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