Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
The Cabinet Office told us that because AO assessments focus on individual programmes they do...
Recommendation
The Cabinet Office told us that because AO assessments focus on individual programmes they do not describe systemic risks, although particular themes may replicate themselves across individual programmes. While HM Treasury said that AO assessments were not the way to see common themes and risks faced by programmes, lessons could be learnt by looking across these assessments. For example, how to assess value for money and the approach to considering and then dealing with strategic risks.47 As such, although the Infrastructure and Projects Authority’s (IPA) primary role is to assess programme delivery, it was surprising to hear that it did not see AO assessments and that it saw little value in seeing them.48 IPA also told us that, while it had not “historically played a part in AO assessments” there was scope for it to “test and challenge” whether one is expected and, if it is, whether it exists.49 Future challenges
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.