a) Recalculate rail baselines and savings. We recommend that the Department recalculates its Rail savings in the light of the most accurate information available. The savings were based on the difference between the estimate of spend without VFM reform (counterfactual) and the actual spend. We recommend that the baseline is recalculated such that it represents 2007-08 spend for Network Rail, and the re examination the Department has undertaken of expenditure on Support for Passenger Rail Services, and should obtain Treasury's agreement to these recalculations.
b) Review of all reported savings prior to publication. We recommend that as well as the Internal Audit review of reporting systems required by Treasury guidelines, the Department needs to ensure that all significant savings, are real and are publicly defensible. If possible this review should take place before the figures are published in annual and autumn reports.