2004/05 SERVICE PLAN (Insert Name of Service)

2004/05 SERVICE PLAN – FINANCE & PROCUREMENT Service Profile

Summary A clear statement of the Service purpose, key procedures and relationships with contractors.

Our purpose is to provide the following functions: Deputy to CFO; Financial control & governance, Budget setting & control; Production of the published accounts and other financial information; Financial advice and project appraisals; Completion of grant claims plus statistical data and questionnaires; Cash/treasury management and banking services; Arranging appropriate insurance cover to protect the Council and its assets and handling around 200 individual insurance claims each year; Pro-actively sponsoring risk management initiatives throughout the Council; Making around 7,200 individual payments to employees & Members each year (via the Payroll) and 20,000 payments to suppliers (via creditors); Taxation (VAT, PAYE and NI); Collection of around 6,000 debts; and the management and development of computer systems needed to provide these services effectively

In addition we undertake the Client function in respect of both the Internal and External Audit services

Since the 1st April 2003 the Unit has had the additional responsibility for establishing a corporate framework for the Council’s procurement activities together with initiating corporate review of procurement arrangement to ensure the Council is receiving the best value for money.

Aims and Objectives A list of the main aims and objectives of the Service, including those critical to its success. Note: The Service Charter should provide a greater depth of detail.

Our objective is to add value to the Borough by providing excellent financial services

Our aims are:-

FINANCIAL FRAMEWORK – Maximising service delivery by encouraging innovation and minimising bureaucracy whilst protecting the public purse FINANCIAL DIRECTION – Challenge and support service developments to ensure financial resources are targeted at the Borough’s needs and objectives PROCESS & SYSTEMS – Continuously improving how we deliver our services by being responsive to customers whilst optimising new technology PEOPLE – Maximise and recognise our team’s contribution through strong leadership, excellent training and focus on performance

Nature of Service List functions and categorise under statutory or discretionary

Statutory Under the Local Government Act 1972 the council must ensure that it has appropriate resource to place to ensure that it discharges its duties lawfully and protect the public purse.

Discretionary The volume of activities in relation to service performance Contribution of Service to Corporation Plan Principal Objectives State which principal objectives are covered by the core service

F i n a n c e & P r o c u r e m e n t 1 As a key central support we contribute either directly or indirectly to the Council’s objectives. Staffing Levels Service Costs 2003-2004 2004-2005 Finance Procurement £ £ No of fte (establishment) = 30 1 EXPENDITURE No of extra fte being sought = Employees 1,089,600 1,260,100 Running Expenses 1,566,900 702,800 No of principal Contractors/Consultants = GROSS DIRECT COST 2,656,500 1,962,900 INCOME (4,333,200) (4,332,900) Note: Detailed information on staffing levels is included in the Human Resources (HR) Plan. NET DIRECT COST (1,676,700) (2,370,000)

F i n a n c e & P r o c u r e m e n t 2 Performance of Service By functional level (e.g. legal, land charges, property) and gross budget. (a) Performance Indicators & Comparators 2002/03 BVPI’s, Local indicators, QoL indicators, BVIP, Quartile and 2003/04 2004/05 2005/06 trend information 2001/02 National 2002/03 Actual Upper Actual Actual Target Target Target Note: Add or delete rows as required. Type key indicators in bold. Quartile (projected)

BVPI8 - Percentage of invoices paid within 30 days 88.4% 94.0% 92.5% 94.0% 94.5% 95.0% 97.0%

Local Indicator - Percentage of debt written off each year as a % of the debt owe in that year (new indicator for 95.0% 96.0% 2004/05 onwards, it excludes recovery of Housing Benefit overpayments and Council Tax). Local indicator – Annual Statement of Account compiled Achieved Achieved Achieved and approved by the 31st September. Achieved – Achieved – Local indicator – To have a ‘clean’ External auditor no no Management Letter and Interim System report. recommend recommend ations ations Local indicator - Annual budget compiled in time for the Achieved Achieved council to set the council Tax within statutory deadlines (b) Volumes Sensitivity, predictions and justifications (trend analysis)

 Increased demand for financial information to be presented to differing levels within the council’s organisational structure i.e. “service” “portfolio “ “area”, “ward” “theme” or “project”

 Re-align the budgets to match the Community and Corporate Plans objectives.

