Annex A
| Department | Page
|
1. Department for Education and Employment
| Ev 38 |
| 2. OFSTED | Ev 39
|
| 3. Department of Health | Ev 39
|
| 4. Food Standards Agency | Ev 40
|
| 5. Department of the Environment, Transport and the Regions
| Ev 40 |
| 6. Office of the Rail Regulator |
Ev 41 |
| 7. Office of Water Services | Ev 41
|
| 8. Home Office | Ev 42
|
| 9. Charity Commission | Ev 43
|
| 10. Lord Chancellor's Department | Ev 43
|
| 11. Northern Ireland Court Service |
Ev 44 |
| 12. Public Record Office | Ev 44
|
| 13. Crown Prosecution Service | Ev 45
|
| 14. Serious Fraud Office | Ev 45
|
| 15. Treasury Solicitor's Department |
Ev 46 |
| 16. Ministry of Defence | Ev 46
|
| 17. Foreign and Commonwealth Office |
Ev 48 |
| 18. Department for International Development
| Ev 48 |
| 19. Department of Trade and Industry |
Ev 49 |
| 20. Export Credits Guarantee Department
| Ev 50 |
| 21. Office of Fair Trading | Ev 50
|
| 22. Office of Telecommunications | Ev 51
|
| 23. Office of Gas and Electricity Markets
| Ev 52 |
| 24. Intervention Board | Ev 52
|
| 25. Ministry of Agriculture, Fisheries and Food
| Ev 53 |
| 26. Forestry Commission | Ev 53
|
| 27. Department of Culture, Media and Sport
| Ev 54 |
| 28. Department of Social Security |
Ev 55 |
| 29. Scotland Office | Ev 55
|
| 30. Wales Office | Ev 56
|
| 31. Northern Ireland Office | Ev 56
|
| 32. HM Treasury | Ev 57
|
| 33. HM Customs and Excise | Ev 58
|
| 34. Inland Revenue | Ev 59
|
| 35. National Savings | Ev 60
|
| 36. National Investment and Loans Office
| Ev 60 |
| 37. Office for National Statistics |
Ev 61 |
| 38. Government Actuary's Department |
Ev 61 |
| 39. Cabinet Office | Ev 62
|
| 40. Central Office of Information |
Ev 62 |
| 41. Privy Council Office | Ev 63
|
| |
1. DEPARTMENT FOR
EDUCATION AND
EMPLOYMENT
Management information systems in place
Most of the department's expenditure (by value) is handled
by DfEE systems, although a significant minority is accounted
for by the Employment Service (ES) through its own independent
systems.
DfEE's management information system (MIS) is FINDERS, a
bespoke IT-based server system providing separate accruals and
cash data for control and reconciliation by all the department's
budget managers and budget officers. Data is extracted daily from
a core accounting system.
The ES's management information system is Unit Costing Model,
an IT-based model used to calculate a range of unit costs on an
accrued basis, to meet the needs of DfEE's Annual Performance
Agreement (APA) reporting and of ES managers.
Coverage
All directorates within the department (but no external bodies)
are covered by the DfEE system. There are no linkages to other
systems, although reports can be downloaded to spreadsheet. The
customers of reports produced by the Financial Accounting Division
and delivered through the DfEE network are 1,000+ budget managers,
and budget officers throughout the department.
The ES system links to the Service's Financial Accounting
System and Performance MIS. The customers of its reports are DfEE
(APA) reporting, ES managers and the department's policy teams.
Use made of information drawn from the systems
The information drawn from the DfEE system is the main tool
for monitoring, control and reconciliation of budgets, expenditure
and receipts for the department. There is also some use of hard
copy reports.
Information from the ES system is used to compare costs of
placing people into work, by client type and delivery method.
Benefits achieved
DfEE have identified three specific areas where better decision-making
has resulted from the information provided by its management information
systems:
1. Student Loans Although still voted in cash
terms, the control regime for student loans has been on a resource
basis for two years. The resource costs are the sum of the estimated
default on and cancellation of repayments and the interest subsidy
for loans which are repaid. The information from the MIS has enabled
decisions on loan expenditure to be made on the basis of the full
long term cost of making the loan rather than cash transactions
in the early years.
2. Financial Choice The department has a division
that oversees capital investment for education and can advise
on the appraisal of investment options and choices for delivery,
including PPP deals. The management information system has enabled
informed decisions to be made about the purchase of capital assets
based on an understanding of the effect of depreciation on its
resource consumption.
3. Improving control systems The ES reports unit
costs calculated from its system on a resource basis as part of
its annual APA supporting information. The unit costs enable managers
to make better comparisons of costs of delivery to the different
ES client groups. ES also monitors New Deal unit costs on a resource
basis to enable costs of delivery to be compared between geographic
area and office size.
More generally, the department is well placed to use resource
information effectively. The budgeting process has been devolved
for many years and there are well established processes by which
managers at all levels take financial decisions and accept responsibility
for them. There is an overall mechanism for monitoring expenditure
and realigning resources where necessary. An Audit Committee incorporating
non-executive directors ensures that internal controls are effective.
2. OFSTED
Management information systems in place
OFSTED has two IT-based management information systems in
place: the Inspection Tracking System (ITS) and Project Costing
System (PCS), together with a Sun Accounts finance system.
Coverage
The ITS provides various types of information on inspections.
The PCS apportions time and costs to individual projects. The
Sun system provides budgetary and in-year spend information.
Use made of information drawn from the systems
The ITS assists management in decision-making processes by
providing details of inspections carried out, reports on inspections,
contractor details, invoice details and payments made to contractors.
This information is also used by Contracts Division, which is
responsible for outsourcing of inspections, and by Finance Division,
which provides information on payments and invoices processed.
The PCS assists management make better planning decisions
in a timely manner. In conjunction with information produced by
the department's finance system (which holds all of OFSTED's financial
and management accounting information, including fixed assets),
the PCS allows the department to apportion time spent and costs
incurred on each activity.
Benefits achieved
Information derived from the PCS is used to produce the apportionment
of income and expenditure by departmental objective for Schedule
5 of resource accounts. In the future, OFSTED hopes to introduce
a project costing system whereby projects can be allocated a specific
budget and all costs/income apportioned to particular projects.
This will enable more sophisticated financial appraisal to be
carried out, leading to better prioritisation of competing pressures.
3. DEPARTMENT OF
HEALTH
Management information system in place
DH's current management information system is the IT-based
Financial Monitoring System (FMS). NHS Executive Regional Offices
collect data from Trusts, health authorities and other organisations
such as Primary Care Groups, and a file transfer then takes place
to upload the data into the FMS.
Coverage
The FMS data set is the NHS' financial plans for the coming
financial year, actual spend per quarter, and forecast end-year
position. The key customers are regional offices and the department's
financial performance branch. Reports from the system are supplied
to HM Treasury, the National Audit Office, the Office for National
Statistics and the NHS' management information system, as well
as across the department's finance and performance directorate.
Use made of information drawn from the system
The FMS is used to monitor, assess and report the financial
performance of the NHS at regional office, health authority, NHS
Trust and Primary Care Trust level, and to advise the Director
of Finance and the Executive Board on action needed to improve
performance. The key areas covered are income and expenditure
and operating costs (assessing performance of regional offices,
health authorities and NHS Trusts against plans, Trusts against
statutory breakeven duty and health authorities and Trusts against
recovery plans) and liquidity. Information provided by the FMS
is also used to inform future funding needs of the NHS and to
give early indication of financial pressures.
Benefits achieved
The existing FMS is written in somewhat out of date technology,
and will be replaced in April 2001 by a new Financial Information
Management System (FIMS). FIMS will merge three existing financial
systems—FMS, Financial Central Returns and Financial Information
System—into a single integrated system. The key benefits
of FIMS are that it will:
— provide a much more effective system for financial
monitoring and management of NHS bodies alongside full RAB implementation,
improving the timeliness and quality of data;
— provide a focus for data collection, analysis
and reporting processes that need to be common across the financial
performance directorate;
— improve the way in which data transactions are
effected between the NHS and DH, and support the need for wider
sharing of data;
— allow data to be collected in a way which more
readily meets Ministers' changing priorities; and
— bring the department's financial management systems
into line with e-government.
4. FOOD STANDARDS
AGENCY
Management information system in place
The FSA's management information system is Finance and Research
Management System (FARMS), an IT-based modular accounting system.
The modules implemented are general ledger, purchase ledger, accounts
receivable and cash accounting. The fixed asset module is currently
being implemented.
Coverage
Apart from the financial reports that are used by central
finance, a range of budgetary reports are produced for budget
holders and research managers. In addition to finance staff, all
divisional budget holders have access to the system, as well as
budgetary control officers and their deputies. Research staff
have access to the research related modules. Staff in the FSA's
devolved administrations also have on-line access.
