Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
HM Treasury and the Infrastructure and Projects Authority (IPA) do not always use AO assessments...
Recommendation
HM Treasury and the Infrastructure and Projects Authority (IPA) do not always use AO assessments to build their understanding of programmes and systemic issues across government. AO assessments show an accounting officer’s consideration of the risks major spending decisions pose to Managing Public Money and how these risks are managed. The Cabinet Office recognises that, working together with HM Treasury, it could make more use of AO assessments. HM Treasury says it is looking to align its spending decisions on programmes to the approach taken to completing AO assessments. Also, while an AO assessment serves a different purpose to the assurance provided by the IPA, we were surprised the IPA does not see AO assessments nor consider them valuable in helping understand the challenges across programmes. Recommendation: HM Treasury, IPA and CO should set out how they consider AO assessments as part of their monitoring and decision-making of major programmes. The HMT and IPA should also set out how they will use AO assessments to understand programmes specific risks and wider issues.
Government Response Summary
AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP), and since January 2021, updated AO assessments have been requested by the MPRG panel for a number of projects. From 2023, AO assessments will be a core element of a trial ‘Assurance Bulletin’.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. implementation for this reason AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP). Since January 2021, updated AO assessments have been requested by the MPRG panel for a number of projects, including HS2 Phase 2b, Probation Reform, Armoured Main Battle Tank 2025 and DWP’s Functional Assessment Service. This supports the MPRG co- Chairs to make evidenced decisions, in addition to the independent assurance undertaken by the IPA. To bring further rigour to decision making, AO assessments have been required to be submitted to HM Treasury when projects seek approval at Outline Business Case (OBC) stage or later, this requirement was enshrined in the updated HMT Approvals Guidance in March 2022. As a long-term solution to further embedding the use of AO assessments in decision making, a requirement to test their existence will be factored into the IPA Assurance Workbooks. These workbooks offer a framework with which to test project maturity and to ensure that projects have met all requirements and expectations necessary to pass through stage gates and drive successful delivery. All Review Teams will be trained on the appropriate consideration that should be given to them across the range of IPA Assurance Reviews. From 2023, AO assessments will be a core element of a trial ‘Assurance Bulletin’, which will be introduced as a means of prioritising key delivery issues across the Government Major Projects Portfolio. This will further support decision making within the HM Treasury approvals process, which Cabinet Office supports by providing the secretariat function for MPRG and scrutinising the commercial elements of business cases, with AO assessments being required at OBC and beyond as a condition of business case approval. In addition to this, HM Treasury spending teams continue to request sight of Accounting Officer assessments as part of spending approval process. Issues raised in relation to multiple projects or programmes can then be escalated through internal HM Treasury, IPA and functional processes.