1.8 Government agreed with our assessment of the weaknesses in the central assurance system. It created the Major Projects Authority (the Authority) with the ambition of addressing the poor performance which has led to the failure of government projects in the past.4 The Authority, part of the Efficiency and Reform Group within the Cabinet Office, was established by a prime ministerial mandate in January 2011 and launched in March 2011. It is a partnership between Cabinet Office and HM Treasury, reporting jointly to the Chief Secretary to the Treasury and the Minister for the Cabinet Office, and incorporates representatives with a variety of interests across government (Figure 2).
| Figure 2 Representation on the board responsible for central assurance
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| Source: Available at www.cabinetoffice.gov.uk/sites/default/files/resources/mpa-governance-team_0.pdf |
1.9 The Authority has an ambition to improve project performance across government. In its first year the Authority intended to implement the requirements of the Prime Minister's mandate (Figure 3). In future years it will aim to improve the project management skills of civil servants, and to improve the methodology that government uses to deliver projects.
1.10 However, the Authority is only one organisation in the assurance system for major projects. The effectiveness of the integrated assurance system relies on a chain of close cooperation between the Authority, HM Treasury and departments (Figure 1 on page 7). For example, the Authority cannot stop projects or withdraw funding but it can use its recommendations to inform HM Treasury investment decisions. Similarly the Authority is not accountable for successfully delivering project outcomes but it can influence the decisions taken on projects through its recommendations. Senior responsible owners in charge of projects must either implement the recommendations or formally declare why they have not taken action.
| Figure 3 The requirements of the Prime Minister's mandate 1 To develop the Government Major Projects Portfolio, in collaboration with departments, with regular reporting to Ministers. 2 To require Integrated Assurance and Approval Plans for each major project or programme, including timetables for Treasury financial approvals, and validated by the Major Projects Authority and HM Treasury. 3 To make a Starting Gate Review, or equivalent, mandatory for all new projects/programmes. 4 To escalate issues of concern to Ministers and Accounting Officers. 5 To provide additional assurance and direct involvement where projects are causing concern including the provision of commercial and operational support. 6 To require publication of project information consistent with the Coalition's transparency agenda. 7 To work with departments to build capability in projects and programme management. 8 To publish an annual report on government major projects. Source: Prime Minister's mandate, January 2011 |
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4 Cabinet Office, Overview of the Major Projects Authority, March 2011, available at www.cabinetoffce.gov.uk/sites/default/fles/resources/mpa-overview_0.pdf