TAYSIDE CONTRACTS JOINT COMMITTEE · 2019-11-12 · There was submitted Report No JC22/2019 by the Managing Director complementing the External Auditor’s report to Members on the

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TAYSIDE CONTRACTS JOINT COMMITTEE Dundee City Council 8 City Square DUNDEE DD1 3BA

8th November, 2019 TO: ALL MEMBERS OF TAYSIDE

CONTRACTS JOINT COMMITTEE Dear Sir/Madam

You are requested to attend a MEETING of the TAYSIDE CONTRACTS JOINT COMMITTEE to be held in the Council Chamber, Perth and Kinross Council, Council Offices, 2 High Street, Perth on Monday, 18th November, 2019 at 10.00 am.

Please submit any apologies for absence to Willie Waddell, Committee Services Officer, on

Telephone 01382 434228 or e-mail [email protected]

Yours faithfully

ROGER MENNIE

Clerk to the Joint Committee

Distribution:- Angus Council Dundee City Council Perth and Kinross Council Councillor Bob Myles Depute Lord Provost Bill Campbell Councillor Angus Forbes Councillor Gavin Nicol Bailie Christina Roberts Councillor Audrey Coates Councillor Angus MacMillan-Douglas Councillor Steven Rome Councillor Anne Jarvis Councillor Richard Moore Councillor George McIrvine Councillor Sheila McCole Councillor Beth Whiteside Councillor Margaret Richardson Councillor Dave Doogan Councillor Brenda Durno Councillor Philip Scott Councillor Mike Williamson

mailto:[email protected]

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AGENDA OF BUSINESS

1 APOLOGIES/SUBSTITUTIONS

2 DECLARATION OF INTEREST Members are reminded that, in terms of The Councillors Code, it is their responsibility to make decisions about whether to declare an interest in any item on this agenda and whether to take part in any discussions or voting. This will include all interests, whether or not entered on your Register of Interests, which would reasonably be regarded as so significant that they are likely to prejudice your discussion or decision-making.

3 MINUTE OF PREVIOUS MEETING - Page 1 The minute of meeting of the Tayside Contracts Joint Committee, held on 26th August, 2019, is submitted for approval. (Copy attached).

4 MEMBERSHIP- PERTH AND KINROSS COUNCIL It is reported that at the meeting of Perth and Kinross Council held on 25th September, 2019, it was agreed that Councillor Anne Jarvis replace Councillor Lewis Simpson as a member of Tayside Contracts Joint Committee. The Joint Committee is asked to note the change in membership as indicated.

5 WORKLOAD REPORT - Page 5

(Report No JC33/2019 by the Managing Director, copy attached).

6 BUSINESS PLAN – 6 MONTHS UPDATE - Page 17


7 AUDIT UPDATE - Page 31


8 ANNUAL PERFORMANCE REPORT 2018/2019 - Page 93


9 SCHOOL MEALS REGULATIONS 2020 – IMPACT ASSESSMENT - Page 117


10 TAYSIDE MEALS PRODUCTION CENTRE – TAY CUISINE - Page 123


11 DATE OF NEXT MEETING The next meeting of the Joint Committee will be held in the Committee Room 1, 14 City Square, Dundee on Monday, 16th March, 2020 at 10.00 am.

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The Joint Committee may resolve under Section 50(A)(4) of the Local Government (Scotland)

Act 1973 that the press and public be excluded from the meeting for the undernoted items of

business on the grounds that they involve the likely disclosure of exempt information as

defined in paragraphs 6, 8, 9 and 10 of Part I of Schedule 7A of the Act.

12 FINANCIAL OPERATING STATEMENT FOR THE 6 MONTHS TO

30TH SEPTEMBER, 2019

13 ACCEPTANCE OF TENDERS OVER £25,000 FOR THE THREE MONTHS FROM

1ST JULY, 2019 TO 30TH SEPTEMBER, 2019

14 FLEET PURCHASES 2019/2020 – PHASE 4

ITEM No …3….……..

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At a MEETING of the TAYSIDE CONTRACTS JOINT COMMITTEE held at Perth on 26th August, 2019. Present:- Representing Angus Council:- Councillor Gavin Nicol Councillor Angus MacMillan-Douglas Councillor Richard Moore Councillor Beth Whiteside Councillor Brenda Durno Representing Dundee City Council:- Depute Lord Provost Bill Campbell Bailie Christina Roberts Councillor Steven Rome Councillor George McIrvine Representing Perth and Kinross Council:- Councillor Angus Forbes Councillor Audrey Coates Councillor Lewis Simpson Councillor Dave Doogan Councillor Sheila McCole Councillor Mike Williamson Councillor Gavin NICOL, Convener, in the Chair. I APOLOGIES/SUBSTITUTIONS Apologies for absence were submitted on behalf of Councillor Bob Myles (Angus Council), Councillor Margaret Richardson (Dundee City Council) and Councillor Philip Scott (Dundee City Council). II DECLARATIONS OF INTEREST There were no declarations of interest. III MINUTE OF PREVIOUS MEETING The minute of meeting of the Tayside Contracts Joint Committee held on 24th June, 2019, was submitted and approved. IV WORKLOAD REPORT There was submitted Report No JC21/2019 by the Managing Director providing an update of the workload for the Facilities Services Division and Construction Division for the first quarter of 2019/2020 and the second and third quarter of 2019/2020, and details of the actions being taken in response to these workloads. The Joint Committee agreed to note the contents of the report and that further detailed reports would be brought forward as necessary.

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V AUDIT UPDATE There was submitted Report No JC22/2019 by the Managing Director complementing the External Auditor’s report to Members on the audit of the year ended 31st March, 2019, and highlighting the key findings included in the Auditor’s report. The report also provided an update on Internal Audit work carried out by the Internal Auditors, Wylie and Bisset, during the financial year 2019/2020. The Joint Committee agreed:- (i) to note the contents of the report and the External Auditor’s covering letter which was

attached to the report at Appendix 1 and the External Auditor’s report which was attached to the report as Appendix 2;

(ii) to approve the action plan detailed at Page 22 of Appendix 2 of the External Auditor’s

report; (iii) to approve the audited Annual Accounts which was attached to the report as

Appendix 3; and (iv) to note the Internal Audit Report, the contents of which were positive and which was

attached to the report as Appendix 4. VI EQUALITY MAINSTREAMING PROGRESS REPORT There was submitted Report No JC23/2019 by the Managing Director advising of progress to date in fulfilling Tayside Contracts’ statutory equalities duties and seeking approval for the intended approach going forward. The Joint Committee agreed:- (i) to note Tayside Contracts’ progress to date in fulfilling its statutory general equalities

duties; (ii) to approve the proposed approach in future, as detailed at Section 9 of the report; and (iii) to note that in relation to figures within the report outlining disciplinary by gender for

organisation that these should read 19 females and 22 males. VII ANNUAL SICKNESS ABSENCE MANAGEMENT AND HEALTH SURVEILLANCE

REPORT 2018/2019 There was submitted Report No JC24/2019 by the Managing Director providing a narrative to, and statistical analysis of, sickness absence costs and other relevant information associated with the management of sickness absence by the financial year 2018/2019. The Joint Committee agreed to note the contents of the report and to continue to support the management of sickness absence effectively and cost efficiently as detailed in the report. VIII ANNUAL RECRUITMENT AND RETENTION REPORT 2018/2019 There was submitted Report No JC25/2019 by the Managing Director providing a narrative to, and statistical analysis of, recruitment costs, retention rates and other relevant data for the financial year 2018/2019. The Joint Committee agreed to note the contents of the report.

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IX ANNUAL TRAINING AND DEVELOPMENT REPORT There was submitted Report No JC26/2019 by the Managing Director advising that Tayside Contracts was committed to the training and development of their employees and had, as one of their 4 key values, “Investment in Employee Development”. The report detailed training and development activities undertaken in the financial year 2018/2019 and plans for 2019/2020. The Joint Committee agreed to note the activities and achievements during 2018/2019 and the training and development activities planned for 2019/2020 as outlined in the report. X ANNUAL HEALTH AND SAFETY REPORT There was submitted Report No JC27/2019 by the Managing Director outlining the occupational health and safety developments and performance of Tayside Contracts during the year 2018/2019 and the key health and safety objectives for 2019/2020. The Joint Committee agreed to note the health and safety activities undertaken in 2018/2019 and approve the aims and objectives for 2019/2020. XI PERCENTAGE SHARE OF THE BUSINESS There was submitted Report No JC28/2019 by the Managing Director seeking the approval of the Joint Committee of the percentage shares of the business to be applied to the surpluses in 2019/2020. The Joint Committee agreed to approve the percentage shares of the business applicable for the financial year 2019/2020 as detailed in the report. XII PROGRAMME OF MEETINGS 2020 The Joint Committee agreed that the programme of meetings for the Joint Committee over 2020 be as follows:- Date Time Venue Monday, 16th March, 2020 10.00 am Committee Room 1, 14 City Square, Dundee Monday, 22nd June, 2020 10.00 am Committee Room 1, 14 City Square, Dundee Monday, 24th August, 2020 10.00 am Committee Room 1, 14 City Square, Dundee Monday, 16th November, 2020 10.00 am Committee Room 1, 14 City Square, Dundee XIII DATE OF NEXT MEETING The Joint Committee agreed to note that the next meeting of the Joint Committee would be held in the Council Chamber, Council Offices, Perth and Kinross Council, 2 High Street, Perth on Monday, 18th November, 2019 at 10.00 am. The Joint Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 6, 8 and 9 of Part I of Schedule 7A of the Act. XIV FINANCIAL OPERATING STATEMENT FOR THREE MONTHS TO

30TH JUNE, 2019 There was submitted Report No JC19/2018 by the Managing Director detailing Tayside Contracts’ financial performance for the three months to 30th June, 2019 in comparison against both the budget, and the same period for the previous year, and outlined the financial prospects for the remainder of the financial year.

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The Joint Committee agreed to note the contents of the report. XV FLEET PURCHASES 2019/2020 PHASE 3 Reference was made to Article XII of the minute of meeting of this Joint Committee held on 18th March, 2019 wherein the report on the Revenue and Investment Budget 2019/2020 was approved. There was submitted Report No JC20/2019 by the Managing Director detailing the proposed 2019/2020 Phase 3 purchases of various fleet items, the estimate costs of which were included within the Revenue and Investment Budget 2019/2020. The Joint Committee agreed:- (i) to approve the purchases detailed in Appendix 1 of the report; (ii) to authorise the Managing Director to place orders subject to the successful tenders

not exceeding 10% of the estimated figures; and (iii) to authorise the Managing Director to place orders if the successful tenders exceeded

10% of the estimated figures after agreement by the Convener, Vice Convener and Vice Convener-Elect.

XVI FLEET PURCHASES 2020/2021 – 26T(GVW) CHASSIS CAB AND SURFACE

DRESSING BITUMEN There was submitted Report No JC29/2019 by the Managing Director seeking approval for the advanced ordering of a 26t Gross Vehicle Weight (GVW) Chassis Cab and Surface Dressing Bitumen Distributor to be funded from the 2020/2021 Investment Budget. The Joint Committee agreed:- (i) to approve the cost of £208k from the 2020/2021 Revenue and Investment Budgets,

for the purchases detailed in Appendix 1 of the report; and (ii) to authorise the Managing Director to place orders subject to the successful tenders

not exceeding 10% of the estimated figures. XVII FLEET PURCHASES 2020/2021 – 19T(GVW) CHASSIS CAB WITH

REFRIGERATED BOX VAN BODY AND TAIL LIFT There was submitted Report No JC30/2019 by the Managing Director seeking prior approval from the Joint Committee for the purchase of a 19t Gross Vehicle Weight (GVW) Chassis Cab fitted with a refrigerated box van body and a tail lift, funded from the 2020/2021 Investment Budget. The Joint Committee agreed:- (i) to approve the cost of £97k for the purchases detailed in Appendix 1 of the report; and (ii) to authorise the Managing Director to place an order subject to the successful tenders

not exceeding 10% of the estimated figures. Gavin NICOL, Convener.

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ITEM No …5….……..

REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: WORKLOAD REPORT REPORT BY: MANAGING DIRECTOR REPORT NO: JC33/2019 1.0 PURPOSE OF REPORT 1.1 This report provides the Joint Committee with an update of the workload for the

Facilities Services Division and Construction Division for the second quarter of 2019/20, projections for the third and fourth quarters and details of the actions being taken in response to these workloads.

2.0 RECOMMENDATIONS

2.1 It is recommended that the Joint Committee note the contents of this report and that further detailed reports will be brought forward as necessary.

3.0 FINANCIAL IMPLICATIONS 3.1 There are no direct financial implications arising from this report. 4.0 FACILITIES SERVICES DIVISION WORKLOAD REPORT CATERING UNIT 4.1 General 4.1.1 Tayside Contracts continue to monitor and analyse meal uptake across Tayside. 4.2 Current Position 4.2.1 This report details performance in each of the Council areas for the second quarter of

the financial year 2019/20, comparing actual performance against budget. 4.3 Meal Uptake – Background/Context

4.3.1 The reasons for fluctuation in meal uptake are often hard to identify. However, where it

is possible to identify reasons Tayside Contracts enacts interventions accordingly. 4.3.2 There is little merit in comparing meal uptake by quarter with the previous year given

the variations in the number of trading days each year. A valid comparison with the previous year’s performance can only be made by comparing daily meal uptake, which is

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illustrated at paragraph 4.4.5. Therefore, for the cumulative meal uptake to date information below comparison is with 2019/20 budget targets.

4.3.3 All Areas - Comparison of Meal Uptake v Budgeted Meal Uptake 2019/20

Actual Meal Numbers Budget Meal Numbers Variance Variance % 2,104,830 2,211,185 -106,355 -4.8%

4.3.4 All Areas - % Uptake

Meal Uptake Primary Secondary

% of whole school roll taking school meals 50.6% 45.9% % of those entitled to free meals who have taken school meals 66.4% 61.8%

4.3.5 Angus Area - Comparison of Meal Uptake v Budgeted Meal Uptake

Budget Comparison

Actual Meal Numbers

Budgeted Meal Numbers

Variance Variance %

Primary 371,701 397,240 -25,539 -6.4%

Secondary 224,564 224,585 -21 0%

4.3.6 Angus Area – % Uptake



4.3.7 Dundee Area - Comparison of Meal Uptake v Budgeted Meal Uptake

Budget Comparison

Actual Meal Numbers


Variance Variance %

Primary 507,757 559,136 -51,379 -9.2%

Secondary 277,590 251,278 +26,312 +10.5%

4.3.8 Dundee Area Meal – % Uptake



4.3.9 Perth and Kinross Area - Comparison of Meal Uptake v Budgeted Meal Uptake

Budget Comparison

Actual Meal Numbers


Variance Variance %

Primary 405,160 441,801 -36,641 -8.3%

Secondary 213,857 220,540 -6,683 -3%

All Age 104,201 116,605 -12,404 -10.6%

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4.3.10 Perth and Kinross Area - % Uptake

Meal Uptake

Primary Secondary All Age

% of whole school roll taking school meals 52.4% 41.4% 40.0% % of those entitled to free meals who have taken school meals

69.5% 46.4% 59.3%

4.4 Summary of Key Trends in Meal Uptake Across All Areas 4.4.1 The salient trend across primary schools in all Council areas, is a downturn compared

with budget. 4.4.2 The downturn may be attributed to phasing in changes to the menu in preparation for

the changes which will become a statutory requirement in October 2020. The legislation will require a reduction in red meat and sugar, an increase in fibre content and the introduction of new salads as accompaniments to the daily sandwich option.

4.4.3 Other factors influencing uptake are the decrease in the Dundee primary school roll and

a decrease in free meal entitlement in both Dundee and Perth and Kinross areas. 4.4.4 Overall secondary school meal uptake is ahead of budget. The excellent performance in

Dundee secondary schools more than offsets the downward trend in Perth. 4.4.5 The graph below shows an upward trend of daily meal uptake over the past five years:

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4.4.6 The Scottish Government’s annual Healthy Living Survey of all Scottish schools took

place in February 2019. The Survey results reflect a comparatively strong performance across Tayside compared to the Scottish average, especially in secondary schools.

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10%

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30%

40%

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60%

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90%

P1-P3 Free Meal Uptake P4-P7 Meal Uptake Overall Primary MealUptake

Secondary Meal Uptake

Healthy Living Survey Results 2019

Perth and Kinross Dundee Angus Scotland

4.4.7 The Survey ‘league table’ for all meals (free or paid) also shows the Tayside Councils to

be performing well, particularly in Angus and Perth and Kinross.

PRIMARY SCHOOLS SECONDARY SCHOOLS

Local Authority % of Pupils who took school meals (free or paid for) on census day

Local Authority % of Pupils who took school meals (free or paid for) on census day

1. Inverclyde 75.9 1. East Renfrewshire 69.0

2. Aberdeenshire 71.5 2. Highland 62.3

3. Midlothian 70.7 3. Midlothian 60.0

4. East Renfrewshire 70.6 4. Perth & Kinross 59.9

5. Argyll & Bute 70.5 5. Dumfries & Galloway 56.8

6. Dumfries & Galloway 70.2 6. Angus 56.0

7. North Lanarkshire 68.8 7. North Lanarkshire 54.2

8. Perth & Kinross 66.2 8. Stirling 52.8

9. Angus 65.4 9. Inverclyde 49.9

10. Moray 65.1 10. South Lanarkshire 49.8

11. Scottish Borders 64.8 11. West Lothian 48.9

12. Dundee City 63.1 12. East Ayrshire 48.1

13. Falkirk 62.9 13. Clackmannanshire 47.6

14. Aberdeen City 62.8 14. Aberdeenshire 47.4

15. South Lanarkshire 62.7 15. Scottish Borders 47.3

16. Glasgow City 62.6 16. Dundee City 45.8

Scotland 62.4 Scotland 45.2

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NOTE: The Scottish Government figures above are based on percentage uptake amongst pupils who attended on Census Day whereas Tayside Contracts’ data measures percentage uptake against the school roll.

4.5 Tay Cuisine Meal Uptake - Comparison of Meal Uptake v Budgeted Meal Uptake

Budget Comparison

Actual Meal Numbers


Variance Variance %

Lunches 39,228 39,815 -587 -1.5%

Teas 54,259 60,205 -5,946 -9.9%

Other 27,821 25,176 +2,645 +10.5%

4.5.1 The provision of packed lunches by Tay Cuisine for ‘The Dundee Fun and Food

Programme’ continues to be very successful. This financial year to date, Tay Cuisine has provided 9,391 breakfasts and 26,694 lunches to many children who would otherwise have gone hungry. Tay Cuisine also provided Angus Council with just under 1,000 lunches for children attending holiday clubs during the Easter break. This provision is expected to continue during the October break.

