Central and local government are increasingly using complex delivery chains and an increasingly diverse set of providers to deliver services to the public. A chain or network of different organisations are often required to deliver programmes. Providers range from public sector bodies, to large commercial companies and small charities. In order to protect taxpayers' and citizens' interests and to provide accountability, departments need reliable information and systems which can help them understand and take steps to address providers' performance when needed (whether financial, governance and/or service standards).
Government also needs skills to manage major commercial contracts with providers. This means that it needs to set clear aims and frameworks for delivery; it needs to advise and guide the organisations providing services, and monitor their performance against the agreed targets and standards. Where performance is not good enough it may need to intervene, which can be through expert support, financial penalties, requirements for new management or a specific action, or, where necessary, terminating the contract. In addition, as the government increasingly creates 'quasi markets', it needs the skills to balance consumer protection with the need to let providers fail so that these arrangements achieve the benefits of being markets.
Key NAO publication: Academies and maintained schools: Oversight and intervention (Oct 2014)
This interactive round-up of NAO publications is intended to help Audit Committees, Boards and other users by outlining the latest NAO resources for governance and oversight, risk management and strategic management issues. It also sets out how to keep in touch with NAO insight on specific issues and/or sectors.
Until the government is able to establish effective oversight of the modern slavery system as a whole, it will not be able to significantly reduce the prevalence of modern slavery or show that it is achieving value for money.
The Department is exerting stronger oversight and sanctioning under-performing providers but there remain issues to resolve, such as more timely identification of underperformance and ineligible payments.
Although the Commission has improved as an organisation, it needs to overcome some persistent issues with the timeliness of some of its regulation activities if it is to sustain further improvement.
This NAO report looks into the funding and oversight of the charity Broken Rainbow. Broken Rainbow provided support to lesbian, gay, bisexual and transgender victims and perpetrators of domestic violence. The charity received most of its funding through grants, principally from the Home Office.
There is no collective understanding of what type of oversight is appropriate and cost effective for different types of arm’s length bodies.
The welfare cap is encouraging a greater understanding of spending on some benefits and tax credits across government, but it is important that processes for managing the cap are reliable.
The incentives on government Accounting Officers to prioritise value for money are weak compared to those associated with the day-to-day job of satisfying Ministers.
Payment by results (PbR) schemes are hard to get right, and are risky and costly for commissioners. Credible evidence for claimed benefits of PbR is now needed.
The new military flying training is 6 years delayed and there is much to do if the MoD is to get the planned benefits from its contractor.