Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS

19 MARCH 2008

  Q60  Nigel Griffiths: The real question, and a note may help on this, is: does something like the National Forest Company with 18 employees have to spend a disproportionate amount of management time or expense on those 18 employees that would be better pooled? In other words, if they could draw on a larger HR resource, would their £4.5 million go further?

  Mrs Ghosh: As I said earlier, we have a shared services organisation and we are gradually drawing more of our delivery bodies into it where it represents good value for money. I can certainly take away the question of whether or not we have specifically had that discussion.[3]

  Q61 Nigel Griffiths: Just to probe you further on that, where somebody has 2,323 employees I might not be asking this question—

  Mrs Ghosh: And indeed they are part of the shared services organisation—Natural England. The question is: is it worth bringing on board into a shared services organisation—I would put the private sector organisations to one side—the 15 members of the Horticultural Development Council? It may or may not be. They might have satisfactory arrangements themselves, possibly outsourced.

  Q62  Nigel Griffiths: It would be helpful to know. I interrupted you. To return to paragraph 15 on page 7, I think you had covered (v) and you were going to cover (vi).

  Mrs Ghosh: I think we have covered (v) through the discussion of how the sponsorship role works. As the Report says, the Financial Management Improvement Programme has a project board on which the Chair of the Audit and Risk Committee and myself sit with two DGs and non-executives. They are intimately involved in the financial management improvement. We will obviously be taking forward the recommendation here, and set out in more detail in the annex, on how we can make sure that the committee as a whole is receiving regular Reports.

  Q63  Nigel Griffiths: How often does the management board meet?

  Mrs Ghosh: The management board meets monthly.

  Q64  Nigel Griffiths: Are these six items in front of them on a permanent basis?

  Mrs Ghosh: All of the management board are aware of these recommendations and two of my DG colleagues on the management board are also on the Board of the Financial Management Improvement Programme and so, yes, there is very good visibility of these recommendations.

  Chairman: Thank you, Mrs Ghosh, that concludes our inquiry. Thank you for your typically, from you, competent and confident way you have dealt with our questions. This was not your fault but clearly good financial management is essential in government and the Department failed to balance its books. We expect you to perform a lot better in the future and we have confidence in you.





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