide sound, coherent advice to Ministers on support for continuous improvement in Scottish education; and systematically evaluate the impact of all aspects of its work across the education system.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.3

0.47

0.64

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Non backfilling of senior management leavers £137k

Non backfilling of middle management leavers £63k

Reduction in externally commissioned research £50k

Reduction in externally commissioned

Communications spend £50k

£300k

There are additional efficiency measures planned for 2008/09 but the impact of these will be used to fund investment in front line activities.

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

Staffing

Redistribution of management roles and minor internal restructuring to cope with reduction in management headcount.

Spend Reduction

Additional focus on value added by/ productivity of own staff and increased liaison with front line colleagues on relevant research/ communications requirements.

Process Redesign

Redesign of processes including use of technology to facilitate virtual delivery such as online services.

Sharing Services

Where appropriate we are working with other organisations to share services.

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

None.

9.1 What are the inputs that will be measured?

Headcount/fte's

Spend

9.2 What are the outputs that will be measured?

Delivery against our key outcomes as outlined in our Programme Initiation Documents .

9.3 What is the baseline for inputs and outputs?

Actual costs, outputs and outcomes for FY 2007/08

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

The indicators for each Directorate's objectives are defined as part of our Performance Management Framework.

In addition we benchmark our key Corporate Service indicators by benchmarking across other organisations. Finally we also have in place a best value programme to support our approach to continuous improvement.

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

Staffing: control over recruitment, payroll budgets, headcount statistics

Spend reduction: actual to budget variances and quarterly reforecasting

Actual against target efficiency statements.

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

Quarterly 'on target' confirmations or otherwise as required by our Sponsor Department.

Annual Efficiency Statements.

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

No legislative dependencies but minor internal restructuring ongoing.

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

The LTS £300k etc efficiency savings above are being released back to our Sponsor Department for investment elsewhere.

We have separate ongoing measures to continue our programme of switching internal support resource/ spend to front line educational programs.

1. Portfolio/Number/Name:DG Education / 4 / Henry Duncan Initiative

2. Programme/Activity:

The "Henry Duncan Initiative" is the model of private sector philanthropy adopted by "Inspiring Scotland" the Lloyds TSB Foundation. This project is a new joint public and private sector partnership which will promote community and individual involvement, and initially will focus its efforts supporting young people in the 14-19 age group who fit with the More Choices and More Chances client group. This project as well as providing new funding for new activities or old activities by new bodies it replaces a plethora of funding from various policy teams which previously had supported third sector core activities. In that sense it provides the third sector, and in particular to provide a more stable funding environment for the third sector. The Scottish Government's financial contribution will be at least matched by Lloyds TSB Foundation (Inspiring Scotland) and the philanthropic sector. The target for funding from the private sector is 55-60%. For the purpose of the efficiency plan 50% matching funding has been assumed.

The baseline cash for this project and these efficiencies comes from variety of sources and identification of these will take considerable time.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

1.4

4.4

4.4

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

New activities which lever substantial cash contributions from the private sector for key Scottish Government policy themes.

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

The actions required involve working up the shape of the project. Inspiring Scotland are committed to preparing an evaluation strategy in the next few months which will give shape to the project by setting out how the impact and outcomes from the project will be measured, recorded, reported and tested.

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

No.

9.1 What are the inputs that will be measured?

TBC

9.2 What are the outputs that will be measured?

TBC

9.3 What is the baseline for inputs and outputs?

TBC

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

TBC

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

Agreed partnership arrangements with Inspiring Scotland.

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

Agreed partnership arrangements with Inspiring Scotland.

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

No dependencies.

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

To increase the scale and impact of key Scottish policy agendas.

1. Portfolio/Number/Name:DG Education / 6 / Scottish Social Services Council

2. Programme/Activity:

The Scottish Social Services Council (SSSC) is sponsored by the Children Young People and Social Care (CYPSC) Directorate. A recurring 1.5% efficiency saving has been incorporated into the SSSC's financial settlement for the next three years.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.18

0.36

0.54

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Same service to be provided with a reducing budget

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

The SSSC has adopted a strategy and new approaches to its responsibilities for social work training and the achievement of qualifications. In addition development and implementation of new IT will produce efficiencies which should grow over time.

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

Yes, associated with early retirement, accommodation, new staff and IT. The cost of these is £100

9.1 What are the inputs that will be measured?

The impact of the various changes will be monitored by the Chief Executive.

9.2 What are the outputs that will be measured?

That existing service standards are maintained.

