Press Release - Report of the Comptroller and Auditor General
on the 2009-10 accounts of the UK Statistics Authority
27 July 2010
The Comptroller and Auditor General has qualified his audit
opinion on the 2009-10 accounts of the UK Statistics Authority
owing to the Authority spending more cash than the authorized limit
set by Parliament.
The Statement of Parliamentary Supply shows that the Authority
spent £208.112 million during 2009-10, which is £0.251 million in
excess of the amount authorized and was therefore irregular.
A number of factors led to the excess. The Comptroller and
Auditor General considers that, although the specific cash breach
was caused by a failure of year end financial controls, there was
also an ongoing risk around the management of supply limits
throughout the period. The cash management process operating
throughout the year meant that there was a real risk of exceeding
the approved limits at year-end. This risk materialized and the
management review process failed to prevent the cash excess.
Another contributory factor was changes to payment performance
targets. In March 2010, the Government amended the target payment
terms to suppliers from ten days to five days. As a result, the
Authority worked to pay as many creditors as possible before
year-end.
In response to our audit findings, the Authority has undertaken
a number of actions to ensure that a similar event does not occur
again. As well as commissioning internal audit to establish the
cause of the excess and identify the improvements required, the
Authority is introducing additional supervisory controls and a
system to improve the documentation of processes, and staff are
receiving training and guidance. Subject to these improvements
being implemented, the Comptroller and Auditor General is content
that steps are being taken to ensure this situation will not
recur.
Amyas Morse, head of the National Audit Office, said
today:
"I have qualified my audit opinion on the 2009-10
financial accounts of the UK Statistics Authority because it spent
more cash than the authorized limit set by Parliament. This was
mainly caused by a failure of year end financial controls. It is
important that the steps now being taken by the Authority have the
desired effect of improving financial management."
Notes for Editors
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard copies can be
obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Amyas Morse, is the head
of the National Audit Office which employs some 900 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 52/10
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