❓ Ms. Quirk questions procurement savings reductions impacting the Road Trauma Trust Account (RTTA). The answer clarifies how these savings are calculated and recouped, revealing a complex internal transfer mechanism between the RTTA and the Office of Road Safety (ORS). Further savings are expected.
AnsweredQoN 6165Legislative Assembly
QuestionView source ↗
Referring to the attachment to the answer to Legislative Council Question on Notice 3995, I ask:
(a) what is meant by the term procurement savings reduction
set out for both the 2010–11 and 2011–12 years;
(b) how were these savings achieved;
(c) in what manner is the $358,000 for each of these years disbursed; and
(d) is it intended that further so-called procurement savings reductions will be found in subsequent years 2012–13 and beyond?
(a) what is meant by the term procurement savings reduction
set out for both the 2010–11 and 2011–12 years;
(b) how were these savings achieved;
(c) in what manner is the $358,000 for each of these years disbursed; and
(d) is it intended that further so-called procurement savings reductions will be found in subsequent years 2012–13 and beyond?
AnswerView source ↗
Answered
18 October 2011
Responded by
Minister for Road Safety
Response time
27 days
(a) In 2004 the government increased the number of common use contracts (CUC) to cut out duplication of effort associated with individual departments establishing their own similar contracts. This efficiency, along with the government's increased purchasing power, lead to forecast savings across government.
(b) Each agency had their annual appropriation permanently reduced accordingly to reflect the savings associated with using the CUCs. These reductions were titled "procurement savings reductions". The annual savings amount identified for the Road Trauma Trust Account is currently $358,000.
(c) Treasury applied the calculation on the expenditure limit of the Office of Road Safety, which included Road Trauma Trust Account spending. However, Treasury could not reduce the appropriation of the RTTA directly as no appropriation is given; all funds are received through fines collections. In order to recoup the funds, Treasury reduced the ORS CF appropriation, which is used for permanent staff salaries and office rent. Therefore an annual journal is raised that transfers RTTA procurement savings reductions (currently $358,000) from the RTTA back to the ORS CF appropriation. The end result is that the RTTA is reduced by $358,000 (using a formula based on its spending) and the ORS CF is only reduced for its portion of the procurement savings reduction.
(d) Yes.
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(b) Each agency had their annual appropriation permanently reduced accordingly to reflect the savings associated with using the CUCs. These reductions were titled "procurement savings reductions". The annual savings amount identified for the Road Trauma Trust Account is currently $358,000.
(c) Treasury applied the calculation on the expenditure limit of the Office of Road Safety, which included Road Trauma Trust Account spending. However, Treasury could not reduce the appropriation of the RTTA directly as no appropriation is given; all funds are received through fines collections. In order to recoup the funds, Treasury reduced the ORS CF appropriation, which is used for permanent staff salaries and office rent. Therefore an annual journal is raised that transfers RTTA procurement savings reductions (currently $358,000) from the RTTA back to the ORS CF appropriation. The end result is that the RTTA is reduced by $358,000 (using a formula based on its spending) and the ORS CF is only reduced for its portion of the procurement savings reduction.
(d) Yes.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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