The Scottish Government

Project Name: North of Scotland Local Authorities (NoSLA) Revenues & Benefits

Current Stage

SRO: Mark Palmer, CFO, Moray Council

Vision

PM: Sheila McKandie, Policy and Development Manager, Highland Council

Project Commissioning

Project Initiation

DA Lead

Assets

Design x

KM Lead

Construct

Implement

SE lead officer

Estimated Project Cost - £360,000

Operate

Estimated Start / End December 2007 to August 2008

What is the background to the project and the context in which it was established, what were the issues/drivers/opportunities which led to its inception- why?Background and context:

As part of the Scottish Executive's Efficient Government initiative some work has been done elsewhere in relation to administration, billing and collection of Non Domestic Rates. It is understood that the work of that particular consortium has been "parked meantime" and that a more strategic approach to sharing is being sought.

This study is to look at the feasibility of sharing operational services in the wide and significant arena of Council Tax, Benefits and Non Domestic Rates.

Council Tax levels and policy formulation within the scope of the various Regulations are and should properly remain matters for local consideration and determination.

Transformational government means that Councils on their own are making improvements, but the pace of change requires to increase. Organisational boundaries are still expensive and the Nosla Revenues and Benefits proposal is a first step towards a more radical future.

What are the aims/objectives/benefits & deliverables that the project is seeking to achieve, what improvements will there be as a result of this project - what?Objectives & Benefits -

To examine the feasibility of creating Shared Services for Tax administration, billing and collection; the administration of Tax Benefit and Housing Benefit; and Non Domestic Rates administration, billing and collection.

To evaluate alternative models for future delivery of these Shared Services and their components across the North of Scotland.

To consider the extent to which the approach and model is capable of being applied on a wider and potentially national basis (Scotland-wide).

Key deliverables

Business process review of targeted services.

Gap Analysis against leading practice for opportunity sizing

Technical Infrastructure requirements

Potential service delivery vehicles and preferred model.

Operating model for shared delivery service.

Outline business case and governance arrangements

Identification of quick wins and opportunities for service improvement

The project is seeking to achieve the following savings

The PID does not identify expected levels of benefits, although indicates that cost reduction, time savings and processing accuracy improvements are anticipated

Improvements / Benefits as a result of this project will be:

Economies of scale through integrated procurement.

Re-engineering of end-to-end processes to achieve best practice

Best use of expert skills across participating Councils

Improved customer service

More efficient IT solutions and use of operational staffs

Lower transaction costs

Which organisations are involved in delivering the project, what are their roles and responsibilities, who is accountable? Who are the key stakeholders to whom the project is relevant?- who?Stakeholders and governance-

The 7 Councils participating in this feasibility study are:

Aberdeen City, Aberdeenshire, Argyll & Bute, Highland,

Moray, Orkney, and Comhairle nan Eilean Siar .

Any disputes that cannot be resolved by the PB will be referred for resolution to the Chief Executives of the Councils. The PB is made up of a senior Revenues and Benefits representative from each council. Lead authority - Moray Council (chair of Project Board (PB).

PB will be run using PRINCE 2 methodology.

What specific progress has been achieved to date ? -Milestones met/achievements?Progress and Issues-Have any issues arisen causing delays in the work plan? Is project delivery still on schedule?

Having successfully appointed the Project Manager and consultants, the Study will comprise of 3 phases. The Study is currently on track for completion within the project timetable.

Phase 1 - Current Service Assessment and project mobilisation

Start Date: 9 April 2008; Scheduled Completion Date - week ending 13 June 2008

Deliverables: Risk Register; Communications Strategy; ICT Options Report and Baseline Performance Reports

This phase is currently underway and has involved 3 data gathering streams to baseline information such as staffing, costs, performance, organisational structures, ICT provision and on-site service delivery. Wherever possible, the COUNT principle has been applied to data gathering - Collect Once and Use Numerous Times.

