By Lucy Phillips
MPs have severely criticised accounting practices at the Ministry of Justice.
A report published today by the Public Accounts Committee slams the ministry for ‘exercising insufficient control’ over the financial management of its arm’s-length bodies and agencies, including the courts, prisons and probation services.
The MPs rejected the ministry’s defence that it had little scope to influence the behaviour of quangos, such as the National Offender Management Service and the Legal Services Commission, which is responsible for legal aid in England and Wales. Last year, the LSC had its accounts for 2009/10 qualified.
The MoJ was also the only government department to miss the deadline for producing its accounts for 2009/10.
Referring to Noms, PAC chair Margaret Hodge said: ‘It is simply not acceptable that, after two years’ work, the ministry still does not fully understand the cost of its staff activities in its largest executive agency.
‘This is indicative of the poor state of financial management in this ministry.’
The report warns that the MoJ lacks the detailed information necessary to target the 23% of cuts announced in the Comprehensive Spending Review away from frontline services.
It calls on the ministry to prioritise its work on understanding the full costs of staff activities in its executive agencies, which is not due for completion until December.
‘If the MoJ is to minimise the impact on its frontline services of its tough spending settlement, it must fully understand the cost and value of those services,’ said Hodge.
