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Press Release: Capita Out, Capita Out, Capita Out Out, Out!

Austerity, Local, News, Solidarity, UNISON Campaign

For immediate release: Capita Out, Capita Out, Capita Out Out, Out

Grant Thornton was commissioned by the London Borough of Barnet (the Council) to provide support in its response to the discovery of an alleged fraud.

On Friday 21 September 2018 Barnet Council published the Grant Thornton (GT) review https://www.barnet.gov.uk/citizen-home/council-and-democracy/finance-and-funding/Financial-controls.html

The GT review looked the two Capita contracts below.

Contract 1: The London Borough of Barnet and Capita (BRDS) Limited relating to the provision of Development and Regulatory Services signed 5th August 2013 “DRS”

Contract 2: New Support and Customer Services (NSCSO) Partnering Agreement between the London Borough of Barnet and Capita Business Services Limited. “CSG” contract commenced September 1st 2013.

The combined worth of both contracts over a 10 year period £424 million.

GT review reported:

“The individual is believed to have committed a fraud to a detected value of £2,063,972 by directing CPO payments to personal bank accounts.”

“Our view of both contracts has identified a number of significant weaknesses which may have resulted in contractual breaches. We have identified and reported what we believe are fundamental weaknesses in budgetary control and financial accounting.”

“We note both the DRS contract and the CSG contract detail consequences for the Service Provider of Persistent Breach”.

“Lack of effective review of controls over financial ledgers.”

“The monthly and annual budgetary control process provided by CSG Finance for capital projects in Re lack sufficient rigour to challenge unusual transactions and journal entries.”

“Significant financial control weaknesses”

“Poor accounting controls

“Weakened scrutiny over regeneration scheme KPIs”

https://www.barnet.gov.uk/citizen-home/council-and-democracy/finance-and-funding/Financial-controls.html

The GT review goes on to develop five broad themes and referred as control ‘Pillars’. GT had this to say about their ‘Five Pillars’

“In our view, if any one of these controls Pillars was functioning effectively at any point during the period (July 2016 to December 2017) on question it should not have bene possible for the individual to perpetrate the fraud…”

John McDonnell Shadow Chancellor said: “The Grant Thornton (GT) review of the two Capita contracts in Barnet provides yet more evidence of the folly of privatisation of public services. When I read “significant financial control weaknesses…“poor accounting controls” in the GT review it summed up what I have been saying about the current Tory government. They have failed our economy by rewarding their friends in big business, leaving our communities and public services to suffer at the hands their brutal austerity policies. I want to send a personal message of solidarity from the Labour Party Conference to Barnet UNISON and the residents who have fought side by side against a right wing mass outsourcing ideology. I fully support your campaign to #KickOutCapita from Barnet and bring services back in-house.”

Professor Dexter Whitfield who recently published a joint review entitled “’Future Shape’ ‘easyCouncil‘, ‘One Barnet’= Failure” with Barnet UNISON on both Capita contracts had this to say: 

“The Grant Thornton audit reveals very serious flaws and inadequate operational practice in both the Capita regeneration and back office services contracts. The fact that it took a fraud case to reveal the full nature and scope of these flaws is a damming indictment of Capita and Barnet Councils contract management and monitoring. Furthermore, implementation of the remedial action plan may address the current inadequacies but gives little reassurance that there are no other serious flaws that remain to be exposed. The audit provides further significant evidence for the Council’s review of both contracts and a decision to terminate the Capita contracts and return to in-house provision as a matter of urgency.”

John Burgess, Barnet UNISON Branch Secretary:

“I am shocked but not surprised at the content of the GT review of both Capita contracts. Barnet UNISON predicted that service quality would suffer once the services were privatised however there is little comfort in saying “we told you so” for the hundreds of local jobs in Barnet that were lost as a direct result of Capita winning the contracts. What is surprising, is that it took a fraud, to deliver the forensic scrutiny we have long demanded. Over the past five years frontline in-house services have endured vicious cuts whilst the two Capita contracts have drained badly needed public money, in order to satisfy the needs of Capita shareholders who put profit before quality services to residents. When Capita issued a dramatic profit warning on 31 January 2018, why did the Council not begin discussions to bring services back in-house. It seems clear from the GT review that even at an early stage there were serious endemic financial and budgetary issues. The Council is currently preparing a review of both Capita contracts. It is my view that in light of the GT review, it is untenable that the Council could even consider allowing Capita to run any of their services again. The relationship between the Council and Capita is in my opinion irreversibly broken, it’s over, and now is the time to end it, no expensive divorce bill, Barnet Councils services, and residents have tolerated enough of the mass privatisation ideology. Never mind #Brexit it’s time for #Capzit”.

