Source · Select Committees · Public Accounts Committee
Recommendation 15
15
The Department admitted that its Head Office was not providing sufficient challenge on the financial...
Conclusion
The Department admitted that its Head Office was not providing sufficient challenge on the financial judgements made by the TLBs when compiling the Equipment Plan.37 Because of the way the Department is organised under the delegated model, Head Office cannot easily access the TLBs’ financial information to identify the reasons for changes 27 Committee of Public Accounts, Defence Equipment Plan 2018–28, 77th Report of Session 2017–2019, 1 February 2019; Committee of Public Accounts, Defence Capability and Equipment Plan, 10th Report of Session 2019–2021, 15 July 2020 28 Q 58; C&AG’s report, para 1.24 29 Q 66; C&AG’s report, para 14, 1.24 30 Qq 58, 59 31 Q 60 32 Qq 66, 67 33 Q 60 34 Q 81; Committee of Public Accounts, Defence Equipment Plan 2018–28, 77th Report of Session 2017–2019, 1 February 2019 35 Q 82 36 Qq 81 - 83 37 Q 84 12 Defence Equipment Plan 2020–2030 to the Plan’s costs.38 The National Audit Office also found that Head Office did not have the data, resources or remit to undertake the level of quality assurance we would expect.39 The Department told us that it was actively seeking to address the ability of its Head Office to provide an appropriate level of leadership and challenge to the TLBs.40 It is seeking to ensure that Head Office has the resource and capability it needs to understand what is going on in the Commands and make balanced investment decisions that take account of the full range of defence activities and priorities.41
Government Response
Acknowledged
HM Government
Acknowledged
6. 1 The government agrees with the Committee’s recommendation. Target implementation date: March 2023 6.2 Strengthening the financial capabilities within the department is a key part of the department’s Finance Functional Leadership Programme. The department will be delivering professional training for level 3, 4 and 7 apprenticeships for staff currently within the finance function. In addition, the department has in place a Finance Skills Certificate for finance function staff. For the senior civil service and military equivalents, the Defence Strategic Finance Programme is available, for which prior completion of the Finance Skills Certificate is mandated. The department is also in the process of developing finance training for budget holders. 6.3 As part of the design of the finance service delivery model, professional qualifications are recommended for those roles that require it and this will form part of the recruitment process when posts become vacant. It takes time to both train and recruit professionally qualified staff, but numbers will increase over time. 6.4 As part of the same programme, the department is also looking to increase capacity by introducing a standardised service delivery model; simplifying and standardising processes and exploiting the use of corporate systems. 6.5 The department is developing a centralised pool of guidance and resources to support analysts across defence which will be ready in Summer 2021. The department’s Analysis Function runs a Quality Assurance Working Group to enable best practice to be shared more widely and increase knowledge of the department's business critical models. 6.6 The department’s Cost Assurance and Analysis Service (CAAS) has developed training and advice in modelling and quality assurance which it provides across defence.