Use made of information drawn from the system
FARMS is primarily used for budgetary control purposes and
to aid financial planning and management and for regulatory requirements
such as taxation. It provides management accounting information,
including cost centre reports etc; makes payments to suppliers
and records receipts; provides financial accounting information
(account balances etc); and records the progress of research projects
from approval to commencement to closure.
Benefits achieved
The FSA was formally established as a non-Ministerial department
in April 2000. Despite the fact that its management information
system is still undergoing development, some benefits are already
in evidence. For example, as the system is on-line, managers are
able to access the most up-to-date information directly from desktop
terminals and consequently to make better decisions about resource
usage. Also, since the system is used to manage research contracts,
the integration of financial data with research work plans has
improved monitoring and exception reporting associated with research
activity.
5. DEPARTMENT OF
THE ENVIRONMENT,
TRANSPORT AND
THE REGIONS
Management information systems in place
DETR and its agencies currently have separate financial accounting
systems. For RAB, DETR has developed an access-based system (Integrated
Corporate Information System—ICIS), which consolidates spreadsheets
from its agencies, NDPBs and public corporations with financial
accounting information derived from the central DETR system. Performance
information is supplied by various systems including Agency Management
Information Systems, which is brought together for Treasury and
internal reporting purposes. Costing of outputs and objectives
is provided by ICIS using apportionment ratios derived from Schedule
5 of resource accounts. DETR is currently updating its financial
management systems, with a new accounting system due for delivery
in 2002.
Coverage
The system is used to co-ordinate information provided by
DETR itself and its various agencies, NDPBs and PCs, and to provide
consolidated information for the Treasury and other stakeholders.
Use made of information drawn from the system
Information drawn from the ICIS system is used for the department's
Annual Report, consolidated resource GEMS reporting and internal
monitoring of in-year spend, Estimate management and budget and
forecast outturn reporting.
Benefits achieved
DETR considers that the benefits realised so far from the
introduction of RAB have stemmed largely from better overall financial
management systems rather than from the new accounting procedures:
— One key benefit has been the move to output reporting
with the development of PSA and SDA targets, which has helped
the department focus on key priorities and set a framework for
evaluating its own performance and efficiency. To support this,
DETR has developed systems to report costs against outputs for
its accounts, Estimates and budgets.
— DETR has an established audited system for Schedule
5 of its resource accounts and is finalising an interim system
for reporting against budgets. A Management Information Project
is considering further management information requirements covering
the whole spectrum of the department's activities.
— The introduction of asset management has resulted
in DETR creating an asset register which has provided the department
with a clear picture of its assets and associated costs, resulting
in improved overall management of its assets.
— Capital charges on working capital and the introduction
of the cash management scheme have resulted in the development
of new procedures for cash forecasting and creditor and debtor
control.
— RAB information has given DETR staff a better
understanding of the accounts and accounting policies of its external
bodies and a consistent basis for comparison of DETR and its bodies,
leading to better informed decision-making.
Overall, the department's procedures for financial control
have been significantly improved under RAB, with systems being
developed which provide valuable management information on use
of resources, including assets and their associated costs. RAB
has shown the potential benefit of resource based and more timely
management information to support the department's decision-making
processes: the introduction of a new accounting system in 2002
will further assist the department in getting the maximum benefit
from RAB.
6. OFFICE OF
THE RAIL
REGULATOR
Management information system in place
ORR operates an IT-based Issues Table management information
system, on which key management issues are planned and progress
reported on a weekly basis. The system is lined to a Sun Accounts
finance system from which financial information is drawn.
Coverage
All of the department's financial management information
requirements are derived from the system. ORR management, from
heads of division upwards, are connected to the system. Reports
are issued on a weekly basis to managers who are expected to report
back on progress or issues arising.
Use made of information drawn from the system
Information drawn from the system is used for planning and
progress reporting to ORR management.
Benefits achieved
The information and feedback derived from the weekly issue
of reports enables decision-making to be made on a timely basis,
thereby highlighting potential problems at an early stage.
7. OFFICE OF
WATER SERVICES
Management information system in place
OFWAT has the functionality of a management information system
in place, drawing together information from a number of separate
systems including the finance system (SUN), an output costing
system and fixed asset register (Hardcat). It is not intended
to integrate the three systems: the finance system, output costing
system and fixed asset register all meet specific needs for managing
the department's overall resources.
Coverage
All of the department's financial management information
requirements are derived from the system.
Use made of information drawn from the system
Information drawn from the system is used for a wide range
of purposes, including supporting decision-making (resource allocation,
investment appraisal etc), informing performance reviews, monitoring
spend versus profile and variance analysis, and forecasting end-year
outturn.
Benefits achieved
Benefits achieved from use of information drawn from the
system include improved debtor management, better management of
working capital, improved control of assets, greater transparency
of investment made across the department, identification of the
full costs of services provided, and the provision of valuable
supporting information to risk management and implementing effective
Corporate Governance procedures.
8. HOME OFFICE
Management information systems in place
The Business and Accounting Strategic System (BASS), supplied
by Ross Systems (UK) Ltd, operates two systems in tandem—cash
data set and accruals data set. It contains the following modules:
general ledger, accounts payable, accounts receivable, fixed assets,
budgeting and forecasting, purchase order processing and costing
and charging. In addition there are four other systems which feed
into BASS: Home Office payroll system, MACE Home Office travel
and subsistence system, Home Office IND nationality system and
Home Office firearms compensation system.
Coverage
The two data sets in BASS map across to each other with certain
entries applying to both cash and accruals and some applying to
accruals only. All the BASS modules automatically interface with
each other thus providing a fully integrated system. The overall
system provides all budget, actual and forecast information including
accruals/prepayments, depreciation, cost of capital and provisions.
The following RAB reports are being specified: operating cost
statement (showing administration costs, programme costs, depreciation
and cost of capital), capital expenditure report, corporate cash
flow statement and corporate working capital report—each
by unit, directorate and corporately, and each showing budget,
forecast and actual information; corporate balance sheet; and
analysis by aims and objectives.
Use made of information drawn from the system
Reports produced from the system will allow monthly resource
monitoring to take place at unit, directorate and corporate level
of the resource total and the control totals for administration
costs, capital, DEL and AME. They will also enable monitoring
at corporate level of the total cash requirement and provide the
basis of the GEMS in-year monitoring report to HM Treasury. The
analysis by aims and objectives will facilitate reporting against
outputs including some that are not currently measured. Costing
data for internal and external charging will also be improved.
Benefits achieved
HO has identified the following areas where benefits are
expected to be achieved:
— resource consumption and generation will be fully
up-to-date on a monthly basis, facilitating in-year control;
— information generated from the systems will provide
the bedrock for setting resource budgets and baselines in the
future;
— management of fixed assets will become crucial
since a disposal before the end of an asset's useful life will
result in an unbudgeted loss on disposal and a resource overspend;
and
— control of resources will involve more forward
planning throughout the year as the opportunity to manage the
process close to the year-end will no longer apply.
9. CHARITY COMMISSION
Management information systems in place
The Commission's financial management and planning system
is the IT-based Corporate Information System (Financial Management)
(CIS(FM)). The accounting system (SunSystems) feeds data into
CIS(FM) and into the activity based costing system (HyperABC).
Output and performance information is produced by the operational
caseworking system (CMS). The Commission also has a number of
other systems, including a facilities management system (Archibus).
CIS(FM) is in the process of being redeveloped and upgraded, with
a target completion date of April 2001.
Coverage
CIS(FM) provides both budget managers and the central finance
division with financial and staff-in-post data so that Commission
expenditure can be accurately monitored and controlled. The Archibus
facilities management system provides inventory management and
tracking of all assets, values etc; calculates depreciation; and
holds details of asset lives, purchase price, location etc.
Use made of information drawn from the systems
CIS(FM) is used to monitor and control both individual budgets
at budget manager level and the Commission's budget as a whole.
It supplies data for GEMS returns and also provides a forecast
outturn and budget re-profiling tool. Archibus is used for inventory
management and CMS for informing local and senior management about
operational performance against targets.
Benefits achieved
The introduction of RAB was the main driver for the development
of the Archibus facilities management system, which has enabled
the Commission not only to account for all movements relating
to the fixed asset register, but also to maintain an up-to-date
inventory of all its assets. Reconfiguration of the accounting
system will encompass such issues as cashflow management, to enable
best use of working capital while delivering prompt payment undertakings.
The new financial management system will also enable a composite
report covering performance against targets and expenditure against
budget to be produced for senior management, to support strategic
planning and decision-making. This will show achievement against
SDA targets, costing information and budgeting and expenditure
data.
