Business plan 2011/12 - Accountant in Bankruptcy

Business plan 2011/12


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Contents

Foreword 03OurRoleandPurpose 05AiB’sMission 06OurValues 06KeyFunctions 07MeasuringSuccess 08BusinessPlan2011/12Outline 12 SupportingMinisterstodevelopandrefinepolicy 13 SupervisingtheInsolvencyProcess 16 Delivering,withstakeholders,arangeofoptions 17 forindividualsseekingdebtreliefanddebtmanagement DeliveringBestValueServicestoCustomers 19ForwardLook 23AccountantinBankruptcy’sResources 24Budget 26ManagementStructureandStaffing 27AnnexA–Stakeholders 28Additionalinformation 29


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Accesstofairandjustprocessesofdebtrelief

anddebtmanagementisessentialinthesedifficult

economictimesandourBusinessPlanfor2011/12

setsoutourprioritiestohelpusmeettheneedsofour

customersintheyearahead.

OurBusinessPlanfor2010/11firmlyfocusedonourrole,asanExecutiveAgencyoftheScottishGovernment,incontributingtothePurposeandNationalOutcomessetoutintheGovernment’sEconomicStrategy.OurpoliciesandpracticeshavecontributedtodeliveryagainstthechallengingprioritiesofGovernmentinstrivingtomakeScotlandamoresuccessfulcountry.

Inthelastyear,wehaveseenadeclineinthenumberofindividualsinScotlandseekingbankruptcyorprotectedtrustdeedsasdebtreliefmechanisms.UptakeoftheDebtArrangementScheme(DAS)hasincreased,suggestingthatpeopleareseekingthemoneyadvicetheyneedatanearlierstage.Whilethisisencouraging,theriskstotherecoveryoftheScottisheconomyremain.Wehaveyettoseethe

impactofpublicspendingreductionsanditisexpectedthatthesewillbringnewchallengesintheyearahead.

ThroughthelatestSpendingReviewthebudgetallocationtoAiBhasbeensignificantlyreducedby40.4%onthepreviousyear.Ourstrategyofmovingtowardsafullcostrecoverymodelhasbeencrucialinensuringthatwecontinuetobewellplacedtodeliverourservicesinpartnershipwiththepublicandprivatesectors.

ThislastyearhasbeenasuccessstoryforAiB.Wehavedeliveredsignificantpolicyandlegislativechanges,havemodernisedourservices,madeimprovementstothewaywedeliverourbusinessandareinvestingforourfuture.

FOREWORDbyTheAccountantinBankruptcyandAgencyChiefExecutive,Rosemary Winter-scott


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ChangesintroducedthroughtheHomeOwnerandDebtorProtectionActmeanthatthereisanewrouteintobankruptcy–theCertificateforSequestration–makingiteasierforpeopletoobtainthedebtrelieftheyneed.Alongsidethis,wehavebeenworkinghardtodeliverimprovementstoDASwhichwillprovidegreateraccesstothisdebtmanagementoption.

Ournewweb-basedportalforourcontractedinsolvencyprovidersallowsustointeractmoreeasilywithoursuppliersindeliveringmodern,efficientservices.IknowthatthisdevelopmentandtheimprovementstotheRegisterofInsolvencieshavebeenwidelywelcomed.

Wehaveworkedhardtoengagewithallofourpartnersandcustomers,placingstakeholdercommunicationsattheheartofourbusiness.Iamconfidentthatthischangeinfocushasdevelopedsolidworkingrelationshipsthatwillsupportusaswecontinuetoexploremoreeffectivewaysofdeliveringourbusinesstoproduceefficiencysavingsatreducedcosttothepublicpurse.

Goingforwardin2011/12,ourprioritiesareclear:wewillrefocusattentiononourpoliciesensuringthatweoffertheproductsandservicesthatmatchtheneedsofourcustomers,continueourworktowardsfullcostrecovery,improvethetransparencyofAiB,anddevelopsystemsthatensureefficientdeliveryofourservices.

IamkeenthatwecultivateaclearvisionfordebtreliefanddebtmanagementinScotlandtoensurethatwecontinuetoleadthewayinmanypolicyareas,takingaccountofworldwidecomparisonstohelpustodevelopprogressivefuturepolicies.Involvementfromourstakeholdersisvitalindevelopingandimplementingthisvisionandanypolicychangesthatareintroducedinthenextparliamentaryterm.

Beyond2012wewillprogressthescopeofourstakeholderandcustomercommunications,ensuringwideranddeeperengagementtotherightpeople.Wewillmaximisetheadvancesmadeinouruseoftechnology,embedthelegislativechangesanddevelopbestpracticesfordebtreliefmechanisms.

ThisBusinessPlanhasbeendevelopedbyAiBstaffwithactiveengagementandmajorcontributionsfromourkeystakeholders.IwouldliketothankeveryoneforthesupportIenjoyedinmyfirstyearasAccountantinBankruptcyandlookforwardtoworkingwithmydedicatedAiBstaffandourcommittedstakeholdersensuringwecontinuetoprovideaccesstofairandjustprocessesofdebtreliefanddebtmanagementforallindividualsinScotland.

Rosemary Winter-scott TheAccountantinBankruptcyandAgencyChief

Executive

FOREWORD


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Who we areAccountantinBankruptcy(AiB)isanExecutiveAgencyoftheScottishGovernmentunderthetermsoftheScotlandAct1998.TheAgencyoperatesindependentlyandimpartiallywhileremainingdirectlyaccountabletoScottishMinisters.TheChiefExecutiveisalsoTheAccountantinBankruptcy(TheAccountant),whoisanIndependentStatutoryOfficerandanofficerofthecourtappointedundersection1oftheBankruptcy(Scotland)Act1985,asamended.

What we doAiB aims to ensure access to fair and just processes of debt relief and debt management for the people of scotland, which takes account of the rights and interests of those involved.

TheScottishGovernment’spurposeistofocusgovernmentandpublicservicesoncreatingamoresuccessfulcountrywithopportunitiesforallofScotlandtoflourish,throughincreasingsustainableeconomicgrowth.

