1. CIPFA Shared Services Conference 13 March 2008 The SDCT/CIPFA Shared Service for Financial Services in District Councils David Wood

2. The Context  238 district councils (about 200 from Apr 09)  Almost all in financial difficulties  Almost all can’t retain or recruit accountants  Almost all have no better than adequate FIS  Low expectations for financial management  Auditor framework not helpful enough

3. Our vision  World Class Financial Management within the partner councils  Financially literate councils  A new role for the Finance Director  21 st Century technology and systems  Large-scale transformational change  CIPFA at the heart + commercial partner  A profitable Joint Venture Company  At least 25% reduced costs to councils

4. World Class Financial Management Steve Freer, Chief Executive of CIPFA: “Good financial management is like fresh air, exercise and a healthy diet. Organisations need it to stay fit and live a full and active life.” Mal Singh, Head of Finance Professionalism at HMT: “Financial management is the job of management not the finance profession.”

5. The Joint Venture Company Councils CIPFA Commercial Partner(s) JVC

6.  Simple – just for districts (to start with) and just accountancy services  Fantastic – nothing like how things are done now - i.e. a whole ‘staircase of change’!  Virtuous – all of the partners have incentives to achieve growth and high performance Simply Fantastic – and Virtuous!

7. Who’s involved? LGA Private sector interest SDCT CIPFA 4ps CLG JVC

8. The average district council  Employs 5 - 10 accountants  Spends about £800k p.a. on FS  Low volumes of transactions  Under pressure to reduce costs and share services  Little or no capital to spend  FIS needs upgrading or replacing

9. How it will work  National scale, with sub-regional offices  Single set of accounts and one interpretation of legislation and accounting standards  Web-based systems – all self-service  Designed on 2010+ ways of working  CIPFA training in JVC and in councils  Fewer, happier accountants, liberated from dross!  Streamlined auditing – happy auditors!  Savings of about £200k p.a. – happy public!

10. Timescales  OBC Dec 07 (done)  CLG grant decision March 08 (done)  Project team formed March 08 (done)  DBC Aug 08 (planned)  EU procurement Aug 08 – Dec 09  JVC contracts signed early 10  First councils go live Sept-Oct 10

11. Longer-term  Councils from other tiers – counties, unitaries, mets, parishes etc  Wales, Scotland and NI?  Other public sector bodies – health etc  Third sector?  Global – Canada, SA, NZ, Australia?  Other services – payroll, internal audit?  Model would work for legal, HR and other professional services

12. Contact details David Wood Strategic Director, Malvern Hills District Council Council House, Avenue Road, Malvern WR14 3AF Email: drwood@malvernhills.gov.ukdrwood@malvernhills.gov.uk Tel: 01684 862201 Mobile: 07967 374050 SDCT website: http://www.socdct.org.uk/http://www.socdct.org.uk/