10. LORD CHANCELLOR'S
DEPARTMENT
Management information system in place
LCD's management information system is currently in development
by CSL, one of the department's PFI contractors. Delivery is expected
in autumn 2001. The new system, using Oracle software, will provide
easy access to data and reports across most LCD HQ and Court Service
activities.
Coverage
The system will provide the ability to readily combine and
utilise data from operational, financial and human resource operational
systems, as well as manual sources. This will enable the department
to better manage its performance against PSA and SDA targets and
enhance its ability to properly monitor and cost outputs and outcomes.
Use made of information drawn from the system
Information drawn from the new system will be used to produce
data and reports covering most LCD HQ and Court Service activities
within the hierarchy of its planning framework.
Benefits achieved
Once fully implemented, the system will improve the management
of performance at all levels within the department, support resource
accounting and budgeting and deliver better informed policy and
operational development through wider access to data.
11. NORTHERN IRELAND
COURT SERVICE
Management information system in place
The departmental financial management system is SunSystems,
which is used to process all payments and receipts and also has
purchase ordering and fixed assets modules. Departmental budgets
are controlled through the system, which produces a wide variety
of management information. SunSystems is linked to the payroll
module in the Human Resources Management System (HRMS). The Management
Information Team (MIT) has a range of datasets which provide data
on the department's operations via SPSS and a range of bespoke
Excel/Access reporting tools.
Coverage
All of the department's financial management information
is derived from SunSystems. There are linkages to the department's
other systems, notably the payroll module within HRMS and the
fee collection system in court offices. Comprehensive operational
data is provided by the MIT.
Use made of information drawn from the system
Information from the systems is used to assist in the day-to-day
running and management of the service, provide management information,
produce statutory accounts and provide the Treasury with PES and
GEMS in-year monitoring data and other information required for
Parliamentary Estimates, for completion of the departmental report
and to produce the department's SDA and Departmental Investment
Strategy (DIS).
Benefits achieved
The financial information system has enabled resource accounting
to be fully implemented by the department, including the successful
completion of Trigger Point 3 of RAB implementation. The department's
budgetary planning processes have also been informed by the high
quality information produced by its systems, notably for its DIS
and SDA, with the SDA regarded as an example of best practice
for small government departments.
12. PUBLIC RECORD
OFFICE
Management information system in place
PRO makes full use of its finance system to provide the necessary
management information for its managers. The system is an integrated
business and financial management system from Systems Union (SUN)
with a fixed asset package (Hardcat) to provide details of depreciation,
asset lives etc.
Coverage
All of the department's management information, including
costing, is derived from the system.
Use made of information drawn from the system
Information from the system is extensively used for costing
purposes and for capital appraisal. Budgeting information is also
available and may now be modelled to unit cost and outcome levels.
Benefits achieved
Improved visibility of unit costing and asset information
has resulted in better and simplified decision-making, and with
respect to assets greater tracking and monitoring of use. Improved
visibility has led to greater control of both cash and accruals,
and monthly reconciliation's are undertaken. Efficiencies have
been achieved on stock control with devolved purchasing via the
on-line system resulting in the closure of some stores buildings.
13. CROWN PROSECUTION
SERVICE
Management information system in place
CPS' Corporate Information System (CIS) is essentially a
series of databases, using Oracle software, containing management
information on performance indicators, finance, manpower/sessions,
corporate performance measures, adverse outcomes, payroll, activity
costs, branch profiles and unit costs. It allows users to easily
access and display data and then to present and manipulate the
information according to specific need.
Coverage
The 42 CPS Areas and various HQ divisions are connected to
the system. There are links to the department's financial accounting
system (ROSS), which also provides supplementary RAB-based reports.
The main customers of reports produced from the CIS system are
the CPS Areas, senior managers in the department, the Home Office
and the Attorney General.
Use made of information drawn from the system
Information drawn from the system is used to inform budget
allocations and for performance management, accountability to
Parliament and inter-agency exchanges.
Benefits achieved
CPS has identified the following benefits arising from information
drawn from its systems:
— the introduction of the cash management scheme
has resulted in the development of new procedures for cash forecasting
and improved management of working capital;
— better identification of accrual of Counsel fees
has improved the payment process;
— systems for calculating and recording accommodation-related
accruals and prepayments have improved accuracy and debtor management
procedures;
— CPS plans to introduce an asset management system
that will improve asset utilisation;
— a greater focus on cost awards debtors has led
to improved procedures for the collation and reconciliation of
information received from magistrates' courts;
— up-to-date management information is readily available
to all of the CPS' 42 Areas, which the Areas can use to compare
their performance with that of other Areas and the CPS overall;
— there has also been improved decision-making in
allocating resources to the 42 Areas, using an activity-based
cost model, and improved performance against CPS' objectives and
targets by bringing together information on caseload, resources,
staffing and performance measures.
14. SERIOUS FRAUD
OFFICE
Management information system in place
The SFO's management information system is built around the
general ledger of their accounting system, CFACs. A time recording
system is linked to the finance system to allow budgeting and
monitoring of cases being or planned to be worked upon. SFO also
uses a bespoke Oracle database for the tracking of cases and their
progress against key milestones.
Coverage
The finance system provides the necessary financial information
for day-to-day monitoring of expenditure and feeding into the
budgeting process. Plans are being drawn up for a more integrated
system including the installation of additional finance modules
for fixed assets, purchase and sales ledgers, and purchase order
processing. Consideration is also being given to upgrading to
an internet version of the software. Once upgraded it is intended
to integrate the time recording and case tracking software with
the finance modules to produce a seamless integrated system.
Use made of information drawn from the system
The emphasis is on in-year financial control and the tracking
and costing of SFO cases. This allows improved visibility of the
cost drivers of the organisation and improved budgeting.
Benefits achieved
By identifying the actual cost of cases, SFO is able to target
resources appropriately to future cases based on previous experience.
Such information was used extensively in the discussions on future
SFO expansion and in the in-year forecasting and budgeting processes.
15. TREASURY SOLICITOR'S
DEPARTMENT
Management information system in place
As an Agency required to cover its full costs, sound financial
management information is vitally important to TSD. The department's
chosen management information system was CFACs, supplied by Cedardata,
which went live in November 1999. However, for a number of reasons,
full implementation of the system has not yet been achieved and
is now planned for March 2001, for both financial and management
accounts.
Coverage
It is intended that the system will have links with the Practice
and Case Management System currently under development. It is
also linked into TSD's office system (Microsoft Office). The customers
of reports produced from the system will be senior and divisional
managers, other budget holders, the PEFO and management board,
and external customers including HM Treasury.
Use made of information drawn from the system
Regular reports will be provided to managers and other budget
holders to aid business planning and to keep them aware of the
overall financial position, including outturn against plan, income
and expenditure and cash flow. The system will also be used to
provide information for the management of working capital and
to inform HM Treasury for the purpose of monitoring public expenditure.
Benefits achieved
The new system will promote greater financial awareness and
accountability within the organisation and create scope for greater
delegation to individual managers and budget holders.
16. MINISTRY OF
DEFENCE
Management information systems in place
At the centre of the MoD's implementation of RAB, through
its major "Project Capital", is its overall Departmental
Financial Management System (DFMS). DFMS comprises a number of
processes and integrated commercial off-the-shelf software systems,
including Oracle Financials and Sun Accounts, CLIME and Oracle
Financial Analyser for RAB accounting, in-year management, planning
and budgeting. Other supporting finance systems, using both off-the-shelf
commercial software and bespoke software, include those for equipment
planning and project management, cash payments, fixed assets and
stocks.
MoD also has a number of separate management information
systems (MISs). These include systems being developed to manage
the department, and being used to manage individual Top Level
Budget (TLB) areas, on a balanced scorecard basis and are largely
non-IT based, using spreadsheets for reporting where appropriate.
Coverage
DFMS covers the entire department and consolidates information
from budget holders relating to more than 100 Management Groupings
(MGs). Each MG has its own general ledger and there are central
systems for distributing information from cash and stock feeder
systems. The cash feeder systems are operated across MoD by two
payroll agencies and the Defence Bills Agency. There are three
stock feeder systems providing the link between 170 supply systems
in the department's Defence Logistics Organisation (DLO) and the
DFMS. The equipment planning and project management systems are
used by MoD centrally and by its Defence Procurement Agency (DPA).
The separate MISs comprise the central systems which support
the Defence Management Board and MISs developed at the local level
by Top Level Budget holders (TLBs) which reflect their different
financial and asset structures. Systems are being developed to
integrate RAB information from these systems.
Use made of information drawn from the systems
Information drawn from the DFMS system will be the main basis
for monitoring, control and reconciliation purposes at departmental
and MG levels for profiled budgets, Estimates and outturns. The
cash feeder systems are used to control payments and receipts,
and produce management information for manpower, service and commodity
managers. The stock feeder systems and related supply systems
(primarily logistics management systems) are used to ensure that
stock is properly accounted for on a RAB basis. The equipment
planning and project management systems are used to plan and manage
equipment procurement.
