Finance

The government needs a chief financial officer (CFO) “who is clearly and visibly responsible for ensuring that spending decisions are made on the basis of financial analysis and for measuring the outcomes in terms of value for money and performance management,” Rebecca McCaffry, innovation specialist at the Chartered Institute of Management Accountants (CIMA), has told CSW.

The annual drama of the Budget is a dysfunctional relic and should be scrapped, says Julian McCrae. Ministers and civil servants have bigger – and more nourishing – fish to fry.

The civil service pay cap will continue for an extra year, limiting pay increases to an average of one per cent per year until 2015-16, and the government will also seek to end automatic pay rises for all civil servants, chancellor George Osborne announced in his Budget last week.

The collapse of the West Coast Mainline franchising process won’t deter the Department for Transport (DfT) from taking necessary risks, the department’s permanent secretary has promised in an interview with CSW.

Four areas piloting ‘Whole Place’ community budgets will produce estimated public spending savings of over £200 million a year between them over the next five years.

The government has signed an agreement with private-sector partner arvato to manage an independently-run shared service centre, which will run back-office transactions to government departments. The move is intended to create savings of up to £600m a year over seven years.

Sir Nicholas Macpherson, the Treasury permanent secretary, last week praised the Public Accounts Committee (PAC) and the National Audit Office (NAO) for their work in holding departments to account despite the “discomfort” of his fellow permanent secretaries.

Finance professionals believe that the senior management teams of their organisations have a “deep understanding” or are “aware of the importance” of the finance function, a CSW survey has found.

Most Whitehall departments will have to move their transaction services – meaning HR, payroll, and accounts processes – into a shared service project by 2014, according to the Cabinet Office’s shared services strategy, published in December.

The Ministry of Defence is struggling to build a financial management system that determines a “single version of the financial truth” and there is a “high risk to delivery” of the department’s strategy for setting out clear management information (MI), according to the Defence Review Annual Report published yesterday by Lord Levene.

A further £22bn in spending cuts or tax rises will be required in the period of the next spending review to 2017-18 if the government is to achieve its goal of eradicating the structural deficit, new analysis says.

“Irregular” voluntary redundancy payments made by the Serious Fraud Office (SFO) to its former chief executive officer Phillippa Williamson have led the National Audit Office (NAO) to qualify its audit opinion on the SFO’s 2011-12 accounts.

“Irregular” voluntary redundancy payments made by the Serious Fraud Office (SFO) to its former chief executive officer Phillippa Williamson have led the National Audit Office (NAO) to qualify its audit opinion on the SFO’s 2011-12 accounts.

Efforts by the Treasury to incorporate long-term analyses into its budgetary calculations are being hampered by the political calculations of successive governments, Nick Macpherson, permanent secretary at HM Treasury, said on Monday.

Over the past three decades, no government has been able to achieve reductions in the administrative costs of central government equal to those proposed by the coalition, a report from Oxford University said earlier this month.

The new head of the Welsh Civil Service, Derek Jones, will take up his position on 8 October after a four year hiatus from the civil service. He replaces Dame Gillian Morgan, who retired in August. Jones was the director of business and partnerships at Cardiff University, and prior to this role he spent 30 years as a civil servant, including as a senior director.

Eleven NHS foundation trusts are in financial difficulty, and a further 13 are at risk of getting into difficulty, David Bennett, the chief executive of the NHS regulator Monitor, told the Public Accounts Committee (PAC) yesterday.

Fraud is widespread at government contractors A4e and Working Links, their former head of audit, Eddie Hutchinson, has said.

A solicitor representing David Owen, a civil servant suing the Treasury for unfair dismissal, has said that officials are threatening to ignore the judge’s decision should he rule in Owen’s favour.