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A view from the Board Table Simon Judge Finance Director, DCMS GFP Trainee Conference Brighton 10 July 2009.

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Presentation on theme: "A view from the Board Table Simon Judge Finance Director, DCMS GFP Trainee Conference Brighton 10 July 2009."— Presentation transcript:

1 A view from the Board Table Simon Judge Finance Director, DCMS GFP Trainee Conference Brighton 10 July 2009

2 Department for Culture, Media and Sport Improving the quality of life for all 2 What am I going to talk about? Myself How I qualified (and why) My current job and some of the challenges, based loosely around my first impressions, and attempts to set some priorities Reflect on what these challenges might mean for you today, at your stage in your career. I am assuming you aspire to something Questions and comments

3 Department for Culture, Media and Sport Improving the quality of life for all 3 My experience to date Maths degree - very useful. HM Treasury - wide range of jobs, including poll tax, privatisations, VAT, IT DWP - various Spending Reviews DCA - merger (with part of Home Office) to form MoJ

4 Department for Culture, Media and Sport Improving the quality of life for all 4 Project management – creating MoJ

5 Department for Culture, Media and Sport Improving the quality of life for all 5 My experience to date Maths degree - very useful. HM Treasury - wide range of jobs, including poll tax, privatisations, VAT, IT DWP - various Spending Reviews DCA - merger (with part of Home Office) to form MoJ DCMS - the finance director (not a) Small department - only 500 people. On the edge of viability - read our capability re-review. 20 in finance About 60 NDPBs and other bodies, most with own Accounting Officer I think I am supposed to lead the finance function across them all - some bigger than we are, some are better run £1.5 billion resource, and £200m capital – tiny share of the budget

6 Department for Culture, Media and Sport Improving the quality of life for all 6 DEL £340 bn Debt Interest Benefits & tax credits DCMS AME £270 bn DCMS within total public spending

7 Department for Culture, Media and Sport Improving the quality of life for all 7 My experience to date Maths degree - very useful. HM Treasury - wide range of jobs, including poll tax, privatisations, VAT, IT DWP - various Spending Reviews DCA - merger (with part of Home Office) to form MoJ DCMS - the finance director (not a) Small department - only 500 people. On the edge of viability - read our capability re-review. 20 in finance About 60 NDPBs and other bodies, most with own Accounting Officer I think I am supposed to lead the finance function across them all - some bigger than we are, some are better run £1.5 billion resource, and £200m capital – tiny share of the budget Olympics (£9.3 billion programme), BBC (£3.3 billion), Lottery (£1.7 billion) all on top. I only get involved when things go wrong

8 Department for Culture, Media and Sport Improving the quality of life for all 8 Getting qualified... Why and how? Lots of experience - but wouldnt get a board level job Chose the Warwick Business School / CIPFA route See article by David Wright (DWP) in Trainee Gasette No 1 Warwick diploma: how to be a social scientist. Useful for many more senior managers - strategy, leadership, governance learn to write an essay learnt how to walk around a problem research-based dissertation Manageable finance element: investment appraisal, tax and financial accounting. Governance module most useful to me so far Friendly and small group. Graduated on Monday

9 Department for Culture, Media and Sport Improving the quality of life for all 9 Some newly-qualified accountants...

10 Department for Culture, Media and Sport Improving the quality of life for all 10 Some newly-qualified accountants...

11 Department for Culture, Media and Sport Improving the quality of life for all 11 Getting qualified... Why and how? Lots of experience - but wouldnt get a board level job Chose the Warwick Business School / CIPFA route See article by David Wright (DWP) in Trainee Gasette No 1 Warwick diploma: how to be a social scientist. Useful for many more senior managers - strategy, leadership, governance learn to write an essay learnt how to walk around a problem research-based dissertation Manageable finance element: investment appraisal, tax and financial accounting. Governance module most useful to me so far Friendly and small group. Graduated on Monday CIPFA final test: case study. (What does it test ?)

12 Department for Culture, Media and Sport Improving the quality of life for all 12 So what are the issues ? Get organised Keep learning Governance and culture

13 Department for Culture, Media and Sport Improving the quality of life for all 13 Issues (1) – get organised Manage your boss - management review, sign off return to HMT, escalate stuff when you get stuck, help us to prioritise (eg technical assistance to our NDPBs) Customer focus - some basic disciplines on solving problems. Know a bit about a lot across corporate services Learn how to manage change projects. Backward planning, take some risks (eg CSR/SR), acknowledge we are less than perfect, but accept less than perfection

14 Department for Culture, Media and Sport Improving the quality of life for all 14 The starting position WORLD CLASS USELESS

15 Department for Culture, Media and Sport Improving the quality of life for all 15 The starting position WORLD CLASS USELESS Internal controls Statutory accounting In-year reporting and control Forward planning

16 Department for Culture, Media and Sport Improving the quality of life for all 16 The starting position WORLD CLASS USELESS

17 Department for Culture, Media and Sport Improving the quality of life for all 17 The new FD arrives.... WORLD CLASS USELESS

18 Department for Culture, Media and Sport Improving the quality of life for all then common sense breaks out WORLD CLASS USELESS

19 Department for Culture, Media and Sport Improving the quality of life for all 19 Issues (1) – get organised Manage your boss - management review, sign off return to HMT, escalate stuff when you get stuck, help us to prioritise (eg technical assistance to our NDPBs). Customer focus - some basic disciplines on solving problems. Know a bit about a lot across corporate services Learn how to manage change projects. Backward planning, take some risks (eg CSR/SR), acknowledge we are less than perfect, but accept less than perfection Make finance interesting, useful, and consequential - eg risk management Write policies, design systems, or understand and tackle culture? Wheres the leverage? Sit at your desk, or get out there and talk to people? Look for quick wins and for people to be defenestrated

