Achieving Best Value at the Scottish Funding Council

Transcription

1 ACC/16/07 Agenda item March 2016 Achieving Best Value at the Scottish Funding Council This paper invites the Audit and Compliance Committee to consider SFC s arrangements for achieving Best Value in its use of resources during Recommendations The Committee is invited to consider the extent to which SFC is able to demonstrate that it is a Best Value organisation. Financial implications There are no direct financial implications arising from this paper.

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3 Achieving Best Value at the Scottish Funding Council Purpose 1. This paper summarises the activities undertaken by the Scottish Funding Council (SFC) to achieve Best Value in its use of resources during Background 2. The Council has a duty to comply with the principles of Best Value. Under the terms of the Public Finance and Accountability (Scotland) Act 2000, Accountable Officers have a specific responsibility to ensure that arrangements have been made to secure Best Value. The Boards of public service organisations also have a corporate responsibility for promoting the efficient and effective use of staff and other resources in accordance with the principles of Best Value. Compliance is subject to audit by Audit Scotland. 3. Given its remit for monitoring the Council s arrangements to secure value-formoney, and the responsibilities placed on the SFC Board in relation to Best Value, it is therefore clearly relevant to the work of the Audit and Compliance Committee. What is Best value? 4. As background, Best Value has its origins in the process of Compulsory Competitive Tendering, which was introduced in local authorities in the 1990 s. That process was regarded by many as too prescriptive; for example, it often led to cost savings but did not necessarily deliver better public services. 5. Compulsory Competitive Tendering was replaced in 2000 with the concept of Best Value, which was intended to provide a more flexible framework for delivering improvements in public services. In Scotland, the duty of Best Value has been in place since 2002 and includes public bodies as well as local authorities. 6. Best Value is intended to provide a common framework for continuous improvement in public services in Scotland. The formal definition of Best Value, as set out in the Scottish Public Finance Manual (SPFM) is (our emphasis in bold): To make arrangements to secure continuous improvement in performance whilst maintaining an appropriate balance between quality and cost In making those arrangements and securing that balance, to have regard to economy, efficiency, effectiveness, the equal opportunity requirements and to contribute to the achievement of sustainable development. 1

4 7. In simple terms, it means that an organisation should deliver its functions effectively, and in a way that provides value-for-money, achieves high-quality outcomes and demonstrates continuous improvement. Audit Scotland has said that achieving Best Value is about ensuring sound governance, good management, public reporting on performance and a focus on improvement. Best Value themes and characteristics 8. In March 2011, the Scottish Government published new guidance for Accountable Officers on the duty of Best Value in Public Services. 9. The guidance identified seven themes, which define the expectations placed on Accountable Officers by the duty of Best Value: Vision and Leadership Effective Partnerships Governance and Accountability Use of Resources Performance Management Equality (cross-cutting theme) Sustainability (cross-cutting theme). 10. Against each of these themes, the Scottish Government has identified characteristics which a Best Value organisation should be able to demonstrate, or has plans to demonstrate. How does the Council meet its duty? 11. The Scottish Government guidance is clear that there is not a one-size-fits-all 2

5 approach to achieving Best Value and that: Each organisation can determine the route by which it intends to achieve Best Value and arrive at its identified improvement goals. The strategic focus should be on achieving continuous improvement in performance and outcome. 12. In practice, the Council uses a range of mechanisms for securing Best Value in its operations, which is to be expected given the diverse functions of the organisation and complexity of the work undertaken. The attached Annex summarises some of the main methods and identifies key activities undertaken in The activities are listed against each of the seven Best Value themes. 13. We assess our compliance with the principles of Best value by undertaking periodic self-assessment exercises; previous exercises were undertaken in FY , , and We plan to undertake a further selfassessment during Points for discussion 14. The Committee is invited to consider the extent to which SFC is able to demonstrate that it is a Best Value organisation: As a major public body, are we doing enough to promote and support the themes of Best Value? Is there sufficient awareness of Best Value at Board level? Can we demonstrate continuous improvement in performance and outcomes? Are we an exemplar Best Value organisation? If not, what more do we need to do? Risk assessment 15. This paper helps to mitigate the risk that SFC is unable to demonstrate to the Scottish Government and other stakeholders that it is using its resources in an effective way that delivers Best Value, including value-for-money. Equality and diversity assessment 16. There are no direct financial implications arising from this paper. Financial implications. Recommendations 17. The Committee is invited to consider the extent to which SFC is able to demonstrate that it is a Best Value organisation. 3

6 Publication 18. This paper will be published on the SFC website following the Committee meeting. Further information 19. Contact: Richard Hancock, Assistant Director Strategy (tel: ; 4