Source · Select Committees · Public Accounts Committee

Recommendation 5

5 Accepted

Amend NS&I's reporting to include additional metrics on Programme cost and progress.

Recommendation
NS&I’s governance structures still do not have the performance metrics and information needed to hold the Programme to account. It is difficult to establish the cost of the Programme from the information provided by NS&I. The Treasury told us that, outside the times where it was being asked to approve a formal business case, it found it challenging to understand the cost and progress being made by the Programme. The NS&I witnesses could not tell us how much had been spent on the Programme to date, which is deeply concerning. NS&I said it had improved its financial reporting and had ‘the right data’, but was finding it challenging to take the data from its system and to ‘present’ it. NS&I’s annual report and accounts state that it is meeting its overarching corporate metrics, including the important measure of how much finance it raises for government; but those metrics do not cover Programme progress. There are risks to NS&I’s whole business—and especially to customers—if the Programme is unsuccessful, and NS&I needs to show greater transparency in how the Programme is progressing. 5 recommendation NS&I should set out how it will amend its overall reporting, both internally and externally, to include additional metrics around the Programme including its cost and progress.
Government Response Summary
The government agrees, stating that NS&I has already implemented new monthly reporting metrics for delivery progress and spend, will complete a full spend audit by Q1 2026-27, and is working to enhance financial reporting across governance forums.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. and implemented. This will feed into wider governance improvements and non-executive directors’ assurance through the Quarterly Review Point process. Programme Finance monthly reporting now includes a monthly metric showing Delivery progress vs Spend to Date, with associated assumptions. The government is looking to refine this metric once it has a new Full Business Case baseline agreed. A full audit of monthly spend by supplier from 1st April 2024 to current date will be completed by the end of the first quarter of 2026-27, after which ongoing monthly reporting will take place. Work on agreeing and mapping Programme Finance reporting requirements across governance forums, which includes the Treasury, has started, in readiness for 2026-27 monthly reporting. This will also include enhanced capturing and reporting of financial risks, opportunities and assumptions to forecast.