DVSA transitional board meeting minutes, 12 March 2014

Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
Attendees: Paul Satoor (Chair), Paul Coombs, Andy White, Phil Lloyd (For Operations), Paul
Smith (NED), Jane May (NED)
Apologies Alastair Peoples, Nick Carter, Kathy Gillatt
Ann Owen, Liz Osborne, Jo Warden
Guests
Secretary: Tom Middleton
0.
Introductions
0.1
The Chair welcomed the attendees and no declarations of conflict of interest or any other
business items were declared for this meeting.
The Board were informed that all decisions made at the meeting are subject to final
approval from the Accounting Officer. Which were subsequently approved.
0.2
1.
February ICB Update (DVSA)
1.1
The Board noted the ICB update as presented; in particular the Board noted the DVSA
Inspections proposal, which was approved by the ICB. The Board felt that despite the work
not fitting strategically it should be done to assist a sister Agency. However, the Board were
concerned we could be seen as the best option to provide the service by the Department in
the longer term and the new Policy Director needed to look at how the issue is managed.
Decision: The Board agreed to the proposal to continue to carry out the vehicle
inspections on behalf of DVLA; on the assumption that the length of the agreement
should be linked to the VIC scheme and a revised commercial arrangement was
required to ensure costs to the Agency are covered and linked to the payment of the
Driver Conduct work.
ACTION
Phil Lloyd (Policy)
August
TB14/03/01 To ensure the new Policy Director manages the issue of carrying out the DVLA
Inspection work and that a more longer term way forward is agreed with the Department
1.2
The ICB also endorsed a request that also required TB approval for the Investigative
Contract Re-Tender. The Board had concerns over the tender process which left a single
remaining bid, so asked for assurances to be provided. The Board also discussed the issue
of potential control weaknesses of investigation fraud cases.
Decision: The TB approved the awarding of the Investigative Contract to the
preferred bidder.
ACTION
TB14/03/02
1.3
1.4
Paul Coombs
1 April
To provide assurances over the tender process for the Investigative Contract re-let.
The Board also noted that the ICB approved the NGT Exception Report, which will be
provided to the April Board. The Board asked that the paper explains why things happened
and the impact on budgets.
The Board discussed the ICB proposal to govern the MEC changes through a project and
asked that a PID is submitted to the TB to agree a benefits realisation plan.
Decision: The TB approved the proposal of governing the MEC changes through a
project.
ACTION
TB14/03/03
Paul Satoor
To bring a PID for the MEC changes to the TB
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May
Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
1.5
1.6
2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Decision: In addition the Board agreed to the proposal that the SRO for all projects
should present the FBC to the Investment & Change Board.
The Board were informed that the spend approval request for Mobile Examiner IT was
rejected by the ICB and a decision has now been made to put greater governance around
the project and stop further activity until an FBC is created.
Mobile Compliance 2 FBC (DVSA)
The Mobile Compliance 2 Full Business Case was presented to the Board following
endorsement from the ICB.
The Board were informed of the business imperative of the tool, which allows front-line
enforcement activity to take place at the roadside and allows a range of other activities such
as HGV Levy and issuing fixed penalties, as the current system is out of date and out of
support.
The benefits of the new system are reduced running costs, modern IT software and
reduced encounter time which will improve vehicle targeting. The Board asked that benefits
are made more explicit through the use of KPI s to show the predicted level of improved
efficiencies where possible.
The Board also asked for changes to the document to describe how the risks are being
mitigated and the positives of using an agile process. In addition the dependency on the IT
Modernisation hosting platform project needed to be made explicit, although the Board
were assured that the software will be able to run on the existing platform in the short-term.
The Board asked for assurances over the finances and financial treatment in the Business
case and agreed there is a wider issue to address of ensuring the quality of finances in
project governance is improved.
Following concerns from the ICB that the optimism bias level of 20% seemed low the
project team re-evaluated the level following discussions with the supplier and felt it was
sufficient, especially as some of the software has already been built.
