The following table is the blank Efficiency Delivery Plan template by linxiaoqin

VIEWS: 3 PAGES: 232

									Efficiency Delivery Plans
        2008-2011

       May 2010
                                        Contents
                                                                                  Page
1.        Introduction                                                               9

2.        Crown Office and Procurator Fiscal Service
Revised COPFS / 1 Summary Justice Reform                                            17
Revised COPFS / 2 Future Office System : Phase 2                                    20
Revised COPFS / 3 Process Review and Reengineering                                  21

          Cabinet Secretary for Finance and Sustainable Growth
3.        Director General - Economy
        DG Economy / 1 Third Sector                                                 23
        DG Economy / 2 eCare                                                        25
        DG Economy / 3 Forth and Tay Road Bridges                                   27
        DG Economy / 4 Support Air Services                                         28
        DG Economy / 5 Highlands & Islands Airport Ltd.                             30
        DG Economy / 6 British Waterways Scotland                                   32
Revised DG Economy / 7 Support for Ferry Services                                   34
        DG Economy / 8 Stirling - Alloa - Kincardine Railway Project                36
        DG Economy / 9 Railway Construction Programme                               39
        DG Economy / 10 Network Rail Rebate                                         41
        DG Economy / 11 Network Rail Support                                        43
        DG Economy / 12 Management & Maintenance of the Trunk Road Network          45
        DG Economy / 13 Sustainable Reconstruction Technique                        48
        DG Economy / 14 Enterprise, Energy & Tourism                                50
Revised DG Economy / 17 General Register Office for Scotland                        53
        DG Economy / 18 Planning and Building Standards                             56
        DG Economy / 19 Local Government                                            57
        DG Economy / 20 Public Service Reform Resource Management                   59
        DG Economy / 21 Rail Franchise                                              61
        DG Economy / 22 Asset Management Improvement Programme (AMIP)               63
        DG Economy / 23 Management and Maintenance of the Trunk Road Network –
                        Performance Audit Group 2009 Commission                     65
NEW DG Economy / 24 Concessionary Fares                                             67

4.        Director General - Finance and Corporate Services
          DG Finance and Corporate Services / 1 e-Procurement Scotland              69
          DG Finance and Corporate Services / 2 Scottish Public Pensions Agency     71
          DG Finance and Corporate Services / 3 Central Administration              72

          Cabinet Secretary for Education and Lifelong Learning
5.        Director General - Education
        DG Education / 2 GLOW                                                       75
Revised DG Education / 3 Learning & Teaching Scotland                               78
        DG Education / 4 Inspiring Scotland (Henry Duncan Initiative)               80
Revised DG Education / 5 Social Work Inspection Agency                              82
        DG Education / 6 Scottish Social Services Council                           84
        DG Education / 7 Scottish Childrens Reporters Administration                86
        DG Education / 8 Student Awards Agency for Scotland - GRASS                 88
        DG Education / 9 Student Awards Agency for Scotland - Eligibility           90
        DG Education / 10 Student Awards Agency for Scotland - Loans to Grants      92
        DG Education / 11 Scottish Funding Council                                  93
        DG Education / 12 Skills Development Scotland                               97
Revised DG Education / 13 Her Majesty’s Inspectorate of Education                  100
        DG Education / 14 Scottish Qualifications Authority                        102
        DG Education / 15 International activity in Scottish universities          104
Revised DG Education / 16 Student Teacher Intakes / Teacher Workforce Planning     105
Cabinet Secretary for Education and Lifelong Learning
5.    Director General - Education
      DG Education / 17 Care & Justice                                                  107
      DG Education / 18 Education Maintenance Allowance                                 109
      DG Education / 19 Employability and Skills                                        111
NEW DG Education / 20 ESF and Colleges                                                  115

          Cabinet Secretary for Rural Affairs and the Environment
6.        Director General - Environment
          DG Environment / 1 Crofters Commission                                        117
          DG Environment / 2 Rural Payments & Inspections                               118
          DG Environment / 3 Loch Lomond & the Trossachs Park Authority                 120
          DG Environment / 4 Cairngorms National Park Authority                         120
          DG Environment / 5 Deer Commission for Scotland                               120
          DG Environment / 6 Scottish Natural Heritage                                  121
          DG Environment / 7 Veterinary Surveillance                                    124
          DG Environment / 8 Voluntary Modulation                                       125
          DG Environment / 9 Scottish Environmental Protection Agency (SEPA)            128
          DG Environment / 10 Scottish Fisheries Protection Agency                      131
          DG Environment / 11 Other Agriculture                                         131
          DG Environment / 12 Fisheries Research Services                               131
          DG Environment / 13 Scottish Sustainable Development Forum                    131
          DG Environment / 14 Withdrawal of funding from the Hannah
                                Research Institute                                      132
          DG Environment / 15 Rowett Research Institute merger with the University of
                               Aberdeen (UoA).                                          134
          DG Environment / 16 Contract Research Fund (CRF)                              136
          DG Environment / 17 Forestry Commission Scotland                              137
          DG Environment / 18 Animal Health and Welfare Publicity                       139
          DG Environment / 19 Royal Botanic Garden Edinburgh                            140
          DG Environment / 20 / Marine Scotland                                         142

          Cabinet Secretary for Health and Wellbeing
7.        Director General - Health
Revised DG Health / 1 NHS 2% Efficiency Savings                                         145
Revised DG Health / 2 NHS Procurement                                                   147
        DG Health / 3 NHS Shared Support Services                                       148
Revised DG Health / 4 NHS Logistics                                                     151
        DG Health / 5 Improved Prescribing in Primary Care                              152
Revised DG Health / 6 Drug Purchasing                                                   154
        DG Health / 7 Care Commission                                                   156
        DG Health / 8 Countering NHS Fraud                                              158
        DG Health / 9 eHealth Telecoms Broadband Contract                               160
        DG Health / 10 eHealth IT Services Contract                                     162
        DG Health / 11 Food Standards Agency Scotland                                   164
        DG Health / 12 Affordable Housing Investment Programme *                        166
NEW DG Health / 17 NHS Procurement and Logistics                                        168
        DG Health / 13P Reduction in Absence                                            172
        DG Health / 14P Increasing Consultant Related Productivity                      176
        DG Health / 15P NHS Shared Support Services                                     179
        DG Health / 16P NHS Logistics                                                   181
          *   signed off by DG Justice
          Cabinet Secretary for Justice
8.        Director General - Justice
          DG Justice / 1 Accountant in Bankruptcy                                   183
          DG Justice / 2 Community Justice Services                                 183
Revised   DG Justice / 3 Police Central Government Budgets                          184
          DG Justice / 4 Parliament House Redevelopment                             187
          DG Justice / 5 Scottish Legal Services Ombudsman                          189
          DG Justice / 6 Fire Central Government                                    189
          DG Justice / 7 Scottish Legal Aid Board                                   190
          DG Justice / 8 Scottish Charity Appeals Panels Secretariat                192
          DG Justice / 9 Office of the Scottish Charity Regulator                   192
          DG Justice / 10 Scottish Prison Service Operating Expenditure             193
          DG Justice / 11 Scottish Prison Service Capital Charges                   195
          DG Justice / 12 Scottish Prison Service Capital Expenditure               197
          DG Justice / 13 Scottish Court Service Frontline reinvestment             199
          DG Justice / 14 Scottish Court Service Court Unification                  199
          DG Justice / 15 Scottish Court Service Online Risk Management System      199
          DG Justice / 16 Scottish Court Service Rationalisation of HQ              199
          DG Justice / 17 Improved Jury Management                                  199
          DG Justice / 18 Centralisation of Fines Collection                        199
          DG Justice / 19 Scottish Court Service Finance Management                 200
          DG Justice / 20 Scottish Court Service Sustainability Measures            200
          DG Justice / 21 Scottish Court Service Reduction in Consultancy Spend     200
          DG Justice / 22 Scottish Court Service Publications                       200
          DG Justice / 23 Scottish Court Service HR Efficiency Measures             200
          DG Justice / 24 Risk Management Authority                                 201
          DG Justice / 25 Parole Board for Scotland                                 203
          DG Justice / 26 Scottish Criminal Cases Review Commission                 203
          DG Justice / 27 Criminal Injuries Compensation Authority                  203
          DG Justice / 28 Victim Support Scotland                                   203
          DG Justice / 29 Courts Group - Courts Directorate                         203
          DG Justice / 30 Police Complaints Commissioner for Scotland               204
Revised   DG Justice / 31 Scottish Court Service                                    205
NEW       DG Justice / 32 Contracted Out Insolvency Services                        207
NEW       DG Justice / 33 AiB Accommodation                                         209
NEW       DG Justice / 34 Her Majesty's Inspectorate of Constabulary for Scotland   209
NEW       DG Justice / 35 Mental Health Tribunal for Scotland - Administration      209

First Minister
9.     Permanent Secretary - First Minister
Revised   Perm Sec - First Minister / 1 Cultural Collections                        211
Revised   Perm Sec - First Minister / 2 National Performing Companies               215
          Perm Sec - First Minister / 3 Gaelic Development Bodies                   218
          Perm Sec - First Minister / 5 Major Events                                220
          Perm Sec - First Minister / 6 International Development Fund              220
          Perm Sec - First Minister / 7 International Strategy                      220
          Perm Sec - First Minister / 8 Fresh Talent                                220
          Perm Sec - First Minister / 9 Scotland’s International Image              220
          Perm Sec - First Minister / 10 European Strategy                          221
          Perm Sec - First Minister / 11 National Archives of Scotland              221
          Perm Sec - First Minister / 12 Historic Scotland                          222
          Perm Sec - First Minister / 13 RCAHMS                                     224
          Perm Sec - First Minister / 14 Communications Directorate                 224
          Perm Sec - First Minister / 15 Corporate Analytical Services              224
          Perm Sec - First Minister / 16 Scottish Arts Council                      225
          Perm Sec - First Minister / 17 Scottish Screen                            228

10.       List of efficiency projects with expected savings less than £0.5m         229
                                                                                 Introduction


1. Introduction
2008-11 Efficiency Programme

1. At the beginning of 2004 the Scottish Executive began developing an efficiency
   programme to help tackle waste, bureaucracy and duplication in Scotland’s public
   sector for the period of the SR04 Spending Review. Both the UK and Scottish
   Efficiency Programmes continue through the period of the 2007 Spending Review
   (2008-11). On 14 November 2007, Scottish Ministers announced the outcome of
   the Scottish Spending Review and confirmed the Scottish target to deliver 2%
   increasing cash-releasing efficiencies each year amounting to £1.6 billion in
   2010 –2011.
 Year                      2008-09                2009-10                  2010-11
 In-year                   £534.4m               £1,068.8m                £1,603.2m
 savings target              2%                     4%                       6%

2. This is an efficiency programme appropriate for Scotland and is not directly
   comparable to the efficiency agenda in England. For example there are no
   targets in Scotland for headcount reduction or for savings from disposal of
   assets, and baselines have historically been more rigorously applied.

Efficiency Delivery Plans

3. The summary of the target and identified cash savings in each portfolio is as
   follows:
                               2008-09                 2009-10                  2010-11
                          Target    Outturn       Target   Identified       Target  Identified
PORTFOLIO
                           £m         £m           £m         £m             £m        £m
COPFS                       2.0          2.9        4.0           4.7        6.0           6.0
DG Economy                 47.3      69.472        88.0         92.3        132.3       140.9
DG Economy –
Local Government          174.7         257.7     349.4          349.4      524.1          524.1
DG Education              48.4         56.692     103.3          103.5      154.9          166.8
DG Environment            11.6         65.788     23.1            61.9      34.6            69.0
DG FCS                                            10.52           10.5       15.8           15.8
DG Health                 215.2      331.947      430.4          433.6      645.6          645.6
DG Justice                19.2        32.234      38.4            39.9      57.6            57.8
Perm-Sec - Admin           4.8         6.598
Perm Sec – First
Minister                   5.3         15.554      10.6            17.0      15.9            19.6
Scottish Water *           5.9                     11.2                      16.4
TOTAL                     534.4      838.885      1068.8        1112.9      1603.2        1645.6
                                                 Totals may not be precise because of rounding
* Scottish Water is subject to independent economic regulation by the Water Industry
Commission for Scotland (WICS) which means that efficiency targets are set and monitored
independently from the Government. The notional target for Scottish Water will be met from
over-performance across portfolios.




                                                                                            9
Introduction


4. Activity continues throughout the Scottish public sector to identify areas for
   further efficiency. As projects are embedded in one sector, examples of best
   practice will be disseminated to other sectors.

Local authorities

5. Efficiency gains which are generated from areas whose funding is set out in the
   Concordat between the Scottish Government and local government
   (http://www.scotland.gov.uk/Publications/2007/11/13092240/concordat) will be
   reported by COSLA. The Director General (DG) efficiency targets do not include
   these areas and Efficiency Delivery Plans from DGs should not include
   efficiencies from areas which, under the Concordat, will fall to local government
   to deliver.

Third Sector

6. The third sector is not included within the definition of public sector and hence
   individual organisations would not be expected to provide reports as part of the
   Efficient Government programme. However, like all delivery relationships,
   Scottish Government will look to third sector organisations to perform efficiently
   and effectively. Funding to third sector organisations is not excluded from
   efficient government baselines.

Efficiency Delivery Plans

7. The Efficiency Delivery Plans for all efficiency projects with a forecast cash
   saving of £500,000 or more in 2010-11 are included in this document. The
   associated Efficiency Delivery Plans for those projects with a forecast saving of
   less than £500,000 in 2010-11 have not been included in this document.
   Efficiency projects worth less than £500,000 have been listed in a table on page
   229 since it is important to count these savings and to keep these projects in
   sight, as they may provide examples of sound efficiency projects for further
   dissemination. However, we consider it would be disproportionate to subject
   them to the same level of scrutiny as those projects worth £500,000 or more.

8. The Efficiency Delivery Plans record:
   • a description of the project;
   • the nature of the efficiencies to be realised and the resource to be released
      and/or the enhanced output;
   • how the efficiencies will be used to improve services;
   • the names of those accountable for the saving and those who manage the
   • project;
   • the actions to be undertaken and the dependencies that have to be factored
      in; and
   • clarification on how the efficiency will be measured, monitored and reported.

9. It should be noted that the Efficiency Delivery Plan is a working document. Many
   efficiency projects are at different stages of development and some projects have
   more detailed Efficiency Delivery Plans than others. However, as in the previous
   programme, we will only publish Efficiency Delivery Plans once we are sure that
   they are robust. We will publish further Efficiency Delivery Plans later.


   10
                                                                             Introduction


Summary of guidance
10. We have published detailed guidance for portfolios which is available on the
    internet. The main points of this guidance are as follows:
Baselines
11. In order to measure or quantify an efficiency, you must have a firm baseline to
    work from. The Scottish Government’s Efficient Government programme uses
    the 2007-08 Department expenditure limit (DEL) as a baseline for calculating all
    efficiencies. It is important that this baseline is rigorously applied to ensure
    consistency and permit proper comparisons between efficiencies.
12. Proxy or substitute baseline measures are only permitted if there is no 2007-08
    baseline information for an efficiency; for example, the activity is new and did not
    exist before 2008. In all cases, use of a proxy or substitute baseline must be
    agreed in advance with the Efficient Government Delivery Unit with the
    justification for such a baseline set out in writing for audit purposes.
13. The Scottish Government does not support the use of counterfactual baselines.
    This is where a baseline is changed to reflect changes in external circumstances
    such as the introduction of new policies. It is important to apply unaltered
    2007-08 baselines to ensure that the process for calculating efficiencies in
    Scotland is transparent and publicly defensible. However, where a responsibility
    for a policy or service transfers then the efficiency would also transfer. In effect
    the relevant 2007-08 baseline transfers
14. Portfolios have been asked to deliver 2% increasing cash gains each year on
    their 2007-2008 DEL baseline. It is entirely a matter for each portfolio to
    determine how to allocate their DEL budget and to decide how their target figure
    will be met through internal Directorate and Agency/NDPB efficiency
    contributions.
What constitutes an efficiency?
15. Efficiency is not about making cuts. It is about enhancing value for money,
    improving public service delivery and raising productivity.
16. Efficiency targets are expressed in cash terms. To measure progress against
    these targets, all efficiencies need to be measured or converted into a financial
    gain. All efficiencies should be supported by quality based assessments to
    demonstrate they are efficiencies and not cuts.
17. There are two types of efficiency:

   17.1.      Cash-releasing efficiencies are achieved by delivering an
              actual resource efficiency because the organisation or
              function delivers the same service at a reduced cost which
              might be demonstrated by delivering the same outcome(s) or
              output(s) for a reduced input (e.g. costs, people,
              procurement, assets etc) or delivering a reduced unit cost
              allowing an increased volume of service for the same cost.
              Cash efficiencies release financial resources to be used for
              other or increased public services.


                                                                                        11
Introduction



      17.2.        Time-releasing or productivity efficiencies are defined as
                   efficiency measures which do not release cash but allow
                   public services to deliver better services with the same
                   money (for example, through workforce reform or better
                   support).
18. The 2% target may only be met by cash-releasing gains but any delivery
    above 2% may include either and a project may contain elements of both types of
    gain.

19. Certain types of activity do not count as efficiency gains:

           • Cuts that result in poorer or reduced public services.
           • Increased income from higher fees and charges to the public.

Time Saving / Productivity Efficiency Projects

20. In this issue we have included some time releasing or increased productivity
    efficiency projects. These projects produce important efficiency gains even
    though they do not count towards the 2% target.

21. Where an organisation can clearly demonstrate it has made an efficiency that
    releases staff resource to allow it to deliver necessary additional services, e.g. in
    support of Ministerial priorities, within existing budget, this avoids the need for
    additional funding and meets the definition at 4.3.1 of the guidance 1. It is
    essentially no different from a cash-releasing efficiency and as such, it is likely to
    be eligible to contribute towards the 2% efficiency target.

Netting Off Costs

22. As previously, where it is possible to isolate development costs giving rise to
    efficiency, then those costs should be netted off the value of the efficiencies
    claimed. In the majority of cases, however, development is expected to arise to
    meet a number of business objectives and not solely to generate an efficiency
    saving. In such cases development costs should not be offset against the
    efficiencies claimed.

Quality Measures

23. One of the principles of the Government’s Efficiency Programme is that service
    levels must be maintained or improved in order to demonstrate delivery of an
    efficiency. It is therefore important that organisations monitor the quality of
    service levels. It is important that effectiveness is not overlooked in the drive for
    efficiency. Effectiveness is the extent to which actual outcomes are achieved,
    against the outcomes planned.




1
    http://www.scotland.gov.uk/Publications/2008/04/processandguidance/Q/forceupdate/on/Page/4


      12
                                                                             Introduction


24. Wherever possible, existing quality measures should be utilised including:

       •   Appropriate Key Performance Indicators (KPIs) or other performance
           indicators relevant to the particular efficiency initiative;
       •   Existing user/customer satisfaction surveys or ratings;
       •   Service level agreement targets.

25. Where there is no direct measure available for monitoring service quality, it may
    be possible to utilise proxy measures instead.

Recurring and Non-recurring Efficiencies

26. The inclusion of non-recurring efficiencies is a relaxation in the criteria for
    acceptable efficiency gains from the 2005-08 programme. This followed
    discussion and agreement by Audit Scotland. It is important to understand what
    recurring means and how this differs from what one may refer to as a cumulative
    efficiency. As an illustration, where the baseline in 07-08 is £10,000 and the cost
    in 08-09 is £8,000, then the cash efficiency in 08-09 is £2,000. If the cost
    remains at £8,000 a year through 09-10 and 10-11 then the efficiency remains at
    £2,000 for each of those years giving efficiencies of £2k/£2k/£2k. At no point are
    the three aggregated to give £6,000.

27. Efficiency gains may be either recurring or non-recurring and will count towards
    the efficiency target for each year in which the gain is delivered. When a
    recurrent efficiency is claimed, it must be maintained in future years relevant to
    the baseline year. It can increase or remain the same but if it decreases then the
    gain may need to be reclassified from recurrent to non-recurrent in whole or part.
    Any reduction in the recurrent element will need to be met by a corresponding
    increase elsewhere to ensure full delivery of the efficiency target in each year.

28. Non-recurring efficiencies will deliver a variety of valid one off or time-releasing
    efficiencies. It is important to recognise these activities as they demonstrate
    efficiency activity in an organisation. An example of such an efficiency is the sale
    of a surplus asset, e.g. a building or land plot. The bulk of the efficiency will be
    the one-off cash gain from the sale. However it is important to note that there
    may also be some recurring efficiencies from the sale of an asset if on-going
    maintenance costs are reduced or eliminated. Efficiency gains must be used
    sustainably by the organisation to help deliver improvements in service and will
    count towards efficiency targets. It should be noted that accounting rules require
    capital receipts to be used only for ‘expenditure of a capital nature’.

Procurement

29. In the case of procurement, there is scope to count procurement-related
    efficiencies towards Efficient Government targets where the efficiency actions are
    sustainable and are embedded at a programme level. The effect of procurement
    benefits may sometimes only be achieved through collaboration between the
    procurement function and the budget holders who make purchasing decisions.
    Gains will however be identified and updated by those responsible for the budget
    from which the purchase is made.



                                                                                      13
Introduction



30. Efficiency savings expected from procurement activity will be separately identified
    within the Efficiency Delivery Plan. These anticipated savings will be monitored
    by the Scottish Procurement Directorate (SPD).

Asset Management

31. Efficient management of the Government’s asset base is critical to the delivery
    and performance of public services. The implementation strategy, delivered
    following the publication of the Asset Management review on 28 January 2008,
    requires all parts of the Scottish Government to have an Asset Management Plan
    in place by 30 April 2008. The report made 8 main recommendations and these
    form the core of the Action Plan. This will encourage greater exploitation of
    under-utilised assets and the disposal of assets no longer required for service
    delivery.

Monitoring Of Efficiency Gains

32. All efficiency gains require monitoring and measurement on an annual cycle.
   Each project in the programme has an assigned Portfolio Manager who works
   with the relevant portfolio to monitor progress across the financial year.

Outturn Report

33. Each year the Scottish Government is required to produce an annual report on
   the delivery of efficiencies by the Scottish Government Efficient Government
   Programme. This report is referred to as the ‘Outturn Report’ and will be
   published in the autumn of each year once all outturn figures are available. The
   report is published on the internet as well as being provided to the Finance
   Committee and placed in the Parliamentary Library.

The role of the Efficient Government Delivery Unit

34. It is the role of the Efficient Government Delivery Unit to provide the challenge
    role which helps ensure that the programme is robust and can withstand both an
    external audit scrutiny and provide the Cabinet Secretary with evidence to defend
    the programme in Parliament or in front of Parliamentary committees. It is also
    part of the role of the team to help assess the quality of proposed efficiency
    projects and, where necessary, to work with project managers to improve
    proposals.




   14
                                                                             Introduction


35. The Portfolio Managers are set out below:

    Portfolio Officer          Portfolio
                               First Minister
    Gerry Hendricks
                               Education and Lifelong Learning
                               Health and Wellbeing
    Shona MacPherson
                               Rural Affairs and Environment
                               Finance & Sustainable Growth including local
                               government
                               Administration
    Lorimer Mackenzie
                               Justice
                               COPFS
                               Procurement workstream
                               Shared Services
    Julie Kane
                               Public Sector ICT policy

The role of the Directors General

36. Each Director General remains responsible for delivering the target for their
    portfolio, maintaining the quality or volume of public service and for providing the
    necessary assurances and supporting evidence.

The role of external audit

37. As in the previous programme, all efficiency statements and supporting evidence
    may be subjected to external audit by Audit Scotland.




                                                                                      15
Introduction




   16
                                                       Crown Office and Procurator Fiscal Service


1. Portfolio/Number/Name: COPFS / 1 / Summary Justice Reform                                    Revised
2. Programme/Activity:
Reform of Summary Justice System. More efficient disposal of cases by making increased use of
alternatives to prosecution and by trying some cases in lower level courts eg cases previously held in
the sheriff courts may be heard in district courts, at lower cost.

3. Efficiency                                            2008-09           2009-10          2010-11
                 3.1 Target; £m
                                          Cash             1.92              3.7               4.1
                                                         2008-09           2009-10          2010-11
                 3.2 Efficiencies
                                          Cash              2.1               -                -
                     delivered; £m
                                          Time               -                -                -
4. Accountable Officer for delivery               Norman McFadyen
5. Project Manager                                Mark Howells
6. EGDD Portfolio Manager                         Lorimer Mackenzie
7. Description    7.1 What is the efficiency improvement? How will the efficiencies be
of efficiency and made?
actions to be     Alternatives to prosecution will deliver efficiencies by using Direct Measures
taken             rather than prosecution through the courts. There are three main strands to the
                     reform:
                         1) There will be a reduction in the number of cases that are reported to
                            COPFS, due to the increased use of Direct Measures by the police,
                            (e.g. written warnings and fixed penalties). These are cases that, until
                            the end of 2007/08 will/ would have been processed through District
                            Court or have been the subject of Direct Measures by the Fiscal;
                         2) There will be a reduction in the number of cases that go to court due to
                            the increased use of COPFS Direct Measures, (e.g. fiscal fines and
                            fixed penalties). It is also expected that there will be a reduction in the
                            level of work at Sheriff Summary Courts, with cases moving to the less
                            expensive to run District Courts; and
                         3) A reduction in the number of cases which fiscals consider before taking
                            ‘No Proceedings’.
                     It is also expected that there will be a reduction in ‘churn’, ie repeated
                     intermediate and trial diets and in the number of witnesses cited. This is difficult
                     to assess at present but should lead to savings later in the EG programme
                     period.
                     The year 1 saving includes the estimated cost of rationalising legal grade pay.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Actions have been put in place to ensure delivery of SJR efficiencies. In
                     particular, legislation has been passed to raise the level of fiscal fines to £300,
                     and to introduce fiscal compensation offers up to £5,000 and combined fiscal
                     fine and fiscal compensation offers, with a more efficient system of enforcement
                     Detailed guidance on the use of these increased Direct Measure powers has
                     been produced for Procurators Fiscal. The law has changed so that recipients
                     of Direct Measures must actively challenge any Direct Measure offered to them,
                     the absence of such challenge being deemed to be acceptance making them
                     enforceable. This will decrease the number of Direct Measures which fail and
                     result in a subsequent court case. Improved training for Justices of the Peace, to
                     encourage full use of their sentencing powers, new Road Traffic sentencing
                     powers equivalent to the Sheriff Court, and guidance to Procurators Fiscal to
                     reinforce the use of the lowest court forum, have also been put in place to allow
                     a shift in business from Sheriff Summary to District/Justice of the Peace courts.



                                                                                                      17
Crown Office and Procurator Fiscal Service


8. Associated     8.1     Are there any development or redundancy costs associated with
costs             the delivery of this efficiency?
                  There are no development or redundancy costs.

9. Measurement    9.1     What are the inputs that will be measured?
                  For alternatives to prosecution, the legal resources that are required to
                  prosecute cases compared to those that are currently needed. The expectation
                  is that the justice system will be able to process cases more quickly and
                  effectively as well as more cheaply.

                  9.2     What are the outputs that will be measured?
                  The outputs over the EG reporting period will focus on the areas of efficiency
                  improvement identified at section 7.1 above. It is likely to take time before the
                  full impact of SJR is turned into the full efficiency savings. However, by the end
                  of year two of the programme we expect to have generated £3.7m savings as
                  follows:
                  A reduction in overall case numbers coming to COPFS and related costs. This
                  will be measured against throughput in 2007/08 and applied to the most up to
                  date, published figures, for cost per case in District Courts. This is considered
                  the most appropriate method since the bulk of cases that will no longer come to
                  COPFS would have previously been dealt with through plea at District Court.
                  A reduction in accused cases marked as ‘no proceedings’. This will be
                  measured by applying actual numbers in the EG reporting period against the
                  number of cases marked as such in 2007/08, and by applying accepted
                  weighted notional costs to the total COPFS budget.
                  An increase in COPFS direct measures leading to a reduction in the workload at
                  Sheriff Courts, with cases moving to the cheaper to run District Courts. This will
                  be measured by establishing average costs for Sheriff and District court costs
                  using the most up to date costs per case published government and national
                  data on caseloads at 2007/08, and using caseloads in the reporting period to
                  determine the EG savings.

                  9.3     What is the baseline for inputs and outputs?
                  The baseline for inputs and outputs are the number of cases in 2007/08 and
                  their associated costs. This will include separately identifying 2007/08 caseloads
                  in the different courts to help provide a calculation on whether these measures
                  have successfully reduced the cost of processing the relevant categories of
                  offence.

10. Quality       10.1 What quality indicators are being used to ensure that quality of
cross-check       service is maintained or improved?
                  COPFS will monitor the impact of change in Sheriff summary sentencing powers
                  to see if there is any evidence of ‘sentencing drift’, where increased sentencing
                  powers means that longer sentences than before are imposed for the same
                  offences. If this has proven to have occurred there may be a number of
                  consequences including an impact on the EG calculations and we would need to
                  reconsider these in the light of any corrective action that might be taken.




   18
                                                   Crown Office and Procurator Fiscal Service


11. Monitoring   11.1 What are the arrangements for monitoring the delivery of
                 efficiencies?
                 Data will be monitored using statistics gathered by the Crown Office and
                 Scottish Courts Service, much of which is already published eg Costs,
                 Sentencing Profiles in the Scottish Criminal Justice System. Relevant figures
                 will be gathered each year from 2007/08 in order to assess ongoing trends.
12. Reporting    12.1 What are the arrangements for reporting the delivery of
                 efficiencies?
                 Director of Finance will monitor and report to the COPFS Management Board,
                 changes will be reflected in area Business Plans and the efficiencies will be
                 reported as part of the Scottish Government’s reporting of its overall efficiencies.

13.              13.1 Explain if your efficiencies are dependent on legislation or other
Dependencies     structural changes being achieved.
                 The expected efficiencies are supported by legislation which has received Royal
                 Assent – the Criminal Proceedings Etc (Reform) (Scotland) Act 2007 – partially
                 commenced on 10 December 2007 and which will come fully into force on 10
                 March 2008.

14. Use of       14.1 How are the efficiencies released from improvement activity
efficiencies     being used to improve services?
                 This efficiency was assumed as part of the allocation made by the Scottish
                 Government to COPFS. This freed up resources for Ministers to allocate to
                 their priorities.




                                                                                                 19
Crown Office and Procurator Fiscal Service


                                                                                 Revised
             1. Director General/Number/Name: Crown Office and
     Procurator Fiscal Service - COPFS/ 2 - Future Office System: Phase 2

        Moved to list of efficiency projects with expected savings less than £0.5m
                                see page 229 for information.




   20
                                                      Crown Office and Procurator Fiscal Service


1. Portfolio/Number/Name: COPFS / 3 / Process Review and Reengineering                         Revised
2. Programme/Activity:
The review, and where desirable, reengineering of processes eg a review of the processes for
delivering staff training has led to the establishment and full utilisation of the Scottish Prosecution
College(leading to savings as courses are run more cost effectively) and the development of e-
learning, which will further reduce travel and trainer costs. In addition, further cost savings are
envisaged through greater use of video conferencing and ongoing development of other business
processes.

3. Efficiency                                            2008-09          2009-10           2010-11
                 3.1 Target; £m
                                          Cash              0.1             0.75              1.6
                                                         2008-09          2009-10           2010-11
                 3.2 Efficiencies
                                          Cash              0.3              -                 -
                     delivered; £m
                                          Time               -               -                 -
4. Accountable Officer for delivery            Catherine Dyer
5. Project Manager                             Mark Howells
6. EGDD Portfolio Manager                      Lorimer Mackenzie
7. Description    7.1 What is the efficiency improvement? How will the efficiencies be
of efficiency and made?
actions to be     Improvements will flow from the systematic review and where necessary
taken             reengineering of processes.

                     The establishment of the Scottish Prosecution College in November 2007 has
                     resulted in clear cost savings as courses are run more economically in-house.
                     This EG recognises the benefits of running the centre to full potential.
                     Efficiencies will also be made through use of e-learning.      Improved use of
                     technology is expected to release further cash savings, e.g. video conferencing
                     will reduce travel and subsistence costs.

                     2009/10 and 2010/11 forecast outturn includes projected savings of £650k
                     represented by collaborative savings from procurement. Recurring savings are
                     expected from telecoms efficiencies. In addition, in 2010/11 COPFS expect
                     further process efficiency savings from the work led by the Strategic
                     Development Division. Also expect savings by implementing streamline/and
                     cost effective practices, e.g. more efficient payment methods; efficient use of all
                     contracts, including copiers as well as educating staff on ensuring cost effective
                     travel/accommodation.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Full utilisation of the Scottish Prosecution College facilities and development
                     and further enhancement of e-learning. Availability of facilities and encouraging
                     use of video conferencing.
                     Effective project Management arrangements. Work closely with SG on
                     collaborative procurement arrangements. Educate staff for efficient use of
                     contracts.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     There are no development or redundancy costs associated with the Scottish
                     Prosecution College, which is now operational.           There may be some
                     development costs involved with delivering effective e-learning programmes.




                                                                                                      21
Crown Office and Procurator Fiscal Service


9. Measurement    9.1     What are the inputs that will be measured?
                  These include: the number of trainers; facility costs; travel and subsistence
                  costs; cost of running video conferences.
                  Also ,Telecoms costs; Procurement costs; Travel costs; Copier use.

                  9.2     What are the outputs that will be measured?
                  Training levels delivered (in person and e-learning).            Usage of video
                  conferencing. All other costs at 9.1 against baseline.

                  9.3     What is the baseline for inputs and outputs?
                  The baseline for measuring inputs and outputs are costs in 2007/08 (this will
                  take account of savings generated in the SPC’s first four months of operation in
                  2007-08).

10. Quality       10.1 What quality indicators are being used to ensure that quality of
cross-check       service is maintained or improved?
                  Course feedback. Surveys on usage of video conferencing
                  Other Staff surveys.

11. Monitoring    11.1 What are the arrangements for monitoring the delivery of
                  efficiencies?
                  The business planning process will be developed to include a discussion on
                  efficiency improvements and an annual review of delivery of initiatives.
                  Ledger reports. Meetings/correspondence with Training Division, SDD and
                  Finance colleagues. Reports on copier usage.

12. Reporting     12.1 What are the arrangements for reporting the delivery of
                  efficiencies?
                  Director of Finance will monitor and report to the COPFS Management Board,
                  changes will be reflected in area Business Plans and the efficiencies will be
                  reported as part of the Scottish Government’s reporting of its overall efficiencies.

13.               13.1 Explain if your efficiencies are dependent on legislation or other
Dependencies      structural changes being achieved.
                  Savings are not dependent on legislation or other structural changes being
                  achieved.

14. Use of        14.1 How are the efficiencies released from improvement activity
efficiencies      being used to improve services?
                  This efficiency was assumed as part of the allocation made by the Scottish
                  Government to COPFS. This freed up resources for Ministers to allocate to
                  their priorities.




   22
                                                                                    DG Economy


1. Portfolio/Number/Name: DG Economy / DG Economy / 1 / Third Sector
2. Programme/Activity:
Third Sector Investment Programmes and Mentoring Support

3. Efficiency                                        2008-09          2009-10          2010-11
                3.1 Target; £m
                                       Cash             0.15             1.0              1.7
                                                     2008-09          2009-10          2010-11
                3.2 Efficiencies
                                       Cash            0.235             -                -
                    delivered; £m
                                       Time              -               -                -
4. Accountable Officer for delivery                Dr Andrew Goudie
5. Project Manager                                 Guthrie Handley
6. EGDD Portfolio Manager                          Lorimer Mackenzie
7. Description of 7.1 What is the efficiency      improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiency improvement      is associated with the design of the Scottish
taken
                     Investment Fund and the Enterprise Fund to provide a more efficient process
                     of investment in third sector organisations, including optimising loans and
                     equity investment to build a more financially sustainable sector.

                     The design of the SIF builds on the lessons from the evaluation of the
                     Futurebuilders programme and is intended to allow the agreement of blended
                     funding based on a holistic assessment of organisational requirements rather
                     than a multiplicity of appraisals by separate organisations.      This should
                     reduce the bureaucracy for the individual organisations, improve the operation
                     of market decisions by addressing information failures and consequentially
                     reduce the levels of central government grant required to support private
                     finance and enable projects to proceed.

                     The design of the Enterprise Fund also draws on the evaluation of the
                     Seedcorn element of the FFB programme and provides expanded
                     opportunities for these organisational investments.

                     The FFB evaluation identifies public investment as levering 43% private sector
                     investment through the Investment strand and 34% through the Seedcorn
                     strand. In moving to the new programme structures we aim to shift this
                     leverage to 47% within the Scottish Investment Fund and 37% in the
                     Enterprise Fund.

                     The efficiency improvement associated with the introduction of a consortium
                     based mentoring contract results from the enhanced range of skills and
                     networks available from a consortia containing third sector networking
                     organisation, business networking organisation and a mentoring specialist.
                     This reduces the time and resource needed to identify and match potential
                     mentors and mentees resulting a reduced unit cost per successful
                     relationship.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Launch of both SIF and Enterprise Funds achieved during 2008-09.
                     Launch of Mentoring contract during 2008-09.




                                                                                                23
DG Economy


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No

9. Measurement       9.1     What are the inputs that will be measured?
                     Level of financial investment through SIF/Enterprise Fund and other public
                     sector funds.

                     Level of financial support to mentoring contract.

                     9.2     What are the outputs that will be measured?
                     Level of loan and other private sector funding leveraged by SIF.

                     Unit cost per mentoring relationship.

                     9.3     What is the baseline for inputs and outputs?
                     Ratio of investment to leverage achieved through the Futurebuilders
                     programme as evidenced in programme evaluation.

                     Comparison of new contract arrangements              with   previous   funding
                     arrangements for mentoring support.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     On-going monitoring of individual investment outcomes.      Evaluation of
                     programme, including experience of applicants, will directly assess the
                     effectiveness relative to FFB.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monthly monitoring reports from both funds.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Comparison of actuals with FFB baselines.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     Increase in number of Third Sector organisations assisted through the
                     Scottish Investment Fund and Enterprise Fund as well as an increase in the
                     number of mentoring partnerships successfully established.




   24
                                                                                       DG Economy


1. Portfolio/Number/Name: DG Economy / 2 / eCare
2. Programme/Activity:
The programme provides for multi-agency data sharing of personal information. This involves
building software adaptors between the eCare framework and proprietary software packages in use
by social workers, schools, NHS and other services across Scotland. The programme went live in two
early implementation sites in late 2007 and will be available for implementation across Scotland from
2008/09. The speed of implementation will depend on local readiness and the provision of adaptors
by the eCare team to proprietary packages.

