city treasurer’s – accountancy

FOR INFORMATION ONLY

Source: CIPFA Accountancy Benchmarking Club 2006

City Treasurer’s – AccountancyCost per £k of gross expenditure:

NCC (£)

Benchmark Lower Quartile (£)

Benchmark Average (£)

Financial strategy and advice 0.36 0.49 0.79

Preparation of budgets and accounts

2.38 2.84 3.45

Other (e.g. technical research and projects, systems support and treasury management)

1.01 0.85 1.21

TOTAL 3.74 4.39 5.45


Source: CIPFA Internal Audit Benchmarking Club 2006

City Treasurer’s – Internal Audit

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Co

sts

per

£m

Gro

ss E

xpen

dit

ure

(£)


City Treasurer’s – Insurance

Lowest unit cost per claim handled (i.e. £290) when compared to other core cities


City Treasurer’s

Use of resources scores

2005 2006

NCCNearest

Neighbours Mean

NCCNearest

Neighbours Mean

Financial reporting 2 2.1 2 2.3

Financial management 2 2.3 3 2.5

Financial standing 2 2.4 3 2.7

Internal control 3 2.0 3 2.6

Value for money 2 2.1 2 2.3

FOR INFORMATION ONLYSpend

Per

form

ance

XNo change from

previous year


City Treasurer’sTemporary increase in resources to improve efficiency andeffectiveness (spend to save):• Accountancy transformation programme (e.g. corporate budget

monitoring tool) – transformation fund• Increased focus on improving strategic capital and asset

management process – transformation fund• Increased focus on improving VFM and efficiency – transformation

fund and internal prioritisation• Income and debt management project – treasury management

savings• Additional investment in IT audit and anti-fraud and corruption audit

– corporate growth and transformation fund• Additional investment in contract management – transformation fund

and then self-funding


Organisational Development

NCC Benchmark Average

Ratio of HR staff to all employees* 1:105 1:87

HR staff cost per employee (lower middle quartile = £262)*

£246 £338

HR cost proportion of pay bill (lower middle quartile = 1.43%)*

1.37% 1.81%

Gross training expenditure as proportion of pay bill

1.2% 1.3%

* Source: DLA Benchmarking Club 2006


• Improved sickness absence (i.e. 13.4 days in 2002/03 and 10.6 days in 2006/07)

• 26% reduction in major injuries from 2005/06 to 2006/07

• 14% reduction in accidents resulting in over 3 days absence from 2005/06 to 2006/07

• Improved diversity PIs• Improved staff survey results (i.e. 32 ratings

higher and 7 ratings lower)• 9,000+ employees trained in E&D• 800+ managers trained on NMP



• Good employee relations• Budget workforce reduction implemented

successfully each year• 2,300 equal pay claims settled• Single Status phase 1 delivered and phase 2

progressing wellBut• Does not have controlling impact on Council wide

workforce PIs; and• BVPIs do not reflect much of OD Service (Safety,

Training, Single Status)



Workforce BVPIs2005/06 Nearest

Neighbours2005/06 Core Cities

Rank (out of 8)

BV11a % of top 5% of staff who are women

2nd quartile 3rd

BV11b % of top 5% of staff who are BME Bottom quartile 8th

BV16a % of employees with a disability Top quartile 1st

BV17a % of employees from BME community

Bottom quartile 8th

BV14 % of employees retiring early 2nd quartile 4th

BV15 % of employees retiring on grounds of ill health

Top quartile 1st

BV12 days sickness absence FTE 3rd Quartile 5th


Per

form

ance

X Workforceindicators

X OrganisationalDevelopment


Per

form

ance

X Combined

No change fromprevious year



• Enabling further manager self-service through modernising HR and health and safety intranet sites and training

• Improving efficiency of HR procedures following completion of single status pay and grading review in 2008

• Continue to optimise benefits of SAP HR system


Policy and Performance

Average spend per head of population slightly under benchmark average consisting of Bristol, Birmingham, Leeds, Liverpool, Manchester, Sheffield, Nottingham, Gateshead and North & South Tyneside (based on existing population data)

No single cost yet identified on all policy/research across Newcastle City Council. Efficiency to be achieved.


