Improving the Accounting Officer Assessment Process
Public Accounts Committee
Closed
Inquiry
Accounting Officers are the most senior permanent official in a department - the permanent secretary, or the chief executive of a Government agency, who are personally accountable to Parliament for the use of public money in delivering Government policy, projects and programmes. It is most usually the Accounting Officer that …
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11
Recommendations
8
Conclusions
1
Report
1
Oral session
11
Letters
1
Event
Activity timeline 15 events
24 Feb
2023
2023
12 Jan
2023
2023
6 Dec
2022
2022
6 Dec
2022
2022
6 Dec
2022
2022
5 Dec
2022
2022
5 Dec
2022
2022
30 Nov
2022
2022
30 Nov
2022
2022
22 Nov
2022
2022
22 Nov
2022
2022
Oral evidence sessions 1 session
18 Jul 2022
View on parliament.uk
Improving the Accounting Officer Assessment Process
Alex Chisholm · Cabinet Office
Cat Little · Cabinet Office
Nick Smallwood · Infrastructure and Projects Authority
Sir Tom Scholar · HM Treasury
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Twenty-Eighth Report - Improving the Accounting Officer Assessme… | HC 43 | 30 Nov 2022 | 19 | Responded |
Recommendations & Conclusions
19 results
2
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
The quality of published AO assessments varies, with some providing insufficient information to understand a...
The quality of published AO assessments varies, with some providing insufficient information to understand a programme’s purpose or how it has been assessed. AOs are responsible for assessing all spending against the four standards set by HM Treasury. However, not …
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Government Response
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.
HM Treasury
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3
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
While accounting officers recognise the value of AO assessments, they are not being used consistently...
While accounting officers recognise the value of AO assessments, they are not being used consistently across government. AO assessments can help accounting officers in several ways – they support decision making about whether a project or programme should go ahead, …
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Government Response
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.
HM Treasury
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4
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
HM Treasury and the Infrastructure and Projects Authority (IPA) do not always use AO assessments...
HM Treasury and the Infrastructure and Projects Authority (IPA) do not always use AO assessments to build their understanding of programmes and systemic issues across government. AO assessments show an accounting officer’s consideration of the risks major spending decisions pose …
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Government Response
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’.
HM Treasury
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5
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
Government major programmes are experiencing significant challenges, such as skills gaps and inflation, which will...
Government major programmes are experiencing significant challenges, such as skills gaps and inflation, which will impact on their feasibility and value for money. HM Treasury is clear that a new AO assessment should be completed where changing circumstances have led …
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Government Response
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.
HM Treasury
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1
Conclusion
Accepted
Twenty-Eighth Report - Improving t…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury, the Cabinet Office and the Infrastructure and Projects Authority.1
Government Response
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
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6
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
We asked what was being done to encourage the greater use of AO assessments given...
We asked what was being done to encourage the greater use of AO assessments given they have proven themselves valuable for decision making.12 HM Treasury told us it was working in five areas to bring about improvement – such as …
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Government Response
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.
HM Treasury
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7
Conclusion
Not Addressed
Twenty-Eighth Report - Improving t…
Accounting officers are personally responsible for making sure that the organisation they lead delivers against...
Accounting officers are personally responsible for making sure that the organisation they lead delivers against the four standards relevant to the organisation’s governance, decisionmaking and financial management.17 The standards apply to all spending decisions and types of programmes, and it …
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Government Response
The government response consists of a restatement of the conclusion.
HM Treasury
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8
Conclusion
Acknowledged
Twenty-Eighth Report - Improving t…
The quality of published summary AO assessments varied.20 For example, departments generally provided basic information...
The quality of published summary AO assessments varied.20 For example, departments generally provided basic information such as background on the programme. But they did not provide more detailed information to help a layperson understand, for example, a programme’s aims. And …
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Government Response
The government acknowledges the committee's recommendation and outlines existing measures such as the senior finance function sign-off, treasury spending teams engagement, Government Finance Academy training, Finance Directors forum, and Accounting Officer Responsibilities Round table to support AO assessments.
HM Treasury
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9
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
HM Treasury guidance states that for GMPP programmes the accounting officer should publish a summary...
HM Treasury guidance states that for GMPP programmes the accounting officer should publish a summary of the key points in each AO assessment unless there are overriding sensitivities, such as commercial considerations, that outweigh the merits of making the assessment …
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Government Response
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.
HM Treasury
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10
Conclusion
Accepted
Twenty-Eighth Report - Improving t…
The previous Committee raised concerns about the lack of transparency because some assessments were not...
The previous Committee raised concerns about the lack of transparency because some assessments were not being published.27 A lot of summary AO assessments are still not published.28 The National Audit Office reviewed 73 published summary assessment to see how soon …
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Government Response
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.
HM Treasury
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11
Conclusion
Acknowledged
Twenty-Eighth Report - Improving t…
The lack of summary AO assessments being published remains a real concern.31 HM Treasury said...
