NSW agencies to share ICT savings

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NSW agencies to share ICT savings

Treasury calls for reinvestment pool applications.

NSW Audit Office - Awareness - Isue 2010/07 - August 2010

The NSW Treasury has invited State Government agencies to apply for a share of a newly established ICT Reinvestment Pool.

The fund comprised fifty percent of the cost savings from NSW's 2009-10 ICT review, which aimed to reduce agencies' ICT spend by five percent, and an additional 10 percent over four years.

It was intended to supplement the existing NSW Consolidated Fund with a specific focus on ICT capital projects that would increase efficiency and facilitate the state's shared services strategy.

Agencies were invited to submit business cases for evaluation by a committee of senior officers from the Treasury, Department of Premier and Cabinet, Department of Services, Technology and Administration and an independent adviser.

According to the Treasury's Policy Paper (pdf), ICT Pool applications would be assessed on the basis of return on investment, risk analysis, and implementation approach.

The Treasury would not support feasibility studies, maintenance of existing ICT, legacy systems, and activities that were already funded or had previously been rejected through the Budget assessment process.

Additionally, ICT pool projects would have to generate enough savings to meet any ongoing operating, maintenance and depreciation costs.

The ICT Reinvestment Pool was part of the State Government's 2009-10 Better Services and Value Plan, expected to save $79m this financial year and a further $158m in 2011-12 (pdf, pages 12-13).

Applications for the ICT pool were due by November. The Treasury planned to make recommendations to the Budget Committee by March, following an evaluation process.

Projects would be approved by April, ahead of the release of Agency Budgets in June.

The Federal Government launched a similar ICT reinvestment fund following the 2008 Gershon 'Business As Usual' review. $248.4m was expected to be saved by the end of 2010-11; $113.6m was allocated to new projects in this year's Federal Budget.

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