Introducing the CIPFA Financial Management Model The progression towards world class financial management

What is the CIPFA FM Model ? Framework of 30 Statements capturing characteristics of best good practice across full spectrum of Financial Management Each statement has supporting questions Supported by a Self improvement Online Diagnostic tool to measure the strength of Financial Management against the framework

Why so important currently? Financial Management has never been so important with current economic climate No room for poor decision making The model will identify Strengths / Development areas Prioritise and create a clear Action Plan for improvement Progress can be tracked

Scope of Framework Spans entire spectrum of FM FM strategy/audit/financial reporting/stakeholder confidence Wider than finance function Focus on FM capability across the organization Statements are focused on Leadership, Process, People and Stakeholders

How does it work ? A score is determined for each statement Each statement has supporting questions Questions assist in the scoring process Supported by an Online Diagnostic tool to undertake the assessment based on gathering evidence

Evidence – ‘The Three Strands’ Document review Interviews – specialist and sampling Minimum of 24 interviews Stakeholders interviewed include Audit Committee Chair and External Auditor Electronic On Line Survey Number of participants dependent on size and structure. Can accommodate large numbers and far reaching

Typical Project Plan Stage Task/Process Timescales 1 Initiation & Engagement Jan 2 Documentation Review Jan/Feb 3 Electronic Survey Feb 4 Interviews 5 Review of Evidence March 6 Vision for Financial Management 7 Reporting April

Progression to World Class Supporting Performance Driving Accountability World Class Enabling Transformation Degree of challenge The business positively seeks finance input into strategic and operational decisions because of the value added to the delivery of their objectives Finance teams display relentless commitment to continuous improvement Financial Information is accurate (right first time), timely and complete 12

CIPFA Support - Options Self assessment, independent validation, application including independent assessment and reporting Building resilience