Addressee: HM Treasury · Source location: Page 14, paragraph 22, point a
Accounting officers should:
a) Oversee the use of models within their organisation and ensure an appropriate quality assurance framework is in place and used for all
business-critical models.
Response position:
Accepted
Delivery:
In progress
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, paragraph 23, point b
HMT should:
b) re-emphasise accounting officer responsibilities for business-critical models as set out in Managing Public Money, and the importance of publishing lists of such models on gov.uk by specifying this requirement in the guidance HMT issues on annual reports and accounts;
Response position:
Partially accepted
Delivery:
Implemented
· Q1 2025-26
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, paragraph 23, point c
c) put in place processes to assure itself that outputs from departments’ and ALBs’ business-critical models, which HMT uses, have been quality-assured
in line with modelling standards. This should include clarifying in all relevant guidance that all models must comply with the Aqua Book;
Response position:
Accepted
Delivery:
In progress
· Q3 2025-26
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, paragraph 23, point d
d) build on its current approach to quantifying uncertainty and risk analysis by requiring departments to present HMT with a range of plausible outcomes from business-critical models as a matter of routine. This range should be driven by key inputs and model parameters in each case to take account of where there might be material uncertainties around best estimates; and
Response position:
Accepted
Delivery:
In progress
· Q3 2025-26
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, paragraph 23, point e
e) agree with the Analysis Function on responsibilities for ownership and maintenance of the Aqua Book, including appropriate sign-off arrangements between the Function and HMT for Aqua Book updates.
Response position:
Accepted
Delivery:
Implemented
· Q4 2022-23
· Confirmed by NAO
Addressee: Analysis Function · Source location: Page 14, paragraph 24, point f
The Analysis Function should:
f) set out the appropriate governance structure for the ownership, maintenance, monitoring and assurance of analytical modelling standards and guidance, as presented in the Analysis Functional Standard. As part of this, the Function should work with the Cabinet Office to develop an appropriate assessment framework to provide the necessary processes to monitor departments’ and accounting officers’ implementation of the Analysis Functional Standard;
Response position:
Accepted
Delivery:
Implemented
· Q4 2022/23
· Confirmed by NAO
Addressee: Analysis Function · Source location: Page 15, paragraph 24, point g
g) update its Functional Standard and relevant guidance to include clear principles for departments and ALBs to follow on independent review of business-critical models, and on publication of a model’s inputs, methodology, assumptions, and outputs; and
Response position:
Accepted
Delivery:
Implemented
· Q3 2025-26
· Confirmed by NAO
Addressee: Analysis Function · Source location: Page 15, paragraph 24, point h
h) work with departments, ALBs and other stakeholders such as the Quality Assurance Working Group on guidance and training to facilitate system-wide learning and improvement. This should include sharing good practice on how business-critical models are managed and practical advice on how to analyse and communicate uncertainty.
Response position:
Accepted
Delivery:
Implemented
· Q3 2025-26
· Confirmed by NAO
Addressee: Analysis Function; HM Treasury · Source location: Page 15, paragraph 25, point i
HMT and the Analysis Function should:
i) agree the funding and capacity implications of the proposed governance structure in relation to analytical modelling standards and guidance.
Response position:
Accepted
Delivery:
Implemented
· Q4 2022-23
· Confirmed by NAO
Addressee: Cabinet Office · Source location: Page 15, paragraph 26, point j
The Cabinet Office is working on common standards for departmental sponsorship of ALBs. As part of this work, it should:
j) include guidance for departments on overseeing the production and assurance of models in ALBs, based on expert input from the Analysis Function.
Response position:
Accepted
Delivery:
In progress
· Q2 2023-24
· Confirmed by NAO
Addressee: Government Finance Function · Source location: Page 15, paragraph 27, point k
The Finance Function should work with the Analysis Function to:
k) strengthen the requirements in the Finance Functional Standard on departments to apply the Analysis Functional Standard and the Aqua Book
to financial planning and reporting. This should include guidance on how accountants should analyse, manage and communicate uncertainty; and
Response position:
Accepted
Delivery:
Implemented
· Q4 2023-24
· Confirmed by NAO
Addressee: Government Finance Function · Source location: Page 15, paragraph 27, point l
l) include appropriate elements relating to analysis and modelling from the Finance Functional Standard in the Finance Function’s self-assessment tools to measure compliance of functional members with requirements on modelling.
Response position:
Accepted
Delivery:
Implemented
· Q2 2024-25
· Confirmed by NAO
Addressee: Office for Budget Responsibility · Source location: Page 15, paragraph 28, point m
The OBR should:
m) require departments, as a matter of routine, to analyse and present the range of plausible outcomes driven by key inputs and model parameters in each
case to take account of where there might be material uncertainties around best estimates.
Response position:
Accepted
Delivery:
Implemented
· Q2 2025-26
· Confirmed by NAO