Cash Flow Analysis

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 Aspects of my work that could be changed and the resultant positive impact on cash flow

Arising from the above The aspects for discussion have broadly been identified as follows


• Staff Costs to do the Project Development Role

• Quasi- zero based budgeting � Moratorium

• Consultancy Costs

• Overheads

• Numerous and complex processes and requirements with regards the various funding streams

Staff Costs

As discussed earlier my role is agency based on a daily rate of £5.00 on costs incl.

This is the only agency role within the team and though it is NRF (Neighbourhood Renewal Fund) funded it is the only role that is not a permanent one or on a Hackney fixed term contract pay roll. On a personal basis this means more money in my pocket but from a business point this is not a prudent way to spend funds which have been allocated solely for crime and disorder reduction and ultimately social regeneration. The role is much needed within the Service Area and of course CST but at a cheaper cost. It is strongly suggested that the agency be dispensed with and the role made into a fixed term contract one like all the other specialist roles within the team. It is appreciated that project management is a new area of expertise within the Community Partnership division of which SCS and CST fall within, however since it is very pivotal to the delivery of strategically aligned projects a more cost effective arrangement needs to be made.

Most funds are allocated to projects with a typical two or three year duration. It follows therefore that there is a requirement for projects to be developed, evaluated and monitored if not anything, for the lifetime of the fund. The NRF Programme which funds the Project Development role and all the other specialist CST roles is a 5 year programme so there is in fact enough lee way to fund this role on a fixed term basis.


The overheads aspect of the costs of working can only be changed on a CST level in terms of ensuring that good practices take place, e.g.

• Making any personal phone calls as brief as possible (already practiced)

• Avoiding long business phone calls to mobiles whenever possible by arranging to call back on a land line whenever possible.

• Keeping lights switched off during the day unless absolutely necessary for use

• Switching off lights and equipment at the end of the day (already practiced)

• Security locking the main CST office door and windows at the close of business to guard against burglary especially computer equipment theft which is very rife within the borough. This will have a positive impact to ensure cash flow is limited to one-off capital costs for equipment to be replaced or upgraded as a result of depreciation or technology improvements and not duplicated costs as a result of theft.

• Introduction of the sending out of quarterly notices by the Project Development Manager if project budgets are likely to be exceeded for that quarter so that project leads are aware of the overall financial standing of the team and begin to embark on cost reduction strategies. A similar exercise should be done in respect to under spends to alert project leads early enough to enable “creative ideas” to be formulated on how to dispose of the projected surplus thereby avoiding under spend or at least reducing it to the barest minimum.

CST already saves on other overheads by hiring out our meeting rooms to other teams for a nominal fee which is kept as petty cash.

In terms of travel for conferences, workshops, seminars and training, the following good practices are already observed

• Using hotels offering competitive discounts to local authorities

• Advance booking for maximum discount on rail fares where possible.

• Monthly reports regarding project performance and spend against budget.

Consultancy Costs

Reference has already been made earlier on how the vast amounts spent on consultancy costs. Most of our consultants are on a retainer basis so whether they carry out jobs for our team or not we pay retainer fees. These fees are on top of the hourly rates we pay for specific jobs they carry out.

On the whole the tasks are around crime and disorder data analysis � scanning trends and patterns to make recommendations, mapping and information sharing. Crime is very high in Hackney and so it would be worth while investing in a full time Partnership Information (Crime) Analyst post. These are specialist roles and it should not be too difficult to have a bid approved by one of the funding streams. Full time salaries for these roles are highly competitive but with the huge amounts we pay to our consultants we could reduce this by at least 50% and still be at the top end of the market in terms of HR job grading. This would have a positive or favourable impact on our cash flow and we would have a more dedicated customised service.

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