a view from the board table simon judge finance director, dcms simon.judge@culture.gsi.gov.uk gfp...
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A view from the Board Table
Simon Judge
Finance Director, DCMS
simon.judge@culture.gsi.gov.uk
GFP Trainee Conference
Brighton
10 July 2009
Department for Culture, Media and Sport Improving the quality of life for all2
What am I going to talk about?•Myself•How I qualified (and why)•My current job and some of the challenges, based loosely around my first impressions, and attempts to set some priorities
•Reflect on what these challenges might mean for you today, at your stage in your career. I am assuming you aspire to something
•Questions and comments
Department for Culture, Media and Sport Improving the quality of life for all3
My experience to date• Maths degree - very useful.• HM Treasury - wide range of jobs, including poll tax,
privatisations, VAT, IT• DWP - various Spending Reviews • DCA - merger (with part of Home Office) to form MoJ
Department for Culture, Media and Sport Improving the quality of life for all4
Project management – creating MoJ
Department for Culture, Media and Sport Improving the quality of life for all5
My experience to date• Maths degree - very useful.• HM Treasury - wide range of jobs, including poll tax,
privatisations, VAT, IT• DWP - various Spending Reviews • DCA - merger (with part of Home Office) to form MoJ• DCMS - the finance director (not “a”)
• Small department - only 500 people. On the edge of viability - read our capability re-review. 20 in finance
• About 60 NDPBs and other bodies, most with own Accounting Officer
• I think I am supposed to lead the finance function across them all - some bigger than we are, some are better run
• £1.5 billion resource, and £200m capital – tiny share of the budget
Department for Culture, Media and Sport Improving the quality of life for all6
Ben & tax credits
Health
Local Govt
Defence
DCMS
Other
Pub serv pens
Other Lottery
EU
LASFE
BBC
DCSF
Debt interest
DEL£340 bn
DebtInterest
Benefits & tax credits
DCMS
AME£270 bn
DCMS within total public spending
Department for Culture, Media and Sport Improving the quality of life for all7
My experience to date• Maths degree - very useful.
• HM Treasury - wide range of jobs, including poll tax, privatisations, VAT, IT
• DWP - various Spending Reviews
• DCA - merger (with part of Home Office) to form MoJ
• DCMS - the finance director (not “a”)• Small department - only 500 people. On the edge of viability - read our
capability re-review. 20 in finance• About 60 NDPBs and other bodies, most with own Accounting Officer• I think I am supposed to lead the finance function across them all -
some bigger than we are, some are better run• £1.5 billion resource, and £200m capital – tiny share of the budget• Olympics (£9.3 billion programme), BBC (£3.3 billion), Lottery (£1.7
billion) all on top. I only get involved when things go wrong
Department for Culture, Media and Sport Improving the quality of life for all8
Getting qualified ... Why and how?• Lots of experience - but wouldn’t get a board level job• Chose the Warwick Business School / CIPFA route• See article by David Wright (DWP) in Trainee Gasette No 1• Warwick diploma:
• how to be a social scientist. Useful for many more senior managers - strategy, leadership, governance
• learn to write an essay• learnt how to walk around a problem• research-based dissertation• Manageable finance element: investment appraisal, tax and
financial accounting. Governance module most useful to me so far• Friendly and small group. Graduated on Monday
Department for Culture, Media and Sport Improving the quality of life for all9
Some newly-qualified accountants ...
Department for Culture, Media and Sport Improving the quality of life for all10
Some newly-qualified accountants ...
Department for Culture, Media and Sport Improving the quality of life for all11
Getting qualified ... Why and how?• Lots of experience - but wouldn’t get a board level job• Chose the Warwick Business School / CIPFA route• See article by David Wright (DWP) in Trainee Gasette No 1• Warwick diploma:
• how to be a social scientist. Useful for many more senior managers - strategy, leadership, governance
• learn to write an essay• learnt how to walk around a problem• research-based dissertation• Manageable finance element: investment appraisal, tax and
financial accounting. Governance module most useful to me so far• Friendly and small group. Graduated on Monday
• CIPFA final test: case study. (What does it test ?)
Department for Culture, Media and Sport Improving the quality of life for all12
So what are the issues ?