4.6 Catering Unit – Future Challenges and Opportunities 4.6.1 Tayside Contracts continue to vigorously promote school meals and is working closely

with Education staff to further improve school meal uptake on a school by school basis. 4.6.2 The greatest challenge facing the catering service over the next year are the demands of

providing an estimated 1.2 million additional meals as a result of the Early Learning and Childcare expansion. In Angus and Dundee, this will be achieved through the implementation of a Tayside Meals Production Centre (TMPC) in August 2020 for the provision of these additional meals plus primary school meals and community meals on behalf of Dundee City Council. As Perth and Kinross Council is not participating in the TMPC model their additional meals will be provided through the more labour intensive existing production process which will require recruiting around an additional 40 employees, which will be extremely challenging in an area with as low unemployment as Peth and Kinross.

4.6.3 The school catering service across Scotland is also currently preparing for the

considerable challenges presented by proposed changes to food and nutrition legislation. These changes are likely to be implemented around October 2020. Given that these changes are due to take full effect at the same time as the implementation of the TMPC, it is important to phase in the legislative changes to avoid any misperception that changes to menus are as a result of the TMPC. Therefore, the new menu introduced in April 2019 was designed to incorporate some of the anticipated legislative changes. A customer survey was used as a means of both educating about the new legislation and also eliciting the views of our customers to ensure that the menu is both legally compliant and, as far as is practicable, reflective of the wishes of our customers.

FACILITIES MANAGEMENT (FM) UNIT 5.1 General

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5.1.1 The primary focus within the FM unit is to reduce costs and expand our business portfolio whilst continuing to improve service quality. Success in this regard is illustrated by the integrated FM services now in place in all three Council areas which have, to date, achieved cash savings to the three Councils combined of in excess of £2.5m, whilst maintaining and often improving service quality in all three areas.

5.2 Current Position

5.2.1 The following table summarises income from each of the Council areas for the second

quarter of financial year 2019/20, comparing actual performance against budget.

Income Comparison

Performance v Budget %

Angus +2%

Dundee +0.6%

Perth and Kinross +6.1%

Total +2.9%

Angus

5.2.2 Angus’ positive performance is attributed to most income streams meeting or exceeding

their targets. Additional income has been achieved through new cleaning business as well as a number of ‘one-off cleans’ requested by clients.

5.2.3 The implementation of the new Period Poverty legislation has resulted in significant

additional income from both the provision of sanitary products across the school estate and also to over a hundred additional non-school premises in Angus.

Dundee

5.2.4 There has been a strong performance in the Dundee area despite the cessation of the

Fire Service Contracts. The increase in office and commercial cleaning along with additional communal cleaning locations have contributed to the positive performance.

5.2.5. The provision of sanitary products in schools and community locations across Dundee

city are scheduled to begin shortly.

Perth & Kinross 5.2.6 Perth and Kinross’s performance against budget has been positive, particularly in Void

House cleaning, which has increased significantly. The additional works for property services during weekends and the Easter break, as well as the new cleaning contract at Pullar House have contributed to this position.

5.2.7 The provision of sanitary products in schools and community locations across Perth and Kinross begin after the October break.

6.0 Overall Facilities Management

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6.1.1 The FM Unit continues to demonstrate a strong performance against budget. 7.0 Anticipated Workload

7.1.1 The delivery of integrated FM services continues to exceed expectations in terms of

service quality and customer satisfaction as well as achieving the projected savings for Angus, Dundee City and Perth and Kinross Councils.

7.1.2 In the Angus and Dundee areas, the PPP schools cleaning contracts continue to operate successfully and profitably.

7.1.3 As part of Tayside Contracts business plan strategic objective to expand and diversify,

numerous high-income and potentially profitable future business opportunities for the FM Unit have been identified and are currently under active consideration.

8.0 CONSTRUCTION DIVISION Workload - Construction Division 8.1 General 8.1.1 The previous workload update, report number JC21/2019, provided to the Joint

Committee in August 2019 conveyed a positive workload position for the first quarter of the 2019/20 financial year, with programmes fully populated by received orders and additional work commissions gained through competitive tender. For the second quarter of the financial year, capital programmes were to provide the majority of the work in all Council areas with surface dressing and carriageway resurfacing activities being the predominant source of revenue. The third quarter forecast was looking positive with programmes of intent received from all areas.

8.1.2 The workload position experienced in the second quarter of 2019/20 was as planned,

with full programmes of work received in all areas during the period. The programme for the final two quarters is similarly populated following development of Client programmes in all areas with a corresponding flow of work.

8.2 Current Position – July – September 2019

Angus Area

8.2.1 The work undertaken during the second quarter featured a diverse range of activities

provided by Tayside Contracts. Surface dressing operations were completed at the end of August with works being carried out in Angus, Dundee, Perth and Kinross, West Lothian and Aberdeenshire, including the Balmoral Estate and works for other private Clients. A number of substantial drainage improvement schemes were undertaken throughout this period with further works of this nature being notified for the remainder of the year.

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8.2.2 Carriageway surfacing activity was a key contributor to workload during this period in Angus with works completed at Grange Road in Arbroath and Queen Street / Green Street in Forfar. Work received through the Timber Transport commission have continued with construction of passing places from the top of Glen Doll and into Glen Clova completed. Footway works were undertaken during the period with both reconstruction and slurry sealing activities progressing. Routine and cyclic maintenance activities have continued with gully cleaning, sign erecting, road marking and patching activities completed during the second quarter.

8.2.3 The works programme for the second quarter was fully populated and included cross-

boundary working with projects completed in the Dundee and Perth & Kinross areas. These cross-boundary works have utilised three of the Angus areas works squads throughout the second quarter.

8.2.4 Street lighting works were completed at Brechin Industrial Estate, Hillview Terrace

Bridgefoot and Gravesend, Arbroath. Energy saving LED replacements were installed in Montrose together with ongoing maintenance tasks.

8.3 Dundee Area

8.3.1 The workload within the Dundee area was very healthy with a full works programme

developed for the whole of the period for both the adopted and the non-adopted Council assets. Seasonal activities continued with completion of the annual surface dressing and slurry sealing programmes during the second quarter.

8.3.2 Capital maintenance works continued during the period with completion of a number of

resurfacing schemes including Albert Street and sections of Strathmartine Road. Works were also progressed on the footway maintenance programme which saw reconstructions delivered at Bingham Terrace, Bath Street and Mains Road. The structural patching programme was progressed with permanent repair patching completed at a number of individual locations throughout the city.

8.3.3 Improvement projects were also delivered during the second quarter for a number of

non-roads clients. These include the resurfacing of the main pedestrian access to Ninewells Hospital for NHS Tayside, undertaken through nightshift operations. Installation of new parking bays on Balunie Avenue and improved drainage provision at the Balmuir Woods travelling persons site. Playground maintenance and drainage works were completed during the school holidays at a number of establishments including Craigie High School, Clepington Road and Camperdown Primary Schools.

8.3.4 Street lighting works continued during the period with apparatus renewals completed

throughout the City at sites including Hyndford Place, Clement Park and Menzieshill Community Centre. The ongoing rollout of the LED conversion programme continued with works in the West end of the city. The Partnership also completed the installation of LED lanterns on the Tay Road Bridge Newport steps.

8.4 Perth and Kinross Area

8.4.1 The Perth and Kinross area had a full programme of work in the second quarter with

activities predominantly associated with carriageway resurfacing, overlay and surface

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dressing. The surface dressing programme progressed efficiently and with minimal delays experienced even with the changeable weather experienced through the summer and resultingly all projects were completed on time and on budget.

8.4.2 Routine and cyclic maintenance continued in the period with gully cleaning, sign

erection and patching activities delivered. The strategy for first time permanent repair of pothole defects continued with a transition towards increased repair longevity.

8.4.3 A number of high profile improvement projects were completed during the period

including resurfacing of the final section of Glasgow Road at Cherrybank and junction improvements at Broich Road in Crieff. A 1km resurfacing project on the A823 at Glendevon was also delivered in the period which included 5km of patching either side of the resurfacing extents. As part of the Timber Transport commission, road widening and drainage improvements were carried out on the B827 from Comrie to Braco, with a further phase of resurfacing work planned in the third quarter. Extensive work has been completed during the second quarter at Barrack Street junction in Perth, which involved reconfiguration and resurfacing of the junction, and reposition of traffic islands and signals.

8.4.4 Street lighting works continued during the period with apparatus renewals completed

throughout the Council area at sites including Tweedsmuir Road and Main Street, Perth. The ongoing rollout of the LED conversion programme continued with works at lower 5m and 6m height columns completed.

8.5 The anticipated workload position for the third and fourth quarters of 2019/20

October - December 2019

8.6 Angus Area

8.6.1 The works programme for the third quarter in Angus covers a mixture of carriageway resurfacing, drainage maintenance, footway resurfacing and minor improvement schemes such as installation of new traffic signals at Westway in Arbroath. Routine and cyclic maintenance will continue along with a programme of retaining wall repair work.

8.6.2 The Timber Transport commission for installation of new passing places will continue

throughout this period with two further phases of work identified in Glen Clova. Angus Council Housing Department footway maintenance schemes are programmed for this period together with traffic signal and road safety works for Perth and Kinross Council at locations including Coupar Angus Road in Blairgowrie and Alyth Road in Meigle.

8.6.3 Winter maintenance tends to pick up over this period and we are prepared to meet the

challenges that this brings. Discussion on workload requirements will continue to take place with the Client on a regular basis throughout the period to mitigate any possible continuity issues.

8.6.4 Streetlighting works continue with capital projects planned for Mill Street, Montrose

and Colliston (A993). LED lantern installations continue together with preparation works for festive lighting throughout the area.

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8.7 Dundee Area

8.7.1 Winter maintenance tends to pick up over this period and the formal Partnership is well

prepared to meet the challenges that lie ahead. Operationally, there is a healthy programme of works with the footway and carriageway programmes continuing through this period on the adopted and non-adopted networks.

8.7.2 Improvement schemes shall also be delivered in the third quarter including traffic and

road safety improvements on Brook Street, Old Glamis Road and Dudhope Terrace. The Partnership shall also be commencing a programme of car park constructions for the Housing Service with development of parking at former lock up sites.

8.7.3 Works will continue during the third quarter on delivery of routine and reactive works

with programmes scheduled for delivery on permanent repair patching and maintenance repairs of drainage apparatus.

8.7.4 Street lighting improvements are planned at a variety of locations including Kinnoull

Road and Carlunie Road which will feature work to replace existing life-expired columns in order to accommodate new LED lighting. The ongoing rollout of LED continues with works being completed in residential areas to the West of the city and higher mounted equipment on major distribution routes across the city. Day to day routine maintenance will continue as public reports are expected to increase following the clock change.

8.8 Perth and Kinross Area

8.8.1 A full programme of works has been developed for the third quarter which includes

completion of the works at the Barrack Street junction in Perth and further work associated with the Timber Transport commission including construction of passing places and road widening on the South Loch Rannoch Road.

8.8.2 Works for other Council Clients will commence in this period including construction of

parking areas for the Housing Department utilising Estate Based Initiative funding packages. Work will also continue on installing vehicle activated signs for the traffic and road safety section and minor bridge repairs. Additionally, routine and cyclical activities will continue during the period in relation to gully cleaning and defect repairs.

8.8.3 Winter service will commence in the third quarter and resources required in this service

delivery are established and ready for deployment. Depending on the extent of the winter operational activity, planned works schedules may require to be adjusted to accommodate the weather however, close monitoring and ongoing regular communication with Clients and stakeholders shall ensure this is achieved with minimal disruption.

8.8.4 Street lighting works continue in Perth in the Gowrie Street, Dundee Road and Muirhall

Terrace areas in Perth. The ongoing rollout of the LED conversion programme continues with works at the lower height columns within the residential areas of Perth.

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January to March 2020

8.9 Angus Area

8.9.1 There is still some uncertainty as to workload orders anticipated for the final quarter of the year in the Angus area, however discussions are being held with Clients to ensure the resource programme is fully occupied to the end of the year. Carriageway and footway resurfacing schemes have been identified and there is a substantial programme of work identified in Housing Department car parks and footways awaiting final confirmation. Resource from the Angus area will continue to be deployed to the traffic signal and road safety programme for Perth & Kinross Council during this period also. Routine and cyclic maintenance activities will continue throughout the final quarter with gully cleaning, sign erection, road marking and patching continuing in addition to winter maintenance activities.

8.9.2 The capital replacement of lighting apparatus will continue in the final quarter with

works planned in North Craigo, Montrose. Daily maintenance repairs are anticipated to increase during this period with the change to shorter daylight hours.

8.10 Dundee Area 8.10.1 The forecast is for the completion of the non-adopted asset programme and the

footway programmes during this period, these will be supplemented by cyclic maintenance and other Council department works such as a surfacing sections of the green circular cycleway. As always, the programme will be dictated by the winter weather, however, both will ensure the workforce is gainfully employed throughout the final quarter.

8.10.2 Additional work orders continue to be received including further externally funded commissions, however all work will be managed and accommodated within the resource programme to ensure delivery during the remainder of the financial year.

8.10.3 The ongoing rollout of LED conversions will continue with works on the higher mounted

strategic routes across the city and additionally some ornate columns. Capital column replacements to complement the LED installation works will extend to the main distributor roads throughout the city.

8.11 Perth and Kinross Area 8.11.1 Works are identified to fully utilise the workforce during the final quarter of the year

with activities predominantly associated with drainage, footway and barrier works. Winter shall dictate the progress of works to a large degree over this period and close monitoring will be undertaken to mitigate disruption to scheduled activities.

8.11.2 The ongoing rollout of LED conversions will continue with works in the residential areas

of Perth, Alyth and Blairgowrie. Electrical testing and repairs will continue with daily maintenance repairs also continuing throughout the period.

15

9.0 EQUALITIES ASSESSMENT 9.1 The issues considered within this report have, as required by legislation, been the

subject of consideration from an equalities perspective. 9.2 An equalities impact assessment (EqIA) is not required. 10.0 CONSULTATIONS 10.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report. 11.0 BACKGROUND PAPERS 11.1 None. Iain C Waddell Managing Director

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ITEM No …6….……..

REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: BUSINESS PLAN – SIX MONTHS UPDATE REPORT BY: MANAGING DIRECTOR REPORT NO: JC34/2019 1.0 PURPOSE OF REPORT

1.1 This report seeks to provide the Joint Committee with the six months update of

progress for 2019/20 against the priorities, action plans and targets detailed in Tayside Contracts’ business plan for the period 2017 to 2020.

2.0 RECOMMENDATIONS 2.1 It is recommended that the Joint Committee approve the content of this report.

3.0 FINANCIAL IMPLICATIONS

3.1 There are no specific financial implications associated with the approval of this

report. 4.0 BACKGROUND

4.1 The Joint Committee at its meeting on 26 June 2017 approved a new business plan

for Tayside Contracts for the period 2017 to 2020, reference report number JC12/2017.

4.2 This report is the review of progress which has been made against the key priorities,

action plans and targets for the first six months of financial year 2019/20. 5.0 MONITORING 5.1 To ensure that the business plan is a meaningful working document action plans and

targets contained within it are monitored on a regular basis. The monitoring of this along with the various units’ service improvement plans which feed from the business plan have been monitored regularly by the Corporate Management Team.

5.2 In addition to this the Governance and Strategy Group, consisting of Tayside

Contracts’ Executive Officers Team and a senior representative from each of the constituent Councils is involved in monitoring progress against the key business plan targets. This also assists in further strengthening the corporate governance of Tayside Contracts through improved involvement and dialogue with key stakeholders.

17

5.3 Information relating to the financial performance and the workload of Tayside Contracts is also reported to each meeting of the Joint Committee.

6.0 GENERAL 6.1 The business plan is the key document in Tayside Contracts’ planning. This plan has

identified the key objectives for the organisation and the framework of how this will be achieved along with identifying the success criteria which will be used for measurement.

6.2 Supporting the business plan are comprehensive service improvement plans for each

of the divisions and units of Tayside Contracts. These service improvement plans contain the details of how each of the divisions and units contribute to the key aims, objectives and targets set out in the business plan. They also identify the key targets and performance indicators which are used to measure the success of service delivery within these divisions and units and therefore ultimately Tayside Contracts.

6.3 The business plan and service improvement plans are working documents and are all

reviewed on a quarterly basis and updated on an annual basis. 7.0 PERFORMANCE MONITORING 7.1 Identified within the business plan are several key performance indicators (KPIs).

Appendix 1 provides the details on the progress which has been made against these indicators for the first six months of 2019/20.

7.2 In general, good progress has been made against the key areas which have also been

reflected in the KPIs achieved, where measurement is possible at this interim stage. 8.0 CORPORATE IMPROVEMENT PLAN 8.1 Following the approval of the business plan an annual corporate improvement plan

was developed detailing how the Corporate Management Team would address the risks and opportunities identified in the business plan and deliver on the aims, objectives and efficiencies detailed in it.

8.2 Appendix 2 provides the details of progress against the issues identified in the

corporate improvement plan 2019/20. In general, good progress has been made against the identified issues.


subject of consideration from an equality’s perspective. 9.2 An equalities impact assessment (EqIA) is not required.

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10.0 CONSULTATIONS 10.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report. 11.0 BACKGROUND PAPERS 11.1 None Iain C Waddell Managing Director

19

20

Appendix 1 Summary of KPIs and Targets

21

Appendix 2 CORPORATE IMPROVEMENT PLAN 2019/20

Enabler Action

Achieved by

Result

Target Date

6 Months Update

1 a) b)

Leadership Develop vision, values and ethics

Develop, implement and continuously improve management systems

Produce a new Business Plan for the period 2020 -2023 which builds on the vision, values and ethics of the organisation contained within the current Business Plan. These are: Vision: To be the preferred business model delivering an increasingly diverse range of high quality, cost-efficient front-line services. Values: The 4Ps – People, Performance, Partnership, Perception. Ethics: Open and honest, prudent financial management, listening and reactive, respectful. Continue to build on the standard operating procedures (SOPs) already in existence and ensure that all employees are appropriately trained in these. Continue to streamline processes by electronic means to reduce the amount of manual intervention.

Joint Committee approval at March 2020 meeting Satisfied customers Motivated people Community benefit Business Improvement Business Improvement

March 2020

March 2020

March 2020

In progress Ongoing Ongoing

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

c) d) e)

Engage with external stakeholders

Reinforce a culture of excellence Ensure that the organisation is flexible and manages change effectively

Regularly get the views of the constituent Councils’ Chief Executives through face to face meetings or through the Governance and Strategy Group (GSG) also the views of the Elected Members through the Joint Committee. Continue to work with the trade unions to the benefit of both the organisation and our employees. Continue to develop the concept of “lean thinking” by reducing waste in all its forms throughout the organisation. Continue to review and develop our Health and Safety systems and processes throughout the organisation to ensure a safe working environment. With the austerity measures we are facing change is part of the environment in which we operate. We need to ensure that: i. Organisational structures are

continually under review and will be amended as necessary to ensure that they remain fit for purpose.