20 Department for Culture, Media and Sport Improving the quality of life for all 20 Issues (2) – keep learning Work with other specialists eg economists, lawyers, statisticians, estates, HR, procurement, communications etc etc Welcome others into finance – dont be an exclusive priesthood Look at how others simplify issues. Jargon is not always necessary, and not always helpful Look at other organisations – both similar and different. Not necessarily hugely time consuming. Feed thoughts back on how might do things better here Do a non-finance job, for a bit Learn about public sector finance systems

21 Department for Culture, Media and Sport Improving the quality of life for all 21 Issues (3) – governance & culture Understand how your organisation is supposed to work, and how it does work in practice. If you dont know, ask and keep asking. Confusion leads to understanding Governance disciplines are important – tend to reside in finance (but not mandatory) – for example in DCMS loads of others need to get involved Think about trust, versus formal accountability Be clear what you do and what you dont. This requires resilience (and good customer care skills to say No) Understand what the FD role really is – eg importance of single set of books, and of key financial judgements (slippage). Look for areas where FD/ you can be a bit awkward – eg retrospective approval

22 Department for Culture, Media and Sport Improving the quality of life for all 22 Conclusion Doing a formal qualification is useful – but not always in the areas you expect Finance is interesting and you must make it so for non- experts. The function is crucial to running any organisation, and planning its future Reflect on you learn stuff, how you think about issues, how you behave with colleagues, customers, senior managers What does that mean for your skills gaps and how you behave? What are you going to do about this? Harry can help!

23 Department for Culture, Media and Sport Improving the quality of life for all 23 Conclusion Doing a formal qualification is useful – but not always in the areas you expect Finance is interesting and you must make it so for non- experts. The function is crucial to running any organisation, and planning its future Reflect on you learn stuff, how you think about issues, how you behave with colleagues, customers, senior managers What does that mean for your skills gaps and how you behave? What are you going to do about this? Harry can help! Questions and comments please

24 Department for Culture, Media and Sport Improving the quality of life for all 24

25 Department for Culture, Media and Sport Improving the quality of life for all 25 Tax and spend as a share of GDP CSRSR

26 Department for Culture, Media and Sport Improving the quality of life for all 26 Public spending - capital & current Public sector net investment will fall to 1¼% of GDP by Proceeds from additional assets and property sales available to supplement capital budgets Current spending will grow by 0.7% in real terms each year in next SR ( to ). [1.8% at Budget 08: 1.2% at PBR November 2008] Additional efficiency savings allowing the Government to focus resources on front-line public service priorities.. CSR SR CSR SR

27 Department for Culture, Media and Sport Improving the quality of life for all 27 What does 0.7% mean for DCMS ? : pages DEL £340 bn Debt Interest Benefits & tax credits DCMS

28 Department for Culture, Media and Sport Improving the quality of life for all 28 What does 0.7% mean for DCMS ? : pages DEL £340 bn Debt Interest Benefits & tax credits DCMS AME £270 bn

29 Department for Culture, Media and Sport Improving the quality of life for all 29 Response (1) - in the CSR period £5 billion extra value for money savings in announced in the Pre-Budget report. Detailed split in the Budget (pages ). DCMS contribution is £20m - our fair share. Secretary of State has written with details to the organisations affected, setting out his approach. Also toughening of policy on public sector pay, including for NDPB Chief Executives (page 127). Reviewing capital budget, which is over-committed in CSR period, and creating new Investment Committee. Need urgently to look forward to next SR period. Maximising DCMS contribution to skills & jobs agenda (page 95)

30 Department for Culture, Media and Sport Improving the quality of life for all 30 Launched a year ago: five strands (page 122) Collaborative procurement (Martin Jay) - £90bn in scope. Back office operations (Martin Read) - £18bn, plus £16bn on IT. Asset sales (Gerry Grimstone). Property (Pat Carter) - £25bn in scope (plus disposals). Budget bakes in savings of £15bn a year, to be delivered by , across the public sector Common and strong themes: management information, incentives, accountability, expert support DCMS action, as discussed at NDPB advisory board: Procurement Council (Steve Morris, British Library) Benchmarking (Chris Walker, UK Sport) Building a (useful) financial model to (Discussions with Museums: understand cost and income drivers). July strategy for back office operations Response (2) - Operational Efficiency Programme (OEP)

31 Department for Culture, Media and Sport Improving the quality of life for all 31 Response (3) - Public Value Programme Programme launched a year ago NHS commissioning, teaching assistants in schools, NEETs, RDA management, prison management (page 125) Need to extend this to cover 50% of DEL, with focus on spend that impacts across departmental boundaries But also some scope for looking at AME (eg benefit spending and public service pensions - page 128) Just starting now to scope these reviews in DCMS Need to start in June, and complete by the end of 2009 Best not to organise on an institution by institution basis

32 Department for Culture, Media and Sport Improving the quality of life for all 32 Response (4) - the next Spending Review Its all rather unclear … Period covered - assume to Overall fiscal position: DEL and AME envelopes not yet set Timing: when it starts, when decisions are taken, when announcements made Nature of engagement with departments and other organisations we work with. Bottom-up or top-down? The key themes? Relevant to building the evidence base. Likely scope for changes to the control framework (e.g. museum reserves)? … so all involved need to be ready for anything.

33 Department for Culture, Media and Sport Improving the quality of life for all 33


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