3. Efficiency                                             2008-09        2009-10          2010-11
                 3.1 Target; £m
                                         Cash                0.7             -                 -
                                                          2008-09        2009-10          2010-11
                 3.2 Efficiencies
                                         Cash              0.729            -                -
                     delivered; £m
                                         Time                 -             -                -
4. Accountable Officer for delivery           Dr Andrew Goudie
5. Project Manager                            Robert Forman
6. EGDD Portfolio Manager                     Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Using improved technical architecture to simplify process of connecting
taken
                       business applications to the national framework. Previously we have had to
                       pay software houses the full costs of adapting their packages to exchange
                       data with the multi-agency eCare store. With this solution we will need to
                       commission much less work from the vendors.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Provide a standard piece of software “middleware solution” to each Data
                       Sharing Partnership that provides core functionality to prevent it having to be
                       commissioned from each software vendor. Prospective savings are based on
                       7 adaptors being procured in 08/09

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       Yes Development costs – business case still being developed in conjunction
                       with detailed planning for 08/09 (target date end April 08). But significant net
                       savings being expected of the order identified following successful proof of
                       concept.

9. Measurement         9.1     What are the inputs that will be measured?
                       Cost of adapter without “appliance”

                       9.2     What are the outputs that will be measured?
                       Cost of adapter with “appliance”

                       9.3     What is the baseline for inputs and outputs?
                       Actual costs for different approaches.




                                                                                                   25
DG Economy


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Quality assured by Microsoft, Oracle and LogicaCMG and customers including
                     NHS Glasgow and Clyde, NHS Fife, NHS Lothian, South Ayrshire Council.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Transformational Technologies Division will monitor rollout and report to
                     eCare programme board.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Reporting timing, cost, sustainability and effectiveness to eCare Programme
                     Board

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Dependent on local partners having clear plans for local software provision
                     and willingness to adopt this approach

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The efficiency will be assumed as part of the eHealth money allocated. This
                     allows for more connectors to be built substantially increasing the number of
                     agencies able to share data electronically




   26
                                                                     DG Economy



1. Director General/Number/Name: DG Economy - DG Economy / 3 -
                        Forth & Tay Road Bridges

  Moved to list of efficiency projects with expected savings less than £0.5m
                          see page 229 for information.




                                                                               27
DG Economy


1. Portfolio/Number/Name: DG Economy / 4 / Support for Air Services
2. Programme/Activity:
Efficiency savings have been delivered through the introduction of Air Discount Scheme to support
the cost of air travel for residents of our island and remote communities instead of a network of Public
Service Obligation which were expected to cost substantially more.

3. Efficiency                                            2008-09          2009-10          2010-11
                 3.1 Target; £m
                                          Cash              5.4              4.9              4.6
                                                         2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                          Cash                0              -                -
                     delivered; £m
                                          Time                -              -                -
4. Accountable Officer for delivery           Dr Andrew Goudie
5. Project Manager                            Ken Crawford, APM Division
6. EGDD Portfolio Manager                     Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The Air Discount Scheme reduces the cost of air travel by 40% for eligible
taken
                        residents in island and remote communities. By working with the airline
                        industry it is able to secure a general lowering of fares and service
                        improvements. Total cost of the scheme is expected to be some £6.6m per
                        annum.

                        The 2007-08 baseline had included a budget of £12m to fund the introduction
                        of a network of PSO contracts covering the same areas which is no longer
                        necessary

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        The efficiency saving has already been delivered.          The ADS is already
                        operational.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No, the development costs have been met already.

9. Measurement          9.1     What are the inputs that will be measured?
                        Costs of discount scheme and reimbursement to airlines.

                        9.2     What are the outputs that will be measured?
                        Passenger numbers on supportive routes, average fare levels and service
                        frequency/ capacity enhancements.

                        9.3     What is the baseline for inputs and outputs?
                        Performance of routes prior to ADS.

10. Quality cross-      10.1 What quality indicators are being used to ensure that quality of
check                   service is maintained or improved?
                        Service frequency and capacity is being monitored.




    28
                                                                                   DG Economy


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   Regular data on scheme usage is collected by ADS administration unit.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Regular profiling prepared for Director of Transport

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to fund the ADS. This freed up resources for Ministers to allocate
                   to their other priorities including support for lifeline air and ferry services.




                                                                                               29
DG Economy


1. Portfolio/Number/Name: DG Economy / 5 / Highlands & Islands Airports Ltd
2. Programme/Activity:
The Chief Executive and management of HIAL will be expected to deliver cumulative 2% efficiency
savings over the next 3 years as part of the efficient running of the company to be reinvested in the
company’s operations.

3. Efficiency                                             2008-09       2009-10          2010-11
                 3.1 Target; £m
                                          Cash               0.5           1.0              1.5
                                                          2008-09       2009-10          2010-11
                 3.2 Efficiencies
                                          Cash             1.598           -                -
                     delivered; £m
                                          Time                -            -                -
4. Accountable Officer for delivery                    Dr Andrew Goudie and
                                                       Managing Director, HIAL
5. Project Manager                                     Ken Crawford, APM Division
6. EGDD Portfolio Manager                              Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   HIAL are expected to deliver a range of efficiency improvements across their
taken
                       operations to reinvest in frontline services.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Management action by HIAL Board and Managing Director.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       None expected.

9. Measurement         9.1     What are the inputs that will be measured?
                       Operational costs of company.

                       9.2     What are the outputs that will be measured?
                       Service delivery and future investment plans.

                       9.3     What is the baseline for inputs and outputs?
                       Comparison with 2007-08 performance.

10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       Quality will continue to be measured via the local managers at the
                       Airport/Aerodrome locations through the regular audits undertaken by SRG
                       and implementation of the Safety Management System.
11. Monitoring         11.1 What are the arrangements for monitoring the delivery of
                       efficiencies?
                       Regular monitoring of company budgets and financial performance as
                       reported to Board.




    30
                                                                               DG Economy


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Will be reported regularly to HIAL Board and expected to feature in
                   Company’s annual report.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to Highlands and Islands Airport Ltd.




                                                                                          31
DG Economy


1. Portfolio/Number/Name: DG Economy / 6 / British Waterways Scotland
2. Programme/Activity:
British Waterways Scotland (BWS) will be expected to deliver a minimum of 2% accumulative
efficiency savings in the operation of that body in Scotland to be reinvested in the maintenance and
operation of the canal network.

3. Efficiency                                            2008-09          2009-10        2010-11
                 3.1 Target; £m
                                         Cash              0.25                0.5           0.75
                                                         2008-09          2009-10        2010-11
                 3.2 Efficiencies
                                         Cash              0.27              -              -
                     delivered; £m
                                         Time                -               -              -
                                                      Dr Andrew Goudie and
4. Accountable Officer for delivery                   Director, British Waterways Scotland
5. Project Manager                                    Margaret Horn
6. EGDD Portfolio Manager                             Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   BWS will be required as part of their grant fundings to demonstrate
taken              accumulative efficiencies of 2% per annum in the operation of that body over
                       the Spending Review period. It will be for BWS to determine the precise
                       efficiencies to be delivered across their activities.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Action by the Director and managers of BWS in running the organisation more
                       efficiently.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       None expected.

9. Measurement         9.1     What are the inputs that will be measured?
                       Cost of BWS operations.

                       9.2     What are the outputs that will be measured?
                       Level of delivery of services against operating plan.

                       9.3     What is the baseline for inputs and outputs?
                       Comparison with 2007-08 budget and operating plan.

10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       BWS collects regular data on canal users’ experience which will inform this
                       element.

11. Monitoring         11.1 What are the arrangements for monitoring the delivery of
                       efficiencies?
                       Regular monitoring reports from BWS are expected.




   32
                                                                               DG Economy


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Expected to be included in Annual Reports of BWS.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to British Waterways Scotland.




                                                                                          33
DG Economy


1. Portfolio/Number/Name: DG Economy / 7 / Support for Ferry Services                        Revised
2. Programme/Activity:
The contract arrangements for delivery of ferry services to the Northern Isles and Clyde & Hebrides
limit the allowable cost increases on key elements of the budget requiring the company to deliver
efficiency in their operations to reduce costs.

3. Efficiency                                             2008-09        2009-10         2010-11
                3.1 Target; £m
                                        Cash                1.0             1.0             6.37
                                                          2008-09        2009-10         2010-11
                3.2 Efficiencies
                                        Cash               3.953            -               -
                    delivered; £m
                                        Time                 -              -               -
                                                        Dr Andrew Goudie and
4. Accountable Officer for delivery                     Managing Director, David MacBrayne Ltd
5. Project Manager                                      Richard Hadfield
6. EGDD Portfolio Manager                               Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The ferry services concerned are delivered by 2 subsidiaries of David
taken
                      MacBrayne Ltd following tender processes. Both contracts run for a period of
                      6 years. They contain provision for recalculating the contract cost base,
                      resources and therefore subsidy assumptions required. Some key elements
                      of these costs are fixed to increase by no more than CPI. It is anticipated that
                      some costs will rise in line with RPI or higher and the company will be under
                      pressure to find efficiency savings to fund these cost increases.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Action by David MacBrayne management

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      None expected, but salary costs are a major element in the CHFS contract.

9. Measurement        9.1     What are the inputs that will be measured?
                      Cost of operating the contract.

                      9.2     What are the outputs that will be measured?
                      Service delivery in accordance with contract performance requirements.

                      9.3     What is the baseline for inputs and outputs?
                      Financial models that underpin contract agreements.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Regular performance monitoring information and negotiation with company,
                      together with financial penalties for performance failures.




   34
                                                                                    DG Economy


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   Detailed report on company performance verified by sample checking.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   We shall monitor through our analysis of financial performance

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to David MacBrayne Ltd.




                                                                                           35
DG Economy


1. Portfolio/Number/Name: DG Economy / 8 / Stirling – Alloa – Kincardine Railway (SAK)
                                  Project
2. Programme/Activity:
Stirling – Alloa – Kincardine Railway project.
The project, which will re-open approximately 21km of existing, disused and abandoned railway lines
between Stirling Station and Longannet Power Station in Kincardine. A new railway station is being
built in Alloa town centre allowing direct hourly passenger services between Alloa, Stirling and
Glasgow Queen Street stations while passengers can change at Stirling for further services to
Edinburgh. The line will also carry coal from the West of Scotland to Longannet Power Station and
potentially provide freight services to other customers along the line.

Construction work is expected to be finished in spring 2008 with the first trains running following a
period of commissioning and driver training. It is anticipated that passenger services will be running
by summer 2008.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                            Cash            2               0                 0
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                            Cash            0               -                -
                     delivered; £m
                                            Time            -               -                -
                                                      Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                   Transport Scotland (David Middleton)
5. Project Manager                                    Scott Prentice
6. EGDD Portfolio Manager                             Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   This project was originally promoted and to be delivered by third party
taken
                       sponsors and scheduled to complete in summer 2007 with an estimated final
                       cost of £65m. Because of slippage, Transport Scotland, in June 2007, felt it
                       necessary to take a “hands on” approach and directly manage delivery of the
                       final phase of the project taking over day-to-day management of the scheme
                       in August 2007. A simplified governance structure was implemented and
                       objectives and roles and responsibilities agreed with the new Project Board. A
                       due diligence audit was commissioned and this reported an increased
                       estimated final cost. The streamlined management structure has provided
                       efficiency in two main areas:

                           1. Direct savings of £0.3m in management fees between August 2007
                              and July 2008.
                           2. Improved communications and clear definition of roles and
                              responsibilities has resulted in a reduction in the estimated final cost
                              of £3.7m. These efficiencies were realised in the 2007-08 financial
                              year.
                           3. Tangible opportunities for further savings of up to £2m have been
                              identified on land & compensation and construction contract costs,
                              and are being aggressively pursued by the project team.
                           4. The final cost of the project is therefore realistically expected to be
                              reduced by approximately 5% compared with the liabilities faced
                              when Transport Scotland took over management of the project.
                              Efficiencies resulting from any further reduction in the estimated final
                              cost from the current level will be realised in the 2008-09 financial
                              year.




    36
                                                                                         DG Economy


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      Transport Scotland approval for the authority required to adopt a “hands on”
                      management approach for this project.

                      Establishment of the new governance structure was agreed between
                      Transport Scotland, Clackmannanshire Council and Network Rail at the first
                      meeting of the new Project Board in July 2007.

                      Transport Scotland redeployed existing staff resource during July and August
                      to form the Project Delivery Team. Project Delivery is being managed by a
                      team of three, only one of whom is dedicated full time to the project.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Existing staff resources were deployed to deliver the project. Redundancy
                      costs were incurred by tie ltd, the previous delivery managers and this has
                      been accounted for in the estimated saving of £0.3m for tie ltd fees.

9. Measurement        9.1     What are the inputs that will be measured?
                      Completion of the construction works to the correct quality to ensure efficient
                      handover of the new infrastructure to Network Rail post commissioning.
                      Contractors programme and actual / forecast costs will be monitored.

                      9.2     What are the outputs that will be measured?
                      The project final cost, handover date to Network Rail and the date where
                      operational services commence

                      9.3     What is the baseline for inputs and outputs?
                      Baseline programme and cost was approved by the Project Board in October
                      2007.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      There were clear quality failings in the inherited delivery model for this project.
                      The project quality success factor is for the completed railway to be
                      successfully handed over to Network Rail to take control of operations and
                      maintenance within two weeks of commissioning.

                      This milestone must be met in order to allow training for train drivers and
                      signallers to be undertaken and operational services to commence in summer
                      2008.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      The project is being controlled against a baseline target cost and programme,
                      i.e. reporting each period compares the “gap” between the current forecasts
                      and the baseline target.




                                                                                                     37
DG Economy


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Progress against the baseline cost and programme. These will be reported to
                   Rail Finance in Transport Scotland. The goal is reduced project costs for the
                   same outputs.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   The structural changes for Transport Scotland to move to a “hands on” project
                   management role were approved in June 2007. The structure of the project
                   team was formalised on 7 December 2007. No other changes are required.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Transport Scotland has retained these savings to meet other spending
                   pressures and priorities within Transport Scotland.




   38
                                                                                       DG Economy


1. Portfolio/Number/Name: DG Economy / 9 /Railway Construction Programme
2. Programme/Activity:
The railway construction programme is being run by Transport Scotland. Since the formation of the
Rail Delivery Directorate in 2006 a considerable body of experience has been established in
negotiating with Network Rail (NR) in the latter’s role of construction project delivery.
Currently there is one very-near complete negotiation of specification and price in relation to the
Airdrie to Bathgate line (A2B). The savings will be delivered over the period from 2007-08 until
completion of the project, expected in 2010-11.

The team will now move onto look at other rail construction schemes (Borders Rail, Glasgow Airport
Rail Link, & Edinburgh to Glasgow Improvements and therefore we expect these efficiencies to grow
& continue for a number of years to come (at least until 2014).

3. Efficiency                                          2008-09           2009-10          2010-11
                3.1 Target; £m
                                        Cash              15.0             15.0              15.0
                                                       2008-09           2009-10          2010-11
                3.2 Efficiencies
                                        Cash               15               -                -
                    delivered; £m
                                        Time                -               -                -
                                                     Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                  Transport Scotland (David Middleton)
5. Project Manager                                   Jerry Morrissey
6. EGDD Portfolio Manager                            Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The negotiated savings are achieved by Agency staff led by Bill Reeve
taken
                      (Director of Rail Delivery) looking at the latest technologies and best practice
                      to identify efficiency gains and challenge cost assumptions. In a monopoly
                      environment, it is vital we challenge all costs & efficiency assumptions. We
                      have successfully achieved this on Airdrie to Bathgate and expect to do the
                      same on future rail projects.
                      Price is £70m less than the price offered by NR after several rounds of
                      negotiation.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      For the Agency to obtain the final offer in writing from NR of the fixed price at
                      the reduced level. This results from many days spent investigating and
                      reviewing the cost estimates made by NR.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No

9. Measurement        9.1     What are the inputs that will be measured?
                      Work conducted by NR to plan, build and deliver the new railway with
                      associated works such as stations and depots.

                      9.2     What are the outputs that will be measured?
                      The completed project will be delivered by NR with the Rail Regulator (ORR)
                      reviewing the quality of the work.




                                                                                                    39
DG Economy


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     2006 prices for the agreed spec and offered price from NR.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Agency staff experience but especially the ORR review of the adequacy and
                     acceptability of the construction programme.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     With price being fixed the efficiencies will show during the construction years.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Reduced project costs for the same outputs. Costs transferred for the project
                     will be less.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     None required.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation by Ministers to Transport
                     Scotland. Transport Scotland has retained these savings to meet other
                     spending pressures and priorities within Transport Scotland.




   40
                                                                                    DG Economy


1. Portfolio/Number/Name: DG Economy / 10 / Network Rail Rebate
2. Programme/Activity:
We have reviewed the Railway costs and persuaded Rail Regulator (ORR) to extract for us a support
Grant rebate of £7.2m for the year 08-09.

3. Efficiency                                          2008-09         2009-10          2010-11
                 3.1 Target; £m
                                        Cash              7.2              nil              nil
                                                       2008-09         2009-10          2010-11
                 3.2 Efficiencies
                                        Cash             7.31             -                -
                     delivered; £m
                                        Time               -              -                -
                                                    Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                 Transport Scotland (David Middleton)
5. Project Manager                                  David Binnie
6. EGDD Portfolio Manager                           Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   We are able to obtain the ORR recommended level of effort for a cost to
taken
                      Scottish Ministers for year 08-09 which is less than the original Grant award
                      from 2004 Determination.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Actions completed last year to secure the payment of this rebate by Network
                      Rail.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No

9. Measurement        9.1     What are the inputs that will be measured?
                      Financial Grant support paid to NR by Scottish Ministers.

                      9.2     What are the outputs that will be measured?
                      ORR continue to monitor the work and outputs of NR in Scotland.

                      9.3     What is the baseline for inputs and outputs?
                      Work during 06-07 to agree the rebate amount.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      ORR monitor and report on the quality of the work undertaken by NR.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      Regular ORR reports each quarter. We will ensure that rebate is paid to
                      Scottish Ministers or netted off against other grant payments to NR.




                                                                                                  41
DG Economy


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Regular ORR quarterly reports. Rebate will be reflected in lower grant support
                   costs from Scottish Ministers to NR.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Not dependent.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation by Ministers to Transport
                   Scotland. Transport Scotland has retained these savings to meet other
                   spending pressures and priorities within Transport Scotland.




   42
                                                                                        DG Economy


1. Portfolio/Number/Name: DG Economy / 11 / Network Rail support
2. Programme/Activity:
Network Rail Periodic Review by Office of Rail Regulator (ORR) in relation to the Control Period 4
from 2009 to 2014 (CP4) requires input from Scottish Ministers. In July 2007 the Scottish HLOS (High
Level Output Specification) and SoFA (Statement of Public Funds Available) were published setting
out the requirements for the 5 years of CP4.
This will set the level of support to Network Rail (NR) from Scottish Ministers as determined by the
ORR.

3. Efficiency                                          2008-09         2009-10           2010-11
                 3.1 Target; £m
                                         Cash             nil            25.0              25.0
                                                       2008-09         2009-10           2010-11
                 3.2 Efficiencies
                                         Cash             -               -                 -
                     delivered; £m
                                         Time             -               -                 -
                                                     Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                  Transport Scotland (David Middleton)
5. Project Manager                                   Jonathan Pugh/ Martin McKinlay
6. EGDD Portfolio Manager                            Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Efficiency saving comes from work by Agency staff to identify potential
taken
                       efficiencies in the NR Maintenance & Renewal programme costed by NR in
                       their Cost Model. Agreement on the efficiencies to be made will be determined
                       by the ORR & the level of financial support needed by NR; this potentially
                       being less than the NR requested amounts of financial support from their
                       Business Plan of October 2007.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       For Agency to ensure that ORR Determination reflects the efficiencies found
                       in the review of the Cost Model.
                       To maintain regular reviews of progress with ORR in accepting the Agency
                       findings and to deliver the lower costs suggested by Agency Staff.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       None.
                       The costs associated are minimal and have not been netted off.

9. Measurement         9.1     What are the inputs that will be measured?
                       Network Rail’s work to maintain the Rail Network.
                       The financial Grant support to Network Rail from Scottish Ministers and
                       reduces from £366m in 08/09 to £331m pa in 09/10 & 10/11; the cost in 09/10
                       would have been around £375m without intervention. The particular element
                       of efficiency produced by work to date is £25M pa lower for costs in CP4.




                                                                                                  43
DG Economy


9. Measurement       9.2     What are the outputs that will be measured?
                     The ORR will monitor and review the renewal, operational & maintenance
                     work (OMR) undertaken by NR. Both for quality and quantity of completed
                     work.

                     9.3     What is the baseline for inputs and outputs?
                     The work carried out on OMR by NR in period (CP3) from 2004-2009.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     ORR monitor and report on the quality of work undertaken by NR.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     ORR monitor and report on delivery of efficiencies and ensure that any
                     inefficiency is penalised.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Regular ORR reports each quarter. Financial savings are secured by the
                     ORR’s Determination for CP4 as against the figures requested of ORR by NR
                     in 2007.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No, they are not.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation by Ministers to Transport
                     Scotland. Transport Scotland has retained these savings to meet other
                     spending pressures and priorities within Transport Scotland.




   44
                                                                                     DG Economy


1. Portfolio/Number/Name: DG Economy / 12 / Management and Maintenance of the Trunk
                                  Road Network
2. Programme/Activity:
Maintenance of the Scottish Trunk Road network was initially subject to competitive tender in 1996.
Contracts were re-tendered in 2001 based on four operating areas or ‘Units’ and were known as the
Second Generation of Contracts or ‘2G Contracts’. A further 3rd Generation contract competition in 2
phases was undertaken in 2005/06 and 2006/07 with the specific aims of:

   o   Clarifying Transport Scotland’s requirements to ensure accurate pricing
   o   Introduction of efficiency gains from improved technologies and management processes
   o   Providing a clear and extensive tendering process

Two Units were tendered and new operators commenced work on 1 April 2006 for 5 years with the
remaining two commencing work on 1 April 2007, also for 5 years. The cumulative cash releasing
savings of the ‘3G Contracts’, in comparison with what the same work would have cost under the
previous ‘2G Contracts’, are likely to be around £19m for the 2007/08 year.

Phasing the competition for the 3rd Generation trunk road contracts has also helped to secure better
value for money as has the use of e-procurement practices and an enhanced contract strategy. The
contract form has been enhanced by the combined use of lump sums and a library of prices hence
streamlining efficient contract management.

3. Efficiency                                          2008-09         2009-10          2010-11
                 3.1 Target; £m
                                         Cash             15              19               15
                                                       2008-09         2009-10          2010-11
                 3.2 Efficiencies
                                         Cash           19.157            -                -
                     delivered; £m
                                         Time              -              -                -
                                                     Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                  Transport Scotland (David Middleton)
5. Project Manager                                   Donald Morrison
6. EGDD Portfolio Manager                            Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiency improvement will be made through more competitive prices for
taken
                       trunk roads management and maintenance allowing for more work to be
                       undertaken for the same or less resource. Improved prices were secured
                       through a more competitive procurement process and through providing better
                       information on the trunk road network from improved asset management
                       plans. Current analysis shows the potential for 15 to 17 percent more work to
                       be carried out.




                                                                                                 45
DG Economy


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      Procurement practices:

                      The procurement process has been completed and included:-
                          • Increased engagement with suppliers.
                          • Use of an effective and well managed consultative procurement
                              process.
                          • Use of a well planned and risk based tender programme.
                      In order to secure the delivery of this efficiency improvement, the four
                      contracts for managing and maintaining the trunk roads networks were
                      awarded in two phases in December 2005 and December 2006.

                      Asset management planning:

                      The following ongoing actions are required to ensure delivery of the savings:-

                            •   Develop structural maintenance condition indicators which will allow
                                us to track road condition across a range of treatments.
                            •   Develop performance measurement for road structures and bridges
                            •   Formally implement a comprehensive AMP.
                            •   Continue to review the performance and enhance our IT systems to
                                enable us to better identify need, priorities and assess life cycle costs.
                            •   Carry out further surveys of our inventory to establish more accurate
                                life cycle and condition data.
                            •   Carry out customer surveys to identify the standard of service that is
                                expected by our stakeholders, balancing quality (level of service) with
                                price (willingness to pay).

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      There are development costs associated with improving asset management
                      planning for the trunk roads network. These development costs have not been
                      netted off the efficiency savings since they are one-off development costs
                      whereas the efficiency savings recur annually throughout the lifetime of the
                      contract and beyond. Furthermore, efficiency was not the sole driver of
                      investing in improved asset management planning arrangements. Improving
                      customer service was a significant factor when deciding to invest in improved
                      asset management planning arrangements.
                      There are also costs associated with the development of the e-procurement
                      process. These have not been netted off as efficiency was not the sole driver

9. Measurement        9.1       What are the inputs that will be measured?
                      The input that will be measured is expenditure on trunk roads maintenance.

                      9.2       What are the outputs that will be measured?
                      The outputs that will be measured is the volume of roads maintenance carried
                      out and multiplied by the rates for the new and previous maintenance and
                      management contracts.

                      9.3       What is the baseline for inputs and outputs?
                      The baseline for measuring inputs and outputs is the previous trunk roads
                      contracts, which will be compared with the new trunk road contracts.



   46
                                                                                      DG Economy


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The quality of trunk roads management and maintenance will be monitored to
                     ensure that the quality of roads management and maintenance is maintained
                     or improved.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The National Network Manager TR-NMD is responsible for monitoring the
                     quantity and quality of outputs from the new trunk road management and
                     maintenance contracts. This will be done by comparing the cost of carrying
                     out a typical sample of work on an annual basis and comparing the cost
                     between the new and previous contracts. The work sample will be devised by
                     the independent Performance Audit Group who audit, monitor and report on
                     the performance of the contractors on a regular basis.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Information on the quantity and quality of outputs is reported to the National
                     Network Manager by the Performance Audit Group who monitor and report on
                     the performance of the contractors hence ensuring that the efficiency
                     improvements are being secured.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No legislative or structural changes required to deliver these efficiency savings

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation by Ministers to Transport
                     Scotland. Transport Scotland has retained these savings to meet other
                     spending pressures and priorities within Transport Scotland.




                                                                                                  47
DG Economy


1. Portfolio/Number/Name: DG Economy / 13 / Sustainable Reconstruction Technique
2. Programme/Activity:
Efficiency savings will be delivered through the use of a sustainable reconstruction technique called
‘crack and seat’, where the existing road construction is considered appropriate for its use. The
technique involves the removal of the top road surface layers and the cracking and rolling (breaking
up) of the remaining in situ road construction layers (usually lean mix concrete). A further benefit of
this technique is that less waste material is sent to landfill sites.

3. Efficiency                                            2008-09          2009-10          2010-11
                 3.1 Target; £m
                                          Cash              0.7              2.1              0.7
                                                         2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                          Cash              0                -                -
                     delivered; £m
                                          Time               -               -                -
                                                      Dr Andrew Goudie and Chief Executive,
4. Accountable Officer for delivery                   Transport Scotland (David Middleton)
5. Project Manager                                    Donald Morrison
6. EGDD Portfolio Manager                             Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiency to be made is to deliver the same road maintenance at a lower
taken
                       price
                       The efficiency improvement will mean that where the existing road
                       construction is suitable for the crack and seat technique around twice the
                       length of trunk road can be reconstructed for the same level of investment.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       The main action needed to secure delivery of this efficiency improvement is to
                       identify the sections of trunk road that may be suitable for the ‘crack and seat’
                       technique in the forward road maintenance remedial programme and ensure
                       that this technique is considered for appropriate maintenance schemes

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       There are no development or redundancy costs associated with the delivery of
                       this efficiency.

9. Measurement         9.1      What are the inputs that will be measured?
                       The input measured will be the construction costs compared against other
                       more conventional forms of construction.

                       9.2      What are the outputs that will be measured?
                       The output that will be measured is the amount of road maintenance carried
                       out compared to the use of more conventional techniques.

                       9.3      What is the baseline for inputs and outputs?
                       The baseline for inputs and outputs is comparison with other contracts using
                       conventional remedial techniques.




    48
                                                                                     DG Economy


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Quality will be monitored against current industry standards and against the
                     performance of other sections of the network repaired with other more
                     conventional techniques.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Trunk Roads Network Management Directorate is responsible for monitoring
                     the quantity and quality of outputs from our Operating Company contracts.
                     This work will be undertaken by the Performance Audit Group who audit,
                     monitor and report on the performance of maintenance contracts.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Information on the quantity and quality of outputs is reported to the Trunk
                     Roads Network Management Directorate by the independent Performance
                     Audit Group who monitor and report on the performance of maintenance
                     contracts.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No legislative or structural changes required to deliver these efficiency
                     savings.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation by Ministers to Transport
                     Scotland. Transport Scotland has retained these savings to meet other
                     spending pressures and priorities within Transport Scotland.




                                                                                                 49
DG Economy


1. Portfolio/Number/Name: DG Economy / 14 / Enterprise, Energy & Tourism
2. Programme/Activity:
Action to stimulate economic growth through 3 major NDPBs (Scottish Enterprise, Highlands &
Islands Enterprise and Visit Scotland), the use of European Structure Funds and a range of Scottish
Government grant schemes.

3. Efficiency                                         2008-09          2009-10          2010-11
                3.1 Target; £m
                                        Cash            14.17           17.16              25.8
                                                      2008-09          2009-10          2010-11
                3.2 Efficiencies
                                        Cash            14.11             -                -
                    delivered; £m
                                        Time              -               -                -
4. Accountable Officer for delivery              Dr Andrew Goudie
5. Project Manager                               David Wilson
6. EGDD Portfolio Manager                        Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be      These fall into 5 categories covering each NDPB, ESF and in-house grant
taken              schemes.
                      Scottish Enterprise
                      -   Restructuring plan announced by Ministers in September 2007 will realise
                          circa £8m in staffing/accommodation costs in 2008/09; increasing to circa
                          £10m per annum with effect from 2009/10.
                      Highlands and Islands Enterprise
                      -   Highlands and Islands Enterprise (HIE) has undertaken an organisational
                          restructure to ensure the organisation better reflected its new focus to
                          improve service delivery. A selective voluntary severance (SVS) action
                          was undertaken by 31/3/08. The annual paybill savings results from this
                          will be over £2.7 million.
                      ♦     Reduction in spend on staff business travel elements
                      ♦     Reduction in spend on office accommodation
                      ♦     Reduce/eliminate invoices from ad hoc facilities procurement
                      ♦     Reduction in spend on sundry office supplies
                      How will the efficiencies be made?
                      ♦    Increased use of e-procurement with embedded visa/GPC
                      ♦    Increased selective use of on-line purchase of air travel visa/GPC
                      ♦    Contract for supply of hire car with improved rates
                      ♦    Revision of staff travel policy and tighter staff e-claims process
                      ♦    Reduction in staff office space occupied and termination of leases
                      ♦    Sharing HIE’s office space with others (recovery of rent/rates)
                      These will realise £0.230 p.a.
                      Visit Scotland
                      Savings are in the range of £1.2m to £1.76m for each year in addition to
                      efficiency savings of £1m a year from earlier efficiency exercises. This is
                      made up of:
                      • Restructuring of the organisation on functional basis with a focus on both
                        tourism businesses and visitors as customers and a reduction in
                        Directorates will release between £0.5m and £1m each year;
                      • Property savings from sharing offices with other agencies and reorganising
                        Tourist Information Centres etc will provide savings of £0.25m a year; and
                      • Savings from improvements in procurement both internally and through
                        central procurement initiatives of £0.47m a year.


   50
                                                                                        DG Economy


7. Description of     These savings were built in to the results of SR2007, i.e. VisitScotland had its
efficiency and        grant in aid over the SR period reduced by £1m a year in 09-10 and 10-11,
actions to be taken   and the further efficiencies it plans to make will be needed to cover that
                      reduction. That was made clear when VisitScotland were informally notified of
                      the outcome of the Spending Review.
                      As a proportion of the VisitScotland overall operating budget (i.e. ignoring
                      capital, funding provided for direct Ryder Cup projects costs) these savings
                      amount to between 2.2% to 3.4% (in year savings fro 2008-09) and 3.1% to
                      4.4% in future years.
                      ESF:
                      The principal efficiency savings is the reduction in the number of external
                      delivery bodies administering Structural Funds programmes. For 2000-06, 5
                      organisations – called Programme Management Executives (PMEs) – were
                      required. Given the fewer number of programmes and smaller total allocation
                      of funding for 2007-13, only 2 organisations will be used – ‘Intermediate
                      Administration Bodies’ (IABs). IABs are directly contracted to the Scottish
                      Government for the period up to the end of 2009 (new contracts will be
                      considered for the period after). The contracts were subject to a full tendering
                      exercise and have been made to ESEP Ltd (for the Lowlands & Uplands
                      Scotland SF programmes) and Highlands & Islands (Scotland) Structural
                      Funds Partnership Ltd (for the H&I SF programmes).
                      The savings are to the public sector as a whole, rather than the Scottish
                      Government itself. For 2000-06, the PMEs were paid for by a combination of
                      contributions from Scottish stakeholders (not including the Executive) and
                      technical assistance from the EU programmes. The cost to the Scottish public
                      sector was approximately £16.2 million over the whole period. This method of
                      funding intermediary bodies has been disallowed by the Commission, hence
                      the decision by the Executive to take funding of the bodies in-house directly
                      (EU technical assistance can still pay for a portion of the costs, so the net cost
                      to the Scottish public sector – i.e. the Scottish Government – is estimated to
                      be £4.5 million over the 7 years). Consequently, there is a savings to the
                      overall public sector, but an additional cost to the Scottish Government.
                      Savings are £1.64m p.a.
                      Other Grants
                             • Reducing limits and extending coverage of Regional Selective
                               Assistance will deliver more economic growth in terms of GDP and
                               lower cost for jobs than before.
                             • Possible Energy Saving Trust efficiencies in Year 2 and 3 through
                               delivering more schemes for same money.
                             • Passing responsibility for 2 small innovation schemes to SEn and 2
                               to the Scottish Funding Council should achieve admin savings and
                               delivery gains in years 2 and 3.
                      All of these savings are still to be quantified.
                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      As above.




                                                                                                    51
DG Economy


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     Scottish Enterprise:
                     There are redundancy costs associated with the organisation restructuring in
                     07/08.
                     Highlands and Islands Enterprise:
                     Redundancy cost of approximately £4m funded from 2007-08 budget
                     allocation. Re-training a number of remaining staff, costs met from within
                     ongoing staff training budget.
                     VisitScotland:
                     An additional £5m was allocated in 2007-08 towards the costs of the
                     restructuring VisitScotland into fewer customer-focused directorates to
                     improve the service provided and defray some costs of property realignments
                     (e.g. early cessation of leases etc).
                     These costs have not been netted off from the efficiency savings.

9. Measurement       9.1     What are the inputs that will be measured?
                     Salary, headcount and operational/maintenance costs.

                     9.2     What are the outputs that will be measured?
                     Economic growth arising out of the various interventions carried out by
                     Agencies and this Directorate.

                     9.3     What is the baseline for inputs and outputs?
                     2007/08

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Key performance indicators and measures relevant              to    delivery   of
                     output/targets as agreed with Scottish Government.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Agencies/NDPBs monitor costs on a monthly basis as part of sound financial
                     management process.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Agency/NDPB Directors of Finance and Performance will receive quarterly
                     reports, liaison with sponsor Division in EET and Strategic Council oversight.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     Relevant organisation will use relevant savings to deliver increased front line
                     services and grants to customers.



   52
                                                                                           DG Economy


1. Portfolio/Number/Name: DG Economy / 17 / GROS                                                 Revised
2. Programme/Activity:
Efficiency Savings within Corporate Services
i)Procurement Savings
ii) IT Virtualisation Technologies
iii) Telecom Infrastructure & Support Arrangements
iv) 2011 Census Programme

3. Efficiency                                             2008-09           2009-10           2010-11
                 3.1 Target; £m
                                          Cash              0.141            0.167               1.2
                                                          2008-09           2009-10           2010-11
                 3.2 Efficiencies
                                          Cash              0.256
                 delivered; £m
                                          Time
4. Accountable Officer for delivery                    Dr Andrew Goudie and Audrey Robertson,
                                                       GROS
5. Project Manager                                     Craig Stewart
6. EGDD Portfolio Manager                              Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   i) The efficiency improvement will be created through the actions of our
taken
                       qualified team of purchasers achieving VFM or direct savings through effective
                       strategic procurement or sourcing processes.
                       ii) As a result of the introduction of virtualisation IT technologies, less external
                       support and consultancy will be required to maintain, develop and configure
                       our hardware and software, which was previously spread across multiple
                       servers and operating environments. The number of servers we have will be
                       reduced so further savings will arise where future maintenance costs of file
                       servers will be substantially less under a virtualisation environment.
                       iii) To deploy better value services for the provision of telecom connections to
                       the National Health Service (NHS) and Office for National Statistics (ONS).
                       iv) To implement a revised delivery plan for a number of key deliverables for
                       the 2011 Census through switching from a number of outsource to in-house
                       solutions.
                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       i) Main actions include all or a mixture of the following best practices as
                       advocated by CG COPE:
                       • Effective stakeholder/technical engagement in drafting specs and ongoing
                           procurement process
                       • Optimum procurement strategy developed to assure VFM based on
                           effective data analysis, market analysis etc.
                       • Effective Supplier management and supplier negotiation
                       • Innovative demand management techniques
                       • Innovative pricing models
                       • Product sampling, pilot or pathfinder projects
                       • Use of latest e-sourcing tools
                       • Effective contract implementation strategy (including supplier
                           adoption/supplier catalogue management strategy, management of
                           change strategy, communication strategy, product selection strategy,
                           compliance strategy, etc)
                       • Ongoing supplier management and development strategy



                                                                                                       53
DG Economy


7. Description of     Other areas where savings can be achieved are through Collaboration or Cost
efficiency and        Avoidance but most of GROS savings are through strategic procurement
actions to be taken   above.
                      ii) Installation of the Virtualisation environment and the transfer of IT systems
                      onto this environment.
                      iii) To negotiate alternative communication arrangements with the NHS and
                      ONS at less cost.
                      iv) Implementing a range of in-house solutions for key 2011 deliverables
                      including: Census Helpline, Downstream Processing, Map Production, Picking
                      & Packing, Payroll and the provision of two Field Offices.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      i) Non-measurable costs associated with training and procurement personnel
                      and extended use of Easybuy and framework contracts.
                      ii) Investment will mainly be made in 2007-08. Although there will be time
                      releasing efficiencies there will be no redundancies.
                      iii) No
                      iv) There are some development and set-up costs associated to the Census
                      Helpline and refurbishment of Station Road for the provision of Picking and
                      Packing and provision of two Field Offices.

