First Session Forty-Eighth General Assembly
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PROVINCE OF NEWFOUNDLAND AND LABRADOR HOUSE OF ASSEMBLY First Session Forty-Eighth General Assembly Proceedings of the Standing Committee on Government Services May 10, 2016 - Issue 4 Department of Finance Office of the Chief Information Officer Published under the authority of the Speaker of the House of Assembly Honourable Tom Osborne, MHA GOVERNMENT SERVICES COMMITTEE Department of Finance Chair: Randy Edmunds, MHA Vice-Chair: Keith Hutchings, MHA Members: John Finn, MHA Carol Anne Haley, MHA Steve Kent, MHA Neil King, MHA Lorraine Michael, MHA Betty Parsley, MHA Clerk of the Committee: Elizabeth Murphy Appearing: Department of Finance Hon. Cathy Bennett, MHA, Minister Donna Brewer, Deputy Minister Gail Boland, Director, Policy and Planning Lesley Clarke, Communications Manager Alton Hollett, Assistant Deputy Minister, Economics & Statistics Craig Martin, Assistant Deputy Minister, Tax & Fiscal Policy Ann Marie Miller, Comptroller General Wanda Trickett, Departmental Controller Jennifer Tulk, Director, Communications Office of the Chief Information Officer Hon. Cathy Bennett, MHA, Minister Ellen MacDonald, Chief Information Officer Julie Moore, Executive Director Randy Mouland, Executive Director Natalie Templeman, Executive Director Wanda Trickett, Departmental Controller Jennifer Tulk, Director, Communications Also Present Derrick Bragg, MHA Megan Drodge, Researcher, Official Opposition Office Ivan Morgan, Researcher, NDP Office May 10, 2016 GOVERNMENT SERVICES COMMITTEE Pursuant to Standing Order 68, Derrick Bragg, MS. MICHAEL: Lorraine Michael, MHA, St. MHA for Fogo Island – Cape Freels, substitutes John’s East – Quidi Vidi. for John Finn, MHA for Stephenville – Port au Port. MR. MORGAN: Ivan Morgan, researcher, NDP caucus. The Committee met at approximately 9 a.m. in the Assembly Chamber. MS. PARSLEY: Betty Parsley, MHA, Harbour Main. CHAIR (Edmunds): Welcome everyone to the third and final session for the Government MR. KING: Neil King, MHA, historic District Services Committee. Today we’ll be doing of Bonavista. OCIO and Finance. MS. HALEY: Carol Anne Haley, MHA, Burin First of all, I’d like to call for adopting the – Grand Bank. minutes of the last meeting. MR. BRAGG: Derrick Bragg, MHA, Fogo MR. HUTCHINGS: So moved. Island – Cape Freels. CHAIR: Move to adopt the minutes of the last – CHAIR: Okay, thank you very much. MR. HUTCHINGS: Yes, moved. I ask the minister if she could introduce her staff. I’d like to point out that if staff, other than CHAIR: Okay. yourself, are speaking that they clearly introduce themselves before carrying on. All those in favour, ‘aye.’ MS. C. BENNETT: All right. I’m Cathy SOME HON. MEMBERS: Aye. Bennett, MHA for Windsor Lake and the Minister Responsible for OCIO, and I’ll turn CHAIR: Carried. towards the deputy. On motion, minutes adopted as circulated. MS. MACDONALD: Ellen MacDonald, Chief Information Officer from the OCIO. CHAIR: First of all, I’m going to ask the Government Services Committee to introduce MS. MOORE: Julie Moore, Executive Director, themselves and then I’ll ask the minister to Corporate and Information Management introduce her staff. Then we’ll go on with the Services, OCIO. line by lines on OCIO followed by Finance. Given that this session has been delayed already MS. TRICKETT: Wanda Trickett, once and we only have a certain allotted time to Departmental Controller. get the Estimates done, we will finish by 12 o’clock. MR. MOULAND: Randy Mouland, Executive Director of Operations, OCIO. I would just like to point out that Mr. Bragg is substituting for Mr. Finn on the Government MS. TEMPLEMAN: Natalie Templeman, Services Committee. Executive Director of Solutions Delivery, OCIO. I ask the Government Services Committee to MS. C. BENNETT: And that’s everybody for introduce themselves. OCIO. MR. HUTCHINGS: Keith Hutchings, MHA, CHAIR: Okay. District of Ferryland. What we’ll do is we’ll get started here. I’ll call MS. DRODGE: Megan Drodge, researcher, for the subheads, and then I’ll ask for some Official Opposition caucus. 94 May 10, 2016 GOVERNMENT SERVICES COMMITTEE opening remarks. Then we’ll turn it over to The Estimates structure we’re going to walk either line by line or probing questions. through this morning, OCIO, includes four branches and each have a distinct set of CLERK (Ms. Murphy): 4.1.01. responsibilities. CHAIR: Shall 4.1.01 carry? There’s the Corporate and Information Management Services or the CIMS. That’s MS. C. BENNETT: I just want to say good responsible for policy vendor and contract morning to everyone, and good morning to management, RFP development and the colleagues as we review the Estimates of the management of OCIO corporate-wide activities, Office of the Chief Information Officer. management of office space, supplies, et cetera. I just have a few points to make before we get Under Solution Delivery, and that would include into the actual Estimates. I