•Get organised
•Keep learning
•Governance and culture
Department for Culture, Media and Sport Improving the quality of life for all13
Issues (1) – get organised• Manage your boss - “management review”, “sign off return
to HMT”, escalate stuff when you get stuck, help us to prioritise (eg technical assistance to our NDPBs)
• Customer focus - some basic disciplines on solving problems. Know a bit about a lot across corporate services
• Learn how to manage change projects. Backward planning, take some risks (eg CSR/SR), acknowledge we are less than perfect, but accept less than perfection
Department for Culture, Media and Sport Improving the quality of life for all14
The starting positionW
OR
LD C
LAS
SU
SE
LES
S
Department for Culture, Media and Sport Improving the quality of life for all15
The starting positionW
OR
LD C
LAS
SU
SE
LES
S
Internal controls
Statutory accounting
In-year reporting and control
Forward planning
Department for Culture, Media and Sport Improving the quality of life for all16
The starting positionW
OR
LD C
LAS
SU
SE
LES
S
Department for Culture, Media and Sport Improving the quality of life for all17
The new FD arrives ....W
OR
LD C
LAS
SU
SE
LES
S
Department for Culture, Media and Sport Improving the quality of life for all18
... then common sense breaks outW
OR
LD C
LAS
SU
SE
LES
S
Department for Culture, Media and Sport Improving the quality of life for all19
Issues (1) – get organised• Manage your boss - “management review”, “sign off return to
HMT”, escalate stuff when you get stuck, help us to prioritise (eg technical assistance to our NDPBs).
• Customer focus - some basic disciplines on solving problems. Know a bit about a lot across corporate services
• Learn how to manage change projects. Backward planning, take some risks (eg CSR/SR), acknowledge we are less than perfect, but accept less than perfection
• Make finance interesting, useful, and consequential - eg risk management
• Write policies, design systems, or understand and tackle culture? Where’s the leverage?
• Sit at your desk, or get out there and talk to people?• Look for quick wins and for people to be defenestrated
Department for Culture, Media and Sport Improving the quality of life for all20
Issues (2) – keep learning• Work with other specialists eg economists, lawyers,
statisticians, estates, HR, procurement, communications etc etc
• Welcome others into finance – don’t be an exclusive priesthood
• Look at how others simplify issues. Jargon is not always necessary, and not always helpful
• Look at other organisations – both similar and different. Not necessarily hugely time consuming. Feed thoughts back on how might do things better here
• Do a non-finance job, for a bit• Learn about public sector finance systems
Department for Culture, Media and Sport Improving the quality of life for all21
Issues (3) – governance & culture• Understand how your organisation is supposed to work,
and how it does work in practice. If you don’t know, ask and keep asking. Confusion leads to understanding
• Governance disciplines are important – tend to reside in finance (but not mandatory) – for example in DCMS loads of others need to get involved
• Think about trust, versus formal accountability• Be clear what you do and what you don’t. This requires
resilience (and good customer care skills to say “No”)• Understand what the FD role really is – eg importance of
single set of books, and of key financial judgements (slippage). Look for areas where FD/ you can be a bit awkward – eg retrospective approval
Department for Culture, Media and Sport Improving the quality of life for all22
Conclusion• Doing a formal qualification is useful – but not always in
the areas you expect• Finance is interesting and you must make it so for non-
experts. The function is crucial to running any organisation, and planning its future
• Reflect on you learn stuff, how you think about issues, how you behave with colleagues, customers, senior managers
• What does that mean for your skills gaps and how you behave? What are you going to do about this? Harry can help!
Department for Culture, Media and Sport Improving the quality of life for all23
Conclusion• Doing a formal qualification is useful – but not always in
the areas you expect• Finance is interesting and you must make it so for non-
experts. The function is crucial to running any organisation, and planning its future
• Reflect on you learn stuff, how you think about issues, how you behave with colleagues, customers, senior managers
• What does that mean for your skills gaps and how you behave? What are you going to do about this? Harry can help!
