3.20 The Authority does not have the resources to carry out 'continuous assurance' as recommended in our 2010 report.19 Continuous assurance involves embedding assurance reviewers into project teams so that they have an in-depth, up-to-date understanding of issues affecting its deliverability, and can respond quickly. Some department teams told us that this would be a valuable type of assurance. While assurance arrangements for highest risk projects are more regular than under the previous arrangements, they are not continuous.
3.21 The Office of the State Comptroller in New York used continuous assurance to keep senior stakeholders, from two different organisations, informed about project progress, which helped to deliver financial benefits. For example, a decision to delay the project was expected to incur supplier costs but the assurance team used its knowledge of the project to identify, challenge and remove supplier costs that were not legitimate. In addition they helped the stakeholders determine those costs that were critical to the project and those that they could eliminate.
3.22 Shell, the global energy and petrochemicals company, has used full-time assurance experts on its high-risk major projects to address the risk of gaps between instances of point-in-time assurance. The expert is independent of the project team and reports directly to the board, improving their real-time visibility of the true status of the project. The assurance expert can also authorise further assurance interventions immediately, when they can add most value, before the next planned gate review.
3.23 Project teams value the more regular contact with the Authority, which is mostly through its project specialists. Good relations between department teams and project specialists give rise to constructive challenge. The Universal Credit project team has a weekly conversation with the Authority. Issues are raised in a timely manner, rather than waiting until the next formal governance meeting to trigger action.
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19 National Audit Office, Assurance for high risk projects, June 2010.