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Auditor identifies ‘value for money risk’ in Welsh councils’ digital strategies

16/08/24

Mark Say Managing Editor

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Adrian Crompton
Adrian Crompton
Image source: Audit Wales

Local authorities in Wales need to put value for money and sustainable development at the heart of their digital strategies, the country’s government auditor has said.

Audit Wales has published a report on the issue, Digital by design? based on a strategy review, that identifies weaknesses in councils’ approaches to value for money in their digital investments.

But it also points to examples of good practice and identifies areas in which the authorities could improve.

The core findings of the report are that councils have, to varying extents, been thinking about how they could use digital technology to deliver better outcomes and achieve their strategic ambitions. Most are planning three to five years ahead, although some have set longer term ambitions, often aligned with other key strategies and plans.

But the auditor identifies consistent weaknesses in resourcing and monitoring, with gaps in the information available and inconsistencies in approach. It also says that councils do not appear to have an explicit focus on value for money or sustainable development within their digital strategies.

These are creating a risk that the efforts will not provide value for money.

Five improvements

The areas for improvement identified in the report involve: drawing on a broader evidence base; going further in working across internal boundaries and with external partners to obtain maximum value; doing more to identify the potential benefits and the resources required; making sure they can assess the impacts of digital strategies and projects; and taking a more systematic approach to learning in order to improve their work on digital.

It says these will apply to each council differently and should be considered in the context of their individual reports.

Among the examples of good practice highlighted by Audit Wales is Powys County Council, which has set out three business cases for funding. The first two allocated over £5.2 million for 2019-25 and third is to provide £3.9 million for the next four years. The report says this has come with an assessment of the risks and increases the likelihood that the council will deliver its intended outcomes.

Others are Neath Port Talbot Council, which has a digital strategy stating its intentions in five and 20 years and has set up a digital transformation board; and Swansea City Council, which is collaborating with a range of partners and has considered how its digital strategy can contribute to the Welsh Government’s Wellbeing of Future Generations Act’s national goals.

Need for evidence of rewards

Adrian Crompton, auditor general for Wales, said: “As highlighted in my report earlier this year, From firefighting to future proofing, we are not always seeing clear evidence that investment in new systems is reaping the intended rewards across public services.

“It will be important for councils to put value for money, for both now and the longer term, at the heart of their work on digital transformation. Involving citizens and working with others will be key to that. I encourage them to consider the lessons and practice examples highlighted in the report as they continue to develop their work in this area.”

 

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