Central government organisations increasingly operate in an environment that relies on real-time information. Decision-makers need to respond to unexpected events with increasing frequency; the past five years alone have seen a pandemic, soaring inflation and machinery of government changes – to name but a few.
As a result, decision-makers require a level of financial and non-financial information that covers not just what has happened, but what might happen.
These challenges present finance teams and leaders within government with a big opportunity to get the most out of the information they report.
Bringing insight to you
Reporting for decision-making, the fifth and final chapter in our financial management in government good practice guide series, draws on insights from senior finance decision-makers across government and other sectors – as well as our own back catalogue of financial audit and value-for-money work.
In our conversations with finance professionals, we heard about the barriers that make effective reporting challenging.
The guide outlines four key principles to build the foundation for better reporting and improved decision-making:
- Understand the purpose of reporting – make sure reporting systems are focused on outcomes and objectives, aligned with strategic priorities and suitable for the needs of decision-makers.
- Set the standard for quality data – encourage finance teams to focus on relevant and timely data to deliver a reliable and comprehensive view of organisational performance.
- Modernise reporting systems and processes – how leaders can champion the integration of financial, operational and performance systems that deliver real-time insights tailored to user needs.
- Encourage positive behaviours – showing how leaders can build a culture where individuals across the organisation routinely interact with financial information to make informed data-driven decisions.
For each of these four principles, we set out important actions that finance leaders and teams can take to drive better reporting and enable decision-makers to push for better outcomes.
The case for innovation
Government needs to innovate to meet these varied challenges head-on.
Our guide shows examples where organisations have developed dashboards to bring data together from across interoperable systems, and developed portals to build transparency and encourage participation in environmental sustainability.
Reporting of information is the lifeblood of all organisations – whether it is reporting on spend, performance or risk and opportunity management.
The challenge lies in presenting this information in a way that is both accessible, timely and aligned to an organisation’s strategic objectives.
Finance teams are pivotal in meeting this challenge head on, promoting ways of reporting that enable senior leaders to make smart and strategic decisions for the organisation as a whole.
Find the guide at nao.org.uk
