Financial Management Reform Framework

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Financial Management Reform Framework
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Outline

• Backdrop of the Public Sector Reforms
• Why change the current system?
• New Financial Management policy framework
• Project Implementation timelines
• Key Issues to Note

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• Civil Service
• Reform
• Human resource
• management

Public Enterprise Reform - Reorganization of
public entities
Public Sector Reform

• Financial Management
• Reform
• Better management of
• Government resources

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ii Why Change the Current System?

• Key Problems
• Translating Government policies into action
• Input focused
• Centralised controls
• Poor financial management and budget compliance

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Planning
Allocating Resources
Reporting
Reporting
Managing Performance Resources
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iii FMR framework

• Objective
• Seeks to put in place a better performing budget
  and financial management framework that
• Adopts a performance focus
• Strengthens accountability
• clarifying the roles of key stakeholders
• improving the reporting processes

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Performance Focus
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Accountability Framework
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Performance Focus and Accountability
Management Cycle
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Performance Focus and Accountability
Strategic Development Plan Strategic Budget
Statement
Whole of Government
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Performance Focus and Accountability
Annual Corporate Plan
Agency Level
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How do we Assess Performance - WOG?
Strategic Development Plan (3 yr rolling plan)
Before
After
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How do we Assess Performance - Agencies?
Annual Corporate Plan
Before
Annual Report
After
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Summing it up for WOG and Agencies!
Whole of Government
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Authorities Minister for Finance

• Overall management of Government finances
• Issue Finance Instructions
• Surcharges
• Write offs
• New Initiatives
• Approve Carry Over
• Approve Revenue Retention

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Authorities Chief Executive Officers

• Proposed Initiatives
• Change the mix of resources to adjust to changing
  circumstances
• Towards global appropriations
• Increase expenditure limits
• To set their own delegation limits
• Role of Agency Tender Boards
• Revenue retention
• Benefit from commercial activities
• Sale of surplus agency assets

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iv Broad Implementation Plan 2004 - 2006
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Proposed FMR/FMIS Timeline - 2004
2nd Quarter
1st Quarter
3rd /4th Quarter
Legislation
FMIS
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Proposed FMR/FMIS Timeline - 2004
2nd Quarter
1st Quarter
3rd /4th Quarter
Select Training Provider
Develop training materials
Training
Begin Implementation of training program
Select Communication consultant
Communications
Develop Communication Plan
Begin Implementation of Plan
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v Key Issues to Note

• Take ownership of the reforms
• Appoint a Change Manager from Senior Management
  team
• Managing peoples perception of the change
• On-going training