Funding for Income Support Scheme set-up costs.

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A decision made (07/11/2006) regarding Funding for Income Support Scheme set-up costs.

Subject:	Funding for Income Support Scheme Set-up costs
Decision Reference:	MD-TR-2006-0121	Exempt clause(s):		n/a
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		CH/4/3/11/06
Written Report – Title	Funding for Income Support Set-up costs	Written report - author		Chris Haws -Head of Financial Planning
Decision(s): The Minister approved a further £200,000, from the remaining balance on the Contingency Vote in 2006, based on the improved estimate of the set up costs of the project to implement the new Income Support Scheme.
Reason(s) for decision The set-up costs for developing and implementing the Income Support Scheme have been reviewed by the Chief Officer, Social Security and based on this improved estimate a further £200,000 is needed to fund the remaining commitments. This brings the total allocation up to the amount originally requested.
Action required: Notify the Social Security Department and allocate the additional budget
Signature: (Minister/ Assistant Minister)			Date of Decision: 7th November 2006

Funding for Income Support Scheme set-up costs.

TREASURY AND RESOURCES MINISTER

FUNDING FOR INCOME SUPPORT SET UP COSTS

1. Purpose of Report

1.1. To consider a request from the Minister for Social Security to provide a further £200,000 in respect of the set up costs of the Income Support Scheme. This would bring the funding up to the level originally requested as part of the prioritisation of the carryforward and contingency sums in April 2006.

2. Background

2.1. At the end of 2005 carry forward funds in addition to departments 3% limits and a balance remaining on the General Reserve were prioritised by the Council of Ministers to competing bids from various departments.

2.2. The bids exceeded the amount available and in some cases were reduced by the Council of Ministers in order to achieve a prioritised allocation of these funds.

2.3. A number of these allocations were made on the basis of estimated requirements from departments which over the course of the year have become more accurate.

2.4. In the case of Social Security, the department requested £2 million in relation to the necessary set up costs in advance of the Income Support Scheme. This was then reduced as part of the prioritisation of the available funds to an allocation of £1.8 million.

2.5. These costs include the development of ICT systems (based on the current ‘Nessie’ computer platform), additional staff costs associated with requirements capture and testing and other costs relating to training and publicity, these are summarised on the attached Appendix.

2.6. The costs for the project have now been reviewed by the Social Security department and includes additional work commissioned for the production of a database by Cap Gemini in advance of the main system set up to allow early data capture. The current shortfall in funding is some £253,000 but the Chief Officer is intent on identifying further efficiencies to contain the costs within the funding now requested.

2.7. The Minister for Social Security is now requesting, based on the improved estimate of these costs, a further allocation of £200,000 from the contingency funds bringing the total to £2 million which is equivalent to the original request made in early 2006.

3. Comments

3.1. The items which the Council of Ministers considered and prioritised in April were based on estimated costs at that time and as a number of these have been finalised, some at reduced costs, a small balance remains which is available to allocate. It would be most appropriate that any such balance be allocated to any departments, which following further work, find that their original allocations need to be increased.

3.2. The Minister for Social Security has forwarded a Ministerial Decision requesting an additional £200,000 for the set up costs of the Income Support Scheme following a review of those requirements and this sum is currently available from the balance of unallocated funds.

3.3. The Social Security department require this approval to provide funding in order to commit to the remainder of the contracts for work in advance of the new Income Support Scheme approved by the States.

4. Recommendation

4.1. The Minister is asked to approve the request from the Minister for Social Security for a further £200,000 for the set up costs of the Income Support Scheme from the balance of contingency funds available.

5. Reason for Decision

5.1 The set up costs for developing and implementing the Income Support Scheme have been

reviewed by the Chief Officer, Social Security and based on this improved estimate a further £200,000 is needed to fund the remaining commitments. This brings the total allocation up to the amount originally requested.

Chris Haws Corporate Finance

Head of Financial Planning for Decision Meeting 02/10/2006

APPENDIX