Policy and PerformanceSelf-

assessment

Development of policies in priority areas – are we ahead? 3

Level 3 of the ESLG achieved and improving 3

LSP annual performance assessment at amber/green and improving 3

69% BVPIs show improvement (above average) 3

Economic indicators of regeneration strategy and corporate plan (i.e. employment participation levels, total number of jobs and GDP per capita)

2

Profile – influence in multi-partner areas of work (i.e. RESAP and City Region) 3

Involvement in other networks (i.e. chair of EuroCities Social Welfare Committee) driving the CR agenda, development of Science City and CDC

3

Level of change in the organisation as a result of policy development (e.g. CDC) 3


Per

form

ance

XNo assessment for

previous year


Policy and Performance

• Corporate review – opportunities for new ways of joining policy, analysis and delivery

• Need for increased emphasis on research/analysis, and economic and social policy

• Strengthening of economic policy with appointment of Head of Service


Community Development

LocalAuthority

Budget – CD Population Per capita

Aberdeen 1,250,000 212,125 5.89Burgess Hill 51,000 28,650 1.78Harlow 385,000 78,000 4.93Ipswich 120,000 118,200 1.01Kirklees 479,000 394,600 1.21Newcastle 1,100,000 276,400 3.97Middlesbrough 690,000 137,600 6.68Newham 1,680,000 246,200 6.82Slough 150,000 117,500 1.27South Somerset 270,000 156,100 1.72Southwark 1,000,000 257,700 3.88Tameside 120,000 214,100 0.56

Source: DCLG CD LA Audit: Exercise Jan 2007 –Author Colin MillerLA’s named have most comparable delivery models to Newcastle



• Steadily improving satisfaction levels with Members and directorates

• Integral support to participatory budgeting pilots and delivery of new corporate engagement strategy

• Links the development of corporate policy to grass roots community issues (i.e. regeneration strategy)


Per

form

ance

XLimited comparative

performance data – noassessment forprevious year



• Young Foundation work on neighbourhoods next steps agenda – opportunity for further evolution of the Community Development function

• Making further savings in 2007/08 and completing transformation process

• Will be playing a leadership role in inclusion/engagement in 2007/08 (e.g. participatory budgeting and community development programme)

• Corporate review of community development activity across whole organisation to be led by Deputy Chief Executive


Communications and Marketing

• No spend comparators available as each authority measures and defines its communication/marketing functions very differently, so comparison undertaken instead against a benchmarking club covering 43 other authorities

• Comparison covers one comparable cost indicator (Council magazine/newspaper) and five comparable quality indicators (two for communication with residents and one each for internal communication, strategic influence, and corporate consistency)


Per

form

ance

XNo assessment for

previous year


Communications and Marketing

• A step change in internal communications is in hand, although this will require further resources to fund a staff newsletter to become fully embedded

• A significantly enhanced marketing function to promote change in public behaviour in key priority areas is also in hand (although this will have limited direct impact on the team’s own performance indicators, and impact more on other services)


Corporate Business Management

• Comparative data has been obtained by direct contact with core cities, Tyne & Wear and Nearest Neighbours to a lesser extent

• Cost comparisons are based on staffing structures where available, however, structures in other local authorities often differ

• Performance data is generally derived from CPA use of resources scores

• Data is not available for all services in both dimensions



Comparative Spend Comparative Performance

Business management n/a Above median

Programme and project management/major projects

Below median n/a

Risk management Above median Above median

Procurement and efficiency n/a n/a

Asset management n/a Above median

Information governance Bottom quartile Bottom quartile



• Improved CPA Use of Resources overall score from 2 to 3 for the financial year 2005/06, which also included achieving an improved score of 3 for asset management

• Managed the Council’s engagement with the corporate assessment inspection process

• Ensured CXO met the requirements for Level 3 of the Equality Standard for Local Government

• Played a key role in ensuring that the Council achieved Level 3 of the Equality Standard for Local Government

• Developed strong programme management structures for the Children’s Services transformation programme

• Played a key role in the management of the MTP process


Per

form

ance

XNo assessment for

previous year



• To build on contacts with other local authorities in comparator groups to encourage more robust benchmarking for 2008, however, it must be acknowledged that differences in Council structures make this difficult

