1.1

Wed, 28 Jan 2026 20:38:54 GMT

by Amy Thomas.

Compare IFAC's explanation of the role of the modern finance function, with your experience of your organisation or an organisation you are familiar with.

IFAC describes the modern finance function as a strategic partner that enables Enterprise Performance Management (EPM). ‘EPM requires a deep understanding of both the external environment and the organisation’s resources and underlying processes to deliver timely, action oriented, and decision relevant insights on economic realities and value drivers’ (International Federation of Accountants, 2018). By linking strategy, planning, performance management and decision-making, rather than focusing primarily on historic reporting, IFAC emphasises forward looking analysis within the finance function, integrating financial and non-financial data as well as active involvement in shaping organisational performance and value creation.

My experience in my own organisation (Newport City Council) offers some alignment with this model, however, it is shaped by constraints of local government. Newport’s finance function retains a strong emphasis on statutory stewardship, compliance and control- reflecting the s151 duty to safeguard public funds and ensure financial sustainability (Newport City Council (2025) and UK Parliament (1972)).

Budget management, financial reporting and value for money assessments remain core priorities across every department as well as the authority as a whole. I can identify where Newport has adopted elements consistent with IFAC’s vision- particularly through investment in integrated cloud-based financial systems and finance business partnering. The most recent changes (investment in a new financial management software that talks to HR/manpower systems and service budgets) have supported improvements in forecasting and supported myself as a service manager with more detailed and accurate financial insight of my budget areas, enabling earlier identification of risk.

IFAC presents an aspirational, enterprise-wide role for finance and whilst operating within the public sector context, Newport Council can demonstrate alignment with enabler 2: technology and enabler 3: talent and skills. Performance insight through data and models (enabler 1) and strategic changes (enabler 4) are growing but they will likely exist with an emphasis on accountability, governance and public value under the arrangements of the Local Government Act, 1972, more than competitive value creation.

What do you see as the role of finance today, but, as importantly, the role of finance over the coming five-to-ten years?

Having worked in local authority and the third sector for many years now, I have seen how the finance function has moved beyond traditional transaction processing and reporting to become a strategic partner in organisational performance. Finance teams are increasingly expected to support decision making with data and analytics and integrate financial and non-financial information to guide performance and strategy. A Financial Foresight Model developed by Grant Thornton UK LLP and CIPFA (2025) for councils explicitly highlights the need for forward looking financial projection, scenario analysis and strategic planning to guide medium and long term-term financial sustainability decisions. The model helps councils project costs; benchmark spend and appraise a range of financial strategies, ‘critically, Financial Foresight provides the functionality to test and appraise a range of financial strategies and scenarios, to support in multi-service strategy development’ Grant Thornton UK LLP and CIPFA (2025).

In the next 5-10 years I would expect the finance function to accelerate its transformation. As organisations evolve as they become driven by technology, finance will become more integral to strategic influence. Across industries and sectors, advanced analytics, AI, automation and cloud-based systems are anticipated to automate routine tasks, freeing finance professionals to focus on high-value strategic work such as predictive forecasting, risk modelling and performance optimisation. An industry analysis by McKinsey highlights how modern finance teams are expected to engage in scenario planning and advanced analytics and play a central role in data quality and governance as part of their enterprise responsibilities in the next decade (Agrawal, Eklund, Waite and Woodcock, 2020).

Agrawal, A., Eklund, S., Waite, J., and Woodcock, E. (2020) Finance 2030: Four imperatives for the next decade. McKinsey. 17 November. Available at: https://www.mckinsey.com/capabilities/operations/our-insights/finance-2030-four-imperatives-for-the-next-decade

Grant Thornton UK LLP and CIPFA (2025) Grant Thornton and CIPFA launch new Financial Foresight model. Available at: https://www.grantthornton.co.uk/news-centre/grant-thornton-and-cipfa-launch-new-financial-foresight-model

International Federation of Accountants (IFAC) (2018) The Role of the Finance Function in Enterprise Performance Management. New York: IFAC.
Newport City Council (2025) Budget and finance. Available at: https://www.newport.gov.uk/our-council/about-council/budget-and-finance

UK Parliament (1972) Local Government Act 1972, c. 70, s. 151. Available at: https://www.legislation.gov.uk/ukpga/1972/70/section/151

Week 1 - discussion

Mon, 20 Nov 2023 16:42:00 GMT

by Richard Dunstan.

Hello all, welcome to the financial management module. I hope you will enjoy your study of financial management and please feel free to get in touch at any time if you have anything to discuss.

Compare IFAC's explanation of the role of the modern finance function, with your experience of your organisation or an organisation you are familiar with - what do you see as the role of finance today, but, as importantly, the role of finance over the coming five-to-ten years? [please provide evidence to support any position you put forward (links, references, etc.)]

Discussion forum 1.1

1.1

Week 1 - discussion