Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Deferred
Departmental reporting of efficiency savings in annual accounts remains inconsistent and unaudited
Conclusion
We also asked whether departments were expected to include their efficiency savings as part of their Annual Report and Accounts. The Treasury told us that while some chose to, they were not required to as standard, but that this was something it was currently looking at. For example, it explained that the Ministry of Defence provided details of its efficiency savings that were audited and reviewed annually, but that the approach across departments was inconsistent. It noted that as part of developing its new Efficiency Framework, it hoped to be able to provide publicly audited information on the efficiency savings made by departments, but that this would take “several years to be done properly, thoroughly, and well”. The Cabinet Office was not able to say when it thought that it would have a “forward Spending Review long look over what efficiency frameworks to this level of audited standards are going to come in” but that it would be a multi-year commitment.10 Calculating the savings achieved by functions
Government Response Summary
The government agrees with the Committee's observation but states that fully bedding in GEF efficiency reporting will take time. HMT will consult on how best to deliver the recommendation once reporting is standardised, committing to update the Committee by April 2025 on the consultation outcome and next steps.
Government Response
Deferred
HM Government
Deferred
The government agrees with the Committee’s recommendation. Target implementation date: end April of 2025 GEF efficiency reporting by government departments will take time to fully bed in, for inconsistencies to be ironed out, and for lessons to be learned. There will also be varying degrees of maturity, between both government departments and across the different functions, in how they identify, hold and report efficiencies. HMT therefore sees the continued adoption of the GEF across government, and reporting against it, as a long-term objective. As reporting becomes standardised, HMT will consult with key parties on how best to deliver the Committee’s recommendation. HMT will update the Committee by April of 2025 setting out the outcome of that consultation and the key next steps.