"Because of limitations in the underlying
systems, HM Courts Service has not been able to provide me with
proper accounting records relating to the collection of fines,
confiscation orders and penalties. I have therefore disclaimed my
audit opinion on its Trust Statement
accounts.
"I welcome the further steps
planned by the Courts Service and Ministry of Justice to improve
the evidence on its financial position relating to fines,
confiscation orders and penalties. However, I recognise that
they and other government bodies face significant challenges in
improving the extent of available data and on reducing the level of
outstanding debt."
Amyas Morse, head of the National Audit
Office, 15 December 2011
Amyas Morse, Comptroller and Auditor General,
reported to Parliament today that HM Courts Service, the body
responsible for the collection of fines, confiscation orders and
penalties imposed by the judiciary and police, has been unable to
provide him with proper accounting records supporting those fines,
confiscation orders and penalties.
This meant that he could not give an audit
opinion on whether transactions and balances were complete, proper
to this account and appropriately raised.
Today’s report highlights how limitations in
Libra, the case management IT system in use across magistrates’
courts, and similar systems have contributed towards HM
Courts Service’s inability to provide information at an individual
transactions level to support the accounts.
Total outstanding debt in respect of fines,
confiscation orders and penalties at the end of March 2011
according to the HM Courts Service is £1.9 billion, increased from
£1.5 billion in the previous year, while only £457 million is
recognised in the account as receivable. The difference of £1.4
billion represents management’s estimate of debt that is at
risk.
The Courts Service and the Ministry of Justice
have made some recent improvements to the collection of fines,
confiscation orders and penalties. These include new
performance measures to monitor collection rates, timeliness and
levels of arrears for fines; developments in enforcement and
collection procedures; and additional work with other government
bodies to maximise recoveries.
The Ministry also plans to carry out further
investigations into the accounting functionality of Libra. However,
both the Ministry and Courts Service have informed the NAO that
they may not be able to address the accounting records issue fully
until Libra and other relevant systems are significantly enhanced
or replaced.