Vol. 544 No. 3
5 Mr. J. Bruton asked the Taoiseach the exact services that have been provided by a company (details supplied) to his Department for the business analysis and review of the financial management function for which the company has been paid £36,000; the way in which the sum was calculated; and the benefits which have been derived by his Department from this activity. [21004/01]
The company was retained by the Department of the Taoiseach to assist with a project to reform and modernise its financial management function. The company assisted in carrying out a thorough business analysis of the Department's financial processes and recommended a strategy for implementation of the new Management Information Framework in the Department.
Specific services provided included identification and explanation of key financial issues and formulation of a strategy for the implementation of the new Generic Model, including recommendations for improvements in financial management processes and the identification of resource requirements, timescale and cost of implementation.
The amount paid was based on the tender price proposed by the firm in response to the Department's invitation to tender for the contract. Cost was based on the provision of a total of 48 person days. The cost was calculated on the basis of a rate per day for each consultant and was inclusive of discount, VAT and expenses. It included a significant discount on normal rates.
This consultancy has brought a number of benefits to the Department including expertise in carrying out a number of functions.
The main output was an implementation strategy for reform of the financial management function of the Department. This included detailed planning for tasks, timeframe, resource and project management requirements. This strategy forms the basis of the subsequent phases of the reform implementation process, which are currently being implemented by the Department.
The approach taken by my Department has been used as a model for similar projects in other Departments. The project has now advanced to the point where the selection and implementation of a new system is about to commence.
Will the Taoiseach explain if that particular kind of advice and management upgrading was available in the Department of Finance? Is he indicating that a similar review of management and financial control mechanisms are being assessed and implemented in other Government Departments and, if so, will the same systems apply? I am curious to know why the expertise we are talking about, which traditionally used to be with the Department of Finance, was not available in this case.
The Department of Finance has an amount of expertise in this area but this arose from Delivering Better Government. It was for a Generic Model for an improved financial management system, wider financial management process for planning resource allocation, programme evaluation, management control, including budgeting, day to day financial reporting, assessing performance and demonstrating value for money. Implementation of the model was based on changing from the old system where there were no accruals to a system of cash based accounting. I do not know if it was a question of nobody being available but I do not think anybody from the Department of Finance was doing this work. The Department was seeking to redesign, in two phases, its old financial process which was a straight write down system. It sought to engage a financial accountant to assist in the implementation of the work through the Department, design the implementation of management reports and examine the performance of value for money assistance. This was to help the management and budget systems in the Department. That is why this company was asked to assist with this.
