Issue 8 November 2015

1. Welcome
Dear Colleagues
Welcome to the November newsletter. Over the last few months departments have been busy supporting
delivery of the Spending Review. It has been great to see finance at the heart of these discussions, playing a key
role in influencing decision making based on robust evidence and financial management information. A huge
thank you. Next year the focus will be ensuring we help departments deliver the objectives in Single
Departmental Plans within their allocated settlements.
As we approach the end of the year, I encourage you to think about your own personal development. This should
go wider than just formal training so think about attending seminars or joining networks that will broaden your
knowledge. Another great way to learn is simply identifying who has a similar role to you, or which organisation is
doing something you would like to know more about, and just organising to go and talk to them.
We have a range of opportunities across the finance function from Knowledge Networks; to our costing seminars;
the Government Finance Insights Talks at the Institute for Government; our annual Government Finance
conference in January. In response to your feedback we’re looking to put on more events outside of London in
2016.
As well as providing training to existing finance professionals (see the latest on the Finance Academy) we are keen
to give those who do not hold a finance qualification the opportunity to gain a range of finance skills. We have
been working with CIPFA, to develop a certificate in Central Government Finance. We are also looking to
launch further cohorts of the accelerated CIMA qualification to Deputy Directors in the new year. More details
will follow from your Finance Directors and departmental Heads of Finance Professionalism.
Thank you to everyone who submitted a nomination for the Government Finance Awards I look forward to
announcing those shortlisted in our next edition.
David Allen, Deputy Head of Government Finance
Spending Review 2015
Last Wednesday, the Chancellor announced the results of the 2015 Spending Review, which sets out the
government’s spending plans for each year of this Parliament. Compared to the Summer Budget, the Office for
Issue 8 – November 2015
#govfinance
govfinance@hmtreasury.gsi.gov.uk

2. Budget Responsibility now forecasts higher tax receipts and lower debt interest payments. This improvement in
the forecast means that the overall consolidation needed to deliver a surplus is now £18bn, lower than £20bn
forecast at Summer Budget. The Spending Review prioritises, among other things, national security, the NHS,
schools, and pensions, and emphasises important cross-cutting themes such as devolution, opportunity, long
term investment and reform and efficiency across the public sector.
Although the fiscal picture has improved and good progress has been made on the fiscal consolidation over
recent years, the job is not yet done. The Spending Review announces reforms to deliver consolidation of £21.5
billion savings from departmental spending, and £9.5 billion investment in the government’s priorities by 2019-
20.
The Spending Review speech may be over and the document published, but there is still more work to do. Over
the next four years departments will take forward reforms to the way they, and wider public services, work to
deliver this significant element of overall consolidation. The next stages of developing and implementing these
reforms are crucial and will ensure the government remains on track to deliver a surplus in 2019-20. Good
financial management will be at the heart of delivering on these plans.
Implementing the Financial Management Reform Programme
In December 2013, the Financial Management Review was published. This set up an ambitious reform programme
which is being delivered through four DG led cross government committees. Each month we feature updates from
some the priority areas.
Management Information (MI) Update
The quarterly MI Town Hall took place on November 10th
. This event is for everyone across Government working
in MI to meet and discuss shared problems and how to solve them.
Attendance was high and the new, interactive format was well received. The Town Hall fulfilled its objectives in
identifying the most important steps to be taken by the MI community to improve MI across Government. Work
is already underway to set up working groups to follow up on decisions made at the Town Hall.
Considerable support was shown for the objectives of the Data Approvals Board and Consolidated Data Requests
if these can be effectively implemented with a strong mandate. The aim is to use both to reduce the data burden
on departments and improve the quality of data.
The MI Team identified that the value of information for decision making could be greatly increased by ensuring a
more consistent flow of information from the centre to departments. This was supported by Departments and
the MI team has already started work on an MI tool that will allow departments to benchmark themselves against
other departments in several aspects of their business, such as finance, estates, and HR. Departments are being
invited to test the initial prototype. If you would like to get involved, please contact Ruth Zlochevsky.
If you would like to be involved in the work to improve MI across Government or the next Town Hall, please
contact Anais Bauduin.
Update on the Government Finance Academy
The Finance Academy, led by Samantha Foley, now has a small dedicated team in place, hosted at the
Department of Health. The team are working closely with CSL, other government departments, the major
accountancy institutes and professional services firms; to identify and leverage the best way to deliver learning
and development for the finance profession.
The current focus is developing content for five key topics which have been identified as priorities across
government; Commercial Skills for Finance, Forecasting, Business Cases, Business Partnering and Data
Visualisation. The team are also creating a product to help everyone navigate a career within and through the
profession, and a tool to assist everyone to identify when specific learning opportunities might be the most
beneficial.

