Introduction
PSAs are at the centre of the Government's performance
measurement system. They are usually three year agreements, set
during the spending review process and negotiated between
departments and H M Treasury (HMT). They set objectives for the
priority areas of government's work.
This PSA is led by HMT but the responsibility for collecting the
data to measure performance against the PSA lies with the
Department for Work and Pensions (DWP, the Department). Each PSA
has a Senior Responsible Officer (SRO) who is responsible for
maintaining a sound system of control across Departmental
boundaries that supports the achievement of the PSA. The underlying
data systems are an important element in this framework of control.
HMT reports performance against the indicator, not the
Department.
The most recent public statement provided by HMT on progress
against this PSA at the time this review was carried out was in its
2009 Annual Report.
The purpose and scope of this review
The Government invited the Comptroller and Auditor General to
validate the data systems used by government to monitor and report
its performance. During the period September to November 2009, the
National Audit Office (NAO) carried out an examination of the data
systems for all the indicators used to report performance against
this PSA. This involved a detailed review of the processes and
controls governing:
- The match between the indicators selected to measure
performance and the PSA. The indicators should address all key
elements of performance referred to in the PSA;
- The match between indicators and their data systems. The data
system should produce data that allow the Department to accurately
measure the relevant element of performance;
- For each indicator, the selection, collection, processing and
analysis of data. Control procedures should mitigate all known
significant risks to data reliability. In addition, system
processes and controls should be adequately documented to support
consistent application over time; and
- The reporting of results. Outturn data should be presented
fairly for all key aspects of performance referred to in the
target. Any significant limitations should be disclosed and the
implications for interpreting progress explained.
Our conclusions are summarised in the form of traffic lights.
The ratings are based on the extent to which departments have:
- put in place and operated internal controls over the data
systems that are effective and proportionate to the risks involved;
and
- explained clearly any limitations in the quality of its data
systems to Parliament and the public.
The remaining sections of this report provide an overview of the
results of our assessment, followed by a brief description of the
findings and conclusions for each individual data system. Our
assessment does not provide a conclusion on the accuracy of the
outturn figures included in the Department's public performance
statements. This is because the existence of sound data systems
reduces but does not eliminate the possibility of error in reported
data.
June 2010