Efficiency and effectiveness review programme

Report: 12
Date: 8 November 2001
By: Commissioner and the Treasurer

Summary

This report presents the final report by Accenture on the Transport Review. The Committee's endorsement of the proposed action is sought and Committee note that the budget overspend this year can be contained in future years by savings of £940,000. The report also notes that the Project Board has considered Accenture's performance to date and decided to endorse them for the remainder of the tranche 1 programme.

A. Recommendations

1. Members note the recommendations made by Accenture;
2. That the identified savings be part of the wider MPA/MPS budget savings exercise both in this and the next financial year;
3. That further consideration be given to savings opportunities for hire charges in other Operational Command Units (OCUs) across Special Operations, Deputy Commissioner's Command and Pan-London Territorial Policing and that the MPS brings a further report to this Committee in due course;
4. That the Project Board monitor implementation of the proposals and a report be brought back to this Committee outlining detailed implementation plans to achieve the proposed savings; and
5. Members note that the Project Board has endorsed in principle that Accenture continue for the remainder of the tranche 1 programme.

B. Supporting information

Introduction

1. The Efficiency and Effectiveness Project Board met on 24 October, with Accenture in attendance. Accenture produced, as agreed, the Transport Review Final Report, interim findings from the Financial Devolution Review and interim findings from the Overtime Review.

2. The Project Board (without Accenture in attendance) then briefly reviewed Accenture's performance to date against an agreed set of quality criteria. It was resolved that Accenture continue the remainder of the Tranche 1 review programme.

Transport review final report

3. Appendix 1 is the final report on the Transport Review completed by Accenture. The Project Board has had the opportunity to comment on an initial draft of the report and the final version now incorporates the comments of the stakeholders from the MPA, MPS and GLA.

4. Accenture have identified a number of weaknesses in existing practice, which if addressed could reduce the over-spending on vehicle hire. Accenture have suggested that while the level of savings generated by their recommendations will vary according to the assumptions made and the range of Operational Command Units to which these assumptions are applied, in their judgement £0.94m can be saved in 2002-03 from vehicle hire expenditure across all Boroughs and a more limited number of Specialist Operations/Deputy Commissioner's Command (DCC) units. Further research would be required to determine the level of savings that may be possible from the remaining Special Operations/DCC units and for pan-London Territorial Police functions. Accenture have commented (page 23) that if the same efficiency opportunities exist in these units (which were outside the scope of the sample) then the savings could be of the order of £0.5m, giving a potential of £1.44m pa.

5. Accenture have commented that expenditure on hire has been running ahead of budget in recent years, and the first six months' spend in 2001-02 suggests an outturn of around £6m – an overspend of over £1m (page 3). It is accepted that research is needed into the scope for the additional saving opportunity of £500,000. This should be part of the wider savings exercise now being undertaken to balance the budget for next year. There may also be opportunities for savings in the remainder of 2001-02, but it is suggested that with just over four months left in the financial year that any efficiencies contribute to reducing the level of overspend.

6. The Director of Resources has advised that he is not satisfied that Accenture's recommendation number 8 is correct as his briefing is that there is no payment from the centre for local mini-bus hire. This may be a misunderstanding arising from instances when Public Order vehicles are based at Boroughs in reserve. However, further investigation will follow (including discussions with Accenture) and if local hire is found to be charged to the central budget this will stop.

Financial devolution and overtime reviews

7. It was noted at the last meeting of this Committee that the financial devolution review was assessed as being critical and was being pulled forward. It has been recognised by the Project Board that it would be useful if Accenture were asked to provide an estimate for preparing a piece of work centred around measuring frontline officer deployment, which will enable an informed discussion with the Mayor about officer numbers and their utilisation. It is likely that Accenture will have prepared their proposal by the date of the committee meeting and the Treasurer will update the committee orally with any further information.

8. Interim findings from the overtime review were presented to the Project Board. Accenture are now completing final work to enable them to present their final report to the project Board in late November.

C. Financial implications

1. Budget provision of £1 million has been made in the 2002-03 budget to fund the efficiency and effectiveness programme. Similar sums are to be provided in the following year to finance Tranche 3 of the review.

2. The savings identified by the review should reduce the budget overspend on vehicle hire with immediate effect, and if applied across other units should contribute to the wider savings required to balance next year's budget. Further work on this is to be initiated.

3. Improved managerial controls and information resulting from the recommendations will improve the efficiency of vehicle hiring.

D. Background papers

None.

E. Contact details

Report author: Ken Hunt, Deputy Treasurer.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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