13 February 2004
The Criminal Records Bureau guaranteed its place in the history of government disasters this week with revelations of a £68.2m deficit, qualified accounts, and doubts over its real impact in protecting vulnerable people.
A long-awaited report from the National Audit Office, published on February 12, provides an account of poor planning, off-the-cuff business assumptions and strained relations between ministers and contractors.
The £400m public-private partnership between the Home Office and Capita was designed to provide criminal record checks for those working with vulnerable people in the public and voluntary sectors.
Its poor service history and 270,000 backlog in checks are well documented, but the NAO found that its problems started even before the CRB launched in March 2002.
The Home Office is duly criticised for its assumption that service users would apply electronically, and for its last-minute change to paper-based applications.
The report also reveals that the Office of Government Commerce had concerns over the bureau's readiness but accepted that there was 'no turning back'.
But while the Home Office attempted to draw a line under the CRB's past performance, the watchdog reveals that the problems could be far from over. It will fail to meet its Treasury target of breaking even this year. Poor assumptions of business volumes and the failure to introduce a basic disclosure service have led to a deficit of £68.2m between 2002 and 2005.
The Home Office will have to meet these extra costs and, as Public Finance has already revealed, it has paid Capita an extra £12m over this period. In contrast, Capita has paid fines of just £3.6m for its poor telephone system, an IT system that failed to meet Home Office specifications and the lack of web access.
The NAO has also qualified the bureau's accounts, citing irregular payments to police forces and inadequate accounting records.
But, perhaps more significantly, the watchdog raises questions over the effectiveness of the bureau. The CRB still doesn't have access to vital sources of criminal data, including from Customs & Excise and the British Transport Police.
The report also makes the point that there are no measures in place to monitor whether the bureau has made a real difference in protecting vulnerable people.
Despite the CRB's recent Mori poll, which found that 18% of organisations using the service decided not to employ an applicant in light of a disclosure, the NAO urges urgent research into how the information contained in disclosures is used.
Home Office Minister Hazel Blears said she welcomed the report and emphasised that the CRB was now processing 50,000 applications a week.
NAO head Sir John Bourn said the case demonstrated the importance of 'working in partnership with contractors at an early stage.'
But Edward Leigh, chair of the Commons' Public Accounts Committee, which is due to begin hearings next month, said the CRB was based on 'wishful thinking', and was badly planned and implemented.
'The government has not taken any steps to find out how effective the Criminal Records Bureau is – or even whether it's having any effect at all.'
PFfeb2004
