HMT Communication Protocol
RHI Inquiry · The Report of the Independent Public Inquiry into the Non-Domestic Renewable Heat Incentive (RHI) Scheme · Issued 13 March 2020 · Addressed to: Department of Finance
Source — verbatim from the inquiry
●Inquiry recommendation
The protocol for relations with HMT, namely that the Northern Ireland Department of Finance must be the sole conduit of formal communication, should be reinforced and widely understood across the Northern Ireland Civil Service. The Department of Finance, for its part, must recognise that its unique relationship with HMT places on its officials a responsibility to be alert to, and act expeditiously upon, the requirements of all other Departments in matters relating to HMT; and to communicate clearly and effectively with those Departments as to HMT's position in respect of the spending Department's financial envelope.
RHI Inquiry, The Report of the Independent Public Inquiry into the Non-Domestic Renewable Heat Incentive (RHI) Scheme · 13 Mar 2020 Source PDF →
Published evidence summary
Publicly available evidence relating to this recommendation:
- The NIAO Second Progress Report (October 2024) assessed this recommendation as Implemented, stating that the HM Treasury communication protocol had been reinforced, with the Department of Finance confirmed as sole conduit and operating as described (NIAO Second Progress Report, October 2024).
Response — verbatim from government
●Department of Finance
[Note: The NI Executive responded to recommendations 19-23, 29-33 together as a group under the 'Governance and Financial Controls' theme.] NI Executive Response (October 2021): These recommendations can be accepted in full. It is important to note that public expenditure in NI is governed by the UK Budgeting rules set by HM Treasury. These rules mean that there is limited flexibility available to the Executive in some areas. Some elements are addressed in existing guidance, including the stipulation that resources should be utilised in line with regularity, propriety and value for money considerations. Funding for some specific issues may be provided by HMT on a time-limited basis. In addition the HMT public expenditure rules mean that only very limited funding can be carried forward between financial years. However, this does not override the value for money requirement. Departments have the opportunity to revise annual budget allocations through the in-year process. Value for Money is already a requirement in the NICS core competency framework. These recommendations have been addressed in work to date through: Departments' response to the lessons learned following PWC's Heat Reports; the major and fundamental Review of the Expenditure Approval and Business Case Processes, incorporating many of the recommended elements; the delivery of an online package of Public Expenditure training for both budget holders and general-service grades; the initiation of a review of MPMNI; re-establishment of DoF-led Finance Director meetings; the issue of a formal protocol for engagement with HMT. Further work is required to: give consideration to the role of Casework Committees to ensure that they are rigorous and deliver the necessary scrutiny and independence, in line with the existing role of Gateway reviews; Implementation of Five Case Model guidance; Engagement with the Treasury around 'false economies'; Consideration by DoF of the introduction of an Approval Panel for the highest cost and most complex proposals.
Department of Finance · 7 Oct 2021 Written response →
Evidence trail — what's actually happened since
- 15 Oct 2024 Status based on NI Audit Office Second Progress Report (October 2024): Implemented - NIAO assessment confirms actions have been taken to address this recommendation. Source →
Each entry above links to a primary source — gov.uk written statement, consultation response document, or inspection report. The Index does not characterise government intent; it tracks what has been published.
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Source and Response are verbatim from primary documents. The Evidence trail records published activity since — written statements, consultation outcomes, inspection findings, parliamentary references. The Index does not paraphrase or characterise intent; it tracks what has been published. Where the evidence is the absence of action (a missed deadline, a slipped timetable), that absence is documented from primary sources rather than inferred.
This recommendation's data is verified periodically against primary sources. The Index is monitored for staleness weekly.