Stakeholder involvement Stakeholder involvement Business Improvement Business Improvement Business Improvement

March 2020

March 2020

March 2020

March 2020

March 2020

Meeting held with Chief Executives on 21 June 2019 and a Facilitated day with management teams to be held in December 2019. Quarterly meetings held with trade unions at various levels. Ongoing Ongoing HR and Finance units have undergone minor structural changes in the first six months.

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

ii. Decision making and the responsibility which goes with it is pushed down to the appropriate level.

iii. SMT and other teams as appropriate are given the responsibility and accountability for relevant decision making.

iv. Actively pursue new sources of profitable income streams through the delivery of additional services or transferred services from the constituent Councils; including the pursuit of external new business.

Ongoing Ongoing A report was put to the Chief Executives on 21 June 2019 identifying new and additional work streams.

2 a)

Policy & Strategy Determine needs and expectations of stakeholders and the external environment

i. Through the GSG determine the

needs and expectations of constituent Councils.

ii. Through quarterly meetings determine needs of the trade unions.

iii. Through regular client liaison meetings determine needs of service delivery.

iv. Through team briefings and employee meetings determine needs of employees.

Stakeholder involvement

March 2020

This will be discussed at the facilitated day. This is discussed at the quarterly meetings. This is discussed at the quarterly meetings. Quarterly team briefings take place and a separate employee briefing system is in place.

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

b) c) d) e)

Understand performance and capabilities Ensure that supporting policies are developed, reviewed and updated Ensure that policies are communicated, implemented and monitored Website and Social Media

v. Through market research determine needs of the various markets.

i. Ensure the aims and objectives of the

business plan are fully delivered. ii. CMT to review quarterly the delivery

of the various units Service Improvement Plans (SIPs).

Using the Corporate Improvement Plan and the various Service Improvement Plans ensure that appropriate policies are in place, reviewed and updated as necessary to deliver the aims, goals and objectives of the Business Plan. i. Ensure areas identified for

action/improvement through the 2017 employee survey are fully delivered.

ii. Ensure that the Communications

Strategy is consistently complied with using audits.

i. Ensure that all employment policies

and necessary information are available on both the website and the

Business strategy Business strategy Motivated people Motivated people Motivated people

March 2020

March 2020

March 2020

March 2020

March 2020

No formal market research has been undertaken but there has been much informal work undertaken. All aspects are being delivered. Quarterly reviews have taken place and SIPs are being delivered. This has been monitored on a quarterly basis and the results can be seen in the KPI information. In Progress In Progress Complete

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

intranet and in a range of formats. ii. Use social media as appropriate.

Ongoing

3 a) b) c) d)

People Ensure people plans support the strategy of the organisation Develop the knowledge and capabilities of employees Ensure people are aligned, involved and empowered Ensure effective communication throughout the organisation

Ensure that the Tay Review process and timetable is complied with. Continue to utilise the Leadership and Management Development Strategy (LMDS) as a framework to deliver, training and development to managers to support leadership development and succession planning. i. Managing Director to continue to run

quarterly development sessions. ii. Continue to roll out the external and

internal training in place to support succession planning throughout the organisation.

Continue the development of managers as the ambassadors of the organisation’s image and reputation through the running of internal training and awareness

Motivated people Business improvement Motivated people Motivated people Improved communications

October 2019

March 2020

March 2020

December

2019

October 2019

90% of the Tay Reviews were completed within the time period. This has been the key focus for supporting and developing managers to become better managers and leaders. Ongoing Delivered in accordance with our LMDS programme. The training which commenced in 2018 is being further rolled out.

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

e)

People are rewarded, recognised and cared for

courses. Continue to develop the various levels of communication including using the internet and social media in accordance with our communications strategy. i. Monitor the effectiveness of Twitter

which Tayside Contracts commenced using in January 2018 and consider other evolving platforms.

ii. Continuation of Tayside Contracts Excellence Awards.

iii. Continue to motivate employees by

involving them in “lean” initiatives. iv. Continue building on the Wellbeing

Strategy to further promote and encourage employee health, wellbeing and work/life balance.

v. Promotion of Equality through the

Motivated people Motivated people

March 2020

March 2020

Similar to the previous heading the training which commenced in 2018 is being further rolled out. Twitter has been used very effectively and we are now looking at other forms of social media. Once again, the 2019 TEA ceremony was a great success. These have been reviewed and will continue in 2020, albeit on slightly reduced format. Front line employees are regularly involved in this process. A Wellbeing strategy was approved by the Corporate Management Team on 27/9/19. An Equalities Mainstreaming

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

findings of the Equalities Mainstreaming report for the period 2017-20. Ensure that this is appropriately audited.

report was approved by the Joint Committee at its meeting on 24/6/19.

4 a) b)

Partnership and Resources Delivery of sustainability through partnerships Ensure financial benefits are delivered through partnership working

Keep under review all the current partnerships and the agreements under which they operate to determine if any amendments are necessary. In conjunction with 4 a) monitor the financial benefits being delivered through partnership working and how these can be maximised for all parties.

Business strategy Business strategy

March 2020

March 2020

The effectiveness of these are reviewed every quarter by the various partnership boards. This monitoring also takes place at the quarterly board meetings.

5 a)

Processes Ensure processes develop optimised stakeholder value

Continually look to improve processes to deliver the organisation’s strategies and add value to stakeholders. Three areas which have been identified

Business improvement

March 2020

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Enabler Action

Achieved by

Result

Target Date

6 Months Update

which need to be improved, reviewed or implemented during 2019/20 which are: i. Complete the review of

manned/unmanned plant charging.

ii. Deliver on the project plan for the redesign and implementation of a Records Management system fit for purposes.

iii. Complete the roll out of the move to the cloud-based Office 365 – to be led by the IT Manager

iv. Identify new markets to be agreed by the Governance and Strategy Group (GSG) and ultimately the Joint Committee and deliver on these.

v. Once agreed, deliver on the Central Food Production Facility to ensure that it is fully operational in time for the introduction of the additional ELC meals.

December 2019

March 2020

October 2019

March 2020

March 2020

On target for completion by the target date. This is a 3 to 5 year programme and we are currently on target with regard to the programme. Office based staff were completed by the end of October 2019. These have been identified to the Chief Executives. PKC has pulled out but Angus and Dundee City Councils are still proceeding with this. The project is currently on target in terms of the agreed project plan.

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30

ITEM No …7….……..

REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: AUDIT UPDATE REPORT BY: MANAGING DIRECTOR REPORT NO: JC35/2019 1.0 PURPOSE OF REPORT

1.1 This report provides members with an update on Internal Audit work carried out by

the Internal Auditors, Wylie and Bisset, during the financial year 2019/20.

1.2 It also provides members with an update on the status of the Internal Audit contract and a proposal for the following year.

2.0 RECOMMENDATIONS

2.1 It is recommended that the Joint Committee:

a) note the contents of the IT Security and the Purchasing and Payments audit reports (Appendices 1 and 2);

b) approve the action plans within the reports: and

c) approve the extension of the Internal Audit Contract for one year. 3.0 FINANCIAL IMPLICATIONS

3.1 The proposed fee by Wylie and Bisset for 2020/21 remains the same as the fee for the

past 4 years (£14,700 for 35 days); therefore it would be built into the 2020/21 budget as appropriate.

4.0 BACKGROUND 4.1 Report No JC8/2019, which was approved by the Joint Committee on 18 March 2019,

provided details of the Internal Audit Plan for 2019/20. The key activities included in the plan were as follows:

Transport, Utilisation and Asset Management

Health and Safety

Management Reporting and Information Gathering

IT Security

Purchasing and Payments

Information and Asset Management

Follow up Review of previous years actions.

31

4.2 The Transport, Utilisation and Asset Management and the Management Reporting and Information Gathering audit reports were previously reported to the Joint Committee. Internal audits have now been carried out on IT Security and Purchasing and Payments. Detailed reports for the completed reviews have been appended to this report.

4.3 The internal audit contract was for 3 years with an option to extend for a further 2

years, decided on an annual basis. 4.4 This is currently the fourth year of the appointment. 4.5 Planning for the 2020/21 internal audits will commence in December 2019 and a

draft audit plan will be presented to the March 2020 Joint Committee for approval. 5.0 INFORMATION 5.1 From the latest 2 internal audit reviews carried out, the IT Security one was graded as

“Substantial” and the Purchasing and Payments one was graded “Strong” which is excellent to achieve for both. All the previous recommendations from an earlier IT audit had been adopted; and the electronic purchase ordering system is just getting rolled out into the organisation. A summary of the findings are as follows:

Grading High Medium Low

IT Security Substantial 1 1 0

Purchasing and Payments Strong 0 1 2

5.2 All recommendations were accepted. 5.3 The IT Security audit concluded that the auditors were able to provide a substantial

level of assurance over the controls in place regarding the IT systems. There were 15 areas of good practice noted.

5.4 The Purchasing and Payments audit concluded that the auditors were able to provide

a strong level of assurance over the controls and arrangements in place in respect of the purchasing and payment arrangements. They confirmed that the electronic purchase ordering system is operating appropriately with controls embedded within the system. There were 9 areas of good practice noted.

5.5 The audits conducted by Wylie and Bisset have been of a high standard and the

reports have been well received by management and the Joint Committee. They have built a good working knowledge of the organisation in the 4 years and are able to challenge the organisation as appropriate. As the contract is delivering as intended there is no reason why the contract should not be extended for a further year.

32

5.6 If the contract extension is approved then Wylie and Bisset plan to meet with the Convenor, Vice Convenor and Vice Convenor Elect during December 2019 to inform the next year’s audit. All members of the Joint Committee can contribute to this process by making suggestions for areas to audit to their Council representative prior to these discussions.

5.7 In the event that the extension of the contract is not approved a full tendering

exercise will be undertaken. Members should be aware that the internal and external audit contracts would no longer be co-terminus.


subject of consideration from an equalities perspective. 6.2 An equalities impact assessment (EqIA) is not required. 7.0 CONSULTATIONS 7.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report.

8.0 BACKGROUND PAPERS 8.1 None. Iain C Waddell Managing Director

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34

Tayside Contracts

Internal Audit 2019-20

IT SecuritySeptember 2019

APPENDIX 1 35

TABLE OF CONTENTS

1

Tayside Contracts

IT Security

Section Page

1 EXECUTIVE SUMMARY .......................................................................................................................................................................................... 2

2 BENCHMARKING ................................................................................................................................................................................................. 15

3 DETAILED RECOMMENDATIONS ........................................................................................................................................................................ 17

4 AUDIT ARRANGEMENTS ..................................................................................................................................................................................... 21

5 KEY PERSONNEL .................................................................................................................................................................................................. 22

Appendix Page

A GRADING STRUCTURE ........................................................................................................................................................................................ 24

B ASSIGNMENT PLAN ............................................................................................................................................................................................. 26

The matters raised in this report came to our attention during the course of our audit and are not necessarily a comprehensive statement of all weaknesses that exist or all improvements that might be made.

This report has been prepared solely for the Tayside Contracts’s individual use and should not be quoted in whole or in part without prior written consent. No responsibility to any third party is accepted as the report has not been prepared, and is not intended, for any third party.

We emphasise that the responsibility for a sound system of internal control rests with management and work performed by internal audit should not be relied upon to identify all system weaknesses that may exist. Neither should internal audit be relied upon to identify all circumstances of fraud or irregularity should there be any although our audit procedures are designed so that any material irregularity has a reasonable probability of discovery. Every sound system of control may not be proof against collusive fraud. Internal audit procedures are designed to focus on areas that are considered to be of greatest risk and significance.

36

1 EXECUTIVE SUMMARY

2

Tayside Contracts IT Security

1 EXECUTIVE SUMM ARY

Overview

Purpose of review

The purpose of this assignment was to review the overall IT systems in place to ensure the appropriate controls are in place and that these are operating as expected. The review specifically examined the specifications and systems operated by the Organisation to ensure that they are fit for purpose and present value for money. We also undertook a vulnerability testing exercise on the IT systems of the Organisation, using our IT Auditor and using the software Nessus, which looked to provide assurance that the IT systems are sufficiently secure. This assignment forms part of the agreed 2019/20 Internal Audit Annual Plan.

Scope of review

Our objectives for this review were to ensure:

There are appropriate policies in place to provide governance and control over the Organisation’s IT systems.

There are appropriate solutions in place to control access to the Organisation’s information systems.

There are appropriate solutions in place to aid in securing the Organisation's IT network which are being monitored effectively.

There are appropriate Disaster Recovery and Business Continuity plans in place for the Organisation's IT systems that are being tested.

Vulnerability testing for the internal network.

The current IT arrangements meet the business needs of the Organisation and represent value for money.

Our approach to this assignment took the form of discussion with relevant staff, review of documentation and where appropriate sample testing.

37

1 EXECUTIVE SUMMARY

3


Limitation of scope

There was no limitation of scope.

Background Information: IT Systems

The Organisation has an in-house IT support team which consists of four staff members; the department consists of a Manager, 2 Support Technicians and a Support Assistant. The team work to provide IT support to approximately 300 users across its various locations and services including: Helpdesk, Disaster Recovery, Network Monitoring.

IT Infrastructure

The Organisation currently run a Microsoft Active Directory network for centralised management, and this is maintained by the in-house IT team.

The Organisation has the following security tools installed on the network;

Sophos Web Appliance WS1100 (A security device that has the following features built in to secure your network from attack)

Sophos anti-malware endpoint protection;

Web filtering blocking the latest web threats; and

Policy and Control Data Leakage Prevention USB, Cloud based media

Cisco ASA (A security device that combines firewall, anti-virus, intrusion prevention, and virtual private network (VPN) capabilities. It provides proactive threat defence that stops attacks before they spread through the network).

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1 EXECUTIVE SUMMARY

4


Work Undertaken

Policies

Policies are high-level documents which represent the corporate philosophy of an Organisation. To ensure effectiveness, policies must be clear and concise. Management must create a positive control environment by assuming responsibility for formulating, developing, documenting, promoting, and controlling policies covering strategic and operational goals and directives. Management should take the necessary steps to ensure that all employees affected by a policy, receive a full explanation of the policy and understand its intent. Furthermore, policies may also apply to third parties and outsourcers, who will need to be bound to follow the policies through contracts or statements of work.

Whilst on site, we carried out a review of the policies in place to confirm they were in line with best practice above. We found the policies were up to date and followed best practice. Control Access

Access control is a security technique which regulates who can view or use resources in a computing environment. There are two types of access control; physical and logical. Physical access controls limit access to campuses, buildings, rooms, and physical IT assets. Logical access controls limit connections to computer networks, system files and data.

Whilst on site we found the Organisation have strong controls in place in relation to logical and physical access controls around the IT equipment and access to the network.

Network Monitoring

Network monitoring is a system which continuously monitors a computer network for slow or failing components, then notifies the network administrator (via email, SMS or other alarms) in cases of outages or issues and forms part of network management. While an intrusion detection system monitors a network for threats from the outside, a network monitoring system monitors the network for problems caused by overloaded or crashed servers, network connections or other devices.

The Organisation have strong controls in place in relation to Network Monitoring is carried out by Net Extremity.

39

1 EXECUTIVE SUMMARY

5


Business Continuity Plans (BCP) BCP in support of business operations/provisioning IT service, is an element of an internal control system established to manage availability and restore critical processes/IT services in the event of interruption. The purpose of this continuous planning process is to ensure that cost effective controls are in place, in order to prevent possible IT disruptions and allow for recovery of IT capacity within the Organisation, in the event of a service disruption or blackout. Through our review we found that the Organisation has a BCP in place that includes sections relating to IT that would come into effect in the event of loss of service or systems. However, during the review we found that there is no recording of the outcomes from testing. Please see recommendation 2 for further information.

Data Leakage Prevention (DLP)

Data Leakage Prevention (DLP) is a strategy for making sure that end users do not send sensitive or critical information outside the corporate network. The term is also used to describe software products that help a network administrator control what data end users can transfer. The Organisation have strong controls in place in relation to Data Leakage Prevention.

Value for Money

The IT Department follow Organisation guidelines when obtaining quotes for renewing IT assets and software to ensure they obtain the best option available.

There is a five-year life cycle in place to refresh IT assets. In addition, they will consider the condition and usability of the asset before replacing.

The Organisation utilise Office 365 and this is sourced through a third-party supplier, they currently have 204 licences. Using a third-party supplier, the Organisation pay £16.62 per user per month, and this is a saving of £0.98 per user per month as purchasing directly from Microsoft would cost £17.60 per user per month. This equates to a monthly saving of £199.92 per month.

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1 EXECUTIVE SUMMARY

6


The IT Department has an annual budget of £464K this is broken down into different areas as follows

Telecoms (broadband, IP and PTSN phone and mobile) £180K

IT Consumables (Pinter Cartridge’s, fuser kits) £14K

Miscellaneous (Computer Equipment (Peripherals, Printers, Replacement Laptops, Desktops, Thin Clients) £15K

IT Projects (Major hardware /software projects from IT or other business units) £70K

SLA’s (All software and Hardware Maintenance Support and subscription Licences and hosting fees) £236K

Vulnerability Assessment A vulnerability is a weakness which can be exploited by an attacker, to perform unauthorised actions within a computer system. To exploit a vulnerability, an attacker must have at least one applicable tool or technique which can connect to a system weakness. Any device that runs software can contain security flaws, known as vulnerabilities.

A vulnerability assessment management tool helps to discover and identify anything that is attached to the enterprise network (the enterprise assets). The assets can include firewalls, computers and tablets. The tool also identifies the operating system and the applications running on the asset. After gathering this information, the tool then assesses those applications and devices for vulnerabilities. It establishes a baseline or a snapshot of where the most risk and vulnerabilities currently exist so that it can inform the administrators of the vulnerabilities that must be fixed or patched to ensure that a system/application is safe to run.

On completing a vulnerability scan we found that the IT Department carries out software patching, however they do not have a patching policy in place. We found 54 critical issues relating to patching. The Organisation are implementing a Windows Services Update Server (WSUS) within the coming months. A report has been given to IT Manager to look at vulnerabilities and apply upgrades /fixes.

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1 EXECUTIVE SUMMARY

7


The following grading system is used: Critical, High, Medium. These ratings are worked out using the Common Vulnerability Scoring System (CVSS) base score. This is carried out by the main collection of information scan by the vulnerability scanner. This is then scored using various signature algorithms and a rating is applied based on the severity of the exploit.

The information is taken from a database held by https://cve.mitre.org and The National Vulnerability Database. They assign the base score to each exploit and vulnerability. The following table gives comparative benchmarking data of the number and ranking of vulnerabilities found at our other clients where we have undertaken a vulnerability scan.

Benchmarking

Critical High Medium Total

Average number of vulnerabilities in similar audits

977 4,377 2,050 7,404

Number of vulnerabilities at Tayside Contracts 54 95 586 735

Level Amount Reference

Critical 54 HP Web page / HP ILO/VNC Server password/ Microsoft RDP RCE /Adobe Cold Fusion

High 95 SSL (Self Signed Layer)

Medium 586 SSL (Self Signed Layer)

Total 735

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1 EXECUTIVE SUMMARY

8


As can be seen from this, Tayside Contracts has a lower number of vulnerabilities identified compared to our other clients where we have undertaken a vulnerability scan.

