Financial Management Maturity Model
Good financial management is at the core of good management in
government. It supports decision making and the effective running
of organisations.
Download the
Financial Management Maturity Model (PDF - 104KB)
What is the Financial Management Maturity
Model?
The model links practice and awareness of financial management
to possible outcomes an organisation might expect. For example,
where a level one organisation might have incomplete and inadequate
financial management practices in place, a level five organisation
could be expected to have leading edge financial management
practices in place. Not all organisations should necessarily aim
for level five – it will be a matter for each organisation’s
judgement which level is appropriate for its business needs and
whether the cost of transformation is proportionate.
An organisation’s ability to achieve its goals or outcomes is
affected by both the maturity of its financial management and by
its awareness of that maturity. Organisations have different levels
of financial management practice which range from that of a low
functioning organisation to that of an organisation with systems
amongst the best in the world. In turn the organisation’s financial
management practice and awareness impact on the outcomes that the
organisation can expect.
The NAO have developed this assessment tool for use on its
audits of financial management. We are grateful for comments during
development from HM Treasury, CIPFA, the Audit Commission, PWC and
practitioners.
How can you use the Financial Management Maturity
Model?
Organisations can use the model as an audit tool for
self-assessment.
For more guidance or information, please contact z5-fmgp@nao.gsi.gov.uk