8.11 A key part of the financial control framework is the process by which major investment decisions are scrutinised and taken - the approvals process. Whilst some elements of the process in place today can be streamlined, we believe the principles underpinning it to be sound. However the mechanisms to ensure that decisions take into account value for money and technical and financial risk should be strengthened. In particular affordability should be at the heart of all decisions. We recommend therefore that the DG Finance should be accountable for the scrutiny process and should chair the Investment Approvals Committee.
8.12 The Investment Approvals Committee currently approves the most strategic projects and we recommend this should continue under the new model (with detailed proposals now coming from the Commands). But we see no reason why some investment decisions should not be delegated in a similar way to planning and budgeting, recognising that this would have to be consistent with the delegations to the Department from the Treasury. Our proposal for strong Directors of Resources in the TLBs reporting to the DG Finance is in part a mechanism to ensure that this can happen whilst providing confidence that the interest of the Accounting Officer and the corporate framework more generally can be protected. The Department will wish to consider, in consultation with the Treasury, how quickly it is prudent to move to this more delegated model.
8.13 The Defence Board should take an active role in monitoring the delivery and assessing the risks in major investment projects and we support the Defence Secretary's decision to chair a group looking specifically at the major projects and holding individuals to account for their delivery. We also support plans to provide to Parliament an annual assessment of the affordability of the equipment and support plan and for that asessment to be audited by the NAO. These commitments should continue to stand. Both initiatives are crucial to controlling the programme.