TNAG-2077-FCO40-2957-Hong-Kong-culture-1990 — Page 128

In confidence

financial management in Whitehall and to press for further freedom from controls which continue to restrict the Council's potential for growth.

15.3 Director-General's Department (DGD) will assume prime responsibility for ensuring that value for money is achieved throughout the organization, and will continue to develop planning. Principal objectives are:

⚫ to develop techniques for measurement and evaluation of the impact of the Council's

programmes

⚫ to produce, by 1991/92, guidance for managers on measuring efficiency improvements by linking inputs to outputs

⚫ to improve, by 1992/93, systems for ensuring that the activities of service and specialist support departments match the needs of their customers in operational departments

• to define and test corporate efficiency and effectiveness measures and improve systems for collecting data, by 1991/92.

15.4 Some of this work will be undertaken by staff from Management Services Department who will form a Management Inspection and Consultancy Unit (MICU) working alongside the planning team in DGD. In line with the increased devolution of responsibility to managers, MICU will change the main emphasis from regular staff inspections to the provision of a consultancy, advisory and review service, besides continuing to ensure that the Council's parity with Civil Service loading and grading standards is maintained.

15.5 In the press and public relations section of DGD, priority will be given to ensuring that the Council's role in cultural relations is understood and supported by Parliament and the general public and to improving internal communications during the period of restructuring and relocation. A strategy and implementation plan for improving internal communications will be agreed and implemented by September 1990; the target is to be in a position demonstrably to measure improvement by May 1991.

Principal efficiency and effectiveness measures for corporate management and control

• % of Corporate Plan targets achieved

• % real growth in the Council's operating income

• number of sources of Council income in excess of £1 million

• British Council efficiency gains as % of total grant-in-aid

⚫ number of headquarters-managed sponsorship projects with British business companies

• total direct costs of corporate management and control as % of British Council operating income.

Finance

(Corporate financial direction, accounts, audit, budget maintenance)

15.6 Priority concerns during the planning period are:

•

⚫ supporting the negotiation and implementation of new contractual arrangements with ODA and FCO

⚫ supporting initiatives to increase operating income and diversify sources of income

• promoting a greater degree of financial capability and enterprise in all units of management, particularly those which are revenue-earning.

A major focus of management effort in 1990/91 is the consolidation and development of the activity analysis and new financial systems.

15.7 With the aim of improving operational financial management and improving the cost effectiveness of corporate financial services, principal objectives are:

• further to devolve financial authority and responsibility where this will lead to improved performance

• to improve the quality of financial management information provided to managers

⚫ to relate financial training to identified weaknesses and opportunities

⚫ to simplify routine financial procedures

to develop corporate financial performance measures and trend and variation analysis by 1991/92

• to introduce systems which lead to more effective cash flow handling by 1992/93

⚫ to improve the efficiency of central financial services; the main target is to reduce costs by 15% of 1988/89 levels, by April 1993.

Principal efficiency and effectiveness measures for the corporate finance function

• total direct net costs of the corporate finance function as a proportion of British Council operating income and of total programme

• variation between outturn and forecast on corporately controlled budgets

• date the Council's accounts are delivered to the National Audit Office for certification

• % of managers recording satisfaction with financial services provided from the centre.

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