Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Detail plans to enhance accountability for RFCA performance under current arrangements.
Conclusion
The Department will need to continue to manage around the limitations of its current oversight arrangements for the RFCAs until it has established an NDPB. The Department has improved its oversight of the RFCAs since 2019, implementing around 70% of the Sullivan Review’s recommendations either fully or partially. It now has a single senior responsible owner, the Assistant Chief of the Defence Staff (Reserves and Cadets), to coordinate the Department’s various stakeholders who deal with the RFCAs. A sponsor board meets twice a year to review RFCAs’ performance. The Department has improved the service level agreements in which the armed forces specify their requirements for the RFCAs. However, the system still relies too much on the Council and RFCA officials’ shared aims and values, and it lacks clear and well-understood escalation processes when issues cannot be locally resolved. A ‘consequence culture’ where officials are truly accountable for poor performance is not yet embedded. The Department says it is now at an ‘inflection point’ where the governance and oversight of the RFCAs needs to be fit for purpose to support the ambitions in the SDR. recommendation Alongside its Treasury Minute response, the Department should write to the Committee setting out how it will enhance accountability for the performance of the RFCAs under the current arrangements, pending the establishment of an NDPB.
Government Response Summary
The government agrees, outlining that performance monitoring has been sharpened, KPIs established, a sponsor appointed, and an updated financial framework agreed to enhance accountability under current arrangements. It commits to providing updates on this progress as requested by the Committee.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Performance monitoring has been sharpened. The MOD appointed a single departmental sponsor (the Assistant Chief of the Defence Staff, Reserves & Cadets) to provide coordinated oversight of the RFCAs. Service Level Agreements have been refreshed to include clearer, quantifiable Key Performance Indicators (KPIs) and each is owned by a named senior official. Furthermore, the Senior Responsible Owner led Sponsor Board meets regularly and monitors the performance of the RFCAs using Key Performance Indicators, thereby strengthening strategic oversight and aligning delivery expectations. Furthermore, since the Hearing with the Committee, meaningful progress has been made to enhance accountability. On the financial side, an updated framework document has been agreed with the Treasury. Progress has been made to ensure full compliance with Treasury rules, although additional work is still required in respect of the Annual Reports and Accounts, specifically around lease arrangements to ensure that the RFCAs report according to the Financial Reporting Manual. There is further work to do. For example, the Council of the RFCAs is not itself a legal entity independent of the RFCAs: the current structure limits clarity of roles, responsibility and accountability. This will be addressed by the implementation of the NDPB. The department will provide updates on progress as requested by the Committee.