9. Measurement        9.1       What are the inputs that will be measured?
                      i) Number and scale of procurements.
                      ii) Change requests and requests for new hardware and software provision.
                      iii) Service demand.
                      iv) Various critical success factors assigned to each in-house solution (e.g.
                      answering helpline calls within to a pre-determined service level).

                      9.2       What are the outputs that will be measured?
                      i) Quality and cost of goods and services procured.
                      ii) Levels of service and levels of internal time spent and external support
                      used.
                      iii) Cost of services from service providers and levels of service.
                      iv) Costs incurred for the various in-house solutions.

                      9.3       What is the baseline for inputs and outputs?
                      i) Estimates for similar goods and services from previous years where an
                      increase in £70K is above the savings realised in 2007-08.
                      ii) Current external support and maintenance costs of £97K.
                      iii) Current cost of the communication services used - £40K.
                      iv) Professional market advice and formal tender responses for the delivery of
                      in-house solutions.




   54
                                                                                      DG Economy


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     i) That goods and services procured meet the requirements of our customers.
                     ii) Customer satisfaction with responsiveness to change.
                     iii) Customer satisfaction and robustness of services.
                     iv) Various critical success factors assigned to each in-house solution

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The Project Manager will liaise with appropriate customers and partners on a
                     quarterly basis.
                     The Procurement Manager provides similar quarterly and annual returns to
                     CG COPE (i).

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The Project Manager will seek feedback on the appropriate Manager’s
                     monitoring results on a quarterly basis, submitting them to the SG.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     i) Efficiencies are dependant on current and future purchasing guidance and
                     EU directives.
                     ii) Efficiencies are dependant on switching current IT systems into the
                     virtualisation environment.
                     iii) Efficiencies are dependant on external customers’ and partners’ agreement
                     over timing of providing alternative telecom infrastructure and support
                     arrangements.
                     iv) The Census (Scotland) Order 2010 and Census (Scotland) Regulations
                     2010.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     GROS’s objective for the SSR2007 was to retain a flat baseline for its core
                     and backroom services, with the exception of the Census which requires
                     investment. Through identifying savings in backroom services (e.g. IT
                     technologies) we can redeploy our resources to better meet the needs of our
                     core services e.g. provide a one-stop shop through creating a Scottish Family
                     History Service to improve genealogical services to the public.




                                                                                               55
DG Economy




           1. Director General/Number/Name: DG Economy / 18 /
                          Planning and Building Standards

       Moved to list of efficiency projects with expected savings less than £0.5m
                               see page 229 for information.




  56
                                                                                          DG Economy


1. Portfolio/Number/Name: DG Economy / 19 / Local Government
2. Programme/Activity:
The Scottish Government’s Concordat with Local Government sets out a new relationship between
the Scottish Government and local government. Local government has an excellent record to date in
its delivery of efficiency savings and recognises the need to continue to do so. For the period 2008-
09 to 2010-11, the level of efficiency savings for local government will be 2% per annum as it is for the
wider public sector. Under the concordat, local authorities will be allowed to retain all of these to
redeploy against ongoing pressures and address local priorities.

3. Efficiency                                             2008-09          2009-10           2010-11
                  3.1 Target; £m
                                             Cash           174.7            349.4             524.1
                                                          2008-09          2009-10           2010-11
                  3.2 Efficiencies
                                             Cash          258.0              -                 -
                      delivered; £m
                                             Time           16.0              -                 -
4. Accountable Officer for delivery                    Andrew Goudie
5. Project Manager                                     Vicki Bibby
6. EGDD Portfolio Manager                              Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   It will be for each local authority to decide which efficiencies will best meet its
taken
                        needs and how to deliver them.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        These will depend on the needs and circumstances of each individual
                        authority.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        This will depend on the specific circumstances in the local authority at the
                        time.

9. Measurement          9.1     What are the inputs that will be measured?
                        Under the concordat, local authorities are working towards single outcome
                        agreements and the measurements will depend on the content of these
                        agreements.

                        9.2     What are the outputs that will be measured?
                        These will depend on the individual single outcome agreements.

                        9.3     What is the baseline for inputs and outputs?
                        The baseline will be the 2007-08 financial and activity outturn figures.

10. Quality cross-      10.1 What quality indicators are being used to ensure that quality of
check                   service is maintained or improved?
                        These will depend on the individual single outcome agreements.




                                                                                                       57
DG Economy


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   These will be specific to individual authorities but reporting will be co-ordinated
                   by COSLA.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   For 2005-08, COSLA developed a structure for monitoring and reporting
                   efficiency savings made by local authorities which will form the basis for
                   reporting for 2008-11.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   These will depend on the circumstances of a specific efficiency gain.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Local authorities have the flexibility to redeploy the resources freed through
                   efficiency gains to the delivery of services.




   58
                                                                                    DG Economy


1. Portfolio/Number/Name: DG Economy / 20 / Public Service Reform resource management
2. Programme/Activity:
Public Service Reform resource management

3. Efficiency                                          2008-09        2009-10          2010-11
                 3.1 Target; £m
                                          Cash             -            1.20             4.84
                                                       2008-09        2009-10          2010-11
                 3.2 Efficiencies
                                          Cash            -              -                -
                     delivered; £m
                                          Time            -              -                -
4. Accountable Officer for delivery                Dr Andrew Goudie
5. Project Manager                                 John Ewing
6. EGDD Portfolio Manager                          Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiencies will be delivered through better management of the resources
taken
                      available to the Directorate to deliver its core business. Sums arising from
                      asset management, delivery of the One Scotland portal and across the range
                      of responsibilities have been given up for redistribution to other Government
                      priorities. The Third Sector has a separate EDP and is not included.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Funds have been given up. An example of the saving was the decision to
                      undertake the Asset Management Review in house resulting in a saving
                      against budget of £1m.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No.

9. Measurement        9.1     What are the inputs that will be measured?
                      Directorate expenditure.

                      9.2     What are the outputs that will be measured?
                      Delivery against objectives across the range.

                      9.3     What is the baseline for inputs and outputs?
                      Directorate budget and expenditure

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Continuing targets for delivery across the range of policy areas including
                      business improvement districts, Customer First, OneScotland Portal, shared
                      services, Scottish Community Councils

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      Savings have already been given up.




                                                                                                59
DG Economy


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Actual expenditure.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   The funds have already been given up for redistribution elsewhere in the
                   Scottish Government.




   60
                                                                                        DG Economy


1. Portfolio/Number/Name: DG Economy / 21 / Rail Franchise
2. Programme/Activity:

The ScotRail Franchise Agreement contract, awarded to ScotRail Ltd, commenced 17 October 2004
to 2011 with the option for a three year extension to 2014. This three year extension was executed
on 2 April 2008. Franchise payments are made to ScotRail for delivering the terms of the Franchise
Agreement. The terms of the Franchise Agreement includes all the train services to be operated by
ScotRail and all of the other functions necessary to support the delivery of train services required of
an experienced operator. The terms of the Franchise Agreement and Franchise payments to
ScotRail therefore also cover payments that the Franchisee (ScotRail) then makes to Network Rail for
track access.

3. Efficiency                                            2008-09         2009-10             2010-11
                 3.1 Target; £m
                                          Cash              -               -                  16
                                                         2008-09         2009-10             2010-11
                 3.2 Efficiencies
                                          Cash              -               -                   -
                 delivered; £m
                                          Time              -               -                   -
4. Accountable Officer for delivery                   Dr Andrew Goudie and Chief Executive,
                                                      Transport Scotland (David Middleton)
5. Project Manager                                    Ivor Jones
6. EGDD Portfolio Manager                             Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   An rail industry wide recalculation of track access charges has been
taken
                       negotiated resulting in a reduction in track access charges payable by the
                       ScotRail Franchise.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Transport Scotland participation in the industry wide negotiations.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       None

9. Measurement         9.1      What are the inputs that will be measured?
                       The Transport Scotland estimated track access payments to be made by the
                       franchisee to Network Rail.

                       9.2      What are the outputs that will be measured?
                       The actual track access payments made by the franchisee.

                       9.3      What is the baseline for inputs and outputs?
                       Baseline input is pre Control Period 4 track access payments and baseline
                       output is actual payments post industry negotiation.

10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       The performance and compliance of the franchisee with the Service Level
                       Commitment within the Franchise Agreement.



                                                                                                    61
DG Economy


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   The existing Franchise management and monitoring processes including any
                   supplementary reporting by the franchisee.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Quarterly Report from the Franchisee to Transport Scotland.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   None.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   Transport Scotland has retained these savings to meet other spending
                   pressures and priorities within Transport Scotland.




   62
                                                                                    DG Economy


1. Portfolio/Number/Name: DG Economy / 22 / Asset Management Improvement Programme
                              (AMIP)
2. Programme/Activity:
Efficiency savings will be delivered through implementation of recommendations coming out of
Transport Scotland’s Trunk Road Asset Management Improvement Programme. In particular new
value for money guidance on the development of prioritised programmes of structural repairs and
network strengthening has been issued to our Trunk Road Operating Companies.

3. Efficiency                                        2008-09          2009-10          2010-11
                3.1 Target; £m
                                       Cash             -               3.4              1.0
                                                     2008-09          2009-10          2010-11
                3.2 Efficiencies
                                       Cash             -                -                -
                delivered; £m
                                       Time             -                -                -
4. Accountable Officer for delivery                Dr Andrew Goudie and Chief Executive,
                                                   Transport Scotland (David Middleton)
5. Project Manager                            Donald Morrison
6. EGDD Portfolio Manager                     Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   New value for money guidance on the development of prioritised programmes
taken
                     of structural repairs and network strengthening has been issued to our Trunk
                     Road Operating Companies. Compared with past practice, this guidance,
                     entitled “Bidding Guidance”, will generate optimum maintenance treatments
                     which represent the lowest “whole of life” cost solutions. Savings will be
                     generated primarily through reduced materials costs and consequent
                     reductions in labour and traffic management costs.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     The main action needed to secure delivery of this efficiency improvement is to
                     process all trunk road structural maintenance and network strengthening
                     schemes above £1.5m in value through the new Value for Money framework

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     The new value for money framework cost around £100k to develop and
                     implement through the AMIP. This cost was accommodated within the AMIP
                     budget for 2008/09 and paid from programme costs. No further costs are
                     anticipated.

9. Measurement       9.1     What are the inputs that will be measured?
                     The input measured will be the scheme proposals identified by the Trunk
                     Road Operating Companies through road condition survey information, visual
                     inspections and data derived from the TS asset management IT system
                     (SERIS).

                     9.2     What are the outputs that will be measured?
                     The output that will be measured is the final scheme solution after completion
                     of the value for process compared with the original scheme identified through
                     conventional methods.




                                                                                               63
DG Economy


                     9.3     What is the baseline for inputs and outputs?
                     The baseline for inputs and outputs is comparison with other scheme solutions
                     identified by the Operating Companies in the period up to 2008/09.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Quality will be monitored against current industry standards and against the
                     performance of other sections of the network repaired with earlier techniques.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Trunk Roads Network Management Directorate is responsible for monitoring
                     the quantity and quality of outputs from our Operating Company contracts.
                     This work will be undertaken by the Asset Management, Finance and
                     Technical Branch.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Information on the quantity and quality of outputs will be reported by the
                     TRNM Asset Management, Finance and Technical Branch.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No legislative or structural changes required to deliver these efficiency
                     savings.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     This efficiency allows TRNM to continue with a sustainable programme of
                     much needed structural repair work and mitigate the effects of reduced
                     spending on the condition and value of the trunk road asset.




   64
                                                                                      DG Economy


1. Portfolio/Number/Name: DG Economy / 23 / Management and Maintenance of the Trunk
                                Road Network – Performance Audit Group 2009 Commission
2. Programme/Activity:
Maintenance of the Scottish Trunk Road network was initially subject to competitive tender in 1996.
Current Contracts, now in their 3rd Generation, are based on four operating areas or ‘Units’ – North
West, North East, South West and South East, with work being delivered by 4 Operating Companies
(OCs).

In order to provide assurance that these Contracts continued to deliver value for money and levels of
service for the road user, a Performance Audit Group Commission to monitor and audit the activities
of the OCs was awarded in 1995. This was retendered in 2002 and again in 2009. The PAG 2009
Commission has been awarded to Halcrow Group Ltd in association with PriceWaterhouseCoopers,
who have delivered this service since 1995. The new Contract commences on 1 December 2009.

3. Efficiency                                          2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash             -               0.45               1
                                                       2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash             -                -                -
                 delivered; £m
                                         Time             -                -                -
4. Accountable Officer for delivery                  Dr Andrew Goudie and Chief Executive,
                                                     Transport Scotland (David Middleton)
5. Project Manager                             Donald Morrison
6. EGDD Portfolio Manager                      Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiency improvement will be made through more competitive prices for
taken
                       the audit and monitoring services on the trunk road maintenance contracts
                       allowing for the same or more work to be undertaken for less resources.
                       Improved prices were secured through a more competitive procurement
                       process.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Procurement practices:

                       The procurement process has been completed and included:-
                          • Increased engagement with suppliers.
                          • Use of an effective and well managed consultative procurement
                              process.
                          • Use of a well planned and risk based tender programme.

                       In order to secure the delivery of this efficiency improvement, the PAG 2009
                       Commission was awarded in September 2009.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       There were development costs of around £20k associated with procuring the
                       Commission.

9. Measurement         9.1     What are the inputs that will be measured?
                       The input that will be measured is expenditure on the PAG 2009 Commission.



                                                                                                 65
DG Economy


9. Measurement       9.2     What are the outputs that will be measured?
                     The outputs that will be measured is the volume of audit and monitoring work
                     carried out and multiplied by the rates for the new and previous auditing and
                     monitoring Commissions.

                     9.3     What is the baseline for inputs and outputs?
                     The baseline for measuring inputs and outputs is the previous PAG contract,
                     which will be compared with the new PAG contract.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The quality of the PAG service will be monitored to ensure that the quality of
                     monitoring and auditing activities is maintained or improved.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Trunk Roads Network Management Directorate is responsible for monitoring
                     the quantity and quality of outputs from the new PAG Commission. This will be
                     undertaken by the Asset Management, Finance and Technical Branch. This
                     will be done by comparing the cost of carrying out the PAG work on an annual
                     basis and comparing the cost between the new and previous contracts.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Information on the quantity and quality of outputs will be reported by the
                     TRNM Asset Management, Finance and Technical Branch.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No legislative or structural changes required to deliver these efficiency savings

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     This efficiency allows TRNM to continue with a sustainable programme of
                     much needed routine maintenance work and mitigate the effects of reduced
                     spending on the condition and value of the trunk road asset.




   66
                                                                                          DG Economy


1. Portfolio/Number/Name: DG Economy / 24 / Concessionary Fares                                     NEW
2. Programme / Activity :

Continued delivery of the Scotland-wide free bus concessionary travel scheme for older and disabled
persons reflective of the principle that operators are ‘no better and no worse off’ through taking part in
the scheme than they would be if no scheme were to exist. Following the publication of the recent
research commissioned on the reimbursement rate, a revised payment of 67% (from 73.6%) of the
average adult single fare was introduced from 1 April 2010 and a consequent recalculated capped
level of funding some £19.8m less is 2010/11 than without the revised agreement with bus operators.
3. Efficiency                                             2008-09          2009-10           2010-11
                  3.1 Target; £m
                                           Cash              -                -                 19.8
                                                          2008-09          2009-10           2010-11
                  3.2 Efficiencies
                                           Cash              -                -
                  delivered; £m
                                           Time              -                -          -
4. Accountable Officer for delivery               David Middleton
5. Project Manager                                Gordon Hanning
6. EGDD Portfolio Manager                         Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Continued delivery of the Scotland-wide free bus concessionary travel scheme
taken
                        for older and disabled persons at a reduced cost as a result of a revised
                        agreement with the bus operators – not a revised level of service to
                        concessionary travel cardholders. This will mean a reduction for 2010/11 of
                        £19.8m in the bus expenditure element of the Scotland-wide free bus
                        concessionary travel scheme for older and disabled persons through setting a
                        cap for 2010/11 at £174.2m. £1.0m of the £5.8m Bus Services Operators
                        Grant (BSOG) budget increase is included as a “netted-off” figure in the
                        £19.8m.
                        Agreement was reached with the Confederation of Passenger Transport
                        (CPT) and Chief Executive Officers from 4 major bus operators following a
                        meeting on 11 February 2010. The agreement included revision to the
                        reimbursement rate from 73.6% to 67% for the Scotland-wide free bus
                        concessionary travel scheme for older and disabled persons effective from 1
                        April 2010; the setting of cap levels of £174.2m for 2010/11; £180m for
                        2011/12; £187m for 2012/13 for the Scheme and in addition the setting of
                        BSOG budgets at £66.5m in each of the next 3 financial years. This equates
                        to an annual increase to the BSOG budget of £5.8m.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        a) The National Bus Travel Concessionary Scheme for Older and Disabled
                        Persons (Scotland) Amendment Order 2010 being in place from 1 April 2010.
                        The amendment order was laid in February 2010.
                        b) Continuous monitoring of the forecast spend of the Scotland-wide free bus
                        concessionary travel scheme for older and disabled persons to keep
                        reimbursement payments within the cap level.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        £1m of the £5.8m increase in the Bus Services Operators Grant (BSOG) has
                        been netted off against the Scotland wide free bus concessionary travel
                        scheme for older and disabled persons bus spend reduction.


                                                                                                       67
DG Economy


9. Measurement       9.1     What are the inputs that will be measured?
                     Scotland-wide free bus concessionary travel scheme for older and disabled
                     persons claims (journey and company average fare data).

                     9.2     What are the outputs that will be measured?
                     Scotland-wide free bus concessionary travel scheme for older and disabled
                     persons reimbursement forecasts.

                     9.3     What is the baseline for inputs and outputs?
                     Scotland-wide free bus concessionary travel scheme for older and disabled
                     persons 2009/10 journey and company average fare data.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Legislation (The National Bus Travel Concession Scheme for Older and
                     Disabled Persons (Scotland) Order 2006) requires the Scheme has as its
                     objective that an operator is financially no better and no worse off as a result
                     of their participation in the Scheme. An independent body, The Institute for
                     Transport Studies (ITS) from the University of Leeds, recommended an
                     appropriate concessionary travel reimbursement rate in consultation and
                     subsequent agreement with CPT. Therefore the quality check has been
                     carried out at the outset as it is implicit as part of the review/agreement
                     process. The research revealed bus operators are due less reimbursement for
                     carrying concessionary travel cardholders than previously paid. The revised
                     agreement does not affect the level of service to concessionary travel
                     cardholders.
11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Scotland-wide free bus concessionary travel scheme for older and disabled
                     persons monthly forecasts.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Forecasts are reported in a standing item within the regular Concessionary
                     Travel & Integrated Ticketing Unit Governance Board Meetings.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Efficiency dependent on the National Bus Travel Concessionary Scheme for
                     Older and Disabled Persons (Scotland) Amendment Order 2010 being in
                     place from 1 April 2010. The Order was laid in February 2010.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     The £19.8m net target saving will go towards meeting other Scottish
                     Government spending pressures and priorities.




   68
                                                               DG Finance and Corporate Services


1. Portfolio/Number/Name: DG Finance and Corporate Services / 1 / e-Procurement Scotland
2. Programme/Activity:
E-Procurement Scotland

3. Efficiency                                          2008-09          2009-10          2010-11
                 3.1 Target; £m
                                        Cash              0.3             0.6              0.9
                                                       2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                        Cash             0.32              -                -
                     delivered; £m
                                        Time               -               -                -
4. Accountable Officer for delivery                 Paul Gray
5. Project Manager                                  Ian Burdon
6. EGDD Portfolio Manager                           Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Revised    commercial  arrangements  for  e-Procurement    Scotland
taken
                      implementation and related services, delivering the programme at lower cost
                      (while at the same time accelerating roll-out) through use of existing in-house
                      staff rather than more expensive external contractors.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Commercial arrangements for the e-procurement programme require to be
                      renegotiated.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No.

9. Measurement        9.1     What are the inputs that will be measured?
                      Costs of on-going ePS implementation programme and related services
                      (excluding new activity, e.g. on national licensing and e-invoicing).

                      9.2     What are the outputs that will be measured?
                      Throughput (number and value of transactions) and number of service users.

                      9.3     What is the baseline for inputs and outputs?
                      2007-08 ePS expenditure, throughput and number of service providers.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Customer satisfaction survey and service utilisation figures (reflecting
                      performance of ePS roll-out).

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      The structure of reporting will be monitored by use of the new Business
                      Management Tool.




                                                                                                 69
DG Finance and Corporate Services


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Quarterly reports to the Director General.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Dependent on successful renegotiation of ePS commercial structure, retention
                   of experienced key staff and continued demand for ePS roll-out (which is itself
                   dependent on SG support and endorsement).

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Efficiency savings being used for other services within Scottish Procurement
                   Directorate.




   70
                                                 DG Finance and Corporate Services



1. Director General/Number/Name: DG Finance and Corporate Services
                   / 2 / Scottish Public Pensions Agency

   Moved to list of efficiency projects with expected savings less than £0.5m
                           see page 229 for information.




                                                                                71
DG Finance and Corporate Services


1. Portfolio/Number/Name: DG Finance and Corporate Services / 3 / Central Administration
2. Programme/Activity:
Savings in the Administration Budget of the Scottish Government through better staff deployment and
a reduction in non-staff cost expenditure.

3. Efficiency                                          2008-09         2009-10          2010-11
                3.1 Target; £m
                                        Cash              4.8             9.6              14.4
                                                       2008-09         2009-10          2010-11
                3.2 Efficiencies
                                        Cash            6.598             -                -
                   delivered; £m
                                        Time               -              -                -
4. Accountable Officer for delivery           Permanent Secretary
5. Project Manager                            Scott Mackay
6. EGDD Portfolio Manager                     Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   These efficiency improvements comprise a number of changes across all
taken
                      Scottish Government Directorates where staffing reductions and savings in
                      non-staff costs will be made without affecting the output of the Directorates.
                      The savings will principally be made through working more efficiently across
                      the Government as a whole, allowing for staff reductions in certain areas.
                      Targeted early retirement schemes such as the one currently under way
                      combined with natural wastage should allow any surplus staff to exit the
                      organisation in a cost efficient manner. Other staff and non-staff savings will
                      arise as a result of the simplification of the public sector landscape and from
                      the outcome based agreement with Local Government. There will be at least
                      £1.7m in recyclable administration savings made as a result of the functions of
                      Communities Scotland being brought in to the core Scottish Government as
                      part of the simplification process.

                      Non-staff costs savings will include efficiencies made as a result of
                      improvements in the utilisation of the Scottish Government estate. This will
                      involve taking over Atlantic Quay as the main Scottish Government building in
                      Glasgow and co-locating SG staff with the corporate leadership of Scottish
                      Enterprise. This will allow the SG to vacate Meridian Court and either Europa
                      Building or Highlander House. The financial benefits, by way of reduced
                      accommodation costs are calculated to be considerable but it too early to put
                      an exact figure on the amount and the timing of the savings. One immediate
                      saving however would be the avoidance of the cost of the Meridian Court
                      refurbishment estimated at between £5.5m and £7m.

                      Other non staff cost savings include a continuing focus on reducing staff
                      Travel and Subsistence costs through promotion of more effective and
                      environmentally friendly modes of travel and greater use of video conferencing
                      facilities. In addition robust procurement processes will continue to deliver
                      extremely competitive prices for catering, cleaning and other services such as
                      waste management. An example of this is newly signed catering contract
                      which has frozen the level of subsidy paid and the prices charged for 2008-09.




   72
                                                             DG Finance and Corporate Services


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      Directorates General are drawing up illustrations that indicate where they will
                      make efficiency savings in the period to 31 March 2011. These are being
                      turned into a Delivery Plan that will provide information on each of the
                      efficiency savings that individual Directorates will make. Each Directorate is
                      responsible for taking the action required to deliver the efficiency saving.

                      The savings that will arise from the accommodation strategy are dependant on
                      the timing of the decision to move Scottish Enterprise staff from Atlantic Quay.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      There may be some costs associated with the efficiencies arising from the
                      simplification of the delivery landscape, but as yet these have not been fully
                      quantified.

9. Measurement        9.1     What are the inputs that will be measured?
                      There are a variety of inputs that are being measured, the most common of
                      which is expenditure in the area where the efficiency is to be made.

                      9.2     What are the outputs that will be measured?
                      There are a variety of outputs from the individual Directorates making the
                      efficiency improvements and it is not possible to measure them all. However,
                      the volume of outputs from Directorates as a whole are not expected to fall as
                      a result of making the savings.

                      9.3     What is the baseline for inputs and outputs?
                      The baseline for measuring inputs is the Administration expenditure for 2007-
                      08.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      The outputs from Directorates are wide and varied, including areas such as
                      the development of policy, through to providing Ministers with draft answers to
                      Parliamentary Questions. Quality indicators would therefore include the time
                      taken to respond to Parliamentary Questions and Ministerial Correspondence.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      Each Directorate is responsible for monitoring the delivery of their own
                      efficiency savings. The SG Administration Finance Team is responsible for
                      monitoring the delivery of the total efficiency savings from the Administration
                      budget.

12. Reporting         12.1 What are the arrangements for reporting the delivery of
                      efficiencies?
                      A quarterly progress report will be requested from Directorates by the
                      Administration Finance Team. These will form the basis of a report to the
                      People and Business Innovation Group.



                                                                                                  73
DG Finance and Corporate Services


13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   There are no significant dependencies for these savings to be achieved.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   These efficiencies were assumed as part of the budget allocated by the
                   Scottish Government for Administration. This freed up resources for Ministers
                   to allocate to their priorities.




   74
                                                                                       DG Education


1. Portfolio/Number/Name: DG Education / 2 / GLOW
2. Programme/Activity:
The creation of a national schools intranet, Glow, which will allow pupils and teachers to access a
wide range of communication and collaboration tools in order to support the development of the
Curriculum for Excellence.

3. Efficiency                                           2008-09            2009-10       2010-11
                3.1 Target; £m
                                        Cash               2.95                 4.24        6.5
                                                        2008-09            2009-10       2010-11
                3.2 Efficiencies
                                        Cash               1.16               -             -
                    delivered; £m
                                        Time                -                 -             -
4. Accountable Officer for delivery                  Philip Rycroft
5. Project Manager                                   Alison Taylor
6. EGDD Portfolio Manager                            Gerry Hendricks
7. Description of 7.1 What is the efficiency         improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Travel Costs
taken
                      Argyll and Bute estimate that video conferencing saves the council around
                      2000 person miles per week. At around 40p per mile this yields savings of
                      approximately £30,400 per annum, which will increase as Glow to the desktop
                      is rolled out. A direct extrapolation from the Argyll and Bute experience would
                      suggest savings of up to £843,000 annually across all Scotland. However, it
                      is unwise to assume that savings of this level would be achievable in more
                      densely populated areas. We have therefore assumed that total savings
                      would be 75% of this across the country by 2010-11 (rising from 25% & 50%
                      in 2008-09 & 2009-10).

                             2008-09             2009-10              2010-11
                        £     210,939    £       421,878    £         632,816

                      Photocopying costs
                      Islay High School have shown savings of £15k per annum by moving to a
                      paperless school. This is an ambitious target for all schools to achieve, but
                      using Glow to communicate with teachers to the extent of producing an
                      average of two fewer photocopied sheets per teacher per school day (at £0.03
                      per sheet over 190 days) will save £604,000 annually.

                             2008-09             2009-10              2010-11
                        £     604,000    £       604,000    £         604,000

                      Additionally, it is not unreasonable to expect that there will be paper savings
                      amongst pupils. If we assume that 25% of the pupil population of
                      approximately 700,000 saves one photocopied sheet per pupil per day in
                      2008-09, rising to 50% in 2009-10, and to one per pupil per day 2010-11,
                      savings are as follows:

                             2008-09                2009-10              2010-11
                        £    997,500         £     1,995,000      £      3,990,000




                                                                                                  75
DG Education


7. Description of     Procured content
efficiency and        Learning and Teaching Scotland have procured several banks of online
actions to be taken   resources for use through Glow. Comparing the cost of a central procurement
                      for 100% of schools with the cost for 30% of schools taking individual licenses
                      (a conservative assumption about the likely rate of adoption in the absence of
                      a central programme) gives a saving of £1m annually.

                               2008-09              2009-10              2010-11
                       £       1,000,000       £    1,000,000      £     1,000,000

                      E-Mail

                      Many local authorities will be giving up other e-mail services and using Glow
                      Mail when they take on the Glow services. Existing e-mail can cost from 85p
                      to £1 per person per year. Assuming that by 2010-11 50% of GlowMail
                      accounts result in a direct financial saving to the local authority of 85p gives
                      the following savings:

                            2008-09                2009-10             2010-11
                       £    137,500            £   220,000         £   275,000

                      Total
                          2008-09              2009-10           2010-11
                       £ 2,949,939         £    4,240,878    £    6,501,816
                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      These efficiencies are predicated on widespread uptake and use of the Glow
                      services across Scottish local authorities.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      The Glow programme is justified on the basis that it will enable new ways of
                      teaching and learning and lead to improved educational outcomes for young
                      people. It is not being pursued on efficiency grounds and the costs of
                      development have therefore not been netted off.

9. Measurement        9.1       What are the inputs that will be measured?
                      LA and school expenditure on photocopying and email services, and on staff
                      travel costs for meetings etc.

                      9.2       What are the outputs that will be measured?
                      Not readily identifiable at this stage; Glow offers new facilities to schools that
                      may result in different learning experiences.

                      9.3       What is the baseline for inputs and outputs?
                      Evidence from schools and local authorities.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      General quality indicators for Scottish education – results of inspection and
                      examination.




   76
                                                                                   DG Education


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   Work ongoing with LTS to identify full range of potential efficiencies as the
                   practicalities of Glow roll-out continue. LTS will factor in monitoring to their
                   discussions with local authorities and schools.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   LTS will report to the Scottish Government as roll-out continues.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Efficiencies are dependent on full implementation of Glow.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   The resources released by any efficiencies achieved under this programme
                   will remain at the disposal of local authorities.




                                                                                               77
DG Education


1. Portfolio/Number/Name: DG Education / 3 / Learning & Teaching Scotland                     Revised
Programme/Activity:
Learning and Teaching Scotland support the implementation of national developments in education,
including reviewing and refreshing the curriculum, to ensure Scotland is at the cutting edge in
delivering high quality support for teaching and learning; provide guidance, leadership and support to
education authorities and schools to help implement educational policy and promote innovation;
drawing on evidence from research and external evaluation, provide sound, coherent advice to
Ministers on support for continuous improvement in Scottish education; and systematically evaluate
the impact of all aspects of its work across the education system.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash              0.3             0.47              0.75
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash             0.303             -                -
                     delivered; £m
                                         Time               -               -                -
                                                      Chief Executive of Learning & Teaching
4. Accountable Officer for delivery                   Scotland
5. Project Manager                                    Iain Finlayson
6. EGDD Portfolio Manager                             Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Non backfilling of senior management leavers £137k
taken
                       Non backfilling of middle management leavers      £63k
                       Reduction in externally commissioned research     £50k
                       Reduction in externally commissioned
                       Communications spend                                  £50k
                                                                            £300k
                       There are additional efficiency measures planned for 2008/09 but the impact
                       of these will be used to fund investment in front line activities.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Staffing
                       Redistribution of management roles and minor internal restructuring to cope
                       with reduction in management headcount.
                       Spend Reduction
                       Additional focus on value added by/ productivity of own staff and increased
                       liaison with front line colleagues on relevant research/ communications
                       requirements.
                       Process Redesign
                       Redesign of processes including use of technology to facilitate virtual delivery
                       such as online services.
                       Sharing Services
                       Where appropriate we are working with other organisations to share services.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       None.

9. Measurement         9.1     What are the inputs that will be measured?
                       Headcount/fte’s
                       Spend



    78
                                                                                     DG Education


9. Measurement       9.2     What are the outputs that will be measured?
                     Delivery against our key outcomes as outlined in our Programme Initiation
                     Documents .

                     9.3     What is the baseline for inputs and outputs?

                     Actual costs, outputs and outcomes for FY 2007/08.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The indicators for each Directorate’s objectives are defined as part of our
                     Performance Management Framework.
                     In addition we benchmark our key Corporate Service indicators by
                     benchmarking across other organisations. Finally we also have in place a best
                     value programme to support our approach to continuous improvement.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Staffing: control over recruitment, payroll budgets, headcount statistics
                     Spend reduction: actual to budget variances and quarterly reforecasting
                     Actual against target efficiency statements.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Quarterly ‘on target’ confirmations or otherwise as required by our Sponsor
                     Department.
                     Annual Efficiency Statements.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No legislative dependencies but minor internal restructuring ongoing.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The LTS £300k etc efficiency savings above are being released back to our
                     Sponsor Department for investment elsewhere.

                     We have separate ongoing measures to continue our programme of switching
                     internal support resource/ spend to front line educational programs.




                                                                                                 79
DG Education


1. Portfolio/Number/Name: DG Education / 4 / Inspiring Scotland (Henry Duncan Initiative)
2. Programme/Activity:
The “Henry Duncan Initiative” is the model of private sector philanthropy adopted by “Inspiring
Scotland” the Lloyds TSB Foundation. This project is a new joint public and private sector partnership
which will promote community and individual involvement, and initially will focus its efforts supporting
young people in the 14-19 age group who fit with the More Choices and More Chances client group.
This project as well as providing new funding for new activities or old activities by new bodies it
replaces a plethora of funding from various policy teams which previously had supported third sector
core activities. In that sense it provides the third sector, and in particular to provide a more stable
funding environment for the third sector. The Scottish Government’s financial contribution will be at
least matched by Lloyds TSB Foundation (Inspiring Scotland) and the philanthropic sector. The target
for funding from the private sector is 55-60%. For the purpose of the efficiency plan 50% matching
funding has been assumed.
The baseline cash for this project and these efficiencies comes from variety of sources and
identification of these will take considerable time.

3. Efficiency                                            2008-09          2009-10          2010-11
                 3.1 Target; £m
                                          Cash             1.400            4.400            4.400
                                                         2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                          Cash             2.77              -                -
                     delivered; £m
                                          Time               -               -                -
4. Accountable Officer for delivery                    Colin MacLean
5. Project Manager/ Contacts                           Michael Cross and Tracey Slaven
6. EGDD Portfolio Manager                              Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   New activities which lever substantial cash contributions from the private
taken
                        sector for key Scottish Government policy themes.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        The actions required involve working up the shape of the project. Inspiring
                        Scotland are committed to preparing an evaluation strategy in the next few
                        months which will give shape to the project by setting out how the impact and
                        outcomes from the project will be measured, recorded, reported and tested.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No.

9. Measurement          9.1     What are the inputs that will be measured?
                        TBC

                        9.2     What are the outputs that will be measured?
                        TBC

                        9.3     What is the baseline for inputs and outputs?

                        To be established.




    80
                                                                                   DG Education


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     To be confirmed.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Agreed partnership arrangements with Inspiring Scotland.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Agreed partnership arrangements with Inspiring Scotland.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No dependencies.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     To increase the scale and impact of key Scottish policy agendas.




                                                                                            81
DG Education


1. Portfolio/Number/Name: DG Education / 5 / Social Work Inspection Agency                     Revised
2. Programme/Activity:
The Social Work Inspection Agency (SWIA) is sponsored by the CYPSC Directorate. A recurring 2%
efficiency saving will be delivered against SWIA’s financial settlement for the next three years.

3. Efficiency                                           2008-09          2009-10           2010-11
                3.1 Target; £m
                                         Cash             0.088            0.177             0.818
                                                        2008-09          2009-10           2010-11
                3.2 Efficiencies
                                         Cash             0.748
                delivered; £m
                                         Time               -                 -                -
4. Accountable Officer for delivery             SWIA Chief Executive - Alexis Jay
5. Project Manager                              Andrew Wilkinson
6. EGDD Portfolio Manager                       Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Same service to be provided with a reducing budget
taken
                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      The efficiency savings will be delivered through a reduction in SWIA’s payroll
                      and associated staff costs. A review of both inspector and admin support staff
                      requirements is in place.

                      SWIA delivered additional savings throughout 2008-09 and 2009-10, while
                      continuing to meet its objectives. It has therefore offered up a further £550k for
                      2010-11, increasing its target to £818k.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      There are no redundancy costs associated with the delivery of this efficiency.
                      Negligible development costs will be absorbed.

9. Measurement        9.1     What are the inputs that will be measured?
                      The efficiency savings will be delivered against business plan payroll and staff
                      costs.

                      9.2     What are the outputs that will be measured?
                      Business plan objectives will be delivered with reduced resource.

                      9.3     What is the baseline for inputs and outputs?
                      The original baseline for delivery was the 2008/09 allocation of £4,349m, that
                      had 2% efficiency assumed. Allowing for uprating, the 2010/11 budget was
                      anticipated as £4.557m, including the original 2% efficiency assumption. With
                      the further £550k reduction, the new 2010/11 budget will be £4.007m.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Delivery of business plan objectives within budget (including 2% efficiency
                      saving).



   82
                                                                                        DG Education


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   Service quality and delivery of efficiency target will be monitored monthly by
                   SWIA senior management team and quarterly by SWIA Board as part of
                   routine performance management arrangements.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   As above.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   N/A.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency will free up resources for Ministers to allocate to their priorities.




                                                                                                     83
DG Education


1. Portfolio/Number/Name: DG Education / 6 / Scottish Social Services Council
2. Programme/Activity:
The Scottish Social Services Council (SSSC) is sponsored by the Children Young People and Social
Care (CYPSC) Directorate. A recurring 1.5% efficiency saving has been incorporated into the SSSC’s
financial settlement for the next three years.

3. Efficiency                                         2008-09           2009-10        2010-11
                 3.1 Target; £m
                                          Cash          0.180            0.360           0.540
                                                      2008-09           2009-10        2010-11
                 3.2 Efficiencies
                                          Cash          0.327              -              -
                     delivered; £m
                                          Time            -                -              -
4. Accountable Officer for delivery             SSSC Chief Executive –Carole Wilkinson
5. Project Manager                              TBC
6. EGDD Portfolio Manager                       Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Same service to be provided with a reducing budget.
taken
                   7.2 What are the main actions that are needed to secure the delivery of
                   this efficiency improvement?
                      The SSSC has adopted a strategy and new approaches to its responsibilities
                      for social work training and the achievement of qualifications. In addition
                      development and implementation of new IT will produce efficiencies which
                      should grow over time.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Yes, associated with early retirement, accommodation, new staff and IT. The
                      cost of these is £100

9. Measurement        9.1     What are the inputs that will be measured?
                      The impact of the various changes will be monitored by the Chief Executive.

                      9.2     What are the outputs that will be measured?
                      That existing service standards are maintained.

