tuesday 14th july 2015 10:00 14:00 nwssp hq, …

1

MINUTES OF THE SHARED SERVICES PARNTERSHIP COMMITTEE (SSPC)

TUESDAY 14TH JULY 2015 10:00 – 14:00

NWSSP HQ, BOARDROOM

Present:

**VC – Denotes participation via video conference

Attendance Designation Location

Amanda Matthews (AM) Secretariat NWSSP

Jacqui Maunder (JM) Head of Corporate

Services NWSSP

Lisa Williams (LW)

(agenda item 6)

Service Improvement and

Development Manager NWSSP

Paul Thomas (PT)

(agenda item 6)

Director of Employment

Services NWSSP

Russell Ward (RWa)

(agenda item 7)

Interim Head of Accounts

Payable NWSSP

Attendance Designation Health Board/Trust

Margaret Foster (MF) Chair NWSSP

Neil Frow (NF) Managing Director NWSSP

Chris Lewis (CL)

Interim Director of

Finance Cardiff and Vale ULHB

Huw George (HG)

Deputy CEO /Director of

Finance Public Health Wales

Rob Williams (RW)

Board Secretary

Representative Cwm Taf LHB

Nia Williams (NW)

Executive Project

Manager Hywel Dda LHB (*VC)

Angela Towndrow (AT) Assistant Director of

Finance Betsi Cadwaladr UHB (*VC)

Stephen Harrhy (SH) Corporate Director / Chief

Ambulance Commissioner Cwm Taf/EASC

Paul Gilchrist (PG)

Assistant Director of

Finance ABMU LHB

Andy Butler (AB) Director of Finance NWSSP

Hazel Robinson (HR)

Director of Workforce and

OD NWSSP

2

No. Minute Action

PRELIMINARY MATTERS

WELCOME AND INTRODUCTIONS

1.

The Chair welcomed everyone to the July Shared Services

Partnership Committee Meeting.

APOLOGIES FOR ABSENCE

2.

APOLOGIES & WELCOME

Apologies of absence were RECEIVED from:

Alan Brace Deputy Chief Executive/Director of

Finance, Aneurin Bevan Member

Steve Elliot Deputy Director of Finance, Welsh Government

Jayne Jackson Regional Manager, Unison

Eifion Williams Director of Finance, ABMU

Rebecca Richards Director of Finance, Powys Teaching HB

Steve Ham Acting Chief Executive, Velindre NHS Trust

DECLARATIONS OF INTEREST

3. No declarations of interest were received.

UNCONFIRMED MINUTES OF THE MEETING HELD ON 20TH MAY 2015

4. The minutes of the meeting held on the 20th May were AGREED as a true and accurate record of the meeting.

MATTERS ARISING

5. Health Courier Service (HCS) Transport Group – NW confirmed that Helen Evans would be the representative from Hywel Dda for the HCS Transport Group. AM to send NW the contact details for Tony

Chatfield, Head of Operations, HCS.

AM

SERVICE REVIEWS

DEEP DIVE – EMPLOYMENT SERVICES

6. The presentation from the Employment Services Directorate was

RECEIVED.

Mr P Thomas (PT), Director of Employment Services presented an overview of the work undertaken and the changes in Employment Services since his last presentation to the Committee in October

2013. The key areas highlighted included service improvements that had been outlined within NWSSP’s Integrated Medium Term

Plan 2014-2017, many of which had now been delivered and were already having a positive impact on the quality and cost effectiveness of the service being provided. These service

developments included:

3

The introduction of the e-DBS process. This has reduced this aspect of the recruitment process from 50+ days to 7 days

The overall recruitment process has on average reduced

from 117 days to 62 days Introduction of a fastrack process for internal appointments

Introduction of a customer helpdesk to deal with recruitment queries with a 98.6% satisfaction rate

Proactive benchmarking work which identified NWSSP cost

per payslip was favourable in comparison with others organisation identified in the KPMG Local Authority

Benchmarking report and the CIPFA benchmark targets Improved security measures which have achieved a

substantial assurance rating of A* from the UK Visas and

Immigration (previously known as the Border Agency) Significant processing savings from the introduction of the e-

expenses system Successfully managing the implementation of the pay awards

in early 2015

The Committee noted the proactive work undertaken by NWSSP to

help reduce the recruitment times and recognised that there were further opportunities that could be taken to reduce the timelines

further. PT reported that 85% of health board managers were taking longer than 3 days to shortlist (53% were more than 10 days) and that 68% of managers were taking longer than 3 days to

inform NWSSP of successful candidates (43% were taking more than 10 days).

