BOROUGH OF POOLE CABINET. 13 June 2017 ANNUAL UPDATE ON THE USE OF CONSULTANTS & INTERIMS 2016/17

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1 BOROUGH OF POOLE CABINET 13 June 2017 ANNUAL UPDATE ON THE USE OF CONSULTANTS & INTERIMS 2016/17 1. PURPOSE OF THE REPORT 1.1 To provide members with the current position on the use of consultants and Interims in line with the requirements of the Cabinet report of 5 April DECISIONS REQUIRED 2.1 It is recommended that Cabinet: Note the contents of the report and the ongoing practice of providing an annual update as part of the financial outturn reports. 3. EXECUTIVE SUMMARY 3.1 Poole Council reduced its use of consultants in the period between 2010/11 and 2012/13 to a low point of 1,202,000. The trend has been upwards since that time with expenditure incurred in 2016/17 of 2,468,000 (0.84% of gross revenue and capital budgets). This current trend is largely due to the breadth and scale of projects some of which are contributing to MTFP savings agreed with members. 3.3 Significant areas of capital spending are on professionals within highways, engineering, environmental and property, such as architects and surveyors where we do not have sufficient expertise in-house. This constituted 44% of consultancy spend in 2016/17. The capital programme will continue to include consultants during 2017/18 in progressing, for example, Carter Community College, Ocean Academy, New & Refurbished Beach Huts, Figbury Lodge Care Home, Poole Town Centre Port Access, Dolphin Centre MSCP, Street Lighting LED Programme, Pedestrian Crossings, Coastal Protection Schemes 3.4 Expenditure on consultants within revenue budgets covers a diverse range of projects, for example, School Improvement, Engineering Works, Grant Funded activities,eg Wessex Five Museums Project, the Library Bookfund management system, Tree Protection Orders (TPO) planning advice, Financial Treasury management advice, Adult Safeguarding, GIS Management, Land Valuations where additional expertise or capacity is required. 26

2 4. BACKGROUND 4.1 Following a Scrutiny process, the Chair of the Council s Efficiency and Effectiveness Overview and Scrutiny Committee reported in respect of the Council s use of consultants to Cabinet on the 12 October This report concluded that the use of consultants, interims and agency staff was necessary to achieve the Council s priorities in a cost effective manner and without them it could put the Medium Term Financial Plan and delivery of projects at risk. 4.2 Cabinet endorsed this report and on the 5 April 2011 received an update report outlining progress in respect of the implementation of the report s various recommendations. The 5 April 2011 report set out a number of improvements to the Council s arrangements in respect of the use of consultants including; Enhanced governance arrangements for the use of consultants as set out in the Council s Financial Regulations. This included the requirement; i. to take the Head of Human Resources advice in respect of when a contract for consultancy may be preferred to offering an employment opportunity. ii. iii. iv. for the Senior Responsible Officer to prepare a business case where the total contract cost exceeds 10,000. for the Senior Responsible Officer to consult the Portfolio Holder as part of the process to approve the business case. to keep the Portfolio Holder informed of cases where consultants are employed so that any budget pressures are identified at an early stage. Provision of standard definitions for interims, consultants and agency staff and prescribed codes to be used when such costs are incurred. Expansion of the Professional Register as a means of obtaining experienced staff for specific projects. A clear requirement to adhere to standard Local Authority Accounting practice which requires that any costs incurred in delivering specific services are shown as part of the expenditure base for those services. A requirement to provide members with an update as part of the financial outturn each year. 5. USE OF CONSULTANTS 2016/ A key part of the exercise has been, from April 2011 onwards, to ensure consistent and accurate recording of consultants based on standard definitions to a clearly defined coding structure. Comparisons, therefore with financial years before 2011/12 would now be unreliable as it would be highly likely they are not on a like for like basis. However, as a guide, the expenditure previously recorded on consultants in 2010/11 was 2.85m. 27