Thegovernment’spurposeisdeliveredthrough7PurposeTargets,supportedby5StrategicObjectiveswith15NationalOutcomesastheclearandconsistentsetofprioritiesacrossgovernmentanditsagencies.Togetherwith45NationalIndicatorsandtargets,activityandcontributionsaredirectedtowardsthesingleoverarchingpurpose.TheNationalPerformanceFrameworkdemonstratestheScottishGovernment’sroutetoachievementofitspurpose:

SupportedbyDGLearningandJustice,theAgencysharestheoutcome-focusedapproachtoperformance,whichisreflectedintheprioritiesdetailedinthisBusinessPlan.

Todemonstratealignmentwiththesenationalpriorities,theAgencywillprovidethefairandjustprocessesofdebtreliefanddebtmanagementforindividualsinScotlandinordertohelpdeliveronthefollowingNationalOutcomes:

>Werealiseourfulleconomicpotentialwithmoreandbetteremploymentopportunitiesforourpeople

>WehavetackledthesignificantinequalitiesinScottishsociety

>Wehavestrong,resilientandsupportivecommunitieswherepeopletakeresponsibilityfortheirownactionsandhowtheyaffectothers

>Wereducethelocalandglobalenvironmentalimpactofourconsumptionandproduction

>Ourpublicservicesarehighquality,continuallyimproving,efficientandresponsivetolocalpeople’sneeds

OURROLEANDPURPOSE

PurPose

PurPose TArGeTs

sTrATeGic oBJecTiVes

NATioNAL ouTcoMes

NATioNAL iNdicATors ANd TArGeTs

Figure 1. scottish Government’s national Performance Framework


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Wewillachievethisthroughthefollowingkeyfunctions,whilstrecognisingouruniquestatutoryrole:

>supporting Ministers to develop and refine policy

>supervising the Insolvency process

>Delivering, with stakeholders, a range of options for individuals seeking debt relief and debt management

>Delivering best value services to customers

AiB’s Mission

ToensureaccesstofairandjustprocessesofdebtreliefanddebtmanagementforthepeopleofScotland,whichtakesaccountoftherightsandinterestsofthoseinvolved.

our ValuesWewillensurethatouractivitiesare:

> independent;

> responsive;

> accountable;

> transparent;

> fair;and

> open

OURROLEANDPURPOSE


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Key FunctionsOurkeyfunctionscanbefurtherdefinedaslistedbelow:-

Supporting Ministers to develop and refine policy by:

>developingpolicyforpersonalandcorporateinsolvencyanddiligenceinScotland

> developingpolicyfortheDebtArrangementScheme(DAS)

Supervising the insolvency process by:

>supervisingtheregulationofthebankruptcyprocessincludingtheperformanceoftrusteesandcommissionersintheexerciseoftheirstatutoryduty

>regulatingandsupervisingtheregistrationandadministrationofProtectedTrustDeeds(PTDs),includingtheperformanceoftrustees

>investigatingandapplyingforBankruptcyRestrictionOrdersoragreeingBankruptcyRestrictionUndertakings(BRO/BRU)

>maintainingapublicRegisterofInsolvencies(ROI),whichrecordsdetailsofbankruptciesawardedbytheScottishcourtsorbytheAgency

>maintainingarecordofPTDs,BROsandBRUsaswellascompanyinsolvenciesontheROI

>registeringcompanyinsolvencydocumentsrequiredtobefiledbyreceiversandliquidatorsintermsoftheInsolvencyAct1986

Delivering, with stakeholders, a range of options for individuals seeking debt relief and debt management by:

>determiningdebtorapplicationsforbankruptcy

>actingastrusteeinallbankruptciesawardedbytheAgency,whereTheAccountantdoesnotappointapersontobethetrustee

>actingastrusteeinallbankruptciesawardedbytheSheriffcourts,whereaSheriffdoesnotappointanamedpersontobetrustee

>actingasinterimtrusteebeforetheawardofbankruptcyexceptinthosecaseswhereanalternativeinterimtrusteeisappointedwhennominatedbythepetitioningcreditor

>actingastrusteeasappointedbytheSheriffontheresignationordeathoftheoriginaltrusteewherenonewtrusteeiselected

>undertakingthefunctionsofthecommissionersinbankruptcieswherenoneareelectedbycreditors

>approvingDebtPaymentProgrammes(DPPs)andapprovingmoneyadvisors

>maintainingtheDASregister

Delivering best value services to customers:

>reducingtherequirementforpublicfunding

>embeddingefficientsystemsandprocesses

OURROLEANDPURPOSE

sG PurPose

NATioNAL ouTcoMes

KeY FuNcTioNs

AiB BusiNess PLAN

BrANch PLAN

eMPLoYee oBJecTiVes

KPis KPis

AiB’s Performance Framework


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ThisBusinessPlancapturesthehighlevelactivitythatwillcontinuetodrivetheorganisationforward.ItdetailstheprojectsthatwewillundertakeoverandaboveAiB’scorebusinessdelivery.Theagreedoutputsandmilestonesofthekeydeliverablesfromthebusinessplanwillbemonitoredandreportedquarterly.

Wewillfocusoncontinuousimprovementofthedaytodayservicewedelivertoourcustomers and stakeholders.Thekeyaspectsofourcoreserviceareto:-

> ProcessapplicationsforDebtorApplicationsandtheDebtArrangementScheme

> Managein-housecaseswheretheAccountantinBankruptcyisTrustee

> Superviseinsolvencycases

> DeterminesubmittedAccounts

> Providerelevantinformationtoassistcustomersandstakeholders

WewillusethefollowingKeyPerformanceIndicators(KPIs)tomeasurethequalityofourcoreprocesses:-

KPi 1: Toadjudicateandinformtheoutcomeofdebtorapplicationsonreceiptofallrelevantinformation

KPi 2:Toincreasethepercentageofcaseswhereadividendispaidouttocreditors

KPi 3:Topromptlydetermineaccountsonreceiptofallrelevantinformationfromtrusteesandagents

KPi 4:ToadjudicateandinformtheresultoftheDebtArrangementSchemeapplicationsonreceiptofallrelevantinformation

KPi 5:Improvecustomerexperience

KPi 6:Increaseemployeeengagement

KPi 7:Toreduceunitcostofsequestration

KPi 8:ToreduceunitcostofDAS/DPP

ThelinkbetweenAiB’skeyfunctionsandKPIscanbebestdemonstratedinthefollowingdiagram:

MEASURINGSUCCESS


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Key function Key Performance indicator (KPi) Purpose of the measurement

1. Supporting Ministers to develop and refine policy

TherearenoKPIsforpolicybuttheBusinessPlanhighlightsthekeymilestones(1.1–1.6)againstwhichwewillreviewourprogress.

