Agency Management Board Minutes 26 April 2007

Mr Davis (Chair)
Mr Boyle
Mr Boyd
Dr Dixon
Mr Sinnamon
Mr Adair
Miss Conway (Observer)
Mr Hickland (Minutes)

Introduction

Mr Davis welcomed Stephen Boyd, Mervyn Adair and Anne Conway to the meeting.  

Presentation on SBR

Mr Davis welcomed Mark Graham from the Northern Ireland Housing Executive (NIHE) to the meeting who delivered a presentation on the NIHE’s Strategic Business Review.

The Board thanked Mr Graham for his presentation and the opportunity for an insight into the NIHE’s progress on their Business Review to date.

Previous Minutes

The previous minutes were agreed.

Status of action Points – (AMB 36/07)

Mr Davis referred to the Status of Action Points on AMB 24/07 and the Board noted the items that had been cleared since the previous meeting or were being taken forward through specific Business Areas.  

Following discussion, Mr Adair agreed to provide an update on Programme Protection to May AMB.
(Action Point 20/07:Mr Adair)

Financial Report - (AMB38/07)
Mr Boyd outlined the details of the Financial Report showing the position at March 07.  He reported that following the recent monitoring round, the current projection of the Baseline Admin and Other Current funding indicated a £1.2m easement and a £1.1m easement in Capital.  The Modernisation Admin and Other Funding indicated an easement of £0.9m and £1.7m in Capital.  Mr Boyd outlined the explanations for declared easements and pressures and provided detail on the General Reserve outturn figure.  He reported that the salary underspends were mainly due to variances in the salary rates.  He stated that while year outturn indicators demonstrated overall good signs of financial management.

Mr Boyd stated that a review of the current financial reporting format was underway and would return to next month’s Board with a revised Monthly Financial Report.
(Action Point 21/07:Mr Boyd)

Mr Boyd agreed to conduct a review of Business Areas in relation to reported easements/pressures to provide assurance that they are fit for new purpose and financial management procedures are robust.
(Action Point 22/07:Mr Boyd)

Mr Boyd also agreed to review mechanisms to provide the Board with appropriate feedback from Audit Committees.
(Action Point 23/07:Mr Boyd)

After discussion the Board noted the report and easements to date and noted that the overall financial management throughout the Agency had been well managed through this financial year.

Manpower Report – (AMB 39/07)
Mr Sinnamon introduced the Manpower paper and reported on the current staffing position for all grades.  He stated that there had been no significant change to the number of EO1 and SO vacancies in the last month and progress was being made on G7 vacancies however, he stated that the SO position was a matter of growing concern and this had been raised with Central Personnel Group.  Mr Sinnamon stated the EO2 vacancy position should decline slightly when the last batch of imports from the recent supplementary EO2 list is reflected in the Whole Time Staff figures.  Mr Sinnamon reported that while the AO position was more positive this month due to recent imports, the number of AO vacancies had increased from 29.66 to 49.55 and the AA vacancy position was virtually the same as last month.  Mr Sinnamon stated his concern at the growing number of vacancies at AO grade and that further work was needed to see how the Agency could best respond to this.  In the interim Personnel branch will discuss with Operations Directorate how best to allocate staff from the current AA to AO list.
(Action Point 24/07: Mr Sinnamon)

After discussion the Board noted the Manpower position, declared vacancies, position in relation to promotion lists and the position in relation to lateral transfer to the AA grade.  

Operational Division Performance Report - (AMB 40/07)
Mr Adair outlined the details of the Operational Division Report.  He stated that information on financial accuracy performance reflected the position on the rolling year January to December 06 and outlined the details on performance against the service delivery targets.  Mr Adair stated that the main areas of concern for performance on the Financial Accuracy targets were Pension Credit, Incapacity Benefit and Pension Credit Claims Clearance and provided detail on the following:  

The Claims clearance targets missed were in respect of Pension Credit.  All other Service Delivery Operational Targets had been met and Mr Adair provided the following detail:

Mr Adair also reported on the performance of Belfast Benefit Delivery Centre for the two London Districts for which Belfast processed work.  He stated that the BBDC had an overall excellent year in terms of performance with all Ytd targets met with the exception of Incapacity Benefit Appeals and Jobseekers Allowance Claims.  He added that this performance had contributed to Job Centre Plus meeting their targets. He reported that JSA claims clearance targets had been missed at year end with monthly performance of 12.8 days and Ytd performance of 13.8 days.  He outlined the ongoing work between Personnel and BBC/Lisahally to fill top priority business critical vacancies and reported that a further 44 staff had started this week in BBDC adding that while this was welcome, a significant number of posts still remained vacant.

