The performance of the Department for Transport - Fleet News

2264. Contingent liabilities are a necessary part of some of the complex contracts in whichthe Department is involved and, as the permanent secretary, Mr Devereux, pointed out, theNAO had accepted that the liabilities were correctly presented in the Department’saccounts. 99 We accept this point of accountancy procedure entirely. However, the scale ofthe known liabilities, plus the possibility of further large unquantified liabilities, representsa significant financial risk that could impact upon the ability of the Department to performits core functions. We recommend that the Department provides a risk assessment of itscontingent liabilities and attempts to give an estimate, or at least a range of possiblecosts, of its presently unquantified contingent liabilities.7 Conclusion65. The Department has made progress in a number of important areas over the past yearand indeed over the past decade. It has also established a new sense of direction in itslonger-term strategy. However, much remains to be done, including supporting economicgrowth, integrating local transport and tackling climate change. The future financialconditions are likely to make this even more challenging. The Department needs toensure that it focuses on what matters most to achieving its strategic objectives, whileserving the needs of the public and business. These issues cannot always be adequatelycaptured in a simple target. It is important, therefore, that the Department reportsprogress realistically.This is an embargoed advance copy.Not to be published in any form until00:01 on Thursday 4 March99 Department for Transport, Annual Report and Resource Accounts 2008–09, HC 454, July 2009, pp 376–380—theDepartment provides details of its contingent liabilities in Notes 31 and 32 to its Resource Accounts 2008–09.