Twenty-Eighth Report - Improving the Accounting Officer Assessment process

HM Treasury has already shared good practices with departments, including requiring sign-off by a senior member of the Finance Function, engaging with departments on specific projects, delivering training through the Government Finance Academy, and engaging with Finance Directors via the Finance Leadership Group.

The government agrees with the recommendation and will work with the Leadership College for Government to develop more in-depth training regarding the use of AO assessments and Managing Public Money, in addition to existing training and forums.

AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP), and since January 2021, updated AO assessments have been requested by the MPRG panel for a number of projects. From 2023, AO assessments will be a core element of a trial ‘Assurance Bulletin’.

The government agrees with the recommendation and states that AOs must consider the challenges posed by high inflation, materials shortages, labour market disruption, and high interest rates in light of their ongoing duties to consider feasibility and value for money. Updated AO assessments should be produced following a case conference when a project receives a red stage gate assessment.

The government agrees with the Committee’s recommendation and will embed AO assessments into training for senior civil servants and set up specific forums for AOs to share how they use AO assessments to draw judgements against each of the four AO standards. HM Treasury will be working with the leadership college over the next six months to develop more in-depth training regarding the use of AO assessments and Managing Public Money.

The government agrees to inform the Committee if all accounting officers met the October deadline and whether there will be a central list on GOV.UK. The next edition of Managing Public Money will include a new annex to consolidate Parliamentary notification requirements. A draft will be shared with the Committee and the National Audit Office.

The government agrees to embed AO assessments into training for senior civil servants and set up specific forums for AOs to share how they use AO assessments, with a target implementation date of July 2023. HM Treasury will be working with the leadership college over the next six months to develop more in-depth training regarding the use of AO assessments and Managing Public Money

The government agrees with the Committee’s recommendation and states that AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP). Updated AO assessments have been requested by the MPRG panel for a number of projects since January 2021, and all Review Teams will be trained on the appropriate consideration that should be given to them across the range of IPA Assurance Reviews.

The government agrees with the Committee’s recommendation and states that AO assessments are used to support decision making at Major Projects Review Group (MPRG) and Treasury Approval Panels (TAP). Updated AO assessments have been requested by the MPRG panel for a number of projects since January 2021, and all Review Teams will be trained on the appropriate consideration that should be given to them across the range of IPA Assurance Reviews.

The government considers that the AO assessment process is owned by the AO and the departments, and that challenges posed by high inflation, materials shortages, labour market disruption, high interest rates, and skills gaps, are important considerations that AOs must assess.

The government agrees with the Committee’s recommendation and states that it considers that challenges posed by high inflation, materials shortages, labour market disruption, and high interest rates must be considered by AOs in light of their ongoing duties to consider feasibility and value for money. As part of the IPA’s ‘Response to Red’ process, updated AO assessments should be produced following a case conference when a project receives a red stage gate assessment.

The government agrees with the committee's recommendation to streamline the notification process of AO assessments by including a new annex in the next edition of Managing Public Money, and will share a draft with the Committee and the National Audit Office ahead of publication.

HM Treasury states that accounting officer assessment guidance published in December 2021 required all draft assessments to be signed off by a senior member of the Finance Function, and Treasury spending teams continue to engage with departments to provide support and expertise. Training is also being delivered through the Government Finance Academy, and HM Treasury engages with Finance Directors and Accounting Officers via regular forums.

The government agrees to embed AO assessments into training for senior civil servants and set up forums for AOs to share how they use AO assessments, with a target implementation date of July 2023. This will include more in-depth training regarding the use of AO assessments and Managing Public Money.

The government agrees to embed AO assessments into training for senior civil servants and set up forums for AOs to share how they use AO assessments, with a target implementation date of July 2023. This will include more in-depth training regarding the use of AO assessments and Managing Public Money.

The government agrees that challenges may significantly change major programmes, requiring AO assessments to understand the impact. It considers defined thresholds, such as investment committee advice or IPA assurance ratings, sensible as triggers to update AOAs, with updated assessments provided to HM Treasury.