After discussion, the Board noted the good performance against the targets from teams and stressed the need to ensure continuing focus on targets over the full year.

Progress Against Additional Key Targets - (AMB 37/07)
The Board noted the progress against the Additional Targets.  

Mr Adair introduced this paper and outlined the background concepts pertaining to LEAN and detailed recent results from LEAN projects conducted in GB.  Mr Adair provided detail on key drivers and the efficiencies achieved.  He added that in light of projected impacts from CSR and SBR, it was timely that the Agency review its own processes and assess the potential for using similar techniques within the organisation..  

After discussion Mr Adair agreed to remit a Business Case and supporting presentation to the Board to outline the rationale, evaluation and Agency approach
(Action Point 25/07:Mr Adair)

Varney Report (AMB 34/07)
Mr Boyle introduced this paper, he outlined the background information to the Varney Report published in December 2006 and delineated the implications for the Agency.  Mr Boyle stated that the report detailed extensive stakeholder engagement and its primary focus was service transformation, frontline services, e-delivery and contact centres.  He added that in order to develop the recommendations, cross government frameworks would be required.

After discussion the Board noted the content of the Varney Report and potential impacts on the Agency.  The Board also endorsed  the basis on which the Agency would engage with the NI Reform Programme service transformation subject to assurances that there would be no accountability or undue bureaucracy.

Internet Protocol Telephony (IPT) Update (AMB 42/07)
Mr Boyle outlined the details of the update and stated this was a follow up to the September 2006 paper to the Board which outlined the potential direction for future Agency telephony services.  He added that the purpose of this paper was to provide the Board with an update on the progress made since then and to recommend next steps.

Mr Boyle stated that BT had responded to requirements by providing a solution proposal that would assure NISSA partners i.e. Dept. of Employment and Learning and Delivery and Innovation Division that the rollout would in no way compromise service delivery or the integrity and security of other NICS systems.  He provided detail on the proposed pilot to take place on 2 sites commencing in September ’07 which would run for an anticipated 6-8 weeks.

After discussion the Board endorsed the next steps/approach outlined in the paper.  Mr Boyle agreed to remit a further update to Octobers Board to take account of the SSA and DWP experience.
(Action Point 26/07:Mr Boyle)

DACS Update On Proposed Approach Pending End Of Contract (AMB 44/07)
Mr Boyle introduced this paper and stated that the purpose of this paper was to highlight to Board members that the current DACS Contract was due to expire in 2010 with resulting implications for the impacted business areas.  He added that the system was considered as a business critical system which would need to be continued or replaced by a similar or better system.
After discussion Mr Boyle agreed to remit the paper to August’s AMB to inform the Board on the preferred option on how this is taken forward.
(Action Point 27/07:Mr Boyle)

Financial Allocations & Needs 2007/08 (AMB 46/07)
Mr Boyd outlined the details of the Agency’s Budget Allocation for 2007/08 and proposed Needs Bids proposed for this financial year.

After discussion the Board approved the allocation of Baseline funds as detailed including Needs, Overtime, GAE, Other Current and Capital. The Board also sought assurances that future bids, including monthly overtime bids, should have prior approval from the appropriate Director before submission to the Board.  This was agreed.

SSA Risk Register – Quarterly Update (AMB 43/07)
Mr Boyd introduced the Agency’s 2006/07 Risk Register, covering the final quarter, January 07 to March 07.  He asked the Board to discuss and note progress against key risks.  

He provided detail on the downgrading/upgrading of the Risks referring to:

After discussion the Board noted the progress against key risk subject to the following amendments:

Efficiency Strategy
Mr Boyd agreed to set up a Formal Group to take the Efficiency Strategy forward. This would be constituted as a sub-committee of the Board.  Mr Boyd agreed to provide AMB colleagues with an update the following week.
(Action Point 29/07:Mr Boyd)

Appraisals – Performance Management
The Board asked that staff ensure that all end of year Appraisals are completed within the required deadlines.

Decision Making Training
Mr Boyle agreed to provide the Board with an update in May 2007.
(Action Point 30/07: Mr Boyle)

Date of Next Meeting
The next AMB meeting would take place on Thursday 31 May 2007 in the 5^th Floor Boardroom at 10.00am.

Flu Pandemic Update (AMB 35/07)
The Board noted the SSA Fraud – Recovery of Overpayments Report.

New Method of Payment (NMOP) Procurement (AMB 41/07)
The Board noted the Programme Protection Interim Strategy.

Supplier Transformation Update (AMB 45/07)
The Board noted the Programme Protection Interim Strategy.