| 3 Resource Management |
| Internal Audit |
| 3.1 At the 1997 primary inspection it was
noted that the Chief Finance Officer should not be line manager of the Internal Audit
Unit, since the audit function was under the 'control and direction' of the Chief Finance
Officer. The force point out that a number of public sector organisations operate in
similar fashion and it is clear that the treasurer to the Joint Police Board, and the
external auditors appointed by the Accounts Commission, support this arrangement. |
| 3.2 All stakeholders have an input into the
audit plan and audit reports are distributed to relevant parties. This goes some way to
ensuring independence of action and reporting by the Internal Audit Unit. It is essential
that the Internal Audit Unit operate independently and although the system appears to be
working satisfactorily the force may wish to review the wording 'control and direction'
which is contained in its financial regulations, particularly as the Chief Internal
Auditor is also directly responsible to the Deputy Chief Constable for his functions. |
| Devolved Budgets |
| 3.3 The force is presently examining and
piloting the concept of devolved budgets, allowing divisional financial management and
control of all divisional resources. Emphasis has been placed on ensuring a sufficiently
robust system while minimising additional costs and, as part of the pilot project, both
'E' and 'U' Divisions have Divisional Administration Managers who have a budget manager
role. At the time of the inspection, the project had been running for some 9 months and
HMIC took the opportunity of speaking with a Divisional Administration Manager. It was
evident that a considerable amount of enthusiasm and commitment has been displayed by the
budget holders and their support staff. HMIC strongly supports the concept of devolved
resource management and believes the force has a well developed programme for its
introduction. |
| 3.4 The initial staffing structure for the
duration of the pilot was agreed as being one Divisional Administration Manager, one
Assistant Divisional Administration Manager, one payroll inputter, one pay clerk and one
senior budget officer. It would appear that staff at divisions are being well supported by
the finance department at Force Headquarters and a training course developed by the Force
Training Centre was delivered to relevant divisional staff. The course consisted of a
financial overview for budget holders and their support staff covering the principles of
devolved budgeting and budgetary control. Detailed practical training on the financial
management system was delivered to support staff. HMIC was pleased to note that close
links have been formed between the project group and senior staff at the Force Training
Centre, resulting in a member of the training staff being co-opted onto the project group
to assist in devising a training strategy for future developments. The assistance of
external professional expertise, such as the Chartered Institute of Public Finance &
Accountancy (CIPFA), in the development of future training programmes for senior
management is seen as good practice by HMIC. |
| 3.5 The finance department has been stretched
to provide adequate training and continued support to divisions, and HMIC observes that
the Force will require to ensure that adequate support is available during the further
extension of devolved budgeting. |
| 3.6 The pilot project has also been supported
by information technology through a computerised integrated financial management system
linking the finance department with the pilot divisions. The Commercial Financial
Accounting System (CFACS) can be networked to other divisions as necessary and provides
all the facilities required to support devolved resource management. |
| 3.7 Devolved budgeting appears to have been
well received by senior management within the pilot divisions and it was demonstrated to
HMIC that savings made through good housekeeping have been put to appropriate use through
transfer of monies between budget heads. In one division, for example, monies available
from energy savings have enabled the purchase of distance learning equipment, whilst the
acquisition of word processing facilities for two outlying stations have allowed for
redistribution of support staff workload, increasing efficiency and a reduction in the
amount of overtime required. |
| Best Value |
| 3.8 The importance of the Government's Best
Value Regime was recognised by the Chief Constable at an early stage and a force working
group under the chairmanship of the Assistant Chief Constable (Strategic Support) has been
established to look at the initiative across all levels of police activity. A senior
member of support staff from the force's Finance Department has been effectively seconded
full-time to the working group and, in view of the size of the force, HMIC considers this
initiative to be good practice. |
| 3.9 Achieving best value is also being
demonstrated by the force through the process of contract tendering. The Chief Constable,
in seeking tenders for contracts, is prepared to look beyond local authority services in
ensuring value for money. This is consistent with the Standing Orders of the Strathclyde
Joint Police Board, which do not give local authorities a preferred place in the tendering
process. HMIC supports the Chief Constable in this initiative and would always encourage
an open tender process. |
| Fleet Management |
| 3.10 A review of the vehicle fleet took place
in 1997 and a project team has been established under the Chief Superintendent (Traffic)
to look at the findings and take them forward. At the time of the inspection a strategy
was being developed for vehicle procurement in 1998/99. This takes on increasing
importance as no capital allocation from the budget is available in 1998/99 for vehicle
replacement and one of the options being considered is that of leasing. |
| 3.11 The 1997 Primary Inspection Report
identified that the cutting of capital spending for vehicle replacement is a short-term
solution which stores up greater costs in the long term. Some consideration is being given
to leasing rather than purchase although the force recognises that there may be potential
problems with such a move. Whichever option is chosen, the force is alert to the fact that
it must represent the best value. |
|