Decision: The Board approved the Mobile Compliance 2 FBC subject to the action
TB14/03/04 being carried out.
ACTION
Andy White
1 April
TB14/03/04 To carry out the following in respect of the MC2 FBC before going to the MSIAB
Risk mitigations being included
Clarity of the benefits to show the measurable KPI of what can be measured and what can't
Reword the agile process to include some positives about the process; such as managing to a
budget
Clarify the finances and financial assumptions in a meeting with Paul Smith & Kevin Davies
Ensuring the dependency of the IT Modernisation hosting platform is clear
Receive final approval from Alastair Peoples
ACTION
Andy White, Paul Coombs & Paul Satoor
6 May
TB14/03/05 To create a solution to the issue of ensuring the quality of finances in business
cases and project governance are improved.
3
3.1
MOT Modernisation Risk Mitigation (VOSA)
The Board discussed the risks set out in the paper to the MOT Modernisation project and
accepted the risks and agreed they should be added to the KBRR. Further work is now
required to understand the contractual and operational risks to the Agency.
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Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
ACTION
TB14/03/06
April
4
4.1
4.2
4.3
Andy White
1 April
To add the MOT Modernisation risks to the KBRR and update the TB of progress in
IT Sourcing FBC (DVSA)
The IT Sourcing Full Business Case was presented to the Board, which amalgamates the
separate DSA ICT Business Change and the VOSA Service Delivery Transformation OBC s
based on instruction from DfT Board Investment and Commercial Committee (BICC).
The Board was informed that additional new work resulting from the merger, such as unified
calendar/email, will be covered in additional Business Cases and any costs of the contract
included in the case that are higher than stated will need to get further Board approval.
The Board asked for the outcome of the Gateway review to be circulated, to amend the
wording of the NPV costs and provide briefing to assure the accounting officer and the MD
of the Motoring Services.
Decision: The Board approved the IT Sourcing FBC
ACTION
Andy White
1 April
TB14/03/15 To circulate the IT Sourcing Gateway review, to amend the FBC wording of the NPV
costs and provide briefing to assure the accounting officer and the MD of the Motoring Services.
5
5.1
5.2
5.3
5.4
5.5
5.6
Draft Budget 2014/15 (DSA)
The Board were provided with an update on the changes made since the previous meeting,
which included a reduction in income from the theory test, due to a higher fee level
reduction being implemented.
Efficiency savings were identified in the theory test contract (which has been passed back
though lower fees), IT and through vacant posts savings. The Board asked to check
whether any savings were realised last year, as they should only be accounted for once.
The Board agreed that any in-year test centre closures could lead to further savings and
there was contingency built in through a high level prediction of reduced income due to test
cancelations because of bad weather.
The Board were uncomfortable with having no corporate contingency built into the budget,
so asked for a 1% level to be included through reducing the forecast of bad weather days.
The Board also agreed to the proposal to repay loans during April 2014 and a longer term
plan will be created for managing the Agency s general fund going forward.
Decision: The Board approved the DSA budget and capital allocation for 2014/15
subject to a 1% contingency being built in.
The Board also agreed to the repayment of loans in April 2014 as set out in the
paper.
ACTION
TB14/03/07
Paul Coombs
1 April
Adjust the level of efficiency saving from ICT to better reflect a high confidence level
ACTION
TB14/03/08
Paul Coombs
To create a 1% contingency into the DSA budget,
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1 April
Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
6
Draft Budget 2014/15 (VOSA)
The Board were provided with an update on the changes made since the previous meeting
and noted the efficiency savings identified in IT, Estates, vacant posts savings and in the
car fleet costs.
6.2
The Board felt that if there was a low confidence of achieving the efficiency savings, it
would be better to state a lower amount with a higher confidence level.
6.3
The Board asked for the amount of contingency from the optimism bias removed from
projects to be provided.
