Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Require NISTA to develop comprehensive, integrated assurance plans for all major government projects.
Recommendation
On the 31 March 2024, the Government Major Projects Portfolio (GMPP) included 227 projects at a combined whole-life cost of £834 billion. NISTA needs to gain assurance about progress with major projects as this helps it to challenge projects to take corrective action and gives sponsors confidence in how they are progressing. Those involved in governance need to think through what internal and external assurance they need, when they will need it, what skills and experience this will require, and how the various types of assurance fit together in an integrated assurance plan. If assurance is designed badly, there is a risk that it becomes ongoing non- expert commentary which could cause delay and confuse accountability.36 We have repeatedly raised concerns over the Department for Transport (DfT) and HS2 Ltd having the skills and capability they need to lead the High Speed Two programme effectively and credibly.37 The Stewart Review found that HS2 Ltd and DfT as the Sponsor have been consistently underpowered in performing their roles. HS2 Ltd has lacked the capability to deal with the size and complexity of the project and DfT Sponsor team lacking the commercial and delivery experience as a client on major infrastructure projects.38
Government Response Summary
NISTA will review and consult on the assurance framework holistically, and the Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to standards compliance, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: 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. 4. PAC 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. 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 9 4.2 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. 4.3 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.