Archived decisions

Value for money

Self-assessment proforma

      Authority

      Chief Executive

      Key contacts

      Date Completed

The Audit Commission is an independent body responsible for ensuring that public money is spent economically, efficiently and effectively, to achieve high-quality local and national services for the public. Our remit covers more than 12,000 bodies which between them spend nearly £100 billion of public money every year. Our work covers local government, housing, health, community safety and fire and rescue services.

As an independent watchdog, we provide important information on the quality of public services. As a driving force for improvement in those services, we provide practical recommendations and spread best practice. As an independent auditor, we monitor spending to ensure public services are good value for money.

    Contents

Guidance 4

Value for money key lines of enquiry 5

Contextual information 15

Guidance

You are asked to complete the self-assessment pro-forma and return it, along with referenced supporting evidence, to your local appointed auditor. This will be reviewed along with any supporting evidence prior to the fieldwork. The key lines of enquiry, which are the basis of this assessment, along with further Guidance for Councils, can be found www.audit-commission.gov.uk. The Guidance covers the whole use of resources assessment and includes interpretation and expectations of good performance in relation to value for money. The key lines of enquiry (KLOE) include descriptions of typical performance equivalent to scores of 2, 3 and 4 (see Guidance - Introduction for an explanation of the scores). You should read and understand these before you complete this self-assessment.

The self-assessment pro-forma is for you to complete to show how well the council manages and uses its financial resources and achieves value for money. Cost data is also required to support your assessments - please make use of the `VfM Profiles' report and web-based tool that we are providing for this. The VfM Profiles tool can be found at www.audit-commission.gov.uk from 17 June 2005.

In addition, please append your backward looking Efficiency Statement covering 2004/05.

The questionnaire has been designed to invite the council to assess its current performance in achieving and delivering value for money by answering a series of questions and providing brief supporting details. Fieldwork on site will follow up on areas identified within the self-assessment.

Significant emphasis will be placed on evidence of outcomes in the assessment and this should be clearly reflected in the self-assessment. The pro-forma also includes a series of sub-questions that relate to the key questions to enable you to tailor your response. Use column 2 to reference key supporting documentation or provide links to the documentation. Please do not provide hard copy documents - a reference to the document/information/electronic copy will be best. Hard copy documentation should only be provided where this is the only available source. Providing these references will assist auditors and should make the audit process less onerous on the council.

Your self-assessment (excluding Efficiency Statement and references, but including contextual information) should not exceed 5,000 words. We will be placing examples of suitably completed self-assessments on our web-site at the end of June 2005.

There is a final section to allow you to make reference to any contextual or other information you feel may be of assistance in the assessment.

We want this to be your self-assessment. Your relationship manager and auditor will provide advice should you need help in understanding the assessment approach. They will not however, be able to directly support you in contributing to the self-assessment, for example by reviewing content or acting as a critical friend.

Please put the name of the person responsible for completing this self-assessment in the box provided on the front cover.

We would like to take this opportunity to thank you in advance for your assistance. For single tier authorities and counties please return the completed pro-forma to your appointed auditor by 31 July 2005. For district councils please return the completed pro-forma to your appointed auditor by 30 September 2005.

1 Value for money key lines of enquiry

5.1 The council currently achieves good value for money

What is the purpose of this section of the self-assessment?

This section provides the authority with an opportunity to demonstrate how it achieves good value for money including how current costs compare with others. Local fieldwork will focus on the extent to which the authority understands, compares and reviews its costs in relation to both performance and priority. This section will draw significantly on the evidence provided in the standardised VFM Profiles report.

Completing the self-assessment

Please provide short statements using the pro-forma which address the key line of enquiry and each of the key sub-questions:

5.1 How well does the council currently achieve good value for money?

5.1.1 How well do the council's overall and service costs compare with others?

5.1.2 How do external factors affect costs and how do adjusted costs compare?

5.1.3 To what extent are costs commensurate with service delivery, performance and the outcomes achieved?

5.1.4 To what extent do costs reflect policy decisions?

KLOE 5.1 How well does the council currently achieve good value for money?

Reference to evidence source

Please provide brief details and evidence to support your assessment with focus on:

    · how the council challenges value for money through services and corporately; and

    · the relationship between local taxation, overall expenditure and costs; and the level and performance of services provided, taking account of local priorities.

  

5.1.1 How well do the council's overall and service costs compare with others?

Reference to evidence source

Please provide brief details and evidence to support your assessment - please attach the VFM Profiles summary report provided. Key areas of focus:

    · current level of overall costs and costs for key services;

    · planned spending in relation to others; and

    · level of overheads and how they are accounted for.

  

5.1.2 How do external factors affect costs and how do adjusted costs compare?

Reference to evidence source

Please provide brief details and evidence to support your assessment:

    · external local contextual factors that influence costs (such as deprivation, geography, demography); and

    · demand and supply levels.

  

5.1.3 To what extent are costs commensurate with service delivery, performance and the outcomes achieved?

Reference to evidence source

Please provide brief details and evidence to support your assessment in relation to the key areas of focus - please refer to the VFM Profiles tools for evidence:

    · quality and standards achieved, including targeted investment to improve poorer services and quality of life;

    · results of service inspections; and

    · range of discretionary services provided.

  

5.1.4 To what extent do costs reflect policy decisions?

Reference to evidence source

Please provide brief details and evidence to support your assessment in relation to the key areas of focus:

    · how costs are assessed when decisions are made;

    · the extent to which higher spending is in line with stated priorities; and

    · the extent of long term cost considerations with major investments or partnerships.

  

5.2 The council manages and improves value for money

What is the purpose of this section of the self-assessment?

This section provides the authority with an opportunity to demonstrate how it manages and improves value for money including its processes for monitoring and reviewing its costs. Local fieldwork will focus on the extent to which the authority identifies and pursues opportunities to reduce costs or improve quality within existing costs. Please provide evidence of outcomes achieved from any processes described.

Completing the self-assessment

Please provide short statements using the pro-forma to address the key line of enquiry and each of the key sub-questions:

5.2 How well does the council manage and improve value for money?

5.2.1 How does the council monitor and review value for money?

5.2.2 How well has the council improved value for money and achieved efficiency gains (limited to the last three years)?

5.2.3 Do procurement and other spending decisions take account of full long term costs?

KLOE 5.2 How well does the council manage and improve value for money?

Reference to evidence source

Please provide brief details and evidence to support your assessment focusing on:

    · how the council manages its costs, whilst maintaining the quality of services and responding to local needs.

  

5.2.1 How does the council monitor and review value for money?

Reference to evidence source

Please provide brief details and evidence to support your assessment:

    · current processes for monitoring and reviewing costs, including:

      · consideration of value for money in the annual budget process;

      · internal reviews (including Best Value reviews); and

      · cost indicators.

  

5.2.2 How well has the council improved value for money and achieved efficiency gains over the last three years?

Reference to evidence source

Please provide brief details and evidence to support your assessment. Please append your backward looking Efficiency Statement covering 2004/05:

    · council targets for value for money and efficiency gains; and

    · the achievement of efficiency gains.

  

5.2.3 Do procurement and other spending decisions take account of full long-term costs?

Reference to evidence source

Please provide brief details and evidence to support your assessment:

    · how value for money is built into the council's procurement practice;

    · the extent to which a `whole life' approach is taken to spending and procurement decisions;

    · identifiable savings achieved through procurement; and

    · use of external funding to deliver council priorities.

    

2

3 Contextual information

Please provide any other information you feel is relevant.

Comments

Reference to evidence source

   

Appendix 2