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Final report by the assessment group for evaluating the financial impact of relocation

Summary

The Ministry of Finance appointed a working group on 28 September 2009 to enhance the assessment and supervision of the financial impact of relocation (ATVA). Its purpose was to:

1) draft by 31 March 2010 a comprehensive cost-benefit framework for evaluating and supervising individual relocation projects as well as relocation measures overall, and
2) prepare by 31 December 2010 an assessment on the financial impact of relocation measures using the said framework.

The working group handed its interim report to the Ministry of Finance on 4 April 2010. In its interim report, the working group encapsulated its cost-benefit analysis into a straightforward practical paradigm for assessing and supervising relocation projects and overall relocation measures and so it can be used in advantage comparisons

The Ministry of Finance then commissioned an assessment to be carried out by an independent consultant on the financial impact of relocation measures for 11 separate cases. The cost-benefit framework devised in the first phase by the working group was used in the assessment. Relocation measures vary considerably in nature and implementation, which is reflected in the financial impact of the measures. In terms of financial impact, no regular pattern could be discerned in the ways in which relocation was implemented. Cost anticipation and monitoring was not carried out using any principles in common or uniform breakdown in costs. Moreover, relocation often involves functional changes and their impact has not been distinguished from the effects generated by relocation as such. Hence it is not possible to present a comprehensive and detailed assessment of the overall financial impact of relocation. In the light of the results of the assessment, the working group proposes various measures to enhance the assessment and supervision of the financial impact of relocation.

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Printable version

Document information

Type:
Publication

Title:
Final report by the assessment group for evaluating the financial impact of relocation

Publications series and number:
Ministry of Finance publications 2/2011

Printing year:
2011

Form of publication:
pdf-format

Date:
13.01.2011

Number of pages:
226

ISBN:
978-952-251-147-8

ISSN:
1797-9714

Areas of responsibility:
Public management reforms

Publisher:
Ministry of Finance

Department:
Public Management Department

Contact information:
Mr. Mikko Saarinen, mobile +358 40 750 9798

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