9.3 What is the baseline for inputs and outputs?

2007/08 baseline

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

Chief Exec to determine and confirm.

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

The sponsor branch will continue to monitor through regular reports to the SSSC board.

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

Regular SSSC Board reports.

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

None.

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

This efficiency was assumed as part of the financial allocation made by the Scottish Government to SSSC. This freed up resources for Ministers to allocate to their priorities.

1. Portfolio/Number/Name:DG Education / 7 / Scottish Children's Reporters Administration.

2. Programme/Activity:

The Scottish Children's Reporters Administration (SCRA) is sponsored by the CYPSC Directorate. A recurring 1.5% efficiency saving has been incorporated into the SCRA's financial settlement for the next three years.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.341

0.683

1.029

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Same service to be provided with a reducing budget.

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

The actions are for the Chief Exec. of SCRA involve disengaging from an existing PFI IT contract and connecting to the SG's SCOTS Connect IT system. This change is taking place to improve the operational efficiency of the organisation.

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

Provision has been made in the capital budget for SCRA to buy-out of the PFI contract.

9.1 What are the inputs that will be measured?

None, although the operational impact of changing IT service provider will need monitored.

9.2 What are the outputs that will be measured?

Existing service standards are maintained.

9.3 What is the baseline for inputs and outputs?

2007/08 baseline.

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

Chief Exec to determine.

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

The sponsor will continue to monitor through bi-monthly reports to the SCRA Board.

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

Bi-monthly reports to SCRA Board in compliance with the Efficient Government quarterly reporting processes.

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

Dependent on implementation by new IT provider.

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

This efficiency was assumed as part of the financial allocation made by the Scottish Government to SCRA. This freed up resources for Ministers to allocate to their priorities

1. Portfolio/Number/Name:DG Education / 8 / Student Award Agency for Scotland - GRASS

2. Programme/Activity:

Providing financial support to eligible Scottish students.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

1.452

1.565

1.678

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Rewriting SAAS's main operating system (GRASS) using a team of in-house developers rather than contracting with a private sector third party. The new system will automate a greater percentage of casework and improve output and quality. Saving is made up of £1.452m ICT development and support plus £0.113m and £0.226m caseworker pay costs in 2009-10 and 2010-11 respectively. Development savings will be ongoing since SAAS systems require to be redeveloped year on year in the light of policy changes. Caseworker savings are in terms of posts that can be redeployed (see 14 below).

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

Completing new system build and training staff in its use.

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

Development and support staff costs are estimated at £398,000 in 2008-09 and 2009-10. However, since this project is necessary because GRASS has become obsolete and difficult to support, these costs do not need to be netted off against savings.

9.1 What are the inputs that will be measured?

Capital and running costs.

9.2 What are the outputs that will be measured?

Efficiency of new system and cost of supporting it

9.3 What is the baseline for inputs and outputs?

Project business case prepared in 2007-08.

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

The development project is being peer reviewed. Future quality of service will be monitored by customer satisfaction ratings and Agency management information on throughput, error rates and complaints.

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

Project Board will monitor delivery of the new system. Thereafter, the Agency's Management Board will monitor its efficiency in the same way as they do the present operating system.

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

Reports to quarterly Management Board meetings and quarterly reviews with the Agency's Fraser figure (Director, Lifelong Learning).

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

N/A

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

Efficiencies will release a number of caseworker posts (5% in 2009-10 and 10% in 2010-11) which will be redeployed to improve our information, guidance and help services to students and their families.

1. Portfolio/Number/Name:DG Education / 9 / SAAS Eligibility

2. Programme/Activity:

Providing financial support to eligible Scottish students.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

2.156

4.265

6.327

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

Incomes increase at a greater rate than the inflation index used to uprate loans and grants annually. This means that each year (all other things remaining equal) students whose parental income exceeds the eligibility threshold cease to be eligible for income assessed support for living costs. This effect (known as "fiscal drag") is maintained by assessing support on the basis of family income in the immediately prior year and keeping the eligibility threshold constant in cash terms. In the rest of the UK (RUK), assessment is due to move to using income from two years prior and the eligibility threshold is to be raised. This will mean more students from higher income families remaining eligible for support

We have considered this option and chosen to move away from the RUK position in this regard to continue with the present arrangements in Scotland. This allows us to use the fiscal drag saving free up resources which can then be targeted on the less well off.

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

Continuing to uprate loans by RPI and keeping eligibility threshold constant in cash terms.

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

No.

