Finance

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.

All departments must identify five per cent of their budgets that they could cut if they require contingency funding, chief secretary to the Treasury Danny Alexander said in a speech to the Institute for Fiscal Studies this week.

Departments must think of the long-term when setting out budgets as part of a Spending Review, the Public Administration Select Committee (PASC) has said in a report published yesterday.

The Treasury must take ownership of the new system of accountability that will develop as a result of public service reforms, the Public Accounts Committee has said.

Departmental expenditure limits (DEL) will need to fall by 3.8 per cent per year in the first two years of the next Parliament – even more than the current annual cuts of 2.3 per cent – unless there are deeper cuts to annual managed expenditure (AME) budgets, chancellor George Osborne said in his Budget last week.

Shadow chancellor Ed Balls said at Queen Mary University last week that granting the Bank of England independence in 1997 “increased the power of the Treasury, because it allowed the Treasury to say: ‘Well, I see you want to make that decision, prime minister, and I can see why you’d want to do that, but I’m not sure the independent Bank of England will wear it.”

A poll by CSW, carried out in partnership with analytics company SAS, has found that 74 per cent of senior civil servants and 73 per cent of all civil servants believe that departments and agencies would be better incentivised to tackle fraud and error if they were allowed to keep some of the savings.