Northern Ireland Appropriation and Other Accounts 2000
Mr John Dowdall, Comptroller and Auditor General and head of the Northern Ireland Audit Office, today reported the results of financial audit work undertaken over the last twelve months.
The Comptroller and Auditor General has qualified his opinion on the following:
Ulster Folk and Transport Museum - Financial Statements 1996-97 and 1997-98
Disclaimer on view given by the financial statements arising from inadequate accounting records and a breakdown in fundamental systems of control within the Museum.
Mr Dowdall has highlighted extensive areas of concern at the Museum including the completeness of Income, Debtors and Fixed Assets. His audit found the systems supporting the authorisation and processing of payments and tendering procedures to be weak and evidence available limited. The Report points to "a lapse of awareness within the Museum of the importance of good internal controls and the need for careful application of formal financial control procedures".
The National Museums and Galleries of Northern Ireland, which was formed in April 1998 has inherited responsibility for the Ulster Folk and Transport Museum. In November 1998, the new museum's Board, increasingly concerned by evidence indicating inadequate financial control, commissioned a forensic audit in relation to the Ulster Folk and Transpsort Museum. The forensic audit confirmed that serious problems existed in relation to lack of and non-adherence to financial procedures. Whilst no evidence of dishonesty was found, the opportunity for dishonesty and fraudulent activity was judged to be high.
The report reveals that the Department of Education has been working closely within the National Museums and Galleries of Northern Ireland in formulating a detailed and comprehensive action plan to address all the shortcomings that have been identified. This will now be taken forward by the Department of Culture, Arts and Leisure.
Department of Health and Social Services, Vote 3 Appropriation Account 1998-99
Qualified opinion arising from Limitation in Audit Scope due to inadequacies in the monitoring and control of the European Union "Peace and Reconsiliation Funds", Special Initiatives and Training. Bursaries and Further Education expenditure.
Department of Health and Social Services, Vote 5 Appropriation Account 1998-99
Qualified opinion arising from errors in payment on non-contributory and means-tested Social Security benefit and qualification arising from Limitation in Audit Scope due to lack of available evidence to support Disability Living Allowance and Attendance Allowance made by Bankers Automated Clearing Services, Disability Living Allowance Motobility Payments and Child Benefit Payments.
Arts Council of Northern Ireland Account 1997-98
Qualified opinion on the regularity of expenditure due to invoices irregularly included in the financial statements.
Northern Ireland Child Support Agency - Client Funds Account 1998-99
Qualified opinion arising from errors in receipts from non-resident parents, full maintenance assessment balances and interim maintenance assessment balances.
Other matters addressed in Mr Dowdall's report include:
Department of Agriculture
Two suspected frauds involving overdeclaration of land and subsequent overclaims for livestock subsidies.
Department of Economic Development
procedural weaknesses regarding £5.4 million of assistance given to Mackie International Group plc and its subsidiary companies.
Training and Employment Agency: Special Programme for Peace and Reconciliation. Mr Dowdall notes that "funding arrangements for the Peace and Reconciliation Sub-Programme involves several Government Departments funding a large number of multi-purpose grant recipients via numerous intermediary bodies. These arrangements create the potential for opportunist projects to claim Peace and Reconciliation funding, or other public funding for the same activity from more than one intermediary body or parent department". The report includes a recommendation for dealing with the risk of duplicate funding.
Department of the Environment
The DOE paid £347,000 to Ulsterbus to acquire a fleet of minibuses, for lease to Rural Community Transport partnerships. The report indicates that this money was piad in advance of need and before the issue and acceptance of formal terms and conditions of grant.
Level of error in the fees charged by the Planning Service Agency for planning applications.