9.1 What are the inputs that will be measured?

Annual uprating of grants and loans and wage inflation.

9.2 What are the outputs that will be measured?

Numbers of students eligible for income assessed loan support.

9.3 What is the baseline for inputs and outputs?

Spending Review 2007

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

Numbers of students eligible for income assessed support.

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

Quarterly reports to the SAAS Management Board and quarterly reviews with the Agency's Fraser figure (Director, Lifelong Learning). Periodic review of student numbers in consultation with the Agency's statistician and economists.

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

As per 11 above plus SAAS Annual Report.

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

N/A

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

Efficiencies free DEL resource that can be used to target more support on the least well off in line with Government policy on widening access to HE.

1. Portfolio/Number/Name:DG Education / 10 / SAAS - Loans to Grants

2. Programme/Activity:

The portfolio will identify activity across each Directorate - Children, Young People & Social Care; Schools; Lifelong Learning and the Office of the Chief Scientific Adviser..

We will look to deliver efficiencies in the SAAS budget by investing new funds to support the move from loans to grants. Additional investment of £30m in 2010-11 will generate saving in relation to student loans.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0

0

40.0

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

By investing in the transition from students loans to grants, we are improving the efficiency of the student support system by moving away from our reliance on an expensive loan system.

An investment of £30m is planned in DEL in 2010-11. If these funds are used to replace loans currently paid out then this will see a corresponding saving of £30m in the 'Student Loans New Lending' budget line, which is not currently planned. Although this is AME, it is included in SAAS's detailed spending plan figures for SR2007, against which efficiencies are measured.

There would also be a reduction in the costs associated with student loans (the RAB charge) in DEL.We have estimated this to be in the region of £10m, giving an overall efficiency of £40m. In this scenario, the additional £10m can be freed up to increase investment in grants.

As well as the RAB charge, the cost of student loans provision in the budget also includes flexibility to manage in year changes that may effect student loans budgets. It is possible, nearer the time that more of this may be freed up to increase the level of saving in 2010-11.

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

Work with SAAS and the Student Loans Company to effectively implement changes.

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

None are planned.

9.1 What are the inputs that will be measured?

Work with SAAS and the Student Loans Company to effectively implement changes.

9.2 What are the outputs that will be measured?

We will continue to monitor how support is being paid out, who is receiving it and what impact this is having in terms of retention rates, debt levels on graduation etc.

9.3 What is the baseline for inputs and outputs?

We already collect statistical information on all of these areas so baselines exist now which will allow us to consider how changes such as this investment will help to improve the position.

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

We will continue to work with SAAS and the SLC to monitor customer satisfaction and will continue to receive feedback from relevant stakeholders - in particular student representatives - to ensure that there is no negative impact on service and that improvements can be made on a regular basis.

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

The Deputy Director will consider efficiencies with SAAS and the SLC on a regular basis as part of the regular (3 or 4 times a year) liaison meeting between all three parties. Efficiencies will also be covered by regular finance meetings at team leader level.

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

SAAS and SLC will report to liaison meetings.

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

Not at this time.

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

Efficiencies released will be put into supporting the transition from loans to grants, improving the student support system in line with Government policy.

1. Portfolio/Number/Name:DG Education / 11 / Scottish Funding Council

2. Programme/Activity:

Scottish Further Education Colleges And Higher Education Institutions

The Scottish Funding Council will lead on behalf of Scotland's colleges and universities. This work is in the early stage of planning but a level of detail - showing how we plan to deliver the savings - has been set out as fully as possible in this Plan.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

32

64

96

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

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

We plan to deliver cash releasing efficiencies by delivering an actual resource efficiency through colleges and universities providing the same service at a reduced cost i.e. same output(s) for a reduced set of inputs (e.g. costs, people, procurement, assets etc). The overall process to deliver the vast majority of the savings is likely to involve the following:

(i) The efficiency target will be applied at sector level.

(ii) An assurance process is instituted that requires annual efficiency statements from institutions. These will include a broad range of examples to demonstrate where resources are being released through efficiencies in certain areas, in order to make specific improvements to service delivery in others. Each institution will therefore have to maintain a record and associated evidence of efficiency gains for audit purposes.

(iii) The audit process for the efficiency target will be undertaken through institutions' normal internal and external audit processes. This will allow institutions, through their Audit Committees, to take responsibility for demonstrating and assuring the dual process involved in identifying efficiencies and redeploying those resources , as well as emphasising a systems and process approach to efficiencies.

