Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Outline Treasury and NISTA plans to improve governance and assurance for all major government projects.
Recommendation
NISTA still has work to do to ensure that it gains assurance about progress with all major projects and that they are governed and assured effectively. The government has been focused on mega- projects and the infrastructure strategy and pipeline but there are over 200 projects on the Government Major Projects Portfolio (GMPP) which also need appropriate attention and scrutiny. NISTA currently divides projects on the 4 GMPP into tiers and decides whether to allocate resources to overseeing a project depending on the tier. However, its focus is likely to be on some of the larger projects, including the mega-projects, and overseeing delivery of the infrastructure strategy. Departmental oversight boards also need to have the right skills and capability to properly exercise their oversight role and lead major projects successfully. To address poor governance and decision-making culture, NISTA has been working on improving and growing the project delivery function and ensuring standards and training are consistent. It is not yet clear to us how it will reform governance of all projects on the GMPP, and how it will gain assurance about progress with those projects. recommendation In its Treasury Minute response, the Treasury should set out what it and NISTA will be doing to improve governance and assurance of all major projects in the future—particularly at a Departmental level—to ensure oversight boards have the relevant skills mix, including what system-wide interventions it is planning to make.
Government Response Summary
The government agrees, stating NISTA is refining data processes and will review the assurance framework. Crucially, the Treasury commits to strengthening departmental capability by linking higher Delegated Authority Limits to compliance with standards and requiring project boards to include accredited professionals and senior specialists.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented NISTA currently arranges and manages independent assurance reviews that provide recommendations on the readiness of individual projects to progress to the next stage. These also help identify thematic or common issues facing major projects and support the development of system level interventions or the development of guidance – for example the recent publication Improving Governance (for their website members) sets out the common challenges facing major projects and offers practical advice to address these, including strengthening oversight boards. NISTA is also refining its data management processes to make this analysis more systematic in future. Following recent developments, including publication of the Teal Book, 10 Year Infrastructure Strategy, OVFM and Stewart recommendations, NISTA will be reviewing and consulting on the assurance framework holistically to address these. Further information on next steps will be available once this review is complete to address these. Further information on next steps will be available once this review is complete. The Treasury will strengthen the capability and skills of departments to govern and assure major projects by tying higher Delegated Authority Limits to departments upholding and evidencing compliance with standards. Working through the finance, commercial, digital and project delivery functions, the Treasury will require departments and ALBs to ensure that project and portfolio boards include accredited project professionals and senior specialists, and that SROs have the right experience and support.