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ITEM BV8

BEST VALUE & AUDIT COMMITTEE –
9 MARCH 2005

FINANCIAL MANAGEMENT IMPLEMENTATION PLAN - QUARTERLY MONITORING REPORT

Report by Head of Finance & Procurement

Introduction

  1. The Financial Management Implementation Plan is a detailed set of actions designed to improve financial management within Oxfordshire County Council. An initial report setting out proposals for managing the improvement programme was submitted to this Committee on 20 October 2004. The plan identifies actions in twelve priority areas:

    1. Remove control weaknesses from financial systems and processes
    2. Produce policies and procedures
    3. Ensure reliable financial information – links to SAP Project
    4. Ensure up to date schemes of financial delegation
    5. Establish appropriate structures for finance staff at centre and within Directorates
    6. Appropriately resource Internal Audit function
    7. Performance management of cost centre managers
    8. Improve budget management and financial reporting
    9. Integrate financial, performance and risk reporting
    10. Financial training
    11. Clear action plans linked to other related plans
    12. Additional resources

  2. The detailed implementation plan was circulated to members of this Committee, CCMT, Business Managers and members of the Strategic Finance Group in November 2004. Whilst the detailed plan continues to be updated and monitored, this report now provides the first quarterly update and focuses on the achievement of key priority actions for the improvement agenda.

    3. Overview

  3. The table at Annex 1 (download as .doc file) summarises the current position on key priority actions.

  4. Key achievements to date include:

    1. Non-SAP systems mapped and consultation taking place with SAP Revitalisation Project Team to agree priority areas for improved system interfaces and integration into Phase 2 of SAP Revitalisation

    2. Financial Procedure Rules within the Council’s Constitution updated and circulated

    3. Financial Regulations documented and issued

    4. Cost Centre Managers Handbook now available on Intranet

    5. Key financial instructions on Creditor and Debtor processes issued.

    6. Updated Schools’ Financial Manual of Guidance issued

    7. Active scrutiny of financial control issues by newly convened Audit Working Group

    8. Funding for new Corporate Finance Structure agreed.

  5. Many of the improvements will be achieved through better use of SAP. Progress on both the FMIP and SAP projects are regular items on the Strategic Finance Group agenda to ensure a co-ordinated approach is taken.

  6. The next quarter’s work will focus on:

    1. A communication programme to promote awareness of new regulations and instructions

    2. Developing financial training for cost centre managers

    3. Implementation of new finance structure

    4. Continued liaison with the SAP Revitalisation Project
    5. Improved monthly monitoring

    Funding

  7. Approval has been given to one-off funding of £200,000 for 2004/05 from the Modernisation Fund and £200,000 ongoing funding has been approved as part of the 2005/06 Budget. The funding will be used to strengthen staffing within corporate financial accounting, financial training and Internal Audit.

    8. RECOMMENDATION

  8. The Committee is RECOMMENDED to note progress to date and give any feedback on the quarterly monitoring report to the Head of Finance & Procurement so that this can be incorporated in the work being undertaken on the Financial Management Implementation Plan.

SUE SCANE
Head of Finance & Procurement

Background Papers: Detailed Financial Management Implementation Plan

Contact Officers:
Hilary Cameron, FMIP Project Manager, Resources Directorate. Tel 01865 815460
Jo Stone, FMIP Project Manager, Resources Directorate.Tel 01865 815436

March 2005

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