2. Supervising the insolvency process KPIsforsupervisionwillbedevelopedduringtheyearinassociationwithourkeystake-holders.

3. Delivering, with stakeholders, a range of options for individuals seeking debt relief and debt management

KPi 1:Toadjudicateandinformtheoutcomeofdebtorapplicationsonreceiptofallrelevantinformation

Measurement: Thetimetakentonotifyadebtorofabankruptcyaward.

ThisKPIrecognisesthelifechangingstepthatdebtorsmaketogodownthebankruptcyrouteandtheimportanceofapromptresponseontheoutcomeoftheirapplicationthatwillhaveamajorimpactontheirfinancialfuture.

KPi 2:Toincreasethepercentageofcaseswhereadividendispaidouttocreditors.

Measurement:ThisKPIwillnotapplytobankruptcycasesawardedunderLILA,norcasesallocatedtoAiB’sagentsunderthetermsoftheold,pre-April2009,contract.

Dividendsarepaidincaseswheresufficientfundshavebeenin-gatheredtopayfeesandoutlays,withthesurpluspaidtocreditorsintheformofadividend.

Itwillonlymeasureinpercentagetermsthenumberofcaseswhereadividendispaid,notthefinancialamountpaidout.

Creditorspursuethebankruptcyprocesstorecovermoniesowed.Toensurethatcreditorsunderstandthelikelihoodofrecoveryandtomaintaintheirconfidenceinthebankruptcyprocess,weaimtoincreasethenumberofcasesthatproduceadividendforcreditorswhereAiBistrustee.

IncommonwithallTrustees,AiBhasastat-utorydutytomaximisethereturntocredi-torsinallcases.Byimprovingourworkingpractices,andinparticularthewaywecontractcasesouttoproviders,webelievewecanpositivelyinfluenceanoverallpercentagefigure.


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KPi 3:Topromptlydetermineaccountsonreceiptofallrelevantinformationfromtrustees.

Measurement: ThetimetakenfromthedateAiBhassufficientaccurateinformationandsupportingdocumentsforaccountsreceived,tothedatethefinaldeterminationoftheaccountsismade.

Itisimportantforcreditorsandotherstakeholdersthataccountsaredeterminedaccuratelyandquickly,asthedeterminationprovidestheauthoritytopayanyfees,outlaysanddividendsthataredue.

KPi 4:ToadjudicateandinformtheresultoftheDebtArrangementSchemeapplicationsonreceiptofallrelevantinformation.

Measurement:ThetimetakenfromthedateAiBhassufficientaccurateinformationandsupportingdocumentstothedatethecustomerisnotifiedoftheoutcomeofanapplication.

TheDebtArrangementScheme(DAS)allowsdebtorstimetopayoffdebtsandaffordsprotectionfromdiligencethroughouttheperiodofaDebtPaymentProgramme(DPP).AiBisresponsibleforadjudicationontheDPPapplications.Byprocessingandcommunicatingtheoutcomeofaplanquicklywecanensurecustomersarepromptlyprotectedfromdiligenceandallowthemtosetupstagedrepaymentstocreditors.

KPi 5:Improvecustomerexperience

Measurement: During2011/12,AiBwillexploreandconfirmthemostappropriatemethodofaccuratelycapturingongoingcustomerfeedbacktomeasureasatisfactionrating.

AsAiBseekstoreducethecosttothepublicpurse,ourserviceusersareincreasinglycoveringthecostoftheAgency.FormallinesofaccountabilityremaintoMinisters,howeverweneedtorecognisethefocusonAiB’spayingcustomers.

AiBrequirestoensureitcontinuestofocusonandimproveservicedeliverytoourcustomers.ThisKPIwillenabletheAgencytomonitor,evaluateandimproveitscustomerserviceperformance.


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4. Delivering best value services to customers

KPi 6:Increaseemployeeengagement.

Measurement: ResultsfromparticipationintheUKCivilServicePeople

Evidenceshowsthatengagedemployeesarefarmorecommittedandproductivetoimproveser-vice.ThisKPIwillenableAiBtomonitor,evaluateandimproveitsemployeeengagementlevels.

KPi 7:Toreduceunitcostofsequestration

Measurement:Theunitcostisthegrosscostofadministeringthesequestrationanddoesnottakeintoaccountnetreturns,throughcostsrecoveredfromthesequestration.Theunitcosttakesintoconsiderationthebusinesscosts,suchasstaffingandbuildingoverheadcosts,aswellasknownsequestrationcosts,suchasfeesandadvertisingcosts.

Theunitcostofasequestrationcanbecalculatedonanannualbasis.

ThisKPIfocusesonachievingefficiencysavingsintheuseofstaffandresourcesforinternallymanagedcases.EfficiencysavingswillhelpAiBreducetheimpactofitsserviceonthepublicpurse.

KPi 8:ToreduceunitcostofDebtArrangementScheme(DAS)/DebtPaymentProgramme(DPP)

Measurement: AiB’sFinancialModelincludesaformulafordeterminingthegrossunitcostofaDAS/DPPtocalculatetheaveragecostofadministeringaDAS/DPP.

TheunitcostisthegrosscostofadministeringDAS/DPPanddoesnottakeintoaccountthetotalamountofcontributionspaidbythedebtortowardstheirDPP.

Theunitcosttakesintoconsiderationthebusinesscosts,whichincludestaffingandbuildingoverheadcosts,aswellasknownDPPcosts,suchasfeesandadvertisingcosts.

ThisKPImeasurestheunitcostofeachDAS/DPPandaimstoreducetheunitcostofmanagingthescheme.


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Key deliverables:-

Thekeydeliverablesthatwewillfocusonin2011/12arelistedbelowbutsomeoftheseactivitiesarepartsoflongertermprojects,whoseultimatecompletionwillbeinsubsequentyears.

