Guidance on the phasing of training for users of resource

accounting and budgeting information

A number of departments have asked for guidance on how training might be phased in over the period 1996 to 2000. At this stage it is difficult to give other than general indications, since:

- the timing for moving the Survey onto a resource basis has yet to be finalised. The current working assumption is that there will be phased
introduction and that 1999 will be the main transition year to a Survey incorporating many elements of full resource-based process.

- the final responsibility for training rests with departments, each with their own timescale for the introduction of the new form of accounts. The
assumption below is that resource accounts will be produced for the first time for 1998-9.

2. In the light of the above, some principles for the training process might be to:

- reflect the requirements of those involved as closely as possible. Training that is too general ("accountancy for non-financial managers") too linked to the private sector ("company accounts for beginners") or delivered to those about to move to other jobs will be a waste of scarce time.

- often focus on providing the necessary skills to allow non-specialists to know how to use specialists, rather than having to acquire all the specialist knowledge themselves

- cover the output and performance measurement aspects of resource accounting and budgeting as well as accrual-based accounting

- not come too early, since the knowledge will atrophy without a context and early reinforcement through use.

Decision-makers

3. For what will normally be most of those in managerial positions using the new information as part of financial decision-taking, the training will need a link to the decisions to be taken. To take some examples (in diminishing order of time required):

- those responsible for the management of the departmental estate will need detailed knowledge of the principles of accounting for fixed assets and the capital charging regime

- those dealing with working capital will need elementary instruction in working capital management

- those involved in decisions about costs (presumably including most of the senior and middle management) will need background briefing to show the relationship between cash and accruals accounting

4. While many departments are already developing training strategies for resource accounting, it is important that these also read across to the
timetable for implementing resource budgeting. The timetable for the latter will be clearer by early 1997 and departments may then wish to consider how to achieve this read-across.

5. The timing of the training could be linked to the production of the first information to be available. Departments that have not already done so may wish to consider producing outline plans (and to compare these with those of other departments) in the latter part of 1996, on the assumption that training for the new skills will be required in the period 1997 to 2000, with particular emphasis on 1998 and 1999. After 2000, the skills will form a normal part of the requirements for Civil Servants in senior managerial or relevant functional positions.

Survey participants

6. For those involved in the Survey, it is clearly essential that departments and the Treasury share a common skill base. While the details will need to be settled for each Survey in the transitional years, an incremental approach to training would seem sensible. The content and phasing will need to reflect the current state of accountancy knowledge among those responsible for the Survey, the implementation timetable for the department and the degree of change in the new Survey process (some departments will change far more than others).

7. Departments will need to keep a close watch on the training implications of any phased introduction of elements of resource budgeting into the
Survey and respond with provision accordingly. Subject to such year-by-year requirements and overall decisions on phasing, a possible pattern of
training might involve awareness briefing in the first part of 1997, to include an understanding of the treatment of capital. A second phase in early to mid-1998 might cover the general principles of accruals accounting applied to central government. A third stage, in late 1998 to early 1999 (which will benefit from information increasingly available from the new databases to provide real-life examples) could use detailed guidance to run through the differences from the cash-based Survey.

18.11.96

FINANCIAL TRAINING NETWORK