CVSS Score Grading Recommended Implementation Time

10 Critical

Attack in progress or imminent Incident response team should be activated

14 days

9.9 to 7.0 High

Attack behaviours and activities Identified and information infrastructure Vulnerability management countermeasures

1 month

6.9 To 4.0 Medium

Evidence of attack capabilities and motivated adversaries identified Controls should be reviewed for effectiveness

1- 3 months

3.9 to 1 Low

Attack possible, but not likely information infrastructures monitors should be turned on to possible attacks

3- 6 months

0 Informational

Showing information about the network N/A

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1 EXECUTIVE SUMMARY

9


Conclusion

Overall conclusion

Overall Conclusion: Substantial

We can provide a substantial level of assurance that the IT systems in place at the Organisation have appropriate controls in place and are operating as expected. The Organisation controls were found to be largely good practice that have been noted throughout this report. However, we have raised 2 recommendations for improvement. Please see section 3 for further information.

Summary of recommendations

Grading of recommendations

High Medium Low Total

IT Security 1 1 0 2

The following is a summary of the recommendations we have graded as high Vulnerability Scanning

44

1 EXECUTIVE SUMMARY

10


Areas of good practice

The following is a list of areas where the Organisation is operating effectively and following good practice.

1. The IT Department follow Organisation guidelines when obtaining quotes for renewing IT assets and software to ensure they obtain the best option available. There is a five-year life cycle in place to refresh IT assets. However, they will consider condition and usability of the asset before replacing. Similar Organisation utilise a 3-5 year refresh of IT assets.

2. The Organisation have in place controls and safeguards to maintain environmental controls within the IT Server room. These include the following:

Uninterrupted Power Supply (UPS); Air Conditioning Units; Air Temperature Monitoring; and Fire Extinguisher

Switches out with the IT Server room are also connected to a UPS.

3. The Organisation have 2 systems in place for Backup and Replication, these being Commvault and Veeam. Data is backed up nightly using Commvault and then replicated to the Perth Site using Veeam. Mission Critical Servers are replicated every 4 hours and other Servers are replicated every evening.

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1 EXECUTIVE SUMMARY

11



4. The Organisation have an IT Disaster Plan that explains the following information:

Incident Recovery Team (explains who is in the team and contact details); Service Provider List; Data Backup and Replication Overview (explains how and where the backups are kept and for how long; and also, the

replication process); IT Operational Risk (Identifies the types of risk which could lead to disruption of the IT services); A Step-by-Step recovery guide on restoring servers.

5. During our review we found that the Organisation utilise Sophos Endpoint Protection for Anti-Malware on all PC, Laptops, Servers and Thin Clients. The Endpoint Protection is controlled and monitored by the Sophos WS1100 Web Appliance.

6. All changes requested from users are recorded on the helpdesk.

7. The Organisation utilise the Sophos WS1100 Appliance for monitoring the network traffic and various aspects of PCs, Laptops and Servers. The appliance can alert the IT Department to anything out of the baseline norm. This can include but not limited to:

Bandwidth Usage; Storage Capacity; Web Usage.

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1 EXECUTIVE SUMMARY

12



8. The Organisation have strong controls in place in relation to user accounts. This includes a procedure for adding, disabling and amending accounts that have access to the IT systems. They also have controls in place for dealing with third parties who require access, this is monitored by IT staff. All IT staff have 2 user accounts, one for day to day work and one for IT administration work. Non-IT staff have no administration rights to their PCs/Laptops.

9. During our review we found the locations that contain IT Infrastructure (i.e. Servers, Switches etc.) are locked and can only be accessed via a combination lock by IT staff and the property manager.

10. The Organisation have procedures in place (within the Security Policy) to control who has access to remote working. To work remotely a Cisco VPN connection is used to establish a secure connection to a Cisco ASA Firewall and once a connection is made the user will have access to resources on the network. Any smart devices that can connect to the systems are required to have a passcode.

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1 EXECUTIVE SUMMARY

13



11. The Organisation utilise the Sophos WS1100 Web Appliance to manage Data Leakage Prevention (DLP). This is achieved by using rule-based policies within the appliance; this helps to minimise data leakage to unauthorised sources and devices which can include but not limited to:

USB devices; Cloud Storage (i.e. Google drive, OneDrive, Dropbox etc.); and Web based email systems (i.e. Gmail, outlook.com, Hotmail etc.).

12. There are two wireless networks set up within the Organisation. One for staff to access the network and one for guests for internet access only. To protect the Organisation’s data the wireless networks have been segregated so that devices and users connected to the guest network cannot access the Organisations network. The wireless network is monitored by a third-party company, NetExtremity using a cloud-based management system.

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1 EXECUTIVE SUMMARY

14



13. During our review we found that the Organisation have various policies, and these have been combined into two overall policies, Security and Data Protection. In our opinion these policies are robust and assist in keeping both the network and users safe. Security Policy contains but not limited to the following:

Authorised Access (Only trained authorised personnel will be granted access to Tayside Contracts IT Information systems); Security Incidents (A security breach, threat, weakness or malfunction that has/or could have resulted in loss or damage to

Tayside Information assets); Password (Including password annex showing complexity of passwords); Unauthorised Software Install (No unauthorised software to be installed unless approved by IT department); Security of Workstations (Users on leaving their Workstation, Laptops or Thin Clients must lock or log out); Backups (Users should note there is no backups for their local data, this must be saved to network drives); Endpoint Protection/USB (Tayside Contracts does not permit the use of unauthorised and unencrypted USB drives).

Data Protection contains but not limited to the following:

Corporate Responsibilities (To protect the confidentially and security of personal data); Employees Responsibilities (To adhere to the corporate policy and the requirements of GDPR); Data Breach Management (Monitor, control and protect personal data. Tayside Contract employees must always adhere to

this procedure); Compliance (Tayside Contracts must comply with GDPR); Rights of Data Subjects (Information provided by Tayside employees will be used by the data controller to maintain HR,

Payroll, Pensions and HMRC).

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1 EXECUTIVE SUMMARY

15


2 BENCHMARKI NG


14. The Organisation dispose of redundant IT equipment. This is carried out in line with Waste Electrical Electronic Equipment regulations (WEEE) by a third-party vendor. All applicable certificates of destruction are issued upon completion.

15. Any smart devices that are company owned and can connect to the systems are required to have a passcode to secure the device.

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2 BENCHMARKING

16


We include for your reference comparative benchmarking data of the number and ranking of recommendations made for audits of a similar nature in the most recently finished internal audit year.

IT Security

Benchmarking


Average number of recommendations in similar audits

2 1 1 4

Number of recommendations at Tayside Contracts

1 1 0 2

From the table above it can be seen that the Organisation has a lower number of recommendations compared to those organisations it has been benchmarked against.

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3 DETAILED RECOMMENDATIONS

17



Vulnerability Scanning

Ref. Finding and Risk Grade Recommendation

1. A vulnerability scan or a vulnerability assessment, consists of running an automated program that looks for vulnerabilities within the system and documents the potential exposures. We carried out a vulnerability scan of the Organisation’s system using our Nessus software and found the following vulnerabilities: As detailed on page 7 of the executive summary.

Critical =54 High = 95 Medium =586

A report has been given to the IT Manager to be shared with the IT team to enable them to be fixed. There is a risk of vulnerabilities being used by attackers looking for points of entry, that can lead to the following attacks: Ransom Man-in-the-middle

High We recommend that the Organisation look at the report provided and implement a Strategic Patching Plan to secure the network/data from attack going forward.

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Theft of data There is also the risk that vulnerabilities that are not being detected could potentially leave systems vulnerable.

Management response Responsibility and implementation date

Responsible Officer: IT Manager Implementation Date: as per response: all by 31 December 2019

Agreed – these will be tackled in the order of importance ranked by the auditors ie critical done by 30 October 2019; High by 30 November 2019; and Medium by 31 December.

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19


IT DR Testing Procedures


2. Disaster Recovery testing is undertaken to ensure that the plan is robust and that it is sufficient to address any disaster affecting the system. On reviewing the Organisation’s Disaster Recovery Testing procedures, we found that in principle they do test the solution but have no record of this being undertaken. There is the risk that the current arrangements in place are not sufficient to allow the Organisation to recover from an event which causes significant disruption to the IT systems.

Medium We recommend that the Organisation test and record the plan at least once a year to ensure that the IT systems can be brought back up safely without loss of data.


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Responsible Officer: IT Manager Implementation Date: 31 December 2019

Agreed – The disaster recover policy needs to be updated and the testing methodology will be reviewed at the same time.

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4 AUDIT ARRANGEMENTS

21



The table below details the actual dates for our fieldwork and the reporting on the audit area under review. The timescales set out below will enable us to present our final report at the next Joint Committee meeting.

Audit stage Date

Fieldwork start 26 August 2019

Closing meeting 29 August 2019

Draft report issued 12 September 2019

Receipt of management responses 23 September 2019

Final report issued 21 October 2019*

Joint Committee 18 November 2019

Number of audit days 5 days

Wylie & Bisset appreciates the time provided by all the individuals involved in this review and would like to thank them for their assistance and co-operation.

*Due to further discussion with client.

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6 KEY PERSONNEL

22


5 KEY PERSO NNE L

We detail below our staff who will undertake the review together with the Organisation staff we spoke to during our review.

Wylie & Bisset LLP

Partner Graham Gillespie Partner [email protected]

Senior Manager Stephen Pringle Senior Internal Audit Manager [email protected]

Senior Neil Hall IT Auditor [email protected]

Tayside Contracts

Key Contact Ed Middleton IT Manager [email protected]


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23


APPENDICES

58

A GRADING STRUCTURE

24


A GRADI NG S TRUCTURE

For each area of review, we assign a level of assurance in accordance with the following classification:

Assurance Classification

Strong Controls satisfactory, no major weaknesses found, no or only minor recommendations identified.

Substantial Controls largely satisfactory although some weaknesses identified, recommendations for improvement made.

Weak Controls unsatisfactory and major systems weaknesses identified that require to be addressed immediately.

No No or very limited controls in place leaving the system open to significant error or abuse, recommendations made require to be implemented immediately.

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A GRADING STRUCTURE

25


For each recommendation we assign a grading either as High, Medium or Low priority depending on the degree of risk assessed as outlined below:

Grading Classification

High Major weakness that we consider needs to be brought to the attention of the Joint Committee and addressed by senior management of the organisation as a matter of urgency.

Medium Significant issue or weakness which should be addressed by the organisation as soon as possible.

Low Minor issue or weakness reported where management may wish to consider our recommendation.

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B ASSIGNMENT PLAN

26


B ASSIGNMENT PLAN

Purpose of review We will review the overall IT systems in place to ensure the appropriate controls are in place and that these are operating as expected. The review will specifically examine the specifications and systems operated by the Organisation to ensure that they are fit for purpose and present value for money. We will also undertake a vulnerability testing exercise on the IT systems of the Organisation, using our IT Auditor and using the software Nessus, which will look to provide assurance that the IT systems are sufficiently secure. This assignment forms part of the agreed 2019/20 Internal Audit Annual Plan.

Scope of review Our objectives for this review are to ensure: There are appropriate policies in place to provide governance and control over the Organisation’s IT systems.

There are appropriate solutions in place to control access to the Organisation’s information systems.

There are appropriate solutions in place to aid in securing the Organisation's IT network which are being monitored effectively.

There are appropriate Disaster Recovery and Business Continuity plans in place for the Organisation's IT systems that are being tested.

Vulnerability testing for the internal network.


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B ASSIGNMENT PLAN

27


Our approach to this assignment took the form of discussion with relevant staff, review of documentation and where appropriate sample testing.

Limitation of scope There are no limitations of scope.

Audit approach Our approach to the review will be: Discussion with relevant staff involved to establish the current arrangements in place.

Review of IT security, access control and user policies for adequacy.

Review of the Organisation’s strategy for identifying and addressing system vulnerabilities in a secure and timely manner. We shall assess what we are told to ensure that this is adequate.

Review and evaluation of the Organisation’s anti-malware/virus software including web protection.

Review and evaluation of the Organisation’s network security appliances and monitoring.

Review and evaluation of the Organisation‘s data leakage prevention controls and monitoring.

Review and evaluation of the Organisation’s network access controls including user account controls, remote access, third party access.

Review and evaluation of the Organisation’s IT disaster recovery and business continuity planning including the Organisation’s backup strategy.

Review and evaluation of the Organisation’s IT equipment to ensure suitability.

Review and evaluation of the Organisation’s IT strategy and reporting mechanisms.

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B ASSIGNMENT PLAN

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Review and evaluation of the Organisation’s software patching arrangements.

Undertake a vulnerability testing exercise on the IT systems of the Organisation.

Potential key risks The potential key risks associated with the area under review are:

There are no/inadequate policies in place to provide governance and control over the Organisation's IT systems.

There is a lack of/inadequate controls in place to control access to the Organisation's information systems.

Security solutions in place to protect the Organisation are ineffective and/or not being monitored appropriately.

Disaster Recovery and Business Continuity procedures are ineffective, un-tested and not in line with the organisation's Business Impact Analysis.

If systems of defence for Organisation IT systems are not robust and effective, then the Organisation could be subject to system failure and loss.


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Tayside Contracts

Internal Audit 2019-20

Purchasing & PaymentsSeptember 2019

APPENDIX 265

TABLE OF CONTENTS

1

Tayside Contracts

Purchasing & Payments

Section Page

1 EXECUTIVE SUMMARY .......................................................................................................................................................................................... 2

2 BENCHMARKING ................................................................................................................................................................................................. 10

3 DETAILED RECOMMENDATIONS ........................................................................................................................................................................ 11

4 OBSERVATIONS ................................................................................................................................................................................................... 17

5 AUDIT ARRANGEMENTS ..................................................................................................................................................................................... 19

6 KEY PERSONNEL .................................................................................................................................................................................................. 20

Appendix Page

A GRADING STRUCTURE ........................................................................................................................................................................................ 22

B ASSIGNMENT PLAN ............................................................................................................................................................................................. 24

The matters raised in this report came to our attention during the course of our audit and are not necessarily a comprehensive statement of all weaknesses that exist or all improvements that might be made.

This report has been prepared solely for the Tayside Contracts’s individual use and should not be quoted in whole or in part without prior written consent. No responsibility to any third party is accepted as the report has not been prepared, and is not intended, for any third party.

We emphasise that the responsibility for a sound system of internal control rests with management and work performed by internal audit should not be relied upon to identify all system weaknesses that may exist. Neither should internal audit be relied upon to identify all circumstances of fraud or irregularity should there be any although our audit procedures are designed so that any material irregularity has a reasonable probability of discovery. Every sound system of control may not be proof against collusive fraud. Internal audit procedures are designed to focus on areas that are considered to be of greatest risk and significance.

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1 EXECUTIVE SUMMARY

2

Tayside Contracts Purchasing & Payments

1 EXECUTIVE SUMM ARY

Overview

Purpose of review

The purpose of this review was to ensure that the arrangements in respect of purchasing and creditors are appropriate and are operating effectively and efficiently. Our review considered both the electronic purchasing system and the manual process as well as the invoice authorisation process. This review forms part of our Annual Internal Audit Plan for 2019/20.

Scope of review

Our objectives for this review were to ensure:

The Organisation has robust documented procedures in place for its purchasing, payment and procurement cycles. These procedures reflect current practice.

There is appropriate segregation of duties within the purchasing and creditors payment arrangements.

Access to the purchase ordering system is secure and access rights are tailored to the individual's role within the Organisation.

Purchases are being authorised at an appropriate level prior to any commitment being made.

There are robust controls in place to ensure that goods have been received prior to the supplier invoices being paid.

Purchase invoices are processed in a timely manner and within suppliers' payment terms.

Supplier payments are authorised in accordance with the Organisation's procedures prior to the payment being released.

Changes to suppliers' bank details are verified with a known contact prior to being processed through the system.

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3


The purchase ledger balance agrees to the balance in the nominal ledger.

Supplier balances are accurately stated in the purchase ledger.

Limitation of scope

There is no limitation of scope.

Background Information

The Organisation introduced an electronic purchase ordering system approximately 2 years ago. At the time this was piloted by the Stores and the IT Departments. In September 2018, this was rolled out to the Construction department with the Property Department being added thereafter. At the time of our audit visit the electronic purchase ordering system had still to be rolled out to 4 departments, namely Transport, Sign Shop, Facilities and the Head Office. Work had commenced on the groundwork for setting up the Transport Department on the electronic purchase ordering system. At the time of our audit visit this was in the early stages of development.

The Organisation has a spreadsheet which details the authorisation limits for each member of staff with this authority. This is stored on the staff intranet. These authorisation limits have been embedded within the electronic purchase ordering system. Thus, the order cannot be fully processed until all appropriate authorisation has been granted.

Purchase Ordering System

For the electronic ordering system there are certain individuals who have been given authority to place orders. They have been set up within the system as requisitioner and have been given a limit up to which they can place orders. If a person has not been set up within the electronic purchasing system, then they will not be able to raise orders. If they try to place an order which is outwith their authorisation limit the system will not allow the order to be processed further until the correct level of authorisation has been obtained.

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1 EXECUTIVE SUMMARY

4


All orders must be signed by a budget holder, who must be someone separate from the person raising the order. If the budget holder raises the order, the system will allocate this to their line manager for approval prior to the order being placed. When goods are received, the GRN section of the ordering system has to be completed. This can be done by anyone set up within the system as either a requisitioner or approver. The manual system follows the same process, the difference being the authorisation etc is done manually via a signature on a form. Electronic and Manual Systems The invoices are registered onto the Integra system by the Transactions Team of the Financial Services Department. The Transactions staff will automatically match the invoices to the GRN and order via the system. Any invoices which are not matched will be queried with the appropriate department and budget holder. If the amounts do not match etc, the invoice will be scanned and emailed to the budget holder for approval before being passed for payment. Since April 2019, all invoices whether matched or not, are scanned and attached to the relevant supplier’s record within the Integra system. The Transactions Team run a payment listing which is reviewed and approved by one of the Principal Accountants. This is passed to the Processing Team of the Financial Services Department for upload and processing within the BACs system.

Work Undertaken

Our work undertaken for this review involved:

Discussion with key personnel to establish the current purchasing cycle (ordering through to payments) arrangements within the Organisation. This considered both the electronic system and the manual process. We assessed whether this was adequate and fit for the Organisation’s purpose as well as considering whether there were any gaps/weaknesses and/or redundant controls in operation.

We obtained and reviewed the Organisation’s policies and procedures in respect of the purchasing and creditors payment arrangements. We assessed these to ensure that these were robust, up to date and reflect what is happening in practice. We also established how staff

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1 EXECUTIVE SUMMARY

5


are made aware of these policies and procedures.

