Business Systems Transformation (BST) Programme: Accounting Officer Assessment Summary
Published 30 April 2024
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Background and context
Business Systems Transformation (BST) is the Agency’s pivotal digital transformation programme. It aims to re-design the Valuation Office Agency’s (VOA) core business processes and replace outdated, end-of-life core valuation and data IT platforms. It will implement new data structures, streamline how it delivers valuations, and transform the VOA into a more flexible, efficient, and agile organisation.
VOA data is currently stored on a legacy infrastructure environment which is increasingly difficult and complex to maintain. It is out of support and will continue to deteriorate over time, it is not a sustainable solution that can be built on further and carries significant risk for the Agency. Retention of staff is also proving more difficult as we have seen a number of new joiners leave the VOA because they have found our old systems so difficult to learn and use compared to modern technology.
The programme will improve customer service and the quality and consistency of decisions. It will also ensure the Agency has the systems and processes in place to support future policy change, such as Non-Domestic Rates Reform (NDRR), and enable policy divergence between national and devolved governments.
Regularity
The Autumn Budget 2017 announced that the government would reform the revaluation cycle by increasing the frequency of valuations to every three years. It was announced as a ministerial priority in the Government’s 2019 manifesto.
BST is critical to provide the modern technology that enables the delivery of a three-year revaluation cycle and will enable the delivery of NDRR which will ensure this is sustainable into the future.
The programme began discovery in 2019, and has been provided funding, through Spending Reviews in 2020 and 2021 where it moved into delivery.
The programme scope falls within VOA’s statutory functions (to uphold and maintain the Council Tax (CT) and Non-Domestic Rating (NDR) lists), and no regulatory changes are required to deliver the programme. The delivery of the programme is covered by the VOA ambit which allows expenditure to ensure systems are maintained and updated as necessary to ensure the integrity of the lists and preparing for future revaluations.
Therefore, the programme is legally compliant and the regularity requirement is satisfied.
Propriety
The programme adheres to HMT’s Managing Public Money and the VOA’s governance and undertakes appropriate assessments and reporting. A programme board, chaired by a suitably experienced and empowered Senior Responsible Owner (SRO), is established as the main decision-making authority and key stakeholder representation is in place.
The programme is also subject to the VOA’s wider governance as an Executive Agency and is therefore subject to regular review and oversight from the Investment and Portfolio Committee and Executive Committee, so funding approvals are obtained through these governing bodies.
Strategic oversight of the Programme is provided by the VOA Board and there is a lead Non-Executive Director with relevant experience in digital transformation programmes. Additionally, there is a Commercial Assurance Group chaired by the Chief Finance Officer which reviews the commercial arrangements and scrutinises the performance of suppliers. The Programme continues to ensure compliance with Cabinet Office spending controls.
HM Treasury (HMT) through the Treasury Approval Process (TAP) reviewed the business case and gave approval to proceed in July 2023. They made a number of recommendations which have been taken forward. The Programme became part of the Government Major Projects Portfolio in October 2023.
A recent IPA review of the programme also made a number of recommendations including to reset the Non-Domestic Rates delivery plan which is being taken forward. The programme will continue to have support and oversight from the IPA and provide regular quarterly reports. The IPA will also undertake gateway reviews when necessary.
The SRO and Programme Director have delegated authorities in place. VOA Executive Committee authorise spending annually, supported by recommendations for the VOA Investment & Portfolio Committee.
Key documentation to govern the programme is in place, such as a Programme Definition Document (PDD), a Programme Governance Plan (PGP), Constraints, Risks, Assumptions, Actions, Issues and Decisions (CRAAID) log, and Integrated Assurance Plan (IAAP) and Risk Potential Assessment (RPA).
In view of the above, I am satisfied that the propriety test is met.
Value for money
The programme has followed HM Treasury’s Green Book guidance. Value for money has been assessed via an options appraisal where a wide range of options have been considered in response to the spending objectives outlined within the programme business case to identify the preferred way forward. The preferred option has a positive benefit cost ratio and will deliver significant efficiencies within the Agency and improve the customer experience with a modern technology platform that is easier to use and navigate and in line with government best practice.
I am therefore satisfied that the programme represents good value for money to the Exchequer and this element of the assessment is met.
Feasibility
Agile methodology has been selected as the optimal project management approach. The Agile family of project management methodologies are widely accepted as best practice and broadly accepted as industry standard. Agile will allow the programme to deliver in stages. Requirements, plans, and results are evaluated continuously so the programme team can respond to change quickly.
There are robust programme management and governance practices in place to assure and monitor plans and progress, with action being taken when it is appropriate to do so, to identify then mitigate potential risks.
After the IPA completed a Gateway 0, 3 and 4 Review, in February 2024 the programme received a red delivery confidence assessment. The review understood the criticality of the programme and that delivery should continue and recommended that the Non-Domestic Rates delivery plan be reset to ensure it is robust and achievable. This work was already in train and will be completed shortly. The IPA review provided a number of other recommendations, to strengthen the programme and support its delivery which are being taken forward. The review also recognised the significant progress made on Council Tax and the associated integrated infrastructure and that this part of BST would be delivered in the 2024-25 financial year. This will ensure over 90% (26.5 million) of properties are held and maintained in the new system.
The Agency was already aware of and taking forward the recommendations made by the review but these helped to reinforce the Agency’s understanding of the work required to set the programme up for success. The review also endorsed the Agency’s decision to merge the BST NDR delivery with the NDR Reforms programme and reset the planning for that as one programme once CT has been delivered. The Agency has responded to the actions in the IPA report and is taking them forward, alongside this the planning for merging the programmes is well underway.
I consider that the feasibility test is therefore met.
Conclusion
As the Accounting Officer for the VOA, I have considered my assessment of the BST programme and on balance, the proposal is value for money and deliverable. I have therefore approved it as of 26 April 2024. I have prepared this document to set out the key points which informed my decision.
If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised assessment, setting out my assessment of them. This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.
Accounting Officer’s name: Jonathan Russell, Chief Executive Valuation Office Agency.
Signature:
Date of signing: 26/04/2024