Brian Hayes (Dublin South West, Fine Gael)
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Question 321: To ask the Minister for Health and Children the estimate of the money saved to the Exchequer in 2007 by the use of the management information framework system; the way this saving was made; and if she will make a statement on the matter. [34307/07]

Brian Hayes (Dublin South West, Fine Gael)
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Question 322: To ask the Minister for Health and Children if the management information framework system has been fully rolled out in her Department; the use being made of performance indicators, the costing framework and management reports provided by this system; and if she will make a statement on the matter. [34322/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 321 and 322 together.

The Management Information Framework (MIF) was introduced to ensure that Government Departments and Offices, through the availability of a full accrual based accounting system and performance measurement data, have the opportunity to consider fully the planning of investment on the basis of a value added concept.

The vast majority of the Health Vote, amounting to some €15bn gross for 2007, relates to direct service provision, which is the responsibility of the Health Service Executive (HSE). As a consequence, responsibility for expenditure and performance measurement in the wider health delivery system is a matter for the HSE. The Deputy will be aware that the HSE and the wider health delivery system have always operated on the basis of full accrual accounting principles which underpinned a broad management information framework, including a National Service Planning process, output statement, monthly reporting on key performance targets and budget outcomes, and value for money assessments.

As with all other Government Departments, the Health & Children (including the Office of the Minister for Children (OMC)) Vote is accounted for on a cash basis. It is worth noting, however, that the amount spent directly within the Department (the Administrative Budget) is in the region of €52m or 0.35% of the total Health Vote in 2007. In that context, the Department's MIF project was based on upgrading its existing Financial Management System (FMS) to a dual accounting system (both Vote and accrual capabilities), thereby meeting the MIF strategic objective in a cost effective manner. The financial system upgrade was installed in line with the Government Decision deadline of 31 December, 2004. The roll out of the full MIF, to include the transfer of the OMC and activities of additional Ministers of State, is scheduled for completion in early 2008.

Whilst the upgraded financial system continues to operate in Vote mode, the benefits in terms of more efficient and speedy access to financial and management information/analysis can be seen as a major advantage within the Department. It is difficult to represent the operational and management benefits in financial terms.