Recommendation 28

The Department told us that over the last two years it had strengthened its financial oversight of the RFCAs and that monthly conversations between finance teams meant that it understood performance and risks.45 However, the Department did not have an overall financial framework for the RFCAs which complied with HM Treasury requirements. In April 2022 the Department asked HM Treasury to review its existing financial framework with the Council and the review raised concerns about its compliance with HM Treasury rules. The Department had begun work on a new financial framework which would address these concerns but has not yet completed it. It said it had been waiting for governance reforms to play through so that these could be reflected in the new framework, but that a finalised draft 40 Qq 68 to 70 and 72; C&AG’s Report, para 2.28 41 Qq 68 and 69; C&AG’s Report, para 2.28 42 Qq 69 and 71 43 Qq 73 to 81; C&AG’s Report, paras 2.29 and 2.30 44 Qq 73 to 76 45 Qq 63 and 64 17 was currently with HM Treasury for review. The Department explained that the next step would be to respond to comments from HM Treasury and that it expected to publish the new framework in the next few months.46 46 Qq 63 to 66; C&AG’s Report, para 2.26 18