We obtained details of the segregation of duties arrangements in place and assessed this to ensure that this is robust and fit for purpose. We considered access rights to the electronic purchasing system as well as the Finance system to make sure this is appropriate and fit for purpose.

We undertook sample testing of the electronic purchase ordering system as well as the manual process to ensure that staff are adhering to the relevant policies and procedures and that orders are authorised before being placed, goods are received and invoices are checked to orders and good received notes prior to payment being made. As part of this testing we considered whether the appropriate authorisation levels are being adhered to by staff.

We sample checked the payment of suppliers to ensure that the appropriate level of authorisation was obtained for BACs and cheque

payments.

We discussed with staff the process followed for changes in suppliers’ bank details. We assessed whether there are any gaps or weaknesses in controls in this process. We undertook sample testing to confirm that this is operating in practice by identifying changes to suppliers’ bank details and checking these to change forms, confirmation of checks being undertaken and authorisation of these changes on the change forms and the finance system.

We ensured monthly reconciliations were prepared and authorised.

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1 EXECUTIVE SUMMARY

6


Conclusion

Overall conclusion

Overall Conclusion: Strong

We can provide strong assurance over the controls and arrangements in place in respect of the Organisation's purchasing and payment arrangements. We can confirm that the electronic purchase ordering system is operating appropriately with controls being embedded within the system. We have raised 3 recommendations (1 medium grade and 2 low grades) which if implemented should enhance the current arrangements.

Summary of recommendations

Grading of recommendations


Purchasing & Payments 0 1 2 3

As can be seen from the above table there were no recommendations made which we have given a grading of high.

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1 EXECUTIVE SUMMARY

7


Areas of good practice


1. Purchase Ledger reconciliations are prepared as part of the month end procedures. These are signed off by the Principal Accountant as confirmation of agreement.

2. The process for checking changes to supplier bank details is robust and in line with good practice. This involves the notification having to be on headed paper or via the supplier's email address. The Organisation's staff will contact the supplier via telephone to confirm that the new bank details are correct. The Organisation's staff will record these changes via a Supplier's Change form. The Principal Accountants are notified of any changes to supplier's bank details via a system generated email informing them that a change requires authorisation by them. If the Principal Accountant does not authorise the change on the Integra system, it will not release the payment to the supplier. Only when the Principal Accountants have authorised the changes will the system release the payment.

3. For cheque payments, cheque request forms are prepared and appropriately authorised prior to payment being made.

4. From our testing we can confirm that payments to suppliers have been reviewed and authorised prior to the payment being made.

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1 EXECUTIVE SUMMARY

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5. The electronic purchase ordering system enables the goods to be receipted by the staff/department ordering the goods via the Integra system. Anyone with access to the system can receipt the goods.

6. There are appropriate system access restrictions in place in respect of the process for purchase ordering, receipting of goods, registering and authorising invoices and payment of suppliers.

7. There are appropriate segregation of duties within the Finance section and within the whole organisation in respect of the purchasing cycle.

8. The Organisation has Financial Regulations which include authorisation limits. These are supported by a more detailed schedule of authorisation limits. There is also guidance on how to raise purchase orders using the electronic system and also how to authorise payments. There is also a set of documented authorisation limits which includes purchase order authorisation. This document is stored on the Organisation's intranet to which staff have access. The authorisation limits have been agreed by the Corporate Management Team. From our review of the electronic ordering system we can confirm that the authorisation levels have been embedded within the system.

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1 EXECUTIVE SUMMARY

9



9. From our testing it would appear that the controls in place for the electronic ordering system are sufficient and are operating as required.

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2 BENCHMARKING

10


2 BENCHMARKI NG

We include for your reference comparative benchmarking data of the number and ranking of recommendations made for audits of a similar nature in the most recently finished internal audit year.

Purchasing & Payments

Benchmarking


Average number of recommendations in similar audits

1 2 2 5

Number of recommendations at Tayside Contracts

0 1 2 3

From the table above it can be seen that the Organisation has a lower number of recommendations compared to those organisations it has been benchmarked against.

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11



Electronic Purchase Ordering


1. An order should be raised for each purchase made by the various departments. From our review we found one order (out of 12 order numbers tested) which had been processed when it had been authorised by someone who did not have the appropriate authorisation limits. On closer inspection it was found that the order actually related to a variety of orders covering various months, which had been added to the original order after that had been authorised. The original order had been correctly authorised by the line manager who did have the appropriate authorisation limits to authorise the original order. Each time the order was added to, the additions had to be approved, however this was only the additions and not the total amount of the order. We were informed that the software provider was aware of this issue and were in the process of providing an update which should sort this issue. We were also informed that the staff involved had been advised that separate orders should be raised regularly instead of continually adding to the

Medium We recommend that the Organisation ensure that the new release by the software provider does in fact resolve the issue of being able to add lines to a purchase order after this has been authorised. We also recommend that all ordering staff are reminded that individual orders should be raised instead of added to existing orders.

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12


original order for a long period of time. There is a risk that staff are not following the authorisation controls by adding to orders after approval rather than raising a separate order.


Agreed – (a) We will test new releases in the usual manner and introduce them to the live system when we are sure they are working properly and have all other interdependent modules able to go into live too.

(b) We will advise all budget holders to ensure that staff doing the orders are not leaving orders open unnecessarily.

Responsible Officer: (a) Principal Accountant (b) Head of Financial Services Implementation Date: (a) 29 February 2020 (b) 31 October 2019

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Scanning Invoices


2. Since April 2019, all invoices received should be scanned and stored within the system. This is to reduce the amount of paper and also to speed up the invoice authorisation process. From our testing we found that some invoices were not being scanned and stored as expected. Some invoices were still in hard copy form. It should be noted that we were able to find all invoices whether these were electronic or hard copy. There is a risk that invoice may be lost or misplaced and/or the invoice authorisation process is not as efficient as a result.

Low We recommend that the Transactions Team ensure that all invoices (since April 2019 when the system came into operation) have been scanned and saved within the system. Going forward all invoices should be scanned as expected.


Agreed – we only commenced scanning the invoices from 1 April 2019 after the year end processing was over for the transactional team, so there is a backlog of invoices to get on the system since we decided to backdate this change to the start of the financial year.

Responsible Officer: Financial Services Supervisor Implementation Date: 31 December 2019

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15


Cancelled Invoice Scanned Documentation


3. Invoices and other supporting documentation should be scanned and attached to the individual supplier's record within the Integra system. From our review of 10 suppliers we found that on one occasion documentation in support of a cancelled invoice did not in fact relate to the cancelled invoice or the supplier in question. There is a risk that information relating to one supplier is attached to another supplier.

Low We recommend that care be taken when attaching scanned copies of documentation to the suppliers' record to ensure that the correct attachment is being made to the correct record.


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Agreed – this is a new process for all the staff concerned, using IT skills that many have not used previously, so we are pleased with progress so far. We are saving the invoices both into Integra and also to our own network drives so there is no risk that we would be left without the invoice in question. A reminder will be given on the importance of getting it right.

Responsible Officer: Head of Financial Services Implementation Date: 31 October 2019

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4 OBSERVATIONS

17


4 OBSERV ATIONS

The following is a list of observations from our review

1. The Financial Services staff will reconcile any supplier statements they receive, although they do not tend to keep the statements once these have been reconciled. We were informed that not all of the Organisation's suppliers issue statements thus they will only reconcile those statements that they receive.

2. During our discussion with Finance staff and testing of the processes we found that the payments list is printed and passed to the Principal Accountants for checking and approval. The Financial Services Supervisor provides a cover sheet with this report. Once the Principal Accountants have checked and approved the payments list this is returned to the Financial Services Supervisor who files this and informs the Financial Services Assistant or Accountant that it is ready for processing. The Financial Services Assistant or Accountant will process the payments via the BACs system and print off reports to show that the correct amounts have been processed. These reports are filed in hard copy format. The Organisation may wish to consider emailing the payments list to the Principal Accountants and using the cover sheet for them to note what they have checked and to sign this as evidence of the check and approval of the payments lists. The cover sheet could then be scanned and saved beside the relevant payment list. If this is not considered appropriate, consideration should be given to scanning the approved payments list. The Organisation may wish to consider the BACs reports being saved electronically instead of being printed and stored in hard copy. The Financial Services Assistant or Accountant may also wish to sign off the cover sheet mentioned above as evidence that the amounts transferred via BACs agrees to the payments list.

3. The electronic purchasing system is still in the process of being fully rolled out to all departments of the Organisation. At the time of our audit visit the Transport Department, Facilities Department, Sign Shop and Head Quarters had still to be set up on the electronic purchasing system. Whilst the manual system for these areas is operating reasonably well (see our earlier internal audit reports relating to the Transport and Facilities departments), there are improvements which could be made by introducing the electronic system. This would streamline and make the ordering process for these departments more effective and efficient.

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4 OBSERVATIONS

18


83


19



The table below details the actual dates for our fieldwork and the reporting on the audit area under review. The timescales set out below will enable us to present our final report at the next Joint Committee meeting.

Audit stage Date

Fieldwork start 26 August 2019

Closing meeting 28 August 2019

Draft report issued 12 September 2019

Receipt of management responses 4 October 2019

Final report issued 21 October 2019

Joint Committee 18 November 2019

Number of audit days 5

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6 KEY PERSONNEL

20


6 KEY PERSO NNE L

We detail below our staff who undertook the review together with the Organisation’s staff we spoke to during our review.

Wylie & Bisset LLP

Partner Graham Gillespie Partner [email protected]

Senior Manager Stephen Pringle Senior Internal Audit Manager [email protected]

Supervisor Audrey Cowan Internal Audit Supervisor [email protected]

Assistant Damian Gray Internal Audit Assistant [email protected]

Tayside Contracts

Key Contact Wendy Grant Head of Financial Services [email protected]

Key Contact Lorna Milne Principal Accountant [email protected]

Key Contact Lynne Balfour Financial Services Supervisor [email protected]

Key Contact Richard Fyffe Financial Services Officer [email protected]

Key Contact Pamela Grant Financial Services Officer [email protected]


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21


APPENDICES

86

A GRADING STRUCTURE

22


A GRADI NG S TRUCTURE

For each area of review, we assign a level of assurance in accordance with the following classification:

Assurance Classification

Strong Controls satisfactory, no major weaknesses found, no or only minor recommendations identified.

Substantial Controls largely satisfactory although some weaknesses identified, recommendations for improvement made.

Weak Controls unsatisfactory and major systems weaknesses identified that require to be addressed immediately.

No No or very limited controls in place leaving the system open to significant error or abuse, recommendations made require to be implemented immediately.

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A GRADING STRUCTURE

23


For each recommendation we assign a grading either as High, Medium or Low priority depending on the degree of risk assessed as outlined below:

Grading Classification

High Major weakness that we consider needs to be brought to the attention of the Joint Committee and addressed by senior management of the Organisation as a matter of urgency.

Medium Significant issue or weakness which should be addressed by the Organisation as soon as possible.

Low Minor issue or weakness reported where management may wish to consider our recommendation.

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B ASSIGNMENT PLAN

24


B ASSIGNMENT PLAN

Purpose of review The purpose of this review is to ensure that the arrangements in respect of purchasing and creditors are appropriate and are operating effectively and efficiently. Our review will consider both the electronic purchasing system and the manual process as well as the invoice authorisation process. This review forms part of our Annual Internal Audit Plan for 2019/20.

Scope of review Our objectives for this review are to ensure: The organisation has robust documented procedures in place for its purchasing, payment and procurement cycles. These procedures reflect

current practice.

There is appropriate segregation of duties within the purchasing and creditors payment arrangements. The same level of segregation of duties should be in place for both the electronic system and the manual ordering process.

Access to the purchase ordering system is secure and access rights are tailored to the individual's role within the Organisation. We should also consider who has access to the Finance system to make sure that this is appropriate and that no member of staff is able to raise/authorise an order, receipt the goods and make payment.

Purchases are being authorised at an appropriate level prior to any commitment being made.

There are robust controls in place to ensure that goods have been received prior to the supplier invoices being paid.

Purchase invoices are processed in a timely manner and within suppliers' payment terms.

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B ASSIGNMENT PLAN

25


Supplier payments are authorised in accordance with the Organisation's procedures prior to the payment being released.

Changes to suppliers' bank details are verified with a known contact prior to being processed through the system.

The purchase ledger balance agrees to the balance in the nominal ledger.

Supplier balances are accurately stated in the purchase ledger.

Limitation of scope There is no limitation of scope.

Audit approach Our approach to the review will be: Discussion with key personnel to establish the current purchasing cycle (ordering through to payments) arrangements within the Organisation.

This will consider both the electronic system and the manual process. We shall assess whether this is adequate and fit for the Organisation’s purpose as well as considering whether there are any gaps/weaknesses and/or redundant controls in operation.

Obtain and review the Organisation’s policies and procedures in respect of the purchasing and creditors payment arrangements. We shall assess these to ensure that these are robust, up to date and reflect what is happening in practice. We shall also establish how staff are made aware of these policies and procedures.

Obtain details of the segregation of duties arrangements in place and assess this to ensure that this is robust and fit for purpose. We shall also

consider access rights to the electronic purchasing system as well as the Finance system to make sure this is appropriate and fit for purpose. We shall undertake sample testing of the electronic purchase ordering system as well a the manual process to ensure that staff are adhering to

the relevant policies and procedures and that orders are authorised before being placed, goods are received and invoices are checked to orders

90

B ASSIGNMENT PLAN

26


and good received notes prior to payment being made. As part of this testing we shall also consider whether the appropriate authorisation levels are being adhered to by staff.

We shall sample check the payment of suppliers to ensure that the appropriate level of authorisation is obtained for BACs and cheque payments. Discussion with staff the process followed for changes in suppliers’ bank details. We shall assess whether there are any gaps or weaknesses in

controls in this process. We shall undertake sample testing to confirm that this is operating in practice. We shall ensure monthly reconciliations are prepared and authorised.

Potential key risks The potential key risks associated with the area under review are:

If robust procedures are not in place, staff may be unaware of their responsibilities. As a result, purchases and payments may not be processed in accordance with organisational policy.

Poor segregation of duties between those placing orders and those recording and making payment, giving rise to the potential for erroneous and/or fictitious orders/payments being made, resulting in financial loss to the Organisation.

Individuals gain unauthorised access to the finance system and are able to process erroneous and/or fictious orders/payments.

Purchase orders are not being authorised at an appropriate level. This could result in goods or services being purchased which are not bona-fida expenditure of the Organisation and may increase the risk of fraud.

Goods are not checked and verified to the purchase order on delivery, increasing the risk of the Organisation paying for goods that they did

not order or have not received.

91

B ASSIGNMENT PLAN

27


If payments are made to the wrong supplier or not made in line with the Organisation's procedures there is a risk of financial loss and goodwill occurring.

Changes to supplier details are made without reconfirming these with the supplier which could increase the risk of details being falsely altered, increasing the risk of fraud and could result in a loss to the Organisation.

The purchase ledger balance included in the nominal ledger is inaccurate and does not agree to the purchase ledger.

Purchase ledger balances are inaccurate and do not accurately reflect the organisation's liability.

92

ITEM No …8….……..

REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: ANNUAL PERFORMANCE REPORT 2018/19 REPORT BY: MANAGING DIRECTOR REPORT NO: JC37/2019 1.0 PURPOSE OF REPORT

1.1 In order to comply with Section 13 (1) of the Local Government in Scotland Act 2003,

Tayside Contracts is required to produce an Annual Performance Report. Attached is the 2018/19 Annual Performance Report for Tayside Contracts which summarises performance against the values which underpin and drive everything we do: People; Performance; Partnership and Perception.

2.0 RECOMMENDATIONS 2.1 The Joint Committee is requested to note and approve the contents of this report.


3.1 There are no financial implications with this report. 4.0 BACKGROUND

4.1 The Local Government in Scotland Act 2003 introduced a statutory duty for local

authorities to make arrangements to secure Best Value. A key requirement of this Act, under Section 13 (1), is the duty of a local authority to make arrangements for reporting the outcome of the performance of its functions to the public. Section 13 of the Act specifically extends this requirement to Joint Boards and Joint Committees as well as to Councils. In order to comply with the requirements of the Act, and equally importantly, to provide performance information that satisfies public interest, an annual performance report has been compiled for 2018/19.

4.2 The nature and content of this performance report differs from those produced by

the constituent Councils and other public bodies. The public performance reports published by Councils are influenced by the performance indicators which have been drawn up by Audit Scotland in order to facilitate comparisons between local authorities’ performance in different years and with other local authorities. The vast majority of those performance indicators are not applicable to Tayside Contracts.

4.3 The focus of this report is, therefore, on the key values and themes which underpin

Tayside Contracts’ business plan 2017-20 and which influence the outcomes of Tayside Contracts’ activities and performance, which are:

93

People

Performance

Partnership

Perception.

4.4 The report is not intended as a detailed management information document, but rather as a summarised guide to some of the key statistics and performance indicators which underpin the business of Tayside Contracts.

5.0 INFORMATION 5.1 The attached report provides details of Tayside Contracts’ performance in 2018/19,

together with supporting trend, benchmarking and statistical information, against measures which provide the most meaningful evidence of performance.

5.2 The performance of the business shows very positive outcomes against the targets

for the year, with higher surpluses earned and returned to the Councils. The report also details the financial and societal impact of our business improvements.

5.3 Tayside Contracts’ strategic commitment to partnering is evidenced by the fact that

we are now party to nine successful partnerships with the constituent Councils. 5.4 The report shows a largely positive perception of Tayside Contracts by all of our

stakeholders. The ‘perception’ indicator is vitally important not only in respect of our business performance but also Tayside Contracts’ mission statement: ‘Community benefit through the pursuit of excellence’.


subject of consideration from an equalities perspective. 6.2 An Equalities impact assessment (EqIA) is not required. 7.0 CONSULTATIONS 7.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report. 8.0 BACKGROUND PAPERS 8.1 None. Iain C Waddell Managing Director

94

2018/19

AnnualPerformanceReport

APPENDIX 1 95

96

Page 2 Page 3

Per

cep

tion

Peo

ple

Perfo

rman

ce

Partn

ership

Construction Catering HR Transport

Quarry

FM CleaningTransportCleaning

SCP

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Page 4 Page 5

Table of Contents

Page

Introduction 6

Performance Summary - Top Performance Highlights 7

PeopleInvestors In People 8

Training 8

Employee Retention 8

Sickness Absence 9

Accidents 9

Apprenticships 10

Data Protection 10

Customer and Keyholder Engagement - School Meals Survey 11

Delivering Equality, Diversity and Inclusion 12

Awards and Accolades 13

One Construction 14

PerformanceSurplus 16

Turnover 17

Costs 17

Trading Accounts 18

Community Meal Service 18

School Meal Service 19

Tayside Contracts and the 4 Seasons 20

Tayside Meal Uptake - Flying the Flag for Scotland 22

Construction Division Income 23

Collace Quarry 23

Winter Maintenance 24

Street Lighting 25

Environmental Fuel cost and CO2 26

Capital Investment in Fleet 28

Fleet Maintenance 28

PartnershipCatering For the Future! 30

ELC 1140 Pilot 31

Holiday Food and Fun Programme 31

Open Golf Championship – Carnoustie July 2018 32

Access to Free Sanitary Products – Partnership Working with Angus Council

32

Partnership Working 33

PerceptionSchool Meal Regulations 2020 34

Environmental Improvements 34

Allergen Awareness 35

Quality Assurance System - Results 35

Recycling 36

SEPA reportable incidents 36

Collace Quarry and Transport 37

Customer Satisfaction 37

Summary of KPI and Targets 38

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Introduction Performance Summary - Top Performance Highlights

Welcome to our Annual Performance Report 2018/19. This report hopefully contains all of the information you would expect to see regarding our performance in the last financial year. I am particularly pleased that the information in the report is presented in a more eye-catching fashion and continues my long-standing desire to use more infographics and less text to convey our message in a more reader-friendly format.