                      9.3     What is the baseline for inputs and outputs?
                      2007/08 baseline.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Chief Exec to determine and confirm.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      The sponsor branch will continue to monitor through regular reports to the
                      SSSC board.




   84
                                                                               DG Education


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Regular SSSC Board reports.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   None.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the financial allocation made by the
                   Scottish Government to SSSC. This freed up resources for Ministers to
                   allocate to their priorities.




                                                                                           85
DG Education


1. Portfolio/Number/Name: DG Education / 7 / Scottish Children’s Reporters Administration.
2. Programme/Activity:
The Scottish Children’s Reporters Administration (SCRA) is sponsored by the CYPSC Directorate. A
recurring 1.5% efficiency saving has been incorporated into the SCRA’s financial settlement for the
next three years.

3. Efficiency                                         2008-09         2009-10          2010-11
                3.1 Target; £m
                                          Cash          0.341           0.683            1.029
                                                      2008-09         2009-10          2010-11
                3.2 Efficiencies
                                          Cash          0.341            -                -
                    delivered; £m
                                          Time            -              -                -
4. Accountable Officer for delivery             SCRA Chief Executive
5. Project Manager                              Tom Brown
6. EGDD Portfolio Manager                       Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Same service to be provided with a reducing budget.
taken
                   7.2 What are the main actions that are needed to secure the delivery of
                   this efficiency improvement?
                      The actions are for the Chief Exec. of SCRA involve disengaging from an
                      existing PFI IT contract and connecting to the SG’s SCOTS Connect IT
                      system. This change is taking place to improve the operational efficiency of
                      the organisation.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Provision has been made in the capital budget for SCRA to buy-out of the PFI
                      contract.

9. Measurement        9.1     What are the inputs that will be measured?
                      None, although the operational impact of changing IT service provider will
                      need monitored.

                      9.2     What are the outputs that will be measured?
                      Existing service standards are maintained.

                      9.3     What is the baseline for inputs and outputs?
                      2007/08 baseline.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Chief Exec to determine.




   86
                                                                               DG Education


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   The sponsor will continue to monitor through bi-monthly reports to the SCRA
                   Board.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Bi-monthly reports to SCRA Board in compliance with the Efficient
                   Government quarterly reporting processes.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Dependent on implementation by new IT provider.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the financial allocation made by the
                   Scottish Government to SCRA. This freed up resources for Ministers to
                   allocate to their priorities.




                                                                                           87
DG Education


1. Portfolio/Number/Name: DG Education / 8 / Student Award Agency for Scotland - GRASS
2. Programme/Activity:
Providing financial support to eligible Scottish students.

3. Efficiency                                                2008-09      2009-10         2010-11
                  3.1 Target; £m
                                              Cash            1.452           1.565        1.678
                                                             2008-09      2009-10         2010-11
                  3.2 Efficiencies
                                              Cash            1.195          -               -
                   delivered; £m
                                              Time              -            -               -
4. Accountable Officer for delivery                     Tracey Slaven, Chief Executive, SAAS
5. Project Manager                                      Michael Jackson, SAAS
6. EGDD Portfolio Manager                               Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Rewriting SAAS’s main operating system (GRASS) using a team of in-house
taken
                        developers rather than contracting with a private sector third party. The new
                        system will automate a greater percentage of casework and improve output
                        and quality. Saving is made up of £1.452m ICT development and support plus
                        £0.113m and £0.226m caseworker pay costs in 2009-10 and 2010-11
                        respectively. Development savings will be ongoing since SAAS systems
                        require to be redeveloped year on year in the light of policy changes.
                        Caseworker savings are in terms of posts that can be redeployed (see 14
                        below).

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Completing new system build and training staff in its use.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        Development and support staff costs are estimated at £398,000 in 2008-09
                        and 2009-10. However, since this project is necessary because GRASS has
                        become obsolete and difficult to support, these costs do not need to be netted
                        off against savings.

9. Measurement          9.1      What are the inputs that will be measured?
                        Capital and running costs.

                        9.2      What are the outputs that will be measured?
                        Efficiency of new system and cost of supporting it.

                        9.3      What is the baseline for inputs and outputs?
                        Project business case prepared in 2007-08.




    88
                                                                                   DG Education


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The development project is being peer reviewed. Future quality of service will
                     be monitored by customer satisfaction ratings and Agency management
                     information on throughput, error rates and complaints.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Project Board will monitor delivery of the new system. Thereafter, the
                     Agency’s Management Board will monitor its efficiency in the same way as
                     they do the present operating system.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Reports to quarterly Management Board meetings and quarterly reviews with
                     the Agency’s Fraser figure (Director, Lifelong Learning).

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     Efficiencies will release a number of caseworker posts (5% in 2009-10 and
                     10% in 2010-11) which will be redeployed to improve our information,
                     guidance and help services to students and their families.




                                                                                               89
DG Education


1. Portfolio/Number/Name: DG Education / 9 / SAAS Eligibility
2. Programme/Activity:
Providing financial support to eligible Scottish students.

3. Efficiency                                                2008-09      2009-10          2010-11
                  3.1 Target; £m
                                            Cash              2.156         4.265            6.327
                                                             2008-09      2009-10          2010-11
                  3.2 Efficiencies
                                            Cash              2.156          -                -
                   delivered; £m
                                            Time                -            -                -
4. Accountable Officer for delivery                     Tracey Slaven, Chief Executive, Student
                                                        Awards Agency for Scotland
5. Project Manager                                      Gavin Gray, Higher Education and Learner
                                                        Support Division, Scottish Government
6. EGDD Portfolio Manager                               Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  Incomes increase at a greater rate than the inflation index used to uprate
taken
                        loans and grants annually. This means that each year (all other things
                        remaining equal) students whose parental income exceeds the eligibility
                        threshold cease to be eligible for income assessed support for living costs.
                        This effect (known as “fiscal drag”) is maintained by assessing support on the
                        basis of family income in the immediately prior year and keeping the eligibility
                        threshold constant in cash terms. In the rest of the UK (RUK), assessment is
                        due to move to using income from two years prior and the eligibility threshold
                        is to be raised. This will mean more students from higher income families
                        remaining eligible for support

                        We have considered this option and chosen to move away from the RUK
                        position in this regard to continue with the present arrangements in Scotland.
                        This allows us to use the fiscal drag saving free up resources which can then
                        be targeted on the less well off.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Continuing to uprate loans by RPI and keeping eligibility threshold constant in
                        cash terms.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No.

9. Measurement          9.1      What are the inputs that will be measured?
                        Annual uprating of grants and loans and wage inflation.

                        9.2      What are the outputs that will be measured?
                        Numbers of students eligible for income assessed loan support.

                        9.3      What is the baseline for inputs and outputs?
                        Spending Review 2007.




    90
                                                                                   DG Education


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Numbers of students eligible for income assessed support.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Quarterly reports to the SAAS Management Board and quarterly reviews with
                     the Agency’s Fraser figure (Director, Lifelong Learning). Periodic review of
                     student numbers in consultation with the Agency’s statistician and economists.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     As per 11 above plus SAAS Annual Report.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     Efficiencies free DEL resource that can be used to target more support on the
                     least well off in line with Government policy on widening access to HE.




                                                                                               91
DG Education




         1. Director General/Number/Name: DG Education / 10/
                        SAAS - Loans to Grants

               This project has been withdrawn.




   92
                                                                                           DG Education


1. Portfolio/Number/Name: DG Education / 11 / Scottish Funding Council
Programme/Activity:
Scottish Further Education Colleges And Higher Education Institutions

The Scottish Funding Council will lead on behalf of Scotland’s colleges and universities. This work is
in the early stage of planning but a level of detail – showing how we plan to deliver the savings – has
been set out as fully as possible in this Plan.

3. Efficiency                                               2008-09           2009-10        2010-11
                 3.1 Target; £m
                                              Cash              32               64             96
                                                            2008-09           2009-10        2010-11
                 3.2 Efficiencies
                                              Cash             38.7              -              -
                  delivered; £m
                                              Time              -                -              -
                                                         The Chief Executive of the Scottish Funding
4. Accountable Officer for delivery                      Council.
                                                         Brian Baverstock, Director of Governance &
5. Project Manager                                       Management: Appraisal & Policy.
6. EGDD Portfolio Manager                                Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  We plan to deliver cash releasing efficiencies by delivering an actual resource
taken
                       efficiency through colleges and universities providing the same service at a
                       reduced cost i.e. same output(s) for a reduced set of inputs (e.g. costs,
                       people, procurement, assets etc). The overall process to deliver the vast
                       majority of the savings is likely to involve the following:

                          (i)     The efficiency target will be applied at sector level.

                          (ii)    An assurance process is instituted that requires annual efficiency
                                  statements from institutions. These will include a broad range of
                                  examples to demonstrate where resources are being released
                                  through efficiencies in certain areas, in order to make specific
                                  improvements to service delivery in others. Each institution will
                                  therefore have to maintain a record and associated evidence of
                                  efficiency gains for audit purposes.

                          (iii)   The audit process for the efficiency target will be undertaken through
                                  institutions’ normal internal and external audit processes. This will
                                  allow institutions, through their Audit Committees, to take
                                  responsibility for demonstrating and assuring the dual process
                                  involved in identifying efficiencies and redeploying those resources,
                                  as well as emphasising a systems and process approach to
                                  efficiencies.

                            (iv) To support the foregoing the Funding Council and the sectors will
                                 develop a programme of guidance, advice and seminars, based on
                                 available resources on value for money, Best Value, etc. In
                                 conjunction with the relevant sector agencies, we plan to develop a
                                 programme of guidance, based around a traditional approach to
                                 VFM.

                       The rest of this section describes the types of efficiencies that will be
                       delivered.




                                                                                                       93
DG Education


7. Description of     These will build upon the significant efficiency gains that have already been
efficiency and        delivered over recent years and the continuing gains derived from existing
actions to be taken   collaborative activities. Although final figures are not yet available, institutions’
                      current projections indicate that the EGI targets will be exceeded – both in
                      total and for each stream – for the period 2005/06 -2007/08.

                      The underlying aim of the efficient government programme is embedded in the
                      approach the Funding Council takes to funding colleges and universities and
                      that funding approach is applied to all institutions in exactly the same way.
                      Therefore, the possibility of relative inefficiencies between institutions is
                      minimised. It is also the case that colleges and universities will have to
                      achieve efficiencies in order to fund the ‘super-inflationary’ cost pressures
                      which they face – particularly in relation to salaries.

                      Key developments will include:

                      •   Identifying, sharing and replicating new approaches for the delivery of
                          learning, research and support functions and the development of new
                          collaborative activities

                          Approaches are constantly evolving as institutions strive to maximise the
                          investment of the resource available to deploy on teaching and research.
                          This strand seeks to identify the most successful approaches, ensure
                          effective dissemination, and provide support for efficient replication.

                      •   Joint procurement arrangements

                          During this three-year period the sectors’ procurement centre of expertise,
                          Advanced Procurement for Universities and Colleges (APUC), plans to
                          deliver significant procurement-related savings for institutions. There will
                          also be procurement efficiencies independent of APUC e.g. recruitment of
                          procurement professionals and improved processes and procedures.

                      •   Investment in estates

                          The Scottish budget spending review 2007 (SR07) has committed
                          continuing significant capital investment for colleges and universities over
                          the three financial years to 2010-11. Best practice in collaboration, co-
                          location of facilities, procurement, energy efficiency and waste
                          management will be part of institutions’ estate renewal strategies.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      The details will be worked up with the sectors over the next few months and
                      will be presented in the next iteration of this plan.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      None are planned.




   94
                                                                                      DG Education


9. Measurement       9.1       What are the inputs that will be measured?
                     Although not final, the following indicates the likely input measures for the
                     college and university sectors.

                     Identifying, sharing and replicating:

                     •     costs associated with the relevant activities          before   and   after
                           implementation of each ‘improvement programme’.

                     Procurement:

                     •     costs of relevant goods and services; and

                     •     operational costs of procurement activities.

                     Estates:

                     •     description and, if possible, recurring value of improvements to facilities
                           (i.e. facilities that did not exist prior to each re-development).

                     9.2       What are the outputs that will be measured?
                     As the colleges and universities develop more detailed efficiency plans, the
                     appropriate cash efficiency for each activity will become more apparent and
                     will be defined at that time, so as to enable a ‘before and after’ comparison.

                     It is already established practice that in return for funding from the Funding
                     Council, institutions have to deliver a defined volume of provision and
                     demonstrate continuous quality improvement. Monitoring and reporting
                     procedures for the efficiency projects will build upon this, and will be
                     developed in conjunction with the sectors.

                     9.3       What is the baseline for inputs and outputs?
                     For colleges and universities the baseline for each redeployment gain will be
                     the inputs and outputs of the associated activity in academic year 2007-08.

                     All reporting for the college and university sectors will cover the academic and
                     financial year period from 1 August to 31 July, which differs from the Scottish
                     Government’s financial year of 1 April to 31 March.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     It is anticipated that the developments will have positive impacts on the quality
                     of both teaching and research in colleges and universities.                 The
                     improvements in quality are expected to arise from: greater availability of
                     purpose-built teaching and research facilities; the sharing and replicating of
                     new approaches for the delivery of learning, teaching and support functions;
                     and enhanced investment in teaching and research.
                     With respect to qualitative measures, and monitoring thereof, existing
                     processes, such as the student satisfaction surveys, the work of the Quality
                     Assurance Agency and Her Majesty’s Inspectorate of Education will continue
                     and provide assurance that the transfer of resource, both cash and time, to
                     the frontline is having a positive impact on teaching and the learning
                     experience. The Research Assessment Exercise (RAE) measures the quality
                     of research work in departments submitted to the assessment. The last RAE
                     was 2001 and the results of the most recent RAE will be available later in
                     2008.


                                                                                                  95
DG Education


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   A Deputy Director and the DG Education Business Manager will be
                   responsible for co-ordinating the monitoring of activity across DG Education
                   and in agreeing plans with the Efficient Government leads in each Portfolio to
                   deliver the savings. Regular reports will be provided to DG Education Senior
                   Management Team and the Cabinet Secretary for ELL.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   See above.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Not at this time.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   At a strategic level, we will be working to achieve improved quality public
                   services through matching investment with reform, increasing public sector
                   productivity and designing services around the needs of individuals. It will be
                   an overall requirement that service levels must be maintained or improved.

                   The returns from the colleges and universities will include an analysis of
                   specific areas where there are improvements to service delivery brought about
                   by the release of resources through efficiencies in other areas.




   96
                                                                                      DG Education


1. Portfolio/Number/Name: DG Education / 12 / Skills Development Scotland
Programme/Activity:
Skills Development Scotland (SDS) has been in operation for almost eighteen months now.
It was launched by Scottish Ministers on 1 April 2008 and brought together Careers Scotland, Scottish
University for Industry (SUfI) and the skills and learning elements of Scottish Enterprise and
Highlands and Islands Enterprise.

The work of embedding the efficiency plan is now a live work in progress; however an indication of the
areas of savings being secured in the first year has been set out below as well as further indications
of methodology to meet future year savings. We expect to achieve planned efficiencies in 2009/10.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash               8               12               19
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash               8                -                -
                 delivered; £m
                                         Time               -                -                -
4. Accountable Officer for delivery                   Damien Yeates, Chief Executive.
                                                      Andrew Livingstone, Director of Finance and
5. Project Manager                                    Audit and Company Secretary.
                                                      Anthony Daye, Head of Finance
6. EGDD Portfolio Manager                             Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  SDS has delivered efficiency savings for 2008-9. SDS has begun to realise
taken
                       further savings for 2009-10, and it will continue to deliver cash releasing
                       efficiency savings by securing synergies from the review and co-ordination of
                       the activities undertaken by previous separate organisations. It continues to
                       implement ways of providing the same service levels at a reduced cost i.e.
                       same output(s) for a reduced set of inputs, while simultaneously seeking to
                       design and implement more efficacious and cost effective public services.

                       This is consistent with the SDS Corporate and Operating Plan that will shortly
                       be finalised for the period for 2009/12.




                                                                                                  97
DG Education


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      Design, pilot and evaluation of new career management channels, and skills
                      and employability interventions for employers, young people and the adult
                      workforce.

                      Streamlining of resources through the new Directorate structure while
                      maintaining delivery of front line customer facing at current level with no
                      compulsory redundancies.

                      Discussions with public sector colleagues on shared service provision in
                      course of 2009/10. These have progressed to discussions with specific
                      organisations such as SE, HIE, and Learning Teaching Scotland.

                      Focus on providing a comprehensive and understandable performance
                      management framework which highlights the outcomes associated with
                      efficiency savings.

                      Partnership and collaborative working practices with other organisations and
                      agencies to gain greater impact and leverage from SDS’s budget. SDS has
                      embarked on joint working in particular with Scottish Funding Council and Job
                      Centre Plus (DWP).

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      N/A

9. Measurement        9.1     What are the inputs that will be measured?
                      Although not final, the following indicate the likely input measures for SDS.
                      These efficiencies are still ongoing and some have been delivered in full
                      during 2009/10 with others projected for later delivery.

                      Business synergies [Costs associated with delivery of relevant information
                      advice and guidance before and after implementation of changes to the
                      business model for delivery.]

                      Innovative Service Design, more cohesive operational delivery and improved
                      skills and learning tools.

                      Reduction in duplication of activities, costs and securing of overheads:
                         • Contracts
                         • Contact centre and fulfilment
                         • Procurement of goods and services
                         • Shared services
                         • IS/IT simplification
                         • Realistic and economical estates strategy

                      9.2     What are the outputs that will be measured?
                      It is intended that the top level outcomes for the SDS services will be
                      published in the SDS Corporate and Operating Plan for 2009/12, and a
                      performance management framework is being developed, partly in alignment
                      with sister bodies. SDS will need to continue to evaluate its operation,
                      products and services to ensure that they deliver fully against their stated aims
                      to meet the needs of the government’s skills and economic strategies.




   98
                                                                                    DG Education


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     It is 2007/08 baseline position for inputs and outputs inherited from the
                     conjoining organisations.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     SDS approach to quality indicators is work in progress, and indeed a
                     performance management approach is in progress of being formulated and
                     will be implemented during 2009/10.

                     SDS will participate in quality frameworks, such as IIP & Chartermark, and has
                     a stated aim to become involved in the Public Service Improvement
                     Framework.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The Finance and Audit Directorate will ensure that the efficiencies are
                     recorded and relevant evidence captured in respect of the identified projects.
                     The key tool will be management accounting reports and the performance
                     framework.

                     Outputs from these have been reported to the Management Team, the Board
                     of SDS and to the Sponsor Division on a monthly basis. Regular monitoring
                     will continue to be undertaken in conjunction with the Efficient Government
                     and Sponsor teams. To this end, a stronger emphasis has been placed in
                     performance management with a key senior post being created that will lead
                     the tracking, monitoring and reporting of outcomes. SDS also carries out
                     monthly financial management meetings with our sponsor team.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See above.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Not at this time.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     At a strategic level, we will be working to achieve improved quality public
                     services through matching investment with reform, increasing public sector
                     productivity and designing services around the needs of individuals. It will be
                     an overall requirement that service levels must be maintained or improved.




                                                                                                99
                                                                                   DG Education


1. Portfolio/Number/Name: DG Education / 13 /Her Majesty’s Inspectorate of Education Revised
Programme/Activity:
Her Majesty’s Inspectorate of Education (HMIE)

3. Efficiency                                        2008-09         2009-10          2010-11
                3.1 Target; £m
                                          Cash           0.341         0.837            1.287
                                                     2008-09         2009-10          2010-11
                3.2 Efficiencies
                                          Cash           0.546          -                -
                   delivered; £m
                                          Time             -            -                -
                                                   Graham Donaldson, HM Senior Chief
4. Accountable Officer for delivery                Inspector, HMIE
                                                   Stuart Robinson, Corporate Services Director,
5. Project Manager                                 HMIE
6. EGDD Portfolio Manager                          Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  An increase in the number of school inspections without a concomitant
taken
                      increase in budget. Primary inspections up from 237 in 2007-08 to 266 in 08-
                      09, 314 in 2009-10 and 314 in 2010-11. Secondary inspections are planned
                      to increase from 50 in 2007-08 to 57 in 2008-09, 65 in 2009-10 and 65 in
                      2010-11. (see following table for more detail)

                      Following implementation of more efficient scrutiny models and other cost
                      saving measures, such as use of collaborative contracts and reducing travel
                      costs, HMIE has offered up a further £450k in savings to support other
                      priorities. 2010-11 figure is increased accordingly.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Savings will be delivered through a reduction in the size of the inspection
                      models – primary reduced by 11.1% and secondary by 20.5%. Other HMIE
                      task activities will also need to be re-balanced.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Extensive staff training is required before the new models are implemented
                      and these costs will also be consumed within existing budgets.

9. Measurement        9.1     What are the inputs that will be measured?
                      The number of days per inspection.

                      9.2     What are the outputs that will be measured?
                      The number of schools inspected.

                      9.3     What is the baseline for inputs and outputs?
                      237 primary school inspections at 11.7 days each.
                      50 secondary school inspections at 30.5 days each.




100
                                                                                       DG Education


10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       All inspections are subjected to evaluation – through post-inspection
                       questionnaires to headteachers, parents etc.

11. Monitoring         11.1 What are the arrangements for monitoring the delivery of
                       efficiencies?
                       HMIE monitor progress against all objectives through our business planning
                       system. Performance is published in our Annual Report & Accounts.

12. Reporting          12.1 What are the arrangements for reporting the delivery of
                       efficiencies?
                       See 11.

13. Dependencies       13.1 Explain if your efficiencies are dependent on legislation or other
                       structural changes being achieved.
                       The savings are dependent upon implementation of new inspection models.

14. Use of             14.1 How are the efficiencies released from improvement activity
efficiencies           being used to improve front-line services?
                       The new models are more proportionate and reduce the bureaucracy
                       surrounding an inspection. The number of days in a school are reduced.


HMIE - SAVINGS TO DELIVER SCHOOL INSPECTION PROGRAMME 2008-09 TO 2010-11

The table below estimates the notional cash releasing savings that will need to be achieved to deliver
the planned number of school inspections over the next three years. The savings are not cumulative.

                                                Primary                         Secondary
                                     *                                           *
                                      %                                           %
            Nos.        Nos.      increase               Nos.        Nos.     increase
                                              Saving                                      Saving
           Schools      Days        over                Schools      Days       over
                                   2007-08                                     2007-08

2007-08        237     2772.9                              50        1525
2008-09        266     3112.2      12.2%      £209k        57       1738.5       14%       £132k
2009-10        314     3673.8      32.5%      £555k        65       1982.5       30%       £282k
2010-11     314       3673.8     32.5%        £555k        65       1982.5       30%       £282k
*
uses HM Inspector cost of £616 per day

Delivery

Savings delivered through a reduction in the size of the inspection models – Primary down from 11.7
days to 10.4 (11.1%) and Secondary 30.5 days down to 24.25 days (20.5%) and rebalancing other
HMIE task activities.




                                                                                                 101
                                                                                     DG Education


Portfolio/Number/Name: DG Education / 14 / Scottish Qualifications Authority
1. Programme/Activity:
Scottish Qualifications Authority (SQA) will deliver continuous improvement and increasing
efficiencies in financial management leading to more efficient operational activity.

3. Efficiency                                          2008-09         2009-10           2010-11
                3.1 Target; £m
                                        Cash              0.4             0.7              1.0
                                                       2008-09         2009-10           2010-11
                3.2 Efficiencies
                                        Cash            0.446             -                 -
                   delivered; £m
                                        Time               -              -                 -
                                                    Philip Rycroft is the Accountable Officer (AO)
                                                    for the portfolio. The Chief Executive of the
4. Accountable Officer for delivery                 SQA, Janet Brown, is the AO for the savings to
                                                    be delivered by the SQA.
5. Project Manager                                  Kenny McKenzie
6. EGDD Portfolio Manager                           Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   SQA will make savings on its operational costs equivalent to the absorption of
taken
                      the effect of inflation across each of the three years. This will be addressed
                      through a range of measures that SQA has operated in previous years. These
                      include:

                      Improvements in control of office supplies;
                      Reduction in staff expenses travelling between sites;
                      Renewed internal audit contract at better rates;
                      Better management of temporary staff leading to reduced costs;
                      Move towards central modernisation;
                      Procurement efficiencies in assessment materials.

                      For 2008-09 such measures included:

                      Reduction in staff travel and subsistence expenses;
                      Better management of temporary staff leading to reduced costs;
                      External venue costs

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Delivery is dependent on the SQA. As Chief Executive of the SQA, Janet
                      Brown is accountable for the delivery of these savings.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      None are planned.
9. Measurement        9.1     What are the inputs that will be measured?
                      The grant-in-aid funding allocation to the SQA has already been reduced by
                      4.4% (£0.4m) for 2008-09 as a result of flat-lining operational costs and
                      through general efficiency savings that have allowed SQA to absorb
                      inflationary increases. Grant-in-aid funding will be held static in 2009-10 and
                      2010-11.




102
                                                                                   DG Education


9. Measurement       9.2       What are the outputs that will be measured?
                     SQA must demonstrate the same level of agreed service delivery despite the
                     reduction in inputs relative to inflation.

                     9.3       What is the baseline for inputs and outputs?
                     2007-08 expenditure and service delivery achievements are the baselines for
                     the inputs and outputs.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                           •   SQA’s achievement of corporate plan and business plan objectives.
                           •   SQA’s achievement of annual Examination Diet targets.
                           •   SQA’s success in meeting its benchmark targets.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Delivery will be measured through monthly financial monitoring and annual
                     budget setting exercises. Efficiency savings will be monitored as part of the
                     normal monthly financial monitoring provided by SQA.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See above.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Not relevant.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     This efficiency savings were assumed as part of the Spending Review
                     allocation made by the Scottish Government to the SQA. This freed up
                     resources for Ministers to reallocate to other priorities.




                                                                                              103
DG Education



         1. Director General/Number/Name: DG Education / 15 /
                  International activity in Scottish universities

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   104
                                                                                         DG Education


1. Portfolio/Number/Name: DG Education / 16 / Student Teacher Intakes /
                               Teacher Workforce Planning                                        Revised
2. Programme/Activity:
Teacher workforce planning is about balancing the supply of and demand for teachers. SG conducts
an annual exercise to determine how many student teachers should be recruited by universities and
issues guidance to the Scottish Funding Council accordingly. There is growing evidence that local
authorities have not been employing as many teachers as had been envisaged, leading to an over
supply of teachers. Steps were taken in 2009-`10 and 2010-11 to address the supply/demand
imbalance.

3. Efficiency                                            2008-09           2009-10           2010-11
                3.1 Target; £m
                                         Cash                                 4.5               16.9
                                                         2008-09           2009-10           2010-11
                3.2 Efficiencies
                                         Cash
                delivered; £m
                                         Time           -               -                -
4. Accountable Officer for delivery              Leslie Evans
5. Project Manager                               Michael Kellet
6. EGDD Portfolio Manager                        Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be      Student teacher intakes in 2009 were reduced by 500 from those originally
taken              planned. That reduction was a response to inefficiency – ie oversupply – in
                      the teaching workforce in Scotland. A further 1,550 fewer student teachers
                      will be recruited in 2010. The reduction in expenditure between 2009-10 and
                      2010-11 will be a further 12.4 million. In order to help universities manage the
                      downturn in student numbers we agreed that £3m could be used to maintain
                      capacity in universities and support the development of Curriculum for
                      Excellence. However this funding is also being used to support
                      transformational change and improvement in the quality of education.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Reducing the number of teachers trained in Scotland and redeploying some of
                      the resulting savings (£3 million) to better develop the existing teaching
                      workforce to implement Curriculum for Excellence. The remainder of the
                      savings will be deployed to meet other pressures across the portfolio.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      It is possible universities will incur redundancy costs if they require to reduce
                      their workforce as a result of this measure. It is not yet clear if this will be the
                      case, so no estimate of cost is currently available. However, if this does result,
                      costs will be ‘netted off’ from savings.

9. Measurement        9.1     What are the inputs that will be measured?
                      Reductions in Student teacher intakes for 2010

                      9.2     What are the outputs that will be measured?
                      Quantity and quality of professional development made available to support
                      Curriculum for Excellence implementation




                                                                                                       105
DG Education


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     Baseline for Student intakes are the estimates of requirements for new
                     teachers in the teacher workforce planning exercise.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Teacher numbers and teacher vacancy statistics will provide information the
                     match between teacher supply and teacher demand.

                     We are developing indicators to measure success of Curriculum for
                     Excellence implementation.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Universities will monitor and report on student intakes and on how the
                     resource freed up will support Curriculum for Excellence implementation.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See 11 above.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     Through re-deploying the resource from supporting the education of surplus
                     teachers to supporting the capacity of the existing teacher workforce, schools
                     and education authorities to deliver Curriculum for Excellence. A large
                     proportion of the 2010-11 savings will go towards meeting other pressures to
                     deliver Scottish Government priorities across the portfolio.




   106
                                                                                      DG Education


1. Portfolio/Number/Name: DG Education / 17 / Care & Justice
2. Programme/Activity:
Delivery of a sustainable secure care estate for children and young people.

3. Efficiency                                             2008-09          2009-10        2010-11
                 3.1 Target; £m
                                           Cash              -                1.27           -
                                                          2008-09          2009-10        2010-11
                 3.2 Efficiencies
                                           Cash              -                -              -
                 delivered; £m
                                           Time              -                -              -
4. Accountable Officer for delivery           Leslie Evans
5. Project Manager                            Donna Bell
6. EGDD Portfolio Manager                     Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   In 2008/09 SG provided emergency financial support (£2.4m) to the secure
taken
                       care estate to support providers through a period of under-occupancy. SG
                       then led a process (the Securing Our Future Initiative) that resulted in an
                       agreement to “mothball” 12 beds until a sustainable and strategic
                       commissioning process could be put in place, retaining the possibility of
                       bringing these beds back on stream if needed.

                       Officials were clear that we could not continue to sustain support in the
                       medium term, particularly for excess staff. We agreed to continue some
                       support but with the following conditions:

                        •    Excess staff to be made redundant on a voluntary basis.
                        •    Skeleton staff to be redeployed and used to support young people in their
                             transitions to the community unless responding to emergency
                             requirement for mothballed beds.
                        •    Evaluation of this transitional support to understand whether provision
                             achieves better outcomes for young people and therefore less burden on
                             the public purse in future.

                       This means that instead of paying for empty beds and underemployed staff,
                       officials have reduced the cost of support to the SG via redundancies, and
                       driven additional value out of this situation by making enhanced services
                       available and gathering the learning so it can be replicated elsewhere.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                        •    Ensure that redundancies take place.
                        •    Ensure the delivery of transitional support
                        •    Ensure delivery of evaluation

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       Redundancy costs of £600k approx, but primary purpose of exercise is to
                       address appropriately the needs of and risks to young people, rather than
                       efficiency.

9. Measurement         9.1      What are the inputs that will be measured?
                       Financial only.



                                                                                                 107
DG Education


9. Measurement       9.2      What are the outputs that will be measured?
                     •     Occupancy rates
                     •     Income and expenditure
                     •     Outcomes for young         people      (behaviour,   education,   skills   and
                           employability)

                     9.3      What is the baseline for inputs and outputs?
                     •     Occupancy rates – previous years
                     •     Income and expenditure – previous years and planned budgets
                     •     Outcomes for young people (behaviour, education, skills and
                           employability)- individual child data and Looked After Children statistics.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     •     Care Standards (Care Commission inspected)
                     •     HMIE requirements (Inspected by HMIE)

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     •     Weekly occupancy rates
                     •     Monthly financial returns
                     •     Interim and final evaluation reports

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Information at 11 reported to project manager monthly and supplied to others
                     as required. Follow up to be supplied as part of follow up to the Securing Our
                     Future Initiative.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     •     Skeleton staff redeployed to support young people in their transitions to
                           the community. Assisting young people with housing/accommodation,
                           education and skills, benefits, behaviour management and life skills.
                     •     Evaluation of this transitional support to understand whether provision
                           achieves better outcomes for young people, allowing others to replicate
                           model if appropriate.




   108
                                                                                     DG Education


1. Portfolio/Number/Name: DG Education / 18 / Education Maintenance Allowance (EMA)
2. Programme/Activity:
Education Maintenance Allowance(EMA) provides financial support to young people to remain in
learning post-16 based on defined eligibility criteria being met.

3. Efficiency                                         2008-09          2009-10          2010-11
                3.1 Target; £m
                                       Cash              -                2.7              3.0
                                                      2008-09          2009-10          2010-11
                3.2 Efficiencies
                                       Cash              -                -                -
                delivered; £m
                                       Time              -                -                -
4. Accountable Officer for delivery            Stephen Devine
5. Project Manager                             John Paul Liddle
6. EGDD Portfolio Manager                      Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The purpose of EMA is to encourage young people to remain in learning post-
taken
                     16. Evaluation of the EMA programme identified “deadweight” (young people
                     who would have stayed at school or gone to college regardless of EMA) within
                     the scheme – particularly among young people who were ineligible for the
                     highest allowance (£30 per week) because of their family income. We have
                     introduced policy changes from 2009-10 which focuses EMA to young people
                     from the lowest-income households. The expectation is that young people
                     from higher income families, who would previously have received EMA, will
                     remain in learning despite its removal.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     We have announced the changes to EMA, amended the guidance and
                     application form for the programme, and worked closely with local authorities,
                     colleges and the Scottish Funding Council to ensure the changes are
                     understood.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No.

9. Measurement       9.1     What are the inputs that will be measured?
                     Numbers of young people receiving EMA.

                     9.2     What are the outputs that will be measured?
                     Numbers of young people who remain in learning.

                     We have also changed the electronic collection of EMA data this year which
                     will allow us to consider direct links to attainment, school leaver destinations
                     and other data sets for the first time.

                     9.3     What is the baseline for inputs and outputs?
                     EMA, and school staying on statistics from previous years since the
                     programme was introduced nationally in 2004-05.




                                                                                                 109
DG Education


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     We closely monitor the number of young people claiming EMA and the spend
                     at local authority level on a monthly basis. We will also consider school leaver
                     destination data and school staying on rates.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monthly monitoring of EMA claims compared to previous years.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Standard reporting procedure on efficiency targets for the portfolio.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     All structural changes necessary for the efficiencies to be achieved have been
                     put in place – revised EMA guidance, business model and application form.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     We are reinvesting the efficiencies in pilots of Activity Agreements. These will
                     improve the way we support and recognise young people who learn best in a
                     community or third sector setting. Those young people are likely to be among
                     the most vulnerable and therefore most in need of support.




   110
                                                                                    DG Education


1. Portfolio/Number/Name: DG Education / 19 / Employability and Skills
2. Programme/Activity:
ScotAction – European Social Fund supported projects.

3. Efficiency                                           2008-09        2009-10          2010-11
                3.1 Target; £m
                                        Cash               -            1.001            0.286
                                                        2008-09        2009-10          2010-11
                3.2 Efficiencies
                                        Cash               -              -                -
                delivered; £m
                                        Time               -              -                -
4. Accountable Officer for delivery               Leslie Evans
5. Project Manager                                Christine Mulligan
6. EGDD Portfolio Manager                         Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be      The efficiencies relate to European Social Fund money which has been
taken              secured and will be received in 2009/2010.
                      Earlier in 2009, the Cabinet Secretary for Education and Lifelong Learning
                      asked the Economic Response Unit to consider the strategic use of European
                      Social Fund money during the recession, as a means of adding value to
                      Scottish Government funding for skills and training activity.
                      As a direct response, “ScotAction” was introduced - an integrated package
                      combining new and improved measures to help individuals and businesses
                      through the recession and will provide skills assistance.           ScotAction
                      assistance supports training for work, training in work and training from work
                      to work, to help Scottish people and businesses survive the downturn and
                      thrive when the economy starts to recover.
                      To date there have been 6 ESF projects developed and approved that will
                      deliver activity in 2009/2010. These ESF projects will be delivered by Skills
                      Development Scotland. The match funding for the projects (55% in the
                      Lowlands and Uplands Scotland and 50% in the Highlands & Islands
                      Programme areas) will come from the 2009/2010 SDS budget. ESF is paid
                      quarterly in arrears and is based on the actual level of spend reported.
                      The total ESF secured against these projects 2009/2010 is approximately £3m
                      The anticipated total ESF claimed against these projects is unlikely to be
                      greater than £1.1m in 2009/2010.
                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Training for Work – A proportion of the 2009/2010 Training for Work budget
                      was used as match funding for an ESF application to increase the number of
                      Training Places available to unemployed, vulnerable individuals. The ESF
                      allows a total maximum spend of £6.5m in both the Lowlands and Highlands
                      programme areas. The maximum ESF which can be claimed is £2,972,640.
                      However payment stages in TfW contracts are mainly based on job outcomes
                      and are unlikely to be fully paid out in the current financial year. Financial
                      claims on this project can be claimed up to September 2010.

                      Adopt an Apprentice
                      On 10th June the Cabinet Secretary for Education and Lifelong Learning
                      announced the Adopt an Apprentice scheme which offers employers £2,000 to
                      take on a redundant apprentice to allow them to continue and complete their
                      apprenticeship.



                                                                                                 111
DG Education


7. Description of     By the end of October 2009, 181 applications had been received from
efficiency and        employers seeking to recruit redundant apprentices and 175 of these had
actions to be taken   been approved by that date. According to ConstructionSkills alternative
                      employment has been secured for a higher percentage of redundant
                      apprentices in construction in Scotland than in any of the other countries in the
                      UK.
                      The scheme is supported by the European Social Fund in both The Lowlands
                      and Uplands Programme and Highlands & Islands Programme areas.           It is
                      managed by Skills Development Scotland and the match funding for the ESF
                      projects comes from the additional £16m allocation to support 7800 additional
                      apprentices in 2009/2010.
                      The maximum ESF that will be claimed in 2009/2010 is £370,764. We
                      envisage that most of this will be claimed by the end of the financial year
                      although payment can be claimed up to September 2010.
                      Innovate with an Apprentice – Life Sciences
                      This scheme was announced on 29 June and offers a 50% contribution to
                      wage costs when a private sector employer takes on two apprentices in Life
                      Sciences. Life Science Modern Apprenticeship frameworks were developed
                      by SEMTA earlier this year to address the key components industry has been
                      asking for in their life science technicians.
                      Life Sciences has been identified as a key growth sector in the Government
                      Economic Strategy as it offers the opportunity to strengthen Scotland's areas
                      of international comparative advantage. If the sector develops as we
                      anticipate there will an increase in demand at technician level as well as at
                      more advanced levels. The Government’s offer would act as a clear
                      demonstration of its long-term commitment to this sector as it develops in
                      Scotland, by acting to ensure an adequate supply of qualified labour.
                      So far 24 companies (17 of which are SMEs) have indicated that they will be
                      recruiting 58 Life Sciences MAs. 47 of these will be new employees. The
                      scheme is supported by the European Social Fund in both The Lowlands and
                      Uplands Programme and Highlands & Islands Programme areas.
                      The project will be delivered over 3 financial years and the maximum ESF
                      attracted could be around £2m over both Lowlands & Highland areas.
                      However, spend is based on the actual salary costs and MA Training
                      Contribution levels for the apprentices.
                      The majority of apprenticeships supported by this project will start by the end
                      of 2009 and there will be a claim for salary costs from Jan – March 2010 and
                      associated MA training costs in the current financial year. We do not envisage
                      that this will be any more than £350,000.
                      In 2010/2011 we anticipate the project supporting a maximum of 60
                      apprentices with a total spend of around £635,000. This will attract ESF grant
                      of approximately £285,750.
                      Safeguard and Invest in an Apprentice
                      Safeguard and Invest in an Apprentice is the most recent apprenticeship
                      support package and is intended to boost recruitment in particular sectors as
                      well as supporting employers in the sectors worst affected by the economic
                      downturn.
                      Invest in an Apprentice (1) provides a financial incentive of £2,000 to SMEs
                      in the food and drink, energy, manufacturing and textile sectors to recruit a 16-
                      19 year apprentice.
                      Invest in an Apprentice (2) provides a financial incentive of £2,000 to micro-
                      businesses (less than 10 employees) where employees are undertaking a
                      Level 3 or Level 4 Management MA.


