Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The Department remains a long way short of having the finance skills it needs to...
Conclusion
The Department remains a long way short of having the finance skills it needs to manage the Plan effectively. Strong financial skills are needed to manage the large and complex set of programmes, crucial to a well managed and affordable Plan. But according to HM Treasury, the Department is in the third quartile of government departments in terms of financial capability. The proportion of Finance staff with professional qualifications has only increased from 41% to 43% in two years, against a target of 60%. There are hundreds of gaps in finance staff across the Department. Ministry of Defence Equipment Plan 2021–31 7 We acknowledge that some progress is being made, with around 400 staff studying for qualifications, but progress is very slow even taking account of the disruptive effect of the pandemic over the last two years. Recommendation: The Department should accelerate its efforts to increase its financial skills by making a career in finance more attractive and making qualifying easier. It should aim to be in the top quartile of financial capability within government departments within 3 years and set out a credible plan to achieve this.
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2023 5.2 The department is committed to improving financial professionalism recognising that this is vital to improving financial outcomes. It takes time to train personnel and the department works with the professional bodies and academic providers to tailor programmes to individual’s needs, recognising the diverse needs of the profession. The department is committed to supporting professional development with over 500 personnel studying a professional qualification. With around 200 finance apprentices, the department is committed to providing a balance between gaining the professional qualification and relevant work experience. 5.3 The department is fully committed to the Government Finance Function (GFF) ambition of ensuring at least 60% of the finance profession are qualified and is working to be in the top quartile in both capability and broader departmental performance. The department progresses on the right trajectory achieving substantive assurance for the finance function in 2021-22 and improved positioning on In-Year forecasting performance. 5.4 The department continues to develop a range of interventions to improve workforce retention and enable effective and efficient study. These include embedding the Government Finance Function Career Framework, developing associated career and learning pathways with standardised role templates clearly articulating the level of qualification required at each level and supporting lateral moves across the Function to meet development needs. Attraction interventions will be developed as part of the employee value proposition. 5.5 The department has launched a mentoring scheme to support personal development and continues to strengthen its financial capabilities more broadly through mandatory training, key topic webinars and training to improve general business skills.