PT advised that NWSSP were issuing monthly statistical reports to Directors of Workforce outlining local performance and had also

recently visited Cwm Taf UHB to support them in reviewing recruitment procedures in an attempt to drive efficiencies through a

partnership approach. PT advised that the employment services team were also reviewing

the NHS jobs system and were working hard to ensure that it was compliant with the requirements of the Welsh Language standards.

It was noted that the employment services team had been required to strike a balance between capacity and demand when

managing recruitment activity. It was noted that NWSSP were dealing with 500 whole time equivalent posts per month in June

2012, compared with 1,902 per month in June 2015. This 40% increase in workload was attributed to be an outcome following the publication of Francis report and the Andrews report in which a firm

emphasis was focused on filling clinical posts; and was also attributed to a high number of internal staff movements.

In line with NWSSP’s Integrated Medium Term Plan 2015-2018, the Committee were supportive of plans to procure a new performance

management system to run alongside NHS Jobs that would address demand from health boards for an improved system to be

introduced. Such a system would enable robust business intelligence including 24/7 monitoring of activity, management

4

information for medical and non-medical posts, would have interoperability with data on clinical posts and VPD.

SH queried how the savings achieved to date compared with those outlined within the IMTP and PT confirmed that the savings

achieved exceeded those stated in the plan. PT advised that the new system would streamline processes, be

more efficient and support managers who were required to manage large volumes of applications by proving smart. Intelligent business

information that would assist them in short listing. The Committee thanked PT and LW for the informative presentation

and noted that it had provided them with assurances on the proactive steps being taken by NWSSP. The Committee agreed to

support the proposed recruitment support system and advised that there needed to be pace behind the implementation. AB noted following the approval of the Committee a capital bid for the

management support system would be put forward to Welsh Government and a procurement exercise would be undertaken.

The Chair encouraged Committee members to share the

information learnt from the Recruitment presentation to their local teams and Committees.

The Committee RESOLVED to:

NOTE the content of the presentation, ENDORSE the approach being taken and AGREE to support the introduction of a new recruitment

management system

ACCOUNTS PAYABLE

7. The Accounts Payable report was RECEIVED.

Russell Ward, Interim Head of Accounts Payable provided the

Committee with an update on the progress of the key deliverables planned for the Accounts Payable function during 2015-16. It was noted that RWa had previously been employed with another

government organisation and has extensive experience in managing accounts payable call centres and reviewing and

streamlining processes to provide efficiencies. RWa outlined the planned activities which included a re-structure, review of accommodation/reduction of sites, improvements to Public Sector

Payment Policy (PSPP), a process review which would embrace new technology, and reviews of financial control, benchmarking and the

process for new supplier set up. It was noted that these measures would result in improved performance and efficiencies and help improve PSPP performance.

The report providing an update on activities within the Accounts

Payable team was received and it was noted that they were developing e-transactions to improve the service currently provided. The team were processing 1.5 million invoices per annum

5

and 55% were processed electronically and 45% manually. A new Optical Character Recognition (OCR) system upgrade was being planned and a contact centre with a dedicated “Query team” was

being introduced in August 2015 to track and trace all of the calls being made to accounts payable, following feedback from health

boards that support was required. The management of supplier records was being centralised and all supplier records would be dealt with in a centralised team based in St Asaph, North Wales.

The accounts payable team were testing a new two way match

workflow in which invoices were sent directly for approval which would need to be piloted in the Health Boards prior to considering it as a standard approach going forward. Cardiff and Vale and Public

Health Wales agreed to participate in a pilot to test the suggested new workflow.

RWa advised that the accounts payable team were developing the e-transaction processes to improve the service currently provided.

