Significant fiscal challenges are forcing change in the way central government works. The Better Public Services Advisory Group Report of November 2011 recognises these changes and recommends that better services, results, and value for money are needed throughout the public sector.
Cross-functional and cross-sector service priorities and needs mean that the structures, strategies, and operations of the Government and its agencies are being redefined. The Better Public Services Advisory Group emphasises the need for:
financial flexibility to:
- ensure that results are in line with priorities;
- reduce duplication; and
- improve information systems; and
- stronger leadership, including a more strategic financial management approach from chief executives.
To work out in a co-ordinated way where financial resources are directed, how they are controlled, and, ultimately, what value they create is fundamentally important. Therefore, we wanted to review whether central government's financial management system allows us to understand and manage our financial resources within and throughout government and, if not, what needs to change.