Accrual transition: CIPFA professional capacity development

Transcription

1 Accrual transition: CIPFA professional capacity development Ian Carruthers CIPFA - Executive Director, Policy & Standards IPSASB Board Member

2 Finance profession: Typical challenges on moving from cash to accrual Cash-based appropriations Finance seen as backroom function Score-keeping role Few qualified accountants Not critical part of decision-making process

3 Supporting the transition to accrual: Developing Government PFM knowledge and professionalism Equip CFOs for top leadership positions Develop CFO cadre Increase PFM knowledge and skills across Government Develop role of Finance Function Increase number of qualified accountants

4 Supporting the transition to accrual: Potential support from CIPFA Leadership academies Role of CFO / CFO academies / guidance CIPFA Certificates and PFM training CIPFA FM Model and other guidance New CIPFA PQ / routes to membership

5 Increasing the number of qualified accountants: Appropriate qualifications for each level AAT Introductory, Intermediate, Advanced CIPFA CertIPSAS CIPFA Certificate level CIPFA Diploma and Advanced Diploma levels Full CIFPA professional qualification Complete all CIPFA exams Various other routes for members of Professional Accountancy Organisations CIPFA with which has Memoranda of Understanding

6 Variety of routes to CIPFA membership (1): Student membership and Affiliate membership Application is invited via cobranded communication with employers for experienced finance staff who wish to start their qualification journey on an accelerated route Stages are achieved as with student members Invited Affiliate Members enjoy the same member benefits and use CIPFA (Affil) designation Affiliate Membership unlocks access to the tailored PFM Centre of Excellence

7 Variety of routes to CIPFA membership (2): PFM Advanced Diploma to become a CPFA Newly Qualified Accountants receive Affiliate CIPFA membership and are offered the option of studying an International PFM Advanced Diploma Consists of two papers Governance, Public Policy and Ethics; and Public Sector Financial reporting Graduates of the International PFM Advanced Diploma are recognised as full members and entitled to use CPFA designation

8 Variety of routes to CIPFA membership (3): Becoming a CPFA for experienced professionals Qualified accountants with over 5 years senior level experience in the public sector can enjoy full membership via our bye laws and CPFA designation CIPFA encourages and supports thought leadership, networks, events, research and publications Full members may be elected to CIPFA Council and support PFM Centre of Excellence development activities to create a strong global PFM community

9 Developing the Finance Function: The CIPFA FM Model Strong FM as corporate responsibility Is financial management where we want it to be? Identifies priority areas for improvement Allows tracking over time Can be used to benchmark between organisations Can test organisational leaders skills in financial management

10 Increasing PFM knowledge and skills: FM Model good practice statements Securing Stewardship Supporting Performance Leadership L1, L2 L3 - L5 L6, L7 Enabling Transformation People P1, P2 P3, P4 P5, P6 Processes PR 1 - PR10 PR11 - PR14 PR15, PR16 Stakeholders S1 S3 S4 - S6 S7, S8

11 Increasing PFM knowledge and skills across Government: Training PFM training Finance for Finance Finance for Non-Finance Governance, Audit & Risk Performance Improvement Leadership Bespoke support tailored to specific needs and requirements

12 Increasing PFM skills across Government Certification for senior non-finance staff Training for senior non-finance staff who need a strong grounding in financial concepts but may not need to be willing to commit to a full qualification One year finance diploma Content aligned with current CIPFA syllabus to maximise stepping stone to PQ useful step for policy staff / economists

13 Creating the vision: Local version of Role of the CFO Statement?

14 Developing a CFO cadre: CIPFA Role of CFO Statement The CFO in a public service organisations: cipfa.org 1. is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation s strategic objectives sustainably and in the public interest; 2. must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation s overall financial strategy; and 3. must lead the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively. To deliver these responsibilities the Chief Financial Officer: 4. must lead and direct a finance function that is resourced to be fit for purpose; and 5. must be professionally qualified and suitably experienced.

15 Developing a CFO cadre: CFO recruitment sources: Internal promotions academies and other forms of development to develop softer skills CIPFA conversion course for experienced nonqualified PFOs External recruitment private sector and rest of public sector Likely challenges: Acceptance by generalists Establishing role of finance / financial information Saying truth unto power CIPFA training and guidance to address challenges

16 Equipping CFOs for top leadership positions CIPFA Leadership Academies Development need to be more effective and ready to take on top leadership roles senior financial people must improve their ability to work with and influence politicians, their senior officers, peers, partners and staff Bespoke solution Facilitated series of practical workshop sessions on leadership in the role Action learning sets cipfa.org

17 Questions and discussion Ian Carruthers CIPFA - Executive Director, Policy & Standards IPSASB Board Member E: ian.carruthers@cipfa.org