3.1 Regardless of how the central assurance system is designed, there needs to be sufficient capacity and capability within that system for it to operate effectively, and to mature. The system must be resourced to last, with staff having the skills and the time to carry out their jobs well, to learn and share knowledge with others, and to contribute to continually improving the system as a whole. Scaling back the level of assurance activity can also have a significant negative impact on project outcomes.
3.2 The Authority has a wider remit than the part of the government body it replaced. One of the major changes since introducing the Authority is an increase in the size of the government's major project portfolio. The Major Projects Directorate of the Office of Government Commerce was responsible for reporting on a portfolio of 40 projects. Under the Major Projects Authority the portfolio has increased to over 200 projects, and the reporting and analysis related to these is more in depth.
3.3 The relationship between the Authority and some of those projects in the portfolio has become more time consuming. The Authority's project specialists plan and manage assurance, and also have regular contact with projects it assesses as high risk. For example, the Authority's project specialist for the Department for Work and Pensions' Universal Credit programme attends monthly meetings of the Department's Integrated Assurance and Approvals Group.
3.4 Although the responsibilities of the Authority increased, it has fewer staff than the part of the government department it replaced, resulting in significant capacity constraints. The Major Projects Directorate of the Office of Government Commerce had 45 staff in 2010-11. The Major Projects Authority was launched with a headcount of 28 at the start of 2011-12, a reduction of 40 per cent.
3.5 Changes to the central assurance system have also affected HM Treasury's resource requirements. The strengthened link between assurance and approval means that HM Treasury must review a piece of assurance at each funding approval point in a project's life cycle. Previously, HM Treasury chose to request and review assurance on a case-by-case basis. Reductions in departments' delegated spending limits also mean that HM Treasury is consulted more frequently. During this period, HM Treasury's headcount has reduced.