This report provides high-level and also where appropriate more detailed information on how Tayside Contracts has delivered against its Key Performance Outcomes, contained in our Business Plan 2017-20 'The Road to 2020'. This report is not intended to be a detailed management information document, but rather to provide some useful data to illustrate how Tayside Contracts performed as a business in 2018/19. As you will see, during the last year, we continued to meet and often exceed the expectations of our clients and customers.

This year, we celebrate 23 years of Tayside Contracts. In that time, every community in Tayside has been positively impacted by our work. By this I mean, we ensure that Council roads are open and safe in winter; that roads and pavements are maintained throughout the year; that a high quality Street Lighting service is delivered across Tayside; that 30,000 pupils every day receive nutritious and healthy school meals; and that Tayside's schools and numerous other public buildings are kept clean and hygienic.

Tayside Contracts exists to provide services on behalf of Angus Council, Dundee City Council and Perth & Kinross Council. In our 23 years, we have consistently delivered high quality, cost-efficient services to the communities of Tayside whilst our commercially-focused ethos has enabled us to return trading surpluses of around £26 million to the Councils for re-investment in public services.

The success of Tayside Contracts is very much due to the work of our employees. During my 23 years as Managing Director, my message to our workforce has been simple, 'you have been given the tools, now please go out there and deliver'. The response of our 2,500 employees has invariably been outstanding and my recognition of this and my gratitude to them cannot be overstated.

Iain C WaddellManaging Director

We returned a surplus of £1.4 million to the constituent Councils

Over 5.6 million school meals were provided to pupils throughout Tayside in 2018/19

We returned over £26 million to the Councils over the past 23 years

Our turnover of £75.9 million was an increase of £0.5 million from 2017/18

We produced and served over 42,000 meals to combat child hunger in Dundee

We provided catering services at the 147th Open Championship at Carnoustie

71% of our Catering supplies were procured from Scottish suppliers (39% from Tayside suppliers)

Our Winter Maintenance service continued to battle the elements - and win!

We played a vital role in the development of the Dundee Waterfront, the new Rail Station and the V&A.

96% of Construction inert waste recycled internally

1.6 milliion kWh of energy saved in Street Lighting

We retained our accreditation as a Living Wage Employer

7,243 training occasions were delivered to our workforce

34% of the workforce achieved perfect attendance

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Page 8 Page 9

Tayside Contracts is extremely proud to be an IIP accredited employer.

Retaining accreditation is a more rigorous process than ever before since

the introduction of the IIP '6th Generation' Standard. During 2018/19 our designated

IIP Assessor carried out extensive interviews with managers and a representative sample of our workforce. This process, along with a comprehensive IIP Employee Survey, will count towards Tayside Contracts bid to achieve re-accreditation in 2020.

Peo

ple

Training

Tayside Contracts is committed to training, developing and realising the potential of all employees and generating a culture which actively encourages innovation. 85% of the annual training plan was delivered during 2018/19 with 7,243 training occasions being held.

0

1000

2000

3000

4000

5000

6000

7000

8000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Cleaning / FM

Catering

Corporate & Support Services

Construction Division

Sickness Absence

The percentage of working days lost for the organisation in 2018/19 increased slightly from 5.9% to 6% compared to 2017/18. However, as illustrated by the trend over the past seven years shows an impressive reduction in the number of working days lost due to sickness absence.

It is worth noting that during 2018/19, 837 employees (34% of the workforce) achieved full attendance.

Accidents

The total number of accidents during 2018/19 was 150, a slight increase of 2 compared to 2017/18. Whilst this was a slight increase on the previous year, the long-term improvement trend is highly impressive, as shown in the graph.

270

221201

188 197 189 178 187

153168

184

148 150

Total Accidents

During 2018/19, the number of reportable accidents under RIDDOR increased slightly compared to 2017/18 from 12 to 13. As the graphs shows, despite this slight increase in 2018/19, there has been an impressive downturn in reportable accidents over the longer term.

At the very core of Tayside Contracts' culture and values is a recognition that Health and Safety is paramount. Our Health and Safety strategies, policies and training interventions ensure that for every activity Tayside Contracts is involved in, our commitment to Health and Safety is never compromised.

Employee Retention

Employee turnover for 2018/19 was 12.3%, a 0.7% increase from 2017/18. However, the downward trend over the past decade shows a very impressive reduction in the number of leavers which is a key indicator of a healthier workplace culture.

6.6%

5.7% 5.7%

6.2%

5.6%

5.90%6%

5.0%

5.2%

5.4%

5.6%

5.8%

6.0%

6.2%

6.4%

6.6%

6.8%

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Sickness Absence % Working Days Lost

Actual

100

Page 10 Page 11

Apprenticeships

During 2018/19 Tayside Contracts contributed £149,339 to the Apprenticeship Levy and has received £114,525 in apprentice training funding and £15,000 from the Flexible Workforce Development Fund.

We are committed to the Development of Scotland's Young Workforce agenda and in 2019 five Roadworker apprentices graduated and were offered permanent employment with Tayside Contracts. This apprenticeship was the first of its kind in Scotland and recognised the increasing requirement for skilled roadworkers, particularly in the public sector. We are proud that this apprenticeship has been developed in-house within our own Training Academy and has been externally verified and accredited by the SQA. A further eight Apprentice Roadworkers were recruited in August 2019.

In addition to the Apprentice Roadworkers, four Apprentice Mechanics were employed by Tayside Contracts on permanent contracts.

Pictured above is Wilson Baillie, winner of 2019 Tayside Excellence Award for

Apprentice of the Year

Data Protection

On 25 May 2018, the General Data Protection Regulation (GDPR) was introduced and the Data Protection Act updated to reflect the new

legislation. This resulted in increased responsibilities for organisations and strengthened the rights of individuals around how organisations handle personal data. This was the first significant update to data protection legislation and Tayside Contracts took the opportunity to review our approach to data protection.

Tayside Contracts takes its responsibilities seriously and respects the privacy of our employees, clients and suppliers. During 2018/19 Tayside Contracts delivered data protection training to approximately 500 employees who are responsible for handling personal data through the course of their duties to ensure that they are handling it in accordance with the legislation.

In addition to this, Tayside Contracts has amended its Data Protection Policy and has adopted a 'privacy by design' approach to data protection which has incorporated data protection into all of our business processes.

Tayside Contracts has nominated a representative to be responsible for data protection within the organisation and has developed robust reporting procedures to ensure that data subject access requests and data breaches are handled in accordance with the legislation. In 2018/19, Tayside Contracts reported twelve minor data breaches and processed four formal subject access requests.

Customer and Stakeholder Engagement - School Meals Survey 2019

As part of our continuous improvement plan, we conducted an online survey in early 2019 to gain feedback from pupils, parents, teachers on the primary and secondary meal service, achieving over 3,000 responses.

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Page 12 Page 13

Awards and Accolades

The 2019 Tayside Excellence Awards was another great success, showcasing the excellent performance of our employees throughout 2018/19. There were sixteen awards in total this year. To see all the winners go to:www.tayside-contracts.co.uk

Delivering Equality, Diversity and Inclusion

Tayside Contracts is fully committed to achieving equality, diversity and inclusion, supported by visible and effective leadership. For us, it is much more than compliance with the law; it is about the culture and

values of our organisation. We aim to create an inclusive and supportive environment where everyone feels valued and can perform at their very best.

Equal PayDuring 2018/19 an independent expert-in-field, conducted an equal pay audit of Tayside Contracts’ terms and conditions of employment and concluded that our pay systems remain ‘equality-proof’ and that the procedures and processes in place are appropriate to ensure that all of our jobs are evaluated fairly.

Gender Pay GapAs required by the specific duties of the Equality Act 2010, Tayside Contracts published Gender Pay Gap information on 31 March 2019. It revealed that Tayside Contracts’ Gender Pay Gap is consistent with the UK economy’s Pay Gap. Tayside Contracts Pay Gap is skewed by our most populated jobs being occupied by women - in keeping with slowly improving societal norms e.g. cleaners or catering assistants have historically been jobs which attract females rather than males. Tayside Contracts is committed to playing our part in promoting job applications from under-represented groups for all of our jobs.

WINNER Catering Team of the Year

Sidlawview Primary School, Dundee

WINNERFacilities Management

Most Improved Performer

Tayside Contracts' FM Services

WINNER Best Service Team Highways, Winter

Maintenance & Street Lighting Services

Dundee Road Maintenance Partnership

Finalist Roads/Highways Best Performer


Finalist Highways Management


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Page 14 Page 15

SCP FM

Construction

Five key themes have been identified and are integral to successful delivery. These were highlighted and explained further at the launch events.

1. Improved Integration This is about better working relationships internally and externally to ensure an efficient and effective

service delivery.

2. Back to Basics Approach This is about getting the basic things right first and building from this.

3. Standardisation Documented core activities, utilising Standard Operating Procedures (SOPs) where appropriate.

4. Accountability & Ownership Everyone being accountable and taking ownership for what they do. Empower people to make the right

decisions supported by sound financial management.

5. Succession planning at all levels Developing immediate and future capacity. Putting people first, displaying the correct values, behaviours

and expectations.

PEOPLE are key in managing resources effectively. It was explained that the work will form part of everyone’s day job but roles may need to be redefined. We can all directly affect and directly influence to help create capacity to make this change for ONE Construction. It is critical that everyone plays a role and that includes colleagues outwith the Construction Division that support us every day.

In August 2018 the Construction Division formally launch the vision of ONE Construction. Three formal

launch events were held during August and October at Discovery Point Dundee, The Reid Hall Forfar and Blairgowrie Town Hall. This saw close to 400 staff members introduced to the vision, key themes and delivery framework. Basically what ONE Construction means to us all.

In keeping with the business plan key themes and objectives, the long term success of the Construction Division relies on delivering the highest quality services for the minimum cost, through adaptability. By leading, inspiring and motivating Construction Division employees.

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Per

form

ance Surplus

Tayside Contracts’ overall financial performance in 2018/19 was strong, with an operational surplus of £1.5m, of which £1.4m will be returned to the constituent Councils.

It brings the cumulative surpluses returned to the Councils for 23 years to around £26m.

and a further 32% from Scottish suppliers outside Tayside.

This means that 71% of our supplies are from Scottish suppliers.

Since we started in 1996, we have returned of surplus to the three Tayside Councils.

of these surpluses were made in the Construction Division

of these surpluses were made in the Facilities Services Division

We are delighted to report that some 39% of our supplies are procured from Tayside suppliers,

£22,432k29%

£7,312k10%

£5,957k8%

£6,596k9%

£16,014k21%

£17,559k23%

Tayside Contracts Income 2018/19

Roads maintenance Winter maintenance Street lightning

Other construction Catering Facilities management

£36,490k49%

£19,078k26%

£436k0%

£7,027k9%

£3,531k5%

£3,412k5%

£4,371k6%

Tayside Contracts Total Expenditure 2018/19

Employees Materials Property Service overheads

Central overheads Sub-contractors Plant hire & funding

Costs

Turnover

£26m

41%59%

We have returned a surplus every year of trading.

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Page 18 Page 19

Trading Accounts

Tayside Contracts maintains two Statutory Trading Accounts in accordance with the Local Government in Scotland Act 2003. These are:

Construction Division trading account, comprising: 9 roads maintenance, 9 winter maintenance, 9 street lighting, 9 quarry operations, 9 sign shop and 9 fleet services.

Facilities Services Division trading account, comprising: 9 catering, 9 cleaning, 9 janitorial and 9 school crossing patrol services.

Please refer to our 2018/19 Annual Accounts for further details of financial performance. (https://www.tayside-contracts.co.uk/publications)

Community Meal Service

In keeping with the national trend of falling demand for the community meals service, Tay Cuisine experienced an 8% decrease in uptake in 2018/19 compared to the previous year.

To promote the meals service and increase meal numbers Tay Cuisine offers a ‘Monthly Events Calendar’ and ‘Afternoon Teas’ to lunch clubs and sheltered housing complexes, which supports social inclusion and helps reduce isolation in our communities.

During 2018/19, Tayside Contracts provided almost 5.6 million school meals to pupils across Tayside. Whilst there was a marginal decrease in the primary sector of 1.7% compared to the previous year. This can at least in part be attributed to factors such as the rationalisation of school estates and movement in school rolls.

In contrast, despite the ongoing challenge of competition from local food outlets selling less healthy food, the uptake of meals in secondary schools increased by 1.1% in 2018/19 compared to the previous year. This increase can be attributed to various factors, these include the introduction of a shorter lunch break, which encourages more pupils to stay in school, an increase in pre-orders, an extended range of deli products and salad bars, which appeal to the more health-conscious pupils and the implementation of online payment systems, ParentPay and iPayimpact, where lunch monies go straight to pupils’ accounts.

School Meal Service105

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Commencement of £4.8m LED lighting upgrade project in Dundee

School BBQ season

Providing meals to combat holiday hunger for school children

Opening of the Dundee Railway Station cycle store

Dougie McKay, Head of Operations launches One Construction

Tayside Contracts and the 4 seasons

July 2018

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Page 22 Page 23

/cont... School Meals Service

The overall 2018/19 position is an increase in uptake of 21,627 meals which is a slight improvement on the previous year.

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Trend of School Meal Numbers

Dundee City Perth & Kinross Angus

Tayside Meal Uptake - Flying the Flag for Scotland

The 'School Healthy Living Survey' is carried out in February each year to measure, amongst other things, the uptake of school meals in all publicly funded schools in Scotland.

The 2018/19 statistics reflect a very strong performance for Tayside, compared to Scotland as a whole.

Construction Division Income

2018/19 was a successful year for the Construction Division, particularly given ongoing budgetary pressures on our primary customers, the constituent Councils of Tayside. The Division’s core workload was bolstered by securing commissions for construction of new infrastructure projects, and increasing our portfolio through expansion and diversification

of services to the Tayside Councils and other local authorities. The winter season was mild in comparison to the previous year which resulted in minimal disruption to project delivery in the final half of the financial year. Of the overall income generated during 2018/19, 96% was from the constituent Councils and 4% from other external sources.

Collace Quarry

During 2018/19, Collace Quarry manufactured 64,538

tonnes of coated material, used to surface the roads and footpaths of Tayside. This was an increase of 13% compared with 2017/18. Although Council budgets remained relatively static, the increase was due to our success in winning private sector work. A further 6,146 tonnes was provided to the external private market, similar to previous years.

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The winter season during 2018/19 was mild in comparison to the previous

year which featured the ‘Beast from the East’, however still encompassed a significant winter maintenance operation in regard to precautionary treatment of roads and footways to prevent ice forming. Detailed below are some of the key figures associated with the season.

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

TonnesWinter Maintenance Salt Usage

Activity Total 2018/19 Measure Equivalence

7,107 was the total number of carriageway treatments undertaken.

334,310 km's of road network was treated during the winter period, the equivalent of travelling round the earth 8 times.

701 was the total number of footway treatments undertaken.

27,491 tonnes of salt were used on the roads and footpaths of Tayside.

33,468 hours were worked by our winter maintenance teams during the 2018/19 winter, which is less than half the hours worked in 2017/18 which, of course, featured the infamous 'Beast from the East'.

2,980 grit bins were restocked by Tayside Contracts.

60% of our fleet is dual use i.e. used for both winter and day to day operational purposes.

Street Lighting

Street Lighting is a core service delivered by Tayside Contracts and the various teams have been heavily involved in the significant transition to LED lights over the assets maintained on behalf of each Council.

Detailed below are some of the key statistics relating to the service delivered by the lighting unit.

In addition to the core lighting service the street lighting team have also undertaken a variety of electrical and lighting commissions for other Council service departments in addition to a number of contracts for private sector clients and developers.

Activity Total 2018/19 Measure Equivalence

3,170 the is the number of columns replaced which is three times more than 2017/18.

10,852 is the number of LEDs installed which is double the 5,287 replaced during 2017/18.

1,598,648(kWh)

is the amount of energy saved which is equivalent to powering 400 homes for a year.

7,375 is the number of faults repaired which is 10% less than 2017/18.

95.7% of faults completed within 7 days.

Winter Maintenance108

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2018/19 Miles, Fuel & CO2 Statistics

2018/19 Miles Per Gallon (MPG) & CO2 Per/m Statistics

Environmental Fuel cost and CO2

During 2018/19 our fleet travelled 2,402,117 miles, using 704,268 litres of diesel. The miles covered is 16% less than 2017/18. This can, in part, be attributed to the significant decrease in winter activity, compared

to 2017/18 which was the third mildest in the last 10 years.

Tayside Contracts spent £746,524 on fuelling vehicles during 2018/19, a decrease on 2017/18 (£796,318) although as highlighted above this is partly as a consequence of reduced winter activity.

Although the number of miles travelled and the total fuel usage reduced, our miles per gallon (MPG) performance remained similar to 2017/18 with a negligible decrease of 1.5% (15.74 to 15.51 MPG). However, the 2018/19 MPG is still 14% better than the average for the previous five years. This is an indication that our MPG performance remains strong against a background of an increasing number of Euro 6 engines.

Against the average MPG for the last five years and based on an equal number of miles, in 2018/19 we used 95,750 less litres of derv which equates to 256 tonnes less CO2. Specifically comparing 2018/19 to 2017/18 we used 128,000 litres less derv which equates to 344 tonnes less CO2 emissions.

Other significant fuel usage is in the production of coated surfacing material at Collace quarry, where 682,101 litres of gas oil is used to produce the surfacing material as referred to on page 23.

Tayside Contracts is fully aware of the impact the services it provides has on the environment and is always looking at ways of reducing this. Aligned to our Business Plan’s strategic theme the focus is to align with

global targets of reducing CO2 emissions and carbon reduction and is always something that the organisation is looking to assist with where feasible.

Some of these changes include: - 9 Reduced fuel consumption in coated material production.

