Method

Use in the report

Review of published documents on public spending:

To identify changes in planned and forecast spending

● Annual Budget Reports 2008 to 2011.

● HM Treasury Spending Review 2010 report.

● Office for Budget Responsibility Pre‑Budget forecast June 2010.

Understand changes in plans for 2010‑11 spending, and plans for deficit reduction up to 2015‑16.

This set detailed annual Departmental Expenditure Limits, up to 2014‑15 covering administrative, programme and capital spending.

This report forecast overall spending if existing policies and trends continued and is the baseline against which overall cost reduction performance can be assessed.

Financial analysis

To assess the level of cost reduction achieved in 2010-11

Analysis of 17 audited departmental resource accounts for 2010‑11 and comparable 2009‑10 data.

To analyse resource and capital spending in 2010‑11 and compare with 2009‑10 up‑rated by 2.7 per cent to identify significant changes in activity levels and cash costs in real terms.

Review of Whole of Government Accounts departmental returns.

These provide a consistent breakdown of capital spending and grants. The accounts were also used to evaluate the economy and efficiency savings reported by the Cabinet Office.

Review of Internal Audit assessment of savings reported by the Cabinet Office.

We compared reported savings against spending reductions in real terms extracted from our analysis of accounts.

Review of:

● issues from the Exchequer 2009‑10 to 2011‑12; and

● Office of National Statistics monthly data releases.

To make an initial assessment of spending reductions in 2011‑12.

Departments' cash drawings give some assurance that they are on target to deliver further spending reductions in 2011‑12.

Monitoring of reductions in civil service staffing and overall spending on National Accounts basis.

Analysis of departmental value-for-money examinations

To assess departments' structured cost reduction strategies

Analysis of NAO value‑for‑money reviews on cost reduction in departments and interviews with study teams.

To identify common problems and good practice amongst leading departments, including progress on cost reduction strategies; programme management arrangements; progress monitoring; and overseeing arm's‑length bodies.