Rob Whiteman presentation to CIPFA Central Governmet Conference

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Rob Whiteman’s presentation to the @CIPFA Central Government Conference on the future of Financial Management in Government.

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  • Govt’s business has always been challenging. In these unprecedented times of fiscal contraction– we’ve all seen the challenges…
  • Rob Whiteman presentation to CIPFA Central Governmet Conference

    1. 1. www.cipfa.org CIPFA Rob Whiteman 18 September 2013 1
    2. 2. www.cipfa.org Agenda  Landscape / challenges  CIPFA Thinks …  What CIPFA is already doing  What we plan to do?
    3. 3. cipfa.org.ukwww.cipfa.org Landscape
    4. 4. www.cipfa.org NAO report - Improvements in Government FM  Greater recognition of the strategic importance of the finance profession  Finance Leadership Group has established the Finance Transformation Programme to position finance at the centre of decision-making  Qualified finance professionals are better represented at senior levels in Whitehall  Improvements in key financial processes, such as the Clear Line of Sight and WGA initiatives  Government taking positive steps with the aim of improving management information.
    5. 5. www.cipfa.org NAO report - Scale of FM challenges  Redesigning and transforming public services so they operate sustainably in context of further spending reductions and demand increases.  Treasury to provide more effective central leadership, to support public bodies in providing services at permanently lower cost.  Chances of success much greater if financial managers are central to decision-making.  Integrate FM fully within processes to design and implement effective target operating models  Financial impacts of all options should be key factor in decision-making by finance and non-finance professionals alike.
    6. 6. www.cipfa.org How HMT can within existing budgets and preserving single point accountability to Parliament for financial stewardship that the accounting officer provides  Improve quality and consistency of management information flows between Treasury and departments to ensure these are of the right quality to enable effective risk-management and decision making across Government  Strengthen the role of the Head of the Government Finance Profession in promoting and assuring improved financial capability – skills, systems and processes – across government (considering also the interaction of this role with the Treasury) HMT FM Review - 1
    7. 7. www.cipfa.org HMT FM Review - 2 How HMT can within existing budgets and preserving single point accountability to Parliament for financial stewardship that the accounting officer provides  Ensure right levels of delegated authorities and approvals are in place to ensure both tight spending control and appropriate flexibility for those departments with proven financial management capability  Create a more streamlined, coherent set of central appraisal and approval process for projects and programmes outside those delegations 7
    8. 8. www.cipfa.org CIPFA Thinks … 1 Capital and revenue expenditure decisions must be taken in a coherent and joined-up way that is proportionate to the level of financial and other risks involved in both the short and longer terms by:  Being set in the context of short, medium and long term financial and delivery risks  Considering capital and revenue impacts together  Replacing fixed delegation limits with ranges  Linking delegation levels with risk assessments  Drawing on FM model outputs and relevant internal and external audit reports  HMT matching skills and experience to the risk and complexity of departments  Requiring medium term expenditure frameworks from all major departments
    9. 9. www.cipfa.org The quality and consistency of management information flows between departments and the Treasury needs to be improved through:  Appropriations on the basis of output targets  Increased use of shared services  Widespread adoption of the Common Chart of Accounts  Mid-year closedowns and coordinated intra-government balance agreement processes  Incentivising accurate expenditure and cash flow forecasting  Publishing FM Model assessments and agreed action plans CIPFA Thinks … 2
    10. 10. www.cipfa.org The role of the Head of the Government Finance Profession needs to be strengthened through:  Being a full-time role based in HM Treasury  Having a dotted line professional leadership relationship with all DGs Finance, including input to their appraisals based on the quality of information and other interactions with HMT  Being directly involved in the development of the budgetary and performance frameworks  Finance being recognised as fundamental to the management of Government rather than just another profession  Ensuring the FM Model is run regularly in all main departments, and having access to the results  Evaluating the FM Model results to develop best practice guidance and training  Monitoring progress of FM Model implementation plans  Coordinating CPD training to ensure balance and that FM weak spots are addressed CIPFA Thinks … 3
    11. 11. cipfa.org.ukwww.cipfa.org What’s CIPFA already doing?  Supporting finance professionals across government ― Training/CPD ― Conferences ― Talent Programmes  Central Government Panel  CIPFA FM Reviews  Financial Management Panel  Support Treasury/FLG ― review/consultation ― Talent programme
    12. 12. cipfa.org.ukwww.cipfa.org What we plan to do  Support HMT Review  Use our pan public sector expertise to support Government bodies – lead innovation and using unique position to bring sectors together  Be a champion for public service  Promote good PFM across all sectors  Start a debate about the role of the CFO and need for protection of officials
    13. 13. Questions?

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