cipfa shared services conference 13 march 2008 the sdct/cipfa shared service for financial services...
TRANSCRIPT
CIPFA Shared Services Conference
13 March 2008
The SDCT/CIPFA Shared Service for Financial Services
in District Councils
David Wood
The Context
238 district councils (about 200 from Apr 09)
Almost all in financial difficulties
Almost all can’t retain or recruit accountants
Almost all have no better than adequate FIS
Low expectations for financial management
Auditor framework not helpful enough
Our vision
World Class Financial Management within the partner councils
Financially literate councils
A new role for the Finance Director
21st Century technology and systems
Large-scale transformational change
CIPFA at the heart + commercial partner
A profitable Joint Venture Company
At least 25% reduced costs to councils
World Class Financial ManagementSteve Freer, Chief Executive of CIPFA:
“Good financial management is like fresh air, exercise and a healthy diet. Organisations need it to stay fit and live a full and active life.”
Mal Singh, Head of Finance Professionalism at HMT:
“Financial management is the job of management not the finance profession.”
The Joint Venture Company
Councils CIPFA
Commercial Partner(s)
JVC
Simple – just for districts (to start with) and just accountancy services
Fantastic – nothing like how things are done now - i.e. a whole ‘staircase of change’!
Virtuous – all of the partners have incentives to achieve growth and high performance
Simply Fantastic – and Virtuous!
Who’s involved?
LGA
Private sector interest
SDCT
CIPFA
4ps
CLG
JVC
The average district council Employs 5 - 10 accountants
Spends about £800k p.a. on FS
Low volumes of transactions
Under pressure to reduce costs and share services
Little or no capital to spend
FIS needs upgrading or replacing
How it will work National scale, with sub-regional offices
Single set of accounts and one interpretation of legislation and accounting standards
Web-based systems – all self-service
Designed on 2010+ ways of working
CIPFA training in JVC and in councils
Fewer, happier accountants, liberated from dross!
Streamlined auditing – happy auditors!
Savings of about £200k p.a. – happy public!
Timescales
OBC Dec 07 (done)
CLG grant decision March 08 (done)
Project team formed March 08 (done)
DBC Aug 08 (planned)
EU procurement Aug 08 – Dec 09
JVC contracts signed early 10
First councils go live Sept-Oct 10
Longer-term
Councils from other tiers – counties, unitaries, mets, parishes etc
Wales, Scotland and NI?
Other public sector bodies – health etc
Third sector?
Global – Canada, SA, NZ, Australia?
Other services – payroll, internal audit?
Model would work for legal, HR and other professional services
Contact details
David Wood
Strategic Director, Malvern Hills District Council
Council House, Avenue Road, Malvern WR14 3AF
Email: [email protected]
Tel: 01684 862201
Mobile: 07967 374050
SDCT website: http://www.socdct.org.uk/