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Responsive Repairs Internal Audit Milton Keynes Council www.milton-keynes.gov.uk/internal-audit RESPONSIVE REPAIRS Internal Audit – Final Report MARCH 2012 MKC INTERNAL AUDIT SERVICE RESPONSIVE REPAIRS EXECUTIVE SUMMARY 1 AUDIT AREA An audit of Responsive Repairs has been carried out in accordance with the annual audit plan. This audit focussed on the work being carried out by Mitie. 2 AUDIT OPINION Good 3 AUDIT CONCLUSIONS 3.1 There has been significant improvement over the past few years in the way that the repairs service is managed. This conclusion is supported by the positive responses received from customer satisfaction surveys. 3.2 From first hand evidence obtained whilst working on site, having the end to end process on the same site, from receiving the customer’s call to the same operator conducting the satisfaction survey, is proving beneficial to all concerned. 3.3 The average cost of a repair, (calculated by dividing the total cost by the number of works orders issued) has increased by approximately 12% on the previous year. This can be explained by works to a property, carried out by Mitie’s operatives, being grouped together on the same works order therefore raising the cost of the individual works order and resulting in fewer works orders being issued. 3.4 There continue to be concerns accurately recording what constitutes a ‘first time fix’. As this is a key measure it is important that this is clarified. 4 THE FUTURE 4.1 All actions are in the Management Action Plan (Page 5). Detailed findings from the audit are reported within the Main Report in Section 7. 4.2 Agree an appropriate definition for ‘first time fix’ to enable accurate monitoring information to be obtained ultimately leading to an improved service all round. AUDIT REPORT – E139/12/jt 1 MARCH 2012 MKC INTERNAL AUDIT SERVICE RESPONSIVE REPAIRS MAIN REPORT 5 BACKGROUND INFORMATION The Responsive Repairs service is managed by Mouchel, the Council's partner. The service is responsible for maintaining and repairing the Council's housing stock and its objective is to provide a good service to the customer at a low cost. Tenants are informed at the beginning of their tenancy of items that the Council will repair/replace and those that are their own responsibility. Mitie have been contracted to carry out the majority of the repairs. Contracts with other companies exist for specific items such as window replacement and central heating. Operating arrangements have been reviewed as part of the Council-wide Working Better Together project with Mouchel. Contract negotiations, led by Mouchel, resulted in the existing contract with Mitie being extended, initially for one year from April 2011 to March 2012 to allow negotiations to take place and then, once these were successfully completed, a further extension to 31 March 2016. Mouchel and Mitie staff are all based in a central location which facilitates a co-ordinated approach to the repairs service from initial contact with the tenant to conducting a satisfaction survey when the repair has been completed. Responsive Repairs has an annual budget of approximately £6.1m Council Housing Stock as of January 2012 Dwellings 11,453 Garages/Carports 2,900 Shops 80 Other commercial property 20 Leasehold properties 1,555 Year 10/11 Year 11/12 Apr - Dec Average responsive job cost £ 68.18 £77.69 Average days to complete a reactive 12.9 8.8 repair AUDIT REPORT – E139/12/jt 2 MARCH 2012 MKC INTERNAL AUDIT SERVICE RESPONSIVE REPAIRS 6 AUDIT AREAS AND AUDIT SCORE Appropriate arrangements are in place, and operating as intended, a) to manage the responsive repairs contract. (Performance Management) Management information is appropriate, reliable, accurate and b) timely. (Performance Management) The responsive repairs service meets the needs of its customers. c) (Service Delivery) Repairs are authorised, conducted, paid and accounted for d) appropriately. (Assurance) The current working arrangements are efficient and cost-effective e) (Value for Money) Key: 1 = Poor, 3 = Good 7 DETAILED FINDINGS 7.1 Testing took place at the Repairs Centre in Bletchley during December and January and covered the period April to December 2011. Relevant MKC, Mouchel and Mitie officers were also interviewed. 7.2 POSITIVE FINDINGS 7.2.1 Performance Management The central location of all aspects of this service assists communication and the avoidance of protracted delays for the tenant . Mouchel staff sample check Mitie’s charges for accuracy and completeness on a regular basis. 