Northern Ireland’s Comptroller and Auditor General has today (Tuesday 10 December) published a report summarising the key findings and issues arising from her audit of central government accounts in the year to 31 August 2024.
Dorinnia Carville’s report discusses the results of audit work carried out mainly on the 2023-24 annual reports and accounts of central government bodies. The report also covers the outcomes of 20 audits from previous accounting periods which had been delayed and were certified in the year to 31 August 2024. It follows the publication of a previous summary report last year covering the year to 31 August 2023.
The report outlines qualified audit opinions on the accounts of 18 central government departments and their arms-length bodies. In the year ending 31 August 2023 the equivalent figure was 13. Some bodies had qualified financial statements in both 2023-24 and 2022-23, which were qualified for the same reason.
Levels of fraud and error continue to be an issue. While some improvement had been noted in 2022-23, today’s report observes that this trend has not continued.
For example:
- Levels of overpayments in benefit expenditure by the Department for Communities were estimated at £240 million in 2023-24 (an increase of £66 million from the £174 million estimated in 2022-23).
- The NI Housing Executive estimated a total of £21.1 million of fraud and error in relation to Housing Benefit expenditure in 2023-24 (compared with £12.7 million estimated in 2022-23).
- Fraud and error in Housing Benefit rate relief expenditure recorded by Land and Property Services was estimated at £3.6 million in 2022-23, an increase from £3.4 million in the previous year.
In addition to fraud and error, the report highlights other common themes for qualifications, including some organisations spending more than had been authorised by the NI Assembly.
Other, more general themes identified by audits, which did not result in a qualified audit opinion, are also highlighted. These include concerns expressed by the Auditor General in relation the preparation and quality of accounts submitted for audit, as well weaknesses in controls to protect organisations against errors, fraud and mismanagement. The report acknowledges these issues are, in part, attributable to wider challenges facing the public sector in recruiting and retaining staff with relevant finance skills.
Commenting on the report’s findings, Auditor General Dorinnia Carville said:
“The public sector here continues to face serious budgetary pressures. In such a context, the role of public audit, and the work of my Office in promoting transparency in how public money is spent, is more important than ever.
“I am pleased, once again, to report that the majority of the accounts I have audited are unqualified and accurately represent the financial position of the organisations that have prepared and submitted them.”
“However, it is important that Departments and other bodies review and consider the issues covered in this report. I hope that steps can be taken to address weaknesses which may exist in either controls or procedures, to enable bodies to take decisions which are justifiable, in the public interest, and which ultimately ensure that public money is being spent appropriately.”