1. Supporting Ministers to develop and refine policy

1.1 Reviewexistingbankruptcylegislationandconsolidatewhereappropriate

1.2 Reviewavailablediligencemeasures

1.3 Consultonthetreatmentofthedebtor’ssoleormaindwellinghouseintrustdeeds,bankruptcyandlandattachment

1.4 RefineandintroduceProtectedTrustDeedBestPracticeGuidance

1.5 ReviewofFinancialAssessmentToolsusedthroughoutinsolvencysector

1.6 ReviewPart2oftheHomeOwnerandDebtorProtectionAct

2. Supervising the Insolvency Process

2.1 ImplementandembedProtectedTrustDeedBestPracticeGuidance

2.2 EmbedtheprocessforimplementingguidancefromthenewindependentPolicyandCasessubcommitteeoftheBoard

2.3 Reviewpublicationofstatisticaldata

3. Delivering, with stakeholders, a range of options for individuals seeking debt relief and debt management

3.1 MakechangestoDebtArrangementScheme(DAS)towidenaccesstothescheme

3.2 Reviewthefocusofourcustomerdrivenservicefromreactivecustomercomplaintstoactivelygatheredfeedback

3.3 PartnershipworkingwiththeAdviceSectortofacilitatetheprovisionofindependentclientadvicefromAiBpremises

3.4 Continuetoimprovestakeholderrelationshipworkingthroughplannedengagementandcommunicationsactivity

4. Delivering best value services to customers

4.1 MovefurthertowardsFullCostRecoverybydeterminingsustainableincomeandcontrolledcosts

4.2 DevelopanAiBPeopleStrategy

4.3 RaiseAiBprofileamongkeystakeholdergroupsandbuildourreputationinlinewithourcorporatevalues

4.4 Continuetodevelopthenewtechnologyforcasemanagement

4.5 ReviewAiB’scurrentuseoftechnology

4.6 ReviewandupdatetheBusinessModeltoensureitisfitforpurpose

4.7 ReviewtheexistingChangeManagementarrangementsandstructuretoensuretheycontinuetomeettheAgency’sneeds

4.8 Reviewthe2007–11AgencyProcurementStrategy

4.9 RenewContractforout-sourcedInsolvencyServices

Fulldetailofeachofthekeydeliverablesiscontainedinthefollowingtables:

BUSINESSPLAN2011/12OUTLINE


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1.SUPPORTINGMINISTERSTODEVELOPANDREFINEPOLICy

1.1 Key deliverable: review existing bankruptcy legislation and consolidate where appropriate

Outcome Outputs Key Milestones Resource implications Target Date

Revised,consolidatedbank-ruptcylegislationwillallowclearerunderstandingoflawonbankruptcy.

Completedconsultationwithstakeholdersondraftpro-posalsonconsolidation.

ReportonregulatoryimpactassessmentonthedraftBill.

ThedraftBankruptcy(Scotland)Billisprepared.

PurposeofBillisunderstoodbystakeholders,publicationsandguidancenotesarerevised.

PolicyteaminpartnershipwiththeLawSociety.Significantcostinbusiness/ITterms.

2013

ScottishrulesonCorporateInsolvencyaremodernisedanddefinitionofpowersisclarified.

ModernisedScottishrulesonCorporateInsolvencyachievedthroughworkingwithUKISshouldCorporateInsolvencybecomeareservedfunction

ScotlandBillenactedprovidingclarityonreservedordevolvedpowersinrelationtoCorporateInsolvencyandenablingAiBtoplanappropriatefurtheraction.

Policyteamhaveappropriateresourcetodrivethisworkforward.

1.2 Key deliverable: review available diligence measures


Diligencemeasuresareachievingtheirpolicyintentionanddiligencelawisclearandunderstood.

Consultationwithstakehold-erstoassesstheimpactofDiligencelawchangesandgatherstatisticalinformationwhereapplicable.

ReportontheimpactofchangestoDiligencelawandrecommendationsmadetoMinisters,whereappropriate,onfurtherlegislativechange.


March2012

WorkwiththeLordPresident’sAdvisoryGrouponDiligenceRulestodeveloptheScottishCourts’ActofSederunttosupportPart15ofthe2007Act.

TheActofSederuntundersection215ofthe2007Actismade,andinformationaboutthechangesprovidedtoallstakeholders.

Board owner: ClaireKeggie



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1.2 Key deliverable: review available diligence measures


Workwithstakeholdersonlandattachment(pt4,ch2)andabolitionofAdjudicationforDebt.ReviewcommentsfromDebtandHomeconsultation.

MinistersprovidedwithclearpolicyadviceonLandAttach-mentwithrecommendationsonthewayforwardtoenableadecisiononintroductionofLandAttachment.


March2012

WorkwithstakeholdersonResidualAttachment(pt4ch3).ReviewcommentsfromDebtandHomesconsultation.

MinistersprovidedwithclearpolicyadviceonResidualAttachmentwithrecommendationsonthewayforward.

WorkwithstakeholdersonInformationDisclosureOrders(pt16).

MinistersprovidedwithclearpolicyadviceonInformationDisclosureOrderswithrecommendationsonthewayforward.

1.3 Key deliverable: consult on the treatment of the debtor’s sole or main dwelling house in trust deeds, bankruptcy and land attachment


PolicypositiononthehomeinbankruptcylegislationreflectsMinisterialpriorities.

DraftDebtandHomesconsultationpaperwithadvicetoMinistersonlaunch.Launchconsultation,analyserespons-esandmakerecommendations.

Publicconsultationlaunchedandreportonconclusionsproduced.PolicyadvicetoMinisters.

Policyteamhasresource. August2011




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1.4 Key deliverable: refine and introduce Protected Trust deed (PTd) Best Practice Guidance


ProtectedTrustDeedsarefitforpurpose.

ConsultationpaperpreparedwithMinisters'agreementissuedtostakeholders.

ConsultationiscompleteandBestPracticeGuidanceisagreedandabletobeimplemented.

Policyteamhasresource. August2011

1.5 Key deliverable: review of Financial Assessment Tools used throughout insolvency sector


Acommonfinancialassessmenttoolisusedacrossallinsolvencyanddebtmanagementoptions.Asingletoolwillensureequitabletreatment,consistencyandfairnessisinplaceforassessingcontributionsacrossthesector.