9 Promotion of standard coated material used across the three Councils to reduce production costs.

9 Maximising and recycling construction waste material (96%).

9 Upgraded dust reclaim system to minimise use of imported lime filler and maximise the use of waste fines. Environmental benefit of using 3,500T of a historical waste product and not using lime.

9 Gully waste recycling, 3967T of material.

9 Improved MPG in fleet vehicle, 1.5% increase.

9 Route optimisation work (Dundee only) has reduced costs and improved winter maintenance coverage.

9 Implementation of automated gritting technology (Dundee only), can reduce salt usage by 30% in urban environment.

9 Gritter tracking (Dundee only) now means that the public, through the internet, can see where the gritters have been.

9 Assisting in the development of residual salt technology and trial, aim to reduce the salt usage and long term impact on environment.

9 Use of dual-purpose vehicles for the delivery of the winter service. 60% of the front-line winter maintenance fleet is now dual-purpose which reduces costs through being able to be utilised all year round.

9 Ongoing vehicle replacement with Euro 6 engines, 40% of fleet (101 of 250 vehicles).

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Capital Investment in Fleet

As part of the fleet procurement strategy approved at our Joint Committee in June 2018, we continue to invest in plant and equipment to meet the needs of the service. Tayside Contracts manages a diverse

range of fleet to cover the varying service requirements for all stakeholders. In total there are 597 vehicles and items of plant managed and maintained by Tayside Contracts. Spend on capital for fleet purchases during 2018/19 was £ 1,853.3k. This was £329.5k on winter vehicles and equipment and £1,523.8k on operational vehicles and plant. Spend was slightly lower than recent years mainly due to there being no quarry plant due for replacement.

Fleet Maintenance

The Driver and Vehicle Standards Agency (DVSA) monitor the performance of all organisations holding an Operator’s License on behalf of the Traffic Commissioner. They do this through a mechanism called the

Operator Compliance and Risk Score (OCRS) which is calculated from two sources: • Performance at annual test• Findings at roadside examinations. As well as the vehicle condition this also covers areas such as

Drivers Hours, Drivers Hours Record Keeping and Overloading.

OCRS is shown through a ‘traffic lights’ system which allows DVSA to target their limited resources on more high risk operators via number plate recognition and IT links into their national database. OCRS is reported monthly. To reduce the risk of being stopped in roadside checks or being the subject of site visits by the DVSA examiners it is essential that operators perform within the ‘green bands’

of the OCRS system. Currently Tayside Contracts OCRS score remains at G00 for both Roadworthiness and Traffic which is the best score that can be achieved and has never been below this rating since the introduction of the system in October 2012.

Compared to 2017/18 the annual test pass rate for 'first time pass' increased by 2.37% in 2018/19, raising from 94.3% to 96.7%. The increase of the annual test pass rate is generally attributed to good workshop practice, regular vehicle inspections and quality control checks on maintenance staff.

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Par

tner

ship

Holiday Food and Fun Programme

The provision of packed lunches by Tay Cuisine for ‘The Dundee Fun and Food Programme’ continued

to be very successful. During Easter, Summer and October school breaks, Tay Cuisine provided in excess of 11,500 breakfasts and 31,000 lunches to many children who may otherwise have gone hungry. This is an increase of 14% on previous years.

The catering provision for this service will move to Dundee schools in the coming year, which will embed the service further within the delivery of meals to young people be it for Dundee Bairns or early years pupils that are now taking this service.

Catering For the Future

In an uncertain world, one thing we can be sure of is that

there will be ongoing pressure to deliver more for less. That, of

course, is a big ask. However, it can be done, and Tayside Contracts has

stepped up to the plate once again with an exciting vision for the future of

our school, nursery and community meal services.

The Scottish Government’s Early Learning and Childcare (ELC) initiative will require Tayside

Contracts to deliver an additional 1.2 million meals per year on behalf of the Tayside Councils from

August 2020. In the Perth and Kinross area, this can be achieved with the existing service delivery model. However, this simply would not be possible in the Angus and Dundee areas.

Another key factor in our thinking was how best could we protect the quality of our services and jobs in the face of increasingly severe local government budget

cuts. Our response has been to develop a radical new way of producing our meals and delivering our services in the Angus and Dundee areas.

The new service model is designed around a cook-freeze Central Production Unit (CPU) where freshly cooked meals will be frozen for shipping out to hubs across Angus and Dundee, where they will be regenerated.

At point of service, there will be no change to the service the pupils currently receive. The food will be served from the same servery and will be presented in the same manner. The food will look the same, taste the same and in most cases, the meals will be served by the same familiar, welcoming faces.

A Project Team has been established to ensure that this daunting but exciting venture is delivered on time and on budget, with all objectives achieved.

Frank Reilly CPU Project Leader

Gary Conway CPU Project Manager

Ibukun Strachan Depute CPU Project Manager

Jane Deasley

CPU Project Operations

Manager

ELC 1140 Pilot

The Expansion of Early Learning and Childcare in Scotland (ELC) 1140 hours entitles every

pre-school age child to a lunch and teatime meal or snack. The early phasing of ELC 1140 hours commenced in August 2018 and will continue until the full implementation deadline of August 2020. The provision will be for 45 or 50 weeks of the year, and parents can opt for their children to attend from 8am – 6pm, Monday to Friday.

This will require Tayside Contracts to provide additional ELC meals in schools and nurseries operated by the constituent Councils as well as private provider nurseries, and as the nursery provision extends outwith term time, Tayside Contracts will provide meals during school holidays, which means the implementation of a revised catering staffing structure.

A number of operational challenges were presented during the roll out, however these were overcome

through working in partnership with the school nursery teams. As some nurseries provide the meal within the nursery area and some in the school dining rooms, transportation and delivery of these meals to different locations has been a challenge, but with careful planning we managed to organise and deliver the service within the parameters of the nursery school facilities. New nursery crockery, cutlery, containers and delivery boxes were purchased to

ensure the meals were delivered following food safety guidelines and regulations. There are also other FM requirements such as cleaning and janitorial services to ensure that nursery school areas are kept hygienically clean and that buildings remain secure.

Tayside Contracts currently provides approximately 5.6 million school meals per year and it is anticipated that this will increase to in excess of 7 million with the expansion of ELC from August 2020.

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Open Golf Championship – Carnoustie July 2018

Tayside Contracts provided a catering service during the Open Golf Championship for campers that were staying in the grounds of Carnoustie

High School as well as Police Scotland, Councillors and Local Wardens and at Burnside Primary School. During this period, the organisation provided a breakfast, lunch and evening meal at both locations between 6am and 10.30pm each day.

The catering teams worked closely with the service providers to ensure that all arrangements were in place prior to the commencement of The Open. This was a real team effort with support provided from throughout the organisation. The services could not have been provided without the dedication, support and flexibility of all the staff during this time, and this was very much reflected in the excellent feedback received from clients as well as customers.

The combined income from both the Carnoustie High Schoool and Burnside Primary School business was in excess of £30,000 and whilst this was excellent, we believe it also allowed Tayside Contracts to showcase the excellent services that the organisation can deliver.

Our values, as in the current Business Plan, were very much at the forefront of everything we did during the delivery of this service:

People, Performance, Partnership and Perception

Access to Free Sanitary Products – Partnership Working with Angus Council

Background From August 2018 all Local Authorities in Scotland were provided with funding to introduce access to free sanitary products in schools. The Scottish Government made a new commitment in the 2018 Programme for Government to go further than this, and ‘aim to increase the number and range of places where sanitary products are available for those who need them’.

Angus Delivery Model

Through discussions with our clients it was agreed that Tayside Contracts would deliver this service to schools and non-education establishments throughout Angus. The roll out to the schools commenced in August 2018 and was fully implemented by the end of September 2018.

Tayside Contracts distributed boxes of products to all the establishments, along with information posters, advice on the various products, key health and safety information on Toxic Shock Syndrome, contact details for replenishment and signposting to other financial support available.

This was extended to include 120 non-education establishments by the end of March 2019. The delivery of this service has been extremely successful, and this has been reflected in the positive feedback received from our clients within the Council.

Partnership Working

It has become increasingly apparent in recent years that collaboration and shared services are the

most efficient means of providing Best Value public services.

Partnership working, which removes the inefficiencies of a traditional contractual arrangement where the client and contractor invariably duplicate effort and often end up working against rather than with each other.

Tayside Contracts has recognised for some time that partnering is the way forward and this has been the primary focus in our strategic approach to delivering integrated services of both our Construction and Facilities Services Divisions.

During 2018/19, 56.8% of our income was generated through partnership working, this was an increase of £1.3m from 2017/18.

We are currently engaged in nine partnering arrangements with our constituent Councils:

Roads Maintenance Partnerships in Dundee and Perth;

Integrated Facilities Management Services Partnerships in Angus, Dundee and Perth;

Street Lighting Partnerships in Angus, Dundee and Perth & Kinross;

Fleet Management Partneship with Angus Council.

In 2018/19 a number of these existing partnerships were renewed for a further 5 year period, demonstrating the benefit and commitment to delivering services in an integrated manner.

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Per

cepti

on School Meal Regulations 2020

In early 2017, the Scottish Government established a technical working group to review school meal regulations which are a decade old. Following the publication of

their findings, a public consultation took place in 2018 which resulted in the Scottish Government’s acceptance of all the recommendations of the working group. These changes

will help the Scottish Government to meet its objectives to improve diet, halve childhood obesity by 2030 by improving young people’s healthy eating habits.

The new legislation will come into effect in August 2020, and the main changes are: - » School meals must not exceed a specified daily calorie allowance » A reduction in red and processed meat » An increase of fruit and vegetables to be made available daily » The elimination of fruit juice-based drinks » A reduction in the sugar and fat content of bakery products » A specified minimum fibre content for bread products

Environmental Improvements

Aligned to our Business Plan’s strategic theme, the Facilities Services Division takes its environmental responsibilities extremely seriously, and as such has made a number of changes to minimise the impact of services on the environment to benefit not only our organisation but also stakeholders and local communities.

Some of these changes include: -

9 A reduction in the number of disposable food packaging products 9 Replacement of food packaging with biodegradable, compostable and recyclable alternatives 9 The use of concentrated cleaning chemicals to minimise plastic packaging 9 Ceasing the use of aerosol cleaning products 9 The use of multi temperature vehicles to minimise the number of supplier deliveries 9 The reduction of journeys involved in transported meals 9 The replacement of drinks products which have straws 9 The reduction of single use plastic

Allergen Awareness

Currently, over 1,000 allergy menu options are produced annually for children across Tayside's schools. These menus accommodate over 330 different allergy combinations and in excess of 100 individual allergens.

Tay Cuisine and all school and nursery kitchens operated by Tayside Contracts are fully compliant with the Food Information Regulations 2014 and Regulation (EU) No 1169/2011 through food labelling and additional information available within school dining rooms and Tayside Contracts' website.

To ensure understanding and adherence, annual refresher training is delivered to Facilities Officers, and Catering Supervisors and thereafter cascaded to all Cooks in Charge, Assistant Cooks and Catering Assistants.

Tayside Contracts also provides adapted menus for pupils who require Texture Modified Meals.

In order to ensure the consistent delivery of quality services, Tayside Contracts Facilities Management Team has a Quality Assurance System in place. Part of the process are regular audits which are recorded via a handheld system called Mobile Connect.

% positive results 2017/18 2018/19

% Movement

Catering Cleaning FM Catering Cleaning FMAngus 97.4% 96.3% 90.5% 98.3% 95.6% 91.1% +0.27%Dundee 92.7% 92.5% 92.9% 91.1% 92.4% 90.1% -3.53%Perth 93.4% 94.4% 93.1% 92.6% 92.6% 93.3% -1.90%

Quality Assurance System - Results

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SEPA reportable incidents

Tayside Contracts is required by environmental regulations to report certain incidents of spillage or gas

emissions to SEPA, the Scottish Environmental Protection Agency. These include CO2 and methane from testing wells at recycling sites, water quality at settlement ponds, and spillages of fuel and emulsions.

During 2018/19, we reported 14 incidents to SEPA, these incidents related to the inert landfill at the Bolshan quarry where CO2 levels breached the methane gas trigger limit. The methane gas omitted originates from previous depositions at this leased site and is not connected to activity or use by Tayside Contracts during the period.

Customer Satisfaction

Within the Construction Division regular meetings are held with partners and stakeholders to

discuss items and issues of mutual interest. Any issues arising from these meetings are addressed as a matter of priority. The quality of our work is a standard agenda item and quality is central to ensuring customer satisfaction and this is recognised by the 2017-2020 Business Plan featuring the provision of quality as one of the key business objectives.

The Construction Division continues to modernise the delivery and measurement of the quality of service provision. The British Standard Institution (BSI) externally audit and monitor adherence and compliance of Tayside Contracts Quality and Environmental management systems. The ongoing development of Standard Operating Procedures to give simple, measurable instructions across all areas

of the Division will continue in 2019/20 as part of the vision for a “One Construction” service delivery. This will encourage the transfer of best practice across all areas to drive up performance standards.

Collace Quarry and Transport

Quarry &Transport

704,268Lt of fuel to travel 2,402,117 miles by our

fleet

Fuel Use Vehicles

70,684T produced, 64,538T used to surface

roads and footways

101 vehicles (40%) Euro 6 compliant - 250 in

scope.

Euro 6 Vehicles

Coated Material Produced Collace Quarry Waste Fines

£1,853k spent upgrading fleet and plant

Capital Investment External Vehicle/Plant Hire17.3% reduction on

external hires, a saving of £367k

3500T of lime, replaced with waste fines saving

£131k.

Recycling

Tayside Contracts has an excellent track record of recycling across the organisation. There are many areas of focus within the Construction Division. These include recycling inert construction waste, quarry fine waste, gully waste, to name a few.

During 2018/19 96% of construction inert waste was recycled internally, an increase of 4% compared to 2017/18. This was from 69,431 tonnes of waste received into the 4 recycling centres operated by Tayside Contracts. The inert waste (excavated surfacing, kerbs and concrete, soils and stones) are processed into saleable products (Type 1 and Crusher Run). The 4% unrecyclable material at Tayside Contracts facilities is processed by an external partner into other saleable products (sand, gravel, pipe bedding, etc), with only less than 1% of material unsuitable for reuse.

Gully waste collected throughout the region can be processed through reed bed systems at Forfar, Loanleven and Riverside. This enables 70% liquid content to be cleaned and reused as part of the gully and street cleaning operations. Currently the remaining 30% solids can be utilised within a composting process however, at this time it has to be taken to landfill pending SEPA approval for its general use in composting material.

Due to the increasing costs of landfill, together with taxes on quarrying stone, it is both financially and environmentally advantageous to maximise recycling efforts.

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SUMMARY OF KPIs AND TARGETSKPIs Target

2018/19Actuals

EXCELLENCE IN SERVICE DELIVERY

1.0 Increase the level of stakeholder satisfaction

1.1 Achievement of a satisfaction level of Community meals >90School Meals >70%IFMS >70%

1.2 Surveys conducted

results to be reported to August Joint Committee

EXCELLENCE INCHANGE MANAGEMENT

2.0 Increase the number of employees who are rated in terms of management performance as competent or excelling in current role

2.1 >85% rated competent or excelling

2.2 97%

EXCELLENCE INCOMMERCIALISATION

3.0 Increase income as a proportion of cost

3.1 102.69% 3.2 102.1%

KPIs Target2018/19

Actuals

LEADERSHIP 4.0 Positive leadership results from either Investors in People (IIP) or employee survey (ES)

4.1 >80% 4.2 IIP 2017 – 80%ES 2018 – 85%

PEOPLE 5.0 Reduce number of days lost due to sickness absence

5.1 <5.6% 5.2 6%

FINANCE 6.0 Achieve the greater of the required rate of return or the required budgeted surplus by the constituent Councils

6.1 >£979k surplus

6.2 £1,525k

KPIs Target2018/19

Actuals

CORPORATE GOVERNANCE 7.0 Improving our Corporate Govern-ance standing in accordance with CIPFA/Solace ‘Delivering Good Governance in Local Government: Framework (2016)’

7.1 >80% compliance

7.2 90.9%

COMMUNITY BENEFITS

8.0 Increase where possible local (Tayside and surrounding area) procurement spend

8.1 >45% 8.2 39.4%

BUSINESS DEVELOPMENT 9.0 Increase diversity of our business activities

9.1 2 or more new business streams

9.2 2—Minor works for PKC

& sanitary products

Angus Council PARTNERSHIP 10.0 Increase the % of partnership

and collaborative turnover10.1 50% 10.2 41.6%

SOCIAL RESPONSIBILITY

11.0 Achieve and retain accreditation of a Living Wage employer

11.1 By the end of 2018

11.0 Retained

EQUALITY & DIVERSITY

12.0 Completion of an Equal Pay Audit and publication of an Equal Pay Statement

12.1 Achievement of a satisfactory outcome from audit

12.2 Achieved & reported

to Joint Committee

Appendix 1

Strategic Goals

EnablersStrategic Them

es

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Produced and designed by TC Nov 2019

Tayside Contracts continues to be accredited as a Living Wage employer

Tayside ContractsContracts House1 Soutar Street

DundeeDD3 8SS

01382 812721

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ITEM No …9…….….. REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: SCHOOL MEALS REGULATIONS 2020 – IMPACT ASSESSMENT REPORT BY: MANAGING DIRECTOR REPORT NO: JC38/2019 1.0 PURPOSE OF REPORT

1.1 To apprise the Joint Committee of the forthcoming Food and Drink in Schools (Scotland)

Regulations 2020 and the strategy for implementing the requirements of the legislation. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Joint Committee note the contents of this report and that

further detailed reports will be brought forward as necessary.


3.1 There are no direct financial implications arising from this report. 4.0 BACKGROUND 4.1 The current legislation around school meal provision is ten years old and the Scottish

Government has recognised the need to update the legislation to better align with up to date scientific dietary advice. Following an extensive consultation exercise, the legislation has been updated for implementation in October 2020. Some of the changes are radical and could have a considerable impact on not only the kind of food served in schools, but on the uptake of school meals. Appendix 1 details the key changes and challenges presented by the legislation.

4.2 In 2004, school meals in Scotland were revolutionised with the introduction of ‘Hungry

for Success’. This was superseded with further legislation known as the Schools (Health Promotion and Nutrition) (Scotland) Act 2007 and the Food and Drink in Schools (Scotland) Regulations 2008.

4.3 From the outset, the aim was to improve the health of Scotland as a nation and to tackle obesity in Scotland through improved diet, as eating habits are instilled during childhood. This reinforced the importance of the provision of healthy school meals.

4.4 According to the latest Scottish Health Survey, 30% of Scotland’s children are now in the overweight bracket – 2% more than the year before – with 16% at risk of obesity.

4.5 The long term effects of carrying excess weight are well documented and include the

risk of cancers, diabetes and cardiovascular disease, highlighting the need for further interventions to tackle this growing epidemic, and to normalise ‘healthy eating’.