7.2.2 Service Delivery Information retained on the Housing (Northgate) database, e.g. additional time to allow the door to be answered, assists staff and operatives. Appointments are made at a time to suit the tenant as call centre staff have access to Mitie’s work programme. Customer satisfaction surveys are reviewed and action taken where appropriate. The high positive response to these surveys indicates that there has not been any decline in the quality of the service despite the contractually negotiated savings. AUDIT REPORT – E139/12/jt 3 MARCH 2012 MKC INTERNAL AUDIT SERVICE RESPONSIVE REPAIRS 7.2.3 Assurance A walkthrough test of a sample of 5 works orders from initial call to completion of the works showed that charges had been correctly allocated. 479 Satisfaction Surveys were reviewed, taken between 2 December 2011 and 3 January 2012. Of these 430 (90%) stated that they were satisfied with the service. Trends and reasons for dissatisfaction are reviewed and followed up. 7.2.4 Value for Money Review of the centrally based supplies depot and change of materials supplier has resulted in improved timeliness as materials can now be delivered direct to the operatives on site. Mitie are aware of the location of their operatives and the length of time that operatives report each job will take when they first arrive on site. This helps to improve productivity. 7.3 AREAS FOR IMPROVEMENT 7.3.1 Performance Management Business Continuity Plan - there is no plan in place to maintain services in the event of a major commercial failure of contractors. ‘Keystone’ - the asset database is not being updated in respect of relevant works carried out as responsive repairs. It is acknowledged that there are a range of views on what is a ‘first time fix’. However, if the standard of the service is to be judged using this criteria then the information relating to this part of the repairs service needs to be accurate. AUDIT REPORT – E139/12/jt 4 MARCH 2012 MKC INTERNAL AUDIT SERVICE RESPONSIVE REPAIRS MANAGEMENT ACTION PLAN The Agreed Actions are categorised on the following basis: Essential - Implementation is required to address a risk that fundamentally undermines the control or objective of that system. Important - Implementation is required to address a risk that seriously undermines the control or objective of that system. Standard - Implementation is required to address a risk that undermines the control or objective of that system. Ref. Findings Risk/ Agreed Action Management Manager Responsible & Implication Comments (Target Date) Performance Management Important Agreed Informal arrangements Partnering There is no Business Continuity Plan in Service disrupted. Review current status of delegations are in place at the moment Manager place to maintain services in the event of a Statutory services and permissions with Corporate Housing and 1. commercial failure of a contractor not carried out. Procurement and discuss at core Community group Draw up an Action Plan based Group on findings which will be acted upon as 30 June 2012 appropriate (Action Plan in place) Standard Agreed We are aware of this gap Asset Manager Keystone, the database containing details MKC unaware of Implement existing plan to in data and the affect of the condition of all properties 2. of all council properties is not being the condition of all automatically update Keystone with 31/03/2013 updated in respect of relevant work carried its properties. supplementary manual entry where it out as responsive repairs provides significant benefit. Misleading Standard Agreed. All agree that this is Head of Assets It is difficult to determine what is a ‘first time performance Agree an appropriate definition and currently unsatisfactory and Strategy 3. management fix’. However, if the standard of the service how to use resulting information is to be judged using this criteria then the information 31/03/2012 information relating to this part of the repairs service needs to be accurate NB Any cost implications arising from implementation of the actions by Mouchel must be agreed in advance with the appropriate Client Officer and the Partnership Delivery Manager AUDIT REPORT – E139/12/jt 5 MARCH 2012 E139/12 - RESPONSIVE REPAIRS Final Report Distribution List Head of Assets & Strategy, Housing and Community Group Partnering Manager, Housing and Community Group Performance Improvement Officer, Service Delivery Manager, Property & Transport, Mouchel Building Services Manager Copied to Corporate Director, Resources Assistant Director, Finance Audit Manager (Audit Commission) Lynda Baker – Head of Internal Audit Joyce Taylor - Auditor www.milton-keynes.gov.uk/internal-audit Milton Keynes Council T 01908 252753 Civic Offices F 01908 252238 Available in audio, large 1Saxon Gate East E [email protected] print, Braille and other Central Milton Keynes W www.milton-keynes.gov.uk/internal languages MK9 3EJ audit Tel 01908 252753 .
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