Establishingaworkinggrouptoexaminefinancialimplicationsandbenefitsofmovingtotheuseofacommonfinancialassessmenttool.

AdviceprovidedtoMinistersonapplicationofacommonfinancialtoolinrelationtocontributionsinbankruptcycases.

Policyteamhasresource. March2012

1.6 Key deliverable: review Part 2 of the home owner and debtor Protection Act to ensure that policy is working as intended


PolicypositionandlegislationreflectsMinisterspriorities.

ConsultwithstakeholdersandgatherinformationtoassessimpactofHODP.

ReportdetailingimpactoflegislationwithpolicyadvicetoMinistersonthewayforward.

Policyteamhasresource. March2012





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2.SUPERVISINGTHEINSOLVENCyPROCESS

2.1 Key deliverable: implement and embed Protected Trust deed (PTd) Best Practice Guidance


TheProtectedTrustDeedsprocessismodernisedandwillstrikeabetterbalancebetweentheneedsofdebtorsandtherightsofcreditors.

BestpracticeincorporatedintoAiBsupervisionprocedures.

SupervisionproceduresincludePTDagreedBestPractice.

ReviewboardestablishedtoensureBestPracticeisoperational.

CaseOperationsbranchhaveresource.

March2012

2.2 Key deliverable: embed the process for implementing guidance from the new independent Policy and cases sub committee of the Board


Appropriateandagreedproceduresandpracticesarebeingfollowedinrelationtobankruptcyadministration.

Documentedandembeddedprocessisinplacetoimple-mentapprovedrecommenda-tionsmadebythecommittee.

AllapprovedchangestocasemanagementproceduresarisingfromtheworkoftheCommitteearefullyrecordedanddisseminatedtoallin-terestedpartieswithrelevanttrainingprovided.

Availablewithincurrentresources.

March2012

2.3 Key deliverable: review publication of statistical data


Greaterclarityforstakeholdersaroundkeystatisticaldataaroundbankruptcyandinsolvenciesacrosstheinsolvencysector.

ReviewofstatisticalinformationpublishedbyAiBinrelationtotheAgency’ssupervisoryfunctioninconsultationwithstakeholders.

ReporttoCEwithrecom-mendationsforstatisticalreportingandpublication.RevisedandagreedstatisticaldataavailableforAnnualReportandAccounts2011/12.

Caseoperationsteamhaveresource.Statisticalexpertiseresourcewouldimprovetheefficiencyofthedataanalysis.

March2012


Board owner: JohnCook




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3.DELIVERING,WITHSTAKEHOLDERS,ARANGEOFOPTIONSFORINDIVIDUALSSEEKINGDEBTRELIEFANDDEBTMANAGEMENT

3.1 Key deliverable: Make changes to debt Arrangement scheme (dAs) to widen access to the scheme


IncreasedchoiceofdebtmanagementoptionsofferedtothepeopleofScotlandthatwillavoidbankruptcyandthecoststotheeconomyassociatedwiththis.

FormalProjectBoardoverseeing6separateworkstreamscovering:–developmentofthecasemanagementsystem,trainingbothinternallyandexternally,procurementandcommunications.

New,improvedDASlaunchedon1July2011.Accesstoschemeimproved,moremoneyadvisersabletoofferDASasaproduct,anduptakeincreased.

Significant.Workstreamleadersinplaceandempoweredwithappropriateresourceandauthority.Capitalexpenditurec£200k.Staffcostsasnow.

June2011

ProcesstosecurePaymentDistributorsintimeforlaunchon1July2011.

June2011

DevelopDASwebsite,publicationsandpromotionalcampaign.

DASwebsiteestablished,publicityandinformationcampaigncomplete.

October2011

3.2 Key deliverable: review the focus of our customer driven service from reactive customer complaints to actively gathered feedback


ThefocusoftheAgencyisondeliverytoitsserviceusersandprocesseswillbeinfluenced,wherepossible,bycustomerfeedback.Theresponsetocreditorswillensureourlevelof'ConsignedFunds'fallandcreditorcustomerswillprovideasatisfactionratingcomparableorexceedingthoseofdebtorcustomers.

Reviewofcurrentresponse,interactionandcomplaintshandlingprocessesiscomplete.

Re-launchedCustomerCharterwithvisibleandaccessiblemeansofprovidingreadyfeedbackfromcustomerstotheAgency.

Goodcustomerserviceshouldberesourceneutralinthelongertermasgettingourservicerightwillreducetheneedforremedialactivityordealingwiththeconsequencesofpoorcustomerserviceatalaterdate.Intheshorttermitmayrequirereallocationoradditionalresourcetogetsystemandprocessesaligned.Thisisestimatedatc£50k.

March2012

Completedresearchintomostcosteffectivemethodofobtainingcustomerfeedbackandexperiencetrends.

Methodofaccuratelycapturingongoingcustomerfeedbackisidentified.

BusinesscasetoexplorethebenefitsofaformalframeworkforrelationshipmanagementwithCorporateCreditors.

Frameworkforrelationshipmanagingcorporatecreditorswithevidencedbusinessandcustomerbenefits.


Board owner: DavidWallace


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3.3 Key deliverable: Partnership Working with the Advice sector to facilitate the provision of independent client advice from AiB premises


Clientswillbeabletoreceivetherightadviceattherighttimesowillbebetterequippedtomakedecisionsaroundthebestsolutionfortheirproblems.

High-levelrequirementsidentifiedwithlocalCAB/NorthAyrshireCouncilmoneyadvice.

AsignedPartnershipAgreementandServiceLevelAgreement.

Resourceimplicationswillbeidentifiedasthisworkstreamdevelops.TheaimofthisinitiativewillbetotrytodeliveraservicewithzeroorminimalcosttoAiB.

March2012

ICTrequirementsandtrainingplaninplace.Mechanismformonitoringeffectivenessidentified

ProvisionofindependentclientadvicefromAiBpremisestobothface-to-faceclientsandtelephone-basedenquiries.

3.4 Key deliverable: improve stakeholder relations through planned engagement and communications activity


Effectiveengagementactivitythatallowsforongoingreviewandevaluationwithstaffandstakeholderswhowillbeenabledandconfidentinengagingwitheachother.

