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Independent Supplementary Review Guidance Note 1 November 2009
Introduction The Independent Supplementary Reviews (ISR) cover all Regional Development Agencies (RDAs) outside of London. It is a tool to help provide assurance to the Department for Business, Innovation and Skills on the performance of the RDAs in responding to key current challenges. It provides an opportunity to highlight areas where each RDA is performing strongly, as well as identifying areas where performance could be improved. Following completion of the assessment process, each RDA will produce an Improvement Plan, which will detail specific actions to help improve performance, with timescales for implementation. The review will be carried out by the National Audit Office (NAO) on behalf of Government. They will use a range of methods including interviews, focus groups and mini surveys in order to answer key questions (see below for key questions).
Background In 2006, the Agency took part in the Independent Performance Assessment (IPA). We received the highest possible score, “Performing Strongly”. IPA aimed to assess RDA performance across a range of activities. The Agency undertook a self-assessment which identified areas of strong performance and areas where we needed to change and embed continuous improvements into our work. As a result an improvement plan was created which has been updated annually. Delivering the improvement plan is one of our Corporate Objectives. ISR will allow us to again review the Agency’s progress and assess our performance in a number of key areas. The NWDA has been working with partners to respond to the effects of the recession. Key initiatives have included; providing effective business support to help companies weather the downturn and emerge stronger, investing in emerging sectors, providing clear leadership and jointly chairing the Joint Economic Commission (JEC), set up to help fight the Northwest’s corner during the current difficult economic climate. We have also implemented a number of improvement programmes. Our recent organisational review will ensure we have the right structures and skills to continue to deliver for the region and deliver the Regional Strategy when it is produced in 2010.
Difference between ISR and IPA ISR will be distinct from the IPA process as it will be tighter in scope. The NAO are not looking at achievement as part of the ISR process as this has been covered in the PwC national impact evaluation study which showed that between 2002-07 every £1 invested by the NWDA in the regional economy averaged a return of £5.20 in economic impact. The ISR review is intended to be a lighter touch assessment, with a more streamlined process and less administrative burden for RDAs. Given the differences in approach and scope, the assessments made as a result of ISR will not be directly comparable to those made during IPA.
Three key questions ISR has been developed around three key questions which will provide the framework through which the assessment team will gather and assess information to form judgements on the performance of the NWDA. The three key questions are: • How effectively has the RDA prioritised programmes and projects that offer high value added benefits for the region in the economic downturn and in preparation for the upturn? • How effectively are the RDAs implementing improvement plans? • How effectively had the RDA implemented improvements in performance management processes and procedures to reflect the lessons of evaluation?
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How will we be scored? Each key question will be answered by looking at performance in specific areas. These questions will be supported by a set of descriptors which outline what the NAO might expect to see at each level of performance. The assessment team will form a judgement on our performance based on the range of evidence presented. A full copy of the key questions and areas for review can be found on www.nwda.co.uk/ISR The levels of performance are: • • •
Adequate performance Good performance Strong performance
The NAO will reserve the right to judge performance as Inadequate if an RDA fails to meet the criteria set out for adequate performance.
How are we to be assessed?
• Creating a report The assessment team will create a draft report within two weeks of the on-site visit. The NWDA will be asked to check the report for factual accuracy and will have the opportunity to submit additional evidence to support any proposed changes. • Consistency and Moderation To ensure consistency across the RDAs, the report for each RDA will be examined by an independent consistency panel to check that evidence has been assessed and judgements reached the same way. • Creating an Improvement Plan An Improvement Plan will be written by the NWDA to help us drive continuous improvement in key areas.
Timetable The NWDA will be the first RDA to be assessed, other RDAs will follow and final reports will be published in May 2010.
Stage
Date
Activity
Planning
November 09
Evidence submitted to NAO and pre-meeting held
On site visit
November / December 09
NAO on site for one week
Creating a report
January 10
Draft report submitted to NWDA for review
Consistency and Moderation
April / May 2010 May 2010
Final Report Published
Creating an Improvement Plan
July 2010
Improvement plan produced
ISR can be split into five key stages: • Planning The NWDA will be providing a number of documents to the NAO These include: -
Corporate Plan RES Delivery Plan PwC Evaluation Report 2008/09 Annual Report State of the Region Report List of all investment decisions from April 08 - Sept 09 List of all completed evaluations from April 08 - Sept 09 Communications Strategy Performance Reports submitted to Board between April 08 - Sept 09 Improvement Plan Stakeholder Survey Appraisal guidance Support for Northwest Businesses publication Access to Finance publication
We will also work closely with the NAO during this stage to agree the focus of activities whilst they are on site. • On site visit A team of three auditors from the NAO will be on site to visit the NWDA for one week. The NAO team consists of Sue Heard, Stephen Kingston and Jennifer Bayliss. They will: talk to Board members, key partners and stakeholders; review files and observe meetings to assess performance against each key question. At the end of the on-site visit the assessment team will feed back emerging findings to the RDA.
Next steps The work doesn’t stop once the Improvement Plan has been created as the NWDA will then be working to implement the actions set out in the plan.
Further information If you have any queries, please speak to Bernice Law. Tel: 01925 400534 Email: Bernice.Law@nwda.co.uk www.nwda.co.uk