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 firstname.lastname@example.org
20 January 2012