Technology used for elections is usually (but not always) expensive. Financing technology is a crucial part of implementing technology for electoral purposes.
In the long term, use of technology is likely to lead to improvements in efficiency and productivity and in many cases may also lead to reduced costs. In the short term, acquisition and implementation of technology are likely to lead to significant increases in costs. In particular, costs will increase where a new system is introduced in tandem with an old system, or where new systems or hardware have to be developed and purchased.
Securing the funds necessary to implement new technology or upgrade existing technology is an essential component of any technology implementation plan (see Choosing and Acquiring Technology). Secure and ongoing finance must be acquired before technology acquisition can proceed beyond the planning stage.
There are several steps involved in securing the funds necessary for acquiring technology.
The first consideration is whether the proposed new technology is affordable. Indicative costing of the proposed technology should be obtained to determine whether the estimated expenditure is realistic given the particular circumstances. Where several new technologies are being considered, it may be necessary to prioritise the available options and if necessary, discard those lower priority options that are not affordable given the restraints on available funding.
For further detail see Affordability.
After a decision has been made that a particular technology is affordable, the next step is to prepare a detailed budget. A budget needs to take account of both the immediate and the ongoing costs associated with the chosen technology.
There are essentially four components to a technology budget: the list of goods and services needed to be purchased, the cost of each item, the timeline showing the schedule of payments, and any expected savings to be achieved by adopting the new technology. Except in the case of items that are only to be used on one occasion and then disposed of, most items of technology will require ongoing funding to maintain and reuse them. When securing funding for technology it is important to ensure that funds are also secured for the life of the technology to pay for ongoing maintenance and reuse.
For further detail, including check lists of items to consider, see Budgeting.
Once a detailed budget has been prepared, the next step is to acquire funds from the appropriate government or non-government source. The success of this process will depend on the care taken to prepare the business case and the budget. Clear benefits identified in the business case, and a thoroughly prepared budget, are more likely to persuade sources of funds to provide the necessary cash.
The need for new technology will have to be 'sold' to funding authorities. The accompanying business case needs to set out the costs and benefits of introducing the technology. In many cases, technology will lead to increased costs. In these cases, the non-material benefits will need to be stressed, such as increases in accuracy, speed and efficiency. In other cases, particularly over the long term where technological applications replace costly manual processes, new technology may lead to substantially reduced costs. These cases are usually easier to 'sell', however care needs to be taken with the budget to ensure that all costs are factored in.
It may be possible in some situations to use innovative funding mechanisms, such as joint ventures or leaseback arrangements. In these cases care needs to be taken to ensure that the electoral management body behaves ethically.
Once agreement has been obtained to provide funds, it is important to ensure that funding is available in time for adequate development, testing and implementation of the new technology.
For further detail see Funds Acquisition.
Depending on the circumstances, international funding may be available. This will apply where external funding is an option, particularly where aid is being provided by other Governments or by Non-Government Organisations (NGOs). In these cases special issues may arise, such as foreign exchange issues, uncertainty of funding availability, or the potential for conflicts or impositions regarding, for example, the sourcing of suppliers.
For further detail see Use of International Funding.
When calculating budgets for the life of a project or a technology, depreciation and amortisation policies will impact on the calculations of costs and benefits, particularly in future years.
For further detail see Depreciation and Amortisation Policies.
At the end of the life cycle of an item of technology, the issue arises as to whether it is more economical to use or dispose of obsolete equipment. As improvement in computer technology accelerates, this issue can arise within a year or two of purchase. In some cases, particularly where the technology will continue to perform satisfactorily notwithstanding that it is obsolete, it may be worth retaining. In other cases, it may be desirable to upgrade technology quickly in order to gain some benefit from reselling the old equipment while it retains some value.
The issue of when to upgrade obsolete equipment must be taken into account when budgeting, as it will impact on the likely cost of the technology in the long term.
For further detail see Use or Disposal of Obsolete Equipment.