• Questions and comments please
simon.judge@culture.gsi.gov.uk
Department for Culture, Media and Sport Improving the quality of life for all24
Department for Culture, Media and Sport Improving the quality of life for all25
Tax and spend as a share of GDP
CSR SR
Department for Culture, Media and Sport Improving the quality of life for all26
Public spending - capital & current
Public sector net investment will fall to 1¼% of GDP by 2013-14.
Proceeds from additional assets and property sales available to supplement capital budgets
Current spending will grow by 0.7% in real terms each year in next SR (2011-12 to 2013-14). [1.8% at Budget 08: 1.2% at PBR November 2008]
Additional efficiency savings allowing the Government to focus resources on front-line public service priorities.
.
Current Spending (PSCE)
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
real
gro
wth
CSR
SR
Net Investment
0%
1%
1%
2%
2%
3%
3%
4%
% o
f G
DP
CSR
SR
Department for Culture, Media and Sport Improving the quality of life for all27
Ben & tax credits
Health
Local Govt
Defence
DCMS
Other
Pub serv pens
Other Lottery
EU
LASFE
BBC
DCSF
Debt interest
What does 0.7% mean for DCMS ?
2009-10: pages 239-41
DEL£340 bn
DebtInterest
Benefits & tax credits
DCMS
Department for Culture, Media and Sport Improving the quality of life for all28
Ben & tax credits
Health
Local Govt
Defence
DCMS
Other
Pub serv pens
Other Lottery
EU
LASFE
BBC
DCSF
Debt interest
What does 0.7% mean for DCMS ?
2009-10: pages 239-41
DEL£340 bn
DebtInterest
Benefits & tax credits
DCMS
AME£270 bn
Department for Culture, Media and Sport Improving the quality of life for all29
Response (1) - in the CSR period• £5 billion extra value for money savings in 2010-11 -- announced in
the Pre-Budget report.• Detailed split in the Budget (pages 129-132).• DCMS contribution is £20m - our fair share.• Secretary of State has written with details to the organisations affected,
setting out his approach. • Also toughening of policy on public sector pay, including for NDPB
Chief Executives (page 127).• Reviewing capital budget, which is over-committed in CSR period, and
creating new Investment Committee. Need urgently to look forward to next SR period.
• Maximising DCMS contribution to skills & jobs agenda (page 95)
Department for Culture, Media and Sport Improving the quality of life for all30
• Launched a year ago: five strands (page 122)• Collaborative procurement (Martin Jay) - £90bn in scope.• Back office operations (Martin Read) - £18bn, plus £16bn on IT.• Asset sales (Gerry Grimstone).• Property (Pat Carter) - £25bn in scope (plus disposals).
• Budget “bakes in” savings of £15bn a year, to be delivered by 2013-14, across the public sector
• Common and strong themes: management information, incentives, accountability, expert support
• DCMS action, as discussed at NDPB advisory board:• Procurement Council (Steve Morris, British Library)• Benchmarking (Chris Walker, UK Sport)• Building a (useful) financial model to 2013-14 (Discussions with Museums: understand
cost and income drivers).• July strategy for back office operations
Response (2) - Operational Efficiency Programme (OEP)
Department for Culture, Media and Sport Improving the quality of life for all31
Response (3) - Public Value Programme• Programme launched a year ago
• NHS commissioning, teaching assistants in schools, NEETs, RDA management, prison management (page 125)
• Need to extend this to cover 50% of DEL, with focus on spend that impacts across departmental boundaries
• But also some scope for looking at AME (eg benefit spending and public service pensions - page 128)
• Just starting now to scope these reviews in DCMS
• Need to start in June, and complete by the end of 2009
• Best not to organise on an institution by institution basis
Department for Culture, Media and Sport Improving the quality of life for all32
Response (4) - the next Spending ReviewIt’s all rather unclear …
• Period covered - assume 2011-12 to 2013-14• Overall fiscal position: DEL and AME envelopes not yet set • Timing: when it starts, when decisions are taken, when announcements
made• Nature of engagement with departments and other organisations we work
with. Bottom-up or top-down?• The key themes? Relevant to building the evidence base.• Likely scope for changes to the control framework (e.g. museum
reserves)?
… so all involved need to be ready for anything.
Department for Culture, Media and Sport Improving the quality of life for all33
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