   112
                                                                                     DG Education


7. Description of     Safeguard an Apprentice provides a wage subsidy of £75 per week, up until
efficiency and        31 March to 2009 to employers in the construction, manufacturing and
actions to be taken   engineering sectors who are at risk of making their apprentices redundant.
                      This support is only available until 31 March 2010 and spend will therefore
                      relate to the current financial year. The maximum ESF that this project can
                      attract is £463,950 and it is anticipated that this will be achieved.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No
9. Measurement        9.1     What are the inputs that will be measured?
                      The SDS budget will contribute £1,223,682 ‘match funding’ towards these
                      projects which include SDS staff resources.
                      9.2     What are the outputs that will be measured?
                      TFW - Number of new TfW places secured/% qualifications achieved/% job
                      outcomes achieved
                      Adopt an Apprentice - Number of redundant apprentices supported, %
                      qualifications achieved
                      Innovate – Number of new apprentices in Life Sciences sector
                      Safeguard - Number of apprentice jobs safeguarded
                      Invest - Number of new apprentices jobs created
                      9.3     What is the baseline for inputs and outputs?
                      TfW - Additional TfW funding associated with the ESF project was contracted
                      separately with Training Providers. The baseline figure is any TfW activity
                      over and above the original contract levels.
                      Adopt an Apprentice – SDS Corporate Training System and information
                      gathered from Training Providers on MA redundancy figures.
                      Innovate, Safeguard and Invest – SDS Corporate Training System - records
                      every MA in Scotland.
10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Skills Development Scotland will ensure that quality of service is maintained
                      through existing compliance and monitoring procedures.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      In relation to the Apprenticeship support, SDS compliance staff carry out
                      regular checks on Training Providers and apprentices training records.
                      Additional recording and monitoring systems have been put in place to ensure
                      compliance with requirements for the ESF claims and progress reports.

12. Reporting         12.1 What are the arrangements for reporting the delivery of
                      efficiencies?
                      Regular claims and progress reports are required by the Intermediary
                      Administrative Body (IAB) for the Structural Fund programmes in Scotland.
                      There are also official monitoring and audit visits carried out by the IAB and
                      the Scottish Government Structural Funds Division.




                                                                                               113
DG Education


13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   N/A

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   Through the use of ESF support the Scottish Government and SDS are able
                   to provide
                   •        Additional TfW places
                   •        Additional support to employers of apprentices
                   •        Additional apprentices.




   114
                                                                                     DG Education


1. Portfolio/Number/Name: DG Education / 20 / European Social Fund and Colleges                  NEW
2. Programme/Activity:
Scottish Funding Council European Social Fund Project: “The College Sector: Investing in Recovery”

3. Efficiency                                          2008-09         2009-10           2010-11
                 3.1 Target; £m
                                        Cash                                               6.9
                                                       2008-09         2009-10           2010-11
                 3.2 Efficiencies
                                        Cash
                 delivered; £m
                                        Time               -               -                 -
4. Accountable Officer for delivery                 The Chief Executive of the Scottish Funding
                                                    Council
5. Project Manager                                  Brian Baverstock, Director of Governance &
                                                    Management: Appraisal & Policy.
6. EGDD Portfolio Manager                           Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  By match funding existing resources with an European Social Fund (ESF) bid
taken
                      the Scottish Funding Council (SFC) have maximised the investment in the
                      college sector. Therefore accessing additional resources that wouldn’t
                      normally be available to the sector.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      This resource is over and above the core grant that the college sector will
                      receive from the SFC. Therefore by submitting a strategic bid on behalf of the
                      sector, the SFC have managed to increase the original resource that would
                      have gone to an individual college if they had undertaken the bid themselves.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No

9. Measurement        9.1     What are the inputs that will be measured?
                      As part of their remit the SFC will monitor the financial health and
                      sustainability of colleges in order to safeguard the interests of learners, and
                      the investment of public funds.

                      9.2     What are the outputs that will be measured?
                      The number of places and type of course the college sector will offer and the
                      number of students who achieve a qualification and ultimately employment or
                      further study.

                      9.3     What is the baseline for inputs and outputs?
                      Additional resources will only be allocated over and above the individual
                      college’s contracted SUMs.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Criteria set by the SFC based on formula funding basis.



                                                                                                 115
DG Education


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   Initial monitoring will be undertaken by the college and thereafter by the SFC,
                   who will report quarterly to the SG Efficient Government team.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Each college will need to submit a return to the SFC prior to receiving any
                   resource. Ultimately the SFC will be required to collate evidence for a
                   European audit.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   n/a

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   To provide additional college places over and above the colleges contracted
                   output.




   116
                                                                DG Environment



   1. Director General/Number/Name: DG Environment / 1 /
                         Crofters Commission

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             117
DG Environment


1. Portfolio/Number/Name: DG Environment / 2 / Rural Payments and Inspections
2. Programme/Activity:
Rural Payments and Inspections Administration Costs

The Rural Payments and Inspections Administration Costs budget is used to carry out inspections on
farms to ensure compliance with EU and national legislation. It also includes administration and
development costs associated with making payments to CAP pillar 1 and pillar 2 claimants.

3. Efficiency                                         2008-09         2009-10          2010-11
                3.1 Target; £m
                                          Cash           0.7             2.2               3.7
                                                      2008-09         2009-10          2010-11
                3.2 Efficiencies
                                          Cash           0.7             -                -
                   delivered; £m
                                          Time      -                    -                -
4. Accountable Officer for delivery           Paul Gray
5. Project Manager                            Rab Fleming
6. EGDD Portfolio Manager                     Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Through business process changes and improved IT processes, expenditure
taken
                      on rural payments and inspections will be reduced whilst the number of farms
                      inspected and claimants paid will remain the same or increase.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      In order to deliver this efficiency improvement, the project on improving
                      specification of requirements needs to be completed and there needs to be
                      successful adoption of the latest technology for programme delivery.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      The budget line includes the ongoing development costs associated with the
                      delivery of rural payments and inspections.

9. Measurement        9.1     What are the inputs that will be measured?
                      Expenditure on rural payments and inspection administration costs.

                      9.2     What are the outputs that will be measured?
                      Number of farms inspected and claimants paid.

                      9.3     What is the baseline for inputs and outputs?
                      The baseline for inputs is 2007-08 expenditure on rural payments and
                      inspection administration costs. The baseline for outputs is the number of
                      farms inspected and claimants paid in 2007-08 as well as the 2007-08 budget
                      for CAP pillar 1 and 2 payments (£600m+).




   118
                                                                                 DG Environment


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Performance on delivering payments on time and on avoiding disallowance
                     will be monitored to ensure quality is not compromised in delivering these
                     payments.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Expenditure on rural payments and inspection administration costs are
                     monitored monthly against the profiled spend for the year. Payment
                     performance is also monitored to ensure that the quality of service is not
                     compromised.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The delivery of efficiencies will be reported to the Director of Rural Payments
                     and Inspections Directorate on a quarterly basis.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     The delivery of efficiencies are not dependent on legislation bur any changes
                     resulting from the CAP Health Check or to the RDR may impact on the
                     delivery of these efficiencies.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made by the Scottish
                     Executive to the Rural Payments and Inspections Directorate. This freed up
                     resources for Ministers to allocate to their priorities.




                                                                                               119
DG Environment



         1. Director General/Number/Name: DG Environment / 3 /
           Loch Lomond and the Trossachs National Park Authority

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




         1. Director General/Number/Name: DG Environment / 4 /
                      Cairngorms National Park Authority

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




         1. Director General/Number/Name: DG Environment / 5 /
                         Deer Commission for Scotland

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   120
                                                                                    DG Environment


1. Portfolio/Number/Name: DG Environment / 6 / Scottish Natural Heritage (SNH)
2. Programme/Activity:
Cash releasing savings to be identified through business process improvement work, co-location and
shared services and rationalisation of asset base.
3. Efficiency                                           2008-09          2009-10           2010-11
                  3.1 Target; £m
                                         Cash              1.27            2.402             3.598
                                                        2008-09          2009-10           2010-11
                  3.2 Efficiencies
                                         Cash              8.46             -                 -
                      delivered; £m
                                         Time               -               -                 -
                                                      Paul Gray and Chief Executive of SNH
4. Accountable Officer for delivery                   Ian Jardine
5. Project Manager                                    John Thomson/Patricia Houghton
6. EGDD Portfolio Manager                             Shona MacPherson
7. Description of 7.1 What is the efficiency         improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  Cash-releasing efficiencies           will be gained through active vacancy
taken
                      management, either through redeployment or non-filling of posts when vacant.
                      SNH has a Business Process Improvement Programme in place. The
                      following projects are currently in progress or will be undertaken within the next
                      three years to deliver improvements to current services.
                           • Managing Research
                           • HR Management Information System;
                           • Business Planning & Performance Reporting
                           • e-Procurement
                           • Review of Planning Casework
                           • Site Condition Monitoring database
                           • Grant application processing

                      SNH will continue to engage with other public sector bodies, particularly in the
                      SEARS family to seek opportunity for shared services – in co-location of
                      organisations, shared procurement and service delivery of and back office
                      functions. Other collaborative approaches are being pursued with SNH taking
                      the lead in enabling efficiencies such as:
                           • property condition survey works and planned preventative
                               maintenance programme for both SNH and potentially FCS.
                           • Shared contract for training
                           • Shared vehicle fleet provision
                           • Information systems eg. helpdesk and WAN

                      Following on from the SG review of publicly owned/leased land and buildings,
                      SNH will review its asset base to assess opportunities for rationalisation and
                      efficiencies.
                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      SNH will adopt formal programme management of the Projects for our
                      contribution to EGP that will report to our Senior Management Team and
                      Board as appropriate. Project management will adopt existing and well-
                      established EGI governance practices, already acknowledged as Best Practice
                      by the SG EGI Team.




                                                                                                   121
DG Environment


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     Business Process Improvement projects listed above are not being pursued on
                     efficiency grounds alone and therefore the development costs associated with
                     each will not be netted off.

                     There will be no redundancy cost associated with the delivery of the efficiencies,
                     with salary cost reductions being achieved through active vacancy
                     management.

9. Measurement       9.1       What are the inputs that will be measured?
                     Costs, people, procurement, assets

                     9.2       What are the outputs that will be measured?
                     Delivery of the key targets in SNH’s Corporate Plan at a reduced cost.

                     9.3       What is the baseline for inputs and outputs?
                     The 2007/08 budget position as at Spring Budget Review will be used as the
                     baseline. For example, in any service provision, how many staff are required,
                     what is the cost, what assets are used? The final output will be measured
                     against the 2007/08 output for that service.

10. Quality cross-   10.1      What quality indicators are being used to ensure that quality of
check                          service is maintained or improved?
                     •     Customer/stakeholder surveys
                     •     Key performance indicators (KPIs)
                     •     Review of MOTUs (for shared services) and any other service level
                           agreements

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                           •   SNH’s Senior Management Team will own the Efficiency Programme
                               and will receive regular progress reports based on PRINCE
                               methodology encompassing Spend against budget and service delivery
                               against pre-determine standards
                           •   BPI efficiencies will be reported through the BPI Programme Board.
                           •   Co-location projects are monitored through specific joint working
                               groups/project boards e.g. SEARS

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     An update on SNH’s Efficiency Delivery Plan will be reported to sponsor
                     department/EGI team on a quarterly basis. In July and January of each year of
                     the Spending Review 2007 period, SNH will submit updated efficiency delivery
                     plans. SNH will also demonstrate through the monthly performance reports the
                     budget position against outcomes.




   122
                                                                          DG Environment


13.            13.1 Explain if your efficiencies are dependent on legislation or other
Dependencies   structural changes being achieved.
               Efficiencies are not dependent on legislation. However, for any efficiencies
               gained through shared services, structural changes may be required such as
               co-location of organisation.

14. Use of     14.1 How are the efficiencies released from improvement activity
efficiencies   being used to improve services?
               This efficiency was assumed as part of the allocation made by the Scottish
               Government to Scottish Natural Heritage, which freed up resources for
               Ministers to allocate to their priorities. The 2007-08 budget for SNH in SR07
               was 68.2m and the 2008-11 plans are £67.2m/£69.7m/£71.4m.




                                                                                       123
DG Environment



         1. Director General/Number/Name: DG Environment / 7 /
                             Veterinary Surveillance

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   124
                                                                                    DG Environment


1. Portfolio/Number/Name: DG Environment / 8 / Voluntary Modulation
2. Programme/Activity: Voluntary Modulation
Voluntary modulation refers to the transfer of funds from Pillar 1 of the Common Agricultural Policy to
Pillar II focusing on rural development, which provides support to land managers for the
implementation of specific measures aimed at improving the competitiveness of Scottish Agriculture,
environmental outcomes and strengthening rural communities.

3. Efficiency                                            2008-09         2009-10          2010-11
                 3.1 Target; £m
                                          Cash             35.7             38.1             40.2
                                                         2008-09         2009-10          2010-11
                 3.2 Efficiencies
                                          Cash             35.7             -                -
                  delivered; £m
                                          Time           -                  -                -
4. Accountable Officer for delivery              Paul Gray
5. Project Manager                               David Barnes
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Transfer of resources from Pillar I to Pillar II of CAP via modulation reduces
taken              the amount of Single Farm Payment (SFP) received by farmers, but it does
                       not affect welfare benefits delivered by the SFP through GAEC and cross-
                       compliance requirements. This is because GAEC and cross compliance
                       requirements are enforced independently of the amount of SFP paid to
                       farmers.

                       Financial resources raised from voluntary modulation are allocated to land
                       managers under Pillar II in order that they implement specific measures aimed
                       at improving the competitiveness of Scottish agriculture, environmental
                       outcomes and strengthening rural communities. Thus modulation funds
                       allocated to Pillar II will deliver additional benefits over and above those
                       delivered by GAEC and cross-compliance under Pillar I.

                       Without modulation, the Scottish Government would need to allocate to Pillar
                       II additional DEL resources equivalent to the amount raised from modulation
                       or else the level of benefits delivered by Pillar II will have to reduce.

                       Voluntary modulation demonstrates efficiency savings in that it allows delivery
                       of additional environmental and other welfare benefits under Pillar II while at
                       the same time benefits from GAEC and cross-compliance under Pillar I are
                       maintained. To secure the same level of benefits under Pillar II additional
                       DEL resources would be required. However, voluntary modulation frees such
                       DEL resources in order that they can be allocated elsewhere to deliver further
                       public benefits.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Transfer of a proportion of funds under Pillar I of CAP to Pillar II focusing on
                       rural development, and implementation of the Scottish Rural Development
                       Programme (SRDP).




                                                                                                    125
DG Environment


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     There are no development or redundancy costs associated with the delivery of
                     this efficiency.

9. Measurement       9.1       What are the inputs that will be measured?
                     Amount of funds going to support rural development measures in the SRDP.

                     9.2       What are the outputs that will be measured?
                     A set of output indicators has been identified for the various measures in the
                     SRDP and these measure activities that will be directly realised from the
                     programme (see Chapter 12 of SRDP 2007-13 for specific details)

                     9.3       What is the baseline for inputs and outputs?
                     Baselines for inputs and outputs for the individual measures are set out in the
                     SRDP document (see Chapter 12 of SRDP 2007-13 for specific details)

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     A set of impact indicators has been identified for the various measures in the
                     SRDP and these measure the benefits of the programme beyond the
                     immediate effects on its direct beneficiaries. (See Chapter 12 of SRDP 2007-
                     12 for specific details).

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Arrangements for monitoring and evaluation will follow the provisions of
                     Articles 77 and 78 of Council Regulation (EC) No 1698/2005 and will utilise
                     the European Commission’s Common Monitoring and Evaluation Framework
                     (CMEF). Progress will be assessed against the EU-wide common set of
                     indicators in the CMEF, including those relating to the baseline situation as
                     well as to inputs, outputs, results and impacts of the Programme.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Output and result indicators will be reported annually for the SRDP 2007-13.
                     Impact indicators will be reported at the mid-term and ex-post evaluation
                     stages. Independent evaluators will estimate and quantify the impact.
                     The annual progress report will include:
                     • a table including the financial implementation of the programme giving, for
                        each measure, a statement of the expenditure paid to beneficiaries during
                        the calendar year

                     •     the monitoring tables which will include quantitative information based on
                           the common output and result indicators. and

                     •     a summary of the on-going evaluation activities




   126
                                                                           DG Environment


13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Efficiencies depend on Council Regulation (EC) 1782/2003 and Council
                   Regulation (EC) No 1698/2005 which respectively govern the implementation
                   of the Single Farm Payment Scheme and the Rural Development Programme.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to the Rural Development Programme. This freed up resources
                   for Ministers to allocate to their priorities.




                                                                                        127
DG Environment


1. Portfolio/Number/Name: DG Environment / 9 / SEPA
2. Programme/Activity:
   •   Research , Analysis and other Services
   •   Other efficiencies from reviews, restructuring and other efficiency activities

The majority of SEPA’s efficiencies were planned during 2007/08 to be realised in 2008/09 since
SEPA was aware that these levels of efficiencies would be required to meet the costs of SEPA’s new
Pay Scheme and Job Evaluation Scheme.

3. Efficiency                                            2008-09           2009-10        2010-11
                3.1 Target; £m
                                          Cash             0.727             1.455          2.182
                                                         2008-09           2009-10        2010-11
                3.2 Efficiencies
                                          Cash             0.928              -              -
                   delivered; £m
                                          Time         -                      -              -
4. Accountable Officer for delivery              Paul Gray
5. Project Manager                               John Ford/Jennifer Welsh
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be      Cash releasing savings from four main areas:
taken                  • Reducing the resources required for carrying out certain functions in
                               SEPA and integrating new duties within current staffing. Staff are
                               therefore not recruited to carry out new and additional duties. This
                               efficiency comes from doing the same with less and freeing up
                               resources for other activities.
                           •   Redesign of the way in which SEPA carries out its recruitment
                               activities. Recruitment will be more targeted through SEPA’s website
                               with only ‘notice board’ type adverts in the national press pointing
                               potential applicants to SEPA’s website. Not only will this save on
                               advertising costs, it is also more efficient in that all the information
                               required by applicants can be provided electronically from a single
                               source (e.g. structures, corporate plans etc)
                           •   Better use of SEPA’s assets. The redesign of SEPA’s office at
                               Whitefriars has enabled the construction of a training suite which will
                               serve all SEPA’s central area buildings and reduce the number of
                               more expensive external training facilities used
                           •   Carrying out an efficiency review which considered future options for
                               delivery of the WFD service and Finance services in SEPA. For
                               WFD, this identified a number of operational areas where efficiencies
                               could be gained by doing the same with less resource. In Finance a
                               restructuring will take place from 1 April 2008/09 which, again, will
                               generate efficiencies
                           •   Procurement Savings. SEPA has migrated its wide area network to
                               the new Police National Network Contract which will generate savings
                               for SEPA. In addition, it is anticipated that other procurement savings
                               will be realised.
                           •   Other efficiencies are anticipated from new system, e.g. Agresso
                               (Finance) and other service reviews
                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       These actions are already underway and the savings identified will be
                       removed from base budget figures.



   128
                                                                                  DG Environment


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     There are no additional redundancy or development costs associated with
                     these activities.

9. Measurement       9.1       What are the inputs that will be measured?
                           •   Expenditure on training venues
                           •   Expenditure on advertising
                           •   Expenditure on staff
                           •   Expenditure on support services, in particular Finance Services
                           •   Expenditure on wider area network
                           •   Expenditure on capital and other tenders

                     9.2       What are the outputs that will be measured?
                           •   Output measured: Reduced expenditure on new duties staff.
                               Performance reporting of activities
                           •   Output measured: Quality and number of applicants for recruited
                               posts. Reduced recruitment advertising costs
                           •   Output measured: Reduced costs for delivery of training and
                               development. Satisfaction measures from attendees
                           •   Output measured: Reduced expenditure on WFD activities.
                               Performance reporting of activities
                           •   Output measured: Quality, accuracy and timeliness of Finance
                               services. Reduced costs of Finance services
                           •   Output measured: Quality and reliability of wide area network.
                               Reduced cost of wide area network
                           •   Output measured: Capital and other tenders provide goods and
                               services to quality and standard required. Reduced cost of tenders

                     9.3       What is the baseline for inputs and outputs?
                     2007/08 inputs and outputs

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Adherence to service level agreements, performance reporting, staff
                     feedback, applicant research and feedback

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Management performance reporting against target is the main monitoring tool
                     with the baseline being the individual planned efficiency gains expressed as
                     cash equivalents. Where relevant, budget data, applicant numbers, activity
                     data and quality audits will be used to monitor the efficiencies
12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Performance will be monitored through the production of individual delivery
                     plans which will be reported to the Director of Finance monthly. These plans
                     and the achievement of the plans will then be audited quarterly.
                     Responsibility for delivery rests with individual Directors and overall with
                     SEPA’s Corporate Management Team who will receive quarterly monitoring
                     reports from the Directors of Finance.




                                                                                                 129
DG Environment


13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Efficiency savings will be directed towards SEPA’s frontline operational
                   services




   130
                                                                    DG Environment



      1. Director General/Number/Name: DG Environment / 10 /
                    Scottish Fisheries Protection Agency

This project has now been incorporated into project DG Environment / 20 / Marine
                     Scotland. See page 142 for full details.




      1. Director General/Number/Name: DG Environment / 11 /
                               Other Agriculture

    Moved to list of efficiency projects with expected savings less than £0.5m
                            see page 229 for information.




      1. Director General/Number/Name: DG Environment / 12 /
                         Fisheries Research Services

This project has now been incorporated into project DG Environment / 20 / Marine
                     Scotland. See page 142 for full details.




      1. Director General/Number/Name: DG Environment / 13 /
                  Scottish Sustainable Development Forum

    Moved to list of efficiency projects with expected savings less than £0.5m
                            see page 229 for information.




                                                                                 131
DG Environment


1. Portfolio/Number/Name: DG Environment / 14 / Withdrawal of funding from the Hannah
                                   Research Institute (HRI) at the end of 2005-06.
2. Programme/Activity:
Research , Analysis and other Services

3. Efficiency                                           2008-09          2009-10          2010-11
                3.1 Target; £m
                                          Cash             0.0              1.7             1.7
                                                        2008-09          2009-10          2010-11
                3.2 Efficiencies
                                          Cash             -                -                -
                 delivered; £m
                                          Time             -                -                -
4. Accountable Officer for delivery           Paul Gray
5. Project Manager                            Norman Harvey
6. EGDD Portfolio Manager                     Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   In 2005-06 SG withdrew research funding of £2.4m p.a. from HRI because
taken
                      HRI had failed to respond to the recommendations of 2 major peer reviews
                      and its research outputs were no longer relevant. During a 3-year transition
                      which ends in 2008-09, under which 2 Universities are receiving funding of
                      £1.7m p.a. to maintain parts of HRI research, the original funding is becoming
                      free for reinvestment and that is the measure of the efficiency saving.
                      As a consequence of withdrawing funding from HRI the SG has not suffered
                      any loss of usable outputs across its research programmes, and at the
                      conclusion of the transition period the entirety of the funding released will be
                      available for reinvestment.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      None – these have been taken already.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Yes.
                      SG is funding the redundancy costs of HRI staff including annual
                      compensation payment in lieu of pensions. This amounts to £5.6m in total of
                      which £4.2m will have been paid by the end of 2007-08. However, this project
                      was not pursued on efficiency grounds and the costs associated with the
                      efficiency have not been netted off.

9. Measurement        9.1     What are the inputs that will be measured?
                      Financial inputs.

                      9.2     What are the outputs that will be measured?
                      Research outputs.

                      9.3     What is the baseline for inputs and outputs?
                      Inputs: £2.4m is in the 2007-08 baseline; Outputs: see 9.2 above.




   132
                                                                                   DG Environment


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Normal QA processes, including peer review, will be applied

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Research activity is assessed though peer review.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     This will be done within Rural and Environment Research and Analysis
                     Directorate.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency will free resources for allocation to the Portfolio’s scientific
                     research priorities.




                                                                                                133
DG Environment


1. Portfolio/Number/Name: DG Environment / 15 / Rowett Research Institute (RRI) merger with
                                   the University of Aberdeen (UoA).
2. Programme/Activity:
Research , Analysis and other Services

Within the RAE portfolio, Rural and Environment Research and Analysis Directorate (RERAD)
commissions research from RRI under a 5-year programme (2006-07 to 2010-11) at resources cost of
£11.9m p.a. comprising £9.9m cash and £2.0m non-cash for capital charges.

3. Efficiency                                           2008-09         2009-10          2010-11
                3.1 Target; £m
                                          Cash             2.0             2.0              2.0
                                                        2008-09         2009-10          2010-11
                3.2 Efficiencies
                                          Cash             2.0             -                -
                 delivered; £m
                                          Time      -                      -                -
4. Accountable Officer for delivery           Paul Gray
5. Project Manager                            Norman Harvey
6. EGDD Portfolio Manager                     Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   RRI is planning to merge with UoA early in 2008-09 to achieve scientific
taken
                      research synergies. Under the merger RRI would become a wholly-owned
                      subsidiary of UoA and form a new Institute of Nutrition and Health. It would
                      undertake research aimed at predicting diet-related disease susceptibility and
                      providing evidence-based strategies for disease prevention.             As a
                      consequence of the merger RRI will be reclassified from “public sector” to
                      “private sector”. As such the cost of commissioning research from RRI will fall
                      outside the RAB boundary and RERAD will no longer have to make financial
                      provision for non-cash capital charges. This will release provision for cash
                      expenditure. The outputs from the research programme will be unaffected.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      To facilitate the merger by providing non-recurring financial support, including
                      for capital investment.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      RERAD is likely to provide non-recurring financial support, including for
                      financial support to help bring about the merger. However, the efficiency
                      described at 7.1 above is a by-product of the merger.

9. Measurement        9.1     What are the inputs that will be measured?
                      Financial inputs.

                      9.2     What are the outputs that will be measured?
                      Research outputs will be assessed mid-programme and at the end of the 5
                      years. The outputs will be the same irrespective of whether the merger goes
                      ahead.




   134
                                                                                   DG Environment


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     Inputs: £11.9m is in the 2007-08 baseline; Outputs: see 9.2 above.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Normal QA processes, including peer review, will be applied

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Finance Directorate has confirmed that the non-cash DEL provision released
                     can be reallocated as cash provision

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     This will be done within RERAD.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency will free resources for allocation to the Portfolio’s scientific
                     research priorities.




                                                                                                135
DG Environment



         1. Director General/Number/Name: DG Environment / 16 /
                         Contract Research Fund (CRF)

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   136
                                                                                   DG Environment


1. Portfolio/Number/Name: DG Environment / 17 / Forestry Commission Scotland
2. Programme/Activity:
Forestry Commission Scotland controls a large forest estate on behalf of Scottish Ministers. Since
the estate has been brought together in a piecemeal approach since 1919 there are bound to be
some areas that are not delivering as highly on the Scottish Government objectives as others. An
exercise has been undertaken to analyse every woodland on the estate and score them against
meeting SG objectives. We are now planning to sell those assets delivering least against the SG
objectives and reinvest the income on buying land and planting with trees that better meet Scotland’s
needs. Although our plan is to sell around £15 million p.a., this will depend on market conditions and
also our ability to purchase and plant appropriate land using these released funds.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                            Cash           10               10               10
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                            Cash          11.9              -                -
                    delivered; £m
                                            Time            -               -                -
4. Accountable Officer for delivery            Paul Gray
5. Project Manage                              Paul Snaith
6. EGDD Portfolio Manager                      Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
taken              The improvement relies on analysis of the whole forest estate to identify those
                       areas least able to deliver the SG objectives.      Successfully selling those
                       assets will create the efficiency.


                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Produce list of areas for sale, work up details, identify any encumbrances,
                       market and sell assets.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       No

9. Measurement         9.1     What are the inputs that will be measured?

                       None

                       9.2     What are the outputs that will be measured?

                       Value of land sold

                       9.3     What is the baseline for inputs and outputs?

                       Zero

10. Quality cross-     10.1    What quality indicators are being used to ensure that quality of
check                          service is maintained or improved?
                       Not applicable




                                                                                                  137
DG Environment


11. Monitoring     11.1    What are the arrangements for monitoring the delivery of
                           efficiencies?
                   Monthly report from Forest Enterprise, our delivery Agency.


12. Reporting      12.1    What are the arrangements for reporting the delivery of
                           efficiencies?
                   Business Monitoring System and Annual Report and Accounts.

13. Dependencies   13.1    Explain if your efficiencies are dependent on legislation or other
                           structural changes being achieved.
                   None

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Resources will be used to purchase areas of land and plant with trees to
                   better meet SG objectives and programmes, such as Climate Change.




   138
                                                                DG Environment




      1. Directorate/Number/Name: DG Environment / 18 /
                 Animal Health and Welfare publicity

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             139
DG Environment


1. Portfolio/Number/Name: DG Environment / 19 / Royal Botanic Garden Edinburgh (RBGE).
2. Programme/Activity:
Research, Analysis and Other Services. RBGE is working to meet Ministers’ targets for Efficient
Government. It will aim to achieve them primarily by securing co-funding for research projects,
maintenance and utilities savings, and more efficient use of manpower.

3. Efficiency                                         2008-09         2009-10           2010-11
                3.1 Target; £m
                                       Cash            0.238            0.476            0.714
                                                      2008-09         2009-10           2010-11
                3.2 Efficiencies
                                       Cash            1.393             -                 -
                 delivered; £m
                                       Time               -              -                 -
4. Accountable Officer for delivery           Paul Gray
5. Project Manager                            Ian McWilliam
6. EGDD Portfolio Manager                     Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Co-Funding: RBGE will secure co-funding from other research funders
taken
                     towards the cost of its projects thereby releasing SG grant-in–aid for
                     deployment on additional activity.

                     Maintenance and utilities: improved working practices.

                     Manpower: staff timed deployed more cost effectively.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Co-Funding: RBGE needs to ensure that it obtains co-funding from other
                     funders and makes improvements to manpower, maintenance and utilities
                     practices.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No.

9. Measurement       9.1     What are the inputs that will be measured?
                     Co-Funding: the amount of co-funding secured in each year.

                     Maintenance and utilities: expenditure.

                     Manpower: expenditure.

                     9.2     What are the outputs that will be measured?
                     Co-Funding: Research outputs will be assessed throughout the lifetime of the
                     research projects but given the qualitative nature of the outputs RBGE will use
                     the financial value of the co-funding as proxy measure of the cash-releasing
                     efficiency gain.

                     Maintenance and utilities: number of reactive repairs and energy consumption.

                     Manpower: man hours deployed.




   140
                                                                               DG Environment


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     Co-Funding: The baseline will be the amount of gross expenditure planned for
                     new research projects.

                     Maintenance and utilities: 2007-08 data.

                     Manpower: 2007-08 data.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Co-Funding: The quality should not be affected because RBGE will receive
                     the requisite amount of grant but it will come from more than one source.

                     Maintenance and utilities: 2007-08 service level.

                     Manpower: 2007-08 service level.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     RBGE management process for each project.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     RBGE management process for each project.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     These efficiencies were assumed as part of the allocation made by the
                     Scottish Government to RBGE. This freed resources for Ministers to allocate
                     to their priorities.




                                                                                            141
DG Environment


1. Portfolio/Number/Name: DG Environment/20 / Marine Scotland
2. Programme/Activity:
Marine Scotland is the lead marine management organisation in Scotland. It was established on April
1 2009 as a Directorate of the Scottish Government (SG), to integrate core marine functions involving
scientific research, compliance monitoring, policy and management of Scotland's seas. Marine
Scotland combines the functions and resources of the former SG Marine Directorate, Fisheries
Research Services and the Scottish Fisheries Protection Agency.

Previously both SFPA and FRS had published their own 3 year Efficiency Delivery Plans for the
period 2008/09 to 2010/11. Given the establishment of Marine Scotland these plans have now been
merged into one single Efficiency Delivery plan for Marine Scotland.

3. Efficiency                                           2008-09          2009-10         2010-11
                                                         3.159            2.172           3.258
                 3.1 Target; £m
                                         Cash         (SFPA 2.61)     (SFPA 0.994)    (SFPA 1.491)
                                                      (FRS 0.549)      (FRS 1.178)     (FRS 1.767)
                                                        2008-09          2009-10         2010-11
                 3.2 Efficiencies                                           -               -
                                         Cash            3.653
                 delivered; £m
                                         Time              -                -               -
4. Accountable Officer for delivery                  Mike Neilson
5. Project Manager                                   Willie Cowan/Iain Jeynes
6. EGDD Portfolio Manager                            Shona MacPherson
7. Description of 7.1 What is the efficiency         improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Former SFPA savings
taken
                       (1) SFPA will receive into service in 2008-09 a new purpose built fisheries
                       protection vessel and de-commission one of the current fleet. Sales of surplus
                       assets count as efficiency savings and cash receipts of £1m are expected in
                       08-09.

                       (2) SFPA has reviewed its coastal operations which has formed the basis of a
                       restructuring plan more geared to the changing nature of fisheries
                       enforcement activity and which the wider marine management environment.
                       Cash savings of £0.4/0.6/0.6 are expected.

                       (3) SFPA will receive into service in 2008-09 two new aircraft and the 2
                       existing aircraft will be de-commissioned and sold. One off cash receipts of
                       circa. £1m are expected in 08-09.

                       (4) In addition, SFPA has negotiated a reduced maintenance charge and
                       enhanced maintenance procedures for the new aircraft and will adopt a more
                       target-based approach in its surveillance operations allowing it to reduce the
                       number of hours flown but maintain operational effectiveness. Cash savings
                       of £0.21/0.23/0.23 are expected.

                       Former FRS savings
                       (5) Disposal of FRV Clupea which is being replaced. One-off asset sale of
                       £0.1m in 2008/09
                       (6) Various Business Improvement processes including reduction in cost of
                       communications, energy, training, chartering vessels, supplier contracts,
                       travel, IT hardware and improved stock policy. This will deliver recurring
                       savings of £0.449m / £0.913m / £1.277m over the 3 year period of the Plan




    142
                                                                                   DG Environment


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      (1) and (3) and (5) The plan is dependant on a number of one-off asset sales
                      in year 1 of the Plan.
                      (2) There are a number of work streams currently underway to re-design job
                      roles / profiles as a result of the move to Marine Scotland.
                      (4) Savings gained via the revised aircraft maintenance procedures are
                      dependent on the new aircraft being successfully brought into service.
                      (6)Variety of improvement processes and improved procurement required to
                      reduce travel, energy bills etc

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      The staff re-structuring exercise is primarily borne from a requirement to re-
                      allocate resources to areas in which they will be more effective. An impact of
                      such an exercise will be to release efficiencies i.e. reduced staffing, changing
                      shift patterns. The revised staffing levels will occur in all but one instance
                      (early retirement) through natural wastage.

9. Measurement        9.1     What are the inputs that will be measured?
                      (1) and (3) The assets that have been assessed as being surplus to
                      operational requirements.
                      (2) Staffing levels and associated costs.
                      (4) The associated charge incurred for the operation of aircraft surveillance
                      activities.
                      (5) Value of vessel.
                      (6) Cost of training, travel, energy etc

                      9.2     What are the outputs that will be measured?
                      The cash receipts resulting from the successful sale of the fixed assets and
                      more generally cash released through business improvement activity to be
                      reallocated.

                      9.3     What is the baseline for inputs and outputs?
                      The baseline for the targets is the 2007/08 budget and the breakdown of
                      capital receipts.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      Overall achievement of Marine Scotland agreed targets and milestones.

11. Monitoring        11.1 What are the arrangements for monitoring the delivery of
                      efficiencies?
                      The delivery of the efficiencies will be monitored by Marine Scotland staff and
                      reported to the MS Management Board on a regular basis.

12. Reporting         12.1 What are the arrangements for reporting the delivery of
                      efficiencies?
                      The receipts emanating from the sale will be notified to the Directorate and
                      this and other efficiencies reported through the Portfolio Manager for the
                      Environment portfolio.


                                                                                                 143
DG Environment


13. Dependencies   13.1    Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.

                   N/A

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to the Scottish Fisheries Protection Agency and the Fisheries
                   Research Service, now Marine Scotland. This has freed up resources for
                   Ministers to allocate to their priorities.




   144
                                                                                           DG Health


1. Portfolio/Number/Name: DG Health / 1 / NHS 2% Efficiency Savings                              Revised
2. Programme/Activity:
A recurring 2% Efficiency Saving from NHSScotland. NHS Chief Executive Officers are committed to
deliver 2% cash releasing efficiency savings year on year. Local Development Plans will be
submitted by each NHS Board summarising the range of efficiency measures and the level of savings
expected from each initiative. A wide range of efficiency projects have been identified across
NHS Boards, including contracting, commissioning, estates and facilities, service redesign, workforce
arrangements, transport services, and local initiatives on prescribing/drugs and support services (over
and above national initiatives). Plans covering 2008-09 to 2010-11 are due by 31 March 2008.

