Establishing a Shared Services Entity

Practical steps to setting up a Shared Services Organisation

WHY Know why you are doing it! Cost pressures Legislative change Provide a legal entity for existing collaboration Enhancing service Increasing compliance requirements Right environment Central Government encouragement / expectation New political geography to ‘navigate’ in Wellington

Fundamentals Foundation of mutual respect Commitment to co-operation and collaboration. Recognition that shared services is about ‘how’ things are done, not ‘why’. Uniqueness not a value Autonomy not an asset

Agree the purpose What is the entity to achieve? Outputs Limitations Resources

Establish the structure Charitable Trust Company Informal grouping A Council Controlled Organisation can be any of the above and is subject to the Local Government Act 2002

Council Controlled Organisation Special Consultative Procedure required. Constitution Lodged with companies office Statement of Intent includes budget Process of annual circulation and approval Shareholders Directors Transparent appointment Companies Act compliance

Governance CEOs are Directors Directors responsibility is to company Role clarity Strategic View Advisory Groups Manage Activities

Governance. Decisions Who Directors Sub groups (Advisory) Delegations How Consensus Vote Equal/proportional

Governance EBOPRDC WDCKDCODC WBOP DC TCCTaupoGDC BOPLASS LTD The Board – 9 Chief Executives as directors Executive Officer Aerial photography Insurance Probity and Audit teleph ony unimar ket Soft ware

Finances Funding the Entity Transaction Levy Fixed contribution Other Equal Proportional Service Costs Actual or cost plus

Reporting Operational and Financial reporting Frequency? Content and audience Audit NZ – Mandatory

Shareholders Constitution Approve/amend Statement of Intent Submit on Annual Meeting 6 monthly reports