Improving Public Financial Management

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Improving Public Financial Management Steve
Freer Chief Executive, CIPFA Japan Local
Government Centre 24 June 2008

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(No Transcript)
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Better FinancialManagement
Choice
Targets
CustomerFocus
Efficiency
Business Process Re-engineering
Partnership
Best Value
Competition
PerformanceManagement
Benchmarking
Privatisation
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Financial Management at the Heart of Successful
Organisations
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So World Class FM is about....

• Much more than a qualified DoF on the Board
  (though thats important)
• Whole Board/whole organisation engagement
• Deep embedding
• Value-assuring every business decision

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Financial Management Styles where are we on
the continuum?

• Securing stewardship emphasis on control,
  probity, accountability, compliance
• Supporting performance - responsive to
  customers, efficient and effective, committed to
  performance
• Enabling transformation strategic, future
  oriented, proactively managing change and risk,
  outcome focused, receptive to new ideas.

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Efficiency How can we contribute?

• Efficiency within the finance function
• Contributing ideas
• Hard-edged analysis and evidence
• Framework of incentives and support
• Capturing the savings achieved

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Shared Services How can we contribute?

• Progress within the finance function
• Exploring options
• Brokering collaboration
• Ready-to-drive vehicles
• Framework of incentives and support

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A More Realistic View of the Delivery Options
Shared Service (Public/private/ voluntary
collaboration)
Shared Service (Public collaboration)
Direct Provision
Private Provision
A Dynamic Continuum?
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Key Technical Reforms

• IFRS
• Whole of Government Accounts
• Whole system FM

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• The Importance of
• Both Hard and Soft Wiring
• Good Financial Management
• in Organisations

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The Hard Wiring

• Management structure and reporting lines
• Definition of roles and responsibilities
• Systems and controls
• Internal and external audit

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The Soft Wiring

• Influence, persuasion
• Personal profile and relationships
• Track record, results
• Understanding of the business