Source · National Audit Office

Central oversight of arm’s-length bodies

Published: 23 Jun 2021 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Cabinet Office

This report focuses on the role of the centre of government in supporting government departments’ oversight of arm’s-length bodies.

Dept: Cabinet Office Topics: Accountability and oversightProject and service delivery nao.org.uk →

Recommendations

7 items

6 accepted 1 partially accepted 3 implemented 4 in progress

Rec	Recommendation	Addressee	Acceptance	Implementation
1	For all future business cases proposing a new ALB, the Cabinet Office and HM Treasury should ensure departments are explicit about the costs and benefits of different delivery approaches and apply these consistently, so that the ALB model used is appropriate. Ref Page 11, paragraph 24, point a · Implemented 03/2025	Cabinet Office	Accepted	Implemented ✓ NAO
2	As the Cabinet Office develops its new public bodies reform programme it should set out clear expectations and criteria for how the choice of different forms of ALBs and oversight arrangements should be assessed. Ref Page 11, paragraph 24, point b · Implemented 03/2025	Cabinet Office	Accepted	In progress ✓ NAO
3	Departments and ALBs should review framework agreements regularly, supported by HM Treasury (and the Cabinet Office where appropriate). HM Treasury, departments and ALBs should ensure that agreements are properly drafted, consistent, maintained and updated when needed. Ref Page 12, paragraph 24, point c · Implemented Q4 2022-23	HM Treasury	Partially accepted	Implemented ✓ NAO
4	The Cabinet Office should set out common standards for what good departmental sponsorship arrangements look like, and work with departments to ensure sponsorship teams have the right capability and sufficient capacity. It should monitor how this is adopted by departments during its regular review of framework agreements. Ref Page 12, paragraph 24, point d · Implemented 03/2025	Cabinet Office	Accepted	In progress ✓ NAO
5	Departments and the Cabinet Office should establish standards and good practice for monitoring ALB risks at departmental and cross-government levels. This should include establishing strong links between the Cabinet Office and the GFF on cross-departmental risks, and between departmental heads of risk on risks across their respective ALBs. Ref Page 12, paragraph 24, point e · Implemented 03/2025	Cabinet Office	Accepted	In progress ✓ NAO
6	The Cabinet Office and departments should develop and strengthen centres of ALB expertise and support them with organising events, training and sharing of good practice. Ref Page 12, paragraph 24, point f · Implemented 03/2025	Cabinet Office	Accepted	In progress ✓ NAO
7	The Cabinet Office, departments and ALBs should work together to develop and share performance information between ALBs, to help identify opportunities for improvement. Ref Page 12, paragraph 24, point g · Implemented 03/2025	Cabinet Office	Accepted	Implemented ✓ NAO