Transformation Transformation Financial Management Reform in the NSW Public Sector Institute of Chartered Accountants Australia 4 December 2013
TransformationTransformation
Financial Management Reform in
the NSW Public Sector
Institute of Chartered
Accountants Australia
4 December 2013
Transformation
Financial Management
Transformation – End State
RULESGovernance
and compliance
TOOLSInformation
systems
PEOPLECapability, roles and
responsibilities
PROCESSBudget,
program and asset cycles
New legislation supports clear, flexible and
effective compliance regime
Improved processes to support more strategic
ERC
New systems improve transparency and give decision-makers the
information they need
Accountability aligned with authority, and capability improved
sector-wide
TransformationFinancial Management Goals
AFFORDABILITYSustainable
aggregate fiscal position
Better services & stronger economy
PRIORITYResources
allocated to government
priorities
VALUEValue for
money for taxpayers
GOAL RISK
AAA rating, service &
infrastructure commitments
at risk
Fiscal gap and debt growth, unclear prioritisation,
untested value for money Unreliable data,
inadequate information, risk of
system failure
Transformation
4
Goal 1: Affordability
AFFORDABILITYSustainable
aggregate fiscal position
PRIORITYResources
allocated to government
priorities
VALUEValue for
money for taxpayers
Better services & stronger economy
Transformation
5
Goal 2: Priority and Goal 3: Value
AFFORDABILITYSustainable
aggregate fiscal position
PRIORITYResources
allocated to government
priorities
VALUEValue for
money for taxpayers
Better services & stronger economy
Transformation
6
Program Reporting
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
7
Budget Management
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
8
Resource Management
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
9
Risk Management
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
10
Financial Administration
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
11
Governance and Legal
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
12
Capital Management
POLICY FRAMEWORK
Governance & Legal
Risk Management
Financial Administration Budget Management
Program Reporting
Capital Management
Transformation
Financial Management Transformation
– Tools (Information Systems)
RULESGovernance
and compliance
TOOLSInformation
systems
PEOPLECapability, roles and
responsibilities
PROCESSBudget,
program and asset cycles
New legislation supports clear, flexible and
effective compliance regime
Improved processes to support more strategic
ERC
New systems improve transparency and give decision-makers the
information they need
Accountability aligned with authority, and capability improved
sector-wide
Transformation
Financial Management Transformation – People (capability, roles and responsibilities)
RULESGovernance
and compliance
TOOLSInformation
systems
PEOPLECapability, roles and
responsibilities
PROCESSBudget,
program and asset cycles
New legislation supports clear, flexible and
effective compliance regime
Improved processes to support more strategic
ERC
New systems improve transparency and give decision-makers the
information they need
Accountability aligned with authority, and capability improved
sector-wide
TransformationTiming
Baseline (to February 2014):
– Develop and submit a fully costed business
case, supported by consultation to develop an
agreed policy position, operating model and IT
Strategy
Implementation (February 2014 to end 2016)
– Implement the policy, ICT, process and
organisational changes identified in the
Business Case
Transformation
Questions/Comments