Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Implement FCDO's improved estate governance model, establishing a new board and publishing a maintenance strategy.
Conclusion
FCDO’s central estate function does not have adequate oversight of estate activities, both at overseas posts and across its project portfolio. Eighty-four percent of overseas posts have responsibility for maintaining their own estate, either through in-house teams or local contractors, with support from the FCDO central estate function in Whitehall. These posts have responsibility for managing their local budgets and can choose what they spend on maintenance, but are not always aware of their estate responsibilities, such as the need to carry out preventative maintenance. As we have highlighted before, most recently in our June 2025 report, Condition of Government property, failure to carry out preventative maintenance is poor value for money as it can mean more expensive emergency works are required later. FCDO plans to publish in October 3 2025 a revised maintenance strategy which will give clearer guidance to posts on their maintenance responsibilities, based on learning drawn from its outsourced facilities management contracts. The central estate function is not able to monitor posts’ maintenance spending and does not have adequate oversight of its project portfolio. FCDO plans to establish a new estates governance board in the autumn, with the aim of bringing together issues of spending, policy, projects and programmes. recommendation FCDO should implement its plans to improve its governance model, including establishing a new estates governance board and publishing a new maintenance strategy for posts. FCDO should update the Committee in its Treasury Minute response on its progress in improving central oversight of its overseas estate.
Government Response Summary
The government has established a new Estates Committee in October 2025 to strategically review estate operations and investments, meeting quarterly, and is widening the remit of the Asset Management Portfolio Board. Additionally, an external review of the departmental operating model and project delivery function has been commissioned, with the final report due in Spring 2026.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. established a new Estates Committee in October 2025, which will review strategically the operations and investments in the FCDO’s overseas and UK estates. The Estates Committee will meet quarterly and receive comprehensive reports on strategic estate and maintenance planning, standardised KPIs and performance management, compliance, risk and major capital projects to ensure oversight of the entire estates’ portfolio and informed decision- making. The Estates Committee will report on estates matters to a refreshed Corporate Committee, chaired by the FCDO Chief Operating Officer and comprising Directors-General and Non-Executive Directors of the FCDO. In addition to the Estates Committee, Overseas Estates Department (OED) is widening the remit of its former Asset Management Portfolio Board (AMPB), which previously only reviewed large capital projects. Going forward, the new board will look across all aspects of the overseas platform and be a sub-committee of the newly formed Estates Committee. These changes will help streamline decision making across the primary areas of the overseas estate. To further strengthen effective working, the Head of OED has commissioned an external review to recommend improvements to the departmental operating model and project delivery function, using industry best practice. The final report is due in Spring 2026. This work will also suggest ways to enhance delivery, governance, and make the best use of limited financial, survey, and engineering resources.