THE NORTHERN IRELAND AUDIT OFFICE
32. Until the end of last year, when powers were
transferred to the Northern Ireland Assembly, the Public Accounts
Commission exercised functions in respect of the Northern Ireland
Audit Office (NIAO) on a non-statutory basis, similar to those
which it exercises under the statute in respect of the NAO.
NIAO Corporate Plan and Estimates
33. The Commission has continued to consider the
NIAO's latest Corporate Plan at its summer meeting and the draft
Estimate in the following December. The Corporate Plan for 1999-2000
to 2001-02 drew attention to several matters which were expected
to affect the Office over the life of the Plan. These included
political developments, changes in workload and rationalisation
of public service audit in Northern Ireland. The Plan envisaged
expenditure of £4.07 million, an increase of £230,000
in current prices (£125,000, 3.25 per cent, in real terms)
over the 1998-99 Estimate.
34. The Estimate for the NIAO for 1999-2000 of £4.151
million was considered by the Commission at its meeting in December
1998. The Department of Finance and Personnel (NI) confirmed that
it was content with the Estimate. The Estimate was broadly in
line with the forecast in the NIAO's 1998 Corporate Plan but sought
an extra £80,000 to provide additional capability to examine
risks to regularity, propriety and the proper conduct of public
business which the C&AG(NI) considered particularly important
at a time of major changes in the administration of the public
sector and the introduction of new bodies. The C&AG(NI) briefed
the Commission on progress on the proposals agreed for the reorganisation
of public sector audit in Northern Ireland but, as it was not
expected to take place before March 2000, did not seek any provision
in the Estimate to meet the cost of the reorganisation. The Commission
approved without change both the Corporate Plan and the Estimate.
35. The following year's Corporate Plan for 2000-01
to 2002-03, which the Commission considered in July 1999, recognised
that the impact of political developments on the work of the NIAO
had now become clearer. However, in view of the uncertainty then
surrounding the timing of the transfer of powers, the Plan made
no allowance for changes arising from political developments.
The Corporate Plan also acknowledged the resource implications
resulting from the implementation of resource accounting and budgeting
and the impact of the establishment of 23 Executive Agencies under
the Next Steps Initiative. The Plan noted that over the period
1994-95 to 1999-2000, the workload of the Office had increased
by around 20 per cent and that this had been contained within
a budget increase of 11 per cent in real terms over the same period,
largely as a result of efficiency savings. The NIAO sought a total
of £4.3 million in cash terms, £4.19 million in real
terms, compared with the Estimate for 1999-2000 of £4.15
million. Given the large number of new executive agencies and
the NIAO's increased workload, the Commission was impressed that
the NIAO had managed to keep its request for resources to such
a modest level. It accordingly approved the Corporate Plan.
36. The NIAO's Estimate for 2000-01 of £4.298
million was the same as that forecast in the 1999 Corporate Plan
and approved by the Commission in July 1999. The DFP(NI) noted
that the Estimate was £80,000 more than the NIAO's current
PES allocation for 2000-01 but that the increase was to provide
for additional audit requirements arising from concerns over control
of fraud in the public sector. It signified that it was content
with the Estimate. Power was transferred to the Northern Ireland
Assembly at midnight on 1 December. At its meeting on 2 December
the Commission did not therefore formally approve the Estimate.
It recommended, however, that the Estimate be approved.
Salary of the C&AG(NI)
37. The terms governing the salary of the C&AG(NI)
were agreed on his appointment in 1994 and revised with the agreement
of the Commission in 1996. In future his salary will be determined
by resolution of the Assembly though it is envisaged that the
established terms should continue to apply. At its meeting in
December 1998 the Commission confirmed that it was content with
the proposed salary terms for the post of the C&AG (NI).
Current Position
38. Implementation of the Northern Ireland Act 1998
meant that the Commission's meeting on 2 December 1999 marked
the C&AG(NI)'s final appearance before the Commission. We
would like to take this opportunity to record our appreciation
of the quality of the work which the C&AG(NI) and his Office
have carried out over the years of our association and to wish
them well in the future.
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