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Kick out Capita from Barnet Council now petition

Austerity, Local, News, Report, UNISON Campaign

Kick out Capita from Barnet Council now

https://you.38degrees.org.uk/petitions/kick-out-capita-from-barnet-council-now

 

Why is this important?

The recent successfully prosecuted fraud case where a Capita employee stole over £2million from Barnet Council underlines the urgent need for the Council to take back control of all of the former Council services from Capita.
https://www.bbc.co.uk/news/uk-england-london-45641513

Barnet Council commissioned Grant Thornton (GT) to undertake a major review to identify how such a large scale fraud had been able to take place. This project, called Project Rose, was given a budget of “up to” £500,000 and has been on-going ever since.

The review found:
• Lack of budgetary controls
• Not carrying out basic bank detail checks
• Inexperienced managers responsible for large amounts of money
• Lack of written financial procedures and checklists

Barnet Council agreed to pay Capita £252.54 million

But, Barnet Council have already paid Capita £352.41 million with FIVE more years to go!

Barnet Council is in financial crisis with a budget overspend of £10.3 million this financial year and a funding gap of £66.8 million over the next three years.

Frontline services such as street cleansing, waste and recycling, Libraries, social care are all facing more and more cuts that are already affecting Barnet residents.

Capita Plc are in their own financial crisis.

Their Share Price has dropped from £13 a share to under £1.50 a share in the space of the last two years.

On 11 December 2018, Barnet Council Policy and Resources Committee will decide on whether to end both contracts. We are campaigning that they VOTE to end both contracts and begin the urgent process of taking back control of those services.

End
Details of the Grant Thornton Review on Capita
https://www.barnet.gov.uk/citizen-home/council-and-democracy/finance-and-funding/Financial-controls.html

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

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

Damning report slams Capita and financial management at Barnet Council
http://barneteye.blogspot.com/2018/09/damning-report-slams-capita-and.html

 

Mr Reasonable on why residents need to #KickOutCapita from Barnet Council

Austerity, Local, Solidarity, UNISON Campaign

Mr Reasonable on why residents need to #KickOutCapita from Barnet Council

Come and listen to John Dix aka Mr Reasonable, explain the ramifications of the recent damning Grant Thornton audit review in language which is clear and easy to understand.

Meeting hosted by Barnet Alliance for Public Services (BAPS)

Tuesday 2nd October

6.30pm

Greek Cypriot Centre, 2 Britannia Rd, London N12 9RU

 Why attend the meeting ?

Mr Reasonable had this to say about the audit review:

“The Grant Thornton report highlights Capita’s repeated failure to get basic control systems right, allowing 62 fraudulent transactions to go undetected for 17 months. New systems to address this problem have now been put in place but the report paints a broader picture of institutionalised indifference, weak management and a lack of care. Barnet residents were forced to entrust critical functions of the council to Capita. Five years on, many residents believe that there is no longer any trust in Capita to deliver council services efficiently and securely. They must go.”

This is what John McDonnell Shadow Chancellor had to say about the audit review:

“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.”

You can read the four reviews yourself on the Barnet Council web site

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

Here is the Barnet UNISON Press release here

https://www.barnetunison.me.uk/wp/2018/09/25/press-release-capita-out-capita-out-capita-out-out-out/

 

 

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

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