Gasette This issue - Government Finance Profession - HM Treasury

CIPFA/HMT symposiumcross-cutting areas,” she said. “Theseinclude Treasury spending controls anddeveloping incentives for good financialmanagement; ERG efficiency controlsand incentives to the development ofcost conscious cultures in departments;shared services; managementinformation; finance skills for non-financeprofessionals; and developing our financeprofessionals.”The EST said these workstreams arebeing driven by senior management rightacross Whitehall, committed to instillingstronger financial management. “But it’sa transformation that has to reachbeyond the upper echelons of Whitehall.If we are to embed a strong culture offinancial management, then everyone indepartments needs to feel they havesome responsibility for it.“In fact all the members of the FinanceTransformation Programme Board – thePermanent Secretaries, the Finance DGsled by Richard Douglas and the Non-Executive Directors – all agree that theFinance Transformation Programme is notjust about transforming finance andfinance processes, but about real culturechange,” she said.WORLD CLASS ROUND-UPRECOVERY WARNINGBritain’s recovery is likely to be slower than firstthought and is at risk from a number of factors,Gemma Tetlow of the Institute for Fiscal Studiestold delegates. She said that while deficit reductionwas the right course of action it wasn’t a giventhat the Chancellor’s objectives could be achieved.“If macro economic forecasts are wrong there isa risk to revenues,” said Tetlow. There needs to becare in planning public policy, she said, andproblems in the Eurozone could affect plans toplug the £114bn hole in the public finances. Thereis also a risk that George Osborne would beunable to implement spending cuts, said Tetlow,programme director at the IFS. “There is noprecedent for this,” she said. Ireland in the late1980s cut 10% of public spending but Britain’scuts will be deeper, she added. Tetlow said thatwhile 80% of the deficit plan relied on spendingreductions, most of these were not yet in place.They are to be rolled out over the next five years,but there is a danger government “won’t be ableto introduce the spending cuts as planned”, shesaid. Tax rises that make up the remaining 20% ofthe deficit plan have already been introduced.A RISKY BUSINESS‘Enjoy’ might not the right word, but delegateshad to sit up and take note of John Scott’spresentation on risk. The Chief Risk Officer atZurich Global identified a number of risks thatcould affect the UK’s prosperity. Unfortunately itwas a long list; Scott highlighted that the globaleconomy had created an ‘inconnectivity of risk’,whereby seemingly distant events couldreverberate around the world.Threats to economic stability also includesclimate change; terrorism and geo-politicaltensions; war (with reference to Iran); populationgrowth and related issues, such as the scarcity ofwater; natural disasters (the Japanese earthquake);and the illegal economy (drug crime, counterfeitgoods, etc).The ‘dark side of connectivity’ brought its ownissues – cyber crime and digital disruption beingjust two. “The seeds of dystopia are starting togerminate,” Scott said.Understanding and tackling these risks shouldbe the priority for governments in the comingyears, Scott concluded. Their progress – orotherwise – will be monitored.qu_lific_ _ionsWhat’s missing from your finance team?If you are facing the challenge of improving productivity with fewer resources,then AAT has the solution. Our cost-effective training builds practical skillsand knowledge, bringing immediate results to the workplace.AAT qualifications can fill the skills gap in your finance team today, and ourprofessional membership will keep your organisation one step ahead for the future.Funding may be available via apprenticeships0845 863 0795 aat.org.uk/skillsgapAAT is a not for profit organisation with over 120,000 members worldwide. Registered charity no.1050724The professional bodyfor accounting techniciansspring 2012theGASETTE 09