Eventsprogrammedevelopedtoincreaseawarenessofvarietyandrangeofstakeholderinteractions.

Annualeventsprogrammeavailable.

Resourcesavailabletocompletethekeymilestones.Additionalresourceswillberequiredtodelivertheagreedevents.

March2012

ImprovedplanningcapabilitiesforAgencyactivitybydevelopinganonlineeventscalendar.

Onlineeventscalendardevelopedandinformationresourceavailable.

September2011

Anengagementstrategyproducedinconsultationwithinternalandexternalstakeholders.

StakeholderEngagementStrategyincludingguidelines.

Resourcesavailable. March2012

Stakeholderengagementguidelinesavailabletoimproveinteractionwithstakeholdersin-cludingstandardisedcommuni-cationsi.e.messages/minutes.

GuidancematerialsincludingStyleguidelines/PlainEnglish

Agencypresenceonsocialmediachannels.

March2012




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4.DELIVERINGBESTVALUESERVICESTOCUSTOMERS

4.1 Key deliverable: Move further towards Full cost recovery – determine sustainable income and controlled costs


Asystemoffeesandchargeswhichrecoversthecostofproductsinfullandwillbelinkedtotheworkandcostassociatedwithproducts.

ProcessCostingtodetermineproductcost.

Anewfinancialmodeldetailingproductcosts.

SignificantFinancetimewillhavetobespentonthisactivity.Itwillrequireinputfromotherbusinessareas,particularlypolicyandchangemanagement.

August2011

ITchangestoimplementnewfeestructureasrequired.

Currentcasemanagementsystemisgeneratingappropriatefee.

January2012

ReviewAiB’sFeeStructurewithconsultationbothexternalandinternalonproposednewfeestructure.

NewFeeStructurebroughtintoforcethroughstatutoryinstrument.

March2012

4.2 Key deliverable: develop an AiB ‘People strategy’


AiBwillmaximisetheopportunitiesforsharingservicesenablingtheAgencytoretainrelevantprofessionalexpertise,capacityandflexibilitytodeliveritsmission.ServicedeliverywillbemaintainedandimprovedwhilemeetingcommitmentstocontributetoSGefficiencyprogrammes.

AnAgencyPeopleStrategywhichincludesconsiderationofsharedopportunitiesaroundlegalandanalyticalservices.

AgreedAiBPeopleStrategyinplace.

Resourcesinplacetoreviewresourceandlearningneeds.Additionalresourcesmayberequiredbutshouldbeoff-setbysavingsincurrentdeliverymodels

December2011

ImplementationofLearning&DevelopmentStrategyincludingdeliveryofprofessionalqualificationsandleadershipdevelopment.

ImplementationofanewLearning&DevelopmentStrategytosupportstaffindevelopingtheexpertiserequired.

Implementationongoing

AiBcontributestotheSGpilotforFlexibleResourcing.

AiBfullycontributestotheScottishGovernment’sorganisationaldevelopmentforexampleHeadcounttargetsandtheFlexibleResourcingpilot.




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4.3 Key deliverable: raise AiB profile among key stakeholder groups and build our reputation in line with corporate values


ContributetoaprogressiveinsolvencyindustryforScotlandwithgreaterinsightintopartners’longtermplanningandworkingtowardsrecognitionasacentreofexpertiseoninsolvencyinScotlandwithinfluenceinsectordevelopments.Increasedpartnershipworkingandinformationsharingwithefficientandresponsivecommunicationshandling.Improvedmediapresence.

Identifiedanddefinedaudiencestodevelopindustrypartnerships

StakeholderMap&comprehensivestakeholderdatabase

Inputrequiredfromacrossagencyfromoutwardfacingbusinessareas

December2011

Regularcorrespondencewithkeymediacontactstoestablishproactivemediarelations.

MediaRelationsStrategy. MoretimecommitmentbyCommunicationsstaffandappropriatetraining.

March2012

4.4 Key deliverable: continue to develop the new case management system


Efficientandstreamlinedprocesseswhichattractastrongsenseofownershipthrougheffectivestakeholderengagement.

Reviewofcurrentprocessesandidentificationofnewfunctionality,deliveredthroughseriesofworkshopswithfrontlineusers,SeniorManagers,andotherStakeholders.

Systemfunctionalspecificationagreedwithdevelopers.

Availablewithincurrentresourcesandanallocatedbudgetofc£200k.

September2011




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4.5 Key deliverable: review AiB's current use of technology


Amoreefficient,effectiveandstreamlinedAgencythrough"smarter"useoftechnology.

AcrossAgencyGroupsetuptoreviewcurrentusageandwhererequiredidentifyimprovementsandenhancements.

AreporttoAgencyChiefExecutivewithrecommendationsonnextstepsandfuturestrategies.

CrossAgencyGroupwithnomorethan8members.

September2011

4.6 Key deliverable: review and update the Business Model


Indeterminingfuturebusinessdirection,theModelwillbeusedtoallowmoreevidencebaseddecisionmaking,enhancingAiB’sresponsetostakeholders’servicedemands.

IdentifyandmapkeybusinessprocessesandbuildintotheBusinessModel.Calculationsofbusinessactivitycostsandtheassessmentoftheinvestmentimpactofanyproposedchange.

UpdatedBusinessModel. ActivitywillbeledbyatrainedModellingProjectOfficer.

May2012

4.7 Key deliverable: review the existing change Management arrangements and structure to ensure they continue to meet the Agency's needs


ProjectswithintheAgencyChangeProgrammecontinuetobedeliveredusinganinternationallyrecognisedprojectmanagementmethodology,withinaChangeManagementandControlstructurethatprovidestherequiredhighlevelofassurancetotheAgencyChiefExecutive/Programmesponsor.

AreviewofthecurrentChangeManagementarrangementsincludingtherole/remitoftheProgrammeChangeandControlBoard(PCCB)andthesupportingandreportingstructure.

ReporttoCEwithrecommendationsastonextsteps.

Achievablewithincurrentresources.

June2011





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4.8 Key deliverable: review the 2007 – 11 Agency Procurement strategy


Continuedefficienciesdeliveredthroughgoodprocurementandcontractmanagementprinciples.

