Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Functional savings reports provide an incomplete picture, risking underreporting of efficiencies.
Recommendation
The NAO concluded that functional savings report may therefore give an incomplete picture of savings generated across the functions. The Cabinet Office provides challenge on an ad-hoc basis to functions where it believes that they have secured savings but not submitted them as part of the reporting process. In 2023, the GIAA noted that this approach meant that there was a risk that efficiencies might be underreported due to the amount of support the Cabinet Office could provide to the functions during this exercise.21
Government Response Summary
The government commits to working with HMT to set specific savings targets across functions for the 2023-24 exercise, to be published in Spring 2025, and will report these targets to the Committee in October 2024. This aims to encourage robust, auditable savings.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: end October 2024 4.2 The Cabinet Office will work with HMT to set savings targets (cash releasing and non-cash releasing savings) across the functions to work towards for the 2023-24 savings exercise due to be published in Spring 2025. The Cabinet Office will report back to the Committee on these targets in October 2024. 4.3 The government agrees with the Committee’s recommendation. Target implementation date: end June 2025 4.4 The Cabinet Office will ensure functions report savings that are commensurate with the savings target set, publishing this in the Spring 2025 efficiency and savings publication after they have been audited by the Government Internal Audit Agency (GIAF). 4.5 The Cabinet Office will use the new targets to encourage Functions to identify robust savings that are able to meet rigorous GIAF standards.