1.14 Using the Treasury's dataset, we selected a sample of 15 savings reported as having been signed. These savings covered £1,372 million (or 86 per cent) of the total £1,603 million savings. Appendix One gives further information on our methodology.
1.15 We reviewed the evidence underpinning each of the 15 savings, including the evidence relating to the maintenance of outputs and outcomes, in order to classify the savings by assurance category and impact on frontline provision. For this assurance exercise, we conducted a high level review of key documents rather than an in-depth audit.
1.16 Most savings are forecasts calculated over the remainder of the contract and although some savings start to accrue immediately many will only be realised during the remainder of the contract. This means that cash-releasing savings refer for the most part to future avoided costs7.
1.17 Appendix Two sets out principles that we expect to see in reporting savings from operational PFI contracts.
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7 It was not possible to calculate annual cash-releasing savings because of the many categories of reported data.