MAKING SAVINGS – CAN ‘CUTS’ BE AVOIDED?

Listed below is a self assessment questionnaire to help managers and auditors review whether actions, other than core service provision reductions, can be made to reduce net costs and therefore reduce the burden on taxpayers. Such a questionnaire would normally be used alongside other information, such as local knowledge and comparisons with similar organisations. The list is not intended to cover every individual set of circumstances. Rather it is designed to provide a prompt to areas of further investigation and possible management action. Any actions must of course be taken in line with the decision making rules and requirements of the manager’s own organisation.

A. INCOME

Has increasing charge levels and/or the range of charges made been considered
Can you increase the number of users of (profitable) services
Has all income due actually been collected and is collection prompt
Has a review of policy on concessions currently given been carried out
Are unprofitable ‘traded’ services known and is action being taken to correct/discontinue them
Are all recharges made and do they reflect the true cost to your organisation
Can grants be obtained or alternative sources of funding/donations be found
Can income collection administration costs be lowered without reducing collection effectiveness and security

B. APPROPRIATENESS OF SERVICES PROVIDED AND THE LEVEL OF PROVISION

Do you have a statutory requirement to provide the services? Do you provide these to more than the statutory level required
Are services provided as a result of the organisation’s own overall policy? Do you provide services to more than the level of the current policy
Are services provided at local discretion? Is your service provision above local policy and/or has the local policy been reviewed/reconfirmed periodically
Are the beneficiaries of (free or subsidised) services those that the policy is actually aimed at assisting
Has surveying/consultation with service users (and non users) confirmed that services provided are appropriate and your resources are being directed well
Can the same or similar service be delivered in some other (less expensive) way
Can any part of a service provision be done by all/some service users themselves relatively easily
Can the outcome desired of a service be achieved in some other way
Is the level of management and administrative support appropriate to that needed by the main services provided (but don’t cut necessary direction and controls!)
Do all major elements of work being undertaken by staff and contractors clearly link back to your organisation’s service provision objectives or needs
Does your service provision level and care for staff protect you from potentially successful liability claims

C. REDUCE STAFF COSTS

Is your full time/part time/overtime mix right
Are your temporary/casual staff costs high? Should permanent staff absences, especially sickness and vacancy levels, be monitored and explained more closely
Are staff’s job content in line with the grades they are being paid at
Is staff performance monitored regularly? Are targets being achieved and can productive time levels be increased
Can methods of working be improved so that staff work ‘smarter’
Can equipment and/or technology be used to better effect
Is the need for a post and its job content/grade reviewed when vacancies occur
Are overheads, such as accommodation and transport costs incurred by staff, high? Can they be reduced

D. REDUCE PURCHASING COSTS

Is the need to purchase and the quantity of purchase adequately reviewed
Have cheaper suppliers been sought
Are cheaper products of an acceptable quality available
Can you take more advantage of bulk purchasing rates
Are the services of ESPO used to reduce product and administration costs
Would you be better to hire or lease rather than purchase
Can you reduce your materials costs by using what you have more efficiently and cutting down on waste

E. UTILITIES AND STATUTORY CHARGES

Have you checked your consumption levels against those expected, to ensure no mischarges have been made or recharges by you have not taken place
Have you checked that you are on the best tariff for your particular circumstance
Can consultant advice be taken to reduce utility costs on a share of savings basis
Have you checked you are making the best use of VAT and rating concessions

F. THE FORM OF YOUR SUPPLY OF SERVICES.

Have you reviewed it against the use of :-

Your own in-house staff/resources
Support services provided by the organisation’s own staff
Contracted private sector suppliers
Service agreements with voluntary organisations
Service agreements with partners or partnerships

G. REVIEW OF ASSETS

Are your stock levels higher than you need
Are other methods of having replacement stock quickly available open to you
Are you storing stock/equipment that is now of no value to you? Can it be sold on
Is your usage of plant, equipment and computing aids economic and efficient
Are your vehicle/plant repairs and maintenance bills high suggesting replacement is a better financial option
Are you holding land, buildings and/or vehicles that are surplus to your current and expected needs? Should they be declared surplus/sold
Can assets be better protected so that repair/insurance payments are reduced

MAKING SAVINGS – CAN ‘CUTS’ BE AVOIDED?

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