Background

Notes to Editors.

Contact details: John Burgess Barnet UNISON on or 020 8359 2088 or email: john.burgess@barnetunison.org.uk

1.“’Future Shape’ ‘easyCouncil’, ‘One Barnet’ = Failure https://www.barnetunison.me.uk/wp/wp-content/uploads/2018/04/Barnet-UNISON-Capita-report-2018.pdf

2. External Auditors explains Capita Pensions failure

https://www.barnetunison.me.uk/wp/2018/07/18/external-auditors-explains-capita-pensions-failure/

3. How can Barnet Council even think of allowing Capita to run our IT services after this?

https://www.barnetunison.me.uk/wp/2018/07/16/how-can-barnet-council-even-think-of-allowing-capita-to-run-our-it-services-after-this/

4. “Terminate Capita Contracts and Redesign the Council”

https://www.barnetunison.me.uk/wp/2018/07/16/6234/

5. Is this the end of Capita in Barnet – Grant Thornton’s report is a devastating critique of Capita’s dismal performance.

http://reasonablenewbarnet.blogspot.com/2018/09/is-this-end-of-capita-in-barnet-grant.html

6. Damning report slams Capita and financial management at Barnet Council

http://barneteye.blogspot.com/2018/09/damning-report-slams-capita-and.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+99IsTheBarnetEye+%2899%25+is++…….++The+Barnet+Eye%29

7. Project Rose: the devastating report Barnet Tories didn’t want you to read

http://wwwbrokenbarnet.blogspot.com/2018/09/project-rose-devastating-report-barnet.html

IMPORTANT: Update for all Capita Barnet UNISON members

Austerity, Local, News, UNISON Campaign

Following discussions with the Council as to the process I can confirm the following information.

  1. Staff consultation to commence end of September
  2. Resident consultation to commence end of September
  3. Full business case to be submitted to a Council committee in December 2018.

What are the consulting on?

Barnet Council is now working up a full business case which will look at bring all services back in-house.

The Full business case will address the following options:

  1. Keep all services with Capita
  2. Bring some services back from both contracts with Capita
  3. Bring all services back from Capita

Barnet UNISON is campaigning on behalf of all of our members for Option 3.

Barnet UNISON is holding a number of branch meetings across Barnet house and NLBP. This is opportunity for Capita Barnet UNISON members to seek advice and ask questions.

Wednesday 12 September 12.30pm Committee Room 1, Barnet House

Friday 14 September 1pm Central room, Building 4, NLBP

Thursday 20 September 12.30pm Room G2, Building 2, NLBP

Friday 21 September 12.30pm Committee room 1, Barnet House

Tuesday 25 September 1pm Central room, Building 4, NLBP

Thursday 27 September 12.30pm Committee room 2, Barnet House

If you have any questions or need to speak to someone please contact the Barnet UNISON office on 0208 359 2088 or email contactus@barnetunison.org.uk

John Burgess

Branch Secretary

Barnet UNISON

 

 

“Both #Capita contracts are now on the menu”

Austerity, Local, News, Report, Solidarity

Attention: All Barnet UNISON Capita members

On Thursday 19 July 2018 Barnet Council Policy and Resources Committee agreed that Options 2 and 3 will be tested in a full business case. This mean all staff working on both Capita contracts are now included in the options.

The full business case will be presented to a committee in the Autumn.

In the meantime Barnet UNISON will be hosting meetings in Barnet House and NLBP for our members in September 2018.

However, if you need some advice or a meeting with a Barnet UNISON rep please contact the office on 0208 359 2088 or email contactus@barnetunison.org.uk

 

 

 

How can Barnet Council even think of allowing Capita to run our IT services after this?

Austerity, Local, News, Report

“The council went live with a new adult social care case management system (Mosaic) in April 2017. The implementation has involved significant issues which have critically affected the system’s performance.

