TREASURY AND RESOURCES MINISTER
budget transfer
1. Purpose of Report
1.1. The Minister is requested to approve a transfer from the Change Programme Fund to the Procurement Function.
2. Background
2.1. At the Corporate Management Board (CMB) meeting on 18th October 2006 it was agreed that the investment in the Procurement function should be phased and that the Procurement Steering Group (PSG) should decide the level of funding for the initial investment.
2.2. Following the CMB meeting the Director of Procurement presented a report to the Procurement Steering Group. The Procurement Steering Group agreed to request an initial sum of £300,000. However, there may be an additional request in 2007 for a further investment of £188,000 and a further £585,000 in 2008. The investment is expected to deliver savings in excess of £5 million by 2010.
2.3. The Minister is required to approve the £300,000 capital to revenue transfer from the Chief Minister’s Department to the Treasury and Resources Department accordingly.
3. Comments
3.1. The Change Programme Fund was set up to pump prime initiatives required to deliver significant savings across the States. The Procurement Function is expected to deliver savings in excess of £5 million by 2010.
3.4 The initial investment required for the first phase will be used for the following :
· To appoint two interim contract Managers
· Recruitment of three Contracts Managers for E procurement, Compliance and Policy Procedures and Major Projects
· Procurement of E sourcing tools
· Development of a Training Programme
· Organisational change for the implementation of the CLAN system
· Purchase of office equipment for additional staff
4. Recommendation
4.1. That the Minister approves the budget transfer of £300,000 from the Chief Minister’s Department capital budget to the Treasury and Resources Department’s revenue budget on the basis that it will be paid back to the Change Programme in 2008 from the savings made in capital projects generated in 2007.
5. Reason for Decision
5.1. To provide pump priming funds to enable the Procurement Function to deliver savings in excess of £5 million by 2010.
States Treasury Corporate Finance
5 April, 2007 for Decision Meeting 2/04/2007