Escalation protocols
Assurance escalation protocols focus on supporting agencies in the timely resolution of delivery challenges experienced by their investments, as well as keeping Ministers and senior leaders informed of underperforming digital and ICT investments.
The DTA advises the Government on the progress of major digital projects through regular reporting to the Minister for Finance. This is primarily focused on building visibility of overall portfolio performance and systemic issues which would benefit from whole-of-government responses consistent with the DTA’s mandate.
Before applying the protocols, the DTA will engage with the lead agency to further understand sources of stress and how the DTA can best support recovery. This stage, known as triage, will ultimately determine whether escalation protocols are necessary and which protocol is the most appropriate.
Escalation protocols are triggered based on an investment’s Delivery Confidence Assessments (DCAs) and other relevant assurance information. There are three escalation protocols, these are Remediation Plan, Independent Health Check and Investment Review Meeting.
Remediation plan
This involves the lead agency preparing a structured, evidence-based plan to restore delivery confidence in the investment. The plan must be action-oriented, with clear individual accountability for implementation. The Remediation Plan is assessed by the DTA, with quarterly updates provided to Cabinet on progress.
Remediation Plans are generally required from all Tier 1 and Tier 2 investments when DCAs are at Medium or below. Tier 3 investments must complete Remediation Plans when DCAs are at Medium-Low or below but are recommended to complete them starting from Medium.
Independent health check
An independent assurer is engaged by the agency (in consultation with the DTA), to independently assess the viability of recovering the investment based on the active Remediation Plan, recommending any changes to the plan if required.
The independent health check is triggered at the DTA’s discretion when efforts to remediate the investment (including application of the Remediation Plan) have been unsuccessful and delivery confidence is Medium-Low or below.
Investment review meeting
This is the final protocol. This protocol sees the DTA convene a meeting of relevant central agencies and the lead agency to conduct a review of the basis of the investment, and recommend to Government whether to terminate, suspend, or continue to attempt to remediate.
Termination: in circumstances where remediation is not considered viable, and options to reshape the investment are limited or unlikely to succeed, recommending that the investment be ceased.
Suspending: the lead agency is to minimise activity and spend to the extent practicable whilst options are formulated and brought forward for Cabinet decision.
Continuing to remediate: applying an action plan agreed by the DTA, relevant central agencies and the lead agency as presenting a confident path back to green. Progress implementing this remediation plan will be closely monitored, with a further Investment Review Meeting scheduled at least every three months.
The Investment Review Meeting protocol will be triggered at the DTA’s discretion when any investment reaches a Low DCA. It may be triggered at higher DCA ratings at the DTA’s discretion, including when an investment is at Medium-Low but reporting a worsening trajectory.
When protocols are applied
The DTA’s decision whether to apply any of the escalation protocols will take into consideration whether the investment is currently the subject of the Enhanced Notification Process coordinated by the Department of Finance, and any other extant processes which engage Cabinet in reviewing the condition and trajectory of an investment such as the Department of Defence’s Projects of Concern regime.
As a starting principle, the escalation protocols do not apply to the extent they overlap or duplicate a requirement already triggered through the Enhanced Notification Process.
The DTA and the Department of Finance will work with agencies to explain requirements in this situation. The DTA will advise agencies when a protocol is required to be applied and provide ongoing support to ensure agencies are able to meet the requirements of the escalation protocols.