• Measures of performance beyond CPA data, such as benchmarkable customer satisfaction surveys, will be developed

• External review to be commissioned to validate value for money and benefits realised


Exchequer Services – Payroll


Net cost per employee (bottom quartile)

£26.70 £54.80

Net cost per payslip (lower middle quartile)

£3.44 £4.03

Payroll errors 0.04% 0.18%

Source: CIPFA Payroll Benchmarking Club 2006


Per

form

ance

X

XLast year’s assessment

covered ExchequerServices as a whole


Exchequer Services – Payroll

• Focus on greater potential automation (e.g. DMS)

• Focus on non-staff costs (e.g. e-pay slips)

• Continue to optimise investment in MSS


Exchequer Services – Debtors and Creditors

NCC (£)

Benchmark Lower

Quartile (£)

Benchmark Average (£)

Creditors – cost per invoice paid/processed (staff cost is £0.88 below average)

2.31 1.36 2.10

Debtors – cost per invoice raised (staff cost is £3.02 below average)

4.04 6.09 9.25

Source: CIPFA Debtors/Creditors Benchmarking Club 2006


Exchequer Services – Debtors and Creditors


Average number of days taken to collect cash (lower middle quartile)

56 76

Proportion of invoices paid on time (lower middle quartile)

88% 89%


Per

form

ance

X

X

Debtors

Creditors

XLast year’s assessment

covered ExchequerServices as a whole


Exchequer Services – debtors and creditors

• Debtors – new income and debt management system (due to go live in autumn 2007) and policy will further improve performance

• Creditors – 2007/08 year to date performance ahead of target plus implementation of payment cards will assist in the reduction of staff costs


Benefits

Source: CIPFA Finance & General Statistics 2007/08

0

5

10

15

20

Live

rpoo

l

South

ampt

on

Coven

try

Man

ches

ter

Kings

ton-

upon

-Hull

Derby

Nottin

gham

Gat

eshea

d

Wolve

rham

pton

Bristo

l

Sheffie

ld

Newca

stle-

upon-

Tyne

Stoke

-on-

Trent

Salfo

rd

Mid

dlesb

roug

h

Peter

boro

ugh

Live

rpoo

l

Man

ches

ter

Leed

s

Nottin

gham

Birming

ham

Bristo

l

Sheffie

ld

Newca

stle-

upon-

Tyne

North

Tyn

eside

Gat

eshea

d

South

Tyn

eside

Newca

stle-

upon-

Tyne

Sunde

rland

Sp

end

per

to

tal p

op

ula

tio

n (

£)


Benefits


CPA rating for benefit fraud (out of 4) 4 3.6

Income generated from prosecutions and sanctions

£4.40 per case £3.90 per case

Number of fraud investigations per member of staff

52 35.8

Cost per case (staff costs £8.70 below average)

£65.80 £76.40


2005/06 nearest neighbours

2005/06 core cities

Claimants visited per 1000 caseload (BV76a)

Lower middle quartile 6th

Fraud investigations per 1000 caseload (BV76c)

Top quartile 1st

Prosecutions and sanctions per 1000 caseload (BV76d)

Upper middle quartile 2nd

Average time for processing claims (BV78a)

Top quartile 1st

Average time for processing changes of circumstance (BV78b)

Top quartile 4th

% cases processed correctly (BV79a) Top quartile 2nd

% overpayments recovered (BV79b) Bottom quartile 8th

Benefits


Per

form

ance

XX

2006/07

2007/08


Benefits

• Cost of staffing will fall as a result of restructure in April 2007

• Rationalisation of office accommodation

• Fraud performance will be maintained over the next year

• Processing claims will significantly improve


Revenues

Source: CIPFA Finance & General Statistics 2007/08

0

10

20

30

40

50

Live

rpoo

l

Man

ches

ter

Newca

stle-

upon-

Tyne

Salfo

rd

Wolve

rham

pton

Bristo

l

Kings

ton-

upon

-Hull

South

ampt

on

Nottin

gham

Mid

dlesb

roug

h

Derby

Gat

eshea

d

Coven

try

Stoke

-on-

Trent

Sheffie

ld

Peter

boro

ugh

Live

rpoo

l

Man

ches

ter

Newca

stle-

upon-

Tyne

Bristo

l

Nottin

gham

Birming

ham

Leed

s

Sheffie

ld

Newca

stle-

upon-

Tyne

North

Tyn

eside

Sunde

rland

South

Tyn

eside

Gat

eshea

d

Sp

end

per

to

tal p

op

ula

tio

n (

£)