A workshop was held on 15 May 2008 at Aberdeenshire Council for key contacts who operate in a Revenues/Benefits management capacity within NOSLA. The Project Board was also represented. This was an invaluable event which enabled the project team and attendees to update on project progress and next steps; assess what NOSLA want and need to achieve from any new approach in terms of performance and benefit realisation; discuss the operational impact of abolishing council tax; and agree the approach to options appraisal for presentation to the Project Board on 27 May 2008.

Phase 2 - Evaluation of Delivery Options

Scheduled Start Date: 11 June 2008; End Date: 2 July 2008

Deliverable: Operating Models - Options Report

This Phase will provide an assessment of the possible alternatives in respect of sharing the delivery of Revenues and Benefits services across the NOSLA Councils.

A stakeholders' conference is scheduled for 20 June 2008 to consider 3-4 operating models with the aim of selecting a single option for implementation.

Phase 3 - Operating Model, Business Case and Implementation Plan

Schedule Start Date: 2 July 2008; End Date: 27 August 2008

Deliverables: Shared Services Blueprint; Business Case; and Implementation Plan

This Phase will provide development of a single best practice operating model to establish common, simplified and standardised arrangements, on a distributed basis, for all seven NOSLA Councils together with an implementation plan which will include recommendations in terms of phasing and groupings of Councils.

NOSLA - Revenues & Benefits Service - Shared Services Feasibility Study

PROJECT PLAN

N: Report to NSSB

S: Steering Group Meeting/Project Board

Each Steering Group/Project Board meeting to be followed by a staff briefing.

·NBDue to the elections and the links between the SNP manifesto and the Council Tax element of this project the NoSLA board decided to put on hold the project. It was thought by the NSSB and IS at this stage that the project was being withdrawn. This was not the case and has been clarified with both the Improvement Service and the NSSB. As a result this project plan will require updating.

· The councils met on the 3 July and agreed to modify the emphasis of the project to ensure that it is not conflicting with current or future policy regarding Council Tax. There is a very strong commitment to a shared financial service arrangement from the 7 local authorities.

· A project manager has been appointed and the Project Board is on track to meet the revised timescales for appointment of consultants.

Budget-What is the overall budget for the project and how is this to be released? What is the spend to date, is this as forecast?- how much?

The overall budget for this project is £360,000. To date, project costs are on target with no overspend anticipated by project close.

Assumptions

Project Manager to be seconded from 1 January 2008 to 30 September 2008 (FTE 6 months)

Councils are able to provide all data prior to, or during period of, field work.

The structure and management arrangements of the 7 Councils are different. Input resources will therefore vary. For example, some Councils will already have the information available within their Revenues and Benefits Teams. In others, there will be greater reliance placed on their Accounting resources.

Risks-What are the main risks in terms of project management, stakeholder engagement and communications, delivery approach and benefits realisation? What can be done to mitigate against these risks?- what if?

Risks

Impact/

Probability

Actions

That not all LA's will participate

H/L

Engage Directors of Finance and Chief Executives

Review role and suitability of key contacts.

One or more Councils withdraw from the project mid-way, which could require entire re-working of the options.

M/L

Engage Directors of Finance and Chief Executives to clearly articulate the benefits of remaining with the study.

Difficulties within NOSLA, as not all Councils perceive any benefits fro moving to a new system. Impact on viability of any solutions.

H/M

Ensure that the correct criteria are set for the options appraisal and there is clarity.

Parliamentary uncertainty regarding feasibility of delivering a local income tax system, which impacts on decisions regarding re-engineering local income tax collection.

M/M

Ensure that criteria for options regarding revenues are constructed to allow for central changes outside the control of this project.

Staff union opposition to proposed changes

M/M

Engage with staff and unions at an early stage and ensure good communications throughout the project

Existing contractual arrangements present barriers to early adoption of a shared service arrangement

L/H

Include within project remit an assessment of the costs and implications of early termination of existing contracts.

Single Status remains unresolved for some Councils and delays the ability for any re-organisation and staffing changes to take place.

M/H

Consultants will present a range of options based on assessment of existing contracts and potential ways of moving forward considering varying contractual positions of Councils.

Slippage in time-table for the consultancy input into this project leading to delay getting reports completed and decisions made.

M/L

Project Manager will work to ensure that the project schedule is maintained.