Improvements have been made to the system since go-live but there are still significant issues. These have an impact on financial monitoring, performance reporting and operational effectiveness, including the ability to efficiently bill clients and pay invoices.

Mitigations are in place to manage the risks and issues.

Resolving these problems has had both operational and commercial consequences. It is proposed that an audit lessons learned exercise is now undertaken and the findings are reported to Audit Committee. The commercial teams of the council and Capita have agreed to the principle that the most effective way to deliver a fit for purpose system is for the council to engage with an alternative provider to undertake the rest of the required implementation work. This paper seeks authorisation to procure a new delivery partner to complete the delivery of a fit for purpose case management system for adult social care in Barnet, and the allocation of a capital budget to enable the procurement to commence, whilst the process to agree commercial liability with Capita concludes.”

“That the Policy and Resources Committee approves a procurement exercise to the

value of up to £3m.”

Read on

“If the Committee approves the recommendations in this paper, the following

activity will be undertaken to implement the decision:

A written agreement between Capita and the council will be drawn up to agree how the council and Capita will engage with a new third-party provider to successfully deliver the Mosaic system implementation, while the Capita team withdraw from the delivery of the programme;

A specification will be finalised and a procurement will be undertaken to award a contract to a new provider; and

The activity which will follow will be mobilisation of a new third-party provider and a period of handover between Capita and new third-party provider.”

Serious questions must be asked for example

“Who pays for the procurement and the new contract and wasted officer hours securing a new service provider?

“How can Barnet Council continue to support Option 2 which seeks to keep Capita delivering IT services?

Read full report of the failure here http://barnet.moderngov.co.uk/documents/s47255/Case%20Management%20System.pdf

 

 

 

“Terminate Capita Contracts and Redesign the Council”

Austerity, Local, News, Report, UNISON Campaign

Barnet UNISON Report to Barnet Council Policy and Resources Committee, Thursday 19 July 2018.

“Terminate Capita Contracts and Redesign the Council”

Redesign the Council

We urge the Council to radically redesign the way services and functions are carried out which should include:

1. Integrated services

Abolish commissioning and replace it with the integration of client and provider functions to work in combined teams. Improved frontline intelligence and skills will improve the planning and delivery of services. The return of CSG back office and Regeneration services in-house, together with the Housing Service and Your Choice Barnet as a result of the abolition of the arms-length The Barnet Group, provides an opportunity to create genuine coordinated and integrated services and functions. This will also provide the potential to fundamentally improve the integration of services and capability of the Council to meet residents’ needs and improve the local economy.

2. Rebuild the council’s in-house capability and capacity

The Council urgently needs to refocus on rebuilding in-house capability and capacity combined with a drastic reduction in use of consultants and agency staff, both of which are very costly and lead to a spiralling loss of capability. A commitment to public provision, training and career development will be vital in attracting staff. The entirely predictable consequences of the mass outsourcing strategy are reflected in the £24m cost of management consultants and One Barnet programme costs and the £20m spent in 2016-17 alone on interim and agency staff.

3. Service planning with staff and service user participation

A new transformation strategy should be centred on Public Service innovation and improvement Plans, prepared with community and staff involvement and reviewed every four years. The Plans will contribute to the design and digitisation of council services to meet the needs and aspirations of Barnet residents and the local economy.  They will ensure that services are effective and efficient and cost a tiny fraction of the budget spent on consultants and the One Barnet programme.

4. Early development and intervention

Rigorous, comprehensive and consistent monitoring and scrutiny of services will not only directly contribute to innovation and improvement, but will also increase the effectiveness and efficiency of service provision. It has an important role in identifying situations where services and users require early support which prevents

longer term negative consequences and costs.

5. Value inputs, processes, outputs and outcomes

All four are an integral part of the quality of public services and thus must be taken into account in policy and decision making. Furthermore they are an important part of determining the impact of Council policies on the local economy. 

6. Social, economic, equality and environmental impact assessment

Austerity policies have imposed severe financial constraints on local authorities which have reinforced the dominance of ‘cost savings’ and on procurement, competition and market forces. There is significant evidence that savings are rarely achieved when a full public audit is undertaken. Furthermore, ignoring or marginalising the social, economic, equality and environmental impacts of public policies increases inequalities, poverty and imposes larger longer-term costs. It is essential that public policy decisions in Barnet are subject to a full impact assessment that is publicly available at the start of public participation.