The central MISs are being developed to enable the Defence
Management Board to manage the department's affairs on a balanced
scorecard basis, and to provide assurance on issues of corporate
governance and value for money. The use of a balanced scorecard,
integrating financial and non-financial information, reflects
the introduction of a new performance management regime. Elements
of the process by which the Principal Finance Officer (PFO) obtains
a view on financial control overall within the department are
likely to become part of IT-based systems within MIS systems in
TLB areas. In addition, a database is maintained of the results
of investment appraisals, which are carried out whenever substantial
financial investment is contemplated, to ensure that post-project
evaluations are carried out at the appropriate time.
The TLBs' MISs are used to provide TLB Board members and
TLBs with financial and non-financial information on management
plans, on the achievement of objectives, and on resources, costs
and expenditure. TLBs are developing a range of MISs to support
decision-making using RAB data.
Benefits achieved
MoD sought the following benefits from RAB at the outset
of Project Capital:
— Integrated financial and management planning;
— Understanding of the full cost of activities;
— Ability to be able to differentiate between efficiency/inefficiency
and changed output; and
— A greater focus for management attention and more
informed decision-making.
MoD reports that full realisation of many of these benefits
lies in the future, when the double running of appropriation and
resource accounts ceases and the resource control framework becomes
the currency of management. However, a number of the benefits
are already being realised.
Overall, in an organisation with such an extensive asset
base, it is no surprise that efficiency benefits are anticipated
through the visibility of balance sheet items and the influence
of cost capital charges on the use of the defence estate, fighting
equipment, plant and machinery, stockholdings and the completion
of asset construction programmes. A more acute understanding of
the content and value of major maintenance programmes and enhancements
to defence equipment and the alternative approaches that might
be pursued is another expected gain. The initial process of mustering
and valuing assets assisted in clarifying unsatisfactory ambiguities
of responsibility and produced some immediate impact when the
level of some asset holdings became clear. A much clearer appreciation
of MoD's liabilities has already been achieved and has led to
early improvements in managing creditors and provisions. Resource
costs in terms of depreciation, stock consumption and cost of
capital amount to over one third of total departmental operating
costs and will lead to more balanced planning and in-year management.
MoD is developing its approach to the management of in-year
budgets and forecasts. MoD also intends to move from managing
resources on an input basis to output costing and cost communication.
It is envisaged that the relationships developed between Front
Line and Support TLBs will draw out a more efficient use of support
services.
Benefits reported by TLBs include:
— maximising military capability for a given amount
of resource through better decision-making based on information
reflecting the alignment, for the first time, of activity data
with associated costs;
— enabling decisions on capital investment to be
based on more complete information;
— improving information on the holding and use of
assets, including the balance of their costs and operational capability
and their management, leading to disposals of assets and a clearer
discipline before they are retained;
— enhancing the visibility of performance with the
introduction of output costing;
— increasing the effectiveness and value of the
planning and finance functions from the co-location of personnel;
— increasing awareness of previously unrecognised
costs, especially the interest on capital costs of unfinished
projects;
— improved management of debtors, including the
earlier recovery of debts and better credit control; and
— better management of cash through more effective
central payments procedures.
17. FOREIGN AND
COMMONWEALTH OFFICE
Management information systems in place
FCO's current management information system is Metify ABM,
an activity based management system that draws financial information
from the accounting system. There is also a Fixed Asset Accounting
system, using Britannia software. The department is aiming to
replace or upgrade and to integrate all of the department's finance,
human resources and management information systems in the next
year or two. This is being done under the umbrella of one programme
entitled "Prism", the aim of which is to enable better
decision-making by allowing managers at all levels, in the UK
and at posts abroad, to access the real-time integrated financial
and management information they need to carry out their jobs effectively
and efficiently. The programme covers processes, working practices
and culture as well as IT systems.
Coverage
The Metify ABM system holds data required for expenditure
allocation reports, FCO's Schedule 5, grade costings and FCO internal
market and ad hoc costing reports. Budgeting will also be included
in the future. The system has indirect links to the department's
Integrated Manpower and Personnel system (IMPS) Financial Management
Accounting System (FMAS). The Fixed Asset Accounting (FAA) system
provides inventory management and tracking of all of the department's
assets. Prism is still under development. The intention is that
it will integrate all financial and human resources data, and
link directly to pay, e-procurement and other applications. It
will also link to the FCO's future Knowledge Management systems.
Use made of information drawn from the systems
The Metify ABM system is used in the resource allocation
round, in command decision-making, internal reviews, statutory
reporting, the departmental report and internal market reporting.
The FAA system is used for asset verification, depreciation and
cost of capital calculation, fixed asset planning and budgeting
and as a detailed asset register to support resource accounts.
Benefits achieved
FCO has identified the following benefits arising from information
drawn from their systems:
— recognition that capital is no longer a "free
good" subsequent to the year of its purchase;
— a better understanding of what should go into
"rent or buy" and capital investment decisions;
— a more general awareness that excessive cash and
stock holdings incur a capital charge penalty;
— a demand for more and better training so that
staff everywhere can appreciate the need for resource information;
and
— the need to cost outputs has raised the profile
of financial and accounting areas since resource consumption has
become relevant to all departmental staff.
18. DEPARTMENT FOR
INTERNATIONAL DEVELOPMENT
Management information systems in place
DFID's main management information system, known as Performance
Reporting and Information System for Management (PRISM), was launched
in November 2000 through the department's internal Intranet system.
PRISM generates analysis on the allocation of resources and on
performance by country, objective and sector, and is supported
by the department's Policy Information Marker System (PIMS), introduced
in 1993, which analyses bilateral commitments and expenditure
on priority areas of the aid programme by objective. PRISM and
PIMS are key tools for linking the department's objectives and
programmes. While PRISM is the main system for reporting on performance
assessments, DFID has significantly enhanced access to spending
information for budget holders and senior management through its
CODA accounting system, linked into a Powerplay cube system which
also provides improved forecasting and reporting capacity for
spending departments and is being further developed to improve
suspense management.
Coverage
PRISM allows all staff in DFID's offices in the UK and overseas
to access information across the whole overseas aid portfolio,
including project data, project performance information, financial
information and related areas. The information can then be collated
and analysed in a wide range of ways to provide material for the
department's Service Delivery Agreement (SDA), departmental report
and strategy papers. PIMS is available to all users who have access
to PRISM.
Use made of information drawn from the systems
Information drawn from PRISM is used for day-to-day management
of programmes, country, sector and institutional analysis and
policy management and reviews, sharing information and experience
around the office and improving future project design, as well
as for the department's SDA and departmental report. The main
customers of the information are senior management for management
of the aid programme, and to contribute to reports and strategy
papers; the Treasury and taxpayers through the SDA; and Parliament
and taxpayers through the departmental report. Data from PIMS
is used for internal and external purposes to provide information
on number of projects and associated expenditure/commitments in
each policy area.
Benefits achieved
Improving access to financial and performance information
made available by the department's management information systems
to staff in both the UK and overseas will increase the department's
responsiveness to new developments and improve the management
of its aid programmes. The department is also currently exploring
the scope for increased use of activity analysis to identify more
clearly the costs associated with different objectives. Since
PRISM/PIMS are linked to DFID's finance system, the department
has the basics of an integrated management information system,
drawing together all relevant information, which is a major benefit.
19. DEPARTMENT OF
TRADE AND
INDUSTRY
Management information systems in place
DTI has introduced a new Financial Management Information
System (FMIS) to provide the necessary information to operate
RAB. The system utilises Oracle Financials version 10.7 SC 161
and includes modules covering the general ledger, accounts receivable,
accounts payable, fixed assets and purchase order processing and
commitments. The system will be upgraded to Version 11 after the
new accounts services contract comes into effect in April 2002.
Upgrading will be included as a requirement in the re-tendering
process. DTI has other management information systems in place
to cover in-year monitoring and forecasting; managing cash; monitoring
public service agreements; and resource allocation and management.
These systems are linked where appropriate to the FMIS and RAB-based
information from that system is incorporated into them as necessary.
The Oracle system is designed to act as the financial management
system of the department, providing all its financial management
information and feeding into other systems as appropriate.
Coverage
All bodies within the departmental RAB boundary are connected
to the FMIS. Detailed transactions for the core department are
contained on the system and for some of the agencies. The remaining
bodies within the departmental boundary have their own systems
for detailed transactions and financial management and include
summary balances only on the department's Oracle system.
