David Allen

Implementing the Financial
Management Review
David Allen
Deputy Head of Government Finance
Outline
1.
The Financial Management Review and its recommendations
2.
The case for change
3.
Our aims and priorities on a slide
4.
Implementation through four DG-led committees
5.
Where we are trying to get to by the end of 2014
6.
2014 and beyond
7.
Questions
UNCLASSIFIED
2
1. The Financial Management Review and its recommendations
Government accepted the three key recommendations of
•
Launched by Chancellor and Chief Secretary.
•
Richard Douglas and Sharon White led the
review. Lord Sainsbury acted as external
advisor.
•
Review team consulted widely – with UK and
overseas finance officials, private sector
experts, and finance bodies.
•
The review took as its starting assumption
that the current parliamentary and
Accounting Officer framework would
remain.
•
The review looked at three main areas:
the review
Leadership
Controls
Management Information.
3
2. The case for change
HMG is starting from a good place & we are now strong at reporting
…and we know that organisations with strong financial
and accounting for what we spend…
management outperform their peer group*
•
First Whole of Government Accounts published in 2011.
5 key traits set the top performers’ organisations apart:
•
UK’s financial management arrangements rank 3rd out of 100 countries for
transparency
1. Well-developed planning and forecasting processes.
2. Strong analytical talent in finance that’s able to partner with
…But finance isn’t integrated into decision making & we don’t yet
other areas of the business.
have a good understanding of what we get for what we spend…
• In a November 2013 survey of finance professionals only 22% agreed that
finance was involved in decision making at the right time.
3. Adoption of enterprise-wide information standards.
4. Strong risk management.
5. Effective identification of new opportunities for revenue
growth.
•
In a survey* of 576 CFOs from around the globe, IBM identified a group of superior performers. Their finance
organisational effectiveness and revenue and profit rankings far exceeded their competitors.
4
3. Our aims and priorities on a slide
5
4. Implementation of the review recommendations is being
delivered through four senior committees
Chief Secretary to the Treasury
Financial Management Review Steering Board
(chaired by new Director General Spending and Finance:
Julian Kelly)
People
Implementation
Committees
Review
recommendations
Finance
Operating Model
David Williams
(MoD)
Ann Beasley (MoJ)
Leadership
Controls
Data Structures
Howard Orme
(BIS)
Performance &
Planning
Mike Driver (DWP)
Management Information
6
Key dates & meetings
5. Where we are trying to get to by the end of 2014
15th Sept update
sub to CST
15th Oct
FMR Committee
Chairs
8th Oct
FLG
1st Oct FMR
Board
9th Oct
NAO seminar
11th-12th Nov
Finance
Conference
28th Oct FD &
DG event
One year on
document
FMR
Committee
meetings
10th Dec
FLG
12th
Nov
FLG
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
FMR Committees meeting for 2nd
or 3rd time, discussing and
agreeing delivery plans, priorities
and success measures for their
work.
1st FMR Board with Lord Browne,
BP & Unilever CFO’s. Share
delivery plans with the Public
Accounts Committee.
Annual finance training
conference in Birmingham for
finance staff. 700 registered.
Opportunity to launch and test
committee work
One year on document setting
out progress since publication of
the review and vision for
2015/16.
•
Deliverables & outputs
29th Sept:
FMR Committee
Chairs
10th Sept
FLG
Capability and risk
assessment: MoJ and Defra
pilots completed and 2nd
round launched
•
CIPFA qualification launched
•
Costing projects underway
•
Paper on planning and
performance framework
•
Government management
accounts mocked up
•
Forecasting methodology,
principles and targets agreed
•
Launch CIMA principles
•
Launch Finance Academy
•
What a good FD looks like
•
Draft target operating model
shared
•
Pilot centres of excellence
announced
•
Networks of excellence
established
•
Standards for benchmarking
across HMG
•
Engagement plan for 2015
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6. We are looking to progress things quickly but this is a long term
programme of work
By end 2014
• Define priorities and action plans
• Pilots tested over the summer and
completed
• Frameworks finalised
• Some practical tools ready
By Spending Review 2015
• More practical tools in place
• Frameworks iterated
• Embed changes in chosen
departments
SR 2015 and beyond
• Review and refine frameworks
• Embed changes across all
government
• Seek continuous financial
management improvement
UNCLASSIFIED
8
Questions?
9

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