15 Accepted

FCDO lacks real-time oversight of how posts spend allocated estate maintenance funds.

Conclusion
Around £530 million of FCDO’s estate funding is held centrally by ESND and around £127 million is allocated to posts. FCDO told us that it does know how much of this £127 million is spent by posts on their estate, but only retrospectively. This is because funds are held locally and only by retrospectively examining the accounts can it identify how much has actually been spent on estate purposes.42
Government Response Summary
The government agrees and is establishing a new Estates Committee by October 2025 to strategically review estate operations and investments. It is also widening the remit of the Asset Management Portfolio Board and commissioning an external review by Spring 2026 to improve the operating model and project delivery.
Government Response
Accepted
HM Government Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 3.2 To improve estates governance, the Director of Estates, Security & Network established a new Estates Committee in October 2025, which will review strategically the operations and investments in the FCDO’s overseas and UK estates. The Estates Committee will meet quarterly and receive comprehensive reports on strategic estate and maintenance planning, standardised KPIs and performance management, compliance, risk and major capital projects to ensure oversight of the entire estates’ portfolio and informed decision-making. The Estates Committee will report on estates matters to a refreshed Corporate Committee, chaired by the FCDO Chief Operating Officer and comprising Directors-General and Non-Executive Directors of the FCDO. 3.3 In addition to the Estates Committee, Overseas Estates Department (OED) is widening the remit of its former Asset Management Portfolio Board (AMPB), which previously only reviewed large capital projects. Going forward, the new board will look across all aspects of the overseas platform and be a sub-committee of the newly formed Estates Committee. These changes will help streamline decision making across the primary areas of the overseas estate. 3.4 To further strengthen effective working, the Head of OED has commissioned an external review to recommend improvements to the departmental operating model and project delivery function, using industry best practice. The final report is due in Spring 2026. This work will also suggest ways to enhance delivery, governance, and make the best use of limited financial, survey, and engineering resources.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.7 yr
Report published 12 Nov 2025