Use made of information drawn from the system
The primary use of information drawn from the FMIS system
is to monitor the cost of the department and its outputs on a
resource basis and to make financial management decisions on the
use of resources. The system produces management reports to enable
all levels of managers in the department to monitor and control
expenditure and income against budgets. It assists the budgeting
process and provides details of all transactions. The system has
been necessary to produce resource accounts for publication. Resource
information is currently being used by departmental managers on
a shadow trial basis prior to full introduction in April 2001.
Information from the system is also being used to meet the new
cash management requirements.
Benefits achieved
The system is:
— providing resource accounting and budgeting information
for management of the department in a RAB regime;
— providing a single source of financial management
information which is more flexible and user friendly than the
previous system;
— improving system-generated reports providing management
information on cash and accrual bases;
— generating reports to the Treasury on an accrual
basis; and
— raising the level of financial awareness across
the department.
Implementation of RAB has required revising and re-issuing
financial guidance to managers across the department. Channels
of communication have been improved with those managers and training
has been provided (and continues to be provided) to all levels
of departmental managers. The number of staff with financial management
skills is being increased, including the number of accountants.
Although much has been done so far there is still more to do as
the department moves towards managing expenditure against budget
on a resource basis with effect from April 2001.
20. EXPORT CREDITS
GUARANTEE DEPARTMENT
Management information systems in place
ECGD has four IT-based management information systems in
place: Magnus covering the monitoring of cases and negotiation,
issued guarantees and exposure; TRACTS covering export finance
activities; Morse concerning debt reschedulings; and a finance
system based on the Coda package.
Coverage
All of the department's management information is derived
from the systems. Staff have access to the systems depending on
their job roles.
Use made of information drawn from the systems
In addition to controlling individual transactions, the systems
are used to monitor forecasts and budgets. Regular reports are
supplied to managers to monitor progress. The information is used
to build forecasts, control assets and assist in decision-making.
Benefits achieved
Areas identified by ECGD where benefits have arisen include:
— improved payment performance;
— improved control over the allocation of receipts;
— highly focused reports to monitor the business;
and
— elimination of disparate reports and replacement
with a single Monthly Financial Report.
21. OFFICE OF
FAIR TRADING
Management information system in place
OFT's Corporate Information System (CIS) is an IT-based integrated
corporate and divisional management information system designed
to assist management at all levels to manage their resources to
deliver effective outputs. It has links to the main financial
accounting system and complements OFT's asset management system
and bespoke software for the annual planning round.
Coverage
All of the department's financial management information
requirements are derived from the system, and all divisions within
OFT are connected to it. Managers can create their own reports
as well as producing standard versions of corporate reports.
Use made of information drawn from the system
The information drawn from the system is used for planning,
budgetary control, financial management and costing purposes.
Benefits achieved
OFT has identified the following benefits:
— improved control of assets;
— identification of the full costs of services provided;
— a demand for more and better training so that
staff everywhere can appreciate the need for resource information;
— greater focus on outputs and outcomes rather than
inputs; and
— improved reporting to the Operations Management
Group, providing a better basis for decision-making.
22. OFFICE OF
TELECOMMUNICATIONS
Management information system in place
OFTEL's management information system is SunAccount, a commercial
off-the-shelf IT-based accounting package. Other linked systems
include Britannia for fixed asset management.
Coverage
All of the department's financial management information
requirements are derived from the system. Reports are produced
for budget holders within the department and for the finance division.
The payroll and fixed asset systems feed into the main financial
accounting system.
Use made of information drawn from the system
Information drawn from the management information system
is used for budgetary control, preparation of accounts, control
of assets and financial propriety.
Benefits achieved
Benefits are expected to be realised over a longer period
of time, but there have been improvements to areas such as accountability,
acquisition and better value and use of resources, staff knowledge
and awareness, management and control over assets and management
reporting. Specific immediate benefits have included:
— improvements in the preparation of statutory accounts
including reporting in both cash and resource terms, which has
aided the smooth transition from cash to resource accounting;
— links to the fixed assets system, which allow
for better tracking of assets and minimise loss through appropriate
control. There is also better use of assets through an understanding
of expected life and capitalisation policy, eg upgrades and enhancements;
— management information which is more meaningful
to budget managers and more appropriate to the organisation;
— improved staff development: more budget holders
and mangers (non-finance-trained staff) have developed and become
more financially aware, thus improving accountability across the
department as a whole; and
— more effective centralised functions: centralised
buying and invoicing has led to better knowledge of, and control
over, available resources, ensuring that excesses are not held
over.
23. OFFICE OF
GAS AND
ELECTRICITY MARKETS
Management information system in place
OFGEM's management information system is SunSystems, and
off-the-shelf IT-based system which produces bespoke reports written
by the department.
Coverage
All of the department's financial management information
requirements are derived from the system.
Use made of information drawn from the system
The system is used by OFGEM's Management Information Section
(Finance) to monitor departmental and overall expenditure and
check on the accuracy of information on the system. The main users
of reports produced from the system are the department's management
committee, managers and finance officers.
Benefits achieved
OFGEM's activities have operated on a full cost recovery
basis since the creation of the two original regulators (OFFER
and OFGAS). The resource budgeting system and supporting MIS have
allowed the alignment of management reporting to a full cost,
accruals basis. This has helped to increase the transparency of
costs and the use of capital. In addition, long term assets and
liabilities have been brought into focus, leading to more effective
and efficient management.
24. INTERVENTION BOARD
Management information system in place
IB's Integrated Accounting System (IAS) is Oracle Public
Sector Financials, which comprises general ledger, account receivable,
accounts payable, fixed assets, purchasing, block guarantee, trader
registration and FAUDIT (an account for intervention stock movements
and produce Indent tables). All data are recorded on both a cash
and accruals basis. IB has a number of bespoke operational systems
that implement the European Community Common Agricultural Policy
through direct market support. These systems interface with the
IAS. IB's management information is drawn from the IAS and bespoke
systems, and is enhanced by an Excel/Access reporting system.
Coverage
In addition to the financial reports used by the finance
department, budgetary reports and variance analyses are provided
to Directors and budget cost collection centre managers throughout
IB. These are currently on a cash basis but are being replicated
on a resource basis. IB is presently developing its management
information system to support decision-making using RAB data.
It will provide IB's Management Group with monthly data on resource
consumption, financial statements that mirror Schedules 1-4 of
IB's resource account, related programme data and data on IB's
projects, anti-fraud activities and management of IB's risks.
This will provide an assessment of corporate governance and value
for money.
Use made of information drawn from the system
The IAS is used for IB's annual appropriation accounts and
resource accounts; it aids financial planning and management;
and it is the main tool for monitoring, control and reconciliation
of budgets, expenditure and receipts. It makes payments and records
receipts and provides the basis for IB's management of its fixed
assets and decisions on capital investments. Managers have the
facility to commission reports from the bespoke IT-based systems
to support their internal monthly reporting and performance measurement.
Benefits achieved
IB has been a Next Steps Agency since 1990 and has been producing
accrual accounts since 1992-93. The introduction of the IAS and
Oracle Public Sector Financials has brought this annual process
into the day-to-day business of IB, and has equipped IB to benefit
from RAB. Key benefits include:
— better decision-making based on the provision
of activity data and associated costs;
— an increased awareness of full costs, including
depreciation and cost of capital;
— improved information on the holding and use of
assets and capital investment/asset disposal;
— improved management of debtors;
— automation of some accrual-based routines and
period-end processes;
— improved cash flow management; and
— revision of the chart of accounts and the provision
of multi-hierarchy reports and drill down for different users.
25. MINISTRY OF
AGRICULTURE, FISHERIES
AND FOOD
Management information systems in place
At the core of the Ministry's and its executive agencies'
management information systems are the finance systems. Across
MAFF the underlying finance systems, which are mainly based on
Oracle Financials or SunSystems, are used to process each organisation's
finance transactions (from procurement of goods/services to the
payment of invoices) and to produce external reports eg appropriation
accounts, resource accounts, agency accounts and the departmental
report. For the generation of management information, accounting
information is fed into the mostly automated management accounting
systems (eg FPRS (SAS database) in core MAFF, Cognos in CSL) from
which management information is generated. Significant progress
has been made in both MAFF and its agencies towards shifting the
focus of management information from mainly cash budgets spent
to outputs delivered (and the cost of outputs delivered) ie output
focused management accounts. In the core ministry, plans for automating
the generation of output focused management information for all
levels of management are at an advanced stage, with the first
outputs expected in 2001-02.
Coverage
Standard reports depicting budgets and actuals and monitoring
performance against business plans are produced using information
generated from both the core-finance systems and operational systems.
