NIO Presentation

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NIO FASTER CLOSING APPROACH CIPFA Event 9 May
2008
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Faster Closing Background - Why

• Benefits of faster closing
• More timely information
• Better decision making -Departments HMT
• Drive efficiencies and better management
• Greater professionalism of financial mgt.
• Plans started January 2003 for delivery of
  2005/06 RA by summer recess

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Faster Closing Background - When
Faster Closing Timetable (January 2003
revised Feb 2004)
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Faster Closing Background - How

• Action required to deliver faster closing?
• Improved Year End procedures
• Consolidation templates redesigned
• Client Liaison schedule agreed with NIAO
• Reduction in correcting journals post year end
• Development of fixed asset accounting system
• Staff restructuring and recruitment of additional
  staff
• In General approach was to perform work
  quicker

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Faster Closing Background - What

• What Happened in 2004/05?
• Deadline to lay accounts was 31 Aug 2005
• Significant delay by one agency
• Loss of key staff mid July
• Lack of project management
• No buy-in from senior management to process
• Result Accounts only just made 31 Aug deadline
  with significant effort needed by Department
  and NIAO.

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Faster Closing New Approach - Why

• Faster Closing Summer Recess plan
• Project Management of entire process
• Greater senior management buy-in
• Greater co-ordination between Department,
  Agencies and NIAO (NAO and Treasury)
• More open communication sort out issues early

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Faster Closing New Approach - How

• Faster Closing Summer Recess plan
• Project Structure Established PIDs Project
  Plans
• Agreement from all Department, Agency and NIAO
• Letters sent from Department AO to Agency AOs and
  from Department FD to Agency FDs
• Meetings Department, Agencies and NIAO
  timetabled
• Communication process established
• Co-ordination of overall process e.g. staffing
  - no weak links
• Review of process by Audit Committees

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Faster Closing New Approach - How

• Faster Closing Summer Recess plan
• Interim Audit in February to audit transactions
• Rolled forward template prepared and audited in
  advance
• Alignment of various Audit Committees to review
  Accounts and AR
• Completion of hot review by Department and NIAO
• Project closure and lessons learned link to
  following year
• Continual review and improvements Quarterly
  Accounts, staffing review, emerging issues and
  other impacts (WGA)

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Faster Closing New Approach - When

• Key Tasks and Deliverables NIO (2006/07 dates)
• Agency accounts complete by 4 May
• Core Accounts complete by 11 May
• Consolidated template prepared by 1 June
• First Draft RA prepared by 8 June
• Revised draft RA prepared by 15 June
• Final RA prepared by 26 June
• Accounting Officer signed 2 July
• Accounts laid in Parliament by 11 July

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Faster Closing New Approach - When

• Key Tasks and Deliverables NIAO / NAO
• Audit of agency core substantially complete
  and audit adjustments available by 8 June
• Audit of RA complete and final audit
  adjustments available by 22 June
• Accounts sent to NAO for review by 3 July
• Certification by 9 July

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Faster Closing New Approach - Who

• The people involved in the process
• Department/Agency Board/Audit Committee
• Department/Agency Accounting Officers
• Department/Agency FDs and Finance Staff
• Other staff Directors etc FRS 8 12, AR,
  SIC etc
• NIAO staff and sub-contracted out auditors
• Treasury, NAO, other Departments etc

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Faster Closing New Approach - What

• What Happened in 2005/06 2006/07?
• 2005/06 Accounts laid on 20 July (FReM Year)
• 2006/07 Accounts laid on 11 July
• Improvement in dates allowed more focus on WGA
  which moved to 31 July for 2006/07
• Result Accounts completed within deadlines
  with provision for slippage for any unforeseen
  problems

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Faster Closing New Approach - CSFs

• The Critical Success Factors?
• Senior Management Buy-in
• Robust Project Management throughout process
• Close open working relationship with NIAO
• Commitment from all involved
• Working smarter NOT quicker

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Faster Closing - Questions