Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
NISTA prioritises and reallocates resources across major projects to improve overall delivery system efficiency.
Recommendation
We noted that the concept of mega projects could take away from the proper supervision of major projects and asked how NISTA will have the bandwidth to be able to keep across all these major projects. NISTA told us that the GMPP projects are tiered and prioritised, with the prioritisation reviewed quarterly. NISTA said it changes and moves resources around, depending on the needs of the projects. NISTA expects an advantage of its new role will be the ability to improve the overall project delivery system and said that that whilst a lot of its focus may be on the larger projects, quite often the broader challenges, and opportunities for efficiencies relate to how individual projects fit into broader programmes such as the school or hospital building programmes.41
Government Response Summary
The government agrees to 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, and will review and consult on the assurance framework holistically.
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.