BEST VALUE CHANGES

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• BEST VALUE CHANGES
• LOCAL GOVERNMENT IN SCOTLAND ACT 2003
• AUDIT

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LGIS Act 2003 - the business framework

• Obligations to improve
• new audit and intervention arrangements
• new emphasis on accountability for decisions and
  performance
• new freedoms to trade and charge
• new freedoms to spend
• new freedoms to invest

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Best Value the same as before

• duty of continuous improvement
• balance quality and cost
• promotion of equalities important
• Decisions must be for benefit of stakeholders -
  organisational advantage is not enough

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But different...

• One cost to be balanced is the cost to the
  consumer, not just to the authority
• obligation for BV arrangements to have regard to
  equal opportunities legislation

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Different.

• BV arrangements and decisions must contribute to
  the achievement of sustainable development
• measurement of improvement must have regard to
  outcomes, not just processes

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Audit and other types of scrutiny

• Will continue to look for signs of Best Value
• Will continue to look for many of the
  characteristics described in PMP guidance - see
  BVTF statutory guidance
• Audit Scotland has changed audit approach

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Accountability

• Duty of reporting is for the local authority, and
  decisions about what, where, how and when to
  publish are also for the authority
• Regulations - what must be put into the public
  domain, regardless of preference
• Guidance - things to take into account in making
  decisions

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Enforcement and Intervention the same as before

• Local authority
• Controller of Audit
• Accounts Commission
• Ministers

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But different...

• Grounds of enforcement by Accounts Commission now
  expanded
• Ministers can intervene if Accounts Commission so
  recommends, but also have two direct intervention
  powers
• Best Value failure put public interest at risk of
  substantial harm
• Power to Advance Well being is abused
  (significant excess of power)

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Best Value duties
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1. Local authorities' duty to secure Best
Value 1) It is the duty of a local authority to
make arrangements which secure best value. 2)
Best value is continuous improvement in the
performance of the authority's functions.
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3) In securing best value, the local authority
shall maintain an appropriate balance among- a)
the quality of its performance of its
functions b) the cost to the authority of that
performance and c) the cost to persons of any
service provided by it for them on a wholly or
partly rechargeable basis.
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(4) In maintaining that balance, the local
authority shall have regard to- (a)
efficiency (b) effectiveness (c) economy
and (d) the need to meet the equal opportunity
requirements.
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(5) The local authority shall discharge its
duties under this section in a way which
contributes to the achievement of sustainable
development. (6) In measuring the improvement
of the performance of a local authority's
functions for the purposes of this section,
regard shall be had to the extent to which the
outcomes of that performance have improved.
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• How do we know we are doing the right things?
• How do we know we are doing things right?
• How do we plan to improve?
• How do we account for our performance?

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AUDIT of Best Value, but really of
Local Government in Scotland Act 2003
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• Main Points-
• Full audit every 3 years - includes
• an overview audit of the whole Comhairle
• detailed audits
• Audit takes local circumstances into account
• No single label for Councils
• Reports to Comhairle
• Follow-up on progress every year

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Key Points

• Involvement of Members is vital
• The Audit will focus on where we are making
  progress
• Put in place an Action Plan then take action
• Risk-based, targeted and proportionate
• Accounts Commission assume that we are already
  working to comply with the LGIS Act

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Other Features

• Specialist audit team
• Links to work of inspectorates and other scrutiny
  bodies
• Report to Commission after every audit

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Initial meeting
Week 1
Council prepares submission
Auditors prepare to challenge
Weeks 2 to 7
Council presentation
Week 8
Overview audit
Weeks 9 to 10
Weeks 11 to 15

Selected areas for detailed audit
Weeks 16 to 20
Prepare findings and report
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Council Submission

• Flexible approach to format
• Six weeks to prepare
• Signed by Chief Executive and Convener
• Not a public document, for audit only
• Key element for council and audit itself

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Basic Structure for Submission

• Contextual Information
• Performance Results
• Key features of Best Value
• Draft Improvement plan
• Documentation
• Presentation
• Content of Submission

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The overview audit stage

• Digesting self-assessment
• High level assurance for
• all services' performance
• all BV criteria
• Risk assessment / targeted areas
• Gaps weaknesses
• Areas of good practice
• Areas of interest to Chief Executive
• Areas of interest to Controller of Audit...

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The detailed audit stage

• Intensive three weeks
• Selective, targeted approach
• Review of documentation
• Interviews - including elected members, managers,
  and partner organisations
• Observation - e.g. committee meetings

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Report on Audit of Best Value

• Draft report provided to Chief Executive
• Balance - strengths, weaknesses, reflect
  different expectation levels
• Tailored reports no simplistic league tables
• Improvement Plan
• Report published
• Hearings / meetings with Acc. Commission
• Follow-up audits to review progress

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Andrew MackenzieHead of Strategy (Internal)
Questions?