6.1 Financial monitoring
The Agency's quarterly review process, reporting to the Management Board, continues to ensure that we operate efficiently under the 'net running costs' regime. It provides a rigorous means of measuring and reviewing progress on work priorities, performance targets and use of resources.

In financial terms the Agency reports to DTI on a resource accounting basis, and this year we operated resource budgets internally down to Business Unit level for the first time. A training programme was arranged to assist key staff with the transition, prior to the establishment of annual budgets; targeted training then continued during the year. We also carried out a review of internal reports, resulting in the development of a suite of reports designed to provide the necessary resource-based data.

We obtained the National Audit Office's agreement to apply more fully the principles of resource accounting to income, revising our policy so that major customers' licence fees are spread over the life of the licence rather than simply accounted for when payments are due. Payments from these 35 or so major customers constitute over 85% of our annual income. We continued to provide formal regular monitoring reports to DTI, including monthly cash forecasts in line with Treasury requirements.

Senior Agency staff, including Mike Goddard and Rolande Anderson, were among those meeting customers at this year's 'Joining In' roadshows around the country

6.2 Efficiency measures
The Agency continues to meet its efficiency target agreed with Ministers, with a provisional gain of 5% in 2002-03. The measurement of our efficiency involves detailed analysis of licensing volume, reflecting a variety of spectrum-priced products and covering licences for simple classes, assignments for classes that involve additional activity, and weighted income for licences awarded by competition.

The Agency intended to develop and enhance this measurement technique further, working with DTI's Operational Research Unit; we planned to incorporate weighting of base stations rather than income for public mobile operations, and the rollout of 3G and broadband. However, we decided to halt this work and allow Ofcom to consider how it would like to measure efficiency and demand for spectrum.

6.3 Strategy Management Information System (SMIS)
SMIS is the Agency's data warehouse, providing access to information for our decision-makers. It currently holds about 40 million rows of current and historic data, which can be retrieved quickly and easily to inform a wide range of management and strategy decisions.

SMIS is an adaptive and resilient information source, designed for easy querying; it allows us to use Agency data to examine, understand and monitor key processes as well as assessing the implications of policy and providing evidence on how we are meeting our licensing targets.

However, what sets SMIS apart from the other systems available is its ability to combine data from disparate sources, both internal and external, and to highlight data quality issues from the transaction systems.

6.4 Project management
We continue to work towards implementing the recommendations of the Office of Government Commerce's 'Successful IT: Modernising Government in Action' report.

During 2002-03 we continued to deliver in-house courses on the principles of the PRINCE2 (Projects in Controlled Environments) project management methodology for all our project managers, with further specialised training for all Senior Responsible Owners responsible for delivering benefits from projects. This training is designed to support wider Agency objectives, and is accompanied by written guidance. A series of project management masterclasses is in development, to allow staff involved in managing projects to develop their skills.

6.5 Risk management
We are committed to managing business risk effectively and implementing the Turnbull Report's recommendations fully. During 2002-03, Business Unit managers received training in risk management techniques; this aims to go beyond the existing processes whereby a review of risk registers for Business Units, Executives and the Agency as a whole is included in the planning and quarterly review processes.

To ensure compliance with the new arrangements, a formal structure for monitoring and reporting risk is now in place, supported by a policy and guidance document, and there is ongoing monitoring of all Agency risk registers. These new arrangements were fully endorsed by DTI auditors, who praised them as a model of best practice.

Risk management co-ordination continues; it is critical for the successful transition of the Agency's business and continued service to customers during the transfer to Ofcom. However, further IT developments to manage risk are on hold until Ofcom decides how it will take risk management forward.

6.6 Ofcom
This year, our Change Management Unit (CMU) saw a considerable increase in the volume and complexity of its Ofcom work. It continued to provide strategic support for the Chief Executive and Directors/senior managers actively engaged in the transition process. In particular, it supported the more detailed design work for Ofcom before the appointment of the Ofcom Chief Executive. Because of this strengthening of its focus, the Management Board agreed during the year that CMU should be dedicated solely to supporting the Ofcom transition.

back

Contents

next