6.4
NGT has now been recorded as its own Directorate, merger costs will be identified with the
scope defined through a PID and assurance was given that contingency has been built into
the VOSA and DSA Shared Service migration costs, although further costs could be
needed for the DVSA migration.
6.5
The Board felt that discipline is needed to manage to the budgets set and the contractor
costs needed to be closely controlled.
Decision: The Board approved the VOSA budget and capital allocation for 2014/15
6.1
ACTION
TB14/03/13
Paul Coombs
To provide the amount of optimism bias removed from VOSA projects
1 April
7 DVSA Key Business Risk Report (KBRR)
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
The Board were advised that good feedback had been received from the MD of the
Motoring Services at the Agency Risk Managers meeting and commented that he was
assured that management of the risks is happening.
The following risks were discussed by the Board:
KBR46 VOSA: Shared Services. No changes were received for this risk this month and the
score remains at a level for reporting to DfT.
CRR04 VOSA: Failure to have the right staff with the right skills to meet VOSA s business
needs. No changes were received for this risk this month and the score remains at a level
for reporting to DfT. Initial discussions suggest DSA do not have the same issues as VOSA.
KBR70b VOSA: Road User Levy. Text updated and considered risk exposure but no
change so still within tolerance for reporting to DfT. In the Risk Workshop it was confirmed
DfT know enforcement cameras will not be in place for start of April. The Risk Steward
noted this.
KBR67 VOSA Delivery of Modernised IT applications and later on C87 ICT DSA: Business
Change. New Risk Owner is conducting a Risk workshop to review their portfolio in the
current environment. No changes this month. Still above level for escalating to DfT.
KBR81 NGT Transition & Rollout
A new risk has been created which reflects NGTs
dependencies on other areas of the business which are impacted by equally important
changes such as Shared Services. The Board was content with the text and the risk
exposure is reflected accurately
KBR80 DSA: Inadequate BCP & DR. The risk bubbled up last month and has now been
incorporated in register as requested. The scoring leaves it at a level for reporting to DfT
this month.
KBR78 DSA: FCG5 Travel & Subsistence. The Risk Steward confirms this is being
managed at Directorate level and the Board agreed to retirement. The Risk Scrutiny panel
put forward the recommendation that, if not in place already, control measures be
considered for those who would rather not do the work than use the right process. The
Board asked that all Risk Scrutiny recommendations are discussed with Directors ahead of
Board meetings. The Board discussed links to a wider DfT policy due shortly. It was
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Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
7.10
7.11
7.12
7.13
7.14
7.15
confirmed that the follow-up audit would determine whether this remains at Directorate level
or comes back to the KBRR.
KBR75 DSA Government Procurement Card: The current and future controls in place are
now captured more fully and the risk exposure has been reassessed reducing the current
likelihood from high to low and forecast likelihood from medium to very low. The Board
agreed retirement to the Directorate register.
KBR74 Modernising Employment Contract: The risk owner has updated the controls in
place and amended the current and forecast impact from high and medium respectively to
very low. The Board agreed retirement to the Directorate register.
The Board noted that Risk Scrutiny Panel membership had been updated - In order to
better reflect the wider DVSA objectives.
The Board did not wish to cascade the MEC risk to Directorate level as it had already
agreed to initiate a related project.
Managed Motorway risk It was reported that Operations are currently working through an
issue related to the introduction of lower speed limits on stretches of the motorway by
Highways Agency. This has had a negative impact on our enforcement activity in some
locations where it has been implemented and there is a potentially a risk if Highways
spread this means of traffic management across further DVSA stopping sites. The Board
asked for a risk spotlight paper to be produced setting out the impacts and mitigation
options.
The Board debated this year s Risk Stewardship certificates for the two Agencies. It
requested that a new simplified template be designed for Directors to complete, which can
be used for both Agencies and give a more ready comparison for the Accounting Officer.