just want to make both current and capital monies, they’re sure that from the Chair’s perspective I have responsible for all new project work for time to talk for maybe about two or three departments and agencies. minutes. Under Application Services, they would be Mr. Chair, is that okay? responsible for the support and maintenance of the existing 500-plus applications that are used CHAIR: (Inaudible.) by departments and agencies. Typically, in any given year, it would handle about 2,800 requests MS. C. BENNETT: Okay. I just want to make to update current systems. sure I was okay on the clock. Operations – both current and, again, capital – I have a couple of opening comments to make. I has the responsibility for technology just wanted to make sure that from my time infrastructure, desktops, laptops, servers, wide- perspective I was okay to make them now. area networks, email systems, backup and recovery of all government data, et cetera. CHAIR: (Inaudible.) Typically, it handles in any given year over 119,000 requests. MS. C. BENNETT: Awesome. The budget overall, and the budget allocations Just for the members of the Committee, to give for OCIO, in 2016-17 the OCIO will see a $7.4 you a little background on OCIO. The OCIO million or an 11 per cent budget reduction as supports all the information technology and the part of the Government Renewal Initiative and information management functions of line-by-line reductions. Further to this, the government, including things like government’s OCIO has absorbed another $4 million in technology infrastructure. It includes addressing pressures as part of its base budget, bringing the some 150,000 requests annually over 310 total savings to just over $11 million for 2016- government offices across the province. 17. It manages over 10,000-plus laptops and In terms of the Government Renewal Initiative, desktops, 1,500 servers and 1,600 Blackberries. as we work through the Estimates document you It also manages providing email services and will see the OCIO’s initiatives including data storage, and managing licensing and changes to the project delivery model, which maintenance of software and hardware assets. It will see savings of $411,000 for 2016-17 and also is responsible for protecting government over $2.9 million in annualized savings when assets and data from cyber-attacks. It also fully implemented. You’ll also see changes in supports 500-plus applications that are used by technology support models which will see departments and agencies and building and savings of over $1.3 million in ’16-’17 and over deploying new IT solutions for government $1.6 million in annualized savings when fully departments and agencies. implemented. You’ll also see the introduction of the managed service provider model, which will 95 May 10, 2016 GOVERNMENT SERVICES COMMITTEE see savings of $50,000 in ’16-’17, and $297,500 the work required to implement new projects. in annualized savings when fully implemented. Some of these projects involve multi-year And you’ll see additional operating savings of funding that must be allocated between current $13,800. Further to this, as part of the line-by- and capital accounts. When the project starts and line review of operational line items, the OCIO nears completion, funding is generally saved an additional $2,066,300. considered current while the build phase is considered capital. When we look at salaries, the OCIO in ’15-’16 projected revised shows savings of just over This is a complex budgeting area and while best $1.2 million, resulting from lower requirements efforts are made to budget funding into each for projects due to timing of activities such as spending envelope at the outset of each project, the project for CYFS, as well as planned there are often adjustments to the envelopes for vacancies to manage within the budget and to the out-years and as projects progress. Budgets save related to government’s spending reduction become more refined depending on the progress measures. The OCIO manages salaries at the of the project. As you will see in activities overall corporate level versus by branch, so you 4.1.02 and 4.1.05 most envelopes involve will see some branches show a deficit in salaries transfers of funds depending on the projects for while others show a surplus. The OCIO manages the next year. within its overall salary budget. Child, Youth and Family Services system A total of $287,600 has been eliminated into implementation is the largest ongoing project 2015-16 as part of government’s attrition plan and is being implemented over multiple years. and OCIO has reduced four positions during Much of the reduced expenditure in ’15-’16 is 2015-16. driven by timing changes for the CYFS project as well as managed reductions and delayed Some specific areas that we’ll focus on as we implementation to manage spending. walk through the Estimates I’m sure will be Corporate and Information Management GRI and line-by-line savings in these activities Services.