1 Improvement and Efficiency Benefits Realisation 22 nd March 2012 Theresa Grant Acting Chief Executive Trafford Council

2 Background New programme and gateway process approved April 2011 Identified Target of £58-£116m efficiencies to be delivered across AGMA Authorities Comprehensive Spending Review-greater pressure on LA Budgets and Resources increased the need to deliver cashable savings. Local Authority budget reductions have impacted significantly some of the I&E projects which are now more focussed on providing a resilience resource to maintain current level of service rather than drive out further efficiencies as authorities have already withdrawn funding from their own budgets. Realignment of the I&E Programme to support Public Service Reform (Charlotte Clark, Business Analyst 2 days/week; Neil Shortland, Management Accountant 3 days/week; Vicky Sharrock, Programme Manager 4.5 days/week). Programme will help LA’s to deliver their savings targets for 2012/13

3 Progress AGMA playing a key role in developing mechanisms where the authorities’ savings can be delivered with less impact on services through: –Joint procurement of goods and services –Sharing ideas and savings options that are transferable from one council to another –Creating coalitions of the willing – either through two councils coming together on many services or opportunistic collaboration on a service by service basis –Overseeing politically and managerially so savings are delivered in practice Projects at different developmental stages, working to final business case- Property and Asset management, Adult Residential Care Pricing Framework, Adults Equipment Procurement Move to a cluster delivery model- ICT, Corporate Support Services, Procurement and Customer projects Working to ensure that apportionment of savings is done in a proportionate and appropriate manner. Continuing to develop cluster arrangements with appropriate organizations

4 Progress Benefits Realisation Process established Each Local Authority completing Benefit Profiles for each Priority Theme Work ongoing with colleagues across each authority to track the benefits, identified and realised for each workstream. Designed process for gathering and validating benefits data from each authority.

5 Update Of Projects- Tier 1 Tier 1 AGMA unallocated TfGM GM Police GM Fire Cheshire East Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Warrington Wigan Procurement and Commissioning     Adults Residential Care P PPPPP PPP Community Equipment  p  pp p  pp Children's LAC Procurement PPPPPPPPPPP Placements and Admissions ppppppppp School improvement ppppppppp p ICT ICT Strategy Options p p  pppppp p Corporate Support Services Procurement  

6 Update Of Projects- Tier 2 Tier 2 AGMA unallocated TfGM GM Police GM Fire Cheshire East Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Warrington Wigan Workforce Development AGMA Wide centre of excellence for Training   E-Learning   Training procurement Framework   Transport FMU- Mgmnt and Admin costs   VPMM Procurement    Customer Contact Strategic Options-Shared knowledge   Strategic Options-Shared procurement pp  p  p  p  p  Property Property and Asset Management p pppppppppppp Income Generation   

7 Savings Identified- Tier 1 Savings Target 2011/12 Savings Target 2012/13 Savings Target 2013/14Total £'000 Procurement and Commissioning projects 5,5008,70010,80025,000 LESS Projects included in the services below 9077, ,287 Cross cutting Procurement projects 4,5931,07610,04415,713 Tier 1 £'000 Adults Residential Care 3,100 Community Equipment 300 Children's LAC Procurement 3,400 Placements and Admissions 548 School improvement 500 Other Collaborative Work ICT ICT Strategy Options 3,400 Corporate Support Services Procurement 1,000 28,786

8 Savings Identified- Tier 2 Savings Target 2011/12 Savings Target 2012/13 Savings Target 2013/14Total Tier 2 £'000 Workforce Development AGMA Wide centre of excellence for Training00423 E-Learning 427 Training procurement Framework0190 Transport FMU- Mgmnt and Admin costs 456 VPMM Procurement ,047 Home to School Customer Contact Strategic Options-Shared knowledge 1,500 Strategic Options-Shared procurement 0 Property Property and Asset Management 1,8001,8103,610 Income Generation ,306 Other collaborative work 2,4231, ,593 14,052 Summary Cross cutting Procurement projects 4,5931,07610,04415,713 Tier , ,073 Tier 2 4,2916,9222,83914,052 Overall Total Identified 8,93920,61613,28342,838

10 Savings Realised The I & E programme has delivered £12.2m in the years 2009/10 & 2010/11 from the Procurement Hub and earlier projects. The I & E programme is expecting to deliver a further £9.2m of savings in 2011/12. The following Chart and pie charts display the achieved savings by project for prior years and for the current year (see pages 12 to 13). The AGMA collaborative programme projects a further £20.6m of savings in 2012/13 and £12.6m of savings in 2013/14 and the chart on page 15 shows the projected distribution of these savings The AGMA collaborative programme has a potential optimum savings of £54.6m. The £54.6m needs to be shown as a %age of expenditure

11 Non Financial Benefits Add examples e.g. resilience, cost avoidance (e.g. adults)

12 AGMA Realised savings to date Realised Savings 2010/11Realised Savings 2011/12Total Tier 1£'000 Procurement & Commissioning 5,7645,32111,085 LESS Projects included in the services below 2,6992,8865,585 Cross cutting Procurement projects 3,0652,4355,500 Tier 1£'000 Adults ,505 Children's 1,7501,3173,067 ICT 291 Tier 2£'000 Workforce Development 0 Transport 421,0581,100 Property 00 Income Generation 836 Other Collaborative Work 02, Total savings realised5,7649,28114,919

13 AGMA Savings Realised in 2009/10 & 2010/11 (in £’000s)

14 AGMA Savings realised in 2011/12 (in £’000s)

15 Savings Target 2012/13 Savings Target 2013/14 Cross cutting Procurement1,07610,044 Adults3,4000 Children's4, ICT3,4000 Corporate Support Services1,0000 Workforce Development Transport9710 Customer Contact1,5000 Property1,8001,810 Income Generation4700 Other collaborative work1, ,61612,677

16 Procurement Hub Savings realised in 2011/12 Procurement Hub Savings Savings realised in 2011/12 Adults-Community Equipment114 Adults Domiciliary/Residential Care813 Children's Residential Care1175 Children's Foster Care100 Childrens-16+ Accommodation Framework112 Workforce Dev-Training Courses50 VPMM-Fuel22 VPMM-Purchase of Refuse Collection Vehicles709 VPMM-Driver Training32 VPMM-Vehicle Contract Hire50 VPMM-Fleet lease extension250 VPMM-Fleet Management software7 Taxi Procurement350 Mobile phones496 Greengrocery/Frozen Foods544 Spendpro - AGMA Councils19 Spendpro - Rollout to sub regions71 Street Lighting Connections274 Temp Agency staff - Commensura contract126 Cleaning and Janitorial Supplies7 5321

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18 Next Steps Continue to identify and track benefits and refine process based on outcomes of the consultation with the Commission regarding the re-categorisation of the current work streams within the Programme