Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102933055
Category : Medical
Languages : en
Pages : 40
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Book Description
The Norfolk and Norwich University Hospital NHS Trust currently pays £38.7 million a year to a private sector consortium, Octagon, for the building and maintaining of a new hospital. This pathfinder PFI contract was entered into in 1998 but in 2003 Octagon was able to refinance their deal and gain £81 million (some of which was shared with the Trust). This report examines whether the large private sector gains indicates some inadequacy in the initial PFI deal and how the price the Trust is paying compares to current PFI hospital deals. The overall findings were that Trust continues to pay a premium on financing costs compared to current deals and it might have improved the original deal with greater competition and better defined requirements. However the Trust believes it gained benefit from the early provision of facilities in a deal that had previously been assessed as good value for money.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937575
Category : Business & Economics
Languages : en
Pages : 72
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Book Description
Findings from this NAO report include that the government has secured gains of £137 million from Private Finance Initiative (PFI) debt refinancings under new arrangements introduced by the Treasury in 2002 (including £102 million from four large refinancings (one of the London Underground contracts and three hospital projects: Norfolk and Norwich, Darent Valley and Bromley). The NAO found that the new sharing arrangements through a voluntary Code appear to be generally working well but there have been exceptions, for example in three road projects the public sector missed out on at least £1.7 million because gains were not shared in accordance with the voluntary code. The report also describes the emergence of the PFI secondary market which is enabling equity investors in PFI projects to sell their shares on to new investors.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937699
Category : Business & Economics
Languages : en
Pages : 56
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Book Description
In 1998, the Department of Trade and Industry (DTI) and Laser, a special purpose company jointly owned by Serco Group plc and John Laing plc, signed a 25-year long Private Finance Initiative (PFI) contract. Laser would build and manage new facilities for the National Physical Laboratory (NPL), comprising 16 linked modules, containing over 400 laboratories, and replacing many existing buildings. The planned cost of the new buildings was approximately £96 million. The DTI would pay Laser a unitary charge, of £11.5 million (1998 prices) a year once the new buildings were ready, the charge increasing annually based on the increase in retail prices. The project suffered considerable construction delays and difficulties in achieving the specification for some parts of the buildings, mainly due to deficient design. In December 2004, it was agreed to terminate the PFI contract. The DTI paid Laser £75 million for its interest in the new buildings. This was the first termination of a major PFI contract involving serious non-performance. This report examines the problems that led to the termination, why these problems arose, how the Department managed them and the value for money consequences of the termination. The report finds that the DTI successfully transferred risk in the PFI contract to the private sector, but that the project risks could have been reduced with firmer control and better communication. Up to and including the termination, the Department's investment in the new facilities was about £122 million (March 2005 prices). In return, the Department secured an asset valued at £85 million and for which all but eight of more than 400 laboratories should be capable of being made to meet its specification in full. The private sector reported a loss of at least £100 million.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102936498
Category : Business & Economics
Languages : en
Pages : 71
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Book Description
Examines the termination of Connex South Eastern's franchise for providing passenger rail services in Kent, parts of Sussex and South East London.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937087
Category : Political Science
Languages : en
Pages : 96
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Book Description
Government departments have been set targets for implementing efficiency gains of £21.5 billion a year by 2007-08, as part of the Treasury's Efficiency Programme following on from the recommendations of the Gershon Review of public sector efficiency (available at http://www.hm-treasury.gov.uk./spending_review/spend_sr04/associated_documents/spending_sr04_efficiency.cfm) published in July 2004. This NAO report examines the progress made towards improving efficiency and highlights examples of good practice from which departments and the wider public sector can learn. A companion volume of case studies is available separately (HCP 802-II, session 2005-06, ISBN 0102937095). The report finds that good progress is being made towards achieving the £21.5 billion target and departments are managing their efficiency programmes well. However, some caution is needed in assessing the gains reported so far (due to the time lags in reporting of data and limitations in measurement methodologies) and therefore these should be considered provisional and subject to further verification. Six key areas are highlighted for future improvements in public sector efficiency, including in relation to strategic leadership, staff expertise and greater collaboration to share good practice across the public sector.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 010293763X
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
This NAO report examines sick leave in the National Probation Service, which was running at 12.3 days per person in the 2004-05 period at a cost of £31.6 million. A number of recommendations have been set out as follows. That the National Probation Directorate should agree with the Chief Probation Officer a consistent minimum standard for collecting and reporting sickness absence data in their areas. This in turn could be used to produce comparative analyses, and offer a basis to diagnose the causes of sickness absence. An upgrade in some areas of their information technology systems should occur, so that better management information can be compiled. All probation areas should implement the mandatory elements of the national policy on sickness absence. All Chief Officers should review their action plans for reducing sickness absence. Sickness absence should be managed effectively but sympathetically, by including return to work interviews, along with a means of distinguishing between avoidable and unavoidable sickness absences, and addressing the culture of absenteeism. Long term sickness absence should be reviewed as a matter of urgency. Policies relating to work/life balance should be implemented nationally.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937303
Category : Political Science
Languages : en
Pages : 56
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Book Description
All public sector organisations rely to varying degrees on postal services, costing nearly £650 million annually of which £250 million is spent by central government departments. The two biggest spenders are the Department for Work and Pensions and HM Revenue and Customs which account for over half this amount, with ten organisations accounting for 95 per cent of the total. Despite the growth in the use of internet and email, at least for the foreseeable future conventional mail will remain essential to the way public bodies communicate with the public. This NAO report examines how public sector organisations can become more effective in their procurement and management of postal services, and identifies six main areas where further improvements can be made in order to realise an estimated £31 million a year in savings by 2008-09. Two accompanying documents are available separately: case studies which examine the use of postal services in five organisations (HCP 946-II, ISBN 0102937354); and a guide which sets out examples of good practice across public and private sectors (HCP 946-III, ISBN 0102937362).