In the main ministry, these reports are reviewed quarterly by
the management board. Reports are also available for all levels
of management, although some of the non-management board reports
are not generated from automated systems. There is action in hand
in the core department to automate the production of monthly management
accounts incorporating both financial (resource based) and operational
information, with the first set of automated reports planned for
2001-02. The agencies have similar processes and systems, and
in some cases are further developed with standard management accounts
generated from automated systems and available to all levels of
management.
Use made of information drawn from the systems
The information generated from the systems is used for budgetary
management, asset management and resource allocation, as well
as ensuring financial and contractual propriety. In the ministry,
a programme to integrate working practices into the management
accounts production exercise at the operational levels is under
development. In some of the MAFF agencies, the position is slightly
advanced with contract monitoring information and finance information
used to produce automatic management reports for project managers.
Benefits achieved
The implementation of RAB—in particular the analysis
of expenditure by objectives and Public Service Agreements—has
provided an explicit tool for linking activities and tasks at
the team level to the Ministry's objectives/outputs and outcomes.
The major benefits anticipated include the shift of the organisation's
culture from input (cash budget) focused to output/outcome focused,
albeit that this is probably some time in the future. Other benefits
anticipated are improved capital investment decisions that take
into account the opportunity cost of capital, better cash-flow
forecasting and hence improved working capital management.
26. FORESTRY COMMISSION
Management information system in place
The Forestry Commission's Financial Information System (FIS)
provides a fully integrated financial and management accounting
information system. The system has been built around CFACS, a
commercially supplied accounting software, which consists of a
series of modules which perform specific accounting functions
(general ledger, accounts payable and receivable, fixed assets
etc). A number of systems have been integrated with CFACS to produce
the FIS. Management information requirements are met by the use
of standard reports and queries as well as ad hoc queries using
third party tools. Spreadsheets are also widely used to analyse
data output.
Coverage
The Forestry Commission and its executive agencies—Forest
Enterprise and Forest Research—are connected to the system.
Reports are produced from the system for managers at all levels.
Use made of information drawn from the system
Information drawn from the FIS system is used to support
the decision-making processes in the business through the budgeting
process, monitoring actual income and expenditure against plan
and identifying variances, and monitoring cash.
Benefits achieved
Devolution has greatly complicated the introduction of resource
accounting since the Commission is required to produce a resource
account for the Westminster Parliament covering its core GB functions
and activities in England, and separate accounts for both Edinburgh
and Cardiff for its activities in Scotland and Wales respectively.
Devolution has also complicated funding issues, including resource
budgeting, underlining the need for robust internal charging arrangements.
One of the main benefits of the system in place is that it has
enabled the Commission to cope with the additional requirements
of devolution, including hard charging between the countries.
More generally, the system has provided the Commission with good
financial management information over a number of years, enabling
it to compete effectively with private sector companies in a highly
competitive business environment.
27. DEPARTMENT OF
CULTURE, MEDIA
AND SPORT
Management information system in place
DCMS has implemented McKeown's Integra, a commercial IT-based
modular accounting system to support its financial and management
accounting on a dual cash and resource basis Modules implemented
include general ledger, purchase ledger, fixed assets and purchase
order processing. Since its implementation, divisions have been
allocated accruals running cost budgets and this has been the
basis of internal budget monitoring, control and reporting. Implementation
of the fixed asset module in 1998-99 provided the opportunity
for the department to ensure its fixed asset register was as accurate
as possible. Production of Schedule 5 resource accounts, which
involves the use of spreadsheets, requires the input of sponsored
bodies in receipt of resources from the department.
Coverage
Access to the accounting system is provided to finance staff
and to staff in DCMS divisions, including invoice registration
officers, suspense account controlling officers and divisional
budget officers.
Use made of information drawn from the system
The information drawn from the system is used for internal
monitoring, control and reporting, as well as GEMS reporting and
Vote management. Monthly management accounts produced from the
system are reviewed regularly by the Finance and Planning Committee
(FPC), a sub-committee of the management board.
Benefits achieved
Information derived from the system has:
— facilitated the change from cash to accruals based
budgetary control and reporting;
— provided a better basis for allocating administrative
resources to divisional objectives and outputs;
— improved reporting to the FPC, thus providing
a better basis for decision-making;
— focussed the department's attention on fixed asset
management, capital planning and working capital management; and
— led to a greater emphasis on outputs and outcomes
rather than inputs.
28. DEPARTMENT OF
SOCIAL SECURITY
Management information systems in place
DSS has a strategy for replacing existing legacy systems
with an integrated approach. The first phase is in place, allowing
managers access to financial, pay, programme and benefit information,
as well as unit cost information. The second phase will build
on this by including other feeder systems.
Coverage
The focus of DSS' systems is business driven. Since the department's
functions are mainly concerned with processing claims and regularly
making a large number of relatively low value payments, its systems
concentrate on workload analysis and financial status. Provision
of information from a single source is seen as a priority.
Use made of information drawn from the systems
DSS' main management information systems focus on performance
management. They provide managers with information which links
input data (expenditure, volume and activity levels) with output
data (quality/accuracy and clearance rates). DSS' financial systems
provide information concerning financial performance, including
the introduction of balance sheet management, for example by way
of debt systems. Recovery of overpayments is treated as a priority.
Benefits achieved
Management of cash flow and other working capital balances
are two areas where improvements have been made since the introduction
of resource-based accounting systems and the implementation of
the Treasury's cash management scheme. It is anticipated that
the introduction of resource budgeting will deliver further improvements
to DSS' business planning processes, which will enable all managers
to take into consideration the full costs of the resources employed
in meeting their objectives.
One of the systems not mentioned above is a recently developed
Resource Allocation Model (Adaytum software), which DSS is using
to provide a better basis for the allocation of resources to front
line managers. Determining resource budgets will be predominantly
based on priced outputs, using standard prices, and forecast workloads.
The model incorporates regional variations in performance, cost
variations and allows budgets to be summarised for each tier of
management.
DSS has a number of ongoing difficulties associated with
the production of unqualified resource accounts. As a result,
work is currently in hand to migrate to the payment of benefits
by Automated Credit Transfer, directly into customers' bank accounts.
This will enable reconciliation of encashments with issues at
transaction level. Such a fundamental change in the payment process
will enable much improved accounting information to be available,
planned for 2005.
The move towards a single, fully integrated source of management
information provision will also significantly improve the quality
of such information.
29. SCOTLAND OFFICE
Management information system in place
The Scotland Office shares a Cedar Financials application
maintained by the Scottish Executive. The Scotland Office has
on-line access to the system for both input and running reports.
The Cedar system, which was installed by the former Scottish Office
in 1996, operates in parallel on the cash and accruals bases of
accounting. The Scottish Executive plans to replace the system
in late 2001.
Coverage
Cedar Financials provides the basis for all financial reports
used within the Scotland Office.
Use made of information drawn from the system
Information drawn from the system is used for budgeting and
monitoring expenditure and preparing accounts. The business of
the department does not call for a sophisticated or specialist
management information system.
Benefits achieved
The present system was installed partly to allow the former
Scottish Office to meet the requirements of resource accounting
and partly to make it possible to devolve financial control to
business units. With the advent of devolution, the system had
the flexibility to allow the new Scotland Office to maintain its
discrete set of accounts without having to incur any of the time
and costs that would have been required if it had been necessary
to select, install and maintain its own financial system.
The present system allows the Scotland Office to maintain
cash and accruals based accounts in parallel, without any duplication
of input. As most of the department's expenditure relates to staff
costs, there is little difference between the financial reports
produced under the two bases. The advent of resource accounting
is expected to require the department to give further consideration
to the cost of capital being incurred in respect of the property
it occupies.
The Scotland Office has a role in cash management matters
as an intermediary between HM Treasury and the devolved administration
in Scotland. Resource accounting is obliging the department, and
the Scottish Executive, to give closer attention to the profiling
of cash movements, with significant benefit to the taxpayer, by
informing the work of HM Treasury's Debt Management Office.
30. WALES OFFICE
Management information system in place
The Wales Office (WO) is currently in the process of reorganising
the management information from the existing financial system
to create a Financial Budgeting and Management Reporting System
using bespoke spreadsheets drawing information from financial
software systems. The new system should be fully operational by
the end of the current financial year. WO currently relies on
National Assembly of Wales (NAW) systems under which financial
information is generated.
Coverage
Information from the system, from which all of the department's
financial management information requirements are derived, is
provided to WO management. The NAW finance department, which carries
out finance work for WO on allied service basis, is also connected
to the system.
Use made of information drawn from the system
Information drawn from the system is used for planning, budgeting
and monitoring purposes.
Benefits achieved
As a small, new department essentially dedicated to the machinery
of government in Wales, there have been few opportunities to demonstrate
where the management information system has led to better decision-making.
However, the priority is to develop further a first class financial,
budgeting and monitoring system to set and control each of the
department's budget lines, in order to ensure best value for money
for all expenditure and to have full awareness of potential financial
pressures that may build up in particular areas.