Revenues

2004/05 2005/06 2006/07

*Council Tax collected in year (BV9) 94.7% 94.3% 95.5%

Core Cities relative position 5th 4th 4th

Nearest Neighbours quartile position Upper middle

Lower middle

Upper middle

NNDR collected in year (BV10) 97.2% 97.0% 98.3%

Core Cities relative position 6th 7th 6th

Nearest Neighbours quartile position Lower middle

Bottom quartile

Lower middle

*After compensating for deprivation according to DCLG (ODPM) methodology, the Council is in the top quartile


Per

form

ance

X

X

X

Council Tax –adjusted fordeprivation

Council Tax –not adjusted

for deprivation

NNDR


Per

form

ance

X 2007/08 –combinedX

2006/07


Revenues

• Cost of staffing will fall as a result of restructure in April 2007

• Council Tax recovery and NNDR will both continue to improve over previous years targets and comparator organisations

• Rationalisation of office accommodation


ICT Services

Lower middle quartile

Median Upper middle quartile

NCC

Cost of connection to voice network

£28.00 £65.50 £121.50 £29.00 (i.e. lower middle

quartile)

Cost of connection to data network

£62.50 £94.50 £172.75 £47.00 (i.e. bottom quartile)

Support cost per workstation

£117.75 £177.50 £245.50 £153.00 (i.e. lower middle

quartile)

Acquisition cost per workstation

£599 £662 £727 £601 (i.e. lower middle)

Source: SOCITM 2005/06 National Benchmarking Survey


ICT Services

Lower middle quartile

Median Upper middle quartile

NCC

Proportion of calls resolved in agreed time

76.5 86.0 93.0 81.4 (i.e. lower middle)

Proportion of successful projects

74 82 86 89 (i.e. top quartile)

Workstations supported per specialist

119.0 177.5 245.8 228.04 (i.e. upper middle

quartile)

Source: SOCITM 2005/06 National Benchmarking Survey


Per

form

ance

X 2007/08 –no change


ICT Services

• ICT enabling business transformation across the Council

• ICT investment strategy• 2006/07 benchmarking results due in August • Continuous improvement: - Review of disaster recovery - Server rationalisation - Review of S&M contracts - Implementation of ITIL


Nearest Neighbours median = £17.91NCC cost = £14.30

therefore cash difference = £998k

0

5

10

15

20

25

30

Sp

en

d p

er

tota

l p

op

ula

tio

n (

£)

Mid

dles

brou

gh

Sal

ford

Kin

gsto

n-up

on-H

ull

Wol

verh

ampt

on

Live

rpoo

l

Sou

tham

pton

Cov

entr

y

Not

tingh

am

Der

by

Pet

erbo

roug

h

Bris

tol

Gat

eshe

ad

New

cast

le u

pon

Tyn

e

Man

ches

ter

Sto

ke o

n T

rent

She

ffile

d

Public Health & Environmental Protection


Self Assessment Performance Rating: GOODNo core budget used to manage the Licensing Act 2003, the Gambling Act 2005 and Housing HMO Licensing

05/06 06/07 Ranking/Direction of Travel

Financial Position of Service

3rd Quartile 4th Quartile Positive

Requests for Service

(3 day response)

12142 annually

86% response

13462 annually

87% responsePositive

Fixed Penalty Notices

Litter, Dog fouling etc

513 (total)

4/16 nearest neighbours (4th Quartile)

(Defra)

2196 (total)

(estimate 4th Quartile) Positive

% Fixed Penalty fine collected

75.3%

2/16 (Defra) (4th Quartile)

75.0%

(to be advised) (Defra)

T.B.A.