 Ensure that all financial aspects of implementing the Council’s E-Government agenda are achieved. This includes implementation the Financial & Performance Management system, which will involve the complete re-engineering of all financial processes throughout the Council and the introduction of enhanced financial systems that will improve the management of Council services

 Develop and implement an effective culture of “Risk Management” at all levels within the Council were decisions are taken.

 Develop and implement a corporate framework for effective procurement across the Council.

 Set up and establish the corporate procurement resource and begin a programme of reviews to ensure that the Council is getting value for money from current contractual arrangements. (c) Legislative F i n a n c e & P r o c u r e m e n t 3 External drivers which change “steady state” and resources consumed as a result

Local Government Bill / Prudential code Accounts & Audit Regulations 2003

(d) Contracts Existing commitments, timescales, including forthcoming relets and procurement exercises

We manage the following contracts and relationships on behalf of the Council; National Westminster bank (Banking Service) – due for renewal on 1st April 2006 Annual performance agreements with the Investment Managers - these are agreements that can be terminated with 3-notice period, they are reviewed annually based on their performance in the previous financial year. Money Broking firms – these are not under any formal contract or agreement as they are a daily call off service. Price Waterhouse plc – call off arrangement for the provision of specialist taxation advise. Insurance Broker - contract due for renewal 1st April 2005 Deloitte & Touché (Internal Auditors) contract due for renewal on the 1st April 2005 (This is a joint contract with Tandridge DC) Baker Tilly (External Auditors) – these are appointed by the Audit Commission.

Due the coming year the Unit will have to the following procurement exercises

Releting of the Internal audit and Insurance Broker contracts.

F i n a n c e & P r o c u r e m e n t 4 Quality of Life and Partnership Initiatives Community and Corporate Plan contributions Note: QoL and Partnership not Organisational Development – EXTERNAL (i.e. customer facing only).

Requirement: (1) List under each of the seven relevant QoL and Partnership principal objectives contained within the Corporate Plan, each initiative your service is working on (e.g. Caring for the Environment/Improve cleanliness year-on-year with targeted improvements). (2) Against each initiative, list pertinent indicators/outcomes, partners and any consultation undertaken and planned. (3) Against each initiative, list existing commitment of resources categorised by: (i) legal commitment/formal agreement; (ii) Council resolved ‘in principle’; (iii) high level promise (BVPP, Comm/Corp. Plan, Strategy) not yet planned in detail; and (iv) additional central support required. Note: Add or delete rows as required.

Indicators/Outcomes Existing Commitment of Resources Principal Resource Objective/ Partners Bid Initiative(s) Capital Revenue Category FTE Cost Cost Yes/No Consultation Caring for the  Ensure that resources are properly allocated and that Environment resources are effectively used in a lawful way to achieve the objectives.  Provide specific financial support to ensuring that the financial implication of the Priory Park Lottery Bid are fully identified and included within the stage 1 bid. All other part of the Council’s organisation

Safer  Ensure that resources are properly allocated and that Communities resources are effectively used in a lawful way to achieve the objectives.

All other part of the Council’s organisation

Improving Travel  Ensure that resources are properly allocated and that resources are effectively used in a lawful way to achieve the objectives. All other part of the Council’s organisation

Prosperous Local  Ensure that resources are properly allocated and that

F i n a n c e & P r o c u r e m e n t 5 Indicators/Outcomes Existing Commitment of Resources Principal Resource Objective/ Economy resources are effectively used in a lawful way to achieve the Bid Initiative(s) objectives. Yes/No  Provide financial and project management support to the Horley Community facilities scheme (Gladedale) All other part of the Council’s organisation

Balanced  Ensure that resources are properly allocated and that Housing resources are effectively used in a lawful way to achieve the Provision objectives.