31. NORTHERN IRELAND
OFFICE
Management information system in place
NIO's Financial Information System, based on McKeown's Integra
software, is an integrated modular financial accounting system
encompassing general ledger, purchase ledger, cash management,
expenses and fixed assets modules.
Coverage
The system provides regular monthly and ad hoc financial
reports to senior managers, budget holders and budget centre managers
in the core department. NIO's three executive agencies maintain
separate management information systems, which produce monthly
information for the core system and monthly reports to their own
managers and budget holders.
Use made of information drawn from the system
Information drawn from the system is used for planning purposes
and for monitoring expenditure and controlling budgets at different
levels within the department.
Benefits achieved
Benefits identified include raising the awareness of departmental
managers generally to the full costs of operations, timing of
expenditure and use of assets. The NI Prison Service (one of the
department's agencies) maintains a hybrid management information
system, which provides information on accruals and consumption
of assets so as to enhance budget monitoring. NIO proposes to
extend its management information system and to incorporate RAB
information to monitor and control expenditure and budgets on
a full costs basis, to link inputs with outputs, to ensure better
management of assets and to improve the control of suspense accounts.
32. HM TREASURY
Management information systems in place
The Treasury's domestic financial management information
system for the purpose of internal management of its own departmental
operating costs is FAMIS. The system runs using CFACS software
(Version 7.3) produced by Cedardata and comprises a cash and accruals
accounting system and fixed assets module. The Debt Management
Office and Office of Government Commerce are connected to the
FAMIS system, which will be replaced in 2001 by a new system with
the same role but with greater functionality. It will also be
web-enabled allowing it to be accessed via an Intranet.
The Treasury also operates a number of other systems for
"corporate" monitoring and control to meet its wider
responsibilities for managing the public finances. The main systems
under this category are:
— the Treasury Economic Service (TES) database and
the Treasury Economic Model (TEM);
— the public expenditure (PES) database and Financial
Information System (FIS);
— the General Expenditure Monitoring System (GEMS);
and
— the Treasury Accounting System (TACSYS).
The Treasury develops such systems to satisfy the overarching
requirement of ensuring that its information systems maintain
their support for the overall business needs of the department.
Coverage
All of the department's domestic financial management information
requirements are derived from FAMIS.
The TES database (using Interbase 5.6) allows access to a
wide range of economic time series provided by the ONS, IMF and
OECD.
The PES database holds public expenditure outturns and plans/forecasts
at a detailed sub-programme level spanning a period of up to nine
years. The coverage is total public sector, including local authorities
and public corporations.
GEMS is a monthly monitoring system used to collect in-year
outturns and profiles of Supply drawdown, DEL and AME expenditure
and capital spending.
TACSYS is the system used to manage the operation of the
Consolidated Fund, National Loans Fund and related activities
such as borrowing, lending, financing government departments'
spending via the Supply system, cashflow forecasting and monitoring.
Use made of information drawn from the systems
FAMIS' main uses include the production of statutory accounts;
the collection of income and raising of invoices; as a general
ledger providing full audit trail on all of the Treasury's domestic
transactions; and the production of management reports for budget
liaison officers (BLOs) and budget holders.
The TES database is used extensively to provide inputs for
the Treasury Economic Model (an econometric model used for forecasting
and simulation), for briefing material on a variety of economic
statistics and for internal research. Virtually all of the data
produced by the TES database is published. The forecast output
from the TEM is published twice a year in the Chancellor's Budget
and pre-Budget reports.
The PES database is used to produce the detailed expenditure
tables for Supply Estimates and departmental reports. A comprehensive
set of statistical analyses drawn from the database is published
in Public Expenditure Statistical Analyses (PESA) alongside the
Supply Estimates. The PES database also supplies the starting
data and a cross-check for the separate GEMS datatrawl. The FIS
system, which provides a means to analyse and monitor public spending
in support of the Treasury's objectives, is used to maintain,
update, interrogate and report from the PES database.
GEMS is used to produce the spending side of central government's
account in Public Finance statistics; for monitoring in-year spending
to underpin in-year expenditure control; and for in-year evaluation
of the Central Government Net Cash requirement. GEMS is currently
being converted to an accruals basis, to underpin the new resource-based
expenditure planning and control system being introduced in 2001-02.
TACSYS handles the central funds' processes and generates
the necessary data for the annual accounts and detailed tables
published in the Supplementary Statements.
Benefits achieved
FAMIS has:
— facilitated change from cash to accruals budgetary
control and reporting;
— provided a common database for the production
of budget reports, BLO enquiries and statutory accounts: direct
access by team leaders and BLOs has facilitated more effective
delegated budgeting;
— facilitated automation of some accruals routines
and period-end and year-end processes to enable robust resource
account reporting on a monthly and annual basis;
— provided multi-hierarchy and multi-structure views
to be extracted from a common universal database, to satisfy varying
information requirements for different users;
— provided an audit trail of transactions to reports
and output for robust internal and external reporting to satisfy
audit requirements;
— the fixed assets module provides an audit trail
from inventory of assets to resultant revenue transactions.
Together, these factors will help to provide a better basis
for determining the allocation of resources and for linking costs
to departmental outputs and outcomes.
The "corporate" systems have allowed the Treasury
to continue to meet its strategic objectives for the management
of the public finances during the transition to RAB.
33. HM CUSTOMS AND
EXCISE
Management information system in place
HM Customs and Excise's Resource Management Information System
(RMIS) is a key tool in the department's decision-making process,
developed with a specific focus on RAB requirements. It is an
IT-based off-the-shelf system built using Oracle's Financial Analyser
and Express database software. It contains a wide range of information
to enable managers to make properly informed decisions. It brings
together information on operational performance, expenditure and
staff deployment. RMIS is designed to meet the department's requirement
for a prime, consistent and timely source of key resource management
information.
Coverage
RMIS supports:
— implementation of Resource Accounting and Budgeting;
— development of resource management policy and
good practice;
— management decisions by producing reports and
analyses at all levels;
— production of activity and other cost information;
— linking of inputs and outputs; and
— the resource management cycle of planning, budgeting,
profiling, monitoring and reporting.
RMIS has been implemented in over 350 sites within the department,
covering HQ and regional offices, managers and their supporters
and users of departmental and local level data.
Use made of information drawn from the system
RMIS supports management information needs by processing
and reporting data throughout the resource management cycle. It
can report direct data, such as number of outputs achieved and
amount of expenditure incurred, or derived data such as costs
of activities or number of activity hours per staff year. In addition,
RMIS has high level or central business uses, including providing
data for monthly management reports against which in-year progress
is monitored and progress against the Public Service Agreement
is reported to the Treasury; producing Schedule 5 of the department's
resource accounts; supporting the management and deployment of
resources to key activities; and supporting the resource management
process, resource budgeting and the Government's focus on outcomes.
Benefits achieved
The department has developed a comprehensive set of management
reports which bring together information on operational performance,
expenditure and staff deployment and progress on significant projects.
The reports, which are updated on a monthly basis, are used by
the Management Committee to monitor progress and guide any necessary
action. RMIS is a key tool used to supply data that feeds into
the management reports. It is also used to calculate the department's
year-end performance and to produce Schedule 5 of the department's
resource accounts.
To further strengthen the link between the department's objectives
and the resources available to deliver them, the department has
brought together its central planning and finance functions and
created a small team to develop necessary training and guidance
on resource management. Part of this process will include assessing
what control systems are needed and the appropriate level of delegation
for resource budgets, including management of fixed assets and
working capital.
34. INLAND REVENUE
Management information systems in place
The Revenue's top-level financial management information
systems are the Resource Operating Statement and Balance Sheet
Extract, which provides a framework for staff usage, asset consumption
and resource costs for all of the department's organisation units;
and the Management Accounting System (MAS), which provides Memorandum
Trading Accounts for in-house Direct Service Organisation and
costing data for charging purposes and for standard costs used
within business cases. These reports come from the corporate general
ledger, which is fed by systems providing purchasing, payroll
and management information and capital asset management support.
All of these provide on-line and paper management information
to finance managers across the department.
Coverage
The Resource Operating Statements system is linked to Business
Operations Division Costing and Resource Allocation Model, and
provides reports for all budget and finance managers with delegated
financial authority. The MAS system is connected to direct service
organisations, finance division and business management and services
division, who are the main customers of its reports.
Use made of information drawn from the systems
Reports are made quarterly to the Departmental Management
Committee (DMC) on progress against the departmental budget. The
DMC takes decisions on the basis of this information on prioritisation
of work, purchase of fixed assets etc. Quarterly reports are also
made to the DMC on progress against all PSA/SDA targets on the
basis of data from a wide variety of management information systems
within the department's operational offices (eg on debt management,
compliance targets etc). Balance sheet information on capital
assets and working capital is provided to senior budget holders.
