❓ A parliamentary question regarding the cost estimates and monitoring mechanisms following the decommissioning of the Department of Treasury and Finance Shared Services Centre. The government's response details the decommissioning process, cost considerations, and monitoring procedures.
AnsweredQoN 7815Legislative Assembly
QuestionView source ↗
I refer to the June 2011 report by the Economic Regulation Authority entitled
Enquiry into the Benefits and Costs Associated with the Provision of Shared Corporate Services in the Public Sector.
The report's modelling showed that the net present cost over five years of providing corporate services, agency by agency, if the then Department of Treasury and Finance Shared Services Centre was decommissioned, was $1074.9 million. This is about $110 million less than the net present five-year cost of continuing with the shared service centre. In relation to this, I ask:
(a) does the Government stand by this estimate of the net present five-year cost of providing agency corporate services following its decision to decommission the shared services centre; and
(i) if not, what is the Government's current estimate of the cost over five years of providing these corporate services agency by agency; and
(ii) if the Government has no current estimate, why not?
(b) what mechanisms has the Government put in place to monitor and report on expenditure on corporate services across government following the decommissioning of the shared services centre?
Enquiry into the Benefits and Costs Associated with the Provision of Shared Corporate Services in the Public Sector.
The report's modelling showed that the net present cost over five years of providing corporate services, agency by agency, if the then Department of Treasury and Finance Shared Services Centre was decommissioned, was $1074.9 million. This is about $110 million less than the net present five-year cost of continuing with the shared service centre. In relation to this, I ask:
(a) does the Government stand by this estimate of the net present five-year cost of providing agency corporate services following its decision to decommission the shared services centre; and
(i) if not, what is the Government's current estimate of the cost over five years of providing these corporate services agency by agency; and
(ii) if the Government has no current estimate, why not?
(b) what mechanisms has the Government put in place to monitor and report on expenditure on corporate services across government following the decommissioning of the shared services centre?
AnswerView source ↗
Answered
12 June 2012
Response time
42 days
(a) In December 2011, the Government approved the recommendations of a Steering Group formed to determine the most appropriate method for decommissioning Shared Services. The scope of the terms of reference of the Steering Group was the client agencies that were rolled into Shared Services. The costs determined by the Steering Group are consistent with those estimated by the Economic Regulation Authority for the decommissioning of the client agencies of Shared Services.
The cumulative impact on Net Debt of the decommissioning of Shared Services to 2015-16 is $89.9 million. This takes into consideration the cost to fund agencies for new systems and ongoing management of corporate services and the offsetting reduction in funding to agencies to pay Shared Services fees which will no longer be required. It includes the cost to run the Shared Services business and a decommissioning office until March 2014, and the reduction in funding to the Department of Finance for the Shared Services Centre from March 2014.
(i-ii) Not applicable
(b) Monitoring of the decommissioning program and its costs is undertaken through a Decommissioning Steering Group comprising the Directors General and Chief Executive Officers of representatives agencies, including the Director General of the Department of Finance (Chair), the Under Treasurer and the Public Sector Commissioner.
Regular reports on the progress of the decommissioning program are to be provided by the Chair to the Minister for Finance; and the Minister for Finance to provide to the Economic and Expenditure Reform Committee reports from June 2012.
Funding for the client agencies of Shared Services to commission new systems and transition from Shared Services has been globally allocated to the Department of Finance in an administered fund. Agencies will receive their funding upon approval of business cases by the Departments of Finance and Treasury. Approval of business cases is contingent on the management of the global budget for the decommissioning of Shared Services.
Following agencies' exits from Shared Services, funding will be provided in their budgets for corporate services and they will be responsible for managing their expenditure within budget.
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
The cumulative impact on Net Debt of the decommissioning of Shared Services to 2015-16 is $89.9 million. This takes into consideration the cost to fund agencies for new systems and ongoing management of corporate services and the offsetting reduction in funding to agencies to pay Shared Services fees which will no longer be required. It includes the cost to run the Shared Services business and a decommissioning office until March 2014, and the reduction in funding to the Department of Finance for the Shared Services Centre from March 2014.
(i-ii) Not applicable
(b) Monitoring of the decommissioning program and its costs is undertaken through a Decommissioning Steering Group comprising the Directors General and Chief Executive Officers of representatives agencies, including the Director General of the Department of Finance (Chair), the Under Treasurer and the Public Sector Commissioner.
Regular reports on the progress of the decommissioning program are to be provided by the Chair to the Minister for Finance; and the Minister for Finance to provide to the Economic and Expenditure Reform Committee reports from June 2012.
Funding for the client agencies of Shared Services to commission new systems and transition from Shared Services has been globally allocated to the Department of Finance in an administered fund. Agencies will receive their funding upon approval of business cases by the Departments of Finance and Treasury. Approval of business cases is contingent on the management of the global budget for the decommissioning of Shared Services.
Following agencies' exits from Shared Services, funding will be provided in their budgets for corporate services and they will be responsible for managing their expenditure within budget.
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
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.