Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
One way HM Treasury scrutinises programmes ahead of funding and budgetary decisions is through the...
Recommendation
One way HM Treasury scrutinises programmes ahead of funding and budgetary decisions is through the Major Projects Review Group (MPRG).42 The MPRG—which advises HM Treasury ministers on whether the highest profile and most complex government programmes should proceed—is attended by the relevant accounting officer.43 The Cabinet Office told us that it had tried, over the last two years, to make the process 34 C&AG’s report, para 1.3 35 Q 43; C&AG’s report, para 1.8 36 Q 43 37 Qq 20, 39, 82 38 Qq 44, 75 39 Q 19 40 Qq 9, 39 41 Q 47 42 HM Treasury’s Treasury approvals process for programmes and projects (March 2022). Available at: Treasury_ Approval_Process_Draft_Guidance_.pdf (publishing.service.gov.uk). 43 C&AG’s report, Figure 2 12 Improving the Accounting Officer Assessment process more standard and consistent.44 It described it as a “terrific forum” for making sure major programmes are subject to appropriate levels of checking and assurance.45 HM Treasury told us that it was looking at ways to align the decisions of the MPRG with an AO’s consideration of whether an AO assessment is required. For it to perform its role, the MPRG needs to have visibility of where there is a divergence from its initial approved authority.46
Government Response Summary
The government agrees with the Committee’s recommendation and states that AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP). Updated AO assessments have been requested by the MPRG panel for a number of projects since January 2021, and all Review Teams will be trained on the appropriate consideration that should be given to them across the range of IPA Assurance Reviews.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: 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. 4. PAC 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. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2023 4.2 AO assessments can help make better policy and give a framework for testing policy implementation for this reason AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP). 4.3 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. 4.4 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 9 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. 4.5 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.