2.49 The increase in joint working by the Department and EDS under the partnership offers benefits to both parties. It also presents risks which could affect the independence and objectivity of Departmental evaluations and it could make it difficult or costly for the Department to extract itself from the partnership at the conclusion of the contract in 2004, or lead to the loss of skills to EDS.
Recommendation 4 | The Department needs to continue to manage the risks associated with joint working to ensure that it retains sufficient independence to assess projects objectively and to avoid becoming locked in to the partnership with EDS to an extent which would restrict options at the conclusion of the contract in 2004. |
2.50 The absence of guidance identifying issues which the Department should be alert to in evaluating EDS proposals means that the Feasibility Appraisal Service may fail to address risks or to bring in expert advice where necessary.
Recommendation 5 | The Department should consider developing guidance setting out the main risks to be addressed during evaluation and when to call for expert advice. |
2.51 Those responsible for approving projects need assurance that business cases are supported by an objective and thorough analysis of the options, soundly based, and correctly costed.
Recommendation 6 | The Department should consider commissioning independent reviews of selected projects, for example, by its Internal Audit Office to assess whether projects with a value below £250,000, which are approved by the Feasibility Appraisal Service, have been fully and accurately specified and assessed and to confirm that business cases put before the senior approval bodies are soundly based. |