CIPFA launches new financial model for tough times

10-12-2010

A new Financial Management (FM) Model tailored for the current harsh financial climate in which the public services are operating has been launched by the Chartered Institute of Public Finance and Accountancy (CIPFA). As the public sector shifts gear, the need for good financial management remains essential so that oversight of stewardship is not diluted as organisations manage significant change.

The CIPFA FM Model is designed as a repository of good practice and an assessment framework. Its scope ranges from the essential controls that should be in place to safeguard assets and demonstrate accountability, to the aspirations of leading organisations.

This is the third generation of the FM Model and includes a clear emphasis on risk management through change, transactional efficiency and productivity, collaborative working, the commercial acumen of finance staff and, following the Icelandic banking trauma, on treasury management.

Boards of public bodies, finance professionals and business managers can all benefit from the Model.  It will give the Board a picture of FM practice in their organisation, creating a profile of strengths and weaknesses, its predominant style, and how far this is aligned to supporting the organisation’s strategic goals.  It can be put to a variety of uses, including testing existing arrangements against good practice and identifying improvements, encouraging change, and specifying standards.

Ian Carruthers, CIPFA’s Director of Policy said:

 ‘By following the standards of good practice in the CIPFA FM model, organisations will ensure their financial management arrangements are robust and supportive in the face of the challenges that lie ahead.’

Ends

Contact: Guy Roberts/ Lindsay Machin / Chloe Forbes
CIPFA Press Office
t 020 7543 5712/5645/5787
guy.roberts@cipfa.org.uk/ lindsay.machin@cipfa.org.uk / chloe.forbes@cipfa.org.uk

Notes to Editors:

For further information about the CIPFA FM model and the implementation of performance improvement measures please email cipfafmmodel@cipfa.org.uk or call 0208 667 8591

CIPFA’s Consultancy Team has an in-depth knowledge of the Model and our extensive experience of managing the process and gathering and evaluating evidence will stand your organisation in good stead. Our approach is designed to minimise internal resources. Outputs include:

  • A detailed report highlighting our independent assessment of the strength of the organisation’s financial management against best practice
  • A wealth of specific detail regarding strengths and areas for development
  • Comprehensive improvement plan based upon the data analysis and CIPFA’s in-depth experience of working in the public sector
  • Access to unrivalled comparative analysis against sectoral and pan public sector performance

About CIPFA

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.