7. Improved democratic accountability, participation and transparency

The above proposals require more open accountable and participative democratic processes not just to evidence ‘community consultation’ but to demonstrate that views and proposals have been fully taken into account and any negative impacts mitigated.

8. Joint working with other public sector organisations

Joint working and, in some cases, pooling of budgets is vital where Council services are part of a wider and more comprehensive system such as regeneration and social care.

View full report here Terminate Capita Redesign Council

Barnet Council “Bring ‘em back, all of them!” #Capita

Austerity, Local, News, Solidarity

Press Release:  29 June 2018.

Today Barnet Council have published a financial report detailing three options for the two #Capita contracts in Barnet

http://barnet.moderngov.co.uk/documents/s47263/Capita%20Realignment.pdf

The options are as follows:

  1. Maintain the status quo in relation to the CSG and DRS contracts;
  2. Re-shape the contracts to better align service delivery to the council and Capita’s strengths and priorities, within the context of the existing contractual structure; and
  3. Bring the partnership to an end, and either bring services back in house or re-procure them.

The senior officers preferred option is Option 2 the Council.

They have identified the following services to be brought back into Council control

CSG

  • Finance and Accounting (excluding transactional services provided from the Darlington shared service centre)
  • Estates (Property Services, Building Services and Facilities Management)
  • Strategic HR
  • Safety, Health and Welfare
  • Insight
  • Social Care Direct

Re

  • Regeneration Commissioning (including commissioning the Brent Cross programme)
  • Highways
  • Economic Skills and Development
  • Cemetery and Crematorium
  • Strategic Planning

“I could say we, told you so, and we did. However the Council is in a financially critical situation and now is not the time to for rhetoric. it is time to start rebuilding our Council. I welcome the report going to Policy and Resources Committee on Thursday 19 July 2018. However, Barnet UNISON will be supporting option 3 with qualifications. We support bringing the partnership to an end, and beginning the process of bringing services back in house. It is simply not feasible to contain to peddle the Commissioning Council model. Pragmatism driven by the financial crisis has to mean that the Council needs to include in their business case a major restructuring of senior management across the Council including the Barnet Group. The Commissioning restructure 2012 is not fit for purpose. The Council need to look at how services best fit including those within the Barnet Group. There must not be a silo approach to insourcing. John Burgess, Branch Secretary Barnet UNISON

Background

  1. Two Capita contracts with Barnet Council are:

Customer and Support Group (CSG)

https://www.barnet.gov.uk/citizen-home/council-and-democracy/one-barnet-transformation-programme/customer-and-support-group-csg.html

  1. Regional Enterprise Ltd (Re)

https://www.barnet.gov.uk/citizen-home/council-and-democracy/one-barnet-transformation-programme/regional-enterprise-ltd-re.html

Footnote: On 26 June 2017 Capita share price was 705.50 now six months later the share price closed today at 202.09 which represents a 72% drop in their share price over a six month period.

On Wednesday 31 January, 2018 the Capita share price opened up at 347 and closed at 182.50 which represents a 47.53% fall in share price.

Links.

Damning report into EasyCouncil, Outsourcing including forward by John McDonnell

https://www.barnetunison.me.uk/wp/wp-content/uploads/2018/04/Barnet-UNISON-Capita-report-2018.pdf

Below are three short video messages from Dexter Whitfield on his report.

Dexter Whitfield on campaigning against outsourcing

https://youtu.be/zDt8VKKQ-Vs

Dexter Whitfield on outsourcing failures

https://youtu.be/IiD17Pt7OwY

Dexter Whitfield on true costs of Barnet easyCouncil

https://youtu.be/V0SytYCj1HA

 

 

UNISON reps across the UK call on public bodies to end contracts with Capita

Austerity, News, Solidarity, UNISON Campaign

We the undersigned call on all public bodies to end contracts with Capita and begin plans to return services in-house.
FACTS reported in the last week from various media outlets
• Capita employs 70,000 staff
• Capita reported a £513.7m pre-tax loss for 2017
• Capita asking investors for £701m in a rights issue that it will use to fund restructuring and toward paying down debts.
• Capita flogs Asset Services division for £888m
• Capita has seen the value of shares collapse from £13 a share to 160p in the past three years.
• Capita confirmed a fully underwritten £701m rights issue at 70p per share. Some £150m will be used to hack overheads with the cost-cutting programme forecast to yield savings of £175m per annum from the end of 2020.
• The London Stock Exchange-listed organ revealed that sales for the calendar year fell 4.3 per cent to £4.2bn, and it made a loss from operations of £420m. A series of write-offs and the cost of disposals meant losses sunk further.
 
