"The FCO can do more to
get value for money from its overseas estate. Although the
Department has begun to remedy some of the shortcomings we
identified and has started work on its strategy for managing the
estate, it still needs to get the basics right. It needs to
lay out the priorities for its overseas estate and work out how to
get more robust information. Whilst there are examples of
good practice at individual posts, the Department needs to spread
this across the whole estate if it is to make real
efficiencies."
Amyas Morse, head of the National Audit Office, 11 February
2010
The Foreign and Commonwealth Office lacks a clear strategy and
comprehensive data to manage its overseas estate effectively,
according to a report published today by the National Audit
Office. The FCO is taking positive steps to adapt its
properties to new global challenges but has not achieved value for
money in the management of its estate as a whole.
The FCO’s strategy for managing its estate is
high-level and the underpinning detail is scant. It does not lay
out the requirements for the estate, whether the estate meets the
requirements and how it will address the gaps. Without a
clear framework to assess the estate’s performance, it is difficult
to evaluate the Department’s progress. The Department has
recognised this and has recently appointed an estates specialist as
Director of Estates and Security who is developing a new
strategy. These steps have the potential to help secure
improved value for money in the future.
The FCO does not have adequate financial and
management information about the estate. The lack of robust
information on the cost and use of the estate hampers good decision
making on efficient use of space and the identification of surplus
assets for potential sale. The management of projects to
improve the estate could be better: a third of the projects that
the NAO analysed exceeded their initial approved budget by over 10
per cent and two-thirds were delivered late. The total cost
overrun since 2002 is approximately £57 million, against a total
spent on capital projects of £250 million.
There are several factors, such as changing
political issues, security restrictions and exchange rate
pressures, which add to the complexity of managing the global
estate. The NAO found examples of good practice and
innovation across the estate, and noted that the FCO had done well
to respond to changing security threats, including a three-fold
increase in the number of countries operating with a critical or
severe terrorist threat rating.
The FCO does not always use space in its posts
efficiently. Over half of the posts that responded to the
NAO’s survey have unused office space or staff accommodation.
Posts could make better use of accommodation by sharing with other
UK government organisations, but there are several barriers to this
including the FCO’s lack of authority to drive co-ordinated
cross-government action and a mismatch of estate needs.
However, the FCO could do more to promote actively the use of its
overseas estate by others where feasible.
Publication details:
HC: 295, 2009-10
ISBN: 9780102963496