A Day In the Life……….

1. A Day In the Life………. Jon Thompson Director General, Finance, MoD & Head of the Government Finance Profession July 2009

2. By any scale………….. • Budget 2009/10 £35.4 billion +£4bn ops • Assets 31 March 09 £106bn • Land 240,000 hectares (1%) • Military personnel 179,300 • Civilians 90,600 • AF Pension scheme £97.2bn • In pension & deferred 714,000 • Carbon footprint 1% of total UK

3. FTSE Comparison MoD Tesco (9) Budget 2009/10 £39bn £48.3bn Net Balance Sheet £97bn £28.2bn People 269k 273k Pension Scheme £97bn In pension & defer’d 714k

4. What Do We Spend It On?

5. The size of the 30 year Equipment Programme 2009 £235bn

6. £15bn?

7. £24bn?

8. Fixed Assets @ 31 March 2008 • Dwellings 3,504 • Land & Buildings 16,270 • SUME 35,766 • Plant & Machinery 1,752 • Transport 4,670 • IT & Comms 1,058 • Assets under construct 11,141 (SUME) • Assets under construct 3,826 (other) • Total 77,930 • Tracking is challenging – 200,000 assets - post IFRS on b/sheet will increase by 30,000 to 70,000 assets

9. Afghanistan £3bn?

10. Brent Crude Prices, $1 = £6m

11. Pound v Dollar 2007 – 1 Cent = £7m

12. Predicted spending – Resource 2008/09

13. Personal Challenges • Biggest single public sector body • Unbelievably complex – scientifically, technically, organisationally • People leadership – c.3,000 staff • People interactions • Place in the world; a force for good • Mentally, physically and psychologically tough

14. Strategic Financial Issues • Financial Strategy • Fiscal situation and funding • Prioritisation • Efficiency • Financial Discipline • Strategic Defence Review • Vision for financial management

15. Specific Financial Challenges • IFRS • Asset and Balance Sheet Management • Costing outputs • Financial Risk • Delivering insight and information • Relationships and skills

16. Questions?