Press Release - Financial Management in the Home
Office
22 May 2009
The Home Office has made substantial improvements in its
financial management since 2006, when the Comptroller and Auditor
General disclaimed an opinion on its 2004-05 Resource Accounts.
Further sustained improvement will still be needed over the next
few years, so that good financial management becomes “business as
usual” across all of the Department’s operations, which will help
the Department maximise the value for money of its service
delivery.
The Department has increased the number of professionally
qualified finance staff, particularly in senior finance roles, and
has improved financial governance and leadership. Improvements are
also evident in the Department’s financial planning and decision
making; budgeting; financial monitoring and forecasting; and
financial reporting. The unqualified audit opinion on its 2007-08
Resource Accounts was an important symbol of the progress made.
There are areas for further improvement. The strategic
management of the Department’s capital programme has not been
responsive enough to avoid large underspends, which amounted to
£725 million over the 5 years to 31 March 2008. The Treasury has
capped access to these funds at £292 million and the Department
will need to deliver on the plans it has in place to use them by
2010-11. The Department also needs to develop further its
understanding of the cost of its activities and the relationship
between resource consumption and service outcomes. The Department
recognises these issues and has been undertaking work with the aim
of improving capital programme management and the basis on which
decisions are made for funding allocations.
Tim Burr, head of the National Audit Office, said
today:
"The Home Office has made considerable progress in
strengthening its financial management which, after the problems
experienced in recent years, was much needed. It still needs to
establish clearer links between the use of resources and service
delivery outcomes. Similarly, the Home Office has to improve
individual project oversight and management of its broader capital
programme so that it can identify funds which are no longer needed,
then release them to be deployed elsewhere."
Notes for Editors:
- This report is the second in a series of
reports from the NAO on financial management. The first
report, on financial management in the Department for Children,
Schools and Families, was published in April this year. Over
the next few years the NAO are planning a cycle of reports on
financial management in all major departments.
- 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, Tim
Burr, is the head of the National Audit Office which employs some
850 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 33/09
All enquiries to Mark Anderson, NAO Press
Office
Tel: 020 7798 7558
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