The document discusses the challenges and improvements in financial management within the UK government, emphasizing the strategic role of finance professionals in decision-making. It outlines CIPFA's current efforts and future plans to enhance financial management practices, including training and support for finance professionals. Recommendations include integrating finance into public service design and ensuring quality management information flows between departments.

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?