3. At the conference in January, early ‘taster’ sessions will be provided for some of these areas. This is a really
exciting development for the profession, and we look forward to developing an Academy which truly reflects the
needs of our diverse finance community.
We are very open to your ideas and if any of you would like to help with this, via shaping or reviewing content,
please do not hesitate to get in touch. We are particularly interested if anyone has expertise in any of the five
early topics; you can find us at governementfinanceadacemy@dh.gsi.gov.uk.
New LinkedIn Profession Network for Government Finance and
Internal Audit Professional Trainees
Whether you are now qualified, alumni of a scheme, a member of the Financial Management Development
Scheme (FMDS), Fast Stream or another trainee you can request to join the network.
Objectives of the network are:
 Connect with current and past trainees to help develop professional networks and increase your LinkedIn
visibility.
 Provide access to relevant news, volunteer opportunities and best practice.
 Opportunity to discuss and share study tips, experiences, helping you find other trainees or alumni who can
offer advice.
 Keep in touch with people as they move between job roles.
 Promote specialist networks.
Opportunity to get involved - to ensure the network is effectively utilised we are looking for your help to both
lead on and support content/updates for the network. If you would like to get involved please contact Dave
Barnett, DAVID.BARNETT@DWP.GSI.GOV.UK.
Technical Update
 The FRAB meeting was held on 19th
November 2015; minutes and associated papers of the meeting will be
published shortly. Click here to view all published minutes and associated papers from FRAB meetings.
 Mid–year reporting guidance was issued to those departments subject to the single departmental plan regime
in October 2015. Parliament’s expectation is that 2015-16 reports will be published by 17 December.
 Departments should look out for the updated 2015-16 FReM and PES paper for the annual report and
accounts which will be issued in December 2015.
 Here is an update on the introduction of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts
with Customers’ to the public sector: HM Treasury conducted an initial impact consultation with Departments
during October and received a number of responses considering the implications of the Standards on the
public sector. These were collated and presented to the FRAB at the 19th November meeting which included
options for transition and consideration of interpretations and adaptations requirements. HM Treasury will
evaluate the responses from the consultation and comments from the FRAB before preparing Exposure Drafts
for both Standards and will be asking for departments’ assistance with this in the New Year.
 Introduction of the 2010 European System of Accounts (ESA10) expenditure on research and development
(R&D). ESA10 introduced the requirement for R&D expenditure to be treated as capital within the National
Accounts. Departments should note that the definition for R&D under ESA10 does not match the International
Financial Reporting Standards (IFRS) definition applicable to the departmental accounts. HM Treasury has
identified an approach to manage this misalignment which is currently passing through the formal governance
processes agreed under Clear Line of Sight. HM Treasury's intention is to implement this change in budgets
from 2016-17 onwards and guidance has already been issued to Departments. HM Treasury would like to
encourage departments to give early consideration to the data requirements and quality assurance
arrangements to ensure a smooth implementation process. If any departments has not seen the
guidance, you can request a copy from resource.accounts@hmtreasury.gsi.gov.uk.
Interesting articles
Articles which may be of interest:
Assessing how government uses evidence to make policy

4. Driving Down IT Costs for the Public Sector
Spending Review and Autumn Statement 2015: key announcements
Getting better at getting things done – launching the Implementation ‘Profession’
Visit the Institute Pages for more technical releases, articles, reports and research which may be of interest:
AAT
ACCA
ICAEW
CIPFA
CIMA
ICAS
Dates for your Diary
14th
December, 13:00-14:00 - Auditorium Left, HMT 1 Horse Guards Road London SW1A 2HQ: Costing Project
Seminar - Mental Health: A comprehensive look at the cost of mental health services, other relevant NHS
services, other government services and non-government spend, to better understand the dynamics of this
complex area of spend Click here to register
19th Jan 2016 11:00-13:00 HMRC Room 503, Bush House, The Strand, London WC2B 4RD: Technical, Advisory
and Forensic accounting Knowledge Networking Event – If you use technical accounting skills to review,
investigate and examine the financial statements or information of businesses why not share your knowledge and
hear the perspective of colleagues from within government. This session will include an Insolvency discussion and
excel skills used in investigative accounting. Please contact the network's coordinator Sue Taylor on
sue.taylor2@hmrc.gsi.gov.uk by 8 Jan 2016 to reserve your place. Places are limited. Join us on Yammer within
the 'FMR knowledge networks' groups. Note that this network is separate to ALEFA which relates to criminal
investigations, forensic accounting and related matters.
28th
and 29th
January 2016 – Government Finance Event – There are still some places available visit our website
for more information.