Select Committee on Public Accounts Tenth Report



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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