Benefits achieved
For many years, the Revenue has run an extensive delegated
budgeting system, with monthly operating statements reporting
outturn against budgets and offices having online access to the
department's management information systems. That experience had
the significant advantage of allowing the Revenue to introduce
resource budgeting a year early, with the result that all of its
delegated budget systems are already accruals-based and include
non-cash costs.
The main specific benefits arising from information drawn
from the systems have been in the area of control and reporting.
Proper stock accounting and accruals-based DEL budgets have enabled
managers to improve control, particularly in the areas of stockholding
and annuality. This builds on the already well established hierarchy
of financial devolution. Local management budgets now align in
most areas with resource accounting, and reporting on budgetary
matters to DMC has improved with the introduction of RAB with
the regular reports referred to above and a greater financial
focus.
For the future, although budget holders are not yet directly
responsible for budgeting for the main non-cash items (depreciation,
cost of capital charges and provisions), providing them with access
to this information allows them to monitor it and will increase
awareness of the potential impact of balance sheet items on budgets
and the importance of keeping asset registers up-to-date and monitoring
and controlling working capital balances.
35. NATIONAL SAVINGS
Management information system in place
National Savings' Adaytum Planning Model is IT-based integrated
software which brings together business planning requirements
and financial costs.
Coverage
The system is connected across the department, and interfaces
to other systems currently being established. Reports are made
available by the department's Finance Directorate to all levels
of management.
Use made of information drawn from the system
The main uses to which information drawn from the system
is put are:
— National Savings product (investments) cost allocation
for decision-making purposes and in support of Schedule 5 of the
department's resource accounts;
— measurement of business activity;
— cost scenario planning for new products; and
— monitoring against internal and external targets.
Benefits achieved
The system is currently under further development to enhance
the coverage and quality of information produced. Interfaces to
the finance system are also being actively investigated. New software
is being installed to help produce more sophisticated product
information that will enable National Savings to produce rolling
forecasts and five and 15 year plans. The information, once developed,
will assist product costing. The present system has limitations
in projecting information forward; the Adaytum software will provide
product information which will be used to inform planning, pricing
of products, working out "what if" scenarios and comparing
costs against the remit under which National Savings operates.
36. NATIONAL INVESTMENT
AND LOANS
OFFICE
Management information system in place
The department's data records are maintained on a Unix database.
Coverage
All National Debt Office and Public Works Loan Board records
and reports etc are maintained on and produced from the database.
NILO has a small team of programmers on site who can produce answers
to most queries very quickly by interrogating the database.
Use made of information drawn from the system
The database is used to produce ad hoc reports for the NILO
management team for monitoring budget and other performance targets.
Benefits achieved
The system is reviewed regularly to ensure that the coverage
and quality of information produced is in line with the needs
of the department. Recently, part of the system was substantially
re-written to cope with the introduction of RAB. The main benefits
from that are more regular reporting to management and improved
accounting arrangements. The future inclusion of non-cash items
(depreciation, provisions and cost of capital) will increase management's
awareness of the significance of these items in the department's
budget. It is envisaged that the system will be enhanced in due
course to bring about an improvement in the management of the
department's assets.
37. OFFICE FOR
NATIONAL STATISTICS
Management information system in place
ONS' management information system is CHESS, comprising Sage
Chameleon software enhanced by an Excel/Access bespoke system.
Coverage
All of the department's financial management information
requirements are derived from the system. The main users of reports
produced by the system are the department's management board and
budget managers. There are linkages to the department's other
systems, notably various feeders from payroll, time recording,
computer usage and other systems that produce prime inputs or
journals.
Use made of information drawn from the system
The information drawn from the system is used for the planning
and monitoring of expenditure and for the production of the department's
annual accounts.
Benefits achieved
ONS' management information system has provided expenditure
information on a resource basis, and been the source of the published
accrual account, since the Office was formed in 1996. The main
change resulting from the introduction of RAB will come in 2001-02
when delegated budgets are also expressed and managed in resource
terms. It is expected that the main concentration of effort will
then be on using the system to focus on the long term resource
costs of holding assets, thus informing the decision-making process
on capital spending and bringing about a general improvement in
asset management.
38. GOVERNMENT ACTUARY'S
DEPARTMENT
Management information system in place
GAD's management information system is the IT-based Management
of Business Progress (MBP).
Coverage
The MBP system comprises three system packages:
— Progression—an invoicing module which is
also the vehicle for recording all client data;
— Electronic Time Capture—a time recording
database; and
— Crystal Reporting—which is used to report
on the data provided by the other two systems.
Use made of information drawn from the system
The system is used for billing clients and as a provider
of budgeting and planning information for GAD's senior management
through the use of various analyses, eg proportions of chargeable
time, values of work etc. GAD's finance department is the main
supplier of reports, although managers have the facility to customise
individual reports.
Benefits achieved
For the last 10 years, GAD has been largely self-financing,
providing its actuarial services on a fee-paying basis, and has
therefore long been business and commercially orientated. The
benefits associated with the use of good management information
systems are already recognised, as they underpin the accuracy
of existing budgeting and planning information provided to GAD
senior managers. The introduction of RAB is taking this process
a step further.
39. CABINET OFFICE
Management information system in place
The Cabinet Office's current management information system
is the IT-based VISION, which is the "front end" tool
for the department's Resource Accounting System.
Coverage
VISION provides user-friendly access to accounting data for
three key user groups: the department's accounting centre, Estimates
team and the network of finance officers who oversee local budget
and financial management.
Use made of information drawn from the system
The main uses to which information drawn from the system
is put are planning, monitoring, review and reporting of the financial
position at all levels within the department. The main customers
of reports produced from the system are Management Unit Heads
(Directors), finance officers and the department's procurement
network.
Benefits achieved
The main thrust of the department's systems development to
date has been to enable it to meet the requirements of the RAB
"trigger point" strategy and the production of resource
accounts. The next phase will shift the focus to internal resource
management, and the department's accounting systems are being
enhanced to support this through the implementation in 2001 of
a new Monitoring and Reporting System (MARS), which will capture
key elements of the department's business planning, including
PSA/SDA targets and management unit plans. MARS will provide managers
with information about their financial commitments, and enable
target owners to provide real time progress reports and data about
the status of the department's key targets and resource usage,
allowing end-users to cut and slice information according to requirement.
One feature will be a traffic light system of reporting to identify
criticalities, successes etc. Development of the department's
internal processes and systems is being supported by a comprehensive
training and education programme. Taken as a package, the department
believes that these initiatives are having, and will continue
to have, a real impact, particularly in the area of linking costs
to deliverables, where the greatest benefit is anticipated.
40. CENTRAL OFFICE
OF INFORMATION
Management information system in place
COI's Management Accounting System (MAS) is a finance and
management accounting system accessible by any desktop PC in the
department. The system includes budgets, forecasts and actuals
for manpower, expenditure and revenue data by cost centre and
by job for management accounting purposes.
Coverage
All COI sections are connected to the system, including offices
in the regions. Data is downloaded for spreadsheet work and there
are monthly transfers of data from job management and internal
charging systems. Reports are produced for the management board,
budget holders, job managers and central finance team.
Use made of information drawn from the system
Management accounting information is used to aid budgeting,
forecasting and monitoring by cost centre and job. The system
is also used to produce statutory accounts. Plans are in place
to replace the existing finance system with a web-enabled version
allowing reports and enquiries to be accessed via an internet
browser. Workflow processes are being introduced in parallel with
an electronic document and record management system.
Benefits achieved
COI has been using an accruals-based, resource-focussed system
since 1984. Benefits identified by the department arising from
the use of such a system, driven in particular by the move to
repayment and closer links between inputs and outputs, include
greater cost awareness, greater efficiency in terms of both asset
and staff use, better client focus and enhanced accountability.
41. PRIVY COUNCIL
OFFICE
Management information system in place
The Privy Council Office's Management Financial Information
System uses Microsoft Excel software for monitoring budgeted and
actual spending by the Office on a monthly basis.
Coverage
Reports are provided by the Deputy Establishment Officer
to all PCO budget managers. There is a manual link to the Office's
resource accounts package.
Use made of information drawn from the system
The information drawn from the system is used to review financial
performance for the management board and Principal Finance Officer.
Benefits achieved
The system had improved significantly the ability of the
finance department to provide up-to-date information to the management
board, which has enabled the board to make more informed decisions
regarding day-to-day as well as longer term running of the department.
The system has proved to be time saving within the finance area,
although further automation is planned in order to deliver further
improvements. The accurate recording and updating of the department's
assets has been of particular benefit to the department.
HM Treasury
December 2000
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