3 5.2 During 2012/13, action was taken to extend the Council s professional register and ensure its operation runs smoothly and effectively. The register continues to be widely used internally and by offering it to other public bodies it is also providing an income stream to the Council. 5.3 Exhibit 1: Consultant Expenditure 2016/17 Description Highway, Engineering, Property & Environmental Revenue Projects Capital Schemes Non Schools Capital Schemes School Projects Total ICT Related Miscellaneous Revenue (see 3.4) Miscellaneous Capital (see 5.5c) Total 2016/ ,468 Total 2015/ ,927 Total 2014/ , The Council has paid 35 firms (29 firms in 2015/16) or individuals in excess of the 10,000 business case threshold including; Mouchel Parkman Services Ltd WS Atkins (Services) Ltd Nursery School Providers Kendall Kingscott Faithful & Gould Dorset County Council Careworks (Uk) Ltd Wilkinson Eyre Architects Ltd Valuation Office Agency Administration Panoramic Associates Gatenby Sanderson Ltd Capita Property & Infrastructure Ltd Deloitte Llp IESE Transformation Ltd Jubilee Computing Ltd Firmstep Coa Solutions Ltd Talbot Primary School JNplanning Val Williams Geo Environmental Tree Call Consulting Number 10 Interim Ltd 28

4 Jane Kaufmann Associates Arlingclose Ltd Jones Lang Lasalle Ltd Idox Software Streetmellor Tribal Education Ltd Cast Fundraising & Marketing Ltd GVA Grimley Ltd Baltimore Consulting Group Hampshire County Council Gleeds Advisory Ltd EIBS Ltd 5.5 From an analysis of the financial ledger it can be shown that; a) all the 2016/17 expenditure for consultants is now coded appropriately b) of the total expenditure in 2016/17, 65% relates to a small number of consultants (6%) which the Council have employed to support specific projects including Poole Bridge Approach, New Beach Huts, Lilliput Infant School,Public Realm and Road Network Improvements. c) Miscellaneous consultants (non schools capital) include professional support for specific initiatives, for example, Figbury Lodge Redevelopment, Gravel Hill Road Improvements, Town Centre Regeneration, Sea Music Statue & Hatchpond Salt Barn. 6. USE OF INTERIMS 2016/17 a) Expenditure on interims has increased significantly this year to 651k, supporting People Theme activities, for example, Supporting Schools Improvement to meet Ofsted targets, Educational Psychologists to meet short term demand, Data Management for Children s Services, Specialist Senior Officer for the children in care strategy, Interim Service Unit Head for CYPSC. These were reported to Cabinet on 10 th January FINANCIAL IMPLICATIONS 7.1 Financial implications are as outlined within the report. 8. LEGAL IMPLICATIONS 8.1 There are no legal implications. 9. RISK MANAGEMENT IMPLICATIONS 9.1 There are no risk management implications. 10. EQUALITIES IMPLICATIONS 10.1 There are no equalities issues. 29

5 11. CONCLUSION 11.1 The Council continues to make good progress in establishing greater transparency and control in the use of consultants and interims, but it is accepted that a level of expenditure is necessary to support the council in achieving its challenging agenda, particularly in delivering the capital programme and driving out efficiencies. A RICHENS CHIEF FINANCE OFFICER Contact Officer: Nicola Webb, Head of Accountancy Telephone: (01202) E mail: nicola.webb@poole.gov.uk Background Papers: 12/06/2012 Cabinet Report Financial Outturn 2011/12 Appendix A10 Annual Update on the Use of Consultants. 05/04/2011 Cabinet Report Implementation of Cabinet Recommendations arising from Efficiency and Effectiveness Overview and Scrutiny Committee on the use of Consultants. 12/10/2010 Cabinet Report - Use of Consultants Scrutiny: Report of the Chairman of Council Efficiency and Effectiveness Overview and Scrutiny Committee. 10/1/2017 Cabinet Report Employment of Temporary Specialist Staff in Adult Social Care Services & Commissioning & Improvement People Services. 10/1/2017 Cabinet Report Employment of Specialist Expertise to secure Required improvements in Children s Social Care Services. 10/1/2017 Cabinet Report Updating & Implementing Poole s Strategy for supporting School Improvement. Date: May