The SOLGM guide on s17A reviews

Raymond Horan, Manager, Sector Improvement

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What’s this presentation• A heads-up on the content of the

guide

• A road-testing of ideas

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What is a s17A review

“periodically assess the cost-effectiveness of current arrangements for meeting the needs of communities for good quality (services)”

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The s17A review - purpose• An outcome of the “Efficiency

Taskforce”

• A spur to seek efficiencies and to talk to others

• Not a requirement to contract out, form CCOs etc

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“Cost-effectiveness”

“Least cost consistent with the achievement of the objectives for delivering the service”

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A couple of other ‘preliminaries’

• There is no legislative ‘stick’ – but non-compliance has risks

• The process is open to you (barring some minima)

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Some reminders• First reviews must be completed

by August 2017• Circumstances may dictate

earlier review• There may be statutory options

- but you may need to consider others

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What’s a service ? • Starting point – what’s an activity for

LTP purposes

• Bulk like activities together e.g. water and wastewater

• There will be exceptions

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Developing a review programme 1. Identify triggers

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Triggers• Significant change to levels of

service• Expiration of a contract within

two years• Expiry of the last review (i.e. its

been six years)

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Out clauses - consider• Cost of the review• Cost of the service• Elapsed time since the last

review• Changes in environment since

the last review• Effectiveness of current

arrangements• Capacity gains or losses

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource6. Identify initial priorities

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Developing a review programme 1. Identify triggers

2. Stocktake previous reviews3. Group like services together4. Talk to your neighbours5. Identify resource6. Identify initial priorities7. Seek political input and refine

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Undertaking a review1. Gather background information2. Determine review objectives

and scope3. Select review agents4. Perform the analysis5. Document the analysis

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Background info• Mostly common sense – costs,

current arrangements etc

• Don’t forget the rationale for delivery, and non-financial performance

• What about customer and stakeholder views?

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Determining scope• The place for ‘scaling’ the review

and doing the B/C analysis

• Knock out the impractical options – but document why

• Engagement?

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Review agent• Who does the review?

• What skills and knowledge does the review need?

• Is the review best conducted by an independent person?

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Analysis• Costing – robust, but precision

not required

• Refinement ?

• Benchmarking

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Documenting • Use a common approach

• SOLGM has developed a template and a working paper

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For more information on SOLGM visit

www.SOLGM.org.nz