(iv) To support the foregoing the Funding Council and the sectors will develop a programme of guidance, advice and seminars, based on available resources on value for money, Best Value, etc. In conjunction with the relevant sector agencies, we plan to develop a programme of guidance, based around a traditional approach to VFM.

The rest of this section describes the types of efficiencies that will be delivered.

These will build upon the significant efficiency gains that have already been delivered over recent years and the continuing gains derived from existing collaborative activities. Although final figures are not yet available, institutions' current projections indicate that the EGI targets will be exceeded - both in total and for each stream - for the period 2005/06 -2007/08.

The underlying aim of the efficient government programme is embedded in the approach the Funding Council takes to funding colleges and universities and that funding approach is applied to all institutions in exactly the same way. Therefore, the possibility of relative inefficiencies between institutions is minimised. It is also the case that colleges and universities will have to achieve efficiencies in order to fund the 'super-inflationary' cost pressures which they face - particularly in relation to salaries.

Key developments will include:

· Identifying, sharing and replicating new approaches for the delivery of learning, research and support functions and the development of new collaborative activities

Approaches are constantly evolving as institutions strive to maximise the investment of the resource available to deploy on teaching and research. This strand seeks to identify the most successful approaches, ensure effective dissemination, and provide support for efficient replication.

· Joint procurement arrangements

During this three-year period the sectors' procurement centre of expertise, Advanced Procurement for Universities and Colleges (APUC), plans to deliver significant procurement-related savings for institutions. There will also be procurement efficiencies independent of APUC e.g. recruitment of procurement professionals and improved processes and procedures.

· Investment in estates

The Scottish budget spending review 2007 (SR07) has committed continuing significant capital investment for colleges and universities over the three financial years to 2010-11. Best practice in collaboration, co-location of facilities, procurement, energy efficiency and waste management will be part of institutions' estate renewal strategies.

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

The details will be worked up with the sectors over the next few months and will be presented in the next iteration of this plan.

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

None are planned.

9.1 What are the inputs that will be measured?

Although not final, the following indicates the likely input measures for the college and university sectors.

Identifying, sharing and replicating:

· costs associated with the relevant activities before and after implementation of each 'improvement programme'.

Procurement:

· costs of relevant goods and services; and

· operational costs of procurement activities.

Estates:

· description and, if possible, recurring value of improvements to facilities (i.e. facilities that did not exist prior to each re-development).

9.2 What are the outputs that will be measured?

As the colleges and universities develop more detailed efficiency plans, the appropriate cash efficiency for each activity will become more apparent and will be defined at that time, so as to enable a 'before and after' comparison.

It is already established practice that in return for funding from the Funding Council, institutions have to deliver a defined volume of provision and demonstrate continuous quality improvement. Monitoring and reporting procedures for the efficiency projects will build upon this, and will be developed in conjunction with the sectors.

9.3 What is the baseline for inputs and outputs?

For colleges and universities the baseline for each redeployment gain will be the inputs and outputs of the associated activity in academic year 2007-08.

All reporting for the college and university sectors will cover the academic and financial year period from 1 August to 31 July, which differs from the Scottish Government's financial year of 1 April to 31 March.

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

It is anticipated that the developments will have positive impacts on the quality of both teaching and research in colleges and universities. The improvements in quality are expected to arise from: greater availability of purpose-built teaching and research facilities; the sharing and replicating of new approaches for the delivery of learning, teaching and support functions; and enhanced investment in teaching and research.

With respect to qualitative measures, and monitoring thereof, existing processes, such as the student satisfaction surveys, the work of the Quality Assurance Agency and Her Majesty's Inspectorate of Education will continue and provide assurance that the transfer of resource, both cash and time, to the frontline is having a positive impact on teaching and the learning experience. The Research Assessment Exercise (RAE) measures the quality of research work in departments submitted to the assessment. The last RAE was 2001 and the results of the most recent RAE will be available later in 2008.

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

A Deputy Director and the DG Education Business Manager will be responsible for co-ordinating the monitoring of activity across DG Education and in agreeing plans with the Efficient Government leads in each Portfolio to deliver the savings. Regular reports will be provided to DG Education Senior Management Team and the Cabinet Secretary for ELL.

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

See above.

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

Not at this time.

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

At a strategic level, we will be working to achieve improved quality public services through matching investment with reform, increasing public sector productivity and designing services around the needs of individuals. It will be an overall requirement that service levels must be maintained or improved.

The returns from the colleges and universities will include an analysis of specific areas where there are improvements to service delivery brought about by the release of resources through efficiencies in other areas.