Managing the partnership (steering)
90 Steering mechanisms influence partners' allocation of resources for achieving objectives. These mechanisms have developed unevenly across LSPs. The LAA focus on performance has encouraged executive-level performance sub-groups to coordinate partners' activity. Finance sub-groups, to monitor financial information and influence resource allocation, however, are less common (Figure 10).
| Figure 10 LSPs are more likely to steer performance than resources But many LSPs are doing neither |
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Source: Audit Commission, 2008, survey |
91 LSPs without performance or finance sub-groups should review whether they have effective arrangements to steer performance and allocate resources across the partnership. Finance groups can develop rules to cover the use of area based grant (ABG) and performance reward grant (PRG) (Case study 13).
| Case study 13 LSP finance sub-groups should add value Leicestershire's LSP finance sub-group's strategy has five core principles: • cooperation in aligning, pooling, and efficient use of resources; • cooperation in ensuring that public services are delivered in the most cost-effective way (Leicestershire's LAA includes an efficiency target); • pooling or aligning area based spending (ABG and PRG); • planning service decommissioning with reasonable lead times; and • cooperation in medium-term financial planning. Source: Audit Commission, 2008 |