Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
RFCA service agreements improved, but lack clear escalation processes and accountability culture.
Recommendation
In recent years the Department has improved the quality of the five service level agreements (SLAs) that it has with the Council, which set out what the armed forces and Department require the RFCAs to deliver each year. The Department reviews progress against the SLAs three times a year, and it told us that this has provided discipline and focus that was previously lacking and which was starting to change behaviour.29 However, the system relies on the Council and RFCA officials’ shared aims and values, and it lacks clear and well-understood escalation processes when issues cannot be 27 Q 2 28 Qq 9 and 10; C&AG’s Report, para 1.18 29 Qq 9, 10, and 21 to 23; C&AG’s Report, para 2.5 14 resolved locally. The Department said that it would not be easy to establish a ‘consequence culture’, where officials are truly accountable for poor performance, without establishing an NDPB.30 The volunteer estate
Government Response Summary
Accountability for the RFCAs has been enhanced since the 2019 Sullivan Review and performance monitoring has been sharpened, the MOD appointed a single departmental sponsor, service level agreements have been refreshed to include clearer KPIs, and the Senior Team regularly reviews and monitors performance of the RFCAs using 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.