Fly Tipping Enforcement performance

N/A

2nd core cities

2nd nearest neighbours

1st Tyne and Wear

(Defra)(4th Quartile)

Very Effective (Defra category)

2nd core cities

2nd nearest neighbours

1st Tyne and Wear

(Defra – interim judgement)

Positive



05/06 06/07 Ranking/Direction of

Travel

Noise complaints 3269 annually

88% satisfaction

(by survey)

4488 annually

92% satisfaction

(by survey)

Positive

High Risk Food Premises Inspection

98%

3rd quartile (nearest neighbours/Core Cities)

Food Standards Agency sourced

95%

Food Standards Agency figures not yet available T.B.A.

Trading Standards Inspection of High Risk Premises

100%

Top quartile (all categories)

(CIPFA)

100%

Top quartile (all categories)

(CIPFA)

Positive




• VFM Improvement Plans

– Development of flexible deployment of CCTV enforcement and air quality monitoring

– Implementation of “Scores on the Doors” for food business

– Proceeds of Crime Legislation developed

– Accreditation Scheme in partnership with University.

– Partnership with Your Homes Newcastle regarding night-time noise enforcement

– Improve customer front end – licensing/accommodation

– Incorporate 24 hour response service for other disciplines alongside the 7 day night time noise service

– Review all “licensing” income overhead

– Risk assessment across all disciplines in line with LBRO guidelines


Per

form

ance

X

Expected to maintain position

into next year

X

X

Combinedfor 2007/08

Consumer protection – 2006/07

Public health – 2006/07


Legal Services

Local Authority Net Cost of Service (£k) Net Cost per Head of Population (£)

NCC 2,840 10.27

A 7,034 9.73

B 2,588 11.66

C 17,638 17.62

D 1,875 6.61

E 2,621 13.69

F 2,279 10.53

Source: internal benchmarking with nearest neighbours and core cities 2007


Legal Services

• The HouseMark ALMO benchmarking club recently compared support costs of the 48 ALMOs in existence across the country. The average cost of legal services provided to YHN were the 8th lowest at £39 per hour

• The average cost of right to buy completions is £151. This is less than that charged by our external partners which was £160 and £175 per standard completion


Legal Services

Financial Year NCC Quartile

2005/06 99.97% Lower middle

2006/07 96.04% n/a

2007/08 (to date) 99.42% n/a

BV179 – percentage of local land chargesearches completed within ten working daysof receipt:

Internal customer ratings on timeliness andquality of advice is satisfactory (June 2007)


Per

form

ance

XLimited comparative

performance data – noassessment forprevious year


Legal Services

• In terms of comparative spend the aim is to maintain this at its current level notwithstanding the increased demands on the service as a result of the Council’s ambitious programme of regeneration and development for the next 15 years

• There is no national local authority benchmarking data for legal services. To date it has not been possible to compare in-house performance data (e.g. average cost per case) with that of other local authorities because service definitions and cost calculations vary so widely

• Initiatives are currently being developed to remedy this via the core cities and a national network of local authority solicitors


Democratic Services Managers

• Although staff levels joint highest the number of formal meetings serviced is highest at 783 (Gateshead 2nd at 539)

• Number of formal meetings per staff member/Councillor highest

• Number of school appeals serviced highest• One of only three local authorities also preparing traffic

orders (major increase since 2005/06)• Increasing support for partnerships (LSP, strategic

commissions) and company secretary role (Eldon Square, Science City)

• High satisfaction rates amongst SLA clients


Scrutiny

• 4.4fte compared to national average of 5• 2007/08 working budget = £7k (survey average =

£23k)• 6 non-statutory external members (survey average =

2.5)• 75 external witnesses called (survey average = 21)• 96% of recommendations accepted (survey average

= 83%)• Significantly higher volume of call-ins• Customer satisfaction tests exceed survey average


Electoral Services

• 4fte (joint lowest T&W, electorate 2nd highest)

• 67,294 postal voters (35% = highest in UK)

• 2007 turnout 2nd highest in Tyne & Wear

• Response to 2006 canvass second lowest

• Joint procurement of election stationery and advertising campaign since 2006 – carried forward to 2007 canvass and 2008 elections


Registrars

• Second lowest net cost in region despite providing extra services (e.g. Nationality Checking Service and Designated Register Office)