3. Efficiency                                            2008-09         2009-10          2010-11
                 3.1 Target; £m
                                          Cash            154.5            313.9               515.15
                                                         2008-09         2009-10          2010-11
                 3.2 Efficiencies
                                          Cash            203.5             -                -
                  delivered; £m
                                          Time         -                    -                -
4. Accountable Officer for delivery              Dr Kevin Woods
5. Project Manager                               Robert Peterson
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   How the 2% efficiency saving is being made by each Board is very much a
taken
                       local decision. Detailed information on specific efficiency measures being
                       delivered will be received by the Health Directorates for each individual
                       NHS Board, and will clearly differentiate between recurrent gains and one-off
                       efficiency activity.
                       Savings have and will be made by improving productivity and use of existing
                       resources through reductions in cycle times, process times and better use of
                       existing capacity. Small scale redesign, for example at hospital ward level,
                       often as a result of good vacancy management arrangements, can result in
                       opportunistic efficiencies as a result of improved staff productivity and
                       improved methods of delivering services.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       NHSScotland Health Board Chief Executives and Directors of Finance have
                       given their full commitment to the process and the delivery of the savings.
                       The achievement of savings will be monitored using the financial monitoring
                       templates already in use.
                       NHS Boards will build agreed savings into their financial plans.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       It is unlikely that there will be any development or redundancy costs
                       associated with the savings generated.

9. Measurement         9.1      What are the inputs that will be measured?
                       The level of expenditure on a particular service will be measured, taking one
                       year with another. Budget savings will fall against Clinical/Non-Clinical
                       Service Costs. The expected efficiency benefits will be measured purely on a
                       financial basis. These savings will be detailed in financial returns made
                       throughout the monitoring period.



                                                                                                    145
DG Health


9. Measurement      9.2     What are the outputs that will be measured?
                    The level of activity will be measured, taking one year with another.

                    9.3     What is the baseline for inputs and outputs?

                    The level of expenditure and the level of activity in 2007/08 are the baselines.

10. Quality cross- 10.1 What quality indicators are being used to ensure that quality of
check              service is maintained or improved?
                    These savings will not impact on the quality of service provision and this will
                    be assured through established performance assessment arrangements.

11. Monitoring      11.1 What are the arrangements for monitoring the delivery of
                    efficiencies?
                    Efficiency savings are monitored as part of the current reporting/monitoring
                    information, i.e. on a monthly basis commencing month 3 of any given fiscal
                    year. This information is received from NHS Boards.

                    Lead responsibility for monitoring is Directors of Finance in conjunction with
                    Chief Executive Officers.

12. Reporting       12.1 What are the arrangements for reporting the delivery of
                    efficiencies?
                    Once received, the monitoring information is collated and forwarded to the
                    Health Directorate’s Management Board.

                    Financial information is used to measure progress.
                    Full Ministerial involvement will include these savings being part of the annual
                    review process of Performance Management.

                    Validation will be part of the normal financial monitoring process (including
                    meetings with key NHSScotland staff) and ultimately feeding into an audited
                    set of annual accounts.

                    Ministers will ultimately hold NHSScotland Health Boards and Special Health
                    Boards to account for the delivery of these savings.

13. Dependencies    13.1 Explain if your efficiencies are dependent on legislation or other
                    structural changes being achieved.
                    These savings are expected to be locally based initiatives and not dependant
                    on any legislative or structural influences.

14. Use of          14.1 How are the efficiencies released from improvement activity
efficiencies        being used to improve services?
                    The resources released are to be reinvested in NHS priorities. The objective
                    is to achieve more or better services for the same money. The process
                    encourages a culture of continuous improvement and re-examination of
                    services and service delivery.




   146
                                                                  DG Health



    1. Director General/Number/Name: DG Health / 2 /
                        NHS Procurement

This project has now been incorporated into project DG Health / 17 /
                  NHS Procurement and Logistics .
                    See page 168 for full details.




                                                                       147
DG Health


1. Portfolio/Number/Name: DG Health / 3 / NHS Shared Support Services (SSS) Programme
1. Programme/Activity:
The role of the programme is to create shared services for Finance and Payroll across NHSScotland.
The goal is to deliver economic and quality benefits releasing resources to frontline patient care and
enhancing financial management across the service.
In the next phase of this programme, Health Boards will focus on implementing a common finance
system and use this, and other technologies, to automate and streamline how transactions are
processed and to produce better information for managing the Service overall.
Health Boards are forming new alliances to deliver the changes on a co-ordinated national basis. The
outcomes of the current piloting process will be used to determine the final configuration of Shared
Support Services at national level.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash              1.5              2.6              2.8
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash             4.209             -                -
                  delivered; £m
                                         Time          -                    -                -
4. Accountable Officer for delivery             Dr Kevin Woods
5. Project Manager                              John Francis
6. EGDD Portfolio Manager                       Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency   and made?
actions to be The savings are primarily centred on a reduction in staff engaged in the
taken              provision of Financial and Payroll services within Health Boards. A common
                       version of a Finance System plus a reduced number of instances of the
                       System will also produce savings.
                       20 Boards have formed three Consortia with NHS Greater Glasgow & Clyde
                       and NHS Lothian remaining as stand-alone Boards to take forward the
                       changes in the next Phase.
                       At the current time, only savings for the Foundation and Pathfinder phases
                       have been estimated and are reflected in the Efficiency Delivery Plan (EDP).
                       Any further savings from moving to establish an NHS Shared Service or
                       extending the Consortium working described will not be known until mid-
                       2009/10. The EDP will be updated when this information is available.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       The change projects will be driven by the 5 Consortia/Stand-alone Boards as
                       per above. Supported by the national SSS Programme Team based in NHS
                       National Services Scotland, they will streamline processes in line with the
                       Business Process Redesign work carried out by the Programme in the
                       previous Phase. They will also implement the common version of the Finance
                       System.




    148
                                                                                          DG Health


8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     The purpose of the Shared Support Services programme is to deliver a range
                     of business objectives, for example, cost reduction, improving the quality of
                     information and the consistency of reporting throughout NHS Scotland.
                     Efficiency is not the sole objective, and therefore there are no development
                     costs to be netted off.

                     No redundancy costs are forecast as the reductions are expected to be made
                     through redeployment and vacancy management.

9. Measurement       9.1     What are the inputs that will be measured?
                     The support service costs, which are classified as Non-Clinical Service Costs
                     in NHS Boards, will be measured.

                     9.2     What are the outputs that will be measured?
                     Benchmarking exercises will be conducted to ensure the range of benefits
                     anticipated is being achieved in terms of quality and quantity expectations.

                     9.3     What is the baseline for inputs and outputs?
                     The baseline for inputs is the costs of those services in each NHS Board in
                     2007/08. Each Consortium/Stand-alone Board will produce full Project
                     documentation for their contribution to the overall Programme.
                     In respect of outputs, financial and productivity information will be utilised for
                     measuring performance.

10. Quality cross- 10      What quality indicators are being used to ensure that quality of
check              service is maintained or improved?
                     An extensive range of qualitative indicators have been developed and these
                     will feature in the local Project Plans and be monitored at the national level.
                     Examples of qualitative benefits include improved overall information, more
                     comparability through common coding and definitions, better ‘self-service’
                     access to decision-support information for managers. Increased automation
                     for the customers of the Finance/Payroll function. The new technology will
                     enable access to eCommerce ways of doing business.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     This will be subject to an active benefits realisation process initiated by the
                     national Programme team. NHSScotland Health Boards will provide the
                     information on the impact of the projects locally.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The Programme team will be responsible for information relating to savings
                     and quality improvements and submitting this to The Scottish Government
                     Health Department quarterly.




                                                                                                  149
DG Health


13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   The savings are dependent on significant structural changes within the NHS
                   finance community in terms of technology utilised, ways of working and a
                   reduction in staff numbers.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   The cash releasing efficiency savings will be retained by NHS Boards and
                   used for reinvestment in frontline services.




   150
                                                                  DG Health



    1. Director General/Number/Name: DG Health / 4 /
                          NHS Logistics

This project has now been incorporated into project DG Health / 17 /
                  NHS Procurement and Logistics .
                    See page 168 for full details.




                                                                       151
DG Health


1. Portfolio/Number/Name: DG Health / 5 / Improved Prescribing in Primary Care
2. Programme/Activity:
This programme covers the savings which are anticipated from more effective demand management
for drugs and other prescribed items used in Primary Care.

3. Efficiency                                            2008-09        2009-10          2010-11
                3.1 Target; £m
                                        Cash               5.0             5.0              5.0
                                                         2008-09        2009-10          2010-11
                3.2 Efficiencies
                                        Cash             16.146            -                -
                   delivered; £m
                                        Time                -              -                -
4. Accountable Officer for delivery             Dr Kevin Woods
5. Project Manager                              Stephen Tither
6. EGDD Portfolio Manager                       Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The target is to reduce the overall cost to NHS Scotland of supply of items
taken
                     prescribed and dispensed in Primary Care, measured in constant volume
                     terms.
                     Categories of prescribed items will be reviewed and appropriate evidence
                     based measures implemented to effect more effective behaviour by Primary
                     Care prescribing of drugs and other items.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Co-ordination of appropriate strategies to be executed by NHS Boards.
                     Collection of relevant data.
                     Monitoring of effect of action taken on related programmes.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No

9. Measurement       9.1     What are the inputs that will be measured?
                     Volume and cost of drugs and other prescribed items.

                     9.2     What are the outputs that will be measured?
                     As above.

                     9.3     What is the baseline for inputs and outputs?
                     It is planned to track savings as

                     1. those due to price cuts at constant volume : Actual price per item at Q1
                     2008-9 (and each subsequent quarter) less the mean price paid on that item
                     during 2007-8, plus,

                     2. a quantity effect calculated as a factor of 1. above with the factor being the
                     percentage growth on the line in question by comparison with the mean
                     2007-8 turnover for the equivalent quarter.




   152
                                                                                          DG Health


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Prescribing behaviour by Primary Care prescribers is guideline based to
                     ensure that quantity increases deliver better outputs in terms of therapeutic
                     benefit. Thus volume growth is restrained and proportional to therapeutic
                     benefit policed by existing prescribing advisory functions in NHS Boards
                     supported by data provided by NSS Information and Statistics Division.
                     NHS Boards and Community Health Partnerships (CHPs) have a remit to
                     minimise costs to free up resources for service delivery.
                     Prescribers have a professional responsibility to prescribe to address
                     identified clinical need.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monitoring arrangements will be established using prescribing cost data
                     collected by NHS NSS Information and Statistics Division (ISD) as a by
                     product of prescription processing for contractor payment.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     A strategy will be established in conjunction with NHS Boards and NHS NSS
                     ISD. Due to time lags in processing prescription data there will be a time lag of
                     4-6 months in monitoring progress.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     None identified at this time.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The savings released will accrue directly to NHS Boards through reductions in
                     expenditure against their Unified Budget allowing redeployment into other
                     services.




                                                                                                 153
DG Health


1. Portfolio/Number/Name: DG Health / 6 / Drug Purchasing                                   Revised
2. Programme/Activity:
This programme covers the savings which are anticipated from more effective supply side
arrangements in the provision of drugs and other prescribed items used in Primary Care.

3. Efficiency                                         2008-09          2009-10          2010-11
                3.1 Target; £m
                                       Cash             20.0             30.0              40.0
                                                      2008-09          2009-10          2010-11
                3.2 Efficiencies
                                       Cash             32.58             -                -
                   delivered; £m
                                       Time               -               -                -
4. Accountable Officer for delivery              Dr Kevin Woods
5. Project Manager                               Stephen Tither
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of  7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The target is to reduce the overall cost to NHS Scotland of items prescribed
taken
                     and dispensed in Primary Care, measured in constant volume terms.
                     Categories of prescribed items will be reviewed and appropriate evidence
                     based measures implemented to effect more efficient drug, and other
                     prescribed item, reimbursement arrangements.
                     This will form part of a continuing programme related in particular at
                     reimbursement pricing mainly but not solely Drug Tariff Part 7 items ( so called
                     generic drugs). As the latest stage of this programme, overall price reductions
                     were brought in for October 2007 and supply chain profit levels will continue to
                     be carefully managed during 2008-9 to deliver realistic recurring savings.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Establishment of appropriate strategy.
                     Collection of relevant data.
                     Consultation with interested parties as necessary.
                     Monitoring of effect of action taken on related programmes.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No

9. Measurement       9.1     What are the inputs that will be measured?
                     Volume and cost of drugs and other prescribed items.

                     9.2     What are the outputs that will be measured?
                     As above.




   154
                                                                                          DG Health


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     It is planned to track savings as
                     1. those due to price cuts at constant volume : Actual price per item at Q1
                     2008-9 (and each subsequent quarter) less the mean price paid on that item
                     during 2007-8, plus,
                     2. a quantity effect calculated as a factor of 1. above with the factor being the
                     percentage growth on the line in question by comparison with the mean 2007-
                     8 turnover for the equivalent quarter.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Prescribing behaviour by Primary Care prescribers is guideline based to
                     ensure that quantity increases deliver better outputs in terms of therapeutic
                     benefit. Thus volume growth is restrained and proportional to therapeutic
                     benefit policed by existing prescribing advisory functions in NHS Boards
                     supported by data provided by NSS Information and Statistics Division (ISD).

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monitoring arrangements will be established using prescribing cost data
                     collected by NHS NSS ISD as a by product of prescription processing for
                     contractor payment.
                     Generic drugs are in the main manufactured outside the United Kingdom and
                     there is a foreign currency risk. There are also risks of other market pressures
                     that could result in aggregate price increases. These risks are currently
                     assessed as being low. There is therefore an ongoing process to monitor
                     changes in market prices which might impact on these savings targets.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     To be established with NHS NSS ISD. Due to time lags in processing
                     prescription data. There will be a time lag of 4-6 months in monitoring
                     progress.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     None identified at this time.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The full impact of the savings have been incorporated into the Spending
                     Review settlement for 2008-11, and are being ‘top sliced’ from NHS Boards.
                     However, this same funding is being given back to the Boards to fund the
                     Abolition of Prescription Charges.




                                                                                                 155
DG Health


1. Portfolio/Number/Name: DG Health / 7 / Care Commission
2. Programme/Activity:
Scottish Commission for the Regulation of Care (Care Commission) – statutory independent regulator
of care services in Scotland, with the key aim of furthering improvement in the quality of care services.

3. Efficiency                                             2008-09          2009-10          2010-11
                  3.1 Target; £m
                                           Cash             0.54*            0.83*            1.12*
                                                          2008-09          2009-10          2010-11
                  3.2 Efficiencies
                                           Cash             0.75              -                -
                     delivered; £m
                                           Time               -               -                -
The outcome of SR07 allows for a cash increase of 1.5% in the Commission’s gross budget in 2008-
09 over 2007-08 and again in both subsequent years (assuming that Care Commission fees remain
frozen at present levels). That effectively delivers a 1% efficiency saving in year 1, with further
cumulative 1% savings in years 2 and 3. Further efficiencies on top of that would be required by
either a cash freeze at the Care Commission’s current gross budget over the period or, less radically,
any cash increase less than that secured in SR07.

*This saving represents the 1% (£0.29m) cumulative efficiency described above and allows for a
further saving of £0.25m (around a further 0.8%) in each year. This further saving would allow the
Commission and Ministers some limited flexibility to fund any development work (e.g. the extension of
the Commission’s lay assessors programme).

4. Accountable Officer for delivery            Dr Kevin Woods
5. Project Manager                             Sandra Lafferty
6. EGDD Portfolio Manager                      Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The Care Commission will be expected to deliver the same level of business
taken
                        (primarily, to meet it statutory regulatory targets, including registrations,
                        inspections, enforcements and investigating complaints) within the efficiencies
                        in its gross budget of the order set out above.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        The outcome of SR07 allows a cash increase of 1.5% in the Commission’s
                        gross budget each year over the review period, effectively delivering a
                        cumulative 1% efficiency saving each year. We would build the further
                        efficiencies (£250k) into our budget negotiations with the Care Commission.
                        We monitor monthly the Commission’s expenditure against budget; and
                        monitor quarterly progress against Key Performance Indicators (KPIs) in its
                        Corporate Plan.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No




    156
                                                                                         DG Health


9. Measurement       9.1     What are the inputs that will be measured?
                     Expenditure against budget.

                     9.2     What are the outputs that will be measured?
                     KPIs (those for 2008-09 are still to be agreed as part of the discussions on the
                     Commission’s Corporate Plan for 2008-2011.

                     9.3     What is the baseline for inputs and outputs?
                     Baseline for inputs is 2007-08 gross budget. Baseline for output is current
                     levels of output, as measured by KPIs.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     A range of KPIs is agreed as part of the Care Commission’s Corporate Plan,
                     which is approved by Ministers (see 9.2 above). These include some quality
                     measures.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     See 7.2 above

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     We will report progress quarterly to Health Finance Directorate, including
                     copies of the Commission’s most recent finance report and quarterly
                     performance report.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The allocation made by the Scottish Government to the Care Commission,
                     plus the Commission’s fee income, involved a cumulative 1%
                     (£0.29m/£0.58m/£0.87m) cash-releasing efficiency saving over the Spending
                     Review period. This freed up resources for Ministers to allocate to other
                     priorities.

                     The further efficiency of £0.25m per annum would be freed up to allocate to
                     new priorities, either within the Care Commission or elsewhere.




                                                                                                157
DG Health


1. Portfolio/Number/Name: DG Health / 8 / Countering NHS Fraud
2. Programme/Activity:
Countering fraud within and against the NHS in Scotland.

3. Efficiency                                              2008-09         2009-10           2010-11
                   3.1 Target; £m
                                           Cash              1.0              1.0               1.0
                                                           2008-09         2009-10           2010-11
                  3.2 Efficiencies
                                           Cash              5.53             -                 -
                    delivered; £m
                                           Time                -              -                 -
4. Accountable Officer for delivery                     Dr Kevin Woods
5. Project Manager                                      Senga Robertson
6. EGDD Portfolio Manager                               Shona MacPherson
7. Description of    7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and       made?
actions to be taken
                         Reducing fraud against the NHS in Scotland.

                         Savings to be made through a mixture of actual recoveries and deterrence
                         i.e. money which has not been paid out to staff, patients and contractors in
                         false claims and can therefore be used for frontline patient care.

                         7.2 What are the main actions that are needed to secure the delivery of
                         this efficiency improvement?
                         The full commitment of Ministers and senior officials within SGHD so that
                         policies are fraud proofed at design stage.

                         Changing the culture by education, publicity and training in respect of fraud
                         against the NHS so that it is not condoned but becomes unacceptable – this
                         is the responsibility of SGHD and NHSScotland Counter Fraud Services
                         (CFS) in conjunction with the fraud liaison officers and NHS counter fraud
                         champions of NHS bodies.

                         Proactive campaigns of deterrence, prevention, detection and investigation
                         carried out by the CFS, in conjunction with NHS bodies.

                         The full involvement and commitment of NHS Chief Executives to working in
                         partnership with the CFS, referring all relevant cases to the CFS for
                         investigation, taking all appropriate actions (prosecution, discipline and civil
                         recoveries) in cases where prima facie fraud has been identified by the CFS
                         and reporting the all fraud and potential fraud to SGHD to assess the scale
                         and nature of NHS fraud.

8. Associated costs      8.1     Are there any development or redundancy costs associated with
                         the delivery of this efficiency?
                         No.

9. Measurement           9.1     What are the inputs that will be measured?
                         Total recurrent operational costs of the CFS.

                         9.2     What are the outputs that will be measured?
                         Actual recoveries and monies not expended due to deterrence.




    158
                                                                                        DG Health


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     In line with the guidance, the baseline is the 2007-2008 budget.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Countering fraud by its nature has a beneficial impact on quality by enabling
                     resources to be directed to legitimate patient care which would otherwise be
                     lost to fraud.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The CFS have an on-going programme of measuring and recording actual
                     recoveries and deterrent savings.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The reporting of savings is by quarterly and annual reports to NHS bodies
                     and SGHD.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or
                     other structural changes being achieved.
                     Countering fraud will be improved if SGHD build in fraud proofing as an
                     integral part of policy design.

                     One of the tasks of the CFS is to report to SGHD gaps or grey areas in
                     legislation and guidance which they have identified as allowing fraud or sharp
                     practice to take place with a view to amending these where possible. This is
                     a continuous exercise.

                     Efficiencies will only occur if NHS Bodies buy-in to countering fraud in the
                     way proposed by the CFS Partnership Agreement with them and the
                     International Standard on Auditing 240 “Fraud in an Audit of Financial
                     Statements”

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The savings released are primarily from deterrence i.e. fewer resources are
                     being diverted into the pockets of fraudsters and can therefore be used for
                     patient care.




                                                                                             159
DG Health


1. Portfolio/Number/Name: DG Health / 9 / eHealth Telecoms Broadband Contract
2. Programme/Activity:
The N3 Broadband contract provides high speed broadband services to NHS Scotland.
The project aims to deliver efficiencies through the negotiation of a Scottish specific high speed
broadband catalogue item. The new broadband connection is anticipated to double network speed
with unit costs around 40% lower.
As National Services Scotland (NSS) manages the N3 contract on our behalf they will be in control of
the delivery of the savings.

3. Efficiency                                           2008-09         2009-10           2010-11
                 3.1 Target; £m
                                         Cash              0.4             1.0               1.0
                                                        2008-09         2009-10           2010-11
                 3.2 Efficiencies
                                         Cash             0.55             -                 -
                    delivered; £m
                                         Time               -              -                 -
4. Accountable Officer for delivery              Dr Kevin Woods
5. Project Manager                               Lesly Donovan/Alice Finlayson
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiencies are made through negotiation of a Scotland specific catalogue
taken
                       item within the N3 contract. This allows for lower unit costs whilst delivering
                       improved services to community pharmacies and dentists. All gains in each of
                       the three years are one-off efficiencies.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       The catalogue items are to be established by NSS in negotiation with BT.
                       Existing pharmacy and dental broadband services are to be moved to the new
                       catalogue items. The existing deployment plan is to move the pharmacists to
                       the new broadband item in the 2008/09 period and the dentists in the 2009/10
                       period.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       There is a setup cost of £400K to establish the catalogue item for community
                       pharmacists. This will be absorbed in the 2008/09 period.
                       There is a further setup cost of £400K to establish the catalogue item for
                       community dentists. This will be absorbed in the 2009/10 period.
                       In line with the Efficiency Government guidance, all development costs will be
                       netted of the value of efficiencies claimed.

9. Measurement         9.1     What are the inputs that will be measured?
                       The number of dental practices and pharmacists using the new connection.

                       9.2     What are the outputs that will be measured?
                       Usage reports and performance reports.
                       These are already monitored by NSS in its management of the contract and
                       updates will be provided to The Scottish Government Health Directorate as
                       appropriate.



   160
                                                                                       DG Health


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     In 2007/08 there were 900 dental practices and 800 pharmacies connected to
                     the N3 network.
                     The 2007/08 cost of service is used to baseline the savings.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Existing N3 usage metrics and performance reports are to be used to ensure
                     the same level of service and availability are maintained. These will be
                     compared with the 2007/08 reports as a baseline.
                     NSS already monitors performance as part of the ongoing management of the
                     contract and will highlight any issues to The Scottish Government Health
                     Directorate as appropriate.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The savings are being gained through the reduction in the cost of services
                     provided, therefore the savings will be measured using existing financial
                     allocation processes.
                     Monitoring of the service levels will be on an ongoing basis by NSS in its
                     management of the contract.
                     Regular reports on the achievement of savings will be provided to The
                     Scottish Government Health Directorate.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Monitoring of the savings will be through the existing financial monitoring
                     process.
                     Regular reports will be provided to the Efficient Government Unit.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The savings will be retained by the portfolio and used to fund new projects to
                     improve delivery of services.




                                                                                              161
DG Health


1. Portfolio/Number/Name: DG Health / 10 / eHealth IT Services Contract
2. Programme/Activity:
The Atos Origin Alliance (AOA) IT services contract provides services that are utilised by NHS
Scotland. This includes payroll, Community and Preventative Care (CPC) screening systems, Scottish
Care Index (SCI) Store and the Emergency Care Summary (ECS)
The project aims to deliver efficiencies through the more efficient use of IT infrastructure within this
national contract. As National Services Scotland (NSS) manages the AOA contract on behalf of
NHSScotland, they will be in control of the delivery of the savings.

3. Efficiency                                            2008-09          2009-10          2010-11
                 3.1 Target; £m
                                          Cash              2.0              2.4              2.0
                                                         2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                          Cash             2.02              -                -
                    delivered; £m
                                          Time               -               -                -
4. Accountable Officer for delivery                Dr Kevin Woods
5. Project Manager                                 Lesly Donovan/Alice Finlayson
6. EGDD Portfolio Manager                          Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiencies, which will be delivered by one-off gains achieved in each of
taken              the three years, are made through the rationalisation of infrastructure and
                        more efficient processes to support the systems covered by the Atos Origin
                        Alliance contract.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        The contract was awarded in 2007/08 and achievement of the efficiencies has
                        been built into the contractual arrangement with Atos.
                        Active monitoring of these savings and the services provided under the
                        contract is required by NSS in its contract management role.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        There are no costs associated with delivering this efficiency.
                        Transition costs for moving to the new arrangement have been incurred in
                        2007/08.

9. Measurement          9.1     What are the inputs that will be measured?
                        Atos charges.

                        9.2     What are the outputs that will be measured?
                        Performance reports on Atos Origin Alliance service delivery.
                        NSS monitor these regularly as part of ongoing contract management and
                        updates will be provided to The Scottish Government Health Directorate as
                        appropriate.

                        9.3     What is the baseline for inputs and outputs?
                        2007/08 metrics and contractual service level agreements.
                        The 2007/08 cost of service is used to baseline the savings.




    162
                                                                                        DG Health


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Performance reporting on the AOA contract key performance indicators.
                     These will be compared with the 2007/08 reports to ensure no degradation of
                     service.
                     NSS already monitors performance as part of the ongoing management of the
                     contract and will highlight any issues to The Scottish Government Health
                     Directorate as appropriate.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The savings are being gained through the reduction in the cost of services
                     provided; therefore the savings will be measured using existing financial
                     allocation processes.
                     Monitoring of the service levels will be on an ongoing basis.
                     Regular reports on the achievement of savings will be provided to The
                     Scottish Government Health Directorate.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Monitoring of the savings will be through the existing financial monitoring
                     process. Regular reports will be provided to the Efficient Government Unit.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     No.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The savings are retained by the portfolio and will be used to fund new projects
                     to improve delivery of frontline services.




                                                                                               163
DG Health


1. Portfolio/Number/Name: DG Health / 11 / Food Standards Agency Scotland
2. Programme/Activity:
The Food Standards Agency is an independent Government department set-up by an Act of
Parliament in 2000 to protect the public’s health and consumer interests in relation to food.

3. Efficiency                                          2008-09          2009-10          2010-11
                3.1 Target; £m
                                        Cash              0.2              0.4              0.7
                                                       2008-09          2009-10          2010-11
                3.2 Efficiencies
                                        Cash            0.267              -                -
                   delivered; £m
                                        Time               -               -                -
4. Accountable Officer for delivery                 George Paterson, FSAS
5. Project Manager                                  Jim Thomson/Gary Mournian
6. EGDD Portfolio Manager                           Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiencies will be in 3 areas of the Agency’s budget:
taken
                           1. In the pay area £20,000 achieved by management of the recruitment
                              process and vacancies.
                           2. Non-pay running cost a savings of 10% (£140,000) covering the areas
                              of travel, use of Agency staff reduction in consultancy, better
                              management of facilities including printing and stationary and energy
                              costs, and savings achieved in fuel efficient vehicle use.
                           3. Programme budget saving of £52,000 by improved management of
                              projects, scientific research and general efficiencies across all
                              projects.

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     The budget is currently being finalised for future years and efficiencies will be
                     achieved by setting targets for individual Teams in the areas identified above.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     There are no redundancy costs associated with the delivery of these
                     efficiencies. There may be development costs associated with the upgrading
                     of videoconferencing facilities and other IT to achieve savings, particularly in
                     the travel area. Such costs, once identified, will be netted off the value of the
                     total efficiencies claimed.

9. Measurement       9.1      What are the inputs that will be measured?
                     The costs with respect to the items outlined in section 7.1 will be measured.

                     9.2      What are the outputs that will be measured?
                     Actual costs will be reviewed and comparison made with 2007/08 budget to
                     calculate achieved savings.

                     9.3      What is the baseline for inputs and outputs?
                     The baseline for the targets is the 2007/08 budget and the breakdown of
                     spending areas.




   164
                                                                                         DG Health


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The Senior Management Team, will on a quarterly basis, ensure that delivery
                     of the Food Standards Agency’s aims and objectives is maintained and any
                     targets identified do not affect delivery of frontline service.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The monitoring of the delivery of these efficiencies will be integrated into the
                     overall budget monitoring process and will become a reporting requirement for
                     individual Branch Heads and be included in the monthly monitoring and
                     quarterly reviews carried out by the Senior Management Team of FSA
                     Scotland.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The delivery of efficiencies will be reported through the portfolio manager for
                     the Health and Wellbeing portfolio.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     Efficiencies released as part of this programme will be used to improve
                     delivery of FSA aims and objectives in Scotland in the areas of food safety,
                     diet and health and consumer choice. This may include gathering evidence to
                     support policy decisions, monitoring of areas of concern, campaign support to
                     disseminate safety and dietary messages in the food area and support for
                     enforcement and delivery across Scotland.




                                                                                                165
DG Health


1. Portfolio/Number/Name: DG Health / 12 / Affordable Housing Investment Programme
2. Programme/Activity:
The Affordable Housing Investment Programme (AHIP) provides grant funding for affordable housing
(both for rent and for sale), principally through registered social landlords (RSLs) and private
developers. The grant provided through AHIP bridges the gap between the private borrowing secured
by RSLs, developers, or home owners and the actual costs.

3. Efficiency                                          2008-09         2009-10           2010-11
                3.1 Target; £m
                                        Cash              9.5             21.0             32.5
                                                       2008-09         2009-10           2010-11
                3.2 Efficiencies
                                        Cash            34.695            -                 -
                   delivered; £m
                                        Time           -                  -                 -
4. Accountable Officer for delivery            Stella Manzie
5. Project Manager                             Alistair Dickson/Kirsty Henderson
6. EGDD Portfolio Manager                      Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Savings will be made in AHIP by reducing the average amount of grant per
taken
                      approved unit of affordable housing. This will be achieved, in the first
                      instance, by revising the allowances and assumptions that are used to
                      calculate how much grant is payable to RSLs for affordable rented houses;
                      and, thereafter, by promoting competition amongst housing providers seeking
                      to secure grant.
                      The calculation will be as follows: Average grant per unit for the year 2007/08
                      minus Average grant per unit (per year for the period 2008/09 to 2010/11)
                      multiplied by the Number of Unit Approvals (per year for the period 2008/09 to
                      2010/11). This calculation will be undertaken every year in order to calculate
                      annual savings.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      We are consulting on short-term adjustments to the way that we pay subsidy
                      from AHIP. The adjustments will result in reduced subsidy levels with effect
                      from 1 April 2008. They are the first step in delivering these efficiency
                      improvements and will remain in force while we are developing longer-term
                      proposals for awarding subsidy competitively. Competition for subsidy is a
                      large project, which will be the subject of separate consultation before it is
                      introduced some time after April 2009.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      No

9. Measurement        9.1     What are the inputs that will be measured?
                      The average grant provided through AHIP per approved affordable housing
                      unit

                      9.2     What are the outputs that will be measured?
                      Number of new or improved affordable houses grant aided through AHIP




   166
                                                                                         DG Health


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     Average grant per unit for the year 2007/08.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     To ensure that the quality of housing funded through AHIP is maintained or
                     improved, information will be collated and monitored on
                         • space standards (as measured by total floor area)
                         • compliance with Housing for Varying Needs standards and
                         • energy efficiency
                         • Number of new or improved affordable houses grant aided through
                            AHIP over the period 2008-11

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The data that will be used to measure progress will be sourced from files on
                     the number of unit approvals that are made on an annual basis.
                     Arrangements for monitoring efficiencies in the period April 2009 onwards will
                     be developed as part of the competitive regime.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Investment Delivery Division within Housing and Regeneration (HAR) will
                     monitor progress towards the target on a quarterly basis and the data for each
                     year will be published in an Annual Statistical Report.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     The proposed savings depend – in the first instance - on the registered social
                     landlords (RSLs) that receive subsidy to develop new social housing being
                     willing to develop with lower levels of subsidy. In the longer term, they depend
                     on the RSL sector becoming more efficient in response to competition for
                     subsidy.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made at the 2007
                     Spending Review. This freed up resources for Ministers to allocate to their
                     priorities.




                                                                                                167
DG Health


1. Portfolio/Number/Name: DG Health / 17 / NHS Procurement and Logistics                          NEW
2. Programme/Activity:
National Procurement (NP) within NHS National Services Scotland delivers cash releasing efficiency
savings for NHSScotland by delivering national contracts and implementing best practice supply chain
management and securing the associated procurement benefit opportunities.

3. Efficiency                                           2008-09           2009-10          2010-11
                 3.1 Target; £m
                                         Cash              31.3             55.5              44.3
                                                        2008-09           2009-10          2010-11
                 3.2 Efficiencies
                                         Cash              31.7              -                -
                 delivered; £m
                                         Time         -                      -                -
4. Accountable Officer for delivery            Dr Kevin Woods
5. Project Manager                             Christine McLaughlin/Sandy Kinnear
6. EGDD Portfolio Manager                      Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   For procurement, savings will be made through the use of technology (e-
taken
                       procurement), purchasing through reverse electronic auctions, and the
                       number of national contracts negotiated.

                       For logistics, the savings will be derived from centralised purchasing delivering
                       better prices and NHSScotland taking more responsibility for distribution
                       through use of a National Distribution Centre (NDC). One-off gains from stock
                       reduction of £6.4m and £3.7m are included in 2008-09 and 2009-10
                       respectively.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       For procurement, the action required by NP is that the e-procurement
                       technology is rolled out to NHS boards; new national contracts are negotiated;
                       and that NHS board Chief Executives and Heads of Procurement ensure that
                       the contracts are used within their boards.

                       For logistics, all NHS boards need to be on-stream

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       There are no redundancy costs. Development costs are subsumed in the
                       operating costs of NP.

9. Measurement         9.1     What are the inputs that will be measured?
                       For procurement, the unit cost of the identified commodity lines will be
                       monitored (to ensure the planned reduction in cost is taking place).

                       For logistics, the revised cost of distribution will be compared to the cost of
                       distribution prior to the establishment of the NDC.




   168
                                                                                        DG Health


9. Measurement       9.2     What are the outputs that will be measured?
                     For procurement, the volume of purchases made (in those specific commodity
                     lines) will be recorded.

                     For logistics, distribution cost data including supplier savings and the local
                     costs of distribution in the board whose stock management systems have
                     been taken over by the NDC.
                     9.3     What is the baseline for inputs and outputs?
                     For procurement, the input and outputs for the identified commodity lines will
                     be compared with existing commodity expenditure 2007-08 baselines to
                     determine the level of savings delivered.

                     For logistics, the baseline is 2007-08 expenditure on distribution and 2007-08
                     volume transported.
10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The expectation is a positive impact on quality. All national contracts follow
                     NHSScotland’s procurement procedures which have been developed to
                     ensure that all procurement activities deliver best value to NHSScotland by
                     providing goods and services which are fit for purpose and quality is improved.
                     Through technology and centralised purchasing better prices will be delivered
                     and other benefits such as the reduction of inventory (and possible waste)
                     within hospitals. Better working practices will be developed and administrative
                     savings will be delivered through the reduction in the number of paper
                     documents (eg purchase orders, goods received notes, invoices, etc) that will
                     need to be processed.
11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monthly reporting of procurement and distribution cost data is prepared by NP
                     based upon returns from NHS Boards.
12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Responsibility for reporting to The Scottish Government lies with the Director
                     of NP. The Director completes routine monitoring forms at the request of The
                     Scottish Government
13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Savings are not dependant on legislation. Savings are dependent on the roll-
                     out of technology to NHS boards which has been taken into account in
                     calculating the savings, the identification of commodities and the development
                     of national contracts which is managed by a Commodities Panel and the
                     transfer of local stock management systems to the NDC which NHS board
                     Chief Executives are committed to doing.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     The cash releasing efficiency savings will be retained by NHS Boards and
                     used for reinvestment in frontline services.




                                                                                               169
DG Health




   170
                              DG Health




   The following are Health
Productivity Efficiency Delivery
             Plans




                                   171
DG Health


1. Portfolio/Number/Name: DG Health / 13 P / Reduction in Absence
2. Programme/Activity:
Reduction in staff sickness absence in accordance with the NHS HEAT target. At present this target is to
achieve a rate of 4% by 31st March 2009, but not an average or rolling average of 4% for the entire year
2008/9. Savings are entirely time-releasing but if sustained consistently will enable Boards to adjust
staffing levels and achieve efficiencies through for example a reduction in overtime, and lower use of bank
and agency staff.

The figures quoted below are not forecasts. They are an indicator of the maximum time release savings
that could be made by Health Boards if the target is met and sustained. They assume a uniform rate of
progress from current levels and an even distribution of absence across the workforce.

3. Efficiency                                           2008-09          2009-10            2010-11
                 3.1 Target; £m
                                          Time            62.25            62.25              62.25
                                                        2008-09          2009-10            2010-11
                 3.2 Efficiencies
                                          Cash             32.5             -                  -
                  delivered; £m
                                          Time               -               -                   -
4. Accountable Officer for delivery                   Dr Kevin Woods
5. Project Manager                                    John Davidson/Christine McGregor
6. EGDD Portfolio Manager                             Shona MacPherson




    172
                                                                                                       DG Health


7. Description of          7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and             made?
actions to be
taken                      People being paid to work will be at work, reducing the burden on staff and
                           providing the potential for more efficient deployment of staffing resources. This
                           does not lead directly to cash savings because pay bill costs remain the same, but
                           sustained reduction in absence rates will allow staffing establishments to be
                           adjusted downwards to accommodate less absence and for cash savings in the
                           use of bank and agency staff or overtime working. There is also a direct link to
                           improved quality of care and provision of services.

                           The baseline that was originally used for calculating the cash value of this time
                                                    2
                           releasing saving is 5.7% NHS Scotland wide. However, improved absence data
                           now collected by SWISS (Scottish Workforce Information System) suggests that
                           the baseline figure was probably exaggerated.

                           The time releasing savings are calculated by multiplying any improvement in the
                           absence rate by the pay bill. This is a simple percentage of the entire payroll
                           costs. As stated above, it is an indicator of the maximum savings that could be
                           made and is also subject to several assumptions

                           The latest monthly rate (from SWISS) for December showed a Scotland wide NHS
                           absence rate of 5.57%.

                           If it is assumed that in each month from December 2007 boards make a 0.112%
                           reduction (therefore over 14 months 1.57% to reduce the rate to 4%) then from
                           Feb 2008 to Feb 2009 the time release savings will be 12 multiplied by 0.112%
                           multiplied by the pay bill. This will equal in 2008/2009:

                           12 x 0.112% = 1.344% x pay bill (£4,632m 3) = £62.25m

                           If it assumed that this rate is maintained until 2010/2011, then there will be
                           recurring savings of £62.25m against the February 2008 baseline. However, the
                           nominal savings will be higher than this as the pay bill will increase by at least
                           inflation (2%) each year.




