With a signifiant number of Chartered Accountants working in the public sector, the Public Sector Committee has ambitious plans for 2016 and beyond, writes David Thomson.
When introducing the 2016 Budget last October, the Minister for Public Expenditure, Brendan Howlin, set the expenditure forecast outturn for both current and capital expenditure at €54.9 billion. Public expenditure this year in Northern Ireland is around £16 billion. Taken together, that is considerable expenditure across the island and it is vital that it is managed in the best possible manner. The public sector influences the lives of every citizen and has an important impact on the economy. The general public expects high-quality public services and a good return for the taxes they pay. Good financial management in the public service is therefore critical.
The public sector, both in the Republic of Ireland and Northern Ireland, is undergoing significant reform and there are ambitious plans for the respective reform programmes to continue. Financial management must be a key part of these programmes. It is in the public’s interest that spending decisions are made on the basis of proper data and in an efficient and effective manner. Accountants can play a pivotal role in ensuring this happens but in the past, unfortunately, finance professionals have not been included in spending decisions.
Northern Ireland has already introduced significant improvements in public sector budgeting and accounting with all government departments and public bodies producing accruals-based accounts. All departments are also required to have a qualified accountant on the management board. The Institute is very supportive of such initiatives to improve financial management and is keen to promote best practice in this area, with particular emphasis on the introduction of accruals accounting throughout the public sector in the Republic of Ireland. This would be a seminal event for government accounting and planning should start now.
Supporting our members
The public sector is a broad category encompassing members working in various sectors including the civil service, health, education, semi-state organisations and public utilities in both the Republic of Ireland and Northern Ireland. The Institute’s 2014 member survey indicated that 7% of our membership works in the public sector, including the civil service and semi-state bodies. In Northern Ireland, that percentage is much higher.
A number of Chartered Accountants have reached senior positions throughout the public sector in recent years, reflecting the expertise and experience we bring to the table. One of our members, Graham Doyle, was recently appointed to the position of Secretary General in the Department of Transport Tourism and Sport, the first time an accountant has held such a position in the Republic of Ireland. The Institute must work to support the varied requirements of our public sector members and be the voice of professional accountancy practice in the public sector, promoting best practice and providing tailored resources and support. The Institute’s recently-published Strategy 2020 identified three key themes in this regard:
- Attracting the brightest and best to become Chartered Accountants;
- Being relevant to members; and
- Being the authoritative public voice of the profession.
Each of these themes are as relevant to the public sector as other parts of the economy. As we enter the implementation phase of the plan, the Institute’s support of its members in the public sector is seen as being of particular importance in the years ahead. In his address at last year’s annual general meeting, President Tony Nicholl identified members working in the public sector as one of the priorities for his year in office.
Council considered a paper on the public sector at its November meeting and Council was unanimous in its desire to support public sector members. That paper set out a number of initiatives, which we intend to implement in the coming years.
Continuing the committee’s good work
I had the privilege of taking over as Chairman of the Public Sector Committee this summer. The committee has been very successful in arranging events in the past and I congratulate my predecessors on the work they have done in raising the profile of the public sector.
That work continues and, in the last six months, we organised a number of seminars dealing with topics such as audit committees, current regulations and risk management. We also hosted the Minister for Health, Leo Varadkar TD, who gave a major speech on the health sector in Chartered Accountants House last November. In addition, the Ulster Society has a very active public sector group that focuses on particular issues facing members in Northern Ireland.
As both a Chartered Accountant and a recently-retired senior civil servant, I hope I can utilise my expertise to assist public sector members across the island. I am also very keen to see members in the public sector take a more active role and, in particular, join the Public Sector Committee and help broaden its scope. In the coming months, we will also publish a series of articles in Accountancy Ireland to introduce you to members in the public sector and address current issues.
David Thomson is a Council member and Chair of the Institute’s Public Sector Committee.