By Mark Smulian | 25 June 2013
The former Legal Services Commission has had its accounts accepted without qualification for the first time since 2008/09.
National Audit Office head Amyas Morse has given a clear opinion on the LSC’s annual financial statements, but only because he judged £14.5m worth of irregular payments to be ‘not material’ in the context of the LSC’s £2.1bn budget.
He said the volume of irregular payments had fallen by 59%, from the £35.9m recorded in 2011/12.
Irregular payments include those to legal aid providers not in compliance with the statutory fee regimes, and to people who were ineligible.
The LSC was abolished on April 1 with its functions transferring to the Ministry of Justice’s new Legal Aid Agency.
Morse said the LAA starts with an improved assurance framework and significantly reduced levels of irregularity, underpinned by more robust supplier management, risk-based assurance activity and more routine recovery of irregular payments.
Gross irregularity remains high for civil legal help schemes and has increased for some schemes based on eligibility, the NAO found. It urged the LAA to focus effort on these areas.
Responding, LSC chief executive Matthew Coats, said: 'I'm extremely pleased the NAO has removed the qualification of the LSC's accounts. This follows a sustained amount of hard work by LSC staff and ongoing close engagement with providers of legal aid.
'I welcome the NAO's comments that the LAA starts with an improved assurance framework embedded within the business, underpinned by more robust supplier management, risk-based assurance activity and more routine recovery of irregular payments.'
