BEST VALUE CHANGES LOCAL GOVERNMENT IN SCOTLAND ACT 2003 AUDIT

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

2. 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 LGIS Act 2003 - the business framework

3. duty of continuous improvement balance quality and cost promotion of equalities important Decisions must be for benefit of stakeholders - organisational advantage is not enough Best Value: the same as before…

4. 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 But different...

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

6. 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 Audit and other types of scrutiny

7. 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 Accountability

8. Local authority Controller of Audit Accounts Commission Ministers Enforcement and Intervention: the same as before…

9. 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) But different...

10. Best Value duties

11. 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.

12. 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.

13. (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.

14. (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.

15. 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?

16. AUDIT of Best Value, but really of Local Government in Scotland Act 2003

17. 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

18. 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

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

20. Week 1 Initial meeting Weeks 2 to 7 Council prepares submission Auditors prepare to challenge Week 8 Council presentation Overview audit Weeks 9 to 10 Weeks 11 to 15 Selected areas for detailed audit Weeks 16 to 20 Prepare findings and report

21. 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

22. Basic Structure for Submission • Contextual Information • Performance Results • Key features of Best Value • Draft Improvement plan • Documentation • Presentation • Content of Submission

23. 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...

24. 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

25. 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

26. Andrew MackenzieHead of Strategy (Internal) Questions?