In light of the above headlines and the collapse of Carillion, we believe it is in the public interest and public finance that all public bodies with contracts with Capita act now to bring those services into public ownership.
 
Signed
John Burgess Barnet UNISON rep
Helen Davies Barnet UNISON rep and NEC rep
Chris Jobson Barnet UNISON rep
Liz James Barnet UNISON rep
Patrick Hunter Barnet UNISON rep
Hugh Jordan Barnet UNISON rep
Sandy Nicoll, HE General Seat
James Robinson – deputy secretary of Knowsley unison
Liz Wheatley Camden UNISON Branch Secretary
Alex Tarry London Met UNISON Branch Secretary
Polly Smith Nec (pc) Local government service group Unison rep
Gina Stone Unison, UCLH Branch Secretary
Theresa Rollinson, Unison Doncaster and Bassetlaw, HSGE (pc )
Kath Owen NEC, HE women’s seat.
Stephen Smellie NEC Scotland
Paul Couchman. Branch Secretary, Surrey County LG
Billie Sarah Reynolds Co Deputy Convenor SE Region UNISON LG
George Binette, former Camden UNISON Branch Secretary, Trade Union co-ordinator, Hackney North & Stoke Newington CLP (personal capacity).
Naomi Junnor Steward and vice convenor Fieldwork stewards, Glasgow City Branch
Florence Hill retired Unison member Bolton
Luisete Bento Batista NEC Manchester
Tony Wilson UNISON NEC North West.
Helen Astley, Chair of the Herefordshire Local Government UNISON Branch, LGSGE member – West Midlands Region and TULO – Hereford and South Herefordshire CLP.
Vicky Perrin Unison NEC Yorkshire & Humberside
Angela Ruth Waller Local Government Service Group Executive Yorkshire and Humberside Female Seat (pc)
Gem Dean Gemma dean, branch secretary Herefordshire health unison branch
Andrew Berry, UNISON National Labour Link Committee, London Rep.
Jane Doolan NEC LG seat , SGE and Branch Secretary Islington LG Branch
Berny Parkes: Co-Chair Dorset County Branch Unison; Secretary South Dorset CLP (PC)
Arthur Nicoll Comms Officer, Dundee City Unison and Scottish LG Committee.
John Walker, Equalities Officer, Herefordshire Health Unison
Jim McFarlane, Branch Secretary Dundee City UNISON and NEC member (pc)
Sean Fox NEC Greater London &Haringey UNISON Joint Branch Secretary
Declan Clune Secretary Southampton and South West Hampshire Trades Union
Paul Rafferty, Chair, UNISON AQA Branch (pc).
Janet Bryan UNISON NEC
Rose Brown UNISON NEC
Dan Hoggan Greenwich Unite Local Government Branch
Roger Lewis Please add Roger Lewis, assistant branch secretary, Lambeth unison, PC
Paul Gilroy UNISON NEC
Karen Reissmann UNISON NEC
Jordan Rivera SGE candidate Health Greater London
Janet Maiden SGE Health
Phoebe Watkins Camden Branch Co Chair
Lorna Solomon UNISON Homerton Hospital Branch Secretary
John McLoughlin UNISON SGE rep
Tony Phillips UNISON Branch Secretary LFEPA
Jon Woods UNISON SGE
Glen Williams, Branch Secretary, Sefton UNISON, Local Government.
Shazziah Rock UNISON Sandwell General Branch
David Hughes Local Government SGE
Sarah Littlewood Deputy Branch Secretary Hull LG Branch.
Lisa Dempster Deputy chair Knowsley Branch
Steve Kearsley Unison Rep Halton BC Branch.
Sarah Pickett Labour Link Officer University of Brighton Branch.
Dave Anderson, former Hampshire LG UNISON
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