• Volume of birth and death registrations highest

• Citizenship applications and civil partnerships highest (469 and 64 – Durham 2nd highest 141 and 42)

• New structure/working practices since 1 April 2007 – Newcastle only Council offering full 6 day week service

• Income from certificate sales increased 11% over past year

• Formal customer service monitoring procedures in place - March 2007 survey confirms 91% clients felt service excellent


Per

form

ance

XNo change from

previous year


Democratic Services

• Increased joint working with other local authorities to maximise VFM and adopt best practice

• Electoral Commission’s efforts to promote Electoral Services benchmarking failed – Council to take lead in 2007/08 in setting up local group

• Council have led Registrars benchmarking group since 2005/06

• Active member of regional/national groups for Admin Services, Lord Mayors, Complaints and Scrutiny

• Ongoing efficiency measures to free up resources to meet increasing demand


Customer Service Centres

NCC Ranking

Satisfaction with the way staff dealt with enquiries

100% Joint 1st

Satisfaction with waiting times 99% Joint 3rd

Overall satisfaction 100% Joint 1st

Operational cost per customer (including accommodation)

£7.57 2nd lowest

Operation cost per customer – staff only

£3.19 2nd lowest

Source: National Customer Services Benchmarking Group – 17 members


Contact Centre

NCC Ranking

Number of calls offered 194,000 4th

Number of calls answered 151,000 5th

Average wait for answer 3.2 minutes 41st

Call duration 4.2 minutes 29th

Calls answered per FTE 6,028 5th

Source: National Local Authority Call Centre Benchmarking Group – 44 members


Cashiering

Year Cost of Service

(£m)

Number and cost of

transactions

Access Customer satisfaction

2003/04 1.6 1,001,724

£1.56

23 locations

8:30 – 4:00

(closed Wed pm)

Not available

2006/07 1.0 1,153,568

£0.88

267 locations in Newcastle and

12,000 nationally

96%


Per

form

ance

X


Customer Services

• CSCs – completion of PFI programme with opening of the final 3 primary centres within next 14months. Over 650,000 customers expected in 2009 with satisfaction levels of over 90% retained and improved targets re first point of contact resolution and waiting times with CRM integration implemented from June 2007

• Cashiering – continuing trend of reduced costs in 2007/08 and continue to maintain high satisfaction levels and achieve waiting time targets

• Contact Centre – with additional resources secured from 2007/08 expect increased performance in relation to calls answered/waiting times and within 6-9 months increased efficiencies to enable additional services to be provided in contact centre (e.g. parking). Introduction of CRM within contact centre environment within next 12 months will enable further expansion of services to improve Council’s performance in relation to telephone services

FOR INFORMATION ONLYSpend – 2006

Per

form

ance

– 2

006

1,2,3 6,8,9 4,5

1 – City Treasurer’s

2 – Organisational Development

3 – Benefits

4 – Revenues

5 – Exchequer Services

6 – ICT Services

7 – Consumer Protection (PHEP)

8 – Public Health (PHEP)

9 – Democratic Services

10 – Customer Services

10

7

FOR INFORMATION ONLYSpend – 2007

Per

form

ance

– 2

007

1,216,19

3,6,9,1113,14

12

10,15

17

4

1 – City Treasurer’s (£4.9m)

2 – Organisational Development (£4.0m)

3 – Benefits (£1.2m)

4 – Revenues (£3.4m)

5 – Exchequer Services – n/a

6 – ICT Services (£9.9m)

7 – Consumer Protection (PHEP) – n/a

8 – Public Health (PHEP) – n/a

9 – Democratic Services (£3.3m)

10 – Customer Services (£4.6m)

11 – Policy and Performance (£0.7m)

12 – Community Development (£1.7m)

13 – Communications and Marketing (£0.9m)

14 – Corporate Business Management (£1.7m)

15 – Exchequer Services – payroll

16 – Exchequer Services – debtors

17 – Exchequer Services – creditors

18 – Legal Services (£2.6m)

19 – PHEP combined

18

£5.1

m

city treasurer’s – accountancy

Documents

bar charts interface

barcharts interface

black bar

comparison group

group of membreadback

members original questionnaire

greater use

preselected group