Senator Robert Ray asked the Minister representing the Treasurer, upon notice, on 9 March 1999:

(1) What was the total expenditure on preparing the department for the move to accrual accounting for the 1997-98 financial year.

(2) What was the department's forecast for expenditure in this area.

(3) (a) In which instances were firms or individuals engaged to provide consultancy services associated with the shift to accrual accounting by the department; (b) which firms or individuals were engaged.

(4) (a) What was the total number of days that consultants were engaged to provide this advice or services; (b) at what cost per day in each instance; (c) what was the total cost of each consultancy in each instance.

(5) (a) What is the estimated expenditure on outside consultants to advise on accrual accounting for the 1998-99 financial year; (b) how much has been spent to date.

(6) What is the estimated total expenditure on preparing for accrual accounting for the 1998-99 financial year.

Senator Kemp (Assistant Treasurer) —The Treasurer has provided the following answer to the honourable senator's question:

(1) Total expenditure on the move to accrual accounting for the 1997-98 financial year is estimated at $1,300,430.

(2) The department's original budgeted estimate for the 1997-98 financial year was $1,354,000.

(3) (a) Consultants were engaged to assist in the conversion of the existing Treasury cash budget to accruals. Consultants engaged included qualified accountants and professional presenters involved in the training and education of Treasury staff. Programmers and technical consultants were engaged to develop new systems to support both the upgrade of old technology and to install new technology and associated software.

(b) Consultancy firms engaged by Treasury were Coopers and Lybrand, Assist P/L and Catalyst Interactive P/L.

(4) (a) The total number of days that consultants were engaged to provide this advice or services was approximately 124 days. The number of contractors working on any one project varied daily, depending on the requirements and complexities of the work being performed at any given time.

(b) Contractors were paid on varying rates per day depending on their qualifications, whether part-time or full-time, term of contract and period of involvement.

(c) The total cost(s) of each consultancy for 1997-98 was as follows:

(5) (a) The estimated expenditure for consultants for 1998-99 is $387,800.

(b) A total of $352,800 has been expended on outside consultants from 1 July 1998 to 30 June 1999.

(6) The estimated total expenditure on preparing for accrual accounting for the 1998-99 financial year is $1,062,940.