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

1. www.cipfa.org
CIPFA
Rob Whiteman
18 September 2013
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2. www.cipfa.org
Agenda
 Landscape / challenges
 CIPFA Thinks …
 What CIPFA is already doing
 What we plan to do?

3. cipfa.org.ukwww.cipfa.org
Landscape

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. 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. 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. 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
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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. 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. 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. 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. 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. Questions?