b'Public sectorSuggestions on how you would migrate to full private sector businessentrepreneurial Achieved greater flexibleNeed to have fully tailored terms and conditions and insurance working including multi-sitearrangements to meet the needs of the business. workings that requiredContinuing need to change culture to that of a trading operation and modification of conditions ofincreasingly focus as a customer-orientated organisation with the council service.being the foremost customer.FinancialsAccounting arrangementsPrivate sector business budgeting and accounting with monthly trading developed to emulate thosestatements, job costing, and work in progress approaches. needed for tradingClient acceptance and bid approval approaches embedded, must know that organisations.outside work is secured at a profit and what is happening when it is delivering work. Budgetary arrangementsRecharges from the council will have moved to a mutually agreed moving towards accrualscommercial arrangement. monthly accounting and willTrading company needs to have access to a full range of supporting skills be distinctly different toincluding those relating to finance. those employed for the delivery of services.Trading accounts need to have become routine and the business will need a separate bank account and cheque book, etc. Cash is kingcash-flow planning will have significant importance to the new business. Budgetary arrangements will have become tailored to that of an income-generating business and will be very different to those that are aimed at spending money, ie a council. More freedom to invest in capital items and equipment. RiskMedium/higher risktheThe new entity will be exposed to a range of business risks and will have an delivery of services tointegrated business planning process. multiple public sectors willPI and other insurance arrangements in place to reflect commercial be a demandingresponsibilities and contractual commitments. environment. Bidding and securing work in a competitive environment will be medium/high risk. PI and other insurance arrangements need review. GovernanceDedicated committee/jointNeed for a dedicated management team and a designated executive committee with its ownmember for any decisions regarding new work. constitution. Specific memberMember involvement would be increasing with delegation of key decisions involvement with chiefbeing given to the management in conjunction with the executive member. officer responsibility. Might be a move towards an arms length management arrangement with the council monitoring performance restricted to, eg return on capital. Trading accountsTrading accounts/jointTrading accounts produced as a matter of routine and a full management and performancecommittee accounts/tradinginformation reporting system needs to be considered (covering productivity, statementsinformation required underclient satisfaction, order book, work in progress, debtor recovery, product the Local Authority (Goodsdevelopment, etc). and Services) Act 1970. Delegation andSpecialised delegationRadical changes to delegations, standing orders and financial regulations to financialarrangementsgreaterallow the business to operate successfully as a stand-alone business. regulationsdelegation to management but with safeguards.Marketing materialsGrowing range ofContinued development of website and marketing material showing full and separatematerials/tailored terms ofscope of available services. websitebusiness/website.Marketing literature and terms of business. Commencement of approaches that help establish separate identity. 33'