The team currently process 1.5 million invoices per annum, with 55% processed electronically and 45% manually. A new Optical

Character Recognition (OCR) system upgrade was being planned and following feedback from health boards that support was

required, a contact centre with a dedicated “Query team would be introduced in August 2015 to track and trace all of the calls being made to accounts payable. The management of supplier records

was being centralised and all supplier records would be dealt with in a centralised team based in St Asaph, North Wales.

The Committee held further discussions on PSSP and the issues faced with the current number of invoices on hold and the

challenges in the consistency of approach across health boards and trusts due to each organisation having their own local processes. It

was suggested the potential for introducing a consistent approach should be discussed with Directors of Finance (DOFs) in an attempt to identify all of the different variations and agree a standardised

approach going forward.

RWa advised that systems would be improved through proactive collaboration with Procurement teams, internal audit and Finance teams across NHS Wales. He advised that historically, three way

matching of invoices had been the preferred approach, however the future could mean two way matching of invoices. The accounts

payable team were testing a new two way match workflow in which invoices were sent directly for approval which would need to be piloted in the health boards prior to considering it as a standard

approach going forward. CL advised that Cardiff and Vale could participate in a pilot and HG from Public Health Wales also agreed

to pilot the workflow. ACTION: HG/CL to contact RW.

NS advised that lessons had been learnt from the R12 issues in the

past and that NWSSP would take this into account when reviewing future systems and processes.

6

SH advised that Finance departments would need to agree change their local practices to enable further efficiency savings to be

delivered. The committee agreed. Discussions were held around the Procurement Working Group led

by the Assistant Directors of Finance Group and AB agreed to send the ToRs of the group to AT.


NOTE the update in the Accounts Payable department.

REVIEW OF OPERATIONAL PRODUCTIVITY OF NHS PROVIDERS

8. The report on the “Review of operational productivity of NHS

providers” was RECEIVED. Mr N Frow presented the Department of Health’s independent

report led by Lord Carter of Coles on the review of operational productivity in NHS hospitals in England. A number of the areas

highlighted within the report related to NHS Wales. NF advised that he had met with Dr Andrew Goodall, Chief Executive of NHS Wales and they had discussed the Carter report and possible ways of

NWSSP taking forward any learning points forward from the interim recommendations on workforce, hospital pharmacy and medicines,

estate management and procurement. The Committee were supportive of NWSSP helping take forward any

learning points from the report and agreed that NWSSP should liaise with the relevant groups within NHS Wales.

The Chair advised that the recommendations would need to be analysed in some detail as the financial costs across NHS England

were not a direct comparison with those in NHS Wales

NF confirmed that NWSSP would liaise with the Directors of Planning, Directors of Workforce and Organisational Development

and Directors of Finance, the Heads of Medicines Management and Chief Executives.


NOTE the interim recommendations AGREE to NWSSP working with the various health board

peer groups to review and take forward any applicable

recommendations within the report.

KPMG REPORT – ADMINISTRATIVE COST REVIEW

9. The KPMG report on “Welsh Local Authorities” Administrative Cost

Review was RECEIVED.

NF presented the KPMG report on the administrative cost review for Welsh Local Authorities and advised that Welsh Government were reviewing the Local Government Structures in Wales as part of a

broader programme of work looking at reform, and KMPG’s were

7

1 Green Paper – Our Health, Our Health Service - http://gov.wales/docs/dhss/consultation/150703gpconsulten.pdf

commissioned to help support this area of work which included some benchmarking performance in a number of back office and support areas.

The Committee discussed the implications for NWSSP with regards

to expanding its current role and reference was made to the Williams Review together with the existing position of NWSSP in the current landscape following the publication of the Green Paper

“Our Health, Our Health Service”1 released by Welsh Government on 6th July which was out for consultation until November 2015.

The Chair sought guidance from committee members on how NWSSP should respond to the Green Paper on behalf of the

Committee and stated that there were issues that needed to be considered, however there was also a need to be objective when

responding. It was agreed that the Chair and Managing Director would provide a response on behalf of NWSSP. NWSSP would also prepare a briefing (through Board Secretaries) for health bodies

who may wish to take it into account when drafting their individual responses.


