By Nick Mann | 25 November 2011
The Department for Environment, Food & Rural Affairs has been criticised for slow progress in redressing financial management weaknesses first identified in 2008.
In a report published today, the National Audit Office welcomed the steps the department had taken to strengthen its financial performance since it was last audited three years ago.
But it was unable to conclude that Defra’s financial management offered value for money because it would have ‘reasonably expected faster progress in improving performance and a higher level of financial management maturity today’.
This was particularly the case, the auditors added, given the focus and resources the department had put towards improving its performance in this area. The report noted Cabinet Office figures showing Defra had a ‘higher-than-average’ ratio of finance staff.
The NAO called on Defra to measure the benefits and effectiveness of its finance improvement projects and to ‘embed a culture of strong financial management’. This should include ensuring non-finance staff involved in managing budgets are financially literate, developing skills in areas such as contract management and getting a better understanding of the costs of activities undertaken by both Defra and its arm’s-length bodies. The auditors said a monitoring regime should be introduced to identify how well value-for-money was being obtained, particularly in light of spending restrictions.
NAO head Amyas Morse said: ‘Defra has made progress in its financial management. However, there is more to do and progress needs to speed up.
‘The department should grasp the opportunity of its recently launched change programme to instil good financial management across its business and deliver better value for money.’
Commenting on the report, a Defra spokeswoman said: ‘The NAO report recognises progress made in Defra’s financial management and capability. Financial reporting has improved and the department has increased the number of permanent qualified finance staff.
‘Defra always looks to find new ways to deliver value for money and we are making further improvements to achieve this.’
