Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Departmental oversight of RFCAs improved since 2019, implementing 70% of Sullivan Review recommendations.
Recommendation
The Department said that its oversight of the RFCAs had improved since the publication of the Sullivan Review in 2019, and that it had fully or partially implemented around 70% of the Review’s 80 recommendations. 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. The Department has also established a sponsor board, which meets twice a year, where it gets all the frontline commands and other key stakeholders, such as the Defence Infrastructure Organisation, around the table to discuss and hold to account the RFCAs to deliver the outputs that defence needs.28
Government Response Summary
The government agrees to 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. Performance monitoring has been sharpened through Service Level Agreements which include clearer, quantifiable Key Performance Indicators (KPIs).
Government Response
Accepted
HM Government
Accepted
4. PAC 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. 4. PAC 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. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 4.2 Accountability for the RFCAs has been enhanced since the 2019 Sullivan Review. 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. 4.3 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. 4.4 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. 4.5 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. 4.6 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. 4.7 The department will provide updates on progress as requested by the Committee.