2
   Staff Governance Data March 05
3
  The pay bill for 2006/07 is estimated at £4,632m. The pay bill for 2007/08 is not yet available but when it is, the
time releasing savings for 2007/08 will be calculated using the most up to date information.




                                                                                                               173
DG Health


7. Description of
efficiency and      7.2 What are the main actions that are needed to secure the delivery of this
actions to be       efficiency improvement?
taken
                          •     All Boards produce a plan through the LDP process, on how they are
                                tackling current sickness absence levels in their area.
                          •     The Health Workforce Directorate actively supports and encourages
                                employers to maintain and improve management practice in the field of
                                attendance management.
                          •     A national working group focuses on the 4% sickness absence.
                          •     All Boards have been offered the opportunity to utilise the “Promoting
                                Attendance at Work” (PAWS) software system produced by NHS Tayside.
                                Any Boards not wishing to use this software have confirmed that they
                                have a robust HR system in place to monitor staff sickness absence.
                          •     A national “stocktake” exercise has been undertaken – all mainland and
                                Special Boards were visited, and Island Boards interviewed. This
                                provided evidence, on a Board-by-Board basis of the degree of focus on
                                this target, and the actions that were in place. The stocktake exercise
                                revealed that there was good focus on this target, and there were many
                                actions in place in Health Boards to tackle staff sickness absence, which
                                could be described against the headings:

                                     •   Raising Awareness
                                     •   Policy
                                     •   Occupational Health Services
                                     •   Monitoring
                                     •   Training

                          The November 2007 HR Directors forum fully considered the Stocktake
                           exercise – and it was agreed that all Boards should adopt the good practice
                           identified.

                              A “Top 20” list of the best good practice examples has been compiled and
                               distributed to all Boards with all the other examples to be made available on
                               the Pay Modernisation website Sickness Absence section when complete.
8. Associated       8.1    Are there any development or redundancy costs associated with the
costs               delivery of this efficiency?
                    No.

9. Measurement      9.1         What are the inputs that will be measured?

                    Data is analysed through the SWISS system using payroll data provided by Health
                    Boards.
                    9.2         What are the outputs that will be measured?

                    Data outputs are from SWISS and are sent to The Scottish Government from ISD
                    (Information Services Division).
                    9.3         What is the baseline for inputs and outputs?

                    Recorded sickness absence and payroll costs in 2007/08 (although note payroll
                    data is not yet available from 2007/08)




   174
                                                                                          DG Health


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The Scottish Government monitors absence rates on a month to month basis.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The information is input into individual board payroll then transferred electronically
                     into the SWISS Workforce Information Repository (national database) from which
                     the monitoring statistics are run.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     The stats (from SWISS) are sent to The Scottish Government from ISD. This
                     information is collected and analysed monthly with a six week after month end
                     time lag.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Efficiencies are not dependent on legislation.

14. Use of           14.1 How are the efficiencies released from improvement activity being
efficiencies         used to improve services?
                     A sustained reduction in absence rates in NHS Boards would lead to staffing
                     efficiencies as described at 7.1 above and would improve continuity of services
                     and wellbeing of staff.




                                                                                                  175
DG Health


1. Portfolio/Number/Name: DG Health / 14 P / Increasing Consultant Related Productivity
2. Programme/Activity:
Achievement of a 1% improvement in the consultant-related productivity. Note: this no longer corresponds
to a HEAT target (the HEAT target of 1% having been replaced by four individual measures of
productivity).

3. Efficiency 3.1 Target; £m                             2008-09          2009-10           2010-11
              Total time release
              total from baseline         Time              1.4              2.9              4.4
              (see note 7 below)
                                                         2008-09          2009-10           2010-11
                 3.2 Efficiencies
                                          Cash              1.4              -                 -
                      delivered; £m
                                          Time               -               -                 -
4. Accountable Officer for delivery             Dr Kevin Woods
5. Project Manager                              John Davidson/Christine McGregor
6. EGDD Portfolio Manager                       Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficient improvement is measured in 4 ways: Review to New consultant led
taken
                       cases, average length of stay for routine and non-routine patients, lastly,
                       supporting day surgery as the norm.

                       Significant time savings have already being made against this target as shown in
                       the table below. As a result the target for the next three years 2008/09 to 2010/11
                       should be to maintain these savings (plus 2%) from the baseline i.e. incremental
                       increases of £1.4m, £2.9m and £4.4m respectively.

                       Total consultant related productivity target v actual time savings
                                                 Target from             Actual
                                                  baseline
                        2005/06                    £22.0m               £32.8m
                        2006/07                    £46.5m               £72.0m
                        2007/08                    £73.9m

                       Please note that the data for 2007/08 will not be available until December 2008.


                       7.2 What are the main actions that are needed to secure the delivery of this
                       efficiency improvement?
                       Continued monitoring from The Scottish Government to ensure targets are being
                       met across all NHS boards.

8. Associated          8.1    Are there any development or redundancy costs associated with the
costs                  delivery of this efficiency?

                       No.
9. Measurement         9.1     What are the inputs that will be measured?

                       Data is analysed through the Health Boards’ patient information systems and
                       coding data which is sent to ISD (Information Services Division).




    176
                                                                                         DG Health


                     9.2     What are the outputs that will be measured?
                     The outputs that are measured are split into 4 measures as follows:

                     1. Review to New Consultant attendances. The number of review cases and new
                     cases are collected for each NHS Board and analysed. To calculate a cash value
                     for time-release savings a cost for a consultant led clinic is derived from the cost
                     book.

                     2/3 Average length of stay for routine /non routine patients. The average length of
                     stay is analysed by NHS boards. To calculate cash value of time-release savings
                     a cost for an overnight stay in hospital is derived from the cost book.

                     4. Supporting day surgery as the norm. The number of day case surgery are
                     analysed by NHS boards. To calculate a cash value for time-release savings a
                     cost for an overnight stay in hospital is derived from the cost book.


                     9.3     What is the baseline for inputs and outputs?
                     2007/08 (Although note data for 2007/08 will not be available until December
                     2008)

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?

                     The Scottish Government will monitor progress across NHS boards. .

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The data is collected by ISD and given to ASD (Analytical Services Division, The
                     Scottish Government) to analyse.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?

                     Complete data is not available until December each year. In December 2008 time
                     release savings will be calculated and reported for 2007/08.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Efficiencies are not dependent on legislation.




                                                                                                177
DG Health


14. Use of     14.1 How are the efficiencies released from improvement activity being
efficiencies   used to improve services?
               A reduction in attendance at consultant led appointments will mean more cost
               effective staffing of clinics and can facilitate the patient being given appropriate
               clinical care closer to home and support the shift in the balance of care from
               hospital to the community.

               A reduction in the length of stay for routine admissions allows the deployment of
               staff to care for the more acutely ill. For patients it allows more rapid diagnosis and
               treatment and a return home sooner than at present.

               By reducing the number of inpatients and treating them as day cases the average
               cost of an overnight stay will be saved. The overall impact should be positive.




   178
                                                                                          DG Health


1. Portfolio/Number/Name: DG Health / 15 P / NHS Shared Support Services (SSS)
2. Programme/Activity:
The role of the programme is to create shared services for Finance and Payroll across NHSScotland.
The goal is to deliver economic and quality benefits releasing resources to frontline patient care and
enhancing financial management across the service.
In the next phase of this programme, Health Boards will focus on implementing a common finance
system and use this, and other technologies, to automate and streamline how transactions are
processed and to produce better information for managing the Service overall.
Health Boards are forming new alliances to deliver the changes on a co-ordinated national basis. The
outcomes of the current piloting process will be used to determine the final configuration of Shared
Support Services at national level.

3. Efficiency                                            2008-09         2009-10          2010-11
                 3.1 Target; £m
                                         Time               0.0             0.4              0.7
                                                         2008-09         2009-10          2010-11
                 3.2 Efficiencies
                                         Cash                0              -                -
                    delivered; £m
                                         Time                -              -                -
4. Accountable Officer for delivery                   Dr Kevin Woods
5. Project Manager                                    John Francis
6. EGDD Portfolio Manager                             Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency   and made?
actions to be
taken              The savings are primarily centred on a reduction in time non-Finance staff will
                       need to spend compiling and authorizing expense claims.
                       The SSS Programme Team will also be working closely with, and in support
                       of, the national Scottish Standard Time System (SSTS) roll-out programme.
                       This is expected to produce significant time savings particularly in Nurse
                       Managers who carry out rostering activities. No estimates have yet been
                       produced as a detailed research exercise has yet to be carried out to produce
                       these figures. The figures will be known by March 2009 and will feed into the
                       ongoing update on actual outcomes.


                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       Implementation of an on-line eExpenses system and the roll-out of the SSTS
                       system
8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       The purpose of the programme is to deliver a number of business of
                       objectives and there are therefore no development costs.

                       It is not expected that any redundancy costs will be incurred.

9. Measurement         9.1     What are the inputs that will be measured?
                       Time currently spent on the relevant activities




                                                                                                   179
DG Health


9. Measurement     9.2     What are the outputs that will be measured?
                   The revised time spent following implementation of the enabling technologies

                   9.3     What is the baseline for inputs and outputs?
                   The baseline for inputs is the costs of those services in each NHS Board in
                   2007/08. Each Consortium/Stand-alone Board will produce full Project
                   documentation for their contribution to the overall Programme.


10. Quality cross- 10.1    What quality indicators are being used to ensure that quality of
check                      service is maintained or improved?
                   Accuracy and timeliness of the expense claims processed and the improved
                   rostering and management information that will flow from both these
                   improvement projects.

11. Monitoring     11.2    What are the arrangements for monitoring the delivery of
                           efficiencies?
                   This will be subject to an active benefits realisation process initiated by the
                   national Programme team. NHSScotland Health Boards will provide the
                   information on the impact of the projects locally.

12. Reporting      12.2    What are the arrangements for reporting the delivery of
                           efficiencies?
                   The Programme team will be responsible for information relating to savings
                   and quality improvements and submitting this to the Scottish Government
                   Health Department quarterly.

13. Dependencies   13.2    Explain if your efficiencies are dependent on legislation or other
                           structural changes being achieved.
                   No. The changes are predominantly technology driven.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   The time released through efficiency projects will be used by NHS Boards to
                   improve frontline services.




   180
                                                                                         DG Health


1. Portfolio/Number/Name: DG Health / 16 P / NHS Logistics
2. Programme/Activity:
National Procurement (NP) within NHS National Services Scotland delivers time releasing efficiency
savings for NHSScotland through the implementation of best practice supply chain management.
Time savings will also be delivered through the introduction of a Ward Product Management system
(WPMs).

3. Efficiency                                          2008-09          2009-10          2010-11
                3.1 Target; £m
                                        Time              1.9              4.8             8.1
                                                       2008-09          2009-10          2010-11
                3.2 Efficiencies
                                        Cash              -                -                -
                   delivered; £m
                                        Time              1.54             -                -
4. Accountable Officer for delivery              Dr Kevin Woods
5. Project Manager                               Jane Davidson/Sandy Kinnear
6. EGDD Portfolio Manager                        Shona MacPherson
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The savings will be achieved through the use of a National Distribution Centre
taken
                      (NDC) and the release of clinical staff time from product ordering activity
                      through the roll-out of the WPMs which forms an integral part of the Logistics
                      strategy.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      The NDC is still in its infancy – it was officially opened in March 2007. Seven
                      NHS boards are supplied through the NDC but to secure the delivery of the
                      efficiency improvement, all NHS boards need to be on-stream. NP is working
                      with Health Boards to deliver national implementation which will be complete
                      by March 2009.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      There are no redundancy or additional development costs.

9. Measurement        9.1     What are the inputs that will be measured?
                      The current local staff time spent on product ordering.

                      9.2     What are the outputs that will be measured?
                      Reductions in the local staff time spent on product ordering, receiving of
                      goods and management of inventory.

                      9.3     What is the baseline for inputs and outputs?
                      The baseline is 2007-08.




                                                                                                 181
DG Health


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Quality is addressed by the Logistics strategy. In particular delivery
                     performance is measured on a customer basis daily along with a range of
                     performance metrics which are communicated and reviewed with Health
                     Boards on a weekly cycle to ensure operational and quality performance is
                     consistent with the targets set out in the service level agreement.

                     Quality is also improved by the better use of clinical staff time.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The Team rolling out the WPMs will assess the nursing time saved (average
                     hourly rate of nurse x average time spent checking stocks) and this is fed into
                     the NP monitoring returns.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Responsibility for reporting to The Scottish Government lies with the Director
                     of NP who completes routine monitoring forms.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Savings are not dependant on legislation. Savings are dependent on the
                     transfer of local stock management systems to the NDC which NHS board
                     Chief Executives are committed to doing.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     The time released through efficiency projects will be used by NHS Boards to
                     improve frontline services.




   182
                                                                     DG Justice



      1. Director General/Number/Name: DG Justice / 1 /
                      Accountant in Bankruptcy

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                         Revised
      1. Director General/Number/Name: DG Justice / 2 /
                     Community Justice Services

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             183
DG Justice


1. Portfolio/Number/Name: DG Justice / 3 / Police Central Government Budgets
2. Programme/Activity:
The Police Service is committed to improving services and also to improving efficiency. A robust
programme of modernisation is in place, including the setting up of the Scottish Police Services
Agency (SPSA) in April 2007. Since 2002-03 ACPOS has published an annual best value report on
behalf of forces. The SPSA also reports on efficiencies.

The PCG budget is a stream of funding paid directly to the police service by Government with no
contribution required from local authorities. The main expenditure met from this funding stream is the
Scottish Police Services Authority, which is responsible for providing a range of police support
services including training, forensic services and (from 1 April) information and communication
technology systems and equipment, as well as maintaining the Scottish Crime and Drug Enforcement
Agency. PCG also covers other areas of policing activity directly funded by the Government,
including national elements of Counter-Terrorism activities; the Airwave communications system;
Scottish contributions to UK-wide police facilities; support to staff associations; and specific Ministerial
initiatives.

Efficiencies will be delivered on the PCG 2007/08 baseline of £128.5M.

3. Efficiency                                              2008-09           2009-10           2010-11
                  3.1 Target; £m
                                            Cash              2.57             5.14             10.664
                                                           2008-09           2009-10           2010-11
                  3.2 Efficiencies
                                            Cash              4.17              -                 -
                   delivered; £m
                                            Time                -               -                 -
4. Accountable Officer for delivery            Stella Manzie
5. Project Manager                             Derek Smith
6. EGDD Portfolio Manager                      Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   The efficiencies are being delivered through a wide range of actions and
taken
                        projects, the SPSA will contribute significantly to the efficiency process. The
                        SPSA Efficiency Plan identifies a number of tangible benefits in the first year,
                        with the detail for further years still to be finalised. As a relatively new
                        organisation, the SPSA will take time to fully develop and refine efficiency
                        opportunities with an improved understanding of the business areas.

                        The SPSA also recognises that it can be an enabler for the delivery of
                        efficiencies in other parts of the public sector, in particular within the Scottish
                        Police Service and wider Criminal Justice community.




    184
                                                                                             DG Justice


7. Description of     7.2 What are the main actions that are needed to secure the delivery of
efficiency and        this efficiency improvement?
actions to be taken
                      The actions will be for those in the SPSA and other budget holders. The
                      establishment of the SPSA in April 2007 is a key factor for driving long term
                      efficiency gains. It is of course important that all budget holders continue to
                      take a rigorous approach to service improvement to ensure that delivery is as
                      efficient as possible.

                      The SPSA has a number of specific plans for cash releasing savings. These
                      include;
                           • An emphasis on ensuring that wherever possible police officers are
                               replaced with staff to minimise costs and maximise operational police
                               numbers. Following a review, it is planned over three years to return
                               15% of current police officers to operational roles. In the first year, this
                               is expected to release £203,000.
                           • A review of management and staffing structures is expected to
                               generate cashable savings of £212,000 in the first year.
                           • A review of facilities management, and a move to single suppliers is
                               expected to release £165,570 in the first year.
                           • A target saving of 2% on current year budgets is being set for
                               procurement services across all overhead categories with the
                               exception of staff and property costs.
                           • From 1 April, SPSA will be responsible for delivering all ICT systems
                               and equipment to the Scottish Police Service on a national basis,
                               creating scope for eliminating duplication and taking advantage of
                               economies of scale.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      We cannot be specific at this stage about the impact on staffing, but we
                      expect there to be some re-deployment of officers and police staff as a result
                      of ongoing and future reviews.

9. Measurement        9.1     What are the inputs that will be measured?
                      We are considering how best to report on efficiency savings but the main
                      element will be SPSA reporting on achievement of their efficiency plan.

                      9.2     What are the outputs that will be measured?
                      There will be a variety of outputs measures depending on the initiative, for
                      example within the SPSA, civilianisation, reviews of energy consumption and
                      facilities management.

                      9.3     What is the baseline for inputs and outputs?
                      The baseline for inputs and outputs will be the comparative figures for
                      2007/08.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      The SPSA has established a project group to manage their efficiency plan,
                      chaired by the Chief Executive, including senior management, SPSA Board
                      and ACPOS. In addition, the Scottish Policing Performance Framework
                      includes a range of indicators covering service delivery.




                                                                                                      185
DG Justice


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   There is ongoing monitoring, both within the SPSA and nationally via the
                   Scottish Policing Performance Framework.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   They will be reported via the Scottish Policing Performance Framework.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Savings will require a number of changes to working practices, some may be
                   dependent on legislation in the Scottish Parliament.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   This efficiency was assumed as part of the allocation made by the Scottish
                   Government to the Police Central Government Budgets. This freed up
                   resources which made it possible to proceed with the Gartcosh Crime
                   Campus.




   186
                                                                                        DG Justice


1. Portfolio/Number/Name: DG Justice / 4 / Parliament House redevelopment
2. Programme/Activity:
Parliament House redevelopment

3. Efficiency                                    2008-09            2009-10            2010-11
                3.1 Target; £m                  1.291 (rev)       1.291 (rev)         1.291 (rev)
                                   Cash         2.960 (cap)       2.960 (cap)         2.960 (cap)
                                              2008-09          2009-10        2010-11
               3.2 Efficiencies
                                 Cash            4.251             -              -
                  delivered; £m
                                 Time              -               -              -
4. Accountable Officer for delivery        Stella Manzie and Gordon Wales
5. Project Manager                         Colin Campbell
6. EGDD Portfolio Manager                  Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and       made?
actions to be
                     The masterplan for the redevelopment of Parliament House has been re-
taken
                     scoped to reduce the extent of the construction works but will still deliver the
                     critical elements of the plan and allow the complex to function as an
                     operational asset. The overall cost was projected at £133.6m and has now
                     been estimated at £111.5m. The original project and current project were
                     expected to be complete by 2013. The savings have been calculated on the
                     basis of the average annual saving over the remaining contract life (5.5
                     years). The capital/revenue split has been determined by employing the
                     formal valuation figures provided by Knight Frank for Phase 1 of the contract
                     (which will run until October 2009).

                     7.2 What are the main actions that are needed to secure the delivery of
                     this efficiency improvement?
                     Delivery of project within the overall business case projections and a broadly
                     steady capital/revenue ratio on completion of valuation work at the end of
                     each phase.

8. Associated        8.1     Are there any development or redundancy costs associated with
costs                the delivery of this efficiency?
                     No.

9. Measurement       9.1     What are the inputs that will be measured?
                     Detailed tender packages and overall budget for each phase.

                     9.2     What are the outputs that will be measured?
                     Annual expenditure and capital/revenue valuations.

                     9.3     What is the baseline for inputs and outputs?
                     Budgets are £9.504m/£10.077m/£12.142m.
                     Capital:revenue ratio is 74%:26%




                                                                                                187
DG Justice


10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     The NEC3 construction contracting approach has been employed which
                     caters for the formal quality evaluation.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?

                     OSD Efficiency & Opportunity Project Group.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     SCS Efficiency & Opportunity programme review group.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.


14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     Efficiencies to be released back into overall SCS estates budget for re-
                     allocation.




   188
                                                                     DG Justice



      1. Director General/Number/Name: DG Justice / 5 /
                Scottish Legal Services Ombudsman

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




      1. Director General/Number/Name: DG Justice / 6 /
                       Fire Central Government

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             189
DG Justice


1. Portfolio/Number/Name: DG Justice / 7 / Scottish Legal Aid Board
2. Programme/Activity:
Legal Aid scheme in Scotland providing funding for advice, assistance and representation for eligible
individuals in relation to matters of civil and criminal law.

3. Efficiency                                          2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash             3.5              8.1              9.4
                                                       2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash            5.263             -                -
                    delivered; £m
                                         Time              -               -                -
4. Accountable Officer for delivery                  Stella Manzie, DG Justice and Communities
                                                     Chris Graham, Access to Justice, Legal Aid
5. Project Manager                                   Team
6. EGDD Portfolio Manager                            Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be     Improved forecasting of anticipated demand for legal aid and improved control
taken             over expenditure to ensure all payments are for work properly and necessarily
                       done.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       • Continued improvements to collaboration between Access to Justice,
                         Crown Office, Scottish Courts Service, and Scottish Legal Aid Board on
                         forecasting volumes and levels of court cases.
                       • Legislative and procedural changes to improve control over specific
                         aspects of the legal aid scheme.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       No significant redundancy costs. Some elements of procedural change will
                       require investment in IT and commissioning of research work.

9. Measurement         9.1     What are the inputs that will be measured?
                       • Volumes and types of cases for which legal aid funding is requested.
                       • Solicitors’ and counsel’s accounts.

                       9.2     What are the outputs that will be measured?
                       • Expenditure.
                       • Numbers of summary criminal cases disposed of early.
                       • Numbers and types of civil cases for which legal aid funding is requested.

                       9.3     What is the baseline for inputs and outputs?
                       Management information and accounts for 2006-07.

10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       A quality assurance scheme based on peer review is being introduced for
                       criminal legal aid (a similar scheme already exists for civil).




    190
                                                                                    DG Justice


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   A high level group chaired by DG Justice and Communities and involving
                   Access to Justice, Crown Office, Scottish Courts Service, Scottish Legal Aid
                   Board, Analytical Services and Justice Finance will commission and monitor
                   specific activities.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Reports to the DG chaired Group and monthly Finance expenditure
                   monitoring.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   • Improved forecasting and monitoring of external factors affecting
                     expenditure may require some adjustment to working practices in relation
                     to sharing of information.
                   • Some improvements will require secondary legislative change. Changes
                     to primary legislation will be necessary for some improvements in year
                     three and beyond.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve services?
                   Efficiencies will reduce demand on the legal aid fund freeing the monies
                   allocated to it for redistribution elsewhere in the system or outwith it.
                   Improved forecasting should enable the longer term assessment of demand to
                   be made with more confidence. Savings are also needed to enable funding of
                   fee increases, particularly to support improved provision in civil cases.

                   NB the plan is based on initial work undertaken with the Scottish Legal Aid
                   Board with whom the value and timing of the efficiency targets are still to be
                   formally agreed. The figures include anticipated savings arising from reform
                   of summary criminal legal assistance although the Spending Review
                   settlement “takes account of on-going pressures on the Legal Aid Fund due to
                   increased numbers of cases, particularly in solemn criminal work, set against
                   prospective savings from reforms which will be implemented over the
                   Spending Review period”. The summary savings will deliver approximately
                   £4m annually by 2010-11 and are, therefore, integral to the achievement of
                   the 2% efficiency.




                                                                                            191
DG Justice



             1. Director General/Number/Name: DG Justice / 8 /
                   Scottish Charity Appeals Panel Secretariat

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




             1. Director General/Number/Name: DG Justice / 9 /
                    Office of the Scottish Charity Regulator

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   192
                                                                                              DG Justice


1. Portfolio/Number/Name: DG Justice / 10 / Scottish Prison Service Operating Expenditure
2. Programme/Activity:
The Scottish Prison Service (SPS) budget for the Departmental Expenditure Limit (DEL) efficiency
baseline year 2007-08 was £427.3m - comprising £280.7m Operating Expenditure, £49.0m Capital
Charges and £97.6m Capital Expenditure.

SPS Operating expenditure includes the cost of prison officers and other staff employed by SPS, cost
of keeping prisoners in prison (food, healthcare, clothing etc), providing activities (e.g. education, work
etc) and reducing the risk of reoffending on release from (e.g. behavioural programmes, support
services, links with the community and other agencies etc) in addition to the cost of operating and
maintaining the prison estate.

This part of the SPS Efficiency Delivery Plan aims to deliver a cash-releasing Operating Expenditure
efficiency saving of £5.6m (i.e. 2% of £280.7m) in 2008-09, £11.2m (i.e. 4% of £280.7m) in 2009-10
and £16.8m (i.e. 6% of £280.7m) in 2010-11.

The SPS Budget for each of the next 3 years has been set at a level which assumes that such
savings will be made. Therefore the SPS has been set two linked challenges - firstly, to live within the
available budget and secondly to deliver qualifying efficiency savings of £5.6m/£11.2m/£16.8m.

3. Efficiency                                              2008-09          2009-10           2010-11
                  3.1 Target; £m
                                           Cash               5.6              11.2             16.8
                                                           2008-09          2009-10           2010-11
                  3.2 Efficiencies
                                           Cash               -                -                 -
                     delivered; £m
                                           Time               -                -                 -
4. Accountable Officer for delivery               SPS Chief Executive / DG Justice
5. Project Manager                                Willie Pretswell – SPS Director, Finance
6. EGDD Portfolio Manager                         Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   It is anticipated that the Delivery Plan will include a number of initiatives
taken
                        across the full range of SPS Operating Expenditure. The nature of many of
                        these will require extensive discussion and negotiation with SPS trade union
                        partners. At this early stage, SPS is unable to specify a description of the
                        planned efficiency savings.
                        The immediate priority for SPS is dealing with the record prisoner population
                        and living with the Operating Budget for 2008-09. In parallel, work is underway
                        to identify and progress a range of efficiency savings.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Availability of SPS management time to focus on efficiency savings and
                        support from SPS trade union partners in relation to implementing agreed
                        efficiency initiatives.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No major development costs or redundancy costs are anticipated.

9. Measurement          9.1      What are the inputs that will be measured?
                        To be specified at a later date.




                                                                                                       193
DG Justice


9. Measurement       9.2     What are the outputs that will be measured?
                     To be specified at a later date.

                     9.3     What is the baseline for inputs and outputs?
                     To be specified at a later date.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     To be specified at a later date.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     SPS has been operating an Efficiency Programme over a number of years
                     with robust reporting and validating procedures. This process is subject to
                     annual assurance by internal and external audit and the most recent
                     independent assessment provided ‘substantial’ assurance’.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See 11.1

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Delivery of the required Efficiency savings will require some reduction in
                     prisoner number (which are currently at record levels) and the active support
                     of SPS staff and Trade Union partners.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made by the Scottish
                     Government to the Scottish Prison Service. This freed up resources for
                     Ministers to allocate to their priorities.




   194
                                                                                             DG Justice


1. Portfolio/Number/Name: DG Justice / 11 / Scottish Prison Service Capital Charges
2. Programme/Activity:
The Scottish Prison Service (SPS) budget for the Departmental Expenditure Limit (DEL) efficiency
baseline year 2007-08 was £427.3m - comprising £280.7m Operating Expenditure, £49.0m Capital
Charges and £97.6m Capital Expenditure.

SPS Capital Charges includes the non-cash depreciation cost of the assets (mainly prison buildings
with a book value of some £700m) owned by SPS and used in the delivery of the service provided by
SPS. Also included is the non-cash notional interest charge on the net assets (i.e. assets less
liabilities) of SPS - with the main assets being the prison buildings. Interest is charged annually at the
notional rate of 3.5% on the average net assets of some £500-600m.

This part of the SPS Efficiency Delivery Plan aims to deliver a cash-releasing Capital Charges
efficiency saving of £1m (i.e. 2% of £49.0m) in 2008-09, £2m (i.e. 4% of £49.0m) in 2009-10 and
£2.9m (i.e. 6% of £49.0m) in 2010-11.

The SPS Budget for each of the next 3 years has been set at a level which assumes that such
savings will be made. Therefore the SPS has been set two linked challenges - firstly, to live within the
available budget and secondly to deliver a qualifying efficiency saving of £1m/2m/2.9m over this
period.

3. Efficiency                                             2008-09          2009-10           2010-11
                  3.1 Target; £m
                                           Cash               1                2                2.9
                                                          2008-09          2009-10           2010-11
                  3.2 Efficiencies
                                           Cash              -                -                 -
                     delivered; £m
                                           Time              -                -                 -
4. Accountable Officer for delivery            SPS Chief Executive / DG Justice
5. Project Manager                             Willie Pretswell – SPS Director, Finance
6. EGDD Portfolio Manager                      Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Due to Capital Charges being non-cash, SPS is currently unable to identify
taken
                        how any efficiency savings in Capital Charges could contribute to the cash-
                        releasing target. Consequently, SPS will seek to identify the scope for
                        realising additional Operating Expenditure efficiency savings with our Trade
                        Union partners to make up the shortfall of £1.0/2.0/2.9m over the next 3 year
                        period.

                        Refer to SPS1/Operating Expenditure Efficiency Deliver Plan for further
                        information.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Availability of SPS management time to focus on efficiency savings and
                        support from SPS Trade Union partners in relation to implementing agreed
                        efficiency initiatives.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        No major development costs or redundancy costs are anticipated.




                                                                                                      195
DG Justice


9. Measurement       9.1     What are the inputs that will be measured?
                     To be specified at a later date.

                     9.2     What are the outputs that will be measured?
                     To be specified at a later date.

                     9.3     What is the baseline for inputs and outputs?
                     To be specified at a later date.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?

                     To be specified at a later date.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     SPS has been operating an Efficiency Programme over a number of years
                     with robust reporting and validating procedures. This process is subject to
                     annual assurance by internal and external audit and the most recent
                     independent assessment provided ‘substantial’ assurance’.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See 11.1

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     Delivery of the required Efficiency savings will require some reduction in
                     prisoner numbers (which are currently at record levels) and the active support
                     of SPS staff and Trade Union partners.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made by the Scottish
                     Government to the Scottish Prison Service. This freed up resources for
                     Ministers to allocate to their priorities.




   196
                                                                                           DG Justice


1. Portfolio/Number/Name: DG Justice / 12 / Scottish Prison Service Capital Expenditure
2. Programme/Activity:
The Scottish Prison Service (SPS) budget for the Departmental Expenditure Limit (DEL) efficiency
baseline year 2007-08 was £427.3m - comprising £280.7m Operating Expenditure, £49.0m Capital
Charges and £97.6m Capital Expenditure.

SPS Capital Expenditure includes the cost of modernising the existing prison estate and constructing
new prisons (e.g. HMP Bishopbriggs and HMP Grampian).

This part of the SPS Efficiency Delivery Plan aims to deliver a cash-releasing Capital expenditure
efficiency saving of £2m (i.e. 2% of £97.6m) in 2008-09, £3.9m (i.e. 4% of £97.6m) in 2009-10 and
£5.9m (i.e. 6% of £97.6m) in 2010-11.

The SPS Budget for each of the next 3 years has been set at a level which assumes that such
savings will be made. Therefore the SPS has been set two linked challenges - firstly, to live within the
available budget and secondly to deliver a qualifying efficiency saving of £2m/£3.9m/£5.9m.

3. Efficiency                                              2008-09        2009-10          2010-11
                 3.1 Target; £m
                                           Cash              2.0             3.9              5.9
                                                           2008-09        2009-10          2010-11
                 3.2 Efficiencies
                                           Cash               -              -                -
                    delivered; £m
                                           Time               -              -                -
4. Accountable Officer for deliver              SPS Chief Executive / DG Justice
5. Project Manager                              Willie Pretswell – SPS Director, Finance
6. EGDD Portfolio Manager                       Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Capital Expenditure is project based rather than recurring (eg Operating
taken
                        Expenditure) therefore comparison with the 2007-08 base budget for
                        efficiency measurement purposes is problematic. SPS therefore intends to
                        identify efficiency savings which are incorporated in new projects being carried
                        out during the 3 year period rather than comparing two different projects in
                        different time periods. Such efficiency savings will include procurement related
                        efficiency savings and other gains secured via negotiation with contractors.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Delivery of the SPS Estate Development Programme, including the
                        redevelopment of existing prisons and the construction of new prisons.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        Yes, some development costs will be incurred (eg project management and
                        professional services) – which will be included in the cost of each project.

9. Measurement          9.1     What are the inputs that will be measured?
                        To be specified at a later date.

                        9.2     What are the outputs that will be measured?
                        To be specified at a later date.




                                                                                                    197
DG Justice


9. Measurement       9.3     What is the baseline for inputs and outputs?
                     To be specified at a later date.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     To be specified at a later date.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     SPS has been operating an Efficiency Programme over a number of years
                     with robust reporting and validating procedures. This process is subject to
                     annual assurance by internal and external audit and the most recent
                     independent assessment provided ‘substantial’ assurance’.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     See 11.1

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     As with all estate related development, SPS will require planning permission
                     for the proposed development projects – which is of course out of the control
                     of SPS.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made by the Scottish
                     Government to the Scottish Prison Service. This freed up resources for
                     Ministers to allocate to their priorities.




   198
                                                                          DG Justice



          1. Director General/Number/Name: DG Justice / 13 /
                Scottish Court Service Frontline Reinvestment

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




          1. Director General/Number/Name: DG Justice / 14 /
                    Scottish Court Service Court Unification

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




          1. Director General/Number/Name: DG Justice / 15 /
           Scottish Court Service Online Risk Management System

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




          1. Director General/Number/Name: DG Justice / 16 /
                 Scottish Court Service Rationalisation of HQ

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




          1. Director General/Number/Name: DG Justice / 17 /
                          Improved Jury Management

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




          1. Director General/Number/Name: DG Justice / 18 /
                       Centralisation of Fines Collection

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




                                                                                199
DG Justice




             1. Director General/Number/Name: DG Justice / 19 /
                  Scottish Court Service Finance Management

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




             1. Director General/Number/Name: DG Justice / 20 /
                 Scottish Court Service Sustainability Measures

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




             1. Director General/Number/Name: DG Justice / 21 /
             Scottish Court Service Reduction in Consultancy Spend

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




             1. Director General/Number/Name: DG Justice / 22 /
                      Scottish Court Service Publications

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




             1. Director General/Number/Name: DG Justice / 23 /
                 Scottish Court Service HR Efficiency Measures

This project has now been incorporated into project DG Justice / 31 / Scottish Court
                      Service. See page 205 for full details.




   200
                                                                                          DG Justice


1. Portfolio/Number/Name: DG Justice / 24 / Risk Management Authority
2. Programme/Activity:
Enhance public protection by promoting and supporting professional practice in managing the risk of
serious harm presented by violent and sexual offenders.

3. Efficiency                                          2008-09           2009-10          2010-11
                3.1 Target; £m
                                        Cash             0.023             0.25              0.5
                                                       2008-09           2009-10          2010-11
                 3.2 Efficiencies
                                        Cash             0.031              -                -
                  delivered; £m
                                        Time                -               -                -
4. Accountable Officer for delivery                  Stella Manzie
5. Project Manager                                   Paul Keoghan, Director of Business
                                                     Performance, RMA
6. EGDD Portfolio Manager                            Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and    made?
actions to be
                  (a) In Year One subject to a successful budget bid for 08 - 09, the RMA will
taken
                      let a contract for training delivery. It is intended that public sector training
                      venues throughout Scotland will be used as opposed to previously private. It is
                      estimated that this could potentially save £10k.
                      To further deliver savings a business case has established the benefit of
                      purchasing and using stand alone lap tops for use with CD rom training
                      material rather than hiring lap tops at these events. Potentially over the length
                      of the contract savings of £18k (9K in Year One).

                      (b) Subject to the views of the Cabinet Secretary for Finance and Sustainable
                      Development, the Cabinet Secretary for Justice has decided, following an
                      efficiency review of the RMA, to integrate some of its functions with similar
                      work done within the Scottish Government. The result will be efficiency
                      savings of £250k in year 2 and £500k in year 3. The Cabinet Secretary for
                      Justice has already signalled that these savings are to be invested in front line
                      criminal justice services as part of the offender management delivery
                      programme that Cabinet agreed in December 2008.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      Implementation of above proposals should deliver the savings.

8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Cost of buying standalone lap tops and associated maintenance contracts in
                      Year One £ 5,500. Maintenance costs £2640 will reoccur in Years Two and
                      Three.

                      Years 2 and 3 savings may require staff rationalisation but it is hoped to avoid
                      redundancies and some professional staff may be absorbed (on secondment)
                      in the SG.




                                                                                                   201
DG Justice


9. Measurement       9.1       What are the inputs that will be measured?
                           •   Number of training sessions using public sector venues
                           •   Subscriptions to Linnets
                           •   Blackberry contracts
                           •   Use of Video conferencing
                           •   Savings in staff salaries’ budget
                           •   Years 2 &3 – revised management structure and business plan.

                     9.2       What are the outputs that will be measured?
                     Cash savings generated

                     9.3       What is the baseline for inputs and outputs?
                     For training sessions recorded costs associated with training sessions at
                     commercial venues during 07 – 08.

                     For others 07 – 08 known budget figures.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                           •   For training sessions feedback form are issued to all those attending
                               and analysed
                           •   letters of complaint/approval will be recorded
                           •   adherence to the Annual Business Plan
                           •   sickness levels
                           •   business performance against agreed

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Monitored by Director of Business Performance on a monthly basis.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     As per guidelines a report will be made quarterly.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     N/A

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     N/A at this time.




   202
                                                                     DG Justice



     1. Director General/Number/Name: DG Justice / 25 /
                      Parole Board for Scotland

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




     1. Director General/Number/Name: DG Justice / 26 /
            Scottish Criminal Cases Review Commission

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




     1. Director General/Number/Name: DG Justice / 27 /
              Criminal Injuries Compensation Authority

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




     1. Director General/Number/Name: DG Justice / 28 /
                       Victim Support Scotland

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




     1. Director General/Number/Name: DG Justice / 29 /
                   Courts Group - Court Directorate

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             203
DG Justice



             1. Director General/Number/Name: DG Justice / 30 /
                  Police Complaints Commissioner for Scotland

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   204
                                                                                           DG Justice


1. Portfolio/Number/Name: DG Justice / 31 / Scottish Court Service                             Revised
2. Programme/Activity:
A co-ordinated set of smaller initiatives which we will deliver to assist the achievement of our 2% cash
releasing efficiency savings

3. Efficiency                                             2008-09          2009-10         2010-11
                 3.1 Target; £m
                                           Cash             1.352            1.983           3.592
                                                          2008-09          2009-10         2010-11
                 3.2 Efficiencies
                                           Cash            1.677            -                   -
                 delivered; £m
                                           Time              -              -                   -
4. Accountable Officer for delivery                    Eleanor Emberson, Chief Executive
5. Project Manager                                     Gerry Wilson
6. EGDD Portfolio Manager                              Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   There will be three categories of initiatives which will make up the co-
taken
                        ordinated set of Scottish Court Services smaller initiatives-

                        −   Reduce spending on the following areas- the court estate, agency staff,
                            consultants, project management, invoice payment, customer surveys,
                            relocation of staff, staff excess fares and on re-investment of staff
                            resources to provide better front-line service.

