Departmental Responses to Recommendations in NIAO Reports

A report published today by John Dowdall, the Comptroller and Auditor General for Northern Ireland, examines the progress made by five Northern Ireland Departments on the recommendations made by the Northern Ireland Audit Office in a series of reports published between May 1999 and March 2003.

Background

During devolution, reports published by the Audit Office were examined by the Northern Ireland Assembly’s Public Accounts Committee. In the absence of the Assembly, the Westminster Public Accounts Committee has been taking evidence on the main reports, but has not been able to include every report in its programme.

In order to ensure that Northern Ireland Departments formally respond to all Audit Office findings and recommendations, a new procedure has been introduced to deal with those reports which are not the subject of a PAC hearing. Under this procedure, the Audit Office writes to the Departments concerned setting out the main issues and asking for a formal, written response to questions about the progress made since the report was published.

This process is aimed at strengthening public accountability in Northern Ireland during suspension of the Assembly, by ensuring that follow-up action is being properly actioned and monitored by Departments. The main issues arising in respect of the five Audit Office reports are as follows:

On the Northern Ireland Transport Holding Company
(Report published 6 May 1999 – HC 390)

• This report recorded the results of an examination into the Department of the Environment’s relationships with the Northern Ireland Transport Holding Company, the parent company of Ulsterbus, Citybus and Northern Ireland Railways. The examination focussed on the adequacy of the control and monitoring arrangements in place between DOE (now the responsibility of the Department for Regional Development) and the Holding Company
• The report highlights a number of areas where improvements are required which, in the Audit Office’s opinion, would benefit both public transport operations and the taxpayer. The areas highlighted in the report include the framework of control, monitoring and accountability; property management; financial targets and performance indicators; and economic appraisal of expenditure.

(Background briefing can be obtained from NIAO by contacting Raymond Jones (028 9025 1121).

On the Management of Social Security Debt Collection
(Report published 28 June 2001 - NIA 71/00)

• NIAO’s 2001 report reviewed the Agency’s performance since the publication in 1993 of the Public Accounts Committee’s report into the “Control of Payments of Income Support”. The PAC report made a number of recommendations for improving debt management and recovery and the NIAO’s review focused on the Agency’s response to them.
• To determine the progress made since the C&AG’s report the Agency was asked a number of questions on the action it had taken to strengthen debt recovery procedures; on the cost effectiveness of its debt recovery measures; on action to develop a risk based debt collection strategy; and on the current level of debt and how this compared with earlier years.

(Background briefing can be obtained from NIAO by contacting Barry Edgar (028 9025 1122).

On the LEDU Export Start Scheme
(Report published 2 July 2002 – NIA 105/01)

• From 1992 to 2001, the LEDU Export Start Scheme provided over £20 million assistance to some 600 new, export-oriented companies with growth potential. NIAO’s 2002 report noted a range of weaknesses in relation to project appraisal, the monitoring of projects and performance measurement. Although LEDU no longer exists, Invest Northern Ireland continues to provide similar types of support to small, export-oriented businesses.
• The current review looks at how the lessons drawn out in the 2002 report on LEDU have been incorporated into the administration of the successor schemes run by Invest Northern Ireland. Areas examined include the appraisal of project business plans; the assessment of skills and experience of project promoters; the accuracy, completeness and currency of performance data; and measuring the effectiveness of support in relation to Invest NI’s ‘New Targeting Social Need’ policy.

(Background briefing can be obtained from NIAO by contacting Robert Hutcheson (028 9025 1024).

On the Re-Roofing of the Agriculture & Science Centre, Newforge
(Report published 17 October 2002 – NIA 24/02)

• In 1988, the Department of Agriculture and Rural Development undertook to replace the flat roofs on five buildings and construct an extension at the Agriculture and Food Science Centre, Newforge. The project was undertaken in phases, being finally completed in 2000 at a total cost of some £12.5 million. NIAO’s 2002 report focused on the Department’s handling of the project, against the best practice guidance available, and highlighted a number of areas where the management of future capital projects could be enhanced.
• The current report examines the progress made by the Department in strengthening its controls and procedures. In particular, we look at the improvements in procedures for project appraisal; progress in carrying out a training needs assessment; the effectiveness of project monitoring; and whether post-project evaluations are now being carried out on a timely basis and independently of those who were involved in planning and implementation.

(Background briefing can be obtained from NIAO by contacting Robert Hutcheson (028 9025 1024).

On the PFI Contract for the Education and Library Boards’ New Computerised Accounting System
(Report published 18 March 2003 – HC 498; NIA 99/02)

• NIAO’s report reviewed the “Accruals Accounting Project” which was initiated by the Department of Education to introduce new financial management information systems into the five Education and Library Boards to enable them to produce commercial style accounts. It cost £20.2 million (1998-99 prices). The report acknowledges that the Project Board and Team successfully handled the procurement and implementation of the Project. However, the report also points out that the Project Board did not secure delivery of the full system contracted for. In particular, the contractor failed to provide a new payroll and human resources system which formed part of the original specification.
• In order to establish progress since the C&AG’s report the Department was asked questions about whether the computer system was now fully in place; the lessons it had learned from the project; the steps it had taken regarding its control over future projects; and whether specific efficiency savings expected had been realised.