FrAmework for Multi-agency Environments

1. FrAmework for Multi-agency Environments Financial Benefits Calculator Prepared by Acclaim Consulting

2. What is the Financial Benefits Calculator? • A quick way of calculating the financial impact of implementing FAME in your area • You can also see how the benefits may be enhanced by co-operating with other authorities

3. Who is the calculator aimed at? • The calculator does not require special skills – although the range of data required is likely to require some input from others • Aimed at those authorities seeking to develop multi-agency environments and seeking to establish the business case for change • Can be applied to either multi authority, multi-service areas or a single service area in a single authority

4. What information is needed and how long does it take? • Information about the activity levels for your services • Information about your likely running costs • Estimates of how costs and benefits might be shared between the partner agencies • In most cases you can make your own estimate or accept ours based on pilot authorities and national data • An initial financial benefits assessment could be made in 2-3 hours like most things, the more data you have at your finger tips the quicker the exercise will be.

5. Getting Started: Choose a service area and partner authorities • Go to the sheet ‘about the authority and federation’ and select your authority name from the drop down list • Select the names of authorities you wish to work with from the drop down list – if any • Select the service area you wish to calculate the financial benefits for • Alternatively you can choose to look at another service area of your choice (other service 1 or 2) When you select authorities – service area data is extracted from tables embedded in the calculator

6. Stage 1 - Choose your partnership agencies • Go to the Input sheet for the service area you have chosen to assess • List your partner agencies in the box provided, the number of agencies is automatically calculated • Typically a partner agency would be a significant player in relation to the use and exchange of information, such as a Hospital Trust, Police, or key voluntary sector agency The number of authorities you list has a significant effect on the benefits analysis. The greater the number of agencies – the greater the information transactions.

7. Stage 2: Activity levels & costs Continuing on the input sheet….. Review the following preset boxes & make any changes • Activity levels - these come from national statistics • Average pay cost of staff working in the service area • Start up and running costs –The pre-set data is based on the FAME pilots • Prevention savings – Apart for ISA, prevention savings are assumed based on activity data. • You can add additional data on the expected prevention savings you expect once FAME is implemented. National statistics are applied to the benefits calculator. These can be amended as necessary and additional events can be added.

8. Stage 3: Other efficiency benefits Continuing on the input sheet….. • The calculator will automatically calculate efficiency benefits for some processes based on the activity levels • You can also specify other processes and events where efficiency based benefits may occur • In each case you need to specify the event/process, the numbers per annum and the time saving per unit of activity Your estimates of additional efficiency benefits may be deduced from the estimates of staff involved in the service area – or on quantifiable metrics

9. Stage 4:The speed at which benefits build & running costs reduce Continuing on the input sheet….. • Benefits from prevention and efficiency are likely to build up over a period of time and are unlikely to fully materialise in year one. • On the Input sheet for your activity review the pre-set assessment of how benefits build up over a six year period and change as necessary. • Similarly, review the pre-set assumptions of how running costs will fall as the system beds in, and change as necessary. It is rare for the total prevention and efficiency benefits you have identified to accrue 100% in year one. Equally, running costs are sometimes higher at the outset of a new service and may reduce over time.

10. Stage 5: Services received in another local authority area: ISA only Continuing on the input sheet….. • Some children will receive services in another authority • A child living in your authority may attend school in another and have a GP in different one again • If a significant number of children receive services in this way this will impact on the cost benefit analysis. • You need to estimate the % of children receiving one, two or three services outside of the area covered by your FAME partnership The wider the partnership with other local authorities the greater the % of events and/or enquiries which should be enabled by FAME. In this example the local authority is assessing the benefits of developing a partnership with other local authorities, hence a much lower % of enquiries now fall outside the FAME area.

11. Stage 6: How much of the benefit is cashable? Continuing on the input sheet….. • The Gershon review states that 50% of efficiency benefits should be cashable i.e. result in actual ‘savings’ • An optional element of the benefits calculator allows you to estimate what % of the benefits are likely to be cashable • Benefits from allowing staff more time to work on other activities would not be cashable – i.e. you are not reducing staff numbers, but you could get other benefits such as improved levels of service deliver and greater quality You will need to look at the type of efficiency and prevention benefits you have included in order to estimate how cashable they may be. Your assessment is likely to be based on your evaluation of the change process FAME will help bring about.

12. Stage 7: How are costs & benefits shared between the partners Continuing on the input sheet….. • An optional element of the calculator provides you with the opportunity to evaluate how the costs and benefits will be spread between the partners. • For each of the efficiency benefits, prevention benefits, running and set up costs estimate the % for each agency over the six year period should be shown • The totals must add to 100% The costs and benefits are unlikely to be evenly dispersed over the agencies within the partnership. Within the calculator you have the opportunity of assessing who will contribute to costs and receive the benefits.

13. The calculations • Calculations are automatically made from the data you input on the Input sheet • If you wish to review how these work go to the ‘calculation sheet’ for the activity you are assessing • Otherwise go straight to the analysis of benefits, this is shown on the next slide. In addition to reviewing the methodology applied to the cost benefit calculations, a reasonableness check is included on the ‘calculation sheet’ – this is designed to indicate of the level of benefits falls outside the usual range of such cost benefit analysis. Depending on the type of service being developed – extra caution is required if figures exceed 3-5% of annual spend.

14. Analysis: Cost and benefits • Go to the ‘Cost and Benefit Summary’ sheet for the service area being assessed • In this sheet you can review • Benefits from efficiency and prevention • Running costs • Start up costs • Net benefits over a six year period • What % of benefits are cashable – if optional data input • The share of net benefits – if optional data input • These are shown both for your authority area and a Federation of authorities

15. Analysis: Summary level • Go to the sheet ‘Summary Benefits’ • This will show benefits for each FAME service area you have assessed • It will also show net benefits and the split between cashable and non-cashable – if you have opted to assess your data in this way • The costs and benefits likely to accrue to each of the partners – if you completed this optional element • Sensitivity analysis is built in by showing the results if only 75% of benefits are realised and also 125% Several layers of analysis are included in the ‘summary benefits’ sheet. This includes net and gross benefits and a split between the benefits to the inputting authority and that of the partnership. Benefits are calculated on a 6 year period.