Keypoints

Attachments:
ICT Goods and Services Expenditure Related to Corporate Services Over $500,000
ICT Expenditure Related to Corporate Services Below $500,000 Expenditure
Corporate Services Related Consultancies Expenditure

As part of the reforms to the structure of the NSW Government, which saw the creation of 13 super Departments, the Premier has indicated that corporate services should be consolidated wherever possible, to achieve better support to front line service delivery and achieve efficiencies.

The Department of Premier and Cabinet is working with Departments to develop a sector-wide approach to corporate service consolidation. In addition, the Better Services and Value Taskforce is currently undertaking a review of ICT across the NSW public sector.

These two bodies of work will together set a consolidated direction for future ICT expenditure on corporate services across the sector.

Accordingly, the Cabinet Standing Committee on Service Delivery has agreed that all expenditure proposals for ICT (goods and services) and consultancies related to corporate services must not proceed without prior approval by the Department of Premier and Cabinet.

Definitions and application:

Corporate services is defined as 'back office' services, at either the strategic (expert) level, the shared (transactions) level or the business service level. It includes: human resources, financial management, asset and facilities management, records and information management, office services and procurement, legal services, and governance and executive services.

This requirement applies to:

• all public sector entities other than State Owned Corporations;
• expenditure on ICT (both goods and services) related to corporate services, regardless of cost, except as exempted below;
• expenditure on all consultancies related to corporate services, regardless of cost;
• proposals to be funded from internal or external sources; and
• capital or recurrent expenditure.

It is important to understand that approval is not required for expenditure on ICT or consultancies that are necessary for front line service delivery ('core business'). It only applies to 'back office' corporate services, as defined above.

Process for seeking approval of corporate services ICT expenditure over $500,000 (Download form):

• Entities seeking approval for corporate services ICT expenditure where the total value of the contract is over $500,000 must provide a written Business Case, signed by the Director General of the relevant cluster.
• Business Cases should be in the format described in Treasury's Guidelines for Capital Business Cases (TPP08-5, December 2008).
• Applications should be sent to the Deputy Director General, Public Sector Management Reform, Department of Premier and Cabinet (DPC), who will arrange for review by DPC, Treasury and the Government Chief Information Officer within the Department of Services, Administration and Technology.

Process for seeking approval of corporate services ICT expenditure below $500,000 (Download form):

• Entities seeking approval for corporate services ICT expenditure where the total value of the contract is below $500,000 must provide a written application. It must be signed by the Director General of the relevant cluster, or an officer formally delegated to approve expenditure of that level.
• Applications should be sent to the Government Chief Information Officer within the Department of Services, Administration and Technology.
• The following exemptions apply (that is, approval is not required): peripherals; additional licences for office and core business applications; additional personal computers; and maintenance. It is noted that software licences should be acquired under GSAS contracts 2600, 2601, 2602 and service acquired under GSAS contract 2626.
• The following are not exempt (that is, approval is required): new products and services; upgrades; and additional licences for corporate services applications

Process for seeking approval of corporate services consultancy expenditure (Download form):

• Entities seeking approval for corporate services consultancy expenditure must provide a written Business Case, signed by the Director General of the relevant cluster.
• Applications should be sent to the Deputy Director General, Public Sector Management Reform, Department of Premier and Cabinet.

Peter Duncan
A/Director General