Mr. Robert Watt:

The two risks relate to IT and people. We need to change the IT systems and move to a different financial management shared service system to deliver on the recommendations of moving to a fully accrued accounting system.

The second risk is the extent to which people will buy in and accept this. It is an enormous cultural change. We have gone from cash-based systems to a different system. For people to accept those changes and to use the new system, and for it to impact on behaviour, is a challenge. Financial information is only useful when it aids and improves decision-making. People will have to change. We need to modernise and professionalise the finance function more and have more professional and accountancy expertise in the finance unit to benefit from the enhanced financial information from the systems.

There are many different blocks to the change that is under way. We have spoken about how we account for the appreciation of capital assets and allied services. There are many different aspects to that, which go beyond the report of the Comptroller and Auditor General on notional rents and how we deal with other accrued spending and income. There are a variety of issues.

It is a rolling programme. Over the next number of years we will have enhanced guidance and practices, an enhanced professional finance function and a different IT system. They are the three building blocks.