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https://www.dailyrecord.co.uk/all-about/obesity

4.6 As the school meals provider for the three Tayside Councils, Tayside Contracts provide school meals to around 30,000 pupils per day. Therefore, its decisions regarding school meal choices have a considerable impact on the health of school-aged children in Tayside.

4.7 Ultimately it is the choice of the pupil whether or not they want a school meal on any given day. This means that school meals must appeal to pupils, or the alternative is to eat a packed meal, or to use high street food outlets, which we know, more often than not, are less healthy options. The real challenge for Tayside Contracts is to balance its commercial targets with its statutory requirements and the moral imperative to provide a healthy, yet appealing, school meal to young people across Tayside.

5.0 VISION

5.1 ‘Children and young people in Scotland have the right to eat healthy and nutritious foods, and it is important that good food behaviours are consistently modelled wherever they may be.’ (A Healthier Future – Scotland’s Diet & Healthy Weight Delivery Plan, 2018).

5.2 Tayside Contracts’ vision is to implement gradual changes to school meals, maintaining school meal uptake whilst ensuring compliance with the new regulations by 2020, which will hopefully facilitate the reduction of childhood obesity levels in Tayside.

5.3 Key Aims

1. Achieve full compliance with the 2020 regulations. 2. Maximise meal uptake in primary schools. 3. Maximise meal uptake in secondary schools.

5.4 Strategic Themes

There are three clear themes to ensure the success of this strategy:

Planning

Partnership Working

Communication, Consultation and Engagement.

6.0 PLANNING

6.1 To successfully implement the new 2020 regulations, an action plan was developed to detail how and when improvement measures will occur, making the best use of the time available before the new regulations are implemented.

7.0 PARTNERSHIP WORKING

7.1 A clear and joined-up vision is required by all in order to have a positive working relationship to implement change. Partnership will be crucial at all levels, from Councils, schools and Tayside Contracts’ management and catering workforce. Tayside Contracts’ Assistant Facilities Business Improvement Manager (Food and Nutrition) and Food and Nutrition Analyst are involved in the national working group for the 2020 regulations.

8.0 COMMUNICATION, ENGAGEMENT & CONSULTATION STRATEGY

8.1 Consultation is essential prior to implementation of any radical changes around meal choices. It is critical that Tayside Contracts’ catering professionals communicate directly

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to Head Teachers and pupils rather than rely on Council managers to explain the imminent changes and the subsequent impact on the school meal offering.

The following stakeholders have been identified:

Tayside Contracts’ Corporate Management Team

Council Client Officers

Facilities Services’ Business Managers

Area supervisory teams

School catering teams

Head Teachers

Pupils

Parents. Consultation forums include:

A short-term working group

An online survey for parents, pupils and teachers

Pupil focus groups

Policy updates. 8.2 Communication is essential for any form of change management and to prevent

resistance to change. The forthcoming regulations are an opportunity to promote the positive changes the new regulations will bring rather than to simply highlight what will no longer be available.

8.3 A variety of communication methods will be utilised in order to capture as wide a range of stakeholders as possible. These methods include:

Presentations

Training

Flyers

Mailshots

Surveys

Social Media

Road shows.

9.0 MENU, PRODUCT & RECIPE DEVELOPMENT

9.1 Menu development is a challenging process, including development of all associated

material such as recipes, stock sheets and specially adapted menus.

9.2 The proposed changes to the food and drink regulations will have a considerable impact on the food choices available to pupils e.g. due to the limitations imposed on the frequency of certain food types, it will be impossible to continue to offer four daily choices, therefore, there will be a move towards a three-choice menu.

9.3 The first stage has been to offer one of the daily four choices as a vegetarian alternative of the same dish. For example, if one option is chicken curry, then another option that day would be Quorn curry, leaving only one other option apart from the sandwich option.

9.4 The role of Tayside Contracts’ Menu Development Chef will be integral during the next year. This includes:

Researching trends on the high street

Sourcing new compliant products

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Developing new ranges for Street Food

Updating and re-issuing existing recipes

Presenting and promoting new products and ranges to pupils and kitchen staff.

10.0 PLANNED PRODUCT PHASING OUT

10.1 In order to comply with the proposed 2020 regulations, there are products that will no

longer be compliant post-implementation. Therefore, a phasing-out plan has been developed, so that non-compliant food choices can be gradually withdrawn and hopefully pre-empt and avoid a negative impact on meal uptake.

11.0 RISKS

11.1 The changes in the school menus to ensure compliance with the new legislation carry a

significant risk to meal uptake. Appendix 2 details a risk assessment of the changes.

12.0 REVIEW AND EVALUATION

12.1 Primary and secondary meal uptake figures will be monitored on a regular basis to

record the effect of the new regulations and phasing-out of products. Management information from individual schools will also be evaluated.

12.2 Management information will be obtained by the Procurement Section from suppliers

and reviewed to ensure only compliant products are being purchased. 12.3 Consultation, engagement and communication will continue after the implementation

of the regulations to evaluate the meal service from a customer perspective.

13.0 EQUALITIES ASSESSMENT

13.1 The issues considered within this report have, as required by legislation, been the

subject of consideration from an equalities perspective. 13.2 An Equalities impact assessment (EqIA) is not required.

14.0 CONSULTATIONS

14.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report. 15.0 BACKGROUND PAPERS 15.1 None. Iain C Waddell Managing Director

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Appendix 1: The Key Changes/Challenges presented by the New Legislation

Current Legislation

New Legislation

School meals must not exceed a specified weekly calorie allowance School meals must not exceed a specified daily calorie allowance

No restriction on red/processed meat but weekly analysis should comply

Primary – Red/processed meat is currently served 4 times per week

Secondary – Red/processed meat available at lunch and morning break daily

Reduction in red and processed meat

Primary – Red/processed meat served a maximum 3 times per week

Secondary – Significantly reduced frequency of ham and breakfast rolls

No restriction on individual items but weekly analysis should comply Reduction in sugar and fat content of bakery products

No fibre content specified but weekly analysis should comply Bread products must contain specific fibre content, mostly found in

wholegrain/brown breads

No limit on pastry products but weekly analysis should comply Maximum of 2 pastry products per week

Only milk, water and fruit juice-based drinks are served No fruit juice-based drinks can be served

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Appendix 2: Risk Assessment

Risk

Risk Score

Risk Status Before Mitigation

Action to Mitigate

Risk Score

Risk Status After Mitigation

P I Total P I Total

1 Decrease in meal numbers due to a reduction to a 3-choice menu - Primary

3 3 9 Significant Effective communication and development of a compliant menu which has appealing choices

2 3 6 Moderate

2 Decrease in meal numbers due to a reduction in the daily calorie allowance and subsequent decrease in calorific dishes and frequency of desserts - Primary

3 3 9 Significant Effective communication, development of healthier recipes for dishes with a higher calorific value and introduction of a variety of starters in place of desserts

2 3 6 Moderate

3 Decrease in meal numbers due to a reduction in the size/sugar and fat content of bakery goods - Secondary

3 3 9 Significant Effective communication, development of healthier versions of existing bakery goods and development/sourcing of new products

2 3 6 Moderate

4 Decrease in meal numbers due to a reduction of the frequency of ham in deli products - Secondary

3 3 9 Significant Effective communication, introduction of new sandwich fillers and increase in options of alternative fillings e.g. chicken

2 3 6 Moderate

5 Decrease in meal numbers due to the limited frequency of pies, filled breakfast rolls, croissants etc sold at morning break

3 3 9 Significant Effective communication and the introduction of healthier alternatives e.g. chicken sausages

2 3 6 Moderate

6 Decrease in meal numbers due to the use of mostly brown or wholegrain bread rather than white

3 3 9 Significant Effective communication and introduction of increased fibre white breads or ‘half and half’ products

2 3 6 Moderate

7 The perception that the legislation changes are related to the move to a CPU service delivery model

4 4 12 High Effective communication, consultation and engagement with all stakeholders

3 3 9 Significant

NB: Risks are calculated using a 5 x 5 matrix of probability (P) x Impact (I)

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ITEM No …10…...…..

1

REPORT TO: TAYSIDE CONTRACTS JOINT COMMITTEE – 18 NOVEMBER 2019 REPORT ON: TAYSIDE MEALS PRODUCTION CENTRE – TAY CUISINE REPORT BY: MANAGING DIRECTOR REPORT NO: JC39/2019 1.0 PURPOSE OF REPORT 1.1 On 18 March 2019 the Joint Committee was advised that all three constituent

Councils had authorised Tayside Contracts to develop and implement a Tayside Meals Production Centre (TMPC) service delivery model operating from Tay Cuisine to provide primary school and Early Learning and Childcare (ELC) meals throughout Tayside and community Meals in Dundee (Report: JC9/2019). Perth and Kinross Council has subsequently decided to withdraw from the venture. This report advises the Joint Committee of the impact of Perth and Kinross Council’s withdrawal and confirms Angus and Dundee City Councils’ decision to continue to implement the TMPC without Perth and Kinross Council.

2.0 RECOMMENDATIONS 2.1 The Joint Committee is asked to note the contents of this report and, in particular,

note that:

i) Whilst Perth and Kinross Council has withdrawn from the TMPC venture Angus and Dundee City Councils have subsequently confirmed that they will proceed as planned and have authorised Tayside Contracts to develop and implement the TMPC at Tay Cuisine to provide primary school and ELC meals services for Angus and Dundee City Councils and a community meals service in Dundee only.

ii) Angus and Dundee City Councils have authorised Tayside Contracts to borrow

up to £1.9m from Dundee City Council’s Prudential Loans Fund for Tayside Contracts to make a capital investment of up to £1.5m in order to develop and implement the TMPC delivery model and £400k to fund other project costs (e.g. architects, other professional services, etc).

iii) Some or all of the loan will be drawn down during the current financial year.

iv) The TMPC Project remains on budget and on schedule to go live in August

2020, when the 1140 hours ELC provision (and associated meals provision) becomes mandatory for Scottish Councils.

v) The estimated 400,000 ELC meals in the Perth and Kinross Council area will be provided by existing production and distribution methods.

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3.0 FINANCIAL IMPLICATIONS 3.1 Project Funding

Tayside Contracts will borrow up to £1.9m to develop and implement Tay Cuisine. Angus and Dundee City Councils will each incur a direct cost of an additional £100k to fund the required works to their school estates. Therefore, the total one-off financial outlay for Tayside Contracts and Angus and Dundee City Councils combined is estimated at £2.1m. With the TMPC model generating a projected annual saving of over £550k the estimated project payback period for the project is now 3.8 years, rather than 2 years if Perth and Kinross Council had remained part of the venture (as detailed at Appendix 1). The annual savings for Angus and Dundee City Councils have been reduced by £25k and £63k respectively compared to the report submitted to the Joint Committee on 18 March 2019, largely as a consequence of Perth and Kinross Council’s withdrawal.

3.2 Net Financial Benefit to the constituent Councils

The net financial benefit to Angus and Dundee City Councils (incorporating loan charges) is estimated at over £550k year on year. This comprises an annual reduction in Tayside Contracts’ charges per meal (including ’parent subsidies’) to Angus and Dundee City Councils of £505k and an anticipated annual increase of £43k in Angus and Dundee City Council’s share of Tayside Contracts’ distributable surplus.

4.0 BACKGROUND

4.1 Current School Meals Service

Tayside Contracts currently provides circa 3.5m meals per year to schools across Angus and Dundee. The meals are produced at 47 production kitchens and are served to pupils at these schools and transported from the schools with production kitchens to 56 schools with dining centres/finishing kitchens.

5.0 INFORMATION

5.1 The Tayside Meal Production Centre

The current service delivery model is outdated. It is overly labour-intensive and does

not exploit the opportunities now available through advances in food science over

recent years which have led to frozen fresh meals now being equal in quality to

freshly cooked meals. The cooking and freezing of meals in the TMPC model will

enhance food safety through the greater food safety controls achievable at a single

production unit as opposed to over 47 kitchens across Angus and Dundee.

5.2 Location of the Tayside Meals Production Centre

The conversion of the existing Tay Cuisine building to a fit for purpose Tayside Meals

Production Centre, rather than a new build, is the most cost-efficient method of

creating a base for the new service. It is estimated that a ‘new build’ Tayside Meals

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Production Centre would have increased the required funding four-fold compared to

the conversion of the existing Tay Cuisine.

5.3 Operating Model

Currently in Angus and Dundee, there are 47 production kitchens, where school meals for the school and any associated dining centres are prepared. There are 56 dining centres, where no food production takes place onsite and all food items arrive ready to eat in Champion Boxes, which are insulated boxes for transporting individual meals, or multi portion transportation boxes.

5.3.1 Existing production kitchens are staffed by skilled grade 5 Cooks, assisted by an assortment of grades 4, 3, 2 and 1 Assistant Cooks and Catering Assistants, dependent on the make-up of the kitchen production and meal numbers. The TMPC will only employ cooks of the highest calibre at Tay Cuisine to standardise excellence in the production of meals. However, this operating model will not require any skilled cooks outwith the TMPC.

5.3.2 In the proposed TMPC model, there will be a mixture of four different types of school

meal units: 1. Distribution Hub – These are units with sufficient capacity to store and

regenerate meals for onsite service and despatch to Mini-hubs and Dining Centres. They will operate in the same way as the on-site hubs, the only difference is that these units will regenerate food from the TMPC for delivery to Mini-hubs/Dining Centres.

2. On-Site Hub – These are units with sufficient capacity for storage and

regeneration of meals for their own site only. They will receive frozen elements of the meal from the TMPC which are regenerated and supplemented by additional items delivered direct from suppliers which will be stored and prepared onsite ready for service.

3. Mini-hub – They will receive pre-heated elements of the meal from their

Distribution Hub. These will be supplemented by deliveries direct from suppliers which will be stored and prepared onsite ready for service.

4. Dining Centre – These will be fully reliant on their Distribution Hub for all

elements of the school meal which will be delivered from their Distribution Hub ready for service.

5.4 Early Learning and Childcare (ELC) – Increased Provision

There is an additional unprecedented challenge to the school meals service presented by the Scottish Government’s requirement for Councils to increase ELC provision from 600 hours of funded early learning and childcare per year to 1,140 hours per year by August 2020. This is anticipated to result in an estimated additional 800,00 meals per annum being required across Angus and Dundee. This makes the TMPC model essential as it is highly unlikely that either Council would be able to deliver the additional ELC meals without a cook-freeze facility.

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5.5 Tayside Meals Production Centre - Non-Financial Benefits

There is a plethora of research to evidence a general trend within the catering industry (including the school and community meals sectors) towards a cook-freeze delivery model as the preferred solution to current and anticipated financial pressures. High quality primary school and community meals services would be future-proofed with the TMPC model whereas any other options would not have achieved the required cost-efficiencies and may have led to a cost-driven reduction in quality and/or choice.

5.6 Tayside Meals Production Centre – Risks The main risk associated with the introduction of the TMPC model is that there could be a reduction in school meal uptake due to a misperception that frozen food is inferior to fresh food. The experience of other local authority providers who have introduced a similar model to the TMPC is that the impact on meal uptake has been negligible. Those organisations attribute this to the development and implementation of a communication programme which dispelled concerns about frozen meals prior to implementing the new service. Tayside Contracts will, of course, seek to emulate this successful approach to ‘winning the hearts and minds’ of customers and potential customers and a substantial number of ‘taste tests’ carried out to date have shown how indiscernible any difference is between fresh and frozen meals.

5.7 Workforce Implications Appendix 2 illustrates the combined impact of the introduction of the ELC meals service and the TMPC model on Tayside Contracts’ workforce.

5.7.1 Whilst the substantial increase in meal demand through the ELC initiative combined

with the introduction of the TMPC model will result in a net increase of 38 Tayside Contracts posts, this model does remove the need for skilled catering employees outwith the TMPC.

5.7.2 Tayside Contracts has consulted with the Trade Unions and the potentially affected

employees to reassure them that the implementation of the TMPC model will not result in any existing employees being out of a job and that there is a high degree of confidence that no employees will experience detriment of any kind (e.g. reduction in grade, hours, etc) following the introduction of the TMPC model. Tayside Contracts will achieve this through natural wastage, promotion to positions in the new structure or to promoted posts in secondary schools, early retirement/voluntary redundancy, etc. Tayside Contracts is also of the view that the implementation of the TMPC and the associated modernisation of the service, cost-efficiencies and capacity for service expansion affords Tayside Contracts’ catering workforce in Angus and Dundee greater job security than the existing service delivery model.

5.8 Provision of the School and ELC Meals Service in Perth and Kinross Council The additional estimated 400,000 ELC meals in the Perth and Kinross Council area will be provided by existing production and distribution methods. This will prove challenging, particularly the requirement to recruit 41 new catering employees at one time in an area of relatively low unemployment.

6.0 EQUALITIES ASSESSMENT

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6.1 The issues considered within this report have, as required by legislation, been the

subject of consideration from an equalities perspective and the outcome is neutral. 7.0 CONSULTATIONS 7.1 The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report.

8.0 BACKGROUND PAPERS 8.1 Report to Angus Council’s Policy and Resources Committee, Report No 346/19 8.2 Report to Dundee City Council’s Policy & Resources Committee, Report No: 48-2019 8.3 Report to Perth and Kinross Council, Report No. 19/278

Iain Waddell Managing Director

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http://www.angus.gov.uk/sites/angus-cms/files/2019-10/346.pdf

http://dundeecity.gov.uk/reports/reports/48-2019.pdf

https://perth-and-kinross.cmis.uk.com/perth-and-kinross/Document.ashx?czJKcaeAi5tUFL1DTL2UE4zNRBcoShgo=QuULATvImExb3M9kut2mtM6H4aAR6Mcg8rMNXx92UB%2fQFoopxt6mwQ%3d%3d&rUzwRPf%2bZ3zd4E7Ikn8Lyw%3d%3d=pwRE6AGJFLDNlh225F5QMaQWCtPHwdhUfCZ%2fLUQzgA2uL5jNRG4jdQ%3d%3d&mCTIbCubSFfXsDGW9IXnlg%3d%3d=hFflUdN3100%3d&kCx1AnS9%2fpWZQ40DXFvdEw%3d%3d=hFflUdN3100%3d&uJovDxwdjMPoYv%2bAJvYtyA%3d%3d=ctNJFf55vVA%3d&FgPlIEJYlotS%2bYGoBi5olA%3d%3d=NHdURQburHA%3d&d9Qjj0ag1Pd993jsyOJqFvmyB7X0CSQK=ctNJFf55vVA%3d&WGewmoAfeNR9xqBux0r1Q8Za60lavYmz=ctNJFf55vVA%3d&WGewmoAfeNQ16B2MHuCpMRKZMwaG1PaO=ctNJFf55vVA%3d

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Appendix 1 - Financial Implications

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Appendix 2 – Labour Savings/Workforce Impact

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Documents

TAYSIDE CONTRACTS JOINT COMMITTEE · 2019-11-12 · There was submitted Report No JC22/2019 by the Managing Director complementing the External Auditor’s report to Members on the