NOTE the KPMG Administrative Cost Review

RESPOND to the consultation on the Green Paper “Our Health, Our Health Service” on behalf of the Committee and

share with Board Secretaries and health boards.

HEALTH PROFESSIONAL EDUCATION INVESTMENT – VALUE FOR MONEY

10. The report on Health Care Professional Education Investment was RECEIVED.

Mr A Butler highlighted that the tuition fees in Wales were now

lower than in England which represented significant value for money and meant that more nursing places could be commissioned

in Wales. It was also noted that the attrition rates in Wales were better than

those in England and Scotland. AB also reported on the analysis of costs, results and impact of the recent campaign led by NWSSP

WEDS to target return to practice. The Committee RESOLVED to:

NOTE the report.

FOR APPROVAL

ANNUAL REVIEW 2014/15

11. The draft Annual Review 2014-2015was RECEIVED.

http://gov.wales/docs/dhss/consultation/150703gpconsulten.pdf

8

Ms J Maunder presented the draft Annual Review 2014-2015 for approval by the Committee. JM further advised that due to the timing of the Committee meeting there were still a number of

minor presentational changes that would be made to the document and this would give members additional time to make any

comments and changes to the report. Committee members agreed to send in a further comments and amendments by the 31 July 2015.


APPROVED the draft Annual Review 2014-2015 subject to

minor adjustments.

HEALTH AND SAFETY ANNUAL REPORT (AB)

12. The Health and Safety Annual Report 2014-2015 was RECEIVED.

Ms J Maunder provided the Committee with an update on the progress made with health and safety within NWSSP during the

period of April 14 – March 15. NF reiterated to Committee members the agreement that health

bodies made when NWSSP was first established; Health Boards and Trusts would continue to be responsible for providing a safe

working environment for NWSSP staff who continued to utilise accommodation at their sites / buildings. NF noted that a recent incident at one of the stores had identified that some health and

safety issues were not being addressed as quickly and this was a cause for concern.


APPROVE the Health and Safety Annual Report 2014-2015

PROJECT UPDATE

ELECTRONIC STAFF RECORD (ESR) 2 UPDATE

13. Mrs H Robinson provided a verbal update on Electronic Staff Record

(ESR) 2 developments. She advised that the transition process had started between Mckesson and IBM and the phased approach would

be completed by the end of August 2015 when IBM would fully take over.

HR advised that numerous workshops has been undertaken with IBM, NHS Wales Informatics Service (NWIS) and the Workforce

Information Systems (WfIS) team to develop and design the new interface, email updates and an enhancement plan. HR provided assurances to the Committee and advised that NWIS would fully

support ESR2 in partnership with health boards and trusts to ensure the system will be fit for purpose.


NOTE the verbal update on ESR2

9

GP SPECIALIST TRAINING UPDATE

14. Mrs H Robinson provided a verbal update on the GP Specialist Trainees pilot project. HR advised that phase one of the move of

GPs to NWSSP as a lead employer was completed. HR confirmed that given the successful of the pilot and the Minister had agreed for NWSSP to become the lead employer for all GP trainees.

HR confirmed that the phased approach had gone very well and the

programme had evaluated very positively across the GPs. The Committee RESOLVED to:

NOTE the verbal update on GP Specialist Training.

PRUDENT PROCUREMENT UPDATE

15. Mr N Frow provided an update on Prudent Procurement Group and he advised that Paul Buss, Medical Director, Aneurin Bevan Health

Board had been in discussions with clinical colleagues across Wales to secure appropriate membership for the group. NF also confirmed that following support from the Committee to transfer the Surgical

Materials Testing Laboratory (SMTL) to NWSSP he had formally written to Paul Roberts, Chief Executive, ABMU.

NF advised that NWSSP had also attended a Welsh Government workshop which was looking at various options with regard to

improving innovation and access to medical technologies in Wales. NF further explained that this directly linked into the work that

NWSSP and SMTL were undertaking on prudent procurement agenda.


