Delivering increased value for money
- rosschirnside
- Apr 23, 2018
- 2 min read
Twenty-Five years ago I completed the dissertation for my honours degree in Accountancy.
Little did I know that my interest in public sector finances would be of benefit some many years later.My dissertation was titled “Value for Money auditing by the National Audit Office: Does it deliver value?”
Fast forward to 2018 and I am the lead analyst on Auckland Councils value for money programme.
In a New Zealand context, the Council is a significant organisation employing over 10,000 staff, annual revenue of $3.2bn and a capital programme of $25bn over the next 10 years.Auckland is also suffering growing pains with infrastructure not keeping pace with population growth and a mayor who was elected on a low rates increase and value for money proposition.
The Local Government Act requires Councils to assess the cost-effectiveness of their services every 6 years but Auckland Council has gone a stage further to develop a comprehensive value for money programme. Our work does not just consider cost-effectiveness but also equity, environmental, cultural and community value. The programme is a key activity in the council strategic pillar of "making size work".
Gathering evidence from a variety of sources, including international best practice and leveraging the better business case framework value is assessed from an economic, environmental, social and cultural perspective. Effectively using a complete benefits assessment.While the past provides indicators of future performance our reviews are very much forward focused and look at how services could be delivered differently (from a governance, funding and service delivery perspective) in the future and could further value be delivered to the citizens of Auckland.
To date, 6 services have been reviewed across the council group and value opportunities of over $500m have been identified over the next 10 years. As part of the review, management receives a high level implementation plan to assist in quick benefit realisation.
When I reflect on this I never dreamt that what I wrote about all those years ago would be delivering value. And yes, I found the National Audit Office was delivering value as the current programme at Auckland Council is now.
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