ReviewoftheAgency’sProcure-mentStrategyexaminingthecommoditiesidentifiedinthe2007–11Strategyforpotentialprocurementledopportunities.Reviewthelastremainingcom-modity–LegalServices–forop-portunitiestoimprovethequalityandvalueoftheserviceprovision.

RefreshedProcurementStrategyendorsedbyBoardandlaunched.StrategyforprovisionofLegalServicestotheAgencyagreed.

Strategyre-developmentwillbetimetabledafterDASprocurementactivitytobeachievablewithinexistingresources.ProvisionofLegalServicesmayrequireadditionalprocurementresourcedependingonStrategy.

December2011

4.9 Key deliverable: renew contract for out-sourced insolvency services


Tomaintainanefficientandeffectivecontractforourout-sourcingofInsolvencyServices(IS)whichmaximisesthemarketopportunitiesandminimisestheimpactonthepublicpurse.

Review,andseekAiBBoardapproval,ondecisionwhetherornottotaketheavailableoptionofextendingtheexistingIScontract(duetoexpireMarch2012).Includemarketanalysis,performanceandpossiblyfinalGatewayHealthchecktoinformthisreview.

Aclear,endorsed,decisionontheexpiryofthecurrentIScon-tractcommunicatedtoexistingproviders,themarketgenerallyandtowiderinterestedstake-holders.

UseoftheContractforInsol-vencyServiceswillcontinuetodemonstratesavings.1.)Ifdecidedtotakeoptiontoextend,currentcontracttobemanagedtocompletionin2013withproj-ecttore-tenderrolledforwardto2012/13businessplan.OR2.)IfcontractistoexpireasplannedinMarch2012,thenaformallyconstitutedProjecttodeliveranewcontracttofitthebusinessneedsfor‘go-live’inApril2012.

1.)Minor.ContractManagementteaminplacebuttobemonitoredinlightofincreasingout-sourcedcaseload.OR2.)Moderate(c£50k).Additionalprojectandprocurementexpertiserequiredtodeliverasuccessfulprocurementdriverproject.

June2012




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Withourstaffandkeystakeholders,weidentifiedtheprecedingpriorityareasfordevelopmentin2011/12.Someofthekeydeliverableswillcontinueintothefollowingyearsforcompletion.Inaddition,werecognisedtheneedtomaintainourfocusontheseareasandwillincludethefollowingactivityafter2012:

>Wider and deeper stakeholder engagement and communications through expansion of identified and tailored communication such as updated Policy bulletin and enewsletters.

>Improve opportunities for online interaction with stakeholders and customers through increased digital capabilities for example online feedback and discussion forums.

>Increase flexibility of the organisation through accurate business and financial modelling and effective use of technology such as web services and further development of the Web Portal functionality.

>Progress refinement of existing bankruptcy legislation to rationalise the available debt management and debt relief products to the people of scotland. Keep in view the question of scottish rules in relation to Corporate Insolvency and progress according to the outcome of the scotland Bill.

>Continue partnership working to enhance the availability of services and improve the consistency of approach to debtors and creditors across the sector.

FORWARDLOOK


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Budget

AiB’soperatingexpenditureismetfromacombinationofretainedincomefromitsoperationalactivityandallocatedfundingfromtheScottishGovernment.

AiB’sincreasingworkloadisreflectedinthefinancialreturnsand,aspartofthe2011/12BusinessPlan,theAgencymustoperatewithintheallocationprovidedbytheScottishGovernment.In2011/12weintendtocontinueourworkondevelopmentofanappropriate‘costpricing’model,whichwilldriveourfeestructuretoensureitisequitabletobothdebtorsandcreditors,sustainablefortheAgencyandappropriatelyreflectstheworkwhichAiBcarriesoutinensuringaccesstofairandjustprocessesofdebtreliefanddebtmanagementforthepeopleofScotland.TheresultofthisworkwillultimatelyensuretheAgencyisabletocontinuetoreduceitsrelianceonthepublicpurseinfundingitsoperations.

AiB’sbudgetfor2011/12of£13,212,000compareswithabudgetfor2010/11of£13,482,000.Ourprojectedspendagainstthebudgetsetin2010/11is£12,362,000,representinganunder-spendof8.3%.Thisprojectionisprimarilyattributedtothreeareas.Anunder-spendagainstthePayCostsbudgetduetobudgetingforabillteamthatwasneverformed,alowerthanbudgetspendagainsttheGeneralAdministration

budgetduetodelayedexpenditureonChangeManagementprojectsandlowerthanexpectedNonCashexpenditureduetolessdepreciationbeingrequiredin2010/11towriteoffourcasemanagementsystemwhichisnearingtheendofit’susefuleconomiclife.

Theyear-endfinancialpositionbeingprojectedin2010/11meansthatourprojectedexpenditurein2011/12willbehigherthanprioryears.

ACCOUNTANTINBANKRUPTCy’SRESOURCES

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Operational Income

SG Funding

Fiancial Year

Operating Costs be Source of Funding

Valu

e (£

’000

)2006/07 2007/08 2008/09 2009/10 2010/11

(Budget)2010/11

(projected spend)2011/12(Budget)


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In2011/12wehaveincreasedbudgetedexpenditureinanumberofareas,inpartduetoinflationaryupliftsbutalsoduetosomespecificchangesplannedin2011/12.

ThePayCostsbudgethasbeenincreasedby£443,000toaccountforexpectedincrementstosalaries,althoughthesemaynotoccurandaresubjecttoongoingnegotiationsbetweentheScottishGovernmentandTradeUnions.

ACCOUNTANTINBANKRUPTCy’SRESOURCES

AiB expenditure Budget 2010/11 (£000) 2011/12 (£000)

PayCosts 4,540 4,983

Travel&Subsistence 56 58

Accommodation 568 616

GeneralAdministration 1,149 1,830

NonCashExpenditure 846 475

OperationalExpenditure 6,223 4,920

Total Budgeted Revenue Costs 13,382 12,882

CapitalExpenditure 100 330

Total Budgeted Costs 13,482 13,212

AiB Budgeted Funding 2010/11 (£000) 2011/12 (£000)

IncomefromFeesandRecoveries 9,791 10,212

NetFinancingfromtheScottishGovernment 3,691 3,000

Total Funding Budget 13,482 13,212

OurAccommodationbudgethasincreasedduetocontractualincrementsintherentwepayforourleasedpremisesinKilwinning.WehavealsobudgetedforanincreaseinnationalnondomesticratespayabletoNorthAyrshireCouncil.