NOTE the update on Prudent Procurement.

GENERAL BUSINESS/DISCUSSION

CHAIRMAN’S REPORT

16. The Chair provided a verbal update providing information in respect

of a number of visits and meetings held over the recent weeks. The Chair highlighted a meeting with NHS Business Services

Authority (NHSBSA) in England in which they discussed “Project Pacific” which benchmarked services and reviewed services

including patient and customer eligibility, management information on dental work, medicines optimisation and claims management.

MF advised that a lot of the work they were undertaking was already being undertaken in NWSSP. The Chair advised that it was

agreed that Project Pacific would benchmark with NWSSP and it was noted that work was ongoing in terms of dental audit and the increase in automated checks. It was also noted that the NHSBSA

had complimented NWSSP on its innovative approached to prescription pricing.

10

The Chair updated the Committee on an internal audit review that had been put in place to look at concerns raised with regard to an

old Welsh Health Supplies fresh fruit and vegetables contract that had operated between 2010-2014. Members were reassured that

NWSSP management were taking the matters raised seriously and had commissioned an internal audit review to be undertaken as a matter of priority. It was also noted that the contract had been

retendered in October 2014 and improved arrangements were now in place.

The Chair advised that once the review was complete a report would be presented to the Audit Committee.


NOTE the update.

MANAGING DIRECTORS REPORT

17. Mr N Frow provided a verbal update on key issues affecting the organisation.

NF advised that he and the Director of Primary Care Services were due to meet Welsh Government officials to take forward concerns

that had emerged following the announcement that the main Primary Care administration/payment support system used within NHS Wales was being outsourced by the Department of Health

(England) to Capita. NF confirmed that unlike the approach taken with other systems such as NHS Jobs and ESR NHS Wales had not

been involved in the procurement or specification process. NF explained that the changes could have significant implications and that it was vitally important that the implications and options were

understood. NF confirmed that he would keep the Committee updated on progress at the next meeting.

NF advised that there was a £6million additional gap for the Welsh

Risk Pool and that Welsh Government had yet to confirm £75million as no additional monies were likely to be received from Welsh Government.

NF confirmed that NWSSP had appointed a Welsh Language Officer

due to start on 20th July 2015 to support NWSSP in complying with the requirements of the Welsh Language standards set by the Welsh Language Commissioner. NF also confirmed that the Senior

Management Team and the Chair had committed to embarking on a basic Welsh language competency course to assist them in using

Welsh phrases in the working environment. The Committee RESOLVED to:

NOTE the update.

FINANCE AND PERFORMANCE REPORT

18. Mr A Butler presented the Finance and Performance report and

11

updated the Committee on the key message in relation to the financial position and performance indicators (KPIs) were RECEIVED.

In presenting the report AB provided a summary of performance

rates against the KPIs and highlighted the high level of achievement in respect of the KPIs. He also highlighted that additional savings were being achieved by some services and his

finance team were reviewing the impact on the forecast outturn and the distribution to NHS bodies and Welsh Government. He also

noted that the 2015/16 Welsh Risk Pool financial forecast outturn (full year out-turn) was estimated to be £81m which was £6m greater than the allocation due to be received from Welsh

Government. As a result the risk sharing agreement was likely to be invoked and AB referred members to the expected contributions

which were set out in the report. HR provided an update on the Workforce matters and advised that

an internal administrative bank had been established which was a first point of contact when recruiting support staff to avoid agency

costs. She also advised that following the implementation of pay progression, all of the Performance and Development Review

(PADR) dates would need to be realigned with incremental dates. The Committee RESOLVED to:

NOTE the performance report and in particular the expected

contributions required in line with the Welsh Risk Pool risk sharing agreement.

WELSH RISK POOL FINANCIAL POSITION

19. The report on the Welsh Risk Pool – Financial Position was

RECEIVED.

Mr A Butler presented the report on the financial position and provided an update on the financial performance of the Welsh Risk

Pool as at Month 2 and confirmed the forecast out-turn for 2015/2016.

NF advised that the Welsh Risk Pool Committee on 13 July 2015 had discussed a review of the guidance around the indemnity

arrangements and it was agreed that they would be circulated for consultation and would be presented to the Shared Service Partnership Committee for approval in September.


