Agenda item

The Commission considered a report of the Director of Corporate Resources, the purpose of which was to provide a summary of the performance reported to the Joint Committee of East Midlands Shared Services for 2024/25 and an update on progress against strategic priorities in 2025.  A copy of the report marked ‘Agenda Item 11’ is filed with these minutes.

Arising from discussion, the following points were made:

(i)               Members welcomed the report noting the positive performance achieved over the last year.  It was noted that best practice from the private sector had been considered and similar approaches adopted where appropriate to drive improvement across the Service. 

(ii)             In response to questions raised, the Director confirmed that the Service offered an early payment option in return for a small rebate which helped suppliers but also generated a small income for the Council.

(iii)            The ‘no purchase order, no pay policy’ had now gone live.  This placed the onus on suppliers to ensure their invoices were valid.  If found to be invalid, invoices were now simply rejected which had cut down on unnecessary administration. Having to raise a purchase order for all invoices also now allowed for closer monitoring to ensure compliance with internal spend controls.

(iv)           A Member queried the requirement to pay suppliers within 30 days which seemed extremely short compared to other sectors.  It was noted that it was a legal requirement for councils to pay ‘trade suppliers’ within 30 days. Whilst the Service managed other types of payments such as benefit payments and pension payments which fell outside this statutory requirement, the same approach was adopted so far as possible.

(v)             A Member referred to past difficulties experienced in communicating with Nottingham City Council and delays in the undertaking of annual audits which it was responsible for.  It was noted that the situation had improved and whilst it had been a difficult year, the audit for 2023/24 had been completed and the audit planned for 2024/25 was due to start later in September. 

(vi)           It was questioned whether low feedback figures from staff indicated general contentment with the service and systems operated.  The Director confirmed that whilst that might be the case, this could not be presumed and so requests for feedback continued to be raised with senior managers and heads of service across Nottingham City Council and the County Council.  It was considered important to encourage staff to engage and provide feedback.  This ensured development of the service to continue to meet both organisations changing needs.

(vii)          The introduction of AI meant reporting was now automated utilising fusion analytics data. This used to be a labour intensive and time consuming task that could now be completed much more efficiently. The validation and receipting of invoices had also been automated.  A Member questioned if this might result in a reduction in staffing.  It was noted that at present the focus had been on building capacity, enabling staff to work on other areas and deliver new opportunities without additional resources being required.  AI and automation had delivered wider benefits too like improved accuracy, improvement in the customer experience and the implementation of more timely processes. 
 

(viii)        It was noted that a training program had been introduced to support all staff in utilising AI systems such as Microsoft co-pilot.  This assisted in improving communications, and standardising processes.  Oracle guided learning had also been used to provide on-screen prompts and real time guidance for staff.

(ix)           Regarding the possible effect of local government reorganisation, it was noted that the Service did face some challenges, but as existing unitary authorities still had high transaction levels across service areas not currently provided through EMSS there would be opportunities for expansion.  Members noted that a dedicated project team had been established to consider the likely areas of impact from LGR so that processes could be established early to manage these.

(x)             Oracle Fusion provided a managed support service across its systems.  During a period of stabilisation following implementation this had not performed as expected.  An additional post to manage the contract had therefore been introduced and a reduction in cost had been negotiated with Oracle for its support services over an extended period. 

RESOLVED:

That the performance of East Midlands Shared Services for 2024/25 and the progress made against strategic priorities in 2025 be noted.