2.13 DMO was established on 1 April 1998 with its main aim to carry out the Government's debt management policy of minimising the financing cost over the long term taking account of risk, and to manage the aggregate cash needs of the Exchequer in the most cost-effective way. As the government's treasury manager, DMO's aim, with HM Treasury, is to lead, develop and deliver the government's debt, cash and fund management objectives.
2.14 DMO is a relatively new organisation and is accustomed to driving through change, making active use of technology and has also generated a culture of innovation and continuous improvement. Its small size has enabled it to be flexible in adapting to new situations and requirements and it has achieved a smooth transition from initial growth to consolidation over the last nine years. DMO will deliver its VfM savings by:
• Investing in enhanced technology to further streamline processes and reduce support costs;
• Consolidating teams and slimming down some functions;
• Increasing the skills of staff and making targeted recruitments to reduce need for contractors; and
• Negotiating reductions in non-pay costs with IT and other suppliers.
2.15 DMO intends to broadly retain the same organisational structure, with more focused teams and enhanced usage of technology, as it is imperative that as an operational entity it maintains the same high level of operational excellence and resilience to interruption.