Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
The statement of AO’s responsibilities in the Department’s ARA outlines the Accounting Officer’s responsibility for...
Conclusion
The statement of AO’s responsibilities in the Department’s ARA outlines the Accounting Officer’s responsibility for the propriety and regularity of the finances allocated to them.36 This is reinforced through HM Treasury’s Managing Public Money 28 BEIS Annual Report & Accounts 2020–21 (parliament.uk) p6 29 The Bounce Back Loan Scheme: an update (nao.org.uk) 30 The Bounce Back Loan Scheme: an update (nao.org.uk) 31 Q 113 32 Q 117 33 Q 118 34 The Bounce Back Loan Scheme: an update (nao.org.uk) 35 BEIS, ARA 2021–22, pages 44, 246, 260 36 BEIS, ARA 2021–22, page 67 14 Department for Business, Energy & Industrial Strategy Annual Report and Accounts 2021–22 which expands on the personal responsibility the Accounting Officer has for ensuring their organisation uses its resources efficiently, economically and effectively. This also extends to responsibility for managing risks in relation to fraud.37
Government Response Summary
The government agrees with the committee's conclusion and states the recommendation is implemented. It outlines how public bodies' Chief Executives are designated as Accounting Officers responsible for robust governance and financial management, and how DBT is considering future relationships and assurance following machinery of government changes.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 Public bodies have a pivotal role in the delivery of departmental policy objectives. DBT has 19 bodies in its more immediate delivery chain which carry out a wide range of functions on behalf of government. This includes the delivery of public services, provision of independent advice, as well as the regulation of different sectors. Whilst the sources of income vary for different bodies, they are all equally bound by the duty to assure Parliament and the public of high standards of probity in the management of public funds. 5.3 To support them in doing this, the Principal Accounting Officer for DBT has designated the Chief Executives of these bodies as Accounting Officers; responsible for ensuring that their organisation has robust governance, decision-making and financial management arrangements in place. Crucially, Accounting Officers must scrutinise significant policy proposals and plans for major projects to ensure that spend meets the high standards of regularity, propriety, value for money, and feasibility. 5.4 Meaningful oversight by DBT is exercised through a comprehensive and robust framework of engagement. The sponsorship arrangements form a key part of this, and DBT applies the Cabinet Office Sponsorship Code of Good Practice to ensure that rigorous expectations and standards are being met in respect of relationship management, the setting of strategy and objectives, outcome assurance, financial oversight, and governance and accountability. Bodies are also subject to reviews as part of the Arm’s Length Body Review Programme - the objectives of which aim to ensure that bodies remain accountable, and operate efficiently, effectively, aligned with the government’s priorities. Ultimately, reviews provide a mechanism for ensuring that bodies deliver outstanding public services and value for money for the taxpayer. 5.5 Following the machinery of government (MOG) changes in February 2023, DBT is considering how best to manage its future relationship with public bodies and the type of assurance arrangements that should be established to monitor risk and performance. 5.6 Beyond that each scheme or support programme delivered via third parties is overseen by a departmental Senior Responsible Officer. It is their role to ensure effective oversight of all aspects of delivery and to protect public money. DBT is considering how best to ensure consistency of such delivery following the MOG changes.