21 November 2003
Northern Ireland's auditor general, John Dowdall, has issued a disclaimer on the Department for Social Development's 2002/03 accounts – effectively refusing to sign them off.
He cited the impossibility of determining the level of benefit fraud and what he described as 'weaknesses in financial control' in the administration and awarding of grants to housing associations and for urban regeneration.
The Department of Finance and Personnel described the auditor's action as the strongest criticism available to him.
Another six of Northern Ireland's 18 departmental resource accounts for 2002/03 have been qualified by the auditor. In 2001/02, the first year resource accounts were used in the province, ten departmental accounts were qualified.
The latest analyses show that two departments – Agriculture and Rural Development and Enterprise, Trade and Investment – had their accounts qualified because they went over budget.
There was insufficient information for the auditor to value the fixed assets owned by the Department of Culture, Arts and Leisure. The Department of Education had overpaid its employers' contribution into the teachers' superannuation fund.
European Union income and student loans were wrongly accounted for by the Department for Employment and Learning. The auditor also qualified the accounts for the Department of Health, Social Services and Public Safety because of the level of prescription and exemption fraud.
A spokesman for the Department for Social Development said that it was not prepared to comment in detail until its full accounts were published, later in the year.
He added: 'We are aware of the auditor's disclaimer and will be considering what action is appropriate. We are aware of the issue of social security fraud.'
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