0 Inland Revenue Te Tan i Taake Inland Revenue report: Business Transformation - Update on Programme Business Case Date: 12 October 2012 Priority: High Security level: In Confidence Report number: IRD 2012/127 Action sought Minister of Finance Minister of Revenue Action sought Note contents of this report. Endorse the revised approach and timeline for completing the Programme Business case. Discuss the potential for engaging with the Cabinet Strategy Committee (STR) on Inland Revenue's transformation at your upcoming briefing with the Commissioner. Deadline 16 October 2012 Contact for telephone discussion (if required) Name Position Telephone Ron Grindle Acting Deputy Commissioner, Business Transformation Withheld under section 9(2)(a) of the Official Information Act 1982
12 October 2012 Minister of Finance Minister of Revenue Business Transformation - Update on Programme Business Case Executive summary This report proposes a revised approach and timeline for completing the Transformation Programme Business Case process. Inland Revenue is developing a series of business cases using Treasury's Better Business Case process through to June 2013. Work commenced on developing the Programme Business Case (PBC) in mid-2012 and in order to successfully complete the PBC in line with the Budget 2013 cycle, guidance from Ministers on what Inland Revenue is required to deliver for Government and citizens in the future is needed to further shape the mix and sequencing of the projects that will deliver on these objectives. The timeframe for completing the PBC was originally planned for November 2012. It is now proposed that the PBC is developed in parallel with the Indicative Business Case (IBC) which refmes the list of options and ranges of costs. The IBC will also give an indication of the likely cost of early implementation phases of the programme should additional funding be required as part of the Budget 2013 cycle. Both the PBC and IBC are proposed to be completed by March 2013 which does not impact on the Budget 2013 cycle. Page 2
Recommended action We recommend that you: a) Note the contents of this report Noted Noted b) Endorse the revised approach and timeline for completing the Programme Business case Agreed Agreed Ron Grindle Acting Deputy Commissioner, Business Transformation Inland Revenue Hon Bill English Minister of Finance Hon Peter Dunne Minister of Revenue Page 3
Background 1. As noted in the report Business Transformation Update September 2012 (IRD2012/113) Inland Revenue is developing a series of business cases using Treasury's Better Business Case process through to June 2013. 2. In line with that process, following completion and endorsement of the Transformation Programme Business Case (PBC), which sets out the case for investment along with high level implementation options and seeks endorsement of the preferred way forward, the Indicative Business Case (IBC) is completed. 3. The IBC refines the list of options and ranges of cost and gives an indication of the likely cost of early implementation phases of the programme should additional funding be required as part of the Budget 2013 cycle. 4. Work commenced on developing the PBC in mid-2012. In order to successfully complete the PBC and IBC in line with the Budget 2013 cycle, guidance from Ministers on what Inland Revenue is required to deliver for Government and citizens in the future is needed to further shape the mix and sequencing of the projects that will deliver on these objectives. Revised approach 5. The PBC was planned to be presented for Ministerial and Cabinet endorsement in November 2012. The Transformation Programme Business Case (PBC) is the high level founding document for the subsequent Indicative and Detailed Business Cases (DBCs). 6. The timeframe for developing a full PBC by November 2012 was known to be tightly constrained from the outset of the work earlier this year. The timeframe for completing the PBC is proposed to be revised for delivery to Cabinet in early 2013, which is still in line with the Budget 2013 cycle, for the following reasons: Page 4
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