The lack of summary AO assessments being published remains a real concern.31 HM Treasury said that there can be practical reasons why summary AO assessments take longer to publish – for example, because the department concerned is in the middle …
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Government Response
The government acknowledges the committee's recommendation and outlines existing measures such as the senior finance function sign-off, treasury spending teams engagement, Government Finance Academy training, Finance Directors forum, and Accounting Officer Responsibilities Round table to support AO assessments.
HM Treasury
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12
Conclusion
Accepted
Twenty-Eighth Report - Improving t…
AO assessments are intended to support good decisionmaking and provide positive assurance that the four...
AO assessments are intended to support good decisionmaking and provide positive assurance that the four accounting officer standards have been met in line with Parliament’s expectations.34 They are a requirement for all programmes on the Government’s Major Projects Portfolio, as …
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Government Response
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.
HM Treasury
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13
Conclusion
Accepted
Twenty-Eighth Report - Improving t…
AO assessments can also help an accounting officer consider the political context alongside practical implementation...
AO assessments can also help an accounting officer consider the political context alongside practical implementation issues to show that they have done what we would describe as “a thorough job regarding taxpayer’s money”.37 HM Treasury also see AO assessments as …
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Government Response
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.
HM Treasury
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14
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
HM Treasury recognised that there were “black and white points” where it was very clear...
HM Treasury recognised that there were “black and white points” where it was very clear that an AO assessment would be expected, whereas more judgement could be needed in other situations.39 Given this and the “big gaps” between the AO …
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Government Response
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
HM Treasury
View details
15
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
One way HM Treasury scrutinises programmes ahead of funding and budgetary decisions is through the...
One way HM Treasury scrutinises programmes ahead of funding and budgetary decisions is through the Major Projects Review Group (MPRG).42 The MPRG—which advises HM Treasury ministers on whether the highest profile and most complex government programmes should proceed—is attended by …
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Government Response
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.
HM Treasury
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16
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
The Cabinet Office told us that because AO assessments focus on individual programmes they do...
The Cabinet Office told us that because AO assessments focus on individual programmes they do not describe systemic risks, although particular themes may replicate themselves across individual programmes. While HM Treasury said that AO assessments were not the way to …
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Government Response
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.
HM Treasury
View details
17
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
HM Treasury’s guidance states that an AO assessment should be produced for a programme or...
HM Treasury’s guidance states that an AO assessment should be produced for a programme or project if, after its initial approval, it ‘departs from the four standards [for accounting officers] or the agreed plan […] in terms of costs, benefits, …
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Government Response
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.
HM Treasury
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18
Conclusion
Accepted
Twenty-Eighth Report - Improving t…
Looking to the future, departments face several challenges which may lead to significant changes to...
Looking to the future, departments face several challenges which may lead to significant changes to their programmes.54 We have seen estimates of a reduction in the size of the civil service of between 5% and 25%.55 The IPA told us …
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Government Response
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.
HM Treasury
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19
Recommendation
Accepted
Twenty-Eighth Report - Improving t…
IPA also characterised inflationary pressures as a “very real issue” which was “beyond a risk:...
IPA also characterised inflationary pressures as a “very real issue” which was “beyond a risk: it was a reality”. For example, it quoted inflation at 23% over the last six months on materials. IPA concluded that programmes will need to …
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Government Response
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.
HM Treasury
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Correspondence 11 letters
12 Jan 2023
Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, re Cabinet Office Accounting Officer assessments – IT related, dated 15 December 2022
Parliament page
6 Dec 2022
Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re DCMS Accounting Officer Assessments, dated 1 December 2022
Parliament page
6 Dec 2022
From committee
Correspondence from Matthew Rycroft CBE, Permanent Secretary, re Accounting Officer Assessments: Permanent Secretary Letter to PAC Chair, 29 November 2022
Parliament page
6 Dec 2022
Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, re Response to commercial / procurement related queries regarding Cabinet Office Accounting Officer Assessments, dated 28 November 2022
Parliament page
5 Dec 2022
Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, re Response to pensions related queries regarding Cabinet Office Accounting Officer Assessments, dated 28 November 2022
Parliament page
5 Dec 2022
Correspondence from Antonia Romeo, Permanent Secretary, Ministry of Justice, re MoJ Accounting Officer Assessments, dated 25 November 2022
Parliament page
30 Nov 2022
Correspondence to HM Treasury, dated 30 November 2022, relating to the Committee's report Improving the Accounting Officer Assessment process
Parliament page
22 Nov 2022
Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Alex Chisholm Permanent Secretary and Chief Operating Officer for the Civil Service, Cabinet Office, re Cabinet Office Accounting Officer Assessments – Pensions related, dated 15 November 2022
Parliament page
22 Nov 2022
Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Alex Chisholm Permanent Secretary and Chief Operating Officer for the Civil Service, Cabinet Office, re Cabinet Office Accounting Officer Assessments – Commercial/Procurement related, dated 15 November 2022
Parliament page
22 Nov 2022
Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Matthew Rycroft CBE, Permanent Secretary, Home Office, re Accounting Officer Assessments published in September 2022, dated 15 November 2022
Parliament page
22 Nov 2022
Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Antonia Romeo Permanent Secretary, Ministry of Justice, re Ministry of Justice - Accounting Officer Assessments, dated 15 November 2022
Parliament page