"It is welcome that, as a result of improvements finally
starting to take effect, I have been able to issue the first
unqualified audit opinion on the accounts of EHRC since it was
established in 2007. However, these are just the first steps and I
have outlined a number of areas where EHRC needs to improve
further."
Amyas Morse, head of the National Audit Office, 24
November 2011
The Equality and Human Rights Commission has made significant
improvements in its financial management leading the Comptroller
and Auditor General to issue an unqualified audit opinion on its
2010-11 accounts. This is the first clear audit opinion on the
Commission's accounts since it was formed in 2007.
The C&AG had qualified his audit opinion on the accounts for
the previous year, 2009-10, because the Commission had failed to
agree its pay remit with HM Treasury, had written off losses of
£874,000 without the appropriate approval and also incurred
irregular expenditure on Single Tender Procurement Actions over
£50,000, where it did not seek the appropriate authority. The
Commission also could not provide the C&AG with evidence that
some grants to external bodies were regular.
Audit work on the 2010-11 accounts has shown no instances of
non-compliance with the procurement Framework Agreement, the
Commission agreed its pay remit with the Home Office in July 2011
and there have been no further write-offs in 2010-11. The
Commission has also introduced new record keeping procedures.
However, interim staff have delivered many of the improvements
that the Commission has put in place. The C&AG has expressed
concern that, once these staff leave, the improvements for which
they have been responsible will lapse. The Commission will need to
ensure not only that it appoints properly qualified and experienced
staff to fill these posts, but also that there is a proper transfer
of knowledge to these staff.
The C&AG has also expressed his concern about the culture of
the Commission with regard to financial and administrative
controls. It is imperative that senior management, led by the new
Chief Executive, are clear and unequivocal in their expectations
that staff will comply with the laid down financial procedures and
manage public funds effectively, and that such expectations are
reflected through active performance management.
Publication date: 24 November 2011