Auditors unable to sign off court service accounts

16 Dec 11
The auditor general has been unable to give an audit opinion on the 2010/11 Courts Service Trust Statement accounts due to inadequate records on the fines, confiscation orders and penalties collected.

By Nick Mann | 16 December 2011

The auditor general has been unable to give an audit opinion on the 2010/11 Courts Service Trust Statement accounts due to inadequate records on the fines, confiscation orders and penalties collected.

Amyas Morse told Parliament that limitations in the IT systems used had contributed towards the service’s inability to provide information on individual transactions to support the accounts. As a result, he could not verify whether transactions and balances were complete, proper to the account and appropriately raised. ‘I have therefore disclaimed my audit opinion on [the] Trust Statement accounts,’ he said.

Last month, the NAO reported that the Courts and Tribunal Service was owed £1.9bn in outstanding fines, confiscation orders and penalties at the end of 2010/11 – an increase on the £1.5bn reported in the previous year. Only £457m of this is recognised in the accounts as recoverable, meaning £1.4bn is at risk.

Morse welcomed improvements made by the CTS and Ministry of Justice, which include performance measures for monitoring collection rates, timeliness and arrears; developments in enforcement and collection procedures; and work with other government bodies to maximise recoveries.

He added: ‘I welcome the further steps planned by the Courts Service and Ministry of Justice to improve the evidence on its financial position relating to fines, confiscation orders and penalties. 

‘However, I recognise that they and other government bodies face significant challenges in improving the extent of available data and on reducing the level of outstanding debt.’

Both the MoJ and the CTS told the NAO that they might not be able to fully address the accounting records problem until Libra, the case management system used in magistrates’ courts, and other relevant systems were either enhanced or replaced.

In a statement, the MoJ reiterated the CTS’s commitment to increase its recovery of outstanding debt. ‘The courts will do everything within their powers to trace those who do not pay. Money can be taken from an offender's earnings or from benefits if they are unemployed. Warrants can be issued instructing court employed agents to seize and sell goods belonging to the offender,’ it said.

Margaret Hodge, chair of the Common’s Public Accounts Committee, described the auditors’ conclusions as ‘really worrying’.

She added: ‘HM Courts Service is responsible for collecting fines and penalties, but we can’t tell if this money is accounted for properly. The comptroller and auditor general has taken the rare step of disclaiming his audit opinion – the committee will be looking for HM Courts and Tribunals Service to improve.’

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