TheGeneralAdministrationbudgetincludes£700,000fortheChangeManagementBranchwithinAiBtofundprojectstoimproveeconomy,

efficiencyandeffectivenesswithintheAgency.£300,000includedforCapitalExpenditurewillalsobeallocatedtotheChangeManagementBranch.ChangeManagementBranchbudgetswereincludedwithinOperationalExpenditureBudgetsinthepreviousyear.

The Top level breakdown of our Budget for 2011/12 is:


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Corporate Services

10%5%

26%

59%

Policy & Compliance

Change Management Operations

TheNonCashExpenditurebudgethasdecreasedsubstantiallyfor2011/12asaccelerateddepreciationofourcurrentCasemanagementSystem,whichweexpectedtoberequiredin2010/11,isnolongerrequiredin2011/12.

Asin2010/11wearebudgetingforincreasesinincomeontheprioryear.AiBisworkingtowardsgreatercostrecoverythroughincomeandaspartofthistherewerenewfeesintroducedin2009/10.Includedinthe2011/12incomebudgetisthemoneyweintendtogeneratefromchangestotheDebtArrangementSchemeandforchangestoincomegenerationasaresultoftheintroductionoftheCertificateforSequestrationrouteintobankruptcy.

Wehaveheldmostfeesat2010/11levelsfor2011/12.Thisistoreflectthedifficultiesourcustomersmaybefacinginthecurrenteconomicenvironment.Theeffectoffreezingmostfeesisincludedinour2011/12incomebudget.

AiBoperateswithanumberofdistinctbranches,thewayinwhichourbudgetfor2010/11isallocatedisshowninthechart.

TOTAL2011/12BUDGETByBRANCH


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CaseOperationsBranchManagers

Annette Burns Graeme Perry

AccountsSupervision

CaseManagement

CaseAdministration

BankruptcyRestrictions

HeadofOperationalPolicy&Compliance

Vivian Leacock

OperationalPolicy

Guidance&Publications

Policy&CasesCommittee

ComplianceAudit

PolicyDevelopment

Legislation

Legislativeconsultation

HeadofFinance

James Wallace

Finance

FacilitiesManagement

ChangeProgrammeManager

Keith Jenkinson

ChangeManagement

MIDASdevelopment

BusinessModelling

Projects

CommercialServices

Katherine Morrison

InsolvencyService

ContractManagement

TheAccountantinBankruptcy/AgencyChiefExecutive

Rosemary Winter-Scott

HeadofPolicyDevelopment

Sharon Bell

ProcurementManagement

Kath Cowan

OrganisationalDevelopment&

Communications

Roz McCracken

ProcurementManagement

BusinessPlanning&Reporting

Communications

CorporateGovernance&HR

Learning&Development

DeputeAccountant/HeadofCaseOperations

John Cook

Non-ExecutiveBoardMembers(NEBMs)Fiona Gavine

Bryan JacksonYvonne MacDermid

Frank Shennan

HeadofPolicy&Compliance

Claire Keggie

DeputyChiefExecutive/HeadofCorporateServices

David Wallace

MANAGEMENTSTRUCTUREANDSTAFFING

In2010/11AiBappointed3newnon-executiveBoardmemberstoenhancetheBoard’sexpertiseandincreaseAiB’saccountabilityandtransparency.TherearethreemainbusinessunitswithinAiB–CaseOperations,

CorporateServicesandPolicyDevelopmentandCompliance.OurseniormanagementstructureandstaffresourcesasofMarch2011areillustratedinthefollowingchart:-

KeyChiefExecutiveNEBMSHeadofBranchOperationalManagersMembersofTheBoardExtendedManagementTeam


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POLICECROWN OFFICE

COURT OF SESSION

DEBTORS CITIZEN’S ADVICE SCOTLAND

INSOLVENCY PRACTITIONERS INSTITUTE OF PAYROLL PROFESSIONAL

REGISTERS OF SCOTLAND SCOTTISH PARLIAMENT

DEBT ADVISORY GROUPS SCOTTISH COURT SERVICE

SHERIFF COURTS CREDITORS

SCOTTISH CONSUMER COUNCIL CREDIT ENFORCEMENT AGENCIES

CREDIT UNIONS SCOTTISH CLEARING BANKS

SCOTTISH MINISTERS HM REVENUE AND CUSTOMS

PUBLIC SECTOR BODIES SHELTER

MONEY ADVICE SCOTLAND COMMUNITIES SCOTLAND

NATIONAL ARCHIVES OF SCOTLAND EQUAL OPPORTUNITIES COMMISSION

SCOTTISH GOVERNMENT GENERAL PUBLIC

LAW SOCIETY OF SCOTLAND LOCAL AUTHORITIES

COUNCIL OF MORTGAGE LENDERSINSOLVENCY SERVICE, ENGLAND, WALES AND NORTHERN IRELAND AND ABROAD

EUROPEAN COMMISSION (EU INSOLVENCY LEGISLATION)

INSTITUTE OF CHARTERED ACCOUNTANTS SCOTLAND (ICAS)

SMASO – SOCIETY OF MESSENGERS-AT-ARMS AND SHERRIF OFFICERS

AiB’sstakeholdersincludethefollowingpeopleandorganisations:

NB:Pleasenotethislistisnotexhaustiveandworkwillcontinuein2011/12toprogressourstakeholderengagement.

ANNExA–STAKEHOLDERS


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ForfurtherinformationaboutAiB,pleaseseeourwebsitewww.aib.gov.uk.

Wewelcomeyourcommentsandopinionstohelpuscontinuallyimprovetheservicethatweprovide.IfyouwishtomakeacommentaboutthisBusinessPlan2011/12,pleaseemail:[email protected].

ADDITIONALINFORMATION:

http://www.aib.gov.uk/

mailto:[email protected]


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Documents

Business plan 2011/12 - Accountant in Bankruptcy