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our performance targets and offering a
stable level of operational performance,
and we had completed our first major
review of the MPs’ Scheme of Business
Costs and Expenses. We had also put in
place key people management policies
and processes. In 2011-12 we focused
on developing the organisation in ways
which ensure its long-term sustainability.
To achieve this we prioritised two areas:
maximising value for money through a
systematic review across all areas of our
business, and developing our people.
IPSA Fact
IPSA has a clear strategy and a
detailed rolling four year Corporate
Plan, setting out our plans and
annual performance targets (KPIs).
This allows us to be held to account.
Value for money
37 In June 2011 our Estimate of the
resources we needed for 2011-12 was
approved by the Speaker’s Committee for
IPSA (SCIPSA). The part of the Estimate
needed to run IPSA was 10% lower than
the equivalent figure for 2010-11, meeting
our performance target of achieving
savings equating to 5% in each year of the
current Comprehensive Spending Review
(CSR). This saving reflected efficiencies
delivered towards the end of the previous
year, and anticipated further efficiencies
to be delivered in 2011-12.
38 To ensure we are able to maintain output
within a reduced funding envelope over
the CSR period, in summer 2011 we
established a ‘sustainability programme’.
We looked across all areas of our
business systematically and identified
a range of projects to reduce our
costs, while maintaining or improving
performance levels. These initiatives,
some of which are covered above,
included:
• implementing a risk-based approach
to validating claims;
• offering MPs the ability to purchase
their rail tickets online (which has
reduced our processing costs as well
as saving MPs time by removing the
need for them to seek reimbursement
for a cost they’ve already incurred);
• introducing three ‘self-service’ reports
for MPs about their business costs and
expenses, which allow them to access
data which they would otherwise need
to request from IPSA. A fourth report,
covering current and projected spend
on staffing, was introduced just after
the end of the reporting period.
• a range of initiatives to improve our
internal processing efficiency, eg
streamlining our batch processing
procedures and automating bank
reconciliation processes;
• retendering our cleaning contract and
preparing plans for sub-letting part of
our accommodation in 2012-13.
39 As part of this programme, we brought
forward plans to look at the savings which
outsourcing some parts of our business
might offer. The financial case was not
made, given the small size and tight
integration of IPSA operations. Reliance
on an external provider would also carry
considerable risk in a politically sensitive
operational function. We will review the
options again at the start of the next
Parliament.
40 In IPSA’s first year of operation when we
were setting up the organisation, staff
numbers averaged 83, before dropping
to 55 in 2011-12. As a result of the
efficiencies we made during 2011-12, and
which we will continue to make in 2012-
13 and beyond, we identified a number
of further staff savings which could be
IPSA Annual Report and Accounts 2011-2012