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The C&AG reported to Parliament on 31 January 2006 that he had disclaimed his opinion on the Home Office's Resource Accounts for 2004-05 because the Department was unable to submit its accounts in time for the audit to be completed to the statutory timetable. Furthermore, his examination was severely limited because the Home Office had not maintained proper books and records which would have enabled it to disclose with reasonable accuracy at any time the financial position of the Department.
The Home Office encountered considerable problems during the implementation of its new financial accounting system, which significantly impacted on the ability of the Department to produce timely financial statements. A lack of senior management oversight, which would have enabled problems to be addressed as they arose, then compounded matters.
On the day before our hearing, the Home Office issued a letter of apology to the Committee in respect of incorrect information they had previously given to the Committee on the number of foreign national prisoners released from custody without consideration for deportation.
The Home Office does not have a grip on the issue of foreign nationals released from prison and not deported, and was unable to provide full information to the Committee about the numbers or locations of such offenders. It could not provide any assurance that foreign nationals are no longer being released from custody without consideration of deportation, or that definitive action is being taken to improve the situation. The Home Secretary's statement on 23 May set out the practical steps to improve the handling of foreign national prisoners, but his statement was also indicative of wider systemic failings affecting the whole Department which need to be addressed urgently.
The Home Office has consistently underestimated the problems that impact on its ability to meet its aims and objectives. The disclaimed opinion on the accounts, and the confusion and failure to consider deportation on release from custody of foreign national prisoners are symptoms of a deeper lack of leadership and co-ordination. Restoring public confidence in the Home Office's capacity to deliver the complex range of services for which it is responsible remains a major challenge for the new Accounting Officer and his senior management team.
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