NOTE the report.

CORPORATE RISK REGISTER - JUNE 2015

20. Members of the Committee RECEIVED the Corporate Risk Register. Mr A Butler provided an update to the Committee and highlighted

the current two red risks on the register.

AB

12

The Committee agreed that the matters concerning the Fresh Fruit and Vegetable Contract should be added to the register .


NOTE the report.

END OF YEAR INTERNAL AUDIT OPINION

21. The report on the End of Year Internal Audit Opinion was RECEIVED.

Mr A Butler presented the report on the end of year internal audit opinion and advised that NWSSP had been given an overall

“reasonable assurance” rating and that arrangements to secure governance, risk management and internal control, within the areas under review were suitably designed and applied effectively.

It was also noted that over 90% of the internal audit review

undertaken had been provided with substantial or reasonable assurance ratings.

The Committee confirmed it was a pleasing report and provided very good assurance.


NOTE the report.

AGENCY NURSE UPDATE

22. The report on the Agency Nurse Update was RECEIVED.

Mr A Butler highlighted that the contract for the supply of agency

nurses was awarded from 1 March 2015 initially for one year, with an option to extend for a further year.

AB advised that Paul Roberts, Chief Executive ABMU, had previously tasked DoFs to produce a plan which would deliver

savings in agency expenditure. AB advised that following this he had set up a group with representatives from health boards to review the impact of Agency costs in 2014/15 and the overall

financial position. AB also noted that Marie-Claire Griffiths, had been appointed as a dedicated project manager to support this

work. AB further explained that the group would produce a short, medium and long term action plan. HR was concerned with the number of groups looking at this area and the Committee agreed

that there needed to be a focus on making sure that there was no duplication of effort. It was agreed that a project structure would

be produced by Marie-Claire Griffiths and discussed with the all Wales Workforce & OD Directors group.


NOTE the report.

13

HOME OXYGEN

23. The report on home Oxygen was RECEIVED

Mr N Frow advised that the Home Oxygen Service National Framework Agreement was let by the Department of Health in 2010 on behalf of ten regions in England and Wales and the

Department of Health were currently finalising a revision of the National Framework to be incorporated as part of an extension to

December 2017. Following discussions with Welsh Government officials NF confirmed that Welsh Government were in the process of extending the contract with Baywater Healthcare before

transferring the Home Oxygen Framework contract across to NWSSP to manage on behalf of NHS Wales. It was reported that

following a review by Procurement Services there was a possibility of restructuring the contract which could lead to a possible rebate of £1million and further work was ongoing to take this forward.

Given the changes to the contract a new governance structure and terms of reference would be introduced.


NOTE the report. SUPPORT the transfer of contract management

arrangements to NWSSP NOTE the potential VAT savings back to health boards ENDORSED the proposed governance structures

ITEMS FOR INFORMATION

NATIONAL PROCUREMENT SERVICE UPDATE (NPS)

24. Mr N Frow provided an update on the development of the National Procurement Service (NPS) and provided the Committee with a

copy of the NPS communiqué for June 2015.


NOTE the update report on the progress being made by the

NPS.

VELINDRE NWSSP AUDIT COMMITTEE FOR SHARED SERVICES HIGHLIGHT REPORT

25. Members of the Committee RECEIVED the report.


NOTE the content of the report.

WFIS MINUTES

26. Members of the Committee RECEIVED the minutes from the WfIS Programme Board meeting held on 21st January 2015.


14

NOTE the contents of the minutes

OTHER MATTERS

ANY OTHER URGENT MATTERS ARISING

26. No other urgent business was declared.

FUTURE MEETINGS

The Committee agreed that future meeting dates should alternate from a Tuesday to a Thursday to aim to achieve better attendance

from health boards/trusts across NHS Wales.

Date of Next Meeting: 15th September, Boardroom, Charnwood Court, Nantgarw

Proposed Future Meetings 19th November 2015

19th January 2015

tuesday 14th july 2015 10:00 14:00 nwssp hq, …

Documents