Press Release - Child Support Agency Client Funds Account
2002-2003
16 July 2003
Head of the National Audit Office Sir John Bourn has qualified
his opinion on the Child Support Agency’s account for the ninth
year running because of historical high levels of error in
maintenance assessments.
Reporting to Parliament today, Sir John said that he had taken
this action because, on the basis of his examination of the
account, he estimated that 28 per cent of receipts from
non-resident parents and 76 per cent of maintenance assessment
debts were incorrect. This was mainly the result of errors over a
number of years in underlying maintenance assessments and incorrect
adjustments to customers’ accounts.
Sir John further estimated that:
- of the £586 million receipts from non-resident parents, there
were overpayments of £4.5 million and underpayments of
£21.9 million; and
- the amount of £686 million shown in the account as due from
non-resident parents for maintenance assessments at 31 March 2003
contained overstatement errors of £21.7 million and
understatement errors of £390.9 million in debts arising from
full maintenance assessment; and overstatement errors of
£2.7 million and understatement errors of £6.8 million in
debts arising from interim maintenance assessments.
A reform programme, Child Support Reforms, aimed at simplifying
and modernising the system for making maintenance assessments, was
introduced in March 2003 for new claims only. Implementation of the
programme had originally been planned for April 2002 but had been
deferred by the Secretary of State for Work and Pensions until a
new computer system could be operated to specified standards. The
reform programme incorporates a new methodology for calculating
maintenance assessments which will be significantly less
complicated than the previous scheme.
Sir John said today:
"I have had to qualify this account yet again because
maintenance assessments are still subject to high levels of error.
I therefore welcome the implementation earlier this year of the
Agency’s reform programme with its new, simplified methodology for
calculating maintenance assessments.
The Agency believes that this will result in more
accurate assessments and provide other associated benefits. The new
programme has been operating for only four months and it is too
early for me to assess the success of the reforms. I intend to
consider their impact in my audit of the 2003-04
account."
Notes for Editors
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 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 57/03
All enquiries to Barry Lester, NAO Press Office:
Tel: 020 7798 7937
Mobile: 07748 181692