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CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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Page 1: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

CIPFA Shared Services Conference

13 March 2008

The SDCT/CIPFA Shared Service for Financial Services

in District Councils

David Wood

Page 2: 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

Page 3: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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

Page 4: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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.”

Page 5: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

The Joint Venture Company

Councils CIPFA

Commercial Partner(s)

JVC

Page 6: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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!

Page 7: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

Who’s involved?

LGA

Private sector interest

SDCT

CIPFA

4ps

CLG

JVC

Page 8: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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

Page 9: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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!

Page 10: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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

Page 11: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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

Page 12: CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

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/