NAO tells Defra to get tighter grip on spending

6 Mar 08
The Department for Environment, Food and Rural Affairs needs a tighter control on its expenditure, government auditors have said.

07 March 2008

The Department for Environment, Food and Rural Affairs needs a tighter control on its expenditure, government auditors have said.

The National Audit Office urged Defra to ensure good financial management remained a top priority. Managers needed to produce more reliable cost estimates for bids and track the cost-effectiveness of work done if resources are to be best utilised.

Although Defra has established a programme to improve its financial management, the department's management board has admitted that it will be some time before a culture of tighter financial control takes hold.

The NAO's March 6 report notes that the budgets agreed by Defra's management board at the beginning of 2006/07 and 2007/08 exceeded the funds available. The additional spending required to deal with the problems of the single payment scheme meant the department risked overspending in 2006/07. Only a last-minute programme of savings ensured the department stayed within budget.

NAO head Tim Burr said: 'It is good news that the department has recognised and is addressing its poor past performance on financial management.

'But there is still some way to go before we can feel confident that public money is being spent effectively and efficiently.'

The report marks the first time the NAO has examined financial competency at a single government department. Burr last month said he hoped to extend the approach to other Whitehall departments.

PFmar2008

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