Housing Repairs ad Maintenance: Follow-up (R.47/2019) - Executive response with comments of the Public Accounts Committee [R.47/2019 Res.]

STATES OF JERSEY

r

HOUSING REPAIRS AND MAINTENANCE: FOLLOW-UP (R.47/2019) – EXECUTIVE RESPONSE WITH COMMENTS OF THE PUBLIC ACCOUNTS COMMITTEE

Presented to the States on 25th June 2019 by the Public Accounts Committee

STATES GREFFE

2019  R.47 Res.

FOREWORD

In  accordance  with  paragraphs 64–66  of  P.56/2018,  the  Code  of  Practice for Engagement between Scrutiny Panels and the Public Accounts Committee' and the Executive' (February 2018), the Public Accounts Committee presents the Executive Response  to  the  Comptroller  and  Auditor  General's  ("C&AG")  Report  entitled Housing Repairs and Maintenance: Follow-up (R.47/2019, presented to the States on 25th April 2019). The Executive Response and the following comments made by the PAC  also  reference  the  C&AG's  original  Report  entitled  Housing  Repairs  and Maintenance (R.9/2015, presented to the States on 5th February 2015).

Comments

1. The Public Accounts Committee welcomes the comprehensive response to the C&AG's follow-up report and is pleased to see that the Executive team accepts the C&AG's recommendations in full. The C&AG made few recommendations further to her original report of 2015, because Andium Homes had implemented most of the agreed recommendations. The Committee was pleased to see the progress made. The action plan set out by the Executive is short, but sets out what the Committee considers to be realistic timescales on implementing the further changes  necessary,  including  the  way  in  which  the  Director  of  Commercial Services and the Head of Estates procure and manage (small works) contractors and technical consultants.
2. The Public Accounts Committee is holding a public hearing with the Director General of Growth, Housing and Environment and the Acting Director of Estates, Jersey  Property  Holdings,  on  15th  July 2019.  In  the light  of  this  Executive Response, it will be asking, amongst other things, what similar positive measures are being taken to repair and maintain the wider portfolio of States' property assets.

Senator S.C. Ferguson

Chairman, Public Accounts Committee

Page - 2

R.47/2019 Res.

Growth, Housing and Environment response to Office of the Comptroller and Auditor General

Housing Repairs and Maintenance: Follow-up 25th April 2019

June 2019

Contents

1. Introduction .......................................................................................................... 3
2. Findings in the report ........................................................................................... 3

1. What the C&AG review set out to do ..................................................................................... 3
2. What the review found ........................................................................................................... 3

3. Actions undertaken to address the findings ......................................................... 3

4. Conclusion ........................................................................................................... 4

1. Introduction

This report seeks to address the concerns raised by the Comptroller and Auditor General (C&AG) in her report entitled Housing Repairs and Maintenance: Follow-up' (R.47/2019 published on 25th April 2019 (the Report)).

The Growth, Housing and Environment (GHE) Department fully accepts the C&AG's findings and this report seeks to outline the steps being taken to address the recommendation in the Report.

2. Findings in the report

1. What the C&AG review set out to do The objectives of the review are to evaluate:

• the progress Andium Homes has made in implementing agreed recommendations;
• the extent to which the recommendations as implemented have addressed the improvement areas identified in the report; and
• the adequacy of plans for the implementation of any outstanding recommendations.

2. What the review found

The Report was largely positive in nature and recognised the progress made by the States (Government of Jersey (GoJ)) in implementing the wider recommendation on procurement.

The Report made one recommendation for the GoJ:

R1 Develop and implement a revised commercial framework that supports improved strategic supplier relationship management.

3. Actions undertaken to address the findings

The timing of this follow-up report coincides with the development of the Property Holdings Maintenance Business Review (the Review) which examines the procurement and supplier management capabilities of the department. The Review will incorporate the findings of the Report and address the issues raised within and is due in Q3 of 2019.

Since completion of the C&AG's review, funding has been allocated for the procurement of resource to deliver the GoJ-wide framework of approved contractors and technical consultants. The procurement of the resource is currently underway.

Work is currently underway to determine scope the procurement exercise and design the approach to ensure that the frameworks address the needs of the GoJ and incorporates the findings of the Report.

The frameworks are being designed to simply and standardise procurement processes and will minimise the time taken for procurement while ensuring value for money and compliance with the relevant Financial Direction is achieved.

The existing supplier and asset management software (Concerto) will be used to record and share management information to relevant stakeholders, overseen by the Property Holdings section of GHE.

The newly established Commercial Services department will support GHE in the design and implementation of the frameworks and oversee the strategic supplier relationship management approach to ensure that it is effective and relevant to the needs of the GoJ and supply chain.

4. Conclusion

This follow-up report has given us the opportunity to provide an update on the work that has been progressing since April and demonstrates that we are responding to the recommendation made.

The approach outlined in this report will change the way the department procures and manages contractors and technical consultants in the small works and maintenance sphere within the GoJ and foster a more strategic relationship with supply chain partners in the future.

Action Plan

Recommendations not accepted: None.