The Comptroller and Auditor General, Sir John Bourn, today reported to Parliament that he has qualified his opinion on the financial statements of the Government Property Lawyers Agency for the year ended 31 March 1998 due to a fraud which resulted in a £542,000 loss to public funds.
In April 2000, three men were sentenced to prison terms for corruption in relation to the purchase of homes, between 1991 and 1995, by Focus Housing Association from a Birmingham property dealer. Sir John Bourn, head of the National Audit Office, told Parliament today that the Corporation’s routine reviews of Focus during that period did … Read more
“I continue to be concerned at the high level of error in maintenance assessments. As a consequence, the Exchequer is paying out substantial sums to compensate individuals who have suffered undue hardship and suffering. The Agency need to ensure that these problems are not simply transferred on to the new system due for implementation in April 2002.”
Sir John Bourn, head of the National Audit Office, told Parliament today that the Shadow Strategic Rail Authority (SSRA) and its predecessor organisation, the Office of Passenger Rail Franchising (OPRAF), had taken action where possible to remedy underperformance by passenger train operators but that the present franchise arrangements could be improved to secure better performance. … Read more
Sir John Bourn, head of the National Audit Office, reported to Parliament today on the Summarised Accounts of the National Health Service in Scotland for 1998-99. The report describes the findings of the appointed auditors of the individual health bodies, discusses developments in accounting and financial control, considers the financial performance of the NHS in … Read more
“This report aims to stimulate and encourage good practice in risk management. There are inevitable risks associated with new ways of working as departments strive to improve and modernise the delivery of public services for the benefit of citizens and businesses. Properly managed, risk taking and innovation can lead to improved value for money for taxpayers.”
“There may be a temptation to think that the Payment Card project failed solely because it was large and complex or because it was a pioneer PFI project. This was not the case. Various factors contributed to the project’s failure and their effects are difficult to disentangle. Important reasons were divided control, insufficient time for specifying the requirement and piloting, and that a shared, open approach to risk management was not achieved.”
Our examination found that:
The report highlights key lessons on risk management, the procurement of complex IT systems, and procurement by more than one purchaser, including:
In March 2000 the Treasury PFI taskforce issued new guidance on PFI contracts for Information Technology. In May 2000 the Cabinet Office published recommendations for improving the way in which the government approaches and manages major Information Technology projects. Had this guidance existed and been applied in the case of this project, it may have substantially reduced the risk of it failing, or alternatively have led to the project not proceeding in the way it did.
“The Department of Trade and Industry has supported the Post Office’s acquisition of German Parcel in a way that helps to reinforce commercial disciplines. This was a pathfinder transaction and there are lessons for other departments with a responsibility for overseeing acquisitions.”
“The shortage of trained pilots is a cause of concern and on the Department’s own projections is likely to continue for some time even if targets are met for training new pilots. The Department should look at possibilities for making existing arrangements for training pilots, already drawn together to a good degree in the Training Group Defence Agency, more coherent and take forward the recommendations set out in this report”
“The Board have assured me of the importance they place on effective internal financial controls, and they are confident that these controls have now been restored. I remain concerned, however, that these problems arose.
The lesson for other public bodies from the Board’s experiences is that, when letting and managing such a contract, potential risks need to be identified, evaluated, mitigated and managed so that the fundamental responsibilities of the Board and its Accounting Officer for the proper management of its resources can continue to be discharged.”
