2.11 The Treasury and departments have had a range of valuable project assurance processes. Many of these processes, such as departmental private finance units, relate specifically to PFI. Our work has reinforced the need for ongoing independent scrutiny and challenge to decisions, concluding that:
• Government needs an independent system of assurance based on a higher evidence base than has been previously available.
• Because of the complexities and the passage of time, projects need to be regularly reviewed and may well need to change as they are being developed, for example if new solutions to the service need emerge or the costs of the project become unaffordable.
2.12 Good project assurance also needs the power to stop a project, or ask for significant changes, if it is not value for money. Our investigation highlighted no examples of red rated projects being stopped as a result of a Gateway Review.29 The Cabinet Office and Treasury are seeking to strengthen project assurance through the recently created Major Projects Authority, which will focus on non-PFI projects, and the ongoing Treasury reviews of large PFI projects.
2.13 In 2006, we reported that major projects and capital programmes had not always received appropriate review at all stages of the Gateway Review process.30
2.14 Each local body is empowered to manage its affairs, but their projects are often part of nationwide programmes, where central government has oversight of the whole programme and may be providing financial support.
2.15 In our PFI in housing report, we noted a lack of clarity over the role of the Department of Communities and Local Government and the Homes and Communities Agency. Local authorities told us they did not always understand the functions of the different management bodies involved. In particular, different bodies sometimes requested the same information, resulting in confusion and duplication of work.31
_________________________________________________________________________
29 The Office of Government Commerce process that examines and rates programmes and projects at key decision points in their lifecycle. A red rating signifies that, to achieve success, the programme or project should take immediate remedial action.
30 Comptroller and Auditor General, Delivering successful IT-enabled business change, Session 2006-07, HC 33, National Audit Office, November 2006.
31 Comptroller and Auditor General, PFI in Housing, Session 2010-11, HC 71, National Audit Office, June 2010.