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937273
Category : Business & Economics
Languages : en
Pages : 64
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Book Description
British Energy was privatised in 1996. In 2002, the price of electricity fell and on 5 September 2002, the Company applied to the Department of Trade and Industry (the Department) for financial assistance. In November 2002, the Department agreed to provide financial assistance with the proviso that the Company's financial arrangements would be restructured. This report deals with the financial aid that the Department gave to British Energy and the terms of the restructuring of British Energy. The Department decided to intervene because, in its assessment, unplanned closures of British Energy's nuclear power stations would have had safety implications and put electricity supplies at risk. The Department took on responsibility for a large proportion of the company's liabilities, to be funded through a Nuclear Liabilities Fund, though there was no up-to-date estimate of those liabilities. (These estimates are to be updated every five years now.) In February 2006 British Energy estimated liabilities at £5,287 million. The restructuring mechanism is for a cash sweep, so that the company contributes more to the Fund when it is doing well. In the 12 months following completion of restructuring in January 2005, the wholesale electricity price rose sharply and the Company's share price more than doubled. The electricity market has, however, proved to be particularly volatile over recent years. The Nuclear Liabilities Fund is left particularly exposed to British Energy's financial and operational performance. Day-to-day responsibility for monitoring various aspects of the Company's performance currently lies with a number of teams within the Department. There remains a real risk that information learned by the different teams is not shared quickly and evaluated and that insufficient staff resources are committed to safeguarding the taxpayer's significant interest. To assist its management of the taxpayer's interest, the Department will need to prepare sufficiently comprehensive contingency plans to enable it to act quickly under the range of scenarios that might arise.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937427
Category : Business & Economics
Languages : en
Pages : 64
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Book Description
The public sector in England spends around £2 billion per year on food and catering services, including in schools, hospitals and armed forces bases. This NAO report examines how public sector organisations can improve their food procurement practices in order to reduce costs whilst maintaining the quality of meals provided. The report finds that the public sector could achieve efficiency gains of £224 million by 2010-11, with significant scope for improvement in relation to: developing market knowledge and buying practices; employing joint procurement to increase purchasing power; establishing greater transparency in contract caterers' charges; promoting the professional development of catering staff in the public sector; reducing costs and environmental impacts through efficient operational practices; and increasing the take up of meals and income generated by them. Two accompanying documents are available separately: Case studies (HCP 963-II, ISBN 0102937435) and a Good practice guide (HCP 963-III, ISBN 0102937443).
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102935629
Category : Law
Languages : en
Pages : 70
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Book Description
In 2004, of the 6.7 million disabled people of working age in Britain, 50 per cent were in employment compared to 75 per cent of the working age population as a whole. The Government has made a commitment to increase the employment rate of disabled people and to reduce the difference between their employment rate and the overall rate by 2006. This NAO report examines the barriers faced by disabled people in finding and retaining employment, the specialist programmes and schemes provided by the Department of Work and Pensions (DWP) to address this issue, the quality and accessibility of support available, and the cost effectiveness of such schemes. The report finds that the DWP funds a broad range of schemes (which are managed by Jobcentre Plus and contracted out to a range of providers in the public, private and voluntary sectors) and is on course to meet its target for increasing the employment rate of disabled people. However, more progress is needed to ensure such programmes benefit a wider number of people, and recommendations made include the need to establish a more flexible modular approach to programmes; to improve data collection and verification schemes to monitor services; to promote enhanced efficiency through better contracting; to provide greater support and training for advisers; to improve the cost effectiveness of Remploy businesses and to ensure better support to help individuals find alternative employment if necessary; and for the DWP to develop a clearer strategy for engaging with employers at a local level.
