Government financial controls improving, but more needs to be done, says Audit Committee

Standards of financial management in government and NHS bodies in Wales are good and continue to improve, according to a new Assembly Audit Committee report published today (Wednesday December 20). However, improvements are still required in some areas including grants, asset management and the quality of accounts preparation. The report says that it will be important that sound financial management arrangements are put in place to support the new devolved structure following the implementation of the Government of Wales Act. The Committee found that good advances have been made in procurement and in developing Freedom of Information systems, but the management of EU projects still has some problems. The report welcomes the positive progress achieved by government bodies in meeting faster deadlines for the preparation of their annual accounts. However, auditors are still finding deficiencies in the quality of those accounts and supporting information is not always accurate or complete. The report recommends that in drawing up timetables and overall project plans for the preparation of its annual accounts, the Assembly Government should make adequate provision for management to review and confirm the quality of the accounts before their submission for audit. It also calls for a tightening up of the grant control system, and enhanced information systems for tracking the progress of Freedom of Information requests. Janet Davies AM, Chair of Audit Committee, said: “The Committee is pleased to see the improved financial management performance of the government. However, we need to see robust financial management practices put into place to cope with the Assembly’s enhanced powers from May 2007.”