ACTION
Phil Lloyd (Policy)
1 April
TB14/03/14 To provide a risk spotlight paper setting out the Operational impact of the Managed
Motorways strategy and options to mitigate to be provided by the Scheme management
ACTION
Phil Lloyd (OCE)
1 April
TB14/03/09 To ensure the Risk Managers review the Stewardship Certificates template to
create a common light touch pro-forma
8
8.1
8.2
8.3
8.4
8.5
8.6
Staff Survey Update (DVSA)
The Board were updated on the progress on developing a corporate action plan, following a
series of workshops with managers to look at the results of the staff survey results, which
will also lead to local plans being developed.
The key areas of focus from the results involved leadership and managing change and
getting more effective communications to staff.
The Board felt that the Corporate Senior Leader Group should be chosen and made
separate from other senior managers.
The Board felt that there are good staff initiatives being used such as good egg awards
and that it was important that an effective whistle-blowing system is in place to help
challenge negative behaviour.
The Board agreed with the proposed plan but felt it was a series of tactical measures and
less time should be spent on diagnostic work, as action was needed before the next survey
comes around. It was felt that more focus is needed on lower grade level managers and
make it clear to them what they can and can t influence.
It was agreed that a separate paper was required to develop a longer-term strategic plan to
create a more positive culture in the Agency.
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Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
8.7
Decision: The Board agreed the Staff Survey action plan, which will be monitored at
the BPB, with a six month update to be provided to the TB. In addition a long term
strategic plan will also be developed.
9
ARC Update & Internal Audit Plan for 2014/15 (DSA & VOSA)
The Board noted the update from the February ARC.
The ARC endorsed the 2014/15 Internal audit action plan subject to minor changes being
carried out. The Board were updated on the actions since to look to match audit resource to
the level of risk and ensure that all audits look at compliance to the Macpherson
recommendations.
Assurance was given that the plan can be amended when a new Head of Internal Audit is
appointed shortly if required.
Decision: The Board agreed the Internal Audit Plan for 2014/15 and it was asked that
agreement is also received from Directors not in attendance.
9.1
9.2
9.3
9.4
ACTION
Phil Lloyd (OCE)
1 April
TB14/03/10 To ensure that the Internal Audit receive approval from all Directors for their
Directorates internal audit plan
10 Board Update Reports
VOSA BPB Update
10.1
10.2
The Board noted the BPB update as presented; and it was agreed that a OBC and PID will
be created for the merger project and following the usual governance process.
The Board raised concerns that the implementation of the test timing changes would be
delayed until 2014/15 and requested an update on the progress.
ACTION
TB14/03/11
Phil Lloyd (Policy)
1 April
To ensure that an update is provided on the test timing changes implementation
DSA BPB Update
10.3
The Board noted the BPB update as presented but raised concerns over the level of
absence reported. Assurances were provided that this is a key area of focus at the Board
with actions being put in place to reduce the level, which is thought to be a cultural problem
in the Agency.
DVSA February Operational Estates Steering Group (OESG) Update
10.4
The Board noted the update paper provided
DVSA Fees & Charges Steering Group
10.5
The Board approved the revised terms of reference for the Fees and Charges
Steering Group as presented.
11.
AOB
11.1
There were no AOB items at the Board.
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Transitional Board Minutes
Wednesday 12 March 2014
S1: 2nd Floor Conference Room
Berkeley House, Bristol, BS5 0DA
12.
Meeting Administration
12.1
The Board approved the Minutes of the 12 February Transitional Board as an accurate
record for publication.
The Transitional Board Action Sheet was updated. The Board noted the action update on
IVA strategy but requested further assurance that all POTOF future interest has ceased, so
requested the Scheme Manager attend the next meeting to provide assurance and to
explain the deployment of staff arrangements for the active sites.
12.2
ACTION
Phil Lloyd (Policy)
9 April
TB14/03/12 To ensure that the Testing Scheme Manager attends the April TB to provide
assurances over the cessation of progress over the future interest of POTOF s and explain the
staff deployment arrangements for the active sites
12.3
Board Agendas Forward Look The forward look agenda was reviewed and updated and
the next meeting is on 9 April 2014.
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