1 The National Audit Office examined the progress achieved by NS&I and SBS, in partnership, in delivering a modernised NS&I business. In particular we assessed whether the deal, which commenced in April 1999 is delivering value for money.
2 We used an issue analysis approach to design the scope and nature of the evidence required to complete this examination. We set a series of high-level audit questions that we considered it would be necessary to answer to assess the success or otherwise of the partnership in delivering its objectives, and collected evidence accordingly. For each of the top-level questions, we identified a subsidiary group of questions, linked logically to the main questions, to direct our detailed work and analysis. Our general report, Examining the value for money of deals under the Private Finance Initiative (HC 739, 1998-99), provides an outline of this general methodology which acts as a starting point for all our PFI examinations.
3 The top-level questions we set were:
■ Is the deal delivering as planned?
■ Will changes to the deal ensure delivery of its objectives?
■ Does the deal still make sense?
4 We derived our main evidence from examining documents held by NS&I at its head office in London and through interviews with relevant staff within NS&I, SBS and Siemens AG.
5 We also visited SBS's offices in Blackpool, Durham and Glasgow to examine NS&I's operations.