Source · Select Committees · Public Accounts Committee

Recommendation 10

10 Accepted

In July 2020 the Treasury launched its new financial IT system, OSCAR II, for use...

Recommendation
In July 2020 the Treasury launched its new financial IT system, OSCAR II, for use in preparing the WGA. OSCAR II replaced the previous, obsolete system and was designed to support, amongst other functions: the collection and consolidation of data from component bodies into the WGA; holding, storing and updating information with easy and immediate access to data; and the production of reports with use of intuitive reporting tools. According to the Treasury, the update was expected to bring significant benefits including increased efficiencies, improved data collection, enhanced financial and non-financial analysis, and to lead to advancements in the quality of information in the WGA.2930
Government Response Summary
The government agrees to undertake a lessons-learnt exercise addressing the root causes of poor design specification and testing of OSCAR II, and ensure identified improvements are implemented when applying future system changes.
Government Response Accepted
HM Government Accepted
2. PAC conclusion: Poor design and testing of OSCAR II caused significant delays to the Whole of Government Accounts. 2. PAC recommendation: The Treasury should undertake a lessons-learnt exercise, specifically addressing but not limited to the root causes of poor design specification and testing of OSCAR II, and ensure identified improvements are implemented when applying future system changes. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The Treasury has undertaken a number of lessons learned exercises, including engaging the Government Internal Audit Agency to support this work. The lessons learned included more focus on getting the project governance right and investing in the internal project management team to support the relationship between the supplier and the process owners in the business. The Treasury has changed its practices for project managing changes to the system and is negotiating a new plan and approach with its current supplier, Deloitte, for the remaining stages of the OSCAR II project. 2.3 The Treasury fully recognises the problems encountered after the system went live, the challenges in resolving them, and how this contributed to delays in the WGA publication. The existing contract for the OSCAR II system is due to end November 2023, and the Treasury is applying the lessons learned in deciding on the future support and development arrangements for the system.