All other part of the Council’s organisation

Healthy Living  Ensure that resources are properly allocated and that and Leisure resources are effectively used in a lawful way to achieve the objectives All other part of the Council’s organisation

Working in  Ensure that resources are properly allocated and that Partnership resources are effectively used in a lawful way to achieve the objectives.  Establish the appropriate financial and governance framework to ensure that the council is maximising the benefits from Partnership, whilst minimising the associated risks All other part of the Council’s organisation

F i n a n c e & P r o c u r e m e n t 6 Organisational Development Initiatives Note: Programmes and Projects.

Requirement: (1) List by Programme Area each project your service is working on (e.g. Web, CPA, Single Status, Information Management) categorised under the four areas of our Organisation’s vision: (i) driven by the customer; (ii) improving our performance; (iii) learning and developing; and (iv) optimising our finances and assets. (2) List pertinent indicators/outcomes and partners together with consultation undertaken and planned. (3) List existing commitment of resources categorised by: (i) legal commitment/formal agreement; (ii) Council resolved ‘in principle’; (iii) high level promise (BVPP, Comm/Corp. Plan, Strategy) not yet planned in detail; and (iv) additional central support required. Note: Add or delete rows as required.

Indicators/Outcomes Existing Commitment of Resources Programme Resource Area/ Partners Capital Revenue Bid Project(s) Category FTE Cost Cost Yes/No Consultation Developing our  Part of the core project team tasked with developing an Organisation organisational development plan (Improving our  Supporting the Customer Services Improvement Services) Programme by finding ways of efficiently linking in the financial processes to the customer services process. To be  Establishing and implementing the infrastructure to (ii) No enable the council to accept electronic payments for determined services and debts. All other parts of the Council’s organisation

Internal consultation via working group, 1-2-1’s and CMF Managing our  Leading on the implementation of the Councils Risk Assets (Ensuring Management strategy, ensuring effective linkage with Probity) the Corporate & Service Planning process to enable Additional the minimisation of risks to be key factor in resource £31,000 allocation over the 0.4 fte plus next 3 year  Introducing a ‘compliance’ approach to the work of additional has been Internal Audit that will focus on checking that Service (iii) support from No approved to Units are complying with corporate directs and the Internal fund the guidance, this will help to improve Governance Auditors arrangement and help identify and resolve risks. Internal Audit costs. All other parts of the Council Establishment of a Corporate Group and consultation via CMF and small groups within each Service Unit

F i n a n c e & P r o c u r e m e n t 7 Indicators/Outcomes Existing Commitment of Resources Managing our  Replacement of the Council finance suite of systems, Assets (Ensuring because notice has been received that the platform on Programme Probity) which they are running will no longer be supported by Resource Area/ ICL beyond Nov 04. Bid Project(s) Potential for  The replacement will enable all the financial process to Yes/No be reviewed to ensure their effectiveness and efficiency Cost is part long term for the Council; this might generate significant efficiency (ii) of the E-Gov saving No savings. programme savings. All other parts of the Council Project being undertaken in accordance with the Council’s Project Management Methodology, which included a communication plan. Managing our  Develop and implement a new procurement framework, Cost of Assets that will both provide financial benefits is more efficient Procuremen (Optimising our purchasing and better protect the Council against bad t Officer to Resource Base) procurement practices. be funded  Undertaking full procurement reviews of all areas of from ‘cost purchasing to ensure that the Council is getting the best (ii) 1 FTE savings’ No price and most appropriate deal arising from All other parts of the council and Partner organisations where the linked procurement activities would provide the best benefits. procurement reviews

F i n a n c e & P r o c u r e m e n t 8