Agenda item

To monitor half-yearly, the performance of the shared services or outsourced arrangements against set targets and conduct annual review of agreements for these arrangements to ensure value for money and savings; and propose action points for improvement.

Dominic Whelan, Director of EK Services introduced the agenda item. With reference to the report in the agenda pack, he gave an outline of the performance of EK Services and EK Human Resources for the period April to August 2015. ICT team was performing above set standard even though the team was faced with staff shortage. Mr Whelan said that the organisation was currently undertaking a new staff recruitment drive. Members were advised that there were a number of key projects being undertaken to achieve further performance improvements in the delivery of shared services.

EK Services was conducting a review of the existing cost and financial model; the aim is to provide better granularity on the cost of managing and delivering the service to the partner local authorities and to allow accurate benchmarking and commercial pricing for potential new business, where applicable. They were exploring other potential revenue sources that would bring in additional income to the shared services arrangements for the benefit of the partner local Councils.

EK Services were also progressing well with the implementation of two new technical projects. A single Revenues and Benefits system is being introduced that would bring all three partner Councils onto a common platform that will provide operational improvement, better customer self-serve options as well as delivering savings. A new single telephony system is being procured to replace the existing and obsolete current system.

EK Human Resources were in process of delivering a new Human Resources system that would make it easier for staff to access their personal information, submit claims and apply for leave. The system would also bring payroll in-house. This will provide major benefits to the users such as self-serve claims, reduce paper based transactions and deliver savings over the current payroll provider.

Members sought advice on how Thanet District Council contribution to the overall EK Services budget was worked out. In response, Mr Whelan said that TDC contributed 36.34% and this was worked out at the start of the shared services arrangement in 2011 and was based on the budget spend by each of the partner Councils. The overall budget monitoring was conducted in consultation with the section 151 officers for the partner local Councils.

EK Services were in the process of review their financial model whose results could be available in the next few months. The organisation was also trying to source for new business in order to help reduce the costs each of the partner Councils was paying towards the EK Services budget.

Members asked whether the roll-out of the universal credit would affect the Council’s revenue collection. Mr Whelan said that initially there would be minimal impact as the roll-out would initially be limited to single parent cases and that the organisation would be monitoring the situation carefully. A Members Briefing would be held to advise councillors on the new benefits system to be introduced in October 2015.

Members noted that the performance of all the shared services arrangements was generally satisfactory and that there were no major concerns. The report was noted.