                        −   Automation of our processes for- producing payslips, recruitment,
                            quickbooks (recording payments from solicitors) and risk management.

                        −   By working in collaboration with Scottish Government and other Agencies
                            we expect to be able to reduce our spend on contracts in the following
                            areas- stationery, vacancy advertising, Information Technology (IT), hotel
                            and conferencing room bookings, taxi services, temporary staffing, travel
                            and the employee assistance programme, and telecom management.

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        We will need to be innovative and prudent in our Procurement procedures,
                        ensure that savings and benefits envisaged from automation of processes are
                        realised and that our focus is on front-line activity.

                        We will do this by using collaborative contracts where possible and where this
                        is not possible we will ensure we receive the best value from our procurement.

                        We will not just implement new technology but will ensure that we realise the
                        maximum benefit from the implementation by procuring fit-for-purpose
                        systems and ensuring our processes are efficient.

                        We will reduce our reliance on expensive external short-term personnel by
                        equipping our own staff to take on tasks, unless prudent not to.

8. Associated           8.1     Are there any development or redundancy costs associated with
costs                   the delivery of this efficiency?
                        None that are not already accounted for.




                                                                                                    205
DG Justice


9. Measurement       9.1       What are the inputs that will be measured?
                     Baseline costs for the court estate, each of the processes to be changed and
                     our current spend on contracts.

                     9.2       What are the outputs that will be measured?
                     Service delivery of criminal cases and customer satisfaction

                     9.3       What is the baseline for inputs and outputs?

                           •   Each of our initiatives will have their baselines calculated separately
                           •   Service delivery national system target - percentage of criminal cases
                               dealt with within 26 weeks, the baseline performance is 68%. This is a
                               justice system target which is one of the national indicators.
                           •   Customer satisfaction rate is 75%

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     They include the number of criminal cases meeting the national system target,
                     the percentage of satisfied customers as provide through the customer
                     satisfaction survey, and the meeting of the invoice payment target rate. Each
                     initiative will also have separate indicators identified.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     Largest initiatives have separate Project Boards e.g. Summary Justice
                     Reform, all initiatives will be monitored by an Efficiency & Opportunity
                     Programme Board which includes the Chief Executive and the Directors of our
                     three Directorates.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Each initiative will report in separately to the Efficiency & Opportunity
                     programme Board and the Executive Board.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     They are not dependent on legislation or other structural changes being
                     achieved.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve front-line services?
                     The efficiencies released are used to improve front line services by being
                     invested in unifying the administration of the summary criminal courts
                     throughout Scotland, as part of the overall Summary Justice Reform
                     Programme and in the redevelopment of Parliament House.




   206
                                                                                           DG Justice


1. Portfolio/Number/Name: DG Justice /32 / AiB - Contracted Out Insolvency Services               NEW
2. Programme/Activity:
Re-tendering of the Agency’s contract for Insolvency Services, leading to a reduced unit cost per case
for both Creditor and Debtor cases.

3. Efficiency                                           2008-09           2009-10          2010-11
                 3.1 Target; £m
                                         Cash                  -           1.350             1.350
                                                        2008-09           2009-10          2010-11
                 3.2 Efficiencies                            -              -                -
                                         Cash
                 delivered; £m
                                         Time                -              -                -
4. Accountable Officer for delivery                   Stella Manzie and Chief Executive of AiB
                                                      Rosemary Winter-Scott
5. Project Manager                                    James Wallace
6. EGDD Portfolio Manager                             Lorimer Mackenzie
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   A new insolvency contract negotiated with six providers of insolvency services
taken
                       at a fixed unit cost. From 1 April 2009 fees paid to Agents will be significantly
                       lower than the fees paid during 2007/08 and earlier for both debtor and
                       creditor cases.

                       The lower unit cost will represent a direct saving under the new contract for
                       every case not handled in-house by the Agency.

                       7.2 What are the main actions that are needed to secure the delivery of
                       this efficiency improvement?
                       The new contract is already in place.

8. Associated          8.1     Are there any development or redundancy costs associated with
costs                  the delivery of this efficiency?
                       Costs have already been met.

9. Measurement         9.1     What are the inputs that will be measured?
                       Cost of Insolvency Practitioners basic fee to the public purse.

                       9.2     What are the outputs that will be measured?
                       Number of cases allocated out to Insolvency providers.

                       9.3     What is the baseline for inputs and outputs?
                       2008/09 levels.

10. Quality cross-     10.1 What quality indicators are being used to ensure that quality of
check                  service is maintained or improved?
                       The Contract is managed, AiB will audit providers to ensure and maintain
                       quality.

11. Monitoring         11.1 What are the arrangements for monitoring the delivery of
                       efficiencies?
                       AiB Finance monitor case volumes and payments monthly.


                                                                                                   207
DG Justice


12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   Efficiencies generated are reported to the Board of the Agency.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   No.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   The efficiencies are being utilised to free up funding for other areas of the
                   Scottish Government, AiB is reducing its reliance on vote allocation while
                   delivering more cases and maintaining quality standards.




   208
                                                                     DG Justice


                                                                             NEW
     1. Director General/Number/Name: DG Justice / 33 /
                         AiB Accommodation

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information.




                                                                             NEW
     1. Director General/Number/Name: DG Justice / 34 /
      Her Majesty's Inspectorate of Constabulary for Scotland

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information




                                                                             NEW
     1. Director General/Number/Name: DG Justice / 35 /
         Mental Health Tribunal for Scotland Administration

Moved to list of efficiency projects with expected savings less than £0.5m
                        see page 229 for information




                                                                             209
      Permanent Secretary




210
                                                                                 Permanent Secretary


1. Portfolio/Number/Name: Perm Sec - First Minister / 1 / Cultural Collections                Revised
2. Programme/Activity:
The Cultural Collections (NMS, NGS, NLS, SMC and SLIC) are all working to meet Ministers’ targets
for Efficient Government. They will aim to achieve this through working more effectively together in
terms of shared services and work practices but will also individually be looking at specific projects
within each organisation. Some of these are listed below.
This is a first draft and work is ongoing to identify further opportunities both shared and on an
individual basis.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash             2.24             3.25              3.6
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash             2.46               -                -
                     delivered; £m
                                         Time               -                -                -
4. Accountable Officer for delivery           Permanent Secretary
5. Project Manager                            Duncan Mackay/Patrick Berry
6. EGDD Portfolio Manager                     Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be      National Museums Scotland savings - £0.650m/£1.031m/£1.408m
taken              NMS made efficiencies of £650k in 2008/09 exceeding their target. These
                       included savings across staff costs, including restrictions in the use of
                       temporary staff and non-replacement of departing staff, and operational
                       savings, particularly on procurement of ICT, estates and marketing services.
                       NMS has confirmed these are recurring and therefore contribute to the year 2
                       and 3 targets.
                       NMS identified an additional £381k of recurring restructuring/non-replacement
                       and operational savings in 2009-10 and £377k in 2010-11, making the 2010-
                       11 total £1.408m. NMS will therefore exceed their target over the 3 years.
                       National Galleries of Scotland Savings £1.475/£1.641/1.798 (include
                       recurring £1.26m for D’Offay)
                       Recent acquisition of the d’Offay Collection saw a half share of world
                       renowned modern art collection (valued at £125m) acquired for £10m. This
                       purchase filled a major gap in the National Galleries’ Collection
                       (modern/contemporary art) which they might otherwise have expected to use
                       their annual £1.3m purchase grant to fill. There is therefore a re-occurring
                       efficiency of £1.26m derived from the D’Offay acquisition as the purchase
                       grant can be allocated to other priorities within the Galleries purchase plans.
                       This has been discussed and agreed with the Efficient Government team.
                       NGS’s revenue efficiencies for 2009-10 on top of this total £381k. This is
                       across a wide range of budgets within the Galleries.
                       NGS continue to use zero based budgeting to challenge historical expenditure
                       ensuring resources are directed to the most important services; The process
                       involves budget holders identifying spend required to meet Corporate Plan
                       priorities and objectives and Directors scrutinising such requests before final
                       budgets are approved. When a vacancy arises the work carried out is also
                       strategically reviewed to consider if the role requires to be filled or can be
                       gapped. The impact of this is built into salary budgets as efficiencies of
                       around £100k pa.
                       NGS have saved £50k through reductions in their publications budget and
                       £15k through improved procurement of office supplies.



                                                                                                   211
Permanent Secretary


7. Description of        NGS are now renting surplus office space from NLS for the period 2009-2011
efficiency and actions   during the refurbishment of the Portrait Gallery this represents a small saving
to be taken              (£7k) over commercial rents for NGS and provides income to NLS.

                         Green achievements include the installation of a new Building Management
                         System throughout the NGS estate which will provide better control of the Air
                         Conditioning equipment and provide energy savings. NGS continue to work on
                         their Environmental Management Plan through NGS Green Group and set
                         targets in areas such as carbon emissions and water consumption which will
                         deliver efficiency savings in the longer term. New equipment is reviewed to
                         ensure it is greener than existing equipment and more efficient to run. Water
                         coolers have been removed where possible which will deliver savings of £10K
                         and also reduce environmental impact. The Portrait Gallery refurbishment is
                         providing the opportunity to consider alterative approaches to heat, light and
                         humidity controls.

                         NGS revised its travel policy to affirm the importance of using public transport
                         and has created a Travel Action Group to take forward the other
                         recommendations made by The Energy Saving Trust’s consultants review.
                         Savings of £55K have been generated in 2009-10.

                         General cuts in departments’ non-staff budget have saved an additional £113k

                         In 2010-11 NGS expect to achieve additional savings of £127k on top of those
                         identified above.

                         National Library of Scotland. Saving £270k/£546k/£637k
                         Recurring savings have been achieved through a reduction in their VAT
                         liabilities amounting to 200k per annum, an increase in sponsorship funding of
                         45k and a reduction in print procurement costs of 25k. These are recurring
                         savings.

                         NLS have also made savings within the book purchase fund of £82k through
                         negotiating new contracts. This has been redeployed to further acquisition
                         activities.

                         Savings for 2009/10 come from a reduction in staff posts across all pay bands
                         saving £193.5k and through a security review which saved £83k in salary cost
                         reductions as a result of a reduction in supervisor post, renegotiating
                         allowances and overtime savings

                         This gives a total of £276,500 against the target of £270,000.

                         In 2010-11, the Library’s efficiency savings will be delivered through a
                         combination of continued management restructuring (170k), print reductions
                         (30k) maintenance efficiencies (20k) and energy savings resulting from our
                         sustainability plan (50k). These figures are only estimates at the moment but
                         NLS expect to be able to exceed the target.

                         Museums Galleries Scotland –Saving £80k/£203k/£160k

                         MGS‘s target of efficiency savings for the year 2009-10 was £120,000. MGS
                         exceeded this total. They received external income which was passed directly
                         to their member museums of over £180,000 (BIG Lottery and Future Jobs
                         Fund via SCVO). MGS made a decision to appoint a Company Secretary
                         internally rather than pay a firm of solicitors to undertake this work which has
                         resulted in a saving of £3,500. No additional legal advice was required.
                         As there were only three recruitment campaigns during the year, expected
                         savings under this heading were £7,500 rather than the £10,000 predicted.
                         Their switch to an external supplier for IT advice has been successful – the
                         savings for the current year amount to £12,000 (the increase is due to the fact



    212
                                                                                   Permanent Secretary


7. Description of        that it was some way into the year before the contract was awarded and so
efficiency and actions   the savings in future will be less.)
to be taken              Due to the additional income MGS receive for housing the Their Past Your
                         Future post and the UNESCO post, met their efficiency target for the
                         premises. Overall MGS savings are nearly double the target!

                         MGS are confident that they will meeting 2010-11’s target as, as well as the
                         general internal efficiencies, they expect to receive at least £300,000 of
                         income from the Future Jobs Fund. The target for 2010-11 is £160k.

                         Scottish Library and Information Council are currently working to
                         finalise figures.

                         7.2 What are the main actions that are needed to secure the delivery of
                         this efficiency improvement?
                         Many of the initiatives rely on joint working/shared services

8. Associated            8.1     Are there any development or redundancy costs associated with
costs                    the delivery of this efficiency?
                         There may be development costs (for example new telephony equipment for
                         NMS). Too early to actually quantify these costs at this stage).

9. Measurement           9.1     What are the inputs that will be measured?
                         Initially the inputs are the budgets in respect of baseline 2007/08. A review will
                         be undertaken of actual outturns for 2007/08 to ensure baseline figures for
                         each identified area of projected efficiency savings are accurate and/or
                         reasonable.

                         9.2     What are the outputs that will be measured?
                         The efficiency savings made by the organisations will be the outputs
                         measured, though against the background of continued delivery of high quality
                         public services.

                         9.3     What is the baseline for inputs and outputs?
                         2007/08 grant / grant in aid
10. Quality cross-       10.1 What quality indicators are being used to ensure that quality of
check                    service is maintained or improved?
                         The senior management teams in each of the Collection bodies will be
                         responsible for ensuring that the quality of a visit is maintained at each of their
                         institutions. This will be undertaken as part of their regular customer feedback
                         procedures. Quarterly KPI reports, including visitor numbers, will be provided
                         in respect of all of the Cultural Collections.

11. Monitoring           11.1 What are the arrangements for monitoring the delivery of
                         efficiencies?
                         Monitoring will be undertaken by the sponsor division in close contact with
                         senior managers at the cultural collections.

12. Reporting            12.1 What are the arrangements for reporting the delivery of
                         efficiencies?
                         Cultural Collections will be required to provide the sponsor division with
                         regular updates as part if their quarterly KPI reports.


                                                                                                       213
Permanent Secretary


13. Dependencies      13.1 Explain if your efficiencies are dependent on legislation or other
                      structural changes being achieved.
                      Not dependent on legislation.

14. Use of            14.1 How are the efficiencies released from improvement activity
efficiencies          being used to improve front-line services?
                      This efficiency was assumed as part of the allocation made by the Scottish
                      Executive to the Cultural Collections. This freed up resources for Ministers to
                      allocate to their priorities.




   214
                                                                                Permanent Secretary


1. Portfolio/Number/Name: Perm Sec- First Minister / 2 / National Performing Companies Revised
2. Programme/Activity:
The National Performing Companies (NTS, RSNO, SB, SCO, and SO) are all working to meet
Ministers’ targets for Efficient Government. They will aim to achieve this through working more
effectively together in terms of shared services and work practices but will also individually be looking
at specific projects within each organisation. Some of these are listed below.

3. Efficiency                                             2008-09          2009-10          2010-11
                  3.1 Target; £m
                                           Cash            0.478            0.915             1.071
                                                          2008-09          2009-10          2010-11
                  3.2 Efficiencies
                                           Cash            0.816              -                -
                     delivered; £m
                                           Time      -                        -                -
4. Accountable Officer for delivery            Permanent Secretary
5. Project Manager                             Duncan Mackay / Mike Griffiths
6. EGDD Portfolio Manager                      Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   National Theatre of Scotland (4% share £164k)
taken
                        NTS forecast an outturn saving of £198k in 2009-10 through increased
                        production income. Their target for 2010-11 is £245k.

                        Royal Scottish National Orchestra (4% share £151k)
                        A variety of sponsorships which release funds for artistic programmes,
                        including travel and office equipment rental agreements Year-end outturn is
                        £79k.

                        For 2010-11 RSNO estimate they can achieve £86k in efficiencies through
                        similar savings.

                        Scottish Ballet (4% share £181k)
                        As for 2008/09, Scottish Ballet revived a production during 2009/10 which was
                        created in previous years. The efficiency saving achieved in 2009/10 by not
                        creating a new production for winter season is based on the costs adjusted for
                        2007/08. The anticipated outturn is £272k

                        In the year 20010/11, Scottish Ballet will perform Cinderella again at
                        Christmas, rather than creating a new full-length for that season. The
                        efficiency saving made by not creating a new production for the winter season
                        is £310k. This represents 6.5% of the 2010/11 Government grant.

                        Scottish Chamber Orchestra (4% share £82k)
                        The SCO’s efficiencies centre round funding additional recordings from non-
                        public resources. Based on the success of the recording of Mozart’s last four
                        symphonies in 2008, SCO recorded his previous five symphonies with Linn in
                        summer 2009. The investment in this recording was approx £ 44k.

                        During 2010-11, the SCO will be making a recording with Nicola Benedetti
                        [May], and completing the Beethoven piano concerto cycle by recording nos 1
                        and 2 in August with Sir Charles Mackerras and Arthur Pizarro. Funding for
                        these is supported by accumulated royalties, which are re-invested in future
                        recordings – providing valuable extra work for the SCO players.

                        SCO’s “Green” initiative will certainly provide a better working environment,
                        and may produce some savings during the financial year. This has yet to be
                        quantified.




                                                                                                    215
Permanent Secretary


7. Description of        With external assistance, SCO are looking at ways to reducing costs across
efficiency and actions   general operating [ie non-musical] overheads [eg print and publications ; IT
to be taken              support ; communications etc] but it is too early to quantify what these may
                         amount to.

                         Scottish Opera (4% share £250k)
                         Scottish Opera predict 2009-10 total anticipated efficiency of £419k. This is
                         achieved through payroll savings, reduced overheads, fundraising and in-kind
                         sponsorship.

                         In 2010-11 Scottish Opera’s target is £516k, met through increased
                         overheads savings and overseas touring efficiencies.

                         7.2 What are the main actions that are needed to secure the delivery of
                         this efficiency improvement?
                         Actions are already in place to ensure savings are achieved. Actual outturns
                         will be regularly monitored against budgets.

8. Associated            8.1     Are there any development or redundancy costs associated with
costs                    the delivery of this efficiency?
                         There are not expected to be development or redundancy costs associated
                         with the savings identified.

9. Measurement           9.1     What are the inputs that will be measured?
                         The inputs are the actual outturns for 2007/08

                         9.2     What are the outputs that will be measured?
                         The number of performances put on and the audience numbers.

                         9.3     What is the baseline for inputs and outputs?
                         2007/08

10. Quality cross-       10.1 What quality indicators are being used to ensure that quality of
check                    service is maintained or improved?
                         Reviews of audience attendance figures, financial position and a
                         comprehensive evaluation process provide confirmation of quality of service
                         results.

11. Monitoring           11.1 What are the arrangements for monitoring the delivery of
                         efficiencies?
                         Monitoring will be undertaken by the sponsor division in close contact with
                         senior managers at the national performing companies.

12. Reporting            12.1 What are the arrangements for reporting the delivery of
                         efficiencies?
                         National Performing Companies will be required to provide the sponsor
                         division with regular update.

13. Dependencies         13.1 Explain if your efficiencies are dependent on legislation or other
                         structural changes being achieved.
                         Not dependent on legislation.



    216
                                                                  Permanent Secretary


14. Use of     14.1 How are the efficiencies released from improvement activity
efficiencies   being used to improve front-line services?
               This efficiency was assumed as part of the allocation made by the Scottish
               Government to the National Performing Companies. This freed up resources
               for Ministers to allocate to their priorities.




                                                                                    217
Permanent Secretary


1. Portfolio/Number/Name: Perm Sec - First Minister / 3 / Gaelic development bodies
2. Programme/Activity:
The Gaelic development bodies (Bord na Gaidhlig and the Gaelic Media Service) are working to meet
Ministers’ targets for Efficient Government. They will aim to achieve this through working to secure
shared services and co-location, and more efficient working practises.
This is a first draft and work is ongoing to identify further opportunities both shared and on an
individual basis.

3. Efficiency                                           2008-09          2009-10          2010-11
                 3.1 Target; £m
                                         Cash             1.195              8                8
                                                        2008-09          2009-10          2010-11
                 3.2 Efficiencies
                                         Cash             8.623             -                -
                  delivered; £m
                                         Time               -               -                -
4. Accountable Officer for delivery                   Permanent Secretary
5. Project Manager                                    Douglas Ansdell
6. EGDD Portfolio Manager                             Gerry Hendricks
7. Description of 7.1 What is the efficiency         improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Bord na Gaidhlig
taken
                       Co-location – co-locating with other body or bodies in Inverness to reduce rent
                       and associated costs. (£15k)
                       Shared services/procurement – as part of, or independent of, co-location,
                       savings to be found in specific contracts (IT and HR professional fees) as well
                       as potential to reduce consultancy costs. (£15k)
                       Printing costs – reduction or elimination of printing costs element of Corporate
                       Plan, Annual Report and other corporate documents. (£10k)
                       Translation – remit of new language officer will include in-house translations,
                       negating need to outsource this work. (£5k)
                       Press relations – non-appointment of planned Press Officer – work will be
                       covered by continuation of existing marking and PR contract, saving on salary
                       and on-costs. (£35k)
                       Grant-funding of public bodies – grant-funding to implement Gaelic Language
                       Plans by public bodies will achieve efficiencies by, for example, reducing
                       duplication of translations costs (signage, website terminology, forms etc.).
                       (15k).

                       Gaelic Media Services
                       Supply of services - GMS has agreed terms with independent suppliers of
                       specific programme genre to supply large volumes of programming on a fixed
                       price 4 year contract basis. These suppliers now have the security of long
                       term contractual arrangements which enables them to recruit staff as opposed
                       to engaging the freelance sector and employ equipment in the most cost
                       effective manner with the knowledge that there will be minimal downtime. The
                       genre selected are Sports/Sports News, Music/Light Entertainment,
                       Arts/Factual and Dubbing. GMS have estimated that the total saving from this
                       change of procurement practice is in the region of £5.4m per annum.
                       However, these savings are based on an unprecedented level of programme
                       commissioning for 2008-09 as GMS prepare for the launch of the Gaelic
                       digital service and we are advised this cannot be used to demonstrate
                       efficiencies from 2007-08 to 2008-09. The level of programme commissioning
                       in previous years was less and can safely be estimated at 20% of 2008-09
                       figures, demonstrating c. £1.100m of efficiency savings. We await accurate
                       2007/08 figures from GMS (£1100k).




   218
                                                                                  Permanent Secretary


7. Description of        7.2 What are the main actions that are needed to secure the delivery of
efficiency and actions   this efficiency improvement?
to be taken
                         Many of the initiatives rely on joint working/shared services.

8. Associated            8.1     Are there any development or redundancy costs associated with
costs                    the delivery of this efficiency?
                         There are no redundancy costs involved.

9. Measurement           9.1     What are the inputs that will be measured?
                         Tbc

                         9.2     What are the outputs that will be measured?
                         Tbc

                         9.3     What is the baseline for inputs and outputs?
                         2007/08

10. Quality cross-       10.1 What quality indicators are being used to ensure that quality of
check                    service is maintained or improved?
                         Tbc

11. Monitoring           11.1 What are the arrangements for monitoring the delivery of
                         efficiencies?
                         Monitoring will be undertaken by the sponsor division in close contact with
                         senior managers at the Gaelic development bodies.

12. Reporting            12.1 What are the arrangements for reporting the delivery of
                         efficiencies?
                         The Gaelic development bodies will be required to provide the sponsor
                         division with regular updates as part if their quarterly KPI reports.

13. Dependencies         13.1 Explain if your efficiencies are dependent on legislation or other
                         structural changes being achieved.
                         Not dependent on legislation.

14. Use of               14.1 How are the efficiencies released from improvement activity
efficiencies             being used to improve services?
                         This efficiency was assumed as part of the allocation made by the Scottish
                         Executive to the Gaelic development bodies. This freed up resources for
                         Ministers to allocate to their priorities.




                                                                                                 219
Permanent Secretary




    1. Director General/Number/Name: Perm Sec - First Minister / 5 /
                                  Major Events

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 6 /
                        International Development Fund

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 7 /
                              International Strategy

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 8 /
                                   Fresh Talent

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 9 /
                         Scotland’s International Image

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   220
                                                                        Permanent Secretary


    1. Director General/Number/Name: Perm Sec - First Minister / 10 /
                                    European Strategy

      Moved to list of efficiency projects with expected savings less than £0.5m
                              see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 11 /
                             National Archives of Scotland

      Moved to list of efficiency projects with expected savings less than £0.5m
                              see page 229 for information.




1. Portfolio/Number/Name: Perm Sec - First Minister / 12 / Historic Scotland



                                                                                       221
Permanent Secretary


2. Programme/Activity:
Historic Scotland’s efficiencies will be generated through three distinct strands of work
(see below at 7.1).

3. Efficiency                                             2008-09          2009-10          2010-11
                  3.1 Target; £m
                                           Cash              1.0              2.0             3.0
                                                          2008-09          2009-10          2010-11
                  3.2 Efficiencies
                                           Cash              1.4              -                -
                   delivered; £m
                                           Time               -               -                -
4. Accountable Officer for delivery                     John Graham
5. Project Manager                                      Laura Petrie, Director of Finance
6. EGDD Portfolio Manager                               Gerry Hendricks
7. Description of 7.1 What is the efficiency           improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   Procurement Efficiencies
taken
                        Income Efficiencies
                        Expenditure Efficiencies

                        7.2 What are the main actions that are needed to secure the delivery of
                        this efficiency improvement?
                        Procurement: HS already use the Scottish Government contracts and will
                        shortly complete the roll-out of e-procurement. These efficiencies will arise
                        through contract tendering.

                        Income: A series of reviews of the commercial areas in HS will be carried out
                        to deliver improvements in income generation. It does not arise from
                        increases in fees and charges.

                        Expenditure: There is a programme of best value reviews and continuous
                        improvement in place across the agency. For example efficiencies identified
                        include moving to online recruitment, online publication.

8. Associated           8.1 Are there any development or redundancy costs associated with the
costs                   delivery of this efficiency?
                        None subject to staff being redeployed

9. Measurement          9.1     What are the inputs that will be measured?
                        Procurement: Contract value. Old costs versus new.
                        Income: We have detailed visitor numbers and income data for all years.
                        Expenditure: There is a programme of best value reviews and continuous
                        improvement in place across the agency.

                        9.2     What are the outputs that will be measured?
                        Procurement: actual price compared to baseline price.
                        Income: Visitor numbers and spend per visitor.
                        Expenditure: actual cost compared to baseline cost.


9. Measurement          9.3 What is the baseline for inputs and outputs?



    222
                                                                             Permanent Secretary


                     2007-08 expenditure and income figures. There is detailed data on income
                     performance available.

10. Quality cross-   10.1 What quality indicators are being used to ensure that quality of
check                service is maintained or improved?
                     Procurement: Comparison of tender documentation to ensure that service
                     coverage and quality is maintained at or above original level.

                     Income: we have a number of visitor satisfaction measures which will be
                     monitored. These include visitor satisfaction surveys and mystery visits.

11. Monitoring       11.1 What are the arrangements for monitoring the delivery of
                     efficiencies?
                     The efficiency target will be a key performance target for the agency. It will be
                     subject to quarterly review by the Historic Scotland Board and reported to the
                     Efficient Government Delivery Division as required. The KPTs are validate by
                     Scottish Government Internal Audit and will also be scrutinised by Audit
                     Scotland.

12. Reporting        12.1 What are the arrangements for reporting the delivery of
                     efficiencies?
                     Quarterly reporting to HS Board and to the Efficient Government Delivery
                     Division as required.

13. Dependencies     13.1 Explain if your efficiencies are dependent on legislation or other
                     structural changes being achieved.
                     There are no obvious dependencies. We do need to agree specific definitions
                     for income efficiencies.

14. Use of           14.1 How are the efficiencies released from improvement activity
efficiencies         being used to improve services?
                     This efficiency was assumed as part of the allocation made by the Scottish
                     Government to Historic Scotland. This freed up resources for Ministers to
                     allocate to their priorities.




                                                                                                 223
Permanent Secretary



  1. Director General/Number/Name: Perm Sec - First Minister / 13 /
The Royal Commission on the Ancient and Historical Monuments of Scotland

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 14 /
                          Communications Directorate

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




    1. Director General/Number/Name: Perm Sec - First Minister / 15 /
                         Corporate Analytical Services

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   224
                                                                                   Permanent Secretary


1. Portfolio/Number/Name: Perm Sec - First Minister / 16 / Scottish Arts Council
1. Programme/Activity:
   Scottish Arts Council (SAC) Efficiency Delivery Plan

3. Efficiency                                              2008-09            2009-10           2010-11
                3.1 Target; £m
                                            Cash             0.912             1.824              2.736
                                                           2008-09            2009-10           2010-11
                3.2 Efficiencies
                                            Cash             1.045               -                 -
                   delivered; £m
                                            Time                -                -                 -
4. Accountable Officer for delivery                      James Tough
5. Project Manager                                       Myriam Madden
6. EGDD Portfolio Manager                                Gerry Hendricks
7. Description of 7.1 What is the efficiency improvement? How will the efficiencies be
efficiency and     made?
actions to be
                   There are a number of likely efficiency improvements which have been
taken
                      identified. As the bulk of funds under SAC management are distributed to third
                      parties, a major operational and reputational challenge for SAC is to share the
                      efficiencies requirement with funded bodies. The funding SAC provides to
                      organisations contributes directly to artistic outcomes and also leverages
                      funding from other sectors such as public, private and 3rd sectors.
                      Internal to SAC, a number of initiatives are underway. They include

                       (i)     optimising the use of staff resources to minimise backfill costs from the
                               attrition of permanent staff and to absorb additional activities without
                               increasing staffing levels and without recourse to additional funds.
                       (ii)    redeploying budget (and without recourse to additional budgets)
                               originally earmarked for the costs of the change process, to support
                               front-line service delivery and individual artists in particular This will be
                               managed without recourse to additional funds .
                       (iii)   increasing the re-cycle rate of grants awarded
                       (iv)    provision of governance and accounting services for another arts body
                       (v)     review of infra-structure such as IT and Telecomms to identify potential
                               efficiencies.

                      7.2 What are the main actions that are needed to secure the delivery of
                      this efficiency improvement?
                      As there is a portfolio of efficiency initiatives being identified, assessed and
                      progressed, the generic actions across all initiatives include;
                       • leadership and communication - externally to the sector and internally to
                           staff
                       • identification and assessment of initiatives for eligibility
                       • investigation of required actions for operational impact and development
                           of procedures
                       • monitoring and reporting of progress against targets




                                                                                                        225
Permanent Secretary


8. Associated         8.1     Are there any development or redundancy costs associated with
costs                 the delivery of this efficiency?
                      Detailed policy guidance in this area has been recent and at this point
                      development costs solely for the purpose of generating an efficiency saving
                      have not been identified, although efficiencies are anticipated from
                      improvements in IT infra-structure which were primarily intended to address
                      business continuity and security issues. Further consideration will be given to
                      development investments for future year efficiencies. SAC has consciously
                      slowed the rate of recruitment of permanent staff. Other longer-term structural
                      changes would be aligned with the transition to Creative Scotland.

9. Measurement        9.1      What are the inputs that will be measured?
                      As there is a portfolio of efficiency initiatives being identified, assessed and
                      progressed, inputs to be measured include;

                      •     Headcount
                      •     Staff time & expertise
                      •     Internal budgets
                      •     Systems and facilities
                      •     Funds awarded
                      •     Funds draw down rate

                      9.2      What are the outputs that will be measured?
                      As there is a portfolio of efficiency initiatives being identified, assessed and
                      progressed, outputs to be measured include;

                      •     Headcount
                      •     Additional activities and services
                      •     Service levels
                      •     Budget savings
                      •     Deliverables
                      •     Quality
                      •     Re-cycled funds
                      •     Re-deployed funds
                      •     Leveraged funds

                      9.3      What is the baseline for inputs and outputs?
                      As there is a portfolio of efficiency initiatives being identified, assessed and
                      progressed, the baseline period for the relevant inputs and outputs is 07/08.

10. Quality cross-    10.1 What quality indicators are being used to ensure that quality of
check                 service is maintained or improved?
                      SAC has put in place a Quality framework which was published, with
                      supporting guidance in May ’07. This has been integrated into new funding
                      agreements and an evaluation of the framework has been completed. Our
                      Plan for 09/10 includes the theme of ‘sustainability and resilience’ where we
                      will support key third party partners to deal with the recession and standstill
                      funding through incentivising change and efficiencies in order to maintain their
                      front line delivery.




   226
                                                                            Permanent Secretary


11. Monitoring     11.1 What are the arrangements for monitoring the delivery of
                   efficiencies?
                   As there is a portfolio of efficiency initiatives to be monitored, frequency and
                   detailed arrangements may vary across the particular initiatives. Where
                   possible, monitoring arrangements will leverage existing arrangements,
                   particularly in relation to funded bodies, in order to minimise the reporting
                   burden. Regular meetings are planned with the EGDD Portfolio manager and
                   Sponsor department to test for eligibility of initiatives and track progress. An
                   executive overview is also planned between the Accountable Officer and the
                   Sponsor Executive Manager.

12. Reporting      12.1 What are the arrangements for reporting the delivery of
                   efficiencies?
                   In line with the Scottish Government Formal Assessment process, a formal
                   reporting requirement has been set out. Quarterly out-turns are planned
                   (March, June, September and December) to be submitted to the EGDD
                   Portfolio Manager.

13. Dependencies   13.1 Explain if your efficiencies are dependent on legislation or other
                   structural changes being achieved.
                   Over the last number of years, SAC has been contributing to the transition to
                   the successor body, Creative Scotland. Shorter-term efficiencies have been
                   identified in relation to transition work, whereby SAC staff have delivered
                   services which otherwise would have had to be outsourced creating
                   incremental cost, and ongoing response to ministerial initiatives in terms of
                   redeploying resource to front-line services. It is anticipated that longer-term
                   structural efficiencies will be identified with the establishment of Creative
                   Scotland.

14. Use of         14.1 How are the efficiencies released from improvement activity
efficiencies       being used to improve front-line services?
                   Discussions are currently underway between the Accountable Officer and the
                   Sponsoring Department to explore priority areas to re-direct resources for
                   front-line delivery.




                                                                                               227
Permanent Secretary



    1. Director General/Number/Name: Perm Sec - First Minister / 17 /
                                 Scottish Screen

     Moved to list of efficiency projects with expected savings less than £0.5m
                             see page 229 for information.




   228
10. Efficiency Delivery Plans with expected savings less than £0.5m
We have decided to apply a minimum threshold to projects for which we publish
efficiency delivery plans. In future, although they will still be counted, we will not
publish full delivery plans for any project where the total saving in 2010-11 is below
£0.5m. The following table lists those projects that have fallen under the threshold
and gives detail of the savings each project will contribute to the overall targets.

  DIRECTOR GENERAL         Project              Project Title              Outturn   Year 2    Year 3
                          Reference                                        2008-09   2009-10   2010-11
  CROWN OFFICE AND        COPFS / 2   Future Office System : Phase 2         0.5       0.3       0.3
 PROCURATOR FISCAL
      SERVICE                                                      total     0.5       0.3       0.3
                             /3       Forth & Tay Road Bridges              1.02      0.25      0.35
     DG ECONOMY              / 18     Planning & Building Standards          0.0       0.2       0.3
                                                                   total    1.02      0.45      0.65
   DG FINANCE AND            /2       Scottish Public Pensions Agency       0.115     0.32      0.47
     CORPORATE
      SERVICES                                                     total    0.115     0.32      0.47
                             /1       Crofters Commission                   0.04     0.225     0.225
                                      Loch Lomond & the Trossachs
                             /3       National Park Authority               0.133    0.258     0.388
                             /4       Cairngorms National Park              0.12     0.183     0.275
                             /5       Deer Commission for Scotland          0.045    0.068     0.102
                             /7       Veterinary Surveillance               0.097    0.089     0.089
   DG ENVIRONMENT
                             / 11     Other Agriculture                     0.138     0.08      0.11
                                      Scottish Sustainable
                             / 13
                                      Development Forum                     0.032     0.04      0.04
                             / 16     Contract Research Fund                0.429      0.4       0.4
                                      Animal Health and Welfare
                             / 18
                                      Publicity                             0.02      0.02      0.02
                                                                   total    1.054    1.363     1.649
                                      International activity in Scottish
    DG EDUCATION
                             /15      universities                          0.044    0.315     0.373
                                                                   total    0.044    0.315     0.373

      DG HEALTH




                                                                                         229
                    Project                                              Year 1    Year 2    Year 3
DIRECTOR GENERAL
                   Reference   Project Title                            2008-09   2009-10   2010-11
                      /1       AIB                                       0.05
                      /2       Community Justice Service                  0.3      0.35      0.35
                               Scottish Legal Services
                      /5       Ombudsman                                0.259     0.375     0.375
                      /6       Fire Central Government                  0.116       0.3      0.45
                               Scottish Charity Appeal Panel
                      /8       Secretariat                              0.039     0.039     0.039
                               Office of the Scottish Charity
                      /9       Regulator                                0.072      0.07      0.07
                     / 25      Parole Board for Scotland                 0.01     0.056     0.084
                               Scottish Criminal Cases Review
  DG JUSTICE         / 26      Commission                               0.188     0.072     0.072
                               Criminal Injuries Compensation
                     / 27      Authority                                0.058     0.058     0.058
                     / 28      Victim Support Scotland                   0.05     0.175      0.24
                     / 29      Courts Group - Courts Directorate          0       0.243     0.243
                               Police Complaints Commissioner
                     / 30      for Scotland                               0        0.02       0.0
                     / 33      AiB Accommodation                                             0.09
                               Her Majesty's Inspectorate of
                     / 34      Constabulary for Scotland                                    0.172
                     / 35      MHTS Administration                                           0.25
                                                                total   1.142     1.758     2.493


                      /5       Major Events                             0.064     0.064     0.064
                      /6       International Development Fund            0.15      0.12      0.12
                      /7       International Strategy                   0.008      0.02      0.02
                      /8       Fresh Talent                              0.03      0.03      0.03
                      /9       Scotland’s International Image           0.072     0.072     0.072
PERM SEC - FIRST     /10       European Strategy                         0.04      0.04      0.04
   MINISTER          / 11      National Archives of Scotland            0.169     0.158     0.158
                               The Royal Commission on the
                               Ancient and Historical
                     / 13      Monuments of Scotland                    0.252     0.144     0.216
                     / 14      Communications Directorate               0.142     0.138     0.138
                     / 15      Corporate Analytical Services            0.068     0.123     0.174
                     / 17      Scottish Screen                          0.215     0.128     0.192
                                                                total    1.21     1.037     1.224




230
May 2010

								
To top